Nationwide announces plans for Global Equity, High Yield Bond funds

By Toni Weeks

San Diego, April 10 - Nationwide Mutual Funds is planning two new funds, according to an N-1A filing with the Securities and Exchange Commission.

The Nationwide Global Equity Fund and the Nationwide High Yield Bond Fund will both launch with four share classes: class A, class C, institutional service class and institutional class. Ticker symbols have not yet been set.

The Nationwide Global Equity Fund will seek to maximize total return consisting of capital appreciation and current income by investing, under normal circumstances, at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of U.S. and foreign issuers. The fund may also invest in currency futures and forward foreign currency exchange contracts to hedge against international currency exposure.

Nicholas Melhuish, a managing director of UBS Global Asset Management (Americas) Inc., will be the portfolio manager. UBS is the subadviser.

Shareholder fees consist of a 5.75% maximum sales charge for class A shares, a 1% maximum deferred sales charge for class C shares and a 2% redemption/exchange fee for shares redeemed or exchanged within 90 days of purchase that applies to all share classes.

Management fees will run 0.75%. Including other fees, and taking into account an expense limitation agreement with the adviser, total annual fund operating expenses are expected to be 1.3% for class A, 1.95% for class C, 1.2% for institutional service class and 0.95% for institutional class shares. The expense limitation agreement expires Feb. 28, 2014.

The Nationwide High Yield Bond Fund will seek to provide high current income as well as capital growth when consistent with high current income. Under normal conditions, it will invest at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield bonds, with a focus on higher-yielding, lower-rated fixed-income securities issued by foreign and U.S. companies. Investments in fixed-income securities may include, among others, mortgage-backed securities and asset-backed securities. Up to 25% of the fund's total assets may be invested in foreign securities, including issuers in emerging market countries. The fund may also invest in currency futures and forward foreign currency exchange contracts in order to hedge against international currency exposure.

Craig Ellinger and Matthew Iannucci will be the portfolio managers. Ellinger is a managing director, and Iannucci is an executive director, both at UBS Global Asset Management (Americas) Inc., the fund's subadviser.

Shareholder fees consist of a 4.25% maximum sales charge for class A shares, a 0.75% maximum deferred sales charge for class C shares and a 2% redemption/exchange fee for shares redeemed or exchanged within 90 days of purchase that applies to all share classes.

Management fees will run 0.55%. Including other fees, and taking into account an expense limitation agreement with the adviser, total annual fund operating expenses are expected to be 1.1% for class A, 1.5% for class C, 1% for institutional service class and 0.75% for institutional class shares. The expense limitation agreement expires Feb. 28, 2014.

King of Prussia, Pa.-based Nationwide Fund Advisors will serve as the investment adviser.

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