Envestnet and Nationwide Form Strategic Alliance to Deliver Retirement Income Solutions
Business Editors/Photo Editors
CHICAGO--(BUSINESS WIRE)--March 30, 2009--Today’s investors are worried. Worried about the market, their job security, and about outliving their savings. With approximately 77 – 82 million baby boomers who have entered or are nearing retirement 1, the opportunity is ripe for the independent financial advisor to counsel an increasingly anxious group of investors looking for reassurance that their life’s savings will be available to them when they need it most.
To help address this need, Envestnet, a leading provider of wealth advisory solutions to more than 10,000 financial advisors, and Nationwide, one of the largest insurance and financial services companies in the country, have created a strategic alliance to deliver powerful income solutions to meet the growing challenges experienced by today’s investing consumer. The two companies bring together their collective experiences of investment management and creating guaranteed income solutions to offer products that can help increase an investor’s income potential while reducing portfolio income risk.
“We’re excited to be working with Nationwide, a solid insurance company and leader in providing financial security to consumers,” said Eric Fowler, senior vice president of Product Development at Envestnet. “Through our partnership with Nationwide, we are enhancing our retirement income services for advisors to help them provide appropriate solutions for their clients in and through a very challenging environment.”
With the alliance between the Companies come the Nationwide Portfolio Innovatorsm and Nationwide Income Architectsm Annuity – both scheduled to be released early in the second quarter of 2009.
The Nationwide Portfolio Innovator, an individual, supplemental, immediate fixed income annuity contract, is an income guarantee product issued by Nationwide Life Insurance Company. Nationwide Portfolio Innovator is a stand-alone living benefit that provides a distinct way to create guaranteed lifetime income. This distinctive income insurance guarantee will be available for select proprietary investment solutions through Portfolio Management Consultants, the investment arm of Envestnet. It is designed to provide lifetime income withdrawals from the account.
The Nationwide Income Architect is a variable annuity, issued by Nationwide Life Insurance Company, with a built-in five percent guaranteed lifetime withdrawal benefit designed to complement fee-based managed account advisors’ business models. This investment product will be available through the Envestnet Platform as an individual offering and as an option within a new retirement strategy that Envestnet is scheduled to launch later this month.
“In these unprecedented economic times consumers are looking for any sliver of certainty when it comes to their retirement income portfolio,” said Eric Henderson, senior vice president of Individual Investments for Nationwide Financial. “Our partnership with Envestnet will allow us to provide income guarantees clients are in need of and can depend on that can be easily implemented into any financial advisor’s practice. It’s a valuable option that can enhance the retirement income strategy investment professionals are currently providing to their clients.”
When evaluating the purchase of a variable annuity, investors should be aware that variable annuities are long-term investment vehicles designed for retirement purposes and will fluctuate in value; annuities have limitations; and investing involves market risk, including possible loss of principal; a guaranteed minimum withdrawal benefit is an optional rider that is available on certain variable annuity contracts for an additional fee; all guarantees and protections are subject to the claims-paying ability of the issuing company.
Nationwide’s variable products are sold by prospectus.The product prospectus and underlying fund prospectuses can be obtained by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, Ohio 43218-2021. More information on the funds, contained in the PMC Select Portfolios, can be found in the fund’s prospectus.A copy of the PMC Funds prospectus can be found at www.investpmc.com or by calling 1-888-612-9300.Carefully consider the investment objectives, risks, fees and expenses of any mutual fund carefully before investing. Prospectuses contain this and other important information that investors should read carefully before investing.
Foreside Fund Services, LLC is the distributor of the PMC Funds.
The Nationwide Income Architect sm Annuity, an individual, flexible, deferred variable annuity is issued by Nationwide Life Insurance Company, Columbus, Ohio, a member of Nationwide Financial.
The Nationwide Portfolio Innovator sm Annuity, an individual supplemental immediate fixed income annuity is issued by Nationwide Life Insurance Company, Columbus, Ohio, a member of Nationwide Financial. The prospectus for Nationwide Portfolio Innovator is available at https://ssc.nwservicecenter.com/pros/PortfolioInnovatorProspectus.pdf.
Nationwide doesn’t endorse any investment model or strategy used by the investor and/or contract owner. Nationwide is not affiliated with any third party that may be authorized by the contract owner to direct allocations, including Envestnet and its affiliates.
Insurance products are offered by Nationwide and are recommended and sold by registered representatives. Envestnet Asset Management, Inc. (Envestnet) provides administrative and technology services in conjunction with insurance products. Envestnet does not provide any advice or make any solicitations, offers or recommendations with respect to insurance products.
Envestnet is an advisor’s gateway for expert wealth advisory solutions. Through a unified technology platform, the company offers a broad range of investment products as well as fee-based services and solutions that include extensive reporting capabilities and front-, middle-, and back-office administrative tools to the independent financial advisor.
Envestnet delivers unparalleled practice and portfolio management support, empowering advisors to create customized investment solutions that are able to meet their clients’ unique investment needs. We leverage the expertise of leading asset managers and defined asset allocation strategies as well as offer financial advisors ongoing investment manager research and portfolio monitoring provided by PMC, the investment consultancy arm of Envestnet.
Our proprietary technology platform is geared towards reducing administrative demands as well as providing tools and resources to help advisors spend more time focusing on important client relationships.
Envestnet is headquartered in Chicago with offices in Denver, Los Angeles, New York, Silicon Valley and Trivandrum, India. The firm has over $70 billion in total assets served and more than 650,000 investor accounts.*
* Data includes assets under management, administration and licensing arrangements as of 12/31/2008
About Nationwide
Nationwide, based in Columbus, Ohio, provides a full range of insurance and financial services, including auto, motorcycle, boat, homeowners, life, farm, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions, long-term savings plans and health and productivity services. For more information, visit www.nationwide.com.
The general distributor for variable annuity contracts is Nationwide Investment Services Corporation (NISC), member FINRA. In MI Only: Nationwide Investment Svcs. Corporation.
Nationwide, the Nationwide Framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Portfolio Innovator and Nationwide Income Architect are service marks of Nationwide Mutual Insurance Company.
1 “Profiles of General Demographic Characteristics: 2000,” U.S. Department of Census and “Baby Boomer Segmentation: Eight is Enough,” by Doug Anderson and Laurel Kennedy, Consumer Insight Magazine, Fall/Winter 2006, page 6
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