Legg Mason Quality Dividend Index℠ Harnesses the Power of Dividends to Help Consumers Navigate Uncertain Markets
AIG Life & Retirement, a division of American International Group, Inc. (NYSE: AIG) and a leading provider of annuities, today announced the launch of the new Legg Mason Quality Dividend Index. This index has been developed exclusively for The Power Series of Index Annuities®, which is issued by AIG member company American General Life Insurance Company and will be distributed primarily through independent broker-dealers, banks and other financial institutions.
The Legg Mason Quality Dividend Index offers consumers the opportunity to seek more consistent returns in changing markets by focusing on high-quality dividend-paying stocks. While the index is not available for direct investment, its returns are used to help determine the interest earned in the index annuity. In addition, any assets allocated to the Legg Mason Quality Dividend Index in a Power Series Index Annuity are protected against market downturns, so principal will never fall due to market volatility.
"Today, more than ever, Americans are looking for strength and stability in their retirement portfolios," said Bryan Pinsky, Senior Vice President of Individual Retirement Pricing and Product Development at AIG. "The Legg Mason Quality Dividend Index offers the expertise of one of the nation’s premier money managers, and, by emphasizing strong companies that have a history of paying dividends, this new index can help clients generate more consistent returns than the broad U.S. stock market."
The Legg Mason Quality Dividend Index uses a simple, rules-based process to dynamically allocate between high dividend-paying stocks, stocks with high levels of price stability, and cash. The allocation among stocks is adjusted monthly to take advantage of performance and momentum trends. Cash positions are then managed on a daily basis to help mitigate market risk.
"We focused on developing a compelling solution that is both differentiated from and complementary to other index options available through AIG Life & Retirement," said Colleen Tycz, Co-Head of US Retirement Solutions, National Accounts, at Legg Mason. "Legg Mason is proud to introduce consumers to the Legg Mason Quality Dividend Index, the only dividend-focused solution in the Power Series of Index Annuities."
"As the Quantitative Solutions provider within Legg Mason, we are excited for this opportunity to work with AIG Life & Retirement and leverage our factor-based research within the index annuity space," said Nick Hooten, Head of Investment Solutions at QS Investors. "Our goal for the index was to utilize our dynamic process to allocate to stocks that pay high dividends and demonstrate high levels of price stability in order to provide consumers with strong, consistent return potential."
The Legg Mason Quality Dividend Index is available exclusively in The Power Series of Index Annuities, which combines tax deferral, principal protection against down markets, growth potential through a diverse range of index interest accounts, and guaranteed lifetime income options to help consumers prepare for retirement. Guarantees are backed by the claim-paying ability of American General Life Insurance Company.
Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be suitable or appropriate for all individuals.
Withdrawals may be subject to federal and/or state income taxes. An additional 10 federal tax may apply if you make withdrawals or surrender your annuity before age 59½. Consult your tax advisor regarding your specific situation.
Diversification and risk management strategies do not guarantee positive performance or prevent negative returns. There are no assurances that any objectives will be achieved. Depending on index performance and other factors, individuals may earn no interest in the index annuity.
The Legg Mason Quality Dividend Index℠ ("LMQD") has been developed and is owned solely by QS Investors LLC, a wholly-owned subsidiary of Legg Mason, Inc. Neither Blackrock (the sponsor of iShares ETFs) nor Invesco is affiliated with Legg Mason, Inc. and QS Investors, LLC. LMQD and any security or product based on or making use of LMQD are not sponsored, endorsed, or promoted by Blackrock or Invesco, and neither company bears any responsibility or liability for or with respect to LMQD or any security or product based on or making use of LMQD.
LMQD is calculated on behalf of QS Investors, LLC by Solactive or its affiliate, agent or partner. Solactive, QS Investors, LLC, Legg Mason, Inc. and their respective affiliates do not make any claim, prediction, warranty or representation as to the accuracy and completeness of LMQD, the results to be obtained from use of LMQD or the suitability of LMQD for the purpose to which it is being put by American General Life Insurance Company, and bear no liability for LMQD or for any security or product based on or making use of LMQD.
The LMQD embeds an annual index cost in the calculations of the change in index value. This embedded index cost will reduce any change in index value, and it funds certain operational and licensing costs for the Index. Since it will affect the return of the Index, it may also impact the amount of interest credited to an index annuity; however, it is not a fee paid by the policy owner or received by the issuing insurance company.
Index annuities are issued by American General Life Insurance Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019. Contract Numbers for the Power Series of Index Annuities: AG-800 (12/12) and AG-801 (12/12). AGL is a member of the American International Group, Inc. (AIG) family of financial services companies. The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL are its responsibility. AGL does not solicit business in the state of New York. Annuities and riders may vary by state and are not available in all states. AIG and its member companies are not affiliated with Legg Mason.
|Not FDIC or NCUA/NCUSIF Insured|
|May Lose Value • No Bank or Credit Union Guarantee|
|Not a Deposit • Not Insured by any Federal Government Agency|
About AIG Life & Retirement
AIG Life & Retirement brings together a broad portfolio of protection, retirement savings, investment and lifetime income solutions to help people achieve financial and retirement security. The business consists of four operating segments – Individual Retirement, AIG Retirement Services, Life Insurance and Institutional Markets – and holds longstanding, leading market positions in many of the markets it serves.
AIG Life & Retirement includes AIG member insurance companies American General Life Insurance Company (Houston, TX), The United States Life Insurance Company in the City of New York, and The Variable Annuity Life Insurance Company (VALIC), Houston, TX as well as their affiliates. Securities products are distributed by AIG Capital Services, Inc., member FINRA. Additional information about AIG Life & Retirement can be found at www.linkedin.com/showcase/aig-life-&-retirement.
American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies provide a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.