Newsroom

New investment options to Nationwide variable products allow consumers to balance risk, return in volatile markets

Strengthened lineup continues tradition of offering advisors, clients diversified options to customize investment strategies

FOR IMMEDIATE RELEASE
May 4, 2009

Contacts:
Jeff Whetzel (614) 249-6354
whetzej@nationwide.com

Chad Green (614) 677-1679
greenc28@nationwide.com

COLUMBUS, Ohio— To help consumers balance risk and return during these volatile markets, Nationwide Financial Services, Inc. has made changes to strengthen the investment lineup within the company’s variable annuity and life products.

“During this period of market volatility, advisors are looking for ways to help their clients manage risk without jeopardizing the opportunity to pursue returns over the long run,” said John Carter, president of Nationwide Financial Distributors, Inc. “Our diverse investment lineup will enable advisors to tailor investment strategies for clients so they’re better prepared to weather any market.”

Carter said changes to the investment menu this year include:

Two new Nationwide Variable Insurance Trust (NVIT) Investor Destinations Funds, Balanced and Capital Appreciation Funds, which increases Nationwide’s lineup of funds available in the passively-managed asset allocation solution from five to seven.

Five new third-party investment options:

BlackRock Global Allocation V.I. Fund, Nationwide’s first international asset allocation option
Ivy Funds VIP Asset Strategy, the first tactical asset allocation portfolio offered
PIMCO VIT Foreign Bond Portfolio (unhedged), a pure foreign bond fund
PIMCO VIT Low Duration Portfolio, an addition to the short-term bond lineup
Wells Fargo Advantage VT Small Cap Growth Fund

“Assisting advisors with customized solutions so their clients can feel more confident in their long-term plans is what drives our lineup changes,” said Carter. “As part of the process, we’ll only add investment options and money managers who meet our highest quality standards and have demonstrated consistent performance over time.”

Carter noted that this is the first year PIMCO options will be available within the variable product menu, and that Bill Gross, Chief Investment Officer at PIMCO, will oversee the Low Duration Portfolio.

Five new NVIT subadvised investment options have also been added, including:

AllianceBernstein NVIT Global Fixed Income Fund
American Century NVIT Multi Cap Value Fund
Gartmore NVIT Worldwide Leaders Fund
Oppenheimer NVIT Large Cap Growth Fund
Templeton NVIT International Value Fund

Carter said that many of the new fund additions will be available for use in Nationwide Financial’s competitive variable annuity living benefit, The Nationwide Lifetime Income Rider^® (L.inc). L.inc is optional for an additional cost.

“In addition to providing guaranteed lifetime income, a variable annuity with L.inc allows investors to remain in the market so they’re positioned for when it rebounds,” said Carter. “Making adjustments such as these to strengthen our fund lineup can let investors continue to participate in the market with more confidence,” said Carter.

With the latest changes Nationwide’s entire investment menu for its variable life and annuity products now includes:

83 underlying investment options
Coverage across 32 Morningstar categories
Access to 31 money managers
9 asset allocation solutions
56 options with a 3-year performance track record
51 options with a 5-year performance track record

“These changes to our lineup are to continue our focus on providing advisors with a variety of investment options to help their clients be prepared financially regardless of the market conditions,” said Carter.

Annuities are long-term, tax-deferred investments designed for retirement and will fluctuate in value. They also allow customers to create a fixed or variable stream of income through a process called annuitization. It also provides a variable rate of return based on the performance of the underlying investments.

Annuities do have limitations. If a contract holder decides to take money out early, he or she may face surrender charges. Plus, if a person is not yet 59½, he or she may also have to pay an additional 10% income tax penalty on top of ordinary income taxes. A death benefit is available with most variable annuities. If an early withdrawal is taken, the death benefit and cash value will be reduced.

Annuities contain guarantees and protections that are subject to the claims-paying ability of the issuer. But, these guarantees don’t apply to any variable accounts that are subject to investment risk, including possible loss of principal.

Annuities are contracts bought from an insurance company and they are sold by prospectus. While it may take some time, these documents should be read. They describe risk factors, fees and charges that may apply to the contract holder. Variable annuities may have fees and charges including mortality and expense, administrative fees, contract fees and the expenses of the underlying investment options.

As with all life insurance, guarantees are subject to the claims-paying ability of the issuing life insurance company. As consumers’ personal situations change (for example, marriage, birth of a child or job promotion), so will their life insurance needs. Care should be taken to ensure this product is suitable for long-term life insurance needs. Any associated costs should be evaluated before making a purchase. Investing involves market risk, including the possible loss of principal.

Life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, and has additional charges for riders that customize a policy to fit individual needs.

Variable products are sold by prospectus. Potential clients may obtain both the product prospectus and underlying fund prospectuses from their investment professional or by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, Ohio 43218-2021. Before investing, carefully consider the fund's investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectus contain this and other important information. Read the prospectus carefully before investing or sending money.

Variable products are issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation.

All guarantees and protections, where available, are subject to the claims-paying ability of Nationwide Life Insurance Company. And, while they do not guarantee the actual performance of the variable accounts, they do offer a level of protection against investment loss.

The underlying investment options aren’t publicly traded mutual funds and aren’t available directly for purchase by the general public. They are only available through variable annuity contracts and variable life insurance policies issued by life insurance companies. These portfolios contain different investments than similarly named mutual funds offered by the money manager. Investments may result in higher or lower returns.

Funds of Nationwide Variable Insurance Trust are distributed by Nationwide Fund Distributors LLC, member FINRA, 1200 River Road, Suite 1000, Conshohocken, PA 19428.

About Nationwide

Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world. Nationwide ranks #124 on the Fortune 500 list¹. The company provides a full range of insurance and financial services, including auto, motorcycle, boat, homeowners, life, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions, long-term savings plans and health and productivity services. For more information, visit www.nationwide.com.

^{Nationwide, the Nationwide framemark, The Nationwide Lifetime
Income Rider and On Your Side are federally registered service marks of
Nationwide Mutual Insurance
Company.}

^{1Fortune Magazine, April 2009}