NATIONWIDE PEAK® 10 FIXED INDEXED ANNUITY
J.P. Morgan CycleSM Index
The J.P. Morgan Cycle℠ Index is designed to allocate to the style of stocks that have historically performed well during each phase of the business cycle.
Objective
Allocate to stocks and bonds based on the business cycle
Approach
“Smart beta” and cycle rotation
Holdings
Domestic equities and bonds
Features
The equity allocation rotates between different “smart beta” factors based on the business cycle.
How this investing style works
Equity style rotation tailored to the business cycle
The J.P. Morgan CycleSM Index is made up of five portfolio components. The index regularly rebalances among them based on the specific phase of the business cycle in order to achieve the highest equity weighting and maintain a 5% volatility target.
Step 1
Identify the current phase of the business cycle and choose the corresponding equity allocation.
Step 2
Rebalance between equities and bonds to help maintain a 5% level of volatility for the portfolio over time.
Step 3
Rebalance again midmonth whenever economic or market conditions change.
Available Investments
The J.P. Morgan Cycle℠ Index is made up of five portfolio components, review all the portfolio components by clicking on the button.
How allocations change with conditions
The J.P. Morgan CycleSM Index is designed to have higher equity allocations when the market is stable and higher bond allocations when the market becomes more volatile.
During an economic recovery with a volatile market, the index was invested in value stocks with a large percentage in bonds.
During an economic expansion with a stable market, the index was invested pretty evenly between momentum stocks and bonds.
During an economic contraction with a volatile market, the index was invested in quality stocks with a large percentage in bonds.
During an economic slowdown with a volatile market, the index was invested in low-volatility stocks with a large percentage in bonds.
Impact of Lower Volatility
Indexed annuities typically credit earnings in one-year or two-year increments. In times of high volatility, providing any credit can be a challenge for some traditional market indexes. The J.P. Morgan Cycle Index is designed to keep volatility low and, over time, its more consistent returns may offer greater growth potential, regardless of the cap or participation rate selected.
One-year Increments – Capped returns
Comparing returns inside and outside the Nationwide Peak 10 fixed indexed annuity shows that the J.P. Morgan Cycle℠ Index has more consistent returns and fewer instances of zero returns
Two-year increments – participation rate with spreads
In a volatile market environment, using two-year terms with spreads may provide more positive results.
Already an Agent?
Receive all your resources in a simple click including agent-facing tools and information to provide ease of use for agents when marketing Peak 10.
