The Salt Financial Annuity Index Report for December also serves as the 2024 year-end review, showcasing trends in annuity index performance. U.S. large-cap equities and gold delivered strong gains, while small caps, international stocks, and bonds lagged, contributing to better returns for equity-only volatility-controlled strategies over multi-asset designs.
Despite solid nominal returns, higher volatility in technology-heavy indices reduced their risk-adjusted performance compared to broader benchmarks like the S&P 500. Excess-return structures in annuities, combined with elevated interest rates, weighed on returns, particularly for bonds and multi-asset indices.
Equity-only indices tied to U.S. large caps led the pack, but the cyclical nature of markets underscores the importance of diversification.
Finsum: Advisors should consider dynamic strategies to optimize their clients’ outcomes.
- annuities
- indexed annuities
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