Annuities Get an Academic Upgrade as Annexus and Athene Target Volatility

SCOTTSDALE, Ariz. and WEST DES MOINES, Iowa – December 16, 2025 – In a significant move aimed at reshaping retirement savings, Annexus and Athene have announced a major overhaul of their award-winning Athene® BCA® 2.0 Suite of Fixed Indexed Annuities (FIAs). The two industry heavyweights are embedding sophisticated, academically-driven indexing strategies into their products, betting that cutting-edge financial theory can provide investors with a more stable path through increasingly turbulent markets.

The enhancements introduce a trio of new indices, each born from collaborations with world-renowned financial academics and institutions. This initiative signals a deeper push within the annuity industry to move beyond simple market tracking and offer more dynamic, rules-based solutions designed to mitigate risk and enhance returns for a generation of retirees anxious about capital preservation.

“Our partnership with Athene to enhance the BCA index options is about more than just updating a product,” said Ron Shurts, CEO and Co-Founder of Annexus, in the announcement. “It’s about enhancing our commitment to providing powerful, academically driven strategies that are designed to provide better client outcomes.”

The Academic Edge: A New Frontier in Annuity Design

The centerpiece of the announcement is the introduction of three distinct index strategies, each backed by significant intellectual capital. These are not your typical market benchmarks; they are complex engines designed to navigate market conditions actively.

The S&P 500® Distance Stabilizer TCA Index, developed with Société Générale, introduces a novel “distance timer strategy.” This mechanism dynamically adjusts its exposure to the S&P 500®, aiming to maintain a stable level of volatility. In theory, it can reduce exposure during periods of high turbulence and increase it during calmer market rebounds, a feature designed to smooth out returns and potentially allow Athene to offer higher participation rates to clients.

Adding to the intellectual firepower is the RAFI™ Harvey GS Index, created with Professor Campbell Harvey of Duke University, one of finance's most cited academics. The index, which leverages intellectual property from Research Affiliates, is designed to be nimble, shifting its allocation between growth and value equities based on market signals. Crucially, it incorporates a methodology to dynamically adjust allocations to help mitigate downside risk during market downturns, a direct appeal to risk-averse retirement savers.

Perhaps the most unconventional new option is the MSCI MKT MediaStats Multi-Asset Index, developed with Professor Ronnie Sadka of Boston College. This index operates on the premise that media attention can influence market behavior. Using proprietary technology to track millions of articles daily, the index measures asset sensitivity to over 55 evergreen media narratives—such as inflation, housing, or natural disasters—to select assets it expects to perform well. It attempts to capture momentum driven by shifting investor sentiment as reflected in global news coverage.

These new additions join an existing roster of academically-backed indices within the BCA suite, including those developed with Nobel laureate Professor Robert Shiller of Yale University and Professor Jeremy Siegel of the Wharton School. This creates a comprehensive portfolio of index options grounded in diverse financial theories, from value investing to behavioral finance.

Seeking Stability in a Volatile World

For the average investor, the complex algorithms and academic pedigrees translate into a simple, powerful promise: a safer, more predictable retirement journey. Fixed indexed annuities have long been sold on the premise of principal protection with the potential for market-linked growth. These new enhancements aim to refine that value proposition by building more intelligent shock absorbers into the product itself.

The core appeal is risk mitigation. For instance, the dynamic risk controls within the RAFI Harvey GS Index and the volatility management of the S&P 500 Distance Stabilizer are engineered to automatically de-risk a portfolio when markets become choppy. This can help protect investors from the full brunt of a downturn, a feature that resonates strongly with those nearing or in retirement who have less time to recover from significant losses.

However, these sophisticated designs come with important caveats. The new indices were only recently launched in the fall of 2025, meaning their impressive performance histories are based on hypothetical, back-tested data. As one independent analyst noted, “Back-testing can be a powerful tool, but it can also suffer from hindsight bias. Real-world performance is the only true test.” Furthermore, these indices are not without costs. They are generally structured as “excess return” indices, meaning their performance is calculated after deducting a reference interest rate, and they also account for embedded transaction and rebalancing costs, which will reduce the final credited interest.

Innovation Meets Scrutiny in the Annuity Market

The move by Annexus and Athene is a clear strategic play for leadership in a fiercely competitive market. By wrapping their products in the prestige of top-tier academic research, they aim to differentiate themselves and attract discerning financial advisors and their clients. It’s a bet that sophistication sells, especially when it’s tied to the promise of security.

This trend toward complexity, however, is not without its critics and is drawing increasing attention from regulators. The intricate methodologies can create a “black box” effect, making it difficult for even seasoned financial professionals to fully understand how the indices work. This raises critical questions about transparency and suitability.

“The more complex the product, the greater the burden on the advisor to ensure it’s truly in the client’s best interest,” commented a compliance consultant who specializes in insurance products. “Regulators like the NAIC and FINRA are watching this space closely, and the push for clear, simple disclosure has never been stronger.”

This places a heavy responsibility on the distribution network. Annexus relies on affiliated Independent Distribution Companies to bring these products to market, which means robust advisor training is essential. Financial professionals must be equipped not only to understand the mechanics of a media-narrative-driven index but also to explain its potential benefits and risks to a 65-year-old retiree in plain English.

Ultimately, the enhancements to the Athene BCA 2.0 suite represent a fascinating convergence of academic theory and commercial product design. They offer a potentially powerful new set of tools for retirement planning but also demand a higher level of diligence from the industry and the investors who place their trust in it.