Nationwide New Heights Fixed Indexed Annuities May Help Shift the Efficient Frontier
November 23, 2016 by Annexus
SCOTTSDALE, Ariz., Nov. 15, 2016 (GLOBE NEWSWIRE) — Annexus, a leading designer of fixed indexed annuities and indexed universal life insurance, announced that the Nationwide New Heights® fixed indexed annuities are capable of shifting the Efficient Frontier. Through a license agreement from Morningstar Investment Management LLC, a leading source of independent retirement research, the Morningstar® Wealth Forecasting EngineSM was used to help determine that New Heights may help improve risk-adjusted returns in a client’s retirement portfolio—effectively shifting the Efficient Frontier.
“Annexus contacted us to discuss an analysis of the impact of adding Nationwide New Heights to a traditional equity and bond portfolio,” said David Blanchett, head of retirement research at Morningstar Investment Management. “We leveraged data and over 1,000 dynamically generated Monte Carlo simulations from the Morningstar® Wealth Forecasting EngineSM to help them analyze the probability of meeting retirement needs under a broad range of market conditions.”
“We worked with Nationwide to build an industry-leading FIA, and through the analysis with Morningstar Investment Management, determined that reallocating a portion of a client’s portfolio to New Heights can actually increase potential returns while reducing risk,” said Don Dady, co-founder of Annexus and lead product designer of New Heights. “This first-of-its-kind analysis is a game-changer.”
“Using Morningstar Investment Management’s analysis, Annexus worked to build the Nationwide Retirement Portfolio Risk Calculator® to help advisors demonstrate to their clients that adding New Heights could help improve the risk-adjusted returns of their retirement portfolio,” said Ron Shurts, Annexus co-founder. “Now, advisors can also create client outputs to demonstrate this potential shift in the Efficient Frontier.”
New Heights is available to Nationwide’s affiliated agency force, independent distributors and bank and wirehouse channels. Annexus also distributes the products through independent marketing organizations.
About Annexus
Annexus designs solutions to help Americans grow and protect their retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. In close collaboration with design partner Genesis Financial, Annexus has forged relationships with Athene, Nationwide® and Securian, as well as J.P. Morgan, Barclays and Merrill Lynch. Find out more about Annexus and our products at www.annexus.com.
The Nationwide Retirement Portfolio Risk Calculator compares hypothetical portfolios with portfolios that include a Nationwide New Heights fixed indexed annuity with or without the optional High Point 365 Lifetime Income Benefit rider, available for an additional cost at contract issue. The general assumptions used in this tool may change over time and do not represent actual investment results, do not guarantee future results and do not represent an optimized or recommended allocation from Nationwide, Morningstar Investment Management, Annexus or any of their affiliates. Although a broad range of investment outcomes were analyzed to develop the results of this analysis, there may be other investment outcomes possible.
Annuities have limitations. They are long-term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses, or to fund short-term savings goals. Investing involves risk.
A fixed indexed annuity is not a stock market investment and does not directly participate in any stock or equity investment. It may be appropriate for individuals who want guaranteed interest rates and the potential for lifetime income. Guarantees are subject to the claims-paying ability of the issuing insurance company.
Annexus licensed the Morningstar® Wealth Forecasting EngineSM from Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc. The Morningstar Wealth Forecasting Engine is offered by and the property of Morningstar, Inc. Morningstar and Morningstar Investment Management are not responsible for investment decisions or any related damages/losses resulting from the use of the Morningstar Wealth Forecasting Engine. The use of the Morningstar Wealth Forecasting Engine should not be construed as a solicitation or recommendation to buy or sell a financial product or as an endorsement of any financial product used in conjunction with the Morningstar Wealth Forecasting Engine. The use of the Morningstar Wealth Forecasting Engine and any product or information resulting therefrom should not be construed as investment advice or any other type of advice. The calculations have been generated by the Morningstar Wealth Forecasting Engine are believed to be reliable, however, no guarantees can be made as to the accuracy of the calculations or applicability to a client’s individual circumstances. Past performance does not guarantee future results. Morningstar Investment Management is not acting in an advisory capacity to Nationwide, Annexus, their affiliates, or their clients. The Morningstar name and logo are registered marks of Morningstar, Inc.
Nationwide, Annexus, and Morningstar Investment Management LLC are not affiliated.
FAM-0710AO (11/16)
