Goldman Sachs New Horizons Index
An opportunity for increased returns and diversification
Nationwide has licensed the Goldman Sachs New Horizons Index (the “Index”) for use in the Nationwide New Heights® Indexed Universal Life Accumulator 2020 (New Heights IUL)1. Nationwide has combined industry-leading best practices and a commitment to putting people first with an Index built upon academic principles. The result is a solution that uses forward-looking indicators and a unique group of assets focused on resiliency throughout evolving markets.
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An opportunity for increased returns and diversification
The Goldman Sachs New Horizons Index introduces the next frontier in terms of asset allocation—a Global Core Strategy and an Alternative Strategy—designed to potentially increase returns while improving diversification. The Index is guided by three key features:
Broad Diversification
The Global Core Strategy includes exposure to global equities, fixed income, commodities, credit and real estate for additional diversification and takes advantage of dynamic optimization.
Forward Looking
In addition to relying upon historical returns (“momentum”), the Index also incorporates forward looking indicators from institutional markets. It then uses this information to identify and systematically allocate to assets that are expected to perform well.
Alternative Allocations
The Index allocates to two alternative sub-strategies to diversify the exposure and potentially improve returns even during market downturns.
Access sophisticated, institutional-quality strategies
The broadly diversified Goldman Sachs New Horizons Index provides opportunities for growth through a Global Core Strategy and an Alternative Strategy. The Index features five asset classes and two alternatives that provide the flexibility to adapt to a variety of market environments and help contribute to the Index’s returns.
The Global Core Strategy
The Global Core Strategy is composed of 22 assets with exposure to five broadly diversified asset classes. These include equities across the US, Europe, Japan and Australia; bonds or other fixed-income investments across the US, Germany, Japan and Australia; commodities including gold, crude oil, copper and soybeans; credit that tracks investment grade and high yield corporate bonds in the US and Europe; and real estate in the US. The Strategy optimizes and allocates on a daily basis, aiming to smooth volatility and create more consistent returns.
The Alternative Strategy
Traditionally available for ultra-high net worth and institutional investors, the Alternative Strategy is composed of the GS Equity Intraday Momentum Strategy that monitors the US equity market and may rebalance every 30 minutes based on an intraday trend signal and the GS Commodity Alternative Strategy² that serves as an additional source of potential returns by exploring the potential opportunity that arises from the imbalance in trading by different commodities market participants.
An innovative approach backed by academic research
By allocating to both the Global Core Strategy and the Alternative Strategy, the Goldman Sachs New Horizons Index benefits from both traditional and alternative assets. The Global Core Strategy applies a Dynamic Optimization Process to potentially smooth volatility and create more consistent returns, while the Alternative Strategy provides an additional growth opportunity.
Dynamic Optimization and Allocation Process
The Goldman Sachs New Horizons Index further rebalances daily to meet its 5% volatility control level. This daily re-allocation aims to further reduce risk when markets are volatile.
Dynamic rebalancing to potentially smooth returns
The Goldman Sachs New Horizons Index would have provided steady growth through a variety of market environments due to its Dynamic Optimization Process of the Global Core Strategy and the addition of Alternatives. It is important to note that the graph below shows the hypothetical performance of the Index using back tested data. Back-tested data is not indicative of future results.
Hypothetical Historical Performance of
Goldman Sachs New Horizons Index
Source: Goldman Sachs from 1/4/2002 to 12/31/2022. The Goldman Sachs New Horizons Index was launched on 3/2/22. The back-tested, hypothetical, historical data before the launch date has inherent limitations and assumptions, and is provided for illustrative purposes only. It should not be read as a guarantee or an indication of the future performance of the Goldman Sachs New Horizons Index. Results during these periods may have been different (perhaps considerably) had the strategy actually been in existence. Unlike actual performance records, hypothetical or simulated performances, returns or scenarios may not necessarily reflect certain market factors such as liquidity constraints. Past performance is not indicative of nor does it guarantee future performance. The Goldman Sachs New Horizons Index performance information reflects a 0.50% per annum deduction rate along with servicing and rebalancing costs at rates that vary based on the underlying assets at the Index level and also within certain underlying assets. The deduction rate and costs will reduce the level of the Index. Future costs may vary and be higher or lower than historical costs.
Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value
1 Goldman Sachs New Horizons Index (Index) is one of the index options available with the New Heights IUL, a life insurance product from Nationwide.
2 Net accumulated premium (total premium paid minus any policy loans, unpaid loan interest, and partial withdrawals) must equal or exceed the required premium amount at the start of policy year 16. The required premium is set at issue but may change if policy changes are made.
Guarantees are subject to the claims-paying ability of the issuing insurer. Be sure to choose a product that meets long-term life insurance needs, especially if personal situations change — for example, marriage, birth of a child or job promotion. Weigh the costs of the policy, and understand that life insurance has fees and charges that vary with sex, health, age and tobacco use.
Indexed universal life insurance policies are not stock market investments, do not directly participate in any stock or equity investments and do not receive dividends or capital gains participation. Past index performance is no indication of future crediting rates. Also, be aware that interest crediting fluctuations can lead to the need for additional premiums to be paid into your client’s policy.
The J.P. Morgan Mozaic II℠ Index (“Index”) has been licensed to Nationwide Life and Annuity Insurance Company (the “Licensee”) for the Licensee’s benefit. Neither the Licensee nor Nationwide New Heights® Indexed Universal Life Accumulator 2020 (the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by J.P. Morgan Securities LLC (“JPMS”) or any of its affiliates (together and individually, “JPMorgan”). JPMorgan makes no representation and gives no warranty, express or implied, to contract owners taking exposure to the Product. Such persons should seek appropriate professional advice before making any investment. The Index has been designed and is compiled, calculated, maintained and sponsored by JPMS without regard to the Licensee, the Product or any contract owner. JPMorgan is under no obligation to continue compiling, calculating, maintaining or sponsoring the Index. JPMorgan may independently issue or sponsor other indices or products that are similar to and may compete with the Index and the Product. JPMorgan may also transact in assets referenced in the Index (or in financial instruments such as derivatives that reference those assets). These activities could have a positive or negative effect on the value of the Index and the Product.
The NYSE®v Zebra Edge® Index has been licensed to Nationwide Life and Annuity Insurance Company (“Nationwide”). Neither Nationwide nor the Nationwide New Heights® Indexed Universal Life Accumulator 2020 (the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by Zebra, NYSE or UBS and in no event shall Zebra, NYSE or UBS have any liability with respect to the Product or the Index. Zebra, NYSE and UBS make no representations, give no express or implied warranties and have no obligations with regard to the Index, the Product, the client or other third party. The marks NYSE®, and NYSE Arca® are registered trademarks of NYSE Group, Inc., Intercontinental Exchange, Inc. or their affiliates. The marks Zebra® and Zebra Edge® are trademarks of Zebra, may not be used without prior authorization from Zebra, and are being utilized by NYSE under license and agreement.
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Policy Form #: ICC 18-NWLA-558
Nationwide New Heights IUL Accumulator 2021
FLW-0160AO.1 (10/20)