Diversification made simpler with new asset allocation investment option from Nationwide
Nationwide Variable Insurance Trust (NVIT) Cardinal Funds one of several updates to strengthen variable investment choices for consumers
COLUMBUS, Ohio — To help consumers diversify their investments more simply through asset allocation, Nationwide Financial Services, Inc. (NYSE: NFS), today announced the introduction of the NVIT CardinalSM Funds as part of its annual updates to strengthen investment options within the company’s variable annuity and life products.
“Consumers may realize the importance of diversifying through asset allocation but feel overwhelmed at the thought of trying to do so on their own, especially given the recent market volatility,” said John Carter, president of Nationwide Financial Distributors, Inc. “With the NVIT Cardinal Funds we’ve simplified the process by packaging renowned money managers and professional asset allocation into one investment option.”
Carter said Nationwide’s newest asset allocation solution includes seven fund-of-funds managed for different levels of risk, from conservative to aggressive, offering consumers a simpler way to diversify.
“It’s automatic diversification for consumers, leaving the portfolio
management to the investment specialists to work on their behalf,” said
The use of diversification and asset allocation as part of an overall investment strategy does not assure a profit or protect against loss in a declining market.
The new NVIT Cardinal Funds include:
• NVIT Cardinal Conservative Fund
• NVIT Cardinal Moderately Conservative Fund
• NVIT Cardinal Balanced Fund
• NVIT Cardinal Moderate Fund
• NVIT Cardinal Capital Appreciation Fund
• NVIT Cardinal Moderately Aggressive Fund
• NVIT Cardinal Aggressive Fund
Ibbotson Associates, a recognized leader in the investment marketplace, will develop the asset allocation models for the NVIT Cardinal Fund portfolios while Nationwide Fund Advisors will select the underlying investment options and portfolio managers, as well as monitor the Funds’ performance.
All of the funds except Aggressive will be available for use in Nationwide Financial’s competitive portfolio of variable annuity living benefits, The Nationwide Lifetime Income Rider® (L.inc) and Capital Preservation Plus Lifetime Income® (CPPLI).
Carter said the riders provide consumers with two withdrawal options to choose from when the time is right based on their primary needs, whether that’s lifetime income with Nationwide L.inc or principal protection through CPPLI.
“Our living benefits already offer consumers flexible features such as the ability to take excess withdrawals without jeopardizing the guarantees, market participation with principal protection but no upside ceiling, and guaranteed income without having to annuitize,” said Carter. “Adding the NVIT Cardinal Funds provides another strong investment option to help consumers further personalize their annuity investments.”
Nationwide is also introducing new NVIT Multi-Manager Funds, which are available individually and as underlying holdings in the new NVIT Cardinal Funds. These new funds, designed to seek style consistency over time, are managed by two or more subadvisors screened and selected by Nationwide Fund Advisors.
“The benefit to a multi-manager approach is that it gives consumers an added level of diversification to help manage risk,” said Carter. “Each manager contributes to the portfolio’s return, which helps reduce the likelihood of dramatic swings in performance over time.”
Carter added that the Multi-Manager Funds are managed by well-known retail fund families, institutional money managers and boutique specialty firms, which offer clients access to strategies that are usually available only to large corporate investors and high-net-worth individuals.
Five new NVIT Multi-Manager Funds will be offered, including:
• NVIT Multi-Manager International Growth Fund
• NVIT Multi-Manager Large Cap Growth Fund
• NVIT Multi-Manager Large Cap Value Fund
• NVIT Multi-Manager Mid Cap Growth Fund
• NVIT Multi-Manager Mid Cap Value Fund
In addition to introducing NVIT Cardinal Funds and new Multi-Manager Funds, Nationwide Financial also announced the addition of new subadvised investment options in the Nationwide Variable Insurance Trust (NVIT):
• Gartmore NVIT International Equity Fund – Class VI
• NVIT Core Bond Fund – Class II
• NVIT Short Term Bond Fund – Class II
• Lehman Brothers NVIT Core Plus Bond Fund – Class II
• Neuberger Berman NVIT Multi Cap Opportunities Fund – Class II
• Neuberger Berman NVIT Socially Responsible Fund – Class II
• Van Kampen NVIT Real Estate Fund – Class II
Also added to the investment lineup are the following:
• AllianceBernstein VPS Small/Mid Cap Value Portfolio Class B
• Franklin VIPT Founding Funds Allocation Fund – Class 2
Carter said Nationwide’s role as a ‘manager of managers’ in a subadvised platform allows Nationwide Fund Advisors to ensure the renowned third-party money managers stay committed to the objectives of each fund, which means consumers can feel confident when choosing from investment options that can help best meet their financial goals.
“Since we pioneered the multi-manager approach to variable products more than 25 years ago our commitment has been to provide quality investment choices, and the changes to our lineup this year continue that tradition” said Carter.
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 annuities and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Nationwide Life Insurance Company is a subsidiary of Nationwide Financial Services, Inc., a publicly traded holding company. The general distributor is Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation.
Investing involves market risk, including possible loss of principal,
and there is no guarantee that investment objectives will be
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 variably annuity policies issued by life insurance companies.
The NVIT Cardinal Funds and NVIT Multi-Manager Funds are distributed by
Nationwide Fund Distributors LLC, member FINRA, 1200 River Road, Suite
1000, Conshohocken, PA 19428.
Nationwide Fund Advisors is not affiliated with Ibbotson Associates.
Ibbotson Associates is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers investi and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.
It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 108 on the Fortune 500 based on 2007 revenue.ii For more information, visit www.nationwide.com.
Nationwide, Nationwide Financial, the Nationwide framemark, The Nationwide Lifetime Income Rider and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. NVIT Cardinal is a service mark of Nationwide Mutual Insurance Company. Capital Preservation Plus Lifetime Income is a federally registered service mark of Nationwide Life Insurance Company.