PIMCO Global Elite Markets Index

Developed to adapt to changing market conditions

An index designed for more stable growth potential

The PIMCO Global Elite Markets Index (the “Index”) utilizes some of the same innovations and principles PIMCO uses when managing assets for institutional investors. Designed to help generate more consistent returns while managing volatility, the Index is founded upon three core principles:

Global diversification1

To help provide greater growth opportunities through changing markets, the Index utilizes a diversified group of global equities and bonds

Equity momentum and bond outlook

The Index systematically overweights the equity markets exhibiting the strongest momentum and the bond markets with the strongest outlook

Return stabilization

To help provide more stable returns, the Index can make daily adjustments to the mix of equities, bonds and cash with the aim to reduce risk and help stabilize returns through changing markets

PIMCO, one of the world’s leading asset managers, designed the Index using an objective and consistent process that applies their asset allocation insights. For more information, please visit pimcoindex.com/gem.

Innovative index rebalancing process

The Index applies PIMCO’s innovative bond allocation process designed to help generate more consistent returns through changing interest rate environments. The Index also systematically adjusts equity market weights based on momentum—the tendency for assets with the strongest recent returns to be likely to continue performing over the short term.

Allocate based on the strongest
equity momentum and bond outlook

The Index also rebalances daily between the selected equity and bond allocations and interest-free cash to help maintain a 5% volatility target.3

Benefit from global diversification

The PIMCO Global Elite Markets Index helps provide growth opportunities through changing markets with access to 11 globally diversified equity and bond assets across the U.S., developed markets, and emerging markets. The flexibility to allocate to a broad universe can help the Index benefit from upward trends in global markets, while also reducing risk through diversification.

A broadly diversified index

Indices are not available for direct investment. The Index gains exposure to each asset class through futures indices, which track the performance of the underlying futures instruments. See bottom of this page for associated risks.

The power of return stabilization

The PIMCO Global Elite Markets Index dynamic rebalancing process is designed to help stabilize long-term returns through changing market environments. The graph below shows how the Index would have performed had it been available in past markets.

PIMCO Global Elite Markets IndexTM

Source: PIMCO

Hypothetical back-tested performance is for illustrative purposes only. Past performance is not indicative of future results. Data shown from 3/1/2001 to 12/31/2020. The PIMCO Global Elite Markets IndexTM was launched on 12/30/19. The above hypothetical chart is intended only to show the hypothetical growth of the PIMCO Global Elite Markets IndexTM. It does not reflect the amount of interest credited to an index annuity during this time. Returns for the PIMCO Global Elite Markets IndexTM before these dates represent hypothetical data determined by retroactive application of a back-tested model, itself designed with the benefit of hindsight. The Index is an Excess Return index, which reflects the return of the underlying instruments in excess of a short-term interest rate. It also includes an embedded cost. Actual results for a specific insurance contract would depend partly on the crediting strategy chosen and the spread and participation rate for the time period(s) shown. You cannot invest directly in an index.

1 Diversification, momentum, and return stabilization strategies do not guarantee positive performance or prevent negative returns.

2 This portion of the Index allocates at least 100% to bonds but may increase the allocation as high as 150% when bond volatility is low.

3 PIMCO Global Elite Markets Index methodology adjusts exposures to achieve a volatility target. It is possible that the index could realize a volatility slightly greater or lower than its target.

This material was prepared to support the marketing of X5 Advantage Annuity. This information is general in nature, may be subject to change and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. For advice concerning your situation, consult your attorney, financial professional, tax advisor, or accountant.

Tax-qualified plans such as IRAs, 401(k)s or 403(b) plans are tax deferred regardless of whether or not they are funded with an annuity. If you use X5 Advantage to fund a tax-qualified plan, you should know that an annuity does not provide any additional tax-deferred treatment of interest beyond the treatment by the tax-qualified plan itself. You should only use an index annuity in a tax qualified plan if you want to benefit from features other than tax deferral. If you intend to take Required Minimum Distributions (RMDs), please consult with a tax advisor concerning your particular circumstances. X5 Advantage may not be appropriate if you plan to make ongoing contributions.

Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be suitable or appropriate for all individuals.

Stocks and bonds are subject to risks, including the possible loss of principal. International stocks that provide exposure to foreign markets involve special risks, such as currency fluctuations, differing financial reporting and regulatory standards, and economic and political instability. These risks are highlighted when stocks are from emerging markets. Stocks of small cap companies are generally more volatile and not as readily marketable as those of larger companies. Government bonds and Treasury bills are subject to interest rate risk, but they are backed by the full faith and credit of the national government if held to maturity. It is not possible to invest directly in an index.

Hypothetical and simulated examples have many inherent limitations and are generally prepared with the benefit of hindsight. There are frequently sharp differences between simulated results and the actual results. There are numerous factors related to the markets in general or the implementation of any specific investment strategy, which cannot be fully accounted for in the preparation of simulated results and all of which can adversely affect actual results. No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses, or results similar to those shown.

The PIMCO Global Elite Markets Index (the “Index”) is an excess return index that allocates to a diversified range of global equity and global government bond markets. It employs a rules-based rebalancing process that is designed to enhance returns and manage volatility. The Index is a trademark of Pacific Investment Management Company LLC (“PIMCO”) and has been licensed for use for certain purposes by American General Life Insurance Company (“the Company”) with this annuity (“the Product”). The Index is the exclusive property of PIMCO and is made and compiled without regard to the needs, including, but not limited to, the suitability or appropriateness needs, as applicable, of the Company, the Product, or owners of the Product. The Product is not sold, sponsored, endorsed or promoted by PIMCO or any other party involved in, or related to, making or compiling the Index. PIMCO does not provide investment advice to the Company with respect to the Product or to owners of the Product. It is not possible to directly invest in the Index.

Neither PIMCO nor any other party involved in, or related to, making or compiling the Index has any obligation to continue to provide the Index to the Company with respect to the Product. Neither PIMCO nor any other party involved in, or related to, making or compiling the Index makes any representation regarding the Index, Index information, performance, annuities generally or the Product particularly.

PIMCO disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. PIMCO shall have no responsibility or liability whatsoever with respect to the Product.

The Index is comprised of a number of constituents, some of which are owned by entities other than PIMCO. The Index relies on a variety of publicly available data and information and licensable equity and fixed income sub-indices. The Index is calculated independently from PIMCO. All disclaimers referenced in herein relative to PIMCO also apply separately to those entities that are owners of the constituents of the Index and the index calculation agent.

In calculating the level of the Index, the index methodology deducts an embedded cost of 0.50% per year, which will reduce the level of the Index and the amount of interest, if any, that will be credited to the Product.

Indices are not a permanent part of the contract and may be removed due to circumstances beyond the control of American General Life Insurance Company. Such circumstances include, but are not limited to, the discontinuation of an index, a change in the composition or calculation of an index, the inability to license the use of an index and the inability to hedge risks associated with the index. Special rules govern how assets in an index account with a discontinued index may be reallocated. These rules may differ by state. Please see the Owner Acknowledgment and Disclosure Statement for more information.

Genesis Development Group, Inc. has patents and patents pending that may cover elements of the products discussed in this document. This document does not convey any license or other rights in these patents.

Annuities are issued by American General Life Insurance Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019. X5 Advantage Single Premium Deferred Fixed Index Annuity, Contract Number AG-808 (07/19) (AG-808-ID (07/19) for Idaho residents). AGL is a member company of American International Group, Inc. (AIG). The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL are its responsibility. Guarantees are backed by the claims-paying ability of AGL. AGL does not issue products in the state of New York. Annuities and riders may vary by state and are not available in all states.

Annexus is an independent product distribution firm that works with Independent Distribution Companies to distribute retirement products. Annexus is not affiliated with AIG or AGL.

I6040MIC.2 (03/21)