Investment Products and Service Launches

Nationwide Adds 3(21) Fiduciary Service from IRON Financial; intellicents to Use Schwab Automated Investment Management Program; Delaware Investments Rebrands; and more.

By Javier Simon | April 06, 2017
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Nationwide Adds 3(21) Fiduciary Service from IRON Financial

Nationwide will now offer its retirement plan clients more choices in how they select and monitor investments with the addition of 3(21) investment fiduciary services from IRON Financial.

“Investment selection and ongoing due diligence are important and often complicated responsibilities for a plan sponsor,” says Kevin Devine, leader of 401(k) plan sales at Nationwide. “We know plan sponsors have many time constraints, and we’re dedicated to making it easier for our clients to offer a customized plan. At the same time, we want to ensure we offer a variety of services designed to meet the unique needs of each client and their workforce.”

Nationwide will offer IRON’s non-discretionary 3(21) service and a discretionary 3(38) service. The 3(21) service provides plan sponsors assistance with selecting and monitoring the plan’s investment options, while allowing the plan sponsor to maintain control over its investment lineup. The 3(21) service also provides plan sponsors with the flexibility to develop investment lineups with both active and passive management strategies. Both time and risk based asset allocation models are available. With the 3(38) service, IRON maintains full discretion over investment options for a plan and will select, monitor and replace investment options based on the plan’s investment policy statement.

For the 3(21) option, IRON will create an investment policy statement (IPS) detailing the quantitative and qualitative processes followed by IRON in the selection, monitoring and replacement of recommended funds. It will also provide a quarterly fiduciary report through Nationwide websites that includes a comprehensive review of the trust program’s recommended funds, and notes any recommended actions for the quarter.

“For those plan sponsors who wish to remain involved in the selection of plan level investments, this new fiduciary offering provides a simplification of the process and enables those sponsors to maintain control,” explains Dick Friedman, managing director of Corporate Retirement Services for IRON Financial. “IRON has provided its retirement plan sponsors and financial advisers a flexible fiduciary model that encompasses both passive and active investment options, risk based asset allocation models and time based options of varying types that meet their particular plan needs. As an independent investment fiduciary, IRON is pleased to be able to offer this solution with unbiased investment advice.”

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