The investment objective of the Stock Index Account is favorable long-term return from a diversified portfolio selected to track the overall market for common stocks publicly traded in the U.S., as represented by a broad stock market index. Of course, there is no guarantee that the Stock Index Account will meet its investment objective.
The SIA seeks a favorable long-term rate of return from a diversified portfolio selected to track the overall market for common stocks publicly traded in the United States, as represented by the Russell 3000® Index (the “Index”), a broad market index. Under normal circumstances, the SIA has a policy of investing at least 80% of its assets (net assets, plus the amount of any borrowings for investment purposes) in securities within the Index. Advisors will provide contract owners with at least 60 days’ prior notice before making changes to this policy. Although the SIA invests in stocks in the Index, it does not necessarily invest in all 3,000 stocks in the Index. Rather, Advisors approaches full replication of the Index to create a portfolio that closely matches the overall investment characteristics (for example, yield and industry weight) of the Index. This means that a company can remain in the portfolio even if it performs poorly, unless the company is removed from the Index.