New fund helps millennials invest for retirement
December 10, 2014 – King of Prussia, Pa. – Nationwide has added a 2060 fund to its target date mutual fund series, which provides investors with an all-in-one investment strategy for retirement. The Nationwide® Destination 2060 Fund (Institutional Class: NWWUX) is designed for millennial investors who are just entering the workforce and want to begin investing for retirement.
“This Fund offers young investors a diversified, low-cost and simple way to start preparing for retirement,” said Mike Spangler, president of Nationwide’s mutual funds business, which manages 117 funds with approximately $58.9 billion in assets.1 “More than 30 percent of all America’s workers are millennials, and that number continues to grow. To engage young workers in the retirement planning conversation, we need to provide them with investments that are tailored to their needs.”
The Fund seeks to provide capital appreciation and income. The Fund’s asset allocation mix is designed to meet the needs of investors retiring in 2060, and changes over time to be more conservative as investors near retirement. The Fund’s current allocation includes 51 percent in domestic equity investments, 28 percent in international equity investments, 6 percent in bonds and 5 percent in other asset classes. Thomas R. Hickey, Jr. and Benjamin A. Richer from Nationwide Fund Advisors manage the Fund.
“Nationwide has a long history of providing its clients with asset allocation solutions that help them build and maintain diversified, risk-appropriate investment portfolios,” said Spangler. “We believe this Fund continues that tradition and helps plan sponsors meet the changing investment needs of their employees.”
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 877-877-5083, option 3.
Nationwide, a Fortune 100 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 a full range of insurance and financial services, including auto, commercial, homeowners and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; specialty health; pet, motorcycle, boat and farm insurance. For more information, visit www.nationwide.com.
1As of October 31, 2014 and net of fund of funds.
Investing in mutual funds involves risk, including the possible loss of principal. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares.
Call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download prospectuses at nationwide.com/mutualfunds. These prospectuses outline investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing.
The Nationwide Target Destination Funds are designed to provide diversification across a variety of asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the Nationwide Target Destination Funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
The year in each Fund’s name refers to the approximate year (target date) that an investor plans to retire or begin withdrawing money from the Fund. Each Fund will gradually shift its investment allocations from more-aggressive investments to more-conservative investments based on its target date. An investment in a Fund is not guaranteed at any time, including on or after its target date.
Asset allocation is the process of spreading assets across several different investment styles and asset classes. The purpose is to potentially reduce long-term risk and capture potential profits across various asset classes.
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks, including but not limited to: stock market risk (equity securities); default risk and interest rate risk—if interest rates go up, bond prices go down and if interest rates go down, bond prices go up (bonds); and currency fluctuations, political risks, and differences in accounting and availability of information (international securities). Please refer to the most recent prospectus for a more detailed explanation of each Fund’s principal risks.
Nationwide Asset Management, LLC (NWAM) provides asset allocation consulting services to Nationwide Fund Advisors (NFA), the Funds’ investment adviser. NWAM is a registered investment adviser and wholly owned subsidiary of Nationwide Mutual Insurance Company, and therefore is affiliated with NFA. NFA makes both the asset allocation and underlying fund selection decisions for the Funds. In addition, NWAM serves as the subadviser to certain other Nationwide Funds.
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved or that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
Nationwide Funds Group (NFG) comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to Nationwide Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Funds.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, King of Prussia, Pa. NFD is not affiliated with any subadviser contracted by Nationwide Fund Advisors (NFA), with the exception of Nationwide Asset Management, LLC (NWAM).
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SOURCE: Nationwide Mutual Insurance Company