Nationwide Issues Bill of Rights, Fiduciary Warranty

Nationwide Retirement Plans launched the Nationwide Bill of Rights and a fiduciary warranty to educate employers about their responsibilities.

The Nationwide Fiduciary Warranty outlines the plan sponsor’s fiduciary obligations and defines Nationwide’s role should their investment decisions come into question.

Nationwide said it offers the following services to help plan sponsors, including:

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  • fiduciary tools: access to a Model Investment Policy Statement with in-depth fund analysis, monitoring tools, and regular plan-level reporting;
  • fund selection: programs that offer a range of investment options;
  • choice for employees, without increasing fiduciary risk: a mutual fund window with no trading fees, self-directed brokerage and managed accounts from multiple money managers;
  • compliance resources: Nationwide’s fiduciary handbook, 404(c) checklist, due diligence file checklist and plan fiduciary meeting checklist.

For an additional fee, Nationwide will also become a full-service trustee, the company said.

“Investment professionals often only get a few hours a year to meet with a plan’s trustees. Nationwide wants to make sure that they are able to make best use of that time. The Nationwide Bill of Rights provides a solid foundation for a due diligence conversation,” said Joe Frustaglio, national sales manager for private-sector retirement plans, in the release.

More information is available at www.nationwide.com/rpsales or by calling 1.800.626.3112.

ETFs Continue to Prosper

Assets of exchange-traded funds (ETFs) rose in April to $595.96 billion, marking an almost 30% increase in the last year.

Data from the Investment Company Institute (ICI) show that the number of ETFs also increased slightly to 660. Although a slight increase in the month, it shows a dramatic increase over the 475 ETFs available in April 2007.

The nation’s total ETF assets were up by $24.85 billion, or 4%, since March of this year. In the last year, ETF assets have increased overall by 28%, or $129.41 billion, according to ICI.

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Individual types of ETFs experienced growth as well in the last year. Assets in domestic equity ETFs increased $64.86 billion since April 2007, and global equity ETFs assets rose $45.61 billion during this period. Assets of bond funds were $42.17 billion and hybrid funds were $170 million, the data show.

Despite the growth in ETF assets, ICI says the net issuance of ETFs is less than one year ago. The value of all ETF shares during April 2008 issued exceeded shares redeemed by $150 million; in April 2007, the net issuance was $6.63 billion.

The ICI data is available here.

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