Bloomberg Unveils Innovative Multi-Asset Index Tailored for Fixed Indexed Annuities
On April 8, 2025, Bloomberg Indices made a significant impact in the financial world with the introduction of the Bloomberg Versa 10 Index (BVERSA10). This new benchmark was carefully crafted to address the evolving demands of the fixed indexed annuity (FIA) market, reflecting a focus on asset diversification and volatility management.
The BVERSA10 Index is designed to maintain a target volatility of 10% while dynamically positioning investments across four distinct asset classes. These classes include U.S. equities, U.S. Treasuries, Gold, and the U.S. dollar, each represented by a dedicated volatility-targeted sub-index. This innovative structure not only provides a balanced investment strategy, but also caters to the needs of financial institutions and their clients who are navigating the complexities of the modern financial landscape.
SILAC Insurance Company® has already recognized the value of this index and secured the licensing for its inclusion in their fixed indexed annuity products. According to Dan Acker, the President and Chief Marketing Officer of SILAC Insurance Co., the BVERSA10 Index aligns with their product objectives and offers a transparent benchmark that assists in delivering thoughtful solutions amid market volatility, inflation, and shifting interest rates.
To create the BVERSA10, Bloomberg collaborated with RBC Capital Markets and Salt Financial LLC. The index uses a rules-based approach that incorporates dynamic long and short exposure, ultimately enhancing trading efficiency and risk management. Notably, the U.S. Large Cap Equities are represented by the Bloomberg Dynamic US 500 10% Index that is based on the broader Bloomberg US Large Cap Index (B500T). Furthermore, the index includes the Bloomberg Dynamic US Treasury 10% Index which adapts based on interest rate trends and the Bloomberg US Dollar G10 10% Index that increases exposure during times of global instability. Gold's role is encapsulated within the Bloomberg Gold 10% Index, included as a momentum-based diversifier useful in inflationary periods or systemic stress events.
The timing of this index launch comes amid a backdrop of geopolitical uncertainties and market fluctuations, compelling both insurance companies and investors to seek specialized solutions that prioritize stability and growth. Emanuele Di Stefano, Head of Index Product Development at Bloomberg Index Services Limited, emphasized the commitment of Bloomberg Indices to creating customized indices that empower insurers to remain competitive in this challenging landscape, while simultaneously offering differentiated products for their clientele.
With more than $30 billion in assets tied to Bloomberg indices within annuity and life insurance platforms, it is clear that the firm's efforts are supported by a proven history of innovation in index creation. Bloomberg continues to be at the forefront of financial information, offering a transparent, independent approach to asset indexing that addresses the dynamic needs of customers worldwide.
For financial industry professionals, the new BVERSA10 Index can be accessed through the Bloomberg Terminal, where users can find comprehensive research and methodology. Additionally, Bloomberg Index Services Limited draws on a wealth of trusted data and advanced technology facilitating seamless workflow automation and enhanced product visibility.
As the financial landscape evolves, essential tools like the BVERSA10 Index are likely to play a pivotal role in how products are designed and marketed, ensuring that they meet the ever-changing needs of investors seeking to navigate the complexities of today’s markets.
The BVERSA10 Index is designed to maintain a target volatility of 10% while dynamically positioning investments across four distinct asset classes. These classes include U.S. equities, U.S. Treasuries, Gold, and the U.S. dollar, each represented by a dedicated volatility-targeted sub-index. This innovative structure not only provides a balanced investment strategy, but also caters to the needs of financial institutions and their clients who are navigating the complexities of the modern financial landscape.
SILAC Insurance Company® has already recognized the value of this index and secured the licensing for its inclusion in their fixed indexed annuity products. According to Dan Acker, the President and Chief Marketing Officer of SILAC Insurance Co., the BVERSA10 Index aligns with their product objectives and offers a transparent benchmark that assists in delivering thoughtful solutions amid market volatility, inflation, and shifting interest rates.
To create the BVERSA10, Bloomberg collaborated with RBC Capital Markets and Salt Financial LLC. The index uses a rules-based approach that incorporates dynamic long and short exposure, ultimately enhancing trading efficiency and risk management. Notably, the U.S. Large Cap Equities are represented by the Bloomberg Dynamic US 500 10% Index that is based on the broader Bloomberg US Large Cap Index (B500T). Furthermore, the index includes the Bloomberg Dynamic US Treasury 10% Index which adapts based on interest rate trends and the Bloomberg US Dollar G10 10% Index that increases exposure during times of global instability. Gold's role is encapsulated within the Bloomberg Gold 10% Index, included as a momentum-based diversifier useful in inflationary periods or systemic stress events.
The timing of this index launch comes amid a backdrop of geopolitical uncertainties and market fluctuations, compelling both insurance companies and investors to seek specialized solutions that prioritize stability and growth. Emanuele Di Stefano, Head of Index Product Development at Bloomberg Index Services Limited, emphasized the commitment of Bloomberg Indices to creating customized indices that empower insurers to remain competitive in this challenging landscape, while simultaneously offering differentiated products for their clientele.
With more than $30 billion in assets tied to Bloomberg indices within annuity and life insurance platforms, it is clear that the firm's efforts are supported by a proven history of innovation in index creation. Bloomberg continues to be at the forefront of financial information, offering a transparent, independent approach to asset indexing that addresses the dynamic needs of customers worldwide.
For financial industry professionals, the new BVERSA10 Index can be accessed through the Bloomberg Terminal, where users can find comprehensive research and methodology. Additionally, Bloomberg Index Services Limited draws on a wealth of trusted data and advanced technology facilitating seamless workflow automation and enhanced product visibility.
As the financial landscape evolves, essential tools like the BVERSA10 Index are likely to play a pivotal role in how products are designed and marketed, ensuring that they meet the ever-changing needs of investors seeking to navigate the complexities of today’s markets.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.