Jefferson National Named “The Gold-Standard in Tackling Fee-Based Structures” by Cerulli AssociatesFirm’s Re-engineered Variable Annuity Meets Growing Demand from RIAs, Fee-Based Advisors for Tax-Deferred Investing Solutions
Louisville, Ky.—November 8, 2012—Jefferson National, a leading provider of innovative tax-deferred investing solutions for Registered Investment Advisors (RIAs) and fee-based advisors, was recently recognized by Cerulli Associates as the industry’s “gold-standard in tackling fee-based structures” for creating the industry’s first flat-fee variable annuity (VA).1
In their quantitative update entitled Annuities and Insurance 2012: Evaluating Growth Capacity, Flows, and Products Trends, Cerulli highlights Jefferson National’s “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 systems.” The report further touts Jefferson National’s transformation of the variable annuity back to a tax-deferral product, coupled with an award-winning, “distinctive distribution strategy.”
“In 2005 we set out to launch the industry’s preeminent tax-deferred investing solution by re-engineering the costly, complex, commission-driven variable annuity, disrupting traditional industry distribution, and rebuilding our business model with a singular focus on serving RIAs and fee-based advisors,” said Laurence Greenberg, President of Jefferson National. “Our commitment to the fee-based model has resulted in more than $1.4 billion in VA assets with advisors who typically ’don’t do annuities,’ at a time when tax-efficiency was largely seen as a back-burner issue.”
Jefferson National’s research indicates that tax-efficiency will continue to become an increasingly vital part of fee-based advisors’ business as they seek to optimize overall portfolio performance, as well as counter the inherent tax-inefficiencies of alternative asset classes. Pending tax hikes, including the “fiscal cliff” of December 31 that could escalate the nation’s taxes by $500 billion or an average of nearly $3,500 per household, also are likely to drive greater demand for tax-deferred investing solutions.
“We have built a distinctive solution that’s the right fit for RIAs in today’s volatile market, helping investors accumulate more wealth by deferring tax payments. We expect our flat-fee variable annuity to become even more crucial as advisors face the need to employ alternative strategies and utilize other asset management approaches that tend to be very tax-inefficient,” Mr. Greenberg said.
Jefferson National’s solution offers unique strategies and tools tailored to meet the needs of RIAs and fee-based advisors, including more than 380 fund options, covering diverse allocation models, high-yield bonds and more than 60 tactical and alternative investment strategies—9 times more funds than the typical VA2 and the industry’s most subaccounts with the 5- and 4-star Morningstar Rating™ for three consecutive years.3
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. 2Morningstar data as of 12/31/11. 3Morningstar data as of 08/15/11. 4Jefferson 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.