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.

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 opportunities that might arise 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. While this can lessen the impact of market downturns, it may also limit upside potential.

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

Hypothetical assumptions: $100 invested in Goldman Sachs New Horizons Index from 1/4/02 to 12/31/23. The Goldman Sachs New Horizons Index was established on 3/2/2022. Performance shown in years prior to this Index being created is back-tested by applying the Goldman Sachs New Horizons Index strategy to historical financial data when all components it uses were available. Certain components of the index were unavailable before March 2007. Back-tested performance is hypothetical and has been provided for illustrative purposes only and reflects a 0.50% per year index fee along with servicing and rebalancing costs. This Index was designed with the benefit of hindsight and knowledge of factors that may have positively affected performance. Past performance is not indicative of, nor does it guarantee, future performance. The Goldman Sachs New Horizons Index could under-perform relative to other strategies. The hypothetical performance is calculated on an excess return basis.

Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.

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.

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.

Life insurance is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

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Policy Form #: ICC 18-NWLA-558
Nationwide New Heights IUL Accumulator 2020

FLW-0175AO.1 (03/24)