The Markets October 8, 2008

Treasury Extends Money-Market Guarantee Program

The U.S. Treasury Department announced Wednesday a technical correction that will permit additional money market funds to participate in its Temporary Money Market Fund Guarantee Program.
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Funds that have a policy of maintaining a stable net asset value or share price that is greater than $1 and had such policy on September 19 are now eligible to participate, provided the fund meets all of the original program requirements, the Treasury said in a press release. The enrollment deadline for funds that are now eligible as a result of this technical correction is 11:59 p.m. EST on October 10, 2008.

The agency noted that the technical correction does not extend the original deadline for funds that maintain a stable share price of $1 and that qualified under the program originally announced on September 29 (see Treasury Opens Guarantee Program for Money Funds). The enrollment period for the original guarantee program closes on Wednesday at 11:59 p.m.

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With the announcement on Wednesday that Fidelity Investments, Vanguard Group, and T. Rowe Price Group are joining the Treasury’s original guarantee program, all major fund families have joined (see “Fidelity, Vanguard, T. Rowe Price To Use Treasury Guarantee“).

Products October 8, 2008

Nationwide Unveils Retirement Clear Advantage

Nationwide Retirement Plans announced the launch of its Retirement Clear Advantage, a retirement plan product featuring fee disclosure and institutional class mutual funds.
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A Nationwide news release said Clear Advantage provides plan sponsors with an upfront discussion on pricing, which Nationwide claims allows each plan to track its performance and make more informed decisions.

According to the announcement, features of the product include:

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  • any payments made by a mutual fund are credited back to the plan participant through reduced costs;
  • more than 150 retail mutual funds;
  • plan sponsors are never forced to choose Nationwide funds;
  • personalized investment options to help meet nearly every participant’s needs—from participants who are looking for “do-it-for me” solutions to those interested in going it alone;
  • multiple target-date fund options, fund window, self-directed brokerage account, and professionally managed accounts.

“Plan sponsors and participants have the right to know not only what fees they are paying, but to understand what services and plan benefits they are receiving in exchange for those fees,” said Matt Riebel, president of Nationwide Retirement Solutions, in the news release. “Fee disclosure shouldn’t just be about finding the lowest price. Instead, we want to provide the information small businesses need to shop for a retirement plan that will best meet their needs.”

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