Brains beat backtests in a tough year for FIA indexes

Four of the top 10 benchmarks in 2022 were based on the economic theories of prominent academics

A sobering year for fixed income annuities may herald a shift in the way the underlying indexes are built and sold.

The combination of the biggest equity sell-off in 14 years and the worst bond market performance in four decades meant only a handful of benchmarks delivered positive returns for investors in 2022.

“The two main products in FIA are equity-driven and multi-asset strategies, and last year was something of a perfect storm for both,” says Christophe Pochart, co-head of North America