S&P PRISM Framework and Considerations for Model Portfolios

Annexus and S&P Dow Jones Indices partnered in 2018 to develop the Performance Response Integrated Selection Method, or PRISM, Framework that was originally used to launch indices within the Fixed Index Annuity (FIA) and Index Universal Life (IUL) market. In 2022, S&P Dow Jones Indices and Annexus expanded their partnership to develop the S&P PRISM ETF Tracker Index, or the Index, that USA Financial Formulas licensed to develop the first multi-asset managed account that tracks an S&P index. The PRISM Framework provides a holistic view and an array of analytics to determine allocations. Just like a prism that shines an array of distinct colors, the PRISM Framework aims to provide over time an array of U.S. multi-asset allocations based upon a multi-indicator design.

The framework incorporates a collection of distinct and complementary indicators that dynamically
rebalances between equities, fixed income, commodities, and cash allocations.

This allows the PRISM Framework to:

• Be more proactive in its asset allocation framework compared to passive strategies or strategies
  that only reallocate based upon one indicator.
• Aim to provide better risk adjusted returns in a variety of cycles including bearish and inflationary
  markets.