Find out how the Smoothed Return Diversified Account (SRDA) is a great option for clients with a long-term investment horizon, looking to avoid market volatility while maintaining great return potential.
Launched in May, many of you have discovered how the SRDA, available in Genesis Universal Life, can benefit your clients. This solution offers many advantages, including:
- A gross rate of 4.5% and a net credited rate of 3.25% for 2022
- Low volatility - maximum target annual variation of credited rate: 0.5%
- A cruise-control investment option for your clients, actively managed by iAIM
- Access to asset classes generally reserved for the institutional market.
The SRDA: Predictable returns in unpredictable times
Markets can be unpredictable. The SRDA can help those with a long-term investment horizon looking to avoid market volatility.
Through the application of a smoothing formula, gains and losses earned on the underlying SRDA fund assets are spread out, resulting in low volatility returns from year to year.
Who can benefit from the SRDA?
According to their risk profile and life stage, consider the SRDA for:
- Clients approaching retirement
Transferring to the SRDA, whether progressively over time or in one go, allows clients to protect their accumulation and enjoy long-term stability while maintaining return potential. It's also a great way to diversify their assets for retirement.
- Clients with a low to moderate investor profile
For those seeking an alternative to level costs, combining the SRDA with YRT costs favours accumulation and allows clients to benefit from flexibility of deposit and from retirement liquidity with the IRS strategy.
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A market value adjustment (MVA) may apply to withdrawals, surrenders or transfers from the SRDA to other investment accounts. However, it does not apply when paying costs of insurance charges, or in case of death or disability.
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