November 19, 2012
Nationwide Funds Group Acquires Two Mutual Funds from UBS
High yield and global equity funds offer additional long-term strategies to help investors plan and save for retirement
King of Prussia, Pennsylvania - Nationwide Funds Group today announced that shareholders of the UBS High Yield Fund and UBS Global Equity Fund have approved the mergers and reorganizations of those funds into the Nationwide High Yield Bond Fund and the Nationwide Global Equity Fund. The merger gives Nationwide approximately $183 million in new assets, and enables Nationwide to offer a wider array of investment solutions to financial advisors and their clients.
UBS Global Asset Management will remain affiliated with the funds as their subadviser. The funds’ existing assets, performance histories and risk profiles have carried over to the Nationwide funds. Continuing Nationwide’s commitment to provide value for clients and help drive asset growth for the company, the new funds have lower fees than they did prior to the mergers and reorganizations.
“The Nationwide High Yield Bond Fund and Nationwide Global Equity Fund enhance our product portfolio by increasing the number of asset classes we can draw upon to assist advisors with navigating their clients through all market conditions,” said Michael Spangler, president of Nationwide Funds Group. “This latest effort to broaden our investment offerings involves partnering with an established subadviser to grow our business, while providing investors with the potential for higher yields and greater diversification in a market where investors are hungry for both.”
The Nationwide High Yield Bond Fund (GGHAX) seeks to provide high current income and corresponding capital growth. It invests in a portfolio of higher-yielding, lower-rated fixed-income securities issued by U.S. and foreign companies. The fund employs a disciplined, fundamental research-driven investment process focused on risk management, and presents an opportunity for investors to achieve higher yields at a time when interest rates are at historic lows.
The Nationwide Global Equity Fund (GGEAX) seeks to maximize total return, including capital appreciation and current income, by using a globally integrated investment process to uncover undervalued markets, currencies, sectors and securities. The fund’s research capabilities are supported by a team of 80 analysts based around the world. Its global equities-focused strategy provides investors with an opportunity to globally diversify at a time when many advisors are encouraging their clients to further diversify their portfolios.
“These adoptions are beneficial for investors,” said Bob McGowan, managing director and head of corporate institutions at UBS global asset management. “Existing shareholders will benefit from the greater reach these funds will have through Nationwide’s distribution platform and their potential to develop economies of scale that will enable the funds to invest more flexibly. Furthermore, these funds will have broad appeal for prospective investors looking for timely strategies managed by experienced and established teams of investment professionals.”
The Class A Shares of both funds require a minimum investment of $2,000. The Class A Shares of the Nationwide High Yield Fund and Nationwide Global Equity Fund will see their annual expense ratios decrease from 1.20 percent to 1.10 percent and from 1.50 percent to 1.30 percent, respectively.
“We continuously look for ways to diversify our portfolio of offerings and provide financial advisors with as many solid, long-term investment options as possible to help their clients prepare for retirement and meet other financial goals,” Spangler said.
Investors interested in learning more about Nationwide Funds Group should contact their financial professional. Financial professionals interested in learning more can visit the mutual fund advisor website or contact the Nationwide Funds Group sales desk at 877-877-5083, option 3.
Investing in mutual funds involves risk, including possible loss of principal. Investors’ shares, when redeemed, may be worth more or less than their original cost. While global investing can provide investors with additional diversification, there are other risks that should be considered before investing such as stock market, foreign currency and political risks. It is important to note that investing in high yield bonds involves risk as well, including interest rate risk and default risk.
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is not an affiliate of UBS Global Asset Management.
About Nationwide Funds Group
Based in the Philadelphia area, Nationwide Funds Group 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 Group 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 Sept. 30, 2012, Nationwide Funds Group manages 86 funds with approximately $44 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.