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Invesco and all associated marks are service marks of Invesco Holding Company Limited, used under license. Invesco QQQ Trust℠, Series 1 (“Invesco ETF(s)”) is sponsored by Invesco Capital Management LLC (“Licensor”), and the use of the Invesco ETF(s) in the offering by Athene Annuity and Life Company of certain fixed index annuity products (each, a “Product” and collectively, the “Products”) is authorized pursuant to a license with Licensor. The trademarks are intellectual property licensed from Licensor, and may not be copied, used, or distributed without Licensor’s prior written approval. Licensor makes no express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose with respect to the use of the Invesco ETFs or any data or other information related thereto in connection with the rights licensed hereunder or for any other use. Without limiting any of the foregoing, in no event shall Licensor have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.
Important Information about Nasdaq®
Nasdaq®, Nasdaq-100® and QQQ® are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed and/or sublicensed for use by Invesco Capital Management LLC, BofA Securities, Inc. and its affiliates, and Athene Annuity and Life Company. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).
Important information about BofA
Below is a summary of some of the risks relating to the Invesco QQQ FC 7 Index (the “Index”) discussed herein. Please request a copy of the applicable rulebook for additional risk disclosure. Before investing in any such instrument or entering in any such transaction, you must satisfy yourself that you fully understand the risks of such instrument or transaction and you are solely responsible for making an independent appraisal of, and investigation into, such Index and should not rely on this information or the index rulebook as constituting investment, financial or other advice. Merrill Lynch International (“MLI”), an affiliate of BofA Securities, Inc. (“BofAS”) is the benchmark sponsor of the Index.
NATURE OF THE INDEX
The Index uses a rules-based formula to enable the index closing level to be calculated from time to time. Although instruments may be issued or entered into where such instruments’ return is linked to the Index performance, the Index is not itself an investment or instrument and does not give any person any entitlement to, or ownership interest in, any index components or any other obligation referenced (directly or indirectly) by the Index.
NOT A PRODUCT OF BOFA GLOBAL RESEARCH
The Index is a rules based, systematic index and is not actively managed by BofAS or its affiliates. It is not research content and was not prepared, reviewed, sponsored, endorsed, or promoted by BofA Global Research. No BofA Global Research analyst or employee provided input, analysis, recommendations, coverage, views, or expertise for the Index.
BofA Global Research makes no representation or warranty, express or implied, regarding the Index, any related financial products, or the advisability of investing in such products.
POTENTIAL CONFLICTS OF INTEREST
Potential conflicts of interest may exist in the internal teams and divisions of MLI or across different entities within the BofA group. For example, one team may calculate and publish the level of the Index, while another team within the organization may issue or promote/sell products linked to the Index or an index component. In addition, a further team within the organization may have trading positions in or relating to instruments and assets to which the performance of the Index is directly or indirectly linked (including any index component). Entities within the BofA group may be active and significant participants in or act as market maker in relation to a wide range of markets for currencies, commodities, securities and derivatives. Such activities may be undertaken on such a scale as to affect, either temporarily or on a long-term basis, the price of such investments which may impact adversely on the index closing level. No entity within the BofA group shall have any duty or obligation to take into account any impact in the performance of the Index when effecting transactions in such markets.
In addition, the benchmark sponsor and initial index calculation agent, MLI, or its affiliates may enter into transactions referencing or relating to the Index with one or more counterparties or may engage in proprietary trading in the Index or securities, options, futures, derivatives or other instruments relating to the Index or any index component (including such trading as it or its affiliate deems appropriate in their sole and absolute discretion to hedge its market risk with respect to the Index or any transaction relating to the Index) for their accounts, for business reasons, or for other accounts under its or their management. The benchmark sponsor and affiliates may enter into such transactions or hedging transactions with a view to a profit or other financial gain. In addition, any such trading may affect the level or index closing level and consequently the amounts payable or deliverable in any transaction referencing or relating to the Index. Such trading may be effected at any time, including on or near determination, setting, resetting or other calculation dates for the Index or such index components, or the pricing, setting, resetting or other valuation date(s) for any such transaction.
EMBEDDED TRANSACTION COSTS
The calculation of the Index will incorporate a deduction for embedded transaction costs. These transaction costs are not a per annum amount but are adjustments made in order to account for synthetic costs (for example, bid-ask spread, rebalancing, hedging, slippage and brokerage) incurred by a professional investor seeking to replicate the strategy of the Index, as applicable. In addition, these transaction costs may take into account expenses incurred by the benchmark sponsor in the development of intellectual property for, and administration of, the Index. These transaction costs may be higher or lower than the actual costs of hedging the exposure to the Index, as applicable, and, if higher, may result in professional investors being in a worse position than if they were to replicate the Index, as applicable. The embedded transaction costs are deducted from the level of the Index and act as a drag on the Index, therefore reducing the amount of return on the Index, and the level of the Index must increase by an amount sufficient to offset the aggregate of the transaction costs in order for there to be any return on the Index performance. The transaction costs are calculated in accordance with the applicable index rulebook.
In addition to the embedded transaction costs of the Index, one of the Index components, the Invesco QQQ Trust Series 1 ETF (“ETF”) contains an embedded management fee, as determined by the ETF sponsor and as may be changed from time to time (the “ETF fee”). The effect of such ETF fee is that ETF price will be less than would otherwise be the case, therefore, reducing the return (if any) on the Index. For additional information on the ETF fees, please review the applicable ETF offering materials.
EXCESS RETURN INDEX
This is an “excess return” index. An excess return index reflects returns on a hypothetical investment in the index components using borrowed funds. The borrowing cost is a market rate which is deducted from the Index performance on a daily basis (as set forth in the index rulebook). This deduction will negatively affect Index performance by reducing the positive performance of the Index and exacerbating the negative performance of the Index.
VOLATILITY CONTROL
The Index’s “volatility control” mechanism may reduce the appreciation potential of the Index and may not achieve the target volatility. The volatility control mechanism allows the Index to dynamically adjust the level of the hypothetical exposure to the index components, depending on the volatility environment. When the Index’s exposure to the index components is greater than 100%, any negative performance of the index components will be magnified and the level of the Index may decrease significantly. In addition, if the volatility control mechanism causes exposure to the index components to be less than 100%, the difference will not be hypothetically invested in index components and will earn no hypothetical return. There can also be no assurance that the Index will achieve its target volatility of 10% and the actual realized volatility of the Index may be greater or less than the target volatility, which may affect the level of the Index.
PAST PERFORMANCE
Past performance of the Index is not a reliable guide to future performance and the past performance of the Index may have been determined on different terms. No assurance, representation or warranty is given with respect to the future performance of the Index or that it will achieve its objective. Prices and values of the components, exchange rates and interest can fluctuate and may have an adverse effect on the Index performance.
SIMULATED HISTORICAL PERFORMANCE
All index closing levels between the index base date and the index live date have been determined by reference to historical data and must be considered as simulated and thus purely hypothetical. The methodology and assumptions used to calculate index closing levels prior to the index live date, may be different to those applied from the index live date and in the future. While the index sponsor views this as reasonable, the use of historical data may result in material differences between the simulated performance of the Index, prior to the index live date, and any subsequent actual performance.
In addition, the underlying for an Index component, the ETF, did not have data on Bloomberg existing prior to March 23, 2011; substitute components were used in determining the simulated historical performance. Such substitute components can be provided upon request.
LIMITED ACTUAL HISTORICAL PERFORMANCE
The Index has only been calculated since the index live date and as such there is no actual historical performance data available in respect of it prior to that time. As a result, any investment the return of which is linked to the Index may involve greater risk than an exposure linked to indices or strategies with a longer-term track record.
INDEX NOT DESIGNED BY REFERENCE TO INDIVIDUAL NEEDS
The Index is structured by the benchmark sponsor and determined and calculated by the index calculation agent without regard to any other party. Neither the benchmark sponsor nor the index calculation agent has any obligation to take the needs of any person into consideration in structuring the Index or revising its methodology, and the index calculation agent does not have any obligation to take the needs of any person into consideration in determining and calculating the Index.
SUSTAINABILITY RISK
The Index does not pursue environmental, social or governance (“ESG”) objectives or take into account ESG factors in its methodology and should not be treated or relied upon as such. The Index is not intended for use in any financial product which is labelled, held out as or seeks to pursue ESG objectives or similar. MLI and its affiliates makes no warranty, express or implied as to the results to be obtained by any person or entity, whether the recipient of the Index or a third party, from its use in any financial product which is labelled, held out as or seeks to pursue ESG objectives or similar.
DUTY OF CARE
Subject always to their regulatory obligations and except as may be required by applicable law, neither the benchmark sponsor (including where it acts through the equities index forum discussed in the index rulebook) nor the index calculation agent shall have a duty of care or any fiduciary duty to any person in respect of the Index including any investor in any instrument, or any counterparty to any transaction, linked to the Index. Neither the benchmark sponsor nor the index calculation agent is acting as an investment adviser or manager or providing advice of any nature in relation to the Index or any instrument or transaction linked to the Index.
OTHER RISKS
There is no guarantee, warranty or assurance that the index rulebook discloses all possible factors that may affect the performance of the Index and the risks of investing in any instrument, or entering into a transaction that is linked to the Index. Before licensing use of the Index in such an instrument or transaction, investing in any such instrument or entering in any such transaction, you must satisfy yourself that you fully understand the Index (including the index components) and the risks of such instrument or transaction. You are solely responsible for making an independent appraisal of, and investigation into, the Index (including its index components) and should not rely on the index rulebook as constituting investment, financial or other advice.
Additional risk factors can be found in the index rulebook.
BofA Securities, Inc. and its Affiliates (“BofAS”), Invesco QQQ FC 7 Index (the “Index”) and related information, the name “BofAS”, and related trademarks, are intellectual property of BofAS. In connection with the Index, BofAS has licensed the use of certain marks and data from Invesco (collectively with BofAS, the “Licensors”). No financial product or financial transaction (each, a “Product”) referencing the Index is sponsored, operated, endorsed, sold or promoted by the Licensors. Obligations to make payments under any Product are solely the obligation of issuer of the Product. The Licensors, the Index and related information, the names of the Licensors, and related trademarks may not be copied, used, or distributed without the relevant Licensor’s prior written approval. The Products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by the Licensors. THE LICENSORS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE INDEX, ANY RELATED INFORMATION, THE TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, THEIR QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).
BofAS is not responsible for the accuracy of any information or statements made by Invesco on its website.
Back-testing Disclaimer
No actual financial product which allowed tracking of the performance of the index was possible before October 23, 2025. Any hypothetical “back-tested” information provided herein is illustrative only and determined by retroactive application of a back-tested model, itself designed with the benefit of hindsight based on certain data and assumptions and estimates (not all of which may be specified herein and which are subject to change without notice). These back-tested, hypothetical, historical annualized Index returns have inherent limitations. The results obtained from different models, assumptions, estimates and/or data may be materially different and might produce significantly different results and may prove to be more appropriate from the results presented herein. Actual performance will vary, perhaps materially from the performance set forth herein. The performance of the Index does not include fees or cost of any financial instrument referencing the Index. No representation is made by any Licensor that in the future the Index will have the returns illustrated herein. Hypothetical “back-tested” information should not be considered indicative of the actual results that might be obtained from a financial product or participation in a financial instrument or transaction referencing the Index. The Licensors expressly disclaim any responsibility for (i) the accuracy or completeness of the models, assumptions, estimates and data used in deriving the hypothetical “back-tested” information, (ii) any errors or omissions in computing or disseminating the hypothetical “back-tested” information, and (iii) any uses to which the hypothetical “back-tested” information may be put by any recipient of such information.
