Bloomberg Indices has launched the Bloomberg Versa 10 Index (BVERSA10), a multi-asset benchmark for the evolving fixed indexed annuity market targetting a 10% volatility level and offers diversified exposure across US equities, Treasuries, gold and the US dollar.
Developed in collaboration with RBC Capital Markets and Salt Financial, the index uses a rules-based framework to provide efficient trading and robust risk management, with long and short exposure that adjusts in real time to market shifts.
By incorporating asset classes that respond to different economic regimes — equities for growth, Treasuries for rate sensitivity, gold for inflation and stress scenarios and the US dollar for global uncertainty — BVERSA10 is positioned as a tool for long-term retirement planning.
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Each asset class in the index is tracked through its dedicated volatility-targeted sub-index. US large-cap equities are represented by the Bloomberg Dynamic US 500 10% Index, while Treasuries, gold and the US dollar are similarly tracked through their own tailored Bloomberg Dynamic 10% Indices. The allocation shifts dynamically, aiming to balance performance and stability in a changing macroeconomic environment. The Versa 10 Index has already been licensed by Silac Insurance Company for inclusion in its fixed indexed annuity offerings.
“It’s important that our annuity offerings include tools designed to address market concerns such as volatility, inflation and interest rate shifts,” said Dan Acker, president and chief marketing officer, Silac Insurance Co. “Bloomberg Indices provides a transparent, rules-based benchmark that aligns with our product objectives and helps us deliver thoughtful solutions to the market.”
Bloomberg clients can access the new index on the Bloomberg Terminal at {BVERSA10 INDEX <GO>} and all research and methodology for the indices are available on the Bloomberg Indices Documentation page.
