Jefferson National’s Flat-Fee VA Adds More Alternatives to Help RIAs and Fee-Based Advisors Manage Volatile MarketAdditions include Alternative Strategies from Tortoise Capital Advisors, PIMCO, Direxion, Goldman Sachs, Oppenheimer and Legg Mason; New Options from Dimensional and Calvert Investments
Louisville, KY—May 5, 2014—Registered Investment Advisors (RIAs) and fee-based advisors see alternative investments and the power of tax deferral as a key to managing ongoing volatility.1 To meet this urgent demand, Jefferson National’s Monument Advisor, the industry’s first and only Flat-Fee Variable Annuity2 (VA), continues to optimize its fund lineup, with eight new investment options, including six alternative strategies. Jefferson National is the first VA to offer Tortoise VIP MLP & Pipeline Portfolio, and in response to strong advisor demand now offers PIMCO All Asset All Authority Portfolio, along with new alternatives from Direxion, Goldman Sachs, Oppenheimer and Legg Mason. A market leader in tax-advantaged investing, Jefferson National offers the industry’s most alternative funds that employ strategies like those favored by hedge funds and elite institutional investors.
“Research shows that managing volatility is one of advisors’ biggest hurdles when confronting the retirement income challenge, and Jefferson National continues optimizing its fund lineup to help them build more resilient client portfolios in today’s turbulent market,” said Laurence Greenberg, President of Jefferson National. “With a unique combination of tax deferral, low cost, an unsurpassed selection of funds and the industry’s most alternatives, we can provide a leading tax-advantaged investing solution for RIAs and fee-based advisors.”
Surveys show that nearly two-thirds of advisors (64%) have increased their use of alternative investments over the past five years to manage ongoing volatility, and 55% see their allocation to alternatives continuing to increase further over the next 5 years.1 Cerulli research indicates that between 2012 to 2018, the use of alternative strategy funds could increase more than a 245%.3 While these strategies have high turnover, producing short-term capital gains that can erode performance, Jefferson National offers a tax-deferred investing solution that can improve the performance potential of tax-inefficient strategies by an average of 100 bps—without increasing risk.4
Jefferson National is the first VA to offer the Tortoise VIP MLP & Pipeline Portfolio, an actively managed portfolio that provides access to essential MLP and pipeline companies. In response to strong advisor demand, Jefferson National has expanded its extensive selection of PIMCO funds with the addition of PIMCO All Asset All Authority Portfolio, which actively invests in both traditional and alternative asset classes. Other newly added alternative investment options include Direxion VP Indexed Managed Futures Strategy Fund, Goldman Sachs Variable Insurance Trust Multi-Strategy Alternatives Portfolio, Oppenheimer Diversified Alternatives Fund/VA, and Legg Mason BW Absolute Return Opportunities, a non-traditional bond fund.
With this latest round of additions, Jefferson National has expanded its suite of Dimensional Funds with DFA VA Global Moderate Allocation Portfolio. The new lineup also includes Calvert VP SRI Balanced Portfolio, an actively managed portfolio with investment criteria including financial, sustainability and social responsibility factors.
In late March, Jefferson National launched the JNF SSgA Retirement Income Portfolio, giving advisors and their clients a new way to unlock retirement income through a unique combination of total return and a tactically managed Volatility Shield.
1Investment Solutions Survey, Jefferson National, October 2013. 2Jefferson 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. 3Quantitative Update: ETFs and Retail Alternative Products and Strategies 2012, Cerulli Associates, August 2012. 4The Tax-Efficient Frontier: Improving the Efficient Frontier with the Power of Tax Deferral, by David Lau, Jefferson National, June 2010.