S&P PRISM FACTOR INDEX
A new opportunity for stable appreciation
The S&P PRISM Factor Index (“the index”) was designed by S&P Dow Jones Indices exclusively for the Transamerica Secure Retirement Index® II Annuity to apply academically proven techniques that aim to provide stable appreciation.
AN ADVANCED STRATEGY FOR TRACKING ASSET CLASSES
STRONG ACADEMIC FOUNDATION
Factor strategies can be traced back as far as the 1930s, and incorporate the work of leading economists1
STABILITY THROUGH MARKET CYCLES
Factor strategies often perform quite differently in the market cycle, and diversifying across multiple factors may provide greater stability1
CONSISTENT APPRECIATION POTENTIAL
Factor strategies have been proven both academically and empirically to produce higher returns with less risk1
Track companies with strong market factors
The index is designed to identify and track large, publicly traded U.S. companies that offer a strong combination of market factors, including quality, value, and momentum.2
INTUITIVE AND SYSTEMATIC EQUITY SELECTION
The index evaluates equities, bonds, commodities, and cash daily with the aim to respond to changing market conditions.3 The index is designed to select and strategically weight asset classes with positive momentum daily with the aim to provide smooth appreciation.
An opportunity to navigate changing market
The hypothetical backtested performance shown below illustrates how the S&P PRISM Factor Index would have provided steady appreciation since 1996.
Source: S&P Dow Jones. From 3/5/96 – 12/31/19. The S&P Prism®️ Factor Index was established 10/31/19. Past performance is not indicative of nor does it guarantee future performance. Appreciation before 10/31/19 is backtested by applying the S&P PRISM®️ Factor Index strategy, which was designed with the benefit of hindsight, to historical financial data. Allocations to an index account are not an investment in the stock market or indexes, nordo they participate in any equities, commodities, fixed income, or currencies. Interest credited may be lower than the annual index growth rate if an optional rider is elected for an additional fee.