Jefferson National Completes Integration of Tax-Deferred Investing Solution on Shareholders Service Group’s Custodial PlatformSSG’s Independent RIAs Now Have Access to 380+ Tax-Deferred Funds in Jefferson National’s Monument Advisor Flat-Fee VA
Louisville, KY—September 18, 2012—Jefferson National, recently recognized by Cerulli Associates as the industry’s “most successful, and innovative, fee-based VA carrier1,” has completed the integration of its tax-deferred investing solution on Shareholders Service Group’s (SSG) open-architecture custodial platform. The first and only fee-based annuity integrated onto the SSG platform, this marks another milestone for Shareholders Service Group and for Jefferson National’s Monument Advisor, the industry’s first flat-fee variable annuity2, with 9x more funds than the typical VA3, the industry’s most subaccounts with the 5 star and 4 star Morningstar Rating™ for three consecutive years4 and “the gold standard in tackling fee based structures” based on its “best-in-class strategies of eliminating fees, appreciating how RIAs operate their business, and delivering an impressive technology platform that can be integrated into existing systems1.”
For the network of more than 1,000 independent fee-only Registered Investment Advisors (RIAs) affiliated with Shareholders Service Group, this partnership provides seamless access to more than 380 funds from more than 40 recognized fund families, including more than 60 alternative investments, as well as five institutional quality dynamic allocation models powered by CAPTRUST, and a TPIA Marketplace that provides proven portfolio management strategies from a select group of recognized Third-Party Investment Advisors (TPIAs).
As advisors are taking a more holistic approach to financial advice and greater tax-awareness is added to portfolio construction, the use of tax deferral has increased in importance. Research confirms that the strategy of asset location—or “locating” assets between tax-deferred and taxable vehicles based on their tax-efficiency—has proven highly effective. The performance potential of “tax-inefficient” investments, such as REITs, bond funds, actively managed stock funds and many alternative strategies, currently taxed as high as 35%, potentially can be improved by as much as 100 bps when located in a low-cost, tax-deferred vehicle rather than in a taxable vehicle.5
“In a volatile market where every basis point counts, where the search for yield is an ongoing challenge, and where taxes are poised to rise, many advisors see tax-deferral as one of the most important solutions to help clients increase returns without increasing risk,” said Laurence Greenberg, President of Jefferson National. “By partnering with Shareholders Service Group to fully integrate Jefferson National’s tax-deferred investing solution alongside other taxable vehicles on SSG’s custodial platform, we help meet an urgent need facing many RIAs today.”
“At Shareholders Service Group, we are always on the lookout for products that help advisors meet their clients’ needs, and we recognize that a client’s after-tax returns are a critical concern that advisors must take into account in their investment planning,” said Peter Mangan, President and CEO. “We are excited to partner with Jefferson National because we have seen first-hand how they listen to what RIAs want and meet their demands with some of the most powerful tax-deferred products, tools and technology on the market today.”
By aggregating tax-deferred assets alongside taxable vehicles, including capabilities to update in real time within a single advisor workstation and consolidate onto client account statements, this innovative partnership allows the RIAs with Shareholders Service Group to provide more holistic and more comprehensive financial advice. “Because of its low cost and broad range of fund choices, Monument Advisor is a great way for advisors to take advantage of tax-deferred investing for their clients,” adds Mangan.
In addition to fully integrated taxable and tax-deferred investing, SSG also offers the ability to integrate front- and back-office functionality from an unprecedented number of leading third-party solution providers, including trading, clearing and settlement, performance reporting and rebalancing, practice management and compliance.
As more advisors continue breaking away from commissions and making the move to independence,
RIAs and Fee-Based advisors are one of the industry’s most rapidly growing segments. Cerulli projects that 44% of all advisors will be within independent channels by 20156. Jefferson National and Shareholders Service Group are well-positioned to serve this rapidly growing market. Advisors who would like to learn more about Jefferson National’s tax-deferred investing solution integrated on the SSG custodial platform may visit www.jeffnat.com or call this exclusive toll-free number: 855-847-4656.
1 Annuities and Insurance 2012: Evaluating Growth Capacity, Flows, and Products Trends, Cerulli Associates, 2012. 2Jefferson National’s Monument Advisor has a $20 monthly flat insurance fee. 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. 3Morningstar data as of 12/31/11. 4Morningstar data as of 08/15/11. 5The Tax-Efficient Frontier: Improving the Efficient Frontier with the Power of Tax Deferral, David Lau, Jefferson National, 2010. 6Cerulli Quantitative Update: Intermediary Distribution, Cerulli Associates, 2011. 7Jefferson National was reviewed by the Direct Marketing Association, including a panel of independent judges and industry peers, and won for re-engineering the traditional commission-based distribution model and replacing it with an unprecedented web-based direct marketing approach.
About Shareholders Service Group (SSG)
Shareholders Service Group (SSG) provides brokerage and custodial services exclusively for independent registered investment advisors (RIAs). SSG provides a full range of brokerage and back office service and support with a robust technology platform, access to a full suite of investment vehicles, and a highly experienced service team that only serves independent RIAs. The company was founded in 2002, and currently serves over 1,000 advisory firms throughout the country. The management team began serving independent RIAs in the late 1980s.