Addition of inflation-protected fund to product line offers investors diversification, and lower risk
KING OF PRUSSIA, Pa. -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.