Jefferson National's Flat-Fee VA Offers Industry's Most Funds and Most Alternatives to Help RIAs and Fee-Based Advisors Volatile Market23 New Investment Options from American Funds, Federated, Goldman Sachs, SEI and Advisors Preferred Trust
Louisville, KY—December 2, 2013— As Registered Investment Advisors (RIAs) and fee-based advisors continue to manage ongoing volatility in a time of rising taxes, they see alternative investments, tactical management and the power of tax deferral as key to navigating the current market.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 the addition of 23 new investment options, including several new funds embedded with unique strategies to manage risk and volatility. Jefferson National is a market leader in tax-advantaged investing with nearly 400 investment options—the industry’s most underlying funds and the most liquid alternative funds that employ strategies like those favored by hedge funds and elite institutional investors.
“With more than $1 Billion in sales over the past 20 months, Jefferson National’s flat-fee VA is achieving strong adoption as the leading tax-advantaged investing solution for RIAs and fee-based advisors,” said David Lau, COO of Jefferson National. “Clearly, the combination of tax deferral, low cost and an unsurpassed selection of funds is key to manage risk, hedge against volatility and build more resilient client portfolios in today’s turbulent market.”
In response to strong advisor demand, Jefferson National’s latest additions feature a full suite of 14 investment options from American Funds, including 5 managed risk funds that utilize a Milliman hedge to manage volatility and provide downside protection. Additional options with embedded risk management include Federated Managed Tail Risk Fund II, and Goldman Sachs Variable Insurance Trust Global Markets Navigator Fund, a managed volatility fund. Jefferson National also added a diversified suite of 6 asset allocation funds from SEI, one of the first companies to offer “Manager-of-Managers” investment programs. Jefferson National rounded out its lineup with Gold Bullion Strategy Portfolio from Advisors Preferred Trust.
In recent surveys, nearly two-thirds of advisors (64%) have increased their use of alternative investments over the past five years, and 55% see their allocation to alternatives continuing to increase further over the next 5 years.1 Cerulli research indicates that in five years 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’s Monument Advisor offers a tax-deferred investing solution which can improve performance potential of tax-inefficient strategies by an average of 100 bps—without increasing risk.4 More than 90% of advisors said their clients are concerned about the rise in capital gains tax, and 71% are considering using a low-cost tax-deferred account to mitigate the impact.1
1 Investment 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.