Nationwide adds actively managed fund strategy to fixed indexed annuity

Nationwide , Annexus and Capital Group are adding a strategy linked to the American Funds Growth Fund of America Class F-3 mutual fund to the Nationwide New Heights Select fixed indexed annuity suite.

Nationwide claims New Heights Select is the first fixed indexed annuity to include a strategy linked to an actively managed mutual fund. Customers selecting the strategy will not invest directly in the fund or own its shares.

The suite is also adding the S&P 500 Distance Stabilizer Index, developed with Société Générale, and the GS American Funds GFA 15% Index, which is based on the Growth Fund of America and uses a risk-adjustment mechanism that caps volatility at 15%.

Nationwide also increased the compound annual roll-up rate on its High Point 365 Select Lifetime Income rider with Bonus from 9.5% to 10% for New Heights Select 8, 9 and 12.

Nationwide and Annexus previously introduced a registered index-linked annuity offering strategies tied to an actively managed fund.