Savings Plus Excessive Trading Policy
Excessive trading (also known as market timing) is the practice of buying and selling investments frequently in an attempt to capitalize on short-term movements or pricing disparities in the market. This practice increases fund expenses, which results in higher fees and adversely affects fund performance for all participants invested in the fund.
Designed to protect our participants from the potential negative impacts of market timing, our current excessive trading policy imposes a 2.5 percent redemption fee on the sale of assets in the International Fund and the International Index Fund if the sale occurs within 30 calendar days of purchase. Learn more about Savings Plus' Transfer Restrictions and Redemption Fees. (PDF)
Proceeds from such fees flow back into the unit value of the affected funds to compensate for the increased costs resulting from the frequent trading activity.
The redemption fee does not apply to trades associated with Nationwide ProAccount®.
Policy Change Effective January 2, 2018
Effective January 2, 20181, the Savings Plus excessive trading policy will include all Target Date Funds in addition to the International Fund and the International Index Fund. However, the redemption fee will decrease from 2.5 percent to 2.0 percent for all investment funds subject to the restriction.
1Trades initiated after market close on December 29, 2017