According to a press release, the fund was created to help investors manage overall portfolio risk with one diversified fund. NWAAX seeks to provide total return by passively investing in a mix of seven alternative asset classes that generally have different return patterns than the broad U.S. stock and bond market.
The fund’s alternative investments include global real estate, emerging market debt, emerging market stocks, commodities, TIPS, international bonds and high-yield bonds.
“Investors are increasingly looking for new, lower-cost ways to decrease volatility in their portfolios,” said Michael Spangler, president of the Investment Management Group for Nationwide Financial, in the announcement. “We believe this new fund will make it easier and more efficient for financial professionals to build better, more diversified portfolios for their clients.”
The Nationwide Alternatives Allocation Fund Shares require a minimum investment of $2,000, and are expected to have an annual expense ratio of 0.90%. The fund is subadvised by Goldman Sachs Asset Management, and will also be offered in Institutional, Institutional Service and C share classes.