Jefferson National Adds Alternative Investment Offerings

“The two big positives for us is the diversification aspect and the fact that you have some semblance of risk control,” adds David D’Amico, president of Braver Wealth Management in Needham, Mass. “The big negative was the tax inefficiency. If you take that away you have the added performance, which compounds annually. It also becomes more of an absolute return strategy, where you avoid some of the big loss years. Those two together can really add up to something.”

The new funds add to a lineup of 380 tax-deferred funds across a range of 59 Morningstar categories. Jefferson National’s Monument Advisor is now used by 1,650 RIAs and fee-based advisors nationwide.

Jefferson National is not the only annuity provider to trumpet its alternative investment offerings of late. In early March, Jackson National Life announced it, too, is bringing alternative investments to the masses. The company, based in Lansing, Mich., launched Elite Access, an investment vehicle designed to provide greater portfolio diversification through the use of alternative asset classes. Elite Access combines three core elements—alternative investments, risk management and tactical management—to address market volatility and the potential for higher returns with less risk.

“Coming out of the economic crisis, advisors and clients were rightly asking if there was a better way [to minimize risk and achieve returns],” Clifford Jack, head of retail for Jackson, said at the time. “Pensions and endowments seemed to get it right, so advisors were looking to replicate what they did in order to reduce volatility and increase performance. As a result, they are more likely to consider counter-correlation products that decrease risk; something other than simply traditional stocks and bonds.”

According to the company, Elite Access features “a wide range of investment options and philosophies, all optimized through the benefits of tax deferral.”

Individual investment options fro mJackson National include:

• Alternative investments: Twelve options, including managed futures, commodities, listed private equity, global infrastructure, convertible arbitrage and emerging-market debt that provide enhanced diversification potential;
• Traditional investments: Options from well-known, reputable active managers such as American Funds, Franklin Templeton, JPMorgan and T. Rowe Price that span across investment styles.