CRI Model Allocations

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CRI Model Allocations
CRI Segments 3-6 February 24th , 2009 Prepared
by Thomas Kowalczyk Symetra Life Insurance
Company Bellevue, Washington
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Expected Returns

• Calculated using Morningstar Encore software with
  historical data from Ibbotson
• Used building block method for forecasting
  expected returns
• Historical returns by asset class back to 1926 to
  determine equity risk premium
• Risk-free Rate of return based on 20-year U.S.
  Treasury Bond
• Industry and size premiums based on Ibbotson
  research
• Expected Returns are based on long-term
  assumptions (10 years)

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Expected Return by Asset Class
It is not possible to invest directly in any
index or benchmark. TR stands for Total Return
which includes price plus gross cash dividend
return.
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Model Allocations
The net expected return (net of average total
expenses) is calculated by subtracting the
average total expense ratio of Symetra Focus
Variable Annuity, 1.59, from the expected model
returns
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Asset Allocation for Segments 3 4 of the CRI
Modelsm
Customized Retirement Income Modelsm (CRI)
program is provided by Symetra Life Insurance
Company.
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Asset Allocation for Segments 5 6 of the CRI
Modelsm
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Mean- Variance Optimization
The model allocation for bucket 3 and 6 show the
top and the bottom of the efficient frontier.
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Historical Performance of Model Portfolios
Chart shows historical performance of the 4
models over a 29 year period from 1979-2007 had
they been in existence. Historical performance
could only be shown back to 1979 as some of the
benchmarks used in the models did not exist
prior.
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Historical Performance of Model Portfolios
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Historical Performance of Model Portfolios
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When Target Rate is not Achieved

• How does this affect the potential income stream?

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Accumulation Comparison
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Income Stream Comparison
3,256
Given the accumulation amounts on the previous
slide, this chart shows the expected monthly
income stream using a 5yr period certain quote
with Advantage Income Immediate Annuity. As of
3/4/09.
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Disclosures

• Clients should carefully consider their
  retirement needs, objectives, risk tolerance and
  overall suitability before
• implementing any strategy. Using
  diversification/ asset allocation as part of your
  investment strategy neither
• assures nor guarantees better performance and
  cannot protect against loss in declining
  markets.
• Guarantees and benefits are subject to the
  claims-paying ability of Symetra Life Insurance
  Company.
• Asset allocation does not assure a profit or
  prevent a loss.
• Historical rates are not indicative of future
  results
• Hypothetical rates of return do not reflect the
  fluctuation that is inherent with investments.
  Actual rates of return may
• be higher or lower than those used in this
  presentation.
• Past Performance is no guarantee of future
  returns. Investment returns and principal value
  will fluctuate and when
• redeemed, may be worth more or less than the
  original cost.
• Reach for Great ThingsSM is a service mark of
  Symetra Life Insurance Company