New options help advisors meet client needs, protect against market volatility
COLUMBUS, Ohio--(BUSINESS WIRE)-- Nationwide Financial Services, Inc. today announced several enhancements to the investment lineup for its variable annuity and variable life insurance products, including 15 new fund options to provide advisors with greater asset class selection options for their clients. These changes were effective May 1, 2012.
“We work hard to provide a wide range of investment options to help advisors mitigate risks associated with market volatility and tailor a plan for the specific needs of their clients,” said Eric Henderson, senior vice president of Individual Products & Solutions for Nationwide Financial. “Through the careful selection and monitoring of experienced money managers, we have created investment menus that seek to deliver returns over and above those of the broad market, while protecting against volatility.”
Nationwide will begin offering the following options from Dimensional Fund Advisors for its variable life products: VA Global Bond Portfolio, VA US Large Value Portfolio, VA US Targeted Value Portfolio, VA International Value Portfolio, VA International Small Portfolio and VA Short-Term Fixed Portfolio. Dimensional, which bases its investment philosophy on rigorous academic research, placed first in the 2011 Cogent Research advisor loyalty rankings for the second year in a row.
For the first time at Nationwide, advisors will have access to actively managed target volatility funds for both variable life insurance and annuity products. These funds includeGoldman Sachs VIT Global Markets Navigator Fund; and AllianceBernstein VPS Dynamic Asset Allocation Portfolio.
Other fund additions to the life and annuity line-up will enhance investment options in high yield, asset allocation and mid-cap asset classes:
Invesco VI Mid Cap Core Equity Fund
MFS VIT New Discovery Series
PIMCO VIT All Asset Portfolio
Ivy Funds VIP High Income
Ivy Funds VIP Mid Cap Growth
Nationwide is also offering two new funds to enhance its high yield bond asset class options for the America’smarketFLEX® Series product:
Direxion Insurance Trust Dynamic VP High Yield Bond Fund
Fidelity VIP High Income Portfolio
As of May 1, 2012, Nationwide’s investment lineup includes:
“We have built a best-in-class investment line-up and a dedicated team of specialists to help advisors customize investment strategies for clients,” Henderson said. “Nationwide is committed to positioning our variable life and annuity businesses for long-term success. These changes reinforce our ongoing efforts to build relationships with advisors who can count on us to help them with variable life and annuity solutions for their clients now and in the future.”
Financial advisors interested in seeing the complete list of changes to Nationwide’s investment lineup, including name changes and summaries of the fund lineups for specific variable products can visit http://www.nationwide.com/mayupdates.
Nationwide, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by A.M. Best. The company provides a full range of personalized insurance and financial services, including auto insurance, motorcycle, boat, homeowners, life insurance, 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 underlying fund prospectuses can be obtained from your investment professional or by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, OH 43218-2021 or visiting http://www.nationwide.com. Before investing, carefully consider the fund's investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectus contain this and other important information.Read the prospectuses carefully before investing.
Neither Nationwide Financial, nor any of its affiliates, are affiliated with Morningstar or any of its affiliates.
The use of diversification [asset allocation] and asset rebalancing as part of an overall investment strategy does not assure a profit or guarantee against loss in a declining market.
As your personal situations change (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure these strategies and products are suitable for your long-term life insurance needs. You should weigh your objectives, time horizon and risk tolerance as well as any associated costs before investing. Also, be aware that market volatility can lead to the possibility of the need for additional premium in your policy.Investors should evaluate the impact of their financial ability to continue premium payments and the market risk associated with the variable product on the risk of lapse of the insurance policy. Also, know that any loans, withdrawals, and surrenders, partial or whole, can adversely affect the death benefit, may have adverse tax consequences,and could result in the policy lapsing.Variable life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, underlying fund charges and expenses, and additional charges for riders that customize a policy to fit your individual needs.
An annuity is a long-term, tax-deferred investment designed for retirement that will fluctuate in value. It allows you to create a fixed or variable stream of income through a process called annuitization and also provides a variable rate of return based on the performance of the underlying investments.
But, as with most things in life, an annuity does have limitations. If you decide to take your money out early, you may face fees called surrender charges. Plus, if you're not yet age 59½, you may also have to pay an additional 10% tax penalty on top of ordinary income taxes. Naturally, if you do take an early withdrawal, your death benefit and the cash value of the annuity contract will be reduced.
You should also know that an annuity contains guarantees and protections that are subject to the issuing insurance company’s ability to pay for them. But these guarantees don’t apply to any variable accounts that are subject to investment risk, including possible loss of your principal.
An annuity is a contract between you and an insurance company and it’s sold by prospectus. While it may take some time, you should read these documents. They describe risk factors, fees and charges that may apply to you.Variable annuities have fees and charges that include mortality and expense, administrative fees, contract fees, and the expense of the underlying investment options.
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Nationwide Life Insurance Company is a subsidiary of Nationwide Financial Services, Inc. The general distributor is Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs Corporation.
Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide, Nationwide Financial, the Nationwide framemark, Nationwide YourLife and On Your Side are service marks of Nationwide Mutual Insurance Company.
Mike Switzer, 614-249-4092