Nationwide and Annexus have added what they said is the first mutual fund-linked strategy to a fixed indexed annuity.
The strategy will be offered through Nationwide’s New Heights Select product line. It is linked to American Funds Growth Fund of America, an actively managed mutual fund managed by Capital Group.
According to Nationwide, New Heights Select is the first FIA to offer a strategy tied to an actively managed mutual fund. The company cited research from Wink in support of the claim.
Policyholders do not invest directly in the fund and do not own fund shares. The fund’s performance is used as part of the annuity’s crediting strategy.
The launch follows a similar move in the registered index-linked annuity market. In 2025, Nationwide and Annexus introduced what they said was the first RILA with strategies linked to an actively managed mutual fund.
Nationwide also added two new crediting options to New Heights Select: the S&P 500 Distance Stabilizer Index and the GS American Funds GFA 15% Index.
The company said the Goldman Sachs-developed index is based on the performance of Growth Fund of America and includes a volatility-control feature.
“This expansion brings financial professionals and their clients new opportunities for growth potential within a risk-managed solution that offers 100% principal protection from market losses,” said Stacy LaiFook, vice president of Nationwide Annuity Business Development.
Other carriers have also expanded beyond traditional index-based crediting strategies. In late 2025, Lincoln Financial introduced a fixed indexed annuity option tied to a Capital Group ETF.
In addition, Nationwide increased the compound annual roll-up rate on its High Point 365 Select Lifetime Income Rider with Bonus from 9.5% to 10% for certain New Heights Select contracts.
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