Pursue, Preserve, Persist
Managed risk investment choices within
ForeRetirementTM III variable annuities
ABOUT VARIABLE ANNUITIES
Variable annuities are long-term investments intended for retirement purposes that offer tax-deferral,
professionally managed investment options and flexible payouts. Values will fluctuate with investment
performance, and the annuity may gain or lose value. Charges and fees will also reduce its value.
Optional benefits are not available for purchase outside of a variable annuity and may be elected at an
additional cost. A standard death benefit is included in the base product. Suitability and willingness to
purchase the variable annuity must be considered prior to the potential benefits of any optional features.
Not a bank deposit
Not FDIC/NCUA insured
Not insured by any federal government agency
No bank guarantee
May lose value
Not a condition of any banking activity
There is no guarantee that any investment
will achieve its objectives, generate positive
returns, or avoid losses.
Manage volatility to help
further your objectives.
A variable annuity can be an effective part of your overall retirement strategy, but you need to find
one with the right investment options. You want choices that allow you to effectively pursue growth
potential for a comfortable retirement. You are also realistic and realize that losses may happen along
the way. Limiting losses can help preserve your progress and make a recovery more efficient. If you are
planning for your retirement with these objectives in mind, you may be interested in a variable annuity
incorporating investment options with strategies that are designed to reduce the volatility and limit the
downside risk of the financial markets.
ForeRetirementTM is a variable annuity offering tax-deferred investing, payout certainty and optional
benefits for your retirement needs. Among its investment choices, ForeRetirement features managed
risk options that may help you:
•Pursue your growth objectives
•Preserve your potential for success by striving to limit losses
•Persist toward your goals as performance recovers
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
1
VOLATILITY AND HOW IT AFFECTS YOUR INVESTMENT
Volatility — dramatic swings in investment values over short periods of time — can be unsettling to
investors. Typically, higher levels of volatility signal a decline in performance, which would then require
a recovery period to restore value before new growth can be achieved. The gain required to restore an
investment to its original value after a loss compounds as the loss increases. Based on this principle of
investing, a managed risk strategy that helps reduce volatility and downside risk offers some potential
benefits:
• The ability to contain losses helps to mitigate the risk of an untimely dramatic decline
when you may not have time to recover before needing the money.
• With less volatility and smaller losses, you will require a less significant gain to recover, helping you
get back in a position for growth.
The chart below illustrates a hypothetical investment and the compounding effect losses have on the
corresponding gain required to recover. For example, while a loss of 10% requires only 11% to get back to
the original investment value, an investment that loses 40% of its value requires a 67% gain to recover.
% Decline
in Value
0%
What it takes to recover from a down market
Initial Investment
% Gain to
Recover
0%
10%
11%
20%
25%
30%
43%
40%
67%
50%
60%
100%
A strategy that helps to reduce losses means you
will require a less significant gain to recover after a
market downturn. This may help you get back in a
position for growth more quickly.
150%
This chart is hypothetical and intended to illustrate the concept of the impact of returns and not intended to illustrate the
performance of any specific product and/or investment option.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
2
MANAGED RISK INVESTING WITHIN FORERETIREMENT
Managed risk investment options are available to all ForeRetirement contract owners. However, when you
elect any optional benefit within a ForeRetirement variable annuity, you must allocate your investment
according to one of two investment requirements:1,2
• 100% allocation among the 11 available managed risk investment options
- Required for Daily +4, Daily 6, Maximum Daily Value II and Return of Premium II.
- Transfers among the managed risk investment options are allowed.
- Allocation may be among multiple options or within a single option.
• 80% allocation among the 11 available managed risk investment options, 20% allocation to the fixed account
- Required for Daily +5, Daily 7 and Legacy Lock III.
- Transfers among the managed risk investment options are allowed.
- Transfers between the managed risk options and the fixed account are not allowed.
- The 80%/20% balance applies to premium allocation and is not rebalanced for gains or losses.
The 11 available managed risk investment options, collectively referred to as “the Funds,” all:
• Pursue growth objectives through a mix of equity and fixed income underlying investments. These
holdings, which differ by Fund, may include mutual funds, Exchange Traded Funds (ETF), individual
securities or derivatives.
• Employ a managed risk strategy designed to help manage portfolio volatility and downside risk.
LEVERAGING WELL-KNOWN ASSET MANAGERS
Each of the Funds provides access to one or more well-known asset managers for its growth objectives. Ten
of the options are Forethought Variable Insurance Trust (FVIT) Funds, which are managed by Forethought
Investment Advisors, LLC and available exclusively within ForeRetirement variable annuities. The FVIT
Funds primarily invest in specific funds or fund families offered by the managers below. In certain cases, the
manager may be a sub-adviser to the Fund. The eleventh choice is the American Funds Managed Risk Asset
Allocation Fund, which is managed by Capital Research and Management Company.
1
Optional benefits are available at an additional cost.
In the event of multiple benefit elections with conflicting investment requirements, the requirements for the Daily withdrawal benefit elected will prevail.
2
Wellington Management Company LLP is a SEC-registered investment adviser and an independent and unaffiliated sub-adviser to Forethought.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
3
CONTROLLING VOLATILITY WITHIN FORERETIREMENT
The managed risk investment options seek to control portfolio volatility and downside risk while retaining
equity and fixed income exposure for growth and income potential. To hedge against volatility and
manage downside risk, each Fund maintains a managed risk allocation of risk-mitigating investments —
such as futures, options and other derivatives.
The Funds apply one of two approaches in deploying the managed risk strategy. Each Fund either:
1. Uses a distinct managed risk component, managed by a separate sub-advisor but aligned with the
investments within a complementary capital appreciation and income component, or
2.Uses a dynamic management strategy, where a single sub-advisor purchases the managed risk
investments alongside the Fund’s growth- and income-seeking investments.
As a result of the Funds’ risk management design, the contract value normally may neither decline
in value as much as the overall market in downturns, nor increase in value to the same extent as the
equity or bond markets during market upswings. While moderating performance, this may also help to
simultaneously mitigate insurance company risk under an optional guarantee. As with any investment,
there is no guarantee that the Funds will either achieve their objectives or provide a positive return.
If you are uncomfortable with investing in these investment options, the optional benefits within
ForeRetirement may not be suitable for you.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
4
Keep your objectives in sight
USING THE MANAGED RISK INVESTMENT CHOICES
WITHIN A FORERETIREMENT VARIABLE ANNUITY MAY
BE A COMPELLING STRATEGY TO HELP YOU:
Pursue your growth objectives
Preserve your potential for success
by striving to limit losses
Persist toward your goals as
performance recovers
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
5
Eligible investment choices when electing optional benefits
The Funds’ investment strategies are executed in one of two ways:
1
l
Capital appreciation and income component for growth objectives;
a separate sub-advisor dedicated to the managed risk component.
2
l
A single sub-advisor manages both growth and risk objectives.
Fund Option
1
Target Equity
Exposure
Underlying Investment Universe
Component-basedmanaged
managedrisk
riskoptions
options
Component-based
Target Allocation using ETFs
FVIT Growth Managed Risk Portfolio
85%1
FVIT Moderate Growth Managed Risk Portfolio
65%1
FVIT Balanced Managed Risk Portfolio
50%1
Index-based ETFs featuring
BlackRock iShares
Managed risk component sub-advised by Milliman*
Target Asset Allocation
FVIT Franklin Dividend and Income
Managed Risk Portfolio
75%1
Individual Securities (selected by Franklin) and
Franklin Mutual Funds
Managed risk component sub-advised by Milliman*
FVIT Select Advisor Managed Risk
Portfolio
75%1
Insurance Funds from American Century, Invesco,
MFS and Putnam and others
Managed risk component sub-advised by Milliman*
FVIT American Funds® Managed Risk Portfolio
65%1
American Funds Insurance Series Funds®
Managed risk component sub-advised by Milliman*
FVIT Wellington Research Managed Risk
Portfolio2
65%1
Individual Securities
(selected by Wellington Management)
Managed risk component sub-advised by Milliman*
40-80%1
American Funds Insurance Series Asset Allocation
Fund
Managed risk component sub-advised by Milliman*
Variable ~60%1,3
BlackRock V.I. Global Allocation Fund
Managed risk component sub-advised by Milliman*
Variable Asset Allocation
American Funds Managed Risk
Asset Allocation Fund
FVIT BlackRock Global Allocation
Managed Risk Portfolio
2
Dynamic managed risk options
FVIT Goldman Sachs Dynamic Trends
Allocation Portfolio
50-70%
Equity ETFs, derivatives and fixed income
securities
FVIT PIMCO Tactical Allocation Portfolio
30-75%
Equity securities, fixed income instruments,
derivatives and exchange traded funds
1
Target percentages do not apply to the managed risk portion of the Fund.
2
Formerly known as FVIT WMC Research Managed Risk Portfolio. Name change effective 4/30/2015.
3
Target is based on the allocation of the composite Reference Benchmark of the BlackRock Global Allocation V.I. Fund, the primary underlying
investment of the FVIT BlackRock Global Allocation Managed Risk Portfolio. Please refer to the Fund’s prospectus for further information.
* Milliman is Milliman Financial Risk Management LLC. The managed risk component is comprised of hedge instruments which primarily include equity
futures contracts, treasury futures, currency futures and other derivatives.
Each of the component-based managed risk options invests a portion of its assets in a mix of equity and fixed income investments
(typically 80% or more), and a portion in a managed risk strategy designed to reduce the downside risk of the portfolio. The proportion of
equities and fixed income investments shown excludes the managed risk strategy and may vary with market conditions and the investment
adviser’s assessment of their relative attractiveness as investment opportunities. The adviser may modify the target allocation from time to
time. Please refer to each Fund’s prospectus for more information.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
6
FVIT Growth Managed Risk Portfolio
FVIT Moderate Growth Managed Risk Portfolio
FVIT Balanced Managed Risk Portfolio
FVIT Balanced Managed Risk Portfolio,
Moderate Growth Managed Risk Portfolio
and Growth Managed Risk Portfolio combine
investments in Exchange Traded Funds
(ETFs) with a sophisticated hedging strategy
managed by Milliman Financial Risk
Management, seeking to offer a balance of
capital appreciation and income potential
alongside risk mitigation.
Capital Appreciation and Income Component
Investment Adviser
Target allocation*
Investment Approach
• These three Portfolios are fund of funds primarily investing in a
combination of iShares Exchange Traded Funds (ETFs). Each Portfolio
has an equity target allocation, but the mix will vary with market
conditions and the investment adviser’s assessment of the ETFs’
relative attractiveness as investment opportunities.
• The capital appreciation and income component comprises at least
80% of Fund assets.
Forethought Investment Advisors, LLC
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
Sub-Adviser
Milliman Financial Risk Management LLC
Sub-Adviser Portfolio Manager
Adam Schenck, CFA, FRM
Featuring
Growth
15%
Fixed
35%
Fixed
50%
Fixed
85%
Equity
65%
Equity
50%
Equity
Moderate
Growth
Balanced
What is an ETF?
Exchange Traded Funds (ETFs) combine key characteristics of openended mutual funds and stocks. Like mutual funds, ETFs pool investor
resources to provide scale for investing in an underlying portfolio of
securities. However, unlike mutual funds, investors do not purchase
or redeem shares through a mutual fund company. Instead, ETFs, like
stocks, are traded on an exchange.
Why BlackRock iShares
iShares is a part of BlackRock, the world’s largest asset manager and
a leading provider of ETFs. BlackRock’s 120 investment teams in 27
countries serve clients around the globe, managing assets that amount
to one quarter of US GDP — more than the GDP of many countries.
See principal investment risks on back for more information.
Each Fund invests a portion of its assets in a mix of
equity and fixed income investments (typically 80%
or more), and a portion in a managed risk strategy
designed to reduce the downside risk of the portfolio.
The proportion of equities and fixed income investments
shown excludes the managed risk strategy and may vary
with market conditions and the investment adviser’s
assessment of their relative attractiveness as investment
opportunities. The adviser may modify the target
allocation from time to time. Please refer to the Fund’s
prospectus for further information.
*Target percentages do not apply to the managed risk portion of the Funds.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
7
FVIT Franklin Dividend and Income
Managed Risk Portfolio
FVIT Franklin Dividend and Income
Managed Risk Portfolio combines investments
managed by Franklin with a sophisticated
hedging strategy managed by Milliman
Financial Risk Management, seeking to offer
a balance of capital appreciation and income
potential alongside risk mitigation.
Capital Appreciation and Income Component
Investment Adviser
• Forethought Investment Advisors selects mutual funds offered by
Franklin for the fixed income sleeve.
Forethought Investment Advisors, LLC
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
Sub-Advisers
Capital Appreciation and Income
Component — Equity Sleeve
Franklin Advisory Services, LLC
Managed Risk Component
Milliman Financial Risk Management LLC
Sub-Adviser Portfolio Managers
Franklin Advisory Services, LLC
Donald G. Taylor, CPA, CIO
William J. Lippman, President
Nicholas P.B. Getaz, CFA
Bruce C. Baughman, CPA
Milliman Financial Risk Management
Adam Schenck, CFA, FRM
Featuring
Investment Approach
• Actively managed allocation with an equity portion managed by
Franklin Advisory Services complemented by a fixed income portion
invested in Franklin mutual funds.
• Franklin manages the equity sleeve of the Portfolio with a rising
dividend strategy that seeks to invest in equity securities, primarily
common stock, that have paid consistently rising dividends.
• The capital appreciation and income component comprises at least
80% of Fund assets.
Target allocation*
25% Fixed
75% Equity
Franklin Equity Investment Philosophy
Franklin employs a unique, disciplined approach to stock selection.
Companies must meet the following criteria before stocks are
considered for purchase:
• Consistent Dividend Increases. Considers companies that have
increased their dividend in at least eight of the last ten years, without
a decrease.
• Strong Balance Sheet. Invests in companies with strong financials and
low levels of long-term debt.
• Reinvested Earnings for Future Long-Term Growth. Searches for
companies that reinvest at least 35% of their earnings in their own
future growth.
• Attractive Price. Purchases shares that are attractively priced relative
to historical valuations and stocks must have a price-to-earnings ratio
(P/E) in the lower half of its range over the last 10 years or less than
the current P/E ratio of stocks in the S&P 500 Index.
Each Fund invests a portion of its assets in a mix of
equity and fixed income investments (typically 80%
or more), and a portion in a managed risk strategy
designed to reduce the downside risk of the portfolio.
The proportion of equities and fixed income investments
shown excludes the managed risk strategy and may vary
with market conditions and the investment adviser’s
assessment of their relative attractiveness as investment
opportunities. The adviser may modify the target
allocation from time to time. Please refer to the Fund’s
prospectus for further information.
8
See principal investment risks on back for more information.
*Target percentages do not apply to the managed risk portion of the Fund.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
FVIT Select Advisor Managed Risk Portfolio
FVIT Select Advisor Managed Risk Portfolio
combines investments from respected
investment managers such as American
Century Investments, Invesco, MFS
Investment Management and Putnam
Investments with a sophisticated hedging
strategy managed by Milliman Financial
Risk Management, seeking to offer a balance
of capital appreciation and income potential
alongside loss mitigation.
Investment Adviser
Capital Appreciation and Income Component
Investment Approach
• Actively managed fund-of-funds portfolio that seeks to offer exposure
to U.S. and non-U.S. equity and fixed income investments with a focus
on medium to large capitalization companies.
• Holdings include funds managed by a variety of top managers,
including, but not limited to, American Century, Invesco, MFS
and Putnam.
• May invest up to 20% in ETFs.
• The capital appreciation and income component comprises at least
80% of Fund assets.
Target allocation*
Forethought Investment Advisors, LLC
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
Sub-Adviser
Milliman Financial Risk Management LLC
Sub-Adviser Portfolio Manager
Adam Schenck, CFA, FRM
Featuring
25% Fixed
75% Equity
American Century
American Century Investments®, is committed to delivering superior
investment performance and developing long-term relationships with
clients. Their track record of performance, business model and founder’s
legacy sets the company apart in the industry. American Century
Investments management teams are guided by well-defined, repeatable
investment processes and are dedicated to fully invested, active
management approaches.
Invesco
Great ideas transcend borders. With more than 740 dedicated
investment professionals worldwide and on-the-ground presence in 20
countries, serving clients in more than 150 countries, Invesco has the
global capability to deliver their best ideas to investors around the world.
MFS
MFS is one of the world’s largest active asset managers and has a uniquely
collaborative approach to long-term investing through integrated research,
global collaboration and active risk management.
Each Fund invests a portion of its assets in a mix of
equity and fixed income investments (typically 80%
or more), and a portion in a managed risk strategy
designed to reduce the downside risk of the portfolio.
The proportion of equities and fixed income investments
shown excludes the managed risk strategy and may vary
with market conditions and the investment adviser’s
assessment of their relative attractiveness as investment
opportunities. The adviser may modify the target
allocation from time to time. Please refer to the Fund’s
prospectus for further information.
Putnam
Driven by innovative thinking, Putnam has practiced an active, riskconscious approach to investing since the launch of The George Putnam
Balanced Fund in 1937. Today, Putnam provides investment services across
a range of equity, fixed income, absolute return, and alternative strategies.
See principal investment risks on back for more information.
*Target percentages do not apply to the managed risk portion of the Fund.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
9
FVIT American Funds Managed Risk Portfolio
FVIT American Funds® Managed Risk
Portfolio combines investments from
American Funds® with a sophisticated
hedging strategy managed by Milliman
Financial Risk Management, seeking to offer
a balance of capital appreciation and income
potential alongside loss mitigation.
Capital Appreciation and Income Component
Investment Approach
• Actively managed fund-of-funds portfolio that seeks to offer exposure
to U.S. and non-U.S. equity and fixed income with a focus on large
capitalization companies.
• Forethought Investment Advisors invests exclusively in American
Funds Insurance Series® Funds.
Investment Adviser
• The capital appreciation and income component comprises at least
80% of Fund assets.
Forethought Investment Advisors, LLC
Target allocation*
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
35% Fixed
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
65% Equity
Sub-Adviser
Milliman Financial Risk Management LLC
Sub-Adviser Portfolio Manager
Adam Schenck, CFA, FRM
Featuring
American Funds Investment Process
In managing the underlying funds, American Funds uses an investment
process known as The Capital System,SM which combines individual
accountability with teamwork. Funds are divided into portions that
are managed independently by investment professionals with diverse
backgrounds, ages and investment approaches with an extensive global
research effort providing the backbone of the system.
American Funds, part of Capital GroupSM, has helped investors pursue
long-term investment success since 1931. Its consistent approach — in
combination with The Capital SystemSM — seeks to achieve superior
results over time.
American Funds is:
• One of the nation’s oldest mutual fund families, serving investors for
more than 80 years.
• One of the nation’s largest mutual fund families with more than
$1 trillion in investments and over 50 million shareholder accounts.
• Globally focused, managing nearly $400 billion in investments outside
the U.S., as of December 31, 2013.
Each Fund invests a portion of its assets in a mix of
equity and fixed income investments (typically 80%
or more), and a portion in a managed risk strategy
designed to reduce the downside risk of the portfolio.
The proportion of equities and fixed income investments
shown excludes the managed risk strategy and may vary
with market conditions and the investment adviser’s
assessment of their relative attractiveness as investment
opportunities. The adviser may modify the target
allocation from time to time. Please refer to the Fund’s
prospectus for further information.
10
See principal investment risks on back for more information.
*Target percentages do not apply to the managed risk portion of the Fund.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
FVIT Wellington Research Managed Risk Portfolio1
FVIT Wellington Research Managed Risk
Portfolio combines investments managed by
Wellington Management Company, LLP with
a sophisticated hedging strategy managed
by Milliman Financial Risk Management,
seeking to offer a balance of capital
appreciation and income potential alongside
loss mitigation.
Capital Appreciation and Income Component
Investment Adviser
• Fixed income strategy seeks to provide long-term total returns by
investing in a broad range of high quality U.S. fixed income securities
selected by Wellington Management.
Forethought Investment Advisors, LLC
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
Investment Approach
• Balanced investment strategy sub-advised by Wellington Management Co.
• Equity strategy primarily invests in U.S. companies selected by
Wellington Management’s team of global industry analysts who
utilize fundamental analysis to identify specific securities for
investment. The strategy seeks to maintain representation in each
major industry in the S&P 500® Index, with up to 15% allocated to
foreign issuers and non-dollar securities.
• The capital appreciation and income component comprises at least
80% of Fund assets.
Target allocation2
35% Fixed
Sub-Advisers
Wellington Management Company, LLP
Milliman Financial Risk Management LLC
65% Equity
Sub-Adviser Portfolio Managers
Wellington Management
Cheryl M. Duckworth, CFA
Mark D. Mandel, CFA
Michael E. Stack, CFA
Glen M. Goldman
Milliman Financial Risk Management
Adam Schenck, CFA, FRM
Featuring
Each Fund invests a portion of its assets in a mix of
equity and fixed income investments (typically 80%
or more), and a portion in a managed risk strategy
designed to reduce the downside risk of the portfolio.
The proportion of equities and fixed income investments
shown excludes the managed risk strategy and may vary
with market conditions and the investment adviser’s
assessment of their relative attractiveness as investment
opportunities. The adviser may modify the target
allocation from time to time. Please refer to the Fund’s
prospectus for further information.
Wellington: A Focus on Research
Wellington Management is one of the largest independent investment
management firms in the world. As a private firm whose sole business is
investment management, Wellington Management serves as investment
adviser for institutional clients in over 50 countries. Wellington
Management’s most distinctive strength is a commitment to rigorous,
proprietary research – the foundation upon which its investment
approaches are built.
See principal investment risks on back for more information.
Formerly known as the FVIT WMC Research Managed Risk Portfolio. Name change
effective 4/30/2015.
1
Target percentages do not apply to the managed risk portion of the Fund.
2
Wellington Management Company LLP is a SEC-registered investment adviser and an
independent and unaffiliated sub-adviser to Forethought.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
11
American Funds Managed Risk
Asset Allocation Fund
American Funds Managed Risk Asset
Allocation Fund seeks to provide the benefits
of a diversified fund along with a dynamic
volatility management component designed
to defend against loss. Some of the potential
for higher returns in up markets is exchanged
for limiting downside losses. This can be an
attractive trade-off for investors who are
planning to draw income from their portfolio
or are concerned about volatility.
Investment Adviser
Capital Reasearch and Management
CompanySM
Investment Adviser Portfolio Managers
Alan Berro
James Mulally
Sub-Adviser
Milliman Financial Risk Management LLC
Sub-Adviser Portfolio Manager
Adam Schenck, CFA, FRM
Featuring
Capital Appreciation and Income Component
Investment Approach
• A single-fund strategy that invests in the American Funds Insurance
Series Asset Allocation FundSM.
• The underlying American Funds Insurance Series Asset Allocation
Fund invests in a diversified mix of stocks and bonds. It employs a
strategic approach to diversification by buying primarily U.S. equities
and bonds and has flexible investment guidelines that can benefit a
balanced investor.
American Funds
American Funds, part of Capital GroupSM, has helped investors pursue
long-term investment success since 1931. Its consistent approach — in
combination with The Capital SystemSM — seeks to achieve superior
results over time.
American Funds is:
• One of the nation’s oldest mutual fund families, serving investors for
more than 80 years.
• One of the nation’s largest mutual fund families with more than
$1 trillion in investments and over 50 million shareholder accounts.*
• Globally focused, managing nearly $400 billion in investments
outside the US.*
*As of December 31, 2013
Investment Process
In managing the underlying fund, American Funds uses an investment
process known as The Capital SystemSM, which combines individual
accountability with teamwork. The Fund is divided into portions that
are managed independently by investment professionals with diverse
backgrounds, ages and investment approaches. An extensive global
research effort is the backbone of the system.
See principal investment risks on back for more information.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
12
FVIT BlackRock Global Allocation
Managed Risk Portfolio
FVIT BlackRock Global Allocation Managed
Risk Portfolio combines an investment in the
BlackRock Global Allocation V.I. Fund with
a sophisticated hedging strategy managed
by Milliman Financial Risk Management,
seeking to offer a balance of capital
appreciation and income potential alongside
loss mitigation.
Capital Appreciation and Income Component
Investment Adviser
• The capital appreciation and income component comprises at least
80% of Fund assets.*
Forethought Investment Advisors, LLC
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
Sub-Adviser
Milliman Financial Risk Management LLC
Sub-Adviser Portfolio Manager
Adam Schenck, CFA, FRM
Featuring
Investment Approach
• A single-fund strategy that invests in the BlackRock Global Allocation
V.I. Fund — an actively managed fund that is diversified with a flexible
investment mandate, enabling BlackRock to seek the best allocation
opportunities across the globe.
• The underlying BlackRock Global Allocation V.I. Fund typically invests
in securities across domestic and international stocks, bonds and cash,
allowing the Fund to help manage risk through diversification.
Investment Process
The BlackRock Global Allocation V.I. Fund is a diversified portfolio that
invests across asset classes, regions, currencies and sectors, seeking to
provide equity-like returns with less risk than global equity markets. The
investment team combines fundamental, bottom-up security selection
with top-down asset allocation.
The BlackRock Global Allocation V.I. Fund seeks to provide equity-like
returns with less risk over a full market cycle by diversifying broadly
across the world.
Unconstrained in search of opportunity
• The BlackRock Global Allocation V.I. Fund is designed to be a
core, “one stop shop” for investors seeking long-term growth. The
Fund’s flexible mandate and broad investment universe enables its
management team to scour the world for what they believe to be the
best opportunities and adapt as markets change.
An experienced global multi-asset team
• 40+ dedicated professionals, 300+ years of investment experience,
27 CFA charter holders, 8 languages spoken
Investment Philosophy
“I believe that global flexible investing is what most investors ought to
have at the foundation of their portfolios. It’s almost nonsensical to me
to think it would be any other way. Why would you not elect to choose
from the broadest universe of investment possibilities?”
— Dennis Stattman, CFA, Managing Director
BlackRock Global Allocation V.I. Fund
See principal investment risks on back for more information.
*The Fund may invest in securities related to real assets (such as real estate or commodityrelated securities). The Fund may also gain exposure to commodity markets by investing up
to 25% of total assets in the BlackRock Cayman Global Allocation Fund I, Ltd. a wholly owned
subsidiary of the Fund, which invests primarily in commodity-related instruments.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
13
FVIT Goldman Sachs Dynamic Trends
Allocation Portfolio
FVIT Goldman Sachs Dynamic Trends
Allocation Portfolio seeks to accumulate
wealth by taking advantage of price trends
across markets, with a focus on mitigating
drawdowns to help investors retain more
capital to grow towards their retirement goals.
Investment Adviser
Forethought Investment Advisors, LLC
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
Sub-Adviser
Goldman Sachs Asset Management, L.P.
Sub-Adviser Portfolio Manager
Gary Chropuvka, CFA
Amna Qaiser, CFA
Featuring
Investment Approach
• Diverse investment strategy sub-advised by Goldman Sachs Asset
Management, L.P. (“GSAM”).
• Portfolio’s assets dynamically allocated* to generate returns, while
employing a differentiated approach to managing the Portfolio’s volatility.
• Dynamic allocation is based on trend following or momentum
investing. Momentum investing looks to recent price trends in assets,
allocating more to assets that show positive trends in the recent past
while allocating away from assets that show poor trends.
• Reduced return volatility sought by employing explicit drawdown
management, utilizing various hedge instruments, including index put
options to stabilize volatility and provide downside protection.1
Investment Process
Diversified Market Exposure
• The Portfolio starts with a strategic allocation of 60% equity and 40%
fixed income, which can be shifted 10% in either direction based on
market views. Investors can gain exposure to equities across U.S. Large
Cap, Mid Cap, Small Cap, Europe, the UK and Japan, as well as U.S.
Fixed Income.
• Goal: Seeks long-term wealth accumulation by investing in a diverse
set of asset classes
Capitalizing on Trends
• The team attempts to identify and capitalize on opportunities that
arise from price trends across a wide range of markets. The team will
actively tilt the portfolio towards and away from various regions and
asset classes as their prices rise or fall in value.
• Goal: Seeks to benefit from both upward and downward trends in the
market
Dynamic Defense
• The Portfolio takes a differentiated approach to risk management
by investing in options contracts to reduce participation in market
drawdowns.1 The team employs explicit drawdown management,
utilizing various hedge instruments, including index put options to
stabilize volatility and provide downside protection.
• Goal: Preserve wealth by minimizing the negative effects of downturns
Goldman Sachs Asset Management: A Focus on Risk Management
A leading global asset manager, with more than 2,000 professionals
located in 33 locations around the world and a focus on risk
management that is embedded in their investment culture.
1
See principal investment risks on
back for more information.
14
A drawdown is usually quoted as a period of market decline from peak to trough. Definition:
Morningstar
*Dynamic allocation refers to changes in the Portfolio’s asset allocation targets pursuant to
GSAM’s views regarding changing market conditions and other considerations.
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
FVIT PIMCO Tactical Allocation Portfolio
FVIT PIMCO Tactical Allocation Portfolio
seeks to deliver long term returns while
managing volatility and downside risk in
order to help investors steadily build capital
toward their retirement goals.
Investment Adviser
Forethought Investment Advisors, LLC
Investment Adviser Portfolio Managers
Eric Todd, CFA, President,
Co-Portfolio Manager
Cameron Jeffreys, CFA, Vice President,
Co-Portfolio Manager
Sub-Adviser
Pacific Investment Management Company,
LLC
Sub-Adviser Portfolio Manager
Josh Davis, PhD
Sudi Mariappa
Featuring
Investment Approach
• Risk-managed balanced investment strategy sub-advised by Pacific
Investment Management Company LLC (“PIMCO”).
• PIMCO will invest the Portfolio’s assets in a combination of equity
securities, fixed income instruments and derivatives.
• PIMCO utilizes a tactical allocation process to actively adjust the
Portfolio’s exposure to asset classes based on estimated volatility and
drawdown.1
• The Portfolio’s strategy may reduce equity exposure when market
volatility rises and increase it when market volatility falls. This is
designed to help stabilize volatility within the portfolio while also
providing potential upside participation through efficient dynamic
rebalancing. PIMCO may also adjust the Portfolio’s volatility target in
seeking to mitigate large drawdowns.1
• In addition, the Portfolio employs tail risk hedges, including put
options on equity indices, in order to guard against unexpected
market shocks.
Investment Process
• Use index instruments such as ETFs and futures to gain equity market
exposure
• On a daily basis, use current market indicators and portfolio data to
estimate Portfolio volatility and a volatility target
• If estimated Portfolio volatility falls outside a range around the
volatility target, adjust the Portfolio’s equity exposure, typically
between 50% and 75%, but with a minimum of 30% under normal
circumstances
• Rebalance hedging instruments such as index options periodically
using a rules-based process
• Actively manage fixed income by incorporating PIMCO’s top-down
and bottom-up investment insights
Pacific Investment Management Company LLC:
A Focus on Risk Management
A global investment solutions provider with more than 2,400 dedicated
professionals in 12 countries focused on a single mission: to manage
risks and deliver returns for our clients.
See principal investment risks on back for more information.
1
A drawdown is usually quoted as a period of market decline from peak to trough.
Definition: Morningstar
There is no guarantee that any investment will achieve its objectives, generate positive
returns, or avoid losses.
15
PRINCIPAL INVESTMENT RISKS
Portfolio investments involve risk and possible loss of principal.
The percentage allocation among investments could cause the
portfolio to underperform relative to relevant benchmarks and
other mutual funds with similar investment objectives. The cost
of investing in a portfolio that invests in ETFs and underlying
funds will be higher than investing directly in those securities
and may be higher than other mutual funds that invest directly
in stocks and bonds. Investing in the portfolio involves the
risks associated with investing in the underlying fund(s) and
ETFs. By investing in a subsidiary, the underlying fund is
indirectly exposed to the risks associated with the subsidiary’s
investments.
Overall securities market risks may affect the value of
individual equity and fixed income securities. The net asset
value of the Portfolio will fluctuate based on changes in the
value of the equity securities in which it invests or to which
it has exposure. Value stock investments may never reach
what the ETF or underlying fund manager believes is their full
market value. They may decline in price or shift in and out of
favor depending on market and economic conditions. Investors
in growth stocks often expect the companies to increase their
earnings at a certain rate and if expectations are not met,
these stocks can be punished even if earnings do increase.
Additionally, convertible securities are subject to the same
market and issuer risks as the underlying common stock. Issuer
risks include management performance, financial leverage and
reduced demand for the issuer’s goods or services, as well as
the historical and prospective earnings of the issuer and the
value of its assets. Some Portfolios may engage in over-thecounter transactions, some of which trade in a dealer network,
where there is less governmental regulation and supervision in
transactions, rather than on an exchange.
Investments in mid and small capitalization and emerging
growth companies may be more vulnerable to adverse
business or economic developments than larger organizations.
These securities have limited product lines, markets and
financial resources and may trade in lower volumes with
greater and less predictable price changes than larger
companies. Investment in warrants may involve more risk than
investments in common stock if the price of the warrant does
not move with the price of the underlying stock. Investments
in REITS and underlying real estate may go down due to
factors including general and local economies, the amount of
new construction in a particular area, the laws and regulations
affecting real estate and the costs of owning, maintaining and
improving real estate. REITs may have limited resources, trade
less frequently and in limited volume than other securities.
Investments in companies that have historically paid regular
dividends to shareholders may decrease or eliminate dividend
payment in the future. A decrease in dividend payments by an
issuer may result in a decrease in the value of the issuer’s stock
and less available income for the Portfolio.
To the extent that the Portfolio focuses on particular countries,
regions, industries, sectors or types of investment from time to
time, the Portfolio may be subject to greater risks of adverse
developments in such areas of focus than a fund that invests
in a wider variety of countries, regions, industries, sectors or
investments.
Bonds and other fixed income security values will typically
fluctuate inversely to interest rate changes and issuers may
not make payments on debt securities, resulting in losses.
The value of corporate loan investments is generally less
exposed to the adverse effects of shifts in market interest
rates than fixed interest rate investments. Corporate loans
may be subject to irregular trading, wide spreads and
extended trade settlement periods. The U.S. Government may
not provide financial support to U.S. government agencies,
instrumentalities or sponsored enterprises if it is not obligated
to do so by law, therefore it is possible that issuers of U.S.
government securities will not have the funds to meet their
obligations in the future. The value of investments held by
16
a portfolio for cash management or defensive investing
purposes can fluctuate. Like other fixed income securities, cash
and cash equivalent securities are subject to risk, including
market, interest rate and credit risk.
Mortgage-backed securities differ from conventional debt
securities because principal is paid back periodically over
the life of the security rather than at maturity and because of
these prepayments, mortgage-backed securities may be less
effective than some other types of debt securities. Structured
notes involve exposure to the credit risk of the issuer and
may be less liquid and more difficult to accurately price than
traditional debt securities. Structured notes may be leveraged
and subject to increased volatility. Positions in lower-quality
bonds, known as high-yield or junk bonds, present greater risk,
including possible default. Distressed securities are speculative
and involve substantial risks in addition to those of junk bonds.
Certain portfolios may invest in securities that may be illiquid or
may become less liquid in response to market developments or
adverse investor perceptions. Liquidity risk may also refer to the
risk that a portfolio will not be able to pay redemption proceeds
within the allowable time period because of unusual market
conditions, an unusually high volume of redemption requests
other reasons. To meet redemption requests, a portfolio may be
forced to sell securities, at an unfavorable time.
Foreign investments, emerging markets and foreign currencies
involve risks not typically associated with U.S. investments,
including fluctuations in foreign currency values, political,
social, and economic developments, less liquidity, greater
volatility, less efficient trading markets, political instability
and differing auditing and legal standards. Emerging markets
tend to develop unevenly and are more likely to experience
hyperinflation and currency devaluations. Sovereign debt
instruments are subject to the risk that a government entity
may delay or refuse to pay interest or prepay principal on its
sovereign debt due to cash flow problems, insufficient foreign
currency reserves, political considerations, the relative size of
the governmental entity’s debt position or its failure to put in
place economic reforms. Precious metal related security price
volatility can be affected by various unpredictable economic,
financial, social and political factors, including inflation.
The Portfolio’s investment in derivatives, which includes
futures, options, swaps, and structured notes and other
derivatives, could reduce the Portfolio’s returns, increase
volatility and may include currency risk, leverage risk (a risk
that could magnify increases and decreases in value), liquidity
risk, index risk, pricing risk, and counterparty risk (the risk
that the counterparty may be unwilling or unable to honor its
obligations) as well as correlation and tracking risks. Losses
from short positions in futures contracts occur when the
underlying index increases in value and the holder of the short
position is required to pay the difference in value of the futures
contract resulting from an increase in the index.
Volatility management is intended to reduce the overall risk
of investing in the Portfolio but may not work as intended,
may result in periods of underperformance and may limit
the Portfolio’s ability to participate in rising markets. Certain
portfolios may use tactical asset allocation is an investment
strategy that actively adjusts a portfolio’s asset allocation,
which may not work as intended. The Portfolio may not
achieve its objective and may not perform as well as other
funds using other asset management styles. Momentum-based
investment style is intended to provide exposure to price
momentum of certain U.S. and developed equity markets and
U.S. fixed income assets, and as a result may be more volatile
that a broadly based conventional investment style. Certain
investment styles may result in a higher rate of portfolio
turnover (100% or more) which involves correspondingly
greater expenses which must be borne by the portfolio and its
shareholders.
These and other risks are detailed in each Portfolio’s
prospectus.
ABOUT FORETHOUGHT
Forethought Life Insurance Company provides
a full suite of annuities and a leading preneed
life insurance platform to help solve the preretirement, retirement and end-of-life challenges
facing Americans today. A targeted strategy
delivers multifaceted product lines to customers
through key distribution relationships across the
country. Experienced leadership and financial
discipline underlie strong growth and success in
the marketplace.
Forethought is a subsidiary of Global Atlantic
Financial Group Limited, a financial services
company focused on the annuity, life insurance
and reinsurance markets with $40 billion in assets
and nine offices.
Talk to your financial advisor today to learn
more about ForeRetirement and these available
investment options.
This material is authorized for distribution only when accompanied or preceded by a prospectus for the annuities being offered. The prospectus
contains investment objectives, risks, fees, charges, expenses, and other information regarding the variable annuity contract and the underlying
investments, which should be considered carefully before investing. You should read the prospectus carefully before investing money.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon
for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you
should consult your tax or legal counsel for advice.
Optional benefits are subject to state and firm approval and variations.
The ForeRetirement Variable Annuity is available in multiple share classes, which each have different fees and charges as described in the prospectus. Your financial
professional’s commission may also differ depending upon the share class selected. You should discuss which share class is right for you with your financial
professional based on the available options. Important share class considerations include, but are not limited to, your investment holding period and investment
flexibility.
Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59½, may also be subject to a 10% federal
income tax penalty. Distributions received from a non-qualified contract before the Annuity Commencement Date are taxable to the extent of the income on the
contract. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply.
Withdrawals will reduce the death benefit and any optional guaranteed amounts in an amount more than the actual withdrawal.
If you are investing in a variable annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a variable annuity.
Under these circumstances, you should only consider buying a variable annuity if it makes sense because of the annuity’s other features, such as lifetime income
payments and death benefit protection.
“Forethought” is Forethought Life Insurance Company and its affiliates, subsidiaries of Global Atlantic Financial Group Limited. The ForeRetirement flexible-premium
variable annuity suite is issued by Forethought Life Insurance Company and underwritten and distributed by Forethought Distributors, LLC
The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It’s not acting in any
fiduciary capacity with respect to your investment. This information does not constitute personalized investment advice or financial planning advice.
The S&P 500® Index is a price index and does not reflect dividends paid by the stocks underlying the index. The index is not available for direct investing.
Forethought Variable Insurance Trust Portfolios are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC is not
affiliated with Forethought Investment Advisors or Milliman, Inc.
Wellington Management Company, LLP is a SEC-registered investment adviser. Wellington Management Company, LLP sub-advises the investment mandate for FVIT
WMC Research Managed Risk Portfolio and is an independent and unaffiliated entity. Milliman sub-advises the managed risk strategy for the FVIT WMC Research
Managed Risk Portfolio.
3297-NLD-5/1/2015
VA5124 (05-15)
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© 2015 Forthought
forethought.com