The Index Standard® Launches FIA Forecast Credits and FIA Model Allocations

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Innovative Tools Help Financial Professionals Think Beyond Traditional Choices And Better Support Clients’ Allocation Decisions

NEW YORK, NEW YORK, USA, February 27, 2023 /EINPresswire.com/ -- THE INDEX STANDARD^®, the innovative provider of index ratings and forecasts with a focus on annuity and structured products, today significantly boosted its insurance coverage by launching two new solutions: FIA Forecast Credits and FIA Model Allocations are first-of-their-kind, data-driven tools designed to help financial professionals understand and compare the index-linked “crediting strategies” in fixed index annuities (FIAs).

Interest payments in FIAs depend on so-called crediting strategies linked to the performance of one or more indices. These may be familiar benchmarks or, more often, complex and innovative “custom” indices.

Financial professionals and their clients are thus faced with trying to understand and compare a wide range of bewildering choices. Confused and daunted, they often end up choosing familiar benchmarks and forsake what custom indices may offer: diversification and the possibility of higher and more consistent returns.

“The complexity of indices and crediting strategies and the lack of resources to better understand them have been a huge barrier for financial professionals and their clients when considering FIAs in retirement planning. These are the challenges we try to address with FIA Forecast Credits and FIA Model Allocations,” said Jay Watson, Managing Director and Head of Analytics at The Index Standard^®.

FIA Forecast Credits provide expected rates of return of individual crediting strategies in FIAs. They are based on The Index Standard^® forecast returns for the indices and factor in all relevant crediting strategy features and fees, using annuity data and analytics provided by CANNEX Financial Exchanges Ltd., a leading provider of pricing, data and research for retirement and savings products in North America. FIA Forecast Credits strip down the complex layers and enable easy-to-understand, apples-to-apples comparisons.

Using FIA Forecast Credits as the key input, FIA Model Allocations are suggested allocations to the crediting strategies in an FIA most likely to generate the highest long-term returns, while diversifying risk. The Index Standard^® offers two allocations, both entirely algorithmic: “Balanced Blend” and “Boosted Blend”.

Equipped with unbiased analytical data, financial professionals can use FIA Forecast Credits and FIA Model Allocations as an informed starting point to discuss FIA selections and allocations that best fulfil the interests and objectives of their clients.

About The Index Standard^®
The Index Standard^® brings unrivalled expertise to the independent evaluation of indices, providing accessibility, transparency, and actionable insights into the $15 trillion index industry. With a strong focus on risk control indices and other sophisticated indices used to build annuities, structured products and thematic ETFs, The Index Standard’s advocacy for “approachable finance” provides needed clarity and context in support of the development of new financial product innovation, and its successful implementation by investors and their advisors.

Enquiries
Information about The Index Standard^® FIA Forecast Credits and FIA Model Allocations is available on The Index Standard website. Both products are available for subscription for institutional clients.

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