Nationwide Launches New Heights Select FIA

Columbus, OH—March 8, 2021—Nationwide has joined with product development partner Annexus, the premier independent designer of fixed indexed annuities, to announce the launch of Nationwide New Heights Select, built on the foundation of 2020’s #1 selling income FIA with a guaranteed roll up.

With the addition of multiple client-centric enhancements to Nationwide New Heights Select, the popular product suite continues to evolve to provide more choice and greater client value. These latest additions include two new indices, new bucketing capabilities for greater diversification, highly competitive accumulation opportunities and increased lifetime income payout percentages on one of the optional income riders.

“As interest rates remain near record lows, while concerns about volatility run high and the cost of living in retirement continues to rise, investors face a complex challenge. They need solutions to help them grow and protect their retirement savings—as well as a guaranteed income stream to protect their lifestyle in retirement,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “Nationwide New Heights Select fixed indexed annuity has been enhanced to provide pre-retirees with greater growth potential and principal protection at a time when they need it the most, while also providing a guaranteed source of retirement income they can’t outlive.”

Two New Indices for Greater Diversification and Growth Opportunity

New Heights® Select offers growth opportunity with strategy options that track the performance of an index and lock in earnings at the end of each strategy term. Now, for even greater diversification, new bucketing capabilities allow a clients’ contract value to be allocated among up to five strategy options, including two new indices.

Nationwide New Heights Select now offers the SG Macro Compass Index, one of the first global multi-asset indices in an FIA that utilizes the current economic outlook to determine its asset allocation. It has the ability to adapt to current market conditions by pivoting and leaning into growth assets when markets are bullish and defensive assets when markets are bearish. The methodology leverages the expertise of Societe Generale’s Quantitative Research team. It is rooted in the deep academic research of macroeconomic regimes created by Dr. Solomon Tadesse who is an experienced investment executive and seasoned thought leader.

Nationwide New Heights Select has also added the NYSE® Zebra Edge® II Index, based on a methodology developed by economist Professor Roger G. Ibbotson and his team at Zebra Capital Management, and founded on Ibbotson’s behavioral finance research. It uses his behavioral finance filtering process to evaluate the 500 largest publicly traded companies in the United States each quarter, and then removes the riskiest and most volatile companies to identify equities with the potential for higher returns with less risk.

"While guaranteed income is crucial for clients, advisors evaluating guaranteed income FIAs should also consider many other factors. The opportunity cost of selling a product with poor growth potential is simply too risky,” said Annexus co-founder Don Dady. “It’s always important to also give your clients the greatest opportunity for growth potential, to provide flexibility if their plans change and they don’t choose to trigger income.”

Annexus Co-Founder Ron Shurts added, “For Nationwide New Heights Select, the addition of these two new indices, bucketing strategies for greater diversification and the increase of the lifetime withdrawal percentages are significant enhancements to an already successful suite of products, providing the potential for higher annual returns and more guaranteed income.”

Guaranteed Income for Life with Bonus Features

Nationwide New Heights Select offers two optional living benefit riders available for an additional charge, to create a source of guaranteed income for life. The Nationwide High Point 365® Select Lifetime Income rider with Bonus now offers higher lifetime payout percentages with the flexibility for earlier withdrawals. It includes a bonus of 10% of a client’s purchase payment added to their Minimum Income Benefit Value at contract issue.[ii] In addition, the Minimum Income Benefit Value will continue to grow daily at a 7% compound annual rate until the earlier of 10 years or until beginning lifetime income withdrawals, whichever comes first.[iii] By year 10, the Minimum Income Benefit Value is guaranteed to at least double. All protections and guarantees are backed by the claims paying ability of Nationwide Life and Annuity Insurance Company.

For more information on Nationwide New Heights® Select, including the enhanced diversification of asset classes and allocation strategies, highly competitive accumulation opportunities and optional income riders, contact your Nationwide wholesaler, Annexus-affiliated independent distribution company or visit www.NationwideNewHeights.com.