COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide Financial Services, Inc. (NYSE:NFS - News), has expanded its line of annuities that provide consumers access to alternative asset classes by adding the low-cost marketFLEX Advisor Annuity designed for fee-based investment professionals, and America’s marketFLEX II, which provides enhanced income and death benefit protection.

“People facing retirement horizons that can last 20 years or more are realizing the importance of not only staying invested, but the need to diversify those investments through alternative asset classes,” said Eric Henderson, senior vice president of the Individual Investments Group at Nationwide Financial. “Our marketFLEX annuities provide diversification through multiple asset allocation techniques that help the average investor manage risk with flexibility and control.”

America’s marketFLEX Advisor is a low-cost variable annuity at 0.45 percent that provides portfolio diversification using alternative asset classes and investment strategies, without surrender charges. It offers a full range of Rydex Global Advisors funds and allows investment professionals to actively manage client accounts to quickly adapt to changing markets.

America’s marketFLEX II is a variable annuity that also uses multiple asset allocation techniques, and now offers an optional guaranteed minimum withdrawal benefit (GMWB) income rider, iFLEX^SM.

“America’s marketFLEX II still allows consumers to diversify their portfolio with traditional and alternative underlying investment options, but now also addresses their desire for guaranteed lifetime or immediate income during times of market volatility,” Henderson said.

Optional benefits available for an additional cost with marketFLEX II include:

• iFLEX^SM, an optional guaranteed minimum withdrawal benefit (GMWB) rider
• More optional enhanced death benefit rider choices
• Optional 4 percent Extra Value rider

America’s marketFLEX II offers investors two different income options, both available for an additional cost of 0.40 percent, through the iFLEX^SM rider:

• The guaranteed lifetime withdrawal option, available after the fifth-year anniversary of the rider and once the contract owner is 59 ½ or older, allows for lifetime withdrawals in the amount of 5 percent of the contract value or lifetime benefit base, whichever is higher.
• The immediate withdrawal benefit, available within the first five years of the rider or if the contract owner is younger than 59 ½, allows for 5 percent withdrawals from the guaranteed value until the benefit base is depleted.

America’s marketFLEX II also includes two enhanced death benefit choices: a return of premium option for an additional 0.20 percent and a one-year step-up option issued through age 75 for an additional 0.30 percent.

Henderson emphasized the additional benefits don’t impact the original intent of marketFLEX: to help investors tackle market risk through portfolio diversification.

“These additional options help address investors’ concerns about income and enhanced protection for beneficiaries without affecting marketFLEX’s ability to help them manage risk through diversification,” Henderson said.

The Dynamic Advantage Program^SM (DAP) rider, an actively managed asset allocation program that provides access to alternative investment strategies, is also available with marketFLEX Advisor and marketFLEX II for an additional 0.35 percent.

The DAP rider offers the following features to long-term investors seeking a more comprehensive approach to managing their variable annuity investments:

• Risk management in strong, weak and flat markets
• Alternative asset classes and strategies typically used by institutional investors
• Risk tolerance questionnaire to help select a model based on investment objective, time horizon and risk tolerance
• Oversight of investment portfolio models by Rydex Advisory Services
• Timely reporting of model changes 48 hours before they are executed

Alternative investment classes are gaining widespread acceptance among investment professionals. According to a survey conducted by Morningstar Inc.¹, 67 percent of advisors said more than 10 percent of their clients are now using alternative investments, and 65 percent of advisors surveyed expect to see more than double-digit growth in alternative assets under management over the next five years.

Henderson said that marketFLEX II will continue to offer more than 50 Rydex Variable Trust Funds, managed by Rydex Global Advisors, as well as multiple asset allocation techniques, including:

Dynamic ��" periodically moves assets between large-cap, mid-cap and small-cap securities

Sector Rotation ��" typically invests 100 percent of assets in equities, with the investment periodically rotated between sectors and subsectors

Long/short Strategies ��" involves strategic rotation among various types of investments, including long positions, short positions or money markets, and are rotated among three strategies depending on market conditions

Long-only Strategies ��" invests in funds that offer a long position only, among with money market funds that can be more stable investments in a stable market

Composite Strategies ��" uses a combination of all available strategies that varies based on market conditions

marketFLEX Advisor and marketFLEX II also provide investment professionals with an array of technology-based support tools to enhance their client service capabilities, including:

• A group trading feature that allows for block fund exchanges of multiple contracts, or exchanging from fund to fund, in one transaction
• Living benefits illustrations that creates an individualized illustration to allow the client to see the product in context
• Quick Step, allowing the investment professional to perform end-result transfers on tactical asset allocation funds without moving the assets from traditional variable annuity funds
• A DAP notification process that informs clients via an online message system within 48 hours of any models changes

“We’re committed to providing investment professionals with simpler solutions, including the use of technology as a business enabler to enhance their client-service capabilities,” Henderson said.

Investors should keep in mind that diversification and asset allocation as part of an overall investment strategy do not guarantee a profit or protect against a loss in a declining market.

About Nationwide Financial^®

Nationwide Financial Services, Inc. (NYSE: NFS - News), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.

It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 104 on the Fortune 500 based on 2006 revenue.² For more information, visit www.nationwide.com.

© 2007, Nationwide Financial Services, Inc. All rights reserved.

¹ Research, November 2006

² Fortune Magazine, April 2007

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Source: Nationwide Financial Services, Inc.

Copyright © 2007 Business Wire. All rights reserved.

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