Nationwide Funds Group today delivered some welcoming news to its investors. The firm said that it will eliminate all redemption fees on its retail and retirement plan mutual funds, effective Aug. 1 in an effort to help drive asset growth for the company and financial advisors.
According to Michael Spangler, president of Nationwide Funds Group, redemption fees were originally imposed to deter market timing and late trading in mutual funds. However, he said that the firm "has made a number of advances in an effort to detect and reduce excessive trading, short-term trading or market timing activity” leading to the elimination of redemption fees in Nationwide funds.
King of Prussia, PA-based Nationwide Funds Group is the mutual fund arm of Nationwide Financial Services, Inc. The firm managed some $43 billion in assets in sub-advised mutual funds as of March 31.