The expected returns on safe investments are at record lows. High-quality fixed income may no longer be the solution for mitigating market risk. This heightens the classic challenge: should clients accept lower returns—or take on additional risk? On March 24th, financial advisors are invited to join Nasdaq for a one-hour web seminar on Defined Outcome Investments. Joined by Exceed Investments and Jefferson National, Nasdaq will explore the topic of managing clients’ expectations in this volatile market environment.
Jefferson National, a recognized innovator of leading tax-advantaged investing solutions for Registered Investment Advisors (RIAs), fee-based advisors and the clients they serve, has launched the new JNF Exceed Defined Shield Index Portfolio managed by Exceed Investments. Exceed is a New York-based boutique asset management firm that is pioneering "defined outcome" investing solutions. This liquid, transparent 40-act fund, which is designed to provide controlled market exposure with a preset, defined level of downside protection, is now available for the first time within a tax-deferred wrapper.
"Today yields on fixed income are at record lows, at the same time that nearly 90% of advisors expect market volatility to increase, ranking China's economy, the oil market, and presidential elections as the most influential factors, according to our most recent survey," says Laurence P. Greenberg, President of Jefferson National. "To help clients create more durable portfolios and achieve a more defined outcome in the face of these challenges, our new fund is designed to provide a pre-set level of protection with a maximum gain component, wrapped with the low-cost tax deferral of Monument Advisor, to optimize performance in a market where every basis point counts." Greenberg concludes, "Both Jefferson National and Exceed Investments share a mission of providing simplicity, transparency and choice with solutions designed to meet the most urgent needs of RIAs and fee-based advisors."
The retail version of the fund is available on a number of trading platforms including Charles Schwab, Fidelity, TD Ameritrade and Pershing. The JNF Exceed Defined Shield Index Portfolio is exclusively offered through Jefferson National's Monument Advisor, the industry's first and only flat-fee Investment-Only Variable Annuity (IOVA)[i] with lower cost, more transparency, greater liquidity, and seven times more underlying funds than the typical VA. The fund seeks to track the performance of the Nasdaq Exceed Defined Protection Index (EXPROT), with exposure to the S&P 500, while providing the following:
Seeks to target losses to no more than 12.5% on an annualized basis
Annual upside participation at a maximum gain of 15%
"Defined outcome investing is a breed of investment that is typically the domain of High Net Worth clients and institutional investors—highly effective, but often expensive, opaque and illiquid," notes Exceed Investments CEO Joseph Halpern. "Exceed has redefined this market by providing fully liquid, readily accessible and transparent defined outcome solutions that can help clients stay invested in volatile times, knowing a solid floor is there to protect their assets and help them achieve long-term goals. Combining this with Jefferson National's unique approach to tax-advantaged investing can produce measurable benefits for RIAs, fee-based advisors and the clients they serve."
This web seminar is approved for 1 hour of CFA CE credit and 1 hour of CIMA/CIPC/CPWA CE credit.
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