Download Investment Strategy Defined Outcome Investing

JNF EXCEED DEFINED SHIELD INDEX PORTFOLIO
Investment Strategy
FUND OBJECTIVE
The Fund seeks to track, before fees
and expenses, the performance of the
Nasdaq Exceed Defined Protection
Index (Ticker: EXPROT).
EXPROT is a large cap based index
offering controlled equity exposure.
- Net Expense Ratio 1.29%
The JNF Exceed Defined Shield Index Portfolio tracks the EXPROT index, a
large-cap index offering defined, limited downside with a maximum gain
component. EXPROT tracks a basket of four rolling “defined outcome”
investments, each of which uses put and call options to seek exposure
to the S&P 500 Index with the following characteristics:
- Seeks to limit losses of an investment to approximately the first 12.5% of
S&P 500 Index losses on an annualized basis and no losses thereafter.
- Inception Date February 22, 2016
- Seeks annual upside participation in the S&P 500 Index to a maximum gain of
15%, even if annual S&P 500 Index performance surpasses that percentage.
MANAGEMENT
The Fund utilizes exchange based options and short term Investment Grade
credit in achieving its objectives.
Advisor
Exceed Advisory
Manager
Joe Halpern
20 years of experience managing,
structuring, pricing, and trading
structured notes, exotic derivatives,
and listed options.
EXPROT Index Returns*
Cumulative Performance — Sept 15, 2014 through Dec 31, 2015
EXPROT Index Returns* Cumulative Performance
SPX
EXPROT
Sept 15, 2014 through Dec 31, 2015
INDEX FACTS
)10.00%
Ticker
EXPROT
Inception
September 15, 2014
Calculation
IDC
Dissemination
Nasdaq
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%
-4.00%
AVAILABILITY
The JNF Exceed Defined Shield Index
Portfolio is offered as an underlying
investment option within Monument
Advisor, a tax-deferred Investment-Only
Variable Annuity from Jefferson National.
For more information on the Exceed
Defined Shield Index Portfolio, contact
1-866-667-0564, Option 1.
FOR FINANCIAL PROFESSIONAL USE ONLY
-6.00%
-8.00%
Exceed Defined Shield Index Portfolio seeks to track the EXPROT Index. Past performance does not
*guarantee
future results.
Defined Outcome Investing
Defined outcome investing refers to options based strategies that allow
investors to shape a risk/reward exposure to their personal, defined objectives.
In these strategies, market participation levels are preset. Therefore, the
targeted downside participation is known in advance, as is the upside.
(See Illustration Graph)
JNF EXCEED DEFINED SHIELD INDEX PORTFOLIO
Price
Adjusting potential outcomes to predetermined limits
may better meet the utility and psychological needs of
many investors than a direct equity
investment would:
- Better understood downside/upside potential and
expected returns
Profit/Loss
- Mitigation or even elimination of aversions —
particularly loss, risk and ambiguity as well
S&P 500
Defined Outcome Investment
Disclosures:
The S&P 500 ® Total Return Index (registered trademark of The McGraw Hill Companies, Inc.) is an unmanaged index of 500 common stocks primarily traded on
the New York Stock Exchange, weighted by market capitalization. Index performance includes the reinvestment of dividends and capital gains. The Nasdaq Exceed
Structured Shield Index (EXPROT) is designed to provide investment returns that are correlated with, but less volatile than, the S&P 500 Index. One cannot invest
directly in an index. Standard Deviation is the standard deviation of returns measures the average a return series deviates from its mean. It is often used as a measure
of risk. When a fund has a high standard deviation, the predicted range of performance implies greater volatility. Volatility is a statistical measure of risk, expressed
as the standard deviation of returns from the same security. Commonly, the higher the volatility, the riskier the security.
Index Performance:
Indexes are not securities and therefore investing directly in an index is not possible. Past performance of an index is not a guarantee of future results. There
are significant differences between the performance of an index and the performance of actual investment portfolios, even when those portfolios intend to mirror
the indexes. For example, actual portfolios will incur commissions and other transaction costs that do not apply to index performance. Advisory clients will be
subject to management fees, which will lower performance. Actual portfolios may have other investments, such as cash or securities specific to client objectives,
that will differ from the index components. Timing of transactions, and resulting executions, in actual portfolios may differ from assumptions about timing used in
the index calculation.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information about the Fund is
in the prospectus, a copy of which may be obtained by calling toll-free 1-844-800-5092. Please read the prospectus carefully before you invest.
An investment in an Exceed VIT fund is subject to risk, including the possible loss of principal. The Fund may enter into financial instruments or transactions with
counterparty risk. A counterparty may become bankrupt or otherwise fail to perform its obligations due to financial difficulties, jeopardizing the value of the Fund’s
investment. Derivative instruments, including options, may entail investment exposures that are greater than their cost would suggest, meaning that a small investment
in a derivative could risk a large potential impact on the performance of the Fund. Gains or losses from positions in hedging instruments, such as options, may be much
greater than the instrument’s original cost. If a security or derivative is linked to the performance of an index, it may be subject to the risks associated with changes in
that index. The Fund may not be able to dispose of restricted, thinly traded and/or illiquid securities promptly or at reasonable prices. This may result in a loss to the
Fund. Performance of a non-diversified fund, which invests in fewer securities at any given time than a diversified fund may have a greater negative effect, be more
volatile, than a similar decline or default by a single security in a diversified portfolio.
Options risk exists because the price of an option, which is a function of interest rates, volatility, dividends, the exercise price, stock price and other market factors, may
change rapidly over time. The Fund could experience a loss if securities underlying the options do not perform as anticipated. There may be an imperfect correlation
between the prices of options and movements in the price of the securities, stock indexes or exchange traded funds hedged or used for cover which may cause a given
hedge not to achieve its objective. Passive management risk exists as the Fund is not “actively” managed. Therefore, the Fund would not necessarily sell a security if
the security’s issuer was in financial trouble or defaulted, or whose credit rating was downgraded, unless that security is removed from the relevant index. The Fund is
newly created and does not have a full calendar year performance record. There can be no guarantee that the investment objective will be met.
Put options do not protect against declines between 0% and 12.5% and investors will bear all such losses. Further, while the index seeks to limit losses
to 12.5% on an annualized basis, there is no guarantee that it will do so. A put is an option contract giving the owner the right, but not the obligation, to sell a
specified amount of an underlying asset or index at a set price within a specific time. A call is an option contract giving the owner the right, but not the obligation, to
buy a specified amount of an underlying security or index at a specified price within a specified time.
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. For a
prospectus and underlying fund prospectuses 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.
JNF EXCEED DEFINED SHIELD INDEX PORTFOLIO
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. Withdrawals of tax-deferred accumulations are subject to
ordinary income tax. Withdrawals made prior to age 59½ 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.
Variable Annuities are issued by Jefferson National Life Insurance Company, (Dallas, TX), or Jefferson National Life Insurance Company of New York (New York, NY)
and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2, JNL-2300-3, JNL-2300-1-NY. JNL201604-C024
Jefferson National Life | 10350 Ormsby Park Place | Louisville, Kentucky 40223 | 866.667.0564 | www.jeffnat.com