Nationwide Financial® adds managed asset allocation service to existing variable annuities to help individuals diversify
Nationwide Allocation Architect provides disciplined diversification based on risk tolerance, investment objectives
FOR IMMEDIATE RELEASE
August 23, 2006
Jeff Whetzel 614-249-6354
Jeff Botti 614-249-6339
COLUMBUS, Ohio — To provide individuals with access to diversified, quality investment options without having to purchase new financial products, Nationwide Financial Services, Inc. (NYSE: NFS), announced it has added Nationwide Allocation ArchitectSM, a managed asset allocation service that helps consumers match their risk tolerance with their investment goals, to four existing variable annuities.
Nationwide Allocation Architect (NAA) is now available with the following variable annuities:
- The Best of America® IV
- The Best of America® V
- The Best of America’s FUTURE Annuity
- The Best of America VISION Annuity
“Continually providing quality investment solutions that help meet each individual’s need is our focus,” said John Carter, president of Nationwide Financial Distributors, Inc. “Adding Nationwide Allocation Architect to existing products provides investment professionals with a simpler way for their clients to diversify within the annuities they already own.”
Nationwide Allocation Architect was first made available last year on certain variable universal life (VUL) and annuity products issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, OH. The service was launched by Nationwide Financial through its affiliated company, Nationwide Investment Services Corporation (NISC), a registered investment advisor. NAA was added to its all-in-one living benefit, Capital Preservation Plus Lifetime Income (CPPLI), a rider that is available at an additional cost within certain Nationwide Financial variable annuities, last October.
Nationwide Allocation Architect offers customers additional options of how to invest assets within their variable annuity. Working with their investment professional, consumers can determine their risk tolerance and then decide which asset allocation investment model î º conservative, moderately conservative, moderate, moderately aggressive or aggressive î º makes sense for them. The five asset allocation models are in addition to the previous investment options that were available with the four annuities.
NISC has partnered with Ibbotson Associates Advisors L.L.C. to provide an investor profiling tool, asset allocation models and investment option selections that make up the Nationwide Asset Allocation ArchitectSM models. Ibbotson is a recognized authority on asset classes and their historical behavior, and has helped their clients balance risk and return based on their goals and objectives for more than 25 years.
Carter said adding Nationwide Allocation Architect is another way they’re helping to simplify solutions for investment professionals, similar to when nine new investment options were made available with both new and existing variable products on May 1. The underlying investment options are not publicly traded mutual funds and are not available directly for purchase by the general public. They are only available through variable annuity and variable life contracts issued by life insurance companies (or in some cases, through participation in certain qualified pension or retirement plans).
“Whether it’s enhancing individual investment options or packaged solutions, our focus on quality and performance allows investment professionals to continue building relationships and helping frame their clients’ financial future,” 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 182150, Columbus, Ohio 43218-2150. 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.
When evaluating the purchase of a variable annuity, individuals should be aware that variable annuities are long-term investment vehicles designed for retirement purposes and will fluctuate in value; annuities have limitations; and investing involves market risk, including possible loss of principal.
It is important to understand that the use of diversification and asset allocation as part of an overall investment strategy does not assure a profit or guarantee against a loss in a declining market.
Nationwide Investment Services Corporation is the investment advisor for Nationwide Allocation Architect. Nationwide variable annuity 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. The general distributor is Nationwide Investment Services Corporation, member NASD. In MI only: Nationwide Investment Svcs. Corporation.
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. 98 on the Fortune 500 based on 2005 revenue.ii For more information, visit www.nationwide.com.
About Ibbotson Associates Advisors, LLC
Ibbotson Associates, LLC, is a leading authority on asset allocation, providing products and services to help investment professionals obtain, manage and retain assets. The company’s business lines include investment consulting and research; and investment advice through managed accounts. The company markets its integrated product line to institutional money managers, insurance companies, plan sponsors and consultants, financial planners, brokers, mutual fund firms, hedge funds, banks and small money managers. For more information, visit www.ibbotson.com.
Nationwide, Nationwide Financial and the Nationwide Framemark are federally registered service marks of Nationwide Mutual Insurance Company.
i Nationwide Investment Services Corporation, member NASD. In MI only: Nationwide Investment Svcs. Corporation.
ii Fortune Magazine, April 2006
Investments Retirement Insurance nationwide.com One Nationwide Plaza Columbus, OH 43215-2220