WisdomTree Siegel Strategic Value Index – An Advanced Value Strategy

An Advanced Value Strategy

The WisdomTree Siegel Strategic Value Index^TM

Powerful Innovation from Two Industry Leaders

The WisdomTree Siegel Strategic Value Index^™ (the “Index”) was designed for use with the BCA^® suite of Fixed Indexed Annuities (FIAs) from Athene Annuity and Life Company, including BCA 2.0. The Index is built on a proven track record of successful financial innovation from:

Professor Jeremy Siegel earned a Ph.D. from the Massachusetts Institute of Technology and is the Russell E. Palmer Professor of Finance at the Wharton School, University of Pennsylvania. He also serves as the Senior Advisor to WisdomTree Investments, Inc.

WisdomTree is a leading asset manager with over $63 billion in assets under management and offers strategies designed to combine powerful strategic insights and objective asset allocation processes.¹

Proven Strategies to Help Navigate Changing Markets

The WisdomTree Siegel Strategic Value Index is designed to systematically leverage proven investment strategies with the aim to provide consistent long-term appreciation. These strategies include:

Seeking Value – Value is a well-known strategy that seeks to buy assets when the price is low and sell when the price is high. The Index seeks to systematically identify undervalued U.S. market sectors using Professor Siegel’s research.

Company Earnings – Evaluating the operating earnings of a company relative to its valuation can provide a greater understanding of its profitability, strength and value. The Index leverages operating earnings and valuation in the process to help identify the strongest undervalued sectors.

Market Trends – Trends analysis attempts to predict future bull and bear markets using historical return information. The Index attempts to use trends to capitalize on momentum when the markets are increasing and reduce exposure to the markets when they are declining.

Reducing Risk – When equity markets become volatile, shifting to a more conservative allocation can help reduce the impact of market drawdowns. The Index leverages a Market Protection Strategy with the aim to provide more consistent long-term returns.

The WisdomTree Siegel Strategic Value Index Brochure

Professor Siegel’s Process for Identifying Value in the U.S. Market

The WisdomTree Siegel Strategic Value Index leverages Professor Siegel’s methodology for evaluating company earnings relative to valuation and finding the most undervalued sectors in the U.S. market each quarter. The Index selects the four value sectors quarterly, and rebalances them to an equal weighting monthly. The diagram below shows how this is applied:

Siegel Equity Index Process

The market sectors evaluated are: Information Technology, Consumer Discretionary, Communication Services, Consumer Staples, Energy, Financial, Health Care, Industrial, Materials and Utilities. Market sectors are selected on the first day of trading each January, April, July and October.

A Strategic Way to Help Protect Against Potential Market Declines

The Index includes a tactical market trend response that makes strategic allocations to provide more or less exposure to a Market Protection Strategy that is designed to insulate against market declines. The Market Protection Strategy uses an equal allocation of the Siegel Equity Index and a strategy designed to hedge market risk and provide returns when the broad market is declining.²

Market Trend Indicator

When multiple market trends are negative, the Index may allocate 100% to the Market Protection Strategy. A daily process is designed to achieve a 6% daily volatility by allocating between the tactical market trend response and an interest-free cash account. When markets are relatively stable, the Index may increase its equity allocation up to 150%.

An Opportunity for Stable Long-Term Growth

The WisdomTree Siegel Strategic Value Index is designed to leverage Professor Siegel’s value market sector selection strategy with a daily market trend analysis and provide an opportunity for stable index appreciation through a variety of markets. The graph below shows this consistent growth since 2002.

A Strategy for Consistent Growth

Hypothetical Assumptions: Index value of the WisdomTree Siegel Strategic Value Index from 12/27/02 to 12/31/23. The Index was established on 12/3/18. Performance shown before this date is back-tested by applying the index strategy, which was designed with the benefit of hindsight, to historical financial data. Back-tested performance is hypothetical and has been provided for informational purposes only. Past performance is not indicative of nor does it guarantee future performance. The foregoing performance information does not include any relevant costs, participation rates, and charges associated with the BCA suite of FIAs or the Index. For more information on the BCA suite of FIAs with the Index, ask your insurance professional for an illustration.

The WisdomTree Siegel Strategic Value Index is available with all BCA 2.0 FIAs. Rates and product availability will vary by state and results may be higher or lower. See your insurance professional for detailed information.

¹ Assets under management as of 01/13/20.

² The Market Protection Strategy is designed to provide smoother returns and avoid major market downturns during times of high market volatility. If the Siegel Equity Index under performs the broader market as represented by large-cap U.S. equities, the Market Protection Strategy may still experience negative performance.

May not be available for use in all states.

This web page was designed to provide information on the WisdomTree Siegel Strategic Value Index and should only be used in conjunction with the BCA suite of FIAs. Fixed indexed annuities are not an investment and do not directly invest in the stock market or any index. It is not possible to invest directly in an index.

The WisdomTree Siegel Strategic Value Index™ (the “Index”) is the exclusive property of Canadian Imperial Bank of Commerce (Canadian Imperial Bank of Commerce, together with its affiliates, “CIBC”). CIBC has engaged Bloomberg Finance L.P. (“Bloomberg”) to maintain and to make certain calculations related to the Index. “Canadian Imperial Bank of Commerce”, “CIBC” and “Index” (collectively, the “CIBC Marks”) are trademarks or service marks of CIBC. CIBC has licensed use of the Index and the CIBC Marks to Athene Annuity and Life Company (“Athene”) for use in one or more fixed indexed annuities offered by Athene (the “Product(s)”). CIBC is not the issuer of the Products and its sole contractual relationship with Athene is to license the Index and the CIBC Marks to Athene. CIBC, Jeremy Siegel (“Siegel”), senior research advisor to WisdomTree Investments, Inc. (“WisdomTree”), and WisdomTree each contributed to the development of the index without considering the needs of Athene or any annuitant. Neither CIBC, Siegel nor WisdomTree make any representation or warranty, express or implied, regarding the Index or its development and have no responsibilities, obligations or liabilities with respect to the inception, adjustment, maintenance, operation or calculation. None of CIBC, WisdomTree, Bloomberg or Siegel are affiliated with each other or control or are controlled by each other. “WisdomTree^®” is a registered trademark of WisdomTree. WisdomTree and Siegel have licensed certain rights to CIBC to use their names in connection with the Index.

None of CIBC, Bloomberg, Siegel and WisdomTree or any other third-party licensor (collectively, the “Index Parties”) to CIBC is acting, or has been authorized to act, as an agent of Athene or has in any way sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced any Products or provided investment advice to Athene. No Index Party is a fiduciary or agent of any purchaser, seller or holder of any Product, or has made any representation or warranty, express or implied, regarding the advisability of purchasing, selling or holding any Product or the ability of the Index to track corresponding or relative market performance. Purchasers of any Product neither acquire any interest in the Index nor enter into any relationship of any kind whatsoever with any of the Index Parties. No Index Party guarantees the timeliness, accurateness, or completeness of the Index or any data or information relating thereto and shall have no liability in connection with the Index or any data or information relating thereto. No Index Party shall have any liability with respect to any Product, nor any liability for any loss relating to any Product, whether arising directly or indirectly from the use of the Index, its methodology, or otherwise. The selection of the Index as a crediting option under any Product does not obligate Athene to invest annuity premiums in the components of the Index. Any obligation to invest annuity premiums received under the Products are determined solely by Athene.

BLOOMBERG is a trademark and service mark of Bloomberg. Bloomberg and its affiliates are not affiliated with Athene or CIBC. Bloomberg’s association with CIBC is to act as the administrator and calculation agent of the Index, which is the property of CIBC. Bloomberg does not guarantee the timeliness, accurateness, or completeness of the Index or any data or information relating thereto and shall have no liability in connection with the Index or any data or information relating thereto.

In calculating the level of the Index, the index methodology deducts a maintenance fee of 0.20% per year, calculated daily. This fee will reduce the level of the Index and thus the amount of interest, if any, that will be credited to any Product. Furthermore, while the volatility control applied by CIBC as part of the index methodology may result in less fluctuation in rates of return as compared to indices without volatility controls, it may also reduce the overall rate of return for products referencing the Index as compared to other indices not subject to volatility controls.

Athene BCA 2.0 ANN19 (01/19), ANN19CS08 (01/19), ANN19CS10 (01/19), ANN19CS12 (01/19) or state variation, Family Endowment Rider PBEDB (01/19), PBEDBRS (01/19) or state variation, Balanced Allocation Lifetime Income Rider ANNIRS (01/19), ANNIRSRS (01/19), ANNIRF (01/19), ANNIRFRS (01/19) or state variation are issued by Athene Annuity and Life Company, West Des Moines, IA. Product features, limitations and availability vary; please contact your insurance professional to see the Certificate of Disclosure for full details. Products available in 49 states (excluding NY) and D.C.

Idaho and Oregon: The Athene BCA 2.0 ICC18 ANN19 (01/19), ICC18 ANN19CS06 (01/19), ICC18 ANN19CS08 (01/19), ICC18 ANN19CS10 (01/19); the Family Endowment Rider ICC18 PBEDB (01/19), ICC18 PBEDBRS (01/19); the Balanced Allocation Lifetime Income Rider ICC19 ANNIRS (01/19), ICC18 ANNIRSRS (01/19), ICC19 ANNIRF (01/19), ICC18 ANNIRFRS 01/19) are issued by Athene Annuity and Life Company, West Des Moines, IA. Product features, limitations and availability vary; see Certificate of Disclosure for full details. Products not available in all states.

This material is a general description intended for general public use. Athene Annuity and Life Company (61689), headquartered in West Des Moines, Iowa, and issuing annuities in 49 states (excluding NY) and D.C., and Athene Annuity & Life Assurance Company of New York (68039), headquartered in Pearl River, New York, and issuing annuities in New York, are not undertaking to provide investment advice for any individual or in any individual situation, and therefore nothing in this should be read as investment advice. Please reach out to your insurance professional if you have any questions about Athene products or their features.

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Annuities contain features, exclusions and limitations that vary by state. For a full explanation of an annuity, please contact your insurance professional to see the Certificate of Disclosure for costs and complete details.

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