Managed account services successful within 401(k) plans
Assets top $2 billion
FOR IMMEDIATE RELEASE
March 6, 2007
Carah Brody (614) 677-0275
Erica Lewis (614) 249-0184
COLUMBUS, Ohio— More than 60 percent of private-sector workers who have access to a 401(k) plan say that it’s their primary retirement savings vehicle.1 But, understanding how to correctly invest for retirement can be a difficult task. In fact, 70 percent of employees feel that selecting the appropriate financial products and services is a complicated process.2 Since Nationwide Financial Services, Inc (NYSE:NFS), acquired RIA Services, Inc in March 2005, more than 65,000 participants in 3,000 plans have invested $2 billion in managed account services.
“Not every plan participant is comfortable making critical investing decisions about their retirement plan on their own,” said Bill Jackson, senior vice president of retirement plans for Nationwide Financial. “We understand this reality and are committed to providing a variety of tools and services to meet the varying needs of our plan participants. We want each plan participant to feel confident that they are making the most of their retirement plan.”
RIA Services offers plan sponsors and their participants access to managed account services to help increase the effectiveness of their 401(k) plans and take some of the guess work out of selecting and managing their investments. For the “do-it-for-me” investors, managed accounts offer a great solution by allowing a Registered Investment Adviser to actively manage the participant’s account based on the participant’s personal investing needs.
“Our managed account solutions can help alleviate participant concerns while enhancing fiduciary protection for plan sponsors by allowing them to choose from a network of money managers,” said Jackson. “Of those plans that have added a managed account option, 30 percent of participants are taking advantage of the service.3” Investment professionals who would like more information about managed account services can call 1-800-626-3112, option one or visit online at www.riaservices.net.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest4 and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.
It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune 100 based on 2005 revenue.5 For more information, visit www.nationwide.com.
Nationwide takes no position as to either the advisability or the necessity of the use of registered investment advisors. The Employer selects the registered investment adviser providing this service to the plan. It is the responsibility of the plan’s investment fiduciaries to select this service in accordance with the plan’s established investment criteria. The plan fiduciaries are solely responsible for the selection and monitoring of the registered investment advisor. This service is separate and apart from the actual sale of any Nationwide product which may be used to provide the plan’s underlying investments. The fee for this service is in addition to any asset management charges associated with each individual investment option and any applicable recordkeeping fees Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
The Nationwide Framemark is a federally registered service mark
of Nationwide Mutual Insurance Company.
1 Nationwide Retirement Education Institute, 2006 Trends in Public Sector Retirement Plans report.
2 Employer & Employer Views on Proposed & Current Retirement Plans, Nationwide Retirement Education Institute, Spring 2004.
3 Based on data from Nationwide’s production system as of 1/31/07
4 Nationwide Investment Services Corporation, member NASD. In MI only: Nationwide Investment Svcs. Corporation.
5 Fortune Magazine, April 2006