Jefferson National Meets Advisor’s Urgent Demand to Mitigate Risk, Manage Volatility and Boost Tax-Efficiency by Further Expanding Industry’s Most Alternative Investment OptionsLeading Tax-Deferred Investment Solution for RIAs and Fee-Based Advisors Now Tops 390 Funds and 70 Alternatives to Optimize Portfolios as Fiscal Cliff Looms
Louisville, Ky.—November 29, 2012—Jefferson National, a leading innovator of tax-deferred investing solutions for Registered Investment Advisors (RIAs) and fee-based advisors, continues to meet advisors’ urgent demand to mitigate risk and manage heightened volatility in the face of the ‘fiscal cliff’ by further expanding the industry’s largest selection of alternative investment options and by overcoming the inherent tax-inefficiencies of these sophisticated strategies, a concern greatly magnified by growing anxiety over the threat of rising taxes.
In another industry first, Jefferson National is the first and only VA to offer the Country Rotation Portfolio and Sector Rotation Portfolio from Innealta Capital, a quantitative asset management firm specializing in the active management of ETF portfolios. Jefferson National is also one of the only VAs now offering funds with specialized risk management and hedging strategies from several recognized market leaders, including AllianceBernstein Dynamic Asset Allocation Portfolio, Lazard Retirement Multi-Asset Targeted Volatility Portfolio and the recently launched PIMCO Global Diversified Allocation Portfolio. Other unique additions include a managed futures strategy from the Mariner Hyman Beck Portfolio, and the Vice Fund. With this latest round of seven new investment options, Jefferson National's flat-fee VA1 now offers more than 70 liquid alternatives, including many strategies favored by hedge funds and elite institutional investors.
“We continue adding more alternative strategies to help advisors manage volatility while improving tax-efficiency. As the threat of the fiscal cliff looms large and taxes are poised to rise, these needs become even more urgent,” said Laurence Greenberg, President of Jefferson National. “Combining the industry’s most alternative strategies with the power of tax deferral, Jefferson National helps RIAs counter these challenging dynamics and allows their clients to accumulate more.”
Jefferson National’s research indicates that tax-efficiency is vital to RIAs and fee-based advisors facing plunging markets and rising taxes. This month, the market staged the biggest drop in nearly a year and all indexes were down more than 2%, the worse post-election sell-off since 1948 as investors feared the long term gridlock posed by the fiscal cliff fast approaching on December 31. If no solution is reached by year-end, the nation’s taxes will escalate by $500 billion, or an average of nearly $3,500 per household, according to the nonpartisan Tax Policy Center. The same study says the top 1% of households would see after-tax income drop by an average of 10.5%.
Jefferson National’s research also shows the trend toward greater allocation to alternatives. More than 68% of advisors have increased their use of alternative investments, and more than 61% believe that alternatives will become even more important than traditional investments in the future.2 Likewise Cerulli research indicates that in five years the use of alternative strategy funds could increase more than a 245%.3
“As the rest of the competition moves to re-price and re-tool in an ongoing features and benefits battle—or retreat from the industry entirely—Jefferson National will continue building momentum with unique alternatives in a tax-deferred investing solution tailored to meet the needs of RIAs and fee-based advisors,” Greenberg added.
Jefferson National now tops a total of 390 funds—9 times more funds than the typical VA4—the industry’s most alternative investment options, and the most subaccounts with the 5- and 4-star Morningstar Rating™ for four consecutive years.5
1Jefferson 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. 2RIAs and Fee-Based Advisors Alternative Investments and Tactical Management Survey, published by Jefferson National, September 2011. 3Quantitative Update: ETFs and Retail Alternative Products and Strategies 2012, Cerulli Associates, 2012. 4Morningstar data as of 12/31/11. 5Morningstar data as of 08/15/12