open quoteAccording to MORNINGSTAR data, on a $25,000 investment, Monument Advisor costs less than 91% of existing variable annuities. On a $100,000 investment, it costs less than all other variable annuities on the market today.

FOR IMMEDIATE RELEASE

Jefferson National Contact:
Deborah Newman
Director Corporate Communications
212-220-5862
dnewman@jeffnat.com

Fee-Based Advisors Say Tactical Asset Management Key to Navigating Current Market

Jefferson National's Second Micro-Survey Series Shows Clear Majority of Advisors and Their Clients More Confident in Tactical Management than Buy-and-Hold

New York, NY and Louisville, KY - February 9, 2010 - Financial Advisors are grappling with the fallout from the crash of 2008 and they see tactical asset management as key to navigating the current market, according to a micro-survey series conducted recently by Jefferson National, the innovator of the industry's first flat-insurance fee variable annuity.1 More than 750 responses were recorded, and a significant percentage of the advisors surveyed—roughly 2 to 1—are making a move to tactical management. This is the second in Jefferson National's ongoing series of micro-surveys addressing the issues that fee-based and fee-only advisors care about most.

"In 2008, we saw the S&P drop more than 50%, and there is a very real possibility that we could see more losses before a recovery is truly under way," said Laurence Greenberg, President Jefferson National. "While the basic building blocks of good investing won't change—establish a goal, create a plan, follow a disciplined approach, and don't overreact—our survey indicated that in today's volatile market advisors are moving to the disciplined use of a Tactical Asset Management strategy rather than a traditional Buy-and-Hold strategy."

Jefferson National announced key findings of their latest micro-survey at last week's TD Ameritrade 2010 National Conference in Orlando, FL, during a panel discussion entitled "Beating the Bear: Using Tactical Management in Today's Volatile Market." In addition to Jefferson National, the panel featured experts from three recognized third-party money managers: BTS Asset Management, Inc.; Schreiner Capital Management, Inc.; and Weatherstone Capital Management.

Findings from Jefferson National's most recent micro-survey include:

Pressure to Revise Strategy

According to the survey, in the current market, more than 68% of advisors are feeling pressure to revise their asset management strategy. "Over the past 18 months, a growing number of advisors and experts have begun to question Modern Portfolio Theory and traditional Buy-and-Hold investing," said Michael Ball, President and Lead Portfolio Manager, Weatherstone Capital Management. "We work with many advisors and clients who are facing increasing pressure to move toward a tactical strategy for at least a portion of their portfolio to capitalize on cyclical trends that may dominate during a secular bear market, which typically lasts 14 to 20 years." From September 30, 2007 – September 30, 2009, Weatherstone's current lineup of 14 tactical programs outperformed the S&P 500—and 11 of their programs delivered positive returns.2

Clear Preference for Tactical Asset Management

In the current market, 63% of advisors surveyed by Jefferson National are more likely to employ a tactical management strategy. "When confronting a secular bear market, with its volatile swings and sideways moves, many advisors are finding it's tough to achieve steady returns, manage risk and protect principal using a buy-and-hold strategy," said Isaac Braley, President, BTS Asset Management, Inc. "But there are tactical strategies that have been proven to minimize risk and outperform the market—even during the crash of 2008. Advisors come to us for tactical solutions based on technical market analysis and a true 'sell side discipline'." Over the last 28 years, BTS has outperformed the S&P 500 with less risk than Government Bonds.2

Clients Today Less Confident in Buy-and-Hold

According to advisors surveyed, 66% say clients are more confident with Tactical Asset Management strategy, while only 34% say clients are more confident with a traditional Buy-and-Hold strategy. "Caught in the aftershocks of volatility that followed the crash of 2008, many clients questioned the logic of taking a passive approach," said Brian Schreiner, Vice President and Head of Advisor Services, Schreiner Capital Management, Inc. "Think about your most important goals—can you name a single goal where taking a passive approach improves your chance of success? The advisors and clients who work with us have more confidence that a tactical strategy has greater potential to improve their returns and minimize risk—especially in today's volatile market." Schreiner Capital Management's first Absolute Return model, established in 2003, has surpassed the S&P 500 Index by 57% since inception.2

About this Survey

More than 750 responses from participating advisors were collected online at www.jeffnat.com between November 2009 and January 2010 as part of Jefferson National's series of ongoing micro-surveys addressing the issues that fee-based and fee-only advisors care about most.

About Jefferson National Life Insurance Company

Jefferson National Life Insurance Company offers retirement products for fee-based advisors and the clients they serve. Jefferson National believes that simple, low-cost variable annuities should be considered for a part of every American's retirement portfolio, and we've made it our mission to help all Americans save more for retirement by launching Monument Advisor, the first variable annuity with a flat insurance fee. Jefferson National serves more than 50,000 customers nationwide, and is domiciled in Dallas, Texas with authority in 49 states and the District of Columbia. To reach our advisor support desk, please call 1-866-WHY-FLAT (1-866-949-3528). To learn more, please visit www.jeffnat.com.

1Jefferson National's Monument Advisor has a $20 monthly flat insurance fee with no transaction fees on more than 97% of underlying funds. Additional fees ranging from $19.99-$49.99 will be assessed for investors wishing to purchase shares of ultra low-cost funds. See the prospectus for details. Like other variable annuities, the customer pays fees of the underlying funds selected plus the fees of any advisor hired. The base contract does not provide an enhanced death benefit. An optional enhanced death benefit is available for an additional fee. Please see prospectus for details.

2Past performance does not guarantee future results.

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Form #: JNL2010CL011 02/10

 

An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. For a prospectus containing this and additional information, please contact your financial professional. Read it carefully before investing. The summary of product features is not intended to be all-inclusive. Restrictions may apply. The contracts have exclusions and limitations, and may not be available in all states or at all times.

Variable annuities are investments subject to market fluctuation and risk, including possible loss of principal. Your units, when you make a withdrawal or surrender, may be worth more or less than your original investment.

Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawal of tax-deferred accumulations are subject to ordinary income tax. Withdrawals made prior to age 59 ½ may incur a 10% IRS tax penalty. Jefferson National does not offer tax advice. Annuities are not deposits or obligations of, or guaranteed by any bank, nor are they FDIC insured.

Monument Advisor is issued by Jefferson National Life Insurance Company (Dallas, TX) and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2.

Form #: jef-pr-20061207