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R2014-124 PRO-ACCOUNT PLAN SPONSOR AGREEMENT
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R2014-124 PRO-ACCOUNT PLAN SPONSOR AGREEMENT
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7/24/2015 9:23:55 AM
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Resolution/Ordinance
Res Ord Num
R2014-124
Res Ord Title
APPROVING PRO-ACCOUNT PLAN SPONSOR AGREEMENT WITH NATIONWIDE INVESTMENT ADVISORS, LLC
Approved Date
10/6/2014
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Nationwide ProAccount assets are custodied by the applicable custodian to the NRS Retirement Program, <br /> which may include companies affiliated with NIA. The custodian is authorized to deduct any and all <br /> Nationwide ProAccount Fees, when due, from a ProAccount Client's retirement plan account and to remit the <br /> appropriate fees to NIA as investment adviser. The custodian may charge a separate custody fee which the <br /> custodian will also deduct in addition to the Nationwide ProAccount Fee, from the ProAccount Client's <br /> retirement plan account. <br /> Compensation to Nationwide Representatives -- Retirement specialists of NRS that offer Nationwide <br /> ProAccount to retirement plan participants are registered as investment adviser representatives of NIA. These <br /> individuals are compensated for offering Nationwide ProAccount and enrolling participants who have selected <br /> the service. Compensation may include a base salary and incentives based on the amount of assets <br /> contributed to the ProAccount Clients' accounts. In addition, certain individuals who provide administrative or <br /> wholesale distribution services in support of Nationwide ProAccount may receive incentive compensation <br /> based on the amount of assets contributed to the ProAccount Clients' accounts. <br /> Payments by NIA to Service Providers-- NIA and its affiliates may compensate affiliated and unaffiliated third <br /> parties for administrative services provided in support of Nationwide ProAccount. Registered Investment <br /> Advisors Services, Inc., an affiliate of NIA, receives compensation for providing technology services that <br /> facilitate the management of participant accounts through the NRS Retirement Program. <br /> Compensation from Mutual Funds-To the extent permitted by applicable law or regulation, Nationwide may <br /> receive the following types of payments from mutual funds selected by the IFE for inclusion in Nationwide <br /> ProAccount portfolios. <br /> • Rule 12b-1 fees,which are deducted from mutual fund assets; <br /> • Sub-transfer agent fees or fees paid under administrative service plans adopted by the mutual fund, <br /> which may be deducted from mutual fund assets; and <br /> • Payments by a mutual fund's adviser or sub-adviser(or its affiliates). These payments may be derived, <br /> in whole or in part,from the advisory fee that is deducted from mutual fund assets and reflected in the <br /> mutual fund charges. <br /> The amount of compensation that Nationwide receives from mutual funds selected for Nationwide ProAccount <br /> portfolios may vary by fund. Moreover,the IFE may select mutual funds that are affiliated with Nationwide, in <br /> which case certain companies affiliated with NIA (collectively referred to as the Nationwide Funds Group) will <br /> also receive compensation from the mutual funds for investment advisory, administrative, transfer agency, <br /> distribution, or other services. Accordingly, Nationwide may receive more revenue with respect to affiliated <br /> mutual funds than unaffiliated mutual funds. <br /> Nationwide's receipt of varying amounts of compensation from affiliated and unaffiliated mutual funds <br /> selected for Nationwide ProAccount portfolios presents a conflict of interest. Nationwide seeks to mitigate <br /> this conflict of interest by employing an IFE to develop and maintain the program's investment methodology, <br /> which NIA cannot influence or modify. Under Nationwide ProAccount, the IFE is solely responsible for <br /> selecting the mutual funds included in the portfolios. The IFE's fees for services provided under Nationwide <br /> ProAccount are not related to the mutual funds it selects or otherwise influenced by the revenue NIA or its <br /> affiliates may receive from such mutual funds. <br /> Please see Item 10 for additional information regarding NIA's relationships with other Nationwide affiliates, <br /> including the Nationwide Funds Group. <br /> Item 6 Performance-Based Fees and Side-By-Side Management <br /> Neither NIA nor its supervised persons accept performance-based fees for NIA advisory programs. NIA utilizes <br /> the services of sub-advisers, an IFE and a Portfolio Strategist to make investment decisions related to its <br /> 11 <br />
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