Jefferson National's Monument Advisor Becomes the First Variable Annuity to Incorporate Putnam Absolute Return StrategiesPutnam Investments announced today that Jefferson National’s Monument Advisor now offers Putnam Variable Trust (VT) Absolute Return 500 Fund, making it the first variable annuity to incorporate Putnam absolute return strategies.
Boston, MA — May 4, 2011 — Putnam Investments announced today that Jefferson National’s Monument Advisor, the industry’s only variable annuity with a flat-insurance fee1, now offers Putnam Variable Trust (VT) Absolute Return 500 Fund, making it the first variable annuity to incorporate Putnam absolute return strategies.
The new Putnam subaccount offering, a counterpart to the highly widely utilized retail Putnam Absolute Return 500 Fund, was created for use by insurance companies in variable annuities and other variable insurance products that they offer to their customers. Putnam VT Absolute Return 500 Fund is designed for variable annuity investors who seek 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 conditions.
“As the industry’s first variable annuity to offer Putnam absolute return strategies, Jefferson National continues a commitment to innovation that creates more value and greater tax-efficiencies for advisors and their clients,” said Laurence Greenberg, President of Jefferson National. “In a challenging market where every basis point counts, adding Putnam’s absolute return strategy to Jefferson National’s flat-insurance fee variable annuity allows investors to pursue positive returns with lower volatility than traditional funds—and improve performance potential with the power of tax deferral.”
In commenting on the inclusion of Putnam VT Absolute Return 500 Fund in the Monument Advisor program, Bill Connolly, Head of Global Distribution, Putnam Investments, said “In recognizing the powerful role of absolute return strategies in helping investors achieve successful goal-based outcomes, Jefferson National is clearly distinguishing itself as a thoughtful, innovative, variable annuity provider. We expect that Jefferson National will be applauded as a true trailblazer in introducing volatility dampening solutions within this marketplace.”
Managed by the same team of portfolio managers and in the same manner as the retail Absolute Return 500 Fund, led by Jeffrey L. Knight, Head of Global Asset Allocation, the Putnam VT Absolute Return 500 Fund combines two independent investment strategies: A beta strategy that seeks to balance risk and provide positive total return through a comprehensively diversified, multi-asset class market portfolio with broad exposure to investment markets; and an alpha strategy with a variety of active trading tactics that employ security selection, tactical asset allocation, currency transactions and options transactions.
1Jefferson National’s Monument Advisor has a $20 flat-insurance fee on more than 97% of its 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 for investors wishing to purchase shares of ultra low-cost funds. 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.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money management firm with over 70 years of investment experience. At the end of April 2011, Putnam had $130 billion in assets under management, including mutual fund assets of $71 billion and institutional assets of $59 billion. Putnam has offices in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore and Sydney. For more information, visit putnam.com.
Putnam mutual funds are distributed by Putnam Retail Management.
Putnam’s Absolute Return Funds are not intended to outperform stocks and bonds during strong market rallies.