Fidelity Investments® Launches Target Volatility Portfolio
New Fund Designed to Deliver More Consistent Returns Profile in Guaranteed Benefit Products; Ohio National Financial Services® and Jefferson National® First to Offer New Portfolio in Annuities
BOSTON -- Fidelity Investments®
, a leading global, multi-asset-class investment management firm with $1.7 trillion in managed assets, today announced the availability of a target volatility strategy, the Fidelity®
VIP Target Volatility Portfolio. Offered exclusively through variable annuity and variable life insurance products, the portfolio seeks to manage total return volatility within a target range.
Nineteen-year Fidelity veteran Xuehai En is the lead portfolio manager for the fund, while Bob Vick, a 24-year veteran of Fidelity, is co-manager.
Fidelity also said that Ohio National Financial Services and Jefferson National are the first insurance companies to package the portfolio in their annuity offerings, ONcore Individual & Group Variable Annuities (in New York, NScore variable annuities issued by National Security Life and Annuity Company) and Jefferson National’s flat-fee variable annuity, Monument Advisor , respectively.
“Turbulent market swings like the ones we’ve witnessed over the past decade can far exceed the risk tolerance of many investors,” said Mr. En. “We believe managing volatility provides the opportunity for more consistent returns over time.”Strategy and Approach
The VIP Target Volatility Portfolio primarily invests in U.S. equities, foreign developed market equities, U.S. investment grade bonds, and cash through a combination of underlying Fidelity mutual funds as well as exchange traded funds (ETFs) and index futures. The investment team has flexibility to invest in other asset classes, such as high yield debt and emerging market equities and debt.
The managers seek a target portfolio volatility -- defined as the measurement of the magnitude of up and down fluctuations of the fund’s return over a specified time period – of 10% over rolling one-year periods. The investment team develops volatility forecasts to adjust the portfolio’s asset allocation in response to periods of forecasted high or low market volatility. The portfolio’s strategy is implemented through a disciplined and integrated investment process that seeks to deliver a consistent risk and return profile, supported by Fidelity’s global research including an extensive asset allocation research team.
The VIP Target Volatility Portfolio uses a blended benchmark as an asset allocation guide made up of the Dow Jones U.S. Stock Market Index (42%), MSCI EAFE Index (18%), Barclays U.S. Aggregate Bond Index (35%), and Barclays U.S. 3 Month Treasury Bellwether Index (5%).Portfolio Manager Biographies
Mr. En joined Fidelity in 1994 and currently manages five VIP FundsManager Portfolios (20%, 50%, 60%, 70% and 85%) with $9.3 billion in total assets as of March 31, 2013. Prior to his current position, Mr. En served as a portfolio manager and a portfolio strategist for Fidelity’s registered investment adviser, Strategic Advisers, Inc., and as a senior quantitative analyst. He managed the Strategic Advisers U.S. Opportunity Fund from 2006 to 2009 and Strategic Advisers U.S. Opportunity II Fund from 2008 to 2009. Mr. En assumed management responsibilities for the five VIP FundsManager Portfolios in 2008.
Mr. Vick joined Fidelity in 1989 and currently manages the Strategic Advisers U.S. Opportunity Fund and Strategic Advisers U.S. Opportunity II Fund with $4.8 billion in total assets as of March 31, 2013. He joined Fidelity in 1989 in the Systems Architecture group of Fidelity Accounting & Custody Services Company (FACS). From 1990 to 1999, Mr. Vick was responsible for counterparty risk management systems, compliance systems, money market systems, data management systems, data architecture, and systems and network administration. In 1999, he joined Fidelity’s asset management division as a senior quantitative analyst and, in 2006, became head of Strategic Advisers’ quantitative research group.
About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $4.1 trillion, including managed assets of $1.7 trillion, as of March 31, 2013. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.
iJefferson National’s Monument Advisor has a $20 monthly flat insurance fee. Additional fees ranging from $19.99-$49.99 will be assessed for investors wishing to purchase shares of ultra low-cost funds. See the prospectus for details.
Before investing, have your client consider the portfolio's investment objective, risks, charges, and expenses. Contact Fidelity for a VIP prospectus or, if available, a summary prospectus containing this information. Have your client read it carefully.
The fund bears all risks of investment strategies employed by the underlying funds, including the risk that the underlying funds will not meet their investment objectives. These portfolios are subject to the volatility of the financial markets in the U.S. and abroad, and may be subject to the additional risks associated with investing in high-yield, commodity-linked, small-cap, and foreign securities. ETFs may trade in the secondary market at prices below the value of their underlying portfolios and may not be liquid. ETFs that track an index are subject to tracking error and may be unable to sell poorly performing assets that are included in their index or other benchmark. The fund may use investment techniques involving derivatives. Investors should be aware that there is no assurance that a mutual fund's use of a derivative strategy will succeed and derivatives may reduce its returns and/or increase volatility.
Fidelity VIP Target Volatility Portfolio is managed by Strategic Advisers, Inc. a subsidiary of FMR LLC. VIP refers to Variable Insurance Products.
Annuities are long-term investments. Taxable amounts withdrawn from variable insurance contracts prior to age 59½ may be subject to an additional 10% IRS penalty tax as well as income tax. The fund is available only through the purchase of a variable annuity or variable life insurance contract of a participating insurance company.
Diversification does not ensure a profit or guarantee against loss.
Fidelity, Fidelity Investments, and the Fidelity Investments & Pyramid Design logo are registered service marks of FMR LLC.
The third party marks appearing herein are the property of their respective owners.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc.,
500 Salem Street, Smithfield, RI 02917
Important information about Ohio National
In all states except New York - Variable Annuity Issuer:
The Ohio National Life Insurance Company
One Financial Way
Cincinnati, Ohio 45242
Telephone: 513.794.6100 Variable Annuity Distributor:
Ohio National Equities, Inc.
One Financial Way
Cincinnati, OH 45242
In New York - Variable Product Issuer:
National Security Life and Annuity Company
100 Court Street
Binghamton, NY 13901
www.nslac.com Variable Product Distributor:
Ohio National Equities, Inc.
One Financial Way
Cincinnati, OH 45242
NOT A DEPOSIT - NOT FDIC INSURED - NOT GUARANTEED BY ANY BANK
NOT INSURED BY ANY GOVERNMENT AGENCY- MAY LOSE VALUE
Variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Upon retirement, variable annuities may pay out an income stream of a series of payments or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining Contract Value.
Variable annuities are sold by prospectuses, which contain more complete information including fees, surrender charges, and other costs that may apply. As with any investment, investing in variable portfolios involves risk, including possible loss of principal. Past performance is not a guarantee of future results.
Contact your financial adviser or visit www.ohionational.com/fundinfo to obtain current prospectuses. In New York, visit www.nslac.com. Please read the product and fund prospectuses carefully before you invest or send money. Investors should consider the investment objectives, strategies, risk factors, charges and expenses of the underlying variable portfolios carefully before investing. The fund prospectus contains this and other information about the underlying variable portfolios.
Early withdrawals or surrenders may be subject to surrender charges. Withdrawals are also subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. For tax purposes only, withdrawals will come first from any gain in the contract. Federal and state tax laws in this area are complex and subject to change. Consult your personal tax adviser on all tax matters. Withdrawals may reduce the death benefit, cash surrender value and any living benefit amount.
Product, product features and rider availability vary by state. Issuer not licensed to conduct business and products not distributed in AK, HI or NY.
Guarantees are based upon the claims-paying ability of The Ohio National Life Insurance Company In New York, guarantees are based upon the claims-paying ability of National Security Life and Annuity Company.. Guarantees do not apply to the investment performance or account value of the underlying variable portfolios. Such benefits and payments are subject to the financial condition of the insurance company.
National SecurityLife and Annuity Company is financially responsible for the products it offers. Ohio National Equities, Inc. has no responsibility for the financial condition or contractual obligations of National Security.
Important information about Jefferson National
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. The contract prospectus and underlying fund prospectuses contain this information. For a prospectus containing this and additional information, please contact your financial professional. Read it carefully before investing. The summary of product features is not intended to be all-inclusive. Restrictions may apply. The contracts have exclusions and limitations, and may not be available in all states or at all times.
Variable annuities are investments subject to market fluctuation and risk, including possible loss of principal. Your units, when you make a withdrawal or surrender, may be worth more or less than your original investment.
Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawal of tax-deferred accumulations are subject to ordinary income tax. Withdrawals made prior to age 59 ½ may incur a 10% IRS tax penalty. Jefferson National does not offer tax advice. Annuities are not deposits or obligations of, or guaranteed by any bank, nor are they FDIC insured.
Monument Advisor is issued by Jefferson National Life Insurance Company (Dallas, TX) and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2, JNL-2300-3.
Important Information about Jefferson National Financial Corp.
Jefferson National is a recognized innovator of tax-advantaged investing solutions for RIAs, fee-based advisors and the clients they serve. Jefferson National offers the industry’s largest selection of close to 400 funds, including more than 75 alternative investment options, and the most subaccounts with the 5- and 4-star Morningstar Rating™ for four consecutive years. The firm is a winner of more than 30 industry awards including the DMA 2010 Financial Services Company of the Year. Jefferson National serves a network of 2,000 RIAs and fee-based advisors nationwide. The company has authority in 49 states and the District of Columbia.
Jefferson National Financial; 10350 Ormsby Park Place, Louisville KY 40223; Telephone: 1-866-WHY-FLAT (1-866-949-3528); www.jeffnat.com.
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