open quoteLast year, Jefferson National Life Insurance Co. in Dallas introduced a variable annuity that imposes no commissions or surrender fees, and charges a flat insurance fee of $20 a month regardless of the annuity's size. By comparison, the average variable annuity charges an insurance fee of about 1.38% according to investment researcher Morningstar, Inc. On a $100,000 contract, that is the difference between paying $240 a year or $1,380.
—Wall Street Journal, May 15, 2006.

FOR IMMEDIATE RELEASE

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

Advisors Demand Alternative Strategies and Jefferson National's Monument Advisor Adds 40+ New Investment Options from ProFunds, Rydex, Eaton Vance, Merger Funds

Fee-Based Advisors say First Flat-Insurance Fee VA with Industry's Largest Supermarket of 250+ Tax-Deferred Funds is Key to Help Navigate Current Market

New York, NY and Louisville, KY - May 17, 2010 - The crash of 2008 and the market's ongoing volatility is stoking advisor demand for using alternative asset classes to achieve greater diversification and manage risk. In response Jefferson National's Monument Advisor, the first flat-insurance fee variable annuity with 5x more funds than the typical VA1, has added more than 40 new investment options from four highly innovative fund families, including ProFunds, Rydex, Eaton Vance, Merger Funds.

"Advisors are demanding more alternative asset classes and Jefferson National responded by adding more than 40 new innovative investment options—almost as many funds as most VAs have in total—to give advisors an unmatched lineup of 5x more funds than the typical VA," said Laurence Greenberg, President of Jefferson National. "With countless experts predicting that the market is still vulnerable to corrective forces and volatility could continue for the foreseeable future, Jefferson National wants to ensure that advisors have the options they need to manage a challenging market and shore up their clients' portfolios."

Research confirms that alternative assets are in great demand given the market's ongoing volatility. A majority of asset managers surveyed in Cerulli's "Quantitative Update: Retail Alternative Products and Strategies 2010" believe that investors will want to include more alternatives in their portfolios as a hedge against stock-market declines. According to Cerulli, assets in alternative mutual funds rebounded in 2009, led by commodity funds and absolute return funds.

Meanwhile, 81% of Registered Investment Advisers (RIAs) believe that traditional asset allocation provides insufficient portfolio diversification and 61% advocate using alternatives for many clients, according to a recent survey by Rydex Distributors and Securities Global Investors, LLC.

Likewise, in a survey conducted by Jefferson National, 68% of fee-based and fee-only advisors are feeling pressure to revise their asset management strategy in the current market, and 70% believe the use of more alternative investment strategies and non-correlated assets are a means of achieving greater diversification.

"In the wake of the crash of 2008, we've seen how fast the market can turn against advisors and investors, and we expect ‘black swan' events are likely to happen more frequently going forward," says Teri Weigel, CFP®, Principal and Chief Compliance Officer, Purcell Advisory Services, LLC. "With Jefferson National's arsenal of tax-deferred funds we have the power to move beyond buy and hold, with unique investment programs that manage risk, are not correlated to traditional markets and not limited to the long side of investing." Purcell has been ranked by Money Manager Review as among the top managers in its category for risk adjusted returns.2

From ProFunds Group, the leader in leveraged and inverse funds according to Lipper3, Jefferson National has added 36 VITs from their Classic, Ultra, Inverse, Sector and Non-Equity lineup. Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies. Leveraged and inverse funds seek a -200%, -100% or 200% return of their indexes for a single day. Due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target returns for the same period. Investors should monitor their holdings consistent with their strategies, as frequently as daily.4

To round out its full suite of Rydex|SGI Funds for tactical managers, Jefferson National is adding the DWA Flexible Allocation Fund and DWA Sector Rotation Fund. According to the funds' managers, these 2 new VITs employ a relative strength strategy, which historically has provided a high-return asset class that is uncorrelated with most other stocks and bonds to help smooth out the returns in a diversified portfolio.

From Eaton Vance, a pioneer in floating rate loans and one of America's largest and most experienced loan managers, Jefferson National is adding the VT Floating-Rate Income Fund. According to Eaton Vance, floating-rate loans may help soften the impact of rising interest rates on bond portfolios because the loans' coupons adjust with short-term market rates. Jefferson National will also add the Eaton Vance VT Large-Cap Value Fund.

Finally, Jefferson National will be the first VA to offer The Merger Fund VL. Now offered in a VIT format, this unique investment vehicle is the first of its kind devoted exclusively to merger arbitrage, and seeks to produce positive returns under a wide variety of market conditions.

Jefferson National's Monument Advisor offers the industry's largest supermarket of tax-deferred funds including top performing bond funds from PIMCO, ultra low-cost funds from Vanguard, a range of alternative asset classes, as well as ProFunds and Rydex funds designed for dynamic trading. During the accumulation period, transfers between funds are unlimited5, allowing investors to adjust their portfolio, tax free.

With a flat-insurance fee of $20 per month6 no matter how much clients invest7, Jefferson National's Monument Advisor costs less than 91% of all competing VAs on a contract of $25,0008 and is uniquely positioned to meet the needs of the rapidly growing market of RIAs and independent fee-based and fee-only advisors. According to Cerulli Associates, assets in the RIA space are growing at an annual rate of 15%, one of the fastest-growing segments in the industry9, and more than 65% of brokers surveyed said they would be interested in going independent10.

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.

1The average variable annuity has 45 underlying fund options according to Morningstar data as of 12/31/09.

2Past performance is no guarantee of future results.

3Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered ETFs, ETNs and mutual funds by the number of funds and assets (as of 6/30/2009).

4The funds' prospectuses describing correlation, leverage and other risks are available at www.profunds.com.

5See prospectus for limitations on transfers.

6Jefferson National's Monument Advisor has a $20 flat insurance fee on more than 97% of our underlying funds. Certain funds also have a transaction fee ranging from $19.99 to $49.99 per transaction, depending on the number of transactions per year. 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 death benefit is equal to the contract value, and is subject to investment risk. An optional Guaranteed Minimum Death Benefit is available for an additional fee. Please see prospectus for details.

7Contributions in excess of $10 million are subject to Company approval.

8Morningstar data as of 12/31/09.

9Cerulli "Quantitative Update: Intermediary Markets," 2008.

10Cerulli "Quantitative Update: Advisor Metrics," 2008.

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Form #JNL2010CL049 05/10

 

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