First Flat-Fee Variable Annuity for RIAs and Fee-Based Advisors Continues Expanding Alternatives Lineup with Daily Liquid Fully-Transparent Fund of Hedge Fund Strategies

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Jefferson National, a recognized innovator of tax-deferred investing solutions for Registered Investment Advisors (RIAs) and fee-based advisors, now has the first and only variable annuity to offer the Hatteras Alpha Hedged Strategies Variable Fund from Hatteras Funds, a boutique alternative investment specialist founded to help financial advisors allocate to alternatives. The Hatteras Alpha Hedged Strategies Variable Fund provides access to multiple hedge fund managers and multiple hedge fund strategies in a single investment vehicle. The Fund’s outperformance vs. the HFRI Fund of Funds Composite Index is a result of the combination of actively allocating to hedge fund strategies and selecting strong hedge fund managers. The addition of this daily liquid, fully transparent fund of hedge fund strategies marks another industry first forJefferson National’s Monument Advisor, the first flat-fee variable annuity¹ with over 380 investment options, designed to serve as a tax-deferred investment solution.

“As the Dow and S&P recently hit new lows for the year, smoothing out the rough ride for clients is a top priority for advisors—and Jefferson National continues to give them more of the tax-deferred alternatives they demand with this latest addition of the Hatteras Alpha Hedged Strategies Variable Fund,” said Laurence Greenberg, President, Jefferson National. “Hatteras gives RIAs and fee-based advisors access to the same alternative strategies, sophisticated investment approach and superior portfolio management talent used by hedge funds and the largest institutional investors, while Jefferson National’s flat-fee VA potentially improves performance by deferring taxes on the short-term capital gains that these strategies can generate.”

Hatteras Funds aims for the best of both worlds—giving individual investors exposure to underlying hedge fund managers and strategies that they may not be able to access, while providing liquidity, low investment minimums and lower fees.The Hatteras Alpha Hedged Strategies Variable Fund offers exposure to multiple hedge fund managers and multiple hedge fund strategies including Long/Short Equity, Market Neutral, Relative Value – Long/Short Debt, Event Driven and Managed Futures strategies. The Fund seeks to achieve consistent returns with low correlation to traditional financial market indices while maintaining a high correlation to the Hedge Fund Research, Inc. (“HFRI”) Fund of Funds Composite Index.

“The Hatteras Alpha Hedged Strategies Variable Fund can help advisors to dampen volatility and lower downside risk—and in the long term we believe this can lead to a smoother return stream to help clients outperform the market and generate wealth,” said Robert Worthington, President of Hatteras Funds. “By offering our daily liquid, fully transparent fund of hedge fund strategies through Jefferson National’s flat-fee VA, advisors can defer taxes to help clients benefit from our strategies to the fullest extent.”

Cogent Research notes that 70% of RIAs surveyed cited the market’s ongoing volatility as a top concern for their clients, while 45% of RIAs said managing risk is now their top concern in terms of portfolio construction². A recent report from Cerulli notes that nearly 90% of advisors cite interest in alternatives, primarily to optimize the risk-adjusted performance for their clients³. Likewise, reports from both Cerulli and research firm Practical Perspectives cite challenging capital markets, enhanced diversification, lower portfolio volatility and risk management as the main factors driving increased use of alternatives and nontraditional investments⁴.

In a survey conducted by Jefferson National, 68% of advisors surveyed have increased their use of alternative investments, 67% of advisors see their allocation to alternative investments continuing to increase over the next 5 years, and 61% also believe that alternatives will become even more important than traditional investments in the future⁵. And research has shown that a low-cost tax-deferred vehicle can improve the performance potential of these tax-inefficient management strategies and asset classes by as much as 100 bps—without increasing risk⁶.

To meet this growing demand, Jefferson National continues to expand its lineup of tax-deferred alternative strategy investment options. This latest addition of the Hatteras Alpha Hedged Strategies Variable Fund complements a comprehensive lineup of more than 380 tax-deferred funds across a broad range of 59 Morningstar categories, featuring more than 65 Alternative Investment funds, 60 Fixed Income funds, over 60 Asset Allocation funds, more than 35 International Equity funds and over 190 US Equity funds. Jefferson National’s flat fee VA provides access to more than 46 different money managers, and has offered the variable annuity industry’s most subaccounts with the 5 star and 4 star Morningstar Rating™ for three consecutive years⁷.

About Jefferson National Financial Corp.

Jefferson National Financial Corp. is a leading innovator offering products and services for RIAs and fee-based advisors and the clients they serve, utilizing a flexible technology platform, highly efficient operations, and cost-effective servicing capabilities. Jefferson National is winner of more than 30 industry awards including the DMA 2010 Financial Services Company of the Year.⁸ Serving a network of more than 1,700 RIAs and fee-based advisors nationwide, the Company is based in Louisville, KY and domiciled in Dallas, Texas with authority in 49 states and the District of Columbia. To reach our advisor support desk, please call 1-866-WHY-FLAT (1-866-949-3528). To learn more, please visit www.jeffnat.com.

About Hatteras Funds

Hatteras Funds provides unique alternative investment solutions for financial advisors and their clients. We believe that all investors should have access to the same sophisticated investment approach and superior portfolio management talent as the largest institutions. A boutique alternative investment specialist founded in 2003, Hatteras Funds offers a suite of innovative products designed to help financial advisors allocate to alternative investments. The Raleigh, N.C.-based firm manages over $2 billion in alternative investment strategies for a broad range of institutions, endowments, pensions and high net worth individuals. For more information, please visit hatterasfunds.com.

Important Disclosure:

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.

¹ Jefferson 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.
² “The RIA Market Research Study,” conducted for Invesco by Cogent Research, September 2011.
³ Cerulli Quantitative Update: ETFs and Retail Alternative Products and Strategies, June 2012
⁴Financial Advisors and Alternative Investments, June 2012
⁵ “RIAs and Fee-Based Advisors Alternative Investments and Tactical Management Survey” published by Jefferson National, September 2011.
⁶The Tax-Efficient Frontier: Improving the Efficient Frontier with the Power of Tax Deferral, David Lau, Jefferson National, 2010.
⁷ Morningstar data as of 08/15/11
⁸ Jefferson National was reviewed by the Direct Marketing Association, including a panel of independent judges and industry peers, and won for re-engineering the traditional commission-based distribution model and replacing it with an unprecedented web-based direct marketing approach.

Jefferson National
Deborah Newman, 502-587-3858
Director Corporate Communications
dnewman@jeffnat.com

Source: Jefferson National