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Nationwide Financial Adds Three Actively Managed Subaccounts to America’s marketFLEX® Variable Annuity Series

May 5, 2014

New NVIT Flexible Strategy FundsSM provide dynamic, alternative investment opportunities for clients

COLUMBUS, Ohio--(BUSINESS WIRE)-- Advisors looking for investment diversification options for their clients’ retirement income needs can now turn to three actively managed subaccounts offered within the America’s marketFLEX® Variable Annuity Series from Nationwide Financial.

The new NVIT Flexible Strategy FundsSM are designed to streamline the investment process for advisors and provide clients with wealth accumulation potential in a variable annuity package. The three subaccounts focus on portfolio outcomes based on income, growth and low-correlation strategies, and each provides managers with the freedom to allocate assets as needed to respond to market conditions.

“Recent market volatility has made even sophisticated investors waver in their commitment to long-term strategies,” said Eric Henderson, senior vice president of Life Insurance and Annuities for Nationwide Financial. “The new NVIT Flexible Strategy Funds allow advisors to address those concerns and offer market-responsive strategies without committing to the day-to-day heavy lifting.”

The three new subaccounts include:

  • Lazard NVIT Flexible Opportunistic Strategies Fund – a forward-looking, actively managed portfolio completion strategy that invests in nontraditional assets to provide long-term capital appreciation and returns;
  • NVIT Flexible Moderate Growth Fund– a total portfolio solution for long-term growth through a broad and flexible allocation in stocks, bonds and other asset classes;
  • NVIT Flexible Fixed Income Fund – a total portfolio solution, built primarily to provide income but gives the manager the ability to actively pursue income by dynamically adjusting the asset allocation.

    Nationwide Fund Advisors®, a wholly owned subsidiary of Nationwide Mutual Insurance Company, provides daily oversight and selects the subadvisors to manage the various strategies of the NVIT Flexible Fixed Income and Moderate Growth Funds. Lazard Asset Management LLC manages the Lazard NVIT Flexible Opportunistic Strategies Fund.

    “We were able to turn to our in-house mutual funds business and partner with Lazard to respond to advisor demand for actively managed fund options,” said Henderson. “The new funds improve upon what is already a great product for investors seeking alternative investment options with the benefits of a variable annuity.”

    The new investments are immediately available to all current and new America’s marketFLEX Variable Annuity policyholders.

    Call 1-800-321-6064 or visit www.nationwidefinancial.com/managerisk for more information about America’s marketFLEX or the new NVIT Flexible Strategy Funds.

    About Nationwide

    Nationwide Mutual Insurance Company, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; specialty health; pet, motorcycle, boat and farm insurance. For more information, visit www.nationwide.com.

    Asset allocation is the process of spreading assets across several different investment styles and asset classes. The purpose is to potentially reduce long-term risk and capture potential profits across various asset classes.

    There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved or that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.

    NVIT Flexible Moderate Growth Fund

    The Fund is designed to provide diversification across traditional asset classes in combination with nontraditional asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the NVIT Flexible Moderate Growth Fund, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.

    The Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, the Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) equity securities, including those of smaller companies; (ii) fixed-income securities, including high-yield bonds; (iii) international securities; (iv) derivatives, including commodities; (v) real estate investment trusts (REITs); and (vi) Treasury Inflation-Protected Securities (TIPS).

    NVIT Flexible Fixed Income Fund

    The Fund is designed to provide diversification across traditional fixed-income asset classes in combination with nontraditional asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the NVIT Flexible Fixed Income Fund, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.

    The Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, the Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) fixed-income securities, including high-yield bonds; (ii) international securities; (iii) derivatives, including commodities; and (iv) Treasury Inflation-Protected Securities (TIPS).

    Lazard NVIT Flexible Opportunistic Strategies Fund

    The Fund is designed to provide diversification using a flexible asset allocation strategy by investing in underlying funds, as well as investing directly in equity and fixed-income securities. Therefore, in addition to the expenses of the Lazard NVIT Flexible Opportunistic Strategies Fund, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.

    The Fund is subject to the risks of its underlying funds, which may include exchange-traded funds (ETFs) and closed-end funds. The shares of closed-end funds and ETFs may trade at prices at, below or above their most recent net asset value. There is no guarantee that a fund’s discount will ever be narrowed or eliminated. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from the performance of the index.

    The Fund also may invest in exchange-traded notes (ETNs), which may not trade in the secondary market, but typically are redeemable by the issuer and are subject to the creditworthiness of the issuer. ETNs are debt securities and are not regulated under the 1940 Act.

    The Fund is subject to the risks of investing in equity securities, including investing in smaller companies. The Fund is subject to the risks of investing in fixed-income securities, including high-yield bonds. The Fund also is subject to the risks of investing in foreign securities. Funds that concentrate on specific sectors may be subject to greater volatility than that of other mutual funds. The Fund may invest in more-aggressive investments such as derivatives, including commodities (which create investment leverage and are highly volatile) and real estate investment trusts (REITs) (which are subject to abrupt or erratic price movements and generally lack liquidity). The Fund may utilize short positions (which create investment leverage and can exaggerate a Fund’s losses).

    Variable annuities are issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation.

    Nationwide, Nationwide Financial, the Nationwide framemark, America's marketFLEX, NVIT Flexible Strategy Funds and Nationwide Funds are service marks of Nationwide Mutual Insurance Company.

    Nationwide Funds Group (NFG) comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to Nationwide Funds.

    Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, King of Prussia, Pa.

    NFD is not an affiliate of any subadviser discussed in this material.

    NFD and Nationwide Investments Services Corporation are separate but affiliated broker dealers.

    The use of asset allocation does not guarantee returns or insulate you from potential losses.

    Variable products are sold by prospectus. Both the product prospectus and underlying fund prospectuses can be obtained by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, OH 43218-2021. Before investing, make sure your clients carefully consider the fund’s investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectuses contain this and other important information. Your clients should read the prospectuses carefully before investing.

    All guarantees and benefits are subject to the claims-paying ability of Nationwide Life Insurance Company. Riders are available at an additional cost.



    Nationwide

    Ryan Ankrom, 614-249-5145

    ankror1@nationwide.com

    Source: Nationwide Financial


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