Now, when markets are volatile, clients don’t have to feel stuck. Invesco® V.I. Defined Outcome Funds, available through advisory variable annuities, offer upside potential with downside protection, along with the flexibility to move in and out of the funds1 based on your clients' needs and the current environment.
Fund Highlights
Consider the following important features when selecting Invesco® V.I. Defined Outcome Funds for your clients.
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Outcome Period
- One-year outcome periods start at the beginning of each calendar quarter
- Initial cap and buffer are stated at the beginning of each outcome period
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Downside Protection Buffer
- Protects the first 10% of index losses
- Remaining buffer varies during an outcome period
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Growth Up to a Cap
- Stated cap is the maximum amount of growth clients can earn
- Remaining cap varies during an outcome period
Designed to capture market growth by tracking the price return of a market index up to a maximum known as a cap, Invesco® V.I. Defined Outcome Funds offer clients the opportunity to take advantage of positive markets. When index returns are down, these funds provide a "buffer" against the first 10% of losses, so clients receive a defined amount of protection over a specific one-year outcome period.
While clients have the flexibility to invest in these funds at any time, and move in and out of the funds without creating a taxable event, those who hold a fund throughout the entire outcome period can better define the outcome.
Provide Upside Potential with Downside Protection
The above scenarios are hypothetical and for illustrative purposes only. They do not reflect a specific fund. You cannot invest directly in an index. The cap rate used does not represent current cap rates available. A new cap is declared for each outcome period.
The chart does not include any fees. Actual returns would be reduced by all applicable fees. To learn more about Invesco® V.I. Defined Outcome Funds, options, and availability, please visit Invesco.com/Defined-Outcome-I for more information.
View Each Fund's Remaining Caps and Buffers
View all Invesco® V.I. Defined Outcome Funds.
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1Transfers are limited to 25 for each calendar year. If a client has used all 25 transfers available in a calendar year, that client may no longer make transfers between the investment options until the start of the next calendar year. See the prospectus for complete transfer/trade information.
The funds seek to provide a buffer against the first 10% of index price decreases over each outcome period, before fund expenses (the “Buffer”). The fund, and therefore investors, will bear all index losses exceeding 10%. There is no guarantee the fund will successfully buffer against index price decreases. The Buffer is designed to have its full effect only for investors who hold fund shares for an entire outcome period. For each outcome period, fund performance is subject to an upside return cap that represents the maximum percentage return the fund can achieve during the outcome period, before expenses (the “Cap”). The Cap is set on the first day of an outcome period and may increase or decrease from one outcome period to the next. If the index experiences returns over an outcome period in excess of the Cap, the fund will not experience those excess gains.
The “S&P 500® index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Pacific Life Insurance Company. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Pacific Life’s product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® index.
The Invesco® V.I. Defined Outcome Funds are not sponsored, endorsed, sold or promoted by the Nasdaq or its affiliates (Nasdaq, with its affiliates, are referred to as the “Corporations”). The Corporations have no liability in connection with the administration, marketing or trading of the Invesco® V.I. Defined Outcome Funds. “Nasdaq®” is a registered trademark and is used under license.
Invesco® V.I. Defined Outcome Funds may not be available at all firms or in all states. The Invesco® V.I. Defined Outcome Funds are designed to produce predetermined investment outcomes relative to the performance of an underlying security or index. The defined outcomes sought by the fund include the Buffer and Cap (“Outcomes”) based upon the performance of the index over an outcome period. There is no guarantee that the Outcomes for any outcome period will be realized. A shareholder may lose their entire investment. The fund’s strategy is designed to produce the Outcomes on the last day of an outcome period for investors in the fund as of the beginning of the outcome period. It should not be expected that the Outcomes will be provided at any point prior to the end of an outcome period. The Outcomes are measured from the fund’s net asset value (the per share value of the fund’s assets (“NAV”) on the first day of the outcome period. The fund does not track the index except over an entire outcome period, and the fund’s NAV will not increase or decrease at the same rate as the index during an outcome period. The caps and buffers do not include any product-level mortality, expense, administration or contract platform fees. The cap and buffer are reduced by these fees based on the daily fee rate and remaining days in the outcome period.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Annuity products are not FDIC insured, may lose value, and are not guaranteed by any bank.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Variable and fixed annuity products are available through licensed third parties.
For financial professional use only. Not for use with the public.
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