Nationwide Financial Services of Columbus, Ohio has come up with an innovative approach to providing asset management services to publicly-held 401(k) sponsors that allows employees to actively trade shares of their employers' stock within their 401(k) plans.
Under the program, Nationwide can create a stock fund-like account that invests exclusively in the stock of any 401(k) sponsor that is a publicly-traded company. In addition to investing in the stock of that public company, the stock fund account will invest a small percentage of its assets in a non-proprietary money market fund. That will provide a liquidity component to the equity account, said Steven J. Rose, vice president and pension product manager for Nationwide.