CHARLOTTE - June 13, 2012
Wells Fargo Advisors announced the launch of the advisory variable annuity (AVA) into the company’s Asset Advisor Program, an investment advisory fee-based program. This will allow advisors to efficiently deliver the benefits and guarantees that annuity products have to offer as part of the overall portfolio management of the account.
The AVA offers a flexible and competitively priced guaranteed income option (available at an additional charge) for clients planning retirement. The product will provide greater fee and pricing transparency and will be reflected in the account performance reports.
“We are pleased to be at the forefront in offering an advisory share variable annuity,” said Ian MacEachern, Managing Director of the Advisory Products Group at Wells Fargo Advisors. He added, “The launch of the advisory variable annuity will provide our clients with a new alternative for investing as Americans look to replace income in retirement years.”
This new Advisory Variable Annuity (AVA) offering provides the following benefits:
- A range of income and death benefit guarantees. (Based on the claims-paying ability of the issuing insurance company.)
- No Contingent Deferred Sales Charge (CDSC) on the annuity contract. Instead, an advisory fee is negotiated with the client for the Asset Advisor account.
- Tax-deferred investing
- Product offerings from four insurance carriers
- Integration of annuities into performance reporting
“At a time when clients are seeking out new retirement income solutions, we are excited to offer an AVA that will provide flexibility, along with guaranteed income protection options within their advisory account,” said Bernie Gacona, director of Annuities at Wells Fargo. “Furthermore, the integration of annuities into performance reporting will provide clients a more accurate picture of their overall investment portfolio.”
The Wells Fargo Advisory Variable Annuity will be available from the following Insurance Carriers:
- Allianz Life*
- Lincoln Financial Group
- Pacific Life
*Allianz Life to launch in 3Q2012
Variable annuities are sold by prospectus. Please consider the investment objectives, risks, charges and expenses carefully before investing. A prospectus, which contains this and other information, will be available at the seminar or can be obtained by calling your financial advisor. Read it carefully before you invest.
Variable annuities are long-term investments suitable for retirement funding and subject to market fluctuations and investment risk.
Withdrawals of earnings are subject to ordinary income tax. In addition, a federal 10% penalty may apply to withdrawals taken prior to age 59½ and surrender charges generally apply. Optional features are available at an additional charge.
Guarantees apply to minimum income from an annuity; they do not guarantee an investment return or the safety of the underlying funds.
Fees for the Asset Advisor program include Advisory services, performance measurement, transaction costs, custody services and trading. Fees are based on the assets in the account and are assessed quarterly. There is a minimum fee of $125 per calendar quarter to maintain this type of account. Advisory accounts are not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services, including fees and expenses. Additional fees may apply in certain circumstances. The minimum account size for this program is $25,000Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and underwritten by unaffiliated insurance companies.
About Wells Fargo Advisors
With $1.2 trillion in client assets as of March 31, 2012, Wells Fargo’s brokerage businesses are comprised of 15,134 full-service financial advisors and 3,352 licensed bankers. This vast network of advisors, one of the nation’s largest, serves clients through offices in all 50 states and the District of Columbia. Wells Fargo Advisors is the trade name used by two separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC (members SIPC). Statistics include other broker-dealers of Wells Fargo & Company. www.wellsfargoadvisors.com
About Wells Fargo (Twitter: @Wells Fargo)
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With more than 270,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.
Wells Fargo Retirement is a top retirement provider to retail and institutional customers across the U.S. Wells Fargo ranks second in annuity distribution, fifth in IRA assets and sixth in retirement recordkeeping. The company also administers custody assets, provides investments and executive benefits to institutional clients and delivers reinsurance services to global insurance companies.
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2012, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 150,000 employees worldwide. More than 78 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.
Life insurance and annuities are issued by Allianz Life Insurance Company of North America, and in New York, by Allianz Life Insurance Company of New York, New York City.
Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $170 billion as of March 31, 2012. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life, disability and dental insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.
Nationwide Mutual Insurance 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 customers a full range of insurance and financial services, including auto insurance, motorcycle, boat, homeowners, pet, life insurance, farm, commercial insurance, annuities, mortgages, mutual funds, pensions, long-term savings plans and specialty health services. For more information, visit www.nationwide.com.
Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit Pacific Life online at www.pacificlife.com/.
Amy Hyland Jones
Sara Thurin Rollin
Lincoln Financial Group