Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

MetLife finally introduces Equity Index Plus GIC product

In the process of doing some research on guaranteed investment products, I came across the very recent announcement that MetLife has finally introduced the Equity Index Plus GIC product. This institutional invesment management product allows pension funds and 401-(k) providers to deposit blocks of money with MetLife and earn a guaranteed return of the S&P 500 equity index plus say 10 basis points. There is no investment management fee for this product and the money must be tied up for five years with no early withdrawl provisions.

What is interesting about this product is that this was first proposed by MetLife Investment Management Co. to the Group area of the Pension division back in 1995, but shot down as being far too risky. It is interesting to now see some ten years later that MetLife has decided that they need to offer this product in their stable of Met-managed GIC products. Just think of the growth of assets that the company has missed in the intervening ten years! Yikes!