Bringing you live news and features since 2006 

Nationwide Funds launches Nationwide Inflation-Protected Securities Fund

RELATED TOPICS​

Nationwide Funds has launched a new mutual fund, the Nationwide Inflation-Protected Securities Fund.

The fund, which is sub-advised 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,” says Michael Spangler (pictured), 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), US 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,” says Spangler.

The Nationwide Inflation-Protected Securities Fund A Shares require a minimum investment of USD2,000 and are expected to have an annual expense ratio of 0.80 per cent.

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by