American National has come up with a financial product that could appeal to clients who have a bleak global view, or who want a more direct way to hedge against geopolitical risk.
The Houston-based insurer has joined with BNP Paribas to introduce the Patriot Technology Index.
Managers of the index will tie its performance to the prices of large- and mid-cap U.S. technology companies "identified by the U.S. government as critical and emerging technologies that help to inform national security-related activities," American National says.
The index will help clients benefit from the "strong performance of the U.S. stock market and the trend towards deglobalization," the company adds.
The company is making the index available through its American National Strategy Index 10 annuity contract.
What it means: Traditionally, annuity owners have hedged against geopolitical risk by investing in fixed annuities, or by allocating assets to the fixed-interest or volatility-controlled index options on indexed product menus.
Now, annuity owners have a chance to tie some or all of the crediting rate to the performance of companies that could flourish in difficult times.
Details: The national security index is a non-variable indexed annuity with a flexible-premium option and a 10-year surrender charge period.
