It’s really interesting what a difference a year makes. Most of the talk about variable annuities last year was negative because companies had stopped selling them or offered to buy back any generous guarantees. But the variable annuity news of late has been pretty good, with a return to living benefits from some insurers and new product offerings from others. Insurance News Net published a press release from Nationwide Financial that introduces some new options with the insurance company’s popular line of variable annuities. In “Nationwide Financial Introduces 3 Actively Managed Subaccounts for America’s MarketFLEX Variable Annuity Series,” it says that Nationwide has three new options for clients who want to diversify their investments within the variable annuities. The company said that they introduced these new options because volatile markets have made even savvy investors wary of long term commitments to the market.
By investing in one of three new subaccounts, investors can be confident in a market response without having to worry about the daily activities on their own. All three subaccounts are actively managed by managers who can allocate the money in response to changes in the markets. These NVIT Flexible Strategy Funds give clients the potential to accumulate wealth within their variable annuities. The outcome of the portfolios is based on three things: income, growth and low-correlation strategies. The Lazard NVIT Flexible Opportunistic Strategies Fund looks to the future by investing in nontraditional funds to achieve appreciation and return on your capital over the long term. The NVIT Flexible Moderate Growth Fund is called a total portfolio solution and focuses on long term growth by investing in stocks, bonds and other assets. The NVIT Flexible Fixed Income Fund is also a total portfolio solution. This fund focuses on providing income, but also offers the manager some flexibility to increase income by adjusting the asset classes.
Current owners of the MarketFLEX variable annuities can switch to these new subaccounts at any time. New clients can also opt for one of these subaccounts. If you have a question about any variable annuity, including Nationwide’s MarketFLEX, speak with an expert at Annuity FYI.
Written by Rachel Summit