May 01, 2013
Nationwide Financial Adds Four New Managed Volatility Funds to Core VA Line-up to Help Investors Address the "New Normal"
New Funds designed to provide upside potential with management of downside risks for investors and Nationwide
Columbus, Ohio - Despite a strong start for the stock market in 2013, many investors remain cautious after experiencing multiple major downturns in recent years. As a result, these investors perceive market volatility as the ‘new normal.’ To address this challenge, Nationwide Financial announced today the addition of four new managed volatility fund options for its core VA line-up. The new NVIT (Nationwide Variable Insurance Trust) Managed Funds are designed to capture growth when the stock market rises and help buffer against major losses when it falls.
“Major short-term investment losses can be devastating for unprepared investors –especially those who are near or early in retirement, and even those using variable annuities to build assets and plan for income,” said Eric Henderson, senior vice president of Life Insurance and Annuities for Nationwide Financial. “With these new funds, advisors can help clients participate in market gains while hedging against potential downturns in their account balances, providing an additional layer of volatility management along with any income guarantees.”
The patent-pending algorithm incorporated into the new NVIT funds evaluates stock market conditions on a daily basis, actively adjusting equity exposure to seek gains when volatility is low and avoid excessive losses when volatility is high. The new funds invest in a traditional asset allocation portfolio of underlying stock and bond funds, managing investment risk through diversification. An additional layer of risk management for market volatility comes from an overlay of stock index futures, which dynamically adjusts the funds’ overall equity exposure in response to market volatility.
“Managed volatility funds are more than just a great tool for advisors and their clients – they make a lot of sense for Nationwide Financial,” Henderson said. “In addition to helping investors prepare for unexpected bumps in the road, the active management of these funds helps our company manage risk, which helps us maintain capacity. Managed volatility funds are an important piece of the puzzle for Nationwide when it comes to addressing the challenge posed by prolonged, historically low interest rates. It's a great example of something that is good for both the customer and the company.”
The new managed volatility funds include:
- NVIT Cardinal Managed Growth Fund
- NVIT Cardinal Managed Growth & Income Fund
- NVIT Investor Destinations Managed Growth Fund
- NVIT Investor Destinations Managed Growth & Income Fund
Financial Advisors interested in learning more about the new NVIT funds can contact Nationwide at 800-321-6064. Consumers should ask their financial advisor about how Nationwide can help provide guaranteed income in retirement.
Nationwide, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by A.M. Best. The company provides a full range of personalized insurance and financial services, including auto insurance, motorcycle, boat, homeowners, life insurance, farm, 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.