KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Nationwide Funds today announced it has launched a new mutual fund, the Nationwide Inflation-Protected Securities Fund (NIFAX/NIFIX). The fund, which is subadvised by Nationwide Asset Management, was established to provide investors with inflation protection as well as a liquid and low-risk investment option that can offer additional diversification.
“Inflation protected securities play a crucial role in lowering volatility in an investor’s long-term asset allocation strategy,” said Michael Spangler, president of Nationwide Funds Group. “The Nationwide Inflation-Protected Securities Fund provides an additional hedge against future inflation without requiring investors to take on additional credit risk.”
The most common inflation-protected securities are Treasury Inflation Protected Securities (TIPS), U.S. Treasury-issued fixed-income securities that generate income and offer inflation-adjusted interest and principal payments. TIPS follow a designated inflation index such as the Consumer Price Index and apply a fixed coupon rate to their principal, causing the principal value and interest payments to increase as inflation rises.
The Nationwide Inflation-Protected Securities Fund will primarily invest in TIPS because they have a lower risk profile and, when used in a portfolio with other investments, can help diminish overall portfolio volatility. As a result, the new fund will also act as an underlying fund option in which the Nationwide Target Destination Funds may invest in order to obtain greater TIPS exposure.
“This new fund both broadens the reach of our product offerings and allows investors in our Target Destination Funds to achieve better volatility management. We feel investors will benefit from the additional diversification and potential protection from inflation they can achieve by investing in the Nationwide Inflation-Protected Securities Fund,” said Spangler.
The Nationwide Inflation-Protected Securities Fund A Shares require a minimum investment of $2,000 and are expected to have an annual expense ratio of 0.80 percent.
Investors interested in learning more about Nationwide Funds should contact their financial professional or visit the Nationwide Funds website. Financial professionals interested in learning more should call the Nationwide Funds sales desk at 877-877-5083, option 3.
About Nationwide Funds
Based in the Philadelphia area, Nationwide Funds is the mutual fund business of Nationwide Financial Services Inc., a leading provider of long-term savings and retirement products and a Nationwide Insurance company. A strategic partner to advisors, Nationwide Funds provides a full family of sub-advised mutual funds designed to help meet the unique investment goals and risk tolerances of their investor clients. As of June 1, 2012, Nationwide Funds manages 86 funds with approximately $42 billion in assets.
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.
Nationwide, Nationwide Financial, Nationwide Funds and the Nationwide framemark and On Your Side are service marks of Nationwide Mutual Insurance Company.
Investing in mutual funds involves risk, including the possible loss of principal. Investors’ shares, when redeemed, may be worth more or less than their original cost.
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.
The Fund is subject to interest rate risk. The Fund is subject to credit and liquidity risks associated with the underlying bonds owned by the Fund. The Fund is subject to inflation protected bonds risk due to the inflation adjustment feature of these bonds, which can cause them to have lower yields than those of conventional fixed-rate bonds. The Fund also is subject to prepayment and call risk and extension risk to varying degrees. These risks, as well as others, may be present during the time you hold shares of the Fund and may negatively affect the value of your investment. Please refer to the summary prospectus for a more detailed explanation of the Fund’s principal risks.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Asset Management, LLC.