Jefferson National Expands “TPIA Marketplace” for Fee-Based Advisors Demanding Strategies to Tackle Today’s Tough MarketInnovator of First Flat-Insurance Fee VA Adds More Recognized Third Party Investment Advisors (TPIAs) to Provide Diversification, Superior Value and Tax-Efficient Solutions
New York, NY and Louisville, KY—March 22, 2011— More than 18 months after the crash of 2008, financial advisors continue to grapple with economic uncertainty and seek new solutions to manage market volatility. Jefferson National, innovator of the industry’s first flat-insurance fee variable annuity, is committed to meeting this demand by adding four new managers to its online “TPIA Marketplace,” which provides fee-based and fee-only advisors with access to a range of proven portfolio management strategies from a select group of recognized Third-Party Investment Advisors (TPIAs).
“By combining a diverse range of proven management strategies with the power of Jefferson National’s low-cost, tax-deferred retirement vehicle, we provide advisors with even more of the vital resources they need to give their clients’ portfolios an edge in today’s tough market,” said Laurence Greenberg, President of Jefferson National. “With this team of top-tier third-party managers on Jefferson National’s TPIA Marketplace, fee-based and fee-only advisors now have access to their own virtual portfolio management department—without the expense of extra staff or added infrastructure.”
In a survey conducted by Jefferson National last year, a clear majority of the advisors polled—roughly 2 to 1— believed that changing their asset management strategy was key to navigating the volatile market. Launched in September 2010, the TPIA Marketplace provides an efficient, effective and transparent solution, one of the many innovative resources available for the fee-based and fee-only advisors who have come to trust Jefferson National’s unique approach to creating greater value.1 The four recognized firms with proven track records who will be adding their management services to Jefferson National’s TPIA Marketplace include:
Bandon Capital Management, LLC: An investment management firm dedicated to the democratization of alternative investment strategies. Bandon delivers this vision by identifying institutional quality alternative strategies that can be translated and implemented using liquid, transparent securities, like mutual funds, ETF’s or VITs. Available strategies include Hedged Equity, Directional Interest Rate and Absolute Return Core. “While alternative strategies typically have been the domain of ultra-high net worth investors and large institutions, Bandon is one the few firms dedicated to providing these non-correlated, absolute return strategies in a structure that makes them accessible to investors of all sizes,” said Bill Woodruff, President, Bandon Capital Management.
J2 Capital Management: An investment adviser, fiduciary and asset manager, committed to helping clients actively manage risk in their portfolios on a continuous basis. J2’s Dynamic Strategy is a momentum strategy based on technical analysis which can be 100% invested during positive trending markets and can move to 100% cash during times of higher volatility. The RCI (Risk Control Index), a proprietary tool created by J2 Capital Management, provides long term buy or sell signals that will drive the desired amount of equity exposure. “Most investors have a buy strategy, but few have a strategy for selling. Letting winners run and cutting losers quickly is a philosophy that has proven successful for our firm and our clients,” said John Benedict, Chief Executive Officer of J2 Capital Management.
Probabilities Fund Management, LLC (PFM): An independent Registered Investment Advisor providing institutional quality investment management and innovative tools to help Advisors serve the unique needs of their clients. PFM manages passive and active portfolios. "Passive" models are designed to cover the total universe of stocks traded globally, with an appropriate percentage of fixed income to manage risk. “Active” portfolios are rules-driven and performance centric. “With our special focus on providing institutional quality investment management, PFM can deliver customized global portfolio construction, ongoing optimization, and the proven performance of our proprietary portfolio management strategy to other advisors and Jefferson National Annuity owners at a competitive price,” said Joseph B. Childrey, AIF®, Chief Investment Officer, Probabilities Fund Management, LLC.
SFG Asset Management: A Third Party Investment Advisory firm “built by Advisors for Advisors.” Discipline, Transparency and Trust are the Core Values SFG applies to their innovative actively managed Asset Allocation Models. These include a broad selection of fixed equity-to-bond ratio models, as well as the highly popular variable equity-to-bond ratio models, and other focused models designed to meet a range of different client needs. “With trading flexibility at our core, SFG can provide an active tactical response to market conditions rather than the old long term strategy of buy and hold, to be more responsive in protecting our client’s capital and finding current opportunities,” said Jeff Shelton, president and founder of Shelton Financial Group.
Available for financial professional only on Jefferson National’s password-protected Advisor Site, the TPIA Marketplace is a one-stop destination that delivers a suite of due diligence essentials on twelve different Third-Party Investment Advisors, including strategic overviews, portfolio construction, and historical performance. New functionality has also been added to search for managers from five different categories of investment strategy: Sector Rotation, Tactical Overlay, Tactical Long/Short, Tactical Long Only, High Yield Bond and Strategic Allocation. Other partners on Jefferson National’s TPIA Marketplace include:
· Capital Allocation & Management, offered by Bellatore Financial, Inc. and providing the benefits of strategic asset allocation with a tactical overlay
· CMG Capital Management Group, Inc., an alternative investment management specialist offering a number of quantitatively based trading strategies
· Denver Money Manager LLC, an investment fiduciary and asset manager, known for their Global Multi-Bond Strategic Income strategy
· Flexible Plan, a leading investment risk management firm
· Howard Capital Management, Inc., an active manger and innovator of the HCM Buy-Line®
· Purcell Advisory Services, LLC, providing actively-traded, risk-averse investment programs which incorporate both long and inverse funds
· Regatta Research & Money Management, LLC, recognized for their active management approach, distinguished in house research, and listed in Forbes as one of the "Top 10 Leading Wealth Managers in the United States"
· Schreiner Capital Management, Inc., An SEC-registered RIA specializing in tactical asset allocation solutions
While tactically managed portfolios can produce short term capital gains, minimizing these taxes through the use of a low-cost, no-load variable annuity such as Jefferson National’s Flat-Insurance Fee VA can benefit clients by enhancing their portfolio’s performance. Research confirms that the performance of “tax-inefficient” investments such as REITs, bond funds and actively managed stock funds that generate short-term capital gains and ordinary income, currently taxed as high as 35%, potentially can be improved by as much as 100 bps when located in a low-cost, tax-deferred variable annuity rather than in a taxable vehicle.2
With a flat-insurance fee of $20 per month3 no matter how much clients invest4 Jefferson National’s Monument Advisor is recognized as the lowest-cost retirement vehicle on the market.5 With more than 300 investment options, Jefferson National’s Monument Advisor offers the industry’s largest selection of tax-deferred funds and six times more underlying funds than the typical VA.6 Jefferson National also offers the industry’s most subaccounts with the Five Star and Four Star Morningstar Rating for a second consecutive year.7
Jefferson National’s Monument Advisor 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, the Fee-Based Advisory market is one of the fastest-growing segments in the industry, with assets topping more than $7.2 Trillion as of 20088, and more than 65% of brokers surveyed said they would be interested in going independent.9
1Jefferson National is not recommending the TPIA(s) above, and is paid a fee to host the TPIA Marketplace. The information regarding each TPIA is submitted by the TPIA. 2The Tax-Efficient Frontier: Improving the Efficient Frontier with the Power of Tax Deferral, David Lau, Jefferson National, 2010. 3Jefferson 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. 4Contributions in excess of $10 million are subject to Company approval. 5For a $25,000 contract, Monument Advisor's $20 per month insurance fee is lower than 87% of all variable annuity insurance charges. For a $100,000 contract, the $20 insurance fee is lower than all variable annuity insurance charges (Morningstar data as of 12/31/10). 6Morningstar data as 12/31/10. 7Morningstar data as of 07/15/10. 8Cerulli "Quantitative Update: Intermediary Markets," 2009. 9Cerulli Quantitative Update: Advisor Metrics,” 2008.