Nationwide Defined Protection® Annuity Now Adds Three New Indices
Exclusive new indices from BlackRock® and Societe Generale plus new index from Standard & Poor’s provide greater diversification and growth potential
Columbus, OH — Nationwide, one of the strongest, diversified, Fortune 100 insurance and financial services companies, and product development partner Annexus, the premier independent designer of indexed retirement solutions, announce the addition of three new indices to round out an already robust lineup offered by Nationwide Defined Protection® Annuity (DPA) registered index-linked annuity (RILA).
With the addition of two exclusive new indices, BlackRock Select Factor Index and SG Macro Compass Index, plus the S&P 500® Average Daily Risk Control 10% USD Price Return Index, Nationwide DPA’s index lineup now includes a total of seven complementary global and domestic indices, to better meet the goals and risk tolerances of conservative to moderate clients who are approaching or living in retirement.
Unique Combination: Expanded Index Lineup plus Floor Structure
DPA is uniquely positioned by offering this broad range of indices in combination with a floor structure that provides three defined protection levels which limit negative performance. This allows clients to select how much of their investment—90%, 95% or 100%—will be protected from market losses and helps determine their performance opportunities.
“For clients who are concerned about significant losses, but still need growth potential, Nationwide’s Defined Protection Annuity is uniquely designed to help capture and lock in earnings, with a defined level of protection to limit their losses, and the flexibility to reset new allocations for future growth potential—as well as to adjust as their risk tolerance changes over time,” said Eric Henderson, president, Nationwide Annuity at Nationwide Financial. “Expanding the DPA index lineup of complementary global and domestic indices, including two exclusive new indices, helps meet an even broader range of clients’ goals and risk tolerance, so they can balance the right level of protection they need with the greater growth potential they want.”
“Nationwide’s Defined Protection Annuity gives financial professionals a solution to help address clients’ complex challenges in this ongoing low interest rate environment, by offering an expanded lineup of seven indices combined with a floor structure, to provide a unique balance of performance potential and defined protection,” said Craig Hawley, Head of Nationwide’s Annuity Distribution. “Year over year, investors consistently say that protecting assets is a top financial concern, and more than half would feel more secure if a portion of their assets were invested in an annuity to protect assets against market risk, according to Nationwide’s sixth annual Advisor Authority study.”
Three New Indices: Rounding Out Robust Lineup
Exclusive to Nationwide is the dynamic BlackRock Select Factor Index from BlackRock, currently the world’s largest asset manager. The index seeks to deliver a diversified multi-asset exposure and targets five equity style factors each backed by academic research. The index dynamically adjusts factor holdings to emphasize attractive opportunities and targets a consistent level of volatility with a focus on stability during market extremes.
Also exclusive to Nationwide, the dynamic SG Macro Compass Index is from leading European financial services group Societe Generale. The global multi-asset index seeks to identify expected changes in economic growth and inflation to forecast the market environment and make strategic allocations based on the forecast.
The third new addition is the S&P 500® Average Daily Risk Control 10% USD Price Return Index, a traditional index option that seeks to limit the volatility of the S&P 500® to a target level of 10% by allocating to cash based upon an algorithm. From leading index provider Standard & Poor’s, the index helps to reduce exposure to dramatic fluctuations that can occur during unstable market conditions.
These three new indices round out an already robust lineup of index strategies that can offer upside potential and be tailored to fit a broad range of investment objectives. This includes traditional equity indices S&P 500® Price Index and MSCI EAFE, as well as multi-asset indices NYSE® Zebra Edge® Index and J.P. Morgan Mozaic II℠ Index.
Financial professionals interested in the Nationwide Defined Protection Annuity should contact their Nationwide wholesaler or call the National Sales Desk at 800-321-6064. Individual investors interested in learning more about the benefits of defined protection, should contact their financial professional and visit www.definedprotection.com.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.
Annexus designs solutions to help Americans grow and protect retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. Our products have forged partnerships with the industry’s leading insurance carriers and the world’s largest investment banks. A handpicked network of financial professionals use Annexus solutions to help clients take control of their retirement. Find out more at www.annexus.com.