Midland Advisory, part of Midland National Life Insurance Company, announced a new collaboration with Dimensional Fund Advisors to enhance index-linked annuity solutions.
Dimensional will offer a registered index-linked annuity (RILA), in which performance is linked to a custom index constructed using Dimensional’s systematic active exchange traded funds (ETFs).
The index draws on the performance of the underlying Dimensional ETFs, which are designed to pursue higher expected returns than the broader market. This index is one of several available options, as potential performance may also be linked to two other indices or based on seven variable sub-accounts.
With the introduction of the Dimensional US Equity Core Plus Index, Midland National diversifies its RILA solution by offering an index in the RILA space comprised of Dimensional active ETFs. This combination allows advisors to offer their clients a familiar investment avenue while integrating a level of protection with the benefits of an annuity.
“Our collaboration with Dimensional reflects our shared commitment to providing solutions that align with the evolving needs of financial advisors and their clients,” explained Rob TeKolste, president of Sammons Independent Annuity Group, in a statement. “By offering index exposure that draws on Dimensional ETF strategies, we equip advisors with investment options that balance growth potential with protection.”
“Throughout our history, Dimensional has focused on delivering the best possible investment experience to financial professionals and their clients,” said Carlo Venes, Co-Head of the Global Client Group at Dimensional. “We look forward to furthering this effort alongside Midland Advisory to bring our diversified, low-turnover solutions to more annuity investors nationwide.”
The Dimensional US Equity Core Plus Index is a US equity market index designed to offer broad diversification.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.