Legg Mason Quality Dividend Index uses the power of dividends to help consumers navigate uncertain markets
AIG Towers in Los Angeles, California. (Credit: Wikipedia.org/HanSangYoon.)
American International Group’s (AIG) subsidiary AIG Life & Retirement has launched the new Legg Mason Quality Dividend Index, an index developed exclusively for The Power Series of Index Annuities.
The Power Series of Index Annuities is issued by AIG and will be distributed primarily through independent broker-dealers, banks and other financial institutions.
The Legg Mason Quality Dividend Index provides consumers with an opportunity to seek more consistent returns in changing markets by focusing on dividend-paying stocks.
The index will not be available for direct investment, but its returns are used to help determine the interest earned in the index annuity.
Additionally, if any assets are allocated to the Legg Mason Quality Dividend Index in a Power Series Index Annuity are protected against market downturns, so it is claimed that the principal is not vulnerable to market volatility.
AIG Individual Retirement Pricing and Product Development senior vice president Bryan Pinsky said: “Today, more than ever, Americans are looking for strength and stability in their retirement portfolios.
“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.”
Legg Mason Index uses rules-based processes to allocate between high dividend-paying stocks
The Legg Mason Quality Dividend Index uses simple, rules-based processes to allocate between high dividend-paying stocks, stocks with high levels of price stability and cash.
While stock allocation is adjusted monthly to take advantage of performance and momentum trends, cash positions are managed on a daily basis to help reduce market risks.
Legg Mason National Accounts, US Retirement Solutions co-head Colleen Tycz said: “We focused on developing a compelling solution that is both differentiated from and complementary to other index options available through AIG Life & Retirement.
“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.”