Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, has introduced Lockwood Investment Strategies Longevity IncomeSolutions (LIS2), a financial application that wraps a lifetime income guarantee from the PHL Variable Insurance Company, a subsidiary of The Phoenix Companies, Inc., around an investors managed account assets.
This new offering is a component of Pershing Managed Account Solutions and is offered through Pershings affiliate, Lockwood Capital Management, Inc. (LCM). The Securities and Exchange Commission declared the registration statement of the income guarantee offered by Phoenix effective 12 March 2008.
LCM has partnered with Phoenix, a provider of life insurance and annuities, which will be the first insurer to offer an income guarantee on top of a managed account. When a client invests in an LCM LIS2 asset allocation model and adds Phoenixs Guaranteed Retirement Income Solutions (GRIS), Phoenix will guarantee predictable lifetime income payments regardless of the actual performance, even if the assets are depleted, subject to certain limits.
In contrast to traditional annuity products, an investor isable to retain ownership of the assets and will have access to the guaranteed income stream at age 65 orolder.
“The addition of LIS2 to our comprehensive platform underscores our commitment to develop and deliver a suite of industryleading managed account solutions for our customers that can help them meet investors ongoing needs and grow their businesses. Our LIS2 offering is designed to enable our customers to provide their clients with an innovative and flexible solution that will assist them in achieving their financial goals,” says Jim Seuffert, CEO, Pershing Managed Account Solutions.
“Its clear we need new ways to help our aging population attain a comfortable and satisfying retirement, and these solutions need to be simple, low cost and flexible. Through this strategic alliance with Lockwood Capital Management, we can apply features of life insurance and annuities to investment products and offer investors a unique approach to guaranteeing an income for life,” adds Dona D. Young, chairman, president and CEO, Phoenix.