Jefferson National Launches New Strategies to Help RIAs and Fee-Based Advisors Manage VolatilityPortfolios Include Volatility-Managed Suite from State Street Global Advisors and Multi-Strategy Liquid Alternatives from Dynasty Financial Partners
Louisville, KY—November 3, 2014—Jefferson National, a market leader in tax-advantaged investing, today launched three new strategies to help registered investment advisors (RIAs) and fee-based advisors manage ongoing volatility with institutional quality management and alternative strategies typically favored by hedge funds, high net worth and elite institutional investors. Available exclusively through Jefferson National’s Monument Advisor, the industry's first and only Flat-Fee Investment-Only Variable Annuityi (VA), these sub-advised portfolios allow advisors and their clients to enhance tax-efficiency and maximize accumulation through the power of low-cost tax deferral, while seeking to optimize performance.
“Surveys show that alternative strategies are more important than ever, to manage ongoing volatility, rising correlation and low yield. And tax deferral is a proven solution to tax-optimize these alternative strategies, which tend to be highly tax-inefficient,” said Laurence Greenberg, President of Jefferson National. "Through our new suite of portfolios, advisors can better hedge against market volatility and help their clients achieve their retirement goals."
Jefferson National is expanding its suite of volatility-managed portfolios managed by State Street Global Advisors (SSgA).ii This suite provides sophisticated institutional management of diversified portfolios of exchange-traded products (ETPs), including exchange-traded funds (ETFs), that seek to enhance returns using tactical asset allocation, while providing volatility management using Volatility DefenseSM.iii In addition, Jefferson National has launched a multi-strategy liquid alternatives portfolio through a new partnership with Dynasty Financial Partners, a recognized service provider and proven investment manager serving the industry’s elite advisors.
Available exclusively through Monument Advisor, the three new sub-advised portfolios include:
- JNF SSgA Tactical Allocation Portfolio: A globally balanced core portfolio that seeks to provide total return while attempting to reduce volatility over a full market cycle by investing in ETPs that provide exposure to six primary asset classes, including global equities, global fixed income and real assets.
- JNF SSgA Sector Rotation Portfolio: A portfolio that seeks to provide total return while attempting to reduce portfolio volatility over a full market cycle by tactically investing in ETFs that provide exposure primarily to the U.S. sectors represented in the S&P 500 Index.
- JNF Dynasty Liquid Alternatives Portfolio: This multi-strategy, multi-manager portfolio invests in managers pursuing alternative or hedge fund strategies. This portfolio, sub-advised by Dynasty Financial Partners, capitalizes on the growing opportunity set of alternative or hedge fund managers offering their strategies to a broader audience. The portfolio is best suited as a “core” alternative allocation in an overall diversified portfolio as it has a goal of creating a diversifying return profile to traditional equity and fixed income markets with lower correlations. Managers in the portfolio pursue such alternative strategies as equity long/short, event driven, relative value and global macro.iv
"We continuously evaluate our fund lineup to ensure that Monument Advisor is able to meet advisors' demand for a tax-advantaged solution that is broad-based, customizable, flexible and low-cost," added Mr. Greenberg. "Through these new additions, advisors will be able to create more durable portfolios and reliable income streams for their clients, while managing assets and matching the strategy to their unique needs."
In late March of this year, Jefferson National launched the first of its suite of SSgA sub-advised portfolios, the JNF SSgA Retirement Income Portfolio, giving advisors and their clients a new way to Unlock Retirement IncomeSM through a unique combination of total return and a tactically managed Volatility DefenseSM. With these three newest additions, Jefferson National’s lineup features nearly 400 underlying funds, including more than 65 alternative assets and alternative strategies.
i Jefferson 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. iiThe funds are managed by SSgA Funds Management, Inc. (“SSgA FM”). SSgA FM and other advisory affiliates of State Street Corporation make up SSGA. iiiVolatility Defense is designed to dynamically adjust exposures to maintain a desired target portfolio risk. Based upon a volatility forecast, exposure to certain assets may be higher in periods of low predicted volatility and lower in periods of high predicted volatility. ivThe Portfolio is a “Fund of Funds” that invests in Underlying ETFs, which are typically open-end investment companies or unit investment trusts. By investing in securities of an Underlying ETF, the Portfolio shareholders will indirectly bear its proportionate share of any fees and expenses of the Underlying ETF in addition to the Portfolio’s own fees and expenses. As a result, your cost of investing will be higher than the cost of investing directly in the Underlying ETFs and may be higher than mutual funds that invest directly in stocks and bonds. Also, the Fund may be prevented from fully allocating assets to a particular Underlying ETF due to fund-of funds investment limitations. vDynasty Financial Partners is a U.S. registered trademark of Dynasty Financial Partners LLC (“Dynasty”). Dynasty is a brand name and functions through Dynasty’s wholly owned subsidiary Dynasty Wealth Management, LLC (“Dynasty Wealth”) when providing investment advice. Dynasty Wealth is a registered investment adviser with the Securities and Exchange Commission. A copy of Dynasty Wealth’s current written disclosure statement discussing our advisory services and fees is available for your review upon request.
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. The contract prospectus and underlying fund prospectuses contain this information. 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.
Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss.
Alternative Investing Risk. The value of securities selected using the sub-adviser’s liquid alternative approach can react differently to issuer, political, market, and economic developments than the market as a whole or securities selected using only fundamental or traditional methods of analysis. The factors used in the sub-adviser’s analysis and the weight placed on those factors may not be predictive of a security’s value. In addition, factors that affect a security’s value can change over time and these changes may not be reflected in the liquid alternative investment approach.
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, JNL-2300-3.
About State Street Global Advisors
State Street Global Advisors (SSGA) is a global leader in asset management. The firm is relied on by sophisticated investors worldwide for its disciplined investment process, powerful global investment platform and access to every major asset class, capitalization range and style. SSGA is the investment management arm of State Street Corporation, one of the world’s leading providers of financial services to institutional investors.
About Dynasty Financial Partners
Dynasty Financial Partnersv is the leading independent integrated platform service provider to the industry’s elite advisor teams. Dynasty develops, sources and integrates the finest wealth management capabilities, solutions and technology into its customized open-architecture platform to help independent advisors protect and grow their clients’ wealth. Dynasty’s core principle is “objectivity without compromise”, and the firm is committed to crafting solutions that allow investment advisors to act as true fiduciaries to their clients. For more information, please visit www.dynastyfinancialpartners.com and follow us on Twitter @DynastyFP.