Target-risk funds provide investors with simplified diversification solution
Nationwide recognizes the 15th anniversary of its Nationwide Investor Destinations Funds. Introduced as the Tech Bubble was bursting in 2000, the series of five funds have thrived through two bear markets, two bull markets and two recovery periods, demonstrating the long-term value of diversification. Designed to make building a well-diversified portfolio easy for investors and advisors, the funds have helped investors prepare for retirement. The funds have accumulated more than $6.2 billion in assets since their inception.
“Nationwide is dedicated to developing and managing asset allocation solutions that strive to strike a balance between consistently strong returns and carefully managed risk,” said Michael Spangler, president of Nationwide’s mutual fund business. “While market conditions during the past 15 years truly tested these funds, their performance and investing strategies have proven the merits of a long-term asset allocation strategy.”
The series consists of the Nationwide Investor Destinations Aggressive Fund, Nationwide Investor Destinations Moderately Aggressive Fund, Nationwide Investor Destinations Moderate Fund, Nationwide Investor Destinations Moderately Conservative Fund and Nationwide Investor Destinations Conservative Fund. Breaking the mold of “cookie cutter” solutions, the funds provide investors with both passive and active strategies from a number of independent money managers with different areas of expertise.
The funds also offer investors access to 14 different asset classes, including an investment that provides a guaranteed return, as three of the five fund portfolios invest in the Nationwide Contract.1 The guaranteed minimum return provided by the Nationwide Contract can help manage volatility in a rising-interest-rate environment and provides an annual rate of return that is currently higher than most short-term investments. Both current income and principal stability are important considerations for investors living in or nearing retirement.
“The Nationwide Investor Destinations Funds are another example of how we’re helping advisors and clients create diversified investment portfolios for the long-term,” said Spangler.
Class A Shares require a minimum investment of $2,000 for each fund and charge annual expense ratios ranging from 0.81 percent to 0.85 percent.
Subadvisers include BlackRock Investment Management LLC; HighMark Capital Management Inc.; Thompson, Siegel & Walmsley LLC; Federated Investment Management Co.; Nationwide Asset Management LLC; Ziegler Capital Management LLC; and Goldman Sachs Asset Management L.P.
1 Each Fund may invest in the Nationwide Contract, which is a fixed interest contract issued and guaranteed by Nationwide Life Insurance Company (Nationwide), an affiliate of the Funds’ investment adviser, Nationwide Fund Advisors. If Nationwide becomes unable to meet this guarantee, a Fund that invests in the Nationwide Contract may lose money from unpaid principal or unpaid or reduced interest.
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.
Investing in mutual funds involves risk, including the possible loss of principal. Share price, principal value, and return will vary, and you may have again or a loss when you sell your shares.
The Nationwide Investor Destinations 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 Investor Destinations Funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
Investments in the Funds are subject to the risks of each Fund’s underlying funds. Please refer to the most recent prospectus for a more detailed explanation of each Fund’s principal risks.
Each Fund may invest in the Nationwide Contract, which is a fixed interest contract issued and guaranteed by Nationwide Life Insurance Company (Nationwide), an affiliate of the Funds’ investment adviser, Nationwide Fund Advisors. If Nationwide becomes unable to meet this guarantee, a Fund that invests in the Nationwide Contract may lose money from unpaid principal or unpaid or reduced interest.
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).
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.
Through March 31, 2015, the Nationwide Contract pays a minimum interest rate of 3.50%. From April 1, 2015 through March 31, 2016, the Nationwide Contract will pay a minimum interest rate of 2.50%. From April 1, 2016 through March 31, 2017, the Nationwide Contract will pay a minimum rate of 1.50%. Effective April 1, 2017, the Nationwide Contract will pay a minimum interest rate of 0.00%.
About Nationwide Funds Group (NFG) 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.
Distributor Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, King of Prussia, Pa. NFD is an affiliate of Nationwide Asset Management, LLC. NFD is not affiliated with any subadviser contracted by Nationwide Fund Advisors (NFA), with the exception of Nationwide Asset Management, LLC (NWAM).