Jefferson National Meets Advisor Demand for Cost Control, Diversification and Alternative Assets by Adding 24 New Investment Options from Avant, Putnam, Russell and TOPSFlat-Insurance Fee VA with Largest Selection of 330+ Tax-Deferred Funds is First to Market with More Unique Options to Help Fee-Based Advisors Navigate Volatile Market
New York, NY and Louisville, KY—May 4, 2011—Faced with the market’s ongoing volatility, advisors are seeking greater cost control, increased diversification and more alternative asset classes to manage risk effectively for their clients. Jefferson National’s Monument Advisor, the first flat-insurance fee variable annuity with 6x more funds than the typical VA1, continues to meet advisor demand by adding 24 new investment options from Avant, Putnam, Russell and TOPS.2
“Jefferson National continues to take the lead on meeting fee-based advisors’ demands, to ensure that they have the tools they need to manage a challenging market and improve performance potential with the power of tax deferral,” said Laurence Greenberg, President of Jefferson National. “By being the first in the VA industry to offer an unmatched lineup of more unique strategies and more exclusive fund families, with 6x more funds than the typical VA, Jefferson National continues to deliver superior value for advisors and their clients.”
In an industry first, Jefferson National’s Monument Advisor is the only VA to offer a Gold Bullion tracking portfolio available in a VIT. Because of its patent pending structure, the Avant Tracking Fund is the ONLY fund designed to reflect the price of Gold Bullion itself. Gold Bullion offers a significant difference in performance from Gold mining stocks. Gold Bullion has proven to be an excellent long-term retirement asset, and provides powerful diversification for a portfolio3.
In another first, Jefferson National is the only VA to offer the Putnam Variable Trust (VT) Absolute Return 500 Fund. A counterpart to the successful retail fund, Putnam VT Absolute Return 500 Fund seeks a positive return exceeding the rate of inflation by 5 percent, at a lower level of volatility, over a rolling three-year period regardless of market condition. The fund combines an independent beta strategy that seeks to balance risk and provide positive total return, with an alpha strategy which employs a variety of active trading tactics. Putnam has been named one of the top 15 mutual fund families by Lipper/Barron’s for the second consecutive year and was recently named the inaugural recipient of the “Retirement Leader of the Year.”
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, growth in alternative assets is led by commodity funds and absolute return funds.
Jefferson National has met another industry milestone as one of the only fee-based VAs to offer a suite of global asset allocation portfolios leveraging the institutional expertise of Russell Investments. The 10 offerings from Russell include the Russell Investment Funds (RIF) LifePoints® Funds Variable Target Portfolio Series Conservative Strategy, Moderate Strategy, Balanced Strategy, Growth Strategy and Equity Growth Strategy, and from the Russell Investment Funds series, the Multi-Style Equity, Aggressive Equity, Global Real Estate Securities, Non-U.S. and Core Bond funds. Serving institutional investors, financial advisers and individuals in more than 40 countries, Russell is a recognized innovator with a reputation for excellence and leadership that has come to define many of the practices that are standard in the investment world today.
And setting yet another industry benchmark, Jefferson National will now feature a newly launched suite of low-cost ETF asset allocation portfolios from TOPS™, available in two distinct share classes4, allowing advisors to manage expenses most effectively for their clients. Low-cost investment options from TOPS™ available through Monument Advisor include Aggressive Growth ETF, Balanced ETF, Capital Preservation ETF, Growth ETF, Moderate Growth ETF and Protected Growth ETF. With more than $1Billion under management, TOPS™ specializes in equity, investment advisory and risk management products and support services for the nation’s top echelon of fee-based advisory firms. The TOPS™ Protected Growth ETF Portfolio is subadvised by Milliman, one of the country’s top institutional hedging firms working with over $500 Billion in hedged assets. The Protected Growth ETF Portfolio includes both a Capital Protection and Volatility Management overlay to the popular TOPS™ ETF portfolio allocation.
Jefferson National’s Monument Advisor offers the industry’s largest selection of tax-deferred funds including top performing3 bond funds from PIMCO, ultra low-cost funds5 from Vanguard and Dimensional Fund Advisors, 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 unlimited6, allowing investors to adjust their portfolio, tax free.
With a flat-insurance fee of $20 per month7 no matter how much clients invest8, Jefferson National’s Monument Advisor costs less than 91% of all competing VAs on a contract of $25,0009 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, assets in the RIA space are growing at an annual rate of 15%, one of the fastest-growing segments in the industry10, and more than 65% of brokers surveyed said they would be interested in going independent11.
1 The average variable annuity has 45 underlying fund options according to Morningstar data as of 12/31/10. 2The Avant Fund, Putnam Absolute Return 500, and the TOPS funds will not be available to the Monument Advisor policyholders that have the GMDB rider. 3Past performance is no guarantee of future results. 4Class I shares of these funds 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 additional details. 5These funds 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 additional details. 6See prospectus for limitations on transfers. 7Jefferson 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. 8Contributions in excess of $10 million are subject to Company approval. 9Morningstar data as of 12/31/10. 10Cerulli "Quantitative Update: Intermediary Markets," 2008. 11Cerulli Quantitative Update: Advisor Metrics,” 2008