Enhancements to top-selling FIA include two new indices, greater diversification, highly competitive accumulation opportunities and higher guaranteed income
Columbus, OH—March 8, 2021—Nationwide, one of the strongest, diversified, Fortune 100 insurance and financial services companies, has joined with product development partner Annexus, the premier independent designer of fixed indexed annuities (FIAs), to announce the launch of Nationwide New Heights® Select, built on the foundation of 2020’s #1 selling income FIA with a guaranteed roll up.1
With the addition of multiple client-centric enhancements to Nationwide New Heights Select, the popular product suite continues to evolve to provide more choice and greater client value. These latest additions include two new indices, new bucketing capabilities for greater diversification, highly competitive accumulation opportunities and increased lifetime income payout percentages on one of the optional income riders.
“As interest rates remain near record lows, while concerns about volatility run high and the cost of living in retirement continues to rise, investors face a complex challenge. They need solutions to help them grow and protect their retirement savings—as well as a guaranteed income stream to protect their lifestyle in retirement,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “Nationwide New Heights Select fixed indexed annuity has been enhanced to provide pre-retirees with greater growth potential and principal protection at a time when they need it the most, while also providing a guaranteed source of retirement income they can’t outlive.”
“While guaranteed income is crucial for clients, advisors evaluating guaranteed income FIAs should also consider many other factors. The opportunity cost of selling a product with poor growth potential is simply too risky.” Don Dady – Annexus Co-founder
Two New Indices for Greater Diversification and Growth Opportunity
New Heights® Select offers growth opportunities with strategy options that track the performance of an index and lock in earnings at the end of each strategy term. Now, for even greater diversification, new bucketing capabilities allow a clients’ contract value to be allocated among up to five strategy options, including two new indices.
Nationwide New Heights Select now offers the SG Macro Compass Index, one of the first global multi-asset indices in an FIA that utilizes the current economic outlook to determine its asset allocation. It has the ability to adapt to current market conditions by pivoting and leaning into growth assets when markets are bullish and defensive assets when markets are bearish. The methodology leverages the expertise of Societe Generale’s Quantitative Research team. It is rooted in the deep academic research of macroeconomic regimes created by Dr. Solomon Tadesse who is an experienced investment executive and seasoned thought leader.
Nationwide New Heights Select has also added the NYSE® Zebra Edge® II Index, based on a methodology developed by economist Professor Roger G. Ibbotson and his team at Zebra Capital Management, and founded on Ibbotson’s behavioral finance research. It uses his behavioral finance filtering process to evaluate the 500 largest publicly-traded companies in the United States each quarter and then removes the riskiest and most volatile companies to identify equities with the potential for higher returns with less risk.
“The addition of these two new indices, bucketing strategies for greater diversification and the increase of the lifetime withdrawal percentages are significant enhancements to an already successful suite of products, providing the potential for higher annual returns and more guaranteed income.” Ron Shurts – Annexus Co-founder
“While guaranteed income is crucial for clients, advisors evaluating guaranteed income FIAs should also consider many other factors. The opportunity cost of selling a product with poor growth potential is simply too risky,” said Annexus co-founder Don Dady. “It’s always important to also give your clients the greatest opportunity for growth potential, to provide flexibility if their plans change and they don’t choose to trigger income.”
Annexus Co-Founder Ron Shurts added, “For Nationwide New Heights Select, the addition of these two new indices, bucketing strategies for greater diversification and the increase of the lifetime withdrawal percentages are significant enhancements to an already successful suite of products, providing the potential for higher annual returns and more guaranteed income.”
Guaranteed Income for Life with Bonus Features
Nationwide New Heights Select offers two optional living benefit riders available for an additional charge, to create a source of guaranteed income for life. The Nationwide High Point 365® Select Lifetime Income rider with Bonus now offers higher lifetime payout percentages with the flexibility for earlier withdrawals. It includes a bonus of 10% of a client’s purchase payment added to their Minimum Income Benefit Value at contract issue.2 In addition, the Minimum Income Benefit Value will continue to grow daily at a 7% compound annual rate until the earlier of 10 years or until beginning lifetime income withdrawals, whichever comes first.3 By year 10, the Minimum Income Benefit Value is guaranteed to at least double. All protections and guarantees are backed by the claims-paying ability of Nationwide Life and Annuity Insurance Company.
For more information on Nationwide New Heights® Select, including the enhanced diversification of asset classes and allocation strategies, highly competitive accumulation opportunities and optional income riders, contact your Nationwide wholesaler, Annexus-affiliated independent distribution company or visit www.NationwideNewHeights.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 is the leading independent product development provider of fixed indexed annuities, indexed universal life insurance and index-based wealth management solutions. Annexus partners with industry thought leaders, leading insurance carriers and the world’s largest investment banks to drive product innovation. A handpicked network of elite financial professionals provides exclusive access to Annexus solutions that help clients take control of their retirement. Find out more about Annexus and its products at www.annexus.com.
1 Source: Analysis of Beacon, 3Q 2020 report. Best-selling guaranteed income FIA YTD through 9/30/2020. Interpretation of “Income FIA with a guaranteed roll-up” includes any fixed indexed annuity with a Guaranteed Lifetime Withdrawal Benefit rider that features a guaranteed roll-up on the income base. Riders or products in which lifetime income is entirely based on potential index growth rather than guaranteed growth.
2 A 10% bonus calculated on the purchase payment, will be added to the Minimum Income Benefit Value at contract issue.
3 This assumes that no withdrawals are taken.
Nationwide New Heights fixed indexed annuities are issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. All guarantees are subject to the claims-paying ability of Nationwide Life and Annuity Insurance Company.
The SG Macro Compass Index (the “Index”) is the exclusive property of SG Americas Securities, LLC (“SG”) and has been licensed to Nationwide Life Insurance Company (“Nationwide”) for use in a fixed indexed annuity offered by Nationwide (the “Product”). SG’s sole contractual relationship with Nationwide is to license the Index and the SG Marks to Nationwide. None of SG, S&P Opco, LLC, or other third party licensor (collectively, the “Index Parties”) to SG is an agent of Nationwide or has in any way sponsored, promoted, offered, sold structured or priced any Product, and no Index Party makes any representation as to the advisability of purchasing, selling or holding any Product. No Index Party shall have any liability with respect to the Product or the Index. Obligations to make payments under the Product are solely the obligation of Nationwide. In calculating the performance of the Index, SG deducts transaction and replication costs, each calculated and deducted on a daily basis, which will reduce the potential positive change in the Index and increase the potential negative change in the Index. The total amount of transaction and replication costs is not predictable and will depend on a number of factors. “SG Americas Securities, LLC”, “SGAS”, “Société Générale”, “SG”, “Société Générale Indices”, “SGI”, and “SG Macro Compass Index” are trademarks or service marks of SG. Additional information is available at sg-macro-compass.com.
ICE Data Indices, LLC owns all intellectual and other property rights to the NYSE® Zebra Edge® II Index (the “Index”), including the composition and the calculation of the Index, but excluding the methodology and formula for the Index. Zebra Capital Management, LLC owns all intellectual and other property rights to the methodology and formula for the Index, which are being used by ICE Data Indices, LLC under license from Zebra Capital Management, LLC (together with its subsidiaries and affiliates, “Zebra”).
The NYSE® Zebra Edge® II Index has been licensed by ICE Data Indices, LLC (together with its affiliates, “IDI”) to UBS AG and sub-licensed by UBS AG (together with its subsidiaries and affiliates, “UBS”) to Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) for use in certain life insurance and annuities offered by Nationwide (the “Products”). Neither Nationwide nor the Products are sponsored, operated, endorsed, recommended, sold or promoted by Zebra, IDI or UBS and in no event shall Zebra, IDI or UBS have any liability with respect to the Products or the Index. Zebra, IDI and UBS make no representations, give no express or implied warranties and have no obligations with regard to the Index, the Products or otherwise to any investor in the Products, client or other third party. The mark NYSE® is a registered trademark of NYSE Group, Inc., Intercontinental Exchange, Inc. or their affiliates and is being utilized by ICE Data Indices, LLC under license and agreement. The marks Zebra® and Zebra Edge® are registered trademarks of Zebra Capital Management, LLC, may not be used without prior authorization from Zebra Capital Management, LLC, and are being utilized by ICE Data Indices, LLC under license and agreement.
Nationwide is neither affiliated nor associated with third party entities mentioned in this release.
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