UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-08495
NATIONWIDE MUTUAL FUNDS
(Exact name of registrant as specified in charter)
1200 RIVER ROAD, SUITE 1000, CONSHOHOCKEN, PENNSYLVANIA 19428
(Address of principal executive offices) (Zip code)
Eric E. Miller, Esq.
1200 River Road
Suite 1000
Conshohocken, Pennsylvania 19428
(Name and address of agent for service)
Registrant’s telephone number, including area code: (484) 530-1300
Date of fiscal year end: October 31, 2008
Date of reporting period: November 1, 2007 through October 31, 2008
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than ten (10) days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR § 270.30e-1). The Commission may use the information provided on Form N-CSR in the Commission’s regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D.C. 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
TABLE OF CONTENTS
Item 1. Reports to Stockholders.
Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR § 270.30e-1).
2
Nationwide Mutual Funds
Annual Report
October 31, 2008
Equity Funds
Nationwide International Value Fund
Nationwide Large Cap Value Fund
Nationwide Micro Cap Equity Fund
Nationwide Mid Cap Growth Fund
Nationwide U.S. Small Cap Value Fund
Nationwide Value Fund
Nationwide Value Opportunities Fund
Fixed-Income Funds
Nationwide Bond Fund
Nationwide Enhanced Income Fund
Nationwide Government Bond Fund
Nationwide Short Duration Bond Fund
AnnualReport
October 31, 2008
| | | | |
| | | | Contents |
| | | | |
| 1 | | | Message to Shareholders |
| | | | |
| | | | Equity Funds |
| 5 | | | Nationwide International Value Fund |
| 21 | | | Nationwide Large Cap Value Fund |
| 34 | | | Nationwide Micro Cap Equity Fund |
| 49 | | | Nationwide Mid Cap Growth Fund |
| 61 | | | Nationwide U.S. Small Cap Value Fund |
| 82 | | | Nationwide Value Fund |
| 94 | | | Nationwide Value Opportunities Fund |
| | | | |
| | | | Fixed Income Funds |
| 109 | | | Nationwide Bond Fund |
| 125 | | | Nationwide Enhanced Income Fund |
| 138 | | | Nationwide Government Bond Fund |
| 155 | | | Nationwide Short Duration Bond Fund |
| 169 | | | Notes to Financial Statements |
| | | | |
Commentary provided by Nationwide Fund Advisors, investment adviser to Nationwide Funds. All opinions and estimates included in this report constitute the Adviser’s judgment as of the date of this report and are subject to change without notice. Portfolio composition is accurate as of the date of this report and is subject to change at any time.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The Nationwide Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on nationwidefunds.com or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
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Message to Shareholders
October 31, 2008
Dear Shareholder:
Challenging developments in financial markets, as well as in the global economy particularly during the latter months of the annual reporting period, have dominated the news cycles. Commentators have described the decline as “unprecedented in our lifetime.” Unfortunately, I cannot contradict the pundits. Nearly across the board, markets are posting negative performance numbers in the double digits. As for our funds, while some performed well relative to their peer groups, most have lost value.
The causes for the prevailing negative market conditions have been well documented in the press and elsewhere. The failure of high-profile financial institutions and the extraordinary government intervention have left no asset class unaffected. While I can’t give you good news at this time, I can urge you to keep these events in perspective.
It’s important to remember that economic markets never stand still. They’re volatile by nature. Of course, that premise is easier to accept when markets are going up. However, we approach investing from a long-term perspective. Staying focused, adhering to a plan and remaining aware of your options will help you endure various market conditions.
Nationwide® and Nationwide Funds Groupsm continue to work with investors to help them keep a solid grasp on their long-term financial goals. Our approach is deliberate and our commitment is firm. We do not foresee a fast recovery from the ongoing economic and market turbulence. However, we believe that our underlying investment principles are sound.
In closing, we thank you for entrusting your assets to Nationwide Funds Group.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
This report and the holdings provided are for informational purposes only, and are not intended as an offer or recommendation with respect to the purchase or sale of any security, option, future or other derivatives in such securities. Portfolio composition is accurate as of the date of this report and is subject to change at any time. There is no assurance that any specific securities mentioned in this report will remain in the fund’s portfolio. A more recent listing of each fund’s portfolio holdings can be found on the Trust’s internet site nationwidefunds.com.
There is no assurance that a diversified portfolio will produce better results than a nondiversified portfolio.
Investing in mutual funds involves risk, including the possible loss of principal. There is no assurance that the investment objective of any fund will be achieved.
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective as determined by Lipper.
Lipper Inc., a wholly owned subsidiary of Reuters, is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Funds in the Lipper Small-Cap Core Funds category invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index.
Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index]: An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year
2008 Annual Report 1
Message to Shareholders (Continued)
October 31, 2008
or more) that is generally representative of the bond market as a whole.
Barclays Capital U.S. Credit Bond Index [formerly Lehman Brothers U.S. Credit Bond Index]: An unmanaged index (and a component of the Barclays Capital U. S. Government/Credit Bond Index – formerly Lehman Brothers U.S. Government/Credit Index) that measures the performance of publicly issued U.S. corporate and foreign debentures and secured notes meeting certain maturity, liquidity and quality requirements.
Merrill Lynch (ML) 1-3 Year Treasury Index: An unmanaged index that tracks short-term U.S. Treasury notes and bonds with maturities of one to three years.
Merrill Lynch (ML) 1-Year Treasury Bill (T-Bill) Index: An unmanaged index that comprises a single issue purchased at the beginning of the month and held for a full month. At the end of that month, that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding T-Bill with the longest maturity.
Merrill Lynch (ML) 6-Month Treasury Bill (T-Bill) Index: An unmanaged index that comprises a single issue purchased at the beginning of the month and held for a full month. At the end of that month, that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding T-Bill that matures closest to, but not beyond, six months from the rebalancing date.
Merrill Lynch (ML) Government Master Index: An unmanaged index that gives a broad look at how U.S. government bonds have performed.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 1000® Index: An unmanaged index that measures the performance of the stocks of the 1,000 largest companies in the Russell 3000® Index, which represent approximately 92% of the total market capitalization of the Russell 3000 Index.
Russell 1000® Value Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 1000® Index (the largest 1,000 U.S. companies, based on market capitalization) with lower price-to-book ratios and lower forecasted growth values.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Russell 2000® Value Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 2000® Index (the smallest 2,000 U.S. companies, based on market capitalization) with lower price-to-book ratios and lower forecasted growth values.
Russell Microcaptm Growth Index: An unmanaged index that provides a comprehensive, unbiased measurement of the performance of the microcap growth segment of the U.S. equity market based on continuous empirical research of microcap growth investment manager behavior; represents those stocks in the Russell Microcaptm Index with higher price-to-book ratios and higher forecasted growth values.
Russell Midcap® Growth Index: An unmanaged index of mid-capitalization growth stocks of U.S. companies; measures the performance of the stocks of those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values, and gives a broad look at how the stock prices of medium-sized U.S. companies have performed.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.
Investments in small-company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility. These risks are magnified for investments in micro-cap
2 Annual Report 2008
companies. Investments in companies of different size within a broad small-capitalization range and may fail to produce the returns and/or diversification benefits of the overall U.S. small-capitalization market.
Value stocks can react differently to issuer, political, market and economic developments than the market overall and other types of stocks. This can cause a Fund that employs a value style of investing to underperform other funds that use different investing styles.
International investing involves additional risks, including currency fluctuations, differences in accounting standards, economic and political instability, illiquidity and higher trading costs, and differences in foreign regulations, all of which are magnified in emerging markets.
While the Nationwide Bond Fund, the Nationwide Enhanced Income Fund, the Nationwide Government Bond Fund and the Nationwide Short Duration Bond Fund invest primarily in securities of the U.S. government and its agencies, these Funds’ value is not guaranteed by these entities.
The Nationwide Enhanced Income Fund and the Nationwide Short Duration Bond Fund may purchase securities in derivatives, which can be very volatile and carry high transaction costs. These Funds also may purchase mortgage-backed and asset-backed securities, which are sensitive to fluctuations in interest rates. In addition, these securities are subject to prepayment, which may cause a Fund to reinvest in securities with lower interest rates.
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Class A shares at NAV. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Sales charge and fee information: Nationwide International Value Fund, Nationwide Large Cap Value Fund, Nationwide Micro Cap Equity Fund, Nationwide Mid Cap Growth Fund, Nationwide U.S. Small Cap Value Fund, Nationwide Value Fund and Nationwide Value Opportunities Fund Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower.
Sales charge and fee information: Nationwide Bond Fund and Nationwide Government Bond Fund Class A shares have up to a 4.25% front-end sales charge and a 0.25% 12b-1 fee. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower.
Sales charge and fee information: Nationwide Enhanced Income Fund and Nationwide Short Duration Bond Fund Class A shares have up to a 2.25% front-end sales charge and a 0.25% 12b-1 fee. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower.
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 1-800-848-0920 to request a prospectus, or download a prospectus at nationwidefunds.com. Please read it carefully before investing any money.
The Funds’ adviser, or its employees, may have a position in the securities named in this report. Except where otherwise indicated, the views and opinions expressed herein are those of Nationwide Funds Group as of the date noted, are subject to change at any time, and may not come to pass.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428. NFD is not affiliated with any of the subadvisers listed in this report, except Nationwide Asset Management, LLC.
Nationwide Funds Group (NFG) is the mutual fund arm of Nationwide Financial Services, Inc. (NYSE: NFS). Based in Conshohocken, Pa., a suburb of Philadelphia, NFG comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to the Nationwide Funds. NFS is an affiliate of Nationwide Mutual Insurance Company.
2008 Annual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the year ended October 31, 2008.
The economic conditions during the reporting period were driven by events that began to take shape in mid-year 2007 as the bursting of the U.S. housing bubble triggered a number of collateral impacts across the global economy. Specifically, substantial dislocations occurred in global financial markets. The financial imbalances and subprime mortgage default issues that became obvious to everyone in late 2007 mushroomed into a global financial crisis marked by diminishing liquidity and plunging asset values.
Financial services and cyclical stocks were the areas most aggressively pressured during the reporting period as the economy slowed and the residential housing market and the mortgages backing it soured. These problems included: (1) the failures of several prominent U.S. financial institutions; (2) the U.S. government’s takeover of Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market); (3) the reorganization of Wall Street’s remaining investment banks (The Goldman Sachs Group, Inc. and Morgan Stanley) as bank holding companies; and (4) the need to pass a $700 billion Troubled Asset Relief Program (TARP) bill by the U.S. Congress.
In short, the reporting period was filled with events that have not happened in more than 50 years, and, in many cases, since the Great Depression. Worldwide recession fears, fueled by these financial problems, resulted in sizable double-digit declines in nearly all segments of the investment market as well as increased volatility throughout the reporting period, along with rapid changes in relative performance among economic sectors. This was especially true in commodities; prices both surged and fell sharply during the course of the reporting period.
Large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, fell 36% during the reporting period as credit markets deteriorated and market volatility reached record levels. Mid-cap U.S. equities, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 37%, and small-cap U.S. equities, as measured by the Russell 2000® Index, declined 34%.
In general, international stocks were even more negatively affected than U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost more than 46% during the reporting period, including a loss of more than 34% during the last three months of the period. Emerging market stocks, as measured by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, lost more than 56% during the reporting period, including a loss of more than 44% during the last three months of the period.
The reporting period was a time of general disappointment for fixed-income investors as well. The broad-based Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] gained a mere 0.31%. Continuing credit market woes, however, coupled with uncertainty about the extent of government intervention to help ease the liquidity crunch, served to drag down U.S. investment-grade corporate bonds by nearly 14% during the reporting period.
4 Annual Report 2008
| |
| Nationwide International Value Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the period from January 1, 2008 through October 31, 2008, the Nationwide International Value Fund (Class A at NAV) registered -50.26% and its benchmark, the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, registered -43.25%. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of International Large-Cap Value Funds (consisting of 88 funds as of October 31, 2008) was -44.24% for the 10 months ended October 31, 2008.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s position in Tokyo Electric Power Co. contributed to relative returns. Within the defensive medical sector, the Fund’s positions in Sanofi-Aventis and GlaxoSmithKline plc also contributed on a relative basis.
What areas of investment detracted from Fund performance?
HBOS plc, The Royal Bank of Scotland Group plc and Fortis SA/NV were among the largest detractors from Fund performance, because the financials sector was being battered by the continued economic crisis. As the credit crisis entered a new and more menacing phase in the third quarter of 2008, Fortis, HBOS and financial institutions were undermined by gridlock in the interbank market. Despite sound fundamentals, HBOS suffered due to fears about its access to short-term funding.
While our research indicated that HBOS was adequately capitalized after its rights issue in the second quarter of 2008 and faced no immediate liquidity threat, we underestimated the probability that it would face a crisis of confidence that forced it into a takeover by Lloyds TSB Group plc. Benelux bank Fortis fell on fears that its capital position was not strong enough to see it through the market stress. The Belgian, Netherlands and Luxembourg governments subsequently rescued the bank at the end of the third quarter of 2008. In other sectors, Fund holding Renault S.A. traded lower based on general fears of consumer weakness, especially in the United States, where the company is exposed due to its stake in fellow automaker Nissan Motor Co., Ltd.
What is your outlook for the near term?
Our research and experience as value managers have taught us to keep portfolio risk proportionate with the value opportunity we identify. After a lengthy period of compression, valuation spreads have widened. If this trend continues, we may see increased opportunities to raise the Fund’s concentration in undervalued industries and companies.
Subadviser:
AllianceBernstein L.P.
Portfolio Managers:
Henry S. D’Auria, Sharon E. Fay, Eric J. Franco, and Kevin F. Simms
2008 Annual Report 5
| |
| Fund Performance | Nationwide International Value Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | |
| | | | | Inception1* |
| |
Class A w/o SC2 | | | | | -50.26% | |
w/SC3 | | | | | -53.12% | |
| |
| |
Class C w/o SC2 | | | | | -50.46% | |
w/SC4 | | | | | -50.95% | |
| |
| |
Institutional Service Class5 | | | | | -50.12% | |
| |
| |
Institutional Class5 | | | | | 50.02% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | Not annualized |
| |
| 1 | | Fund commenced operations on December 21, 2007. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide International Value Fund, Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The MSCI EAFE - an unmanaged index of companies whose securities are listed on the stock exchanges of the U.S., Europe, Canada, Australia and the Far East - gives a broad look at how the stock prices of these companies have performed. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
6 Annual Report 2008
| |
| Shareholder | Nationwide International Value Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide International Value Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 523.07 | | | | 5.26 | | | | 1.37 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.23 | | | | 6.99 | | | | 1.37 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 522.03 | | | | 7.74 | | | | 2.02 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.96 | | | | 10.30 | | | | 2.02 | |
| |
| |
| Institutional Service Class | | | Actual | | | | 1,000.00 | | | | 523.90 | | | | 4.44 | | | | 1.16 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.31 | | | | 5.90 | | | | 1.16 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 525.02 | | | | 3.75 | | | | 0.98 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.22 | | | | 4.97 | | | | 0.98 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 7
| |
| Portfolio Summary | Nationwide International Value Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 98.3% | |
| Repurchase Agreements | | | 2.4% | |
| Preferred Stocks | | | 0.0% | |
| Rights | | | 0.0% | |
| Liabilities in excess of other assets | | | -0.7% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Oil, Gas & Consumable Fuels | | | 18.1% | |
| Commercial Banks | | | 10.7% | |
| Pharmaceuticals | | | 7.2% | |
| Metals & Mining | | | 6.5% | |
| Chemicals | | | 6.0% | |
| Automobiles | | | 5.5% | |
| Diversified Telecommunication Services | | | 5.0% | |
| Insurance | | | 5.0% | |
| Capital Markets | | | 3.3% | |
| Electric Utilities | | | 3.0% | |
| Other | | | 29.7% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Royal Dutch Shell PLC, Class A | | | 4.1% | |
| BP PLC | | | 3.1% | |
| Total SA | | | 2.9% | |
| GlaxoSmithKline PLC | | | 2.9% | |
| Vodafone Group PLC | | | 2.6% | |
| Sanofi-Aventis SA | | | 2.2% | |
| Novartis AG | | | 2.1% | |
| BNP Paribas | | | 2.1% | |
| BASF SE | | | 2.0% | |
| E. ON AG | | | 2.0% | |
| Other | | | 74.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Countries | | |
| |
| Japan | | | 22.2% | |
| United Kingdom | | | 16.5% | |
| France | | | 14.6% | |
| Germany | | | 12.5% | |
| Canada | | | 5.1% | |
| Switzerland | | | 3.9% | |
| Italy | | | 3.7% | |
| Australia | | | 3.6% | |
| Netherlands | | | 2.9% | |
| Sweden | | | 2.8% | |
| Other | | | 12.2% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
8 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide International Value Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 98.3% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
AUSTRALIA 3.6%(a) |
Airline 0.6% |
| Qantas Airways Ltd. | | | 455,836 | | | $ | 740,122 | |
| | | | | | | | | |
Commercial Banks 0.4% |
| National Australia Bank Ltd. | | | 27,100 | | | | 439,564 | |
| | | | | | | | | |
Containers & Packaging 0.6% |
| Amcor Ltd. | | | 171,020 | | | | 659,959 | |
| | | | | | | | | |
Metals & Mining 1.2% |
| BHP Billiton Ltd. | | | 72,200 | | | | 1,386,534 | |
| Minara Resources Ltd. | | | 5,300 | | | | 3,655 | |
| | | | | | | | | |
| | | | | | | | 1,390,189 | |
| | | | | | | | | |
Real Estate Management & Development 0.4% |
| Lend Lease Corp. Ltd. | | | 88,700 | | | | 410,284 | |
| | | | | | | | | |
Transportation Infrastructure 0.4% |
| Macquarie Infrastructure Group | | | 347,534 | | | | 455,355 | |
| | | | | | | | | |
| | | | | | | | 4,095,473 | |
| | | | | | | | | |
| |
| |
BELGIUM 1.1%(a) |
Chemicals 1.1% |
| Solvay SA | | | 13,370 | | | | 1,243,460 | |
| | | | | | | | | |
Diversified Financial Services 0.0% |
| Fortis | | | 24,800 | | | | 28,729 | |
| | | | | | | | | |
| | | | | | | | 1,272,189 | |
| | | | | | | | | |
| |
| |
BRAZIL 0.3% |
Commercial Banks 0.3% |
| Unibanco — Uniao de Bancos Brasileiros SA GDR | | | 5,150 | | | | 324,862 | |
| | | | | | | | | |
Metals & Mining 0.0% |
| Companhia Vale do Rio Doce ADR | | | 400 | | | | 4,684 | |
| | | | | | | | | |
| | | | | | | | 329,546 | |
| | | | | | | | | |
| |
| |
CANADA 5.1% |
Chemicals 0.2% |
| Methanex Corp. | | | 400 | | | | 4,545 | |
| Nova Chemicals Corp. | | | 19,900 | | | | 258,495 | |
| | | | | | | | | |
| | | | | | | | 263,040 | |
| | | | | | | | | |
Commercial Banks 0.8% |
| National Bank of Canada | | | 6,800 | | | | 255,169 | |
| Toronto-Dominion Bank | | | 14,700 | | | | 694,492 | |
| | | | | | | | | |
| | | | | | | | 949,661 | |
| | | | | | | | | |
Insurance 1.9% |
| Fairfax Financial Holdings Ltd. | | | 3,528 | | | | 969,263 | |
| Industrial Alliance Insurance and Financial Services, Inc. | | | 22,000 | | | | 456,508 | |
| Sun Life Financial, Inc. | | | 28,700 | | | | 675,336 | |
| | | | | | | | | |
| | | | | | | | 2,101,107 | |
| | | | | | | | | |
Metals & Mining 0.7% |
| Barrick Gold Corp. | | | 20,600 | | | | 471,228 | |
| Inmet Mining Corp. | | | 12,350 | | | | 277,281 | |
| | | | | | | | | |
| | | | | | | | 748,509 | |
| | | | | | | | | |
Multi-Utility 0.0% |
| Atco Ltd., Class A | | | 200 | | | | 6,531 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 1.5% |
| Imperial Oil Ltd. | | | 22,600 | | | | 800,041 | |
| Petro-Canada | | | 33,600 | | | | 840,558 | |
| | | | | | | | | |
| | | | | | | | 1,640,599 | |
| | | | | | | | | |
| | | | | | | | 5,709,447 | |
| | | | | | | | | |
| |
| |
CHINA 0.7%(a) |
Diversified Telecommunication Services 0.0% |
| China Telecom Corp. Ltd. | | | 6,000 | | | | 2,135 | |
| | | | | | | | | |
Metals & Mining 0.1% |
| Jiangxi Copper Co. Ltd. | | | 230,000 | | | | 113,071 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.6% |
| China Petroleum & Chemical Corp. | | | 996,000 | | | | 654,061 | |
| | | | | | | | | |
| | | | | | | | 769,267 | |
| | | | | | | | | |
| |
| |
FINLAND 0.9%(a) |
Communications Equipment 0.9% |
| Nokia OYJ | | | 67,200 | | | | 1,029,265 | |
| | | | | | | | | |
Paper & Forest Products 0.0% |
| Stora Enso OYJ, Class R | | | 3,100 | | | | 28,825 | |
| | | | | | | | | |
| | | | | | | | 1,058,090 | |
| | | | | | | | | |
| |
| |
FRANCE 14.6%(a) |
Auto Components 1.2% |
| Compagnie Generale des Etablissements Michelin, Class B | | | 26,700 | | | | 1,374,120 | |
| | | | | | | | | |
Automobiles 1.0% |
| Renault SA | | | 35,100 | | | | 1,075,615 | |
| | | | | | | | | |
Chemicals 0.3% |
| Arkema | | | 14,300 | | | | 327,265 | |
| | | | | | | | | |
Commercial Banks 4.9% |
| BNP Paribas | | | 32,660 | | | | 2,357,826 | |
| Credit Agricole SA | | | 125,050 | | | | 1,808,894 | |
| Societe Generale | | | 24,435 | | | | 1,331,678 | |
| | | | | | | | | |
| | | | | | | | 5,498,398 | |
| | | | | | | | | |
Diversified Telecommunication Services 1.0% |
| France Telecom SA | | | 43,000 | | | | 1,084,146 | |
| | | | | | | | | |
Media 1.1% |
| Lagardere SCA | | | 32,700 | | | | 1,300,005 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 2.9% |
| Total SA | | | 60,200 | | | | 3,311,432 | |
| | | | | | | | | |
| | | | | | | | | |
2008 Annual Report 9
Statement of Investments (Continued)
October 31, 2008
Nationwide International Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
FRANCE (continued) |
| | | | | | | | | |
Pharmaceuticals 2.2% |
| Sanofi-Aventis SA | | | 39,150 | | | $ | 2,480,148 | |
| | | | | | | | | |
| | | | | | | | 16,451,129 | |
| | | | | | | | | |
| |
| |
GERMANY 12.5%(a) |
Airline 1.0% |
| Deutsche Lufthansa AG | | | 80,300 | | | | 1,117,120 | |
| | | | | | | | | |
Capital Markets 1.5% |
| Deutsche Bank AG | | | 44,505 | | | | 1,691,177 | |
| | | | | | | | | |
Chemicals 2.2% |
| BASF SE | | | 68,600 | | | | 2,302,697 | |
| Lanxess | | | 11,500 | | | | 174,029 | |
| | | | | | | | | |
| | | | | | | | 2,476,726 | |
| | | | | | | | | |
Construction & Engineering 0.0% |
| Bilfinger Berger AG | | | 200 | | | | 9,047 | |
| | | | | | | | | |
Diversified Telecommunication Services 1.7% |
| Deutsche Telekom AG | | | 127,800 | | | | 1,897,413 | |
| | | | | | | | | |
Electric Utility 2.0% |
| E. ON AG | | | 57,960 | | | | 2,217,925 | |
| | | | | | | | | |
Food Products 0.3% |
| Suedzucker AG | | | 27,000 | | | | 300,130 | |
| | | | | | | | | |
Health Care Providers & Services 0.3% |
| Celesio AG | | | 13,700 | | | | 402,174 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.4% |
| TUI AG | | | 41,200 | | | | 495,978 | |
| | | | | | | | | |
Insurance 3.1% |
| Allianz SE | | | 23,570 | | | | 1,773,426 | |
| Muenchener Rueckversicherungs AG | | | 12,960 | | | | 1,716,603 | |
| | | | | | | | | |
| | | | | | | | 3,490,029 | |
| | | | | | | | | |
Multi-Utility 0.0% |
| RWE AG | | | 400 | | | | 33,259 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.0% |
| Infineon Technologies AG* | | | 5,400 | | | | 16,891 | |
| | | | | | | | | |
| | | | | | | | 14,147,869 | |
| | | | | | | | | |
| |
| |
HONG KONG 0.7%(a) |
Diversified Financial Services 0.0% |
| Guoco Group Ltd. | | | 2,000 | | | | 11,747 | |
| | | | | | | | | |
Real Estate Management & Development 0.1% |
| New World Development Ltd. | | | 113,000 | | | | 94,068 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.6% |
| Yue Yuen Industrial Holdings Ltd. | | | 322,000 | | | | 644,067 | |
| | | | | | | | | |
| | | | | | | | 749,882 | |
| | | | | | | | | |
| |
| |
ISRAEL 0.0% |
Wireless Telecommunication Services 0.0% |
| Cellcom Israel Ltd. | | | 200 | | | | 5,892 | |
| | | | | | | | | |
| |
| |
ITALY 3.7%(a) |
Diversified Telecommunication Services 1.2% |
| Telecom Italia SpA | | | 817,800 | | | | 939,354 | |
| Telecom Italia SpA — RSP | | | 433,300 | | | | 364,591 | |
| | | | | | | | | |
| | | | | | | | 1,303,945 | |
| | | | | | | | | |
Multi-Utility 0.6% |
| A2A SpA | | | 354,300 | | | | 645,681 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 1.9% |
| ENI SpA | | | 92,000 | | | | 2,195,619 | |
| | | | | | | | | |
| | | | | | | | 4,145,245 | |
| | | | | | | | | |
| |
| |
JAPAN 22.1%(a) |
Auto Components 0.0% |
| Takata Corp. | | | 400 | | | | 2,894 | |
| | | | | | | | | |
Automobiles 4.5% |
| Honda Motor Co. Ltd. | | | 64,000 | | | | 1,591,708 | |
| Nissan Motor Co. Ltd. | | | 340,100 | | | | 1,689,415 | |
| Toyota Motor Corp. | | | 45,500 | | | | 1,777,178 | |
| | | | | | | | | |
| | | | | | | | 5,058,301 | |
| | | | | | | | | |
Chemicals 1.4% |
| DIC Corp. | | | 179,000 | | | | 289,388 | |
| Mitsubishi Chemical Holdings Corp. | | | 315,000 | | | | 1,273,700 | |
| Tosoh Corp. | | | 3,000 | | | | 5,983 | |
| | | | | | | | | |
| | | | | | | | 1,569,071 | |
| | | | | | | | | |
Commercial Banks 0.9% |
| Sumitomo Mitsui Financial Group, Inc. | | | 253 | | | | 1,014,449 | |
| | | | | | | | | |
Computers & Peripherals 2.1% |
| Fujitsu Ltd. | | | 254,000 | | | | 998,881 | |
| Toshiba Corp. | | | 385,000 | | | | 1,391,833 | |
| | | | | | | | | |
| | | | | | | | 2,390,714 | |
| | | | | | | | | |
Consumer Finance 1.1% |
| ORIX Corp. | | | 12,470 | | | | 1,281,467 | |
| | | | | | | | | |
Diversified Telecommunication Services 1.1% |
| Nippon Telegraph & Telephone Corp. | | | 320 | | | | 1,306,096 | |
| | | | | | | | | |
Electric Utility 1.0% |
| Tokyo Electric Power Co., Inc. (The) | | | 41,100 | | | | 1,164,209 | |
| | | | | | | | | |
Electrical Equipment 0.3% |
| Furukawa Electric Co. Ltd. | | | 116,000 | | | | 350,480 | |
| | | | | | | | | |
| | | | | | | | | |
10 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
JAPAN (continued) |
| | | | | | | | | |
Electronic Equipment & Instruments 1.3% |
| Hitachi High-Technologies Corp. | | | 22,200 | | | $ | 360,140 | |
| Hitachi Ltd. | | | 226,000 | | | | 1,061,298 | |
| | | | | | | | | |
| | | | | | | | 1,421,438 | |
| | | | | | | | | |
Household Durables 0.8% |
| Sharp Corp. | | | 127,000 | | | | 906,616 | |
| | | | | | | | | |
Leisure Equipment & Products 0.4% |
| Namco Bandai Holdings, Inc. | | | 43,700 | | | | 449,476 | |
| | | | | | | | | |
Marine 0.4% |
| Mitsui OSK Lines Ltd. | | | 81,000 | | | | 423,061 | |
| | | | | | | | | |
Metals & Mining 2.8% |
| JFE Holdings, Inc. | | | 52,200 | | | | 1,332,174 | |
| Nippon Steel Corp. | | | 254,000 | | | | 855,116 | |
| Sumitomo Metal Mining Co. Ltd. | | | 90,000 | | | | 675,077 | |
| Yamato Kogyo Co. Ltd. | | | 10,800 | | | | 255,296 | |
| | | | | | | | | |
| | | | | | | | 3,117,663 | |
| | | | | | | | | |
Office Electronics 0.3% |
| Canon, Inc. | | | 10,800 | | | | 377,986 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.6% |
| Nippon Mining Holdings, Inc. | | | 215,000 | | | | 658,325 | |
| | | | | | | | | |
Road & Rail 1.1% |
| East Japan Railway Co. | | | 180 | | | | 1,281,141 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.1% |
| Elpida Memory, Inc.* | | | 24,300 | | | | 129,577 | |
| | | | | | | | | |
Trading Companies & Distributors 1.9% |
| Mitsubishi Corp. | | | 62,100 | | | | 1,041,122 | |
| Mitsui & Co. Ltd. | | | 109,000 | | | | 1,056,371 | |
| | | | | | | | | |
| | | | | | | | 2,097,493 | |
| | | | | | | | | |
| | | | | | | | 25,000,457 | |
| | | | | | | | | |
| |
| |
LUXEMBOURG 0.7%(a) |
Metals & Mining 0.7% |
| ArcelorMittal (XPAR) | | | 30,900 | | | | 803,599 | |
| | | | | | | | | |
| |
| |
NETHERLANDS 2.8%(a) |
Chemicals 0.8% |
| Koninklijke DSM NV | | | 30,700 | | | | 854,848 | |
| | | | | | | | | |
Diversified Financial Services 0.7% |
| ING Groep NV CVA | | | 87,900 | | | | 824,439 | |
| | | | | | | | | |
Food & Staples Retailing 1.3% |
| Koninklijke Ahold NV | | | 138,200 | | | | 1,483,459 | |
| | | | | | | | | |
| | | | | | | | 3,162,746 | |
| | | | | | | | | |
| |
| |
NEW ZEALAND 0.0%(a) |
Diversified Telecommunication Services 0.0% |
| Telecom Corp. of New Zealand Ltd. | | | 13,600 | | | | 18,291 | |
| | | | | | | | | |
| |
| |
NORWAY 1.8%(a) |
Metals & Mining 0.3% |
| Norsk Hydro ASA | | | 73,350 | | | | 306,673 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 1.5% |
| StatoilHydro ASA | | | 86,200 | | | | 1,734,902 | |
| | | | | | | | | |
| | | | | | | | 2,041,575 | |
| | | | | | | | | |
| |
| |
REPUBLIC OF KOREA 1.0% |
Commercial Banks 0.4% |
| Industrial Bank of Korea GDR(a) | | | 25,200 | | | | 144,876 | |
| KB Financial Group, Inc. ADR* | | | 11,700 | | | | 287,937 | |
| | | | | | | | | |
| | | | | | | | 432,813 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.6%(a) |
| Hynix Semiconductor, Inc. GDR* | | | 38,900 | | | | 294,223 | |
| Samsung Electronics Co. Ltd. GDR | | | 2,100 | | | | 433,545 | |
| | | | | | | | | |
| | | | | | | | 727,768 | |
| | | | | | | | | |
| | | | | | | | 1,160,581 | |
| | | | | | | | | |
| |
| |
RUSSIAN FEDERATION 1.4% |
Metals & Mining 0.7%(a) |
| JSC MMC Norilsk Nickel ADR | | | 75,350 | | | | 756,189 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.7% |
| LUKOIL ADR(a) | | | 20,360 | | | | 781,641 | |
| LUKOIL Holding ADR | | | 150 | | | | 5,820 | |
| | | | | | | | | |
| | | | | | | | 787,461 | |
| | | | | | | | | |
| | | | | | | | 1,543,650 | |
| | | | | | | | | |
| |
| |
SINGAPORE 0.3%(a) |
Marine 0.3% |
| Neptune Orient Lines Ltd. | | | 344,000 | | | | 290,643 | |
| | | | | | | | | |
| |
| |
SOUTH AFRICA 0.3% |
Commercial Banks 0.3%(a) |
| ABSA Group Ltd. | | | 37,400 | | | | 391,800 | |
| Standard Bank Group Ltd. | | | 0 | | | | 4 | |
| | | | | | | | | |
| | | | | | | | 391,804 | |
| | | | | | | | | |
Industrial Conglomerate 0.0% |
| Bidvest Group Ltd. | | | 295 | | | | 3,145 | |
| | | | | | | | | |
Metals & Mining 0.0%(a) |
| ArcelorMittal South Africa Ltd. | | | 600 | | | | 5,679 | |
| | | | | | | | | |
| | | | | | | | 400,628 | |
| | | | | | | | | |
| | | | | | | | | |
2008 Annual Report 11
Statement of Investments (Continued)
October 31, 2008
Nationwide International Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
SPAIN 0.7%(a) |
Oil, Gas & Consumable Fuels 0.7% |
| Repsol YPF SA | | | 43,200 | | | $ | 821,393 | |
| | | | | | | | | |
| |
| |
SWEDEN 2.7%(a) |
Commercial Banks 0.7% |
| Nordea Bank AB | | | 97,800 | | | | 784,304 | |
| | | | | | | | | |
Communications Equipment 1.1% |
| Telefonaktiebolaget LM Ericsson, Class B | | | 189,000 | | | | 1,287,296 | |
| | | | | | | | | |
Paper & Forest Products 0.9% |
| Svenska Cellulosa AB, Class B | | | 132,500 | | | | 978,963 | |
| | | | | | | | | |
| | | | | | | | 3,050,563 | |
| | | | | | | | | |
| |
| |
SWITZERLAND 3.9%(a) |
Capital Markets 1.8% |
| Credit Suisse Group AG | | | 53,100 | | | | 1,986,300 | |
| | | | | | | | | |
Pharmaceuticals 2.1% |
| Novartis AG | | | 46,620 | | | | 2,367,155 | |
| | | | | | | | | |
| | | | | | | | 4,353,455 | |
| | | | | | | | | |
| |
| |
TAIWAN 0.6% |
Computers & Peripherals 0.6%(a) |
| Compal Electronics, Inc. GDR | | | 862,645 | | | | 619,482 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.0% |
| United Microelectronics Corp. ADR | | | 11,182 | | | | 27,395 | |
| | | | | | | | | |
| | | | | | | | 646,877 | |
| | | | | | | | | |
| |
| |
THAILAND 0.5% |
Oil, Gas & Consumable Fuels 0.5% |
| PTT PCL | | | 73,400 | | | | 337,435 | |
| Thai Oil PCL | | | 297,700 | | | | 178,466 | |
| | | | | | | | | |
| | | | | | | | 515,901 | |
| | | | | | | | | |
| |
| |
UNITED KINGDOM 16.3%(a) |
Commercial Banks 2.0% |
| Barclays PLC | | | 138,700 | | | | 397,512 | |
| HBOS PLC | | | 597,712 | | | | 978,505 | |
| Royal Bank of Scotland Group PLC | | | 850,340 | | | | 936,467 | |
| | | | | | | | | |
| | | | | | | | 2,312,484 | |
| | | | | | | | | |
Food Products 0.9% |
| Associated British Foods PLC | | | 86,600 | | | | 968,806 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.6% |
| TUI Travel PLC | | | 203,700 | | | | 621,656 | |
| | | | | | | | | |
Media 0.1% |
| ITV PLC | | | 220,928 | | | | 106,678 | |
| Yell Group PLC | | | 9,670 | | | | 9,595 | |
| | | | | | | | | |
| | | | | | | | 116,273 | |
| | | | | | | | | |
Metals & Mining 0.0% |
| BHP Billiton PLC | | | 1,800 | | | | 30,559 | |
| Kazakhmys PLC | | | 1,600 | | | | 7,500 | |
| | | | | | | | | |
| | | | | | | | 38,059 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 7.2% |
| BP PLC | | | 428,400 | | | | 3,491,361 | |
| Royal Dutch Shell PLC, Class A | | | 168,300 | | | | 4,664,231 | |
| | | | | | | | | |
| | | | | | | | 8,155,592 | |
| | | | | | | | | |
Pharmaceuticals 2.9% |
| GlaxoSmithKline PLC | | | 169,900 | | | | 3,265,464 | |
| | | | | | | | | |
Wireless Telecommunication Services 2.6% |
| Vodafone Group PLC | | | 1,519,300 | | | | 2,922,086 | |
| | | | | | | | | |
| | | | | | | | 18,400,420 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 110,944,808 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Preferred Stocks 0.0%(a) |
| | | | | | | | | |
| | | | | | | | | |
REPUBLIC OF KOREA 0.0% |
| Samsung Electronics Co. Ltd. GDR | | | 100 | | | | 12,570 | |
| | | | | | | | | |
| | | | | |
Total Preferred Stocks | | | 12,570 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Rights 0.0%(a) |
| | | | | | | | | |
| | | | | | | | | |
BELGIUM 0.0% |
| Fortis | | | 67,100 | | | | 0 | |
| | | | | | | | | |
| | | | | |
Total Rights | | | 0 | |
| | | | | |
| | | | | | | | | |
12 Annual Report 2008
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 2.4% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $2,710,737, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $2,764,933 | | $ | 2,710,719 | | | | 2,710,719 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $188,563,101) (b) — 100.7% | | | 113,668,097 | |
Liabilities in excess of other assets — (0.7)% | | | | | | | (784,791 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 112,883,306 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | Fair Valued Security. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| ADR | | American Depositary Receipt |
| |
| GDR | | Global Depositary Receipt |
| |
| PLC | | Public Limited Company |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 13
Statement of Investments (Continued)
October 31, 2008
Nationwide International Value Fund (Continued)
At October 31, 2008, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Net Unrealized
|
| | | Delivery
| | Currency
| | Contract
| | Market
| | Appreciation/
|
| Currency | | Date | | (Delivered) | | Value | | Value | | (Depreciation) |
| |
Short Contracts: | | | | | | | | | | | | | | | | | | |
| Australia Dollar | | 12/15/08 | | $ | (8,430,000 | ) | | $ | (7,184,682 | ) | | $ | (5,575,480 | ) | | $ | 1,609,202 | |
| British Pound | | 12/15/08 | | | (621,000 | ) | | | (1,000,493 | ) | | | (996,407 | ) | | | 4,086 | |
| Canadian Dollar | | 12/15/08 | | | (4,934,283 | ) | | | (4,934,283 | ) | | | (5,173,373 | ) | | | (239,090 | ) |
| Euro | | 12/15/08 | | | (13,922,000 | ) | | | (18,189,801 | ) | | | (17,716,751 | ) | | | 473,050 | |
| Japanese Yen | | 12/15/08 | | | (2,725,837,000 | ) | | | (25,571,611 | ) | | | (27,739,965 | ) | | | (2,168,354 | ) |
| Norwegian Krone | | 12/15/08 | | | (38,494,000 | ) | | | (5,422,454 | ) | | | (5,700,624 | ) | | | (278,170 | ) |
| Swedish Krone | | 12/15/08 | | | (46,861,000 | ) | | | (6,185,736 | ) | | | (6,036,093 | ) | | | 149,643 | |
| Swiss Franc | | 12/15/08 | | | (5,666,000 | ) | | | (5,036,892 | ) | | | (4,892,053 | ) | | | 144,839 | |
| | | | | | | | | | | | | | | | | | | |
| Total Short Contracts | | $ | (73,525,952 | ) | | $ | (73,830,746 | ) | | $ | (304,794 | ) |
| | | | | | | | | | | | | |
Long Contracts: | | | | | | | | | | | | | | | | | | |
| Australia Dollar | | 12/15/08 | | $ | 8,430,000 | | | $ | 5,938,287 | | | $ | 5,575,480 | | | $ | (362,807 | ) |
| Euro | | 12/15/08 | | | 13,922,000 | | | | 19,779,080 | | | | 17,716,751 | | | | (2,062,329 | ) |
| Japanese Yen | | 12/15/08 | | | 2,919,270,000 | | | | 29,428,903 | | | | 29,708,471 | | | | 279,568 | |
| Norwegian Krone | | 12/15/08 | | | 38,494,000 | | | | 6,708,259 | | | | 5,700,624 | | | | (1,007,635 | ) |
| Swedish Krone | | 12/15/08 | | | 58,961,000 | | | | 8,736,840 | | | | 7,594,676 | | | | (1,142,164 | ) |
| Swiss Franc | | 12/15/08 | | | 1,194,000 | | | | 1,053,314 | | | | 1,030,906 | | | | (22,408 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total Long Contracts | | $ | 71,644,683 | | | $ | 67,326,908 | | | $ | (4,317,775 | ) |
| | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide International Value
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $185,852,382) | | | $ | 110,957,378 | |
| Repurchase agreements, at value and cost | | | | 2,710,719 | |
| | | | | | |
| Total Investments | | | | 113,668,097 | |
| | | | | | |
| Foreign currency, at value (cost $2,104,807) | | | | 2,086,838 | |
| Unrealized appreciation on forward foreign currency contracts | | | | 2,703,792 | |
| Interest and dividends receivable | | | | 471,330 | |
| Receivable for capital shares issued | | | | 49,586 | |
| Receivable for investments sold | | | | 1,308,214 | |
| Reclaims receivable | | | | 15,933 | |
| Prepaid expenses and other assets | | | | 76,730 | |
| | | | | | |
| Total Assets | | | | 120,380,520 | |
| | | | | | |
Liabilities: | | | | | |
| Unrealized depreciation on forward foreign currency contracts | | | | 7,336,049 | |
| Payable for capital shares redeemed | | | | 45,502 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 87,116 | |
| Fund administration fees | | | | 9,146 | |
| Distribution fees | | | | 16 | |
| Trustee fees | | | | 44 | |
| Custodian fees | | | | 515 | |
| Other | | | | 18,826 | |
| | | | | | |
| Total Liabilities | | | | 7,497,214 | |
| | | | | | |
Net Assets | | | $ | 112,883,306 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 195,380,604 | |
| Accumulated undistributed net investment income | | | | 4,632,257 | |
| Accumulated net realized losses from investment and foreign currency transactions | | | | (7,568,672 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (74,895,004 | ) |
| Net unrealized appreciation/(depreciation) from foreign currency contracts | | | | (4,632,257 | ) |
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | | | | (33,622 | ) |
| | | | | | |
Net Assets | | | $ | 112,883,306 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 45,597 | |
| Class C Shares | | | | 6,752 | |
| Institutional Service Class Shares | | | | 112,812,006 | |
| Institutional Class Shares | | | | 18,951 | |
| | | | | | |
| Total | | | $ | 112,883,306 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 15
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide International Value
| |
| | | | Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 9,206 | |
| Class C Shares | | | | 1,365 | |
| Institutional Service Class Shares | | | | 22,746,787 | |
| Institutional Class Shares | | | | 3,816 | |
| | | | | | |
| Total | | | | 22,761,174 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 4.95 | |
| Class C Shares (a) | | | $ | 4.95 | |
| Institutional Service Class Shares | | | $ | 4.96 | |
| Institutional Class Shares | | | $ | 4.97 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 5.25 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
16 Annual Report 2008
Statement of Operations
For the Period Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | International Value
| |
| | | Fund(a) | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 80,465 | |
| Dividend income | | | | 1,483,756 | |
| Foreign tax withholding | | | | (146,136 | ) |
| | | | | | |
| Total Income | | | | 1,418,085 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 540,217 | |
| Fund administration fees | | | | 62,680 | |
| Distribution fees Class A | | | | 78 | |
| Distribution fees Class C | | | | 74 | |
| Administrative servicing fees Class A | | | | 47 | |
| Administrative servicing fees Institutional Service Class | | | | 91,831 | |
| Registration and filing fees | | | | 22,258 | |
| Professional fees | | | | 18,960 | |
| Printing fees | | | | 6,102 | |
| Trustee fees | | | | 2,623 | |
| Compliance program costs (Note 3) | | | | 15 | |
| Custodian fees | | | | 22,959 | |
| Other | | | | 35,296 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 803,140 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (2,235 | ) |
| Expenses reimbursed by Advisor | | | | (70,312 | ) |
| | | | | | |
| Net Expenses | | | | 730,593 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 687,492 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (7,568,672 | ) |
| Net realized losses from foreign currency transactions | | | | (3,177,478 | ) |
| | | | | | |
| Net realized losses from investments and foreign currency transactions | | | | (10,746,150 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (74,895,004 | ) |
| Net change in unrealized appreciation/(depreciation) from foreign currency contracts | | | | (4,632,257 | ) |
| Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | | | | (33,622 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments, foreign currency contracts, and translation of assets and liabilities denominated in foreign currencies | | | | (79,560,883 | ) |
| | | | | | |
| Net realized/unrealized losses from investments and foreign currency transactions | | | | (90,307,033 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (89,619,541 | ) |
| | | | | | |
| | |
| (a) | | For the period from December 21, 2007 (commencement of operations) through October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 17
Statement of Changes in Net Assets
| | | | | | |
| | | | Nationwide International Value Fund | |
| | | | | |
| | | | Period Ended
| |
| | | | October 31,2008 (a) | |
| | | | | | |
Operations: | | | | | |
| Net investment income | | | $ | 687,492 | |
| Net realized losses from investment and foreign currency transactions | | | | (10,746,150 | ) |
| Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | | | | (79,560,883 | ) |
| | | | | | |
| Change in net assets resulting from operations | | | | (89,619,541 | ) |
| | | | | | |
| | | | | | |
Distributions to Shareholders From: | | | | | |
| Return of Capital: | | | | | |
| Class A | | | | (249 | ) |
| Class C | | | | (7 | ) |
| Institutional Service Class | | | | (21,383 | ) |
| Institutional Class | | | | (24,752 | ) |
| | | | | | |
| Change in net assets from shareholder distributions | | | | (46,391 | ) |
| | | | | | |
| Change in net assets from capital transactions | | | | 202,549,238 | |
| | | | | | |
| Change in net assets | | | | 112,883,306 | |
| | | | | | |
| | | | | | |
Net Assets: | | | | | |
| Beginning of period | | | | – | |
| End of period | | | $ | 112,883,306 | |
| | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 4,632,257 | |
| | | | | | |
CAPITAL TRANSACTIONS: | | | | | |
Class A Shares | | | | | |
| Proceeds from shares issued | | | $ | 100,580 | |
| Dividends reinvested | | | | 249 | |
| Cost of shares redeemed (b) | | | | (20,005 | ) |
| | | | | | |
| Total Class A | | | | 80,824 | |
| | | | | | |
Class C Shares | | | | | |
| Proceeds from shares issued | | | | 14,183 | |
| Dividends reinvested | | | | 7 | |
| Cost of shares redeemed | | | | (2,000 | ) |
| | | | | | |
| Total Class C | | | | 12,190 | |
| | | | | | |
Institutional Service Class Shares | | | | | |
| Proceeds from shares issued | | | | 216,913,134 | |
| Dividends reinvested | | | | 21,383 | |
| Cost of shares redeemed | | | | (15,112,050 | ) |
| | | | | | |
| Total Institutional Service Class | | | | 201,822,467 | |
| | | | | | |
| |
| (a) | For the period from December 21, 2007 (commencement of operations) through October 31, 2008.
|
| |
| (b) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
18 Annual Report 2008
| | | | | | |
| | | | Nationwide International Value Fund | |
| | | | | |
| | | | Period Ended
| |
| | | | October 31,2008 (a) | |
| | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | |
Institutional Class Shares | | | | | |
| Proceeds from shares issued | | | $ | 4,968,846 | |
| Dividends reinvested | | | | 24,751 | |
| Cost of shares redeemed | | | | (4,359,840 | ) |
| | | | | | |
| Total Institutional Class | | | | 633,757 | |
| | | | | | |
| Change in net assets from capital transactions: | | | $ | 202,549,238 | |
| | | | | | |
SHARE TRANSACTIONS: | | | | | |
Class A Shares | | | | | |
| Issued | | | | 11,563 | |
| Reinvested | | | | 28 | |
| Redeemed | | | | (2,385 | ) |
| | | | | | |
| Total Class A Shares | | | | 9,206 | |
| | | | | | |
Class C Shares | | | | | |
| Issued | | | | 1,839 | |
| Reinvested | | | | 1 | |
| Redeemed | | | | (475 | ) |
| | | | | | |
| Total Class C Shares | | | | 1,365 | |
| | | | | | |
Institutional Service Class Shares | | | | | |
| Issued | | | | 24,845,599 | |
| Reinvested | | | | 2,433 | |
| Redeemed | | | | (2,101,245 | ) |
| | | | | | |
| Total Institutional Service Class Shares | | | | 22,746,787 | |
| | | | | | |
Institutional Class Shares | | | | | |
| Issued | | | | 497,000 | |
| Reinvested | | | | 2,816 | |
| Redeemed | | | | (496,000 | ) |
| | | | | | |
| Total Institutional Class Shares | | | | 3,816 | |
| | | | | | |
| Total change in shares: | | | | 22,761,174 | |
| | | | | | |
| | |
| (a) | | For the period from December 21, 2007 (commencement of operations) through October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 19
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide International Value Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | | | | | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | | | | | | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | Portfolio
| | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Return of
| | | Total
| | | Redemption
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Turnover
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Capital | | | Distributions | | | Fees | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | 0 | .13 | | | | (5 | .23) | | | | (5 | .10) | | | | – | | | | | (0 | .04) | | | | (0 | .04) | | | | 0 | .09 | | | $ | 4 | .95 | | | | (50 | .26%) | | | $ | 45,597 | | | | | 1 | .38% | | | | 1 | .95% | | | | 1 | .98% | | | | 24 | .23% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | 0 | .13 | | | | (5 | .21) | | | | (5 | .08) | | | | – | | | | | (0 | .01) | | | | (0 | .01) | | | | 0 | .04 | | | $ | 4 | .95 | | | | (50 | .46%) | | | $ | 6,752 | | | | | 2 | .01% | | | | 1 | .90% | | | | 3 | .03% | | | | 24 | .23% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | 0 | .06 | | | | (5 | .05) | | | | (4 | .99) | | | | – | | | | | (0 | .05) | | | | (0 | .05) | | | | – | | | | $ | 4 | .96 | | | | (50 | .12%) | | | $ | 112,812,006 | | | | | 1 | .16% | | | | 0 | .97% | | | | 1 | .21% | | | | 24 | .23% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | 0 | .32 | | | | (5 | .30) | | | | (4 | .98) | | | | – | | | | | (0 | .05) | | | | (0 | .05) | | | | – | | | | $ | 4 | .97 | | | | (50 | .02%) | | | $ | 18,951 | | | | | 0 | .99% | | | | 4 | .09% | | | | 2 | .62% | | | | 24 | .23% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from December 21, 2007 (commencement of operations) through October 31, 2008. |
| (g) | Per share calculations were performed using average shares method. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
20 Annual Report 2008
| |
| Nationwide Large Cap Value Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Large Cap Value Fund (Class A at NAV) registered -33.74% versus -36.80% for its benchmark, the Russell 1000® Value Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Large-Cap Value Funds (consisting of 547 funds as of October 31, 2008) was -37.28% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s holdings were affected positively by superior stock selection within the financials and consumer discretionary sectors. Our emphasis on earnings-related factors aided the Fund in being able to add value amid the credit crisis. As a point of reference, the Fund’s financial holdings were down roughly 29% for the reporting period, as compared to a nearly 43% decline for the financial names within the benchmark index. Within the financials sector, we attribute the value added to the fact that the Fund owned a combination of some securities that were held in the benchmark index and others that were not held. From mid-January 2008 to the end of the reporting period, the Fund had no direct exposure to Fannie Mae or Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market), Lehman Brothers or Merrill Lynch & Co., Inc., all of which experienced historical levels of stock price destruction.
Three holdings that produced significant positive returns for the Fund during the reporting period were JP Morgan Chase & Co., Wells Fargo & Co. and BancorpSouth, Inc.; these three securities proved that the markets favored financial names positioned to weather the current financial storm. During the reporting period, market participants rewarded conservative management teams and adequate capital reserves – themes related to strong asset quality. On the consumer front, Big Lots, Inc. reported stronger-than-expected earnings as discounted clothing became a mainstay for increasingly cash-drained shoppers.
What areas of investment detracted from Fund performance?
Fund performance was negatively affected by holdings in The Manitowoc Co., Inc. and United States Steel Corp. Both companies were suffering from a combination of higher input costs and lower prices amid weakening end-demand that placed pressure on margins. In Manitowoc’s case, the company cited strong materials cost headwinds while demand for a segment of its cranes in Western Europe began to slow. United States Steel cited higher coal and labor costs while steel prices had begun to soften.
What is your outlook for the near term?
The financial market events and economic environment that prevailed during the end of the reporting period have served to heighten investors’ focus on the state of the macroeconomic environment and soundness of the underlying financial system, not only in the United States, but also across the globe. Investors are seeking better clarity on these topics, and the market’s volatility is unlikely to subside until greater levels of clarity are achieved. We do believe, however, that as the stock market tends to be forward looking, we expect the market’s recovery to occur before the headlines start to improve.
Subadviser:
NorthPointe Capital® LLC
Portfolio Managers:
Peter J. Cahill, CFA, Mary C. Champagne, CFA and Jeffrey C. Petherick, CFA
2008 Annual Report 21
| |
| Fund Performance | Nationwide Large Cap Value Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Class A | | w/o SC2 | | | -33.74% | | | | 2.17% | | | | 2.46% | | | | 1.42% | |
| | | w/SC3 | | | -37.57% | | | | 0.96% | | | | 1.85% | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -34.25% | | | | 1.51% | | | | 1.72% | | | | 2.06% | |
| | | w/SC4 | | | -37.13% | | | | 1.22% | | | | 1.72% | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -34.15% | | | | 1.55% | | | | 1.75% | | | | 2.06% | |
| | | w/SC6 | | | -34.73% | | | | 1.55% | | | | 1.75% | | | | | |
| |
| |
Class R7,8 | | | | | -33.73% | | | | 2.04% | | | | 1.99% | | | | 1.76% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on November 2, 1998. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares will invest in the same portfolio of securities as Class B shares. |
| |
| 8 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Large Cap Value Fund, the Russell 1000 Value Index (Russell 1000 Value)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell 1000 Value is an unmanaged index of large capitalization value securities of U.S. companies included in the Russel 1000 Value Index. The Russell 1000 Value Index offers investors access to the large-cap value segment of the U.S. equity universe. The Russell 1000 Value is constructed to provide a comprehensive and unbiased barometer of the large-cap value market |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
22 Annual Report 2008
| |
| Shareholder | Nationwide Large Cap Value Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Large Cap Value Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 731.92 | | | | 6.42 | | | | 1.48 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.72 | | | | 7.51 | | | | 1.48 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 728.58 | | | | 10.07 | | | | 2.32 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,013.49 | | | | 11.8 | | | | 2.32 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 729.85 | | | | 9.43 | | | | 2.17 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.23 | | | | 11.04 | | | | 2.17 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 732.65 | | | | 7.24 | | | | 1.66 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.78 | | | | 8.46 | | | | 1.66 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 23
| |
| Portfolio Summary | Nationwide Large Cap Value Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 99.6% | |
| Repurchase Agreement | | | 0.1% | |
| Other assets in excess of liabilities | | | 0.3% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Oil, Gas & Consumable Fuels | | | 15.3% | |
| Pharmaceuticals | | | 8.4% | |
| Diversified Financial Services | | | 7.6% | |
| Commercial Banks | | | 6.5% | |
| Diversified Telecommunication Services | | | 5.8% | |
| Insurance | | | 5.1% | |
| Industrial Conglomerates | | | 4.0% | |
| Household Products | | | 3.5% | |
| Capital Markets | | | 3.4% | |
| Electric Utilities | | | 3.3% | |
| Other | | | 37.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Exxon Mobil Corp. | | | 5.0% | |
| Chevron Corp. | | | 4.2% | |
| Johnson & Johnson | | | 3.9% | |
| AT&T, Inc. | | | 3.7% | |
| Procter & Gamble Co. | | | 3.5% | |
| General Electric Co. | | | 3.2% | |
| JPMorgan Chase & Co. | | | 3.0% | |
| Pfizer, Inc. | | | 3.0% | |
| Bank of America Corp. | | | 2.7% | |
| ConocoPhillips | | | 2.6% | |
| Other | | | 65.2% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
24 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Large Cap Value Fund
| | | | | | | | | |
| Common Stocks 99.6% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 1.7% |
| General Dynamics Corp. | | | 1,500 | | | $ | 90,480 | |
| Northrop Grumman Corp. | | | 3,800 | | | | 178,182 | |
| | | | | | | | | |
| | | | | | | | 268,662 | |
| | | | | | | | | |
| |
| |
Air Freight & Logistics 0.7% |
| FedEx Corp. | | | 1,600 | | | | 104,592 | |
| | | | | | | | | |
| |
| |
Airline 0.8% |
| Southwest Airlines Co. | | | 11,600 | | | | 136,648 | |
| | | | | | | | | |
| |
| |
Auto Components 0.2% |
| TRW Automotive Holdings Corp.* | | | 4,900 | | | | 30,968 | |
| | | | | | | | | |
| |
| |
Beverages 1.7% |
Coca-Cola Enterprises, Inc. | | | 9,300 | | | | 93,465 | |
| Dr. Pepper Snapple Group, Inc.* | | | 8,000 | | | | 183,200 | |
| | | | | | | | | |
| | | | | | | | 276,665 | |
| | | | | | | | | |
| |
| |
Biotechnology 1.4% |
| Amgen, Inc.* | | | 3,800 | | | | 227,582 | |
| | | | | | | | | |
| |
| |
Building Products 0.4% |
| Armstrong World Industries, Inc.* | | | 3,400 | | | | 66,742 | |
| | | | | | | | | |
| |
| |
Capital Markets 3.4% |
| Bank of New York Mellon Corp. (The) | | | 3,800 | | | | 123,880 | |
| Goldman Sachs Group, Inc. (The) | | | 1,300 | | | | 120,250 | |
| Morgan Stanley | | | 7,700 | | | | 134,519 | |
| State Street Corp. | | | 3,900 | | | | 169,065 | |
| | | | | | | | | |
| | | | | | | | 547,714 | |
| | | | | | | | | |
| |
| |
Chemicals 1.6% |
| Ashland, Inc. | | | 5,900 | | | | 133,281 | |
| Dow Chemical Co. (The) | | | 4,600 | | | | 122,682 | |
| | | | | | | | | |
| | | | | | | | 255,963 | |
| | | | | | | | | |
| |
| |
Commercial Banks 6.5% |
| BancorpSouth, Inc. | | | 4,500 | | | | 109,215 | |
| Bank of Hawaii Corp. | | | 2,900 | | | | 147,059 | |
| PNC Financial Services Group, Inc. | | | 2,700 | | | | 180,009 | |
| U.S. Bancorp | | | 5,800 | | | | 172,898 | |
| Valley National Bancorp | | | 4,500 | | | | 85,500 | |
| Wells Fargo & Co. | | | 10,300 | | | | 350,715 | |
| | | | | | | | | |
| | | | | | | | 1,045,396 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 0.7% |
| Copart, Inc.* | | | 3,300 | | | | 115,170 | |
| | | | | | | | | |
Computers & Peripherals 0.5% |
| Western Digital Corp.* | | | 4,500 | | | | 74,250 | |
| | | | | | | | | |
| |
| |
Consumer Finance 1.0% |
| Discover Financial Services | | | 7,000 | | | | 85,750 | |
| MasterCard, Inc., Class A | | | 500 | | | | 73,910 | |
| | | | | | | | | |
| | | | | | | | 159,660v | |
| | | | | | | | | |
| |
| |
Containers & Packaging 0.4% |
| Owens-Illinois, Inc.* | | | 2,900 | | | | 66,352 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 7.6% |
| Bank of America Corp. | | | 17,818 | | | | 430,661 | |
| Citigroup, Inc. | | | 13,360 | | | | 182,364 | |
| JPMorgan Chase & Co. | | | 11,728 | | | | 483,780 | |
| Nasdaq OMX Group, Inc. (The)* | | | 4,000 | | | | 129,840 | |
| | | | | | | | | |
| | | | | | | | 1,226,645 | |
| | | | | | | | | |
| |
| |
Diversified Telecommunication Services 5.8% |
| AT&T, Inc. | | | 22,452 | | | | 601,040 | |
| Verizon Communications, Inc. | | | 11,100 | | | | 329,337 | |
| | | | | | | | | |
| | | | | | | | 930,377 | |
| | | | | | | | | |
| |
| |
Electric Utilities 3.3% |
| American Electric Power Co., Inc. | | | 6,600 | | | | 215,358 | |
| Exelon Corp. | | | 2,600 | | | | 141,024 | |
| Hawaiian Electric Industries, Inc. | | | 6,700 | | | | 178,354 | |
| | | | | | | | | |
| | | | | | | | 534,736 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 0.7% |
| FLIR Systems, Inc.* | | | 3,500 | | | | 112,350 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 0.5% |
| National Oilwell Varco, Inc.* | | | 2,800 | | | | 83,692 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 1.6% |
| Wal-Mart Stores, Inc. | | | 4,500 | | | | 251,145 | |
| | | | | | | | | |
| |
| |
Food Products 2.6% |
| Archer-Daniels-Midland Co. | | | 5,900 | | | | 122,307 | |
| Campbell Soup Co. | | | 4,300 | | | | 163,185 | |
| Kraft Foods, Inc., Class A | | | 4,600 | | | | 134,044 | |
| | | | | | | | | |
| | | | | | | | 419,536 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 1.0% |
| St. Jude Medical, Inc.* | | | 4,200 | | | | 159,726 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 0.9% |
| CIGNA Corp. | | | 5,000 | | | | 81,500 | |
| McKesson Corp. | | | 1,700 | | | | 62,543 | |
| | | | | | | | | |
| | | | | | | | 144,043 | |
| | | | | | | | | |
| | | | | | | | | |
2008 Annual Report 25
Statement of Investments (Continued)
October 31, 2008
Nationwide Large Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.5% |
| Royal Caribbean Cruises Ltd. | | | 5,800 | | | $ | 78,648 | |
| | | | | | | | | |
| |
| |
Household Durables 0.9% |
| Mohawk Industries, Inc.* | | | 1,700 | | | | 82,246 | |
| Whirlpool Corp. | | | 1,200 | | | | 55,980 | |
| | | | | | | | | |
| | | | | | | | 138,226 | |
| | | | | | | | | |
| |
| |
Household Products 3.5% |
| Procter & Gamble Co. | | | 8,700 | | | | 561,498 | |
| | | | | | | | | |
| |
| |
Industrial Conglomerates 4.0% |
| Carlisle Cos., Inc. | | | 5,600 | | | | 130,200 | |
| General Electric Co. | | | 26,300 | | | | 513,113 | |
| | | | | | | | | |
| | | | | | | | 643,313 | |
| | | | | | | | | |
| |
| |
Insurance 5.1% |
| Allstate Corp. (The) | | | 3,400 | | | | 89,726 | |
| Assurant, Inc. | | | 3,400 | | | | 86,632 | |
| Chubb Corp. | | | 2,800 | | | | 145,096 | |
| Genworth Financial, Inc., Class A | | | 13,600 | | | | 65,824 | |
| Marsh & McLennan Cos., Inc. | | | 4,700 | | | | 137,804 | |
| Progressive Corp. (The) | | | 6,300 | | | | 89,901 | |
| Travelers Cos., Inc. (The) | | | 4,800 | | | | 204,240 | |
| | | | | | | | | |
| | | | | | | | 819,223 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 0.3% |
| eBay, Inc.* | | | 3,200 | | | | 48,864 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 0.9% |
| Hasbro, Inc. | | | 5,000 | | | | 145,350 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 0.4% |
| Invitrogen Corp.* | | | 2,500 | | | | 71,975 | |
| | | | | | | | | |
| |
| |
Machinery 0.6% |
| Manitowoc Co., Inc. (The) | | | 10,000 | | | | 98,400 | |
| | | | | | | | | |
| |
| |
Media 3.3% |
| Liberty Global, Inc., Class A* | | | 4,500 | | | | 74,205 | |
| News Corp., Class A | | | 10,200 | | | | 108,528 | |
| Time Warner, Inc. | | | 20,700 | | | | 208,863 | |
| Walt Disney Co. (The) | | | 5,400 | | | | 139,860 | |
| | | | | | | | | |
| | | | | | | | 531,456 | |
| | | | | | | | | |
| |
| |
Metals & Mining 0.8% |
| Commercial Metals Co. | | | 11,600 | | | | 128,760 | |
| | | | | | | | | |
| |
| |
Multi-Utility 2.5% |
| CMS Energy Corp. | | | 17,800 | | | | 182,450 | |
| MDU Resources Group, Inc. | | | 4,200 | | | | 76,482 | |
| SCANA Corp. | | | 4,500 | | | | 148,095 | |
| | | | | | | | | |
| | | | | | | | 407,027 | |
| | | | | | | | | |
Multiline Retail 0.7% |
| Target Corp. | | | 2,700 | | | | 108,324 | |
| | | | | | | | | |
| |
| |
Natural Gas Utility 0.6% |
| Questar Corp. | | | 2,600 | | | | 89,596 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 15.3% |
| Chevron Corp. | | | 9,100 | | | | 678,860 | |
| ConocoPhillips | | | 7,900 | | | | 410,958 | |
| Exxon Mobil Corp. | | | 10,900 | | | | 807,908 | |
| Hess Corp. | | | 2,000 | | | | 120,420 | |
| Occidental Petroleum Corp. | | | 3,400 | | | | 188,836 | |
| Plains Exploration & Production Co.* | | | 3,200 | | | | 90,240 | |
| Valero Energy Corp. | | | 7,400 | | | | 152,292 | |
| | | | | | | | | |
| | | | | | | | 2,449,514 | |
| | | | | | | | | |
| |
| |
Paper & Forest Products 0.6% |
| International Paper Co. | | | 5,500 | | | | 94,710 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 8.4% |
| Eli Lilly & Co. | | | 2,700 | | | | 91,314 | |
| Johnson & Johnson | | | 10,300 | | | | 631,802 | |
| Pfizer, Inc. | | | 26,800 | | | | 474,628 | |
| Wyeth | | | 4,800 | | | | 154,464 | |
| | | | | | | | | |
| | | | | | | | 1,352,208 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 2.6% |
| Brandywine Realty Trust | | | 7,800 | | | | 67,392 | |
| Plum Creek Timber Co., Inc. | | | 2,500 | | | | 93,200 | |
| Vornado Realty Trust | | | 1,800 | | | | 126,990 | |
| Weingarten Realty Investors | | | 6,000 | | | | 122,700 | |
| | | | | | | | | |
| | | | | | | | 410,282 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 0.5% |
| Intel Corp. | | | 5,000 | | | | 80,000 | |
| | | | | | | | | |
| |
| |
Software 0.5% |
| Symantec Corp.* | | | 6,900 | | | | 86,802 | |
| | | | | | | | | |
| |
| |
Specialty Retail 1.3% |
| Foot Locker, Inc. | | | 8,600 | | | | 125,732 | |
| Ltd Brands, Inc. | | | 7,000 | | | | 83,860 | |
| | | | | | | | | |
| | | | | | | | 209,592 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 0.6% |
| Hudson City Bancorp, Inc. | | | 4,800 | | | | 90,288 | |
| | | | | | | | | |
| |
| |
Tobacco 0.7% |
| Altria Group, Inc. | | | 5,900 | | | | 113,221 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 15,995,891 | |
| | | | | |
| | | | | | | | | |
26 Annual Report 2008
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 0.1% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $22,871, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $23,328 | | $ | 22,871 | | | $ | 22,871 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $20,925,413) (a) — 99.7% | | | 16,018,762 | |
Other assets in excess of liabilities — 0.3% | | | | | | | 41,228 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 16,059,990 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to statements of investments for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 27
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Large Cap Value Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $20,902,542) | | | $ | 15,995,891 | |
| Repurchase agreements, at value and cost | | | | 22,871 | |
| | | | | | |
| Total Investments | | | | 16,018,762 | |
| | | | | | |
| Interest and dividends receivable | | | | 27,522 | |
| Receivable for capital shares issued | | | | 13,212 | |
| Prepaid expenses and other assets | | | | 26,767 | |
| | | | | | |
| Total Assets | | | | 16,086,263 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for capital shares redeemed | | | | 1,588 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 5,437 | |
| Fund administration fees | | | | 1,667 | |
| Distribution fees | | | | 5,627 | |
| Administrative servicing fees | | | | 3,451 | |
| Trustee fees | | | | 92 | |
| Compliance program costs (Note 3) | | | | 132 | |
| Custodian fees | | | | 659 | |
| Other | | | | 7,620 | |
| | | | | | |
| Total Liabilities | | | | 26,273 | |
| | | | | | |
Net Assets | | | $ | 16,059,990 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 23,368,854 | |
| Accumulated undistributed net investment income | | | | 29,882 | |
| Accumulated net realized losses from investment transactions | | | | (2,432,095 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (4,906,651 | ) |
| | | | | | |
Net Assets | | | $ | 16,059,990 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 12,802,001 | |
| Class B Shares | | | | 765,344 | |
| Class C Shares | | | | 2,475,957 | |
| Class R Shares | | | | 16,688 | |
| | | | | | |
| Total | | | $ | 16,059,990 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 1,575,345 | |
| Class B Shares | | | | 96,074 | |
| Class C Shares | | | | 312,649 | |
| Class R Shares | | | | 2,099 | |
| | | | | | |
| Total | | | | 1,986,167 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.12 | (c) |
| Class B Shares (a) | | | $ | 7.95 | (c) |
| Class C Shares (b) | | | $ | 7.92 | |
| Class R Shares | | | $ | 7.95 | |
| |
| (a) | For Class B shares, the redemption price per share varies by the length of time shares are held.
|
| |
| (b) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year.
|
| |
| (c) | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
28 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Large Cap Value Fund | |
| | | | |
| | | | | | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 8.62 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 29
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Large Cap Value
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 3,277 | |
| Dividend income | | | | 720,865 | |
| Income from securities lending (Note 2) | | | | 2,500 | |
| | | | | | |
| Total Income | | | | 726,642 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 191,807 | |
| Fund administration fees | | | | 24,634 | |
| Distribution fees Class A | | | | 49,884 | |
| Distribution fees Class B | | | | 11,787 | |
| Distribution fees Class C | | | | 43,099 | |
| Distribution fees Class R | | | | 660 | |
| Administrative servicing fees Class A | | | | 17,806 | |
| Registration and filing fees | | | | 36,424 | |
| Professional fees | | | | 3,535 | |
| Printing fees | | | | 17,877 | |
| Trustee fees | | | | 1,382 | |
| Custodian fees | | | | 6,139 | |
| Other | | | | 21,053 | |
| | | | | | |
| Total expenses before waived expenses | | | | 426,087 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (1,101 | ) |
| Expenses reimbursed by Advisor | | | | (7,575 | ) |
| Administrator fees voluntarily waived | | | | (1,120 | ) |
| | | | | | |
| Net Expenses | | | | 416,291 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 310,351 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (2,353,586 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (7,971,346 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (10,324,932 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (10,014,581 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
30 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Large Cap Value Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 310,351 | | | | $ | 300,027 | |
| Net realized gains (losses) from investment transactions | | | | (2,353,586 | ) | | | | 3,931,401 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (7,971,346 | ) | | | | (1,393,236 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (10,014,581 | ) | | | | 2,838,192 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (249,388 | ) | | | | (330,936 | ) |
| Class B | | | | (7,605 | ) | | | | (9,029 | ) |
| Class C | | | | (24,880 | ) | | | | (40,742 | ) |
| Class R | | | | (1,633 | ) | | | | (1,473 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (3,004,510 | ) | | | | (3,197,730 | ) |
| Class B | | | | (176,185 | ) | | | | (228,171 | ) |
| Class C | | | | (673,857 | ) | | | | (885,577 | ) |
| Class R | | | | (17,357 | ) | | | | (18,516 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (4,155,415 | ) | | | | (4,712,174 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (8,273,011 | ) | | | | 9,068,720 | |
| | | | | | | | | | | |
| Change in net assets | | | | (22,443,007 | ) | | | | 7,194,738 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 38,502,997 | | | | | 31,308,259 | |
| | | | | | | | | | | |
| End of period | | | $ | 16,059,990 | | | | $ | 38,502,997 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 29,882 | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 3,276,935 | | | | $ | 18,594,136 | |
| Dividends reinvested | | | | 2,767,953 | | | | | 3,213,963 | |
| Cost of shares redeemed (a) | | | | (11,369,445 | ) | | | | (15,117,513 | ) |
| | | | | | | | | | | |
| Total Class A | | | | (5,324,557 | ) | | | | 6,690,586 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 69,443 | | | | | 450,762 | |
| Dividends reinvested | | | | 131,601 | | | | | 169,919 | |
| Cost of shares redeemed (a) | | | | (431,573 | ) | | | | (456,602 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (230,529 | ) | | | | 164,079 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 841,726 | | | | | 3,592,106 | |
| Dividends reinvested | | | | 188,786 | | | | | 256,897 | |
| Cost of shares redeemed (a) | | | | (3,680,070 | ) | | | | (1,797,260 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (2,649,558 | ) | | | | 2,051,743 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 31
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Large Cap Value Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 23,614 | | | | $ | 176,483 | |
| Dividends reinvested | | | | 18,990 | | | | | 19,989 | |
| Cost of shares redeemed (a) | | | | (110,971 | ) | | | | (34,160 | ) |
| | | | | | | | | | | |
| Total Class R | | | | (68,367 | ) | | | | 162,312 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (8,273,011 | ) | | | $ | 9,068,720 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 301,855 | | | | | 1,334,839 | |
| Reinvested | | | | 238,557 | | | | | 234,955 | |
| Redeemed | | | | (1,039,083 | ) | | | | (1,076,812 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (498,671 | ) | | | | 492,982 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 6,205 | | | | | 32,143 | |
| Reinvested | | | | 11,531 | | | | | 12,639 | |
| Redeemed | | | | (40,254 | ) | | | | (33,446 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (22,518 | ) | | | | 11,336 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 72,860 | | | | | 261,196 | |
| Reinvested | | | | 16,623 | | | | | 19,206 | |
| Redeemed | | | | (331,146 | ) | | | | (130,688 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (241,663 | ) | | | | 149,714 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 2,211 | | | | | 12,134 | |
| Reinvested | | | | 1,674 | | | | | 1,490 | |
| Redeemed | | | | (13,027 | ) | | | | (2,492 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | (9,142 | ) | | | | 11,132 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (771,994 | ) | | | | 665,164 | |
| | | | | | | | | | | |
| | |
| (a) | | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
32 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Large Cap Value Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a) | | | of Period | | | Net Assets | | | Net Assets | | | Net Assets (b) | | | Turnover (c) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 14 | .03 | | | | 0 | .15 | | | | (4 | .40) | | | | (4 | .25) | | | | (0 | .14) | | | | (1 | .52) | | | | (1 | .66) | | | $ | 8 | .12 | | | | (33 | .74%) | | | $ | 12,802,001 | | | | | 1 | .49% | | | | 1 | .39% | | | | 1 | .52% | | | | 116 | .40% | | |
| Year Ended October 31, 2007 (d) | | | $ | 15 | .02 | | | | 0 | .13 | | | | 1 | .05 | | | | 1 | .18 | | | | (0 | .16) | | | | (2 | .01) | | | | (2 | .17) | | | $ | 14 | .03 | | | | 8 | .38% | | | $ | 29,106,081 | | | | | 1 | .42% | | | | 0 | .90% | | | | 1 | .43% | | | | 88 | .20% | | |
| Year Ended October 31, 2006 | | | $ | 13 | .14 | | | | 0 | .17 | | | | 2 | .46 | | | | 2 | .63 | | | | (0 | .15) | | | | (0 | .60) | | | | (0 | .75) | | | $ | 15 | .02 | | | | 20 | .81% | | | $ | 23,752,997 | | | | | 1 | .44% | | | | 1 | .14% | | | | 1 | .44% | | | | 95 | .14% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .79 | | | | 0 | .15 | | | | 1 | .34 | | | | 1 | .49 | | | | (0 | .14) | | | | – | | | | | (0 | .14) | | | $ | 13 | .14 | | | | 12 | .63% | | | $ | 28,231,989 | | | | | 1 | .44% | | | | 1 | .09% | | | | 1 | .47% | | | | 67 | .00% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .44 | | | | 0 | .10 | | | | 1 | .35 | | | | 1 | .45 | | | | (0 | .10) | | | | – | | | | | (0 | .10) | | | $ | 11 | .79 | | | | 13 | .92% | | | $ | 24,845,846 | | | | | 1 | .39% | | | | 0 | .91% | | | | 1 | .45% | | | | 58 | .61% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 13 | .79 | | | | 0 | .08 | | | | (4 | .33) | | | | (4 | .25) | | | | (0 | .07) | | | | (1 | .52) | | | | (1 | .59) | | | $ | 7 | .95 | | | | (34 | .25%) | | | $ | 765,344 | | | | | 2 | .15% | | | | 0 | .72% | | | | 2 | .19% | | | | 116 | .40% | | |
| Year Ended October 31, 2007 (d) | | | $ | 14 | .80 | | | | 0 | .04 | | | | 1 | .04 | | | | 1 | .08 | | | | (0 | .08) | | | | (2 | .01) | | | | (2 | .09) | | | $ | 13 | .79 | | | | 7 | .68% | | | $ | 1,635,907 | | | | | 2 | .06% | | | | 0 | .27% | | | | 2 | .07% | | | | 88 | .20% | | |
| Year Ended October 31, 2006 | | | $ | 12 | .96 | | | | 0 | .07 | | | | 2 | .43 | | | | 2 | .50 | | | | (0 | .06) | | | | (0 | .60) | | | | (0 | .66) | | | $ | 14 | .80 | | | | 20 | .06% | | | $ | 1,587,540 | | | | | 2 | .05% | | | | 0 | .52% | | | | 2 | .06% | | | | 95 | .14% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .63 | | | | 0 | .06 | | | | 1 | .33 | | | | 1 | .39 | | | | (0 | .06) | | | | – | | | | | (0 | .06) | | | $ | 12 | .96 | | | | 11 | .97% | | | $ | 1,342,270 | | | | | 2 | .06% | | | | 0 | .46% | | | | 2 | .08% | | | | 67 | .00% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .30 | | | | 0 | .03 | | | | 1 | .33 | | | | 1 | .36 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 11 | .63 | | | | 13 | .25% | | | $ | 982,344 | | | | | 2 | .00% | | | | 0 | .29% | | | | 2 | .06% | | | | 58 | .61% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 13 | .72 | | | | 0 | .08 | | | | (4 | .30) | | | | (4 | .22) | | | | (0 | .06) | | | | (1 | .52) | | | | (1 | .58) | | | $ | 7 | .92 | | | | (34 | .15%) | | | $ | 2,475,957 | | | | | 2 | .15% | | | | 0 | .74% | | | | 2 | .19% | | | | 116 | .40% | | |
| Year Ended October 31, 2007 (d) | | | $ | 14 | .75 | | | | 0 | .03 | | | | 1 | .03 | | | | 1 | .06 | | | | (0 | .08) | | | | (2 | .01) | | | | (2 | .09) | | | $ | 13 | .72 | | | | 7 | .63% | | | $ | 7,606,296 | | | | | 2 | .07% | | | | 0 | .25% | | | | 2 | .07% | | | | 88 | .20% | | |
| Year Ended October 31, 2006 | | | $ | 12 | .91 | | | | 0 | .07 | | | | 2 | .43 | | | | 2 | .50 | | | | (0 | .06) | | | | (0 | .60) | | | | (0 | .66) | | | $ | 14 | .75 | | | | 20 | .11% | | | $ | 5,966,114 | | | | | 2 | .06% | | | | 0 | .52% | | | | 2 | .06% | | | | 95 | .14% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .60 | | | | 0 | .06 | | | | 1 | .33 | | | | 1 | .39 | | | | (0 | .08) | | | | – | | | | | (0 | .08) | | | $ | 12 | .91 | | | | 11 | .98% | | | $ | 4,888,490 | | | | | 2 | .06% | | | | 0 | .34% | | | | 2 | .07% | | | | 67 | .00% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .28 | | | | 0 | .03 | | | | 1 | .33 | | | | 1 | .36 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 11 | .60 | | | | 13 | .25% | | | $ | 743,420 | | | | | 2 | .00% | | | | 0 | .21% | | | | 2 | .06% | | | | 58 | .61% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 13 | .76 | | | | 0 | .13 | | | | (4 | .29) | | | | (4 | .16) | | | | (0 | .13) | | | | (1 | .52) | | | | (1 | .65) | | | $ | 7 | .95 | | | | (33 | .73%) | | | $ | 16,688 | | | | | 1 | .65% | | | | 1 | .21% | | | | 1 | .72% | | | | 116 | .40% | | |
| Year Ended October 31, 2007 (d) | | | $ | 14 | .81 | | | | 0 | .07 | | | | 1 | .03 | | | | 1 | .10 | | | | (0 | .14) | | | | (2 | .01) | | | | (2 | .15) | | | $ | 13 | .76 | | | | 7 | .91% | | | $ | 154,713 | | | | | 1 | .70% | | | | 0 | .51% | | | | 1 | .71% | | | | 88 | .20% | | |
| Year Ended October 31, 2006 | | | $ | 12 | .97 | | | | 0 | .14 | | | | 2 | .44 | | | | 2 | .58 | | | | (0 | .14) | | | | (0 | .60) | | | | (0 | .74) | | | $ | 14 | .81 | | | | 20 | .69% | | | $ | 1,608 | | | | | 1 | .57% | | | | 1 | .00% | | | | 1 | .59% | | | | 95 | .14% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .64 | | | | 0 | .15 | | | | 1 | .33 | | | | 1 | .48 | | | | (0 | .15) | | | | – | | | | | (0 | .15) | | | $ | 12 | .97 | | | | 12 | .73% | | | $ | 1,333 | | | | | 1 | .33% | | | | 1 | .18% | | | | 1 | .38% | | | | 67 | .00% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .31 | | | | 0 | .08 | | | | 1 | .33 | | | | 1 | .41 | | | | (0 | .08) | | | | – | | | | | (0 | .08) | | | $ | 11 | .64 | | | | 13 | .71% | | | $ | 1,181 | | | | | 1 | .54% | | | | 0 | .75% | | | | 1 | .86% | | | | 58 | .61% | | |
| |
| (a) | Excludes sales charge. |
| (b) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (c) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (d) | Per share calculations were performed using average shares method. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an intergral part of these financial statements.
2008 Annual Report 33
| |
| Nationwide Micro Cap Equity Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Micro Cap Equity Fund (Class A at NAV) registered -51.57% versus -44.62% for its benchmark, the Russell Microcaptm Growth Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Small-Cap Core Funds (consisting of 779 funds as of October 31, 2008) was -36.97% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The sectors that benefited the Fund during the reporting period included financials and telecommunication services. Individual standouts included CryoLife, Inc.; TeleCommunication Systems, Inc. and I-trax, Inc. Health-care equipment provider CryoLife manufactures medical devices for cryopreservation (the process of freezing tissue for storage and later use). The company benefited from increased adoption of its technologically advanced products. Technology provider TeleCommunication Systems develops network applications that enable the delivery of text messages; the company benefited from the dramatic growth in the use of text messaging. I-trax is a provider of worksite health-care facilities; Walgreen Co. acquired I-trax during the reporting period.
What areas of investment detracted from Fund performance?
With respect to sectors, the Fund’s positions within the technology and industrials sectors proved to be the largest detractors from Fund performance. Within technology, the Fund was overweight in the semiconductor & semiconductor equipment industry, which was one of the sector’s worst performers. In the industrials sector, the Fund was overweight in the machinery industry, which proved to be the worst relative performer in the sector. In each of these sectors, however, we have identified very strong companies with attractive valuations that we believe will be good longer-term holdings. We recognize that we may be early with our estimations, but as we look at the solid future growth prospects of the Fund’s holdings into 2009, we believe our stock selections are prudent ones. On a stock-specific level, the most significant detractors from Fund performance were industrials holding Britannia Bulk Holdings Inc. and technology stocks BTU International, Inc. and Ultra Clean Holdings, Inc. Britannia Bulk Holdings provides dry-bulk shipping and logistics services in the Baltic region. The company experienced a decrease in utilization due to the global economic slowdown. BTU International and Ultra Clean Holdings are both suppliers of semiconductor capital equipment. Both companies were affected by the slowdown in corporate capital expenditures resulting from the economic downturn.
What is your outlook for the near term?
Global financial markets are under unprecedented levels of distress. Consequently, the visibility into the near term is extremely limited. The long-term historical track record of equities, however, and especially small-capitalization stocks, bodes well for the future. We believe that the key to success is adhering to a disciplined investment approach focused on earnings, the primary driver of price appreciation. Our approach is to apply a rigorous investment process that indentifies best-in-class companies with solid fundamentals. This has been a hallmark of our investment style for many years, regardless of prevailing market conditions.
Subadviser:
NorthPointe Capital® LLC
Portfolio Manager:
Carl Wilk, CFP
34 Annual Report 2008
| |
| Fund Performance | Nationwide Micro Cap Equity Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Class A | | w/o SC2 | | | -51.57% | | | | -3.45% | | | | 4.66% | | | | 1.77% | |
| | | w/SC3 | | | -54.37% | | | | -4.59% | | | | 3.68% | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -52.04% | | | | -4.19% | | | | 3.85% | | | | 2.50% | |
| | | w/SC4 | | | -53.87% | | | | -4.39% | | | | 3.85% | | | | | |
| |
| |
| Class C | | w/o SC2 | | | -51.92% | | | | -4.15% | | | | 3.91% | | | | 2.50% | |
| | | w/SC5 | | | -52.29% | | | | -4.15% | | | | 3.91% | | | | | |
| |
| |
Class R6,7 | | | | | -51.77% | | | | -3.77% | | | | 4.21% | | | | 2.20% | |
| |
| |
Institutional Service Class7 | | | | | -51.44% | | | | -3.20% | | | | 4.92% | | | | 1.50% | |
| |
| |
Institutional Class7 | | | | | -51.40% | | | | -3.17% | | | | 4.95% | | | | 1.50% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on June 27, 2002. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 6 | | These returns until the creation of Class R shares (12/30/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares. |
| |
| 7 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Micro Cap Equity Fund, the Russell Microcap Growth Index(a) and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell Microcap Growth Index is an unmanaged index that provides a measurement of the performance of the micro-cap growth segment of the U.S. equity market, such as micro-cap companies with higher price-to-book ratios and higher forecasted growth values. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 35
| |
| Shareholder | Nationwide Micro Cap Equity Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Micro Cap Equity Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 650.99 | | | | 7.99 | | | | 1.92 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,015.46 | | | | 9.80 | | | | 1.92 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 646.89 | | | | 12.11 | | | | 2.93 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,010.43 | | | | 14.89 | | | | 2.93 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 648.54 | | | | 10.80 | | | | 2.61 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,012.03 | | | | 13.27 | | | | 2.61 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 649.67 | | | | 9.16 | | | | 2.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.03 | | | | 11.25 | | | | 2.21 | |
| |
| |
| Institutional Service Class | | | Actual | | | | 1,000.00 | | | | 651.68 | | | | 6.67 | | | | 1.61 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.06 | | | | 8.18 | | | | 1.61 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 652.56 | | | | 6.36 | | | | 1.53 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.44 | | | | 7.79 | | | | 1.53 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
36 Annual Report 2008
| |
| Portfolio Summary | Nationwide Micro Cap Equity Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 99.5% | |
| Repurchase Agreement* | | | 1.9% | |
| Liabilities in excess of other assets** | | | -1.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Health Care Equipment & Supplies | | | 10.7% | |
| Semiconductors & Semiconductor Equipment | | | 10.4% | |
| Software | | | 9.0% | |
| Electronic Equipment & Instruments | | | 5.8% | |
| Health Care Providers & Services | | | 5.4% | |
| Textiles, Apparel & Luxury Goods | | | 4.9% | |
| Machinery | | | 4.6% | |
| Commercial Banks | | | 4.4% | |
| Internet Software & Services | | | 4.4% | |
| Road & Rail | | | 3.7% | |
| Other | | | 36.7% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings*** | | |
| |
| CryoLife, Inc. | | | 2.7% | |
| TeleCommunication Systems, Inc., Class A | | | 2.6% | |
| Neogen Corp. | | | 2.6% | |
| NVE Corp. | | | 2.5% | |
| NCI, Inc., Class A | | | 2.3% | |
| Globecomm Systems, Inc. | | | 2.3% | |
| Web.com Group, Inc. | | | 2.3% | |
| PC Mall, Inc. | | | 2.3% | |
| Celadon Group, Inc. | | | 2.2% | |
| DivX, Inc. | | | 2.1% | |
| Other | | | 76.1% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | Includes value of collateral received from securities lending. |
| |
| ** | | Includes value of collateral owed from securities lending. |
| |
| *** | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
2008 Annual Report 37
Statement of Investments
October 31, 2008
Nationwide Micro Cap Equity Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 99.5% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 1.9% |
| LMI Aerospace, Inc.* | | | 21,417 | | | $ | 327,038 | |
| | | | | | | | | |
| |
| |
Air Freight & Logistics 2.0% |
| Dynamex, Inc.* | | | 14,000 | | | | 341,740 | |
| | | | | | | | | |
| |
| |
Commercial Banks 4.4% |
| Cardinal Financial Corp. | | | 44,700 | | | | 278,928 | |
| Provident Bankshares Corp. | | | 26,900 | | | | 287,023 | |
| Superior Bancorp* | | | 35,075 | | | | 193,965 | |
| | | | | | | | | |
| | | | | | | | 759,916 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 2.8% |
| GP Strategies Corp.* | | | 57,000 | | | | 343,140 | |
| Hill International, Inc.* | | | 21,836 | | | | 137,130 | |
| | | | | | | | | |
| | | | | | | | 480,270 | |
| | | | | | | | | |
| |
| |
Communications Equipment 2.3% |
| Globecomm Systems, Inc.* | | | 50,000 | | | | 394,000 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 2.8% |
| Super Micro Computer, Inc.* | | | 33,700 | | | | 211,636 | |
| TransAct Technologies, Inc.* | | | 39,600 | | | | 277,200 | |
| | | | | | | | | |
| | | | | | | | 488,836 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 2.1% |
| Medallion Financial Corp. | | | 43,976 | | | | 355,766 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 2.8% |
| BTU International, Inc.* | | | 41,342 | | | | 205,056 | |
| LaBarge, Inc.* | | | 20,100 | | | | 276,375 | |
| | | | | | | | | |
| | | | | | | | 481,431 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 5.8% |
| Iteris, Inc.* | | | 220,000 | | | | 327,800 | |
| PC Mall, Inc.* | | | 86,905 | | | | 389,334 | |
| Spectrum Control, Inc.* | | | 46,900 | | | | 292,187 | |
| | | | | | | | | |
| | | | | | | | 1,009,321 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 3.2% |
| ENGlobal Corp.* | | | 60,700 | | | | 266,473 | |
| OMNI Energy Services Corp.* | | | 100,000 | | | | 225,000 | |
| TGC Industries, Inc.* | | | 27,056 | | | | 60,876 | |
| | | | | | | | | |
| | | | | | | | 552,349 | |
| | | | | | | | | |
| |
| |
Food Products 1.0% |
| Omega Protein Corp.* | | | 24,600 | | | | 181,548 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 10.7% |
| Anika Therapeutics, Inc.* | | | 47,400 | | | | 285,822 | |
| CryoLife, Inc.* | | | 35,000 | | | | 469,000 | |
| Neogen Corp.* | | | 15,000 | | | | 442,050 | |
| Rockwell Medical Technologies, Inc.*(a) | | | 42,249 | | | | 107,312 | |
| ThermoGenesis Corp.* | | | 300,000 | | | | 315,000 | |
| Trinity Biotech PLC ADR – IE* | | | 101,100 | | | | 225,453 | |
| | | | | | | | | |
| | | | | | | | 1,844,637 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 5.4% |
| Allied Healthcare International, Inc.* | | | 250,000 | | | | 362,500 | |
| Bio-Reference Labs, Inc.* | | | 14,100 | | | | 346,719 | |
| Health Grades, Inc.* | | | 105,500 | | | | 226,825 | |
| | | | | | | | | |
| | | | | | | | 936,044 | |
| | | | | | | | | |
| |
| |
Health Care Technology 2.0% |
| Transcend Services, Inc.* | | | 30,000 | | | | 339,000 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 1.1% |
| Famous Dave’s of America, Inc.* | | | 44,600 | | | | 186,874 | |
| | | | | | | | | |
| |
| |
Information Technology Services 2.3% |
| NCI, Inc., Class A* | | | 17,000 | | | | 404,600 | |
| | | | | | | | | |
| |
| |
Insurance 1.6% |
| 21st Century Holding Co. | | | 50,000 | | | | 271,000 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 4.4% |
| DivX, Inc.* | | | 52,300 | | | | 365,054 | |
| Web.com Group, Inc.* | | | 80,000 | | | | 392,800 | |
| | | | | | | | | |
| | | | | | | | 757,854 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 1.4% |
| Summer Infant, Inc.* | | | 60,800 | | | | 241,376 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 1.5% |
| MEDTOX Scientific, Inc.* | | | 26,000 | | | | 256,100 | |
| | | | | | | | | |
| |
| |
Machinery 4.6% |
| China Fire & Security Group, Inc.*(a) | | | 25,566 | | | | 219,868 | |
| Flow International Corp.* | | | 83,600 | | | | 321,024 | |
| Titan Machinery, Inc.* | | | 20,971 | | | | 259,621 | |
| | | | | | | | | |
| | | | | | | | 800,513 | |
| | | | | | | | | |
| |
| |
Marine 1.3% |
| Horizon Lines, Inc., Class A | | | 47,507 | | | | 222,808 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 1.6% |
| Abraxas Petroleum Corp.* | | | 124,800 | | | | 274,560 | |
| | | | | | | | | |
| |
| |
Road & Rail 3.7% |
| Celadon Group, Inc.* | | | 34,900 | | | | 373,081 | |
| USA Truck, Inc.* | | | 18,700 | | | | 276,199 | |
| | | | | | | | | |
| | | | | | | | 649,280 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 10.4% |
| Amtech Systems, Inc.* | | | 50,000 | | | | 320,500 | |
| AXT, Inc.* | | | 91,360 | | | | 145,262 | |
38 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Semiconductors & Semiconductor Equipment (continued) |
| | | | | | | | | |
| EMCORE Corp.* | | | 82,510 | | | $ | 293,736 | |
| NVE Corp.* | | | 15,000 | | | | 423,750 | |
| Pericom Semiconductor Corp.* | | | 20,000 | | | | 156,000 | |
| Techwell, Inc.* | | | 40,000 | | | | 350,400 | |
| Ultra Clean Holdings, Inc.* | | | 36,608 | | | | 110,556 | |
| | | | | | | | | |
| | | | | | | | 1,800,204 | |
| | | | | | | | | |
| |
| |
Software 9.0% |
| Double-Take Software, Inc.* | | | 20,948 | | | | 155,015 | |
| Radiant Systems, Inc.* | | | 53,699 | | | | 282,994 | |
| Smith Micro Software, Inc.* | | | 56,182 | | | | 351,137 | |
| TeleCommunication Systems, Inc., Class A* | | | 65,000 | | | | 447,200 | |
| Versant Corp.* | | | 20,000 | | | | 319,800 | |
| | | | | | | | | |
| | | | | | | | 1,556,146 | |
| | | | | | | | | |
| |
| |
Specialty Retail 2.5% |
| Lumber Liquidators, Inc.* | | | 19,100 | | | | 159,103 | |
| Wet Seal, Inc. (The), Class A* | | | 95,300 | | | | 280,182 | |
| | | | | | | | | |
| | | | | | | | 439,285 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 4.9% |
| Fuqi International, Inc.* | | | 41,500 | | | | 328,265 | |
| G-III Apparel Group Ltd.* | | | 24,000 | | | | 331,440 | |
| Volcom, Inc.* | | | 14,000 | | | | 181,020 | |
| | | | | | | | | |
| | | | | | | | 840,725 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 17,193,221 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 1.9%(b) |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| Barclays Capital, 0.25%, dated 10/31/08, due 11/03/08, repurchase price $318,793 collateralized by U.S. Government Agency Mortgages ranging 3.15% — 5.40%, maturing 03/31/09 — 12/14/22; total market value of $325,162 | | $ | 318,786 | | | $ | 318,786 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $26,757,298) (c) — 101.4% | | | 17,512,007 | |
Liabilities in excess of other assets — (1.4)% | | | | | | | (237,135 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 17,274,872 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | The security or a partial position of this security is on loan at October 31, 2008. The total value of securities on loan at October 31, 2008 was $316,656. |
| |
| (b) | | The security was purchased with cash collateral held from securities on loan (See Note 2). The total value of this security as of October 31, 2008 was $318,786. |
| |
| (c) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| ADR | | American Depositary Receipt |
| |
| IE | | Ireland |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 39
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Micro Cap Equity Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $26,438,512)* | | | $ | 17,193,221 | |
| Repurchase agreements, at value and cost | | | | 318,786 | |
| | | | | | |
| Total Investments | | | | 17,512,007 | |
| | | | | | |
| Interest and dividends receivable | | | | 21,382 | |
| Receivable for capital shares issued | | | | 5,724 | |
| Receivable for investments sold | | | | 426,144 | |
| Prepaid expenses and other assets | | | | 38,039 | |
| | | | | | |
| Total Assets | | | | 18,003,296 | |
| | | | | | |
Liabilities: | | | | | |
| Cash overdraft | | | | 113,530 | |
| Payable for investments purchased | | | | 234,559 | |
| Payable for capital shares redeemed | | | | 13,383 | |
| Payable upon return of securities loaned (Note 2) | | | | 318,786 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 12,098 | |
| Fund administration fees | | | | 1,888 | |
| Distribution fees | | | | 7,529 | |
| Administrative servicing fees | | | | 8,463 | |
| Trustee fees | | | | 95 | |
| Compliance program costs (Note 3) | | | | 248 | |
| Custodian fees | | | | 396 | |
| Other | | | | 17,449 | |
| | | | | | |
| Total Liabilities | | | | 728,424 | |
| | | | | | |
Net Assets | | | $ | 17,274,872 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 42,301,863 | |
| Accumulated undistributed net investment loss | | | | – | |
| Accumulated net realized losses from investment transactions | | | | (15,781,700 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (9,245,291 | ) |
| | | | | | |
Net Assets | | | $ | 17,274,872 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 9,122,405 | |
| Class B Shares | | | | 1,208,957 | |
| Class C Shares | | | | 4,772,588 | |
| Class R Shares | | | | 748 | |
| Institutional Service Class Shares | | | | 160,474 | |
| Institutional Class Shares | | | | 2,009,700 | |
| | | | | | |
| Total | | | $ | 17,274,872 | |
| | | | | | |
| |
| * | Includes value of securities on loan of $316,656 (Note 2). |
The accompanying notes are an integral part of these financial statements.
40 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Micro Cap Equity Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 1,266,677 | |
| Class B Shares | | | | 181,327 | |
| Class C Shares | | | | 714,519 | |
| Class R Shares | | | | 109 | |
| Institutional Service Class Shares | | | | 21,710 | |
| Institutional Class Shares | | | | 271,757 | |
| | | | | | |
| Total | | | | 2,456,099 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.20 | |
| Class B Shares (a) | | | $ | 6.65 | (c) |
| Class C Shares (b) | | | $ | 6.68 | |
| Class R Shares | | | $ | 6.88 | (c) |
| Institutional Service Class Shares | | | $ | 7.39 | |
| Institutional Class Shares | | | $ | 7.40 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.64 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 41
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Micro Cap Equity
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 41,564 | |
| Dividend income | | | | 129,096 | |
| Income from securities lending (Note 2) | | | | 75,374 | |
| | | | | | |
| Total Income | | | | 246,034 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 467,607 | |
| Fund administration fees | | | | 34,037 | |
| Distribution fees Class A | | | | 43,374 | |
| Distribution fees Class B | | | | 26,434 | |
| Distribution fees Class C | | | | 102,297 | |
| Distribution fees Class R | | | | 6 | |
| Administrative servicing fees Class A | | | | 560 | |
| Administrative servicing fees Class R | | | | 1 | |
| Registration and filing fees | | | | 29,624 | |
| Professional fees | | | | 4,110 | |
| Printing fees | | | | 49,175 | |
| Accounting and transfer agent fees | | | | 71,661 | |
| Trustee fees | | | | 1,960 | |
| Custodian fees | | | | 3,503 | |
| Other | | | | 2,041 | |
| | | | | | |
| Total expenses before waived expenses | | | | 836,390 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (2,681 | ) |
| Expenses reimbursed by Advisor | | | | (44,254 | ) |
| Administrator fees voluntarily waived | | | | (1,785 | ) |
| | | | | | |
| Net Expenses | | | | 787,670 | |
| | | | | | |
NET INVESTMENT LOSS | | | | (541,636 | ) |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (14,975,481 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (11,556,814 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (26,532,295 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (27,073,931 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
42 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Micro Cap Equity Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment loss | | | $ | (541,636 | ) | | | $ | (1,337,750 | ) |
| Net realized gains (losses) from investment transactions | | | | (14,975,481 | ) | | | | 12,692,008 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (11,556,814 | ) | | | | (6,588,589 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (27,073,931 | ) | | | | 4,765,669 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (4,743,639 | ) | | | | (14,026,497 | ) |
| Class B | | | | (920,084 | ) | | | | (1,787,139 | ) |
| Class C | | | | (3,523,669 | ) | | | | (9,072,303 | ) |
| Class R | | | | (320 | ) | | | | (23,265 | ) |
| Institutional Service Class | | | | (70,916 | ) | | | | (79,197 | ) |
| Institutional Class | | | | (3,135,746 | ) | | | | (3,245,845 | ) |
| Return of Capital: | | | | | | | | | | |
| Class A | | | | (1 | ) | | | | | |
| Class C | | | | (1 | ) | | | | | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (12,394,376 | ) | | | | (28,234,246 | ) |
| Change in net assets from capital transactions | | | | (13,478,423 | ) | | | | (22,533,360 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (52,946,730 | ) | | | | (46,001,937 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 70,221,602 | | | | | 116,223,539 | |
| | | | | | | | | | | |
| End of period | | | $ | 17,274,872 | | | | $ | 70,221,602 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | — | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 9,661,423 | | | | $ | 8,135,546 | |
| Dividends reinvested | | | | 2,208,705 | | | | | 5,357,309 | |
| Cost of shares redeemed (a) | | | | (15,264,328 | ) | | | | (29,683,765 | ) |
| | | | | | | | | | | |
| Total Class A | | | | (3,394,200 | ) | | | | (16,190,910 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 461,207 | | | | | 964,798 | |
| Dividends reinvested | | | | 427,538 | | | | | 695,133 | |
| Cost of shares redeemed (a) | | | | (1,772,610 | ) | | | | (2,408,742 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (883,865 | ) | | | | (748,811 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,327,486 | | | | | 5,758,916 | |
| Dividends reinvested | | | | 1,264,777 | | | | | 2,915,454 | |
| Cost of shares redeemed (a) | | | | (7,827,123 | ) | | | | (17,243,916 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (4,234,860 | ) | | | | (8,569,546 | ) |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 43
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Micro Cap Equity Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | – | | | | $ | 112,535 | |
| Dividends reinvested | | | | 320 | | | | | 374 | |
| Cost of shares redeemed | | | | – | | | | | (91,227 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 320 | | | | | 21,682 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 25,361 | | | | | 19,525 | |
| Dividends reinvested | | | | 70,916 | | | | | 79,196 | |
| Cost of shares redeemed | | | | (41,686 | ) | | | | (9 | ) |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 54,591 | | | | | 98,712 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,440,664 | | | | | 6,726,807 | |
| Dividends reinvested | | | | 3,135,746 | | | | | 3,245,844 | |
| Cost of shares redeemed (a) | | | | (10,596,819 | ) | | | | (7,117,138 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | (5,020,409 | ) | | | | 2,855,513 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (13,478,423 | ) | | | $ | (22,533,360 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 836,006 | | | | | 424,405 | |
| Reinvested | | | | 165,322 | | | | | 294,196 | |
| Redeemed | | | | (1,267,947 | ) | | | | (1,569,800 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (266,619 | ) | | | | (851,199 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 37,133 | | | | | 55,510 | |
| Reinvested | | | | 34,340 | | | | | 40,019 | |
| Redeemed | | | | (157,913 | ) | | | | (134,446 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (86,440 | ) | | | | (38,917 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 189,457 | | | | | 328,646 | |
| Reinvested | | | | 101,426 | | | | | 167,651 | |
| Redeemed | | | | (664,011 | ) | | | | (961,803 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (373,128 | ) | | | | (465,506 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 5,135 | |
| Reinvested | | | | 25 | | | | | 21 | |
| Redeemed | | | | – | | | | | (5,135 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 25 | | | | | 21 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
44 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Micro Cap Equity Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 2,451 | | | | | 1,018 | |
| Reinvested | | | | 5,184 | | | | | 4,279 | |
| Redeemed | | | | (4,402 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 3,233 | | | | | 5,297 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 183,854 | | | | | 342,315 | |
| Reinvested | | | | 229,221 | | | | | 175,356 | |
| Redeemed | | | | (960,288 | ) | | | | (334,697 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | (547,213 | ) | | | | 182,974 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (1,270,142 | ) | | | | (1,167,330 | ) |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 45
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Micro Cap Equity Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | | | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Realized
| | | Return of
| | | Total
| | | Redemption
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Gains | | | Capital | | | Distributions | | | fees | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 19 | .12 | | | | (0 | .14) | | | | (7 | .96) | | | | (8 | .10) | | | | (3 | .82) | | | | – | | | | | (3 | .82) | | | | – | | | | $ | 7 | .20 | | | | (51 | .57%) | | | $ | 9,122,405 | | | | | 1 | .90% | | | | (1 | .22%) | | | | 2 | .04% | | | | 73 | .35% | | |
| Year Ended October 31, 2007 (f) | | | $ | 24 | .01 | | | | (0 | .24) | | | | 1 | .33 | | | | 1 | .09 | | | | (5 | .98) | | | | – | | | | | (5 | .98) | | | | – | | | | $ | 19 | .12 | | | | 5 | .84% | | | $ | 29,318,265 | | | | | 1 | .77% | | | | (1 | .21%) | | | | 1 | .77% | | | | 87 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 21 | .47 | | | | (0 | .27) | | | | 4 | .22 | | | | 3 | .95 | | | | (1 | .41) | | | | – | | | | | (1 | .41) | | | | – | | | | $ | 24 | .01 | | | | 19 | .19% | | | $ | 57,257,448 | | | | | 1 | .85% | | | | (1 | .00%) | | | | 1 | .88% | | | | 95 | .53% | | |
| Year Ended October 31, 2005 | | | $ | 19 | .56 | | | | (0 | .34) | | | | 2 | .63 | | | | 2 | .29 | | | | (0 | .40) | | | | – | | | | | (0 | .40) | | | | 0 | .02 | | | $ | 21 | .47 | | | | 11 | .69% | | | $ | 68,375,303 | | | | | 1 | .86% | | | | (1 | .31%) | | | | 1 | .87% | | | | 108 | .54% | | |
| Year Ended October 31, 2004 | | | $ | 15 | .91 | | | | (0 | .18) | | | | 3 | .81 | | | | 3 | .63 | | | | – | | | | | – | | | | | – | | | | | 0 | .02 | | | $ | 19 | .56 | | | | 22 | .96% | | | $ | 74,982,778 | | | | | 1 | .81% | | | | (1 | .35%) | | | | 1 | .82% | | | | 107 | .36% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 18 | .12 | | | | (0 | .22) | | | | (7 | .43) | | | | (7 | .65) | | | | (3 | .82) | | | | – | | | | | (3 | .82) | | | | – | | | | $ | 6 | .65 | | | | (52 | .04%) | | | $ | 1,208,957 | | | | | 2 | .65% | | | | (2 | .00%) | | | | 2 | .78% | | | | 73 | .35% | | |
| Year Ended October 31, 2007 (f) | | | $ | 23 | .21 | | | | (0 | .36) | | | | 1 | .25 | | | | 0 | .89 | | | | (5 | .98) | | | | – | | | | | (5 | .98) | | | | – | | | | $ | 18 | .12 | | | | 5 | .00% | | | $ | 4,853,182 | | | | | 2 | .51% | | | | (1 | .96%) | | | | 2 | .52% | | | | 87 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .93 | | | | (0 | .43) | | | | 4 | .12 | | | | 3 | .69 | | | | (1 | .41) | | | | – | | | | | (1 | .41) | | | | – | | | | $ | 23 | .21 | | | | 18 | .41% | | | $ | 7,116,782 | | | | | 2 | .52% | | | | (1 | .68%) | | | | 2 | .56% | | | | 95 | .53% | | |
| Year Ended October 31, 2005 | | | $ | 19 | .22 | | | | (0 | .46) | | | | 2 | .55 | | | | 2 | .09 | | | | (0 | .40) | | | | – | | | | | (0 | .40) | | | | 0 | .02 | | | $ | 20 | .93 | | | | 10 | .84% | | | $ | 7,646,929 | | | | | 2 | .61% | | | | (2 | .04%) | | | | 2 | .62% | | | | 108 | .54% | | |
| Year Ended October 31, 2004 | | | $ | 15 | .74 | | | | (0 | .26) | | | | 3 | .72 | | | | 3 | .46 | | | | – | | | | | – | | | | | – | | | | | 0 | .02 | | | $ | 19 | .22 | | | | 22 | .13% | | | $ | 6,403,117 | | | | | 2 | .55% | | | | (2 | .11%) | | | | 2 | .57% | | | | 107 | .36% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
46 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Micro Cap Equity Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | | | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Realized
| | | Return of
| | | Total
| | | Redemption
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Gains | | | Capital | | | Distributions | | | fees | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 18 | .15 | | | | (0 | .22) | | | | (7 | .43) | | | | (7 | .65) | | | | (3 | .82) | | | | – | | | | | (3 | .82) | | | | – | | | | $ | 6 | .68 | | | | (51 | .92%) | | | $ | 4,772,588 | | | | | 2 | .65% | | | | (2 | .00%) | | | | 2 | .78% | | | | 73 | .35% | | |
| Year Ended October 31, 2007 (f) | | | $ | 23 | .23 | | | | (0 | .36) | | | | 1 | .26 | | | | 0 | .90 | | | | (5 | .98) | | | | – | | | | | (5 | .98) | | | | – | | | | $ | 18 | .15 | | | | 5 | .06% | | | $ | 19,738,664 | | | | | 2 | .51% | | | | (1 | .96%) | | | | 2 | .52% | | | | 87 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .95 | | | | (0 | .41) | | | | 4 | .10 | | | | 3 | .69 | | | | (1 | .41) | | | | – | | | | | (1 | .41) | | | | – | | | | $ | 23 | .23 | | | | 18 | .39% | | | $ | 36,076,472 | | | | | 2 | .52% | | | | (1 | .68%) | | | | 2 | .56% | | | | 95 | .53% | | |
| Year Ended October 31, 2005 | | | $ | 19 | .24 | | | | (0 | .47) | | | | 2 | .56 | | | | 2 | .09 | | | | (0 | .40) | | | | – | | | | | (0 | .40) | | | | 0 | .02 | | | $ | 20 | .95 | | | | 10 | .83% | | | $ | 37,980,433 | | | | | 2 | .61% | | | | (2 | .05%) | | | | 2 | .62% | | | | 108 | .54% | | |
| Year Ended October 31, 2004 | | | $ | 15 | .76 | | | | (0 | .24) | | | | 3 | .70 | | | | 3 | .46 | | | | – | | | | | – | | | | | – | | | | | 0 | .02 | | | $ | 19 | .24 | | | | 22 | .10% | | | $ | 30,377,105 | | | | | 2 | .55% | | | | (2 | .11%) | | | | 2 | .57% | | | | 107 | .36% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 18 | .52 | | | | (0 | .17) | | | | (7 | .65) | | | | (7 | .82) | | | | (3 | .82) | | | | – | | | | | (3 | .82) | | | | – | | | | $ | 6 | .88 | | | | (51 | .77%) | | | $ | 748 | | | | | 2 | .27% | | | | (1 | .59%) | | | | 2 | .31% | | | | 73 | .35% | | |
| Year Ended October 31, 2007 (f) | | | $ | 23 | .53 | | | | (0 | .27) | | | | 1 | .24 | | | | 0 | .97 | | | | (5 | .98) | | | | – | | | | | (5 | .98) | | | | – | | | | $ | 18 | .52 | | | | 5 | .34% | | | $ | 1,550 | | | | | 2 | .19% | | | | (1 | .53%) | | | | 2 | .20% | | | | 87 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 21 | .13 | | | | (0 | .32) | | | | 4 | .13 | | | | 3 | .81 | | | | (1 | .41) | | | | – | | | | | (1 | .41) | | | | – | | | | $ | 23 | .53 | | | | 18 | .87% | | | $ | 1,471 | | | | | 2 | .01% | | | | (1 | .23%) | | | | 2 | .05% | | | | 95 | .53% | | |
| Year Ended October 31, 2005 | | | $ | 19 | .27 | | | | (0 | .29) | | | | 2 | .53 | | | | 2 | .24 | | | | (0 | .40) | | | | – | | | | | (0 | .40) | | | | 0 | .02 | | | $ | 21 | .13 | | | | 11 | .61% | | | $ | 1,238 | | | | | 1 | .94% | | | | (1 | .39%) | | | | 1 | .94% | | | | 108 | .54% | | |
| Period Ended October 31, 2004 (g) | | | $ | 17 | .38 | | | | (0 | .27) | | | | 2 | .14 | | | | 1 | .87 | | | | – | | | | | – | | | | | – | | | | | 0 | .02 | | | $ | 19 | .27 | | | | 10 | .89% | | | $ | 1,109 | | | | | 2 | .17% | | | | (1 | .78%) | | | | 2 | .17% | | | | 107 | .36% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 47
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Micro Cap Equity Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Realized
| | | Total
| | | Redemption
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Gains | | | Distributions | | | fees | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 19 | .47 | | | | (0 | .11) | | | | (8 | .15) | | | | (8 | .26) | | | | (3 | .82) | | | | (3 | .82) | | | | – | | | | $ | 7 | .39 | | | | (51 | .44%) | | | $ | 160,474 | | | | | 1 | .65% | | | | (0 | .96%) | | | | 1 | .78% | | | | 73 | .35% | | |
| Year Ended October 31, 2007 (f) | | | $ | 24 | .29 | | | | (0 | .19) | | | | 1 | .35 | | | | 1 | .16 | | | | (5 | .98) | | | | (5 | .98) | | | | – | | | | $ | 19 | .47 | | | | 6 | .06% | | | $ | 359,799 | | | | | 1 | .50% | | | | (0 | .96%) | | | | 1 | .51% | | | | 87 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 21 | .64 | | | | (0 | .15) | | | | 4 | .21 | | | | 4 | .06 | | | | (1 | .41) | | | | (1 | .41) | | | | – | | | | $ | 24 | .29 | | | | 19 | .62% | | | $ | 320,199 | | | | | 1 | .52% | | | | (0 | .68%) | | | | 1 | .55% | | | | 95 | .53% | | |
| Year Ended October 31, 2005 | | | $ | 19 | .67 | | | | (0 | .19) | | | | 2 | .54 | | | | 2 | .35 | | | | (0 | .40) | | | | (0 | .40) | | | | 0 | .02 | | | $ | 21 | .64 | | | | 11 | .93% | | | $ | 224,832 | | | | | 1 | .62% | | | | (1 | .05%) | | | | 1 | .64% | | | | 108 | .54% | | |
| Year Ended October 31, 2004 | | | $ | 15 | .96 | | | | (0 | .28) | | | | 3 | .97 | | | | 3 | .69 | | | | –(g) | | | | | –(g) | | | | | 0 | .02 | | | $ | 19 | .67 | | | | 23 | .26% | | | $ | 50,727 | | | | | 1 | .51% | | | | (1 | .10%) | | | | 1 | .52% | | | | 107 | .36% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 19 | .48 | | | | (0 | .13) | | | | (8 | .13) | | | | (8 | .26) | | | | (3 | .82) | | | | (3 | .82) | | | | – | | | | $ | 7 | .40 | | | | (51 | .40%) | | | $ | 2,009,700 | | | | | 1 | .65% | | | | (1 | .03%) | | | | 1 | .73% | | | | 73 | .35% | | |
| Year Ended October 31, 2007 (f) | | | $ | 24 | .29 | | | | (0 | .19) | | | | 1 | .36 | | | | 1 | .17 | | | | (5 | .98) | | | | (5 | .98) | | | | – | | | | $ | 19 | .48 | | | | 6 | .12% | | | $ | 15,950,142 | | | | | 1 | .50% | | | | (0 | .96%) | | | | 1 | .51% | | | | 87 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 21 | .65 | | | | (0 | .13) | | | | 4 | .18 | | | | 4 | .05 | | | | (1 | .41) | | | | (1 | .41) | | | | – | | | | $ | 24 | .29 | | | | 19 | .56% | | | $ | 15,451,167 | | | | | 1 | .51% | | | | (0 | .69%) | | | | 1 | .55% | | | | 95 | .53% | | |
| Year Ended October 31, 2005 | | | $ | 19 | .67 | | | | (0 | .22) | | | | 2 | .58 | | | | 2 | .36 | | | | (0 | .40) | | | | (0 | .40) | | | | 0 | .02 | | | $ | 21 | .65 | | | | 11 | .98% | | | $ | 8,113,109 | | | | | 1 | .63% | | | | (1 | .05%) | | | | 1 | .65% | | | | 108 | .54% | | |
| Year Ended October 31, 2004 | | | $ | 15 | .96 | | | | (0 | .16) | | | | 3 | .85 | | | | 3 | .69 | | | | –(g) | | | | | –(g) | | | | | 0 | .02 | | | $ | 19 | .67 | | | | 23 | .26% | | | $ | 3,493,334 | | | | | 1 | .52% | | | | (1 | .14%) | | | | 1 | .54% | | | | 107 | .36% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Per share calculations were performed using average shares method. |
| (g) | The amount is less than $0.005. |
| (h) | For the period from December 30, 2003 (commencement of operations) through October 31, 2004. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
48 Annual Report 2008
| |
| Nationwide Mid Cap Growth Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Mid Cap Growth Fund (Class A at NAV) registered -47.58% versus -42.65% for its benchmark, the Russell Midcap® Growth Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mid-Cap Growth Funds (consisting of 611 funds as of October 31, 2008) was -42.43% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund generated comparatively good returns in the industrials and consumer staples sectors. Within industrials, our focus on more consistent growth stocks versus the more economically sensitive companies aided Fund performance. Within consumer staples, names such as Alberto-Culver Co. (a provider of beauty and other consumer products) and Church & Dwight Co., Inc. (a manufacturer of cleaning and other household products) performed well as their earnings exceeded expectations. The Fund also benefited from a lack of exposure to the hard-hit utilities sector.
What areas of investment detracted from Fund performance?
The Fund’s holdings within the energy and technology sectors were the primary detractors from performance during the reporting period. Despite a sell-off late in the reporting period, the energy sector did manage to slightly outperform the benchmark index for the reporting period, so the Fund’s underweight position penalized relative Fund performance. Earnings disappointments from several companies within the technology sector, including CommScope, Inc. (a manufacturer of cable and connectivity solutions for communication networks) and DealerTrack Holdings, Inc. (a company that provides software and data solutions for the retail automotive industry), hurt Fund performance. Another Fund holding whose shares diminished was VeriFone Holdings, Inc. (a provider of electronic payment equipment) after the company announced accounting errors that required an earnings restatement.
What is your outlook for the near term?
Despite the ongoing volatility and still-poor market sentiment, we are encouraged with the Fund’s positioning within the market. The relative performance of the Fund’s holdings has improved during the sell-off as investors search for the type of high-quality companies that is a hallmark of our investment style. It is during times like these when earnings growth for the market as a whole deteriorates that our style historically has performed well. Our investment philosophy focuses on companies with a competitive advantage and solid balance sheets, as well as businesses that can perform well regardless of the economic backdrop. While the selling of late has been indiscriminate and the Fund’s holdings have not been spared from the carnage, we believe that investors will begin to differentiate among companies that can more successfully navigate the difficult economy, and the fundamental strength of the Fund’s holdings should be rewarded.
Subadviser:
NorthPointe Capital® LLC
Portfolio Manager:
Robert D. Glise, CFA
2008 Annual Report 49
| |
| Fund Performance | Nationwide Mid Cap Growth Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* | | Ratio* |
| |
Class A2 | | w/o SC3 | | | -47.58% | | | | -3.22% | | | | 2.68% | | | | 1.96% | | | | 1.41% | |
| | | w/SC4 | | | -50.59% | | | | -4.36% | | | | 1.69% | | | | | | | | | |
| |
| |
Class B2 | | w/o SC3 | | | -48.04% | | | | -3.95% | | | | 2.05% | | | | 2.70% | | | | 2.15% | |
| | | w/SC5 | | | -50.39% | | | | -4.24% | | | | 2.05% | | | | | | | | | |
| |
| |
Class C2 | | w/o SC3 | | | -47.95% | | | | -3.91% | | | | 2.09% | | | | 2.70% | | | | 2.15% | |
| | | w/SC6 | | | -48.42% | | | | -3.91% | | | | 2.09% | | | | | | | | | |
| |
| |
Class R2,7 | | | | | -47.73% | | | | -3.46% | | | | 2.50% | | | | 2.40% | | | | 1.85% | |
| |
| |
Institutional Class7 | | | | | -47.47% | | | | -2.96% | | | | 2.94% | | | | 1.70% | | | | 1.15% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on October 1, 2002. |
| |
| 2 | | These returns included performance based on the Fund’s Institutional Class shares, which was achieved prior to the creation of Class A shares (3/5/03), Class B and Class C shares (8/21/03), and Class R shares (10/1/03). Excluding the effects of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class B, Class C and Class R shares would have produced because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class A, Class B, Class C and Class R would have been lower. |
| |
| 3 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 4 | | A 5.75% front-end sales charge was deducted. |
| |
| 5 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Institutional Class shares the Nationwide Mid Cap Growth Fund, Russell Mid Cap Growth Index (Russell Mid Cap Growth)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell Mid Cap Growth - an unmanaged index of medium-size U.S. companies with a capitalization range of $.017 billion to $15.392 billion as of October 31, 2008, gives a broad look at how the stock price of medium-size U.S. companies have performed. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
50 Annual Report 2008
| |
| Shareholder | Nationwide Mid Cap Growth Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Mid Cap Growth Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 641.19 | | | | 5.93 | | | | 1.44 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.91 | | | | 7.31 | | | | 1.44 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 637.67 | | | | 9.44 | | | | 2.29 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,013.61 | | | | 11.68 | | | | 2.29 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 639.18 | | | | 8.81 | | | | 2.14 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.38 | | | | 10.89 | | | | 2.14 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 640.18 | | | | 6.73 | | | | 1.63 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.93 | | | | 8.31 | | | | 1.63 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 642.09 | | | | 4.67 | | | | 1.13 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.45 | | | | 5.76 | | | | 1.13 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 51
| |
| Portfolio Summary | Nationwide Mid Cap Growth Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 95.4% | |
| Repurchase Agreement | | | 1.8% | |
| Other assets in excess of liabilities | | | 2.8% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Health Care Equipment & Supplies | | | 8.3% | |
| Information Technology Services | | | 6.2% | |
| Diversified Consumer Services | | | 5.2% | |
| Commercial Services & Supplies | | | 4.4% | |
| Life Sciences Tools & Services | | | 4.1% | |
| Communications Equipment | | | 4.0% | |
| Energy Equipment & Services | | | 3.9% | |
| Oil, Gas & Consumable Fuels | | | 3.9% | |
| Chemicals | | | 3.4% | |
| Hotels, Restaurants & Leisure | | | 3.4% | |
| Other | | | 53.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Harris Corp. | | | 3.1% | |
| St. Jude Medical, Inc. | | | 3.0% | |
| Alliance Data Systems Corp. | | | 2.9% | |
| Fiserv, Inc. | | | 2.4% | |
| Fastenal Co. | | | 2.2% | |
| Alberto-Culver Co. | | | 2.2% | |
| ITT Educational Services, Inc. | | | 2.1% | |
| John Wiley & Sons, Inc., Class A | | | 2.1% | |
| W.R. Berkley Corp. | | | 2.0% | |
| Ball Corp. | | | 2.0% | |
| Other | | | 76.0% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
52 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Mid Cap Growth Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 95.4% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 2.6% |
| L-3 Communications Holdings, Inc. | | | 350 | | | $ | 28,409 | |
| Rockwell Collins, Inc. | | | 820 | | | | 30,529 | |
| | | | | | | | | |
| | | | | | | | 58,938 | |
| | | | | | | | | |
| |
| |
Air Freight & Logistics 0.9% |
| Atlas Air Worldwide Holdings, Inc.* | | | 330 | | | | 6,376 | |
| Expeditors International of Washington, Inc. | | | 400 | | | | 13,060 | |
| | | | | | | | | |
| | | | | | | | 19,436 | |
| | | | | | | | | |
| |
| |
Beverages 0.9% |
| Central European Distribution Corp.* | | | 720 | | | | 20,729 | |
| | | | | | | | | |
| |
| |
Capital Markets 1.8% |
| Affiliated Managers Group, Inc.* | | | 260 | | | | 12,059 | |
| TD Ameritrade Holding Corp.* | | | 2,100 | | | | 27,909 | |
| | | | | | | | | |
| | | | | | | | 39,968 | |
| | | | | | | | | |
| |
| |
Chemicals 3.4% |
| Airgas, Inc. | | | 780 | | | | 29,921 | |
| Albemarle Corp. | | | 470 | | | | 11,445 | |
| Ecolab, Inc. | | | 990 | | | | 36,887 | |
| | | | | | | | | |
| | | | | | | | 78,253 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 4.4% |
| Dun & Bradstreet Corp. | | | 590 | | | | 43,477 | |
| Pitney Bowes, Inc. | | | 750 | | | | 18,585 | |
| Stericycle, Inc.* | | | 650 | | | | 37,980 | |
| | | | | | | | | |
| | | | | | | | 100,042 | |
| | | | | | | | | |
| |
| |
Communications Equipment 4.0% |
| CommScope, Inc.* | | | 1,465 | | | | 21,550 | |
| Harris Corp. | | | 1,950 | | | | 70,103 | |
| | | | | | | | | |
| | | | | | | | 91,653 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 0.8% |
| NetApp, Inc.* | | | 1,290 | | | | 17,454 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 1.2% |
| Aecom Technology Corp.* | | | 1,530 | | | | 26,974 | |
| | | | | | | | | |
| |
| |
Containers & Packaging 2.0% |
| Ball Corp. | | | 1,340 | | | | 45,828 | |
| | | | | | | | | |
| |
| |
Distributors 1.0% |
| LKQ Corp.* | | | 2,010 | | | | 22,994 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 5.2% |
| Apollo Group, Inc., Class A* | | | 620 | | | | 43,096 | |
| ITT Educational Services, Inc.* | | | 535 | | | | 46,893 | |
| New Oriental Education & Technology Group, Inc. ADR – CN* | | | 455 | | | | 29,097 | |
| | | | | | | | | |
| | | | | | | | 119,086 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 2.4% |
| Interactive Brokers Group, Inc., Class A* | | | 1,280 | | | | 27,353 | |
| IntercontinentalExchange, Inc.* | | | 330 | | | | 28,235 | |
| | | | | | | | | |
| | | | | | | | 55,588 | |
| | | | | | | | | |
| |
| |
Electric Utility 0.9% |
| Allegheny Energy, Inc. | | | 710 | | | | 21,407 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 2.9% |
| Amphenol Corp., Class A | | | 1,130 | | | | 32,375 | |
| Dolby Laboratories, Inc., Class A* | | | 1,050 | | | | 33,148 | |
| | | | | | | | | |
| | | | | | | | 65,523 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 3.9% |
| FMC Technologies, Inc.* | | | 580 | | | | 20,294 | |
| Helmerich & Payne, Inc. | | | 590 | | | | 20,243 | |
| Smith International, Inc. | | | 600 | | | | 20,688 | |
| Superior Energy Services, Inc.* | | | 800 | | | | 17,056 | |
| TETRA Technologies, Inc.* | | | 1,380 | | | | 9,605 | |
| | | | | | | | | |
| | | | | | | | 87,886 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 8.3% |
| C.R. Bard, Inc. | | | 500 | | | | 44,125 | |
| Intuitive Surgical, Inc.* | | | 170 | | | | 29,374 | |
| Mindray Medical International Ltd. ADR – CN | | | 250 | | | | 5,390 | |
| St. Jude Medical, Inc.* | | | 1,810 | | | | 68,834 | |
| Varian Medical Systems, Inc.* | | | 870 | | | | 39,594 | |
| | | | | | | | | |
| | | | | | | | 187,317 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 2.2% |
| Express Scripts, Inc.* | | | 500 | | | | 30,305 | |
| Pediatrix Medical Group, Inc.* | | | 500 | | | | 19,325 | |
| | | | | | | | | |
| | | | | | | | 49,630 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 3.4% |
| Burger King Holdings, Inc. | | | 1,820 | | | | 36,182 | |
| Penn National Gaming, Inc.* | | | 2,160 | | | | 41,601 | |
| | | | | | | | | |
| | | | | | | | 77,783 | |
| | | | | | | | | |
| |
| |
Household Durables 1.8% |
| Jarden Corp.* | | | 2,275 | | | | 40,495 | |
| | | | | | | | | |
| |
| |
Household Products 1.5% |
| Church & Dwight Co., Inc. | | | 580 | | | | 34,272 | |
| | | | | | | | | |
| |
| |
Information Technology Services 6.2% |
| Alliance Data Systems Corp.* | | | 1,290 | | | | 64,706 | |
2008 Annual Report 53
Statement of Investments (Continued)
October 31, 2008
Nationwide Mid Cap Growth Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Information Technology Services (continued) |
| | | | | | | | | |
| Cognizant Technology Solutions Corp., Class A* | | | 570 | | | $ | 10,944 | |
| Fiserv, Inc.* | | | 1,630 | | | | 54,377 | |
| Paychex, Inc. | | | 400 | | | | 11,416 | |
| | | | | | | | | |
| | | | | | | | 141,443 | |
| | | | | | | | | |
| |
| |
Insurance 3.3% |
| Brown & Brown, Inc. | | | 1,460 | | | | 29,959 | |
| W.R. Berkley Corp. | | | 1,745 | | | | 45,841 | |
| | | | | | | | | |
| | | | | | | | 75,800 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 4.1% |
| Covance, Inc.* | | | 300 | | | | 15,000 | |
| Thermo Fisher Scientific, Inc.* | | | 950 | | | | 38,570 | |
| Waters Corp.* | | | 890 | | | | 38,982 | |
| | | | | | | | | |
| | | | | | | | 92,552 | |
| | | | | | | | | |
| |
| |
Machinery 0.4% |
| Bucyrus International, Inc., | | | 400 | | | | 9,652 | |
| | | | | | | | | |
| |
| |
Media 2.1% |
| John Wiley & Sons, Inc., Class A | | | 1,340 | | | | 46,605 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 3.9% |
| Continental Resources, Inc. | | | 930 | | | | 30,123 | |
| Encore Acquisition Co.* | | | 630 | | | | 19,624 | |
| XTO Energy, Inc. | | | 1,047 | | | | 37,640 | |
| | | | | | | | | |
| | | | | | | | 87,387 | |
| | | | | | | | | |
| |
| |
Personal Products 2.2% |
| Alberto-Culver Co. | | | 1,930 | | | | 49,659 | |
| | | | | | | | | |
| |
| |
Road & Rail 2.7% |
| J.B. Hunt Transport Services, Inc. | | | 1,160 | | | | 32,979 | |
| Knight Transportation, Inc. | | | 1,720 | | | | 27,348 | |
| | | | | | | | | |
| | | | | | | | 60,327 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 2.6% |
| Broadcom Corp., Class A* | | | 1,550 | | | | 26,474 | |
| Marvell Technology Group Ltd.* | | | 1,490 | | | | 10,370 | |
| MEMC Electronic Materials, Inc.* | | | 310 | | | | 5,698 | |
| ON Semiconductor Corp.* | | | 3,200 | | | | 16,352 | |
| | | | | | | | | |
| | | | | | | | 58,894 | |
| | | | | | | | | |
| |
| |
Software 2.9% |
| Intuit, Inc.* | | | 1,660 | | | | 41,600 | |
| MICROS Systems, Inc.* | | | 1,370 | | | | 23,331 | |
| | | | | | | | | |
| | | | | | | | 64,931 | |
| | | | | | | | | |
| |
| |
Specialty Retail 1.9% |
| GameStop Corp., Class A* | | | 800 | | | | 21,912 | |
| Guess?, Inc. | | | 1,000 | | | | 21,770 | |
| | | | | | | | | |
| | | | | | | | 43,682 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 3.3% |
| Coach, Inc.* | | | 1,800 | | | | 37,080 | |
| Warnaco Group, Inc. (The)* | | | 1,250 | | | | 37,262 | |
| | | | | | | | | |
| | | | | | | | 74,342 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 0.9% |
| Hudson City Bancorp, Inc. | | | 1,100 | | | | 20,691 | |
| | | | | | | | | |
| |
| |
Trading Companies & Distributors 2.2% |
| Fastenal Co. | | | 1,240 | | | | 49,922 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 1.2% |
| NII Holdings, Inc.* | | | 1,030 | | | | 26,533 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 2,163,676 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 1.8% |
| | | | | | | | | |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $41,638, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $42,471 | | $ | 41,638 | | | | 41,638 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $2,892,091) (a) — 97.2% | | | 2,205,314 | |
Other assets in excess of liabilities — 2.8% | | | | | | | 62,413 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 2,267,727 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to statements of investments for tax unrealized appreciation / (depreciation) of securities. |
| | |
| ADR | | American Depositary Receipt |
| |
| CN | | China |
The accompanying notes are an integral part of these financial statements.
54 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Mid Cap Growth Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $2,850,453) | | | $ | 2,163,676 | |
| Repurchase agreements, at value and cost | | | | 41,638 | |
| | | | | | |
| Total Investments | | | | 2,205,314 | |
| | | | | | |
| Interest and dividends receivable | | | | 138 | |
| Receivable for investments sold | | | | 58,087 | |
| Receivable from adviser | | | | 3,529 | |
| Prepaid expenses and other assets | | | | 42,731 | |
| | | | | | |
| Total Assets | | | | 2,309,799 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 39,653 | |
| Accrued expenses and other payables: | | | | | |
| Fund administration fees | | | | 234 | |
| Distribution fees | | | | 411 | |
| Administrative servicing fees | | | | 463 | |
| Trustee fees | | | | 9 | |
| Compliance program costs (Note 3) | | | | 25 | |
| Custodian fees | | | | 34 | |
| Other | | | | 1,243 | |
| | | | | | |
| Total Liabilities | | | | 42,072 | |
| | | | | | |
Net Assets | | | $ | 2,267,727 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 3,531,217 | |
| Accumulated net realized losses from investment transactions | | | | (576,713 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (686,777 | ) |
| | | | | | |
Net Assets | | | $ | 2,267,727 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 798,383 | |
| Class B Shares | | | | 102,019 | |
| Class C Shares | | | | 174,718 | |
| Class R Shares | | | | 1,659 | |
| Institutional Class Shares | | | | 1,190,948 | |
| | | | | | |
| Total | | | $ | 2,267,727 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 55
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Mid Cap Growth Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 90,599 | |
| Class B Shares | | | | 12,081 | |
| Class C Shares | | | | 20,686 | |
| Class R Shares | | | | 191 | |
| Institutional Class Shares | | | | 132,759 | |
| | | | | | |
| Total | | | | 256,316 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.81 | |
| Class B Shares (a) | | | $ | 8.43 | (c) |
| Class C Shares (b) | | | $ | 8.45 | |
| Class R Shares | | | $ | 8.70 | (c) |
| Institutional Class Shares | | | $ | 8.97 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 9.35 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
56 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Mid
| |
| | | Cap Growth Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 4,757 | |
| Dividend income | | | | 16,523 | |
| | | | | | |
| Total Income | | | | 21,280 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 34,979 | |
| Fund administration fees | | | | 4,508 | |
| Distribution fees Class A | | | | 3,405 | |
| Distribution fees Class B | | | | 1,926 | |
| Distribution fees Class C | | | | 3,322 | |
| Distribution fees Class R | | | | 12 | |
| Administrative servicing fees Class A | | | | 30 | |
| Registration and filing fees | | | | 47,689 | |
| Professional fees | | | | 619 | |
| Printing fees | | | | 8,779 | |
| Trustee fees | | | | 280 | |
| Custodian fees | | | | 762 | |
| Other | | | | 6,491 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 112,802 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (224 | ) |
| Expenses reimbursed by Advisor | | | | (50,328 | ) |
| Administrator fees voluntarily waived | | | | (72 | ) |
| | | | | | |
| Net Expenses | | | | 62,178 | |
| | | | | | |
NET INVESTMENT LOSS | | | | (40,898 | ) |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (569,753 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,173,621 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (2,743,374 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (2,784,272 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 57
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Mid Cap Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment loss | | | $ | (40,898 | ) | | | $ | (64,674 | ) |
| Net realized gains (losses) from investment transactions | | | | (569,753 | ) | | | | 753,054 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,173,621 | ) | | | | 606,228 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (2,784,272 | ) | | | | 1,294,608 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (172,167 | ) | | | | (160,443 | ) |
| Class B | | | | (23,211 | ) | | | | (13,023 | ) |
| Class C | | | | (45,768 | ) | | | | (35,287 | ) |
| Class R | | | | (267 | ) | | | | (112 | ) |
| Institutional Class | | | | (451,442 | ) | | | | (265,522 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (692,855 | ) | | | | (474,387 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (2,205,603 | ) | | | | (91,112 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (5,682,730 | ) | | | | 729,109 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 7,950,457 | | | | | 7,221,348 | |
| | | | | | | | | | | |
| End of period | | | $ | 2,267,727 | | | | $ | 7,950,457 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | – | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 176,643 | | | | $ | 698,817 | |
| Dividends reinvested | | | | 118,166 | | | | | 108,265 | |
| Cost of shares redeemed (a) | | | | (480,735 | ) | | | | (1,468,198 | ) |
| | | | | | | | | | | �� |
| Total Class A | | | | (185,926 | ) | | | | (661,116 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 18,632 | | | | | 42,733 | |
| Dividends reinvested | | | | 20,968 | | | | | 12,594 | |
| Cost of shares redeemed | | | | (65,504 | ) | | | | (40,004 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (25,904 | ) | | | | 15,323 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 113,668 | | | | | 94,065 | |
| Dividends reinvested | | | | 12,097 | | | | | 7,315 | |
| Cost of shares redeemed (a) | | | | (204,518 | ) | | | | (195,661 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (78,753 | ) | | | | (94,281 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 392 | | | | | 1,126 | |
| Dividends reinvested | | | | 153 | | | | | 94 | |
| Cost of shares redeemed | | | | – | | | | | (148 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 545 | | | | | 1,072 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
58 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Mid Cap Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 196,298 | | | | $ | 821,438 | |
| Dividends reinvested | | | | 451,442 | | | | | 265,522 | |
| Cost of shares redeemed | | | | (2,563,305 | ) | | | | (439,070 | ) |
| Total Institutional Class | | | | (1,915,565 | ) | | | | 647,890 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (2,205,603 | ) | | | $ | (91,112 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 12,286 | | | | | 41,771 | |
| Reinvested | | | | 7,418 | | | | | 6,741 | |
| Redeemed | | | | (34,425 | ) | | | | (86,778 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (14,721 | ) | | | | (38,266 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 1,413 | | | | | 2,576 | |
| Reinvested | | | | 1,365 | | | | | 804 | |
| Redeemed | | | | (5,179 | ) | | | | (2,354 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (2,401 | ) | | | | 1,026 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 8,136 | | | | | 5,923 | |
| Reinvested | | | | 788 | | | | | 467 | |
| Redeemed | | | | (15,920 | ) | | | | (11,733 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (6,996 | ) | | | | (5,343 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 26 | | | | | 67 | |
| Reinvested | | | | 10 | | | | | 6 | |
| Redeemed | | | | – | | | | | (9 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 36 | | | | | 64 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 12,198 | | | | | 47,882 | |
| Reinvested | | | | 27,901 | | | | | 16,330 | |
| Redeemed | | | | (185,615 | ) | | | | (25,292 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | (145,516 | ) | | | | 38,920 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (169,598 | ) | | | | (3,599 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 59
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Mid Cap Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Realized
| | | Total
| | | Redemption
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Gains | | | Distributions | | | fees | | | of Period | | | Return (a) | | | of Period | | | Net Assets | | | Net Assets | | | Net Assets (b) | | | Turnover (c) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 18 | .55 | | | | (0 | .13) | | | | (7 | .96) | | | | (8 | .09) | | | | (1 | .65) | | | | (1 | .65) | | | | – | | | | $ | 8 | .81 | | | | (47 | .58%) | | | $ | 798,383 | | | | | 1 | .40% | | | | (0 | .95%) | | | | 2 | .61% | | | | 88 | .99% | | |
| Year Ended October 31, 2007 (d) | | | $ | 16 | .75 | | | | (0 | .15) | | | | 3 | .03 | | | | 2 | .88 | | | | (1 | .09) | | | | (1 | .09) | | | | 0 | .01 | | | $ | 18 | .55 | | | | 18 | .25% | | | $ | 1,953,934 | | | | | 1 | .41% | | | | (0 | .91%) | | | | 1 | .95% | | | | 78 | .16% | | |
| Year Ended October 31, 2006 | | | $ | 15 | .55 | | | | (0 | .09) | | | | 2 | .12 | | | | 2 | .03 | | | | (0 | .84) | | | | (0 | .84) | | | | 0 | .01 | | | $ | 16 | .75 | | | | 13 | .51% | | | $ | 2,405,449 | | | | | 1 | .43% | | | | (0 | .60%) | | | | 1 | .89% | | | | 68 | .88% | | |
| Year Ended October 31, 2005 | | | $ | 14 | .21 | | | | (0 | .13) | | | | 2 | .16 | | | | 2 | .03 | | | | (0 | .69) | | | | (0 | .69) | | | | – | | | | $ | 15 | .55 | | | | 14 | .42% | | | $ | 1,677,868 | | | | | 1 | .42% | | | | (0 | .87%) | | | | 2 | .38% | | | | 68 | .86% | | |
| Year Ended October 31, 2004 | | | $ | 13 | .84 | | | | (0 | .13) | | | | 0 | .87 | | | | 0 | .74 | | | | (0 | .37) | | | | (0 | .37) | | | | – | | | | $ | 14 | .21 | | | | 5 | .44% | | | $ | 1,463,466 | | | | | 1 | .40% | | | | (0 | .98%) | | | | 2 | .51% | | | | 94 | .56% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 17 | .97 | | | | (0 | .22) | | | | (7 | .67) | | | | (7 | .89) | | | | (1 | .65) | | | | (1 | .65) | | | | – | | | | $ | 8 | .43 | | | | (48 | .04%) | | | $ | 102,019 | | | | | 2 | .15% | | | | (1 | .70%) | | | | 3 | .36% | | | | 88 | .99% | | |
| Year Ended October 31, 2007 (d) | | | $ | 16 | .38 | | | | (0 | .27) | | | | 2 | .94 | | | | 2 | .67 | | | | (1 | .09) | | | | (1 | .09) | | | | 0 | .01 | | | $ | 17 | .97 | | | | 17 | .33% | | | $ | 260,305 | | | | | 2 | .15% | | | | (1 | .66%) | | | | 2 | .71% | | | | 78 | .16% | | |
| Year Ended October 31, 2006 | | | $ | 15 | .33 | | | | (0 | .19) | | | | 2 | .07 | | | | 1 | .88 | | | | (0 | .84) | | | | (0 | .84) | | | | 0 | .01 | | | $ | 16 | .38 | | | | 12 | .68% | | | $ | 220,396 | | | | | 2 | .15% | | | | (1 | .31%) | | | | 2 | .62% | | | | 68 | .88% | | |
| Year Ended October 31, 2005 | | | $ | 14 | .11 | | | | (0 | .24) | | | | 2 | .15 | | | | 1 | .91 | | | | (0 | .69) | | | | (0 | .69) | | | | – | | | | $ | 15 | .33 | | | | 13 | .65% | | | $ | 173,088 | | | | | 2 | .15% | | | | (1 | .61%) | | | | 3 | .11% | | | | 68 | .86% | | |
| Year Ended October 31, 2004 | | | $ | 13 | .84 | | | | (0 | .20) | | | | 0 | .84 | | | | 0 | .64 | | | | (0 | .37) | | | | (0 | .37) | | | | – | | | | $ | 14 | .11 | | | | 4 | .70% | | | $ | 153,083 | | | | | 2 | .15% | | | | (1 | .74%) | | | | 3 | .27% | | | | 94 | .56% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 17 | .98 | | | | (0 | .23) | | | | (7 | .62) | | | | (7 | .85) | | | | (1 | .65) | | | | (1 | .65) | | | | 0 | .03 | | | $ | 8 | .45 | | | | (47 | .95%) | | | $ | 174,718 | | | | | 2 | .15% | | | | (1 | .70%) | | | | 3 | .32% | | | | 88 | .99% | | |
| Year Ended October 31, 2007 (d) | | | $ | 16 | .38 | | | | (0 | .27) | | | | 2 | .95 | | | | 2 | .68 | | | | (1 | .09) | | | | (1 | .09) | | | | 0 | .01 | | | $ | 17 | .98 | | | | 17 | .40% | | | $ | 497,618 | | | | | 2 | .15% | | | | (1 | .66%) | | | | 2 | .70% | | | | 78 | .16% | | |
| Year Ended October 31, 2006 | | | $ | 15 | .33 | | | | (0 | .18) | | | | 2 | .06 | | | | 1 | .88 | | | | (0 | .84) | | | | (0 | .84) | | | | 0 | .01 | | | $ | 16 | .38 | | | | 12 | .68% | | | $ | 540,940 | | | | | 2 | .15% | | | | (1 | .34%) | | | | 2 | .60% | | | | 68 | .88% | | |
| Year Ended October 31, 2005 | | | $ | 14 | .11 | | | | (0 | .27) | | | | 2 | .18 | | | | 1 | .91 | | | | (0 | .69) | | | | (0 | .69) | | | | – | | | | $ | 15 | .33 | | | | 13 | .65% | | | $ | 230,385 | | | | | 2 | .15% | | | | (1 | .60%) | | | | 3 | .18% | | | | 68 | .86% | | |
| Year Ended October 31, 2004 | | | $ | 13 | .84 | | | | (0 | .23) | | | | 0 | .87 | | | | 0 | .64 | | | | (0 | .37) | | | | (0 | .37) | | | | – | | | | $ | 14 | .11 | | | | 4 | .70% | | | $ | 224,060 | | | | | 2 | .15% | | | | (1 | .72%) | | | | 3 | .17% | | | | 94 | .56% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 18 | .39 | | | | (0 | .16) | | | | (7 | .88) | | | | (8 | .04) | | | | (1 | .65) | | | | (1 | .65) | | | | – | | | | $ | 8 | .70 | | | | (47 | .73%) | | | $ | 1,659 | | | | | 1 | .63% | | | | (1 | .18%) | | | | 2 | .95% | | | | 88 | .99% | | |
| Year Ended October 31, 2007 (d) | | | $ | 16 | .67 | | | | (0 | .21) | | | | 3 | .01 | | | | 2 | .80 | | | | (1 | .09) | | | | (1 | .09) | | | | 0 | .01 | | | $ | 18 | .39 | | | | 17 | .84% | | | $ | 2,845 | | | | | 1 | .75% | | | | (1 | .26%) | | | | 2 | .32% | | | | 78 | .16% | | |
| Year Ended October 31, 2006 | | | $ | 15 | .51 | | | | (0 | .12) | | | | 2 | .11 | | | | 1 | .99 | | | | (0 | .84) | | | | (0 | .84) | | | | 0 | .01 | | | $ | 16 | .67 | | | | 13 | .27% | | | $ | 1,515 | | | | | 1 | .64% | | | | (0 | .79%) | | | | 2 | .18% | | | | 68 | .88% | | |
| Year Ended October 31, 2005 | | | $ | 14 | .18 | | | | (0 | .15) | | | | 2 | .17 | | | | 2 | .02 | | | | (0 | .69) | | | | (0 | .69) | | | | – | | | | $ | 15 | .51 | | | | 14 | .38% | | | $ | 1,274 | | | | | 1 | .49% | | | | (0 | .97%) | | | | 2 | .53% | | | | 68 | .86% | | |
| Year Ended October 31, 2004 | | | $ | 13 | .86 | | | | (0 | .17) | | | | 0 | .86 | | | | 0 | .69 | | | | (0 | .37) | | | | (0 | .37) | | | | – | | | | $ | 14 | .18 | | | | 5 | .06% | | | $ | 1,114 | | | | | 1 | .66% | | | | (1 | .27%) | | | | 2 | .63% | | | | 94 | .56% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (d) | | | $ | 18 | .82 | | | | (0 | .10) | | | | (8 | .10) | | | | (8 | .20) | | | | (1 | .65) | | | | (1 | .65) | | | | – | | | | $ | 8 | .97 | | | | (47 | .47%) | | | $ | 1,190,948 | | | | | 1 | .15% | | | | (0 | .69%) | | | | 2 | .16% | | | | 88 | .99% | | |
| Year Ended October 31, 2007 (d) | | | $ | 16 | .93 | | | | (0 | .11) | | | | 3 | .08 | | | | 2 | .97 | | | | (1 | .09) | | | | (1 | .09) | | | | 0 | .01 | | | $ | 18 | .82 | | | | 18 | .60% | | | $ | 5,235,755 | | | | | 1 | .15% | | | | (0 | .66%) | | | | 1 | .71% | | | | 78 | .16% | | |
| Year Ended October 31, 2006 | | | $ | 15 | .67 | | | | (0 | .05) | | | | 2 | .14 | | | | 2 | .09 | | | | (0 | .84) | | | | (0 | .84) | | | | 0 | .01 | | | $ | 16 | .93 | | | | 13 | .80% | | | $ | 4,053,048 | | | | | 1 | .15% | | | | (0 | .34%) | | | | 1 | .61% | | | | 68 | .88% | | |
| Year Ended October 31, 2005 | | | $ | 14 | .27 | | | | (0 | .07) | | | | 2 | .16 | | | | 2 | .09 | | | | (0 | .69) | | | | (0 | .69) | | | | – | | | | $ | 15 | .67 | | | | 14 | .79% | | | $ | 2,530,575 | | | | | 1 | .15% | | | | (0 | .61%) | | | | 1 | .98% | | | | 68 | .86% | | |
| Year Ended October 31, 2004 | | | $ | 13 | .86 | | | | (0 | .10) | | | | 0 | .88 | | | | 0 | .78 | | | | (0 | .37) | | | | (0 | .37) | | | | – | | | | $ | 14 | .27 | | | | 5 | .73% | | | $ | 1,552,921 | | | | | 1 | .15% | | | | (0 | .72%) | | | | 2 | .26% | | | | 94 | .56% | | |
| |
| (a) | Excludes sales charge. |
| (b) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (c) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (d) | Per share calculations were performed using average shares method. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
60 Annual Report 2008
| |
| Nationwide U.S. Small Cap Value Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the period from the Fund’s inception on December 21, 2007, through October 31, 2008, the Nationwide U.S. Small Cap Value Fund (Class A at NAV) registered -28.40%. For the period from January 1, 2008, through October 31, 2008, the Fund’s benchmark, the Russell 2000® Value Index, registered -24.27%. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Small-Cap Value Funds (consisting of 322 funds as of October 31, 2008) was -28.71% for the 10 months ended October 31, 2008.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s larger allocation than that of the benchmark index to value-oriented stocks, combined with the better relative performance of the Fund’s basket of those stocks had a large positive impact on relative Fund performance. Overall differences between the Fund and its benchmark index in allocation across industries also had a positive impact on relative Fund performance. The Fund especially benefited from its larger allocation to energy stocks and from the good relative performance of its basket of energy stocks. Finally, the Fund’s exclusion of REITs (real estate investment trusts), which underperformed relative to other industry sectors during the first 10 months of 2008, had a positive impact on relative Fund performance.
What areas of investment detracted from Fund performance?
The Fund’s larger allocation than that of the benchmark index to deep-value stocks combined with the poor relative performance of its basket of those stocks had a large negative impact on relative Fund performance. With regard to industries, allocation and especially composition differences between the Fund and its benchmark index in the financials and information technology sectors had a large negative impact on relative Fund performance. The Fund also was hurt by the poor relative performance of its basket of stocks in the industrials and consumer staples sectors and by the Fund’s exclusion of highly regulated utilities, which constituted the best-performing sector during the first 10 months of 2008.
What is your outlook for the near term?
Dimensional Fund Advisors does not make economic or financial forecasts. The Fund’s investment approach is based on scientific research into the sources of risk and return in equity markets, and does not make macroeconomic forecasts or tactical allocations.
Subadviser:
Dimensional Fund Advisors L.P.
Portfolio Manager:
Robert T. Deere
2008 Annual Report 61
| |
| Fund Performance | Nationwide U.S. Small Cap Value Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | |
| | | | | Inception1* |
| |
| Class A | | w/o SC2 | | | -28.40% | |
| | | w/SC3 | | | -32.52% | |
| |
| |
| Class C | | w/o SC2 | | | -28.79% | |
| | | w/SC4 | | | -29.51% | |
| |
| |
Institutional Service Class5 | | | | | -28.27% | |
| |
| |
Institutional Class5 | | | | | -28.14% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | Not annualized |
| |
| 1 | | Fund commenced operations on December 21, 2007. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide U.S. Small Cap Value Fund, Russell 2000 Value Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell 2000 is an unmanaged index of approximately 2,000 companies with small market capitalizations relative to the market capilizations of other U.S. companies. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
62 Annual Report 2008
| |
| Shareholder | Nationwide U.S. Small Cap Value Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide U.S. Small Cap Value Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 753.42 | | | | 6.41 | | | | 1.45 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.83 | | | | 7.40 | | | | 1.45 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 751.05 | | | | 9.25 | | | | 2.10 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.57 | | | | 10.70 | | | | 2.10 | |
| |
| |
| Institutional Service Class | | | Actual | | | | 1,000.00 | | | | 754.48 | | | | 5.48 | | | | 1.24 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.89 | | | | 6.33 | | | | 1.24 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 755.53 | | | | 4.72 | | | | 1.07 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.76 | | | | 5.45 | | | | 1.07 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 63
| |
| Portfolio Summary | Nationwide U.S. Small Cap Value Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 98.6% | |
| Repurchase Agreement | | | 1.0% | |
| Other assets in excess of liabilities | | | 0.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Commercial Banks | | | 12.1% | |
| Insurance | | | 10.5% | |
| Specialty Retail | | | 5.0% | |
| Electronic Equipment & Instruments | | | 4.8% | |
| Oil, Gas & Consumable Fuels | | | 3.9% | |
| Household Durables | | | 3.8% | |
| Chemicals | | | 3.5% | |
| Health Care Providers & Services | | | 3.4% | |
| Commercial Services & Supplies | | | 3.2% | |
| Semiconductors & Semiconductor Equipment | | | 3.2% | |
| Other | | | 46.6% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| W.R. Berkley Corp. | | | 1.0% | |
| Omnicare, Inc. | | | 0.8% | |
| Mohawk Industries, Inc. | | | 0.8% | |
| Transatlantic Holdings, Inc. | | | 0.7% | |
| Leggett & Platt, Inc. | | | 0.7% | |
| Watson Pharmaceuticals, Inc. | | | 0.7% | |
| BancorpSouth, Inc. | | | 0.6% | |
| CenturyTel, Inc. | | | 0.6% | |
| Odyssey Re Holdings Corp. | | | 0.6% | |
| American Financial Group, Inc. | | | 0.6% | |
| Other | | | 92.9% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
64 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide U.S. Small Cap Value Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 98.6% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 0.9% |
| Allied Defense Group, Inc. (The)* | | | 400 | | | $ | 2,900 | |
| Applied Signal Technology, Inc. | | | 1,000 | | | | 17,920 | |
| Argon ST, Inc.* | | | 1,200 | | | | 25,032 | |
| Ceradyne, Inc.* | | | 500 | | | | 11,750 | |
| Ducommun, Inc.* | | | 1,000 | | | | 20,190 | |
| Esterline Technologies Corp.* | | | 2,300 | | | | 82,915 | |
| Sparton Corp.* | | | 400 | | | | 812 | |
| Sypris Solutions, Inc. | | | 100 | | | | 93 | |
| Triumph Group, Inc. | | | 1,000 | | | | 43,860 | |
| | | | | | | | | |
| | | | | | | | 205,472 | |
| | | | | | | | | |
| |
| |
Air Freight & Logistics 0.1% |
| Atlas Air Worldwide Holdings, Inc.* | | | 500 | | | | 9,660 | |
| Park-Ohio Holdings Corp.* | | | 1,100 | | | | 8,349 | |
| | | | | | | | | |
| | | | | | | | 18,009 | |
| | | | | | | | | |
| |
| |
Airline 0.3% |
| JetBlue Airways Corp.* | | | 12,500 | | | | 69,375 | |
| | | | | | | | | |
| |
| |
Auto Components 0.6% |
| American Axle & Manufacturing Holdings, Inc. | | | 200 | | | | 718 | |
| ArvinMeritor, Inc. | | | 400 | | | | 2,368 | |
| ATC Technology Corp.* | | | 500 | | | | 10,965 | |
| Hayes Lemmerz International, Inc.* | | | 3,800 | | | | 5,054 | |
| Modine Manufacturing Co. | | | 2,900 | | | | 21,460 | |
| Shiloh Industries, Inc.* | | | 1,577 | | | | 7,901 | |
| Spartan Motors, Inc. | | | 1,800 | | | | 8,262 | |
| Standard Motor Products, Inc. | | | 1,600 | | | | 6,736 | |
| Stoneridge, Inc.* | | | 1,400 | | | | 7,966 | |
| Superior Industries International, Inc. | | | 2,300 | | | | 32,890 | |
| Tenneco, Inc.* | | | 2,500 | | | | 12,275 | |
| TRW Automotive Holdings Corp.* | | | 5,700 | | | | 36,024 | |
| | | | | | | | | |
| | | | | | | | 152,619 | |
| | | | | | | | | |
| |
| |
Beverages 0.7% |
| Constellation Brands, Inc., Class A* | | | 10,900 | | | | 136,686 | |
| MGP Ingredients, Inc. | | | 800 | | | | 1,216 | |
| National Beverage Corp. | | | 803 | | | | 7,355 | |
| PepsiAmericas, Inc. | | | 1,200 | | | | 22,716 | |
| | | | | | | | | |
| | | | | | | | 167,973 | |
| | | | | | | | | |
| |
| |
Biotechnology 0.6% |
| Anadys Pharmaceuticals, Inc.* | | | 1,300 | | | | 2,847 | |
| Avigen, Inc.* | | | 1,600 | | | | 960 | |
| Celera Corp.* | | | 6,100 | | | | 68,991 | |
| Combinatorx, Inc.* | | | 2,500 | | | | 1,600 | |
| Lexicon Pharmaceuticals, Inc.* | | | 7,400 | | | | 11,618 | |
| Martek Biosciences Corp.* | | | 1,700 | | | | 50,711 | |
| MediciNova, Inc.* | | | 500 | | | | 1,155 | |
| Neurocrine Biosciences, Inc.* | | | 2,500 | | | | 10,325 | |
| Trimeris, Inc.* | | | 1,600 | | | | 5,232 | |
| Vical, Inc.* | | | 2,100 | | | | 3,444 | |
| | | | | | | | | |
| | | | | | | | 156,883 | |
| | | | | | | | | |
| |
| |
Building Products 1.0% |
| American Woodmark Corp. | | | 1,300 | | | | 24,102 | |
| Ameron International Corp. | | | 1,000 | | | | 47,000 | |
| Builders FirstSource, Inc.* | | | 3,200 | | | | 12,160 | |
| Gibraltar Industries, Inc. | | | 2,600 | | | | 34,450 | |
| Insteel Industries, Inc. | | | 1,000 | | | | 10,260 | |
| NCI Building Systems, Inc.* | | | 1,500 | | | | 27,915 | |
| PGT, Inc.* | | | 458 | | | | 948 | |
| Simpson Manufacturing Co., Inc. | | | 1,800 | | | | 41,472 | |
| Trex Co., Inc.* | | | 1,100 | | | | 17,941 | |
| U.S. Home Systems, Inc.* | | | 700 | | | | 1,484 | |
| Universal Forest Products, Inc. | | | 1,500 | | | | 35,475 | |
| | | | | | | | | |
| | | | | | | | 253,207 | |
| | | | | | | | | |
| |
| |
Capital Markets 1.3% |
| Broadpoint Securities Group, Inc.* | | | 1,700 | | | | 5,015 | |
| Capital Southwest Corp. | | | 350 | | | | 35,700 | |
| E*Trade Financial Corp.* | | | 35,800 | | | | 65,156 | |
| FirstCity Financial Corp.* | | | 1,000 | | | | 3,250 | |
| Harris & Harris Group, Inc.* | | | 100 | | | | 500 | |
| KBW, Inc.* | | | 1,200 | | | | 35,136 | |
| Knight Capital Group, Inc., Class A* | | | 5,200 | | | | 75,192 | |
| MCG Capital Corp. | | | 3,500 | | | | 2,870 | |
| Penson Worldwide, Inc.* | | | 2,200 | | | | 15,708 | |
| Sanders Morris Harris Group, Inc. | | | 2,800 | | | | 20,720 | |
| Stifel Financial Corp.* | | | 600 | | | | 26,190 | |
| SWS Group, Inc. | | | 1,400 | | | | 25,984 | |
| | | | | | | | | |
| | | | | | | | 311,421 | |
| | | | | | | | | |
| |
| |
Chemicals 3.5% |
| American Pacific Corp.* | | | 600 | | | | 6,930 | |
| Arch Chemicals, Inc. | | | 1,000 | | | | 28,370 | |
| Ashland, Inc. | | | 3,400 | | | | 76,806 | |
| Cabot Corp. | | | 3,700 | | | | 97,865 | |
| Chemtura Corp. | | | 13,700 | | | | 23,701 | |
| Cytec Industries, Inc. | | | 2,600 | | | | 73,632 | |
| Ferro Corp. | | | 1,800 | | | | 27,864 | |
| GenTek, Inc.* | | | 600 | | | | 10,800 | |
| H.B. Fuller Co. | | | 1,800 | | | | 31,806 | |
| Kronos Worldwide, Inc. | | | 900 | | | | 11,430 | |
| Minerals Technologies, Inc. | | | 1,000 | | | | 56,760 | |
| N.L. Industries, Inc. | | | 2,600 | | | | 35,828 | |
| Penford Corp. | | | 1,000 | | | | 12,870 | |
2008 Annual Report 65
Statement of Investments (Continued)
October 31, 2008
Nationwide U.S. Small Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Chemicals (continued) |
| | | | | | | | | |
| PolyOne Corp.* | | | 7,100 | | | $ | 33,725 | |
| Quaker Chemical Corp. | | | 1,000 | | | | 19,130 | |
| Rockwood Holdings, Inc.* | | | 700 | | | | 8,645 | |
| Sensient Technologies Corp. | | | 1,800 | | | | 45,414 | |
| Spartech Corp. | | | 2,700 | | | | 17,172 | |
| Stepan Co. | | | 800 | | | | 28,664 | |
| Valspar Corp. | | | 5,900 | | | | 120,655 | |
| Westlake Chemical Corp. | | | 5,000 | | | | 91,150 | |
| | | | | | | | | |
| | | | | | | | 859,217 | |
| | | | | | | | | |
| |
| |
Commercial Banks 12.1% |
| 1st Source Corp. | | | 1,400 | | | | 30,044 | |
| Amcore Financial, Inc. | | | 1,235 | | | | 5,743 | |
| AmericanWest Bancorp | | | 1,000 | | | | 1,210 | |
| Ameris Bancorp | | | 600 | | | | 6,624 | |
| AmeriServ Financial, Inc.* | | | 1,800 | | | | 4,428 | |
| Appalachian Bancshares, Inc.* | | | 400 | | | | 1,988 | |
| Arrow Financial Corp. | | | 600 | | | | 15,594 | |
| Bancfirst Corp. | | | 272 | | | | 13,709 | |
| BancorpSouth, Inc. | | | 6,300 | | | | 152,901 | |
| BancTrust Financial Group, Inc. | | | 900 | | | | 11,214 | |
| Bank of Florida Corp.* | | | 1,000 | | | | 6,100 | |
| Bank of Granite Corp. | | | 1,200 | | | | 4,620 | |
| Banner Corp. | | | 1,000 | | | | 12,770 | |
| Boston Private Financial Holdings, Inc. | | | 3,600 | | | | 31,824 | |
| Cadence Financial Corp. | | | 1,000 | | | | 7,500 | |
| Capital City Bank Group, Inc. | | | 1,500 | | | | 42,000 | |
| Capital Corp. of the West | | | 1,000 | | | | 2,300 | |
| Capitol Bancorp Ltd. | | | 800 | | | | 8,192 | |
| Cardinal Financial Corp. | | | 1,900 | | | | 11,856 | |
| Center Financial Corp. | | | 1,600 | | | | 16,480 | |
| Central Jersey Bancorp* | | | 700 | | | | 4,788 | |
| Central Pacific Financial Corp. | | | 1,800 | | | | 28,080 | |
| Chemical Financial Corp. | | | 1,300 | | | | 34,151 | |
| City Holding Co. | | | 1,000 | | | | 41,840 | |
| CoBiz Financial, Inc. | | | 1,300 | | | | 15,132 | |
| Columbia Banking System, Inc. | | | 1,600 | | | | 25,472 | |
| Comerica, Inc. | | | 1,814 | | | | 50,048 | |
| Community Bank System, Inc. | | | 1,200 | | | | 29,940 | |
| Community Trust Bancorp, Inc. | | | 1,000 | | | | 33,380 | |
| Crescent Financial Corp.* | | | 300 | | | | 1,605 | |
| East West Bancorp, Inc. | | | 600 | | | | 10,410 | |
| Enterprise Financial Services Corp. | | | 963 | | | | 17,864 | |
| First Bancorp North Carolina | | | 1,500 | | | | 26,250 | |
| First Busey Corp. | | | 3,200 | | | | 59,648 | |
| First Commonwealth Financial Corp. | | | 2,900 | | | | 32,074 | |
| First Community Bancshares, Inc. | | | 600 | | | | 18,780 | |
| First Financial Bancorp | | | 3,200 | | | | 43,040 | |
| First Financial Corp. | | | 1,000 | | | | 42,280 | |
| First Regional Bancorp* | | | 400 | | | | 2,200 | |
| First Security Group, Inc. | | | 900 | | | | 6,741 | |
| First South Bancorp, Inc. | | | 700 | | | | 9,835 | |
| FirstMerit Corp. | | | 1,800 | | | | 41,976 | |
| FNB Corp. | | | 1,000 | | | | 6,430 | |
| Fulton Financial Corp. | | | 9,400 | | | | 98,700 | |
| Gateway Financial Holdings, Inc. | | | 1,000 | | | | 5,440 | |
| German American Bancorp | | | 1,000 | | | | 11,400 | |
| Great Southern Bancorp, Inc. | | | 1,000 | | | | 10,650 | |
| Green Bankshares, Inc. | | | 1,100 | | | | 21,725 | |
| Guaranty Bancorp* | | | 5,200 | | | | 22,152 | |
| Harleysville National Corp. | | | 1,900 | | | | 26,353 | |
| Heartland Financial USA, Inc. | | | 1,400 | | | | 33,250 | |
| Heritage Commerce Corp. | | | 600 | | | | 7,764 | |
| Home Bancshares, Inc. | | | 1,512 | | | | 39,372 | |
| IBERIABANK Corp. | | | 1,000 | | | | 50,940 | |
| Independent Bank Corp. | | | 1,200 | | | | 34,524 | |
| Integra Bank Corp. | | | 900 | | | | 5,427 | |
| Lakeland Bancorp, Inc. | | | 1,828 | | | | 20,145 | |
| Lakeland Financial Corp. | | | 1,000 | | | | 22,450 | |
| Macatawa Bank Corp. | | | 800 | | | | 4,008 | |
| MainSource Financial Group, Inc. | | | 1,600 | | | | 28,576 | |
| MB Financial, Inc. | | | 2,700 | | | | 80,217 | |
| MBT Financial Corp. | | | 700 | | | | 3,073 | |
| Nara Bancorp, Inc. | | | 2,300 | | | | 25,300 | |
| National Penn Bancshares, Inc. | | | 6,100 | | | | 103,334 | |
| NBT Bancorp, Inc. | | | 1,300 | | | | 36,244 | |
| NewBridge Bancorp | | | 1,500 | | | | 5,655 | |
| North Valley Bancorp | | | 390 | | | | 2,360 | |
| Old National Bancorp | | | 3,600 | | | | 68,184 | |
| Old Second Bancorp, Inc. | | | 1,000 | | | | 13,500 | |
| Pacific Capital Bancorp | | | 1,800 | | | | 35,352 | |
| Pacific Mercantile Bancorp | | | 1,000 | | | | 4,200 | |
| PacWest Bancorp | | | 1,500 | | | | 37,485 | |
| Park National Corp. | | | 1,000 | | | | 72,750 | |
| Peoples Bancorp, Inc. | | | 1,000 | | | | 19,150 | |
| Pinnacle Financial Partners, Inc.* | | | 500 | | | | 14,630 | |
| Preferred Bank | | | 600 | | | | 4,194 | |
| PrivateBancorp, Inc. | | | 700 | | | | 25,207 | |
| Prosperity Bancshares, Inc. | | | 257 | | | | 8,535 | |
| Provident Bankshares Corp. | | | 1,900 | | | | 20,273 | |
| Renasant Corp. | | | 1,800 | | | | 37,728 | |
| S&T Bancorp, Inc. | | | 1,300 | | | | 44,330 | |
| Sandy Spring Bancorp, Inc. | | | 1,000 | | | | 21,470 | |
| SCBT Financial Corp. | | | 600 | | | | 20,334 | |
| Seacoast Banking Corp. of Florida | | | 1,800 | | | | 15,984 | |
| Simmons First National Corp., Class A | | | 800 | | | | 24,816 | |
| Smithtown Bancorp, Inc. | | | 700 | | | | 13,769 | |
| Somerset Hills Bancorp | | | 400 | | | | 3,400 | |
| South Financial Group, Inc. (The) | | | 3,900 | | | | 22,659 | |
66 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Commercial Banks (continued) |
| | | | | | | | | |
| Southern Community Financial Corp. | | | 1,400 | | | $ | 5,432 | |
| Southside Bancshares, Inc. | | | 800 | | | | 19,272 | |
| Southwest Bancorp, Inc. | | | 1,300 | | | | 18,824 | |
| State Bancorp, Inc. | | | 1,000 | | | | 12,740 | |
| StellarOne Corp. | | | 2,000 | | | | 34,000 | |
| Sterling Bancorp | | | 200 | | | | 3,136 | |
| Sterling Bancshares, Inc. | | | 3,900 | | | | 31,044 | |
| Susquehanna Bancshares, Inc. | | | 3,400 | | | | 52,666 | |
| Texas Capital Bancshares, Inc.* | | | 600 | | | | 10,710 | |
| TIB Financial Corp. | | | 1,122 | | | | 5,060 | |
| Tompkins Financial Corp. | | | 600 | | | | 29,400 | |
| Trico Bancshares | | | 1,000 | | | | 21,540 | |
| Trustmark Corp. | | | 300 | | | | 6,156 | |
| UCBH Holdings, Inc. | | | 5,600 | | | | 29,568 | |
| UMB Financial Corp. | | | 868 | | | | 39,346 | |
| Umpqua Holdings Corp. | | | 3,300 | | | | 56,166 | |
| Union Bankshares Corp. | | | 1,200 | | | | 28,596 | |
| United Bankshares, Inc. | | | 200 | | | | 6,380 | |
| United Community Banks, Inc. | | | 500 | | | | 6,560 | |
| Univest Corp. of Pennsylvania | | | 1,100 | | | | 34,034 | |
| Washington Trust Bancorp, Inc. | | | 300 | | | | 6,396 | |
| Webster Financial Corp. | | | 3,300 | | | | 61,182 | |
| WesBanco, Inc. | | | 2,300 | | | | 62,514 | |
| West Bancorp, Inc. | | | 1,500 | | | | 18,750 | |
| Western Alliance Bancorp* | | | 3,400 | | | | 50,354 | |
| Whitney Holding Corp. | | | 369 | | | | 7,011 | |
| Wilshire Bancorp, Inc. | | | 1,600 | | | | 17,648 | |
| Wintrust Financial Corp. | | | 1,500 | | | | 38,400 | |
| Yadkin Valley Financial Corp. | | | 900 | | | | 13,401 | |
| | | | | | | | | |
| | | | | | | | 2,922,356 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 3.2% |
| ABM Industries, Inc. | | | 2,700 | | | | 44,091 | |
| ACCO Brands Corp.* | | | 4,100 | | | | 11,562 | |
| Barrett Business Services, Inc. | | | 500 | | | | 5,500 | |
| Bowne & Co., Inc. | | | 1,500 | | | | 11,685 | |
| CDI Corp. | | | 1,300 | | | | 16,900 | |
| Collectors Universe | | | 1,100 | | | | 4,081 | |
| Comfort Systems U.S.A., Inc. | | | 2,200 | | | | 20,526 | |
| Cornell Cos., Inc.* | | | 800 | | | | 18,216 | |
| CRA International, Inc.* | | | 600 | | | | 16,236 | |
| Ennis, Inc. | | | 2,500 | | | | 29,425 | |
| G & K Services, Inc., Class A | | | 1,100 | | | | 24,849 | |
| Geo Group, Inc. (The)* | | | 1,000 | | | | 17,660 | |
| GP Strategies Corp.* | | | 400 | | | | 2,408 | |
| Heidrick & Struggles International, Inc. | | | 1,000 | | | | 24,130 | |
| Hudson Highland Group, Inc.* | | | 2,200 | | | | 11,528 | |
| ICT Group, Inc.* | | | 700 | | | | 3,689 | |
| IKON Office Solutions, Inc. | | | 7,100 | | | | 122,333 | |
| Intersections, Inc.* | | | 1,000 | | | | 8,400 | |
| Kelly Services, Inc., Class A | | | 1,800 | | | | 25,632 | |
| Kforce, Inc.* | | | 3,500 | | | | 27,545 | |
| Kimball International, Inc., Class B | | | 1,430 | | | | 10,653 | |
| LECG Corp.* | | | 1,400 | | | | 6,720 | |
| M & F Worldwide Corp.* | | | 900 | | | | 20,745 | |
| McGrath Rentcorp | | | 1,400 | | | | 31,836 | |
| Mobile Mini, Inc.* | | | 2,700 | | | | 45,360 | |
| Multi-Color Corp. | | | 700 | | | | 13,790 | |
| On Assignment, Inc.* | | | 1,900 | | | | 12,350 | |
| PHH Corp.* | | | 4,100 | | | | 33,046 | |
| RCM Technologies, Inc.* | | | 1,100 | | | | 1,254 | |
| Schawk, Inc. | | | 2,400 | | | | 31,512 | |
| School Specialty, Inc.* | | | 1,100 | | | | 23,100 | |
| Standard Register Co. (The) | | | 1,300 | | | | 10,569 | |
| Sunair Services Corp.* | | | 1,100 | | | | 2,255 | |
| Superior Uniform Group, Inc. | | | 300 | | | | 2,997 | |
| SYKES Enterprises, Inc.* | | | 800 | | | | 12,768 | |
| TrueBlue, Inc.* | | | 800 | | | | 6,664 | |
| United Stationers, Inc.* | | | 500 | | | | 18,695 | |
| Viad Corp. | | | 1,600 | | | | 34,960 | |
| Virco Manufacturing Corp. | | | 900 | | | | 2,466 | |
| Volt Information Sciences, Inc.* | | | 1,900 | | | | 14,535 | |
| WCA Waste Corp.* | | | 114 | | | | 371 | |
| | | | | | | | | |
| | | | | | | | 783,042 | |
| | | | | | | | | |
| |
| |
Communications Equipment 2.6% |
| Arris Group, Inc.* | | | 9,300 | | | | 64,263 | |
| Avocent Corp.* | | | 3,400 | | | | 51,068 | |
| Aware, Inc.* | | | 1,300 | | | | 2,925 | |
| Bel Fuse, Inc., Class B | | | 900 | | | | 19,530 | |
| Bookham, Inc.* | | | 5,400 | | | | 2,916 | |
| CommScope, Inc.* | | | 800 | | | | 11,768 | |
| Communications Systems, Inc. | | | 700 | | | | 5,600 | |
| Digi International, Inc.* | | | 2,500 | | | | 25,600 | |
| EMS Technologies, Inc.* | | | 1,200 | | | | 25,080 | |
| Emulex Corp.* | | | 1,700 | | | | 16,150 | |
| Endwave Corp.* | | | 800 | | | | 2,640 | |
| Extreme Networks, Inc.* | | | 2,700 | | | | 4,968 | |
| Globecomm Systems, Inc.* | | | 1,400 | | | | 11,032 | |
| Harris Stratex Networks, Inc., Class A* | | | 2,500 | | | | 16,575 | |
| Ixia* | | | 1,600 | | | | 10,656 | |
| JDS Uniphase Corp.* | | | 2,400 | | | | 13,104 | |
| KVH Industries, Inc.* | | | 1,000 | | | | 5,860 | |
| Network Equipment Technologies, Inc.* | | | 1,500 | | | | 4,095 | |
| Nextwave Wireless, Inc.* | | | 3,000 | | | | 840 | |
| Occam Networks, Inc.* | | | 800 | | | | 2,248 | |
| Oplink Communications, Inc.* | | | 1,676 | | | | 13,609 | |
| Opnext, Inc.* | | | 5,731 | | | | 22,924 | |
| Optical Cable Corp.* | | | 300 | | | | 1,377 | |
| Orbcomm, Inc.* | | | 2,300 | | | | 6,900 | |
| PC-Tel, Inc. | | | 1,200 | | | | 7,044 | |
| Performance Technologies, Inc.* | | | 500 | | | | 1,555 | |
| Plantronics, Inc. | | | 1,600 | | | | 23,104 | |
2008 Annual Report 67
Statement of Investments (Continued)
October 31, 2008
Nationwide U.S. Small Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Communications Equipment (continued) |
| | | | | | | | | |
| Powerwave Technologies, Inc.* | | | 10,000 | | | $ | 9,500 | |
| SCM Microsystems, Inc.* | | | 700 | | | | 1,393 | |
| Seachange International, Inc.* | | | 2,300 | | | | 17,572 | |
| Sycamore Networks, Inc.* | | | 21,500 | | | | 71,810 | |
| Symmetricom, Inc.* | | | 1,500 | | | | 6,675 | |
| Tekelec* | | | 1,300 | | | | 16,497 | |
| Tellabs, Inc.* | | | 22,200 | | | | 94,128 | |
| Tollgrade Communications, Inc.* | | | 1,200 | | | | 5,280 | |
| UTStarcom, Inc.* | | | 12,400 | | | | 29,512 | |
| | | | | | | | | |
| | | | | | | | 625,798 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 0.6% |
| Actividentity Corp.* | | | 2,500 | | | | 5,000 | |
| Adaptec, Inc.* | | | 10,700 | | | | 34,347 | |
| Avid Technology, Inc.* | | | 200 | | | | 2,966 | |
| Dot Hill Systems Corp.* | | | 3,400 | | | | 4,046 | |
| Electronics for Imaging, Inc.* | | | 3,100 | | | | 32,860 | |
| Hypercom Corp.* | | | 4,700 | | | | 9,165 | |
| Imation Corp. | | | 2,900 | | | | 35,728 | |
| Intevac, Inc.* | | | 1,900 | | | | 14,782 | |
| Presstek, Inc.* | | | 2,000 | | | | 8,360 | |
| Quantum Corp.* | | | 11,000 | | | | 3,190 | |
| Techteam Global, Inc.* | | | 1,000 | | | | 5,850 | |
| | | | | | | | | |
| | | | | | | | 156,294 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 1.4% |
| Dycom Industries, Inc.* | | | 4,000 | | | | 35,520 | |
| EMCOR Group, Inc.* | | | 3,000 | | | | 53,310 | |
| Granite Construction, Inc. | | | 700 | | | | 24,969 | |
| Great Lakes Dredge & Dock Corp. | | | 4,900 | | | | 21,952 | |
| Insituform Technologies, Inc., Class A* | | | 2,400 | | | | 32,232 | |
| Layne Christensen Co.* | | | 500 | | | | 13,140 | |
| Pike Electric Corp.* | | | 1,800 | | | | 15,750 | |
| Sterling Construction Co., Inc.* | | | 700 | | | | 9,247 | |
| URS Corp.* | | | 4,800 | | | | 141,072 | |
| | | | | | | | | |
| | | | | | | | 347,192 | |
| | | | | | | | | |
| |
| |
Construction Materials 0.2% |
| Headwaters, Inc. | | | 3,700 | | | | 39,220 | |
| U.S. Concrete, Inc.* | | | 3,500 | | | | 11,025 | |
| | | | | | | | | |
| | | | | | | | 50,245 | |
| | | | | | | | | |
| |
| |
Consumer Finance 0.6% |
| Advanta Corp., Class A | | | 1,300 | | | | 3,081 | |
| Advanta Corp., Class B | | | 3,100 | | | | 14,012 | |
| AmeriCredit Corp.* | | | 8,800 | | | | 51,568 | |
| Cash America International, Inc. | | | 700 | | | | 24,759 | |
| Consumer Portfolio Services, Inc.* | | | 1,500 | | | | 1,620 | |
| Nelnet, Inc., Class A | | | 3,300 | | | | 48,279 | |
| Rewards Network, Inc.* | | | 1,400 | | | | 5,320 | |
| United Panam Financial Corp.* | | | 100 | | | | 175 | |
| | | | | | | | | |
| | | | | | | | 148,814 | |
| | | | | | | | | |
| |
| |
Containers & Packaging 0.8% |
| Bemis Co., Inc. | | | 5,400 | | | | 134,136 | |
| Caraustar Industries, Inc.* | | | 2,600 | | | | 939 | |
| Graphic Packaging Holding Co.* | | | 15,800 | | | | 29,230 | |
| Myers Industries, Inc. | | | 800 | | | | 8,456 | |
| Rock-Tenn Co., Class A | | | 700 | | | | 21,287 | |
| Temple-Inland, Inc. | | | 1,000 | | | | 5,930 | |
| | | | | | | | | |
| | | | | | | | 199,978 | |
| | | | | | | | | |
| |
| |
Distributors 0.1% |
| Core-Mark Holding Co., Inc.* | | | 1,000 | | | | 19,770 | |
| Design Within Reach, Inc.* | | | 1,300 | | | | 2,613 | |
| | | | | | | | | |
| | | | | | | | 22,383 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 0.3% |
| Carriage Services, Inc.* | | | 1,570 | | | | 3,737 | |
| Lincoln Educational Services Corp.* | | | 1,400 | | | | 20,244 | |
| Mac-Gray Corp.* | | | 100 | | | | 759 | |
| National Technical Systems, Inc. | | | 400 | | | | 1,560 | |
| Regis Corp. | | | 3,300 | | | | 40,821 | |
| Stewart Enterprises, Inc., Class A | | | 2,300 | | | | 11,891 | |
| | | | | | | | | |
| | | | | | | | 79,012 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 0.5% |
| Asset Acceptance Capital Corp.* | | | 1,700 | | | | 13,787 | |
| Compass Diversified Holdings | | | 397 | | | | 4,843 | |
| Encore Capital Group, Inc.* | | | 2,000 | | | | 18,720 | |
| Financial Federal Corp. | | | 1,000 | | | | 23,150 | |
| Medallion Financial Corp. | | | 1,600 | | | | 12,944 | |
| NewStar Financial, Inc.* | | | 4,300 | | | | 23,263 | |
| Pico Holdings, Inc.* | | | 500 | | | | 12,520 | |
| Portfolio Recovery Associates, Inc.* | | | 500 | | | | 17,940 | |
| | | | | | | | | |
| | | | | | | | 127,167 | |
| | | | | | | | | |
| |
| |
Diversified Telecommunication Services 0.9% |
| Arbinet-thexchange, Inc. | | | 1,400 | | | | 4,060 | |
| CenturyTel, Inc. | | | 6,000 | | | | 150,660 | |
| Consolidated Communications Holdings, Inc. | | | 1,600 | | | | 16,480 | |
| General Communication, Inc., Class A* | | | 4,400 | | | | 33,792 | |
| iBasis, Inc.* | | | 2,700 | | | | 5,967 | |
| | | | | | | | | |
| | | | | | | | 210,959 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 1.2% |
| A.O. Smith Corp. | | | 1,700 | | | | 53,635 | |
| Belden, Inc. | | | 3,400 | | | | 70,856 | |
| BTU International, Inc.* | | | 700 | | | | 3,472 | |
68 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Electrical Equipment (continued) |
| | | | | | | | | |
| Coleman Cable, Inc.* | | | 1,200 | | | $ | 8,352 | |
| Encore Wire Corp. | | | 2,300 | | | | 44,091 | |
| EnerSys* | | | 2,400 | | | | 31,728 | |
| LSI Industries, Inc. | | | 1,600 | | | | 12,560 | |
| Magnetek, Inc.* | | | 600 | | | | 1,290 | |
| Regal-Beloit Corp. | | | 1,700 | | | | 55,352 | |
| Thomas & Betts Corp.* | | | 700 | | | | 16,625 | |
| | | | | | | | | |
| | | | | | | | 297,961 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 4.8% |
| Arrow Electronics, Inc.* | | | 4,400 | | | | 76,780 | |
| Avnet, Inc.* | | | 5,500 | | | | 92,070 | |
| AVX Corp. | | | 9,300 | | | | 83,886 | |
| Benchmark Electronics, Inc.* | | | 5,200 | | | | 62,348 | |
| CalAmp Corp.* | | | 800 | | | | 624 | |
| Checkpoint Systems, Inc.* | | | 3,000 | | | | 37,830 | |
| Cogent, Inc.* | | | 1,800 | | | | 16,452 | |
| Cognex Corp. | | | 2,300 | | | | 36,846 | |
| CPI International, Inc.* | | | 400 | | | | 3,944 | |
| CyberOptics Corp.* | | | 400 | | | | 3,096 | |
| DDi Corp.* | | | 1,000 | | | | 4,480 | |
| Electro Rent Corp. | | | 2,300 | | | | 27,577 | |
| FARO Technologies, Inc.* | | | 900 | | | | 13,653 | |
| Frequency Electronics, Inc.* | | | 1,000 | | | | 4,310 | |
| Gerber Scientific, Inc.* | | | 1,400 | | | | 6,692 | |
| GTSI Corp.* | | | 1,000 | | | | 5,810 | |
| I.D. Systems, Inc.* | | | 29 | | | | 158 | |
| Ingram Micro, Inc., Class A* | | | 9,300 | | | | 123,969 | |
| Intelli-Check — Mobilisa, Inc.* | | | 1,000 | | | | 2,300 | |
| Jabil Circuit, Inc. | | | 7,600 | | | | 63,916 | |
| Keithley Instruments, Inc. | | | 1,200 | | | | 5,100 | |
| L-1 Identity Solutions, Inc.* | | | 5,900 | | | | 48,380 | |
| Lecroy Corp.* | | | 1,000 | | | | 4,970 | |
| Littelfuse, Inc.* | | | 1,200 | | | | 22,392 | |
| Mercury Computer Systems, Inc.* | | | 1,200 | | | | 8,616 | |
| Methode Electronics, Inc. | | | 3,800 | | | | 28,842 | |
| Multi-Fineline Electronix, Inc.* | | | 1,400 | | | | 16,352 | |
| Napco Security Systems, Inc.* | | | 1,700 | | | | 3,468 | |
| Nu Horizons Electronics Corp.* | | | 1,000 | | | | 1,880 | |
| OSI Systems, Inc.* | | | 1,000 | | | | 11,500 | |
| PAR Technology Corp.* | | | 1,300 | | | | 6,435 | |
| Park Electrochemical Corp. | | | 500 | | | | 10,810 | |
| PC Mall, Inc.* | | | 1,300 | | | | 5,824 | |
| Perceptron, Inc.* | | | 700 | | | | 2,968 | |
| Planar Systems, Inc.* | | | 1,000 | | | | 2,000 | |
| Plexus Corp.* | | | 2,500 | | | | 46,650 | |
| RadiSys Corp.* | | | 2,200 | | | | 14,014 | |
| Richardson Electronics Ltd. | | | 1,400 | | | | 7,028 | |
| Rogers Corp.* | | | 500 | | | | 15,050 | |
| ScanSource, Inc.* | | | 600 | | | | 11,904 | |
| Spectrum Control, Inc.* | | | 1,000 | | | | 6,230 | |
| SYNNEX Corp.* | | | 2,500 | | | | 38,575 | |
| Tech Data Corp.* | | | 3,000 | | | | 64,350 | |
| Technitrol, Inc. | | | 1,925 | | | | 11,107 | |
| TTM Technologies, Inc.* | | | 4,200 | | | | 30,072 | |
| Vishay Intertechnology, Inc.* | | | 9,600 | | | | 41,376 | |
| X-Rite, Inc.* | | | 1,600 | | | | 5,152 | |
| Zones, Inc.* | | | 600 | | | | 4,866 | |
| Zygo Corp.* | | | 1,600 | | | | 13,744 | |
| | | | | | | | | |
| | | | | | | | 1,156,396 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 1.8% |
| Allis-Chalmers Energy, Inc.* | | | 3,000 | | | | 20,280 | |
| Bristow Group, Inc.* | | | 1,800 | | | | 44,586 | |
| Bronco Drilling Co., Inc.* | | | 1,400 | | | | 10,808 | |
| Cal Dive International, Inc.* | | | 1,400 | | | | 11,914 | |
| Geokinetics, Inc.* | | | 800 | | | | 4,560 | |
| Gulf Island Fabrication, Inc. | | | 1,000 | | | | 19,710 | |
| Hornbeck Offshore Services, Inc.* | | | 1,400 | | | | 33,320 | |
| Mitcham Industries, Inc.* | | | 700 | | | | 3,822 | |
| Newpark Resources, Inc.* | | | 1,200 | | | | 6,900 | |
| OMNI Energy Services Corp.* | | | 1,400 | | | | 3,150 | |
| Parker Drilling Co.* | | | 1,500 | | | | 7,680 | |
| Patterson-UTI Energy, Inc. | | | 579 | | | | 7,683 | |
| PHI, Inc. — Non Voting* | | | 1,000 | | | | 20,980 | |
| Pioneer Drilling Co.* | | | 3,000 | | | | 23,220 | |
| Rowan Cos., Inc. | | | 3,000 | | | | 54,420 | |
| SEACOR Holdings, Inc.* | | | 1,300 | | | | 87,321 | |
| Trico Marine Services, Inc.* | | | 1,000 | | | | 9,000 | |
| Union Drilling, Inc.* | | | 1,200 | | | | 6,576 | |
| Unit Corp.* | | | 1,300 | | | | 48,802 | |
| | | | | | | | | |
| | | | | | | | 424,732 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 1.2% |
| Andersons, Inc. (The) | | | 1,000 | | | | 26,630 | |
| Casey’s General Stores, Inc. | | | 1,700 | | | | 51,340 | |
| Ruddick Corp. | | | 2,600 | | | | 74,464 | |
| Weis Markets, Inc. | | | 2,100 | | | | 68,124 | |
| Winn-Dixie Stores, Inc.* | | | 4,100 | | | | 61,582 | |
| | | | | | | | | |
| | | | | | | | 282,140 | |
| | | | | | | | | |
| |
| |
Food Products 2.6% |
| B&G Foods, Inc., Class A | | | 2,800 | | | | 10,444 | |
| Chiquita Brands International, Inc.* | | | 3,300 | | | | 45,045 | |
| Corn Products International, Inc. | | | 1,300 | | | | 31,616 | |
| Del Monte Foods Co. | | | 10,900 | | | | 68,779 | |
| Farmer Bros Co. | | | 1,300 | | | | 31,200 | |
| Hain Celestial Group, Inc.* | | | 2,100 | | | | 48,804 | |
| Imperial Sugar Co. | | | 1,000 | | | | 11,840 | |
| J&J Snack Foods Corp. | | | 1,100 | | | | 34,496 | |
| J.M. Smucker Co. (The) | | | 3,100 | | | | 138,136 | |
| John B. Sanfilippo & Son, Inc.* | | | 300 | | | | 2,163 | |
| Sanderson Farms, Inc. | | | 500 | | | | 15,610 | |
| Smart Balance, Inc.* | | | 4,700 | | | | 33,652 | |
2008 Annual Report 69
Statement of Investments (Continued)
October 31, 2008
Nationwide U.S. Small Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Food Products (continued) |
| | | | | | | | | |
| Smithfield Foods, Inc.* | | | 7,700 | | | $ | 81,004 | |
| TreeHouse Foods, Inc.* | | | 2,400 | | | | 72,624 | |
| | | | | | | | | |
| | | | | | | | 625,413 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 1.8% |
| Advanced Medical Optics, Inc.* | | | 1,200 | | | | 7,404 | |
| Alphatec Holdings, Inc.* | | | 1,145 | | | | 4,500 | |
| Analogic Corp. | | | 500 | | | | 22,080 | |
| AngioDynamics, Inc.* | | | 2,400 | | | | 30,240 | |
| ATS Medical, Inc.* | | | 4,200 | | | | 11,130 | |
| Cantel Medical Corp.* | | | 1,000 | | | | 9,600 | |
| Cardiac Science Corp.* | | | 1,200 | | | | 11,196 | |
| CONMED Corp.* | | | 2,200 | | | | 57,640 | |
| Cooper Cos., Inc. (The) | | | 3,500 | | | | 57,680 | |
| Datascope Corp. | | | 100 | | | | 5,017 | |
| ev3, Inc.* | | | 8,000 | | | | 51,760 | |
| Greatbatch, Inc.* | | | 1,700 | | | | 36,975 | |
| Healthtronics, Inc.* | | | 3,450 | | | | 6,693 | |
| Home Diagnostics, Inc.* | | | 1,100 | | | | 9,581 | |
| Invacare Corp. | | | 2,000 | | | | 36,380 | |
| Misonix, Inc.* | | | 600 | | | | 1,230 | |
| Osteotech, Inc.* | | | 1,400 | | | | 4,466 | |
| Rochester Medical Corp.* | | | 400 | | | | 5,000 | |
| RTI Biologics, Inc.* | | | 4,100 | | | | 12,505 | |
| Theragenics Corp.* | | | 3,000 | | | | 5,850 | |
| Thoratec Corp.* | | | 1,100 | | | | 27,082 | |
| Young Innovations, Inc. | | | 700 | | | | 11,900 | |
| | | | | | | | | |
| | | | | | | | 425,909 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 3.4% |
| Allion Healthcare, Inc.* | | | 1,700 | | | | 7,361 | |
| American Dental Partners, Inc.* | | | 1,100 | | | | 9,603 | |
| AMN Healthcare Services, Inc.* | | | 1,800 | | | | 16,182 | |
| Amsurg Corp.* | | | 1,300 | | | | 32,422 | |
| Assisted Living Concepts, Inc., Class A* | | | 4,100 | | | | 20,377 | |
| Bioscrip, Inc.* | | | 2,000 | | | | 6,000 | |
| Brookdale Senior Living, Inc. | | | 3,000 | | | | 25,860 | |
| Capital Senior Living Corp.* | | | 2,400 | | | | 10,776 | |
| Community Health Systems, Inc.* | | | 2,200 | | | | 45,100 | |
| Continucare Corp.* | | | 6,000 | | | | 14,160 | |
| Emeritus Corp.* | | | 800 | | | | 9,224 | |
| Five Star Quality Care, Inc.* | | | 2,200 | | | | 4,312 | |
| Gentiva Health Services, Inc.* | | | 2,200 | | | | 59,730 | |
| Hanger Orthopedic Group, Inc.* | | | 1,300 | | | | 21,658 | |
| HealthSpring, Inc.* | | | 4,500 | | | | 74,340 | |
| Integramed America, Inc.* | | | 1,000 | | | | 5,160 | |
| inVentiv Health, Inc.* | | | 700 | | | | 6,629 | |
| LifePoint Hospitals, Inc.* | | | 2,000 | | | | 47,940 | |
| MedCath Corp.* | | | 1,900 | | | | 29,298 | |
| Medical Staffing Network Holdings, Inc.* | | | 1,400 | | | | 602 | |
| Molina Healthcare, Inc.* | | | 1,500 | | | | 33,405 | |
| National HealthCare Corp. | | | 500 | | | | 20,505 | |
| NovaMed, Inc.* | | | 2,200 | | | | 7,788 | |
| Odyssey HealthCare, Inc.* | | | 1,800 | | | | 17,262 | |
| Omnicare, Inc. | | | 6,900 | | | | 190,233 | |
| PDI, Inc.* | | | 800 | | | | 3,880 | |
| Providence Service Corp. (The)* | | | 1,000 | | | | 1,200 | |
| RehabCare Group, Inc.* | | | 1,800 | | | | 30,834 | |
| Res-Care, Inc.* | | | 2,200 | | | | 33,902 | |
| Sunrise Senior Living, Inc.* | | | 1,000 | | | | 3,020 | |
| Universal American Corp.* | | | 2,602 | | | | 23,028 | |
| | | | | | | | | |
| | | | | | | | 811,791 | |
| | | | | | | | | |
| |
| |
Health Care Technology 0.1% |
| Allscripts Healthcare Solutions, Inc. | | | 400 | | | | 2,600 | |
| AMICAS, Inc.* | | | 3,800 | | | | 7,030 | |
| Vital Images, Inc.* | | | 1,300 | | | | 16,965 | |
| | | | | | | | | |
| | | | | | | | 26,595 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 1.7% |
| Bluegreen Corp.* | | | 1,500 | | | | 7,275 | |
| Bob Evans Farms, Inc. | | | 1,900 | | | | 39,672 | |
| California Pizza Kitchen, Inc.* | | | 1,400 | | | | 13,678 | |
| Churchill Downs, Inc. | | | 1,000 | | | | 37,980 | |
| DineEquity, Inc. | | | 1,400 | | | | 25,242 | |
| Dover Motorsports, Inc. | | | 1,000 | | | | 2,140 | |
| FortuNet, Inc.* | | | 400 | | | | 1,636 | |
| Gaylord Entertainment Co.* | | | 1,200 | | | | 25,692 | |
| Interstate Hotels & Resorts, Inc.* | | | 2,502 | | | | 2,452 | |
| J. Alexander’s Corp. | | | 500 | | | | 2,425 | |
| Luby’s, Inc.* | | | 2,200 | | | | 10,648 | |
| Marcus Corp. | | | 1,800 | | | | 25,254 | |
| McCormick & Schmick’s Seafood Restaurants, Inc.* | | | 1,300 | | | | 6,357 | |
| Morton’s Restaurant Group, Inc.* | | | 1,600 | | | | 5,536 | |
| MTR Gaming Group, Inc.* | | | 2,160 | | | | 5,789 | |
| Multimedia Games, Inc.* | | | 1,600 | | | | 4,832 | |
| Red Lion Hotels Corp.* | | | 1,000 | | | | 2,770 | |
| Rubio’s Restaurants, Inc.* | | | 1,000 | | | | 4,380 | |
| Ruby Tuesday, Inc. | | | 5,200 | | | | 12,532 | |
| Speedway Motorsports, Inc. | | | 2,400 | | | | 38,280 | |
| Steak N Shake Co. (The)* | | | 1,700 | | | | 8,755 | |
| Vail Resorts, Inc.* | | | 1,000 | | | | 33,260 | |
| VCG Holding Corp.* | | | 1,100 | | | | 2,662 | |
| Wendy’s/Arby’s Group, Inc., Class A | | | 150 | | | | 543 | |
| Wyndham Worldwide Corp. | | | 10,000 | | | | 81,900 | |
| | | | | | | | | |
| | | | | | | | 401,690 | |
| | | | | | | | | |
| |
| |
Household Durables 3.8% |
| Acme United Corp. | | | 200 | | | | 2,010 | |
| Bassett Furniture Industries, Inc. | | | 1,000 | | | | 4,410 | |
| Brookfield Homes Corp. | | | 2,300 | | | | 21,068 | |
| Cavco Industries, Inc.* | | | 500 | | | | 17,015 | |
70 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Household Durables (continued) |
| | | | | | | | | |
| Central Garden & Pet Co.* | | | 2,100 | | | $ | 7,098 | |
| Champion Enterprises, Inc.* | | | 4,200 | | | | 7,854 | |
| Craftmade International, Inc. | | | 300 | | | | 573 | |
| CSS Industries, Inc. | | | 1,000 | | | | 22,200 | |
| Ethan Allen Interiors, Inc. | | | 800 | | | | 14,312 | |
| Furniture Brands International, Inc. | | | 3,700 | | | | 21,053 | |
| Helen of Troy Ltd.* | | | 2,700 | | | | 48,573 | |
| Hovnanian Enterprises, Inc., Class A* | | | 5,500 | | | | 23,595 | |
| Jarden Corp.* | | | 5,900 | | | | 105,020 | |
| KB Home | | | 1,000 | | | | 16,690 | |
La-Z-Boy, Inc. | | | 4,500 | | | | 26,010 | |
| Leggett & Platt, Inc. | | | 9,200 | | | | 159,712 | |
| M.D.C. Holdings, Inc. | | | 2,700 | | | | 90,801 | |
| M/I Homes, Inc. | | | 1,400 | | | | 19,054 | |
| Meritage Homes Corp.* | | | 2,700 | | | | 37,071 | |
| Mohawk Industries, Inc.* | | | 3,900 | | | | 188,682 | |
| Orleans Homebuilders, Inc. | | | 1,500 | | | | 4,605 | |
| Palm Harbor Homes, Inc.* | | | 1,200 | | | | 10,320 | |
| Ryland Group, Inc. | | | 1,200 | | | | 22,548 | |
| Skyline Corp. | | | 800 | | | | 17,296 | |
| Standard Pacific Corp.* | | | 6,400 | | | | 18,240 | |
| Stanley Furniture Co., Inc. | | | 800 | | | | 7,872 | |
| | | | | | | | | |
| | | | | | | | 913,682 | |
| | | | | | | | | |
| |
| |
Household Products 0.1% |
| Central Garden & Pet Co., Class A* | | | 4,200 | | | | 13,356 | |
| | | | | | | | | |
| |
| |
Industrial Conglomerate 0.1% |
| Standex International Corp. | | | 1,100 | | | | 28,391 | |
| | | | | | | | | |
| |
| |
Information Technology Services 1.5% |
| Acxiom Corp. | | | 1,500 | | | | 11,790 | |
| CACI International, Inc., Class A* | | | 1,600 | | | | 65,888 | |
| Convergys Corp.* | | | 6,900 | | | | 53,061 | |
| Edgewater Technology, Inc.* | | | 400 | | | | 860 | |
| Fidelity National Information Services, Inc. | | | 2,600 | | | | 39,234 | |
| Gevity HR, Inc. | | | 1,100 | | | | 3,751 | |
| Hackett Group, Inc.* | | | 1,600 | | | | 4,768 | |
| infoGROUP, Inc. | | | 2,700 | | | | 12,042 | |
| Lionbridge Technologies, Inc.* | | | 2,600 | | | | 4,524 | |
| Perot Systems Corp., Class A* | | | 6,700 | | | | 96,413 | |
| SI International, Inc.* | | | 1,200 | | | | 34,560 | |
| SM&A* | | | 1,700 | | | | 9,350 | |
| SRA International, Inc., Class A* | | | 900 | | | | 16,632 | |
| StarTek, Inc.* | | | 1,300 | | | | 4,303 | |
| | | | | | | | | |
| | | | | | | | 357,176 | |
| | | | | | | | | |
| |
| |
Insurance 10.5% |
| 21st Century Holding Co. | | | 400 | | | | 2,168 | |
| Affirmative Insurance Holdings, Inc. | | | 500 | | | | 595 | |
| AmCOMP, Inc.* | | | 800 | | | | 9,712 | |
| American Financial Group, Inc. | | | 6,400 | | | | 145,472 | |
| Amerisafe, Inc.* | | | 1,700 | | | | 29,308 | |
| Amtrust Financial Services, Inc. | | | 1,300 | | | | 12,766 | |
| Argo Group International Holdings Ltd.* | | | 300 | | | | 9,570 | |
| Cincinnati Financial Corp. | | | 3,300 | | | | 85,767 | |
| CNA Surety Corp.* | | | 2,400 | | | | 33,240 | |
| Conseco, Inc.* | | | 10,400 | | | | 19,344 | |
| Delphi Financial Group, Inc., Class A | | | 3,200 | | | | 50,400 | |
| Donegal Group, Inc., Class A | | | 1,800 | | | | 29,484 | |
| Eastern Insurance Holdings, Inc. | | | 1,000 | | | | 9,390 | |
| FBL Financial Group, Inc., Class A | | | 1,800 | | | | 31,428 | |
| Fidelity National Financial, Inc., Class A | | | 12,600 | | | | 113,526 | |
| First Acceptance Corp.* | | | 2,704 | | | | 8,247 | |
| First American Corp. | | | 5,200 | | | | 106,132 | |
| First Mercury Financial Corp.* | | | 1,800 | | | | 19,422 | |
| FPIC Insurance Group, Inc.* | | | 1,000 | | | | 44,760 | |
| Hallmark Financial Services* | | | 1,100 | | | | 7,150 | |
| Hanover Insurance Group, Inc. (The) | | | 2,800 | | | | 109,900 | |
| HCC Insurance Holdings, Inc. | | | 6,100 | | | | 134,566 | |
| Hilltop Holdings, Inc.* | | | 4,300 | | | | 40,420 | |
| Independence Holding Co. | | | 1,400 | | | | 9,142 | |
| Meadowbrook Insurance Group, Inc. | | | 2,045 | | | | 10,777 | |
| Mercer Insurance Group, Inc. | | | 500 | | | | 6,440 | |
| Mercury General Corp. | | | 2,400 | | | | 123,288 | |
| National Financial Partners Corp. | | | 2,500 | | | | 16,650 | |
| Navigators Group, Inc.* | | | 1,000 | | | | 50,510 | |
| NYMAGIC, Inc. | | | 192 | | | | 3,350 | |
| Odyssey Re Holdings Corp. | | | 3,800 | | | | 149,872 | |
| Old Republic International Corp. | | | 13,000 | | | | 119,730 | |
| Penn Treaty American Corp.* | | | 1,300 | | | | 182 | |
| ProAssurance Corp.* | | | 2,500 | | | | 137,375 | |
| Protective Life Corp. | | | 3,800 | | | | 31,730 | |
| Reinsurance Group of America, Inc., Class A | | | 3,300 | | | | 123,222 | |
| RLI Corp. | | | 900 | | | | 51,651 | |
| Safety Insurance Group, Inc. | | | 1,000 | | | | 37,990 | |
| SeaBright Insurance Holdings, Inc.* | | | 1,900 | | | | 19,874 | |
| Specialty Underwriters’ Alliance, Inc.* | | | 700 | | | | 2,436 | |
| State Auto Financial Corp. | | | 2,200 | | | | 57,948 | |
| Stewart Information Services Corp. | | | 1,500 | | | | 24,900 | |
| Tower Group, Inc. | | | 600 | | | | 12,618 | |
| Transatlantic Holdings, Inc. | | | 3,764 | | | | 161,288 | |
2008 Annual Report 71
Statement of Investments (Continued)
October 31, 2008
Nationwide U.S. Small Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Insurance (continued) |
| | | | | | | | | |
| United Fire & Casualty Co. | | | 1,100 | | | $ | 25,487 | |
| W.R. Berkley Corp. | | | 9,500 | | | | 249,565 | |
| Willis Group Holdings Ltd. | | | 641 | | | | 16,820 | |
| Zenith National Insurance Corp. | | | 1,500 | | | | 49,290 | |
| | | | | | | | | |
| | | | | | | | 2,544,902 | |
| | | | | | | | | |
| |
| |
Internet & Catalog Retail 0.1% |
| 1-800-FLOWERS.COM, Inc., Class A* | | | 1,500 | | | | 8,025 | |
| dELiA*s, Inc.* | | | 1,300 | | | | 3,146 | |
| Hollywood Media Corp.* | | | 2,600 | | | | 4,992 | |
| Valuevision Media, Inc., Class A* | | | 1,200 | | | | 828 | |
| | | | | | | | | |
| | | | | | | | 16,991 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 1.0% |
| Infospace, Inc.* | | | 3,000 | | | | 25,710 | |
| Internap Network Services Corp.* | | | 5,000 | | | | 14,300 | |
| Internet Capital Group, Inc.* | | | 3,800 | | | | 21,736 | |
| Interwoven, Inc.* | | | 900 | | | | 11,349 | |
| iPass, Inc.* | | | 3,400 | | | | 6,460 | |
| Keynote Systems, Inc.* | | | 800 | | | | 7,840 | |
| Knot, Inc. (The)* | | | 1,800 | | | | 12,420 | |
| LookSmart, Ltd.* | | | 1,300 | | | | 2,249 | |
| ModusLink Global Solutions, Inc.* | | | 3,800 | | | | 21,128 | |
| RealNetworks, Inc.* | | | 10,800 | | | | 46,224 | |
| S1 Corp.* | | | 3,100 | | | | 19,437 | |
| SonicWALL, Inc.* | | | 1,275 | | | | 5,712 | |
| SupportSoft, Inc.* | | | 3,300 | | | | 8,250 | |
| TheStreet.com, Inc. | | | 3,000 | | | | 11,820 | |
| United Online, Inc. | | | 1,400 | | | | 10,360 | |
| Web.com Group, Inc.* | | | 2,400 | | | | 11,784 | |
| | | | | | | | | |
| | | | | | | | 236,779 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 0.3% |
| Aldila, Inc. | | | 200 | | | | 860 | |
| Arctic Cat, Inc. | | | 1,200 | | | | 9,096 | |
| Callaway Golf Co. | | | 1,800 | | | | 18,828 | |
| Cybex International, Inc.* | | | 1,400 | | | | 2,772 | |
| Nautilus, Inc.* | | | 2,800 | | | | 6,832 | |
| RC2 Corp.* | | | 1,171 | | | | 14,872 | |
| Sport Supply Group, Inc. | | | 1,000 | | | | 8,030 | |
| Steinway Musical Instruments* | | | 800 | | | | 17,808 | |
| | | | | | | | | |
| | | | | | | | 79,098 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 0.0% |
| Caliper Life Sciences* | | | 2,600 | | | | 3,640 | |
| Harvard Bioscience, Inc.* | | | 2,000 | | | | 6,200 | |
| | | | | | | | | |
| | | | | | | | 9,840 | |
| | | | | | | | | |
| |
| |
Machinery 2.6% |
| Accuride Corp.* | | | 3,100 | | | | 992 | |
| Albany International Corp., Class A | | | 2,000 | | | | 29,120 | |
| American Railcar Industries, Inc. | | | 1,900 | | | | 21,128 | |
| Astec Industries, Inc.* | | | 500 | | | | 12,710 | |
| Barnes Group, Inc. | | | 1,000 | | | | 14,510 | |
| Briggs & Stratton Corp. | | | 2,300 | | | | 36,248 | |
| CIRCOR International, Inc. | | | 1,000 | | | | 30,650 | |
| Columbus McKinnon Corp.* | | | 1,100 | | | | 15,444 | |
| Commercial Vehicle Group, Inc.* | | | 1,679 | | | | 2,233 | |
| EnPro Industries, Inc.* | | | 500 | | | | 11,105 | |
| Flanders Corp.* | | | 1,800 | | | | 11,160 | |
| FreightCar America, Inc. | | | 700 | | | | 18,277 | |
| Gardner Denver, Inc.* | | | 700 | | | | 17,934 | |
| Greenbrier Cos., Inc. | | | 1,200 | | | | 9,900 | |
| Hardinge, Inc. | | | 900 | | | | 6,273 | |
| Hurco Cos., Inc.* | | | 500 | | | | 11,250 | |
| Kadant, Inc.* | | | 600 | | | | 9,864 | |
| MFRI, Inc.* | | | 400 | | | | 2,828 | |
| Miller Industries, Inc.* | | | 1,100 | | | | 6,710 | |
| Mueller Industries, Inc. | | | 1,700 | | | | 38,879 | |
| Mueller Water Products, Inc., Class A | | | 2,300 | | | | 16,100 | |
| Mueller Water Products, Inc., Class B | | | 6,500 | | | | 42,770 | |
| NACCO Industries, Inc., Class A | | | 600 | | | | 36,966 | |
| Oshkosh Corp. | | | 4,200 | | | | 32,172 | |
| Portec Rail Products, Inc. | | | 1,000 | | | | 6,730 | |
| Tecumseh Products Co., Class A* | | | 1,100 | | | | 20,372 | |
| Timken Co. | | | 5,500 | | | | 87,340 | |
| Wabash National Corp. | | | 3,000 | | | | 18,240 | |
| Watts Water Technologies, Inc., Class A | | | 2,300 | | | | 60,789 | |
| | | | | | | | | |
| | | | | | | | 628,694 | |
| | | | | | | | | |
| |
| |
Marine 0.3% |
| Alexander & Baldwin, Inc. | | | 2,400 | | | | 76,560 | |
| | | | | | | | | |
| |
| |
Media 1.5% |
| AH Belo Corp., Class A | | | 80 | | | | 265 | |
| Alloy, Inc.* | | | 1,100 | | | | 5,522 | |
| Ballantyne of Omaha, Inc.* | | | 825 | | | | 1,485 | |
| Beasley Broadcasting Group, Inc., Class A | | | 600 | | | | 894 | |
| Belo Corp., Class A | | | 400 | | | | 852 | |
| Carmike Cinemas, Inc. | | | 1,200 | | | | 2,580 | |
| Cinemark Holdings, Inc. | | | 8,200 | | | | 67,978 | |
| E.W. Scripps Co. (The), Class A | | | 2,500 | | | | 11,625 | |
| Fisher Communications, Inc. | | | 700 | | | | 25,830 | |
| Hearst-Argyle Television, Inc. | | | 3,000 | | | | 44,940 | |
| Lakes Entertainment, Inc. | | | 200 | | | | 860 | |
| Lee Enterprises, Inc. | | | 2,200 | | | | 5,500 | |
| Liberty Media Corp. — Capital, Series A* | | | 7,000 | | | | 47,670 | |
72 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Media (continued) |
| | | | | | | | | |
| Live Nation, Inc.* | | | 5,800 | | | $ | 65,250 | |
| Media General, Inc., Class A | | | 2,200 | | | | 16,786 | |
| New Frontier Media, Inc. | | | 1,900 | | | | 3,648 | |
| Orchard Enterprises, Inc.* | | | 500 | | | | 1,200 | |
| Outdoor Channel Holdings, Inc.* | | | 2,200 | | | | 17,600 | |
| Playboy Enterprises, Inc., Class B* | | | 1,500 | | | | 3,705 | |
| Saga Communications, Inc., Class A* | | | 1,600 | | | | 8,560 | |
| Sinclair Broadcast Group, Inc., Class A | | | 4,100 | | | | 13,243 | |
| Valassis Communications, Inc.* | | | 2,900 | | | | 12,876 | |
| WPT Enterprises, Inc.* | | | 96 | | | | 36 | |
| | | | | | | | | |
| | | | | | | | 358,905 | |
| | | | | | | | | |
| |
| |
Metals & Mining 0.6% |
| AM Castle & Co. | | | 2,300 | | | | 27,991 | |
| Brush Engineered Materials, Inc.* | | | 500 | | | | 6,135 | |
| Friedman Industries, Inc. | | | 300 | | | | 1,545 | |
| Kaiser Aluminum Corp. | | | 1,600 | | | | 53,696 | |
| Stillwater Mining Co.* | | | 1,700 | | | | 6,732 | |
| Synalloy Corp. | | | 400 | | | | 3,000 | |
| Worthington Industries, Inc. | | | 4,400 | | | | 53,108 | |
| | | | | | | | | |
| | | | | | | | 152,207 | |
| | | | | | | | | |
| |
| |
Multiline Retail 0.7% |
| 99 Cents Only Stores* | | | 6,200 | | | | 75,640 | |
| Fred’s, Inc., Class A | | | 3,500 | | | | 42,875 | |
| Retail Ventures, Inc.* | | | 4,300 | | | | 8,858 | |
| Saks, Inc.* | | | 5,700 | | | | 34,200 | |
| Tuesday Morning Corp.* | | | 3,700 | | | | 8,288 | |
| | | | | | | | | |
| | | | | | | | 169,861 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 3.9% |
| Aventine Renewable Energy Holdings, Inc.* | | | 4,200 | | | | 8,190 | |
| Brigham Exploration Co.* | | | 2,500 | | | | 19,600 | |
| Callon Petroleum Co.* | | | 1,300 | | | | 13,416 | |
| Cimarex Energy Co. | | | 3,200 | | | | 129,472 | |
| Comstock Resources, Inc.* | | | 1,900 | | | | 93,898 | |
| Endeavour International Corp.* | | | 7,000 | | | | 5,250 | |
| EXCO Resources, Inc.* | | | 5,400 | | | | 49,626 | |
| GeoMet, Inc.* | | | 3,500 | | | | 10,325 | |
| Gulfport Energy Corp.* | | | 600 | | | | 4,230 | |
| Harvest Natural Resources, Inc.* | | | 3,100 | | | | 26,319 | |
| HKN, Inc.* | | | 1,000 | | | | 5,220 | |
| Mariner Energy, Inc.* | | | 4,700 | | | | 67,633 | |
| Meridian Resource Corp.* | | | 7,900 | | | | 9,322 | |
| Overseas Shipholding Group, Inc. | | | 1,800 | | | | 67,644 | |
| Penn Virginia Corp. | | | 1,600 | | | | 59,472 | |
| Petroleum Development Corp.* | | | 1,000 | | | | 20,710 | |
| Rosetta Resources, Inc.* | | | 1,300 | | | | 13,715 | |
| Stone Energy Corp.* | | | 2,094 | | | | 63,532 | |
| Swift Energy Co.* | | | 1,800 | | | | 57,744 | |
| Teton Energy Corp.* | | | 1,500 | | | | 2,265 | |
| Toreador Resources Corp.* | | | 2,000 | | | | 14,800 | |
| TXCO Resources, Inc.* | | | 1,900 | | | | 9,956 | |
| USEC, Inc.* | | | 6,600 | | | | 27,258 | |
| Whiting Petroleum Corp.* | | | 2,300 | | | | 119,577 | |
| World Fuel Services Corp. | | | 2,200 | | | | 47,146 | |
| | | | | | | | | |
| | | | | | | | 946,320 | |
| | | | | | | | | |
| |
| |
Paper & Forest Products 1.2% |
| AbitibiBowater, Inc.* | | | 5,500 | | | | 10,725 | |
| Buckeye Technologies, Inc.* | | | 3,900 | | | | 22,971 | |
| Glatfelter | | | 3,500 | | | | 36,085 | |
| Louisiana-Pacific Corp. | | | 7,900 | | | | 37,920 | |
| MeadWestvaco Corp. | | | 9,800 | | | | 137,494 | |
| Schweitzer-Mauduit International, Inc. | | | 1,000 | | | | 16,720 | |
| Wausau Paper Corp. | | | 2,700 | | | | 25,002 | |
| | | | | | | | | |
| | | | | | | | 286,917 | |
| | | | | | | | | |
| |
| |
Personal Products 0.4% |
| Elizabeth Arden, Inc.* | | | 1,600 | | | | 27,664 | |
| Inter Parfums, Inc. | | | 1,700 | | | | 19,822 | |
| Mannatech, Inc. | | | 1,900 | | | | 7,619 | |
| Nutraceutical International Corp.* | | | 800 | | | | 7,320 | |
| Parlux Fragrances, Inc.* | | | 1,100 | | | | 3,553 | |
| Physicians Formula Holdings, Inc.* | | | 1,300 | | | | 4,589 | |
| Prestige Brands Holdings, Inc.* | | | 3,800 | | | | 26,258 | |
| | | | | | | | | |
| | | | | | | | 96,825 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 1.3% |
| Alpharma, Inc., Class A* | | | 2,400 | | | | 75,144 | |
| Hi-Tech Pharmacal Co., Inc.* | | | 1,000 | | | | 7,290 | |
| Lannett Co, Inc.* | | | 1,100 | | | | 3,135 | |
| Medicis Pharmaceutical Corp., Class A | | | 1,100 | | | | 15,697 | |
| Par Pharmaceutical Cos., Inc.* | | | 2,200 | | | | 22,000 | |
| Salix Pharmaceuticals Ltd.* | | | 4,700 | | | | 43,240 | |
| Watson Pharmaceuticals, Inc.* | | | 6,100 | | | | 159,637 | |
| | | | | | | | | |
| | | | | | | | 326,143 | |
| | | | | | | | | |
| |
| |
Real Estate Management & Development 0.2% |
| Avatar Holdings, Inc.* | | | 800 | | | | 27,160 | |
| Maui Land & Pineapple Co., Inc.* | | | 500 | | | | 7,750 | |
| ZipRealty, Inc.* | | | 1,900 | | | | 5,491 | |
| | | | | | | | | |
| | | | | | | | 40,401 | |
| | | | | | | | | |
| |
| |
Road & Rail 2.1% |
| AMERCO* | | | 1,600 | | | | 72,416 | |
| Arkansas Best Corp. | | | 500 | | | | 14,595 | |
2008 Annual Report 73
Statement of Investments (Continued)
October 31, 2008
Nationwide U.S. Small Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Road & Rail (continued) |
| | | | | | | | | |
| Avis Budget Group, Inc.* | | | 7,700 | | | $ | 12,628 | |
| Celadon Group, Inc.* | | | 1,900 | | | | 20,311 | |
| Genesee & Wyoming, Inc., Class A* | | | 1,700 | | | | 56,695 | |
| Marten Transport Ltd.* | | | 1,900 | | | | 34,922 | |
| Old Dominion Freight Line, Inc.* | | | 700 | | | | 21,238 | |
| PAM Transportation Services, Inc.* | | | 572 | | | | 4,965 | |
| Ryder System, Inc. | | | 3,300 | | | | 130,746 | |
| USA Truck, Inc.* | | | 900 | | | | 13,293 | |
| Werner Enterprises, Inc. | | | 5,400 | | | | 105,948 | |
| YRC Worldwide, Inc.* | | | 4,400 | | | | 20,152 | |
| | | | | | | | | |
| | | | | | | | 507,909 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 3.2% |
| Actel Corp.* | | | 2,500 | | | | 30,225 | |
| Amtech Systems, Inc.* | | | 100 | | | | 641 | |
| Asyst Technologies, Inc.* | | | 3,500 | | | | 2,205 | |
| Atmel Corp.* | | | 8,600 | | | | 35,690 | |
| AXT, Inc.* | | | 2,200 | | | | 3,498 | |
| Cabot Microelectronics Corp.* | | | 900 | | | | 25,857 | |
| California Micro Devices Corp.* | | | 800 | | | | 1,896 | |
| Cascade Microtech, Inc.* | | | 1,000 | | | | 3,200 | |
| Ceva, Inc.* | | | 500 | | | | 4,250 | |
| Cirrus Logic, Inc.* | | | 4,800 | | | | 27,552 | |
| Cohu, Inc. | | | 2,000 | | | | 28,280 | |
| Eagle Test Systems, Inc.* | | | 1,300 | | | | 19,682 | |
| Exar Corp.* | | | 2,100 | | | | 14,028 | |
| Fairchild Semiconductor International, Inc.* | | | 9,500 | | | | 53,960 | |
| FEI Co.* | | | 700 | | | | 14,707 | |
| GSI Technology, Inc.* | | | 1,200 | | | | 4,200 | |
| Hifn, Inc.* | | | 1,000 | | | | 2,650 | |
| Ikanos Communications* | | | 1,600 | | | | 2,416 | |
| Integrated Device Technology, Inc.* | | | 10,300 | | | | 65,508 | |
| Integrated Silicon Solution, Inc.* | | | 2,500 | | | | 4,525 | |
| International Rectifier Corp.* | | | 3,900 | | | | 60,216 | |
| Intersil Corp., Class A | | | 7,083 | | | | 96,966 | |
| IXYS Corp. | | | 1,400 | | | | 11,116 | |
| Kopin Corp.* | | | 3,700 | | | | 8,584 | |
| Lattice Semiconductor Corp.* | | | 6,200 | | | | 11,656 | |
| LTX-Credence Corp.* | | | 4,400 | | | | 2,728 | |
| Mattson Technology, Inc.* | | | 2,800 | | | | 7,336 | |
| MIPS Technologies, Inc.* | | | 3,900 | | | | 10,881 | |
| Nanometrics, Inc.* | | | 1,800 | | | | 2,214 | |
| OmniVision Technologies, Inc.* | | | 4,200 | | | | 33,978 | |
| ON Semiconductor Corp.* | | | 635 | | | | 3,247 | |
| PDF Solutions, Inc.* | | | 1,600 | | | | 4,800 | |
| Pericom Semiconductor Corp.* | | | 1,000 | | | | 7,800 | |
| Photronics, Inc.* | | | 1,000 | | | | 690 | |
| PLX Technology, Inc.* | | | 2,800 | | | | 9,632 | |
| RF Micro Devices, Inc.* | | | 900 | | | | 1,791 | |
| Rudolph Technologies, Inc.* | | | 3,000 | | | | 10,050 | |
| Semitool, Inc.* | | | 1,800 | | | | 10,638 | |
| Silicon Image, Inc.* | | | 4,000 | | | | 18,280 | |
| Skyworks Solutions, Inc.* | | | 3,300 | | | | 23,529 | |
| Standard Microsystems Corp.* | | | 500 | | | | 9,005 | |
| TriQuint Semiconductor, Inc.* | | | 5,600 | | | | 25,088 | |
| Ultra Clean Holdings, Inc.* | | | 1,200 | | | | 3,624 | |
| Ultratech, Inc.* | | | 1,300 | | | | 19,604 | |
| Veeco Instruments, Inc.* | | | 1,700 | | | | 13,158 | |
| Virage Logic Corp.* | | | 800 | | | | 3,616 | |
| Zoran Corp.* | | | 2,800 | | | | 22,792 | |
| | | | | | | | | |
| | | | | | | | 777,989 | |
| | | | | | | | | |
| |
| |
Software 0.9% |
| Bottomline Technologies, Inc.* | | | 700 | | | | 5,516 | |
| CallWave, Inc.* | | | 1,000 | | | | 1,090 | |
| Captaris, Inc.* | | | 1,400 | | | | 6,664 | |
| Catapult Communications Corp.* | | | 400 | | | | 1,708 | |
| Digimarc Corp.* | | | 342 | | | | 3,420 | |
| Dynamics Research Corp.* | | | 800 | | | | 6,160 | |
| EPIQ Systems, Inc.* | | | 2,100 | | | | 28,539 | |
| JDA Software Group, Inc.* | | | 1,200 | | | | 17,136 | |
| Kenexa Corp.* | | | 1,300 | | | | 11,583 | |
| Lawson Software, Inc.* | | | 3,400 | | | | 18,088 | |
| MSC.Software Corp.* | | | 1,600 | | | | 13,760 | |
| OPNET Technologies, Inc.* | | | 600 | | | | 7,578 | |
| PLATO Learning, Inc.* | | | 2,400 | | | | 4,128 | |
| Progress Software Corp.* | | | 600 | | | | 13,764 | |
| Secure Computing Corp.* | | | 3,600 | | | | 20,376 | |
| Smith Micro Software, Inc.* | | | 2,700 | | | | 16,875 | |
| Soapstone Networks, Inc.* | | | 1,000 | | | | 2,880 | |
| SumTotal Systems, Inc.* | | | 2,900 | | | | 9,309 | |
| TIBCO Software, Inc.* | | | 3,600 | | | | 18,540 | |
| | | | | | | | | |
| | | | | | | | 207,114 | |
| | | | | | | | | |
| |
| |
Specialty Retail 5.0% |
| Aaron Rents, Inc. | | | 1,200 | | | | 29,748 | |
| America’s Car-Mart, Inc.* | | | 900 | | | | 14,697 | |
| AnnTaylor Stores Corp.* | | | 3,400 | | | | 42,738 | |
| AutoNation, Inc.* | | | 10,100 | | | | 69,387 | |
| Barnes & Noble, Inc. | | | 4,200 | | | | 79,296 | |
| Bebe Stores, Inc. | | | 2,300 | | | | 20,378 | |
| Blockbuster, Inc., Class A* | | | 10,900 | | | | 16,568 | |
| Borders Group, Inc. | | | 6,000 | | | | 20,340 | |
| Brown Shoe Co., Inc. | | | 3,200 | | | | 33,728 | |
| Cabela’s, Inc.* | | | 5,000 | | | | 39,750 | |
| Casual Male Retail Group, Inc.* | | | 3,700 | | | | 7,030 | |
| Cato Corp. (The), Class A | | | 1,500 | | | | 23,280 | |
| Charlotte Russe Holding, Inc.* | | | 1,800 | | | | 15,210 | |
| Charming Shoppes, Inc.* | | | 4,000 | | | | 4,400 | |
| Coldwater Creek, Inc.* | | | 4,900 | | | | 17,591 | |
| Collective Brands, Inc.* | | | 1,800 | | | | 23,022 | |
| Conn’s, Inc.* | | | 1,900 | | | | 25,745 | |
| Dress Barn, Inc.* | | | 1,500 | | | | 14,340 | |
74 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Specialty Retail (continued) |
| | | | | | | | | |
| DSW, Inc., Class A* | | | 1,300 | | | $ | 16,809 | |
| Eddie Bauer Holdings, Inc.* | | | 3,000 | | | | 10,290 | |
| Finish Line (The), Class A | | | 4,400 | | | | 42,108 | |
| Foot Locker, Inc. | | | 8,700 | | | | 127,194 | |
| Franklin Covey Co.* | | | 700 | | | | 3,570 | |
| Gander Mountain Co.* | | | 800 | | | | 1,624 | |
| Genesco, Inc. | | | 600 | | | | 14,886 | |
| Group 1 Automotive, Inc. | | | 2,000 | | | | 20,100 | |
| Haverty Furniture Cos., Inc. | | | 1,600 | | | | 15,744 | |
| HOT Topic, Inc.* | | | 4,300 | | | | 27,864 | |
| Jo-Ann Stores, Inc.* | | | 2,000 | | | | 38,320 | |
| JOS. A. Bank Clothiers, Inc.* | | | 1,000 | | | | 25,470 | |
| Men’s Wearhouse, Inc. | | | 1,500 | | | | 22,935 | |
| Monro Muffler, Inc. | | | 200 | | | | 4,306 | |
| Mothers Work, Inc.* | | | 200 | | | | 1,756 | |
| New York & Co., Inc.* | | | 3,200 | | | | 9,024 | |
| Office Depot, Inc.* | | | 15,400 | | | | 55,440 | |
| OfficeMax, Inc. | | | 5,800 | | | | 46,690 | |
| Penske Auto Group, Inc. | | | 7,300 | | | | 59,787 | |
| Pep Boys — Manny, Moe & Jack | | | 4,500 | | | | 21,690 | |
Rent-A-Center, Inc.* | | | 1,700 | | | | 24,820 | |
| Shoe Carnival, Inc.* | | | 1,100 | | | | 15,411 | |
| Sport Chalet, Inc., Class A* | | | 36 | | | | 56 | |
| Stage Stores, Inc. | | | 2,200 | | | | 16,962 | |
| Systemax, Inc. | | | 1,000 | | | | 14,160 | |
| Talbots, Inc. | | | 1,400 | | | | 13,734 | |
| Tandy Leather Factory, Inc.* | | | 200 | | | | 460 | |
| West Marine, Inc.* | | | 1,400 | | | | 8,862 | |
| Zale Corp.* | | | 3,300 | | | | 56,298 | |
| | | | | | | | | |
| | | | | | | | 1,213,618 | |
| | | | | | | | | |
| |
| |
Telecommunications 0.0% |
| D&E Communications, Inc. | | | 1,000 | | | | 7,000 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 1.7% |
| Ashworth, Inc.* | | | 600 | | | | 1,098 | |
| Columbia Sportswear Co. | | | 2,700 | | | | 99,549 | |
| Culp, Inc.* | | | 1,000 | | | | 2,870 | |
| G-III Apparel Group Ltd.* | | | 1,500 | | | | 20,715 | |
| Heelys, Inc.* | | | 400 | | | | 1,404 | |
| Jones Apparel Group, Inc. | | | 3,200 | | | | 35,552 | |
| K-Swiss, Inc., Class A | | | 2,300 | | | | 34,799 | |
| Kenneth Cole Productions, Inc., Class A | | | 1,000 | | | | 13,280 | |
| Lakeland Industries, Inc.* | | | 200 | | | | 1,986 | |
| Lazare Kaplan International, Inc.* | | | 300 | | | | 2,160 | |
| Liz Claiborne, Inc. | | | 2,600 | | | | 21,190 | |
| Movado Group, Inc. | | | 1,600 | | | | 24,336 | |
| Oxford Industries, Inc. | | | 1,400 | | | | 18,858 | |
| Perry Ellis International, Inc.* | | | 1,400 | | | | 13,706 | |
| Quiksilver, Inc.* | | | 3,200 | | | | 8,288 | |
| R.G. Barry Corp.* | | | 400 | | | | 2,064 | |
| Rocky Brands, Inc.* | | | 400 | | | | 1,660 | |
| Skechers USA, Inc., Class A* | | | 2,600 | | | | 35,308 | |
| Steven Madden Ltd.* | | | 1,000 | | | | 21,780 | |
| Timberland Co., Class A* | | | 1,200 | | | | 14,520 | |
| Unifi, Inc.* | | | 5,800 | | | | 27,840 | |
| UniFirst Corp. | | | 500 | | | | 16,315 | |
| | | | | | | | | |
| | | | | | | | 419,278 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 2.7% |
| Abington Bancorp, Inc. | | | 2,400 | | | | 24,840 | |
| American Bancorp of New Jersey, Inc. | | | 1,000 | | | | 9,000 | |
| Atlantic Coast Federal Corp. | | | 1,200 | | | | 7,812 | |
| B of I Holding, Inc.* | | | 700 | | | | 3,220 | |
| Bank Mutual Corp. | | | 1,100 | | | | 12,683 | |
| BankFinancial Corp. | | | 1,914 | | | | 23,332 | |
| Berkshire Hills Bancorp, Inc. | | | 1,000 | | | | 26,030 | |
| Clifton Savings Bancorp, Inc. | | | 1,500 | | | | 16,350 | |
| Dime Community Bancshares | | | 1,800 | | | | 30,060 | |
| ESSA Bancorp, Inc. | | | 1,500 | | | | 20,790 | |
| First Defiance Financial Corp. | | | 600 | | | | 6,030 | |
| First Financial Holdings, Inc. | | | 400 | | | | 8,680 | |
| First Financial Northwest, Inc. | | | 1,300 | | | | 10,621 | |
| First Place Financial Corp. | | | 367 | | | | 2,521 | |
| FirstFed Financial Corp.* | | | 800 | | | | 7,160 | |
| Flushing Financial Corp. | | | 1,100 | | | | 17,105 | |
| Home Federal Bancorp, Inc. | | | 1,600 | | | | 18,544 | |
| HopFed Bancorp, Inc. | | | 300 | | | | 2,742 | |
| Kearny Financial Corp. | | | 1,600 | | | | 18,448 | |
| Legacy Bancorp, Inc. | | | 500 | | | | 6,520 | |
| NewAlliance Bancshares, Inc. | | | 3,900 | | | | 53,820 | |
| Northeast Community Bancorp, Inc. | | | 200 | | | | 1,500 | |
| Northwest Bancorp, Inc. | | | 1,100 | | | | 29,150 | |
| OceanFirst Financial Corp. | | | 1,000 | | | | 16,590 | |
| Provident Financial Services, Inc. | | | 1,600 | | | | 23,456 | |
| Rainier Pacific Financial Group, Inc. | | | 200 | | | | 900 | |
| Riverview Bancorp, Inc. | | | 589 | | | | 2,804 | |
| Rockville Financial, Inc. | | | 1,100 | | | | 14,311 | |
| Roma Financial Corp. | | | 1,700 | | | | 24,735 | |
| Rome Bancorp, Inc. | | | 700 | | | | 7,000 | |
| SI Financial Group, Inc. | | | 1,100 | | | | 7,645 | |
| United Community Financial Corp. | | | 742 | | | | 3,480 | |
| United Financial Bancorp, Inc. | | | 1,400 | | | | 19,600 | |
| United Western Bancorp, Inc. | | | 272 | | | | 3,087 | |
| ViewPoint Financial Group | | | 1,300 | | | | 22,100 | |
| Washington Federal, Inc. | | | 5,000 | | | | 88,100 | |
| Waterstone Financial, Inc.* | | | 1,700 | | | | 14,025 | |
| Westfield Financial, Inc. | | | 3,100 | | | | 32,085 | |
| Willow Grove Bancorp, Inc. | | | 1,000 | | | | 8,650 | |
| | | | | | | | | |
| | | | | | | | 645,526 | |
| | | | | | | | | |
| | | | | | | | | |
2008 Annual Report 75
Statement of Investments (Continued)
October 31, 2008
Nationwide U.S. Small Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Tobacco 0.4% |
| Alliance One International, Inc.* | | | 4,900 | | | $ | 16,366 | |
| Universal Corp. | | | 2,100 | | | | 83,139 | |
| | | | | | | | | |
| | | | | | | | 99,505 | |
| | | | | | | | | |
| |
| |
Trading Companies & Distributors 0.9% |
| Beacon Roofing Supply, Inc.* | | | 3,900 | | | | 53,352 | |
| BlueLinx Holdings, Inc. | | | 3,200 | | | | 8,608 | |
| Empire Resources, Inc. | | | 300 | | | | 690 | |
| GATX Corp. | | | 2,600 | | | | 74,230 | |
| Interline Brands, Inc.* | | | 2,900 | | | | 30,856 | |
| TAL International Group, Inc. | | | 600 | | | | 9,936 | |
| United Rentals, Inc.* | | | 4,900 | | | | 50,225 | |
| | | | | | | | | |
| | | | | | | | 227,897 | |
| | | | | | | | | |
| |
| |
Water Utility 0.1% |
| Middlesex Water Co. | | | 800 | | | | 13,792 | |
| Pennichuck Corp. | | | 200 | | | | 4,282 | |
| SJW Corp. | | | 600 | | | | 16,680 | |
| | | | | | | | | |
| | | | | | | | 34,754 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 0.6% |
| Telephone & Data Systems, Inc., Special Shares | | | 2,100 | | | | 57,540 | |
| TESSCO Technologies, Inc.* | | | 200 | | | | 2,194 | |
| U.S. Cellular Corp.* | | | 2,000 | | | | 76,619 | |
| | | | | | | | | |
| | | | | | | | 136,353 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 23,880,034 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 1.0% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $251,759, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $256,792 | | $ | 251,757 | | | $ | 251,757 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $33,462,018) (a) — 99.6% | | | 24,131,791 | |
Other assets in excess of liabilities — 0.4% | | | | | | | 87,082 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 24,218,873 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
76 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide U.S. Small
| |
| | | Cap Value Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $33,210,261) | | | $ | 23,880,034 | |
| Repurchase agreements, at value and cost | | | | 251,757 | |
| | | | | | |
| Total Investments | | | | 24,131,791 | |
| | | | | | |
| Receivable for investments sold | | | | 16,614 | |
| Interest and dividends receivable | | | | 12,509 | |
| Receivable for capital shares issued | | | | 40,720 | |
| Prepaid expenses and other assets | | | | 43,311 | |
| | | | | | |
| Total Assets | | | | 24,244,945 | |
| | | | | | |
Liabilities: | | | | | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 19,825 | |
| Fund administration fees | | | | 2,503 | |
| Distribution fees | | | | 16 | |
| Custodian fees | | | | 136 | |
| Other | | | | 3,592 | |
| | | | | | |
| Total Liabilities | | | | 26,072 | |
| | | | | | |
Net Assets | | | $ | 24,218,873 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 33,145,282 | |
| Accumulated undistributed net investment income | | | | 50,764 | |
| Accumulated net realized gains from investment transactions | | | | 353,054 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (9,330,227 | ) |
| | | | | | |
Net Assets | | | $ | 24,218,873 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 8,172 | |
| Class C Shares | | | | 16,104 | |
| Institutional Service Class Shares | | | | 24,163,614 | |
| Institutional Class Shares | | | | 30,983 | |
| | | | | | |
| Total | | | $ | 24,218,873 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 1,143 | |
| Class C Shares | | | | 2,262 | |
| Institutional Service Class Shares | | | | 3,375,968 | |
| Institutional Class Shares | | | | 4,323 | |
| | | | | | |
| Total | | | | 3,383,696 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.15 | |
| Class C Shares (a) | | | $ | 7.12 | |
| Institutional Service Class Shares | | | $ | 7.16 | |
| Institutional Class Shares | | | $ | 7.17 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.59 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 77
Statement of Operations
For the Period Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide U.S.
| |
| | | | Small Cap Value
| |
| | | Fund(a) | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 6,560 | |
| Dividend income | | | | 265,770 | |
| | | | | | |
| Total Income | | | | 272,330 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 165,821 | |
| Fund administration fees | | | | 17,732 | |
| Distribution fees Class A | | | | 21 | |
| Distribution fees Class C | | | | 94 | |
| Administrative servicing fees Class A | | | | 13 | |
| Administrative servicing fees Institutional Service Class | | | | 15,633 | |
| Registration and filing fees | | | | 22,605 | |
| Professional fees | | | | 13,483 | |
| Printing fees | | | | 7,145 | |
| Trustee fees | | | | 974 | |
| Compliance program costs (Note 3) | | | | 45 | |
| Custodian fees | | | | 784 | |
| Other | | | | 11,998 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 256,348 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (240 | ) |
| Expenses reimbursed by Advisor | | | | (50,475 | ) |
| | | | | | |
| Net Expenses | | | | 205,633 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 66,697 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 353,054 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (9,330,227 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (8,977,173 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (8,910,476 | ) |
| | | | | | |
| | |
| (a) | | For the period from December 21, 2007 (commencement of operations) through October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
78 Annual Report 2008
Statement of Changes in Net Assets
| | | | | | |
| | | | Nationwide U.S. Small Cap Value Fund | |
| | | | | |
| | | | Period Ended
| |
| | | | October 31, 2008 (a) | |
| | | | | | |
Operations: | | | | | |
| Net investment income | | | $ | 66,697 | |
| Net realized gains from investment transactions | | | | 353,054 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (9,330,227 | ) |
| | | | | | |
| Change in net assets resulting from operations | | | | (8,910,476 | ) |
| | | | | | |
| | | | | | |
Distributions to Shareholders From: | | | | | |
| Net investment income: | | | | | |
| Class A | | | | (12 | ) |
| Class C | | | | (1 | ) |
| Institutional Service Class | | | | (17 | ) |
| Institutional Class | | | | (30,138 | ) |
| | | | | | |
| Change in net assets from shareholder distributions | | | | (30,168 | ) |
| | | | | | |
| Change in net assets from capital transactions | | | | 33,159,517 | |
| | | | | | |
| Change in net assets | | | | 24,218,873 | |
| | | | | | |
| | | | | | |
Net Assets: | | | | | |
| Beginning of period | | | | – | |
| | | | | | |
| End of period | | | $ | 24,218,873 | |
| | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 50,764 | |
| | | | | | |
CAPITAL TRANSACTIONS: | | | | | |
Class A Shares | | | | | |
| Proceeds from shares issued | | | $ | 11,427 | |
| Dividends reinvested | | | | 12 | |
| Cost of shares redeemed | | | | – | |
| | | | | | |
| Total Class A | | | | 11,439 | |
| | | | | | |
Class C Shares | | | | | |
| Proceeds from shares issued | | | | 22,386 | |
| Dividends reinvested | | | | 1 | |
| Cost of shares redeemed | | | | – | |
| | | | | | |
| Total Class C | | | | 22,387 | |
| | | | | | |
Institutional Service Class Shares | | | | | |
| Proceeds from shares issued | | | | 34,277,395 | |
| Dividends reinvested | | | | 17 | |
| Cost of shares redeemed | | | | (1,882,273 | ) |
| | | | | | |
| Total Institutional Service Class | | | | 32,395,139 | |
| | | | | | |
Institutional Class Shares | | | | | |
| Proceeds from shares issued | | | | 14,972,256 | |
| Dividends reinvested | | | | 30,138 | |
| Cost of shares redeemed | | | | (14,271,842 | ) |
| | | | | | |
| Total Institutional Class | | | | 730,552 | |
| | | | | | |
| Change in net assets from capital transactions: | | | $ | 33,159,517 | |
| | | | | | |
SHARE TRANSACTIONS: | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 79
Statement of Changes in Net Assets (Continued)
| | | | | | |
| | | | Nationwide U.S. Small Cap Value Fund | |
| | | | | |
| | | | Period Ended
| |
| | | | October 31, 2008 (a) | |
| | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | |
Class A Shares | | | | | |
| Issued | | | | 1,142 | |
| Reinvested | | | | 1 | |
| Redeemed | | | | – | |
| | | | | | |
| Total Class A Shares | | | | 1,143 | |
| | | | | | |
Class C Shares | | | | | |
| Issued | | | | 2,262 | |
| Reinvested | | | | – | |
| Redeemed | | | | – | |
| | | | | | |
| Total Class C Shares | | | | 2,262 | |
| | | | | | |
Institutional Service Class Shares | | | | | |
| Issued | | | | 3,592,623 | |
| Reinvested | | | | 2 | |
| Redeemed | | | | (216,657 | ) |
| | | | | | |
| Total Institutional Service Class Shares | | | | 3,375,968 | |
| | | | | | |
Institutional Class Shares | | | | | |
| Issued | | | | 1,497,000 | |
| Reinvested | | | | 3,323 | |
| Redeemed | | | | (1,496,000 | ) |
| | | | | | |
| Total Institutional Class Shares | | | | 4,323 | |
| | | | | | |
| Total change in shares: | | | | 3,383,696 | |
| | | | | | |
| | |
| (a) | | For the period from December 21, 2007 (commencement of operations) through October 31, 2008. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
80 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide U.S. Small Cap Value Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | 0 | .01 | | | | (2 | .85) | | | | (2 | .84) | | | | (0 | .01) | | | | (0 | .01) | | | $ | 7 | .15 | | | | (28 | .40%) | | | $ | 8,172 | | | | | 1 | .47% | | | | 0 | .09% | | | | 1 | .86% | | | | 16 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | (0 | .04) | | | | (2 | .84) | | | | (2 | .88) | | | | – | | | | | – | | | | $ | 7 | .12 | | | | (28 | .79%) | | | $ | 16,104 | | | | | 2 | .08% | | | | (0 | .48%) | | | | 2 | .35% | | | | 16 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | (2 | .84) | | | | (2 | .82) | | | | (0 | .02) | | | | (0 | .02) | | | $ | 7 | .16 | | | | (28 | .27%) | | | $ | 24,163,614 | | | | | 1 | .23% | | | | 0 | .31% | | | | 1 | .32% | | | | 16 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | (2 | .85) | | | | (2 | .81) | | | | (0 | .02) | | | | (0 | .02) | | | $ | 7 | .17 | | | | (28 | .14%) | | | $ | 30,983 | | | | | 1 | .07% | | | | 0 | .48% | | | | 1 | .64% | | | | 16 | .44% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from December 21, 2007 (commencement of operations) through October 31, 2008. |
| (g) | Per share calculations were performed using average shares method. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 81
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the period from the Fund’s inception on February 28, 2008, through October 31, 2008, the Nationwide Value Fund (Class A at NAV) registered -27.18%. For the period from March 1, 2008, through October 31, 2008, the Fund’s benchmark, the Russell 1000® Index, registered -27.09%. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Large-Cap Core Funds (consisting of 879 funds as of October 31, 2008) was -26.40% for the eight months ended October 31, 2008.
What areas of investment provided the most positive relative returns for the Fund?
While no sectors provided positive returns on an absolute basis, on a relative basis the Fund garnered positive results in a few of its holdings within the financials and information technology sectors. In financials, the Fund’s positions in Huntington Bancshares Inc. and The Bank of New York Mellon Corp. provided positive returns on an absolute basis; both companies successfully navigated through the recent financial crisis. In information technology, the Fund’s newly established position in Texas Instruments Inc. provided positive returns on an absolute basis. Finally, energy holdings Transocean Inc. and Southwestern Energy Co. were positive contributors to Fund performance on an absolute basis.
What areas of investment detracted from Fund performance?
The energy, materials and industrials sectors hindered Fund performance. In the energy sector, the Fund’s positions in Anadarko Petroleum Corp. and Apache Corp. were the largest negative contributors to the sector’s performance. In the materials sector, the Fund’s positions in Freeport-McMoRan Copper & Gold Inc. and International Paper Co. detracted from performance. In the industrials sector, the Fund’s positions in Illinois Tool Works Inc. and Parker Hannifin Corp. were the largest detractors from Fund performance.
What is your outlook for the near term?
While our focus remains on five-year returns, the past few months have proven to be an unprecedented period as the markets suffered near-record-breaking declines. Although oil and natural gas prices have fallen from their highs, the Fund’s energy holdings give us a reason to maintain a positive outlook as the secular worldwide supply and demand remains tight. Given projections of future growth in the developing countries, the commodities sector also should fare well. Even though the significant market declines have been painful, they also can offer tremendous opportunities, especially as we maintain a disciplined investment process, stay focused on the long term, and remains sensitive to the relationship between price and our estimates of intrinsic value.
Subadviser:
Diamond Hill Capital Management, Inc.
Portfolio Manager:
Charles S. Bath, CFA
82 Annual Report 2008
| |
| Fund Performance | Nationwide Value Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | |
| | | | | | | Inception1* |
| |
| Class A | | w/o SC2 | | | | | | | -27.18 | |
| | | w/SC3 | | | | | | | -31.36 | |
| |
| |
| Class C | | w/o SC2 | | | | | | | -27.50 | |
| | | w/SC4 | | | | | | | -28.23 | |
| |
| |
Class R5 | | w/o SC2 | | | | | | | -27.24 | |
| |
| |
Institutional Class5 | | | | | | | | | -26.98 | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | Not annualized |
| |
| 1 | | Fund commenced operations on February 28, 2008. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
| | |
| * | | Comparative performance of $10,000 invested in Class A shares of the Nationwide Value Fund, Russell 1000 Index (a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes. |
| |
| (a) | | The Russell 1000 Index consist of the largest 1000 companies in the Russell 3000 Index. |
| | |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 83
| |
| Shareholder | Nationwide Value Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Value Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 730.41 | | | | 5.22 | | | | 1.20 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.10 | | | | 6.11 | | | | 1.20 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 727.91 | | | | 8.06 | | | | 1.86 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,015.81 | | | | 9.44 | | | | 1.86 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 729.78 | | | | 6.58 | | | | 1.51 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.53 | | | | 7.70 | | | | 1.51 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 731.64 | | | | 3.72 | | | | 0.85 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.84 | | | | 4.35 | | | | 0.85 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
84 Annual Report 2008
| |
| Portfolio Summary | Nationwide Value Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 89.1% | |
| Repurchase Agreement | | | 6.0% | |
| Other assets in excess of liabilities | | | 4.9% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Oil, Gas & Consumable Fuels | | | 21.4% | |
| Pharmaceuticals | | | 8.9% | |
| Commercial Banks | | | 5.4% | |
| Machinery | | | 5.2% | |
| Food Products | | | 4.1% | |
| Hotels, Restaurants & Leisure | | | 3.9% | |
| Health Care Providers & Services | | | 3.9% | |
| Semiconductors & Semiconductor Equipment | | | 3.0% | |
| Paper & Forest Products | | | 2.3% | |
| Software | | | 2.2% | |
| Other | | | 39.7% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Devon Energy Corp. | | | 5.1% | |
| Apache Corp. | | | 4.7% | |
| Occidental Petroleum Corp. | | | 4.3% | |
| McDonald’s Corp. | | | 3.9% | |
| Anadarko Petroleum Corp. | | | 3.3% | |
| Abbott Laboratories | | | 2.9% | |
| General Mills, Inc. | | | 2.3% | |
| UnitedHealth Group, Inc. | | | 2.3% | |
| Johnson & Johnson | | | 2.2% | |
| Microsoft Corp. | | | 2.2% | |
| Other | | | 66.8% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
2008 Annual Report 85
Statement of Investments
October 31, 2008
Nationwide Value Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 89.1% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 2.0% |
| United Technologies Corp. | | | 465 | | | $ | 25,556 | |
| | | | | | | | | |
| |
| |
Airline 1.4% |
| Southwest Airlines Co. | | | 1,505 | | | | 17,729 | |
| | | | | | | | | |
| |
| |
Capital Markets 1.8% |
| Bank of New York Mellon Corp. (The) | | | 715 | | | | 23,309 | |
| | | | | | | | | |
| |
| |
Chemicals 1.7% |
| Dow Chemical Co. (The) | | | 835 | | | | 22,269 | |
| | | | | | | | | |
| |
| |
Commercial Banks 5.4% |
| Huntington Bancshares, Inc. | | | 1,410 | | | | 13,325 | |
| Synovus Financial Corp. | | | 1,665 | | | | 17,199 | |
| U.S. Bancorp | | | 450 | | | | 13,415 | |
| Wells Fargo & Co. | | | 740 | | | | 25,197 | |
| | | | | | | | | |
| | | | | | | | 69,136 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 1.5% |
| Avery Dennison Corp. | | | 555 | | | | 19,436 | |
| | | | | | | | | |
| |
| |
Communications Equipment 1.8% |
| Cisco Systems, Inc.* | | | 1,270 | | | | 22,568 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 1.1% |
| Dell, Inc.* | | | 1,160 | | | | 14,094 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 0.9% |
| Fluor Corp. | | | 280 | | | | 11,180 | |
| | | | | | | | | |
| |
| |
Consumer Finance 1.9% |
| American Express Co. | | | 870 | | | | 23,925 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 1.6% |
| Bank of America Corp. | | | 830 | | | | 20,061 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 0.9% |
| Transocean, Inc.* | | | 140 | | | | 11,526 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 1.8% |
| SYSCO Corp. | | | 855 | | | | 22,401 | |
| | | | | | | | | |
| |
| |
Food Products 4.1% |
| ConAgra Foods, Inc. | | | 1,295 | | | | 22,559 | |
| General Mills, Inc. | | | 435 | | | | 29,467 | |
| | | | | | | | | |
| | | | | | | | 52,026 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 2.0% |
| Medtronic, Inc. | | | 650 | | | | 26,215 | |
| | | | | | | | | |
Health Care Providers & Services 3.9% |
| Cardinal Health, Inc. | | | 540 | | | | 20,628 | |
| UnitedHealth Group, Inc. | | | 1,210 | | | | 28,713 | |
| | | | | | | | | |
| | | | | | | | 49,341 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 3.9% |
| McDonald’s Corp. | | | 865 | | | | 50,110 | |
| | | | | | | | | |
| |
| |
Household Durables 2.1% |
| Black & Decker Corp. | | | 275 | | | | 13,921 | |
| Fortune Brands, Inc. | | | 345 | | | | 13,158 | |
| | | | | | | | | |
| | | | | | | | 27,079 | |
| | | | | | | | | |
| |
| |
Household Products 1.9% |
| Kimberly-Clark Corp. | | | 395 | | | | 24,210 | |
| | | | | | | | | |
| |
| |
Insurance 0.4% |
| Allstate Corp. (The) | | | 195 | | | | 5,146 | |
| | | | | | | | | |
| |
| |
Machinery 5.2% |
| Dover Corp. | | | 700 | | | | 22,239 | |
| Illinois Tool Works, Inc. | | | 655 | | | | 21,871 | |
| Parker Hannifin Corp. | | | 560 | | | | 21,711 | |
| | | | | | | | | |
| | | | | | | | 65,821 | |
| | | | | | | | | |
| |
| |
Metals & Mining 1.3% |
| Freeport-McMoRan Copper & Gold, Inc. | | | 580 | | | | 16,878 | |
| | | | | | | | | |
| |
| |
Multiline Retail 1.7% |
| Kohl’s Corp.* | | | 625 | | | | 21,956 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 21.4% |
| Anadarko Petroleum Corp. | | | 1,170 | | | | 41,301 | |
| Apache Corp. | | | 725 | | | | 59,689 | |
| Devon Energy Corp. | | | 805 | | | | 65,092 | |
| Occidental Petroleum Corp. | | | 987 | | | | 54,818 | |
| Southwestern Energy Co.* | | | 690 | | | | 24,578 | |
| XTO Energy, Inc. | | | 745 | | | | 26,783 | |
| | | | | | | | | |
| | | | | | | | 272,261 | |
| | | | | | | | | |
| |
| |
Paper & Forest Products 2.3% |
| Domtar Corp.* | | | 4,170 | | | | 10,342 | |
| International Paper Co. | | | 1,075 | | | | 18,511 | |
| | | | | | | | | |
| | | | | | | | 28,853 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 8.9% |
| Abbott Laboratories | | | 665 | | | | 36,675 | |
| Johnson & Johnson | | | 465 | | | | 28,523 | |
| Pfizer, Inc. | | | 1,420 | | | | 25,148 | |
| Schering-Plough Corp. | | | 1,575 | | | | 22,822 | |
| | | | | | | | | |
| | | | | | | | 113,168 | |
| | | | | | | | | |
| | | | | | | | | |
86 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 3.0% |
| KLA-Tencor Corp. | | | 880 | | | $ | 20,460 | |
| Texas Instruments, Inc. | | | 920 | | | | 17,995 | |
| | | | | | | | | |
| | | | | | | | 38,455 | |
| | | | | | | | | |
| |
| |
Software 2.2% |
| Microsoft Corp. | | | 1,265 | | | | 28,247 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 1.0% |
| Hanesbrands, Inc.* | | | 715 | | | | 12,491 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 1,135,447 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 6.0% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $76,723, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $78,256 | | $ | 76,722 | | | | 76,722 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $1,521,606) (a) — 95.1% | | | 1,212,169 | |
Other assets in excess of liabilities — 4.9% | | | | | | | 62,663 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 1,274,832 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 87
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Value
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $1,444,884) | | | $ | 1,135,447 | |
| Repurchase agreements, at value and cost | | | | 76,722 | |
| | | | | | |
| Total Investments | | | | 1,212,169 | |
| | | | | | |
| Interest and dividends receivable | | | | 1,550 | |
| Receivable for investments sold | | | | 2,030 | |
| Receivable from adviser | | | | 23,646 | |
| Prepaid expenses and other assets | | | | 38,041 | |
| | | | | | |
| Total Assets | | | | 1,277,436 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for capital shares redeemed | | | | 717 | |
| Accrued expenses and other payables: | | | | | |
| Fund administration fees | | | | 123 | |
| Distribution fees | | | | 126 | |
| Administrative servicing fees | | | | 306 | |
| Trustee fees | | | | 148 | |
| Custodian fees | | | | 8 | |
| Other | | | | 1,176 | |
| | | | | | |
| Total Liabilities | | | | 2,604 | |
| | | | | | |
Net Assets | | | $ | 1,274,832 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 1,670,333 | |
| Accumulated undistributed net investment income | | | | 10,143 | |
| Accumulated net realized losses from investment transactions | | | | (96,207 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (309,437 | ) |
| | | | | | |
Net Assets | | | $ | 1,274,832 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 521,834 | |
| Class C Shares | | | | 36,986 | |
| Class R Shares | | | | 7,274 | |
| Institutional Class Shares | | | | 708,738 | |
| | | | | | |
| Total | | | $ | 1,274,832 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 71,840 | |
| Class C Shares | | | | 5,098 | |
| Class R Shares | | | | 1,001 | |
| Institutional Class Shares | | | | 97,425 | |
| | | | | | |
| Total | | | | 175,364 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.26 | |
| Class C Shares (a) | | | $ | 7.25 | (b) |
| Class R Shares | | | $ | 7.27 | |
| Institutional Class Shares | | | $ | 7.27 | |
| |
| (a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year.
|
| |
| (b) | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
88 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Value
| |
| | | | Fund | |
| | | | |
| | | | | | |
| | | | | | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.70 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 89
Statement of Operations
For the Period Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Value
| |
| | | Fund(a) | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 935 | |
| Dividend income | | | | 16,354 | |
| | | | | | |
| Total Income | | | | 17,289 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 5,290 | |
| Fund administration fees | | | | 836 | |
| Distribution fees Class A | | | | 494 | |
| Distribution fees Class C | | | | 76 | |
| Distribution fees Class R | | | | 31 | |
| Administrative servicing fees Class A | | | | 297 | |
| Administrative servicing fees Class R | | | | 10 | |
| Registration and filing fees | | | | 22,493 | |
| Professional fees | | | | 2,169 | |
| Printing fees | | | | 6,201 | |
| Accounting and transfer agent fees | | | | 2,274 | |
| Trustee fees | | | | 172 | |
| Compliance program costs (Note 3) | | | | 1 | |
| Custodian fees | | | | 871 | |
| Other | | | | 3,493 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 44,708 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (821 | ) |
| Expenses reimbursed by Advisor | | | | (36,145 | ) |
| | | | | | |
| Net Expenses | | | | 7,742 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 9,547 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (96,207 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (309,437 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (405,644 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (396,097 | ) |
| | | | | | |
| | |
| (a) | | For the period from February 28, 2008 (commencement of operations) through October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
90 Annual Report 2008
Statement of Changes in Net Assets
| | | | | | |
| | | | Nationwide Value Fund | |
| | | | | |
| | | | Period Ended
| |
| | | | October 31, 2008 (a) | |
Operations: | | | | | |
| Net investment income | | | $ | 9,547 | |
| Net realized losses from investment transactions | | | | (96,207 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (309,437 | ) |
| | | | | | |
| Change in net assets resulting from operations | | | | (396,097 | ) |
| | | | | | |
| | | | | | |
Distributions to Shareholders From: | | | | | |
| Net investment income: | | | | | |
| Class A | | | | (1,271 | ) |
| Class R | | | | (7 | ) |
| Institutional Class | | | | (3,953 | ) |
| | | | | | |
| Change in net assets from shareholder distributions | | | | (5,231 | ) |
| | | | | | |
| Change in net assets from capital transactions | | | | 1,676,160 | |
| | | | | | |
| Change in net assets | | | | 1,274,832 | |
| | | | | | |
| | | | | | |
Net Assets: | | | | | |
| Beginning of period | | | | – | |
| | | | | | |
| End of period | | | $ | 1,274,832 | |
| | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 10,143 | |
| | | | | | |
CAPITAL TRANSACTIONS: | | | | | |
Class A Shares | | | | | |
| Proceeds from shares issued | | | $ | 654,176 | |
| Dividends reinvested | | | | 1,261 | |
| Cost of shares redeemed | | | �� | (3,059 | ) |
| | | | | | |
| Total Class A | | | | 652,378 | |
| | | | | | |
Class C Shares | | | | | |
| Proceeds from shares issued | | | | 39,998 | |
| Dividends reinvested | | | | – | |
| Cost of shares redeemed | | | | – | |
| | | | | | |
| Total Class C | | | | 39,998 | |
| | | | | | |
Class R Shares | | | | | |
| Proceeds from shares issued | | | | 9,999 | |
| Dividends reinvested | | | | 7 | |
| Cost of shares redeemed | | | | – | |
| | | | | | |
| Total Class R | | | | 10,006 | |
| | | | | | |
Institutional Class Shares | | | | | |
| Proceeds from shares issued | | | | 969,825 | |
| Dividends reinvested | | | | 3,953 | |
| Cost of shares redeemed | | | | – | |
| | | | | | |
| Total Institutional Class | | | | 973,778 | |
| | | | | | |
| Change in net assets from capital transactions: | | | $ | 1,676,160 | |
| | | | | | |
| | | | | | |
SHARE TRANSACTIONS: | | | | | |
| | | | | | |
| | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | |
| |
| (a) | For the period from February 28, 2008 (commencement of operations) through October 31, 2008
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 91
Statement of Changes in Net Assets (Continued)
| | | | | | |
| | | | Nationwide Value Fund | |
| | | | | |
| | | | Period Ended
| |
| | | | October 31, 2008 (a) | |
Class A Shares | | | | | |
| Issued | | | | 72,064 | |
| Reinvested | | | | 136 | |
| Redeemed | | | | (360 | ) |
| | | | | | |
| Total Class A Shares | | | | 71,840 | |
| | | | | | |
Class C Shares | | | | | |
| Issued | | | | 5,098 | |
| Reinvested | | | | – | |
| Redeemed | | | | – | |
| | | | | | |
| Total Class C Shares | | | | 5,098 | |
| | | | | | |
Class R Shares | | | | | |
| Issued | | | | 1,000 | |
| Reinvested | | | | 1 | |
| Redeemed | | | | – | |
| | | | | | |
| Total Class R Shares | | | | 1,001 | |
| | | | | | |
Institutional Class Shares | | | | | |
| Issued | | | | 97,001 | |
| Reinvested | | | | 424 | |
| Redeemed | | | | – | |
| | | | | | |
| Total Institutional Class Shares | | | | 97,425 | |
| | | | | | |
| Total change in shares: | | | | 175,364 | |
| | | | | | |
| | |
| (a) | | For the period from February 28, 2008 (commencement of operations) through October 31, 2008 |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
92 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Value Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | Portfolio
| | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Turnover
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f) | | | $ | 10 | .00 | | | | 0 | .04 | | | | (2 | .75) | | | | (2 | .71) | | | | (0 | .03) | | | | (0 | .03) | | | $ | 7 | .26 | | | | (27 | .18%) | | | $ | 521,834 | | | | | 1 | .20% | | | | 0 | .93% | | | | 6 | .99% | | | | 31 | .13% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f) | | | $ | 10 | .00 | | | | –(g) | | | | | (2 | .75) | | | | (2 | .75) | | | | – | | | | | – | | | | $ | 7 | .25 | | | | (27 | .50%) | | | $ | 36,986 | | | | | 1 | .85% | | | | 0 | .08% | | | | 12 | .42% | | | | 31 | .13% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f) | | | $ | 10 | .00 | | | | 0 | .04 | | | | (2 | .76) | | | | (2 | .72) | | | | (0 | .01) | | | | (0 | .01) | | | $ | 7 | .27 | | | | (27 | .24%) | | | $ | 7,274 | | | | | 1 | .51% | | | | 0 | .62% | | | | 5 | .45% | | | | 31 | .13% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Period Ended October 31, 2008 (f) | | | $ | 10 | .00 | | | | 0 | .08 | | | | (2 | .77) | | | | (2 | .69) | | | | (0 | .04) | | | | (0 | .04) | | | $ | 7 | .27 | | | | (26 | .98%) | | | $ | 708,738 | | | | | 0 | .85% | | | | 1 | .27% | | | | 4 | .78% | | | | 31 | .13% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from February 28, 2008 (commencement of operations) through October 31, 2008. |
| (g) | The amount is less than $0.005 |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 93
| |
| Nationwide Value Opportunities Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Value Opportunities Fund (Class A at NAV) registered -38.76% versus -34.16% for its benchmark, the Russell 2000® Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Small-Cap Core Funds (consisting of 779 funds as of October 31, 2008) was -36.97% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund garnered comparatively good results in the industrials and consumer discretionary sectors, due mainly to favorable stock selection. In consumer discretionary, Fund holding Marvel Entertainment, Inc. performed well in the second and third quarters of 2008 after beating earnings estimates and the success of “Iron Man,” a release from Marvel Studios. In the industrials sector, the Fund’s timely purchase of Republic Airways Holdings Inc. proved rewarding. Republic Airways benefited from a steep decline in fuel costs during the third quarter of 2008.
What areas of investment detracted from Fund performance?
Stock selection in the energy and health-care sectors hampered Fund performance during the reporting period. In the energy sector, shares of Swift Energy Co., an independent oil and gas exploration company, underperformed as falling energy prices and production cuts stemming from downtime after Hurricanes Gustav and Ike hurt profitability. Within health care, shares of Cynosure, Inc., a manufacturer of medical lasers, posted earnings below expectations despite strong revenues. Higher operating expenses, currency losses and profit margin contraction all contributed to the company’s lackluster earnings report.
What is your outlook for the near term?
The financial market events and the economic environment that prevailed during the end of the reporting period appear to have served to heighten investors’ focus on the state of the macroeconomic environment and the soundness of the underlying financial system, not only in the United States but also across the globe. Investors are seeking better clarity on these topics, and market volatility is unlikely to subside until greater levels of clarity are achieved. We do believe, however, as the stock market tends to be forward looking, we expect recovery to occur before the headlines start to improve.
Subadviser:
NorthPointe Capital® LLC
Portfolio Managers:
Mary C. Champagne, CFA; Jeffrey Petherick, CFA; and Peter Cahill, CFA.
94 Annual Report 2008
| |
| Fund Performance | Nationwide Value Opportunities Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC2 | | | -38.76% | | | | -0.78% | | | | 4.18% | | | | 1.64% | | | | 1.38% | |
| | | w/SC3 | | | -42.28% | | | | -1.94% | | | | 3.49% | | | | | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -39.37% | | | | -1.49% | | | | 3.47% | | | | 2.36% | | | | 2.10% | |
| | | w/SC4 | | | -41.88% | | | | -1.69% | | | | 3.47% | | | | | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -39.20% | | | | -1.44% | | | | 3.50% | | | | 2.36% | | | | 2.10% | |
| | | w/SC6 | | | -39.70% | | | | -1.44% | | | | 3.50% | | | | | | | | | |
| |
| |
Class R7,9 | | | | | -38.95% | | | | -1.00% | | | | 3.76% | | | | 2.06% | | | | 1.80% | |
| |
| |
Institutional Class8,9 | | | | | -38.58% | | | | -0.58% | | | | 4.01% | | | | 1.36% | | | | 1.10% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on December 29, 1999. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | These returns until the creation of Class R shares (12/30/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares. |
| |
| 8 | | These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have been adjusted for the fact that Institutional Class shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares. |
| |
| 9 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Value Opportunities Fund, Russell 2000 Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell 2000 is an unmanaged index of approximately 2,000 companies with small market capitalizations relative to the market capilizations of other U.S. companies. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 95
| |
| Shareholder | Nationwide Value Opportunities Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Value Opportunities Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 731.73 | | | | 5.95 | | | | 1.37 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.26 | | | | 6.96 | | | | 1.37 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 726.22 | | | | 10.63 | | | | 2.45 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,012.82 | | | | 12.47 | | | | 2.45 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 729.01 | | | | 8.92 | | | | 2.05 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.82 | | | | 10.45 | | | | 2.05 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 730.17 | | | | 6.94 | | | | 1.59 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.12 | | | | 8.12 | | | | 1.59 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 732.49 | | | | 4.62 | | | | 1.06 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.81 | | | | 5.40 | | | | 1.06 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
96 Annual Report 2008
| |
| Portfolio Summary | Nationwide Value Opportunities Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 98.8% | |
| Repurchase Agreement | | | 0.1% | |
| Other assets in excess of liabilities | | | 1.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Commercial Banks | | | 8.9% | |
| Insurance | | | 6.8% | |
| Biotechnology | | | 5.3% | |
| Commercial Services & Supplies | | | 4.8% | |
| Real Estate Investment Trusts | | | 4.6% | |
| Software | | | 4.3% | |
| Communications Equipment | | | 4.3% | |
| Health Care Providers & Services | | | 3.5% | |
| Aerospace & Defense | | | 3.1% | |
| Electric Utilities | | | 3.0% | |
| Other | | | 51.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Myriad Genetics, Inc. | | | 2.5% | |
| Amerisafe, Inc. | | | 2.3% | |
| Axsys Technologies, Inc. | | | 2.1% | |
| Republic Airways Holdings, Inc. | | | 2.1% | |
| Corporate Office Properties Trust | | | 2.0% | |
| First Bancorp Puerto Rico | | | 2.0% | |
| OSI Pharmaceuticals, Inc. | | | 1.8% | |
| Navigators Group, Inc. | | | 1.8% | |
| Huron Consulting Group, Inc. | | | 1.8% | |
| Sterling Bancorp | | | 1.7% | |
| Other | | | 79.9% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
2008 Annual Report 97
Statement of Investments
October 31, 2008
Nationwide Value Opportunities Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 98.8% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 3.1% |
| Axsys Technologies, Inc.* | | | 2,200 | | | $ | 145,266 | |
| Teledyne Technologies, Inc.* | | | 1,460 | | | | 66,532 | |
| | | | | | | | | |
| | | | | | | | 211,798 | |
| | | | | | | | | |
| |
| |
Airline 2.1% |
| Republic Airways Holdings, Inc.* | | | 9,400 | | | | 140,530 | |
| | | | | | | | | |
| |
| |
Biotechnology 5.3% |
| Alkermes, Inc.* | | | 6,700 | | | | 66,196 | |
| Myriad Genetics, Inc.* | | | 2,700 | | | | 170,343 | |
| OSI Pharmaceuticals, Inc.* | | | 3,300 | | | | 125,235 | |
| | | | | | | | | |
| | | | | | | | 361,774 | |
| | | | | | | | | |
| |
| |
Building Products 1.0% |
| Armstrong World Industries, Inc.* | | | 3,600 | | | | 70,668 | |
| | | | | | | | | |
| |
| |
Capital Markets 1.2% |
| BGC Partners, Inc., Class A | | | 19,500 | | | | 79,755 | |
| | | | | | | | | |
| |
| |
Chemicals 1.6% |
| Innophos Holdings, Inc. | | | 2,400 | | | | 64,200 | |
| Terra Industries, Inc. | | | 1,900 | | | | 41,781 | |
| | | | | | | | | |
| | | | | | | | 105,981 | |
| | | | | | | | | |
| |
| |
Commercial Banks 8.9% |
| First Bancorp Puerto Rico | | | 13,100 | | | | 133,882 | |
| Independent Bank Corp. | | | 2,300 | | | | 66,171 | |
| Old National Bancorp | | | 3,500 | | | | 66,290 | |
| Republic Bancorp, Inc., Class A | | | 2,400 | | | | 55,248 | |
| S.Y. Bancorp, Inc. | | | 2,200 | | | | 60,588 | |
| Sterling Bancorp | | | 7,300 | | | | 114,464 | |
| Suffolk Bancorp | | | 3,400 | | | | 110,330 | |
| | | | | | | | | |
| | | | | | | | 606,973 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 4.8% |
| Cenveo, Inc.* | | | 11,200 | | | | 54,096 | |
| Comfort Systems U.S.A., Inc. | | | 4,600 | | | | 42,918 | |
| Deluxe Corp. | | | 2,900 | | | | 35,264 | |
| Huron Consulting Group, Inc.* | | | 2,200 | | | | 119,614 | |
| Knoll, Inc. | | | 5,400 | | | | 78,084 | |
| | | | | | | | | |
| | | | | | | | 329,976 | |
| | | | | | | | | |
| |
| |
Communications Equipment 4.3% |
| Avocent Corp.* | | | 5,700 | | | | 85,614 | |
| Harmonic, Inc.* | | | 9,600 | | | | 68,256 | |
| Neutral Tandem, Inc.* | | | 3,800 | | | | 66,196 | |
| Starent Networks Corp.* | | | 7,400 | | | | 73,778 | |
| | | | | | | | | |
| | | | | | | | 293,844 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 0.8% |
| QLogic Corp.* | | | 4,700 | | | | 56,494 | |
| | | | | | | | | |
Containers & Packaging 1.1% |
| Temple-Inland, Inc. | | | 13,000 | | | | 77,090 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 0.7% |
| thinkorswim Group, Inc.* | | | 5,800 | | | | 46,400 | |
| | | | | | | | | |
| |
| |
Diversified Telecommunication Services 1.2% |
| NTELOS Holdings Corp. | | | 3,080 | | | | 80,080 | |
| | | | | | | | | |
| |
| |
Electric Utilities 3.0% |
| Empire District Electric Co. (The) | | | 4,900 | | | | 94,129 | |
| ITC Holdings Corp. | | | 2,700 | | | | 109,566 | |
| | | | | | | | | |
| | | | | | | | 203,695 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 1.2% |
| EnerSys* | | | 2,300 | | | | 30,406 | |
| GrafTech International Ltd.* | | | 6,200 | | | | 50,282 | |
| | | | | | | | | |
| | | | | | | | 80,688 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 2.7% |
| ENGlobal Corp.* | | | 8,300 | | | | 36,437 | |
| Oil States International, Inc.* | | | 2,200 | | | | 50,886 | |
| Pioneer Drilling Co.* | | | 6,800 | | | | 52,632 | |
| T-3 Energy Services, Inc.* | | | 1,900 | | | | 45,809 | |
| | | | | | | | �� | |
| | | | | | | | 185,764 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 1.7% |
| Andersons, Inc. (The) | | | 1,700 | | | | 45,271 | |
| BJ’s Wholesale Club, Inc.* | | | 2,100 | | | | 73,920 | |
| | | | | | | | | |
| | | | | | | | 119,191 | |
| | | | | | | | | |
| |
| |
Food Products 2.2% |
| Diamond Foods, Inc. | | | 1,800 | | | | 52,614 | |
| Omega Protein Corp.* | | | 8,100 | | | | 59,778 | |
| Ralcorp Holdings, Inc.* | | | 600 | | | | 40,608 | |
| | | | | | | | | |
| | | | | | | | 153,000 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 3.0% |
| Cyberonics, Inc.* | | | 7,500 | | | | 95,550 | |
| Cynosure, Inc., Class A* | | | 4,500 | | | | 39,420 | |
| Kinetic Concepts, Inc.* | | | 2,800 | | | | 67,788 | |
| | | | | | | | | |
| | | | | | | | 202,758 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 3.5% |
| Health Management Associates, Inc., Class A * | | | 32,300 | | | | 67,830 | |
| HealthSouth Corp.* | | | 6,600 | | | | 82,764 | |
| HealthSpring, Inc.* | | | 5,200 | | | | 85,904 | |
| | | | | | | | | |
| | | | | | | | 236,498 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 2.3% |
| Bally Technologies, Inc.* | | | 3,800 | | | | 84,170 | |
| Bob Evans Farms, Inc. | | | 2,400 | | | | 50,112 | |
| Ruth’s Hospitality Group, Inc.* | | | 8,600 | | | | 19,694 | |
| | | | | | | | | |
| | | | | | | | 153,976 | |
| | | | | | | | | |
| | | | | | | | | |
98 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Household Durables 1.2% |
| Tupperware Brands Corp. | | | 3,300 | | | $ | 83,490 | |
| | | | | | | | | |
| |
| |
Independent Power Producers & Energy Traders 0.7% |
| Ormat Technologies, Inc. | | | 1,900 | | | | 45,904 | |
| | | | | | | | | |
| |
| |
Information Technology Services 2.3% |
| CyberSource Corp.* | | | 5,700 | | | | 69,255 | |
| Mantech International Corp., Class A* | | | 1,600 | | | | 86,304 | |
| | | | | | | | | |
| | | | | | | | 155,559 | |
| | | | | | | | | |
| |
| |
Insurance 6.8% |
| Amerisafe, Inc.* | | | 8,950 | | | | 154,298 | |
| Amtrust Financial Services, Inc. | | | 8,500 | | | | 83,470 | |
| Navigators Group, Inc.* | | | 2,400 | | | | 121,224 | |
| Platinum Underwriters Holdings Ltd. | | | 3,300 | | | | 104,742 | |
| | | | | | | | | |
| | | | | | | | 463,734 | |
| | | | | | | | | |
| |
| |
Internet & Catalog Retail 1.2% |
| Netflix, Inc.* | | | 3,200 | | | | 79,232 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 2.3% |
| ModusLink Global Solutions, Inc.* | | | 9,600 | | | | 53,376 | |
| Sohu.com, Inc.* | | | 1,900 | | | | 104,386 | |
| | | | | | | | | |
| | | | | | | | 157,762 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 1.4% |
| JAKKS Pacific, Inc.* | | | 4,300 | | | | 96,191 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 1.3% |
| Dionex Corp.* | | | 900 | | | | 48,447 | |
| PAREXEL International Corp.* | | | 3,600 | | | | 37,440 | |
| | | | | | | | | |
| | | | | | | | 85,887 | |
| | | | | | | | | |
| |
| |
Machinery 1.8% |
| CIRCOR International, Inc. | | | 1,700 | | | | 52,105 | |
| LB Foster Co., Class A* | | | 2,700 | | | | 74,250 | |
| | | | | | | | | |
| | | | | | | | 126,355 | |
| | | | | | | | | |
| |
| |
Media 1.2% |
| Journal Communications, Inc., Class A | | | 11,700 | | | | 29,250 | |
| Sinclair Broadcast Group, Inc., Class A | | | 16,800 | | | | 54,264 | |
| | | | | | | | | |
| | | | | | | | 83,514 | |
| | | | | | | | | |
| |
| |
Metals & Mining 0.5% |
| Olympic Steel, Inc. | | | 1,400 | | | | 32,004 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 2.5% |
| Alpha Natural Resources, Inc.* | | | 1,300 | | | | 46,501 | |
| Genesis Energy LP | | | 5,500 | | | | 71,500 | |
| Goodrich Petroleum Corp.* | | | 1,800 | | | | 49,968 | |
| | | | | | | | | |
| | | | | | | | 167,969 | |
| | | | | | | | | |
Paper & Forest Products 1.0% |
| Mercer International, Inc.* | | | 25,100 | | | | 70,280 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 1.2% |
| Auxilium Pharmaceuticals, Inc.* | | | 2,500 | | | | 49,125 | |
| Questcor Pharmaceuticals, Inc.* | | | 4,200 | | | | 32,508 | |
| | | | | | | | | |
| | | | | | | | 81,633 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 4.6% |
| Corporate Office Properties Trust | | | 4,300 | | | | 133,687 | |
| First Industrial Realty Trust, Inc. | | | 3,700 | | | | 38,258 | |
| Getty Realty Corp. | | | 4,200 | | | | 81,774 | |
| Hersha Hospitality Trust | | | 13,800 | | | | 58,098 | |
| | | | | | | | | |
| | | | | | | | 311,817 | |
| | | | | | | | | |
| |
| |
Road & Rail 0.8% |
| Old Dominion Freight Line, Inc.* | | | 1,700 | | | | 51,578 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 2.1% |
| Amkor Technology, Inc.* | | | 14,900 | | | | 60,494 | |
| Veeco Instruments, Inc.* | | | 4,300 | | | | 33,282 | |
| Volterra Semiconductor Corp.* | | | 5,500 | | | | 51,920 | |
| | | | | | | | | |
| | | | | | | | 145,696 | |
| | | | | | | | | |
| |
| |
Software 4.3% |
| ANSYS, Inc.* | | | 2,500 | | | | 71,575 | |
| Concur Technologies, Inc.* | | | 4,000 | | | | 100,920 | |
| Manhattan Associates, Inc.* | | | 2,400 | | | | 40,344 | |
| Parametric Technology Corp.* | | | 4,000 | | | | 51,960 | |
| TIBCO Software, Inc.* | | | 6,200 | | | | 31,930 | |
| | | | | | | | | |
| | | | | | | | 296,729 | |
| | | | | | | | | |
| |
| |
Specialty Retail 1.8% |
| Genesco, Inc. | | | 2,100 | | | | 52,101 | |
| Sonic Automotive, Inc., Class A | | | 3,200 | | | | 16,416 | |
| Wet Seal, Inc. (The), Class A* | | | 17,700 | | | | 52,038 | |
| | | | | | | | | |
| | | | | | | | 120,555 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 1.9% |
| Deckers Outdoor Corp.* | | | 900 | | | | 76,374 | |
| Perry Ellis International, Inc.* | | | 5,500 | | | | 53,845 | |
| | | | | | | | | |
| | | | | | | | 130,219 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 1.1% |
| Flagstar Bancorp, Inc. | | | 38,000 | | | | 72,200 | |
| | | | | | | | | |
| |
| |
Trading Companies & Distributors 1.1% |
| Houston Wire & Cable Co. | | | 3,700 | | | | 42,624 | |
| WESCO International, Inc.* | | | 1,800 | | | | 35,784 | |
| | | | | | | | | |
| | | | | | | | 78,408 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 6,733,649 | |
| | | | | |
| | | | | | | | | |
2008 Annual Report 99
Statement of Investments (Continued)
October 31, 2008
Nationwide Value Opportunities Fund (Continued)
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 0.1% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $10,497, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $10,707 | | $ | 10,497 | | | $ | 10,497 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $8,847,569) (a) — 98.9% | | | 6,744,146 | |
Other assets in excess of liabilities — 1.1% | | | | | | | 71,687 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 6,815,833 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
100 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Value Opportunities
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $8,837,072) | | | $ | 6,733,649 | |
| Repurchase agreements, at value and cost | | | | 10,497 | |
| | | | | | |
| Total Investments | | | | 6,744,146 | |
| | | | | | |
| Interest and dividends receivable | | | | 1,875 | |
| Receivable for capital shares issued | | | | 1,113 | |
| Receivable for investments sold | | | | 248,676 | |
| Receivable from advisor | | | | 153 | |
| Prepaid expenses and other assets | | | | 30,001 | |
| | | | | | |
| Total Assets | | | | 7,025,964 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 192,480 | |
| Payable for capital shares redeemed | | | | 4 | |
| Accrued expenses and other payables: | | | | | |
| Fund administration fees | | | | 676 | |
| Distribution fees | | | | 1,919 | |
| Administrative servicing fees | | | | 7,965 | |
| Trustee fees | | | | 23 | |
| Compliance program costs (Note 3) | | | | 46 | |
| Other | | | | 7,018 | |
| | | | | | |
| Total Liabilities | | | | 210,131 | |
| | | | | | |
Net Assets | | | $ | 6,815,833 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 11,534,963 | |
| Accumulated undistributed net investment income | | | | – | |
| Accumulated net realized losses from investment transactions | | | | (2,615,707 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (2,103,423 | ) |
| | | | | | |
Net Assets | | | $ | 6,815,833 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 6,103,841 | |
| Class B Shares | | | | 522,074 | |
| Class C Shares | | | | 188,157 | |
| Class R Shares | | | | 883 | |
| Institutional Class Shares | | | | 878 | |
| | | | | | |
| Total | | | $ | 6,815,833 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 101
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Value Opportunities
| |
| | | | Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 834,933 | |
| Class B Shares | | | | 75,754 | |
| Class C Shares | | | | 27,419 | |
| Class R Shares | | | | 125 | |
| Institutional Class Shares | | | | 117 | |
| | | | | | |
| Total | | | | 938,348 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.31 | |
| Class B Shares (a) | | | $ | 6.87 | (c) |
| Class C Shares (b) | | | $ | 6.86 | |
| Class R Shares | | | $ | 7.09 | (c) |
| Institutional Class Shares | | | $ | 7.53 | (c) |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.76 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
102 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Value Opportunities
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 2,340 | |
| Dividend income | | | | 137,739 | |
| Income from securities lending (Note 2) | | | | 5,704 | |
| | | | | | |
| Total Income | | | | 145,783 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 72,465 | |
| Fund administration fees | | | | 9,903 | |
| Distribution fees Class A | | | | 22,110 | |
| Distribution fees Class B | | | | 11,978 | |
| Distribution fees Class C | | | | 3,078 | |
| Distribution fees Class R | | | | 6 | |
| Administrative servicing fees Class A | | | | 7,405 | |
| Administrative servicing fees Class R | | | | 1 | |
| Registration and filing fees | | | | 30,489 | |
| Professional fees | | | | 1,484 | |
| Printing fees | | | | 24,416 | |
| Trustee fees | | | | 544 | |
| Custodian fees | | | | 2,797 | |
| Other | | | | 9,001 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 195,677 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (1,474 | ) |
| Expenses reimbursed by Advisor | | | | (37,345 | ) |
| Administrator fees voluntarily waived | | | | (85 | ) |
| | | | | | |
| Net Expenses | | | | 156,773 | |
| | | | | | |
NET INVESTMENT LOSS | | | | (10,990 | ) |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (2,583,751 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,190,184 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (4,773,935 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (4,784,925 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 103
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Value Opportunities Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment loss | | | $ | (10,990 | ) | | | $ | (48,343 | ) |
| Net realized gains (losses) from investment transactions | | | | (2,583,751 | ) | | | | 2,107,430 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,190,184 | ) | | | | (1,090,109 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (4,784,925 | ) | | | | 968,978 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (2,437 | ) | | | | – | |
| Class B | | | | (426 | ) | | | | – | |
| Class C | | | | (80 | ) | | | | – | |
| Class R | | | | – | | | | | – | |
| Institutional Class | | | | – | | | | | – | |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (1,642,424 | ) | | | | (1,712,372 | ) |
| Class B | | | | (328,226 | ) | | | | (361,708 | ) |
| Class C | | | | (76,783 | ) | | | | (105,226 | ) |
| Class R | | | | (224 | ) | | | | (190 | ) |
| Institutional Class | | | | (211 | ) | | | | (180 | ) |
| Return of Capital | | | | | | | | | | |
| Class A | | | | (13,171 | ) | | | | | |
| Class B | | | | (2,304 | ) | | | | | |
| Class C | | | | (431 | ) | | | | | |
| Class R | | | | (2 | ) | | | | | |
| Institutional Class | | | | (2 | ) | | | | | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (2,066,721 | ) | | | | (2,179,676 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (67,867 | ) | | | | (1,101,970 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (6,919,513 | ) | | | | (2,312,668 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 13,735,346 | | | | | 16,048,014 | |
| | | | | | | | | | | |
| End of period | | | $ | 6,815,833 | | | | $ | 13,735,346 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | —- | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,990,007 | | | | $ | 1,739,682 | |
| Dividends reinvested | | | | 1,610,135 | | | | | 1,660,602 | |
| Cost of shares redeemed (a) | | | | (2,772,699 | ) | | | | (4,255,618 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 827,443 | | | | | (855,334 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 51,217 | | | | | 77,834 | |
| Dividends reinvested | | | | 317,571 | | | | | 351,171 | |
| Cost of shares redeemed (a) | | | | (1,173,525 | ) | | | | (587,007 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (804,737 | ) | | | | (158,002 | ) |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees – see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
104 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Value Opportunities Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 81,685 | | | | $ | 199,772 | |
| Dividends reinvested | | | | 35,013 | | | | | 52,885 | |
| Cost of shares redeemed (a) | | | | (207,711 | ) | | | | (341,661 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (91,013 | ) | | | | (89,004 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 75 | |
| Dividends reinvested | | | | 226 | | | | | 190 | |
| Cost of shares redeemed | | | | – | | | | | (75 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 226 | | | | | 190 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | – | |
| Dividends reinvested | | | | 214 | | | | | 180 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 214 | | | | | 180 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (67,867 | ) | | | $ | (1,101,970 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 195,844 | | | | | 120,089 | |
| Reinvested | | | | 145,932 | | | | | 117,026 | |
| Redeemed | | | | (275,909 | ) | | | | (292,344 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 65,867 | | | | | (55,229 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 5,835 | | | | | 5,501 | |
| Reinvested | | | | 30,373 | | | | | 25,727 | |
| Redeemed | | | | (122,715 | ) | | | | (42,241 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (86,507 | ) | | | | (11,013 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 8,208 | | | | | 13,952 | |
| Reinvested | | | | 3,365 | | | | | 3,886 | |
| Redeemed | | | | (21,936 | ) | | | | (24,712 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (10,363 | ) | | | | (6,874 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 5 | |
| Reinvested | | | | 21 | | | | | 14 | |
| Redeemed | | | | – | | | | | (5 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 21 | | | | | 14 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | – | |
| Reinvested | | | | 19 | | | | | 13 | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 19 | | | | | 13 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (30,963 | ) | | | | (73,089 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 105
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Value Opportunities Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | | | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | Return
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | of
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Capital | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 14 | .30 | | | | 0 | .01 | | | | (4 | .82) | | | | (4 | .81) | | | | – | | | | | (2 | .16) | | | | (0 | .02) | | | | (2 | .18) | | | $ | 7 | .31 | | | | (38 | .76%) | | | $ | 6,103,841 | | | | | 1 | .42% | | | | (0 | .03%) | | | | 1 | .78% | | | | 124 | .63% | | |
| Year Ended October 31, 2007 | | | $ | 15 | .50 | | | | (0 | .03) | | | | 0 | .94 | | | | 0 | .91 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 14 | .30 | | | | 6 | .01% | | | $ | 10,998,205 | | | | | 1 | .38% | | | | (0 | .16%) | | | | 1 | .64% | | | | 175 | .48% | | |
| Year Ended October 31, 2006 | | | $ | 15 | .17 | | | | 0 | .01 | | | | 2 | .43 | | | | 2 | .44 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 15 | .50 | | | | 17 | .79% | | | $ | 12,776,962 | | | | | 1 | .36% | | | | 0 | .09% | | | | 1 | .66% | | | | 151 | .61% | | |
| Year Ended October 31, 2005 | | | $ | 16 | .01 | | | | –(h) | | | | | 2 | .07 | | | | 2 | .07 | | | | (0 | .02) | | | | (2 | .89) | | | | – | | | | | (2 | .91) | | | $ | 15 | .17 | | | | 13 | .59% | | | $ | 11,262,515 | | | | | 1 | .49% | | | | 0 | .02% | | | | 1 | .85% | | | | 187 | .36% | | |
| Year Ended October 31, 2004 | | | $ | 14 | .47 | | | | –(h) | | | | | 1 | .55 | | | | 1 | .55 | | | | (0 | .01) | | | | – | | | | | – | | | | | (0 | .01) | | | $ | 16 | .01 | | | | 10 | .72% | | | $ | 12,243,936 | | | | | 1 | .36% | | | | (0 | .01%) | | | | 1 | .39% | | | | 146 | .98% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .68 | | | | (0 | .05) | | | | (4 | .59) | | | | (4 | .64) | | | | – | | | | | (2 | .16) | | | | (0 | .01) | | | | (2 | .17) | | | $ | 6 | .87 | | | | (39 | .37%) | | | $ | 522,074 | | | | | 2 | .10% | | | | (0 | .27%) | | | | 2 | .47% | | | | 124 | .63% | | |
| Year Ended October 31, 2007 | | | $ | 15 | .01 | | | | (0 | .14) | | | | 0 | .92 | | | | 0 | .78 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 13 | .68 | | | | 5 | .26% | | | $ | 2,219,359 | | | | | 2 | .10% | | | | (0 | .89%) | | | | 2 | .36% | | | | 175 | .48% | | |
| Year Ended October 31, 2006 | | | $ | 14 | .84 | | | | (0 | .09) | | | | 2 | .37 | | | | 2 | .28 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 15 | .01 | | | | 17 | .02% | | | $ | 2,600,247 | | | | | 2 | .04% | | | | (0 | .59%) | | | | 2 | .34% | | | | 151 | .61% | | |
| Year Ended October 31, 2005 | | | $ | 15 | .78 | | | | (0 | .10) | | | | 2 | .05 | | | | 1 | .95 | | | | – | | | | | (2 | .89) | | | | – | | | | | (2 | .89) | | | $ | 14 | .84 | | | | 12 | .90% | | | $ | 2,591,795 | | | | | 2 | .14% | | | | (0 | .64%) | | | | 2 | .50% | | | | 187 | .36% | | |
| Year Ended October 31, 2004 | | | $ | 14 | .34 | | | | (0 | .11) | | | | 1 | .55 | | | | 1 | .44 | | | | – | | | | | – | | | | | – | | | | | – | | | | $ | 15 | .78 | | | | 10 | .04% | | | $ | 2,630,919 | | | | | 2 | .01% | | | | (0 | .66%) | | | | 2 | .04% | | | | 146 | .98% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) For the period from December 30, 2003 (commencement of operations) through October 31, 2004
(g) For the period from June 29, 2004 (commencement of operations) through October 31, 2004
(h) The amount is less than $0.005
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
106 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Value Opportunities Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | | | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | Return
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | of
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Capital | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31,
2008 | | | $ | 13 | .63 | | | | (0 | .03) | | | | (4 | .57) | | | | (4 | .60) | | | | – | | | | | (2 | .16) | | | | (0 | .01) | | | | (2 | .17) | | | $ | 6 | .86 | | | | (39 | .20%) | | | $ | 188,157 | | | | | 2 | .09% | | | | (0 | .35%) | | | | 2 | .44% | | | | 124 | .63% | | |
Year Ended October 31,
2007 | | | $ | 14 | .96 | | | | (0 | .16) | | | | 0 | .94 | | | | 0 | .78 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 13 | .63 | | | | 5 | .27% | | | $ | 514,906 | | | | | 2 | .10% | | | | (0 | .86%) | | | | 2 | .36% | | | | 175 | .48% | | |
Year Ended October 31,
2006 | | | $ | 14 | .80 | | | | (0 | .09) | | | | 2 | .36 | | | | 2 | .27 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 14 | .96 | | | | 16 | .99% | | | $ | 668,091 | | | | | 2 | .04% | | | | (0 | .59%) | | | | 2 | .34% | | | | 151 | .61% | | |
Year Ended October 31,
2005 | | | $ | 15 | .75 | | | | (0 | .10) | | | | 2 | .04 | | | | 1 | .94 | | | | – | | | | | (2 | .89) | | | | – | | | | | (2 | .89) | | | $ | 14 | .80 | | | | 12 | .86% | | | $ | 669,117 | | | | | 2 | .14% | | | | (0 | .62%) | | | | 2 | .51% | | | | 187 | .36% | | |
Year Ended October 31,
2004 | | | $ | 14 | .31 | | | | (0 | .09) | | | | 1 | .53 | | | | 1 | .44 | | | | – | | | | | – | | | | | – | | | | | – | | | | $ | 15 | .75 | | | | 10 | .06% | | | $ | 652,284 | | | | | 2 | .01% | | | | (0 | .67%) | | | | 2 | .05% | | | | 146 | .98% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31,
2008 | | | $ | 13 | .97 | | | | (0 | .01) | | | | (4 | .69) | | | | (4 | .70) | | | | – | | | | | (2 | .16) | | | | (0 | .02) | | | | (2 | .18) | | | $ | 7 | .09 | | | | (38 | .95%) | | | $ | 883 | | | | | 1 | .71% | | | | (0 | .18%) | | | | 2 | .09% | | | | 124 | .63% | | |
Year Ended October 31,
2007 | | | $ | 15 | .25 | | | | (0 | .09) | | | | 0 | .92 | | | | 0 | .83 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 13 | .97 | | | | 5 | .54% | | | $ | 1,446 | | | | | 1 | .83% | | | | (0 | .62%) | | | | 2 | .18% | | | | 175 | .48% | | |
Year Ended October 31,
2006 | | | $ | 14 | .98 | | | | (0 | .01) | | | | 2 | .39 | | | | 2 | .38 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 15 | .25 | | | | 17 | .59% | | | $ | 1,370 | | | | | 1 | .50% | | | | (0 | .07%) | | | | 1 | .84% | | | | 151 | .61% | | |
Year Ended October 31,
2005 | | | $ | 15 | .83 | | | | 0 | .01 | | | | 2 | .06 | | | | 2 | .07 | | | | (0 | .03) | | | | (2 | .89) | | | | – | | | | | (2 | .92) | | | $ | 14 | .98 | | | | 13 | .71% | | | $ | 1,165 | | | | | 1 | .61% | | | | 0 | .06% | | | | 1 | .99% | | | | 187 | .36% | | |
Period Ended October 31,
2004 (f) | | | $ | 15 | .45 | | | | (0 | .05) | | | | 0 | .43 | | | | 0 | .38 | | | | – | | | | | – | | | | | – | | | | | – | | | | $ | 15 | .83 | | | | 2 | .46% | | | $ | 1,025 | | | | | 1 | .60% | | | | (0 | .35%) | | | | 1 | .64% | | | | 146 | .98% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) For the period from December 30, 2003 (commencement of operations) through October 31, 2004
(g) For the period from June 29, 2004 (commencement of operations) through October 31, 2004
(h) The amount is less than $0.005
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 107
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Value Opportunities Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | | | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | Return
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | of
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Capital | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional
Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31,
2008 | | | $ | 14 | .63 | | | | 0 | .05 | | | | (4 | .96) | | | | (4 | .91) | | | | – | | | | | (2 | .16) | | | | (0 | .03) | | | | (2 | .19) | | | $ | 7 | .53 | | | | (38 | .58%) | | | $ | 878 | | | | | 1 | .08% | | | | 0 | .45% | | | | 1 | .44% | | | | 124 | .63% | | |
Year Ended October 31,
2007 | | | $ | 15 | .77 | | | | 0 | .02 | | | | 0 | .95 | | | | 0 | .97 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 14 | .63 | | | | 6 | .32% | | | $ | 1,430 | | | | | 1 | .06% | | | | 0 | .14% | | | | 1 | .40% | | | | 175 | .48% | | |
Year Ended October 31,
2006 | | | $ | 15 | .35 | | | | 0 | .05 | | | | 2 | .48 | | | | 2 | .53 | | | | – | | | | | (2 | .11) | | | | – | | | | | (2 | .11) | | | $ | 15 | .77 | | | | 18 | .21% | | | $ | 1,344 | | | | | 1 | .07% | | | | 0 | .36% | | | | 1 | .36% | | | | 151 | .61% | | |
Year Ended October 31,
2005 | | | $ | 16 | .14 | | | | 0 | .06 | | | | 2 | .09 | | | | 2 | .15 | | | | (0 | .05) | | | | (2 | .89) | | | | – | | | | | (2 | .94) | | | $ | 15 | .35 | | | | 13 | .96% | | | $ | 1,138 | | | | | 1 | .08% | | | | 0 | .39% | | | | 1 | .30% | | | | 187 | .36% | | |
Period Ended October 31,
2004 (g) | | | $ | 16 | .18 | | | | – | | | | | (0 | .04) | | | | (0 | .04) | | | | – | | | | | – | | | | | – | | | | | – | | | | $ | 16 | .14 | | | | (0 | .19%) | | | $ | 998 | | | | | 1 | .09% | | | | 0 | .09% | | | | 1 | .17% | | | | 146 | .98% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from December 30, 2003 (commencement of operations) through October 31, 2004 |
| (g) | For the period from June 29, 2004 (commencement of operations) through October 31, 2004 |
| (h) | The amount is less than $0.005 |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
108 Annual Report 2008
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Bond Fund (Class A at NAV) registered -4.44% versus 0.31% for its benchmark, the Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index]. For broader comparison, the average return for the Fund’s Lipper peer category of Corporate Debt Funds A Rated (consisting of 171 funds as of October 31, 2008) was -8.24% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Treasuries outperformed corporate bonds, commercial mortgage-backed bonds and asset-backed bonds, whose spreads to government benchmarks all widened significantly during the reporting period. Five-year Treasuries rallied by 118 basis points, or 1.18%. Agency bonds and Agency mortgages also were top performers relative to corporate bonds and commercial mortgage-backed securities.
What areas of investment detracted from Fund performance?
The lowest-performing investments in the Fund were corporate bonds. Of the Fund’s corporate bond holdings, financial and telecommunications bonds performed the worst. Non-Agency mortgage-backed securities (both commercial and residential) also performed poorly during the reporting period and detracted from Fund performance. While the last two months of the reporting period were particularly challenging for financial companies, the Fund benefited in that the Fund did not have any holdings of troubled headline names such as American International Group (AIG), Lehman Brothers or Morgan Stanley.
What is your outlook for the near term?
The near-term economic outlook remains dire, as evidenced by the downtrend in the leading indicators and the continued deterioration in the housing and labor markets. A meaningful recovery in corporate profits appears unlikely in the near future. Still, the markets already have discounted a relatively severe recession and now appear to be much more reasonably valued than these markets were throughout most of the past economic cycle. Moreover, risk assets tend to be leading indicators, with the Standard & Poor’s 500® (S&P 500) Index having bottomed in advance of 12 of the past 13 recessionary troughs. Volatility is likely to remain high, and enormous downside risks persist, but we believe that the worst of the declines has occurred.
Subadviser:
Nationwide Asset Management, LLC
Portfolio Managers:
Mabel C. Brown, CFA and Gary S. Davis, CFA
2008 Annual Report 109
| |
| Fund Performance | Nationwide Bond Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr. | | Ratio* |
| |
Class A1 | | w/o SC2 | | | -4.44% | | | | 2.38% | | | | 3.97% | | | | 1.07% | |
| | | w/SC3 | | | -8.48% | | | | 1.50% | | | | 3.52% | | | | | |
| |
| |
Class B4 | | w/o SC2 | | | -5.08% | | | | 1.70% | | | | 3.32% | | | | 1.72% | |
| | | w/SC5 | | | -9.65% | | | | 1.36% | | | | 3.32% | | | | | |
| |
| |
Class C6 | | w/o SC2 | | | -5.07% | | | | 1.69% | | | | 3.47% | | | | 1.72% | |
| | | w/SC7 | | | -5.99% | | | | 1.69% | | | | 3.47% | | | | | |
| |
| |
| Class D | | w/o SC2 | | | -4.16% | | | | 2.67% | | | | 4.23% | | | | 0.77% | |
| | | w/SC8 | | | -8.48% | | | | 1.72% | | | | 3.75% | | | | | |
| |
| |
Class R1,9 | | | | | -4.60% | | | | 2.14% | | | | 3.95% | | | | 1.42% | |
| |
| |
Class X1 | | w/o SC2 | | | -4.94% | | | | 1.85% | | | | 3.40% | | | | 1.57% | |
| | | w/SC5 | | | -9.51% | | | | 1.52% | | | | 3.40% | | | | | |
| |
| |
Class Y1 | | w/o SC2 | | | -4.94% | | | | 1.85% | | | | 3.56% | | | | 1.57% | |
| | | w/SC7 | | | -5.85% | | | | 1.85% | | | | 3.56% | | | | | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
��
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns, for periods prior to the creation of the classes, include the performance of the Fund’s Class D shares. These returns were achieved prior to the creation of Class Y shares (3/1/01), and Class R shares (10/1/03) . Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R, and Class Y shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for each of these classes of shares would have been lower. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 4.25% front-end sales charge was deducted. |
| |
| 4 | | These returns, for periods prior to the creation of the Fund’s Class B shares on September 4, 2003, include the performance of the Fund’s Class X shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for the Class B shares would have been lower. |
| |
| 5 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 6 | | These returns, for periods prior to March 1, 2001, include the performance of the Fund’s Class D shares and, for the period from March 1, 2001 to the creation of the Fund’s Class C shares on September 4, 2003, include the performance of the Fund’s Class Y shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for Class C shares would have been lower. |
| |
| 7 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C or Class Y shares within the first year after purchase. |
| |
| 8 | | A 4.50% front-end sales charge was deducted. |
| |
| 9 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class D shares of the Nationwide Bond Fund, the
110 Annual Report 2008
Lehman Brothers Government/Credit Bond Index (LBG/CBI)(a), the Consumer Price Index (CPI)(b),and the Lehman Brothers Aggregate Bond Index (LB Aggregate Bond)(c) over a 10-year period ended 10/31/08. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The LBG/CBI is an unmanaged index of government and corporate bonds-gives a broad look at how the prices of U.S. government and corporate bonds have performed. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
| |
| (c) | | The LB Aggregate Bond is an unmanaged index comprised of U.S. government securities and corporate debt securities and is generally representative of the bond market as a whole. |
2008 Annual Report 111
| |
| Shareholder | Nationwide Bond Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Bond Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 934.29 | | | | 5.14 | | | | 1.06 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.82 | | | | 5.39 | | | | 1.06 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 930.69 | | | | 8.89 | | | | 1.83 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,015.92 | | | | 9.33 | | | | 1.83 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 930.77 | | | | 8.78 | | | | 1.81 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.04 | | | | 9.21 | | | | 1.81 | |
| |
| |
| Class D Shares | | | Actual | | | | 1,000.00 | | | | 935.38 | | | | 4.10 | | | | 0.84 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.90 | | | | 4.29 | | | | 0.84 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 933.11 | | | | 6.39 | | | | 1.32 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.52 | | | | 6.70 | | | | 1.32 | |
| |
| |
| Class X Shares | | | Actual | | | | 1,000.00 | | | | 931.39 | | | | 8.13 | | | | 1.67 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.72 | | | | 8.52 | | | | 1.67 | |
| |
| |
| Class Y Shares | | | Actual | | | | 1,000.00 | | | | 931.46 | | | | 8.10 | | | | 1.67 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.75 | | | | 8.49 | | | | 1.67 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
112 Annual Report 2008
| |
| Portfolio Summary | Nationwide Bond Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Corporate Bonds | | | 42.8% | |
| Commercial Mortgage Backed Securities | | | 17.8% | |
| U.S. Government Sponsored & Agency Obligations | | | 10.4% | |
| U.S. Government Sponsored Mortgage-Backed Obligations | | | 10.2% | |
| Collateralized Mortgage Obligations | | | 9.8% | |
| Asset-Backed Securities | | | 4.1% | |
| Repurchase Agreement | | | 2.6% | |
| Municipal Bonds | | | 1.2% | |
| Principal Only Bonds | | | 1.0% | |
| Commercial Paper | | | 0.7% | |
| Sovereign Agency | | | 0.6% | |
| Liabilities in excess of other assets | | | -1.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Other Financial | | | 6.2% | |
| Home Equity Loans | | | 4.8% | |
| Diversified Financial Services | | | 4.7% | |
| Airlines | | | 4.2% | |
| Banks | | | 3.9% | |
| Oil, Gas & Consumable Fuels | | | 3.4% | |
| Insurance | | | 3.1% | |
| Beverages | | | 2.8% | |
| Telecommunications | | | 2.6% | |
| Healthcare | | | 2.2% | |
| Other | | | 62.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
Fannie Mae Grantor Trust, Series 2000-T5, Class B, 7.30%, 05/25/10 | | | 4.0% | |
| U.S. Treasury Notes, 3.13%, 08/31/13 | | | 3.8% | |
| Fannie Mae Pool, Pool # 983668, 6.00%, 08/01/38 | | | 3.7% | |
| Freddie Mac Gold, Pool # E01443, 3.50%, 07/01/18 | | | 3.1% | |
| U.S. Treasury Notes, 4.63%, 07/31/12 | | | 2.7% | |
| U.S. Treasury Notes, 3.13%, 09/30/13 | | | 2.6% | |
| Fannie Mae Pool, Pool # 383661, 6.62%, 06/01/16 | | | 2.3% | |
Fannie Mae REMICS, Series 2003-33, Class LB, 5.50%, 05/25/23 | | | 2.3% | |
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3, 6.26%, 03/15/33 | | | 2.3% | |
| PepsiAmericas, Inc., 7.29%, 09/15/26 | | | 2.1% | |
| Other | | | 71.1% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of top holdings, the repurchase agreement is included as part of Other. |
2008 Annual Report 113
Statement of Investments
October 31, 2008
Nationwide Bond Fund
| | | | | | | | | |
| | | | | | | | | |
| Asset-Backed Securities 4.1% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Auto Loans 1.3%(a) |
Ford Credit Floorplan Master Owner Trust, Series 2006-3, Class A, 4.74%, 06/15/11 | | $ | 1,100,000 | | | $ | 1,061,791 | |
Home Equity Loans 2.7% |
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2001-4, Class 1A6, 6.24%, 01/25/13 | | | 812,052 | | | | 785,176 | |
Residential Asset Mortgage Products, Inc., Series 2002-RS1, Class AI5, 5.91%, 01/25/32 | | | 631,668 | | | | 500,846 | |
Structured Asset Securities Corp., Series 2004-6XS, Class A6, 4.63%, 03/25/34(b) | | | 918,914 | | | | 834,729 | |
| | | | | | | | | |
| | | | | | | | 2,120,751 | |
Recreational Vehicles 0.1% |
SSB RV Trust, Series 2001-1, Class A5, 6.30%, 04/15/16 | | | 101,966 | | | | 101,688 | |
| | | | | | | | | |
| | | | | |
Total Asset-Backed Securities | | | 3,284,230 | |
| | | | | | | | | |
| | | | | | | | | |
| Collateralized Mortgage Obligations 9.8% |
| | | | | | | | | |
ABN Amro Mortgage Corp., Series 2003-8, Class A23, 5.50%, 06/25/33 | | | 1,000,000 | | | | 876,052 | |
American Home Mortgage Investment Trust, Series 2004-3, Class 6A1, 4.82%, 10/25/34(a)(b) | | | 936,042 | | | | 834,371 | |
Countrywide Alternative Loan Trust, Series 2007-2CB, Class 2A14, 5.75%, 03/25/37 | | | 999,347 | | | | 756,040 | |
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-15, Class A7, 5.50%, 08/25/35 | | | 1,000,000 | | | | 915,821 | |
Fannie Mae REMICS, Series 2003-33, Class LB, 5.50%, 05/25/23 | | | 2,000,000 | | | | 1,867,399 | |
MASTR Alternative Loans Trust, Series 2005-6, Class 1A5, 5.50%, 12/25/35 | | | 1,000,000 | | | | 736,156 | |
Opteum Mortgage Acceptance Corp., Series 2005-5, Class 2AN, 5.68%, 12/25/35 | | | 1,000,000 | | | | 847,506 | |
Residential Funding Securities LLC, Series 2003-RM2, Class AI3, 4.50%, 05/25/33 | | | 1,000,000 | | | | 951,669 | |
| | | | | | | | | |
| | | | | |
Total Collateralized Mortgage Obligations | | | 7,785,014 | |
| | | | | | | | | |
| | | | | | | | | |
| Commercial Mortgage Backed Securities 17.8% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| Banc of America Commercial Mortgage, Inc., 5.84%, 04/10/49(a) | | | 1,000,000 | | | | 810,385 | |
| Commercial Mortgage Pass Through Certificates, 6.61%, 02/14/34 | | | 1,000,000 | | | | 974,188 | |
| Credit Suisse Mortgage Capital Certificates, 5.69%, 09/15/40(a) | | | 1,000,000 | | | | 782,737 | |
| CS First Boston Mortgage Securities Corp., 4.94%, 12/15/35 | | | 955,000 | | | | 845,116 | |
| Enterprise Mortgage Acceptance Co. LLC, 6.63%, 01/15/25(c) | | | 403,031 | | | | 353,635 | |
Fannie Mae Grantor Trust, Series 2000-T5, Class B, 7.30%, 05/25/10 | | | 3,000,000 | | | | 3,154,131 | |
| Greenwich Capital Commercial Funding Corp., 5.72%, 12/10/49 | | | 1,000,000 | | | | 783,390 | |
| Heller Financial Commercial Mortgage Asset, 6.85%, 05/15/31 | | | 443,482 | | | | 442,014 | |
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3, 6.26%, 03/15/33 | | | 1,864,764 | | | | 1,814,587 | |
| LB Commercial Conduit Mortgage Trust, 6.13%, 07/15/44(a) | | | 1,000,000 | | | | 804,093 | |
| LB-UBS Commercial Mortgage Trust, 5.65%, 11/15/30(a) | | | 1,000,000 | | | | 876,492 | |
| Merrill Lynch Mortgage Investors, Inc., 7.56%, 11/15/31 | | | 1,524,834 | | | | 1,520,316 | |
| Nomura Asset Securities Corp., 6.69%, 03/15/30 | | | 1,000,000 | | | | 974,660 | |
| | | | | | | | | |
| | | | | |
Total Commercial Mortgage Backed Securities | | | 14,135,744 | |
| | | | | | | | | |
| | | | | | | | | |
| Corporate Bonds 42.8% |
| | | | | | | | | |
| | | | | | | | | |
Air Freight & Logistics 1.3% |
| FedEx Corp. Pass Through Trust, Series B2, 7.63%, 01/01/15 | | | 1,000,000 | | | | 1,027,890 | |
Airlines 5.0% |
| America West Airlines, Inc., 6.85%, 07/02/09 | | | 32,435 | | | | 31,624 | |
American Airlines Pass Through Trust, Series 1999-1, Class A-2, 7.02%, 10/15/09 | | | 750,000 | | | | 710,625 | |
| Continental Airlines, Inc., 6.90%, 01/02/17 | | | 1,244,498 | | | | 871,149 | |
| Delta Air Lines, Inc., 7.11%, 09/18/11 | | | 1,000,000 | | | | 800,000 | |
| Northwest Airlines, Inc., 7.63%, 04/01/10 | | | 527,757 | | | | 448,593 | |
United Air Lines Pass Through Trust, Series 2001-1, 6.93%, 09/01/11 | | | 1,000,000 | | | | 1,160,000 | |
| | | | | | | | | |
| | | | | | | | 4,021,991 | |
Banks 3.9% |
| Bank of America Corp., 8.13%, 12/29/49(a) | | | 1,000,000 | | | | 748,710 | |
114 Annual Report 2008
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Banks (continued) |
| | | | | | | | | |
| JPMorgan Chase & Co., 7.94%, 04/29/49(a) | | $ | 1,000,000 | | | $ | 810,440 | |
| Rabobank Capital Funding Trust, 5.25%, 12/29/49(a)(c) | | | 1,000,000 | | | | 648,810 | |
| Regions Financial Corp., 7.00%, 03/01/11 | | | 1,000,000 | | | | 939,682 | |
| | | | | | | | | |
| | | | | | | | 3,147,642 | |
Beverages 2.8% |
| Dr Pepper Snapple Group, Inc., 7.45%, 05/01/38(c) | | | 650,000 | | | | 526,285 | |
| PepsiAmericas, Inc., 7.29%, 09/15/26 | | | 1,500,000 | | | | 1,700,007 | |
| | | | | | | | | |
| | | | | | | | 2,226,292 | |
Consumer Goods 1.1%(c) |
| SABMiller PLC, 6.50%, 07/15/18 | | | 1,000,000 | | | | 864,786 | |
Diversified Financial Services 2.4% |
| Caterpillar Financial Services Corp., 6.20%, 09/30/13 | | | 1,000,000 | | | | 964,407 | |
| Textron Financial Corp., 5.13%, 11/01/10 | | | 1,000,000 | | | | 922,868 | |
| | | | | | | | | |
| | | | | | | | 1,887,275 | |
Electronic Equipment & Instruments 1.4% |
| Eaton Corp., 8.88%, 06/15/19 | | | 1,000,000 | | | | 1,094,652 | |
Healthcare 2.2% |
| Covidien International Finance SA, 6.55%, 10/15/37 | | | 1,000,000 | | | | 790,520 | |
| Quest Diagnostics, Inc., 5.13%, 11/01/10 | | | 1,000,000 | | | | 948,081 | |
| | | | | | | | | |
| | | | | | | | 1,738,601 | |
Insurance 3.1% |
| Ohio Casualty Corp., 7.30%, 06/15/14 | | | 1,000,000 | | | | 1,030,414 | |
| Oil Insurance Ltd., 7.56%, 12/29/49(c) | | | 1,000,000 | | | | 505,980 | |
| Principal Life Income Funding Trusts, 5.30%, 12/14/12 | | | 1,000,000 | | | | 960,581 | |
| | | | | | | | | |
| | | | | | | | 2,496,975 | |
Manufacturing 2.0% |
| Digital Equipment Corp., 7.75%, 04/01/23 | | | 825,000 | | | | 775,347 | |
| General Electric Co., 5.25%, 12/06/17 | | | 1,000,000 | | | | 837,050 | |
| | | | | | | | | |
| | | | | | | | 1,612,397 | |
Media 1.3% |
| Comcast Cable Holdings LLC, 9.80%, 02/01/12 | | | 1,000,000 | | | | 1,011,714 | |
Oil, Gas & Consumable Fuels 3.4% |
| Energy Transfer Partners LP, 5.65%, 08/01/12 | | | 1,000,000 | | | | 904,360 | |
| EOG Resources, Inc., 6.13%, 10/01/13 | | | 1,000,000 | | | | 983,650 | |
| Kinder Morgan Energy Partners LP, 5.95%, 02/15/18 | | | 1,000,000 | | | | 782,541 | |
| | | | | | | | | |
| | | | | | | | 2,670,551 | |
Oilfield Machinery & Services 1.1% |
| Weatherford International Ltd., 5.15%, 03/15/13 | | | 1,000,000 | | | | 867,734 | |
Other Financial 6.3% |
| Ford Motor Credit Co. LLC, 7.38%, 02/01/11 | | | 500,000 | | | | 311,123 | |
| GMAC LLC, 6.75%, 12/01/14 | | | 500,000 | | | | 252,498 | |
| HSBC Finance Corp., 6.38%, 10/15/11 | | | 1,000,000 | | | | 922,174 | |
| National Rural Utility Corp., 10.38%, 11/01/18 | | | 1,000,000 | | | | 1,060,068 | |
| OMX Timber Finance Investments I LLC, 5.42%, 01/29/20(c) | | | 1,000,000 | | | | 700,000 | |
| SLM Corp., 2.05%, 12/15/08(a) | | | 1,000,000 | | | | 991,462 | |
| Telecom Italia Capital SA, 5.25%, 11/15/13 | | | 1,000,000 | | | | 759,036 | |
| | | | | | | | | |
| | | | | | | | 4,996,361 | |
Paper & Forest Products 0.8%(c) |
| Stora Enso OYJ, 7.25%, 04/15/36 | | | 1,000,000 | | | | 661,569 | |
Real Estate Investment Trusts 0.8% |
| Highwoods Properties, Inc., 5.85%, 03/15/17 | | | 1,000,000 | | | | 642,640 | |
Road & Rail 1.2% |
| Union Pacific Corp., 7.88%, 01/15/19 | | | 1,000,000 | | | | 989,768 | |
Specialty Retail 1.0%(c) |
| CVS Pass Through Trust, 6.94%, 01/10/30 | | | 985,522 | | | | 834,077 | |
Telecommunications 1.7% |
| FairPoint Communications, Inc., 13.13%, 04/01/18(c) | | | 1,000,000 | | | | 705,000 | |
| Qwest Corp., 6.88%, 09/15/33 | | | 1,000,000 | | | | 620,000 | |
| | | | | | | | | |
| | | | | | | | 1,325,000 | |
| | | | | | | | | |
| | | | | |
Total Corporate Bonds | | | 34,117,915 | |
| | | | | | | | | |
| | | | | | | | | |
| Municipal Bonds 1.2% |
| | | | | | | | | |
| | | | | | | | | |
Iowa 0.9% |
| Tobacco Settlement Authority of Iowa, 6.50%, 06/01/23 | | | 885,000 | | | $ | 738,851 | |
Louisiana 0.3% |
| Tobacco Settlement Financing Corp., 6.36%, 05/15/25 | | | 254,033 | | | | 246,379 | |
| | | | | | | | | |
| | | | | |
Total Municipal Bonds | | | 985,230 | |
| | | | | | | | | |
| | | | | | | | | |
| Principal Only Bonds 1.0%(d) |
| | | | | | | | | |
| United States Treasury Strip, 3.61%, 08/15/20 | | | 1,500,000 | | | $ | 813,472 | |
| | | | | | | | | |
| | | | | |
Total Principal Only Bonds | | | 813,472 | |
| | | | | | | | | |
2008 Annual Report 115
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Fund (Continued)
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Sovereign Agency 0.6%(e) |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
ISRAEL 0.6% |
| Israel Government AID Bond, 3.32%, 05/15/24 | | $ | 1,000,000 | | | $ | 443,122 | |
| | | | | | | | | |
| | | | | |
Total Sovereign Agency | | | 443,122 | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Sponsored & Agency Obligations 10.4% |
| | | | | | | | | |
| U.S. Treasury Notes | | | | | | | | |
| 4.63%, 07/31/12 | | | 2,000,000 | | | | 2,182,812 | |
| 3.13%, 08/31/13 | | | 3,000,000 | | | | 3,052,734 | |
| 3.13%, 09/30/13 | | | 2,000,000 | | | | 2,032,500 | |
| 4.00%, 08/15/18 | | | 1,000,000 | | | | 1,001,328 | |
| | | | | | | | | |
| | | | | |
Total U.S. Government Sponsored & Agency Obligations | | | 8,269,374 | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Sponsored Mortgage-Backed Obligations 10.2% |
| | | | | | | | | |
| Fannie Mae Pool | | | | | | | | |
| Pool # 383661, 6.62%, 06/01/16 | | | 1,811,868 | | | | 1,872,733 | |
| Pool # 386905, 5.00%, 04/01/19 | | | 934,132 | | | | 858,559 | |
| Pool # 983668, 6.00%, 08/01/38 | | | 2,974,408 | | | | 2,974,253 | |
| Freddie Mac Gold, Pool # E01443, 3.50%, 07/01/18 | | | 2,623,922 | | | | 2,446,032 | |
| | | | | | | | | |
| | | | | |
Total U.S. Government Sponsored Mortgage-Backed Obligations | | | 8,151,577 | |
| | | | | | | | | |
| | | | | | | | | |
| Commercial Paper 0.7%(d) |
| | | | | | | | | |
| | | | | | | | | |
Financial Services 0.70% |
| Avon Capital Corp., 0.25%, 11/03/08 | | | 570,000 | | | | 569,992 | |
| | | | | | | | | |
| | | | | |
Total Commercial Paper | | | 569,992 | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 2.6% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $2,056,813, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $2,097,935 | | | 2,056,799 | | | | 2,056,799 | |
| | | | | | | | | |
| | | | | |
Total Repurchase Agreement | | | 2,056,799 | |
| | | | | |
| | | | | |
Total Investments (Cost $88,290,628) (f) — 101.2% | | | 80,612,469 | |
Liabilities in excess of other assets — (1.2)% | | | | | | | (970,919 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 79,641,550 | |
| | | | | |
| | |
| (a) | | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on October 31, 2008. The maturity date represents the actual maturity date. |
| |
| (b) | | Step Bond: Coupon rate is set for an initial period and then increased to a higher coupon rate at a specified date. The rate shown is the rate in effect at October 31, 2008. |
| |
| (c) | | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined by Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. |
| |
| (d) | | The rate reflected in the Statement of Investments is the discount rate at the time of purchase. |
| |
| (e) | | Zero coupon security. The rate reported is the effective yield at time of purchase. |
| |
| (f) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| LP | | Limited Partnership |
| |
| REMICS | | Real Estate Mortgage Investment Conduit |
The accompanying notes are an integral part of these financial statements.
116 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Bond
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $86,233,829) | | | $ | 78,555,670 | |
| Repurchase agreements, at value and cost | | | | 2,056,799 | |
| | | | | | |
| Total Investments | | | | 80,612,469 | |
| | | | | | |
| Interest receivable | | | | 781,496 | |
| Receivable for capital shares issued | | | | 467,605 | |
| Prepaid expenses and other assets | | | | 49,080 | |
| | | | | | |
| Total Assets | | | | 81,910,650 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 2,014,857 | |
| Distributions payable | | | | 56,014 | |
| Payable for capital shares redeemed | | | | 122,758 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 34,361 | |
| Fund administration fees | | | | 8,236 | |
| Distribution fees | | | | 5,581 | |
| Administrative servicing fees | | | | 1,078 | |
| Trustee fees | | | | 241 | |
| Compliance program costs (Note 3) | | | | 292 | |
| Custodian fees | | | | 598 | |
| Other | | | | 25,084 | |
| | | | | | |
| Total Liabilities | | | | 2,269,100 | |
| | | | | | |
Net Assets | | | $ | 79,641,550 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 87,240,563 | |
| Accumulated undistributed net investment income | | | | 9,644 | |
| Accumulated net realized gains from investment transactions | | | | 69,502 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (7,678,159 | ) |
| | | | | | |
Net Assets | | | $ | 79,641,550 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 12,867,795 | |
| Class B Shares | | | | 406,247 | |
| Class C Shares | | | | 2,270,713 | |
| Class D Shares | | | | 63,129,602 | |
| Class R Shares | | | | 67,400 | |
| Class X Shares | | | | 799,807 | |
| Class Y Shares | | | | 99,986 | |
| | | | | | |
| Total | | | $ | 79,641,550 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 117
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Bond
| |
| | | | Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 1,480,623 | |
| Class B Shares | | | | 46,742 | |
| Class C Shares | | | | 261,054 | |
| Class D Shares | | | | 7,254,148 | |
| Class R Shares | | | | 7,751 | |
| Class X Shares | | | | 92,023 | |
| Class Y Shares | | | | 11,491 | |
| | | | | | |
| Total | | | | 9,153,832 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.69 | |
| Class B Shares (a) | | | $ | 8.69 | |
| Class C Shares (b) | | | $ | 8.70 | |
| Class D Shares | | | $ | 8.70 | |
| Class R Shares | | | $ | 8.70 | |
| Class X Shares (a) | | | $ | 8.69 | |
| Class Y Shares (b) | | | $ | 8.70 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 9.22 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B and Class X Shares, the redemption price per share varies by length of time shares are held. |
| |
| (b) | | For Class C and Class Y Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
118 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Bond
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 5,031,031 | |
| Income from securities lending (Note 2) | | | | 25,984 | |
| | | | | | |
| Total Income | | | | 5,057,015 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 445,936 | |
| Fund administration fees | | | | 84,702 | |
| Distribution fees Class A | | | | 32,447 | |
| Distribution fees Class B | | | | 4,869 | |
| Distribution fees Class C | | | | 19,133 | |
| Distribution fees Class R | | | | 320 | |
| Distribution fees Class X | | | | 9,842 | |
| Distribution fees Class Y | | | | 1,102 | |
| Administrative servicing fees Class A | | | | 9,842 | |
| Administrative servicing fees Class D | | | | 27,297 | |
| Administrative servicing fees Class R | | | | 1 | |
| Registration and filing fees | | | | 61,488 | |
| Professional fees | | | | 12,718 | |
| Printing fees | | | | 58,915 | |
| Trustee fees | | | | 4,619 | |
| Custodian fees | | | | 8,939 | |
| Other | | | | 28,781 | |
| | | | | | |
| Total expenses before waived expenses | | | | 810,951 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (5,869 | ) |
| Administrator fees voluntarily waived | | | | (410 | ) |
| | | | | | |
| Net Expenses | | | | 804,672 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 4,252,343 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 1,224,885 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (8,927,186 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (7,702,301 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (3,449,958 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 119
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 4,252,343 | | | | $ | 4,874,895 | |
| Net realized gains from investment transactions | | | | 1,224,885 | | | | | 1,113,283 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (8,927,186 | ) | | | | (1,783,177 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (3,449,958 | ) | | | | 4,205,001 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (593,004 | ) | | | | (574,170 | ) |
| Class B | | | | (18,932 | ) | | | | (12,979 | ) |
| Class C | | | | (75,130 | ) | | | | (53,417 | ) |
| Class D | | | | (3,506,711 | ) | | | | (3,994,198 | ) |
| Class R | | | | (2,801 | ) | | | | (50 | ) |
| Class X | | | | (46,411 | ) | | | | (71,656 | ) |
| Class Y | | | | (5,203 | ) | | | | (6,394 | ) |
| Institutional Class | | | | – | | | | | (78,829 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (4,248,192 | ) | | | | (4,791,693 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (3,288,055 | ) | | | | (19,910,544 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (10,986,205 | ) | | | | (20,497,236 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 90,627,755 | | | | | 111,124,991 | |
| End of period | | | $ | 79,641,550 | | | | $ | 90,627,755 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 9,644 | | | | $ | 9,751 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 6,971,744 | | | | $ | 4,627,891 | |
| Dividends reinvested | | | | 530,344 | | | | | 493,279 | |
| Cost of shares redeemed (a) | | | | (5,601,610 | ) | | | | (4,295,902 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 1,900,478 | | | | | 825,268 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 292,868 | | | | | 225,866 | |
| Dividends reinvested | | | | 9,039 | | | | | 6,437 | |
| Cost of shares redeemed (a) | | | | (222,535 | ) | | | | (126,858 | ) |
| | | | | | | | | | | |
| Total Class B | | | | 79,372 | | | | | 105,445 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,080,856 | | | | | 1,107,691 | |
| Dividends reinvested | | | | 17,337 | | | | | 9,393 | |
| Cost of shares redeemed (a) | | | | (1,052,228 | ) | | | | (983,047 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 1,045,965 | | | | | 134,037 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
120 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 6,830,549 | | | | $ | 4,770,586 | |
| Dividends reinvested | | | | 3,051,144 | | | | | 3,455,584 | |
| Cost of shares redeemed (a) | | | | (15,615,227 | ) | | | | (16,609,923 | ) |
| | | | | | | | | | | |
| Total Class D | | | | (5,733,534 | ) | | | | (8,383,753 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 304,443 | | | | | 363 | |
| Dividends reinvested | | | | 177 | | | | | 50 | |
| Cost of shares redeemed | | | | (232,884 | ) | | | | (76 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 71,736 | | | | | 337 | |
| | | | | | | | | | | |
Class X Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 23,063 | | | | | 39,036 | |
| Dividends reinvested | | | | 37,763 | | | | | 57,407 | |
| Cost of shares redeemed | | | | (678,135 | ) | | | | (445,674 | ) |
| | | | | | | | | | | |
| Total Class X | | | | (617,309 | ) | | | | (349,231 | ) |
| | | | | | | | | | | |
Class Y Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 651 | | | | | 1,347 | |
| Dividends reinvested | | | | 3,895 | | | | | 5,032 | |
| Cost of shares redeemed (a) | | | | (39,309 | ) | | | | (11,655 | ) |
| | | | | | | | | | | |
| Total Class Y | | | | (34,763 | ) | | | | (5,276 | ) |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 759,518 | |
| Dividends reinvested | | | | – | | | | | 78,829 | |
| Cost of shares redeemed | | | | – | | | | | (13,075,718 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | – | | | | | (12,237,371 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (3,288,055 | ) | | | $ | (19,910,544 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 735,301 | | | | | 485,346 | |
| Reinvested | | | | 56,521 | | | | | 51,843 | |
| Redeemed | | | | (590,285 | ) | | | | (452,219 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 201,537 | | | | | 84,970 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 30,472 | | | | | 23,722 | |
| Reinvested | | | | 959 | | | | | 678 | |
| Redeemed | | | | (23,711 | ) | | | | (13,374 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | 7,720 | | | | | 11,026 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 121
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 220,942 | | | | | 116,035 | |
| Reinvested | | | | 1,855 | | | | | 985 | |
| Redeemed | | | | (111,872 | ) | | | | (103,167 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 110,925 | | | | | 13,853 | |
| | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Issued | | | | 717,195 | | | | | 500,925 | |
| Reinvested | | | | 323,958 | | | | | 362,664 | |
| Redeemed | | | | (1,655,300 | ) | | | | (1,743,045 | ) |
| | | | | | | | | | | |
| Total Class D Shares | | | | (614,147 | ) | | | | (879,456 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 32,002 | | | | | 38 | |
| Reinvested | | | | 20 | | | | | 5 | |
| Redeemed | | | | (24,422 | ) | | | | (8 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 7,600 | | | | | 35 | |
| | | | | | | | | | | |
Class X Shares | | | | | | | | | | |
| Issued | | | | 2,438 | | | | | 4,097 | |
| Reinvested | | | | 4,003 | | | | | 6,031 | |
| Redeemed | | | | (71,246 | ) | | | | (46,852 | ) |
| | | | | | | | | | | |
| Total Class X Shares | | | | (64,805 | ) | | | | (36,724 | ) |
| | | | | | | | | | | |
Class Y Shares | | | | | | | | | | |
| Issued | | | | 94 | | | | | 140 | |
| Reinvested | | | | 412 | | | | | 528 | |
| Redeemed | | | | (4,181 | ) | | | | (1,229 | ) |
| | | | | | | | | | | |
| Total Class Y Shares | | | | (3,675 | ) | | | | (561 | ) |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 79,677 | |
| Reinvested | | | | – | | | | | 8,185 | |
| Redeemed | | | | – | | | | | (1,363,420 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | – | | | | | (1,275,558 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | (354,845 | ) | | | | (2,082,415 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
122 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Distributions | | | of Period | | | Return (a) | | | of Period | | | Net Assets | | | Net Assets | | | Net Assets (b) | | | Turnover (c) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .52 | | | | 0 | .43 | | | | (0 | .83) | | | | (0 | .40) | | | | (0 | .43) | | | | (0 | .43) | | | $ | 8 | .69 | | | | (4 | .44%) | | | $ | 12,867,795 | | | | | 1 | .11% | | | | 4 | .58% | | | | 1 | .11% | | | | 68 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .58 | | | | 0 | .47 | | | | (0 | .07) | | | | 0 | .40 | | | | (0 | .46) | | | | (0 | .46) | | | $ | 9 | .52 | | | | 4 | .23% | | | $ | 12,177,566 | | | | | 1 | .07% | | | | 4 | .89% | | | | 1 | .08% | | | | 39 | .35% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .53 | | | | 0 | .44 | | | | 0 | .04 | | | | 0 | .48 | | | | (0 | .43) | | | | (0 | .43) | | | $ | 9 | .58 | | | | 5 | .22% | | | $ | 11,434,384 | | | | | 1 | .08% | | | | 4 | .76% | | | | 1 | .08% | | | | 36 | .06% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .75 | | | | 0 | .40 | | | | (0 | .22) | | | | 0 | .18 | | | | (0 | .40) | | | | (0 | .40) | | | $ | 9 | .53 | | | | 1 | .87% | | | $ | 10,212,294 | | | | | 1 | .10% | | | | 4 | .15% | | | | –(d) | | | | | 34 | .08% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .67 | | | | 0 | .43 | | | | 0 | .08 | | | | 0 | .51 | | | | (0 | .43) | | | | (0 | .43) | | | $ | 9 | .75 | | | | 5 | .37% | | | $ | 10,668,648 | | | | | 1 | .04% | | | | 4 | .38% | | | | –(d) | | | | | 17 | .20% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .52 | | | | 0 | .37 | | | | (0 | .83) | | | | (0 | .46) | | | | (0 | .37) | | | | (0 | .37) | | | $ | 8 | .69 | | | | (5 | .08%) | | | $ | 406,247 | | | | | 1 | .80% | | | | 3 | .89% | | | | 1 | .80% | | | | 68 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .57 | | | | 0 | .40 | | | | (0 | .06) | | | | 0 | .34 | | | | (0 | .39) | | | | (0 | .39) | | | $ | 9 | .52 | | | | 3 | .67% | | | $ | 371,480 | | | | | 1 | .72% | | | | 4 | .24% | | | | 1 | .73% | | | | 39 | .35% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .53 | | | | 0 | .39 | | | | 0 | .02 | | | | 0 | .41 | | | | (0 | .37) | | | | (0 | .37) | | | $ | 9 | .57 | | | | 4 | .41% | | | $ | 268,065 | | | | | 1 | .75% | | | | 4 | .12% | | | | 1 | .75% | | | | 36 | .06% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .75 | | | | 0 | .34 | | | | (0 | .22) | | | | 0 | .12 | | | | (0 | .34) | | | | (0 | .34) | | | $ | 9 | .53 | | | | 1 | .18% | | | $ | 223,027 | | | | | 1 | .78% | | | | 3 | .46% | | | | –(d) | | | | | 34 | .08% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .67 | | | | 0 | .36 | | | | 0 | .08 | | | | 0 | .44 | | | | (0 | .36) | | | | (0 | .36) | | | $ | 9 | .75 | | | | 4 | .66% | | | $ | 102,131 | | | | | 1 | .72% | | | | 3 | .64% | | | | –(d) | | | | | 17 | .20% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .53 | | | | 0 | .37 | | | | (0 | .83) | | | | (0 | .46) | | | | (0 | .37) | | | | (0 | .37) | | | $ | 8 | .70 | | | | (5 | .07%) | | | $ | 2,270,713 | | | | | 1 | .78% | | | | 3 | .93% | | | | 1 | .78% | | | | 68 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .58 | | | | 0 | .40 | | | | (0 | .06) | | | | 0 | .34 | | | | (0 | .39) | | | | (0 | .39) | | | $ | 9 | .53 | | | | 3 | .66% | | | $ | 1,430,376 | | | | | 1 | .72% | | | | 4 | .24% | | | | 1 | .73% | | | | 39 | .35% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .54 | | | | 0 | .39 | | | | 0 | .02 | | | | 0 | .41 | | | | (0 | .37) | | | | (0 | .37) | | | $ | 9 | .58 | | | | 4 | .40% | | | $ | 1,305,823 | | | | | 1 | .74% | | | | 4 | .15% | | | | 1 | .74% | | | | 36 | .06% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .76 | | | | 0 | .34 | | | | (0 | .22) | | | | 0 | .12 | | | | (0 | .34) | | | | (0 | .34) | | | $ | 9 | .54 | | | | 1 | .18% | | | $ | 696,206 | | | | | 1 | .78% | | | | 3 | .45% | | | | –(d) | | | | | 34 | .08% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .68 | | | | 0 | .36 | | | | 0 | .08 | | | | 0 | .44 | | | | (0 | .36) | | | | (0 | .36) | | | $ | 9 | .76 | | | | 4 | .63% | | | $ | 182,446 | | | | | 1 | .72% | | | | 3 | .48% | | | | –(d) | | | | | 17 | .20% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .53 | | | | 0 | .46 | | | | (0 | .83) | | | | (0 | .37) | | | | (0 | .46) | | | | (0 | .46) | | | $ | 8 | .70 | | | | (4 | .16%) | | | $ | 63,129,602 | | | | | 0 | .82% | | | | 4 | .85% | | | | 0 | .82% | | | | 68 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .59 | | | | 0 | .49 | | | | (0 | .07) | | | | 0 | .42 | | | | (0 | .48) | | | | (0 | .48) | | | $ | 9 | .53 | | | | 4 | .54% | | | $ | 75,009,099 | | | | | 0 | .77% | | | | 5 | .17% | | | | 0 | .77% | | | | 39 | .35% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .55 | | | | 0 | .48 | | | | 0 | .02 | | | | 0 | .50 | | | | (0 | .46) | | | | (0 | .46) | | | $ | 9 | .59 | | | | 5 | .39% | | | $ | 83,878,254 | | | | | 0 | .80% | | | | 5 | .00% | | | | 0 | .80% | | | | 36 | .06% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .77 | | | | 0 | .43 | | | | (0 | .22) | | | | 0 | .21 | | | | (0 | .43) | | | | (0 | .43) | | | $ | 9 | .55 | | | | 2 | .15% | | | $ | 99,133,387 | | | | | 0 | .83% | | | | 4 | .41% | | | | –(d) | | | | | 34 | .08% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .68 | | | | 0 | .45 | | | | 0 | .09 | | | | 0 | .54 | | | | (0 | .45) | | | | (0 | .45) | | | $ | 9 | .77 | | | | 5 | .75% | | | $ | 112,630,941 | | | | | 0 | .78% | | | | 4 | .64% | | | | –(d) | | | | | 17 | .20% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .53 | | | | 0 | .42 | | | | (0 | .83) | | | | (0 | .41) | | | | (0 | .42) | | | | (0 | .42) | | | $ | 8 | .70 | | | | (4 | .60%) | | | $ | 67,400 | | | | | 1 | .31% | | | | 4 | .38% | | | | 1 | .31% | | | | 68 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .59 | | | | 0 | .42 | | | | (0 | .06) | | | | 0 | .36 | | | | (0 | .42) | | | | (0 | .42) | | | $ | 9 | .53 | | | | 3 | .88% | | | $ | 1,440 | | | | | 1 | .44% | | | | 4 | .51% | | | | 1 | .44% | | | | 39 | .35% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .55 | | | | 0 | .42 | | | | 0 | .03 | | | | 0 | .45 | | | | (0 | .41) | | | | (0 | .41) | | | $ | 9 | .59 | | | | 4 | .88% | | | $ | 1,112 | | | | | 1 | .30% | | | | 4 | .53% | | | | 1 | .30% | | | | 36 | .06% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .77 | | | | 0 | .40 | | | | (0 | .22) | | | | 0 | .18 | | | | (0 | .40) | | | | (0 | .40) | | | $ | 9 | .55 | | | | 1 | .81% | | | $ | 1,060 | | | | | 1 | .14% | | | | 4 | .08% | | | | –(d) | | | | | 34 | .08% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .68 | | | | 0 | .39 | | | | 0 | .09 | | | | 0 | .48 | | | | (0 | .39) | | | | (0 | .39) | | | $ | 9 | .77 | | | | 5 | .06% | | | $ | 1,037 | | | | | 1 | .37% | | | | 3 | .99% | | | | –(d) | | | | | 17 | .20% | | |
(a) Excludes sales charge.
(b) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d) There were no fee waivers/reimbursements during the period.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 123
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Distributions | | | of Period | | | Return (a) | | | of Period | | | Net Assets | | | Net Assets | | | Net Assets (b) | | | Turnover (c) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class X Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .52 | | | | 0 | .38 | | | | (0 | .83) | | | | (0 | .45) | | | | (0 | .38) | | | | (0 | .38) | | | $ | 8 | .69 | | | | (4 | .94%) | | | $ | 799,807 | | | | | 1 | .63% | | | | 4 | .02% | | | | 1 | .63% | | | | 68 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .58 | | | | 0 | .42 | | | | (0 | .07) | | | | 0 | .35 | | | | (0 | .41) | | | | (0 | .41) | | | $ | 9 | .52 | | | | 3 | .71% | | | $ | 1,493,237 | | | | | 1 | .57% | | | | 4 | .38% | | | | 1 | .58% | | | | 39 | .35% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .54 | | | | 0 | .40 | | | | 0 | .02 | | | | 0 | .42 | | | | (0 | .38) | | | | (0 | .38) | | | $ | 9 | .58 | | | | 4 | .57% | | | $ | 1,853,579 | | | | | 1 | .61% | | | | 4 | .18% | | | | 1 | .61% | | | | 36 | .06% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .75 | | | | 0 | .35 | | | | (0 | .21) | | | | 0 | .14 | | | | (0 | .35) | | | | (0 | .35) | | | $ | 9 | .54 | | | | 1 | .44% | | | $ | 2,821,337 | | | | | 1 | .63% | | | | 3 | .62% | | | | –(d) | | | | | 34 | .08% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .67 | | | | 0 | .38 | | | | 0 | .08 | | | | 0 | .46 | | | | (0 | .38) | | | | (0 | .38) | | | $ | 9 | .75 | | | | 4 | .82% | | | $ | 3,456,715 | | | | | 1 | .57% | | | | 3 | .85% | | | | –(d) | | | | | 17 | .20% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .53 | | | | 0 | .38 | | | | (0 | .83) | | | | (0 | .45) | | | | (0 | .38) | | | | (0 | .38) | | | $ | 8 | .70 | | | | (4 | .94%) | | | $ | 99,986 | | | | | 1 | .63% | | | | 4 | .02% | | | | 1 | .63% | | | | 68 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .59 | | | | 0 | .42 | | | | (0 | .07) | | | | 0 | .35 | | | | (0 | .41) | | | | (0 | .41) | | | $ | 9 | .53 | | | | 3 | .71% | | | $ | 144,557 | | | | | 1 | .57% | | | | 4 | .37% | | | | 1 | .58% | | | | 39 | .35% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .55 | | | | 0 | .40 | | | | 0 | .02 | | | | 0 | .42 | | | | (0 | .38) | | | | (0 | .38) | | | $ | 9 | .59 | | | | 4 | .56% | | | $ | 150,773 | | | | | 1 | .60% | | | | 4 | .18% | | | | 1 | .60% | | | | 36 | .06% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .76 | | | | 0 | .35 | | | | (0 | .21) | | | | 0 | .14 | | | | (0 | .35) | | | | (0 | .35) | | | $ | 9 | .55 | | | | 1 | .44% | | | $ | 198,713 | | | | | 1 | .63% | | | | 3 | .62% | | | | –(d) | | | | | 34 | .08% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .68 | | | | 0 | .38 | | | | 0 | .08 | | | | 0 | .46 | | | | (0 | .38) | | | | (0 | .38) | | | $ | 9 | .76 | | | | 4 | .81% | | | $ | 238,157 | | | | | 1 | .57% | | | | 3 | .85% | | | | –(d) | | | | | 17 | .20% | | |
| |
| (a) | Excludes sales charge. |
| (b) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (c) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (d) | There were no fee waivers/reimbursements during the period. |
The accompanying notes are an integral part of these financial statements.
124 Annual Report 2008
| |
| Nationwide Enhanced Income Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Enhanced Income Fund (Class A at NAV) registered 2.42% versus 4.46% for its composite benchmark, 50% Merrill Lynch (ML) 6-Month Treasury Bill (T-Bill) Index and 50% ML 1-Year T-Bill Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Ultra-Short Obligations Funds (consisting of 69 funds as of October 31, 2008) was -4.29% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund maintained a high-quality focus. As of October 31, 2008, the Fund comprised 83% AAA-rated securities, with the balance in AA- and A-rated issues. The Fund’s focus on higher quality, more liquid asset classes added to performance relative to the Lipper peer group during the highly volatile reporting period. The Fund’s exposure to U.S. Agency mortgage-backed securities and debentures was positive for relative performance, because these sectors posted better returns than Treasuries due to their lower credit risk as compared to other fixed-income sectors. The Fund stayed fully invested as cash rates declined to historically low levels during the reporting period and an abundance of appealing, short-maturity assets provided attractive return enhancement opportunities.
What areas of investment detracted from Fund performance?
Risk premiums in the non-Treasury sectors increased substantially during the reporting period, driven by heightened concerns about the economic recession and its impact on consumers’ and corporations’ ability to repay their debts. Returns relative to Treasuries were negative across all fixed-income spread sectors during the reporting period, with the weakest returns occurring in the asset-backed, commercial mortgage-backed and corporate bond sectors. The Fund’s exposures to these sectors detracted from relative performance versus the Fund’s all-Treasury composite benchmark.
What is your outlook for the near term?
By all accounts, the global and U.S. economies have both entered into a recession, the magnitude and impact of which is expected to be severe. U.S. economic growth is likely to contract for the remainder of 2008 and into 2009, while inflation concerns have abated after sharp declines in energy and commodities prices as well as expectations that consumer demand and consumer spending will continue to decline.
The deleveraging of banks and other financial institutions, as well as deteriorating credit conditions, are likely to continue to weigh on asset valuations, with the most credit-sensitive sectors remaining under the most pressure.
Short-term U.S. Treasury rates should remain low as efforts to stimulate growth and unfreeze credit markets take center stage. Longer-term rates may remain under pressure on supply concerns, which would maintain the steep shape of the yield curve (a plotted graph line of the yields, or interest rates on long-term and short-term maturity bonds).
Given the uncertainty in the economic outlook and unprecedented liquidity disruptions in the markets, we have positioned the Fund to maintain an overall duration-neutral position versus the composite benchmark and a conservative posture with regard to credit quality and liquidity.
Risk premiums remain at historically wide levels for all non-Treasury fixed-income assets because of a combination of unfavorable supply/demand technicals and the weak economic outlook. While wider risk premiums are generally warranted, the market has been somewhat indiscriminant in pricing securities lower regardless of risk, creating many return enhancement opportunities. We intend to prudently exploit market dislocations while maintaining the Fund’s quality and liquidity.
Subadviser:
Morley Capital Management, Inc.
Portfolio Managers:
Perpetua M. Phillips and Paul Rocheleau
2008 Annual Report 125
| |
| Fund Performance | Nationwide Enhanced Income Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC2 | | | 2.42% | | | | 2.73% | | | | 2.68% | | | | 0.81% | | | | 0.75% | |
| | | w/SC3 | | | -0.21% | | | | 2.27% | | | | 2.41% | | | | | | | | | |
| |
| |
Class R4,5 | | | | | 2.18% | | | | 2.57% | | | | 2.60% | | | | 1.21% | | | | 1.15% | |
| |
| |
Institutional Service Class4 | | | | | 2.67% | | | | 2.86% | | | | 2.82% | | | | 0.72% | | | | 0.66% | |
| |
| |
Institutional Class4 | | | | | 2.74% | | | | 3.05% | | | | 3.03% | | | | 0.51% | | | | 0.45% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on December 29, 1999. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 2.25% front-end sales charge was deducted. |
| |
| 4 | | Not subject to any sales charges. |
| |
| 5 | | These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class A shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because Class R shares invest in the same portfolio of securities as Class A shares. The performance for these classes has been restated to reflect the fact that Class R shares do not have any applicable sales charges, but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to Class R shares; if these fees were reflected, the performance for Class R shares would have been lower. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Enhanced Income Fund, Composite Index(a), the Merrill Lynch 6-Month Treasury Bill Index (b), the Merrill Lynch 1-Year Treasury Bill Index(c), and the Consumer Price Index (CPI)(d) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Composite Index is composed of 50% Merrill Lynch (ML) 6-Month Treasury Bill (T-Bill) Index and 50% Merrill Lynch 1-Year Treasury Bill Index. |
| | |
| (b) | | The Merrill Lynch 6-Month Treasury Bill Index comprises a single issue purchased at the beginning of a month and held for a full month. At the end of that month, that issue is sold and rolled into a newly selected issue. The issue selected at each month-end re-balancing is the outstanding T-Bill that matures closest to, but not beyond, six months from the re-balancing date. |
| | |
| (c) | | The Merrill Lynch 1-Year Treasury Bill Index comprises a single issue purchased at the beginning of a month and held for a full month. At the end of that month, that issue is sold and rolled into a newly selected issue. The issue selected at each month-end re-balancing is the outstanding T-Bill with the longest maturity. |
| | |
| (d) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
126 Annual Report 2008
| |
| Shareholder | Nationwide Enhanced Income Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Enhanced Income Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 996.77 | | | | 3.23 | | | | 0.64 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.91 | | | | 3.27 | | | | 0.64 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 994.71 | | | | 4.86 | | | | 0.97 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.28 | | | | 4.92 | | | | 0.97 | |
| |
| |
| Institutional Service Class | | | Actual | | | | 1,000.00 | | | | 998.10 | | | | 2.60 | | | | 0.52 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.54 | | | | 2.63 | | | | 0.52 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 999.04 | | | | 2.13 | | | | 0.42 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.01 | | | | 2.15 | | | | 0.42 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 127
| |
| Portfolio Summary | Nationwide Enhanced Income Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Asset-Backed Securities | | | 34.2% | |
| Corporate Bonds | | | 21.7% | |
| U.S. Government Sponsored & Agency Obligations | | | 17.4% | |
| Commercial Mortgage Backed Securities | | | 11.1% | |
| Collateralized Mortgage Obligations | | | 8.5% | |
| Repurchase Agreement | | | 5.3% | |
| Yankee Dollars | | | 0.6% | |
| U.S. Government Sponsored Mortgage-Backed Obligations | | | 0.5% | |
| Other assets in excess of liabilities | | | 0.7% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Auto Loans | | | 12.0% | |
| Credit Card Loans | | | 9.9% | |
| Utility Loans | | | 6.9% | |
| Equipment Loans | | | 4.5% | |
| Other Financial | | | 4.4% | |
| Banks | | | 3.9% | |
| Manufacturing | | | 3.5% | |
| Mortgage-Backed | | | 2.5% | |
| Diversified Manufacturing | | | 1.5% | |
| Beverages | | | 1.5% | |
| Other | | | 49.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| U.S. Treasury Notes, 4.00%, 09/30/09 | | | 4.8% | |
| U.S. Treasury Notes, 3.25%, 12/31/09 | | | 3.6% | |
| U.S. Treasury Notes, 2.13%, 01/31/10 | | | 2.9% | |
| U.S. Treasury Notes, 2.00%, 02/28/10 | | | 2.3% | |
CPL Transition Funding LLC, Series 2002-1, Class A3, 5.56%, 01/15/12 | | | 1.9% | |
| Honeywell International, Inc., 7.50%, 03/01/10 | | | 1.5% | |
| Pepsi Bottling Holdings, Inc., 5.63%, 02/17/09 | | | 1.5% | |
| Johnson & Johnson, 6.63%, 09/01/09 | | | 1.4% | |
Citibank Credit Card Master Trust I, Series 1999-2, Class A, 5.88%, 03/10/11 | | | 1.4% | |
Bank One Issuance Trust, Series 2004-A1, Class A1, 3.45%, 10/17/11 | | | 1.4% | |
| Other | | | 77.3% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of top holdings, the repurchase agreement is included as part of Other. |
128 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Enhanced Income Fund
| | | | | | | | | |
| | | | | | | | | |
| Asset-Backed Securities 34.2% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Auto Loans 12.0% |
Banc of America Securities Auto Trust, 5.18%, Series 2006-G1, Class A3, 06/18/10 | | $ | 1,347,768 | | | $ | 1,341,855 | |
BMW Vehicle Owner Trust, 5.07%, Series 2006-A, Class A4, 08/25/11 | | | 2,000,000 | | | | 1,957,563 | |
| Capital Auto Receivables Asset Trust | | | | | | | | |
3.75%, Series 2004-2, Class A4, 07/15/09 | | | 353,272 | | | | 352,844 | |
4.98%, Series 2006-2, Class A3A, 05/15/11 | | | 1,708,336 | | | | 1,677,742 | |
| Daimler Chrysler Auto Trust | | | | | | | | |
4.98%, Series 2006-D, Class A3, 02/08/11 | | | 1,467,708 | | | | 1,448,206 | |
5.01%, Series 2007-A, Class A2A, 03/08/11 | | | 732,554 | | | | 720,903 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
5.05%, Series 2006-A, Class A3, 03/15/10 | | | 408,081 | | | | 406,833 | |
5.26%, Series 2007-B, Class A2A, 06/15/10 | | | 944,102 | | | | 939,752 | |
| Honda Auto Receivables Owner Trust | | | | | | | | |
5.41%, Series 2007-2, Class A2, 11/23/09 | | | 369,727 | | | | 370,026 | |
4.60%, Series 2005-4, Class A4, 11/22/10 | | | 1,122,621 | | | | 1,116,274 | |
4.03%, Series 2005-3, Class A4, 12/20/10 | | | 1,377,474 | | | | 1,377,122 | |
Household Automotive Trust, 4.80%, Series 2005-3, Class A3, 10/18/10 | | | 642,383 | | | | 636,871 | |
| USAA Auto Owner Trust | | | | | | | | |
4.27%, Series 2008-1, Class A2, 10/15/10 | | | 1,620,990 | | | | 1,617,029 | |
3.91%, Series 2008-2, Class A2, 01/18/11 | | | 2,000,000 | | | | 1,984,858 | |
Volkswagen Auto Loan Enhanced Trust, 4.86%, Series 2005-1, Class A4, 04/20/12 | | | 1,171,645 | | | | 1,167,682 | |
Wachovia Auto Owner Trust, 5.35%, Series 2006-A, Class A3, 02/22/11 | | | 447,344 | | | | 446,329 | |
WFS Financial Owner Trust, 4.39%, Series 2005-2, Class A4, 11/19/12 | | | 591,874 | | | | 589,361 | |
| World Omni Auto Receivables Trust | | | | | | | | |
5.46%, Series 2007-B, Class A2A, 02/16/10 | | | 443,373 | | | | 443,669 | |
4.13%, Series 2008-B, Class A2, 03/15/11 | | | 2,000,000 | | | | 1,937,550 | |
| | | | | | | | | |
| | | | | | | | 20,532,469 | |
| | | | | | | | | |
| |
| |
Credit Card Loans 9.9% |
American Express Credit Account Master Trust, 4.35%, Series 2004-3, Class A, 12/15/11 | | | 2,000,000 | | | | 1,973,939 | |
Bank of America Credit Card Trust, 4.07%, Series 2008-A9, Class A9, 07/16/12 | | | 2,000,000 | | | | 1,925,071 | |
| Bank One Issuance Trust | | | | | | | | |
3.45%, Series 2004-A1, Class A1, 10/17/11 | | | 2,500,000 | | | | 2,475,132 | |
3.94%, Series 2004-A6, Class A6, 04/16/12(a) | | | 1,500,000 | | | | 1,466,459 | |
Citibank Credit Card Issuance Trust, 4.85%, Series 2006-A2, Class A2, 02/10/11 | | | 2,000,000 | | | | 1,988,024 | |
Citibank Credit Card Master Trust I, 5.88%, Series 1999-2, Class A, 03/10/11 | | | 2,500,000 | | | | 2,490,043 | |
MBNA Credit Card Master Note Trust, 4.90%, Series 2006-A1, Class A1, 07/15/11 | | | 2,000,000 | | | | 1,988,374 | |
MBNA Master Credit Card Trust, 5.90%, Series 1999-B, Class A, 08/15/11 | | | 2,000,000 | | | | 1,980,347 | |
MBNA Practice Solutions Owner Trust, 4.34%, Series 2005-2, Class A3, 06/15/11 | | | 636,206 | | | | 635,241 | |
| | | | | | | | | |
| | | | | | | | 16,922,630 | |
| | | | | | | | | |
| |
| |
Equipment Loans 4.5% |
| Caterpillar Financial Asset Trust | | | | | | | | |
5.40%, Series 2007-A, Class A2A, 04/26/10 | | | 359,599 | | | | 359,821 | |
4.09%, Series 2008-A, Class A2A, 12/27/10 | | | 1,500,000 | | | | 1,486,961 | |
| CIT Equipment Collateral | | | | | | | | |
5.13%, Series 2006-VT1, Class A3, 02/20/09 | | | 278,242 | | | | 278,244 | |
5.16%, Series 2006-VT1, Class A4, 03/20/09 | | | 2,000,000 | | | | 1,975,737 | |
GE Equipment Midticket LLC, 4.58%, Series 2007-1 , Class A2A, 05/14/10 | | | 1,708,432 | | | | 1,705,014 | |
John Deere Owner Trust, 3.63%, Series 2008-A Class A2, 03/15/11 | | | 2,000,000 | | | | 1,981,597 | |
| | | | | | | | | |
| | | | | | | | 7,787,374 | |
| | | | | | | | | |
| |
| |
Home Equity Loans 0.9% |
| Chase Funding Mortgage Loan Asset-Backed Certificates | | | | | | | | |
3.34%, Series 2003-6, Class 1A3, 05/25/26 | | | 56,510 | | | | 56,306 | |
3.30%, Series 2003-3, Class 1A4, 11/25/29 | | | 178,915 | | | | 178,038 | |
Citicorp Residential Mortgage Securities, Inc., 5.96%, Series 2006-1, Class A1, 07/25/36 | | | 207,876 | | | | 208,286 | |
2008 Annual Report 129
Statement of Investments (Continued)
October 31, 2008
Nationwide Enhanced Income Fund (Continued)
| | | | | | | | | |
Asset-Backed Securities (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Home Equity Loans (continued) |
| | | | | | | | | |
Countrywide Asset-Backed Certificates, 4.37%, Series 2005-7, Class AF2, 11/25/35 | | $ | 242,581 | | | $ | 241,652 | |
FHLMC Structured Pass Through Securities, 5.05%, Series T-50, Class A7, 10/27/31(a) | | | 897,000 | | | | 829,097 | |
| | | | | | | | | |
| | | | | | | | 1,513,379 | |
| | | | | | | | | |
| |
| |
Utility Loans 6.9% |
CenterPoint Energy Transition Bond Co. LLC, 5.16%, Series 2001-1, Class A3, 09/15/11 | | | 1,220,023 | | | | 1,222,747 | |
CPL Transition Funding LLC, 5.56%, Series 2002-1, Class A3, 01/15/12 | | | 3,208,636 | | | | 3,276,566 | |
FPL Recovery Funding LLC, 5.05%, Series 2007-A, Class A1, 02/01/13 | | | 1,677,786 | | | | 1,679,649 | |
Oncor Electric Delivery Transition Bond Co., 4.03%, Series 2003-1, Class A2, 02/15/12 | | | 1,174,850 | | | | 1,169,665 | |
Peco Energy Transition Trust, 6.52%, Series 2001-A, Class A1, 12/31/10 | | | 1,300,000 | | | | 1,321,589 | |
PG&E Energy Recovery Funding LLC, 3.87%, Series 2005-1, Class A2, 06/25/11 | | | 1,112,670 | | | | 1,110,886 | |
PP&L Transition Bond Co LLC, 7.15%, Series 1999-1, Class A8, 06/25/09 | | | 400,626 | | | | 402,466 | |
Public Service New Hampshire Funding LLC, 5.73%, Series 2001-1, Class A2, 11/01/10 | | | 271,503 | | | | 271,473 | |
TXU Electric Delivery Transition Bond Co. LLC, 3.52%, Series 2004-1, Class A1, 11/15/11 | | | 1,353,285 | | | | 1,344,597 | |
| | | | | | | | | |
| | | | | | | | 11,799,638 | |
| | | | | | | | | |
| | | | | |
Total Asset-Backed Securities | | | 58,555,490 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Collateralized Mortgage Obligations 8.5% |
| | | | | | | | | |
| Fannie Mae REMICS | | | | | | | | |
3.50%, Series 2004-34, Class PL, 05/25/14 | | | 269,635 | | | | 269,428 | |
4.50%, Series 2005-91, Class PB, 06/25/16 | | | 2,013,085 | | | | 2,019,739 | |
5.00%, Series 2004-61, Class AB, 03/25/17 | | | 1,919,309 | | | | 1,935,053 | |
3.00%, Series 2003-57, Class NB, 06/25/18 | | | 340,201 | | | | 322,435 | |
3.25%, Series 2003-75, Class NB, 08/25/18 | | | 274,182 | | | | 269,136 | |
4.50%, Series 2004-96, Class EW, 06/25/24 | | | 1,938,503 | | | | 1,940,757 | |
3.50%, Series 2003-14, Class AN, 03/25/33 | | | 274,057 | | | | 250,633 | |
| Freddie Mac REMICS | | | | | | | | |
| 5.50%, Series 2651, Class VB, 03/15/14 | | | 1,602,331 | | | | 1,619,366 | |
| 3.50%, Series 2611, Class KC, 01/15/17 | | | 367,321 | | | | 363,055 | |
| 4.50%, Series 2664, Class GA, 01/15/18 | | | 415,487 | | | | 413,819 | |
| 3.25%, Series 2613, Class PA, 05/15/18 | | | 457,758 | | | | 438,296 | |
| 3.00%, Series 2630, Class JA, 06/15/18 | | | 362,571 | | | | 356,552 | |
| Government National Mortgage Association | | | | | | | | |
2.21%, Series 2003-49, Class A, 10/16/17 | | | 2,222,581 | | | | 2,197,782 | |
3.88%, Series 2004-103, Class A, 12/16/19 | | | 1,799,444 | | | | 1,790,714 | |
Residential Funding Mortgage Securities I, 2.50%, Series 2003-S11, Class A1, 06/25/18 | | | 319,825 | | | | 313,185 | |
| | | | | | | | | |
| | | | | |
Total Collateralized Mortgage Obligations | | | 14,499,950 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Commercial Mortgage Backed Securities 11.1% |
| | | | | | | | | |
Asset Securitization Corp., 7.40%, Series 1996-D3, Class A1C, 10/13/26 | | | 189,827 | | | | 189,689 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
6.08%, Series 2001-TOP2, Class A1, 02/15/35 | | | 147,343 | | | | 145,269 | |
4.17%, Series 2004-T14, Class A2, 01/12/41(a) | | | 2,177,702 | | | | 2,161,196 | |
Citigroup Commercial Mortgage Trust, 3.79%, Series 2004-C2, Class A1, 10/15/41 | | | 303,344 | | | | 301,396 | |
Commercial Mortgage Asset Trust, 6.64%, Series 1999-1, Class G, 01/17/32 | | | 1,175,284 | | | | 1,170,288 | |
| GMAC Commercial Mortgage Securities, Inc. | | | | | | | | |
4.22%, Series 2003-C3, Class A2, 04/10/40 | | | 1,231,399 | | | | 1,185,368 | |
4.21%, Series 2004-C3, Class A3, 12/10/41(a) | | | 2,000,000 | | | | 1,934,294 | |
Greenwich Capital Commercial Funding Corp., 4.34%, Series 04-GG1, Class A3, 06/10/36 | | | 1,363,219 | | | | 1,349,043 | |
130 Annual Report 2008
| | | | | | | | | |
Commercial Mortgage Backed Securities (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| JPMorgan Chase Commercial Mortgage Securities Corp. | | | | | | | | |
2.80%, Series 2004-PNC1, Class A1, 06/12/41 | | $ | 194,994 | | | $ | 194,147 | |
5.34%, Series 2006-CB16, Class A1, 05/12/45 | | | 1,446,562 | | | | 1,368,380 | |
LB-UBS Commercial Mortgage Trust, 4.90%, Series 2002-C2, Class A2, 06/15/26(a) | | | 139,168 | | | | 138,247 | |
| Morgan Stanley Capital I | | | | | | | | |
4.50%, Series 2004-IQ8, Class A3, 11/15/11 | | | 2,000,000 | | | | 1,931,465 | |
4.81%, Series 2005-HQ5, Class A2, 01/14/42 | | | 1,814,990 | | | | 1,739,972 | |
3.99%, Series 2005-IQ9, Class A1, 07/15/56 | | | 1,334,488 | | | | 1,304,150 | |
Nomura Asset Securities Corp., 6.59%, Series 1998-D6, Class A1B, 03/15/30 | | | 155,825 | | | | 155,589 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
4.38%, Series 2005-C16, Class A2, 10/15/41 | | | 2,182,023 | | | | 2,099,382 | |
4.78%, Series 2005-C17, Class A2, 03/15/42 | | | 1,828,035 | | | | 1,755,711 | |
| | | | | | | | | |
| | | | | |
Total Commercial Mortgage Backed Securities | | | 19,123,586 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Corporate Bonds 21.7% |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 0.9% |
| United Technologies Corp., 4.38%, 05/01/10 | | | 1,500,000 | | | | 1,481,748 | |
| | | | | | | | | |
| | | | | | | | 1,481,748 | |
| | | | | | | | | |
| |
| |
Banks 3.3% |
| HSBC Bank USA NA, 3.88%, 09/15/09 | | | 2,000,000 | | | | 1,958,544 | |
| Kreditanstalt fuer Wiederaufbau, 5.00%, 06/01/10 | | | 1,695,000 | | | | 1,762,488 | |
| Wells Fargo & Co., 4.20%, 01/15/10 | | | 2,000,000 | | | | 1,970,432 | |
| | | | | | | | | |
| | | | | | | | 5,691,464 | |
| | | | | | | | | |
| |
| |
Beverages 1.5% |
| Pepsi Bottling Holdings, Inc., 5.63%, 02/17/09 | | | 2,500,000 | | | | 2,514,980 | |
| | | | | | | | | |
| | | | | | | | 2,514,980 | |
| | | | | | | | | |
| |
| |
Diversified Manufacturing 1.5% |
| Honeywell International, Inc., 7.50%, 03/01/10 | | | 2,500,000 | | | | 2,578,025 | |
| | | | | | | | | |
| | | | | | | | 2,578,025 | |
| | | | | | | | | |
Health Care Equipment & Supplies 1.5% |
| Johnson & Johnson, 6.63%, 09/01/09 | | | 2,428,000 | | | | 2,495,406 | |
| | | | | | | | | |
| | | | | | | | 2,495,406 | |
| | | | | | | | | |
| |
| |
Insurance 1.4% |
| Genworth Financial, Inc., 5.23%, 05/16/09 | | | 3,000,000 | | | | 2,430,162 | |
| | | | | | | | | |
| | | | | | | | 2,430,162 | |
| | | | | | | | | |
| |
| |
Machinery 1.2% |
| Caterpillar, Inc., 7.25%, 09/15/09 | | | 2,000,000 | | | | 2,026,418 | |
| | | | | | | | | |
| | | | | | | | 2,026,418 | |
| | | | | | | | | |
| |
| |
Manufacturing 3.5% |
| 3M Co., 5.13%, 11/06/09 | | | 2,000,000 | | | | 2,044,922 | |
| IBM Corp., 4.25%, 09/15/09 | | | 2,000,000 | | | | 2,016,528 | |
| John Deere Capital Corp., 5.40%, 04/07/10 | | | 2,000,000 | | | | 2,001,930 | |
| | | | | | | | | |
| | | | | | | | 6,063,380 | |
| | | | | | | | | |
| |
| |
Other Financial 4.4% |
| Associates Corp. of North America, 6.25%, 11/01/08 | | | 2,000,000 | | | | 2,000,000 | |
| Berkshire Hathaway Finance Corp., 4.13%, 01/15/10 | | | 2,000,000 | | | | 2,005,434 | |
| Monumental Global Funding II, 3.90%, 06/15/09 | | | 2,100,000 | | | | 2,059,949 | |
| Toyota Motor Credit Corp., 4.25%, 03/15/10 | | | 1,500,000 | | | | 1,490,339 | |
| | | | | | | | | |
| | | | | | | | 7,555,722 | |
| | | | | | | | | |
| |
| |
Specialty Retail 1.2% |
| Wal-Mart Stores, Inc., 6.88%, 08/10/09 | | | 2,000,000 | | | | 2,061,968 | |
| | | | | | | | | |
| | | | | | | | 2,061,968 | |
| | | | | | | | | |
| |
| |
Telecommunications 1.3% |
| BellSouth Corp., 4.20%, 09/15/09 | | | 2,300,000 | | | | 2,274,999 | |
| | | | | | | | | |
| | | | | | | | 2,274,999 | |
| | | | | | | | | |
| | | | | |
Total Corporate Bonds | | | 37,174,272 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Yankee Dollar 0.6% |
| | | | | | | | | |
| | | | | | | | | |
Banks 0.6% |
Inter-American Development Bank, 8.40%, 09/01/09 | | | 1,029,000 | | | | 1,067,364 | |
| | | | | | | | | |
| | | | | |
Total Yankee Dollar | | | 1,067,364 | |
| | | | | |
| | | | | | | | | |
2008 Annual Report 131
Statement of Investments (Continued)
October 31, 2008
Nationwide Enhanced Income Fund (Continued)
| | | | | | | | | |
| U.S. Government Sponsored & Agency Obligations 17.4% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
U.S. Government Sponsored & Agency Obligations 17.4% |
| Federal Home Loan Bank, 5.38%, 07/17/09 | | $ | 2,000,000 | | | $ | 2,036,052 | |
| Federal Home Loan Mortgage Corp., 4.88%, 02/09/10 | | | 2,000,000 | | | | 2,044,570 | |
| Federal National Mortgage Association, 4.63%, 12/15/09 | | | 2,300,000 | | | | 2,337,506 | |
| U.S. Treasury Notes | | | | | | | | |
| 4.00%, 09/30/09 | | | 8,000,000 | | | | 8,185,000 | |
| 3.25%, 12/31/09 | | | 6,000,000 | | | | 6,120,000 | |
| 2.13%, 01/31/10 | | | 5,000,000 | | | | 5,039,845 | |
| 2.00%, 02/28/10 | | | 4,000,000 | | | | 4,026,248 | |
| | | | | | | | | |
| | | | | |
Total U.S. Government Sponsored & Agency Obligations | | | 29,789,221 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Sponsored Mortgage-Backed Obligations 0.5% |
| | | | | | | | | |
| | | | | | | | | |
U.S. Government Sponsored Mortgage-Backed Obligations 0.5% |
| Fannie Mae Pool | | | | | | | | |
| 6.50%, Pool #190255, 02/01/09 | | | 1,569 | | | | 1,575 | |
| 5.50%, Pool #254256, 04/01/09 | | | 12,629 | | | | 12,689 | |
| 6.00%, Pool # 253845, 06/01/16 | | | 79,909 | | | | 80,852 | |
| 6.00%, Pool #254089, 12/01/16 | | | 122,180 | | | | 123,622 | |
| 6.00%, Pool #545415, 01/01/17 | | | 108,414 | | | | 109,694 | |
| 5.50%, Pool #254195, 02/01/17 | | | 261,826 | | | | 263,197 | |
| 5.50%, Pool #625178, 02/01/17 | | | 228,265 | | | | 229,460 | |
| Freddie Mac Gold Pool | | | | | | | | |
| 6.50%, Pool #E00678, 06/01/14 | | | 47,585 | | | | 49,148 | |
| 6.00%, Pool #E00991, 07/01/16 | | | 63,416 | | | | 64,236 | |
| | | | | | | | | |
| | | | | |
Total U.S. Government Sponsored Mortgage-Backed Obligations | | | 934,473 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 5.3% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $9,156,321, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $9,339,385 | | | 9,156,259 | | | | 9,156,260 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $172,212,758) (b) — 99.3% | | | 170,300,616 | |
Other assets in excess of liabilities — 0.7% | | | | | | | 1,118,330 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 171,418,946 | |
| | | | | |
| | |
| (a) | | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on October 31, 2008. The maturity date represents the actual maturity date. |
| |
| (b) | | See notes to statements of investments for tax unrealized appreciation / (depreciation) of securities. |
| | |
| FHLMC | | Federal Home Loan Mortgage Corporation |
| |
| REMICS | | Real Estate Mortgage Investment Conduit |
The accompanying notes are an integral part of these financial statements.
132 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | Enhanced Income Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $163,056,498) | | | $ | 161,144,356 | |
| Repurchase agreements, at value and cost | | | | 9,156,260 | |
| | | | | | |
| Total Investments | | | | 170,300,616 | |
| | | | | | |
| Interest receivable | | | | 1,162,086 | |
| Receivable for capital shares issued | | | | 17,158 | |
| Prepaid expenses and other assets | | | | 22,045 | |
| | | | | | |
| Total Assets | | | | 171,501,905 | |
| | | | | | |
Liabilities: | | | | | |
| Distributions payable | | | | 978 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 50,244 | |
| Fund administration fees | | | | 17,212 | |
| Distribution fees | | | | 436 | |
| Trustee fees | | | | 378 | |
| Compliance program costs (Note 3) | | | | 592 | |
| Custodian fees | | | | 690 | |
| Other | | | | 12,429 | |
| | | | | | |
| Total Liabilities | | | | 82,959 | |
| | | | | | |
Net Assets | | | $ | 171,418,946 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 179,366,310 | |
| Accumulated undistributed net investment income | | | | 79,226 | |
| Accumulated net realized losses from investment transactions | | | | (6,114,448 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (1,912,142 | ) |
| | | | | | |
Net Assets | | | $ | 171,418,946 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 2,157,832 | |
| Class R Shares | | | | 1,133 | |
| Institutional Service Class Shares | | | | 12,790 | |
| Institutional Class Shares | | | | 169,247,191 | |
| | | | | | |
| Total | | | $ | 171,418,946 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 238,185 | |
| Class R Shares | | | | 125 | |
| Institutional Service Class Shares | | | | 1,410 | |
| Institutional Class Shares | | | | 18,683,993 | |
| | | | | | |
| Total | | | | 18,923,713 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 9.06 | |
| Class R Shares | | | $ | 9.07 | (a) |
| Institutional Service Class Shares | | | $ | 9.07 | |
| Institutional Class Shares | | | $ | 9.06 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 9.27 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 2.25 | % |
| | | | | | |
| | |
| (a) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 133
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Enhanced Income
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 7,073,161 | |
| | | | | | |
| Total Income | | | | 7,073,161 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 555,900 | |
| Fund administration fees | | | | 146,103 | |
| Distribution fees Class A | | | | 4,052 | |
| Distribution fees Class R | | | | 7 | |
| Administrative servicing fees Class A | | | | 725 | |
| Administrative servicing fees Class R | | | | 1 | |
| Administrative servicing fees Institutional Service Class | | | | 6 | |
| Registration and filing fees | | | | 27,203 | |
| Professional fees | | | | 20,107 | |
| Printing fees | | | | 9,399 | |
| Trustee fees | | | | 7,480 | |
| Custodian fees | | | | 5,917 | |
| Other | | | | 30,693 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 807,593 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (5,917 | ) |
| Expenses reimbursed by Advisor | | | | (115,330 | ) |
| Administrator fees voluntarily waived | | | | (90 | ) |
| | | | | | |
| Net Expenses | | | | 686,256 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 6,386,905 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (439,881 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,996,157 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (2,436,038 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | 3,950,867 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
134 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Enhanced Income Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 6,386,905 | | | | $ | 12,244,989 | |
| Net realized losses from investment transactions | | | | (439,881 | ) | | | | (420,747 | )(a) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,996,157 | ) | | | | 1,468,205 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | 3,950,867 | | | | | 13,292,447 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (59,456 | ) | | | | (63,014 | ) |
| Class R | | | | (40 | ) | | | | (41 | ) |
| Institutional Service Class | | | | (519 | ) | | | | (1,886 | ) |
| Institutional Class | | | | (6,300,502 | ) | | | | (11,861,386 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (6,360,517 | ) | | | | (11,926,327 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 9,037,417 | | | | | (275,209,462 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | 6,627,767 | | | | | (273,843,342 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 164,791,179 | | | | | 438,634,521 | |
| | | | | | | | | | | |
| End of period | | | $ | 171,418,946 | | | | $ | 164,791,179 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 79,226 | | | | $ | 139,059 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 2,564,800 | | | | $ | 993,170 | |
| Dividends reinvested | | | | 37,974 | | | | | 43,606 | |
| Cost of shares redeemed | | | | (1,800,035 | ) | | | | (1,224,623 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 802,739 | | | | | (187,847 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 75 | |
| Dividends reinvested | | | | 40 | | | | | 41 | |
| Cost of shares redeemed | | | | – | | | | | (75 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 40 | | | | | 41 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 75,000 | |
| Dividends reinvested | | | | 519 | | | | | 1,412 | |
| Cost of shares redeemed | | | | (987 | ) | | | | (75,000 | ) |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | (468 | ) | | | | 1,412 | |
| | | | | | | | | | | |
| |
| (a) | Includes realized gain as a result of a Redemption In Kind (Note 9).
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 135
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Enhanced Income Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 34,628,229 | | | | $ | 3,600,000 | |
| Dividends reinvested | | | | 6,300,466 | | | | | 11,861,386 | |
| Redemptions In-Kind | | | | – | | | | | (197,215,094 | ) |
| Cost of shares redeemed | | | | (32,693,589 | ) | | | | (93,269,360 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 8,235,106 | | | | | (275,023,068 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 9,037,417 | | | | $ | (275,209,462 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 279,027 | | | | | 108,502 | |
| Reinvested | | | | 4,136 | | | | | 4,765 | |
| Redeemed | | | | (196,369 | ) | | | | (133,736 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 86,794 | | | | | (20,469 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 9 | |
| Reinvested | | | | 4 | | | | | 5 | |
| Redeemed | | | | (2 | ) | | | | (8 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 2 | | | | | 6 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 8,188 | |
| Reinvested | | | | 57 | | | | | 154 | |
| Redeemed | | | | (107 | ) | | | | (8,182 | ) |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | (50 | ) | | | | 160 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 3,766,128 | | | | | 393,443 | |
| Reinvested | | | | 685,218 | | | | | 1,296,543 | |
| Redemptions In-Kind | | | | – | | | | | (21,553,562 | ) |
| Redeemed | | | | (3,556,760 | ) | | | | (10,204,589 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 894,586 | | | | | (30,068,165 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | 981,332 | | | | | (30,088,468 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
136 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Enhanced Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Distributions | | | of Period | | | Return (a) | | | of Period | | | Net Assets | | | Net Assets | | | Net Assets (b) | | | Turnover (c) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .18 | | | | 0 | .34 | | | | (0 | .12) | | | | 0 | .22 | | | | (0 | .34) | | | | (0 | .34) | | | $ | 9 | .06 | | | | 2 | .42% | | | $ | 2,157,832 | | | | | 0 | .72% | | | | 3 | .70% | | | | 0 | .80% | | | | 84 | .97% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .13 | | | | 0 | .40 | | | | 0 | .03 | | | | 0 | .43 | | | | (0 | .38) | | | | (0 | .38) | | | $ | 9 | .18 | | | | 4 | .75% | | | $ | 1,390,488 | | | | | 0 | .75% | | | | 4 | .28% | | | | 0 | .81% | | | | 55 | .72% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .08 | | | | 0 | .32 | | | | 0 | .05 | | | | 0 | .37 | | | | (0 | .32) | | | | (0 | .32) | | | $ | 9 | .13 | | | | 4 | .15% | | | $ | 1,569,685 | | | | | 0 | .72% | | | | 3 | .51% | | | | 0 | .76% | | | | 77 | .44% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .16 | | | | 0 | .22 | | | | (0 | .07) | | | | 0 | .15 | | | | (0 | .23) | | | | (0 | .23) | | | $ | 9 | .08 | | | | 1 | .66% | | | $ | 1,241,849 | | | | | 0 | .80% | | | | 2 | .36% | | | | 0 | .85% | | | | 60 | .80% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .26 | | | | 0 | .16 | | | | (0 | .09) | | | | 0 | .07 | | | | (0 | .17) | | | | (0 | .17) | | | $ | 9 | .16 | | | | 0 | .73% | | | $ | 1,575,174 | | | | | 0 | .80% | | | | 1 | .74% | | | | 0 | .85% | | | | 51 | .59% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .19 | | | | 0 | .32 | | | | (0 | .12) | | | | 0 | .20 | | | | (0 | .32) | | | | (0 | .32) | | | $ | 9 | .07 | | | | 2 | .18% | | | $ | 1,133 | | | | | 0 | .99% | | | | 3 | .50% | | | | 1 | .04% | | | | 84 | .97% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .14 | | | | 0 | .37 | | | | 0 | .03 | | | | 0 | .40 | | | | (0 | .35) | | | | (0 | .35) | | | $ | 9 | .19 | | | | 4 | .44% | | | $ | 1,110 | | | | | 0 | .99% | | | | 3 | .99% | | | | 1 | .00% | | | | 55 | .72% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .09 | | | | 0 | .32 | | | | 0 | .05 | | | | 0 | .37 | | | | (0 | .32) | | | | (0 | .32) | | | $ | 9 | .14 | | | | 4 | .12% | | | $ | 1,062 | | | | | 0 | .74% | | | | 3 | .50% | | | | 0 | .74% | | | | 77 | .44% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .17 | | | | 0 | .22 | | | | (0 | .07) | | | | 0 | .15 | | | | (0 | .23) | | | | (0 | .23) | | | $ | 9 | .09 | | | | 1 | .70% | | | $ | 1,021 | | | | | 0 | .72% | | | | 2 | .42% | | | | 0 | .72% | | | | 60 | .80% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .27 | | | | 0 | .13 | | | | (0 | .09) | | | | 0 | .04 | | | | (0 | .14) | | | | (0 | .14) | | | $ | 9 | .17 | | | | 0 | .48% | | | $ | 1,002 | | | | | 1 | .00% | | | | 1 | .49% | | | | 1 | .00% | | | | 51 | .59% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .19 | | | | 0 | .36 | | | | (0 | .12) | | | | 0 | .24 | | | | (0 | .36) | | | | (0 | .36) | | | $ | 9 | .07 | | | | 2 | .67% | | | $ | 12,790 | | | | | 0 | .49% | | | | 3 | .98% | | | | 0 | .55% | | | | 84 | .97% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .14 | | | | 0 | .47 | | | | (0 | .03) | | | | 0 | .44 | | | | (0 | .39) | | | | (0 | .39) | | | $ | 9 | .19 | | | | 4 | .91% | | | $ | 13,429 | | | | | 0 | .66% | | | | 6 | .16% | | | | 0 | .74% | | | | 55 | .72% | | |
| Year Ended October 31, 2006 (d) | | | $ | 9 | .09 | | | | 0 | .32 | | | | 0 | .05 | | | | 0 | .37 | | | | (0 | .32) | | | | (0 | .32) | | | $ | 9 | .14 | | | | 4 | .17% | | | $ | 11,872 | | | | | 0 | .70% | | | | 3 | .47% | | | | 0 | .73% | | | | 77 | .44% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .17 | | | | 0 | .23 | | | | (0 | .07) | | | | 0 | .16 | | | | (0 | .24) | | | | (0 | .24) | | | $ | 9 | .09 | | | | 1 | .77% | | | $ | 5,660,518 | | | | | 0 | .70% | | | | 2 | .47% | | | | 0 | .75% | | | | 60 | .80% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .27 | | | | 0 | .17 | | | | (0 | .09) | | | | 0 | .08 | | | | (0 | .18) | | | | (0 | .18) | | | $ | 9 | .17 | | | | 0 | .82% | | | $ | 7,475,885 | | | | | 0 | .70% | | | | 1 | .84% | | | | 0 | .75% | | | | 51 | .59% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .18 | | | | 0 | .37 | | | | (0 | .12) | | | | 0 | .25 | | | | (0 | .37) | | | | (0 | .37) | | | $ | 9 | .06 | | | | 2 | .74% | | | $ | 169,247,191 | | | | | 0 | .43% | | | | 4 | .03% | | | | 0 | .50% | | | | 84 | .97% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .13 | | | | 0 | .42 | | | | 0 | .03 | | | | 0 | .45 | | | | (0 | .40) | | | | (0 | .40) | | | $ | 9 | .18 | | | | 5 | .04% | | | $ | 163,386,152 | | | | | 0 | .45% | | | | 4 | .49% | | | | 0 | .49% | | | | 55 | .72% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .09 | | | | 0 | .34 | | | | 0 | .04 | | | | 0 | .38 | | | | (0 | .34) | | | | (0 | .34) | | | $ | 9 | .13 | | | | 4 | .31% | | | $ | 437,051,902 | | | | | 0 | .45% | | | | 3 | .79% | | | | 0 | .49% | | | | 77 | .44% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .17 | | | | 0 | .25 | | | | (0 | .07) | | | | 0 | .18 | | | | (0 | .26) | | | | (0 | .26) | | | $ | 9 | .09 | | | | 2 | .13% | | | $ | 452,749,327 | | | | | 0 | .45% | | | | 2 | .76% | | | | 0 | .50% | | | | 60 | .80% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .26 | | | | 0 | .19 | | | | (0 | .08) | | | | 0 | .11 | | | | (0 | .20) | | | | (0 | .20) | | | $ | 9 | .17 | | | | 1 | .07% | | | $ | 299,898,382 | | | | | 0 | .45% | | | | 2 | .05% | | | | 0 | .50% | | | | 51 | .59% | | |
| |
| (a) | Excludes sales charge. |
| (b) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (c) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (d) | Per share calculations were performed using average shares method. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 137
| |
| Nationwide Government Bond Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Government Bond Fund (Class A at NAV) registered 3.81% versus 6.88% for its benchmark, the Merrill Lynch (ML) Government Master Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Intermediate U.S. Government Funds (consisting of 82 funds as of October 31, 2008) was 2.34% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund experienced positive returns for all positions as interest rates declined substantially during the reporting period. The most favorable returns were in Treasury notes, followed by Agency notes and, finally, Agency mortgage-backed securities. Due to the ongoing financial crisis, holdings with explicit U.S. government guarantees performed best as investors gravitated toward safer investments. The Fund only holds debt either explicitly or implicitly guaranteed by the U.S. government or its agencies.
What areas of investment detracted from Fund performance?
During the latter half of the reporting period, safety was the number-one concern for investors; as they needed to raise cash, they sold their most liquid assets, such as Agency notes and Agency mortgage-backed securities. This selling pressure caused Agency-backed securities to fall in price, eventually leading to the government takeover of Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market). These holdings remain depressed but are very attractive and should perform well in future periods.
What is your outlook for the near term?
The near-term economic outlook remains dire, as evidenced by the downtrend in the leading indicators and the continued deterioration in the housing and labor markets. A meaningful recovery in corporate profits appears unlikely in the near future. Still, the markets already have discounted a relatively severe recession and now appear to be much more reasonably valued than these markets were throughout most of the past economic cycle. Moreover, risk assets tend to be leading indicators, with the Standard & Poor’s 500® (S&P 500) Index having bottomed in advance of 12 of the past 13 recessionary troughs. Volatility is likely to remain high, and enormous downside risks persist, but we believe that the worst of the percentage declines has occurred.
Subadviser:
Nationwide Asset Management, LLC
Portfolio Managers:
Gary R. Hunt, CFA; David A. Magan, CFA; and Srinath Sampath, CFA, ASA
138 Annual Report 2008
| |
| Fund Performance | Nationwide Government Bond Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr. | | Ratio* |
| |
| Class A | | w/o SC2 | | | 3.81% | | | | 3.63% | | | | 4.77% | | | | 1.10% | |
| | | w/SC3 | | | -0.64% | | | | 2.74% | | | | 4.31% | | | | | |
| |
| |
Class B4 | | w/o SC2 | | | 3.04% | | | | 2.98% | | | | 4.15% | | | | 1.71% | |
| | | w/SC5 | | | -1.95% | | | | 2.63% | | | | 4.15% | | | | | |
| |
| |
Class C6 | | w/o SC2 | | | 3.14% | | | | 2.97% | | | | 4.28% | | | | 1.71% | |
| | | w/SC7 | | | 2.15% | | | | 2.97% | | | | 4.28% | | | | | |
| |
| |
| Class D | | w/o SC2 | | | 4.09% | | | | 3.91% | | | | 5.03% | | | | 0.81% | |
| | | w/SC8 | | | -0.56% | | | | 2.96% | | | | 4.55% | | | | | |
| |
| |
Class R1,9 | | | | | 3.51% | | | | 3.46% | | | | 4.80% | | | | 1.41% | |
| |
| |
| Class X | | w/o SC2 | | | 3.30% | | | | 3.14% | | | | 4.23% | | | | 1.56% | |
| | | w/SC5 | | | -1.69% | | | | 2.79% | | | | 4.23% | | | | | |
| |
| |
Class Y1 | | w/o SC2 | | | 3.30% | | | | 3.14% | | | | 4.37% | | | | 1.56% | |
| | | w/SC7 | | | 2.30% | | | | 3.14% | | | | 4.37% | | | | | |
| |
| |
Institutional Class1,9 | | | | | 4.27% | | | | 4.02% | | | | 5.08% | | | | 0.71% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns, for periods prior to the creation of the class, include the performance of the Fund’s Class D shares. These returns were achieved prior to the creation of Class Y shares (3/1/01), Class R shares (10/1/03), and Institutional Class shares (6/29/04). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R, Class Y and Institutional Class shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for each of these classes of shares would have been lower. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 4.25% front-end sales charge was deducted. |
| |
| 4 | | These returns, for periods prior to the creation of the Fund’s Class B shares on September 4, 2003, include the performance of the Fund’s Class X shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for the Class B shares would have been lower. |
| |
| 5 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 6 | | These returns, for periods prior to March 1, 2001, include the performance of the Fund’s Class D shares and, for the period from March 1, 2001 to the creation of the Fund’s Class C shares on September 4, 2003, include the performance of the Fund’s Class Y shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for Class C shares would have been lower. |
| |
| 7 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C or Class Y shares within the first year after purchase. |
| |
| 8 | | A 4.50% front-end sales charge was deducted. |
| |
| 9 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class D shares of the Nationwide Government Bond
2008 Annual Report 139
| |
| Fund Performance | Nationwide Government Bond Fund |
Continued
Fund, the Merrill Lynch Government Master Index (MLGMI)(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 10/31/08. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The MLGMI gives a broad look at how U.S. government bonds have performed. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
140 Annual Report 2008
| |
| Shareholder | Nationwide Government Bond Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Government Bond Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 991.34 | | | | 5.09 | | | | 1.02 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.02 | | | | 5.18 | | | | 1.02 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 986.81 | | | | 8.66 | | | | 1.73 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.42 | | | | 8.83 | | | | 1.73 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 986.83 | | | | 8.66 | | | | 1.73 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.42 | | | | 8.83 | | | | 1.73 | |
| |
| |
| Class D Shares | | | Actual | | | | 1,000.00 | | | | 991.85 | | | | 3.63 | | | | 0.73 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.49 | | | | 3.69 | | | | 0.73 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 989.08 | | | | 6.43 | | | | 1.29 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.67 | | | | 6.55 | | | | 1.29 | |
| |
| |
| Class X Shares | | | Actual | | | | 1,000.00 | | | | 988.51 | | | | 7.93 | | | | 1.59 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.16 | | | | 8.07 | | | | 1.59 | |
| |
| |
| Class Y Shares | | | Actual | | | | 1,000.00 | | | | 988.50 | | | | 7.93 | | | | 1.59 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.16 | | | | 8.07 | | | | 1.59 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 993.23 | | | | 3.52 | | | | 0.70 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.60 | | | | 3.58 | | | | 0.70 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 141
| |
| Portfolio Summary | Nationwide Government Bond Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| U.S. Government Mortgage Backed Agencies | | | 31.8% | |
| Collateralized Mortgage Obligations | | | 29.7% | |
| U.S. Government Sponsored & Agency Obligations | | | 29.4% | |
| Repurchase Agreement | | | 8.0% | |
| Other Assets in excess of liabilities | | | 1.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Federal Home Loan Bank System, 5.31%, 12/28/12 | | | 7.2% | |
| Freddie Mac REMICS, 4.50%, Series 2677, Class LE, 09/15/18 | | | 6.5% | |
Fannie Mae Grantor Trust, Series 2001-T11, Class B, 5.50%, 09/25/11 | | | 6.2% | |
| Federal National Mortgage Association, 8.20%, 03/10/16 | | | 4.2% | |
| Federal Home Loan Bank System, 8.02%, 02/13/15 | | | 4.1% | |
| Fannie Mae Pool, 5.57%, Pool #745769, 07/01/36 | | | 3.9% | |
| Fannie Mae Pool, 4.85%, Pool #773298, 04/01/35 | | | 3.6% | |
| Federal Home Loan Mortgage Corp., 3.88%, 06/29/11 | | | 3.5% | |
| Fannie Mae Pool, 5.35%, Pool #386113, 05/01/33 | | | 3.2% | |
| Fannie Mae Pool, 5.52%, Pool #813605, 07/01/36 | | | 3.1% | |
| Other | | | 54.5% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
142 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Government Bond Fund
| | | | | | | | | |
| | | | | | | | | |
| Collateralized Mortgage Obligations 29.7% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| Fannie Mae Grantor Trust | | | | | | | | |
Series 2001-T2, Class B, 6.02%, 11/25/10 | | $ | 3,127,000 | | | $ | 3,257,147 | |
Series 2001-T11, Class B, 5.50%, 09/25/11 | | | 8,585,000 | | | | 8,877,967 | |
| Fannie Mae REMICS | | | | | | | | |
Series 2002-55, Class QD, 5.50%, 04/25/16 | | | 787,944 | | | | 792,554 | |
Series 1988-25, Class B, 9.25%, 10/25/18 | | | 10,930 | | | | 11,987 | |
Series 1990-7, Class B, 8.50%, 01/25/20 | | | 28,734 | | | | 31,019 | |
Series 1993-16, Class Z, 7.50%, 02/25/23 | | | 126,370 | | | | 135,114 | |
Series 1993-226, Class PK, 6.00%, 12/25/23 | | | 1,000,000 | | | | 1,014,947 | |
Series 2004-68, Class DY, 5.50%, 09/25/24 | | | 2,391,304 | | | | 2,193,773 | |
Series 2003-66, Class AP, 3.50%, 11/25/32 | | | 2,393,199 | | | | 2,173,410 | |
Series 1998-73, Class MZ, 6.30%, 10/17/38 | | | 4,339,792 | | | | 4,332,463 | |
Fannie Mae-Aces, Series 1998-M4, Class D, 6.27%, 02/25/35 | | | 1,472,693 | | | | 1,489,527 | |
| Freddie Mac REMICS | | | | | | | | |
| Series 2677, Class LE, 4.50%, 09/15/18 | | | 10,000,000 | | | | 9,339,927 | |
| Series 2960, Class BL, 5.00%, 02/15/23 | | | 3,916,728 | | | | 3,762,966 | |
| Series 1684, Class I, 6.50%, 03/15/24 | | | 2,000,000 | | | | 2,053,548 | |
| Series 2644, Class AY, 5.00%, 10/15/28 | | | 3,080,000 | | | | 3,104,328 | |
| Series 2296, Class H, 6.50%, 03/15/31 | | | 150,996 | | | | 153,863 | |
| | | | | | | | | |
| | | | | |
Total Collateralized Mortgage Obligations | | | 42,724,540 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Mortgage Backed Agencies 31.8% |
| | | | | | | | | |
| Fannie Mae Pool | | | | | | | | |
| Pool #873942, 5.87%, 09/01/11 | | | 3,955,173 | | | | 3,994,663 | |
| Pool #381570, 6.30%, 04/01/14 | | | 959,801 | | | | 983,597 | |
| Pool #381190, 7.90%, 08/01/15 | | | 1,493,083 | | | | 1,636,045 | |
| Pool #383142, 7.11%, 10/01/15 | | | 2,052,651 | | | | 2,128,911 | |
| Pool #380082, 6.35%, 03/01/16 | | | 3,783,687 | | | | 3,849,209 | |
| Pool #381995, 7.40%, 10/01/17 | | | 1,009,643 | | | | 1,072,168 | |
| Pool #385012, 6.84%, 04/01/20 | | | 4,279,175 | | | | 4,427,131 | |
| Pool #874740, 6.32%, 07/01/22 | | | 1,767,157 | | | | 1,774,809 | |
| Pool #874982, 6.81%, 11/01/25 | | | 1,735,855 | | | | 1,808,724 | |
| Pool #385258, 6.65%, 07/01/27 | | | 1,327,049 | | | | 1,352,063 | |
| Pool #386375, 4.79%, 08/01/28 | | $ | 1,782,465 | | | $ | 1,599,605 | |
| Pool #386113, 5.35%, 05/01/33 | | | 5,097,538 | | | | 4,646,786 | |
| Pool #387114, 5.62%, 09/01/34 | | | 1,186,661 | | | | 1,174,233 | |
| Pool #773298, 4.85%, 04/01/35(a) | | | 5,184,366 | | | | 5,240,972 | |
| Pool #813605, 5.52%, 07/01/36(a) | | | 4,438,699 | | | | 4,495,897 | |
| Pool #745769, 5.57%, 07/01/36 | | | 5,504,192 | | | | 5,551,146 | |
| | | | | | | | | |
| | | | | |
Total U.S. Government Mortgage Backed Agencies | | | 45,735,959 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Sponsored & Agency Obligations 29.4% |
| | | | | | | | | |
| Federal Farm Credit Bank, 4.70%, 08/10/15 | | | 2,480,000 | | | | 2,446,168 | |
| Federal Home Loan Bank System | | | | | | | | |
| 5.31%, 12/28/12 | | | 10,000,000 | | | | 10,426,440 | |
| 5.99%, 04/15/13 | | | 1,500,000 | | | | 1,603,162 | |
| 8.02 %, 02/13/15, MTN | | | 5,000,000 | | | | 5,842,545 | |
| 5.25%, 06/12/37 | | | 4,500,000 | | | | 4,221,639 | |
| Federal Home Loan Mortgage Corp., 3.88%, 06/29/11 | | | 5,000,000 | | | | 5,089,150 | |
| Federal National Mortgage Association | | | | | | | | |
| 8.20%, 03/10/16 | | | 5,000,000 | | | | 5,997,785 | |
| 4.50%, 12/18/17 | | | 3,748,000 | | | | 3,449,176 | |
| U.S. Treasury Note, 4.88%, 04/30/11 | | | 3,000,000 | | | | 3,243,282 | |
| | | | | | | | | |
| | | | | |
Total U.S. Government Sponsored & Agency Obligations | | | 42,319,347 | |
| | | | | |
| | | | | | | | | |
2008 Annual Report 143
Statement of Investments (Continued)
October 31, 2008
Nationwide Government Bond Fund (Continued)
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 8.0% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $11,594,003, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $11,825,804 | | $ | 11,593,926 | | | $ | 11,593,926 | |
| | | | | | | | | |
| | | | | |
Total Repurchase Agreement | | | 11,593,926 | |
| | | | | |
| | | | | |
Total Investments (Cost $143,598,153) (b) — 98.9% | | | 142,373,772 | |
Other assets in excess of liabilities — 1.1% | | | | | | | 1,601,872 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 143,975,644 | |
| | | | | |
| | |
| (a) | | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on October 31, 2008. The maturity date represents the actual maturity date. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| MTN | | Medium Term Note |
| |
| REMICS | | Real Estate Mortgage Investment Conduits |
The accompanying notes are an integral part of these financial statements.
144 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Government Bond Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $132,004,227) | | | $ | 130,779,846 | |
| Repurchase agreements, at value and cost | | | | 11,593,926 | |
| | | | | | |
| Total Investments | | | | 142,373,772 | |
| | | | | | |
| Interest receivable | | | | 1,011,835 | |
| Receivable for capital shares issued | | | | 1,232,164 | |
| Prepaid expenses and other assets | | | | 56,155 | |
| | | | | | |
| Total Assets | | | | 144,673,926 | |
| | | | | | |
Liabilities: | | | | | |
| Distributions payable | | | | 35,735 | |
| Payable for capital shares redeemed | | | | 551,595 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 59,551 | |
| Fund administration fees | | | | 14,278 | |
| Distribution fees | | | | 13,115 | |
| Trustee fees | | | | 344 | |
| Compliance program costs (Note 3) | | | | 382 | |
| Custodian fees | | | | 1,317 | |
| Other | | | | 21,965 | |
| | | | | | |
| Total Liabilities | | | | 698,282 | |
| | | | | | |
Net Assets | | | $ | 143,975,644 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 144,274,447 | |
| Accumulated undistributed net investment loss | | | | (15,288 | ) |
| Accumulated net realized gains from investment transactions | | | | 940,866 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (1,224,381 | ) |
| | | | | | |
Net Assets | | | $ | 143,975,644 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 42,857,123 | |
| Class B Shares | | | | 1,053,810 | |
| Class C Shares | | | | 2,402,430 | |
| Class D Shares | | | | 95,279,876 | |
| Class R Shares | | | | 571,427 | |
| Class X Shares | | | | 1,138,075 | |
| Class Y Shares | | | | 671,757 | |
| Institutional Class Shares | | | | 1,146 | |
| | | | | | |
| Total | | | $ | 143,975,644 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 145
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Government Bond Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 4,182,693 | |
| Class B Shares | | | | 102,887 | |
| Class C Shares | | | | 234,551 | |
| Class D Shares | | | | 9,293,680 | |
| Class R Shares | | | | 55,722 | |
| Class X Shares | | | | 111,166 | |
| Class Y Shares | | | | 65,615 | |
| Institutional Class Shares | | | | 112 | |
| | | | | | |
| Total | | | | 14,046,426 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 10.25 | |
| Class B Shares (a) | | | $ | 10.24 | |
| Class C Shares (b) | | | $ | 10.24 | |
| Class D Shares | | | $ | 10.25 | |
| Class R Shares | | | $ | 10.25 | |
| Class X Shares (a) | | | $ | 10.24 | |
| Class Y Shares (b) | | | $ | 10.24 | |
| Institutional Class Shares | | | $ | 10.25 | (c) |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 10.71 | |
| Class D Shares | | | $ | 10.73 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 4.25 | % |
| | | | | | |
| Class D Shares | | | | 4.50 | % |
| | | | | | |
| | |
| (a) | | For Class B and Class X Shares, the redemption price per share varies by length of time shares are held. |
| |
| (b) | | For Class C and Class Y Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
146 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Government Bond
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 6,873,777 | |
| Income from securities lending (Note 2) | | | | 20,528 | |
| | | | | | |
| Total Income | | | | 6,894,305 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 676,297 | |
| Fund administration fees | | | | 128,947 | |
| Distribution fees Class A | | | | 95,008 | |
| Distribution fees Class B | | | | 6,783 | |
| Distribution fees Class C | | | | 30,374 | |
| Distribution fees Class R | | | | 1,182 | |
| Distribution fees Class X | | | | 11,546 | |
| Distribution fees Class Y | | | | 5,905 | |
| Administrative servicing fees Class A | | | | 37,468 | |
| Administrative servicing fees Class D | | | | 71,495 | |
| Administrative servicing fees Class R | | | | 118 | |
| Registration and filing fees | | | | 62,868 | |
| Professional fees | | | | 19,890 | |
| Printing fees | | | | 45,161 | |
| Trustee fees | | | | 6,990 | |
| Custodian fees | | | | 16,201 | |
| Other | | | | 27,549 | |
| Total expenses before waived expenses | | | | 1,243,782 | |
| Earnings credit (Note 5) | | | | (3,090 | ) |
| Administrator fees voluntarily waived | | | | (346 | ) |
| Net Expenses | | | | 1,240,346 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 5,653,959 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 1,144,077 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,374,375 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (1,230,298 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | 4,423,661 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 147
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Government Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 5,653,959 | | | | $ | 5,199,472 | |
| Net realized gains from investment transactions | | | | 1,144,077 | | | | | 647,364 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,374,375 | ) | | | | 235,219 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | 4,423,661 | | | | | 6,082,055 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (1,493,865 | ) | | | | (1,257,974 | ) |
| Class B | | | | (22,033 | ) | | | | (13,280 | ) |
| Class C | | | | (100,944 | ) | | | | (55,128 | ) |
| Class D | | | | (3,837,331 | ) | | | | (3,810,564 | ) |
| Class R | | | | (8,356 | ) | | | | (49 | ) |
| Class X | | | | (46,968 | ) | | | | (61,429 | ) |
| Class Y | | | | (24,004 | ) | | | | (29,562 | ) |
| Institutional Class | | | | (50 | ) | | | | (48 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (5,533,551 | ) | | | | (5,228,034 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 25,129,088 | | | | | (10,775,966 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | 24,019,198 | | | | | (9,921,945 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 119,956,446 | | | | | 129,878,391 | |
| | | | | | | | | | | |
| End of period | | | $ | 143,975,644 | | | | $ | 119,956,446 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income / loss at end of period | | | $ | (15,288 | ) | | | $ | 11,989 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 29,272,028 | | | | $ | 8,000,176 | |
| Dividends reinvested | | | | 1,446,933 | | | | | 1,223,211 | |
| Cost of shares redeemed (a) | | | | (18,581,160 | ) | | | | (9,839,620 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 12,137,801 | | | | | (616,233 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 875,701 | | | | | 108,178 | |
| Dividends reinvested | | | | 7,344 | | | | | 5,041 | |
| Cost of shares redeemed (a) | | | | (229,063 | ) | | | | (59,931 | ) |
| | | | | | | | | | | |
| Total Class B | | | | 653,982 | | | | | 53,288 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 5,315,054 | | | | | 1,098,753 | |
| Dividends reinvested | | | | 42,607 | | | | | 4,152 | |
| Cost of shares redeemed (a) | | | | (4,385,557 | ) | | | | (2,242,035 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 972,104 | | | | | (1,139,130 | ) |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
The accompanying notes are an integral part of these financial statements.
148 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Government Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 33,189,032 | | | | $ | 16,490,280 | |
| Dividends reinvested | | | | 3,525,197 | | | | | 3,443,619 | |
| Cost of shares redeemed (a) | | | | (25,435,251 | ) | | | | (28,552,137 | ) |
| | | | | | | | | | | |
| Total Class D | | | | 11,278,978 | | | | | (8,618,238 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 583,287 | | | | | 810 | |
| Dividends reinvested | | | | 4,860 | | | | | 42 | |
| Cost of shares redeemed | | | | (6,624 | ) | | | | (75 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 581,523 | | | | | 777 | |
| | | | | | | | | | | |
Class X Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 40,925 | | | | | 47,685 | |
| Dividends reinvested | | | | 45,223 | | | | | 58,968 | |
| Cost of shares redeemed | | | | (466,723 | ) | | | | (512,785 | ) |
| | | | | | | | | | | |
| Total Class X | | | | (380,575 | ) | | | | (406,132 | ) |
| | | | | | | | | | | |
Class Y Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 9,705 | | | | | 12,373 | |
| Dividends reinvested | | | | 20,171 | | | | | 20,716 | |
| Cost of shares redeemed | | | | (144,651 | ) | | | | (83,435 | ) |
| | | | | | | | | | | |
| Total Class Y | | | | (114,775 | ) | | | | (50,346 | ) |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | – | |
| Dividends reinvested | | | | 50 | | | | | 48 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 50 | | | | | 48 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 25,129,088 | | | | $ | (10,775,966 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 2,786,656 | | | | | 785,655 | |
| Reinvested | | | | 138,223 | | | | | 120,057 | |
| Redeemed | | | | (1,780,973 | ) | | | | (967,126 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 1,143,906 | | | | | (61,414 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 83,412 | | | | | 10,608 | |
| Reinvested | | | | 702 | | | | | 495 | |
| Redeemed | | | | (21,874 | ) | | | | (5,878 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | 62,240 | | | | | 5,225 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 501,564 | | | | | 107,534 | |
| Reinvested | | | | 4,043 | | | | | 408 | |
| Redeemed | | | | (418,502 | ) | | | | (220,165 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 87,105 | | | | | (112,223 | ) |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| - | Amounts designated as “-” are zero or have been rounded to zero.
|
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 149
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Government Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Issued | | | | 3,158,779 | | | | | 1,616,996 | |
| Reinvested | | | | 336,599 | | | | | 337,762 | |
| Redeemed | | | | (2,431,327 | ) | | | | (2,803,807 | ) |
| | | | | | | | | | | |
| Total Class D Shares | | | | 1,064,051 | | | | | (849,049 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 55,702 | | | | | 79 | |
| Reinvested | | | | 468 | | | | | 4 | |
| Redeemed | | | | (630 | ) | | | | (7 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 55,540 | | | | | 76 | |
| | | | | | | | | | | |
Class X Shares | | | | | | | | | | |
| Issued | | | | 3,900 | | | | | 4,682 | |
| Reinvested | | | | 4,319 | | | | | 5,793 | |
| Redeemed | | | | (44,408 | ) | | | | (50,466 | ) |
| | | | | | | | | | | |
| Total Class X Shares | | | | (36,189 | ) | | | | (39,991 | ) |
| | | | | | | | | | | |
Class Y Shares | | | | | | | | | | |
| Issued | | | | 926 | | | | | 1,219 | |
| Reinvested | | | | 1,927 | | | | | 2,035 | |
| Redeemed | | | | (13,787 | ) | | | | (8,217 | ) |
| | | | | | | | | | | |
| Total Class Y Shares | | | | (10,934 | ) | | | | (4,963 | ) |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | – | |
| Reinvested | | | | 5 | | | | | 5 | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 5 | | | | | 5 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 2,365,724 | | | | | (1,062,334 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
150 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Government Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .27 | | | | 0 | .42 | | | | (0 | .03) | | | | 0 | .39 | | | | (0 | .41) | | | | – | | | | | (0 | .41) | | | $ | 10 | .25 | | | | 3 | .81% | | | $ | 42,857,123 | | | | | 1 | .07% | | | | 4 | .02% | | | | 1 | .07% | | | | 82 | .40% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .19 | | | | 0 | .41 | | | | 0 | .09 | | | | 0 | .50 | | | | (0 | .42) | | | | – | | | | | (0 | .42) | | | $ | 10 | .27 | | | | 5 | .01% | | | $ | 31,194,601 | | | | | 1 | .10% | | | | 4 | .09% | | | | 1 | .10% | | | | 90 | .18% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .17 | | | | 0 | .40 | | | | 0 | .02 | | | | 0 | .42 | | | | (0 | .39) | | | | (0 | .01) | | | | (0 | .40) | | | $ | 10 | .19 | | | | 4 | .25% | | | $ | 31,585,695 | | | | | 1 | .09% | | | | 3 | .95% | | | | 1 | .09% | | | | 150 | .10% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .37 | | | | 0 | .35 | | | | (0 | .20) | | | | 0 | .15 | | | | (0 | .35) | | | | – | | | | | (0 | .35) | | | $ | 10 | .17 | | | | 1 | .46% | | | $ | 54,165,868 | | | | | 1 | .10% | | | | 3 | .41% | | | | –(g) | | | | | 117 | .67% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .61 | | | | 0 | .35 | | | | 0 | .03 | | | | 0 | .38 | | | | (0 | .36) | | | | (0 | .26) | | | | (0 | .62) | | | $ | 10 | .37 | | | | 3 | .68% | | | $ | 55,480,750 | | | | | 1 | .07% | | | | 3 | .37% | | | | –(g) | | | | | 110 | .72% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .27 | | | | 0 | .35 | | | | (0 | .04) | | | | 0 | .31 | | | | (0 | .34) | | | | – | | | | | (0 | .34) | | | $ | 10 | .24 | | | | 3 | .04% | | | $ | 1,053,810 | | | | | 1 | .73% | | | | 3 | .33% | | | | 1 | .73% | | | | 82 | .40% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .19 | | | | 0 | .35 | | | | 0 | .09 | | | | 0 | .44 | | | | (0 | .36) | | | | – | | | | | (0 | .36) | | | $ | 10 | .27 | | | | 4 | .39% | | | $ | 417,265 | | | | | 1 | .71% | | | | 3 | .48% | | | | 1 | .71% | | | | 90 | .18% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .17 | | | | 0 | .34 | | | | 0 | .02 | | | | 0 | .36 | | | | (0 | .33) | | | | (0 | .01) | | | | (0 | .34) | | | $ | 10 | .19 | | | | 3 | .61% | | | $ | 360,941 | | | | | 1 | .69% | | | | 3 | .42% | | | | 1 | .69% | | | | 150 | .10% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .37 | | | | 0 | .29 | | | | (0 | .20) | | | | 0 | .09 | | | | (0 | .29) | | | | – | | | | | (0 | .29) | | | $ | 10 | .17 | | | | 0 | .85% | | | $ | 152,497 | | | | | 1 | .71% | | | | 2 | .79% | | | | –(g) | | | | | 117 | .67% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .61 | | | | 0 | .28 | | | | 0 | .03 | | | | 0 | .31 | | | | (0 | .29) | | | | (0 | .26) | | | | (0 | .55) | | | $ | 10 | .37 | | | | 3 | .04% | | | $ | 169,636 | | | | | 1 | .69% | | | | 2 | .75% | | | | –(g) | | | | | 110 | .72% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) There were no fee reductions during the period.
(h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 151
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Government Bond Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .26 | | | | 0 | .35 | | | | (0 | .03) | | | | 0 | .32 | | | | (0 | .34) | | | | – | | | | | (0 | .34) | | | $ | 10 | .24 | | | | 3 | .14% | | | $ | 2,402,430 | | | | | 1 | .72% | | | | 3 | .39% | | | | 1 | .72% | | | | 82 | .40% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .19 | | | | 0 | .36 | | | | 0 | .07 | | | | 0 | .43 | | | | (0 | .36) | | | | – | | | | | (0 | .36) | | | $ | 10 | .26 | | | | 4 | .29% | | | $ | 1,513,196 | | | | | 1 | .70% | | | | 3 | .46% | | | | 1 | .71% | | | | 90 | .18% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .16 | | | | 0 | .34 | | | | 0 | .03 | | | | 0 | .37 | | | | (0 | .33) | | | | (0 | .01) | | | | (0 | .34) | | | $ | 10 | .19 | | | | 3 | .69% | | | $ | 2,645,133 | | | | | 1 | .69% | | | | 3 | .45% | | | | 1 | .69% | | | | 150 | .10% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .37 | | | | 0 | .29 | | | | (0 | .21) | | | | 0 | .08 | | | | (0 | .29) | | | | – | | | | | (0 | .29) | | | $ | 10 | .16 | | | | 0 | .75% | | | $ | 330,619 | | | | | 1 | .71% | | | | 2 | .80% | | | | –(g) | | | | | 117 | .67% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .61 | | | | 0 | .28 | | | | 0 | .03 | | | | 0 | .31 | | | | (0 | .29) | | | | (0 | .26) | | | | (0 | .55) | | | $ | 10 | .37 | | | | 3 | .03% | | | $ | 295,915 | | | | | 1 | .69% | | | | 2 | .75% | | | | –(g) | | | | | 110 | .72% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .27 | | | | 0 | .45 | | | | (0 | .03) | | | | 0 | .42 | | | | (0 | .44) | | | | – | | | | | (0 | .44) | | | $ | 10 | .25 | | | | 4 | .09% | | | $ | 95,279,876 | | | | | 0 | .80% | | | | 4 | .30% | | | | 0 | .80% | | | | 82 | .40% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .19 | | | | 0 | .44 | | | | 0 | .09 | | | | 0 | .53 | | | | (0 | .45) | | | | – | | | | | (0 | .45) | | | $ | 10 | .27 | | | | 5 | .30% | | | $ | 84,531,806 | | | | | 0 | .81% | | | | 4 | .37% | | | | 0 | .81% | | | | 90 | .18% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .17 | | | | 0 | .43 | | | | 0 | .02 | | | | 0 | .45 | | | | (0 | .42) | | | | (0 | .01) | | | | (0 | .43) | | | $ | 10 | .19 | | | | 4 | .55% | | | $ | 92,547,417 | | | | | 0 | .79% | | | | 4 | .24% | | | | 0 | .79% | | | | 150 | .10% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .37 | | | | 0 | .38 | | | | (0 | .20) | | | | 0 | .18 | | | | (0 | .38) | | | | – | | | | | (0 | .38) | | | $ | 10 | .17 | | | | 1 | .76% | | | $ | 105,986,593 | | | | | 0 | .81% | | | | 3 | .70% | | | | –(g) | | | | | 117 | .67% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .62 | | | | 0 | .38 | | | | 0 | .02 | | | | 0 | .40 | | | | (0 | .39) | | | | (0 | .26) | | | | (0 | .65) | | | $ | 10 | .37 | | | | 3 | .87% | | | $ | 121,325,444 | | | | | 0 | .78% | | | | 3 | .66% | | | | –(g) | | | | | 110 | .72% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) There were no fee reductions during the period.
(h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
152 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Government Bond Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31,
2008 | | | $ | 10 | .28 | | | | 0 | .39 | | | | (0 | .03) | | | | 0 | .36 | | | | (0 | .39) | | | | – | | | | | (0 | .39) | | | $ | 10 | .25 | | | | 3 | .51% | | | $ | 571,427 | | | | | 1 | .29% | | | | 3 | .61% | | | | 1 | .29% | | | | 82 | .40% | | |
Year Ended October 31,
2007 | | | $ | 10 | .20 | | | | 0 | .38 | | | | 0 | .09 | | | | 0 | .47 | | | | (0 | .39) | | | | – | | | | | (0 | .39) | | | $ | 10 | .28 | | | | 4 | .70% | | | $ | 1,875 | | | | | 1 | .35% | | | | 3 | .82% | | | | 1 | .35% | | | | 90 | .18% | | |
Year Ended October 31,
2006 | | | $ | 10 | .17 | | | | 0 | .40 | | | | 0 | .03 | | | | 0 | .43 | | | | (0 | .39) | | | | (0 | .01) | | | | (0 | .40) | | | $ | 10 | .20 | | | | 4 | .35% | | | $ | 1,081 | | | | | 1 | .08% | | | | 3 | .96% | | | | 1 | .08% | | | | 150 | .10% | | |
Year Ended October 31,
2005 | | | $ | 10 | .38 | | | | 0 | .35 | | | | (0 | .21) | | | | 0 | .14 | | | | (0 | .35) | | | | – | | | | | (0 | .35) | | | $ | 10 | .17 | | | | 1 | .34% | | | $ | 1,037 | | | | | 1 | .06% | | | | 3 | .39% | | | | –(g) | | | | | 117 | .67% | | |
Year Ended October 31,
2004 | | | $ | 10 | .62 | | | | 0 | .32 | | | | 0 | .03 | | | | 0 | .35 | | | | (0 | .33) | | | | (0 | .26) | | | | (0 | .59) | | | $ | 10 | .38 | | | | 3 | .41% | | | $ | 1,019 | | | | | 1 | .37% | | | | 3 | .12% | | | | –(g) | | | | | 110 | .72% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class X Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31,
2008 | | | $ | 10 | .26 | | | | 0 | .37 | | | | (0 | .03) | | | | 0 | .34 | | | | (0 | .36) | | | | – | | | | | (0 | .36) | | | $ | 10 | .24 | | | | 3 | .30% | | | $ | 1,138,075 | | | | | 1 | .58% | | | | 3 | .55% | | | | 1 | .58% | | | | 82 | .40% | | |
Year Ended October 31,
2007 | | | $ | 10 | .18 | | | | 0 | .36 | | | | 0 | .09 | | | | 0 | .45 | | | | (0 | .37) | | | | – | | | | | (0 | .37) | | | $ | 10 | .26 | | | | 4 | .54% | | | $ | 1,511,456 | | | | | 1 | .56% | | | | 3 | .63% | | | | 1 | .56% | | | | 90 | .18% | | |
Year Ended October 31,
2006 | | | $ | 10 | .16 | | | | 0 | .36 | | | | 0 | .02 | | | | 0 | .38 | | | | (0 | .35) | | | | (0 | .01) | | | | (0 | .36) | | | $ | 10 | .18 | | | | 3 | .77% | | | $ | 1,907,290 | | | | | 1 | .56% | | | | 3 | .44% | | | | 1 | .56% | | | | 150 | .10% | | |
Year Ended October 31,
2005 | | | $ | 10 | .36 | | | | 0 | .30 | | | | (0 | .20) | | | | 0 | .10 | | | | (0 | .30) | | | | – | | | | | (0 | .30) | | | $ | 10 | .16 | | | | 1 | .00% | | | $ | 3,393,578 | | | | | 1 | .56% | | | | 2 | .95% | | | | –(g) | | | | | 117 | .67% | | |
Year Ended October 31,
2004 | | | $ | 10 | .61 | | | | 0 | .30 | | | | 0 | .02 | | | | 0 | .32 | | | | (0 | .31) | | | | (0 | .26) | | | | (0 | .57) | | | $ | 10 | .36 | | | | 3 | .10% | | | $ | 4,557,272 | | | | | 1 | .54% | | | | 2 | .91% | | | | –(g) | | | | | 110 | .72% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) There were no fee reductions during the period.
(h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 153
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Government Bond Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31,
2008 | | | $ | 10 | .26 | | | | 0 | .37 | | | | (0 | .03) | | | | 0 | .34 | | | | (0 | .36) | | | | – | | | | | (0 | .36) | | | $ | 10 | .24 | | | | 3 | .30% | | | $ | 671,757 | | | | | 1 | .58% | | | | 3 | .54% | | | | 1 | .58% | | | | 82 | .40% | | |
Year Ended October 31,
2007 | | | $ | 10 | .18 | | | | 0 | .36 | | | | 0 | .09 | | | | 0 | .45 | | | | (0 | .37) | | | | – | | | | | (0 | .37) | | | $ | 10 | .26 | | | | 4 | .54% | | | $ | 785,148 | | | | | 1 | .56% | | | | 3 | .63% | | | | 1 | .56% | | | | 90 | .18% | | |
Year Ended October 31,
2006 | | | $ | 10 | .16 | | | | 0 | .36 | | | | 0 | .02 | | | | 0 | .38 | | | | (0 | .35) | | | | (0 | .01) | | | | (0 | .36) | | | $ | 10 | .18 | | | | 3 | .77% | | | $ | 829,792 | | | | | 1 | .55% | | | | 3 | .49% | | | | 1 | .55% | | | | 150 | .10% | | |
Year Ended October 31,
2005 | | | $ | 10 | .36 | | | | 0 | .30 | | | | (0 | .20) | | | | 0 | .10 | | | | (0 | .30) | | | | – | | | | | (0 | .30) | | | $ | 10 | .16 | | | | 1 | .00% | | | $ | 855,336 | | | | | 1 | .56% | | | | 2 | .95% | | | | –(g) | | | | | 117 | .67% | | |
Year Ended October 31,
2004 | | | $ | 10 | .61 | | | | 0 | .30 | | | | 0 | .02 | | | | 0 | .32 | | | | (0 | .31) | | | | (0 | .26) | | | | (0 | .57) | | | $ | 10 | .36 | | | | 3 | .10% | | | $ | 960,733 | | | | | 1 | .54% | | | | 2 | .93% | | | | –(g) | | | | | 110 | .72% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional
Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31,
2008 | | | $ | 10 | .27 | | | | 0 | .47 | | | | (0 | .03) | | | | 0 | .44 | | | | (0 | .46) | | | | – | | | | | (0 | .46) | | | $ | 10 | .25 | | | | 4 | .27% | | | $ | 1,146 | | | | | 0 | .67% | | | | 4 | .50% | | | | 0 | .67% | | | | 82 | .40% | | |
Year Ended October 31,
2007 | | | $ | 10 | .19 | | | | 0 | .46 | | | | 0 | .08 | | | | 0 | .54 | | | | (0 | .46) | | | | – | | | | | (0 | .46) | | | $ | 10 | .27 | | | | 5 | .43% | | | $ | 1,099 | | | | | 0 | .69% | | | | 4 | .53% | | | | 0 | .69% | | | | 90 | .18% | | |
Year Ended October 31,
2006 | | | $ | 10 | .17 | | | | 0 | .44 | | | | 0 | .02 | | | | 0 | .46 | | | | (0 | .43) | | | | (0 | .01) | | | | (0 | .44) | | | $ | 10 | .19 | | | | 4 | .68% | | | $ | 1,042 | | | | | 0 | .72% | | | | 4 | .38% | | | | 0 | .72% | | | | 150 | .10% | | |
Year Ended October 31,
2005 (f) | | | $ | 10 | .38 | | | | 0 | .39 | | | | (0 | .21) | | | | 0 | .18 | | | | (0 | .39) | | | | – | | | | | (0 | .39) | | | $ | 10 | .17 | | | | 1 | .72% | | | $ | 996 | | | | | 0 | .72% | | | | 3 | .85% | | | | –(g) | | | | | 117 | .67% | | |
Period Ended October 31,
2004 (h) | | | $ | 10 | .11 | | | | 0 | .12 | | | | 0 | .28 | | | | 0 | .40 | | | | (0 | .13) | | | | – | | | | | (0 | .13) | | | $ | 10 | .38 | | | | 4 | .00% | | | $ | 149,210 | | | | | 0 | .69% | | | | 3 | .66% | | | | –(g) | | | | | 110 | .72% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Per share calculations were performed using average shares method. |
| (g) | There were no fee reductions during the period. |
| (h) | For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
154 Annual Report 2008
| |
| Nationwide Short Duration Bond Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Short Duration Bond Fund (Class A at NAV) registered 2.28% versus 6.86% for its benchmark, the Merrill Lynch (ML) 1-3 Year Treasury Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Short Investment Grade Debt Funds (consisting of 261 funds as of October 31, 2008) was -4.64% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
U.S. Treasuries outperformed all non-Treasury sectors on a yield curve-adjusted excess returns basis during the reporting period. (The yield cure is a plotted graph line of the yields [or interest rates] on long-term and short-term maturity bonds.) The Fund’s approximate 30% exposure to U.S. Treasuries helped returns, as investors sought out the safety and liquidity afforded in Treasury securities. High-rated securities as well as a 5% cash target throughout the reporting period helped Fund performance versus the Fund’s peer group.
What areas of investment detracted from Fund performance?
Dramatic spread widening across all spread sectors occurred during the reporting period. This widening detracted from the Fund’s performance, because the Fund was overweight in Agency, mortgage-backed securities (MBS), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS) and credit sectors relative to the Fund’s all-Treasury benchmark index.
While we maintained the Fund’s duration within a fairly tight band in relation to the duration of the benchmark index, the Fund’s shorter-than-index duration had a slightly negative impact as rates fell during the reporting period.
What is your outlook for the near term?
By all accounts, the global and U.S. economies appear to have entered into recessions, the magnitude and impact of which is expected to be severe. U.S. economic growth is likely to contract for the remainder of 2008 and into 2009, while inflation concerns have abated after sharp declines in energy and commodities prices as well as expectations that consumer demand and consumer spending will continue to decline.
The deleveraging of banks and other financial institutions, as well as deteriorating credit conditions, are likely to continue to weigh on asset valuations, with the most credit-sensitive sectors remaining under the most pressure.
Short-term U.S. Treasury rates should remain low as efforts to stimulate growth and unfreeze credit markets take center stage. Longer-term rates may remain under pressure on supply concerns, which would maintain the steep shape of the yield curve .
Given the uncertainty in the economic outlook and unprecedented liquidity disruptions in the markets, we have attempted to position the Fund to maintain an overall duration-neutral position versus the benchmark index and a conservative posture with regard to credit quality and liquidity.
Risk premiums remain at historically wide levels for all non-Treasury fixed-income assets because of a combination of unfavorable supply/demand technicals and the weak economic outlook. While wider risk premiums are generally warranted, the market has been somewhat indiscriminant in pricing securities lower regardless of risk, creating many return enhancement opportunities. We intend to prudently exploit market dislocations while maintaining the Fund’s quality and liquidity.
Subadviser:
Morley Capital Management, Inc.
Portfolio Managers:
Perpetua M. Phillips and Paul Rocheleau
2008 Annual Report 155
| |
| Fund Performance | Nationwide Short Duration Bond Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio | | Ratio* |
| |
Class A2 | | w/o SC3 | | | 2.28% | | | | 2.86% | | | | 3.74% | | | | 0.80% | | | | 0.70% | |
| | | w/SC4 | | | -0.03% | | | | 2.23% | | | | 3.41% | | | | | | | | | |
| |
| |
Class C6 | | w/o SC3 | | | 1.68% | | | | 2.51% | | | | 3.56% | | | | 1.30% | | | | 1.20% | |
| | | w/SC7 | | | 0.94% | | | | 2.51% | | | | 3.56% | | | | | | | | | |
| |
| |
Institutional Class Shares5 | | | | | 2.54% | | | | 3.15% | | | | 4.09% | | | | 0.55% | | | | 0.45% | |
| |
| |
Service Class Shares5 | | | | | 2.06% | | | | 2.78% | | | | 3.70% | | | | 0.95% | | | | 0.85% | |
| |
| |
IRA Class Shares5 | | | | | 2.08% | | | | 2.76% | | | | 3.70% | | | | 0.80% | | | | 0.70% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on February 1, 1999. |
| |
| 2 | | These returns until the creation of Class A shares (7/16/03) include the performance of the Fund’s IRA Class shares. Excluding the effects of any fee waivers or reimbursements, such performance is substantially similar to what Class A shares would have produced because Class A shares invest in the same portfolio of securities as IRA Class shares and have the same expenses after any fee waivers or reimbursements. For Class A returns including sales charges, these returns have been restated for the applicable sales charges. |
| |
| 3 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 4 | | A 2.25% front-end sales charge was deducted. |
| |
| 5 | | Not subject to any sales charges. |
| |
| 6 | | These returns until the creation of Class C shares (2/28/05) include the performance of the Fund’s Class A shares. Excluding the effects of any fee waivers or reimbursements, such performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class A shares. The performance for Class C has been restated to reflect differences in sales charges, but does not reflect the differing levels of other fees (primarily Rule 12b-1 fees) applicable to the classes. If these other fees were reflected, the performance for each of these classes of shares would have been lower. |
| |
| 7 | | A 0.75% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Service Class shares of the Nationwide Short Duration Bond Fund, Merrill Lynch 1-3 Year Treasury Index(a) and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees or expenses. Investors cannot invest directly in market indexes.
| | |
| (a) | | Merrill Lynch 1-3 Year Treasury Index is an unmanaged index comprised of U.S. Treasury securities with maturities ranging from one to three years, which are guaranteed as to the timely payment of principal and interest by the U.S. government. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
156 Annual Report 2008
| |
| Shareholder | Nationwide Short Duration Bond Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Short Duration Bond Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 993.12 | | | | 3.49 | | | | 0.70 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.64 | | | | 3.54 | | | | 0.70 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 990.65 | | | | 6.13 | | | | 1.22 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.98 | | | | 6.23 | | | | 1.22 | |
| |
| |
| Service Class | | | Actual | | | | 1,000.00 | | | | 992.59 | | | | 4.03 | | | | 0.80 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.09 | | | | 4.09 | | | | 0.80 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 994.38 | | | | 2.27 | | | | 0.45 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.86 | | | | 2.30 | | | | 0.45 | |
| |
| |
| IRA Class Shares | | | Actual | | | | 1,000.00 | | | | 992.50 | | | | 4.15 | | | | 0.83 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.97 | | | | 4.22 | | | | 0.83 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 157
| |
| Portfolio Summary | Nationwide Short Duration Bond Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| U.S. Government Sponsored & Agency Obligations | | | 36.2% | |
| Asset-Backed Securities | | | 20.9% | |
| Collateralized Mortgage Obligations | | | 13.4% | |
| Commercial Mortgage Backed Securities | | | 13.1% | |
| Corporate Bonds | | | 10.9% | |
| Repurchase Agreement | | | 5.1% | |
| Other assets in excess of liabilities | | | 0.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Auto Loans | | | 11.0% | |
| Home Equity Loans | | | 3.5% | |
| Other Financial | | | 3.3% | |
| Utility Loans | | | 2.7% | |
| Specialty Retail | | | 1.3% | |
| Technology | | | 1.3% | |
| Banks | | | 1.3% | |
| Equipment Loans | | | 1.3% | |
| Consumer Finance | | | 1.3% | |
| Credit Card Loans | | | 1.3% | |
| Other | | | 71.7% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| U.S. Treasury Notes, 4.75%, 02/15/10 | | | 13.9% | |
| U.S. Treasury Notes, 4.50%, 05/15/10 | | | 12.6% | |
| U.S. Treasury Notes, 2.00%, 09/30/10 | | | 4.0% | |
Fannie Mae REMICS, 4.00%, Series 2004-80, Class LG, , 10/25/16 | | | 2.9% | |
| Federal Home Loan Mortgage Corp., 2.88%, 04/30/10 | | | 2.7% | |
LB-UBS Commercial Mortgage Trust, 4.89%, Series 2005-C5, Class A2, 09/15/30 | | | 2.5% | |
CitiFinancial Mortgage Securities, Inc., Series 2003-4, Class AF4, 4.43%, 10/25/33 | | | 2.0% | |
| Freddie Mac REMICS, 4.50%, Series 2870, Class BC, 07/15/14 | | | 2.0% | |
| Federal Home Loan Mortgage Corp., 2.88%, 11/23/10 | | | 2.0% | |
| HSBC Finance Corp., 5.88%, 02/01/09 | | | 2.0% | |
| Other | | | 53.4% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
158 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Short Duration Bond Fund
| | | | | | | | | |
| | | | | | | | | |
| Asset-Backed Securities 20.9% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Agency Wrap 1.1% |
FHLMC Structured Pass Through Securities, Series T-50, Class A6, 3.61%, 09/27/12 | | $ | 816,549 | | | $ | 794,804 | |
| | | | | | | | | |
| |
| |
Auto Loans 11.0% |
AmeriCredit Automobile Receivables Trust, Series 2005-CF, Class A4, 4.63%, 06/06/12 | | | 1,231,864 | | | | 1,170,225 | |
Capital Auto Receivables Asset Trust, Series 2008-1, Class A4A, 4.46%, 07/15/14 | | | 1,000,000 | | | | 903,625 | |
Daimler Chrysler Auto Trust, Series 2007-A, Class A4, 5.28%, 03/08/13 | | | 1,000,000 | | | | 896,938 | |
Honda Auto Receivables Owner Trust, Series 2006-3, Class A4, 5.11%, 04/15/12 | | | 1,140,000 | | | | 1,117,489 | |
Nissan Auto Receivables Owner Trust, Series 2008-A, Class A4, 4.28%, 06/16/14 | | | 700,000 | | | | 636,569 | |
USAA Auto Owner Trust, Series 2008-1, Class A4, 4.50%, 10/15/13 | | | 1,000,000 | | | | 943,428 | |
Volkswagen Auto Loan Enhanced Trust, Series 2008-1, Class A2, 3.71%, 04/20/11 | | | 1,000,000 | | | | 988,896 | |
| World Omni Auto Receivables Trust | | | | | | | | |
Series 2008-B, Class A3A, 5.13%, 04/15/13 | | | 750,000 | | | | 705,472 | |
Series 2008-A, Class A4, 4.74%, 10/15/13 | | | 1,000,000 | | | | 905,149 | |
| | | | | | | | | |
| | | | | | | | 8,267,791 | |
| | | | | | | | | |
| |
| |
Credit Card Loans 1.3% |
Chase Issuance Trust, Series 2005-A7, Class A7, 4.55%, 03/15/13 | | | 1,000,000 | | | | 934,895 | |
| | | | | | | | | |
| |
| |
Equipment Loans 1.3%(a) |
MBNA Practice Solutions Owner Trust, Series 2005-2, Class A4, 4.47%, 06/15/13 | | | 1,000,000 | | | | 981,360 | |
| | | | | | | | | |
| |
| |
Home Equity Loans 3.5% |
CitiFinancial Mortgage Securities, Inc., Series 2003-4, Class AF4, 4.43%, 10/25/33(b) | | | 1,635,619 | | | | 1,514,399 | |
Residential Asset Securities Corp., Series 2003-KS10, Class AI4, 4.47%, 03/25/32 | | | 1,329,425 | | | | 1,130,724 | |
| | | | | | | | | |
| | | | | | | | 2,645,123 | |
| | | | | | | | | |
Utility Loans 2.7% |
Peco Energy Transition Trust, Series 2001-A, Class A1, 6.52%, 12/31/10 | | | 1,000,000 | | | | 1,016,607 | |
PG&E Energy Recovery Funding LLC, Series 2005-2, Class A2, 5.03%, 03/25/14 | | | 1,000,000 | | | | 990,829 | |
| | | | | | | | | |
| | | | | | | | 2,007,436 | |
| | | | | | | | | |
| | | | | |
Total Asset-Backed Securities | | | 15,631,409 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Collateralized Mortgage Obligations 13.4% |
| | | | | | | | | |
| Fannie Mae REMICS | | | | | | | | |
Series 2004-79, Class VE, 4.50%, 08/25/10 | | | 818,103 | | | | 821,181 | |
Series 2004-9, Class YJ, 4.00%, 10/25/13 | | | 1,393,827 | | | | 1,394,281 | |
Series 2004-80, Class LG, 4.00%, 10/25/16 | | | 2,214,964 | | | | 2,211,786 | |
| Freddie Mac REMICS | | | | | | | | |
| Series 2870, Class BC, 4.50%, 07/15/14 | | | 1,497,855 | | | | 1,503,544 | |
| Series 2676, Class CV, 4.00%, 05/15/16 | | | 1,032,828 | | | | 1,029,077 | |
| Series 2626, Class UN, 4.00%, 08/15/29 | | | 1,002,919 | | | | 998,300 | |
| Government National Mortgage Association | | | | | | | | |
Series 2004-76, Class QA, 4.00%, 01/20/34 | | | 1,207,972 | | | | 1,137,788 | |
Series 2004-22, Class BK, 3.47%, 04/20/34 | | | 1,001,362 | | | | 991,607 | |
| | | | | | | | | |
| | | | | |
Total Collateralized Mortgage Obligations | | | 10,087,564 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Commercial Mortgage Backed Securities 13.1% |
| | | | | | | | | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2001-TOP4, Class A1, 5.06%, 11/15/16 | | | 591,808 | | | | 576,878 | |
Series 2001-TOP2, Class A1, 6.08%, 02/15/35 | | | 383,421 | | | | 378,024 | |
Series 2004-T14, Class A3, 4.80%, 01/12/41 | | | 1,000,000 | | | | 949,527 | |
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A1, 4.98%, 12/11/49 | | | 838,179 | | | | 786,027 | |
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A2, 5.51%, 04/10/38 | | | 1,000,000 | | | | 928,487 | |
2008 Annual Report 159
Statement of Investments (Continued)
October 31, 2008
Nationwide Short Duration Bond Fund (Continued)
| | | | | | | | | |
Commercial Mortgage Backed Securities (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
Series 2005-C5, Class A2, 4.89%, 09/15/30 | | $ | 2,000,000 | | | $ | 1,903,315 | |
Series 2007-C1, Class A1, 5.39%, 02/15/40 | | | 738,724 | | | | 701,656 | |
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A1, 4.71%, 07/12/46 | | | 1,100,459 | | | | 1,032,147 | |
Nomura Asset Securities Corp., Series 1998-D6, Class A1B, 6.59%, 03/15/30 | | | 142,765 | | | | 142,549 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-C17, Class A2, 4.78%, 03/15/42 | | | 1,261,344 | | | | 1,211,440 | |
Series 2006-C27, Class A2, 5.62%, 07/15/45 | | | 1,300,000 | | | | 1,196,938 | |
| | | | | | | | | |
| | | | | |
Total Commercial Mortgage Backed Securities | | | 9,806,988 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Corporate Bonds 10.9% |
| | | | | | | | | |
| | | | | | | | | |
Banks 1.3% |
| Wells Fargo & Co., Series E, 3.98%, 10/29/10 | | | 1,000,000 | | | | 983,723 | |
| | | | | | | | | |
| |
| |
Consumer Finance 1.3%(a) |
| TIAA Global Markets, Inc., 4.88%, 01/12/11 | | | 1,000,000 | | | | 977,577 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 1.3% |
| Merrill Lynch & Co., Inc., 4.25%, 02/08/10 | | | 1,000,000 | | | | 934,496 | |
| | | | | | | | | |
| |
| |
Insurance 1.1% |
| Genworth Financial, Inc., 5.23%, 05/16/09 | | | 1,000,000 | | | | 810,054 | |
| | | | | | | | | |
| |
| |
Other Financial 3.3% |
| HSBC Finance Corp., 5.88%, 02/01/09 | | | 1,500,000 | | | | 1,492,479 | |
| Metropolitan Life Global Funding I, 4.63%, 08/19/10(a) | | | 1,000,000 | | | | 942,351 | |
| | | | | | | | | |
| | | | | | | | 2,434,830 | |
| | | | | | | | | |
| |
| |
Specialty Retail 1.3% |
| Wal-Mart Stores, Inc., 4.13%, 02/15/11 | | | 1,000,000 | | | | 1,002,195 | |
| | | | | | | | | |
| |
| |
Technology 1.3% |
| Cisco Systems, Inc., 5.25%, 02/22/11 | | | 1,000,000 | | | | 1,000,849 | |
| | | | | | | | | |
| | | | | |
Total Corporate Bonds | | | 8,143,724 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Sponsored & Agency Obligations 36.2% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| Federal Farm Credit Bank, 3.88%, 08/25/11 | | | 750,000 | | | | 757,913 | |
| Federal Home Loan Mortgage Corp. | | | | | | | | |
| 2.88%, 04/30/10 | | | 2,000,000 | | | | 1,990,048 | |
| 2.88%, 11/23/10 | | | 1,500,000 | | | | 1,494,305 | |
| U.S. Treasury Notes | | | | | | | | |
| 4.75%, 02/15/10 | | | 10,000,000 | | | | 10,409,380 | |
| 4.50%, 05/15/10 | | | 9,000,000 | | | | 9,428,202 | |
| 2.00%, 09/30/10 | | | 3,000,000 | | | | 3,027,891 | |
| | | | | | | | | |
| | | | | |
Total U.S. Government Sponsored & Agency Obligations | | | 27,107,739 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 5.1% |
| | | | | | | | | |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $3,821,565, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $3,897,971 | | | 3,821,540 | | | | 3,821,540 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $75,972,629) (c) — 99.6% | | | 74,598,964 | |
Other assets in excess of liabilities — 0.4% | | | | | | | 265,072 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 74,864,036 | |
| | | | | |
| | |
| (a) | | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined by Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. |
| |
| (b) | | Step Bond: Coupon rate is set for an initial period and then increased to a higher coupon rate at a specified date. The rate shown is the rate in effect on October 31, 2008. |
| |
| (c) | | See notes to statements of investments for tax unrealized appreciation / (depreciation) of securities. |
| | |
| FHLMC | | Federal Home Loan Mortgage Corp. |
| |
| REMICS | | Real Estate Mortgage Investment Conduit |
The accompanying notes are an integral part of these financial statements.
160 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Short Duration Bond
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $72,151,089) | | | $ | 70,777,424 | |
| Repurchase agreements, at value and cost | | | | 3,821,540 | |
| | | | | | |
| Total Investments | | | | 74,598,964 | |
| | | | | | |
| Interest receivable | | | | 534,277 | |
| Receivable for capital shares issued | | | | 5,213 | |
| Prepaid expenses and other assets | | | | 43,596 | |
| | | | | | |
| Total Assets | | | | 75,182,050 | |
| | | | | | |
Liabilities: | | | | | |
| Distributions payable | | | | 4,985 | |
| Payable for capital shares redeemed | | | | 253,419 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 20,016 | |
| Fund administration fees | | | | 11,140 | |
| Distribution fees | | | | 15,805 | |
| Administrative servicing fees | | | | 2,004 | |
| Trustee fees | | | | 186 | |
| Compliance program costs (Note 3) | | | | 246 | |
| Custodian fees | | | | 94 | |
| Other | | | | 10,119 | |
| | | | | | |
| Total Liabilities | | | | 318,014 | |
| | | | | | |
Net Assets | | | $ | 74,864,036 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 79,280,805 | |
| Accumulated undistributed net investment loss | | | | (39,496 | ) |
| Accumulated net realized losses from investment transactions | | | | (3,003,608 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (1,373,665 | ) |
| | | | | | |
Net Assets | | | $ | 74,864,036 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 835,647 | |
| Class C Shares | | | | 222,875 | |
| Institutional Class Shares | | | | 864,574 | |
| Service Class Shares | | | | 61,077,709 | |
| IRA Class Shares | | | | 11,863,231 | |
| | | | | | |
| Total | | | $ | 74,864,036 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 161
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Short Duration Bond
| |
| | | | Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 84,809 | |
| Class C Shares | | | | 22,610 | |
| Institutional Class Shares | | | | 87,688 | |
| Service Class Shares | | | | 6,199,382 | |
| IRA Class Shares | | | | 1,203,909 | |
| | | | | | |
| Total | | | | 7,598,398 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 9.85 | |
| Class C Shares (a) | | | $ | 9.86 | |
| Institutional Class Shares | | | $ | 9.86 | |
| Service Class Shares | | | $ | 9.85 | |
| IRA Class Shares | | | $ | 9.85 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 10.08 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 2.25 | % |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
162 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Short Duration Bond
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 2,820,852 | |
| | | | | | |
| Total Income | | | | 2,820,852 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 256,671 | |
| Fund administration fees | | | | 71,079 | |
| Distribution fees Class A | | | | 1,642 | |
| Distribution fees Class C | | | | 1,544 | |
| Distribution fees Service Class | | | | 146,049 | |
| Distribution fees IRA Class | | | | 33,033 | |
| Administrative servicing fees Service Class | | | | 66,712 | |
| Administrative servicing fees IRA Class | | | | 12,287 | |
| Registration and filing fees | | | | 13,328 | |
| Professional fees | | | | 10,262 | |
| Printing fees | | | | 16,777 | |
| Trustee fees | | | | 3,657 | |
| Custodian fees | | | | 6,033 | |
| Other | | | | 20,166 | |
| | | | | | |
| Total expenses before waived expenses | | | | 659,240 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (1,684 | ) |
| Investment advisory fees voluntarily waived | | | | (69,208 | ) |
| | | | | | |
| Net Expenses | | | | 588,348 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 2,232,504 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 104,186 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (848,110 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (743,924 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | 1,488,580 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 163
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Short Duration Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 2,232,504 | | | | $ | 2,923,092 | |
| Net realized gains from investment transactions | | | | 104,186 | | | | | 68,608 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (848,110 | ) | | | | 885,477 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | 1,488,580 | | | | | 3,877,177 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (22,696 | ) | | | | (32,678 | ) |
| Class C | | | | (6,029 | ) | | | | (1,274 | ) |
| Institutional Class | | | | (31,196 | ) | | | | (80,674 | ) |
| Service Class | | | | (1,964,756 | ) | | | | (2,264,357 | ) |
| IRA Class | | | | (446,254 | ) | | | | (672,907 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (2,470,931 | ) | | | | (3,051,890 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 3,008,763 | | | | | (24,522,437 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | 2,026,412 | | | | | (23,697,150 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 72,837,624 | | | | | 96,534,774 | |
| | | | | | | | | | | |
| End of period | | | $ | 74,864,036 | | | | $ | 72,837,624 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment loss at end of period | | | $ | (39,496 | ) | | | $ | (42,538 | ) |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 570,042 | | | | $ | 57,595 | |
| Dividends reinvested | | | | 18,949 | | | | | 23,948 | |
| Cost of shares redeemed (a) | | | | (537,285 | ) | | | | (252,011 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 51,706 | | | | | (170,468 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 558,955 | | | | | 32,771 | |
| Dividends reinvested | | | | 3,069 | | | | | 1,266 | |
| Cost of shares redeemed (a) | | | | (371,888 | ) | | | | (136,165 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 190,136 | | | | | (102,128 | ) |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 163,908 | | | | | 119,234 | |
| Dividends reinvested | | | | 31,134 | | | | | 77,492 | |
| Cost of shares redeemed | | | | (162,609 | ) | | | | (4,726,781 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 32,433 | | | | | (4,530,055 | ) |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 20,538,574 | | | | | 12,800,444 | |
| Dividends reinvested | | | | 1,955,134 | | | | | 2,256,609 | |
| Cost of shares redeemed (a) | | | | (16,766,290 | ) | | | | (27,323,045 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | 5,727,418 | | | | | (12,265,992 | ) |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
164 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Short Duration Bond Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
IRA Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 279,021 | | | | $ | 451,584 | |
| Dividends reinvested | | | | 404,297 | | | | | 623,711 | |
| Cost of shares redeemed (a) | | | | (3,676,248 | ) | | | | (8,529,089 | ) |
| | | | | | | | | | | |
| Total IRA Class Shares | | | | (2,992,930 | ) | | | | (7,453,794 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 3,008,763 | | | | $ | (24,522,437 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 56,521 | | | | | 5,815 | |
| Reinvested | | | | 1,887 | | | | | 2,418 | |
| Redeemed | | | | (53,484 | ) | | | | (25,459 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 4,924 | | | | | (17,226 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 55,244 | | | | | 3,320 | |
| Reinvested | | | | 305 | | | | | 128 | |
| Redeemed | | | | (36,936 | ) | | | | (13,798 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 18,613 | | | | | (10,350 | ) |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 16,219 | | | | | 12,051 | |
| Reinvested | | | | 3,095 | | | | | 7,828 | |
| Redeemed | | | | (16,215 | ) | | | | (477,585 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 3,099 | | | | | (457,706 | ) |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 2,043,528 | | | | | 1,293,743 | |
| Reinvested | | | | 194,491 | | | | | 227,779 | |
| Redeemed | | | | (1,670,134 | ) | | | | (2,759,711 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | 567,885 | | | | | (1,238,189 | ) |
| | | | | | | | | | | |
IRA Class Shares | | | | | | | | | | |
| Issued | | | | 27,647 | | | | | 45,689 | |
| Reinvested | | | | 40,180 | | | | | 62,963 | |
| Redeemed | | | | (365,478 | ) | | | | (862,095 | ) |
| | | | | | | | | | | |
| Total IRA Class Shares | | | | (297,651 | ) | | | | (753,443 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | 296,870 | | | | | (2,476,914 | ) |
| | | | | | | | | | | |
| | |
| (a) | | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 165
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Short Duration Bond Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net
| | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Asset | | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Value,
| | | | | | Gains
| | | | | | | | | | | | | | | | | | | | | Capital | | | Net
| | | | | | Net
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | Beginning
| | | Net
| | | (Losses)
| | | Total
| | | Net
| | | Net
| | | | | | | | | | | | Contributions
| | | Asset
| | | | | | Assets
| | | to Average
| | | to Average
| | | to Average
| | | | | |
| | | | of | | | Investment
| | | from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Redemption
| | | Reverse
| | | from | | | Value, End
| | | Total
| | | at End
| | | Net
| | | Net
| | | Net
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | Fees | | | Stock Split | | | Advisor | | | of Period | | | Return (a)(b) | | | of Period | | | Assets (c) | | | Assets (c) | | | Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended
October 31, 2008 | | | $ | 9 | .97 | | | | 0 | .33 | | | | (0 | .11) | | | | 0 | .22 | | | | (0 | .35) | | | | – | | | | | (0 | .35) | | | | 0 | .01 | | | | – | | | | | – | | | | $ | 9 | .85 | | | | 2 | .28% | | | $ | 835,647 | | | | | 0 | .69% | | | | 3 | .16% | | | | 0 | .79% | | | | 29 | .53% | | |
Year Ended
October 31, 2007 | | | $ | 9 | .87 | | | | 0 | .36 | | | | 0 | .11 | | | | 0 | .47 | | | | (0 | .37) | | | | – | | | | | (0 | .37) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .97 | | | | 4 | .86% | | | $ | 796,804 | | | | | 0 | .70% | | | | 3 | .59% | | | | 0 | .80% | | | | 37 | .81% | | |
Year Ended
October 31, 2006 | | | $ | 9 | .83 | | | | 0 | .30 | | | | 0 | .07 | | | | 0 | .37 | | | | (0 | .33) | | | | – | | | | | (0 | .33) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .87 | | | | 3 | .87% | | | $ | 958,610 | | | | | 0 | .71% | | | | 3 | .14% | | | | 0 | .81% | | | | 28 | .68% | | |
Year Ended
October 31, 2005 | | | $ | 10 | .00 | | | | 0 | .25 | | | | (0 | .15) | | | | 0 | .10 | | | | (0 | .27) | | | | – | | | | | (0 | .27) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .83 | | | | 0 | .98% | | | $ | 1,016,840 | | | | | 0 | .78% | | | | 2 | .40% | | | | 0 | .88% | | | | 292 | .03% | | |
Year Ended
October 31, 2004 | | | $ | 10 | .00 | | | | 0 | .23 | | | | (0 | .07) | | | | 0 | .16 | | | | (0 | .23) | | | | (0 | .01) | | | | (0 | .24) | | | | – | | | | | 0 | .01(g) | | | | 0 | .07 | | | $ | 10 | .00 | | | | 2 | .35%(h) | | | $ | 1,584,663 | | | | | 0 | .86% | | | | 2 | .08% | | | | 0 | .96% | | | | 129 | .96% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended
October 31, 2008 | | | $ | 9 | .99 | | | | 0 | .28 | | | | (0 | .11) | | | | 0 | .17 | | | | (0 | .30) | | | | – | | | | | (0 | .30) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .86 | | | | 1 | .68% | | | $ | 222,875 | | | | | 1 | .21% | | | | 2 | .64% | | | | 1 | .31% | | | | 29 | .53% | | |
Year Ended
October 31, 2007 | | | $ | 9 | .88 | | | | 0 | .30 | | | | 0 | .13 | | | | 0 | .43 | | | | (0 | .32) | | | | – | | | | | (0 | .32) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .99 | | | | 4 | .47% | | | $ | 39,914 | | | | | 1 | .21% | | | | 3 | .12% | | | | 1 | .31% | | | | 37 | .81% | | |
Year Ended
October 31, 2006 | | | $ | 9 | .83 | | | | 0 | .27 | | | | 0 | .07 | | | | 0 | .34 | | | | (0 | .29) | | | | – | | | | | (0 | .29) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .88 | | | | 3 | .52% | | | $ | 141,729 | | | | | 1 | .18% | | | | 2 | .71% | | | | 1 | .28% | | | | 28 | .68% | | |
Period Ended
October 31, 2005 (f) | | | $ | 9 | .91 | | | | 0 | .13 | | | | (0 | .06) | | | | 0 | .07 | | | | (0 | .15) | | | | – | | | | | (0 | .15) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .83 | | �� | | 0 | .76% | | | $ | 1,009 | | | | | 1 | .40% | | | | 2 | .08% | | | | 1 | .40% | | | | 292 | .03% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) For the period from February 28, 2005 (commencement of operations) through October 31, 2005.
(g) Per share numbers prior to April 16, 2004 have been adjusted to reflect a 1.00620 for reverse stock split.
(h) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.63%
(i) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.97%
(j) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.54%
(k) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.58%
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
166 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Short Duration Bond Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net
| | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Asset | | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Value,
| | | | | | Gains
| | | | | | | | | | | | | | | | | | | | | Capital | | | Net
| | | | | | Net
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | Beginning
| | | Net
| | | (Losses)
| | | Total
| | | Net
| | | Net
| | | | | | | | | | | | Contributions
| | | Asset
| | | | | | Assets
| | | to Average
| | | to Average
| | | to Average
| | | | | |
| | | | of | | | Investment
| | | from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Redemption
| | | Reverse
| | | from | | | Value, End
| | | Total
| | | at End
| | | Net
| | | Net
| | | Net
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | Fees | | | Stock Split | | | Advisor | | | of Period | | | Return (a)(b) | | | of Period | | | Assets (c) | | | Assets (c) | | | Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .98 | | | | 0 | .34 | | | | (0 | .09) | | | | 0 | .25 | | | | (0 | .37) | | | | – | | | | | (0 | .37) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .86 | | | | 2 | .54% | | | $ | 864,574 | | | | | 0 | .45% | | | | 3 | .37% | | | | 0 | .54% | | | | 29 | .53% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .87 | | | | 0 | .35 | | | | 0 | .12 | | | | 0 | .47 | | | | (0 | .36) | | | | – | | | | | (0 | .36) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .98 | | | | 4 | .81% | | | $ | 844,382 | | | | | 0 | .85% | | | | 3 | .44% | | | | 0 | .95% | | | | 37 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .83 | | | | 0 | .33 | | | | 0 | .07 | | | | 0 | .40 | | | | (0 | .36) | | | | – | | | | | (0 | .36) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .87 | | | | 4 | .13% | | | $ | 5,354,369 | | | | | 0 | .46% | | | | 3 | .38% | | | | 0 | .56% | | | | 28 | .68% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .00 | | | | 0 | .27 | | | | (0 | .15) | | | | 0 | .12 | | | | (0 | .29) | | | | – | | | | | (0 | .29) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .83 | | | | 1 | .24% | | | $ | 6,741,317 | | | | | 0 | .49% | | | | 2 | .46% | | | | 0 | .59% | | | | 292 | .03% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .00 | | | | 0 | .27 | | | | (0 | .07) | | | | 0 | .20 | | | | (0 | .27) | | | | (0 | .01) | | | | (0 | .28) | | | | – | | | | | 0 | .01(g) | | | | 0 | .07 | | | $ | 10 | .00 | | | | 2 | .69%(i) | | | $ | 72,995,977 | | | | | 0 | .54% | | | | 2 | .63% | | | | 0 | .64% | | | | 129 | .96% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .98 | | | | 0 | .31 | | | | (0 | .10) | | | | 0 | .21 | | | | (0 | .34) | | | | – | | | | | (0 | .34) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .85 | | | | 2 | .06% | | | $ | 61,077,709 | | | | | 0 | .81% | | | | 3 | .00% | | | | 0 | .90% | | | | 29 | .53% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .87 | | | | 0 | .35 | | | | 0 | .16 | | | | 0 | .51 | | | | (0 | .40) | | | | – | | | | | (0 | .40) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .98 | | | | 5 | .22% | | | $ | 56,176,559 | | | | | 0 | .44% | | | | 3 | .88% | | | | 0 | .54% | | | | 37 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .83 | | | | 0 | .30 | | | | 0 | .07 | | | | 0 | .37 | | | | (0 | .33) | | | | – | | | | | (0 | .33) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .87 | | | | 3 | .78% | | | $ | 67,817,068 | | | | | 0 | .79% | | | | 3 | .05% | | | | 0 | .89% | | | | 28 | .68% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .00 | | | | 0 | .24 | | | | (0 | .15) | | | | 0 | .09 | | | | (0 | .26) | | | | – | | | | | (0 | .26) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .83 | | | | 0 | .95% | | | $ | 80,817,644 | | | | | 0 | .83% | | | | 2 | .31% | | | | 0 | .93% | | | | 292 | .03% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .00 | | | | 0 | .22 | | | | (0 | .07) | | | | 0 | .15 | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | | – | | | | | 0 | .01(g) | | | | 0 | .07 | | | $ | 10 | .00 | | | | 2 | .26%(j) | | | $ | 263,900,278 | | | | | 0 | .97% | | | | 2 | .20% | | | | 1 | .07% | | | | 129 | .96% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) For the period from February 28, 2005 (commencement of operations) through October 31, 2005.
(g) Per share numbers prior to April 16, 2004 have been adjusted to reflect a 1.00620 for reverse stock split.
(h) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.63%
(i) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.97%
(j) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.54%
(k) The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.58%
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 167
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Short Duration Bond Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net
| | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Asset | | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Value,
| | | | | | Gains
| | | | | | | | | | | | | | | | | | | | | Capital | | | Net
| | | | | | Net
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | Beginning
| | | Net
| | | (Losses)
| | | Total
| | | Net
| | | Net
| | | | | | | | | | | | Contributions
| | | Asset
| | | | | | Assets
| | | to Average
| | | to Average
| | | to Average
| | | | | |
| | | | of | | | Investment
| | | from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Redemption
| | | Reverse
| | | from | | | Value, End
| | | Total
| | | at End
| | | Net
| | | Net
| | | Net
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | Fees | | | Stock Split | | | Advisor | | | of Period | | | Return (a)(b) | | | of Period | | | Assets (c) | | | Assets (c) | | | Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IRA Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 9 | .98 | | | | 0 | .30 | | | | (0 | .09) | | | | 0 | .21 | | | | (0 | .34) | | | | – | | | | | (0 | .34) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .85 | | | | 2 | .08% | | | $ | 11,863,231 | | | | | 0 | .79% | | | | 3 | .01% | | | | 0 | .89% | | | | 29 | .53% | | |
| Year Ended October 31, 2007 | | | $ | 9 | .87 | | | | 0 | .35 | | | | 0 | .13 | | | | 0 | .48 | | | | (0 | .37) | | | | – | | | | | (0 | .37) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .98 | | | | 4 | .94% | | | $ | 14,979,965 | | | | | 0 | .71% | | | | 3 | .58% | | | | 0 | .82% | | | | 37 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .83 | | | | 0 | .28 | | | | 0 | .08 | | | | 0 | .36 | | | | (0 | .32) | | | | – | | | | | (0 | .32) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .87 | | | | 3 | .73% | | | $ | 22,262,998 | | | | | 0 | .84% | | | | 2 | .99% | | | | 0 | .94% | | | | 28 | .68% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .00 | | | | 0 | .24 | | | | (0 | .15) | | | | 0 | .09 | | | | (0 | .26) | | | | – | | | | | (0 | .26) | | | | – | | | | | – | | | | | – | | | | $ | 9 | .83 | | | | 0 | .90% | | | $ | 43,888,211 | | | | | 0 | .83% | | | | 2 | .21% | | | | 0 | .93% | | | | 292 | .03% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .00 | | | | 0 | .23 | | | | (0 | .07) | | | | 0 | .16 | | | | (0 | .23) | | | | (0 | .01) | | | | (0 | .24) | | | | – | | | | | 0 | .01(g) | | | | 0 | .07 | | | $ | 10 | .00 | | | | 2 | .30%(k) | | | $ | 369,014,026 | | | | | 0 | .91% | | | | 2 | .29% | | | | 1 | .01% | | | | 129 | .96% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from February 28, 2005 (commencement of operations) through October 31, 2005. |
| (g) | Per share numbers prior to April 16, 2004 have been adjusted to reflect a 1.00620 for reverse stock split. |
| (h) | The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.63% |
| (i) | The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.97% |
| (j) | The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.54% |
| (k) | The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.58% |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
168 Annual Report 2008
Nationwide Short Duration Bond Fund (Continued)
Notes to Financial Statements
October 31, 2008
1. Organization
Nationwide Mutual Funds (the “Trust”) is an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust dated October 28, 2004, as amended to date. The Trust, originally created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, was redomesticated as a Delaware statutory trust on February 28, 2005. The redomestication was a change in statutory status and did not affect the operations of the Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2008, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. The Trust operates thirty-six (36) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the eleven (11) funds listed below (each, a “Fund”; collectively, the “Funds”):
| | |
| | - | Nationwide International Value Fund (“International Value”) |
| | - | Nationwide Large Cap Value (“Large Cap Value”) |
| | - | Nationwide Micro Cap Equity Fund (“Micro Cap Equity”) |
| | - | Nationwide Mid Cap Growth Fund (“Mid Cap Growth”) |
| | - | Nationwide U.S. Small Cap Value Fund (“U.S. Small Cap Value”) |
| | - | Nationwide Value Fund (“Value”) |
| | - | Nationwide Value Opportunities Fund (“Value Opportunities”) |
| | - | Nationwide Bond Fund (“Bond”) |
| | - | Nationwide Enhanced Income Fund (“Enhanced Income”) |
| | - | Nationwide Government Bond Fund (“Government Bond”) |
| | - | Nationwide Short Duration Bond Fund (“Short Duration Bond”) |
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates and those differences could be material.
Securities for which market quotations are readily available are valued at current market value as of “Valuation Time.” Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern time). Equity securities are valued at the last quoted sale price or, if there is no sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Prices are taken from the primary market or exchange in which each security trades. Investment companies are valued at net asset value (“NAV”) as reported by such company.
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service, the use of which has been approved by the Board of Trustees. Short-term
Annual Report 2008
Notes to Financial Statements (Continued)
October 31, 2008
debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Funds’ investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees. The “Fair Value” of these securities is determined in good faith by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a “Fair Value” may include the following non-exclusive list of acceptable methods: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the yield-to-maturity for debt issues; or (iv) a consolidation of the methods. The Board of Trustees’ Valuation & Operations Committee considers a non-exclusive list of factors to arrive at the appropriate method of determining “Fair Value.” For example, fair value determinations are required for securities whose value is affected by a “significant” event that materially affects the value of a domestic or foreign security which occurs subsequent to the time of the close of the principal market on which such domestic or foreign security trades and before the Valuation Time (i.e., a “subsequent event”). Typically, this will involve events occurring after the close of a foreign market on which a security trades and before the next Valuation Time.
The Funds holding foreign equity securities (the “Foreign Equity Funds”) value foreign securities at fair value in the circumstances described below. Generally, trading in foreign securities markets is completed each day at various times prior to the Valuation Time. Due to the time differences between the closings of the relevant foreign securities exchanges and the Valuation Time for the Foreign Equity Funds, the Foreign Equity Funds will fair value their foreign investments when it is determined that the market quotations for the foreign investments either are not readily available or are unreliable and, therefore, do not represent fair value. When the fair value prices are utilized, these prices will attempt to reflect the impact of the U.S. financial markets’ perceptions and trading activities on the Foreign Equity Funds’ foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Trustees has determined that movements in relevant indices or other appropriate market indicators, after the close of the foreign securities exchanges, may demonstrate that market quotations are unreliable, and may trigger fair value pricing for certain securities. Consequently, fair valuation of portfolio securities may occur on a daily basis.
| |
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. The Funds may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
| |
| (c) | Foreign Currency Transactions |
The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the
170 Annual Report 2008
results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.
| |
| (d) | Forward Foreign Currency Contracts |
Certain Funds may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date.
Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging their existing portfolio securities or securities that the Funds intend to purchase against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes; however, in those instances, the aggregate initial margin and premiums required to establish a Fund’s positions may not exceed 5% of that Fund’s NAV after taking into account unrealized profits and unrealized losses on any such contract it has entered into.
Upon entering into a futures contract, each of the Funds is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin” payments, are made each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. A gain or loss equal to the variation margin is recognized on a daily basis. Futures contracts are valued daily at their last quoted sale price.
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future.
Should market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions for hedging purposes involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the value of the underlying hedged assets.
| |
| (f) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
To generate additional income, each of the Funds may lend their respective portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions provided that (1) the borrower delivers cash or securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter shall require the borrower to mark-to-market the collateral on a daily basis so that the
2008 Annual Report 171
Notes to Financial Statements (Continued)
October 31, 2008
market value of such collateral does not fall below 100% of the value of securities loaned. The Funds receive payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Funds’ investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank serves as custodian for the securities lending program of the Funds. JPMorgan Chase Bank receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
As of October 31, 2008, the following Fund(s) had securities with the following values on loan:
| | | | | | | | | | | | | |
| | | | | Value of
| | Value of
| | |
| | | Fund | | Loaned Securities | | Collateral | | |
| |
| | | Micro Cap Equity | | $ | 316,656 | | | $ | 318,786 | | | |
| |
| |
| |
| (h) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for International Value, Large Cap Value, Mid Cap Growth, Micro Cap Equity, U.S. Small Cap Value, Value, and Value Opportunities and are declared daily and paid monthly for all other Funds. For all Funds, distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary in nature. Permanent differences (i.e., reclassification of market discounts, foreign gain/loss, and paydowns) are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the respective Funds. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, these excesses are reported as distributions of paid-in-capital.
It is the policy of each Fund to qualify or to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
The Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable) and an increase in a deferred tax liability (or a reduction in a deferred tax asset). Adoption of FIN 48 was required no later than the last business day of the first financial statement reporting period for fiscal years beginning after
172 Annual Report 2008
December 15, 2006, and is to be applied to all open tax years as of the effective date. Accordingly, the Funds were required to implement FIN 48 in their NAV per share calculations on April 30, 2008. Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. Each Fund files U.S. federal income tax returns and, if applicable, returns in various state or foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service. The adoption of FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to each Fund’s NAV and financial statements.
| |
| (j) | Allocation of Expenses, Income, and Gains and Losses |
Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the Trust. For each Fund, the method for allocating income, fund level expenses, and realized and unrealized gains or losses is based on the fair value of shares outstanding relative to net assets. Under this method, each class of shares participates based on the total NAV of that class’s shares in proportion to the total net assets of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA” or the “Adviser”) manages the investment of the assets and supervises the daily business affairs of the Funds (as shown in the table below). NFA is a wholly-owned subsidiary of Nationwide Financial Services, Inc. (“NFS”), whose parent company is Nationwide Corporation. NFA provides investment management evaluation services in initially selecting and monitoring, on an ongoing basis, the performance of the subadviser for each of the Funds. The subadviser manages each of its respective Fund’s investments and has the responsibility for making all investment decisions for the applicable Funds.
The subadviser for each Fund is as follows:
| | | | | | | |
| Fund | | Adviser | | Subadviser | | |
| |
| International Value | | NFA | | AllianceBernstein LP | | |
| |
| |
| Large Cap Value | | NFA | | NorthPointe Capital, LLC | | |
| |
| |
| Micro Cap Equity | | NFA | | NorthPointe Capital, LLC | | |
| |
| |
| Mid Cap Growth | | NFA | | NorthPointe Capital, LLC | | |
| |
| |
| U.S. Small Cap Value | | NFA | | Dimensional Fund Advisors LP | | |
| |
| |
| Value | | NFA | | Diamond Hill Capital Management, Inc. | | |
| |
| |
| Value Opportunities | | NFA | | NorthPointe Capital, LLC | | |
| |
| |
| Bond | | NFA | | Nationwide Asset Management, LLC (“NWAM”) (a) | | |
| |
| |
| Enhanced Income | | NFA | | Morley Capital Management, Inc. | | |
| |
| |
| Government Bond | | NFA | | NWAM (a) | | |
| |
| |
| Short Duration Bond | | NFA | | Morley Capital Management, Inc. | | |
| |
| |
| | |
| (a) | | Effective January 1, 2008, NWAM, an affiliate of NFA, became subadviser to Money Market. |
Under the terms of the Investment Advisory Agreement, each Fund pays NFA an investment advisory fee based on that Fund’s average daily net assets. From these fees, pursuant to the subadvisory agreement, NFA pays fees
2008 Annual Report 173
Notes to Financial Statements (Continued)
October 31, 2008
to the subadviser. For the year ended October 31, 2008, the Funds paid investment advisory fees to NFA according to the schedule below:
| | | | | | | | | | |
| | | | | Total
| | |
| Fund | | Fee Schedule | | Fees | | |
| |
| International Value | | All Assets | | | 0.85 | % | | | |
| |
| |
| Large Cap Value | | Up to $100 million | | | 0.75 | % | | | |
| | | On $100 million and more | | | 0.70 | % | | | |
| |
| |
| Micro Cap Equity | | All Assets | | | 1.25 | % | | | |
| |
| |
| Mid Cap Growth | | Up to $250 million | | | 0.75 | % | | | |
| | | $250 million up to $1 billion | | | 0.725 | % | | | |
| | | $1 billion up to $2 billion | | | 0.70 | % | | | |
| | | $2 billion up to $5 billion | | | 0.675 | % | | | |
| | | On $5 billion and more | | | 0.65 | % | | | |
| |
| |
| U.S. Small Cap Value | | All Assets | | | 0.95 | % | | | |
| |
| |
| Value | | All Assets | | | 0.65 | % | | | |
| |
| |
| Value Opportunities | | Up to $250 million | | | 0.70 | % | | | |
| | | $250 million up to $1 billion | | | 0.675 | % | | | |
| | | $1 billion up to $2 billion | | | 0.65 | % | | | |
| | | $2 billion up to $5 billion | | | 0.625 | % | | | |
| | | On $5 billion and more | | | 0.60 | % | | | |
| |
| |
| Bond, Government Bond | | Up to $250 million | | | 0.50 | % | | | |
| | | $250 million up to $1 billion | | | 0.475 | % | | | |
| | | $1 billion up to $2 billion | | | 0.45 | % | | | |
| | | $2 billion up to $5 billion | | | 0.425 | % | | | |
| | | On $5 billion and more | | | 0.40 | % | | | |
| |
| |
| Enhanced Income and Short Duration Bond(a) | | Up to $500 million | | | 0.35 | % | | | |
| | | $500 million up to $1 billion | | | 0.34 | % | | | |
| | | $1 billion up to $3 billion | | | 0.325 | % | | | |
| | | $3 billion up to $5 billion | | | 0.30 | % | | | |
| | | $5 billion up to $10 billion | | | 0.285 | % | | | |
| | | $10 billion and more | | | 0.275 | % | | | |
| |
| |
| | |
| (a) | | NFA has agreed to voluntarily waive 0.10% of the advisory fee for Short Duration Bond until further written notice to the shareholders. |
From such fees, pursuant to the subadvisory agreements, NFA paid the subadvisers $1,324,271,of which $283,108 was paid to affiliated subadvisers, for the year ended October 31, 2008.
NFA and cetain of the Funds have entered into written Expense Limitation Agreements, that limit operating expenses (excluding any taxes, interest, brokerage fees, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by the Fund in connection with any merger or reorganization and may exclude other non-routine
174 Annual Report 2008
expenses not incurred in the ordinary course of the Fund’s business) from exceeding the amounts listed in the table below until at least May 1, 2009:
| | | | | | | | | | | | | |
| | | Fund | | Classes | | Amount | | |
| |
| | | International Value | | | All Classes | | | | 1.00% | | | |
| |
| |
| | | Large Cap Value | | | All Classes | | | | 1.15% | | | |
| |
| |
| | | Micro Cap Equity | | | All Classes | | | | 1.65% | | | |
| |
| |
| | | Mid Cap Growth | | | All Classes | | | | 1.15% | | | |
| |
| |
| | | U.S. Small Cap Value | | | All Classes | | | | 1.09% | | | |
| |
| |
| | | Value | | | All Classes | | | | 0.85% | | | |
| |
| |
| | | Value Opportunities | | | All Classes | | | | 1.10% | | | |
| |
| |
| | | Enhanced Income | | | All Classes | | | | 0.45% | | | |
| |
| |
| | | Short Duration Bond | | | All Classes | | | | 0.55% | | | |
| |
| |
NFA may request and receive reimbursement from the Funds for advisory fees waived and other expenses reimbursed by NFA pursuant to the Expense Limitation Agreement at a date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the Class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Except as provided for in the Expense Limitation Agreements, reimbursement of amounts previously waived or assumed by NFA is not permitted.
As of October 31, 2008, the cumulative potential reimbursements of the following Funds, based on reimbursements which expire within three years from the fiscal year in which the corresponding reimbursements to the Fund were made for expenses reimbursed by NFA, would be:
| | | | | | | | | | | | | | | |
| | | | | | | Amount
| | |
| | | Amount Fiscal Year
| | Amount
| | Fiscal Year
| | |
| Fund | | 2006 | | Fiscal Year 2007 | | 2008 | | |
| |
| International Value | | $ | N/A | | | $ | N/A | | | $ | 70,312 | (a) | | |
| |
| |
| Large Cap Value | | | — | | | | 638 | | | | 7,575 | | | |
| |
| |
| Micro Cap Equity | | | — | | | | 2,816 | | | | 44,254 | | | |
| |
| |
| Mid Cap Growth | | | 27,464 | | | | 42,826 | | | | 50,328 | | | |
| |
| |
| U.S. Small Cap Value | | | N/A | | | | N/A | | | | 50,475 | (a) | | |
| |
| |
| Value | | | N/A | | | | N/A | | | | 36,145 | (b) | | |
| |
| |
| Value Opportunities | | | 47,791 | | | | 40.325 | | | | 37,345 | | | |
| |
| |
| Enhanced Income | | | — | | | | — | | | $ | 115,330 | | | |
| |
| |
| Short Duration Bond | | | — | | | | — | | | | — | | | |
| |
| |
| | |
| (a) | | For the period December 21, 2007 (commencement of operations) to October 31, 2008. |
| |
| (b) | | For the period February 28, 2008 (commencement of operations) to October 31, 2008. |
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Funds’ principal underwriter, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. NFD is a wholly-owned subsidiary of NFS Distributors Inc.
2008 Annual Report 175
Notes to Financial Statements (Continued)
October 31, 2008
(“NFSDI”). These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A
| | Class B
| | Class C
| | Class R
| | Class X
| | Class Y
| | Service Class
| | IRA
| | |
| Fund | | Shares | | Shares | | Shares | | Shares | | Shares | | Shares | | Shares | | Class | | |
| |
| International Value | | | 0.25% | | | | N/A | | | | 1.00% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| Large Cap Value | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| Micro Cap Equity | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| Mid Cap Growth | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| U.S. Small Cap Value | | | 0.25% | | | | N/A | | | | 1.00% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| Value | | | 0.25% | | | | N/A | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| Value Opportunities | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| Bond | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | 0.85% | | | | 0.85% | | | | N/A | | | | N/A | | | |
| |
| |
| Enhanced Income | | | 0.25% | | | | N/A | | | | N/A | | | | 0.50% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
| |
| |
| Government Bond | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | 0.85% | | | | 0.85% | | | | N/A | | | | N/A | | | |
| |
| |
| Short Duration Bond | | | 0.25% | | | | N/A | | | | 0.75% | | | | N/A | | | | N/A | | | | N/A | | | | 0.25% | | | | 0.25% | | | |
| |
| |
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A and Class D shares. These fees are deducted from and are not included in proceeds from sales of Class A and Class D shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A and Class D shares of the Funds. NFD also receives fees for services as principal underwriter for Class B and Class X shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B and Class X shares, which may cause the current value of a shareholder’s account to fall below the total purchase payments. The CDSC, if applicable, will be imposed on redemptions of Class B and Class X shares made within six years of the purchase. Class C and Class Y shares have a CDSC fee of 1% imposed on redemptions of Class C and Class Y shares of the Funds made within one year of purchase. For the year ended October 31, 2008, NFD received commissions of $81,121 from front-end sales charges of Class A and Class D shares and from CDSC fees from Class , Class C, Class X, and Class Y shares of the Funds, of which $24,991 was re-allowed to affiliated broker-dealers of the Funds.
Under the terms of a Fund Administration and Transfer Agency Agreement, Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFSDI, provides various administrative and accounting services for the Funds, and serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. The fees for the services provided under this agreement are calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees are then allocated proportionately among all funds within the Trust in relation to the average daily net assets of each Fund and are paid to NFM.
| | | | | | | | | |
| | | Combined Fee Schedule* | | | | |
| |
| | | Up to $1 billion | | | 0.26% | | | |
| |
| |
| | | $1 billion to $3 billion | | | 0.19% | | | |
| |
| |
| | | $3 billion to $4 billion | | | 0.15% | | | |
| |
| |
| | | $4 billion to $5 billion | | | 0.08% | | | |
| |
| |
| | | $5 billion to $10 billion | | | 0.05% | | | |
| |
| |
| | | $10 billion to $12 billion | | | 0.03% | | | |
| |
| |
| | | $12 billion or more | | | 0.02% | | | |
| |
| |
176 Annual Report 2008
| | |
| * | | The assets of the Nationwide Investor Destinations Aggressive, Nationwide Investor Destinations Moderately Aggressive, Nationwide Investor Destinations Moderate, Nationwide Investor Destinations Moderately Conservative and Nationwide Investor Destinations Conservative Funds (collectively, the “Investor Destinations Funds”) and the Nationwide Destination 2010, Nationwide Destination 2015, Nationwide Destination 2020, Nationwide Destination 2025, Nationwide Destination 2030, Nationwide Destination 2035, Nationwide Destination 2040, Nationwide Destination 2045, Nationwide Destination 2050, and Nationwide Retirement Income Funds (collectively, the “Target Destination Funds”) are excluded from the Trust asset level amount in order to calculate this asset based fee. The Investor Destinations Funds and the Target Destination Funds do not pay any part of this fee. |
NFA and NFM have entered into agreements with Citi Fund Services Ohio, Inc. (“Citi”), pursuant to which Citi provides sub-administration and sub-transfer agency services, respectively, to the Funds.
NFA and Citi have agreed to designate certain sub-transfer agency agreements NFA enters into with respect to the Funds as “Qualifying Sub-TA Agreements.” With respect to Qualifying Sub-TA Agreements, Citi will credit to NFA an amount equal to the lesser of (i) the actual amount NFA is charged by the sub-transfer agent under the applicable Qualifying Sub-TA Agreement or (ii) $10 per investor account; however, the aggregate amount paid with regard to all Qualifying Sub-TA Agreements, regardless of whether option (i) or (ii) applies, shall not exceed $200,000 per annum. Citi will calculate and credit such amounts to NFA’s fees on a monthly basis. All amounts will be credited to each applicable Fund on a monthly basis.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, NFS and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquiries regarding the Funds; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Class D, Class R, and Institutional Service Class shares of each of the Funds (except for Short Duration Bond). For Short Duration Bond, these fees are based on an annual rate of up to 0.25% of the average daily net assets of the IRA Class and Service Class shares.
For the year ended October 31, 2008, NFS received the following amounts in administrative services fees from each Fund:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | International Value | | $ | 130,708 | | | |
| |
| |
| | | Large Cap Value | | | 16,202 | | | |
| |
| |
| | | Micro Cap Equity | | | 41 | | | |
| |
| |
| | | Mid Cap Growth | | | — | | | |
| |
| |
| | | U.S. Small Cap Value | | | 21,442 | | | |
| |
| |
| | | Value | | | — | | | |
| |
| |
| | | Value Opportunities | | | 4,096 | | | |
| |
| |
| | | Enhanced Income | | | 741 | | | |
| |
| |
| | | Bond | | | 46,513 | | | |
| |
| |
| | | Government Bond | | | 136,029 | | | |
| |
| |
| | | Short Duration Bond | | | 67,121 | | | |
| |
| |
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, by and among NFA, the Audit Committee of the Board of Trustees and the Trust, the Board of Trustees has agreed to reimburse NFA for certain costs related to the Funds’ portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program
2008 Annual Report 177
Notes to Financial Statements (Continued)
October 31, 2008
subject to the pre-approval of the Trust’s Audit Committee. For the year ended October 31, 2008, the Funds’ portion of such costs amounted to $4,577.
As of October 31, 2008, NFA or affiliates of NFA directly, owned the percentage indicated below of the shares outstanding of the applicable Fund:
| | | | | | | | | |
| | | Fund | | % of Shares Outstanding Owned | | |
| |
| | | International Value | | | 0.03% | | | |
| |
| |
| | | Mid Cap Growth | | | 51.95% | | | |
| |
| |
| | | U.S. Small Cap Value | | | 0.19% | | | |
| |
| |
| | | Value | | | 57.27% | | | |
| |
| |
4. Short-Term Trading Fees
The Funds (except Enhanced Income) assess a 2.00% redemption fee on all classes of shares that are purchased and are sold or exchanged within 30 calendar days of purchase (within 90 calendar days for Mid Cap Growth and within seven calendar days for Bond, Government Bond and Short Duration). The redemption fee, if any, is paid directly to the applicable Fund class and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.
For the year ended October 31, 2008, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Class
| | Class
| | Class
| | Institutional
| | Institutional
| | Service
| | IRA
| | | | |
| Fund | | A | | B | | C | | D | | R | | X | | Y | | Class | | Service Class | | Class | | Class | | | | |
| |
| International Value | | $ | 398 | | | | N/A | | | $ | 40 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | $ | — | | | $ | — | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Large Cap Value | | | 39 | | | $ | 1 | | | | 105 | | | | N/A | | | $ | 11 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Micro Cap Equity | | | 7,397 | | | | 39 | | | | 610 | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | — | | | | — | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Mid Cap Growth | | | 17 | | | | — | | | | 669 | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| U.S. Small Cap Value | | | — | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | — | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Value | | | — | | | | N/A | | | | — | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Value Opportunities | | | 30 | | | | 8 | | | | 22 | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Bond | | | — | | | | — | | | | 34 | | | $ | 2 | | | | — | | | $ | — | | | $ | 1 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Government Bond | | | 20 | | | | 261 | | | | — | | | | 807 | | | | — | | | | 2 | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Short Duration Bond | | | 696 | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | $ | — | | | $ | — | | | | | | | |
| |
| |
178 Annual Report 2008
For the year ended October 31, 2007, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Class
| | Class
| | Class
| | Institutional
| | Institutional
| | Service
| | IRA
| | | | |
| Fund | | A | | B | | C | | D | | R | | X | | Y | | Class | | Service Class | | Class | | Class | | | | |
| |
| International Value (a) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Large Cap Value | | $ | 4,389 | | | $ | — | | | $ | 3 | | | | N/A | | | $ | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Micro Cap Equity | | | 1,467 | | | | 3 | | | | 507 | | | | N/A | | | | — | | | | N/A | | | | N/A | | | $ | 413 | | | $ | — | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Mid Cap Growth | | | 3,079 | | | | — | | | | — | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| U.S. Small Cap Value (a) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Value (b) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Value Opportunities | | | 346 | | | | 15 | | | | — | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Bond | | | 614 | | | | 50 | | | | — | | | $ | 43 | | | | — | | | $ | — | | | $ | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Government Bond | | | 3 | | | | — | | | | — | | | | 512 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | | | | |
| |
| |
| Short Duration Bond | | | 63 | | | | N/A | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | $ | 32 | | | $ | 186 | | | | | | | |
| |
| |
(a) The Fund commenced operations on December 21, 2007.
(b) The Fund commenced operations on February 28, 2008.
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Funds’ custodian bank, permitting the Trust to borrow up to $100,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. The interest costs, if any, would be shown on the Statement of Operations. No compensating balances are required under the terms of the line of credit. The line of credit is renewed annually, expiring on July 23, 2009, with a commitment fee of 0.07% per year on $100,000,000. There are three (3) other lenders participating in this arrangement. Advances taken by the Funds under this arrangement would be primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. There were no borrowings under this line of credit during the year ended October 31, 2008.
The Trust’s custodian bank has agreed to reduce the bank’s fees (earnings credits) when the Funds of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those funds that use DDAs based on the number of open shareholder accounts in each Fund. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for the funds that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
2008 Annual Report 179
Notes to Financial Statements (Continued)
October 31, 2008
6. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | International Value | | $ | 207,638,710 | | | $ | 18,931,314 | | | |
| |
| |
| | | Large Cap Value | | | 30,054,325 | | | | 42,044,349 | | | |
| |
| |
| | | Micro Cap Equity | | | 27,612,844 | | | | 52,519,878 | | | |
| |
| |
| | | Mid Cap Growth | | | 4,085,411 | | | | 6,825,718 | | | |
| |
| |
| | | U.S. Small Cap Value | | | 21,349,705 | | | | 3,344,735 | | | |
| |
| |
| | | Value | | | 909,630 | | | | 336,751 | | | |
| |
| |
| | | Value Opportunities | | | 12,961,446 | | | | 15,113,115 | | | |
| |
| |
| | | Bond | | | 57,911,062 | | | | 60,961,138 | | | |
| |
| |
| | | Enhanced Income | | | 131,083,295 | | | | 124,236,293 | | | |
| |
| |
| | | Government Bond | | | 119,095,772 | | | | 106,221,487 | | | |
| |
| |
| | | Short Duration Bond | | | 24,252,810 | | | | 20,039,541 | | | |
| |
| |
Purchases and sales of U.S. Government securities for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Bond | | $ | 26,370,400 | | | $ | 37,339,982 | | | |
| |
| |
| | | Enhanced Income | | | 23,223,984 | | | | 2,257,632 | | | |
| |
| |
| | | Government Bond | | | 63,819,059 | | | | 52,683,273 | | | |
| |
| |
| | | Short Duration Bond | | | 3,767,183 | | | | 2,111,094 | | | |
| |
| |
7. Portfolio Investment Risks
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries.
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and a high price volatility with respect to securities of issuers from developing countries.
8. Indemnifications
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered into Indemnification Agreements with its Trustees and certain of its Officers. Trust Officers receive no compensation from the Trust for serving as its Officers. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum liability under these arrangements is unknown, as this would involve future claims that may be made against the Trust. Based on experience however, the Trust expects that risk of loss to be remote.
180 Annual Report 2008
9. New Accounting Pronouncements
In September 2006, the FASB issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current accounting principles generally accepted in the United States of America from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of October 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about each Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on each Fund’s financial statements and related disclosures.
In September 2008, FASB Staff Position FAS 133-1 and FIN 45-4, “Disclosures about Credit Derivates and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (the “Amendment”) was issued and is effective for annual and interim reporting periods ending after November 15, 2008. The Amendment requires enhanced disclosures regarding a fund’s credit derivatives holdings and hybrid financial instruments containing embedded credit derivatives. Management is currently evaluating what impact the adoption of the Amendment will have on each Fund’s financial statement disclosure.
10. Other
As of the close of business on September 17, 2008, Lehman Brothers Holdings, Inc. was in default of the security lending agreement with Micro Cap Equity and Bond as a result of it’s bankruptcy. Consequently, JPMorgan Chase Bank, as Securities Lending Agent, took possession of the collateral and repurchased the identical securities in the Funds through open market purchases on Setpember 23, 2008. Under Statement of Financial Accounting Standards No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (“FAS 140”), the criteria for sales accounting have been met. As a result of recording the sale of the original securities out on loan at market value and the repurchase of the identical securities into the Funds at replacement value, Micro Cap Equity had a realized gain of $2,423 and Bond had a realized loss of ($4,290), which did not have an impact on the financial statements or net asset values of the respective Fund. The transactions are being treated as non-taxable events pursuant to Revenue Procedure 2008-63.
At October 31, 2008, the Funds had individual shareholder accounts and/or omnibus shareholder accounts (comprised of a group of individual shareholders), which amounted to more than 10% of the total shares outstanding of the Funds as detailed below.
2008 Annual Report 181
Notes to Financial Statements (Continued)
October 31, 2008
| | | | | | | | | | | | | |
| | | Fund | | % of Shares | | Number of Accounts | | |
| |
| | | International Value | | | 91% | | | | 1 | | | |
| |
| |
| | | Large Cap Value | | | 72% | | | | 3 | | | |
| |
| |
| | | Micro Cap Equity | | | 56% | | | | 2 | | | |
| |
| |
| | | Mid Cap Growth | | | 52% | | | | 1 | | | |
| |
| |
| | | U.S. Small Cap Value | | | 92% | | | | 1 | | | |
| |
| |
| | | Value | | | 57% | | | | 1 | | | |
| |
| |
| | | Value Opportunities | | | 35% | | | | 2 | | | |
| |
| |
| | | Bond | | | 24% | | | | 1 | | | |
| |
| |
| | | Enhanced Income | | | 99% | | | | 4 | | | |
| |
| |
| | | Government Bond | | | 70% | | | | 2 | | | |
| |
| |
| | | Short Duration Bond | | | 58% | | | | 1 | | | |
| |
| |
Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the NAV of many mutual funds, including these Funds. Such events during this period have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business and/or whose securities are or may be held by the Funds. The potential investment of each Fund’s investments in these issuers, and the financial sector in general, as reflected in each Fund’s schedule of investments, may expose investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
11. Federal Tax Information
The tax character of distributions paid during the fiscal year ended October 31, 2008, was as follows: (Total distributions paid may differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Return
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | of
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Capital | | Paid | | |
| |
| International Value | | $ | — | | | $ | — | | | $ | — | | | $ | 46,391 | | | $ | 46,391 | | | |
| |
| |
| Large Cap Value | | | 835,866 | | | | 3,319,549 | | | | 4,155,415 | | | | — | | | | 4,155,415 | | | |
| |
| |
| Micro Cap Equity | | | — | | | | 12,394,374 | | | | 12,394,374 | | | | 2 | | | | 12,394,376 | | | |
| |
| |
| Mid Cap Growth | | | 195,109 | | | | 497,746 | | | | 692,855 | | | | — | | | | 692,855 | | | |
| |
| |
| U.S. Small Cap Value | | | 30,168 | | | | — | | | | 30,168 | | | | — | | | | 30,168 | | | |
| |
| |
| Value | | | 5,231 | | | | — | | | | 5,231 | | | | — | | | | 5,231 | | | |
| |
| |
| Value Opportunities | | | 1,313,468 | | | | 737,343 | | | | 2,050,811 | | | | 15,910 | | | | 2,066,721 | | | |
| |
| |
| Bond | | | 4,209,271 | | | | — | | | | 4,209,271 | | | | — | | | | 4,209,271 | | | |
| |
| |
| Enhanced Income | | | 6,490,533 | | | | — | | | | 6,490,533 | | | | — | | | | 6,490,533 | | | |
| |
| |
| Government Bond | | | 5,467,477 | | | | — | | | | 5,467,477 | | | | — | | | | 5,467,477 | | | |
| |
| |
| Short Duration Bond | | | 2,461,428 | | | | — | | | | 2,461,428 | | | | — | | | | 2,461,428 | | | |
| |
| |
182 Annual Report 2008
The tax character of distributions paid during the fiscal year ended October 31, 2007, was as follows: (Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Return
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | of
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Capital | | Paid | | |
| |
| Large Cap Value | | $ | 1,682,186 | | | $ | 3,029,988 | | | $ | 4,712,174 | | | $ | — | | | $ | 4,712,174 | | | |
| |
| |
| Micro Cap Equity | | | 12,284,554 | | | | 15,949,692 | | | | 28,234,246 | | | | — | | | | 28,234,246 | | | |
| |
| |
| Mid Cap Growth | | | 35,851 | | | | 438,536 | | | | 474,387 | | | | — | | | | 474,387 | | | |
| |
| |
| Value Opportunities | | | 1,294,682 | | | | 884,994 | | | | 2,179,676 | | | | — | | | | 2,179,676 | | | |
| |
| |
| Bond | | | 4,897,064 | | | | — | | | | 4,897,064 | | | | — | | | | 4,897,064 | | | |
| |
| |
| Enhanced Income | | | 12,978,993 | | | | — | | | | 12,978,993 | | | | — | | | | 12,978,993 | | | |
| |
| |
| Government Bond | | | 5,325,826 | | | | — | | | | 5,325,826 | | | | — | | | | 5,325,826 | | | |
| |
| |
| Short Duration Bond | | | 3,120,559 | | | | — | | | | 3,120,559 | | | | — | | | | 3,120,559 | | | |
| |
| |
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows: (Total distributions paid differ from the Staement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Total
| | |
| | | Undistributed
| | Undistributed
| | Undistributed
| | | | | | Accumulated
| | Unrealized
| | Accumulated
| | |
| | | Tax Exempt
| | Ordinary
| | Long-Term
| | Accumulated
| | Distributions
| | Capital and
| | Appreciation
| | Earnings
| | |
| Fund | | Income | | Income | | Capital Gains | | Earnings | | Payable | | Other Losses | | (Depreciation)* | | (Deficit) | | |
| |
| International Value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (7,287,982) | | | $ | (75,209,316) | | | $ | (82,497,298) | | | |
| |
| |
| Large Cap Value | | | — | | | | 29,882 | | | | — | | | | 29,882 | | | | — | | | | (2,161,739) | | | | (5,177,007) | | | | (7,308,864) | | | |
| |
| |
| Micro Cap Equity | | | — | | | | — | | | | — | | | | — | | | | — | | | | (14,632,585) | | | | (10,394,406) | | | | (25,026,991) | | | |
| |
| |
| Mid Cap Growth | | | — | | | | — | | | | — | | | | — | | | | — | | | | (542,518) | | | | (720,972) | | | | (1,263,490) | | | |
| |
| |
| U.S. Small Cap Value | | | — | | | | 403,820 | | | | — | | | | 403,820 | | | | — | | | | — | | | | (9,330,229) | | | | (8,926,409) | | | |
| |
| |
| Value | | | — | | | | 10,143 | | | | — | | | | 10,143 | | | | — | | | | (78,856) | | | | (326,788) | | | | (395,501) | | | |
| |
| |
| Value Opportunities | | | — | | | | — | | | | — | | | | — | | | | — | | | | (2,603,303) | | | | (2,115,827) | | | | (4,719,130) | | | |
| |
| |
| Bond | | | — | | | | 411,333 | | | | 51,400 | | | | 462,733 | | | | (401,689) | | | | — | | | | (7,660,057) | | | | (7,599,013) | | | |
| |
| |
| Government Bond | | | — | | | | 1,165,934 | | | | 250,112 | | | | 1,416,046 | | | | (490,468) | | | | — | | | | (1,224,381) | | | | (298,803) | | | |
| |
| |
| Enhanced Income | | | — | | | | 561,306 | | | | — | | | | 561,306 | | | | (482,081) | | | | (6,110,287) | | | | (1,916,302) | | | | (7,947,364) | | | |
| |
| |
| Short Duration Bond | | | — | | | | 195,558 | | | | — | | | | 195,558 | | | | (235,054) | | | | (3,003,608) | | | | (1,373,665) | | | | (4,416,769) | | | |
| |
| |
| | |
| * | | The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. |
2008 Annual Report 183
Notes to Financial Statements (Continued)
October 31, 2008
As of October 31, 2008, the tax cost of securities and the breakdown of unrealized appreciation / (depreciation) for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net Unrealized
| | |
| | | Tax Cost
| | Unrealized
| | Unrealized
| | Appreciation
| | |
| Fund | | of Securities | | Appreciation | | Depreciation | | (Depreciation) | | |
| |
| International Value | | $ | 188,843,791 | | | $ | 305,877 | | | $ | (75,515,193) | | | $ | (75,209,316) | | | |
| |
| |
| Large Cap Value | | | 21,195,769 | | | | 187,928 | | | | (5,364,935) | | | | (5,177,007) | | | |
| |
| |
| Micro Cap Equity | | | 27,906,413 | | | | 1,006,547 | | | | (11,400,953) | | | | (10,394,406) | | | |
| |
| |
| Mid Cap Growth | | | 2,926,286 | | | | 58,473 | | | | (779,445) | | | | (720,972) | | | |
| |
| |
| U.S. Small Cap Value | | | 33,462,020 | | | | 835,247 | | | | (10,165,476) | | | | (9,330,229) | | | |
| |
| |
| Value | | | 1,538,957 | | | | 7,791 | | | | (334,579) | | | | (326,788) | | | |
| |
| |
| Value Opportunities | | | 8,859,973 | | | | 399,220 | | | | (2,515,047) | | | | (2,115,827) | | | |
| |
| |
| Bond | | | 88,272,526 | | | | 1,025,089 | | | | (8,685,146) | | | | (7,660,057) | | | |
| |
| |
| Government Bond | | | 143,598,153 | | | | 933,286 | | | | (2,157,667) | | | | (1,224,381) | | | |
| |
| |
| Enhanced Income | | | 172,216,918 | | | | 360,880 | | | | (2,277,182) | | | | (1,916,302) | | | |
| |
| |
| Short Duration Bond | | | 75,972,629 | | | | 744,502 | | | | (2,118,167) | | | | (1,373,665) | | | |
| |
| |
As of October 31, 2008, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the treasury regulations
| | | | | | | | | | | | | |
| | | Fund | | Amount | | Expires | | |
| |
| | | International Value | | $ | 7,287,982 | | | | 2016 | | | |
| |
| |
| | | Large Cap Value | | | 2,161,739 | | | | 2016 | | | |
| |
| |
| | | Micro Cap Equity | | | 14,632,585 | | | | 2016 | | | |
| |
| |
| | | Mid Cap Growth | | | 542,518 | | | | 2016 | | | |
| |
| |
| | | Value | | | 78,856 | | | | 2016 | | | |
| |
| |
| | | Value Opportunities | | | 2,603,303 | | | | 2016 | | | |
| |
| |
| | | Enhanced Income | | | 664,396 | | | | 2009 | | | |
| |
| |
| | | Enhanced Income | | | 1,947,216 | | | | 2010 | | | |
| |
| |
| | | Enhanced Income | | | 952,689 | | | | 2011 | | | |
| |
| |
| | | Enhanced Income | | | 1,507,694 | | | | 2012 | | | |
| |
| |
| | | Enhanced Income | | | 688,792 | | | | 2014 | | | |
| |
| |
| | | Enhanced Income | | | 349,500 | | | | 2016 | | | |
| |
| |
| | | Short Duration Bond | | | 569,688 | | | | 2012 | | | |
| |
| |
| | | Short Duration Bond | | | 1,446,234 | | | | 2013 | | | |
| |
| |
| | | Short Duration Bond | | | 798,570 | | | | 2014 | | | |
| |
| |
| | | Short Duration Bond | | | 60,208 | | | | 2015 | | | |
| |
| |
| | | Short Duration Bond | | | 128,908 | | | | 2016 | | | |
| |
| |
12. Subsequent Event
On December 3, 2008, the Board of Trustees approved the liquidation of Mid Cap Growth and Micro Cap Equity. The liquidation is expected to be completed by April 30, 2009. Pursuant to the plan of liquidation adopted by the Board, the Fund may set up a reserve account for expenses incurred in connection with the liquidation to ensure that all shareholders are treated fairly.
184 Annual Report 2008
Effective on our about January 30, 2009, the existing Class X and Class Y shares of Bond and Government Bond will be converted to Class A shares of the same fund, Class X and Y shares will no longer be offered as of the same date.
Effective on or about January 30, 2009, the IRA Class shares of Short Duration will be converted to Class A shares of the same fund.
Effective February 28, 2009, Class R shares will be renamed Class R2 shares of the same fund.
2008 Annual Report 185
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nationwide Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nationwide International Value Fund, Nationwide Large Cap Value Fund, Nationwide Micro Cap Equity Fund, Nationwide Mid Cap Growth Fund, Nationwide U.S. Small Cap Value Fund, Nationwide Value Fund, Nationwide Value Opportunities Fund, Nationwide Bond Fund, Nationwide Enhanced Income Fund, Nationwide Government Bond Fund and Nationwide Short Duration Bond Fund (eleven series of Nationwide Mutual Funds, hereafter referred to as the “Funds”) at October 31, 2008 and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2008
186 Annual Report 2008
Supplemental Information
(Unaudited)
1) Other Federal Tax Information
For the year ended October 31, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.
For the year ended October 31, 2008, the following Funds paid qualified dividend income:
| | | | | | | | | |
| | | | | Qualified
| | |
| | | | | Dividend
| | |
| | | Fund | | Income | | |
| |
| | | Large Cap Value | | $ | 800,902 | | | |
| |
| |
| | | Mid Cap Growth | | | 24,701 | | | |
| |
| |
| | | U.S. Small Cap Value | | | 18,190 | | | |
| |
| |
| | | Value | | | 5,231 | | | |
| |
| |
| | | Value Opportunities | | | 83,668 | | | |
| |
| |
For the taxable year ended October 31, 2008, the following percentage of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
| | | | | | | | | |
| | | | | Dividends
| | |
| | | | | Received
| | |
| | | Fund | | Deduction | | |
| |
| | | Large Cap Value | | | 97% | | | |
| |
| |
| | | Mid Cap Growth | | | 13% | | | |
| |
| |
| | | U.S. Small Cap Value | | | 60% | | | |
| |
| |
| | | Value | | | 100% | | | |
| |
| |
| | | Value Opportunities | | | 6% | | | |
| |
| |
The Funds designate the following amounts, or the maximum amount allowable under the Internal Revenue Code, as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Large Cap Value | | $ | 3,319,548 | | | |
| |
| |
| | | Micro Cap Equity | | | 12,394,374 | | | |
| |
| |
| | | Mid Cap Growth | | | 497,746 | | | |
| |
| |
| | | Value Opportunities | | | 737,343 | | | |
| |
| |
2) Approval of Advisory (and Sub-advisory) Agreements
The Board of Trustees (the “Board”) met on September 13, 2007 (the “Meeting”), to consider, among other things, the creation of new series, including the Nationwide U.S. Small Cap Value Fund (“Small Cap Value”) and the Nationwide International Value Fund (“International Value,” together with Small Cap Value, the “Funds”), and to consider the proposed adviser, advisory services and advisory fees for such Funds. At the Meeting, the Board considered whether to approve an investment advisory agreement between Nationwide Fund Advisors (“NFA”) and Nationwide Mutual Funds (the “Trust”) on behalf of the Funds. The Board also considered NFA’s recommendation of Dimensional Fund Advisors as subadviser for Small Cap Value and AllianceBernstein L.P. as subadviser for International Value.
2008 Annual Report 187
Supplemental Information (Continued)
(Unaudited)
The Independent Trustees received assistance and advice from, and met separately with, independent counsel regarding their legal duties and responsibilities in considering the Funds’ proposed investment advisory agreement. The Board considered all information it deemed relevant, including, but not limited to, the following information with respect to the Funds:
1. the Funds’ proposed advisory fee and anticipated ancilliary benefits to NFA and the subadvisers;
2. the Funds’ proposed advisory fee in comparison to the advisory fees of the Funds’ proposed competitive peer groups;
3. the Funds’ proposed Lipper/Morningstar categories and benchmarks; and
4. the Funds’ projected total expenses in comparison to those of the Funds’ peer groups.
Because the Funds are new, the Board could not consider comparative information regarding Fund performance or the level of profitability (or lack thereof) that NFA would receive for investment management services provided to the Funds. Following its review and discussions, a majority of the Board, including a majority of the Independent Trustees (as such term is defined in Section 2(a)(19) of the 1940 Act), determined it was appropriate to approve the Funds’ advisory and subadvisory agreements for an initial period to run through May 1, 2009 for the following reasons:
The Board considered NFA’s recommendation to create Small Cap Value to provide long term capital appreciation. The Board considered that, under normal conditions, Small Cap Value would invest at least 80% of the value of its net assets in equity securities issued by small-cap companies, defined as those companies with a market capitalization of less than $4.5 billion, primarily focusing on the common stocks of those companies that the managers consider to be “value” companies. The Board reviewed and considered information regarding the proposed investment strategy, screening process, and portfolio construction methodology to be used by Dimensional Fund Advisors, as well as information regarding the performance of accounts similar to Small Cap Value that are managed by Dimensional Fund Advisors.
The Board considered NFA’s recommendation to create International Value to provide long-term capital appreciation. The Board considered that, under normal conditions, International Value would invest at least 80% of the value of its net asets in equity securities issued by companies that are located in, or that derive a significant portion of their earnings or revenues from, countries other than the United States. The Board reviewed and considered information regarding the proposed investment strategy, screening process, and portfolio construction methodology to be used by AllianceBernstein L.P., as well as information regarding the performance of accounts similar to International Value that are managed by AllianceBernstein L.P.
The Board considered the proposed fee arrangement for the Funds. The Board reviewed information comparing the proposed fee arrangements to fees for similar funds, and noted that the Funds would each have the benefit of an expense cap. The Board then reviewed the expense structure of the Funds and comparative fund expense data of similarly-managed competitor funds. NFA stated its belief that each Fund is competitively priced compared to peer fund groups. The Board then discussed with NFA and its affiliates the proposed marketing and distribution plans for each Fund.
The Board, including a majority of the Independent Trustees, having considered all of the information it deemed relevant and being satisfied with NFA’s and its affiliates’ responses to the Board’s questions determined to approve the investment advisory and subadvisory agreements for the Funds through May 1, 2009 and to undertake the Board’s review and any consideration of reapproval of the Funds’ advisory and subadvisory agreements at its December 2008-January 2009 Annual 15(c) Contract Review Meeting.
Nationwide Value Fund
The Board of Trustees (the “Board”) met on November 9, 2007 (the “Meeting”), to consider, among other things, the creation of new series, including the Nationwide Value Fund (“Value Fund”), and to consider the proposed adviser, advisory services and advisory fees for such Fund. At the Meeting, the Board considered whether to
188 Annual Report 2008
approve an investment advisory agreement between Nationwide Fund Advisors (“NFA”) and Nationwide Mutual Funds (the “Trust”) on behalf of the Fund. The Board also considered NFA’s recommendation of Diamond Hill Capital Management, Inc. (“Diamond Hill”) as subadviser for Value Fund.
The Independent Trustees received assistance and advice from, and met separately with, independent counsel regarding their legal duties and responsibilities in considering Value Fund’s proposed investment advisory agreement. The Board considered all information it deemed relevant, including, but not limited to, the following information with respect to Value Fund:
1. Value Fund’s proposed advisory fee and anticipated ancilliary benefits to NFA and the subadviser;
2. Value Fund’s proposed advisory fee in comparison to the advisory fees of the Fund’s proposed competitive peer groups;
3. Value Fund’s proposed Lipper/Morningstar categories and benchmarks; and
4. Value Fund’s projected total expenses in comparison to those of Value Fund’s peer groups.
Because Value Fund is new, the Board could not consider comparative information regarding Fund performance or the level of profitability (or lack thereof) that NFA would receive for investment management services provided to Value Fund. Following its review and discussions, a majority of the Board, including a majority of the Independent Trustees (as such term is defined in Section 2(a)(19) of the 1940 Act), determined it was appropriate to approve Value Fund’s advisory and subadvisory agreements for an initial period to run through May 1, 2009 for the following reasons:
The Board considered NFA’s recommendation to create Value Fund to provide long term capital appreciation. The Board considered that, under normal conditions, Value Fund would invest in common stocks that Value Fund’s subadviser believes to be undervalued, and would normally invest at least 80% of its net assets in large capitalization companies, defined as those companies with a market capitalization of $5 billion or greater or those companies within the range of companies included in the Russell 1000 index. The Board reviewed and considered information regarding the proposed investment strategy, screening process, and portfolio construction methodology to be used by Diamond Hill, as well as information regarding the performance of accounts similar to Value Fund that are managed by Diamond Hill.
The Board considered the proposed fee arrangement for Value Fund. The Board reviewed information comparing the proposed fee arrangements to fees for similar funds, and noted that Value Fund would each have the benefit of an expense cap. The Board then reviewed the expense structure of Value Fund and comparative fund expense data of similarly-managed competitor funds. NFA stated its belief that Value Fund Fund is competitively priced compared to peer fund groups. The Board then discussed with NFA and its affiliates the proposed marketing and distribution plans for Value Fund.
The Board, including a majority of the Independent Trustees, having considered all of the information it deemed relevant and being satisfied with NFA’s and its affiliates’ responses to the Board’s questions determined to approve the investment advisory and subadvisory agreements for Value Fund through May 1, 2009 and to undertake the Board’s review and any consideration of reapproval of Value Fund’s advisory and subadvisory agreements at its December 2008-January 2009 Annual 15(c) Contract Review Meeting.
2008 Annual Report 189
Management Information
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s)Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Charles E. Allen
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
since
July 2000 | | | Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management) | | | | 94 | | | | None |
| |
| |
Paula H.J. Cholmondeley
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
Since
July 2000 | | | Ms. Cholmondeley has served as Chief Executive Officer of Sorrel Group (management consulting group) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America | | | | 94 | | | | Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology, Inc. (specialty chemicals) |
| |
| |
C. Brent DeVore3
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1940 | | | Trustee
since 1990 | | | Dr. DeVore is President of Otterbein College | | | | 94 | | | | None |
| |
| |
Phyllis Kay Dryden
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
since
December 2004 | | | Ms. Dryden was a partner of Mitchell Madison Group LLC, a management consulting company from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm | | | | 94 | | | | None |
| |
| |
Barbara L. Hennigar
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1935 | | | Trustee
Since
July 2000 | | | Retired. Ms. Hennigar was Executive Vice President of Oppenheimer Funds (an asset management company) from October 1992 until June 2000 and Chairman of Oppenheimer Funds Services from October 1999 to June 2000 and President & CEO from June 1992 to October 1999 | | | | 94 | | | | None |
| |
| |
190 Annual Report 2008
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s)Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Barbara I. Jacobs
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Trustee
since
December 2004 | | | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 – 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association — College Retirement Equities Fund) | | | | 94 | | | | None |
| |
| |
Douglas F. Kridler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Trustee
since
September 1997 | | | Mr. Kridler has been a Board Member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of the Columbus Foundation (a Columbus, Ohio-based foundation which manages over 1,300 individual endowment funds) since February 2002. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts; Chairman of the Greater Columbus Convention and Visitors Bureau; and Board Member of Columbus Downtown Development Corporation | | | | 94 | | | | None |
| |
| |
David C. Wetmore
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
Since
1995 and
Chairman
Since
February 2005 | | | Retired. Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology orientated investment banking and venture capital firm) from 1995 through 2000 | | | | 94 | | | | None |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 3 | | Mr. DeVore has served as President of Otterbein College since 1984. Mark Thresher, President and Chief Operating Officer of Nationwide Financial Services, Inc. (“NFS”) has served as a member of the Board of Trustees of Otterbein College since 2000, currently serving as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Funds’ investment adviser, and Nationwide Fund Distributors LLC (“NFD”), principal underwriter to the Trust, are wholly-owned subsidiaries of NFS. Mr. DeVore has announced his intention to retire as President of Otterbein College at the end of the 2008-2009 school year. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
2008 Annual Report 191
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Arden L. Shisler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1941 | | | Trustee
SinceFebruary 20004 | | | Retired. Mr. Shisler is the former President and Chief Executive Officer of KeB Transport, Inc., a trucking firm (2000 through 2002). He served as a consultant to KeB from January 2003 through December 2004. Since 1992, Mr. Shisler has also been Chairman of the Board for Nationwide Mutual Insurance Company.2 | | | | 94 | | | | Director of Nationwide Financial Services, Inc., Chairman of Nationwide Mutual Insurance Company2 |
| |
| |
Michael S. Spangler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1966 | | | President and Chief
Executive Officer sinceJune 20085 | | | Mr. Spangler is the President and Chief Executive Officer of Nationwide Funds Group, which includes NFA,2 Nationwide Fund Management LLC 2 and Nationwide Fund Distributors LLC 2, and is a Senior Vice President of Nationwide Financial Services, Inc.2 From May 2004 until May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. He was President of Touchstone Advisors, Inc., and Vice President and Director of Touchstone Investments Business Operations from July 2002 until May 2004 | | | | N/A | | | | N/A |
| |
| |
Stephen T. Grugeon
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Executive Vice President
and Chief Operating
Officer since June20086 | | | Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. 2 Mr. Grugeon is also President of NWD Investments, which represents certain asset management operations of Nationwide Mutual Insurance Company and includes Nationwide SA Capital Trust. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006, and Chief Operating Officer of Corviant Corporation, a subsidiary of NWD Investments, from 1999 through 2003.2 | | | | N/A | | | | N/A |
| |
| |
Joseph Finelli
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1957 | | | Treasurer
Since
September 2007 | | | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting and Operations for Nationwide Funds Group.2 From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
192 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Dorothy Sanders
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Chief Compliance
Officer
since
October 2007 | | | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). From 2000 to November 2004, she was Vice President, Secretary and General Counsel of Fred Alger & Company, Incorporated | | | | N/A | | | | N/A |
| |
| |
Eric E. Miller
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1953 | | | Secretary
Since
December 2002 | | | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
Doff Meyer
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Vice President
and
Chief Marketing
Officer
since
January 2008 | | | Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007). 2 From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. From January 2003 until September 2004, Ms. Meyer was an independent marketing consultant | | | | N/A | | | | N/A |
| |
| |
2008 Annual Report 193
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Michael Butler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1959 | | | Vice President
and Chief Distribution
Officer
since
January 2008 | | | Mr. Butler is Chief Distribution Officer of Nationwide Funds Group (since May 2007) and President of Nationwide Fund Distributors LLC (since January 2008). 2 From January 2006 through April 2007, Mr. Butler was Vice President – Mutual Fund Strategy of Nationwide Financial Services, Inc.2 and was Senior Vice President – Retirement Plan Sales of NFS Distributors, Inc.2 from 2000 until January 2006 | | | | N/A | | | | N/A |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | This position is held with an affiliated person or principal underwriter of the Trust. |
| 3 | | Directorships held in (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 4 | | Mr. Shisler resigned as a Trustee of the Trust effective September 19, 2008. |
| 5 | | Prior to June 30, 2008, Mr. Grugeon served as the Trust’s acting President and Chief Executive Officer. Prior to February 2008, Mr. John H. Grady was the President and Chief Executive Officer. |
| 6 | | From February 2008 through June 2008, Mr. Grugeon also served as acting President and Chief Executive Officer of Nationwide Mutual Funds, Nationwide Variable Insurance Trust and Nationwide Funds Group. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Funds’ website at www.nationwidefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
194 Annual Report 2008
1200 River Road, Suite 1000
Conshohocken, PA 19428
nationwidefunds.com
Nationwide, the Nationwide Framemark, Nationwide Funds and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds Group is a service mark of Nationwide Mutual Insurance Company
©2008 Nationwide Funds Group.
All rights reserved.
AR-CORE 12/08
Nationwide Mutual Funds
Annual Report
October 31, 2008
Nationwide Bond Index Fund
Nationwide International Index Fund
Nationwide Mid Cap Market Index Fund
Nationwide S&P 500 Index Fund
Nationwide Small Cap Index Fund
AnnualReport
October 31, 2008
| | | | |
| | | | Contents |
| | | | |
| 1 | | | Message to Shareholders |
| 5 | | | Nationwide Bond Index Fund |
| 36 | | | Nationwide International Index Fund |
| 71 | | | Nationwide Mid Cap Market Index Fund |
| 92 | | | Nationwide S&P 500 Index Fund |
| 116 | | | Nationwide Small Cap Index Fund |
| 154 | | | Notes to Financial Statements |
| | | | |
Commentary provided by Nationwide Fund Advisors, investment adviser to Nationwide Funds. All opinions and estimates included in this report constitute the Adviser’s judgment as of the date of this report and are subject to change without notice. Portfolio composition is accurate as of the date of this report and is subject to change at any time.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The Nationwide Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on nationwidefunds.com or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
This page intentionally left blank
Message to Shareholders
October 31, 2008
Dear Shareholder:
Challenging developments in financial markets, as well as in the global economy particularly during the latter months of the annual reporting period, have dominated the news cycles. Commentators have described the decline as “unprecedented in our lifetime.” Unfortunately, I cannot contradict the pundits. Nearly across the board, markets are posting negative performance numbers in the double digits. As for our funds, while some performed well relative to their peer groups, most have lost value.
The causes for the prevailing negative market conditions have been well documented in the press and elsewhere. The failure of high-profile financial institutions and the extraordinary government intervention have left no asset class unaffected. While I can’t give you good news at this time, I can urge you to keep these events in perspective.
It’s important to remember that economic markets never stand still. They’re volatile by nature. Of course, that premise is easier to accept when markets are going up. However, we approach investing from a long-term perspective. Staying focused, adhering to a plan and remaining aware of your options will help you endure various market conditions.
Nationwide® and Nationwide Funds Groupsm continue to work with investors to help them keep a solid grasp on their long-term financial goals. Our approach is deliberate and our commitment is firm. We do not foresee a fast recovery from the ongoing economic and market turbulence. However, we believe that our underlying investment principles are sound.
In closing, we thank you for entrusting your assets to Nationwide Funds Group.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
This report and the holdings provided are for informational purposes only, and are not intended as an offer or recommendation with respect to the purchase or sale of any security, option, future or other derivatives in such securities. Portfolio composition is subject to change at any time. There is no assurance that any specific securities mentioned in this report will remain in the fund’s portfolio. A more recent listing of each fund’s portfolio holdings can be found on the Trust’s internet site nationwidefunds.com.
There is no assurance that a diversified portfolio will produce better results than a nondiversified portfolio.
Investing in mutual funds involves risk, including the possible loss of principal. There is no assurance that the investment objective of any Fund will be achieved.
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective as determined by Lipper Inc.
Funds in the Lipper Intermediate Investment Grade Debt Funds category invest at least 65% of their assets in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of five to 10 years.
Funds in the Lipper International Multi-Cap Core Funds category invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range during an extended period of time. Multi-cap funds typically have 25% to 75% of their assets invested in companies strictly outside of the United States with market capitalizations (on a three-year weighted basis) greater than the 250th-largest company in the S&P/Citigroup World ex-U.S. Broad Market Index.
Funds in the Lipper Mid-Cap Core Funds category invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted
2008 Annual Report 1
Message to Shareholders (Continued)
October 31, 2008
basis) less than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the Standard & Poor’s (S&P) SuperComposite 1500 Index.
Funds in the Lipper S&P 500 Index Objective Funds category are passively managed, limited-expense (management fee no higher than 0.50%) funds designed to replicate the performance of the Standard & Poor’s 500® Index on a reinvested basis.
Funds in the Lipper Small-Cap Core Funds category invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index.
The Nationwide Bond Index Fund invests in a statistically selected sample of securities included in the Barclays Capital U.S. Aggregate Bond Index [formerly the Lehman Brothers (LB) U.S. Aggregate Index] and in derivative instruments linked to the Barclays Capital U.S. Aggregate Bond Index (formerly the LB U.S. Aggregate Index).
The Nationwide International Index Fund invests in a statistically selected sample of stocks included in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index and in derivative instruments linked to the MSCI EAFE Index.
The Nationwide Mid Cap Market Index Fund invests in a statistically selected sample of stocks included in the Standard & Poor’s MidCap 400 (S&P 400) Index and in derivative instruments linked to the S&P 400 Index.
The Nationwide S&P 500 Index Fund invests in a statistically selected sample of stocks included in the Standard & Poor’s 500® (S&P 500) Index and in derivative instruments linked to the S&P 500 Index.
The Nationwide Small Cap Index Fund invests in a statistically selected sample of stocks included in the Russell 2000® Index and in derivative instruments linked to the Russell 2000 Index.
Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers (LB) U.S. Aggregate Index): An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more) that is generally representative of the bond market as a whole.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Class A shares at NAV. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Sales charge and fee information:
Nationwide Bond Index Fund
Nationwide International Index Fund
Nationwide Mid Cap Market Index Fund
Nationwide S&P 500 Index Fund
Nationwide Small Cap Index Fund
2 Annual Report 2008
Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower.
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 1-800-848-0920 to request a prospectus, or download a prospectus at nationwidefunds.com. Please read it carefully before investing any money.
International investing involves additional risks, including currency fluctuations, differences in accounting standards, economic and political instability, illiquidity and higher trading costs, and differences in foreign regulations, all of which are magnified in emerging markets.
Small- and mid-sized company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility.
The Funds’ adviser or its employees may have a position in the securities named in this report. Except where otherwise indicated, the views and opinions expressed herein are those of Nationwide Funds Group as of the date noted, are subject to change at any time, and may not come to pass.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428. NFD is not affiliated with BlackRock Investment Management, LLC.
Nationwide Funds Group (NFG) is the mutual fund arm of Nationwide Financial Services, Inc. (NYSE: NFS). Based in Conshohocken, Pa., a suburb of Philadelphia, NFG comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to the Nationwide Funds. NFS is an affiliate of Nationwide Mutual Insurance Company.
2008 Annual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the year ended October 31, 2008.
The economic conditions during the reporting period were driven by events that began to take shape in mid-year 2007 as the bursting of the U.S. housing bubble triggered a number of collateral impacts across the global economy. Specifically, substantial dislocations occurred in global financial markets. The financial imbalances and subprime mortgage default issues that became obvious to everyone in late 2007 mushroomed into a global financial crisis marked by diminishing liquidity and plunging asset values.
Financial services and cyclical stocks were the areas most aggressively pressured during the reporting period as the economy slowed and the residential housing market and the mortgages backing it soured. These problems included: (1) the failures of several prominent U.S. financial institutions; (2) the U.S. government’s takeover of Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market); (3) the reorganization of Wall Street’s remaining investment banks (The Goldman Sachs Group, Inc. and Morgan Stanley) as bank holding companies; and (4) the need to pass a $700 billion Troubled Asset Relief Program (TARP) bill by the U.S. Congress.
In short, the reporting period was filled with events that have not happened in more than 50 years, and, in many cases, since the Great Depression. Worldwide recession fears, fueled by these financial problems, resulted in sizable double-digit declines in nearly all segments of the investment market as well as increased volatility throughout the reporting period, along with rapid changes in relative performance among economic sectors. This was especially true in commodities; prices both surged and fell sharply during the course of the reporting period.
Large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, fell 36% during the reporting period as credit markets deteriorated and market volatility reached record levels. Mid-cap U.S. equities, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 37%, and small-cap U.S. equities, as measured by the Russell 2000® Index, declined 34%.
In general, international stocks were even more negatively affected than U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost more than 46% during the reporting period, including a loss of more than 34% during the last three months of the period. Emerging market stocks, as measured by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, lost more than 56% during the reporting period, including a loss of more than 44% during the last three months of the period.
The reporting period was a time of general disappointment for fixed-income investors as well. The broad-based Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] gained a mere 0.31%. Continuing credit market woes, however, coupled with uncertainty about the extent of government intervention to help ease the liquidity crunch, served to drag down U.S. investment-grade corporate bonds by nearly 14% during the reporting period.
4 Annual Report 2008
| |
| Nationwide Bond Index Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
The Fund seeks to match the performance of the Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index] as closely as possible before the deduction of Fund expenses. For the annual period ended October 31, 2008, the Nationwide Bond Index Fund (Class A at NAV) registered -0.23% versus +0.31% for its benchmark, the Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index]. For broader comparison, the average return for the Fund’s closest Lipper Inc. peer category of Intermediate Investment Grade Debt Funds (consisting of 568 funds as of October 31, 2008) was -7.01% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
As the markets continued to experience extreme levels of volatility, investors looked to the highest-quality assets for safety. This flight to quality had a positive impact on three investment sectors – U.S. Treasury, Agency and Agency mortgage-backed securities – which all posted single-digit gains during the reporting period.
What areas of investment detracted from Fund performance?
Returns for corporate bonds and securitized issues lagged those of the broad market during the reporting period. The broad corporate bond sector dropped 13.82%, with financials posting the most notable underperformance. Financial issues posted a loss of 16.81% during the reporting period. Among securitized issues, commercial mortgage-backed securities, which registered a loss of 15.24%, and asset-backed securities, which registered a loss of 12.98%, were the weakest performers.
What is your outlook for the near term?
In today’s environment, higher-quality assets such as Agency mortgage-backed securities (MBS) and AAA-rated commercial mortgage-backed securities represent good investment value. Agency MBS benefited from the Treasury’s move to take Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market) into conservatorship, and the positive effect on these assets should continue. As stability returns to the financial markets, spreads on high-quality mortgage and commercial mortgage bonds should gradually begin to recover. In the meantime, these securities are paying attractive yields. Current U.S. Treasury yields, on the other hand, do not offer value; the recent actions taken by the U.S. government will necessitate increasing auctions of Treasury debt to fund the $700 billion bailout package, recapitalize the Federal Deposit Insurance Corporation (FDIC) and stabilize American International Group (AIG).
Subadviser:
BlackRock Investment Management, LLC
Portfolio Managers:
Scott Amero, Matthew Marra and Andrew Phillips
2008 Annual Report 5
| |
| Fund Performance | Nationwide Bond Index Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr.1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC2 | | | -0.23% | | | | 2.90% | | | | 4.38% | | | | 0.76% | | | | 0.72% | |
| | | w/SC3 | | | -5.97% | | | | 1.69% | | | | 3.77% | | | | | | | | | |
| |
| |
Class B4 | | w/o SC2 | | | -0.94% | | | | 2.26% | | | | 3.93% | | | | 1.36% | | | | 1.32% | |
| | | w/SC5 | | | -5.71% | | | | 1.92% | | | | 3.93% | | | | | | | | | |
| |
| |
Class C7 | | w/o SC2 | | | -0.87% | | | | 2.27% | | | | 3.94% | | | | 1.36% | | | | 1.32% | |
| | | w/SC8 | | | -1.82% | | | | 2.27% | | | | 3.94% | | | | | | | | | |
| |
| |
Institutional Class6 | | | | | 0.03% | | | | 3.26% | | | | 4.76% | | | | 0.36% | | | | 0.32% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns until the creation of Class A and Institutional shares (12/29/99) include the performance of the Master Aggregate Bond Index Series (the “Series”), which began operations on April 3, 1997. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A and Institutional Class shares would have produced because these classes of the Fund’s shares invested in the same portfolio of securities as the Series. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees applicable to such classes; if these fees were reflected, the performance for Class A and Institutional Class shares would have been lower. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | These returns until the creation of Class B shares (10/12/01) include performance based on the Series for the period through December 28, 1999 and the Fund’s Class A shares for the period from December 29, 1999 to October 11, 2001. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B shares would have produced because Class B shares invest in the same portfolio of securities as Class A shares. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class B shares would have been lower. |
| |
| 5 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 6 | | Not subject to any sales charges. |
| |
| 7 | | These returns are based on the previous performance of the Fund for the period through December 28, 1999, the Class A shares from December 29, 1999 until October 11, 2001 and the Class B shares from October 12, 2001 to December 31, 2005. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C shares would have produced because all classes invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and administrative services fees) applicable to such classes. If these other fees were reflected, the performance for Class C would have been lower. |
| |
| 8 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Bond Index Fund, the Barclays Capital U.S. Aggregate Bond Index [Formerly Lehman Brothers Aggregate Bond Index (LB
6 Annual Report 2008
Aggregate Bond)](a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 10/31/08. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index comprised of U.S. government securities and corporate debt securities and is generally representative of the bond market as a whole. |
| | |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 7
| |
| Shareholder | Nationwide Bond Index Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Bond Index Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 962.37 | | | | 3.06 | | | | 0.62 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.02 | | | | 3.15 | | | | 0.62 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 958.29 | | | | 6.21 | | | | 1.26 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.79 | | | | 6.42 | | | | 1.26 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 959.02 | | | | 6.49 | | | | 1.32 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.51 | | | | 6.71 | | | | 1.32 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 962.90 | | | | 1.57 | | | | 0.32 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.53 | | | | 1.62 | | | | 0.32 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
8 Annual Report 2008
| |
| Portfolio Summary | Nationwide Bond Index Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| U.S. Government Mortgage Backed Agencies | | | 40.8% | |
| U.S. Government Sponsored & Agency Obligations | | | 32.7% | |
| Corporate Bonds | | | 17.5% | |
| Commercial Mortgage Backed Securities | | | 7.0% | |
| Repurchase Agreement | | | 6.3% | |
| Sovereign Bonds | | | 3.0% | |
| Asset-Backed Securities | | | 1.3% | |
| Yankee Dollars | | | 0.9% | |
| Collateralized Mortgage Obligations | | | 0.4% | |
| Municipal Bonds | | | 0.1% | |
| Collateralized Debt Obligation | | | 0.0% | |
| Liabilities in excess of other assets | | | -10.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Banks | | | 6.6% | |
| Diversified Financial Services | | | 3.8% | |
| Other Financial | | | 3.1% | |
| Oil, Gas & Consumable Fuels | | | 1.0% | |
| Telecommunications | | | 0.9% | |
| Specialty Retail | | | 0.8% | |
| Hotels, Restaurants & Leisure | | | 0.8% | |
| Insurance | | | 0.7% | |
| Media | | | 0.7% | |
| Other Utility | | | 0.5% | |
| Other | | | 81.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Federal Home Loan Mortgage Corp. TBA, 5.00%, 11/15/37 | | | 4.0% | |
| Fannie Mae Pool, Pool #888022, 5.00%, 02/01/36 | | | 3.2% | |
| U.S. Treasury Notes, 4.50%, 09/30/11 | | | 3.0% | |
| U.S. Treasury Notes, 2.75%, 02/28/13 | | | 2.3% | |
| Federal Home Loan Mortgage Corp. TBA, 4.50%, 11/15/22 | | | 2.2% | |
| Freddie Mac Gold Pool, Pool #A49653, 5.50%, 06/01/36 | | | 1.9% | |
| U.S. Treasury Notes, 4.63%, 02/29/12 | | | 1.8% | |
| U.S. Treasury Notes, 4.75%, 02/15/10 | | | 1.6% | |
| Federal Home Loan Mortgage Corp., 2.75%, 04/11/11 | | | 1.6% | |
| U.S. Treasury Bond, 6.25%, 08/15/23 | | | 1.5% | |
| Other | | | 76.9% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
2008 Annual Report 9
Statement of Investments
October 31, 2008
Nationwide Bond Index Fund
| | | | | | | | | |
| | | | | | | | | |
| Asset-Backed Securities 1.3% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Auto Loans 0.6% |
Honda Auto Receivables Owner Trust, Series 2006-3, Class A3, 5.12%, 10/15/10 | | $ | 3,948,160 | | | $ | 3,945,590 | |
Nissan Auto Receivables Owner Trust, Series 2006-A, Class A3, 4.74%, 09/15/09 | | | 982,937 | | | | 982,762 | |
| | | | | | | | | |
| | | | | | | | 4,928,352 | |
| | | | | | | | | |
Credit Card Loans 0.5%(a) |
Citibank Credit Card Issuance Trust, Series 2006-A4, Class A4, 5.45%, 05/10/13 | | | 4,570,000 | | | | 4,282,184 | |
| | | | | | | | | |
Home Equity Loans 0.2%(a) |
Aegis Asset Backed Securities Trust, Series 2006-1, Class A1, 3.34%, 01/25/37 | | | 1,911,389 | | | | 1,828,841 | |
| | | | | | | | | |
| | | | | |
Total Asset-Backed Securities | | | 11,039,377 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Collateralized Debt Obligation 0.0%(b) |
| | | | | | | | | |
| North Front Pass-Through Trust, 5.81%, 12/15/24 | | | 205,000 | | | | 91,757 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Collateralized Mortgage Obligation 0.4%(a) |
| | | | | | | | | |
Merrill Lynch Mortgage Investors, Inc., Series 2005-A7, Class 2A1, 5.39%, 09/25/35 | | | 4,361,007 | | | | 3,354,996 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Commercial Mortgage Backed Securities 7.0% |
| | | | | | | | | |
| | | | | | | | | |
Banks 3.2% |
| Banc of America Commercial Mortgage, Inc. | | | | | | | | |
Series 2005-4, Class A5A, 4.93%, 07/10/45 | | | 1,936,000 | | | | 1,540,713 | |
Series 2006-6, Class A4, 5.36%, 10/10/45 | | | 2,830,000 | | | | 2,159,397 | |
First Union National Bank Commercial Mortgage, Series 2000-C2, Class A2, 7.20%, 10/15/32 | | | 3,362,102 | | | | 3,333,800 | |
First Union National Bank-Bank of America Commercial Mortgage Trust, Series 2001-C1, Class A2, 6.14%, 03/15/33 | | | 2,058,550 | | | | 2,004,520 | |
| JPMorgan Chase Commercial Mortgage Securities Corp. | | | | | | | | |
Series 2005-FL1A, Class A2, 4.74%, 02/15/19(a)(b) | | | 9,994,000 | | | | 9,305,796 | |
Series 2001-CIBC, Class B, 6.45%, 03/15/33 | | | 2,604,000 | | | | 2,525,209 | |
Series 2001-CIB3, Class A3, 6.47%, 11/15/35 | | | 2,264,000 | | | | 2,172,827 | |
Series 2001-CIB3, Class C, 7.09%, 11/15/35(a)(b) | | | 1,292,000 | | | | 1,243,150 | |
Series 2005-LDP4, Class AM, 5.00%, 10/15/42(a) | | | 1,546,000 | | | | 1,047,141 | |
Series 2006-LDP7, Class A4, 5.88%, 04/15/45(a) | | | 2,321,000 | | | | 1,841,614 | |
Wachovia Bank Commercial Mortgage Trust, Series 2002-C1, Class C, 6.55%, 04/15/34 | | | 1,189,000 | | | | 1,122,835 | |
| | | | | | | | | |
| | | | | | | | 28,297,002 | |
| | | | | | | | | |
Diversified Financial Services 2.2% |
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class AJ, 4.66%, 06/11/41 | | | 1,384,000 | | | | 911,736 | |
| CS First Boston Mortgage Securities Corp. | | | | | | | | |
Series 2001-CK1, Class C, 6.73%, 12/18/35 | | | 2,078,000 | | | | 2,028,471 | |
Series 2002-CKS4, Class A2, 5.18%, 11/15/36 | | | 2,050,000 | | | | 1,846,317 | |
| Greenwich Capital Commercial Funding Corp. | | | | | | | | |
Series 2006-GG7, Class A4, 5.91%, 07/10/38(a) | | | 6,120,000 | | | | 4,881,168 | |
Series 2007-GG9, Class A4, 5.44%, 03/10/39 | | | 4,660,000 | | | | 3,474,707 | |
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A5, 5.28%, 08/10/38(a) | | | 2,133,000 | | | | 1,872,180 | |
LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A4, 5.12%, 11/15/32 | | | 2,161,000 | | | | 1,861,893 | |
Morgan Stanley Capital I, Series 2005-T19, Class A2, 4.73%, 06/12/47 | | | 2,153,000 | | | | 2,033,796 | |
| | | | | | | | | |
| | | | | | | | 18,910,268 | |
| | | | | | | | | |
Electric Power 0.3% |
GE Capital Commercial Mortgage Corp., Series 2005-C1, Class A2, 4.35%, 06/10/48 | | | 2,461,000 | | | | 2,353,931 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.7%(a) (b) |
TW Hotel Funding 2005 LLC, Series 2005-LUX, Class A1, 4.81%, 01/15/21 | | | 6,651,219 | | | | 6,191,911 | |
| | | | | | | | | |
10 Annual Report 2008
| | | | | | | | | |
Commercial Mortgage Backed Securities (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Mortgage-Backed 0.6%(a) |
Commercial Mortgage Pass Through Certificates, Series 2005-LP5, Class A4, 4.98%, 05/10/43 | | $ | 6,180,000 | | | $ | 4,987,016 | |
| | | | | | | | | |
| | | | | |
Total Commercial Mortgage Backed Securities | | | 60,740,128 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Corporate Bonds 17.5% |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 0.1% |
| Boeing Co., 6.13%, 02/15/33 | | | 205,000 | | | | 167,627 | |
| Lockheed Martin Corp. | | | | | | | | |
| 7.65%, 05/01/16 | | | 123,000 | | | | 126,591 | |
| Series B, 6.15%, 09/01/36 | | | 196,000 | | | | 168,066 | |
| | | | | | | | | |
| | | | | | | | 462,284 | |
| | | | | | | | | |
| |
| |
Airlines 0.1% |
| United Technologies Corp. | | | | | | | | |
| 6.35%, 03/01/11 | | | 127,000 | | | | 128,870 | |
| 4.88%, 05/01/15 | | | 560,000 | | | | 510,289 | |
| 5.40%, 05/01/35 | | | 308,000 | | | | 239,536 | |
| | | | | | | | | |
| | | | | | | | 878,695 | |
| | | | | | | | | |
| |
| |
Auto Components 0.0% |
| Johnson Controls, Inc. | | | | | | | | |
| 5.25%, 01/15/11 | | | 123,000 | | | | 114,621 | |
| 4.88%, 09/15/13 | | | 123,000 | | | | 105,662 | |
| | | | | | | | | |
| | | | | | | | 220,283 | |
| | | | | | | | | |
| |
| |
| | | | | | | | | |
Banks 3.2% |
| Banco Nacional de Comercio Exterior SNC, 3.88%, 01/21/09(b) | | | 41,000 | | | | 40,385 | |
| Bank of America Corp. | | | | | | | | |
| 6.60%, 05/15/10 | | | 82,000 | | | | 80,906 | |
| 4.50%, 08/01/10 | | | 144,000 | | | | 140,103 | |
| 4.38%, 12/01/10 | | | 410,000 | | | | 399,416 | |
| 5.38%, 08/15/11 | | | 267,000 | | | | 258,439 | |
| 4.88%, 09/15/12 | | | 201,000 | | | | 187,543 | |
| 4.88%, 01/15/13 | | | 451,000 | | | | 417,651 | |
| 4.75%, 08/01/15 | | | 431,000 | | | | 367,726 | |
| 5.25%, 12/01/15 | | | 513,000 | | | | 409,491 | |
| 6.00%, 06/15/16 | | | 205,000 | | | | 177,388 | |
| 5.63%, 10/14/16 | | | 440,000 | | | | 377,603 | |
| 5.30%, 03/15/17 | | | 500,000 | | | | 421,297 | |
| Bank of New York Mellon Corp. (The), 5.13%, 08/27/13 | | | 800,000 | | | | 762,463 | |
| Bank of Tokyo-Mitsubishi UFJ Ltd., 7.40%, 06/15/11 | | | 246,000 | | | | 233,179 | |
| Bank One Corp. | | | | | | | | |
| 7.88%, 08/01/10 | | | 41,000 | | | | 41,967 | |
| 5.25%, 01/30/13 | | | 103,000 | | | | 96,684 | |
| 8.00%, 04/29/27 | | | 202,000 | | | | 185,142 | |
| BB&T Corp. | | | | | | | | |
| 6.50%, 08/01/11 | | | 1,358,000 | | | | 1,355,012 | |
| 4.75%, 10/01/12 | | | 164,000 | | | | 148,783 | |
| Capital One Bank USA NA | | | | | | | | |
| 5.75%, 09/15/10 | | | 164,000 | | | | 152,527 | |
| 5.13%, 02/15/14 | | | 410,000 | | | | 348,370 | |
| Capital One Financial Corp. | | | | | | | | |
| 5.50%, 06/01/15 | | | 308,000 | | | | 256,608 | |
| 5.25%, 02/21/17 | | | 211,000 | | | | 165,185 | |
| Charter One Bank NA, 6.38%, 05/15/12 | | | 500,000 | | | | 476,611 | |
| Citigroup, Inc. | | | | | | | | |
| 4.13%, 02/22/10 | | | 369,000 | | | | 354,547 | |
| 4.63%, 08/03/10 | | | 226,000 | | | | 217,551 | |
| 6.50%, 01/18/11 | | | 92,000 | | | | 89,554 | |
| 5.13%, 02/14/11 | | | 62,000 | | | | 58,756 | |
| 6.00%, 02/21/12 | | | 103,000 | | | | 97,589 | |
| 5.25%, 02/27/12 | | | 850,000 | | | | 787,883 | |
| 5.63%, 08/27/12 | | | 205,000 | | | | 178,303 | |
| 5.30%, 01/07/16 | | | 1,321,000 | | | | 1,053,369 | |
| 5.85%, 08/02/16 | | | 287,000 | | | | 249,176 | |
| 6.63%, 06/15/32 | | | 232,000 | | | | 168,723 | |
| 5.88%, 02/22/33 | | | 82,000 | | | | 54,763 | |
| 5.88%, 05/29/37 | | | 200,000 | | | | 146,265 | |
| Comerica, Inc., 4.80%, 05/01/15 | | | 123,000 | | | | 65,102 | |
| Deutsche Bank AG London, 4.88%, 05/20/13 | | | 1,000,000 | | | | 931,880 | |
| Eksportfinans AS, 5.50%, 05/25/16 | | | 267,000 | | | | 277,639 | |
| FIA Card Services NA, 7.13%, 11/15/12(b) | | | 140,000 | | | | 136,491 | |
| Fifth Third Bank, 4.20%, 02/23/10 | | | 607,000 | | | | 566,153 | |
| Golden West Financial Corp., 4.75%, 10/01/12 | | | 109,000 | | | | 91,186 | |
| HBOS PLC, 5.46%, 11/29/49(b) | | | 246,000 | | | | 122,391 | |
| HSBC Bank USA NA | | | | | | | | |
| 4.63%, 04/01/14 | | | 410,000 | | | | 352,102 | |
| 6.00%, 08/09/17 | | | 250,000 | | | | 213,593 | |
| 5.88%, 11/01/34 | | | 498,000 | | | | 374,282 | |
| 5.63%, 08/15/35 | | | 250,000 | | | | 184,015 | |
| HSBC Holdings PLC, 6.50%, 05/02/36 | | | 500,000 | | | | 395,590 | |
| JPMorgan Chase & Co. | | | | | | | | |
| 4.50%, 11/15/10 | | | 828,000 | | | | 819,137 | |
| 4.60%, 01/17/11 | | | 410,000 | | | | 398,272 | |
| 6.63%, 03/15/12 | | | 447,000 | | | | 438,024 | |
| 4.75%, 03/01/15 | | | 176,000 | | | | 149,635 | |
| 5.15%, 10/01/15 | | | 349,000 | | | | 303,852 | |
| 6.00%, 01/15/18 | | | 750,000 | | | | 672,812 | |
| JPMorgan Chase Bank NA | | | | | | | | |
| 5.88%, 06/13/16 | | | 308,000 | | | | 278,574 | |
| 6.00%, 10/01/17 | | | 750,000 | | | | 656,544 | |
| KeyBank NA | | | | | | | | |
| 5.70%, 08/15/12 | | | 185,000 | | | | 159,207 | |
2008 Annual Report 11
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Banks (continued) |
| | | | | | | | | |
| 5.80%, 07/01/14 | | $ | 103,000 | | | $ | 83,041 | |
| Korea Development Bank | | | | | | | | |
| 4.75%, 07/20/09 | | | 615,000 | | | | 595,340 | |
| 5.75%, 09/10/13 | | | 82,000 | | | | 66,758 | |
| Manufacturers & Traders Trust Co., 3.85%, 04/01/13(b) | | | 300,000 | | | | 251,186 | |
| Marshall & Ilsley Bank, 5.25%, 09/04/12 | | | 113,000 | | | | 90,656 | |
| MBNA Corp., 5.00%, 05/04/10 | | | 226,000 | | | | 223,059 | |
| National City Corp., 4.90%, 01/15/15 | | | 246,000 | | | | 197,058 | |
| PNC Funding Corp., 5.25%, 11/15/15 | | | 246,000 | | | | 207,856 | |
| Regions Financial Corp., 6.38%, 05/15/12 | | | 892,000 | | | | 768,243 | |
| Royal Bank of Scotland Group PLC | | | | | | | | |
| 5.00%, 11/12/13 | | | 164,000 | | | | 136,649 | |
| 5.05%, 01/08/15 | | | 219,000 | | | | 167,944 | |
| Santander Central Hispano Issuances Ltd., 7.63%, 09/14/10 | | | 41,000 | | | | 38,663 | |
| Sovereign Bank, 5.13%, 03/15/13 | | | 200,000 | | | | 153,817 | |
| St. George Bank Ltd., 5.30%, 10/15/15(b) | | | 164,000 | | | | 141,054 | |
| State Street Bank & Trust Co., 5.30%, 01/15/16 | | | 200,000 | | | | 170,841 | |
| SunTrust Bank | | | | | | | | |
| 5.20%, 01/17/17 | | | 123,000 | | | | 98,530 | |
| 5.45%, 12/01/17 | | | 127,000 | | | | 102,883 | |
| Synovus Financial Corp., 4.88%, 02/15/13 | | | 62,000 | | | | 50,127 | |
| UBS AG | | | | | | | | |
| 5.88%, 07/15/16 | | | 679,000 | | | | 573,004 | |
| 5.88%, 12/20/17 | | | 250,000 | | | | 199,548 | |
| Union Planters Corp., 4.38%, 12/01/10 | | | 62,000 | | | | 57,045 | |
| UnionBanCal Corp., 5.25%, 12/16/13 | | | 144,000 | | | | 113,587 | |
| US Bancorp, Series P, 4.50%, 07/29/10 | | | 205,000 | | | | 200,605 | |
| US Bank NA | | | | | | | | |
| 6.38%, 08/01/11 | | | 249,000 | | | | 246,490 | |
| 4.95%, 10/30/14 | | | 185,000 | | | | 175,006 | |
| 4.80%, 04/15/15 | | | 92,000 | | | | 86,169 | |
| Wachovia Bank NA | | | | | | | | |
| 5.60%, 03/15/16 | | | 492,000 | | | | 395,868 | |
| 6.60%, 01/15/38 | | | 975,000 | | | | 770,914 | |
| Wachovia Corp. | | | | | | | | |
| 5.30%, 10/15/11 | | | 935,000 | | | | 882,574 | |
| 4.88%, 02/15/14 | | | 127,000 | | | | 105,517 | |
| 5.50%, 08/01/35 | | | 338,000 | | | | 244,149 | |
| Wells Fargo & Co. | | | | | | | | |
| 4.20%, 01/15/10 | | | 328,000 | | | | 323,151 | |
| 4.63%, 08/09/10 | | | 255,000 | | | | 253,944 | |
| 5.13%, 09/15/16 | | | 144,000 | | | | 123,374 | |
| 5.38%, 02/07/35 | | | 318,000 | | | | 238,704 | |
| 5.95%, 08/26/36 | | | 545,000 | | | | 445,408 | |
| | | | | | | | | |
| | | | | | | | 27,522,201 | |
| | | | | | | | | |
Beverages 0.2% |
| Anheuser-Busch Cos., Inc. | | | | | | | | |
| 4.38%, 01/15/13 | | | 21,000 | | | | 18,418 | |
| 5.00%, 03/01/19 | | | 164,000 | | | | 119,577 | |
| 5.75%, 04/01/36 | | | 151,000 | | | | 95,963 | |
| 6.00%, 11/01/41 | | | 103,000 | | | | 62,934 | |
| Bottling Group LLC, 4.63%, 11/15/12 | | | 287,000 | | | | 275,333 | |
Coca-Cola Bottling Co. Consolidated, 5.00%, 11/15/12 | | | 62,000 | | | | 57,608 | |
Coca-Cola Enterprises, Inc. | | | | | | | | |
| 8.50%, 02/01/12 | | | 146,000 | | | | 156,439 | |
| 6.95%, 11/15/26 | | | 103,000 | | | | 91,159 | |
| 6.75%, 09/15/28 | | | 494,000 | | | | 422,146 | |
| Miller Brewing Co., 5.50%, 08/15/13(b) | | | 103,000 | | | | 98,572 | |
| Pepsi Bottling Group, Inc., 7.00%, 03/01/29 | | | 144,000 | | | | 134,966 | |
| PepsiAmericas, Inc., 4.88%, 01/15/15 | | | 208,000 | | | | 179,923 | |
| | | | | | | | | |
| | | | | | | | 1,713,038 | |
| | | | | | | | | |
| |
| |
Building Products 0.0% |
| Lafarge SA, 6.50%, 07/15/16 | | | 185,000 | | | | 151,872 | |
| Stanley Works (The), 4.90%, 11/01/12 | | | 92,000 | | | | 88,236 | |
| | | | | | | | | |
| | | | | | | | 240,108 | |
| | | | | | | | | |
| |
| |
Chemicals 0.2% |
| Albemarle Corp., 5.10%, 02/01/15 | | | 82,000 | | | | 69,144 | |
| Cytec Industries, Inc., 6.00%, 10/01/15 | | | 113,000 | | | | 90,497 | |
| Dow Chemical Co. (The), 6.00%, 10/01/12 | | | 310,000 | | | | 294,011 | |
| E.I. du Pont de Nemours & Co., 5.25%, 12/15/16 | | | 515,000 | | | | 453,197 | |
| Lubrizol Corp. | | | | | | | | |
| 5.50%, 10/01/14 | | | 196,000 | | | | 162,531 | |
| 6.50%, 10/01/34 | | | 103,000 | | | | 90,661 | |
| Praxair, Inc., 3.95%, 06/01/13 | | | 123,000 | | | | 113,358 | |
| Rohm & Haas Co., 7.85%, 07/15/29 | | | 82,000 | | | | 70,087 | |
| Sealed Air Corp., 6.95%, 05/15/09(b) | | | 103,000 | | | | 103,121 | |
| Yara International ASA, 5.25%, 12/15/14(b) | | | 103,000 | | | | 86,319 | |
| | | | | | | | | |
| | | | | | | | 1,532,926 | |
| | | | | | | | | |
| |
| |
Consumer Goods 0.1% |
| Cadbury Schweppes US Finance LLC, 5.13%, 10/01/13(b) | | | 123,000 | | | | 109,928 | |
| Fortune Brands, Inc. | | | | | | | | |
| 5.13%, 01/15/11 | | | 287,000 | | | | 265,409 | |
| 5.38%, 01/15/16 | | | 585,000 | | | | 450,631 | |
| Procter & Gamble Co. | | | | | | | | |
| 4.85%, 12/15/15 | | | 123,000 | | | | 117,936 | |
| 5.80%, 08/15/34 | | | 405,000 | | | | 349,021 | |
| | | | | | | | | |
| | | | | | | | 1,292,925 | |
| | | | | | | | | |
12 Annual Report 2008
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Containers & Packaging 0.0% |
| Newell Rubbermaid, Inc., 4.00%, 05/01/10 | | $ | 62,000 | | | $ | 58,900 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 1.6% |
| AXA Financial, Inc., 7.75%, 08/01/10 | | | 185,000 | | | | 190,860 | |
| Bear Stearns Cos. LLC (The) | | | | | | | | |
| 4.55%, 06/23/10 | | | 1,943,000 | | | | 1,899,485 | |
| 5.70%, 11/15/14 | | | 256,000 | | | | 226,105 | |
| 5.30%, 10/30/15 | | | 123,000 | | | | 104,743 | |
| 4.65%, 07/02/18 | | | 246,000 | | | | 187,433 | |
| Goldman Sachs Group, Inc. (The) | | | | | | | | |
| 6.60%, 01/15/12 | | | 72,000 | | | | 68,054 | |
| 5.25%, 10/15/13 | | | 605,000 | | | | 516,716 | |
| 5.13%, 01/15/15 | | | 461,000 | | | | 382,564 | |
| 5.35%, 01/15/16 | | | 453,000 | | | | 372,438 | |
| 5.75%, 10/01/16 | | | 700,000 | | | | 576,547 | |
| 5.63%, 01/15/17 | | | 1,350,000 | | | | 989,252 | |
| 6.13%, 02/15/33 | | | 450,000 | | | | 333,229 | |
| 6.75%, 10/01/37 | | | 700,000 | | | | 455,909 | |
| Jefferies Group, Inc., 6.25%, 01/15/36 | | | 123,000 | | | | 81,232 | |
| Kreditanstalt fuer Wiederaufbau | | | | | | | | |
| 5.13%, 05/13/09 | | | 1,500,000 | | | | 1,520,080 | |
| 4.13%, 10/15/14 | | | 492,000 | | | | 500,486 | |
| 4.38%, 07/21/15 | | | 1,005,000 | | | | 1,009,122 | |
| Landwirtschaftliche Rentenbank | | | | | | | | |
| 4.88%, 02/14/11 | | | 615,000 | | | | 651,347 | |
| 5.25%, 07/15/11 | | | 250,000 | | | | 267,898 | |
| 5.13%, 02/01/17 | | | 600,000 | | | | 623,316 | |
| Morgan Stanley | | | | | | | | |
| 5.05%, 01/21/11 | | | 720,000 | | | | 655,993 | |
| 6.60%, 04/01/12 | | | 349,000 | | | | 312,577 | |
| 5.30%, 03/01/13 | | | 461,000 | | | | 381,283 | |
| 4.75%, 04/01/14 | | | 410,000 | | | | 291,607 | |
| 5.45%, 01/09/17 | | | 1,345,000 | | | | 1,074,858 | |
| 7.25%, 04/01/32 | | | 226,000 | | | | 172,435 | |
| | | | | | | | | |
| | | | | | | | 13,845,569 | |
| | | | | | | | | |
| |
| |
Diversified Manufacturing 0.4% |
| 3M Co, 5.70%, 03/15/37 | | | 235,000 | | | | 207,742 | |
| Exelon Corp. | | | | | | | | |
| 4.90%, 06/15/15 | | | 287,000 | | | | 214,722 | |
| 5.63%, 06/15/35 | | | 414,000 | | | | 242,454 | |
| Honeywell International, Inc. | | | | | | | | |
| 6.13%, 11/01/11 | | | 103,000 | | | | 103,373 | |
| 5.40%, 03/15/16 | | | 440,000 | | | | 394,658 | |
| International Paper Co. | | | | | | | | |
| 4.00%, 04/01/10 | | | 349,000 | | | | 326,235 | |
| 5.85%, 10/30/12 | | | 30,000 | | | | 25,771 | |
| 5.30%, 04/01/15 | | | 144,000 | | | | 107,039 | |
| Kimberly-Clark Corp. | | | | | | | | |
| 5.63%, 02/15/12 | | | 205,000 | | | | 204,811 | |
| 4.88%, 08/15/15 | | | 710,000 | | | | 644,780 | |
| Masco Corp. | | | | | | | | |
| 5.88%, 07/15/12 | | | 148,000 | | | | 138,231 | |
| 4.80%, 06/15/15 | | | 246,000 | | | | 185,727 | |
| 6.13%, 10/03/16 | | | 315,000 | | | | 222,938 | |
| Pitney Bowes, Inc. | | | | | | | | |
| 4.75%, 01/15/16 | | | 205,000 | | | | 168,350 | |
| 4.75%, 05/15/18 | | | 62,000 | | | | 48,460 | |
| Westvaco Corp., 7.95%, 02/15/31 | | | 82,000 | | | | 71,219 | |
| Weyerhaeuser Co. | | | | | | | | |
| 6.75%, 03/15/12 | | | 443,000 | | | | 381,269 | |
| 7.38%, 03/15/32 | | | 154,000 | | | | 105,650 | |
| | | | | | | | | |
| | | | | | | | 3,793,429 | |
| | | | | | | | | |
| |
| |
Electric Power 0.0% |
| Ohio Power Co., 6.00%, 06/01/16 | | | 349,000 | | | | 296,927 | |
| | | | | | | | | |
| |
| |
Electric Utilities 0.5% |
| Alabama Power Co., 5.70%, 02/15/33 | | | 226,000 | | | | 177,528 | |
| Appalachian Power Co., Series L, 5.80%, 10/01/35 | | | 144,000 | | | | 92,936 | |
| Arizona Public Service Co., 5.50%, 09/01/35 | | | 150,000 | | | | 84,320 | |
| Baltimore Gas & Electric Co., 5.90%, 10/01/16 | | | 615,000 | | | | 509,243 | |
| Commonwealth Edison Co., Series 98, 6.15%, 03/15/12 | | | 82,000 | | | | 78,131 | |
| Consolidated Edison Co. of New York, Inc. | | | | | | | | |
Series 99-B, 7.15%, 12/01/09 | | | 25,000 | | | | 25,189 | |
Series 02-B, 4.88%, 02/01/13 | | | 86,000 | | | | 79,779 | |
Series 05-C, 5.38%, 12/15/15 | | | 123,000 | | | | 107,656 | |
Series 03-A, 5.88%, 04/01/33 | | | 82,000 | | | | 59,617 | |
| Consumers Energy Co., Series F, 4.00%, 05/15/10 | | | 167,000 | | | | 159,273 | |
| Florida Power & Light Co. | | | | | | | | |
| 4.85%, 02/01/13 | | | 103,000 | | | | 100,422 | |
| 5.85%, 02/01/33 | | | 70,000 | | | | 59,888 | |
| 5.95%, 10/01/33 | | | 53,000 | | | | 45,883 | |
| 5.40%, 09/01/35 | | | 90,000 | | | | 71,695 | |
| 5.65%, 02/01/37 | | | 200,000 | | | | 164,680 | |
| Florida Power Corp., 5.90%, 03/01/33 | | | 247,000 | | | | 205,284 | |
| Georgia Power Co., Series K, 5.13%, 11/15/12 | | | 74,000 | | | | 71,794 | |
| Metropolitan Edison Co., 4.88%, 04/01/14 | | | 164,000 | | | | 140,344 | |
| MidAmerican Energy Co., 5.80%, 10/15/36 | | | 200,000 | | | | 143,361 | |
| MidAmerican Energy Holdings Co. | | | | | | | | |
| 5.88%, 10/01/12 | | | 441,000 | | | | 417,540 | |
| 6.13%, 04/01/36 | | | 555,000 | | | | 408,530 | |
| Ohio Power Co., Series G, 6.60%, 02/15/33 | | | 164,000 | | | | 125,306 | |
2008 Annual Report 13
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Electric Utilities (continued) |
| | | | | | | | | |
| Pacific Gas & Electric Co., 4.20%, 03/01/11 | | $ | 492,000 | | | $ | 468,763 | |
| PSEG Power LLC | | | | | | | | |
| 6.95%, 06/01/12 | | | 51,000 | | | | 48,203 | |
| 5.50%, 12/01/15 | | | 287,000 | | | | 227,771 | |
| Public Service Electric & Gas Co., Series B, 5.13%, 09/01/12 | | | 135,000 | | | | 126,547 | |
| Puget Sound Energy, Inc., 5.48%, 06/01/35 | | | 103,000 | | | | 66,937 | |
| Southern Power Co., Series B, 6.25%, 07/15/12 | | | 174,000 | | | | 172,190 | |
| Wisconsin Electric Power Co., 5.63%, 05/15/33 | | | 41,000 | | | | 31,291 | |
| | | | | | | | | |
| | | | | | | | 4,470,101 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 0.2% |
| Cooper Industries, Inc., 5.50%, 11/01/09 | | | 72,000 | | | | 70,543 | |
| General Electric Co., 5.00%, 02/01/13 | | | 946,000 | | | | 892,351 | |
| Motorola, Inc. | | | | | | | | |
| 7.63%, 11/15/10 | | | 111,000 | | | | 97,096 | |
| 7.50%, 05/15/25 | | | 144,000 | | | | 112,225 | |
| Northrop Grumman Systems Corp. | | | | | | | | |
| 7.13%, 02/15/11 | | | 274,000 | | | | 276,387 | |
| 7.75%, 02/15/31 | | | 82,000 | | | | 82,357 | |
| Raytheon Co. | | | | | | | | |
| 6.40%, 12/15/18 | | | 144,000 | | | | 132,182 | |
| 7.00%, 11/01/28 | | | 92,000 | | | | 83,403 | |
| Rockwell Collins, Inc., 4.75%, 12/01/13 | | | 205,000 | | | | 196,981 | |
| | | | | | | | | |
| | | | | | | | 1,943,525 | |
| | | | | | | | | |
| |
| |
Food Processors 0.3% |
| Archer-Daniels-Midland Co. | | | | | | | | |
| 5.94%, 10/01/32 | | | 140,000 | | | | 106,743 | |
| 5.38%, 09/15/35 | | | 103,000 | | | | 70,940 | |
| Campbell Soup Co., 4.88%, 10/01/13 | | | 164,000 | | | | 158,136 | |
| ConAgra Foods, Inc. | | | | | | | | |
| 6.75%, 09/15/11 | | | 62,000 | | | | 60,566 | |
| 7.00%, 10/01/28 | | | 154,000 | | | | 120,522 | |
| General Mills, Inc., 6.00%, 02/15/12 | | | 185,000 | | | | 181,472 | |
| Hershey Co. (The), 5.45%, 09/01/16 | | | 267,000 | | | | 243,653 | |
| Kellogg Co., Series B, 7.45%, 04/01/31 | | | 103,000 | | | | 102,878 | |
| Kraft Foods, Inc. | | | | | | | | |
| 4.13%, 11/12/09 | | | 410,000 | | | | 405,024 | |
| 5.63%, 11/01/11 | | | 326,000 | | | | 312,908 | |
| 6.00%, 02/11/13 | | | 200,000 | | | | 186,910 | |
| 6.50%, 11/01/31 | | | 131,000 | | | | 100,135 | |
| 6.88%, 02/01/38 | | | 300,000 | | | | 238,060 | |
| Sara Lee Corp., 6.25%, 09/15/11 | | | 174,000 | | | | 167,138 | |
| SYSCO Corp., 5.38%, 09/21/35 | | | 74,000 | | | | 53,162 | |
| Unilever Capital Corp. | | | | | | | | |
| 7.13%, 11/01/10 | | | 76,000 | | | | 78,552 | |
| 5.90%, 11/15/32 | | | 144,000 | | | | 116,922 | |
| W.M. Wrigley Jr. Co., 4.65%, 07/15/15 | | | 150,000 | | | | 95,874 | |
| | | | | | | | | |
| | | | | | | | 2,799,595 | |
| | | | | | | | | |
| |
| |
Gas Distribution 0.2% |
| Southern California Gas Co., 4.80%, 10/01/12 | | | 267,000 | | | | 257,161 | |
| Texas Eastern Transmission LP, 7.30%, 12/01/10 | | | 1,525,000 | | | | 1,504,609 | |
| | | | | | | | | |
| | | | | | | | 1,761,770 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 0.1% |
| Baxter International, Inc., 4.63%, 03/15/15 | | | 53,000 | | | | 47,581 | |
| Johnson & Johnson, 4.95%, 05/15/33 | | | 537,000 | | | | 433,367 | |
| Medtronic, Inc., Series B, 4.38%, 09/15/10 | | | 129,000 | | | | 126,564 | |
| | | | | | | | | |
| | | | | | | | 607,512 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 0.0% |
| Quest Diagnostics, Inc., 5.45%, 11/01/15 | | | 376,000 | | | | 304,299 | |
| | | | | | | | | |
| |
| |
Home Builder 0.0% |
| MDC Holdings, Inc., 5.50%, 05/15/13 | | | 103,000 | | | | 85,132 | |
| | | | | | | | | |
| |
| |
Independent Finance 0.2% |
| Credit Suisse USA, Inc. | | | | | | | | |
| 4.13%, 01/15/10 | | | 277,000 | | | | 270,420 | |
| 6.13%, 11/15/11 | | | 185,000 | | | | 176,873 | |
| 6.50%, 01/15/12 | | | 246,000 | | | | 239,651 | |
| 5.13%, 01/15/14 | | | 119,000 | | | | 103,215 | |
| 5.85%, 08/16/16 | | | 300,000 | | | | 236,976 | |
| 7.13%, 07/15/32 | | | 395,000 | | | | 311,801 | |
| | | | | | | | | |
| | | | | | | | 1,338,936 | |
| | | | | | | | | |
| |
| |
Industrial Conglomerates 0.1% |
| AstraZeneca PLC, 5.40%, 06/01/14 | | | 155,000 | | | | 147,176 | |
| Celulosa Arauco y Constitucion SA, 5.13%, 07/09/13 | | | 123,000 | | | | 110,838 | |
| Goodrich Corp. | | | | | | | | |
| 6.29%, 07/01/16 | | | 171,000 | | | | 154,963 | |
| 6.80%, 07/01/36 | | | 129,000 | | | | 110,706 | |
| | | | | | | | | |
| | | | | | | | 523,683 | |
| | | | | | | | | |
| |
| |
Insurance 0.7% |
| Ace INA Holdings, Inc., 5.88%, 06/15/14 | | | 390,000 | | | | 357,741 | |
| Aetna, Inc., 6.00%, 06/15/16 | | | 650,000 | | | | 543,768 | |
| AIG Life Holdings US, Inc., 7.50%, 07/15/25 | | | 103,000 | | | | 64,392 | |
| Allstate Corp. (The) | | | | | | | | |
| 6.13%, 02/15/12 | | | 176,000 | | | | 177,065 | |
14 Annual Report 2008
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Insurance (continued) |
| | | | | | | | | |
| 7.50%, 06/15/13 | | $ | 425,000 | | | $ | 425,723 | |
| 5.00%, 08/15/14 | | | 205,000 | | | | 181,869 | |
| 6.13%, 12/15/32 | | | 82,000 | | | | 59,666 | |
| 5.55%, 05/09/35 | | | 62,000 | | | | 40,270 | |
| 5.95%, 04/01/36 | | | 82,000 | | | | 55,709 | |
| AXA Financial, Inc., 7.00%, 04/01/28 | | | 92,000 | | | | 85,210 | |
| Chubb Corp., 6.00%, 05/11/37 | | | 225,000 | | | | 160,254 | |
| Genworth Financial, Inc. | | | | | | | | |
| 5.75%, 06/15/14 | | | 62,000 | | | | 30,941 | |
| 6.50%, 06/15/34 | | | 144,000 | | | | 55,366 | |
| Hartford Financial Services Group, Inc. | | | | | | | | |
| 4.75%, 03/01/14 | | | 82,000 | | | | 61,433 | |
| 6.10%, 10/01/41 | | | 41,000 | | | | 23,227 | |
| Infinity Property & Casualty Corp., Series B, 5.50%, 02/18/14 | | | 82,000 | | | | 81,751 | |
| Lincoln National Corp., 6.15%, 04/07/36 | | | 410,000 | | | | 263,505 | |
| Marsh & McLennan Cos., Inc. | | | | | | | | |
| 6.25%, 03/15/12 | | | 72,000 | | | | 72,565 | |
| 5.75%, 09/15/15 | | | 327,000 | | | | 301,870 | |
| MetLife, Inc. | | | | | | | | |
| 6.13%, 12/01/11 | | | 445,000 | | | | 431,014 | |
| 5.50%, 06/15/14 | | | 185,000 | | | | 162,741 | |
| 5.70%, 06/15/35 | | | 336,000 | | | | 227,095 | |
| NLV Financial Corp., 7.50%, 08/15/33(b) | | | 51,000 | | | | 49,066 | |
| Progressive Corp. (The), 6.25%, 12/01/32 | | | 113,000 | | | | 81,241 | |
| RLI Corp., 5.95%, 01/15/14 | | | 82,000 | | | | 81,547 | |
| Travelers Cos., Inc. (The), 5.75%, 12/15/17 | | | 340,000 | | | | 289,345 | |
| Travelers Property Casualty Corp., 6.38%, 03/15/33 | | | 133,000 | | | | 97,307 | |
| UnitedHealth Group, Inc. | | | | | | | | |
| 5.38%, 03/15/16 | | | 205,000 | | | | 154,465 | |
| 5.80%, 03/15/36 | | | 417,000 | | | | 256,521 | |
| W.R. Berkley Corp., 5.13%, 09/30/10 | | | 72,000 | | | | 71,966 | |
| WellPoint, Inc. | | | | | | | | |
| 5.00%, 12/15/14 | | | 598,000 | | | | 516,227 | |
| 5.25%, 01/15/16 | | | 226,000 | | | | 180,120 | |
| 5.95%, 12/15/34 | | | 82,000 | | | | 60,729 | |
| XL Capital Ltd., 5.25%, 09/15/14 | | | 541,000 | | | | 359,312 | |
| | | | | | | | | |
| | | | | | | | 6,061,021 | |
| | | | | | | | | |
| |
| |
Leasing 0.0% |
| International Lease Finance Corp., 5.00%, 04/15/10 | | | 410,000 | | | | 304,170 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 0.1% |
| Walt Disney Co. (The) | | | | | | | | |
| Series B, 6.38%, 03/01/12 | | | 97,000 | | | | 98,354 | |
| Series B, 6.20%, 06/20/14 | | | 687,000 | | | | 673,542 | |
| | | | | | | | | |
| | | | | | | | 771,896 | |
| | | | | | | | | |
| |
| |
Machinery 0.2% |
| Black & Decker Corp., 4.75%, 11/01/14 | | | 160,000 | | | | 131,623 | |
| Caterpillar, Inc. | | | | | | | | |
| 7.30%, 05/01/31 | | | 70,000 | | | | 64,043 | |
| 6.05%, 08/15/36 | | | 123,000 | | | | 97,755 | |
| Deere & Co. | | | | | | | | |
| 6.95%, 04/25/14 | | | 611,000 | | | | 619,040 | |
| 8.10%, 05/15/30 | | | 400,000 | | | | 398,772 | |
| Dover Corp., 4.88%, 10/15/15 | | | 156,000 | | | | 142,034 | |
| Emerson Electric Co., 6.00%, 08/15/32 | | | 57,000 | | | | 47,958 | |
| | | | | | | | | |
| | | | | | | | 1,501,225 | |
| | | | | | | | | |
| |
| |
Media 0.7% |
| CBS Corp. | | | | | | | | |
| 5.63%, 08/15/12 | | | 310,000 | | | | 258,012 | |
| 7.88%, 07/30/30 | | | 55,000 | | | | 39,573 | |
| 5.50%, 05/15/33 | | | 82,000 | | | | 49,562 | |
| Comcast Cable Communications Holdings, Inc. | | | | | | | | |
| 8.38%, 03/15/13 | | | 164,000 | | | | 159,095 | |
| 9.46%, 11/15/22 | | | 82,000 | | | | 78,800 | |
| Comcast Cable Holdings LLC, 9.80%, 02/01/12 | | | 213,000 | | | | 215,495 | |
| Comcast Corp. | | | | | | | | |
| 5.85%, 01/15/10 | | | 351,000 | | | | 344,054 | |
| 5.90%, 03/15/16 | | | 287,000 | | | | 246,984 | |
| 6.50%, 01/15/17 | | | 507,000 | | | | 445,673 | |
| 7.05%, 03/15/33 | | | 205,000 | | | | 169,961 | |
| 6.50%, 11/15/35 | | | 70,000 | | | | 53,735 | |
| 6.45%, 03/15/37 | | | 488,000 | | | | 374,769 | |
| COX Communications, Inc. | | | | | | | | |
| 5.45%, 12/15/14 | | | 246,000 | | | | 208,805 | |
| 5.50%, 10/01/15 | | | 667,000 | | | | 549,125 | |
| Historic TW, Inc., 6.88%, 06/15/18 | | | 122,000 | | | | 99,543 | |
| Time Warner Cable, Inc., 6.20%, 07/01/13 | | | 500,000 | | | | 456,141 | |
| Time Warner, Inc. | | | | | | | | |
| 6.88%, 05/01/12 | | | 384,000 | | | | 345,032 | |
| 5.88%, 11/15/16(b) | | | 475,000 | | | | 380,160 | |
| 7.63%, 04/15/31 | | | 773,000 | | | | 618,088 | |
| 7.70%, 05/01/32 | | | 648,000 | | | | 523,457 | |
| Viacom, Inc. | | | | | | | | |
| 6.25%, 04/30/16 | | | 351,000 | | | | 283,038 | |
| 6.88%, 04/30/36 | | | 226,000 | | | | 157,764 | |
| | | | | | | | | |
| | | | | | | | 6,056,866 | |
| | | | | | | | | |
| |
| |
Metals & Mining 0.1% |
| Alcan, Inc. | | | | | | | | |
| 5.00%, 06/01/15 | | | 205,000 | | | | 154,624 | |
2008 Annual Report 15
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Metals & Mining (continued) |
| | | | | | | | | |
| 5.75%, 06/01/35 | | $ | 144,000 | | | $ | 89,527 | |
| Alcoa, Inc., 5.87%, 02/23/22 | | | 335,000 | | | | 216,653 | |
| Barrick Gold Finance Co., 4.88%, 11/15/14 | | | 160,000 | | | | 134,672 | |
| Newmont Mining Corp., 5.88%, 04/01/35 | | | 164,000 | | | | 119,729 | |
| Placer Dome, Inc., 6.38%, 03/01/33 | | | 96,000 | | | | 78,879 | |
| Vale Overseas Ltd., 6.88%, 11/21/36 | | | 556,000 | | | | 399,478 | |
| | | | | | | | | |
| | | | | | | | 1,193,562 | |
| | | | | | | | | |
| |
| |
Mortgage Banks 0.1% |
| Countrywide Home Loans, Inc. | | | | | | | | |
| Series K, 5.63%, 07/15/09 | | | 390,000 | | | | 377,493 | |
| Series L, 4.00%, 03/22/11 | | | 494,000 | | | | 455,573 | |
| | | | | | | | | |
| | | | | | | | 833,066 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 0.7% |
| Anadarko Petroleum Corp., 6.45%, 09/15/36 | | | 269,000 | | | | 191,868 | |
| Apache Corp. | | | | | | | | |
| 6.25%, 04/15/12 | | | 160,000 | | | | 158,075 | |
| 7.63%, 07/01/19 | | | 41,000 | | | | 40,685 | |
| Atmos Energy Corp. | | | | | | | | |
| 4.00%, 10/15/09 | | | 287,000 | | | | 270,610 | |
| 5.13%, 01/15/13 | | | 92,000 | | | | 81,913 | |
| 4.95%, 10/15/14 | | | 185,000 | | | | 146,821 | |
| Boardwalk Pipelines LP, 5.20%, 06/01/18 | | | 62,000 | | | | 46,112 | |
| Canadian Natural Resources Ltd., 6.25%, 03/15/38 | | | 660,000 | | | | 460,558 | |
| Colonial Pipeline Co., 7.63%, 04/15/32 | | | 150,000 | | | | 125,546 | |
| ConocoPhillips | | | | | | | | |
| 8.75%, 05/25/10 | | | 246,000 | | | | 256,229 | |
| 4.75%, 10/15/12 | | | 270,000 | | | | 255,985 | |
| 5.90%, 10/15/32 | | | 123,000 | | | | 95,426 | |
| ConocoPhillips Holding Co., 6.95%, 04/15/29 | | | 152,000 | | | | 132,491 | |
| Devon Energy Corp., 7.95%, 04/15/32 | | | 250,000 | | | | 226,532 | |
| Devon OEI Operating, Inc., 7.25%, 10/01/11 | | | 402,000 | | | | 403,126 | |
| Enterprise Products Operating LP, Series B, 5.60%, 10/15/14 | | | 656,000 | | | | 549,746 | |
| Hess Corp., 7.30%, 08/15/31 | | | 196,000 | | | | 156,657 | |
| Kinder Morgan Energy Partners LP | | | | | | | | |
| 7.50%, 11/01/10 | | | 144,000 | | | | 137,647 | |
| 6.75%, 03/15/11 | | | 64,000 | | | | 61,708 | |
| 5.80%, 03/15/35 | | | 144,000 | | | | 91,225 | |
| Marathon Oil Corp., 6.80%, 03/15/32 | | | 82,000 | | | | 61,287 | |
| Motiva Enterprises LLC, 5.20%, 09/15/12(b) | | | 51,000 | | | | 53,128 | |
| Murphy Oil Corp., 6.38%, 05/01/12 | | | 41,000 | | | | 40,380 | |
| Occidental Petroleum Corp. | | | | | | | | |
| 6.75%, 01/15/12 | | | 185,000 | | | | 188,111 | |
| 7.00%, 11/01/13 | | | 750,000 | | | | 771,795 | |
| PTT PCL, 5.88%, 08/03/35(b) | | | 123,000 | | | | 73,613 | |
| Valero Energy Corp. | | | | | | | | |
| 6.88%, 04/15/12 | | | 260,000 | | | | 250,372 | |
| 7.50%, 04/15/32 | | | 82,000 | | | | 62,627 | |
| 6.63%, 06/15/37 | | | 320,000 | | | | 227,338 | |
| XTO Energy, Inc. | | | | | | | | |
| 5.30%, 06/30/15 | | | 195,000 | | | | 159,588 | |
| 5.65%, 04/01/16 | | | 82,000 | | | | 64,633 | |
| 6.50%, 12/15/18 | | | 140,000 | | | | 117,238 | |
| 6.38%, 06/15/38 | | | 390,000 | | | | 273,862 | |
| | | | | | | | | |
| | | | | | | | 6,232,932 | |
| | | | | | | | | |
| |
| |
Oilfield Machinery & Services 0.1% |
| Halliburton Co., 5.50%, 10/15/10 | | | 228,000 | | | | 229,029 | |
| Nabors Industries, Inc., 5.38%, 08/15/12 | | | 29,000 | | | | 28,427 | |
| Plains All American Pipeline LP, 5.63%, 12/15/13 | | | 230,000 | | | | 190,377 | |
| Transocean, Inc., 7.50%, 04/15/31 | | | 123,000 | | | | 104,196 | |
| | | | | | | | | |
| | | | | | | | 552,029 | |
| | | | | | | | | |
| |
| |
Other Financial 3.0% |
| AIG SunAmerica Global Financing X, 6.90%, 03/15/32(b) | | | 287,000 | | | | 171,100 | |
| American Express Co., 4.88%, 07/15/13 | | | 837,000 | | | | 664,885 | |
| American General Finance Corp., Series H, 5.38%, 10/01/12 | | | 572,000 | | | | 200,331 | |
| American International Group, Inc. | | | | | | | | |
| 5.05%, 10/01/15 | | | 103,000 | | | | 38,470 | |
| 5.60%, 10/18/16 | | | 290,000 | | | | 104,763 | |
| 5.85%, 01/16/18 | | | 1,300,000 | | | | 471,730 | |
| 6.25%, 05/01/36 | | | 164,000 | | | | 55,844 | |
| Ameritech Capital Funding Corp., 6.45%, 01/15/18 | | | 62,000 | | | | 62,597 | |
| Anadarko Finance Co. | | | | | | | | |
| 6.75%, 05/01/11 | | | 82,000 | | | | 81,721 | |
| 7.50%, 05/01/31 | | | 207,000 | | | | 160,263 | |
| Apache Finance Canada Corp., 4.38%, 05/15/15 | | | 238,000 | | | | 203,564 | |
| Associates Corp. of North America, 6.95%, 11/01/18 | | | 236,000 | | | | 203,022 | |
| Berkshire Hathaway Finance Corp., 4.85%, 01/15/15 | | | 246,000 | | | | 232,093 | |
| BHP Billiton Finance USA Ltd., 5.25%, 12/15/15 | | | 550,000 | | | | 467,079 | |
| Boeing Capital Corp., 6.10%, 03/01/11 | | | 35,000 | | | | 34,939 | |
| BP Capital Markets America, Inc., 4.20%, 06/15/18 | | | 103,000 | | | | 76,323 | |
| BSKYB Finance UK PLC, 5.63%, 10/15/15(b) | | | 103,000 | | | | 87,781 | |
16 Annual Report 2008
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Other Financial (continued) |
| | | | | | | | | |
| Bunge Ltd. Finance Corp., 5.10%, 07/15/15 | | $ | 62,000 | | | $ | 44,738 | |
| Caterpillar Financial Services Corp. | | | | | | | | |
| 5.05%, 12/01/10 | | | 260,000 | | | | 254,117 | |
| 5.50%, 03/15/16 | | | 205,000 | | | | 177,410 | |
| CIT Group Funding Co. of Canada, 5.20%, 06/01/15 | | | 123,000 | | | | 64,413 | |
| CIT Group, Inc. | | | | | | | | |
| 4.75%, 12/15/10 | | | 139,000 | | | | 85,162 | |
| 5.13%, 09/30/14 | | | 174,000 | | | | 87,378 | |
| 5.40%, 01/30/16 | | | 123,000 | | | | 60,699 | |
| 5.85%, 09/15/16 | | | 575,000 | | | | 286,751 | |
| 6.00%, 04/01/36 | | | 144,000 | | | | 68,796 | |
| Conoco Funding Co., 6.35%, 10/15/11 | | | 408,000 | | | | 411,439 | |
| ConocoPhillips Australia Funding Co., 5.50%, 04/15/13 | | | 226,000 | | | | 215,963 | |
| Continental Airlines, Inc. | | | | | | | | |
Series 00-1, 7.92%, 05/01/10 | | | 250,000 | | | | 222,500 | |
Series 02-1, 6.56%, 08/15/13 | | | 162,000 | | | | 132,840 | |
| CRH America, Inc., 6.00%, 09/30/16 | | | 465,000 | | | | 335,497 | |
| Daimler Finance North America LLC | | | | | | | | |
| 5.88%, 03/15/11 | | | 1,513,000 | | | | 1,234,889 | |
| 7.30%, 01/15/12 | | | 271,000 | | | | 220,882 | |
| 6.50%, 11/15/13 | | | 338,000 | | | | 253,359 | |
| Deutsche Bank Financial LLC, 5.38%, 03/02/15(b) | | | 123,000 | | | | 105,504 | |
| Deutsche Telekom International Finance BV | | | | | | | | |
| 5.25%, 07/22/13 | | | 513,000 | | | | 454,407 | |
| 5.75%, 03/23/16 | | | 623,000 | | | | 510,051 | |
| 8.25%, 06/15/30 | | | 256,000 | | | | 226,674 | |
| Devon Financing Corp. ULC, 6.88%, 09/30/11 | | | 297,000 | | | | 294,971 | |
| Diageo Capital PLC, 5.50%, 09/30/16 | | | 300,000 | | | | 257,924 | |
| Diageo Finance BV, 5.30%, 10/28/15 | | | 451,000 | | | | 392,006 | |
| EnCana Holdings Finance Corp., 5.80%, 05/01/14 | | | 791,000 | | | | 699,062 | |
| General Electric Capital Corp. | | | | | | | | |
| Series A, 3.75%, 12/15/09 | | | 574,000 | | | | 563,353 | |
| 5.50%, 04/28/11 | | | 287,000 | | | | 281,716 | |
| Series A, 5.88%, 02/15/12 | | | 41,000 | | | | 39,046 | |
| Series A, 6.00%, 06/15/12 | | | 182,000 | | | | 174,001 | |
| Series A, 4.88%, 03/04/15 | | | 431,000 | | | | 368,188 | |
| Series A, 5.00%, 01/08/16 | | | 205,000 | | | | 164,550 | |
| 5.40%, 02/15/17 | | | 415,000 | | | | 345,586 | |
| Series A, 5.63%, 09/15/17 | | | 1,150,000 | | | | 940,173 | |
| Series A, 6.75%, 03/15/32 | | | 867,000 | | | | 703,510 | |
| 6.15%, 08/07/37 | | | 750,000 | | | | 551,487 | |
| GlaxoSmithKline Capital, Inc., 5.38%, 04/15/34 | | | 139,000 | | | | 103,038 | |
| H.J. Heinz Finance Co. | | | | | | | | |
| 6.00%, 03/15/12 | | | 150,000 | | | | 146,576 | |
| 6.75%, 03/15/32 | | | 62,000 | | | | 49,428 | |
| Hanson Australia Funding Ltd., 5.25%, 03/15/13 | | | 185,000 | | | | 114,712 | |
| HSBC Finance Corp. | | | | | | | | |
| 4.75%, 04/15/10 | | | 246,000 | | | | 238,533 | |
| 7.00%, 05/15/12 | | | 264,000 | | | | 246,946 | |
| 5.25%, 04/15/15 | | | 185,000 | | | | 158,784 | |
| 5.00%, 06/30/15 | | | 349,000 | | | | 288,692 | |
| ING Security Life Institutional Funding, 4.25%, 01/15/10(b) | | | 620,000 | | | | 617,222 | |
| Inversiones CMPC SA, 4.88%, 06/18/13(b) | | | 123,000 | | | | 111,568 | |
| McDonnell Douglas Corp., 9.75%, 04/01/12 | | | 325,000 | | | | 351,899 | |
| Mellon Funding Corp. | | | | | | | | |
| 6.40%, 05/14/11 | | | 185,000 | | | | 186,421 | |
| 5.00%, 12/01/14 | | | 185,000 | | | | 157,571 | |
| National Rural Utilities Cooperative Finance Corp. | | | | | | | | |
| 4.75%, 03/01/14 | | | 226,000 | | | | 188,299 | |
| 5.45%, 04/10/17 | | | 400,000 | | | | 312,653 | |
| Series C, 8.00%, 03/01/32 | | | 111,000 | | | | 88,513 | |
| NiSource Finance Corp., 5.25%, 09/15/17 | | | 180,000 | | | | 122,511 | |
| Nissan Motor Acceptance Corp., 4.63%, 03/08/10(b) | | | 113,000 | | | | 113,631 | |
| Oesterreichische Kontrollbank AG | | | | | | | | |
| 4.50%, 03/09/15 | | | 164,000 | | | | 169,262 | |
| 4.88%, 02/16/16 | | | 250,000 | | | | 257,580 | |
| Pemex Project Funding Master Trust | | | | | | | | |
| 9.13%, 10/13/10 | | | 97,000 | | | | 97,000 | |
| 6.63%, 06/15/35 | | | 226,000 | | | | 168,368 | |
| Popular North America, Inc., 4.70%, 06/30/09 | | | 226,000 | | | | 217,153 | |
| Principal Life Global Funding I | | | | | | | | |
| 6.25%, 02/15/12 | | | 150,000 | | | | 146,438 | |
| 5.25%, 01/15/13 | | | 615,000 | | | | 560,505 | |
| Prudential Financial, Inc. | | | | | | | | |
| 5.10%, 12/14/11 | | | 515,000 | | | | 456,451 | |
| Series B, 5.10%, 09/20/14 | | | 205,000 | | | | 155,088 | |
| 6.00%, 12/01/17 | | | 500,000 | | | | 379,886 | |
| Series B, 5.75%, 07/15/33 | | | 103,000 | | | | 60,637 | |
| SLM Corp. | | | | | | | | |
| 5.13%, 08/27/12 | | | 825,000 | | | | 550,985 | |
| Series A, 5.38%, 05/15/14 | | | 759,000 | | | | 465,514 | |
| Spectra Energy Capital LLC, 6.75%, 02/15/32 | | | 123,000 | | | | 90,462 | |
| Telecom Italia Capital SA | | | | | | | | |
| 6.20%, 07/18/11 | | | 144,000 | | | | 122,182 | |
| 4.95%, 09/30/14 | | | 205,000 | | | | 147,731 | |
| 5.25%, 10/01/15 | | | 730,000 | | | | 500,711 | |
| 6.00%, 09/30/34 | | | 160,000 | | | | 87,079 | |
| Teva Pharmaceutical Finance LLC, 6.15%, 02/01/36 | | | 98,000 | | | | 70,858 | |
2008 Annual Report 17
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Other Financial (continued) |
| | | | | | | | | |
| Textron Financial Corp., 4.60%, 05/03/10 | | $ | 245,000 | | | $ | 226,481 | |
| TIAA Global Markets, Inc., 4.95%, 07/15/13(b) | | | 600,000 | | | | 564,052 | |
| Toll Brothers Finance Corp., 6.88%, 11/15/12 | | | 62,000 | | | | 50,591 | |
| UFJ Finance Aruba AEC, 6.75%, 07/15/13 | | | 246,000 | | | | 259,928 | |
| Verizon Communications, Inc. | | | | | | | | |
| 4.90%, 09/15/15 | | | 410,000 | | | | 347,061 | |
| 5.85%, 09/15/35 | | | 82,000 | | | | 60,119 | |
| Verizon Global Funding Corp. | | | | | | | | |
| 6.88%, 06/15/12 | | | 205,000 | | | | 198,373 | |
| 7.38%, 09/01/12 | | | 363,000 | | | | 355,384 | |
| 4.38%, 06/01/13 | | | 256,000 | | | | 226,242 | |
| 7.75%, 12/01/30 | | | 810,000 | | | | 723,622 | |
| Western & Southern Financial Group, Inc., 5.75%, 07/15/33(b) | | | 103,000 | | | | 75,084 | |
| Willis North America, Inc., 5.63%, 07/15/15 | | | 123,000 | | | | 96,343 | |
| | | | | | | | | |
| | | | | | | | 26,029,714 | |
| | | | | | | | | |
| |
| |
Other Utility 0.5% |
| American Electric Power Co., Inc., 5.25%, 06/01/15 | | | 133,000 | | | | 108,743 | |
| Consolidated Natural Gas Co., Series A, 5.00%, 12/01/14 | | | 396,000 | | | | 329,901 | |
| Dominion Resources, Inc. | | | | | | | | |
| 5.70%, 09/17/12 | | | 113,000 | | | | 104,249 | |
| Series E, 6.30%, 03/15/33 | | | 308,000 | | | | 217,064 | |
| Series B, 5.95%, 06/15/35 | | | 174,000 | | | | 116,795 | |
| DTE Energy Co., 6.35%, 06/01/16 | | | 287,000 | | | | 224,123 | |
| Duke Energy Ohio, Inc. | | | | | | | | |
| 5.70%, 09/15/12 | | | 29,000 | | | | 28,266 | |
| Series A, 5.40%, 06/15/33 | | | 51,000 | | | | 35,921 | |
| Entergy Gulf States, Inc., 5.25%, 08/01/15 | | | 123,000 | | | | 98,034 | |
| Entergy Mississippi, Inc., 5.15%, 02/01/13 | | | 201,000 | | | | 183,972 | |
| FirstEnergy Corp., Series C, 7.38%, 11/15/31 | | | 287,000 | | | | 222,603 | |
| New York State Electric & Gas Corp., 5.75%, 05/01/23 | | | 41,000 | | | | 30,310 | |
| Oncor Electric Delivery Co. | | | | | | | | |
| 6.38%, 05/01/12 | | | 383,000 | | | | 364,169 | |
| 6.38%, 01/15/15 | | | 308,000 | | | | 273,762 | |
| Pacific Gas & Electric Co. | | | | | | | | |
| 4.80%, 03/01/14 | | | 328,000 | | | | 290,569 | |
| 5.80%, 03/01/37 | | | 400,000 | | | | 298,108 | |
| PacifiCorp, 5.25%, 06/15/35 | | | 123,000 | | | | 87,636 | |
| Pepco Holdings, Inc. | | | | | | | | |
| 6.45%, 08/15/12 | | | 74,000 | | | | 70,270 | |
| 7.45%, 08/15/32 | | | 82,000 | | | | 62,492 | |
| Progress Energy, Inc. | | | | | | | | |
| 7.10%, 03/01/11 | | | 85,000 | | | | 84,243 | |
| 7.75%, 03/01/31 | | | 164,000 | | | | 137,469 | |
| Public Service Co. of Colorado, Series 15, 5.50%, 04/01/14 | | | 174,000 | | | | 161,794 | |
| SCANA Corp. | | | | | | | | |
| 6.88%, 05/15/11 | | | 359,000 | | | | 359,046 | |
| 6.25%, 02/01/12 | | | 103,000 | | | | 101,166 | |
| Southern California Edison Co. | | | | | | | | |
| 6.00%, 01/15/34 | | | 123,000 | | | | 103,358 | |
| 5.55%, 01/15/36 | | | 164,000 | | | | 128,553 | |
| Virginia Electric and Power Co., Series A, 5.40%, 01/15/16 | | | 103,000 | | | | 87,880 | |
| Westar Energy, Inc., 6.00%, 07/01/14 | | | 185,000 | | | | 171,310 | |
| Xcel Energy, Inc. | | | | | | | | |
| 5.61%, 04/01/17 | | | 173,000 | | | | 145,874 | |
| 6.50%, 07/01/36 | | | 123,000 | | | | 95,800 | |
| | | | | | | | | |
| | | | | | | | 4,723,480 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 0.6% |
| Abbott Laboratories, 5.88%, 05/15/16 | | | 334,000 | | | | 319,141 | |
| Bristol-Myers Squibb Co., 5.25%, 08/15/13 | | | 825,000 | | | | 803,878 | |
| Eli Lilly & Co. | | | | | | | | |
| 6.00%, 03/15/12 | | | 205,000 | | | | 210,206 | |
| 5.20%, 03/15/17 | | | 800,000 | | | | 725,912 | |
| 7.13%, 06/01/25 | | | 82,000 | | | | 79,418 | |
| Genentech, Inc., 5.25%, 07/15/35 | | | 62,000 | | | | 47,386 | |
| Merck & Co., Inc. | | | | | | | | |
| 4.75%, 03/01/15 | | | 396,000 | | | | 364,162 | |
| 6.40%, 03/01/28 | | | 51,000 | | | | 46,020 | |
| 5.95%, 12/01/28 | | | 113,000 | | | | 101,374 | |
| Pfizer, Inc., 4.65%, 03/01/18 | | | 185,000 | | | | 163,350 | |
| Pharmacia Corp., 6.60%, 12/01/28 | | | 123,000 | | | | 113,267 | |
| Schering-Plough Corp., 5.30%, 12/01/13 | | | 800,000 | | | | 758,702 | |
| Wyeth | | | | | | | | |
| 5.50%, 02/01/14 | | | 472,000 | | | | 442,310 | |
| 5.50%, 02/15/16 | | | 741,000 | | | | 670,655 | |
| 6.50%, 02/01/34 | | | 144,000 | | | | 117,660 | |
| 6.00%, 02/15/36 | | | 200,000 | | | | 156,218 | |
| | | | | | | | | |
| | | | | | | | 5,119,659 | |
| | | | | | | | | |
| |
| |
Pipelines 0.2% |
| AGL Capital Corp., 4.45%, 04/15/13 | | | 123,000 | | | | 107,636 | |
| CenterPoint Energy Resources Corp., 7.88%, 04/01/13 | | | 246,000 | | | | 231,692 | |
| Consolidated Natural Gas Co., Series C, 6.25%, 11/01/11 | | | 313,000 | | | | 298,941 | |
18 Annual Report 2008
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Pipelines (continued) |
| | | | | | | | | |
| Duke Energy Carolinas LLC, 6.25%, 01/15/12 | | $ | 970,000 | | | $ | 963,869 | |
| Texas Gas Transmission LLC, 4.60%, 06/01/15 | | | 123,000 | | | | 96,707 | |
| | | | | | | | | |
| | | | | | | | 1,698,845 | |
| | | | | | | | | |
| |
| |
Publishing 0.1% |
| Gannett Co., Inc., 6.38%, 04/01/12 | | | 164,000 | | | | 113,174 | |
| News America, Inc. | | | | | | | | |
| 9.25%, 02/01/13 | | | 82,000 | | | | 83,093 | |
| 5.30%, 12/15/14 | | | 433,000 | | | | 377,903 | |
| 8.00%, 10/17/16 | | | 82,000 | | | | 78,158 | |
| 7.28%, 06/30/28 | | | 53,000 | | | | 41,797 | |
| 6.20%, 12/15/34 | | | 170,000 | | | | 128,365 | |
| 6.40%, 12/15/35 | | | 323,000 | | | | 244,490 | |
| Thomson Reuters Corp., 4.25%, 08/15/09 | | | 174,000 | | | | 170,648 | |
| | | | | | | | | |
| | | | | | | | 1,237,628 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 0.5% |
| AvalonBay Communities, Inc. | | | | | | | | |
| 6.63%, 09/15/11 | | | 62,000 | | | | 57,415 | |
| 5.50%, 01/15/12 | | | 465,000 | | | | 405,669 | |
| Boston Properties LP, 5.00%, 06/01/15 | | | 360,000 | | | | 269,163 | |
| Brandywine Operating Partnership LP, 5.63%, 12/15/10 | | | 125,000 | | | | 108,721 | |
| Camden Property Trust, 5.00%, 06/15/15 | | | 103,000 | | | | 72,502 | |
| Colonial Realty LP, 6.25%, 06/15/14 | | | 320,000 | | | | 284,778 | |
| Developers Diversified Realty Corp., 5.38%, 10/15/12 | | | 205,000 | | | | 153,251 | |
| Duke Realty LP | | | | | | | | |
| 5.25%, 01/15/10 | | | 123,000 | | | | 115,300 | |
| 4.63%, 05/15/13 | | | 535,000 | | | | 402,291 | |
| ERP Operating LP | | | | | | | | |
| 5.25%, 09/15/14 | | | 278,000 | | | | 207,967 | |
| 5.38%, 08/01/16 | | | 205,000 | | | | 140,287 | |
| HCP, Inc. | | | | | | | | |
| 6.45%, 06/25/12 | | | 39,000 | | | | 35,546 | |
| 6.00%, 01/30/17 | | | 328,000 | | | | 232,968 | |
| Health Care REIT, Inc., 6.00%, 11/15/13 | | | 123,000 | | | | 105,676 | |
| Hospitality Properties Trust, 6.75%, 02/15/13 | | | 525,000 | | | | 466,206 | |
| HRPT Properties Trust, 5.75%, 02/15/14 | | | 123,000 | | | | 94,572 | |
| iStar Financial, Inc., 5.65%, 09/15/11 | | | 176,000 | | | | 70,400 | |
| Liberty Property LP, 7.25%, 03/15/11 | | | 27,000 | | | | 26,333 | |
| Prologis, 5.25%, 11/15/10 | | | 328,000 | | | | 213,934 | |
| Simon Property Group LP | | | | | | | | |
| 4.60%, 06/15/10 | | | 164,000 | | | | 151,968 | |
| 5.10%, 06/15/15 | | | 294,000 | | | | 214,604 | |
| 6.10%, 05/01/16 | | | 287,000 | | | | 213,739 | |
| Vornado Realty LP, 5.60%, 02/15/11 | | | 144,000 | | | | 143,120 | |
| Washington Real Estate Investment Trust, 5.25%, 01/15/14 | | | 82,000 | | | | 76,818 | |
| Westfield Capital Corp. Ltd., 5.13%, 11/15/14(b) | | | 107,000 | | | | 85,680 | |
| | | | | | | | | |
| | | | | | | | 4,348,908 | |
| | | | | | | | | |
| |
| |
Road & Rail 0.2% |
| Burlington Northern Santa Fe Corp., 7.95%, 08/15/30 | | | 144,000 | | | | 136,445 | |
| CSX Corp. | | | | | | | | |
| 6.75%, 03/15/11 | | | 92,000 | | | | 88,799 | |
| 5.50%, 08/01/13 | | | 308,000 | | | | 271,754 | |
| Norfolk Southern Corp. | | | | | | | | |
| 6.75%, 02/15/11 | | | 371,000 | | | | 357,632 | |
| 5.59%, 05/17/25 | | | 59,000 | | | | 45,159 | |
| 7.25%, 02/15/31 | | | 437,000 | | | | 388,139 | |
| SPI Electricity & Gas Australia Holdings Pty Ltd., 6.15%, 11/15/13(b) | | | 131,000 | | | | 125,981 | |
| TTX Co., 4.90%, 03/01/15(b) | | | 154,000 | | | | 161,955 | |
| Union Pacific Corp. | | | | | | | | |
| 5.38%, 06/01/33 | | | 43,000 | | | | 27,902 | |
| 6.25%, 05/01/34 | | | 164,000 | | | | 124,558 | |
| | | | | | | | | |
| | | | | | | | 1,728,324 | |
| | | | | | | | | |
| |
| |
Service Companies 0.2% |
| Omnicom Group, Inc., 5.90%, 04/15/16 | | | 123,000 | | | | 97,049 | |
| Oracle Corp., 5.25%, 01/15/16 | | | 548,000 | | | | 483,329 | |
| RR Donnelley & Sons Co. | | | | | | | | |
| 4.95%, 04/01/14 | | | 82,000 | | | | 62,025 | |
| 6.13%, 01/15/17 | | | 400,000 | | | | 283,059 | |
| Science Applications International Corp., 5.50%, 07/01/33 | | | 123,000 | | | | 98,387 | |
| Waste Management, Inc. | | | | | | | | |
| 7.38%, 08/01/10 | | | 103,000 | | | | 98,375 | |
| 6.38%, 11/15/12 | | | 144,000 | | | | 131,141 | |
| 7.00%, 07/15/28 | | | 113,000 | | | | 79,406 | |
| | | | | | | | | |
| | | | | | | | 1,332,771 | |
| | | | | | | | | |
| |
| |
Specialty Retail 0.8% |
| Costco Wholesale Corp., 5.50%, 03/15/17 | | | 475,000 | | | | 436,633 | |
| CVS Caremark Corp., 6.25%, 06/01/27 | | | 460,000 | | | | 333,486 | |
| Home Depot, Inc. | | | | | | | | |
| 5.25%, 12/16/13 | | | 1,120,000 | | | | 943,395 | |
| 5.40%, 03/01/16 | | | 410,000 | | | | 314,307 | |
| JC Penney Corp., Inc. | | | | | | | | |
| 8.00%, 03/01/10 | | | 321,000 | | | | 305,367 | |
| 5.75%, 02/15/18 | | | 600,000 | | | | 421,475 | |
| Kroger Co. (The) | | | | | | | | |
| 6.20%, 06/15/12 | | | 164,000 | | | | 160,252 | |
2008 Annual Report 19
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
Corporate Bonds (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
Specialty Retail (continued) |
| | | | | | | | | |
| 7.50%, 04/01/31 | | $ | 178,000 | | | $ | 152,287 | |
| Lowe’s Cos., Inc., 6.50%, 03/15/29 | | | 164,000 | | | | 133,455 | |
| Ltd Brands, Inc., 6.13%, 12/01/12 | | | 103,000 | | | | 95,483 | |
| Macy’s Retail Holdings, Inc. | | | | | | | | |
| 6.63%, 04/01/11 | | | 289,000 | | | | 244,372 | |
| 5.75%, 07/15/14 | | | 308,000 | | | | 209,245 | |
| 6.90%, 04/01/29 | | | 353,000 | | | | 187,888 | |
| Safeway, Inc. | | | | | | | | |
| 6.50%, 03/01/11 | | | 89,000 | | | | 86,830 | |
| 5.80%, 08/15/12 | | | 144,000 | | | | 134,697 | |
| 5.63%, 08/15/14 | | | 123,000 | | | | 115,341 | |
| Target Corp. | | | | | | | | |
| 10.00%, 01/01/11 | | | 46,000 | | | | 50,112 | |
| 7.00%, 07/15/31 | | | 121,000 | | | | 95,193 | |
| 6.35%, 11/01/32 | | | 217,000 | | | | 162,521 | |
| Wal-Mart Stores, Inc. | | | | | | | | |
| 4.13%, 07/01/10 | | | 287,000 | | | | 288,120 | |
| 4.13%, 02/15/11 | | | 267,000 | | | | 267,586 | |
| 5.00%, 04/05/12 | | | 1,300,000 | | | | 1,316,240 | |
| 7.55%, 02/15/30 | | | 82,000 | | | | 79,607 | |
| 5.25%, 09/01/35 | | | 492,000 | | | | 368,901 | |
| Yum! Brands, Inc., 8.88%, 04/15/11 | | | 82,000 | | | | 84,055 | |
| | | | | | | | | |
| | | | | | | | 6,986,848 | |
| | | | | | | | | |
| |
| |
Technology 0.2% |
| Cisco Systems, Inc. | | | | | | | | |
| 5.25%, 02/22/11 | | | 205,000 | | | | 205,174 | |
| 5.50%, 02/22/16 | | | 433,000 | | | | 401,364 | |
| Dell, Inc., 7.10%, 04/15/28 | | | 144,000 | | | | 117,837 | |
| Hewlett-Packard Co., 6.50%, 07/01/12 | | | 208,000 | | | | 208,653 | |
| International Business Machines Corp. | | | | | | | | |
| 4.75%, 11/29/12 | | | 359,000 | | | | 347,139 | |
| 5.88%, 11/29/32 | | | 732,000 | | | | 587,964 | |
| | | | | | | | | |
| | | | | | | | 1,868,131 | |
| | | | | | | | | |
| |
| |
Telecommunications 0.9% |
| America Movil SAB de CV | | | | | | | | |
| 5.75%, 01/15/15 | | | 155,000 | | | | 128,267 | |
| 6.38%, 03/01/35 | | | 123,000 | | | | 85,797 | |
| AT&T Mobility LLC, 7.13%, 12/15/31 | | | 287,000 | | | | 224,552 | |
| AT&T, Inc. | | | | | | | | |
| 5.30%, 11/15/10 | | | 267,000 | | | | 264,963 | |
| 6.25%, 03/15/11 | | | 330,000 | | | | 324,888 | |
| 5.88%, 08/15/12 | | | 295,000 | | | | 282,999 | |
| 5.10%, 09/15/14 | | | 597,000 | | | | 521,415 | |
| 5.63%, 06/15/16 | | | 205,000 | | | | 179,929 | |
| 6.15%, 09/15/34 | | | 814,000 | | | | 624,110 | |
| BellSouth Corp. | | | | | | | | |
| 6.00%, 10/15/11 | | | 583,000 | | | | 567,427 | |
| 5.20%, 09/15/14 | | | 349,000 | | | | 305,683 | |
| 6.55%, 06/15/34 | | | 123,000 | | | | 96,465 | |
| British Telecommunications PLC | | | | | | | | |
| 8.35%, 12/15/10 | | | 740,000 | | | | 731,142 | |
| 9.15%, 12/15/30 | | | 391,000 | | | | 354,062 | |
| Embarq Corp. | | | | | | | | |
| 6.74%, 06/01/13 | | | 433,000 | | | | 376,710 | |
| 7.08%, 06/01/16 | | | 92,000 | | | | 70,840 | |
| France Telecom SA(c) | | | | | | | | |
| 7.75%, 03/01/11 | | | 167,000 | | | | 165,176 | |
| 8.50%, 03/01/31 | | | 283,000 | | | | 266,660 | |
| GTE Corp. | | | | | | | | |
| 6.84%, 04/15/18 | | | 144,000 | | | | 130,123 | |
| 6.94%, 04/15/28 | | | 103,000 | | | | 79,379 | |
| Koninklike KPN NV, 8.00%, 10/01/10 | | | 215,000 | | | | 205,886 | |
| New Cingular Wireless Services, Inc. | | | | | | | | |
| 8.13%, 05/01/12 | | | 31,000 | | | | 30,730 | |
| 8.75%, 03/01/31 | | | 224,000 | | | | 208,355 | |
| Rogers Wireless, Inc., 7.25%, 12/15/12 | | | 540,000 | | | | 522,366 | |
| Telecom Italia Capital SA, 5.25%, 11/15/13 | | | 410,000 | | | | 311,205 | |
| Telefonos de Mexico SAB de CV, 5.50%, 01/27/15 | | | 164,000 | | | | 132,509 | |
| Vodafone Group PLC | | | | | | | | |
| 5.00%, 12/16/13 | | | 461,000 | | | | 402,640 | |
| 7.88%, 02/15/30 | | | 144,000 | | | | 128,648 | |
| 6.15%, 02/27/37 | | | 410,000 | | | | 307,082 | |
| | | | | | | | | |
| | | | | | | | 8,030,008 | |
| | | | | | | | | |
| |
| |
Transportation 0.1% |
| General Dynamics Corp., 4.25%, 05/15/13 | | | 175,000 | | | | 163,867 | |
| Southwest Airlines Co., 5.13%, 03/01/17 | | | 103,000 | | | | 77,138 | |
| United Parcel Service, Inc. | | | | | | | | |
| 8.38%, 04/01/20 | | | 82,000 | | | | 99,817 | |
| 8.38%, 04/01/30 | | | 123,000 | | | | 132,123 | |
| | | | | | | | | |
| | | | | | | | 472,945 | |
| | | | | | | | | |
| | | | | |
Total Corporate Bonds | | | 152,775,866 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Municipal Bonds 0.1% |
| | | | | | | | | |
| | | | | | | | | |
Illinois 0.1% |
| State of Illinois, 5.10%, 06/01/33 | | | 695,000 | | | | 578,733 | |
| | | | | | | | | |
| |
| |
Texas 0.0% |
| City of Dallas, Texas, 5.25%, 02/15/24 | | | 492,000 | | | | 478,067 | |
| | | | | | | | | |
| | | | | |
Total Municipal Bonds | | | 1,056,800 | |
| | | | | |
20 Annual Report 2008
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Sovereign Bonds 3.0% |
| | | | | | | | | |
| | | | | | | | | |
CANADA 0.7% |
| Province of British Columbia, Canada, 4.30%, 05/30/13 | | $ | 111,000 | | | $ | 114,869 | |
| Province of Manitoba, Canada | | | | | | | | |
| Series EM, 7.50%, 02/22/10 | | | 205,000 | | | | 218,802 | |
| 5.00%, 02/15/12 | | | 1,025,000 | | | | 1,082,650 | |
| Province of Nova Scotia, Canada, 5.13%, 01/26/17 | | | 615,000 | | | | 629,119 | |
| Province of Ontario, Canada | | | | | | | | |
| 4.38%, 02/15/13 | | | 297,000 | | | | 306,536 | |
| 4.50%, 02/03/15 | | | 463,000 | | | | 461,899 | |
| 4.75%, 01/19/16 | | | 205,000 | | | | 206,692 | |
| Province of Quebec, Canada | | | | | | | | |
| 5.00%, 07/17/09 | | | 2,215,000 | | | | 2,257,105 | |
| 4.60%, 05/26/15 | | | 246,000 | | | | 251,471 | |
| Series PD, 7.50%, 09/15/29 | | | 402,000 | | | | 507,619 | |
| | | | | | | | | |
| | | | | | | | 6,036,762 | |
| | | | | | | | | |
| |
| |
CHILE 0.0% |
| Chile Government International Bond, 5.50%, 01/15/13 | | | 123,000 | | | | 125,927 | |
| | | | | | | | | |
| |
| |
CHINA 0.0% |
| China Government International Bond, 4.75%, 10/29/13 | | | 205,000 | | | | 193,948 | |
| | | | | | | | | |
| |
| |
ITALY 0.3% |
| Italian Republic | | | | | | | | |
| 3.25%, 05/15/09 | | | 697,000 | | | | 702,793 | |
| 4.38%, 06/15/13 | | | 390,000 | | | | 404,100 | |
| 4.50%, 01/21/15 | | | 652,000 | | | | 676,349 | |
| 4.75%, 01/25/16 | | | 287,000 | | | | 292,197 | |
| 6.88%, 09/27/23 | | | 174,000 | | | | 202,305 | |
| 5.38%, 06/15/33 | | | 584,000 | | | | 591,800 | |
| | | | | | | | | |
| | | | | | | | 2,869,544 | |
| | | | | | | | | |
| |
| |
LUXEMBOURG 0.9% |
| European Investment Bank | | | | | | | | |
| 5.00%, 02/08/10 | | | 6,151,000 | | | | 6,355,373 | |
| 4.63%, 05/15/14 | | | 630,000 | | | | 651,939 | |
| 5.13%, 09/13/16 | | | 250,000 | | | | 260,851 | |
| | | | | | | | | |
| | | | | | | | 7,268,163 | |
| | | | | | | | | |
| |
| |
MEXICO 0.2% |
| Mexico Government International Bond | | | | | | | | |
| 6.38%, 01/16/13 | | | 795,000 | | | | 795,000 | |
| 6.75%, 09/27/34 | | | 1,423,000 | | | | 1,181,090 | |
| | | | | | | | | |
| | | | | | | | 1,976,090 | |
| | | | | | | | | |
| |
| |
POLAND 0.0% |
| Poland Government International Bond, 5.00%, 10/19/15 | | | 156,000 | | | | 135,521 | |
| | | | | | | | | |
| |
| |
REPUBLIC OF KOREA 0.1% |
| Export-Import Bank of Korea | | | | | | | | |
| 4.63%, 03/16/10 | | | 287,000 | | | | 270,310 | |
| 5.13%, 02/14/11 | | | 246,000 | | | | 224,386 | |
| Republic of Korea, 4.25%, 06/01/13 | | | 492,000 | | | | 422,165 | |
| | | | | | | | | |
| | | | | | | | 916,861 | |
| | | | | | | | | |
| |
| |
SOUTH AFRICA 0.0% |
| South Africa Government International Bond, 6.50%, 06/02/14 | | | 144,000 | | | | 119,520 | |
| | | | | | | | | |
| |
| |
SPAIN 0.1% |
| Telefonica Emisiones SAU, 6.42%, 06/20/16 | | | 1,080,000 | | | | 937,515 | |
| | | | | | | | | |
| |
| |
SWEDEN 0.5% |
| Svensk Exportkredit AB, Series A, 4.88%, 09/29/11 | | | 4,101,000 | | | | 4,112,565 | |
| | | | | | | | | |
| |
| |
UNITED STATES 0.2% |
Inter-American Development Bank | | | | | | | | |
| 5.00%, 04/05/11 | | | 250,000 | | | | 260,113 | |
| 5.13%, 09/13/16 | | | 415,000 | | | | 426,072 | |
| 6.80%, 10/15/25 | | | 287,000 | | | | 330,574 | |
| International Bank for Reconstruction & Development, 7.63%, 01/19/23 | | | 677,000 | | | | 837,145 | |
| | | | | | | | | |
| | | | | | | | 1,853,904 | |
| | | | | | | | | |
| |
| |
VENEZUELA 0.0% |
| Corp. Andina de Fomento, 6.88%, 03/15/12 | | | 164,000 | | | | 157,114 | |
| | | | | | | | | |
| | | | | |
Total Sovereign Bonds | | | 26,703,434 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Mortgage Backed Agencies 40.8% |
| | | | | | | | | |
| Fannie Mae Pool | | | | | | | | |
| Pool #560868, 7.50%, 02/01/31 | | | 2,690 | | | | 2,846 | |
| Pool #607212, 7.50%, 10/01/31 | | | 63,588 | | | | 67,256 | |
| Pool #607559, 6.50%, 11/01/31 | | | 1,731 | | | | 1,769 | |
| Pool #607632, 6.50%, 11/01/31 | | | 554 | | | | 567 | |
| Pool #661664, 7.50%, 09/01/32 | | | 64,191 | | | | 67,977 | |
| Pool #254548, 5.50%, 12/01/32 | | | 87,563 | | | | 85,807 | |
| Pool #656559, 6.50%, 02/01/33 | | | 181,717 | | | | 185,420 | |
| Pool #694846, 6.50%, 04/01/33 | | | 25,927 | | | | 26,293 | |
| Pool #750229, 6.50%, 10/01/33 | | | 156,527 | | | | 158,738 | |
| Pool #725027, 5.00%, 11/01/33 | | | 3,361,449 | | | | 3,191,766 | |
| Pool #788027, 6.50%, 09/01/34 | | | 144,678 | | | | 147,173 | |
| Pool #804847, 4.50%, 01/01/35 | | | 225,435 | | | | 205,057 | |
| Pool #735141, 5.50%, 01/01/35 | | | 6,038,418 | | | | 5,902,239 | |
| Pool #256023, 6.00%, 12/01/35 | | | 4,611,739 | | | | 4,611,499 | |
| Pool #596462, 6.50%, 12/01/35 | | | 6,100,000 | | | | 6,162,891 | |
| Pool #888022, 5.00%, 02/01/36 | | | 29,491,881 | | | | 27,966,291 | |
| Pool #885398, 5.00%, 06/01/36 | | | 12,465,642 | | | | 11,814,962 | |
2008 Annual Report 21
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
U.S. Government Mortgage Backed Agencies (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| Pool #888077, 5.00%, 08/01/36 | | $ | 1,872,470 | | | $ | 1,774,439 | |
| Pool #894441, 5.85%, 08/01/36(a) | | | 6,169,966 | | | | 6,241,333 | |
| Pool #908698, 6.50%, 10/01/36 | | | 929,505 | | | | 942,634 | |
| Pool #906185, 5.97%, 01/01/37(a) | | | 3,923,625 | | | | 3,955,821 | |
| Pool #919390, 6.50%, 05/01/37 | | | 401,020 | | | | 406,725 | |
| Pool #919496, 6.50%, 05/01/37 | | | 28,354 | | | | 28,758 | |
| Pool #937723, 6.50%, 06/01/37 | | | 567,239 | | | | 575,308 | |
| Pool #937776, 6.50%, 06/01/37 | | | 507,405 | | | | 514,623 | |
| Pool #939745, 6.50%, 06/01/37 | | | 1,612,028 | | | | 1,634,959 | |
| Pool #939749, 6.50%, 06/01/37 | | | 835,365 | | | | 847,248 | |
| Pool #899585, 6.00%, 07/01/37 | | | 1,678,580 | | | | 1,678,661 | |
| Pool # 888637, 6.00%, 09/01/37 | | | 266,279 | | | | 266,292 | |
| Pool #946614, 6.00%, 09/01/37 | | | 3,256,972 | | | | 3,257,128 | |
| Pool #889116, 6.00%, 02/01/38 | | | 10,694,956 | | | | 10,695,468 | |
| Federal Home Loan Mortgage Corp. TBA | | | | | | | | |
| 4.50%, 11/15/22 | | | 20,000,000 | | | | 18,987,500 | |
| 5.50%, 11/15/22 | | | 400,000 | | | | 398,125 | |
| 5.00%, 11/15/37 | | | 36,700,000 | | | | 34,727,375 | |
| 5.50%, 12/15/37 | | | 4,000,000 | | | | 3,896,248 | |
| Federal National Mortgage Association TBA | | | | | | | | |
| 5.50%, 12/01/19 | | | 4,800,000 | | | | 4,777,498 | |
| 5.00%, 12/15/20 | | | 11,100,000 | | | | 10,825,941 | |
| 5.50%, 11/15/36 | | | 3,000,000 | | | | 2,930,625 | |
| 6.00%, 11/15/37 | | | 13,200,000 | | | | 13,191,750 | |
| Freddie Mac Gold Pool | | | | | | | | |
| Pool #E00282, 6.50%, 03/01/09 | | | 3,929 | | | | 4,029 | |
| Pool #G10399, 6.50%, 07/01/09 | | | 695 | | | | 702 | |
| Pool #E00394, 7.50%, 09/01/10 | | | 11,932 | | | | 12,349 | |
| Pool #M80898, 4.50%, 02/01/11 | | | 269,141 | | | | 272,873 | |
| Pool #M80904, 4.50%, 03/01/11 | | | 166,272 | | | | 164,602 | |
| Pool #M80917, 4.50%, 05/01/11 | | | 41,237 | | | | 41,808 | |
| Pool #M80926, 4.50%, 07/01/11 | | | 162,543 | | | | 164,796 | |
| Pool #M80934, 4.50%, 08/01/11 | | | 201,948 | | | | 199,919 | |
| Pool #G10940, 6.50%, 11/01/11 | | | 5,337 | | | | 5,472 | |
| Pool #G11130, 6.00%, 12/01/11 | | | 44,617 | | | | 45,716 | |
| Pool #M80981, 4.50%, 07/01/12 | | | 86,358 | | | | 86,086 | |
| Pool #E00507, 7.50%, 09/01/12 | | | 1,541 | | | | 1,614 | |
| Pool #G10749, 6.00%, 10/01/12 | | | 35,191 | | | | 35,421 | |
| Pool #M81009, 4.50%, 02/01/13 | | | 110,060 | | | | 108,954 | |
| Pool #E69050, 6.00%, 02/01/13 | | | 21,373 | | | | 21,513 | |
| Pool #E72896, 7.00%, 10/01/13 | | | 11,557 | | | | 12,181 | |
| Pool #G11612, 6.00%, 04/01/14 | | | 24,472 | | | | 25,063 | |
| Pool #E00677, 6.00%, 06/01/14 | | | 57,091 | | | | 57,856 | |
| Pool #E00802, 7.50%, 02/01/15 | | | 27,914 | | | | 29,405 | |
| Pool #G11001, 6.50%, 03/01/15 | | | 20,885 | | | | 21,417 | |
| Pool #G11003, 7.50%, 04/01/15 | | | 1,545 | | | | 1,627 | |
| Pool #G11164, 7.00%, 05/01/15 | | | 4,978 | | | | 5,255 | |
| Pool #E81396, 7.00%, 10/01/15 | | | 991 | | | | 1,047 | |
| Pool #E81394, 7.50%, 10/01/15 | | | 8,927 | | | | 9,410 | |
| Pool #E84097, 6.50%, 12/01/15 | | | 2,941 | | | | 3,016 | |
| Pool #E00938, 7.00%, 01/01/16 | | | 13,880 | | | | 14,660 | |
| Pool #E82132, 7.00%, 01/01/16 | | | 2,822 | | | | 2,980 | |
| Pool #E82815, 6.00%, 03/01/16 | | | 9,695 | | | | 9,759 | |
| Pool #G11972, 6.00%, 04/01/16 | | | 167,877 | | | | 168,989 | |
| Pool #E83231, 6.00%, 04/01/16 | | | 2,732 | | | | 2,750 | |
| Pool #E83233, 6.00%, 04/01/16 | | | 7,297 | | | | 7,345 | |
| Pool #E83046, 7.00%, 04/01/16 | | | 1,547 | | | | 1,633 | |
| Pool #E00975, 6.00%, 05/01/16 | | | 40,023 | | | | 40,544 | |
| Pool #E83355, 6.00%, 05/01/16 | | | 10,808 | | | | 10,880 | |
| Pool #E83636, 6.00%, 05/01/16 | | | 18,609 | | | | 18,733 | |
| Pool #E83933, 6.50%, 05/01/16 | | | 764 | | | | 784 | |
| Pool #E00985, 6.00%, 06/01/16 | | | 22,361 | | | | 22,651 | |
| Pool #E00987, 6.50%, 06/01/16 | | | 19,607 | | | | 20,308 | |
| Pool #E84236, 6.50%, 06/01/16 | | | 4,983 | | | | 5,110 | |
| Pool #E00996, 6.50%, 07/01/16 | | | 2,408 | | | | 2,494 | |
| Pool #E84912, 6.50%, 08/01/16 | | | 11,006 | | | | 11,287 | |
| Pool #E85117, 6.50%, 08/01/16 | | | 6,642 | | | | 6,812 | |
| Pool #E85387, 6.00%, 09/01/16 | | | 25,619 | | | | 25,789 | |
| Pool #E85800, 6.50%, 10/01/16 | | | 5,181 | | | | 5,313 | |
| Pool #E86183, 6.00%, 11/01/16 | | | 3,362 | | | | 3,384 | |
| Pool #E01083, 7.00%, 11/01/16 | | | 4,757 | | | | 5,012 | |
| Pool #G11207, 7.00%, 11/01/16 | | | 12,282 | | | | 12,972 | |
| Pool #E86746, 5.50%, 12/01/16 | | | 53,507 | | | | 53,302 | |
| Pool #E86533, 6.00%, 12/01/16 | | | 6,780 | | | | 6,825 | |
| Pool #E87584, 6.00%, 01/01/17 | | | 6,915 | | | | 6,961 | |
| Pool #E01095, 6.00%, 01/01/17 | | | 9,105 | | | | 9,220 | |
| Pool #E86995, 6.50%, 01/01/17 | | | 22,930 | | | | 23,516 | |
| Pool #E87291, 6.50%, 01/01/17 | | | 27,581 | | | | 28,286 | |
| Pool #E87446, 6.50%, 01/01/17 | | | 4,895 | | | | 5,021 | |
| Pool #E88076, 6.00%, 02/01/17 | | | 7,374 | | | | 7,423 | |
| Pool #E88055, 6.50%, 02/01/17 | | | 43,300 | | | | 44,408 | |
| Pool #E88106, 6.50%, 02/01/17 | | | 27,009 | | | | 27,700 | |
| Pool #E01127, 6.50%, 02/01/17 | | | 14,655 | | | | 15,179 | |
| Pool #E88134, 6.00%, 03/01/17 | | | 2,292 | | | | 2,307 | |
| Pool #E88474, 6.00%, 03/01/17 | | | 13,521 | | | | 13,611 | |
| Pool #E88768, 6.00%, 03/01/17 | | | 36,441 | | | | 36,684 | |
| Pool #E01137, 6.00%, 03/01/17 | | | 13,963 | | | | 14,138 | |
| Pool #E01138, 6.50%, 03/01/17 | | | 7,408 | | | | 7,672 | |
| Pool #E88729, 6.00%, 04/01/17 | | | 10,956 | | | | 11,029 | |
| Pool #E89149, 6.00%, 04/01/17 | | | 17,104 | | | | 17,218 | |
| Pool #E89151, 6.00%, 04/01/17 | | | 12,581 | | | | 12,665 | |
| Pool #E89217, 6.00%, 04/01/17 | | | 9,455 | | | | 9,518 | |
| Pool #E89222, 6.00%, 04/01/17 | | | 66,555 | | | | 66,999 | |
| Pool #E89347, 6.00%, 04/01/17 | | | 3,268 | | | | 3,289 | |
| Pool #E89496, 6.00%, 04/01/17 | | | 13,615 | | | | 13,706 | |
| Pool #E01139, 6.00%, 04/01/17 | | | 62,894 | | | | 63,673 | |
| Pool #E89203, 6.50%, 04/01/17 | | | 5,854 | | | | 6,004 | |
| Pool #E89788, 6.00%, 05/01/17 | | | 8,202 | | | | 8,257 | |
| Pool #E89530, 6.00%, 05/01/17 | | | 39,863 | | | | 40,130 | |
| Pool #E89746, 6.00%, 05/01/17 | | | 85,898 | | | | 86,471 | |
| Pool #E89909, 6.00%, 05/01/17 | | | 14,037 | | | | 14,131 | |
| Pool #E01140, 6.00%, 05/01/17 | | | 55,102 | | | | 55,784 | |
| Pool #G11409, 6.00%, 05/01/17 | | | 83,965 | | | | 84,524 | |
| Pool #E89924, 6.50%, 05/01/17 | | | 41,371 | | | | 42,430 | |
22 Annual Report 2008
| | | | | | | | | |
U.S. Government Mortgage Backed Agencies (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| Pool #E01156, 6.50%, 05/01/17 | | $ | 21,239 | | | $ | 21,996 | |
| Pool #E90194, 6.00%, 06/01/17 | | | 10,658 | | | | 10,729 | |
| Pool #E90227, 6.00%, 06/01/17 | | | 8,828 | | | | 8,887 | |
| Pool #E90313, 6.00%, 06/01/17 | | | 4,444 | | | | 4,473 | |
| Pool #E01157, 6.00%, 06/01/17 | | | 38,921 | | | | 39,399 | |
| Pool #B15071, 6.00%, 06/01/17 | | | 199,872 | | | | 201,201 | |
| Pool #E90591, 5.50%, 07/01/17 | | | 54,761 | | | | 54,894 | |
| Pool #E90594, 6.00%, 07/01/17 | | | 34,134 | | | | 34,362 | |
| Pool #E90667, 6.00%, 07/01/17 | | | 9,626 | | | | 9,690 | |
| Pool #E90645, 6.00%, 07/01/17 | | | 57,732 | | | | 58,117 | |
| Pool #E01186, 5.50%, 08/01/17 | | | 123,628 | | | | 124,034 | |
| Pool #E01205, 6.50%, 08/01/17 | | | 15,680 | | | | 16,239 | |
| Pool #G11295, 5.50%, 09/01/17 | | | 81,454 | | | | 81,651 | |
| Pool #G11458, 6.00%, 09/01/17 | | | 27,863 | | | | 28,047 | |
| Pool #G11434, 6.50%, 01/01/18 | | | 22,023 | | | | 22,587 | |
| Pool #E01311, 5.50%, 02/01/18 | | | 1,326,713 | | | | 1,330,082 | |
| Pool #G11399, 5.50%, 04/01/18 | | | 118,104 | | | | 118,538 | |
| Pool #B10210, 5.50%, 10/01/18 | | | 244,828 | | | | 243,892 | |
| Pool #B10653, 5.50%, 11/01/18 | | | 180,280 | | | | 180,492 | |
| Pool #B11548, 5.50%, 12/01/18 | | | 76,155 | | | | 75,864 | |
| Pool #G11531, 5.50%, 02/01/19 | | | 51,733 | | | | 51,794 | |
| Pool #E01604, 5.50%, 03/01/19 | | | 102,253 | | | | 101,862 | |
| Pool #B12908, 5.50%, 03/01/19 | | | 90,053 | | | | 89,962 | |
| Pool #B13600, 5.50%, 04/01/19 | | | 62,416 | | | | 62,353 | |
| Pool #B13430, 5.50%, 04/01/19 | | | 76,518 | | | | 76,441 | |
| Pool #B15396, 5.50%, 06/01/19 | | | 110,928 | | | | 110,816 | |
| Pool #G18007, 6.00%, 07/01/19 | | | 46,376 | | | | 46,688 | |
| Pool #G18006, 5.50%, 08/01/19 | | | 93,056 | | | | 92,961 | |
| Pool #B16087, 6.00%, 08/01/19 | | | 113,614 | | | | 114,379 | |
| Pool #G18022, 5.50%, 11/01/19 | | | 192,260 | | | | 192,065 | |
| Pool #B14288, 5.50%, 12/01/19 | | | 106,350 | | | | 106,242 | |
| Pool #B18437, 5.50%, 05/01/20 | | | 92,779 | | | | 92,424 | |
| Pool #G18062, 6.00%, 06/01/20 | | | 89,428 | | | | 90,033 | |
| Pool #J02325, 5.50%, 07/01/20 | | | 191,082 | | | | 190,590 | |
| Pool #J00718, 5.00%, 12/01/20 | | | 871,023 | | | | 852,298 | |
| Pool #J00935, 5.00%, 12/01/20 | | | 84,156 | | | | 82,347 | |
| Pool #J00854, 5.00%, 01/01/21 | | | 481,403 | | | | 471,053 | |
| Pool #J00871, 5.00%, 01/01/21 | | | 206,725 | | | | 202,281 | |
| Pool #J01049, 5.00%, 01/01/21 | | | 1,958,256 | | | | 1,916,158 | |
| Pool #G18096, 5.50%, 01/01/21 | | | 80,725 | | | | 80,416 | |
| Pool #J00855, 5.50%, 01/01/21 | | | 220,250 | | | | 219,683 | |
| Pool #J01189, 5.00%, 02/01/21 | | | 116,160 | | | | 113,535 | |
| Pool #J01279, 5.50%, 02/01/21 | | | 179,424 | | | | 178,793 | |
| Pool #J01256, 5.00%, 03/01/21 | | | 109,466 | | | | 106,993 | |
| Pool #J01414, 5.00%, 03/01/21 | | | 83,853 | | | | 81,958 | |
| Pool #J01576, 5.00%, 04/01/21 | | | 547,094 | | | | 534,734 | |
| Pool #J01570, 5.50%, 04/01/21 | | | 124,223 | | | | 123,747 | |
| Pool #J01633, 5.50%, 04/01/21 | | | 533,258 | | | | 531,385 | |
| Pool #J01757, 5.00%, 05/01/21 | | | 210,266 | | | | 205,516 | |
| Pool #J01771, 5.00%, 05/01/21 | | | 143,575 | | | | 140,331 | |
| Pool #J01833, 5.00%, 05/01/21 | | | 93,638 | | | | 91,523 | |
| Pool #J01879, 5.00%, 05/01/21 | | | 178,118 | | | | 174,094 | |
| Pool #J06015, 5.00%, 05/01/21 | | | 163,324 | | | | 159,634 | |
| Pool #G18122, 5.00%, 06/01/21 | | | 153,926 | | | | 150,448 | |
| Pool #G18123, 5.50%, 06/01/21 | | | 293,385 | | | | 292,355 | |
| Pool #J01980, 6.00%, 06/01/21 | | | 210,799 | | | | 212,230 | |
| Pool #J03074, 5.00%, 07/01/21 | | | 140,604 | | | | 137,427 | |
| Pool #J03028, 5.50%, 07/01/21 | | | 129,816 | | | | 129,360 | |
| Pool #G12245, 6.00%, 07/01/21 | | | 101,036 | | | | 101,722 | |
| Pool #G12310, 5.50%, 08/01/21 | | | 83,321 | | | | 83,028 | |
| Pool #G12348, 6.00%, 08/01/21 | | | 207,276 | | | | 208,683 | |
| Pool #G12412, 5.50%, 11/01/21 | | | 107,392 | | | | 107,015 | |
| Pool #C90559, 7.00%, 05/01/22 | | | 65,022 | | | | 66,733 | |
| Pool #C00351, 8.00%, 07/01/24 | | | 1,614 | | | | 1,705 | |
| Pool #D60780, 8.00%, 06/01/25 | | | 3,786 | | | | 4,006 | |
| Pool #D64617, 8.00%, 10/01/25 | | | 19,910 | | | | 21,056 | |
| Pool #D82854, 7.00%, 10/01/27 | | | 3,761 | | | | 3,878 | |
| Pool #C00566, 7.50%, 12/01/27 | | | 6,740 | | | | 7,106 | |
| Pool #C00676, 6.50%, 11/01/28 | | | 38,439 | | | | 39,342 | |
| Pool #C00678, 7.00%, 11/01/28 | | | 9,636 | | | | 9,931 | |
| Pool #C18271, 7.00%, 11/01/28 | | | 6,870 | | | | 7,081 | |
| Pool #C00836, 7.00%, 07/01/29 | | | 3,761 | | | | 3,868 | |
| Pool #C30265, 6.50%, 08/01/29 | | | 4,807 | | | | 4,917 | |
| Pool #A16201, 7.00%, 08/01/29 | | | 17,138 | | | | 17,623 | |
| Pool #C31282, 7.00%, 09/01/29 | | | 774 | | | | 795 | |
| Pool #C31285, 7.00%, 09/01/29 | | | 9,167 | | | | 9,426 | |
| Pool #A18212, 7.00%, 11/01/29 | | | 168,463 | | | | 173,234 | |
| Pool #C32914, 8.00%, 11/01/29 | | | 4,160 | | | | 4,392 | |
| Pool #C37436, 8.00%, 01/01/30 | | | 5,473 | | | | 5,779 | |
| Pool #C36306, 7.00%, 02/01/30 | | | 4,973 | | | | 5,110 | |
| Pool #C36429, 7.00%, 02/01/30 | | | 4,455 | | | | 4,577 | |
| Pool #C00921, 7.50%, 02/01/30 | | | 5,041 | | | | 5,336 | |
| Pool #G01108, 7.00%, 04/01/30 | | | 3,278 | | | | 3,371 | |
| Pool #C37703, 7.50%, 04/01/30 | | | 3,482 | | | | 3,686 | |
| Pool #G01133, 6.50%, 07/01/30 | | | 25,772 | | | | 26,377 | |
| Pool #C41561, 8.00%, 08/01/30 | | | 3,115 | | | | 3,287 | |
| Pool #C01051, 8.00%, 09/01/30 | | | 9,198 | | | | 9,706 | |
| Pool #C43550, 7.00%, 10/01/30 | | | 8,507 | | | | 8,741 | |
| Pool #C44017, 7.50%, 10/01/30 | | | 712 | | | | 754 | |
| Pool #C43967, 8.00%, 10/01/30 | | | 35,750 | | | | 37,724 | |
| Pool #C44978, 7.00%, 11/01/30 | | | 1,547 | | | | 1,589 | |
| Pool #C44957, 8.00%, 11/01/30 | | | 5,338 | | | | 5,633 | |
| Pool #C01106, 7.00%, 12/01/30 | | | 50,695 | | | | 52,085 | |
| Pool #C01103, 7.50%, 12/01/30 | | | 4,374 | | | | 4,630 | |
| Pool #C01116, 7.50%, 01/01/31 | | | 4,254 | | | | 4,503 | |
| Pool #C46932, 7.50%, 01/01/31 | | | 7,518 | | | | 7,958 | |
| Pool #C47287, 7.50%, 02/01/31 | | | 5,451 | | | | 5,770 | |
| Pool #C48851, 7.00%, 03/01/31 | | | 6,845 | | | | 7,025 | |
| Pool #G01217, 7.00%, 03/01/31 | | | 43,480 | | | | 44,672 | |
| Pool #C48206, 7.50%, 03/01/31 | | | 10,999 | | | | 11,643 | |
| Pool #C01172, 6.50%, 05/01/31 | | | 22,952 | | | | 23,456 | |
| Pool #C52685, 6.50%, 05/01/31 | | | 21,097 | | | | 21,560 | |
| Pool #C53589, 6.50%, 06/01/31 | | | 58,021 | | | | 59,294 | |
| Pool #C53324, 7.00%, 06/01/31 | | | 10,671 | | | | 10,951 | |
| Pool #C01209, 8.00%, 06/01/31 | | | 2,076 | | | | 2,190 | |
| Pool #C54897, 6.50%, 07/01/31 | | | 35,038 | | | | 35,807 | |
2008 Annual Report 23
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
U.S. Government Mortgage Backed Agencies (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| Pool #C54792, 7.00%, 07/01/31 | | $ | 52,604 | | | $ | 53,983 | |
| Pool #C55071, 7.50%, 07/01/31 | | | 611 | | | | 646 | |
| Pool #G01309, 7.00%, 08/01/31 | | | 11,817 | | | | 12,126 | |
| Pool #C01220, 6.50%, 09/01/31 | | | 6,056 | | | | 6,189 | |
| Pool #C58215, 6.50%, 09/01/31 | | | 1,810 | | | | 1,850 | |
| Pool #C58362, 6.50%, 09/01/31 | | | 16,139 | | | | 16,493 | |
| Pool #C01222, 7.00%, 09/01/31 | | | 8,361 | | | | 8,580 | |
| Pool #G01311, 7.00%, 09/01/31 | | | 68,793 | | | | 70,679 | |
| Pool #G01315, 7.00%, 09/01/31 | | | 2,615 | | | | 2,687 | |
| Pool #C01244, 6.50%, 10/01/31 | | | 35,001 | | | | 35,769 | |
| Pool #C58961, 6.50%, 10/01/31 | | | 307,024 | | | | 313,759 | |
| Pool #C58647, 7.00%, 10/01/31 | | | 2,361 | | | | 2,423 | |
| Pool #C58694, 7.00%, 10/01/31 | | | 16,516 | | | | 16,949 | |
| Pool #C60991, 6.50%, 11/01/31 | | | 8,580 | | | | 8,768 | |
| Pool #C60012, 7.00%, 11/01/31 | | | 3,253 | | | | 3,339 | |
| Pool #C61298, 8.00%, 11/01/31 | | | 5,179 | | | | 5,491 | |
| Pool #C01271, 6.50%, 12/01/31 | | | 11,226 | | | | 11,472 | |
| Pool #C61105, 7.00%, 12/01/31 | | | 7,688 | | | | 7,890 | |
| Pool #C01305, 7.50%, 12/01/31 | | | 4,468 | | | | 4,722 | |
| Pool #C62218, 7.00%, 01/01/32 | | | 10,087 | | | | 10,351 | |
| Pool #C63171, 7.00%, 01/01/32 | | | 25,899 | | | | 26,578 | |
| Pool #G01355, 6.50%, 02/01/32 | | | 324,858 | | | | 331,984 | |
| Pool #C64121, 7.50%, 02/01/32 | | | 5,745 | | | | 6,072 | |
| Pool #C01310, 6.50%, 03/01/32 | | | 58,811 | | | | 60,009 | |
| Pool #C64668, 6.50%, 03/01/32 | | | 11,647 | | | | 11,884 | |
| Pool #C65466, 6.50%, 03/01/32 | | | 54,156 | | | | 55,260 | |
| Pool #C01343, 6.50%, 04/01/32 | | | 54,094 | | | | 55,196 | |
| Pool #C66191, 6.50%, 04/01/32 | | | 20,884 | | | | 21,310 | |
| Pool #C66192, 6.50%, 04/01/32 | | | 10,500 | | | | 10,714 | |
| Pool #C66088, 6.50%, 04/01/32 | | | 9,775 | | | | 9,975 | |
| Pool #C01345, 7.00%, 04/01/32 | | | 36,487 | | | | 37,428 | |
| Pool #G01391, 7.00%, 04/01/32 | | | 110,512 | | | | 113,542 | |
| Pool #C66744, 7.00%, 04/01/32 | | | 1,804 | | | | 1,850 | |
| Pool #C65717, 7.50%, 04/01/32 | | | 7,783 | | | | 8,229 | |
| Pool #C01370, 8.00%, 04/01/32 | | | 7,364 | | | | 7,799 | |
| Pool #C01351, 6.50%, 05/01/32 | | | 35,226 | | | | 35,944 | |
| Pool #C67097, 6.50%, 05/01/32 | | | 4,191 | | | | 4,276 | |
| Pool #C66758, 6.50%, 05/01/32 | | | 259,526 | | | | 264,814 | |
| Pool #C66919, 6.50%, 05/01/32 | | | 2,964 | | | | 3,024 | |
| Pool #C67313, 6.50%, 05/01/32 | | | 1,652 | | | | 1,686 | |
| Pool #C66916, 7.00%, 05/01/32 | | | 26,015 | | | | 26,686 | |
| Pool #C67259, 7.00%, 05/01/32 | | | 2,940 | | | | 3,016 | |
| Pool #C67235, 7.00%, 05/01/32 | | | 65,778 | | | | 67,473 | |
| Pool #C01381, 8.00%, 05/01/32 | | | 41,940 | | | | 44,473 | |
| Pool #C01364, 6.50%, 06/01/32 | | | 35,689 | | | | 36,416 | |
| Pool #C67996, 6.50%, 06/01/32 | | | 7,729 | | | | 7,887 | |
| Pool #C72361, 6.50%, 06/01/32 | | | 18,855 | | | | 19,268 | |
| Pool #C72497, 6.50%, 06/01/32 | | | 10,793 | | | | 11,030 | |
| Pool #C68290, 7.00%, 06/01/32 | | | 9,580 | | | | 9,827 | |
| Pool #C68300, 7.00%, 06/01/32 | | | 53,559 | | | | 54,939 | |
| Pool #C68307, 8.00%, 06/01/32 | | | 2,702 | | | | 2,862 | |
| Pool #G01433, 6.50%, 07/01/32 | | | 18,553 | | | | 18,931 | |
| Pool #C71403, 6.50%, 07/01/32 | | | 38,280 | | | | 39,120 | |
| Pool #G01449, 7.00%, 07/01/32 | | | 78,561 | | | | 80,715 | |
| Pool #C68988, 7.50%, 07/01/32 | | | 3,203 | | | | 3,387 | |
| Pool #C01385, 6.50%, 08/01/32 | | | 49,843 | | | | 50,858 | |
| Pool #G01443, 6.50%, 08/01/32 | | | 123,701 | | | | 126,222 | |
| Pool #G01444, 6.50%, 08/01/32 | | | 127,359 | | | | 130,153 | |
| Pool #C74006, 6.50%, 08/01/32 | | | 10,862 | | | | 11,084 | |
| Pool #C69951, 6.50%, 08/01/32 | | | 16,363 | | | | 16,697 | |
| Pool #C69908, 7.00%, 08/01/32 | | | 44,153 | | | | 45,290 | |
| Pool #C70211, 7.00%, 08/01/32 | | | 42,169 | | | | 43,256 | |
| Pool #C01396, 6.50%, 09/01/32 | | | 81,897 | | | | 83,566 | |
| Pool #C71089, 7.50%, 09/01/32 | | | 11,606 | | | | 12,271 | |
| Pool #C01404, 6.50%, 10/01/32 | | | 205,460 | | | | 209,646 | |
| Pool #C72160, 7.50%, 10/01/32 | | | 3,115 | | | | 3,294 | |
| Pool #A14012, 6.50%, 11/01/32 | | | 67,655 | | | | 69,033 | |
| Pool #C77531, 6.50%, 02/01/33 | | | 70,836 | | | | 72,279 | |
| Pool #G01536, 7.00%, 03/01/33 | | | 60,918 | | | | 62,523 | |
| Pool #A10212, 6.50%, 06/01/33 | | | 18,209 | | | | 18,546 | |
| Pool #A16419, 6.50%, 11/01/33 | | | 33,668 | | | | 34,291 | |
| Pool #A17177, 6.50%, 12/01/33 | | | 20,255 | | | | 20,630 | |
| Pool #A16522, 6.50%, 12/01/33 | | | 247,835 | | | | 252,420 | |
| Pool #A17262, 6.50%, 12/01/33 | | | 63,714 | | | | 64,893 | |
| Pool #C01806, 7.00%, 01/01/34 | | | 60,497 | | | | 62,091 | |
| Pool #C01851, 6.50%, 04/01/34 | | | 155,225 | | | | 157,902 | |
| Pool #A21356, 6.50%, 04/01/34 | | | 155,197 | | | | 157,874 | |
| Pool #A22067, 6.50%, 05/01/34 | | | 207,567 | | | | 211,148 | |
| Pool #A24301, 6.50%, 05/01/34 | | | 112,931 | | | | 114,879 | |
| Pool #A24988, 6.50%, 07/01/34 | | | 105,724 | | | | 107,548 | |
| Pool #G01741, 6.50%, 10/01/34 | | | 110,474 | | | | 112,725 | |
| Pool #G08023, 6.50%, 11/01/34 | | | 169,813 | | | | 172,742 | |
| Pool #A33137, 6.50%, 01/01/35 | | | 42,786 | | | | 43,524 | |
| Pool #G08064, 6.50%, 04/01/35 | | | 113,666 | | | | 115,343 | |
| Pool #A31989, 6.50%, 04/01/35 | | | 64,219 | | | | 65,166 | |
| Pool #A38817, 6.50%, 05/01/35 | | | 8,670 | | | | 8,792 | |
| Pool #G01947, 7.00%, 05/01/35 | | | 90,719 | | | | 93,056 | |
| Pool #A46718, 4.50%, 08/01/35 | | | 755,236 | | | | 685,785 | |
| Pool #G08073, 5.50%, 08/01/35 | | | 1,582,074 | | | | 1,544,730 | |
| Pool #A47036, 4.50%, 09/01/35 | | | 240,297 | | | | 218,199 | |
| Pool #A47055, 4.50%, 09/01/35 | | | 2,935,933 | | | | 2,665,950 | |
| Pool #A37533, 4.50%, 09/01/35 | | | 186,638 | | | | 169,476 | |
| Pool #A37135, 5.50%, 09/01/35 | | | 2,672,443 | | | | 2,609,362 | |
| Pool #A46935, 6.50%, 09/01/35 | | | 98,091 | | | | 99,538 | |
| Pool #G01890, 4.50%, 10/01/35 | | | 478,486 | | | | 434,485 | |
| Pool #G02045, 4.50%, 10/01/35 | | | 172,025 | | | | 156,206 | |
| Pool #A38255, 5.50%, 10/01/35 | | | 2,345,581 | | | | 2,290,215 | |
| Pool #A38531, 5.50%, 10/01/35 | | | 2,832,590 | | | | 2,765,729 | |
| Pool #A38667, 5.50%, 10/01/35 | | | 2,028,936 | | | | 1,981,044 | |
| Pool #G08088, 6.50%, 10/01/35 | | | 598,276 | | | | 607,101 | |
| Pool #G08109, 4.50%, 11/01/35 | | | 249,177 | | | | 226,263 | |
| Pool #G08095, 5.50%, 11/01/35 | | | 475,955 | | | | 464,721 | |
| Pool #A39759, 5.50%, 11/01/35 | | | 157,556 | | | | 153,837 | |
| Pool #A40141, 6.50%, 11/01/35 | | | 88,886 | | | | 90,197 | |
| Pool #A47682, 6.50%, 11/01/35 | | | 514,097 | | | | 521,680 | |
| Pool #A40376, 5.50%, 12/01/35 | | | 147,100 | | | | 143,628 | |
24 Annual Report 2008
| | | | | | | | | |
U.S. Government Mortgage Backed Agencies (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| Pool #G02220, 4.50%, 01/01/36 | | $ | 151,242 | | | $ | 137,334 | |
| Pool #A42298, 4.50%, 01/01/36 | | | 293,160 | | | | 266,202 | |
| Pool #A41326, 5.50%, 01/01/36 | | | 781,913 | | | | 763,456 | |
| Pool #A41354, 5.50%, 01/01/36 | | | 5,215,439 | | | | 5,092,333 | |
| Pool #A42305, 5.50%, 01/01/36 | | | 1,121,790 | | | | 1,094,786 | |
| Pool #A42332, 5.50%, 01/01/36 | | | 266,487 | | | | 260,196 | |
| Pool #G08105, 5.50%, 01/01/36 | | | 5,646,709 | | | | 5,513,424 | |
| Pool #A41548, 7.00%, 01/01/36 | | | 180,064 | | | | 183,954 | |
| Pool #G08111, 5.50%, 02/01/36 | | | 4,115,952 | | | | 4,016,869 | |
| Pool #A43672, 6.50%, 02/01/36 | | | 46,123 | | | | 46,782 | |
| Pool #A48303, 7.00%, 02/01/36 | | | 84,504 | | | | 86,238 | |
| Pool #A48379, 5.50%, 03/01/36 | | | 4,992,917 | | | | 4,872,723 | |
| Pool #A48378, 5.50%, 03/01/36 | | | 1,286,667 | | | | 1,255,693 | |
| Pool #A43886, 5.50%, 03/01/36 | | | 2,569,762 | | | | 2,507,901 | |
| Pool #A43885, 5.50%, 03/01/36 | | | 1,605,360 | | | | 1,566,714 | |
| Pool #A43884, 5.50%, 03/01/36 | | | 1,963,103 | | | | 1,916,766 | |
| Pool #A43452, 5.50%, 03/01/36 | | | 135,386 | | | | 132,127 | |
| Pool #A43757, 5.50%, 03/01/36 | | | 1,454,437 | | | | 1,419,424 | |
| Pool #A43861, 5.50%, 03/01/36 | | | 3,071,629 | | | | 2,997,686 | |
| Pool #G08116, 5.50%, 03/01/36 | | | 814,327 | | | | 794,724 | |
| Pool #A43644, 6.50%, 03/01/36 | | | 104,844 | | | | 106,341 | |
| Pool #A44534, 5.00%, 04/01/36 | | | 161,771 | | | | 153,200 | |
| Pool #A44743, 5.00%, 04/01/36 | | | 144,263 | | | | 136,665 | |
| Pool #A48700, 4.50%, 05/01/36 | | | 113,147 | | | | 102,707 | |
| Pool #G02186, 5.00%, 05/01/36 | | | 12,394,205 | | | | 11,741,443 | |
| Pool #A48911, 5.50%, 05/01/36 | | | 463,686 | | | | 452,524 | |
| Pool #A48976, 5.50%, 05/01/36 | | | 4,245,202 | | | | 4,143,007 | |
| Pool #A48735, 5.50%, 05/01/36 | | | 342,528 | | | | 334,282 | |
| Pool #G08130, 6.50%, 05/01/36 | | | 192,518 | | | | 195,268 | |
| Pool #A49637, 5.00%, 06/01/36 | | | 689,914 | | | | 653,363 | |
| Pool #A49653, 5.50%, 06/01/36 | | | 16,786,670 | | | | 16,382,565 | |
| Pool #G08134, 5.50%, 06/01/36 | | | 466,393 | | | | 455,166 | |
| Pool #A50139, 6.50%, 06/01/36 | | | 154,141 | | | | 156,342 | |
| Pool #A49960, 7.00%, 06/01/36 | | | 29,092 | | | | 29,689 | |
| Pool #A50832, 5.50%, 07/01/36 | | | 488,173 | | | | 476,421 | |
| Pool #A50313, 5.50%, 07/01/36 | | | 389,212 | | | | 379,842 | |
| Pool #A50714, 5.50%, 07/01/36 | | | 221,361 | | | | 216,032 | |
| Pool #G08139, 5.50%, 07/01/36 | | | 980,934 | | | | 957,320 | |
| Pool #G08141, 6.50%, 07/01/36 | | | 692,870 | | | | 702,765 | |
| Pool #A51078, 5.50%, 08/01/36 | | | 203,140 | | | | 198,250 | |
| Pool #A51250, 6.50%, 08/01/36 | | | 516,008 | | | | 523,377 | |
| Pool #A51337, 6.50%, 08/01/36 | | | 138,466 | | | | 140,444 | |
| Pool #G02267, 6.50%, 08/01/36 | | | 1,107,261 | | | | 1,123,074 | |
| Pool #A52253, 6.50%, 09/01/36 | | | 164,226 | | | | 166,571 | |
| Pool #G02375, 6.50%, 09/01/36 | | | 583,392 | | | | 591,724 | |
| Pool #G02342, 5.00%, 10/01/36 | | | 985,445 | | | | 933,237 | |
| Pool #A53040, 5.50%, 10/01/36 | | | 753,714 | | | | 735,570 | |
| Pool #A53286, 5.50%, 10/01/36 | | | 759,392 | | | | 741,111 | |
| Pool #A53632, 6.00%, 10/01/36 | | | 622,503 | | | | 621,764 | |
| Pool #A53039, 6.50%, 10/01/36 | | | 307,894 | | | | 312,292 | |
| Pool #A53219, 6.50%, 10/01/36 | | | 302,582 | | | | 306,903 | |
| Pool #A55587, 5.50%, 12/01/36 | | | 277,263 | | | | 270,588 | |
| Pool #G03449, 6.00%, 10/01/37 | | | 12,831,378 | | | | 12,816,141 | |
| Freddie Mac Non Gold Pool(a) | | | | | | | | |
| Pool #1J1593, 5.74%, 04/01/37 | | | 6,715,309 | | | | 6,803,647 | |
| Pool #1J1594, 5.87%, 04/01/37 | | | 7,510,002 | | | | 7,595,488 | |
| Pool #1G1945, 5.73%, 05/01/37 | | | 6,235,494 | | | | 6,306,942 | |
| Ginnie Mae I pool | | | | | | | | |
| Pool #279461, 9.00%, 11/15/19 | | | 1,906 | | | | 2,075 | |
| Pool #376510, 7.00%, 05/15/24 | | | 5,641 | | | | 5,820 | |
| Pool #457801, 7.00%, 08/15/28 | | | 8,783 | | | | 9,018 | |
| Pool #486936, 6.50%, 02/15/29 | | | 6,455 | | | | 6,561 | |
| Pool #502969, 6.00%, 03/15/29 | | | 20,898 | | | | 20,987 | |
| Pool #487053, 7.00%, 03/15/29 | | | 8,201 | | | | 8,411 | |
| Pool #781014, 6.00%, 04/15/29 | | | 18,606 | | | | 18,762 | |
| Pool #509099, 7.00%, 06/15/29 | | | 5,082 | | | | 5,212 | |
| Pool #470643, 7.00%, 07/15/29 | | | 13,414 | | | | 13,757 | |
| Pool #434505, 7.50%, 08/15/29 | | | 1,469 | | | | 1,550 | |
| Pool #416538, 7.00%, 10/15/29 | | | 1,257 | | | | 1,289 | |
| Pool #524269, 8.00%, 11/15/29 | | | 7,447 | | | | 7,961 | |
| Pool #781124, 7.00%, 12/15/29 | | | 33,857 | | | | 34,744 | |
| Pool #525561, 8.00%, 01/15/30 | | | 2,856 | | | | 3,053 | |
| Pool #507396, 7.50%, 09/15/30 | | | 72,432 | | | | 76,343 | |
| Pool #531352, 7.50%, 09/15/30 | | | 9,681 | | | | 10,203 | |
| Pool #536334, 7.50%, 10/15/30 | | | 852 | | | | 898 | |
| Pool #540659, 7.00%, 01/15/31 | | | 821 | | | | 840 | |
| Pool #486019, 7.50%, 01/15/31 | | | 3,223 | | | | 3,394 | |
| Pool #535388, 7.50%, 01/15/31 | | | 2,982 | | | | 3,141 | |
| Pool #537406, 7.50%, 02/15/31 | | | 2,899 | | | | 3,054 | |
| Pool #528589, 6.50%, 03/15/31 | | | 64,182 | | | | 65,198 | |
| Pool #508473, 7.50%, 04/15/31 | | | 12,483 | | | | 13,147 | |
| Pool #544470, 8.00%, 04/15/31 | | | 3,109 | | | | 3,322 | |
| Pool #781287, 7.00%, 05/15/31 | | | 19,394 | | | | 19,871 | |
| Pool #549742, 7.00%, 07/15/31 | | | 5,018 | | | | 5,134 | |
| Pool #781319, 7.00%, 07/15/31 | | | 6,194 | | | | 6,340 | |
| Pool #485879, 7.00%, 08/15/31 | | | 19,559 | | | | 20,009 | |
| Pool #572554, 6.50%, 09/15/31 | | | 139,675 | | | | 141,886 | |
| Pool #555125, 7.00%, 09/15/31 | | | 3,623 | | | | 3,706 | |
| Pool #781328, 7.00%, 09/15/31 | | | 18,240 | | | | 18,691 | |
| Pool #550991, 6.50%, 10/15/31 | | | 8,478 | | | | 8,612 | |
| Pool #571267, 7.00%, 10/15/31 | | | 2,494 | | | | 2,551 | |
| Pool #547948, 6.50%, 11/15/31 | | | 6,878 | | | | 6,987 | |
| Pool #574837, 7.50%, 11/15/31 | | | 2,325 | | | | 2,449 | |
| Pool #555171, 6.50%, 12/15/31 | | | 3,348 | | | | 3,401 | |
| Pool #781380, 7.50%, 12/15/31 | | | 5,571 | | | | 5,782 | |
| Pool #781481, 7.50%, 01/15/32 | | | 28,717 | | | | 30,272 | |
| Pool #580972, 6.50%, 02/15/32 | | | 5,228 | | | | 5,308 | |
| Pool #781401, 7.50%, 02/15/32 | | | 16,028 | | | | 16,888 | |
| Pool #781916, 6.50%, 03/15/32 | | | 366,186 | | | | 371,879 | |
| Pool #552474, 7.00%, 03/15/32 | | | 11,297 | | | | 11,549 | |
| Pool #781478, 7.50%, 03/15/32 | | | 9,569 | | | | 10,088 | |
| Pool #781429, 8.00%, 03/15/32 | | | 14,660 | | | | 15,671 | |
| Pool #781431, 7.00%, 04/15/32 | | | 68,761 | | | | 70,339 | |
| Pool #568715, 7.00%, 05/15/32 | | | 58,344 | | | | 59,643 | |
| Pool #552616, 7.00%, 06/15/32 | | | 64,460 | | | | 65,896 | |
| Pool #570022, 7.00%, 07/15/32 | | | 98,829 | | | | 101,031 | |
2008 Annual Report 25
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
U.S. Government Mortgage Backed Agencies (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| Pool #583645, 8.00%, 07/15/32 | | $ | 9,155 | | | $ | 9,779 | |
| Pool #595077, 6.00%, 10/15/32 | | | 56,737 | | | | 56,926 | |
| Pool #596657, 7.00%, 10/15/32 | | | 4,990 | | | | 5,101 | |
| Pool #552903, 6.50%, 11/15/32 | | | 307,780 | | | | 312,459 | |
| Pool #552952, 6.00%, 12/15/32 | | | 50,280 | | | | 50,447 | |
| Pool #602102, 6.00%, 02/15/33 | | | 65,165 | | | | 65,361 | |
| Pool #588192, 6.00%, 02/15/33 | | | 28,415 | | | | 28,500 | |
| Pool #603520, 6.00%, 03/15/33 | | | 65,546 | | | | 65,744 | |
| Pool #553144, 5.50%, 04/15/33 | | | 201,414 | | | | 198,031 | |
| Pool #604243, 6.00%, 04/15/33 | | | 118,004 | | | | 118,360 | |
| Pool #631924, 6.00%, 05/15/33 | | | 103,038 | | | | 103,348 | |
| Pool #611526, 6.00%, 05/15/33 | | | 59,248 | | | | 59,427 | |
| Pool #553320, 6.00%, 06/15/33 | | | 109,599 | | | | 109,929 | |
| Pool #572733, 6.00%, 07/15/33 | | | 28,305 | | | | 28,390 | |
| Pool #573916, 6.00%, 11/15/33 | | | 123,246 | | | | 123,618 | |
| Pool #604788, 6.50%, 11/15/33 | | | 196,079 | | | | 198,876 | |
| Pool #604875, 6.00%, 12/15/33 | | | 229,255 | | | | 229,946 | |
| Pool #781688, 6.00%, 12/15/33 | | | 217,914 | | | | 218,665 | |
| Pool #781690, 6.00%, 12/15/33 | | | 94,759 | | | | 95,116 | |
| Pool #781699, 7.00%, 12/15/33 | | | 37,396 | | | | 38,264 | |
| Pool #621856, 6.00%, 01/15/34 | | | 98,771 | | | | 99,007 | |
| Pool #564799, 6.00%, 03/15/34 | | | 490,484 | | | | 491,655 | |
| Pool #630038, 6.50%, 08/15/34 | | | 197,568 | | | | 200,201 | |
| Pool #781804, 6.00%, 09/15/34 | | | 339,018 | | | | 339,577 | |
| Pool #781847, 6.00%, 12/15/34 | | | 293,769 | | | | 294,203 | |
| Pool #486921, 5.50%, 02/15/35 | | | 128,507 | | | | 126,188 | |
| Pool #781902, 6.00%, 02/15/35 | | | 286,165 | | | | 286,556 | |
| Pool #781905, 5.00%, 04/15/35 | | | 737,326 | | | | 706,635 | |
| Pool #646799, 4.50%, 07/15/35 | | | 149,474 | | | | 136,892 | |
| Pool #645035, 5.00%, 07/15/35 | | | 124,055 | | | | 118,603 | |
| Pool #641734, 4.50%, 09/15/35 | | | 829,218 | | | | 759,419 | |
| Pool #641779, 5.00%, 09/15/35 | | | 2,998,289 | | | | 2,866,511 | |
| Pool #649454, 5.50%, 09/15/35 | | | 1,176,895 | | | | 1,156,024 | |
| Pool #649510, 5.50%, 10/15/35 | | | 1,777,685 | | | | 1,746,158 | |
| Pool #649513, 5.50%, 10/15/35 | | | 2,401,136 | | | | 2,358,553 | |
| Pool #602461, 5.00%, 12/15/35 | | | 136,256 | | | | 130,267 | |
| Pool #648439, 5.00%, 01/15/36 | | | 258,104 | | | | 246,679 | |
| Pool #650712, 5.00%, 01/15/36 | | | 355,421 | | | | 339,689 | |
| Pool #652207, 5.50%, 03/15/36 | | | 2,239,445 | | | | 2,199,030 | |
| Pool #652539, 5.00%, 05/15/36 | | | 159,748 | | | | 152,677 | |
| Pool #655519, 5.00%, 05/15/36 | | | 335,236 | | | | 320,397 | |
| Pool #653598, 5.50%, 05/15/36 | | | 562,710 | | | | 552,555 | |
| Pool #606308, 5.50%, 05/15/36 | | | 381,956 | | | | 375,063 | |
| Pool #606314, 5.50%, 05/15/36 | | | 169,321 | | | | 166,265 | |
| Pool #655457, 6.00%, 05/15/36 | | | 159,042 | | | | 159,271 | |
| Pool #635306, 6.00%, 06/15/36 | | | 847,601 | | | | 848,566 | |
| Pool #656666, 6.00%, 06/15/36 | | | 780,646 | | | | 781,535 | |
| Pool #657912, 6.50%, 08/15/36 | | | 164,302 | | | | 166,284 | |
| | | | | |
Total U.S. Government Mortgage Backed Agencies | | | 355,400,774 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Sponsored & Agency Obligations 32.7% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| Federal Home Loan Bank System, 5.25%, 06/05/17 | | | 7,100,000 | | | | 7,062,860 | |
| Federal Home Loan Mortgage Corp. | | | | | | | | |
| 4.25%, 07/15/09 | | | 947,000 | | | | 956,977 | |
| 6.63%, 09/15/09 | | | 441,000 | | | | 455,004 | |
| 2.75%, 04/11/11 | | | 13,765,000 | | | | 13,647,364 | |
| 3.88%, 06/29/11 | | | 3,160,000 | | | | 3,216,343 | |
| 5.13%, 07/15/12 | | | 4,234,000 | | | | 4,424,996 | |
| 4.88%, 11/15/13 | | | 6,992,000 | | | | 7,184,567 | |
| 4.38%, 07/17/15 | | | 5,016,000 | | | | 4,921,719 | |
| 5.00%, 12/14/18 | | | 1,225,000 | | | | 1,112,839 | |
| 6.75%, 09/15/29 | | | 388,000 | | | | 437,893 | |
| 6.25%, 07/15/32 | | | 865,000 | | | | 939,172 | |
| Federal National Mortgage Association | | | | | | | | |
| 5.13%, 04/15/11 | | | 3,334,000 | | | | 3,464,953 | |
| 5.38%, 11/15/11 | | | 2,434,000 | | | | 2,565,473 | |
| 4.63%, 10/15/14 | | | 1,236,000 | | | | 1,245,499 | |
| 5.00%, 04/15/15 | | | 1,132,000 | | | | 1,155,641 | |
| 4.38%, 10/15/15 | | | 82,000 | | | | 80,117 | |
| 5.38%, 06/12/17 | | | 5,505,000 | | | | 5,564,713 | |
| 6.00%, 10/01/36 | | | 2,926,771 | | | | 2,927,076 | |
| 6.00%, 05/01/37 | | | 930,627 | | | | 930,724 | |
| 6.00%, 10/01/37 | | | 8,892,371 | | | | 8,892,797 | |
| 7.00%, 11/01/37 | | | 3,999,998 | | | | 4,134,295 | |
| 6.00%, 04/01/38 | | | 513,927 | | | | 513,900 | |
| 6.00%, 08/01/38 | | | 3,549,178 | | | | 3,548,994 | |
| 6.00%, 10/01/38 | | | 2,696,967 | | | | 2,696,827 | |
| 6.00%, 10/01/38 | | | 2,229,476 | | | | 2,229,360 | |
| Financing Corp. (FICO), 9.80%, 11/30/17 | | | 12,000 | | | | 15,818 | |
| Tennessee Valley Authority, Series E, 6.25%, 12/15/17 | | | 35,000 | | | | 36,774 | |
| U.S. Treasury Bond | | | | | | | | |
| 8.13%, 08/15/19 | | | 1,500,000 | | | | 1,934,883 | |
| 8.50%, 02/15/20 | | | 2,297,000 | | | | 3,052,855 | |
| 6.25%, 08/15/23 | | | 11,774,000 | | | | 13,479,393 | |
| 6.88%, 08/15/25 | | | 2,477,000 | | | | 3,085,220 | |
| 6.38%, 08/15/27 | | | 8,415,000 | | | | 10,078,275 | |
| 5.38%, 02/15/31 | | | 2,093,000 | | | | 2,290,037 | |
| 4.50%, 02/15/36 | | | 3,210,000 | | | | 3,269,436 | |
| 5.00%, 05/15/37 | | | 215,000 | | | | 236,802 | |
| 4.38%, 02/15/38 | | | 1,500,000 | | | | 1,504,454 | |
| 4.50%, 05/15/38 | | | 3,000,000 | | | | 3,066,327 | |
| U.S. Treasury Notes | | | | | | | | |
| 4.75%, 02/15/10 | | | 13,418,000 | | | | 13,967,306 | |
| 2.13%, 04/30/10 | | | 10,000,000 | | | | 10,110,940 | |
| 2.00%, 09/30/10 | | | 10,000,000 | | | | 10,092,970 | |
| 4.25%, 01/15/11 | | | 5,500,000 | | | | 5,842,463 | |
| 4.50%, 09/30/11 | | | 24,155,000 | | | | 25,998,703 | |
| 4.63%, 02/29/12 | | | 14,134,000 | | | | 15,347,531 | |
| 4.75%, 05/31/12 | | | 3,535,000 | | | | 3,862,539 | |
26 Annual Report 2008
| | | | | | | | | |
U.S. Government Sponsored & Agency Obligations (continued) |
| | | | Principal
Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| 4.25%, 09/30/12 | | $ | 2,585,000 | | | $ | 2,795,636 | |
| 3.88%, 10/31/12 | | | 3,365,000 | | | | 3,589,247 | |
| 3.63%, 12/31/12 | | | 4,000,000 | | | | 4,222,500 | |
| 2.75%, 02/28/13 | | | 19,855,000 | | | | 20,129,555 | |
| 4.00%, 02/15/15 | | | 1,400,000 | | | | 1,463,000 | |
| 4.13%, 05/15/15 | | | 2,072,000 | | | | 2,159,088 | |
| 4.88%, 08/15/16 | | | 3,033,000 | | | | 3,232,277 | |
| 4.63%, 02/15/17 | | | 4,135,000 | | | | 4,346,596 | |
| 4.50%, 05/15/17 | | | 5,595,000 | | | | 5,829,291 | |
| 8.75%, 05/15/17 | | | 3,336,000 | | | | 4,370,420 | |
| 4.25%, 11/15/17 | | | 13,020,000 | | | | 13,391,278 | |
| 4.00%, 08/15/18 | | | 8,125,000 | | | | 8,135,790 | |
| | | | | |
Total U.S. Government Sponsored & Agency Obligations | | | 285,247,507 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Yankee Dollars 0.9% |
| | | | | | | | | |
| | | | | | | | | |
Airline 0.0%(b) |
| Qantas Airways Ltd., 6.05%, 04/15/16 | | | 123,000 | | | | 111,576 | |
| | | | | | | | | |
| |
| |
Banks 0.3% |
| National Australia Bank Ltd., Series A, 8.60%, 05/19/10 | | | 123,000 | | | | 126,533 | |
| Royal Bank of Scotland Group PLC, 4.70%, 07/03/18 | | | 328,000 | | | | 207,818 | |
| Santander Central Hispano Issuances Ltd., 7.63%, 11/03/09 | | | 1,886,000 | | | | 1,793,509 | |
| Westpac Banking Corp., 4.63%, 06/01/18 | | | 103,000 | | | | 88,202 | |
| | | | | | | | | |
| | | | | | | | 2,216,062 | |
| | | | | | | | | |
| |
| |
Insurance 0.0% |
| Montpelier Re Holdings Ltd., 6.13%, 08/15/13 | | | 51,000 | | | | 25,021 | |
| | | | | | | | | |
| |
| |
Metals & Mining 0.1% |
| Alcan, Inc. | | | | | | | | |
| 6.45%, 03/15/11 | | | 31,000 | | | | 30,142 | |
| 4.50%, 05/15/13 | | | 158,000 | | | | 133,224 | |
| Inco Ltd., 7.75%, 05/15/12 | | | 123,000 | | | | 123,160 | |
| Potash Corp. of Saskatchewan | | | | | | | | |
| 7.75%, 05/31/11 | | | 29,000 | | | | 29,462 | |
| 4.88%, 03/01/13 | | | 115,000 | | | | 103,046 | |
| Teck Cominco Ltd., 6.13%, 10/01/35 | | | 103,000 | | | | 56,325 | |
| Xstrata Canada Corp., 6.20%, 06/15/35 | | | 123,000 | | | | 73,388 | |
| | | | | | | | | |
| | | | | | | | 548,747 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 0.3% |
| Canadian Natural Resources Ltd., 4.90%, 12/01/14 | | | 195,000 | | | | 166,120 | |
| Enbridge, Inc., 5.60%, 04/01/17 | | | 750,000 | | | | 602,430 | |
| EnCana Corp. | | | | | | | | |
| 4.75%, 10/15/13 | | | 236,000 | | | | 199,858 | |
| 6.50%, 08/15/34 | | | 250,000 | | | | 176,299 | |
| Nexen, Inc. | | | | | | | | |
| 5.05%, 11/20/13 | | | 105,000 | | | | 93,276 | |
| 5.20%, 03/10/15 | | | 250,000 | | | | 205,490 | |
| 5.88%, 03/10/35 | | | 92,000 | | | | 60,510 | |
| 6.40%, 05/15/37 | | | 250,000 | | | | 170,520 | |
| Petro-Canada, 5.95%, 05/15/35 | | | 189,000 | | | | 115,217 | |
| StatoilHydro ASA, 6.80%, 01/15/28 | | | 425,000 | | | | 380,784 | |
| Talisman Energy, Inc. | | | | | | | | |
| 7.25%, 10/15/27 | | | 92,000 | | | | 68,770 | |
| 5.75%, 05/15/35 | | | 250,000 | | | | 151,922 | |
| | | | | | | | | |
| | | | | | | | 2,391,196 | |
| | | | | | | | | |
| |
| |
Oilfield Machinery & Services 0.0% |
| Weatherford International Ltd., 5.50%, 02/15/16 | | | 51,000 | | | | 39,709 | |
| | | | | | | | | |
| |
| |
Other Financial 0.1% |
| BHP Billiton Finance USA Ltd., 6.42%, 03/01/26 | | | 55,000 | | | | 48,381 | |
| Brookfield Asset Management, Inc., 5.75%, 03/01/10 | | | 125,000 | | | | 125,141 | |
| Burlington Resources Finance Co. | | | | | | | | |
| 6.40%, 08/15/11 | | | 86,000 | | | | 86,753 | |
| 6.50%, 12/01/11 | | | 144,000 | | | | 144,045 | |
| ConocoPhillips Canada Funding Co. I, 5.63%, 10/15/16 | | | 760,000 | | | | 667,015 | |
| | | | | | | | | |
| | | | | | | | 1,071,335 | |
| | | | | | | | | |
| |
| |
Other Utility 0.0% |
| Hydro Quebec | | | | | | | | |
| 8.40%, 01/15/22 | | | 153,000 | | | | 200,397 | |
| 8.88%, 03/01/26 | | | 109,000 | | | | 156,153 | |
| Scottish Power PLC, 5.81%, 03/15/25 | | | 82,000 | | | | 61,184 | |
| | | | | | | | | |
| | | | | | | | 417,734 | |
| | | | | | | | | |
| |
| |
Pipelines 0.0% |
| TransCanada Pipelines Ltd., 5.85%, 03/15/36 | | | 500,000 | | | | 326,157 | |
| | | | | | | | | |
| |
| |
Road & Rail 0.1% |
| Canadian National Railway Co. | | | | | | | | |
| 4.40%, 03/15/13 | | | 515,000 | | | | 478,747 | |
| 6.90%, 07/15/28 | | | 168,000 | | | | 147,445 | |
| 6.20%, 06/01/36 | | | 164,000 | | | | 127,521 | |
| | | | | | | | | |
| | | | | | | | 753,713 | |
| | | | | | | | | |
| | | | | |
Total Yankee Dollars | | | 7,901,250 | |
| | | | | |
2008 Annual Report 27
Statement of Investments (Continued)
October 31, 2008
Nationwide Bond Index Fund (Continued)
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreements 6.3% |
| | | | | | | | | |
| | | | Principal
Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $54,759,462, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $55,854,279 | | $ | 54,759,097 | | | $ | 54,759,097 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $1,002,900,984) (d) — 110.0% | | | 959,070,986 | |
Liabilities in excess of other assets — (10.0)% | | | | | | | (87,475,105 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 871,595,881 | |
| | | | | |
| | |
| (a) | | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on October 31, 2008. The maturity date represents the actual maturity date. |
| |
| (b) | | Illiquid security. |
| |
| (c) | | Step Bond: Coupon rate is set for an initial period and then decreases to a lower coupon rate at a specified date. The rate shown is the rate in effect at October 31, 2008. |
| |
| (d) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| LP | | Limited Partnership |
| |
| PCL | | Public Company Limited |
| |
| REIT | | Real Estate Investment Trust |
| |
| TBA | | To Be Announced. |
| |
| UK | | United Kingdom |
| |
| ULC | | Unlimited Liability Co. |
The accompanying notes are an integral part of these financial statements.
28 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Bond Index Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $948,141,887) | | | $ | 904,311,889 | |
| Repurchase agreements, at value and cost | | | | 54,759,097 | |
| | | | | | |
| Total Investments | | | | 959,070,986 | |
| | | | | | |
| Interest receivable | | | | 9,277,787 | |
| Receivable for capital shares issued | | | | 260,132 | |
| Receivable for investments sold | | | | 178,944,952 | |
| Prepaid expenses and other assets | | | | 31,344 | |
| | | | | | |
| Total Assets | | | | 1,147,585,201 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 275,081,935 | |
| Distributions payable | | | | 23,246 | |
| Payable for capital shares redeemed | | | | 493,666 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 164,080 | |
| Fund administration fees | | | | 89,736 | |
| Distribution fees | | | | 20,589 | |
| Trustee fees | | | | 2,473 | |
| Compliance program costs (Note 3) | | | | 3,887 | |
| Custodian fees | | | | 9,520 | |
| Other | | | | 100,188 | |
| | | | | | |
| Total Liabilities | | | | 275,989,320 | |
| | | | | | |
Net Assets | | | $ | 871,595,881 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 924,183,532 | |
| Accumulated undistributed net investment income | | | | 1,666,211 | |
| Accumulated net realized losses from investment transactions | | | | (10,423,864 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (43,829,998 | ) |
| | | | | | |
Net Assets | | | $ | 871,595,881 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 94,526,053 | |
| Class B Shares | | | | 371,489 | |
| Class C Shares | | | | 159,582 | |
| Institutional Class Shares | | | | 776,538,757 | |
| | | | | | |
| Total | | | $ | 871,595,881 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 29
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Bond Index Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 9,154,938 | |
| Class B Shares | | | | 35,985 | |
| Class C Shares | | | | 15,456 | |
| Institutional Class Shares | | | | 75,285,996 | |
| | | | | | |
| Total | | | | 84,492,375 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 10.33 | |
| Class B Shares (a) | | | $ | 10.32 | |
| Class C Shares (b) | | | $ | 10.33 | |
| Institutional Class Shares | | | $ | 10.31 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 10.96 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
30 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Bond
| |
| | | Index Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 50,072,294 | |
| Income from securities lending (Note 2) | | | | 3,306 | |
| | | | | | |
| Total Income | | | | 50,075,600 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 2,161,535 | |
| Fund administration fees | | | | 955,143 | |
| Distribution fees Class A | | | | 206,389 | |
| Distribution fees Class B | | | | 2,815 | |
| Distribution fees Class C | | | | 1,467 | |
| Administrative servicing fees Class A | | | | 88,579 | |
| Professional fees | | | | 139,996 | |
| Printing fees | | | | 24,313 | |
| Accounting and transfer agent fees | | | | 236,920 | |
| Trustee fees | | | | 49,979 | |
| Custodian fees | | | | 50,989 | |
| Other | | | | 57,111 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 3,975,236 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (6,680 | ) |
| Expenses reimbursed by Advisor | | | | (527,490 | ) |
| Administrator fees voluntarily waived | | | | (2,158 | ) |
| | | | | | |
| Net Expenses | | | | 3,438,908 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 46,636,692 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 761,099 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (42,918,960 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (42,157,861 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | 4,478,831 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 31
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Bond Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 46,636,692 | | | | $ | 80,398,955 | |
| Net realized gains (losses) from investment transactions | | | | 761,099 | | | | | (4,355,370 | )(a) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (42,918,960 | ) | | | | 4,905,725 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | 4,478,831 | | | | | 80,949,310 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (3,625,235 | ) | | | | (2,254,410 | ) |
| Class B | | | | (10,633 | ) | | | | (9,299 | ) |
| Class C | | | | (5,488 | ) | | | | (768 | ) |
| Institutional Class | | | | (42,907,686 | ) | | | | (77,821,728 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (46,549,042 | ) | | | | (80,086,205 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (200,685,497 | ) | | | | (967,467,219 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (242,755,708 | ) | | | | (966,604,114 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,114,351,589 | | | | | 2,080,955,703 | |
| | | | | | | | | | | |
| End of period | | | $ | 871,595,881 | | | | $ | 1,114,351,589 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 1,666,211 | | | | $ | 1,811,824 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 58,816,595 | | | | $ | 34,547,409 | |
| Dividends reinvested | | | | 3,371,787 | | | | | 2,097,889 | |
| Cost of shares redeemed (b) | | | | (29,167,456 | ) | | | | (15,079,092 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 33,020,926 | | | | | 21,566,206 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 182,200 | | | | | 77,615 | |
| Dividends reinvested | | | | 7,899 | | | | | 5,920 | |
| Cost of shares redeemed | | | | (53,959 | ) | | | | (11,789 | ) |
| | | | | | | | | | | |
| Total Class B | | | | 136,140 | | | | | 71,746 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 222,346 | | | | | 57,369 | |
| Dividends reinvested | | | | 471 | | | | | 315 | |
| Cost of shares redeemed | | | | (117,132 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 105,685 | | | | | 57,684 | |
| | | | | | | | | | | |
| |
| (a) | Includes realized gain as a result of a Redemption In Kind.
|
| |
| (b) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
32 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Bond Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 106,935,656 | | | | $ | 420,558,060 | |
| Dividends reinvested | | | | 42,907,686 | | | | | 77,821,728 | |
| Redemptions in-kind | | | | – | | | | | (1,412,594,323 | ) |
| Cost of shares redeemed | | | | (383,791,590 | ) | | | | (74,948,320 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | (233,948,248 | ) | | | | (989,162,855 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (200,685,497 | ) | | | $ | (967,467,219 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 5,401,773 | | | | | 3,213,573 | |
| Reinvested | | | | 311,445 | | | | | 195,031 | |
| Redeemed | | | | (2,675,279 | ) | | | | (1,403,337 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 3,037,939 | | | | | 2,005,267 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 16,806 | | | | | 7,166 | |
| Reinvested | | | | 727 | | | | | 550 | |
| Redeemed | | | | (4,917 | ) | | | | (1,103 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | 12,616 | | | | | 6,613 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 20,453 | | | | | 5,298 | |
| Reinvested | | | | 44 | | | | | 29 | |
| Redeemed | | | | (10,847 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 9,650 | | | | | 5,327 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 9,838,186 | | | | | 39,084,797 | |
| Reinvested | | | | 3,955,515 | | | | | 7,228,846 | |
| Redemption In Kind | | | | – | | | | | (130,916,990 | ) |
| Redeemed | | | | (35,444,042 | ) | | | | (6,968,758 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | (21,650,341 | ) | | | | (91,572,105 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | (18,590,136 | ) | | | | (89,554,898 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 33
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Index Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .82 | | | | 0 | .48 | | | | (0 | .49) | | | | (0 | .01) | | | | (0 | .48) | | | | – | | | | | (0 | .48) | | | $ | 10 | .33 | | | | (0 | .23%) | | | $ | 94,526,053 | | | | | 0 | .66% | | | | 4 | .41% | | | | 0 | .73% | | | | 123 | .88% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .81 | | | | 0 | .49 | | | | 0 | .01 | | | | 0 | .50 | | | | (0 | .49) | | | | – | | | | | (0 | .49) | | | $ | 10 | .82 | | | | 4 | .77% | | | $ | 66,184,484 | | | | | 0 | .73% | | | | 4 | .60% | | | | 0 | .77% | | | | 164 | .97% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .77 | | | | 0 | .44 | | | | 0 | .04 | | | | 0 | .48 | | | | (0 | .44) | | | | – | | | | | (0 | .44) | | | $ | 10 | .81 | | | | 4 | .59% | | | $ | 44,444,115 | | | | | 0 | .71% | | | | 4 | .15% | | | | 0 | .75% | | | | 113 | .91% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .13 | | | | 0 | .41 | | | | (0 | .34) | | | | 0 | .07 | | | | (0 | .42) | | | | (0 | .01) | | | | (0 | .43) | | | $ | 10 | .77 | | | | 0 | .56% | | | $ | 42,125,615 | | | | | 0 | .71% | | | | 3 | .74% | | | | 0 | .77% | | | | 153 | .31% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .98 | | | | 0 | .36 | | | | 0 | .17 | | | | 0 | .53 | | | | (0 | .38) | | | | – | | | | | (0 | .38) | | | $ | 11 | .13 | | | | 4 | .94% | | | $ | 40,756,609 | | | | | 0 | .71% | | | | 3 | .25% | | | | 0 | .77% | | | | 151 | .56% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .82 | | | | 0 | .41 | | | | (0 | .50) | | | | (0 | .09) | | | | (0 | .41) | | | | – | | | | | (0 | .41) | | | $ | 10 | .32 | | | | (0 | .94%) | | | $ | 371,489 | | | | | 1 | .29% | | | | 3 | .80% | | | | 1 | .37% | | | | 123 | .88% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .81 | | | | 0 | .43 | | | | 0 | .01 | | | | 0 | .44 | | | | (0 | .43) | | | | – | | | | | (0 | .43) | | | $ | 10 | .82 | | | | 4 | .15% | | | $ | 252,812 | | | | | 1 | .33% | | | | 4 | .01% | | | | 1 | .37% | | | | 164 | .97% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .77 | | | | 0 | .38 | | | | 0 | .04 | | | | 0 | .42 | | | | (0 | .38) | | | | – | | | | | (0 | .38) | | | $ | 10 | .81 | | | | 3 | .96% | | | $ | 181,099 | | | | | 1 | .32% | | | | 3 | .56% | | | | 1 | .36% | | | | 113 | .91% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .13 | | | | 0 | .33 | | | | (0 | .33) | | | | – | | | | | (0 | .35) | | | | (0 | .01) | | | | (0 | .36) | | | $ | 10 | .77 | | | | (0 | .04%) | | | $ | 217,526 | | | | | 1 | .31% | | | | 3 | .18% | | | | 1 | .37% | | | | 153 | .31% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .98 | | | | 0 | .30 | | | | 0 | .17 | | | | 0 | .47 | | | | (0 | .32) | | | | – | | | | | (0 | .32) | | | $ | 11 | .13 | | | | 4 | .32% | | | $ | 456,641 | | | | | 1 | .31% | | | | 2 | .70% | | | | 1 | .37% | | | | 151 | .56% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .82 | | | | 0 | .41 | | | | (0 | .49) | | | | (0 | .08) | | | | (0 | .41) | | | | – | | | | | (0 | .41) | | | $ | 10 | .33 | | | | (0 | .87%) | | | $ | 159,582 | | | | | 1 | .30% | | | | 3 | .77% | | | | 1 | .37% | | | | 123 | .88% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .81 | | | | 0 | .41 | | | | 0 | .02 | | | | 0 | .43 | | | | (0 | .42) | | | | – | | | | | (0 | .42) | | | $ | 10 | .82 | | | | 4 | .11% | | | $ | 62,803 | | | | | 1 | .33% | | | | 3 | .99% | | | | 1 | .38% | | | | 164 | .97% | | |
| Period Ended October 31, 2006 (g) | | | $ | 10 | .68 | | | | 0 | .23 | | | | 0 | .13 | | | | 0 | .36 | | | | (0 | .23) | | | | – | | | | | (0 | .23) | | | $ | 10 | .81 | | | | 3 | .43% | | | $ | 5,172 | | | | | 1 | .31% | | | | 3 | .73% | | | | 1 | .38% | | | | 113 | .91% | | |
34 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Index Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .81 | | | | 0 | .52 | | | | (0 | .50) | | | | 0 | .02 | | | | (0 | .52) | | | | – | | | | | (0 | .52) | | | $ | 10 | .31 | | | | 0 | .03% | | | $ | 776,538,757 | | | | | 0 | .32% | | | | 4 | .78% | | | | 0 | .37% | | | | 123 | .88% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .80 | | | | 0 | .55 | | | | – | | | | | 0 | .55 | | | | (0 | .54) | | | | – | | | | | (0 | .54) | | | $ | 10 | .81 | | | | 5 | .19% | | | $ | 1,047,851,490 | | | | | 0 | .32% | | | | 4 | .99% | | | | 0 | .35% | | | | 164 | .97% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .77 | | | | 0 | .48 | | | | 0 | .03 | | | | 0 | .51 | | | | (0 | .48) | | | | – | | | | | (0 | .48) | | | $ | 10 | .80 | | | | 4 | .91% | | | $ | 2,036,325,317 | | | | | 0 | .32% | | | | 4 | .57% | | | | 0 | .36% | | | | 113 | .91% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .13 | | | | 0 | .45 | | | | (0 | .34) | | | | 0 | .11 | | | | (0 | .46) | | | | (0 | .01) | | | | (0 | .47) | | | $ | 10 | .77 | | | | 0 | .97% | | | $ | 1,470,683,458 | | | | | 0 | .31% | | | | 4 | .14% | | | | 0 | .37% | | | | 153 | .31% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .98 | | | | 0 | .41 | | | | 0 | .17 | | | | 0 | .58 | | | | (0 | .43) | | | | – | | | | | (0 | .43) | | | $ | 11 | .13 | | | | 5 | .36% | | | $ | 952,041,841 | | | | | 0 | .31% | | | | 3 | .69% | | | | 0 | .37% | | | | 151 | .56% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Per share calculations were performed using average shares method. |
| (g) | For the period from March 29, 2006 (commencement of operations) through October 31, 2006. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 35
| |
| Nationwide International Index Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
The Fund seeks to match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index as closely as possible before the deduction of Fund expenses. For the annual period ended October 31, 2008, the Nationwide International Index Fund (Class A at NAV) registered -46.65% versus -46.34% for its benchmark, the MSCI EAFE Index. For broader comparison, the average return for the Fund’s closest Lipper Inc. peer category of International Multi-Cap Core Funds (consisting of 386 funds as of October 31, 2008) was -47.01% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
All 10 sectors and 21 countries represented in the MSCI EAFE Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors on a relative basis included health care, with -20.52%; utilities, with -30.84%; consumer staples, with -31.86%; energy, with -37.52%; and telecommunications services, with -42.34%. Regarding country allocations, Switzerland, with -32.30%; Japan, with -37.50%; France, with -46.29%; Germany, with -47.08%; and the United Kingdom, with -47.66%, posted the highest relative returns during the reporting period.
What areas of investment detracted from Fund performance?
The weakest-performing sectors during the reporting period were financials, with -57.00%; materials, with -54.77%; industrials, with -52.92%; and information technology, with -50.31%. All of these sectors underperformed the broad market. In addition, equity market returns in Belgium, with -69.62%; Ireland, with -68.91%; Austria, with -67.32%; and Greece, with -63.51%, lagged the return of the benchmark index.
What is your outlook for the near term?
Many of the necessary conditions for a market bottom appear to be falling into place. Investor pessimism is widespread, equity valuations are attractive versus alternatives such as U.S. Treasuries, and a defining financial crisis has been followed by aggressive policy responses. In addition, a great deal of cash is on the sidelines and the sectors that underperformed the most during the last two months of the reporting period (financials and consumer discretionary) recently have outperformed.
The aggressive actions by central banks and governments around the developed world should help the markets begin the healing process, but a sustained rally in equities will require evidence that the measures are working.
Ultimately, the economic and financial outlook is likely to remain troubled for some time. The equity markets might enjoy a bounce in the near term, but it also would not be a surprise to see these markets fall back again as the reality of the looming economic challenges sets in.
Subadviser:
BlackRock Investment Management, LLC
Portfolio Managers:
Debra L. Jelilian and Jeffrey L. Russo, CFA
36 Annual Report 2008
| |
| Fund Performance | Nationwide International Index Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC2 | | | -46.65% | | | | 3.29% | | | | -2.39% | | | | 0.81% | | | | 0.79% | |
| | | w/SC3 | | | -49.72% | | | | 2.08% | | | | -3.04% | | | | | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -47.04% | | | | 2.62% | | | | -3.05% | | | | 1.39% | | | | 1.37% | |
| | | w/SC4 | | | -49.54% | | | | 2.27% | | | | -3.05% | | | | | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -46.98% | | | | 2.38% | | | | -3.18% | | | | 1.39% | | | | 1.37% | |
| | | w/SC7 | | | -47.48% | | | | 2.38% | | | | -3.18% | | | | | | | | | |
| |
| |
Class R6,8 | | | | | -46.76% | | | | 3.26% | | | | -2.41% | | | | 1.09% | | | | 1.07% | |
| |
| |
Institutional Class6 | | | | | -46.44% | | | | 3.69% | | | | -2.02% | | | | 0.39% | | | | 0.37% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on December 29, 1999. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (2/14/05) include the performance of the Fund’s Class B shares, which began operations on December 29, 1999 prior to the creation of the Class C. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C would have produced because Class C invests in the same portfolio of securities as Class B shares. The performance for Class C has been restated for sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. |
| |
| 6 | | Not subject to any sales charges. |
| |
| 7 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 8 | | These returns until the creation of Class R shares (3/9/07) include the previous performance of the Fund’s Class A shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R shares has been restated to reflect differences in sales charges, but does not reflect the higher level of other fees applicable to such class; if these fees were reflected, the performance for Class R shares would have been lower. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide International Index Fund, the Morgan Stanley Capital International - Europe, Australasia, and Far East Index (MSCI EAFE)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The MSCI EAFE - an unmanaged index of companies whose securities are listed on the stock exchanges of the U.S., Europe, Canada, Australia and the Far East - gives a broad look at how the stock prices of these companies have performed. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 37
| |
| Shareholder | Nationwide International Index Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide International Index Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 593.58 | | | | 2.76 | | | | 0.69 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.67 | | | | 3.51 | | | | 0.69 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 590.81 | | | | 5.91 | | | | 1.48 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.71 | | | | 7.52 | | | | 1.48 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 591.52 | | | | 5.50 | | | | 1.37 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.23 | | | | 7.00 | | | | 1.37 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 592.88 | | | | 3.32 | | | | 0.83 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.96 | | | | 4.23 | | | | 0.83 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 594.84 | | | | 1.49 | | | | 0.37 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.27 | | | | 1.89 | | | | 0.37 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
38 Annual Report 2008
| |
| Portfolio Summary | Nationwide International Index Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 97.7% | |
| Repurchase Agreements* | | | 9.8% | |
| Preferred Stocks | | | 0.4% | |
| Exchange Traded Fund | | | 0.1% | |
| Rights | | | 0.0% | |
| Warrants | | | 0.0% | |
| Liabilities in excess of other assets** | | | -8.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Commercial Banks | | | 12.8% | |
| Oil, Gas & Consumable Fuels | | | 8.4% | |
| Pharmaceuticals | | | 8.2% | |
| Diversified Telecommunication Services | | | 4.5% | |
| Electric Utilities | | | 4.5% | |
| Insurance | | | 4.3% | |
| Metals & Mining | | | 4.2% | |
| Automobiles | | | 4.2% | |
| Food Products | | | 3.7% | |
| Chemicals | | | 2.7% | |
| Other | | | 42.5% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings*** | | |
| |
| Nestle SA | | | 2.0% | |
| BP PLC | | | 1.9% | |
| HSBC Holdings PLC | | | 1.8% | |
| Novartis AG | | | 1.5% | |
| Total SA | | | 1.5% | |
| Roche Holding AG | | | 1.4% | |
| Toyota Motor Corp. | | | 1.4% | |
| GlaxoSmithKline PLC | | | 1.3% | |
| Vodafone Group PLC | | | 1.3% | |
| Royal Dutch Shell PLC, Class A | | | 1.2% | |
| Other | | | 84.7% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Countries | | |
| |
| Japan | | | 23.2% | |
| United Kingdom | | | 21.1% | |
| France | | | 10.0% | |
| Germany | | | 8.4% | |
| Switzerland | | | 8.4% | |
| Australia | | | 5.8% | |
| Spain | | | 3.9% | |
| Italy | | | 3.5% | |
| Netherlands | | | 2.8% | |
| Hong Kong | | | 2.0% | |
| Other | | | 10.9% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | Includes value of collateral received from securities lending. |
| |
| ** | | Includes value of collateral owed from securities lending. |
| |
| *** | | For purpose of listing top holdings, repurchase agreements are included as part of Other. |
2008 Annual Report 39
Statement of Investments
October 31, 2008
Nationwide International Index Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 97.7% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
AUSTRALIA 5.8%(a) |
Air Freight & Logistics 0.0% |
| Toll Holdings Ltd. | | | 105,954 | | | $ | 422,820 | |
| | | | | | | | | |
Airline 0.0% |
| Qantas Airways Ltd. | | | 159,288 | | | | 258,629 | |
| | | | | | | | | |
Beverages 0.2% |
Coca-Cola Amatil Ltd. | | | 103,979 | | | | 561,071 | |
| Foster’s Group Ltd. | | | 308,102 | | | | 1,177,371 | |
| Lion Nathan Ltd. | | | 34,943 | | | | 206,420 | |
| | | | | | | | | |
| | | | | | | | 1,944,862 | |
| | | | | | | | | |
Biotechnology 0.2% |
| CSL Ltd. | | | 96,026 | | | | 2,334,461 | |
| | | | | | | | | |
Capital Markets 0.1% |
| Macquarie Group Ltd.(b) | | | 44,119 | | | | 874,954 | |
| Perpetual Ltd. | | | 3,903 | | | | 90,854 | |
| | | | | | | | | |
| | | | | | | | 965,808 | |
| | | | | | | | | |
Chemicals 0.1% |
| Incitec Pivot Ltd. | | | 198,780 | | | | 532,736 | |
| Orica Ltd. | | | 57,835 | | | | 751,485 | |
| | | | | | | | | |
| | | | | | | | 1,284,221 | |
| | | | | | | | | |
Commercial Banks 1.6% |
| Australia & New Zealand Banking Group Ltd. | | | 308,471 | | | | 3,614,704 | |
| Bendigo & Adelaide Bank Ltd. | | | 46,300 | | | | 408,295 | |
| Commonwealth Bank of Australia | | | 212,989 | | | | 5,820,053 | |
| National Australia Bank Ltd. | | | 261,921 | | | | 4,248,376 | |
| St George Bank Ltd. | | | 88,896 | | | | 1,662,567 | |
| Westpac Banking Corp.(b) | | | 301,626 | | | | 4,136,930 | |
| | | | | | | | | |
| | | | | | | | 19,890,925 | |
| | | | | | | | | |
Commercial Services & Supplies 0.1% |
| Brambles Ltd. | | | 222,327 | | | | 1,185,462 | |
| | | | | | | | | |
Construction & Engineering 0.0% |
| Boart Longyear Group | | | 186,874 | | | | 54,200 | |
| Leighton Holdings Ltd.(b) | | | 24,535 | | | | 407,810 | |
| | | | | | | | | |
| | | | | | | | 462,010 | |
| | | | | | | | | |
Construction Materials 0.0%(b) |
| Boral Ltd. | | | 98,286 | | | | 295,710 | |
| | | | | | | | | |
Containers & Packaging 0.1% |
| Amcor Ltd. | | | 137,252 | | | | 529,650 | |
| | | | | | | | | |
Distributors 0.0% |
| Metcash Ltd. | | | 117,058 | | | | 315,826 | |
| | | | | | | | | |
Diversified Financial Services 0.1% |
| ASX Ltd. | | | 28,968 | | | | 581,461 | |
| Babcock & Brown Ltd.(b) | | | 51,487 | | | | 44,975 | |
| | | | | | | | | |
| | | | | | | | 626,436 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.2% |
| Telstra Corp. Ltd. | | | 680,772 | | | | 1,873,195 | |
| | | | | | | | | |
Energy Equipment & Services 0.0% |
| WorleyParsons Ltd. | | | 22,720 | | | | 228,169 | |
| | | | | | | | | |
Food & Staples Retailing 0.4% |
| Wesfarmers Ltd. | | | 103,466 | | | | 1,486,414 | |
| Wesfarmers Ltd. — PPS | | | 26,759 | | | | 386,124 | |
| Woolworths Ltd. | | | 195,495 | | | | 3,642,991 | |
| | | | | | | | | |
| | | | | | | | 5,515,529 | |
| | | | | | | | | |
Food Products 0.0% |
| Goodman Fielder Ltd. | | | 150,467 | | | | 166,920 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.0% |
| Cochlear Ltd. | | | 10,363 | | | | 393,036 | |
| | | | | | | | | |
Health Care Providers & Services 0.0% |
| Sonic Healthcare Ltd. | | | 44,085 | | | | 402,728 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.1% |
| Aristocrat Leisure Ltd. | | | 58,082 | | | | 146,215 | |
| Crown Ltd. | | | 85,388 | | | | 382,005 | |
| TABCORP Holdings Ltd. | | | 79,614 | | | | 364,864 | |
| Tatts Group Ltd. | | | 150,131 | | | | 251,324 | |
| | | | | | | | | |
| | | | | | | | 1,144,408 | |
| | | | | | | | | |
Industrial Conglomerate 0.0% |
| CSR Ltd. | | | 202,298 | | | | 293,935 | |
| | | | | | | | | |
Information Technology Services 0.0% |
| Computershare Ltd. | | | 70,608 | | | | 399,034 | |
| | | | | | | | | |
Insurance 0.4% |
| AMP Ltd. | | | 300,989 | | | | 1,094,450 | |
| AXA Asia Pacific Holdings Ltd. | | | 165,197 | | | | 487,161 | |
| Insurance Australia Group Ltd. | | | 302,788 | | | | 766,714 | |
| QBE Insurance Group Ltd. | | | 142,626 | | | | 2,432,435 | |
| Suncorp-Metway Ltd. | | | 153,383 | | | | 825,381 | |
| | | | | | | | | |
| | | | | | | | 5,606,141 | |
| | | | | | | | | |
Media 0.0%(b) |
| Fairfax Media Ltd. | | | 218,979 | | | | 280,630 | |
| | | | | | | | | |
Metals & Mining 1.2% |
| Alumina Ltd. | | | 206,983 | | | | 294,456 | |
| BHP Billiton Ltd. | | | 539,014 | | | | 10,351,262 | |
| BlueScope Steel Ltd. | | | 129,394 | | | | 380,429 | |
| Fortescue Metals Group Ltd.*(b) | | | 210,671 | | | | 416,507 | |
| Newcrest Mining Ltd. | | | 72,815 | | | | 1,000,576 | |
| OneSteel Ltd. | | | 125,650 | | | | 288,563 | |
| OZ Minerals Ltd. | | | 475,393 | | | | 298,538 | |
| Rio Tinto Ltd. | | | 45,902 | | | | 2,373,755 | |
| Sims Group Ltd. | | | 21,463 | | | | 205,746 | |
| | | | | | | | | |
| | | | | | | | 15,609,832 | |
| | | | | | | | | |
40 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
AUSTRALIA (continued) |
| | | | | | | | | |
| | | | | | | | | |
Multi-Utility 0.1% |
| AGL Energy Ltd. | | | 63,008 | | | $ | 591,463 | |
| | | | | | | | | |
Multiline Retail 0.0% |
| Harvey Norman Holdings Ltd. | | | 57,604 | | | | 99,392 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.4% |
| Caltex Australia Ltd.(b) | | | 14,655 | | | | 92,267 | |
| Origin Energy Ltd. | | | 141,089 | | | | 1,479,089 | |
| Paladin Energy Ltd.*(b) | | | 108,652 | | | | 166,399 | |
| Santos Ltd. | | | 95,530 | | | | 864,593 | |
| Woodside Petroleum Ltd. | | | 77,472 | | | | 2,188,164 | |
| | | | | | | | | |
| | | | | | | | 4,790,512 | |
| | | | | | | | | |
Real Estate Investment Trusts 0.4% |
| CFS Retail Property Trust(b) | | | 233,837 | | | | 314,425 | |
| Dexus Property Group | | | 461,432 | | | | 229,866 | |
| Goodman Group | | | 237,574 | | | | 149,835 | |
| GPT Group | | | 374,161 | | | | 187,176 | |
| Macquarie Office Trust | | | 190,927 | | | | 36,711 | |
| Mirvac Group | | | 197,476 | | | | 129,216 | |
| Stockland | | | 237,872 | | | | 639,418 | |
| Westfield Group | | | 281,677 | | | | 3,109,888 | |
| | | | | | | | | |
| | | | | | | | 4,796,535 | |
| | | | | | | | | |
Real Estate Management & Development 0.0% |
| Lend Lease Corp. Ltd. | | | 66,298 | | | | 306,663 | |
| | | | | | | | | |
Road & Rail 0.0% |
| Asciano Group | | | 81,314 | | | | 113,554 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.0%(b) |
| Billabong International Ltd. | | | 29,397 | | | | 234,915 | |
| | | | | | | | | |
Transportation Infrastructure 0.1% |
| Macquarie Airports | | | 103,492 | | | | 147,129 | |
| Macquarie Infrastructure Group | | | 385,301 | | | | 504,840 | |
| Transurban Group | | | 182,856 | | | | 656,290 | |
| | | | | | | | | |
| | | | | | | | 1,308,259 | |
| | | | | | | | | |
| | | | | | | | 74,671,670 | |
| | | | | | | | | |
| |
| |
AUSTRIA 0.4%(a) |
Building Products 0.0% |
| Wienerberger AG | | | 11,282 | | | | 187,274 | |
| | | | | | | | | |
Commercial Banks 0.1%(b) |
| Erste Group Bank AG | | | 29,243 | | | | 779,529 | |
| Raiffeisen International Bank Holding AG | | | 8,359 | | | | 263,006 | |
| | | | | | | | | |
| | | | | | | | 1,042,535 | |
| | | | | | | | | |
Construction & Engineering 0.0% |
| Strabag SE | | | 7,961 | | | | 155,842 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1% |
| Telekom Austria AG | | | 62,249 | | | | 764,772 | |
| | | | | | | | | |
Electric Utility 0.1% |
| Verbund — Oesterreichische Elektrizitaetswirtschafts AG, Class A | | | 14,094 | | | | 666,663 | |
| | | | | | | | | |
Insurance 0.0%(b) |
| Vienna Insurance Group | | | 4,535 | | | | 122,393 | |
| | | | | | | | | |
Machinery 0.0%(b) |
| Andritz AG | | | 8,310 | | | | 236,626 | |
| | | | | | | | | |
Metals & Mining 0.0% |
| Voestalpine AG | | | 19,205 | | | | 468,634 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.1% |
| OMV AG | | | 28,493 | | | | 911,954 | |
| | | | | | | | | |
Real Estate Management & Development 0.0%(b) |
| Immoeast AG* | | | 56,229 | | | | 67,784 | |
| Immofinanz Immobilien Anlagen AG | | | 74,545 | | | | 83,139 | |
| | | | | | | | | |
| | | | | | | | 150,923 | |
| | | | | | | | | |
| | | | | | | | 4,707,616 | |
| | | | | | | | | |
| |
| |
BELGIUM 0.7%(a) |
Beverages 0.1% |
| InBev NV | | | 29,996 | | | | 1,209,695 | |
| | | | | | | | | |
Chemicals 0.1%(b) |
| Solvay SA | | | 9,723 | | | | 904,276 | |
| Umicore | | | 22,740 | | | | 406,620 | |
| | | | | | | | | |
| | | | | | | | 1,310,896 | |
| | | | | | | | | |
Commercial Banks 0.1%(b) |
| Dexia SA | | | 83,960 | | | | 446,517 | |
| KBC Groep NV | | | 26,175 | | | | 1,125,194 | |
| | | | | | | | | |
| | | | | | | | 1,571,711 | |
| | | | | | | | | |
Diversified Financial Services 0.2% |
| Fortis(b) | | | 365,866 | | | | 423,834 | |
| Groupe Bruxelles Lambert SA(b) | | | 12,842 | | | | 943,300 | |
| KBC Ancora | | | 4,817 | | | | 143,175 | |
| Nationale A Portefeuille | | | 6,148 | | | | 332,465 | |
| | | | | | | | | |
| | | | | | | | 1,842,774 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1%(b) |
| Belgacom SA | | | 29,963 | | | | 1,025,054 | |
| | | | | | | | | |
Food & Staples Retailing 0.1% |
| Colruyt SA(b) | | | 2,362 | | | | 530,813 | |
| Delhaize Group | | | 16,437 | | | | 924,287 | |
| | | | | | | | | |
| | | | | | | | 1,455,100 | |
| | | | | | | | | |
Pharmaceuticals 0.0%(b) |
| UCB SA | | | 18,967 | | | | 482,725 | |
| | | | | | | | | |
2008 Annual Report 41
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
BELGIUM (continued) |
| | | | | | | | | |
| | | | | | | | | |
Wireless Telecommunication Services 0.0% |
| Mobistar SA | | | 3,848 | | | $ | 255,324 | |
| | | | | | | | | |
| | | | | | | | 9,153,279 | |
| | | | | | | | | |
| |
| |
BERMUDA 0.1%(a) (b) |
Energy Equipment & Services 0.1% |
| Seadrill Ltd. | | | 45,659 | | | | 439,885 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.0% |
| Frontline Ltd. | | | 8,500 | | | | 264,533 | |
| | | | | | | | | |
| | | | | | | | 704,418 | |
| | | | | | | | | |
| |
| |
CHINA 0.0%(a) |
Communications Equipment 0.0% |
| Foxconn International Holdings Ltd.* | | | 308,604 | | | | 113,557 | |
| | | | | | | | | |
| |
| |
DENMARK 0.9%(a) |
Beverages 0.1% |
| Carlsberg AS, Class B | | | 11,682 | | | | 459,994 | |
| | | | | | | | | |
Building Products 0.0% |
| Rockwool International AS, Class B | | | 681 | | | | 45,799 | |
| | | | | | | | | |
Chemicals 0.1%(b) |
| Novozymes AS, Class B | | | 6,405 | | | | 452,257 | |
| | | | | | | | | |
Commercial Banks 0.1% |
| Danske Bank AS | | | 74,620 | | | | 1,104,841 | |
| Jyske Bank AS* | | | 7,575 | | | | 223,787 | |
| Sydbank AS(b) | | | 13,868 | | | | 215,583 | |
| | | | | | | | | |
| | | | | | | | 1,544,211 | |
| | | | | | | | | |
Construction & Engineering 0.0%(b) |
| FLSmidth & Co. AS | | | 8,763 | | | | 326,911 | |
| | | | | | | | | |
Electrical Equipment 0.1% |
| Vestas Wind Systems AS* | | | 30,503 | | | | 1,249,651 | |
| | | | | | | | | |
Food Products 0.0%(b) |
| Danisco AS | | | 9,657 | | | | 418,466 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.0% |
| Coloplast AS, Class B | | | 3,108 | | | | 225,391 | |
| William Demant Holding*(b) | | | 2,534 | | | | 96,972 | |
| | | | | | | | | |
| | | | | | | | 322,363 | |
| | | | | | | | | |
Insurance 0.1% |
| Topdanmark AS* | | | 2,958 | | | | 319,637 | |
| TrygVesta AS(b) | | | 2,935 | | | | 176,514 | |
| | | | | | | | | |
| | | | | | | | 496,151 | |
| | | | | | | | | |
Marine 0.1% |
| A P Moller — Maersk AS, Class A | | | 87 | | | | 507,365 | |
| A P Moller — Maersk AS, Class B | | | 180 | | | | 1,036,104 | |
| | | | | | | | | |
| | | | | | | | 1,543,469 | |
| | | | | | | | | |
Pharmaceuticals 0.3% |
| Novo Nordisk AS, Class B | | | 75,161 | | | | 4,029,661 | |
| | | | | | | | | |
Road & Rail 0.0%(b) |
| DSV AS | | | 36,375 | | | | 437,121 | |
| | | | | | | | | |
| | | | | | | | 11,326,054 | |
| | | | | | | | | |
| |
| |
FINLAND 1.4%(a) |
Auto Components 0.0% |
| Nokian Renkaat OYJ | | | 18,930 | | | | 247,467 | |
| | | | | | | | | |
Communications Equipment 0.7% |
| Nokia OYJ | | | 616,305 | | | | 9,439,603 | |
| | | | | | | | | |
Construction & Engineering 0.0%(b) |
| YIT OYJ | | | 23,528 | | | | 146,498 | |
| | | | | | | | | |
Diversified Financial Services 0.0% |
| Pohjola Bank PLC | | | 12,516 | | | | 168,378 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.0%(b) |
| Elisa OYJ | | | 21,193 | | | | 318,759 | |
| | | | | | | | | |
Electric Utility 0.2% |
| Fortum OYJ | | | 73,172 | | | | 1,798,074 | |
| | | | | | | | | |
Food & Staples Retailing 0.0% |
| Kesko OYJ, Class B | | | 13,136 | | | | 307,455 | |
| | | | | | | | | |
Insurance 0.1% |
| Sampo OYJ, Class A | | | 69,806 | | | | 1,398,732 | |
| | | | | | | | | |
Machinery 0.1% |
| Cargotec Corp., Class B(b) | | | 6,072 | | | | 84,043 | |
| Kone OYJ, Class B | | | 24,288 | | | | 543,414 | |
| Metso OYJ | | | 22,256 | | | | 295,727 | |
| Wartsila OYJ(b) | | | 12,243 | | | | 310,157 | |
| | | | | | | | | |
| | | | | | | | 1,233,341 | |
| | | | | | | | | |
Media 0.0%(b) |
| Sanoma OYJ | | | 8,770 | | | | 134,201 | |
| | | | | | | | | |
Metals & Mining 0.1% |
| Outokumpu OYJ(b) | | | 17,077 | | | | 176,949 | |
| Rautaruukki OYJ | | | 15,996 | | | | 261,027 | |
| | | | | | | | | |
| | | | | | | | 437,976 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.0% |
| Neste Oil OYJ | | | 21,324 | | | | 337,237 | |
| | | | | | | | | |
Paper & Forest Products 0.2% |
| Stora Enso OYJ, Class R | | | 96,548 | | | | 897,738 | |
| UPM-Kymmene OYJ | | | 87,508 | | | | 1,237,250 | |
| | | | | | | | | |
| | | | | | | | 2,134,988 | |
| | | | | | | | | |
Pharmaceuticals 0.0% |
| Orion OYJ, Class B | | | 10,145 | | | | 149,064 | |
| | | | | | | | | |
| | | | | | | | 18,251,773 | |
| | | | | | | | | |
| |
| |
FRANCE 10.0% |
Aerospace & Defense 0.1%(a) |
| Safran SA(b) | | | 26,121 | | | | 331,478 | |
42 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
FRANCE (continued) |
Aerospace & Defense (continued) |
| | | | | | | | | |
| Thales SA | | | 16,544 | | | $ | 663,754 | |
| Zodiac SA | | | 9,030 | | | | 353,047 | |
| | | | | | | | | |
| | | | | | | | 1,348,279 | |
| | | | | | | | | |
Airline 0.0%(a) (b) |
| Air France-KLM | | | 22,108 | | | | 318,489 | |
| | | | | | | | | |
Auto Components 0.1%(a) |
| Compagnie Generale des Etablissements Michelin, Class B | | | 23,502 | | | | 1,209,535 | |
| Valeo SA(b) | | | 15,071 | | | | 262,493 | |
| | | | | | | | | |
| | | | | | | | 1,472,028 | |
| | | | | | | | | |
Automobiles 0.1%(a) |
| Peugeot SA | | | 25,097 | | | | 669,633 | |
| Renault SA | | | 30,043 | | | | 920,647 | |
| | | | | | | | | |
| | | | | | | | 1,590,280 | |
| | | | | | | | | |
Beverages 0.1%(a) (b) |
| Pernod-Ricard SA | | | 26,757 | | | | 1,742,182 | |
| | | | | | | | | |
Building Products 0.1%(a) (b) |
| Compagnie de Saint-Gobain | | | 46,039 | | | | 1,776,296 | |
| | | | | | | | | |
Chemicals 0.3%(a) (b) |
| Air Liquide | | | 39,819 | | | | 3,435,792 | |
| | | | | | | | | |
Commercial Banks 1.3%(a) |
| BNP Paribas | | | 131,479 | | | | 9,491,873 | |
| Credit Agricole SA | | | 144,147 | | | | 2,085,139 | |
| Natixis | | | 157,191 | | | | 348,068 | |
| Societe Generale | | | 75,089 | | | | 4,092,260 | |
| | | | | | | | | |
| | | | | | | | 16,017,340 | |
| | | | | | | | | |
Commercial Services & Supplies 0.1% |
| Bureau Veritas SA(a)(b) | | | 6,265 | | | | 223,351 | |
| Societe BIC SA(a) | | | 2,653 | | | | 140,118 | |
| Suez Environnement SA* | | | 44,261 | | | | 846,097 | |
| | | | | | | | | |
| | | | | | | | 1,209,566 | |
| | | | | | | | | |
Communications Equipment 0.1%(a) |
| Alcatel-Lucent* | | | 376,828 | | | | 972,952 | |
| | | | | | | | | |
Construction & Engineering 0.3%(a) |
| Bouygues SA | | | 39,963 | | | | 1,701,442 | |
| Eiffage SA | | | 5,829 | | | | 223,914 | |
| Vinci SA | | | 66,820 | | | | 2,404,401 | |
| | | | | | | | | |
| | | | | | | | 4,329,757 | |
| | | | | | | | | |
Construction Materials 0.1%(a) |
| Imerys SA | | | 3,868 | | | | 176,080 | |
| Lafarge SA(b) | | | 23,915 | | | | 1,580,782 | |
| | | | | | | | | |
| | | | | | | | 1,756,862 | |
| | | | | | | | | |
Diversified Financial Services 0.0%(a) |
| Eurazeo | | | 3,976 | | | | 239,354 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.6%(a) |
| France Telecom SA | | | 295,209 | | | | 7,443,017 | |
| | | | | | | | | |
Electric Utility 0.2%(a) |
| EDF | | | 32,361 | | | | 1,944,141 | |
| | | | | | | | | |
Electrical Equipment 0.3%(a) |
| Alstom SA | | | 34,307 | | | | 1,700,187 | |
| Legrand SA | | | 14,732 | | | | 245,126 | |
| Schneider Electric SA | | | 35,600 | | | | 2,133,536 | |
| | | | | | | | | |
| | | | | | | | 4,078,849 | |
| | | | | | | | | |
Energy Equipment & Services 0.1%(a) |
| Compagnie Generale de Geophysique-Veritass SA*(b) | | | 22,980 | | | | 371,531 | |
| Technip SA | | | 16,850 | | | | 504,519 | |
| | | | | | | | | |
| | | | | | | | 876,050 | |
| | | | | | | | | |
Food & Staples Retailing 0.4%(a) |
| Carrefour SA | | | 102,445 | | | | 4,327,291 | |
| Casino Guichard Perrachon SA | | | 7,691 | | | | 537,562 | |
| | | | | | | | | |
| | | | | | | | 4,864,853 | |
| | | | | | | | | |
Food Products 0.3%(a) |
| Groupe Danone | | | 70,423 | | | | 3,920,767 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.1%(a) |
| Cie Generale d’Optique Essilor International SA | | | 33,256 | | | | 1,491,623 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.2%(a) |
| Accor SA | | | 31,788 | | | | 1,236,581 | |
| Sodexo | | | 15,200 | | | | 729,738 | |
| | | | | | | | | |
| | | | | | | | 1,966,319 | |
| | | | | | | | | |
Industrial Conglomerate 0.0%(a) (b) |
| Wendel | | | 4,358 | | | | 208,196 | |
| | | | | | | | | |
Information Technology Services 0.1%(a) |
| Atos Origin SA | | | 13,040 | | | | 302,773 | |
| Cap Gemini SA(b) | | | 22,814 | | | | 734,977 | |
| | | | | | | | | |
| | | | | | | | 1,037,750 | |
| | | | | | | | | |
Insurance 0.4%(a) |
| AXA SA | | | 249,592 | | | | 4,767,673 | |
| CNP Assurances | | | 6,231 | | | | 502,024 | |
| SCOR SE | | | 24,530 | | | | 401,844 | |
| | | | | | | | | |
| | | | | | | | 5,671,541 | |
| | | | | | | | | |
Machinery 0.1%(a) |
| Vallourec | | | 8,647 | | | | 967,134 | |
| | | | | | | | | |
Media 0.6%(a) |
| Eutelsat Communications | | | 13,552 | | | | 290,837 | |
| JC Decaux SA(b) | | | 6,800 | | | | 118,153 | |
| Lagardere SCA | | | 19,959 | | | | 793,480 | |
| M6 — Metropole Television | | | 5,476 | | | | 86,232 | |
| PagesJaunes Groupe(b) | | | 28,208 | | | | 267,388 | |
| Publicis Groupe | | | 23,988 | | | | 542,088 | |
2008 Annual Report 43
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
FRANCE (continued) |
Media (continued) |
| | | | | | | | | |
| Societe Television Francaise 1(b) | | | 25,405 | | | $ | 325,690 | |
| Vivendi | | | 188,097 | | | | 4,916,127 | |
| | | | | | | | | |
| | | | | | | | 7,339,995 | |
| | | | | | | | | |
Metals & Mining 0.0%(a) |
| Eramet | | | 822 | | | | 166,589 | |
| | | | | | | | | |
Multi-Utility 0.7%(a) |
| GDF SUEZ | | | 176,598 | | | | 7,860,127 | |
| Veolia Environnement | | | 61,362 | | | | 1,520,476 | |
| | | | | | | | | |
| | | | | | | | 9,380,603 | |
| | | | | | | | | |
Multiline Retail 0.1%(a) |
| PPR | | | 12,484 | | | | 795,520 | |
| | | | | | | | | |
Office Electronics 0.0%(a) |
| Neopost SA | | | 4,251 | | | | 355,864 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 1.5%(a) |
| Total SA | | | 348,620 | | | | 19,176,599 | |
| | | | | | | | | |
Personal Products 0.2%(a) |
| L’Oreal SA | | | 39,424 | | | | 2,985,004 | |
| | | | | | | | | |
Pharmaceuticals 0.8%(a) |
| Sanofi-Aventis SA | | | 169,803 | | | | 10,757,002 | |
| | | | | | | | | |
Real Estate Investment Trusts 0.2%(a) |
| Gecina SA | | | 1,626 | | | | 112,905 | |
| ICADE | | | 3,600 | | | | 215,161 | |
| Klepierre | | | 10,923 | | | | 251,570 | |
| Unibail-Rodamco — Chi — X Europe Exchange | | | 8,882 | | | | 1,332,012 | |
| Unibail-Rodamco — London International Exchange | | | 4,413 | | | | 664,000 | |
| | | | | | | | | |
| | | | | | | | 2,575,648 | |
| | | | | | | | | |
Software 0.0%(a) (b) |
| Dassault Systemes SA | | | 8,524 | | | | 352,896 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.4%(a) |
| Christian Dior SA | | | 8,712 | | | | 527,732 | |
| Hermes International(b) | | | 11,420 | | | | 1,473,792 | |
| LVMH Moet Hennessy Louis Vuitton SA(b) | | | 39,509 | | | | 2,628,786 | |
| | | | | | | | | |
| | | | | | | | 4,630,310 | |
| | | | | | | | | |
Transportation Infrastructure 0.0%(a) (b) |
| Aeroports de Paris | | | 4,976 | | | | 296,138 | |
| | | | | | | | | |
| | | | | | | | 129,491,585 | |
| | | | | | | | | |
| |
| |
GERMANY 8.3% |
Air Freight & Logistics 0.1%(a) |
| Deutsche Post AG | | | 130,713 | | | | 1,431,398 | |
| | | | | | | | | |
Airline 0.1%(a) |
| Deutsche Lufthansa AG | | | 37,118 | | | | 516,379 | |
| | | | | | | | | |
Auto Components 0.2%(b) |
| Continental AG* | | | 24,593 | | | | 1,818,117 | |
| | | | | | | | | |
Automobiles 1.6%(a) |
| Bayerische Motoren Werke AG | | | 54,311 | | | | 1,378,804 | |
| Daimler AG | | | 140,243 | | | | 4,817,529 | |
| Volkswagen AG(b) | | | 23,260 | | | | 14,077,083 | |
| | | | | | | | | |
| | | | | | | | 20,273,416 | |
| | | | | | | | | |
Capital Markets 0.3%(a) |
| Deutsche Bank AG | | | 87,535 | | | | 3,326,304 | |
| | | | | | | | | |
Chemicals 0.6%(a) |
| BASF SE | | | 152,840 | | | | 5,130,381 | |
| K+S AG(b) | | | 24,422 | | | | 949,601 | |
| Linde AG | | | 22,013 | | | | 1,851,402 | |
| Wacker Chemie AG | | | 2,466 | | | | 268,298 | |
| | | | | | | | | |
| | | | | | | | 8,199,682 | |
| | | | | | | | | |
Commercial Banks 0.1%(a) |
| Commerzbank AG | | | 112,742 | | | | 1,212,617 | |
| Deutsche Postbank AG(b) | | | 11,231 | | | | 228,121 | |
| Hypo Real Estate Holding AG(b) | | | 22,544 | | | | 143,966 | |
| | | | | | | | | |
| | | | | | | | 1,584,704 | |
| | | | | | | | | |
Construction & Engineering 0.0%(a) |
| Bilfinger Berger AG | | | 4,681 | | | | 211,744 | |
| Hochtief AG | | | 7,975 | | | | 247,248 | |
| | | | | | | | | |
| | | | | | | | 458,992 | |
| | | | | | | | | |
Construction Materials 0.0%(a) (b) |
| HeidelbergCement AG | | | 3,959 | | | | 288,671 | |
| | | | | | | | | |
Diversified Financial Services 0.2%(a) (b) |
| Deutsche Boerse AG | | | 31,525 | | | | 2,477,484 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.5%(a) (b) |
| Deutsche Telekom AG | | | 447,256 | | | | 6,640,294 | |
| | | | | | | | | |
Electric Utility 0.9%(a) (b) |
| E. ON AG | | | 308,067 | | | | 11,788,636 | |
| | | | | | | | | |
Electrical Equipment 0.1%(a) (b) |
| Q-Cells AG* | | | 9,885 | | | | 397,793 | |
| Solarworld AG | | | 15,142 | | | | 377,628 | |
| | | | | | | | | |
| | | | | | | | 775,421 | |
| | | | | | | | | |
Food & Staples Retailing 0.1%(a) |
| Metro AG | | | 18,782 | | | | 596,918 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.0%(a) |
| Fresenius SE | | | 4,202 | | | | 249,024 | |
| | | | | | | | | |
Health Care Providers & Services 0.1%(a) |
| Celesio AG | | | 12,201 | | | | 358,170 | |
| Fresenius Medical Care AG & Co. KGaA | | | 31,404 | | | | 1,404,534 | |
| | | | | | | | | |
| | | | | | | | 1,762,704 | |
| | | | | | | | | |
44 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
GERMANY (continued) |
| | | | | | | | | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.0%(a) (b) |
| TUI AG | | | 36,634 | | | $ | 441,011 | |
| | | | | | | | | |
Household Products 0.0%(a) |
| Henkel AG & Co. KGaA | | | 20,725 | | | | 505,417 | |
| | | | | | | | | |
Industrial Conglomerates 0.7%(a) |
| Rheinmetall AG | | | 4,512 | | | | 137,492 | |
| Siemens AG(b) | | | 140,432 | | | | 8,434,974 | |
| | | | | | | | | |
| | | | | | | | 8,572,466 | |
| | | | | | | | | |
Insurance 0.8%(a) |
| Allianz SE | | | 73,226 | | | | 5,509,584 | |
| Hannover Rueckversicherung AG | | | 9,463 | | | | 234,713 | |
| Muenchener Rueckversicherungs AG | | | 33,423 | | | | 4,427,007 | |
| | | | | | | | | |
| | | | | | | | 10,171,304 | |
| | | | | | | | | |
Internet Software & Services 0.0%(a) (b) |
| United Internet AG | | | 19,578 | | | | 175,678 | |
| | | | | | | | | |
Machinery 0.1%(a) |
| GEA Group AG | | | 23,555 | | | | 339,409 | |
| MAN AG | | | 17,120 | | | | 831,346 | |
| | | | | | | | | |
| | | | | | | | 1,170,755 | |
| | | | | | | | | |
Metals & Mining 0.1%(a) |
| Salzgitter AG | | | 6,616 | | | | 435,031 | |
| ThyssenKrupp AG(b) | | | 58,846 | | | | 1,102,570 | |
| | | | | | | | | |
| | | | | | | | 1,537,601 | |
| | | | | | | | | |
Multi-Utility 0.5%(a) |
| RWE AG | | | 71,690 | | | | 5,960,898 | |
| | | | | | | | | |
Multiline Retail 0.0%(a) (b) |
| Arcandor AG* | | | 16,055 | | | | 38,733 | |
| | | | | | | | | |
Personal Products 0.1%(a) |
| Beiersdorf AG | | | 13,321 | | | | 717,058 | |
| | | | | | | | | |
Pharmaceuticals 0.6%(a) |
| Bayer AG | | | 123,263 | | | | 6,893,727 | |
| Merck KGAA | | | 10,910 | | | | 963,923 | |
| | | | | | | | | |
| | | | | | | | 7,857,650 | |
| | | | | | | | | |
Real Estate Management & Development 0.0%(a) |
| IVG Immobilien AG | | | 12,612 | | | | 83,671 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.0%(a) (b) |
| Infineon Technologies AG* | | | 122,766 | | | | 384,002 | |
| | | | | | | | | |
Software 0.4%(a) |
| SAP AG | | | 141,582 | | | | 4,996,787 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.1%(a) |
| Adidas AG(b) | | | 32,835 | | | | 1,124,281 | |
| Puma AG Rudolf Dassler Sport | | | 1,380 | | | | 230,875 | |
| | | | | | | | | |
| | | | | | | | 1,355,156 | |
| | | | | | | | | |
Transportation Infrastructure 0.0%(a) |
| Fraport AG(b) | | | 5,672 | | | | 181,005 | |
| Hamburger Hafen und Logistik AG | | | 3,912 | | | | 131,017 | |
| | | | | | | | | |
| | | | | | | | 312,022 | |
| | | | | | | | | |
| | | | | | | | 106,468,353 | |
| | | | | | | | | |
| |
| |
GREECE 0.5%(a) |
Beverages 0.0% |
| Coca Cola Hellenic Bottling Co. SA | | | 24,575 | | | | 342,918 | |
| | | | | | | | | |
Capital Markets 0.0% |
| Marfin Investment Group SA | | | 106,920 | | | | 470,623 | |
| | | | | | | | | |
Commercial Banks 0.3% |
| Alpha Bank AE | | | 62,600 | | | | 913,851 | |
| EFG Eurobank Ergasias SA | | | 48,575 | | | | 527,934 | |
| National Bank of Greece SA | | | 80,464 | | | | 1,767,454 | |
| Piraeus Bank SA | | | 55,042 | | | | 698,162 | |
| | | | | | | | | |
| | | | | | | | 3,907,401 | |
| | | | | | | | | |
Construction Materials 0.0% |
| Titan Cement Co. SA | | | 7,253 | | | | 123,856 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1% |
| Hellenic Telecommunications Organization SA | | | 49,113 | | | | 693,102 | |
| | | | | | | | | |
Electric Utility 0.0% |
| Public Power Corp. SA | | | 20,757 | | | | 256,634 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.1% |
| OPAP SA | | | 38,627 | | | | 843,312 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.0% |
| Hellenic Petroleum SA | | | 12,688 | | | | 105,102 | |
| | | | | | | | | |
| | | | | | | | 6,742,948 | |
| | | | | | | | | |
| |
| |
HONG KONG 2.0%(a) |
Airline 0.0%(b) |
| Cathay Pacific Airways Ltd. | | | 171,000 | | | | 208,680 | |
| | | | | | | | | |
Commercial Banks 0.3% |
| Bank of East Asia Ltd. | | | 230,300 | | | | 464,573 | |
| BOC Hong Kong Holdings Ltd. | | | 600,600 | | | | 687,667 | |
| CITIC International Financial Holdings Ltd.* | | | 399,000 | | | | 229,624 | |
| Hang Seng Bank Ltd. | | | 124,200 | | | | 1,549,754 | |
| Wing Hang Bank Ltd. | | | 29,000 | | | | 136,052 | |
| Wing Lung Bank(b) | | | 16,200 | | | | 327,144 | |
| | | | | | | | | |
| | | | | | | | 3,394,814 | |
| | | | | | | | | |
Distributors 0.1% |
| Li & Fung Ltd. | | | 363,600 | | | | 729,774 | |
| | | | | | | | | |
2008 Annual Report 45
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
HONG KONG (continued) |
| | | | | | | | | |
| | | | | | | | | |
Diversified Financial Services 0.1%(b) |
| Hong Kong Exchanges and Clearing Ltd. | | | 165,500 | | | $ | 1,678,360 | |
| | | | | | | | | |
Diversified Minerals 0.0%(b) |
| Mongolia Energy Corp. Ltd.* | | | 570,000 | | | | 244,508 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.0% |
| PCCW Ltd. | | | 531,200 | | | | 198,777 | |
| | | | | | | | | |
Electric Utilities 0.3% |
| Cheung Kong Infrastructure Holdings Ltd. | | | 55,500 | | | | 203,300 | |
| CLP Holdings Ltd. | | | 332,500 | | | | 2,242,442 | |
| HongKong Electric Holdings | | | 235,800 | | | | 1,270,976 | |
| | | | | | | | | |
| | | | | | | | 3,716,718 | |
| | | | | | | | | |
Electronic Equipment & Instruments 0.0% |
| Kingboard Chemical Holdings Ltd. | | | 77,048 | | | | 153,809 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.0%(b) |
| Genting International PLC* | | | 507,276 | | | | 125,128 | |
| Shangri-La Asia Ltd. | | | 184,000 | | | | 260,521 | |
| | | | | | | | | |
| | | | | | | | 385,649 | |
| | | | | | | | | |
Industrial Conglomerates 0.2% |
| Hutchison Whampoa Ltd. | | | 346,500 | | | | 1,872,501 | |
| NWS Holdings Ltd. | | | 125,000 | | | | 130,489 | |
| | | | | | | | | |
| | | | | | | | 2,002,990 | |
| | | | | | | | | |
Marine 0.0% |
| Orient Overseas International Ltd. | | | 34,438 | | | | 61,499 | |
| Pacific Basin Shipping Ltd. | | | 279,615 | | | | 149,724 | |
| Shun Tak Holdings Ltd. | | | 122,000 | | | | 24,317 | |
| | | | | | | | | |
| | | | | | | | 235,540 | |
| | | | | | | | | |
Media 0.0% |
| Television Broadcasts Ltd. | | | 25,000 | | | | 69,528 | |
| | | | | | | | | |
Multiline Retail 0.0% |
| Lifestyle International Holdings Ltd. | | | 69,193 | | | | 46,188 | |
| | | | | | | | | |
Natural Gas Utility 0.1% |
| Hong Kong & China Gas Co. Ltd. | | | 689,336 | | | | 1,214,500 | |
| | | | | | | | | |
Paper & Forest Products 0.0% |
| Lee & Man Paper Manufacturing Ltd. | | | 36,000 | | | | 11,769 | |
| | | | | | | | | |
Real Estate Investment Trusts 0.1% |
| Link REIT (The) | | | 390,051 | | | | 697,440 | |
| | | | | | | | | |
Real Estate Management & Development 0.7% |
| Cheung Kong Holdings Ltd. | | | 226,000 | | | | 2,170,015 | |
| Chinese Estates Holdings Ltd. | | | 176,000 | | | | 135,229 | |
| Hang Lung Group Ltd. | | | 138,000 | | | | 444,095 | |
| Hang Lung Properties Ltd. | | | 376,000 | | | | 918,783 | |
| Henderson Land Development Co. Ltd. | | | 178,800 | | | | 646,632 | |
| Hopewell Holdings | | | 75,569 | | | | 234,958 | |
| Hysan Development Co. Ltd. | | | 59,673 | | | | 93,574 | |
| Kerry Properties Ltd.(b) | | | 91,000 | | | | 228,603 | |
| New World Development Ltd. | | | 434,679 | | | | 361,853 | |
| Sino Land Co.(b) | | | 304,000 | | | | 267,279 | |
| Sun Hung Kai Properties Ltd. | | | 228,700 | | | | 2,003,729 | |
| Swire Pacific Ltd., Class A | | | 145,500 | | | | 1,024,751 | |
| Wharf Holdings Ltd. | | | 208,337 | | | | 415,692 | |
| Wheelock & Co. Ltd. | | | 142,000 | | | | 212,730 | |
| | | | | | | | | |
| | | | | | | | 9,157,923 | |
| | | | | | | | | |
Road & Rail 0.0% |
| MTR Corp. | | | 200,714 | | | | 444,783 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.0%(b) |
| ASM Pacific Technology Ltd. | | | 27,300 | | | | 91,210 | |
| | | | | | | | | |
Specialty Retail 0.1% |
| Esprit Holdings Ltd. | | | 171,700 | | | | 975,648 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.0%(b) |
| C C Land Holdings Ltd. | | | 257,443 | | | | 46,763 | |
| Yue Yuen Industrial Holdings Ltd. | | | 75,000 | | | | 150,015 | |
| | | | | | | | | |
| | | | | | | | 196,778 | |
| | | | | | | | | |
Trading Companies & Distributors 0.0%(b) |
| Noble Group Ltd. | | | 231,363 | | | | 168,475 | |
| | | | | | | | | |
Transportation Infrastructure 0.0%(b) |
| Hong Kong Aircraft Co. Ltd. | | | 6,800 | | | | 53,601 | |
| | | | | | | | | |
Wireless Telecommunication Services 0.0% |
| Hutchison Telecommunications International Ltd.* | | | 212,642 | | | | 229,735 | |
| | | | | | | | | |
| | | | | | | | 26,307,197 | |
| | | | | | | | | |
| |
| |
IRELAND 0.5% |
Airline 0.0%(a) |
| Ryanair Holdings PLC* | | | 42,663 | | | | 148,677 | |
| | | | | | | | | |
Commercial Banks 0.1% |
| Allied Irish Banking PLC(a) | | | 144,191 | | | | 767,966 | |
| Anglo Irish Bank Corp. PLC(a) | | | 122,522 | | | | 393,217 | |
| Bank of Ireland Group | | | 173,442 | | | | 524,237 | |
| | | | | | | | | |
| | | | | | | | 1,685,420 | |
| | | | | | | | | |
Commercial Services & Supplies 0.1%(a) |
| Experian PLC | | | 163,867 | | | | 903,532 | |
| | | | | | | | | |
Construction Materials 0.2%(a) |
| CRH PLC | | | 89,496 | | | | 1,966,177 | |
| | | | | | | | | |
46 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
IRELAND (continued) |
| | | | | | | | | |
| | | | | | | | | |
Food Products 0.0%(a) |
| Kerry Group PLC, Class A | | | 19,740 | | | $ | 439,829 | |
| | | | | | | | | |
Insurance 0.0%(a) |
| Irish Life & Permanent PLC | | | 43,713 | | | | 149,511 | |
| | | | | | | | | |
Pharmaceuticals 0.1%(a) |
| Elan Corp. PLC* | | | 76,306 | | | | 575,640 | |
| | | | | | | | | |
| | | | | | | | 5,868,786 | |
| | | | | | | | | |
| |
| |
ITALY 3.5%(a) |
Aerospace & Defense 0.0% |
| Finmeccanica SpA | | | 48,247 | | | | 598,301 | |
| | | | | | | | | |
Auto Components 0.0%(b) |
| Pirelli & C SpA | | | 582,934 | | | | 205,507 | |
| | | | | | | | | |
Automobiles 0.1% |
| Fiat SpA | | | 115,862 | | | | 919,247 | |
| | | | | | | | | |
Capital Markets 0.1%(b) |
| Mediobanca SpA | | | 80,180 | | | | 915,293 | |
| | | | | | | | | |
Commercial Banks 1.1% |
| Banca Carige SpA(b) | | | 109,474 | | | | 234,005 | |
| Banca Monte dei Paschi di Siena SpA | | | 370,697 | | | | 719,614 | |
| Banca Popolare di Milano Scarl | | | 73,951 | | | | 432,751 | |
| Banco Popolare SC | | | 103,761 | | | | 1,294,265 | |
| Intesa Sanpaolo SpA | | | 1,235,190 | | | | 4,520,146 | |
| Intesa Sanpaolo SpA — RSP | | | 125,432 | | | | 372,256 | |
| UniCredit SpA(b) | | | 1,821,512 | | | | 4,458,591 | |
| Unione di Banche Italiane SCPA(b) | | | 102,976 | | | | 1,737,019 | |
| | | | | | | | | |
| | | | | | | | 13,768,647 | |
| | | | | | | | | |
Construction Materials 0.0% |
| Italcementi SpA(b) | | | 5,588 | | | | 65,122 | |
| Italcementi SpA — RSP | | | 15,698 | | | | 109,222 | |
| | | | | | | | | |
| | | | | | | | 174,344 | |
| | | | | | | | | |
Diversified Financial Services 0.0%(b) |
| IFIL — Investments SpA | | | 48,227 | | | | 149,500 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.2% |
| Telecom Italia SpA | | | 1,614,578 | | | | 1,854,561 | |
| Telecom Italia SpA — RSP | | | 965,007 | | | | 811,984 | |
| | | | | | | | | |
| | | | | | | | 2,666,545 | |
| | | | | | | | | |
Electric Utilities 0.4% |
| Enel SpA(b) | | | 696,789 | | | | 4,661,165 | |
| Terna Rete Elettrica Nazionale SpA | | | 223,058 | | | | 719,309 | |
| | | | | | | | | |
| | | | | | | | 5,380,474 | |
| | | | | | | | | |
Electrical Equipment 0.0% |
| Prysmian SpA | | | 17,361 | | | | 210,583 | |
| | | | | | | | | |
Energy Equipment & Services 0.1% |
| Saipem SpA | | | 43,183 | | | | 811,576 | |
| | | | | | | | | |
Food Products 0.0%(b) |
| Parmalat SpA | | | 272,112 | | | | 477,713 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.0% |
| Autogrill SpA | | | 25,378 | | | | 202,785 | |
| Lottomatica SpA | | | 7,956 | | | | 185,735 | |
| | | | | | | | | |
| | | | | | | | 388,520 | |
| | | | | | | | | |
Insurance 0.4% |
| Alleanza Assicurazioni SpA | | | 80,138 | | | | 534,182 | |
| Assicurazioni Generali SpA | | | 169,724 | | | | 4,285,695 | |
| Fondiaria-Sai SpA | | | 14,812 | | | | 278,238 | |
| Mediolanum SpA(b) | | | 41,088 | | | | 161,089 | |
| Unipol Gruppo Finanziario SpA | | | 99,995 | | | | 177,389 | |
| | | | | | | | | |
| | | | | | | | 5,436,593 | |
| | | | | | | | | |
Media 0.1%(b) |
| Mediaset SpA | | | 125,290 | | | | 680,621 | |
| | | | | | | | | |
Multi-Utility 0.0% |
| A2A SpA | | | 198,697 | | | | 362,108 | |
| | | | | | | | | |
Natural Gas Utility 0.1% |
| Snam Rete Gas SpA | | | 126,797 | | | | 641,792 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.8% |
| ENI SpA | | | 419,738 | | | | 10,017,227 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.0%(b) |
| Bulgari SpA | | | 23,800 | | | | 177,980 | |
| Luxottica Group SpA | | | 18,896 | | | | 381,826 | |
| | | | | | | | | |
| | | | | | | | 559,806 | |
| | | | | | | | | |
Transportation Infrastructure 0.1% |
| Atlantia SpA | | | 45,677 | | | | 835,973 | |
| | | | | | | | | |
| | | | | | | | 45,200,370 | |
| | | | | | | | | |
| |
| |
JAPAN 23.2%(a) |
Air Freight & Logistics 0.1% |
| Yamato Holdings Co. Ltd. | | | 71,000 | | | | 784,529 | |
| | | | | | | | | |
Airlines 0.1%(b) |
| All Nippon Airways Co. Ltd. | | | 75,000 | | | | 286,483 | |
| Japan Airlines Corp.* | | | 179,000 | | | | 407,407 | |
| | | | | | | | | |
| | | | | | | | 693,890 | |
| | | | | | | | | |
Auto Components 0.5% |
| Aisin Seiki Co. Ltd. | | | 30,700 | | | | 543,362 | |
| Bridgestone Corp. | | | 97,800 | | | | 1,710,184 | |
| Denso Corp. | | | 78,000 | | | | 1,520,574 | |
| NGK Spark Plug Co. Ltd.(b) | | | 36,000 | | | | 339,430 | |
| NHK Spring Co. Ltd. | | | 38,000 | | | | 153,179 | |
| NOK Corp. | | | 14,600 | | | | 139,035 | |
| Stanley Electric Co. Ltd. | | | 23,500 | | | | 295,513 | |
| Sumitomo Rubber Industries, Inc. | | | 35,400 | | | | 312,347 | |
2008 Annual Report 47
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
JAPAN (continued) |
Auto Components (continued) |
| | | | | | | | | |
| Tokai Rika Co. Ltd.(b) | | | 4,700 | | | $ | 47,554 | |
| Toyoda Gosei Co. Ltd. | | | 8,200 | | | | 115,148 | |
| Toyota Boshoku Corp. | | | 8,300 | | | | 74,050 | |
| Toyota Industries Corp. | | | 27,900 | | | | 629,996 | |
| | | | | | | | | |
| | | | | | | | 5,880,372 | |
| | | | | | | | | |
Automobiles 2.2% |
| Daihatsu Motor Co. Ltd.(b) | | | 29,000 | | | | 214,757 | |
| Fuji Heavy Industries Ltd.(b) | | | 100,000 | | | | 351,838 | |
| Honda Motor Co. Ltd. | | | 264,900 | | | | 6,588,181 | |
| Isuzu Motors Ltd. | | | 205,000 | | | | 360,245 | |
| Mazda Motor Corp. | | | 148,000 | | | | 328,304 | |
| Mitsubishi Motors Corp.*(b) | | | 565,000 | | | | 781,255 | |
| Nissan Motor Co. Ltd. | | | 362,800 | | | | 1,802,175 | |
| Suzuki Motor Corp. | | | 56,500 | | | | 829,267 | |
| Toyota Motor Corp. | | | 443,400 | | | | 17,318,694 | |
| Yamaha Motor Co. Ltd. | | | 37,700 | | | | 416,894 | |
| | | | | | | | | |
| | | | | | | | 28,991,610 | |
| | | | | | | | | |
Beverages 0.2% |
| Asahi Breweries Ltd. | | | 61,900 | | | | 1,021,942 | |
Coca-Cola West Holdings Co. Ltd.(b) | | | 10,800 | | | | 216,648 | |
| Ito En Ltd.(b) | | | 9,700 | | | | 154,527 | |
| Kirin Holdings Co. Ltd. | | | 124,000 | | | | 1,371,744 | |
| Sapporo Holdings Ltd.(b) | | | 52,000 | | | | 286,140 | |
| | | | | | | | | |
| | | | | | | | 3,051,001 | |
| | | | | | | | | |
Building Products 0.2% |
| Asahi Glass Co. Ltd. | | | 161,600 | | | | 1,015,664 | |
| Daikin Industries Ltd. | | | 42,400 | | | | 953,874 | |
| JS Group Corp. | | | 37,000 | | | | 479,211 | |
| Nippon Sheet Glass Co. Ltd.(b) | | | 96,000 | | | | 314,022 | |
| TOTO Ltd.(b) | | | 57,200 | | | | 399,208 | |
| | | | | | | | | |
| | | | | | | | 3,161,979 | |
| | | | | | | | | |
Capital Markets 0.3% |
| Daiwa Securities Group, Inc. | | | 213,500 | | | | 1,207,273 | |
| Jafco Co. Ltd. | | | 3,700 | | | | 99,615 | |
| Nomura Holdings, Inc. | | | 283,000 | | | | 2,681,781 | |
| SBI Holdings, Inc. | | | 3,210 | | | | 385,281 | |
| Shinko Securities Co. Ltd. | | | 51,700 | | | | 128,229 | |
| | | | | | | | | |
| | | | | | | | 4,502,179 | |
| | | | | | | | | |
Chemicals 0.9% |
| Asahi Kasei Corp. | | | 213,200 | | | | 802,096 | |
| Daicel Chemical Industries Ltd. | | | 23,000 | | | | 82,946 | |
| Denki Kagaku Kogyo KK | | | 41,000 | | | | 90,852 | |
| DIC Corp. | | | 69,000 | | | | 111,552 | |
| JSR Corp. | | | 31,300 | | | | 353,131 | |
| Kaneka Corp. | | | 43,500 | | | | 203,036 | |
| Kansai Paint Co. Ltd. | | | 30,000 | | | | 167,468 | |
| Kuraray Co. Ltd. | | | 63,500 | | | | 486,046 | |
| Mitsubishi Chemical Holdings Corp. | | | 203,000 | | | | 820,829 | |
| Mitsubishi Gas Chemical Co., Inc. | | | 48,000 | | | | 176,661 | |
| Mitsubishi Rayon Co. Ltd. | | | 120,100 | | | | 257,878 | |
| Mitsui Chemicals, Inc. | | | 116,100 | | | | 405,444 | |
| Nissan Chemical Industries Ltd. | | | 34,000 | | | | 274,968 | |
| Nitto Denko Corp. | | | 26,810 | | | | 593,884 | |
| Shin-Etsu Chemical Co. Ltd. | | | 66,100 | | | | 3,514,289 | |
| Showa Denko KK | | | 232,000 | | | | 352,480 | |
| Sumitomo Chemical Co. Ltd. | | | 245,200 | | | | 750,329 | |
| Taiyo Nippon Sanso Corp. | | | 32,000 | | | | 201,268 | |
| Teijin Ltd. | | | 175,800 | | | | 457,289 | |
| Tokuyama Corp. | | | 38,000 | | | | 192,477 | |
| Toray Industries, Inc.(b) | | | 213,300 | | | | 990,623 | |
| Tosoh Corp. | | | 108,000 | | | | 215,402 | |
| UBE Industries Ltd. | | | 187,000 | | | | 393,538 | |
| | | | | | | | | |
| | | | | | | | 11,894,486 | |
| | | | | | | | | |
Commercial Banks 2.2% |
| 77 Bank Ltd. (The) | | | 36,300 | | | | 171,060 | |
| Aozora Bank Ltd. | | | 97,000 | | | | 81,013 | |
| Bank of Kyoto Ltd. (The) | | | 41,000 | | | | 431,356 | |
| Bank of Yokohama Ltd. (The) | | | 197,000 | | | | 955,739 | |
| Chiba Bank Ltd. (The) | | | 128,300 | | | | 634,270 | |
| Chugoku Bank Ltd. (The) | | | 25,000 | | | | 343,997 | |
| Chuo Mitsui Trust Holdings, Inc. | | | 157,400 | | | | 621,131 | |
| Fukuoka Financial Group, Inc. | | | 106,600 | | | | 352,642 | |
| Gunma Bank Ltd. (The) | | | 78,000 | | | | 398,361 | |
| Hachijuni Bank Ltd. (The) | | | 53,000 | | | | 260,117 | |
| Hiroshima Bank Ltd. (The) | | | 58,000 | | | | 215,572 | |
| Hokuhoku Financial Group, Inc. | | | 161,900 | | | | 320,435 | |
| Iyo Bank Ltd. (The) | | | 37,000 | | | | 399,239 | |
| Joyo Bank Ltd. (The) | | | 95,000 | | | | 447,019 | |
| Mitsubishi UFJ Financial Group, Inc.(b) | | | 1,651,984 | | | | 10,383,461 | |
| Mizuho Financial Group, Inc. | | | 1,547 | | | | 3,778,234 | |
| Mizuho Trust & Banking Co. Ltd.(b) | | | 230,000 | | | | 270,331 | |
| Nishi-Nippon City Bank Ltd. (The) | | | 86,000 | | | | 187,393 | |
| Resona Holdings, Inc.(b) | | | 820 | | | | 860,051 | |
| Sapporo Hokuyo Holdings, Inc. | | | 34 | | | | 146,664 | |
| Shinsei Bank Ltd.(b) | | | 227,000 | | | | 348,268 | |
| Shizuoka Bank Ltd. (The) | | | 105,000 | | | | 927,522 | |
| Sumitomo Mitsui Financial Group, Inc.(b) | | | 1,071 | | | | 4,294,367 | |
48 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
JAPAN (continued) |
Commercial Banks (continued) |
| | | | | | | | | |
| Sumitomo Trust & Banking Co. Ltd. (The) | | | 227,000 | | | $ | 1,051,468 | |
| Suruga Bank Ltd. | | | 28,000 | | | | 263,631 | |
| Yamaguchi Financial Group, Inc. | | | 32,000 | | | | 306,140 | |
| | | | | | | | | |
| | | | | | | | 28,449,481 | |
| | | | | | | | | |
Commercial Services & Supplies 0.3% |
| Dai Nippon Printing Co. Ltd.(b) | | | 102,700 | | | | 1,213,662 | |
| Secom Co. Ltd. | | | 36,300 | | | | 1,384,851 | |
| Toppan Printing Co. Ltd. | | | 96,000 | | | | 706,024 | |
| | | | | | | | | |
| | | | | | | | 3,304,537 | |
| | | | | | | | | |
Computers & Peripherals 0.3% |
| Fujitsu Ltd. | | | 301,100 | | | | 1,184,107 | |
| Mitsumi Electric Co. Ltd. | | | 16,600 | | | | 218,379 | |
| NEC Corp. | | | 309,000 | | | | 916,298 | |
| Seiko Epson Corp. | | | 20,200 | | | | 303,436 | |
| Toshiba Corp.(b) | | | 493,700 | | | | 1,784,800 | |
| | | | | | | | | |
| | | | | | | | 4,407,020 | |
| | | | | | | | | |
Construction & Engineering 0.2% |
| JGC Corp. | | | 35,000 | | | | 375,274 | |
| Kajima Corp. | | | 165,800 | | | | 479,664 | |
| Kinden Corp. | | | 25,000 | | | | 208,786 | |
| Obayashi Corp. | | | 83,500 | | | | 408,628 | |
| Shimizu Corp. | | | 78,000 | | | | 382,819 | |
| Taisei Corp. | | | 192,000 | | | | 442,575 | |
| | | | | | | | | |
| | | | | | | | 2,297,746 | |
| | | | | | | | | |
Construction Materials 0.0% |
| Taiheiyo Cement Corp. | | | 104,000 | | | | 121,076 | |
| | | | | | | | | |
Consumer Finance 0.2% |
| Aeon Credit Service Co. Ltd. | | | 18,300 | | | | 194,982 | |
| Aiful Corp.(b) | | | 11,917 | | | | 55,235 | |
| Credit Saison Co. Ltd. | | | 30,500 | | | | 323,747 | |
| ORIX Corp. | | | 14,780 | | | | 1,518,851 | |
| Promise Co. Ltd.(b) | | | 11,000 | | | | 197,481 | |
| Takefuji Corp.(b) | | | 14,930 | | | | 120,057 | |
| | | | | | | | | |
| | | | | | | | 2,410,353 | |
| | | | | | | | | |
Containers & Packaging 0.0% |
| Toyo Seikan Kaisha Ltd. | | | 20,500 | | | | 252,972 | |
| | | | | | | | | |
Distributors 0.0% |
| Canon Marketing Japan, Inc. | | | 10,300 | | | | 172,345 | |
| | | | | | | | | |
Diversified Consumer Services 0.0% |
| Benesse Corp. | | | 10,400 | | | | 436,898 | |
| | | | | | | | | |
Diversified Financial Services 0.0% |
| Mitsubishi UFJ Lease & Finance Co. Ltd. | | | 7,210 | | | | 172,704 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.3% |
| Nippon Telegraph & Telephone Corp. | | | 824 | | | | 3,363,198 | |
| | | | | | | | | |
Electric Utilities 1.4% |
| Chubu Electric Power Co., Inc. | | | 106,100 | | | | 2,778,800 | |
| Chugoku Electric Power Co., Inc. (The) | | | 43,600 | | | | 1,055,473 | |
| Hokkaido Electric Power Co., Inc. | | | 27,200 | | | | 610,064 | |
| Hokuriku Electric Power Co. | | | 27,200 | | | | 716,957 | |
| Kansai Electric Power Co., Inc. (The) | | | 123,400 | | | | 3,094,915 | |
| Kyushu Electric Power Co., Inc. | | | 58,300 | | | | 1,336,794 | |
| Shikoku Electric Power Co., Inc. | | | 29,000 | | | | 851,156 | |
| Tohoku Electric Power Co., Inc. | | | 72,300 | | | | 1,624,309 | |
| Tokyo Electric Power Co., Inc. (The) | | | 195,300 | | | | 5,532,119 | |
| | | | | | | | | |
| | | | | | | | 17,600,587 | |
| | | | | | | | | |
Electrical Equipment 0.3% |
| Fuji Electric Holdings Co. Ltd. | | | 60,200 | | | | 87,852 | |
| Furukawa Electric Co. Ltd. | | | 120,300 | | | | 363,472 | |
| Mitsubishi Electric Corp. | | | 310,600 | | | | 1,925,902 | |
| Panasonic Electronic Works Co. Ltd. | | | 50,284 | | | | 438,958 | |
| Sumitomo Electric Industries Ltd. | | | 117,600 | | | | 952,347 | |
| Ushio, Inc. | | | 13,700 | | | | 185,117 | |
| | | | | | | | | |
| | | | | | | | 3,953,648 | |
| | | | | | | | | |
Electronic Equipment & Instruments 1.1% |
| Alps Electric Co. Ltd. | | | 38,000 | | | | 209,088 | |
| Citizen Holdings Co. Ltd.(b) | | | 65,500 | | | | 362,491 | |
| FUJIFILM Holdings Corp. | | | 78,400 | | | | 1,805,163 | |
| Hirose Electric Co. Ltd. | | | 4,100 | | | | 355,105 | |
| Hitachi Chemical Co. Ltd. | | | 10,900 | | | | 111,397 | |
| Hitachi High-Technologies Corp. | | | 7,100 | | | | 115,180 | |
| Hitachi Ltd. | | | 540,800 | | | | 2,539,601 | |
| HOYA Corp. | | | 66,200 | | | | 1,209,045 | |
| Ibiden Co. Ltd. | | | 21,800 | | | | 407,884 | |
| Keyence Corp. | | | 5,680 | | | | 1,088,686 | |
| Kyocera Corp. | | | 26,100 | | | | 1,533,383 | |
| Mabuchi Motor Co. Ltd.(b) | | | 4,100 | | | | 162,206 | |
| Murata Manufacturing Co. Ltd. | | | 34,000 | | | | 1,172,027 | |
| Nidec Corp.(b) | | | 16,700 | | | | 898,366 | |
| Nippon Electric Glass Co. Ltd. | | | 56,000 | | | | 336,908 | |
| Omron Corp. | | | 29,800 | | | | 425,546 | |
2008 Annual Report 49
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
JAPAN (continued) |
Electronic Equipment & Instruments (continued) |
| | | | | | | | | |
| TDK Corp. | | | 19,800 | | | $ | 669,164 | |
| Yaskawa Electric Corp. | | | 30,000 | | | | 131,679 | |
| Yokogawa Electric Corp. | | | 44,700 | | | | 207,035 | |
| | | | | | | | | |
| | | | | | | | 13,739,954 | |
| | | | | | | | | |
Food & Staples Retailing 0.5% |
| AEON Co. Ltd. | | | 102,300 | | | | 981,161 | |
| FamilyMart Co. Ltd.(b) | | | 9,300 | | | | 368,532 | |
| Lawson, Inc. | | | 13,000 | | | | 635,522 | |
| Seven & I Holdings Co. Ltd. | | | 138,400 | | | | 3,886,780 | |
| UNY Co. Ltd. | | | 20,000 | | | | 155,900 | |
| | | | | | | | | |
| | | | | | | | 6,027,895 | |
| | | | | | | | | |
Food Products 0.3% |
| Ajinomoto Co., Inc. | | | 107,000 | | | | 924,067 | |
| Kikkoman Corp. | | | 32,000 | | | | 322,725 | |
| Meiji Dairies Corp.(b) | | | 60,000 | | | | 273,714 | |
| Nippon Meat Packers, Inc. | | | 36,000 | | | | 493,878 | |
| Nisshin Seifun Group, Inc. | | | 28,900 | | | | 313,383 | |
| Nissin Food Products Co. Ltd.(b) | | | 11,300 | | | | 323,070 | |
| Toyo Suisan Kaisha Ltd. | | | 15,400 | | | | 397,148 | |
| Yakult Honsha Co. Ltd.(b) | | | 14,900 | | | | 371,388 | |
| Yamazaki Baking Co. Ltd. | | | 13,100 | | | | 174,094 | |
| | | | | | | | | |
| | | | | | | | 3,593,467 | |
| | | | | | | | | |
Gas Distribution 0.0% |
| TOHO GAS Co. Ltd. | | | 73,000 | | | | 421,445 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.2% |
| Olympus Corp. | | | 37,000 | | | | 713,202 | |
| Shimadzu Corp. | | | 38,000 | | | | 260,073 | |
| Terumo Corp. | | | 28,100 | | | | 1,171,361 | |
| | | | | | | | | |
| | | | | | | | 2,144,636 | |
| | | | | | | | | |
Health Care Providers & Services 0.0% |
| Alfresa Holdings Corp. | | | 3,900 | | | | 169,673 | |
| Mediceo Paltac Holdings Co. Ltd. | | | 18,200 | | | | 197,244 | |
| Suzuken Co. Ltd. | | | 8,800 | | | | 188,064 | |
| | | | | | | | | |
| | | | | | | | 554,981 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.0%(b) |
| Oriental Land Co. Ltd. | | | 8,400 | | | | 595,797 | |
| | | | | | | | | |
Household Durables 0.9% |
| Casio Computer Co. Ltd. | | | 42,100 | | | | 270,466 | |
| Haseko Corp. | | | 156,000 | | | | 141,198 | |
| Makita Corp. | | | 19,600 | | | | 355,467 | |
| Matsushita Electric Industrial Co. Ltd. | | | 294,502 | | | | 4,743,545 | |
| Pioneer Corp. | | | 25,300 | | | | 75,064 | |
| Sanyo Electric Co. Ltd.* | | | 297,200 | | | | 451,208 | |
| Sekisui Chemical Co. Ltd. | | | 57,000 | | | | 333,100 | |
| Sekisui House Ltd. | | | 80,300 | | | | 805,375 | |
| Sharp Corp. | | | 160,900 | | | | 1,148,618 | |
| Sony Corp. | | | 160,900 | | | | 3,814,161 | |
| | | | | | | | | |
| | | | | | | | 12,138,202 | |
| | | | | | | | | |
Household Products 0.2% |
| Kao Corp. | | | 83,200 | | | | 2,433,396 | |
| Unicharm Corp. | | | 6,500 | | | | 466,300 | |
| | | | | | | | | |
| | | | | | | | 2,899,696 | |
| | | | | | | | | |
Independent Power Producers & Energy Traders 0.1% |
| Electric Power Development Co. Ltd. | | | 22,000 | | | | 655,137 | |
| | | | | | | | | |
Industrial Conglomerate 0.1% |
| Hankyu Hanshin Holdings, Inc. | | | 191,000 | | | | 901,208 | |
| | | | | | | | | |
Information Technology Services 0.1% |
| CSK Holdings Corp.(b) | | | 14,100 | | | | 117,873 | |
| Itochu Techno-Solutions Corp. | | | 1,800 | | | | 42,186 | |
| Nomura Research Institute Ltd. | | | 23,500 | | | | 388,137 | |
| NTT Data Corp.(b) | | | 187 | | | | 617,979 | |
| Obic Co. Ltd. | | | 940 | | | | 115,082 | |
| Otsuka Corp. | | | 1,500 | | | | 75,463 | |
| | | | | | | | | |
| | | | | | | | 1,356,720 | |
| | | | | | | | | |
Insurance 0.7% |
| Aioi Insurance Co. Ltd. | | | 69,000 | | | | 283,385 | |
| Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 60,680 | | | | 1,686,542 | |
| Nipponkoa Insurance Co. Ltd. | | | 103,000 | | | | 617,463 | |
| Sompo Japan Insurance, Inc. | | | 137,800 | | | | 966,058 | |
| Sony Financial Holdings, Inc. | | | 118 | | | | 383,847 | |
| T&D Holdings, Inc. | | | 33,100 | | | | 1,264,720 | |
| Tokio Marine Holdings, Inc. | | | 109,200 | | | | 3,369,056 | |
| | | | | | | | | |
| | | | | | | | 8,571,071 | |
| | | | | | | | | |
Internet & Catalog Retail 0.0%(b) |
| Dena Co. Ltd. | | | 53 | | | | 118,616 | |
| Rakuten, Inc. | | | 964 | | | | 477,988 | |
| | | | | | | | | |
| | | | | | | | 596,604 | |
| | | | | | | | | |
Internet Software & Services 0.1% |
| Yahoo! Japan Corp. | | | 2,339 | | | | 774,107 | |
| | | | | | | | | |
Leisure Equipment & Products 0.2% |
| Namco Bandai Holdings, Inc.(b) | | | 36,749 | | | | 377,981 | |
| Nikon Corp.(b) | | | 55,000 | | | | 775,280 | |
| Sankyo Co. Ltd. | | | 8,600 | | | | 382,721 | |
| Sega Sammy Holdings, Inc. | | | 31,900 | | | | 241,207 | |
| Shimano, Inc.(b) | | | 8,200 | | | | 234,613 | |
| Yamaha Corp. | | | 31,600 | | | | 306,297 | |
| | | | | | | | | |
| | | | | | | | 2,318,099 | |
| | | | | | | | | |
50 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
JAPAN (continued) |
| | | | | | | | | |
| | | | | | | | | |
Machinery 0.9% |
| Amada Co. Ltd. | | | 42,000 | | | $ | 192,915 | |
| Fanuc Ltd. | | | 30,800 | | | | 2,052,579 | |
| Hino Motors Ltd. | | | 61,000 | | | | 140,997 | |
| Hitachi Construction Machinery Co. Ltd.(b) | | | 17,200 | | | | 199,710 | |
| IHI Corp. | | | 171,000 | | | | 207,505 | |
| Japan Steel Works Ltd. (The) | | | 58,000 | | | | 410,939 | |
| JTEKT Corp. | | | 25,300 | | | | 194,165 | |
| Kawasaki Heavy Industries Ltd.(b) | | | 292,200 | | | | 529,496 | |
| Komatsu Ltd. | | | 144,200 | | | | 1,585,609 | |
| Kubota Corp. | | | 175,100 | | | | 879,067 | |
| Kurita Water Industries Ltd. | | | 18,100 | | | | 413,055 | |
| Minebea Co. Ltd. | | | 78,000 | | | | 210,553 | |
| Mitsubishi Heavy Industries Ltd. | | | 514,200 | | | | 1,649,045 | |
| Mitsui Engineering & Shipbuilding Co. Ltd. | | | 121,000 | | | | 169,355 | |
| NGK Insulators Ltd. | | | 42,000 | | | | 436,328 | |
| NSK Ltd. | | | 66,400 | | | | 271,061 | |
| NTN Corp. | | | 59,600 | | | | 222,157 | |
| OKUMA Corp.(b) | | | 14,000 | | | | 61,568 | |
| SMC Corp. | | | 8,400 | | | | 793,147 | |
| Sumitomo Heavy Industries Ltd. | | | 92,000 | | | | 273,178 | |
| THK Co. Ltd. | | | 24,600 | | | | 336,947 | |
| | | | | | | | | |
| | | | | | | | 11,229,376 | |
| | | | | | | | | |
Marine 0.2% |
| Kawasaki Kisen Kaisha Ltd. | | | 98,000 | | | | 388,343 | |
| Mitsui OSK Lines Ltd. | | | 184,000 | | | | 961,027 | |
| Nippon Yusen KK | | | 177,400 | | | | 858,024 | |
| | | | | | | | | |
| | | | | | | | 2,207,394 | |
| | | | | | | | | |
Media 0.1% |
| Dentsu, Inc.(b) | | | 332 | | | | 544,869 | |
| Fuji Media Holdings, Inc. | | | 137 | | | | 164,061 | |
| Hakuhodo DY Holdings, Inc. | | | 1,950 | | | | 88,811 | |
| Jupiter Telecommunications Co. Ltd. | | | 282 | | | | 190,460 | |
| Toho Co. Ltd. | | | 13,900 | | | | 265,037 | |
| Tokyo Broadcasting System, Inc. | | | 4,800 | | | | 85,051 | |
| | | | | | | | | |
| | | | | | | | 1,338,289 | |
| | | | | | | | | |
Metals & Mining 0.8% |
| Daido Steel Co. Ltd. | | | 64,000 | | | | 202,891 | |
| Dowa Holdings Co. Ltd. | | | 59,800 | | | | 180,273 | |
| Hitachi Metals Ltd. | | | 25,000 | | | | 188,016 | |
| JFE Holdings, Inc. | | | 83,800 | | | | 2,138,623 | |
| Kobe Steel Ltd. | | | 444,000 | | | | 720,332 | |
| Maruichi Steel Tube Ltd.(b) | | | 5,600 | | | | 127,419 | |
| Mitsubishi Materials Corp. | | | 185,000 | | | | 417,832 | |
| Mitsui Mining & Smelting Co. Ltd.(b) | | | 116,100 | | | | 212,377 | |
| Nippon Steel Corp. | | | 817,000 | | | | 2,750,511 | |
| Nisshin Steel Co. Ltd. | | | 127,900 | | | | 171,315 | |
| OSAKA Titanium Technologies Co.(b) | | | 4,500 | | | | 117,412 | |
| Sumitomo Metal Industries Ltd. | | | 617,000 | | | | 1,587,208 | |
| Sumitomo Metal Mining Co. Ltd. | | | 89,000 | | | | 667,576 | |
| Toho Titanium Co. Ltd.(b) | | | 1,646 | | | | 19,258 | |
| Tokyo Steel Manufacturing Co. Ltd. | | | 10,900 | | | | 84,211 | |
| Yamato Kogyo Co. Ltd. | | | 4,700 | | | | 111,101 | |
| | | | | | | | | |
| | | | | | | | 9,696,355 | |
| | | | | | | | | |
Multiline Retail 0.1% |
| Isetan Mitsukoshi Holdings Ltd.*(b) | | | 59,978 | | | | 565,074 | |
| J. Front Retailing Co. Ltd. | | | 69,200 | | | | 308,646 | |
| Marui Group Co. Ltd. | | | 54,600 | | | | 333,828 | |
| Takashimaya Co. Ltd.(b) | | | 57,000 | | | | 439,390 | |
| | | | | | | | | |
| | | | | | | | 1,646,938 | |
| | | | | | | | | |
Natural Gas Utility 0.2% |
| Osaka Gas Co. Ltd. | | | 336,900 | | | | 1,191,939 | |
| Tokyo Gas Co. Ltd. | | | 373,400 | | | | 1,605,929 | |
| | | | | | | | | |
| | | | | | | | 2,797,868 | |
| | | | | | | | | |
Office Electronics 0.6% |
| Brother Industries Ltd.(b) | | | 37,500 | | | | 255,875 | |
| Canon, Inc. | | | 171,000 | | | | 5,984,786 | |
| Konica Minolta Holdings, Inc. | | | 84,400 | | | | 554,393 | |
| Ricoh Co. Ltd. | | | 107,200 | | | | 1,153,922 | |
| | | | | | | | | |
| | | | | | | | 7,948,976 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.3% |
| Cosmo Oil Co. Ltd. | | | 51,000 | | | | 108,513 | |
| Idemitsu Kosan Co. Ltd. | | | 2,800 | | | | 163,282 | |
| Inpex Holdings, Inc. | | | 132 | | | | 766,468 | |
| Japan Petroleum Exploration Co. | | | 5,100 | | | | 194,291 | |
| Nippon Mining Holdings, Inc. | | | 158,900 | | | | 486,548 | |
| Nippon Oil Corp. | | | 220,400 | | | | 904,874 | |
| Showa Shell Sekiyu KK | | | 40,500 | | | | 330,923 | |
| TonenGeneral Sekiyu KK(b) | | | 35,000 | | | | 296,096 | |
| | | | | | | | | |
| | | | | | | | 3,250,995 | |
| | | | | | | | | |
Paper & Forest Products 0.1% |
| Nippon Paper Group, Inc. | | | 173 | | | | 462,461 | |
| OJI Paper Co. Ltd. | | | 144,000 | | | | 549,910 | |
| | | | | | | | | |
| | | | | | | | 1,012,371 | |
| | | | | | | | | |
2008 Annual Report 51
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
JAPAN (continued) |
| | | | | | | | | |
| | | | | | | | | |
Personal Products 0.1%(b) |
| Shiseido Co. Ltd. | | | 52,700 | | | $ | 1,084,537 | |
| | | | | | | | | |
Pharmaceuticals 1.3% |
| Astellas Pharma, Inc. | | | 79,300 | | | | 3,194,754 | |
| Chugai Pharmaceutical Co. Ltd. | | | 40,300 | | | | 573,263 | |
| Daiichi Sankyo Co. Ltd. | | | 112,100 | | | | 2,299,068 | |
| Dainippon Sumitomo Pharma Co. Ltd. | | | 23,000 | | | | 181,755 | |
| Eisai Co. Ltd. | | | 40,400 | | | | 1,311,034 | |
| Hisamitsu Pharmaceutical Co., Inc. | | | 10,100 | | | | 421,049 | |
| Kyowa Hakko Kogyo Co. Ltd. | | | 37,000 | | | | 308,416 | |
| Mitsubishi Tanabe Pharma Corp. | | | 31,000 | | | | 326,331 | |
| Ono Pharmaceutical Co. Ltd. | | | 15,100 | | | | 673,245 | |
| Santen Pharmaceutical Co. Ltd. | | | 8,600 | | | | 219,984 | |
| Shionogi & Co. Ltd. | | | 48,400 | | | | 823,918 | |
| Taisho Pharmaceutical Co. Ltd. | | | 19,900 | | | | 358,507 | |
| Takeda Pharmaceutical Co. Ltd. | | | 133,800 | | | | 6,649,231 | |
| | | | | | | | | |
| | | | | | | | 17,340,555 | |
| | | | | | | | | |
Real Estate Investment Trusts 0.2% |
| Japan Prime Realty Investment Corp. | | | 114 | | | | 202,566 | |
| Japan Real Estate Investment Corp. | | | 70 | | | | 619,983 | |
| Japan Retail Fund Investment Corp. | | | 81 | | | | 292,599 | |
| Nippon Building Fund, Inc. | | | 93 | | | | 893,817 | |
| Nomura Real Estate Office Fund, Inc.(b) | | | 55 | | | | 312,751 | |
| | | | | | | | | |
| | | | | | | | 2,321,716 | |
| | | | | | | | | |
Real Estate Management & Development 0.7% |
| Aeon Mall Co. Ltd. | | | 8,000 | | | | 197,527 | |
| Daito Trust Construction Co. Ltd. | | | 11,400 | | | | 481,007 | |
| Daiwa House Industry Co. Ltd. | | | 83,000 | | | | 738,013 | |
| Leopalace21 Corp. | | | 20,575 | | | | 153,175 | |
| Mitsubishi Estate Co. Ltd. | | | 187,600 | | | | 3,351,845 | |
| Mitsui Fudosan Co. Ltd. | | | 134,700 | | | | 2,350,086 | |
| Nomura Real Estate Holdings, Inc.(b) | | | 5,100 | | | | 99,937 | |
| NTT Urban Development Corp. | | | 130 | | | | 133,395 | |
| Sumitomo Realty & Development Co. Ltd. | | | 61,000 | | | | 994,065 | |
| Tokyo Tatemono Co. Ltd.(b) | | | 46,000 | | | | 189,522 | |
| Tokyu Land Corp. | | | 79,000 | | | | 223,618 | |
| | | | | | | | | |
| | | | | | | | 8,912,190 | |
| | | | | | | | | |
Road & Rail 0.9% |
| Central Japan Railway Co. | | | 258 | | | | 2,119,789 | |
| East Japan Railway Co. | | | 545 | | | | 3,879,009 | |
| Keihin Electric Express Railway Co. Ltd.(b) | | | 56,000 | | | | 432,324 | |
| Keio Corp. | | | 82,400 | | | | 426,775 | |
| Keisei Electric Railway Co. Ltd. | | | 62,000 | | | | 304,475 | |
| Kintetsu Corp.(b) | | | 239,500 | | | | 916,919 | |
| Nippon Express Co. Ltd. | | | 143,500 | | | | 579,319 | |
| Odakyu Electric Railway Co. Ltd.(b) | | | 94,100 | | | | 690,104 | |
| Tobu Railway Co. Ltd. | | | 114,000 | | | | 579,297 | |
| Tokyu Corp. | | | 164,900 | | | | 647,948 | |
| West Japan Railway Co. | | | 291 | | | | 1,280,833 | |
| | | | | | | | | |
| | | | | | | | 11,856,792 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.2% |
| Advantest Corp.(b) | | | 24,000 | | | | 344,906 | |
| Elpida Memory, Inc.*(b) | | | 19,000 | | | | 101,315 | |
| NEC Electronics Corp.*(b) | | | 5,200 | | | | 52,384 | |
| Rohm Co. Ltd. | | | 16,200 | | | | 780,767 | |
| Shinko Electric Industries Co. Ltd. | | | 16,400 | | | | 105,749 | |
| Sumco Corp. | | | 18,500 | | | | 200,378 | |
| Tokyo Electron Ltd. | | | 27,600 | | | | 920,477 | |
| | | | | | | | | |
| | | | | | | | 2,505,976 | |
| | | | | | | | | |
Software 0.5% |
| Konami Corp. | | | 17,100 | | | | 309,416 | |
| Nintendo Co. Ltd. | | | 15,900 | | | | 5,109,839 | |
| Oracle Corp.(b) | | | 4,100 | | | | 178,280 | |
| Square Enix Co. Ltd. | | | 7,300 | | | | 183,951 | |
| Trend Micro, Inc. | | | 18,000 | | | | 440,424 | |
| | | | | | | | | |
| | | | | | | | 6,221,910 | |
| | | | | | | | | |
Specialty Retail 0.2% |
| Fast Retailing Co. Ltd. | | | 7,800 | | | | 831,712 | |
| Hikari Tsushin, Inc. | | | 3,200 | | | | 47,765 | |
| Nitori Co. Ltd. | | | 5,050 | | | | 316,482 | |
| Shimamura Co. Ltd. | | | 2,600 | | | | 180,146 | |
| USS Co. Ltd. | | | 5,540 | | | | 339,395 | |
| Yamada Denki Co. Ltd. | | | 13,880 | | | | 755,644 | |
| | | | | | | | | |
| | | | | | | | 2,471,144 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.0% |
| Asics Corp. | | | 17,000 | | | | 106,539 | |
| Nisshinbo Industries, Inc. | | | 23,100 | | | | 134,293 | |
| Onward Holdings Co. Ltd. | | | 28,400 | | | | 207,761 | |
| | | | | | | | | |
| | | | | | | | 448,593 | |
| | | | | | | | | |
52 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
JAPAN (continued) |
| | | | | | | | | |
| | | | | | | | | |
Tobacco 0.2% |
| Japan Tobacco, Inc. | | | 721 | | | $ | 2,558,393 | |
| | | | | | | | | |
Trading Companies & Distributors 0.8% |
| ITOCHU Corp. | | | 242,000 | | | | 1,279,170 | |
| Marubeni Corp. | | | 265,000 | | | | 1,029,746 | |
| Mitsubishi Corp. | | | 217,300 | | | | 3,643,090 | |
| Mitsui & Co. Ltd. | | | 278,000 | | | | 2,694,230 | |
| Sojitz Corp. | | | 191,067 | | | | 319,349 | |
| Sumitomo Corp. | | | 180,700 | | | | 1,590,129 | |
| Toyota Tsusho Corp. | | | 31,500 | | | | 304,049 | |
| | | | | | | | | |
| | | | | | | | 10,859,763 | |
| | | | | | | | | |
Transportation Infrastructure 0.0% |
| Kamigumi Co. Ltd. | | | 30,000 | | | | 238,716 | |
| Mitsubishi Logistics Corp. | | | 25,400 | | | | 231,138 | |
| | | | | | | | | |
| | | | | | | | 469,854 | |
| | | | | | | | | |
Wireless Telecommunication Services 0.6% |
| KDDI Corp. | | | 467 | | | | 2,798,616 | |
| NTT DoCoMo, Inc. | | | 2,509 | | | | 3,979,953 | |
| Softbank Corp.(b) | | | 121,300 | | | | 1,194,737 | |
| | | | | | | | | |
| | | | | | | | 7,973,306 | |
| | | | | | | | | |
| | | | | | | | 299,344,921 | |
| | | | | | | | | |
| |
| |
JERSEY 0.0%(a) (b) |
Real Estate Management & Development 0.0% |
| Atrium European Real Estate* | | | 57,937 | | | | 263,393 | |
| | | | | | | | | |
| |
| |
LUXEMBOURG 0.1%(a) |
Energy Equipment & Services 0.0%(b) |
| Acergy SA | | | 32,993 | | | | 223,259 | |
| | | | | | | | | |
Media 0.1% |
| SES FDR (XPAR) | | | 48,464 | | | | 871,747 | |
| | | | | | | | | |
Wireless Telecommunication Services 0.0% |
| Millicom International Cellular SA — SDR | | | 11,290 | | | | 417,766 | |
| | | | | | | | | |
| | | | | | | | 1,512,772 | |
| | | | | | | | | |
| |
| |
NETHERLANDS 2.8%(a) |
Aerospace & Defense 0.1% |
| European Aeronautic Defence and Space Co. NV | | | 52,311 | | | | 869,977 | |
| | | | | | | | | |
Air Freight & Logistics 0.1% |
| TNT NV | | | 62,421 | | | | 1,317,185 | |
| | | | | | | | | |
Beverages 0.1% |
| Heineken Holding NV | | | 17,585 | | | | 533,793 | |
| Heineken NV | | | 40,237 | | | | 1,357,169 | |
| | | | | | | | | |
| | | | | | | | 1,890,962 | |
| | | | | | | | | |
Chemicals 0.2% |
| Akzo Nobel NV(b) | | | 44,469 | | | | 1,848,189 | |
| Koninklijke DSM NV | | | 22,193 | | | | 617,969 | |
| | | | | | | | | |
| | | | | | | | 2,466,158 | |
| | | | | | | | | |
Commercial Services & Supplies 0.0% |
| Randstad Holding NV | | | 14,443 | | | | 280,707 | |
| | | | | | | | | |
Construction & Engineering 0.0% |
| Koninklijke Boskalis Westminster NV CVA | | | 9,630 | | | | 317,881 | |
| | | | | | | | | |
Construction Materials 0.0%(b) |
| James Hardie Industries NV CDI | | | 65,970 | | | | 187,558 | |
| | | | | | | | | |
Diversified Financial Services 0.2% |
| ING Groep NV CVA | | | 309,291 | | | | 2,900,928 | |
| SNS Reaal | | | 20,410 | | | | 149,704 | |
| | | | | | | | | |
| | | | | | | | 3,050,632 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.3% |
| Koninklijke KPN NV | | | 295,020 | | | | 4,154,350 | |
| | | | | | | | | |
Energy Equipment & Services 0.1% |
| Fugro NV CVA | | | 8,344 | | | | 298,133 | |
| SBM Offshore NV | | | 26,863 | | | | 472,467 | |
| | | | | | | | | |
| | | | | | | | 770,600 | |
| | | | | | | | | |
Food & Staples Retailing 0.2% |
| Koninklijke Ahold NV | | | 194,859 | | | | 2,091,645 | |
| | | | | | | | | |
Food Products 0.5% |
| Unilever NV CVA | | | 264,374 | | | | 6,370,549 | |
| | | | | | | | | |
Household Durables 0.0%(b) |
| TomTom NV* | | | 10,250 | | | | 78,126 | |
| | | | | | | | | |
Industrial Conglomerate 0.2% |
| Koninklijke Philips Electronics NV | | | 166,878 | | | | 3,083,523 | |
| | | | | | | | | |
Insurance 0.1% |
| Aegon NV | | | 228,172 | | | | 947,985 | |
| | | | | | | | | |
Media 0.2% |
| Reed Elsevier NV | | | 102,426 | | | | 1,368,876 | |
| Wolters Kluwer NV | | | 49,966 | | | | 884,414 | |
| | | | | | | | | |
| | | | | | | | 2,253,290 | |
| | | | | | | | | |
Metals & Mining 0.3%(b) |
| ArcelorMittal (XPAR) | | | 140,500 | | | | 3,653,904 | |
| | | | | | | | | |
Real Estate Investment Trusts 0.0% |
| Corio NV | | | 6,452 | | | | 344,754 | |
| | | | | | | | | |
Semiconductors & Semiconductor Equipment 0.2% |
| ASML Holding NV | | | 70,954 | | | | 1,242,004 | |
| STMicroelectronics NV | | | 111,117 | | | | 913,310 | |
| | | | | | | | | |
| | | | | | | | 2,155,314 | |
| | | | | | | | | |
| | | | | | | | 36,285,100 | |
| | | | | | | | | |
| |
| |
2008 Annual Report 53
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
NEW ZEALAND 0.1%(a) |
Construction Materials 0.0% |
| Fletcher Building Ltd. | | | 70,946 | | | $ | 240,736 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1%(b) |
| Telecom Corp. of New Zealand Ltd. | | | 315,094 | | | | 426,822 | |
| | | | | | | | | |
Electric Utility 0.0%(b) |
| Contact Energy Ltd. | | | 27,782 | | | | 117,707 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.0% |
| Sky City Entertainment Group Ltd. | | | 106,546 | | | | 205,519 | |
| | | | | | | | | |
Transportation Infrastructure 0.0% |
| Auckland International Airport Ltd. | | | 100,919 | | | | 107,950 | |
| | | | | | | | | |
| | | | | | | | 1,098,734 | |
| | | | | | | | | |
| |
| |
NORWAY 0.7%(a) |
Chemicals 0.1%(b) |
| Yara International ASA | | | 30,964 | | | | 647,320 | |
| | | | | | | | | |
Commercial Banks 0.1% |
| DnB NOR ASA | | | 119,689 | | | | 694,081 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1% |
| Telenor ASA | | | 136,554 | | | | 815,337 | |
| | | | | | | | | |
Electrical Equipment 0.0%(b) |
| Renewable Energy Corp. ASA* | | | 24,857 | | | | 234,671 | |
| | | | | | | | | |
Energy Equipment & Services 0.0% |
| Aker Solutions ASA(b) | | | 31,880 | | | | 174,453 | |
| Petroleum Geo-Services ASA* | | | 28,555 | | | | 142,278 | |
| | | | | | | | | |
| | | | | | | | 316,731 | |
| | | | | | | | | |
Industrial Conglomerate 0.1%(b) |
| Orkla ASA | | | 135,645 | | | | 903,595 | |
| | | | | | | | | |
Insurance 0.0% |
| Storebrand ASA | | | 60,740 | | | | 144,066 | |
| | | | | | | | | |
Metals & Mining 0.0% |
| Norsk Hydro ASA | | | 112,054 | | | | 468,493 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.3% |
| StatoilHydro ASA | | | 210,106 | | | | 4,228,692 | |
| | | | | | | | | |
| | | | | | | | 8,452,986 | |
| | | | | | | | | |
| |
| |
PORTUGAL 0.3%(a) |
Commercial Banks 0.1% |
| Banco BPI SA(b) | | | 51,306 | | | | 105,724 | |
| Banco Comercial Portugues SA(b) | | | 437,665 | | | | 508,588 | |
| Banco Espirito Santo SA | | | 29,994 | | | | 285,546 | |
| | | | | | | | | |
| | | | | | | | 899,858 | |
| | | | | | | | | |
Construction Materials 0.0%(b) |
| Cimpor Cimentos de Portugal SGPS SA | | | 41,410 | | | | 188,944 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1% |
| Portugal Telecom SGPS SA | | | 110,137 | | | | 724,291 | |
| | | | | | | | | |
Electric Utility 0.1% |
| Energias de Portugal SA | | | 300,599 | | | | 1,023,753 | |
| | | | | | | | | |
Food & Staples Retailing 0.0% |
| Jeronimo Martins SGPS SA | | | 36,111 | | | | 184,262 | |
| | | | | | | | | |
Industrial Conglomerate 0.0% |
| Sonae SGPS SA | | | 165,828 | | | | 100,829 | |
| | | | | | | | | |
Media 0.0% |
| Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA | | | 30,919 | | | | 156,873 | |
| | | | | | | | | |
Transportation Infrastructure 0.0%(b) |
| BRISA — Auto Estrandas de Portugal SA | | | 42,254 | | | | 324,136 | |
| | | | | | | | | |
| | | | | | | | 3,602,946 | |
| | | | | | | | | |
| |
| |
SINGAPORE 1.0%(a) |
Aerospace & Defense 0.0% |
| Singapore Technologies Engineering Ltd. | | | 176,000 | | | | 277,972 | |
| | | | | | | | | |
Airline 0.1% |
| Singapore Airlines Ltd. | | | 78,613 | | | | 602,498 | |
| | | | | | | | | |
Commercial Banks 0.4% |
| DBS Group Holdings Ltd. | | | 186,700 | | | | 1,425,654 | |
| Oversea-Chinese Banking Corp. | | | 429,600 | | | | 1,452,947 | |
| United Overseas Bank Ltd. | | | 200,500 | | | | 1,813,283 | |
| | | | | | | | | |
| | | | | | | | 4,691,884 | |
| | | | | | | | | |
Distributors 0.0% |
| Jardine Cycle & Carriage Ltd. | | | 16,604 | | | | 106,540 | |
| | | | | | | | | |
Diversified Financial Services 0.0%(b) |
| Singapore Exchange Ltd. | | | 144,900 | | | | 518,837 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.2% |
| Singapore Telecommunications Ltd. | | | 1,276,003 | | | | 2,148,131 | |
| | | | | | | | | |
Electronic Equipment & Instruments 0.0%(b) |
| Venture Corp. Ltd. | | | 38,200 | | | | 139,644 | |
| | | | | | | | | |
Food & Staples Retailing 0.0% |
| Olam International Ltd. | | | 183,500 | | | | 161,584 | |
| | | | | | | | | |
Food Products 0.0% |
| Golden Agri-Resources Ltd. | | | 859,000 | | | | 114,671 | |
| Wilmar International Ltd.(b) | | | 128,158 | | | | 221,707 | |
| | | | | | | | | |
| | | | | | | | 336,378 | |
| | | | | | | | | |
54 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
SINGAPORE (continued) |
| | | | | | | | | |
| | | | | | | | | |
Health Care Providers & Services 0.0% |
| Parkway Holdings Ltd. | | | 210,646 | | | $ | 225,925 | |
| | | | | | | | | |
Industrial Conglomerates 0.1% |
| Fraser and Neave Ltd. | | | 121,369 | | | | 229,093 | |
| Keppel Corp. Ltd. | | | 214,000 | | | | 667,411 | |
| SembCorp Industries Ltd. | | | 138,243 | | | | 232,423 | |
| | | | | | | | | |
| | | | | | | | 1,128,927 | |
| | | | | | | | | |
Machinery 0.0%(b) |
| Cosco Corp. Singapore Ltd. | | | 164,066 | | | | 89,827 | |
| SembCorp Marine Ltd. | | | 151,200 | | | | 187,957 | |
| | | | | | | | | |
| | | | | | | | 277,784 | |
| | | | | | | | | |
Marine 0.0%(b) |
| Neptune Orient Lines Ltd. | | | 42,800 | | | | 36,161 | |
| | | | | | | | | |
Media 0.1% |
| Singapore Press Holdings Ltd. | | | 283,500 | | | | 619,502 | |
| | | | | | | | | |
Real Estate Investment Trusts 0.0% |
| Ascendas Real Estate Investment Trust | | | 85,600 | | | | 95,286 | |
| CapitaCommercial Trust | | | 135,000 | | | | 92,773 | |
| CapitaMall Trust | | | 141,000 | | | | 187,044 | |
| | | | | | | | | |
| | | | | | | | 375,103 | |
| | | | | | | | | |
Real Estate Management & Development 0.1% |
| CapitaLand Ltd. | | | 292,897 | | | | 587,212 | |
| City Developments Ltd.(b) | | | 94,099 | | | | 416,252 | |
| Keppel Land Ltd.(b) | | | 86,300 | | | | 110,977 | |
| UOL Group Ltd. | | | 134,120 | | | | 175,626 | |
| Yanlord Land Group Ltd.(b) | | | 26,000 | | | | 13,343 | |
| | | | | | | | | |
| | | | | | | | 1,303,410 | |
| | | | | | | | | |
Road & Rail 0.0% |
| ComfortDelgro Corp. Ltd. | | | 280,620 | | | | 230,255 | |
| | | | | | | | | |
| | | | | | | | 13,180,535 | |
| | | | | | | | | |
| |
| |
SPAIN 3.9%(a) |
Airline 0.0%(b) |
| Iberia Lineas Aereas de Espana SA | | | 92,810 | | | | 218,931 | |
| | | | | | | | | |
Biotechnology 0.0% |
| Grifols SA | | | 22,670 | | | | 451,099 | |
| | | | | | | | | |
Commercial Banks 1.6% |
| Banco Bilbao Vizcaya Argentaria SA | | | 570,294 | | | | 6,618,259 | |
| Banco de Sabadell SA(b) | | | 147,490 | | | | 1,005,891 | |
| Banco Popular Espanol SA(b) | | | 128,104 | | | | 1,165,696 | |
| Banco Santander SA — Continuous Exchange | | | 19,349 | | | | 212,557 | |
| Banco Santander SA — London International Exchange | | | 1,006,759 | | | | 10,887,018 | |
| Bankinter SA(b) | | | 41,576 | | | | 448,572 | |
| | | | | | | | | |
| | | | | | | | 20,337,993 | |
| | | | | | | | | |
Construction & Engineering 0.2% |
| ACS Actividades de Construccion y Servicios SA | | | 31,523 | | | | 1,170,276 | |
| Fomento de Construcciones y Contratas SA(b) | | | 7,593 | | | | 301,878 | |
| Grupo Ferrovial SA(b) | | | 9,086 | | | | 279,989 | |
| Sacyr Vallehermoso SA(b) | | | 13,067 | | | | 120,495 | |
| | | | | | | | | |
| | | | | | | | 1,872,638 | |
| | | | | | | | | |
Diversified Financial Services 0.0% |
| Criteria Caixacorp SA | | | 134,085 | | | | 433,857 | |
| | | | | | | | | |
Diversified Telecommunication Services 1.0% |
| Telefonica SA | | | 687,979 | | | | 12,736,437 | |
| | | | | | | | | |
Electric Utilities 0.5% |
| Acciona SA | | | 4,566 | | | | 431,848 | |
| Iberdrola SA | | | 557,110 | | | | 4,031,538 | |
| Red Electrica Corporacion SA | | | 17,405 | | | | 762,796 | |
| Union Fenosa SA(b) | | | 58,335 | | | | 1,237,591 | |
| | | | | | | | | |
| | | | | | | | 6,463,773 | |
| | | | | | | | | |
Electrical Equipment 0.1% |
| Gamesa Corp. Tecnologica SA | | | 29,652 | | | | 486,082 | |
| | | | | | | | | |
Independent Power Producers & Energy Traders 0.0% |
| Iberdrola Renovables SA* | | | 137,814 | | | | 419,217 | |
| | | | | | | | | |
Information Technology Services 0.0% |
| Indra Sistemas SA | | | 19,952 | | | | 387,644 | |
| | | | | | | | | |
Insurance 0.0% |
| Mapfre SA | | | 108,512 | | | | 345,303 | |
| | | | | | | | | |
Machinery 0.0%(b) |
| Zardoya Otis SA | | | 16,820 | | | | 318,630 | |
| | | | | | | | | |
Media 0.0%(b) |
| Gestevision Telecinco SA | | | 10,642 | | | | 85,432 | |
| Promotora de Informaciones SA | | | 7,564 | | | | 29,623 | |
| | | | | | | | | |
| | | | | | | | 115,055 | |
| | | | | | | | | |
Metals & Mining 0.0%(b) |
| Acerinox SA | | | 28,129 | | | | 353,570 | |
| | | | | | | | | |
Natural Gas Utility 0.1% |
| Enagas | | | 27,772 | | | | 542,537 | |
| Gas Natural SDG SA | | | 18,056 | | | | 555,661 | |
| | | | | | | | | |
| | | | | | | | 1,098,198 | |
| | | | | | | | | |
2008 Annual Report 55
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
SPAIN (continued) |
| | | | | | | | | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.2% |
| Repsol YPF SA | | | 116,319 | | | $ | 2,211,657 | |
| | | | | | | | | |
Specialty Retail 0.1%(b) |
| Inditex SA | | | 34,938 | | | | 1,180,856 | |
| | | | | | | | | |
Transportation Infrastructure 0.1% |
| Abertis Infraestructuras SA | | | 41,155 | | | | 706,693 | |
| Cintra Concesiones de Infraestructuras de Transporte SA(b) | | | 43,127 | | | | 383,658 | |
| | | | | | | | | |
| | | | | | | | 1,090,351 | |
| | | | | | | | | |
| | | | | | | | 50,521,291 | |
| | | | | | | | | |
| |
| |
SWEDEN 1.9%(a) |
Building Products 0.0%(b) |
| Assa Abloy AB, Class B | | | 50,048 | | | | 559,071 | |
| | | | | | | | | |
Commercial Banks 0.4% |
| Nordea Bank AB | | | 334,249 | | | | 2,680,502 | |
| Skandinaviska Enskilda Banken AB, Class A(b) | | | 74,179 | | | | 735,561 | |
| Svenska Handelsbanken AB, Class A | | | 73,582 | | | | 1,352,950 | |
| Swedbank AB, Class A(b) | | | 57,800 | | | | 477,913 | |
| | | | | | | | | |
| | | | | | | | 5,246,926 | |
| | | | | | | | | |
Commercial Services & Supplies 0.0% |
| Securitas AB, B Shares | | | 50,085 | | | | 481,149 | |
| | | | | | | | | |
Communications Equipment 0.3%(b) |
| Telefonaktiebolaget LM Ericsson, Class B | | | 478,124 | | | | 3,256,546 | |
| | | | | | | | | |
Construction & Engineering 0.0% |
| Skanska AB, B Shares | | | 62,056 | | | | 545,336 | |
| | | | | | | | | |
Diversified Financial Services 0.1% |
| Investor AB, B Shares | | | 72,600 | | | | 1,095,502 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.2% |
| Tele2 AB, B Shares | | | 48,699 | | | | 415,782 | |
| TeliaSonera AB(b) | | | 358,999 | | | | 1,580,332 | |
| | | | | | | | | |
| | | | | | | | 1,996,114 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.0% |
| Getinge AB, B Shares | | | 30,124 | | | | 421,547 | |
| | | | | | | | | |
Household Durables 0.1%(b) |
| Electrolux AB, Series B | | | 40,755 | | | | 375,402 | |
| Husqvarna AB, Class B | | | 46,443 | | | | 322,172 | |
| | | | | | | | | |
| | | | | | | | 697,574 | |
| | | | | | | | | |
Machinery 0.4% |
| Alfa Laval AB | | | 60,864 | | | | 439,609 | |
| Atlas Copco AB, Class A | | | 108,963 | | | | 914,391 | |
| Atlas Copco AB, Class B | | | 56,910 | | | | 426,279 | |
| Sandvik AB | | | 162,195 | | | | 1,053,236 | |
| Scania AB, Class B | | | 62,282 | | | | 512,154 | |
| SKF AB, Class B | | | 62,006 | | | | 565,135 | |
| Volvo AB, Class B(b) | | | 176,334 | | | | 921,957 | |
| | | | | | | | | |
| | | | | | | | 4,832,761 | |
| | | | | | | | | |
Media 0.0% |
| Modern Times Group AB, Class B | | | 8,062 | | | | 173,088 | |
| | | | | | | | | |
Metals & Mining 0.0% |
| Boliden AB(b) | | | 47,104 | | | | 113,360 | |
| Ssab Svenskt Stal AB, Class B | | | 8,917 | | | | 80,883 | |
| Ssab Svenskt Stal AB, Series A(b) | | | 28,902 | | | | 292,388 | |
| | | | | | | | | |
| | | | | | | | 486,631 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 0.0%(b) |
| Lundin Petroleum AB* | | | 32,091 | | | | 153,287 | |
| | | | | | | | | |
Paper & Forest Products 0.1% |
| Holmen AB, Class B | | | 7,619 | | | | 214,871 | |
| Svenska Cellulosa AB, Class B | | | 93,791 | | | | 692,965 | |
| | | | | | | | | |
| | | | | | | | 907,836 | |
| | | | | | | | | |
Specialty Retail 0.2%(b) |
| Hennes & Mauritz AB, Class B | | | 81,940 | | | | 2,939,912 | |
| | | | | | | | | |
Tobacco 0.1% |
| Swedish Match AB | | | 47,028 | | | | 653,426 | |
| | | | | | | | | |
| | | | | | | | 24,446,706 | |
| | | | | | | | | |
| |
| |
SWITZERLAND 8.4% |
Biotechnology 0.1%(a) (b) |
| Actelion Ltd.* | | | 16,007 | | | | 845,907 | |
| | | | | | | | | |
Building Products 0.1%(a) (b) |
| Geberit AG | | | 6,992 | | | | 726,680 | |
| | | | | | | | | |
Capital Markets 1.2%(a) |
| Credit Suisse Group AG | | | 171,303 | | | | 6,407,893 | |
| EFG International AG | | | 6,184 | | | | 133,173 | |
| Julius Baer Holding AG | | | 34,724 | | | | 1,358,532 | |
| UBS AG* | | | 481,254 | | | | 8,168,386 | |
| | | | | | | | | |
| | | | | | | | 16,067,984 | |
| | | | | | | | | |
Chemicals 0.3%(a) |
| Givaudan SA(b) | | | 1,090 | | | | 742,998 | |
| Syngenta AG | | | 17,035 | | | | 3,185,507 | |
| | | | | | | | | |
| | | | | | | | 3,928,505 | |
| | | | | | | | | |
Commercial Services & Supplies 0.1%(a) |
| Adecco SA | | | 20,141 | | | | 700,884 | |
| SGS SA | | | 766 | | | | 754,417 | |
| | | | | | | | | |
| | | | | | | | 1,455,301 | |
| | | | | | | | | |
Computers & Peripherals 0.0%(a) |
| Logitech International SA* | | | 26,437 | | | | 394,272 | |
| | | | | | | | | |
56 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
SWITZERLAND (continued) |
| | | | | | | | | |
| | | | | | | | | |
Construction Materials 0.1%(a) |
| Holcim Ltd. | | | 34,526 | | | $ | 1,961,727 | |
| | | | | | | | | |
Diversified Financial Services 0.0%(a) |
| Pargesa Holding SA | | | 4,238 | | | | 324,753 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1%(a) |
| Swisscom AG | | | 3,715 | | | | 1,135,552 | |
| | | | | | | | | |
Electrical Equipment 0.4%(a) |
| ABB Ltd. | | | 360,250 | | | | 4,728,510 | |
| | | | | | | | | |
Food Products 2.0% |
| Aryzta AG*(b) | | | 14,400 | | | | 509,273 | |
| Lindt & Spruengli AG(a) | | | 100 | | | | 215,206 | |
| Nestle SA(a) | | | 643,592 | | | | 25,035,993 | |
| | | | | | | | | |
| | | | | | | | 25,760,472 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.1%(a) |
| Nobel Biocare Holding AG(b) | | | 20,382 | | | | 350,257 | |
| Sonova Holding AG | | | 8,966 | | | | 372,671 | |
| Straumann Holding AG(b) | | | 1,000 | | | | 169,763 | |
| | | | | | | | | |
| | | | | | | | 892,691 | |
| | | | | | | | | |
Insurance 0.6%(a) |
| Baloise Holding AG | | | 8,397 | | | | 449,097 | |
| Swiss Life Holding AG | | | 5,803 | | | | 523,066 | |
| Swiss Reinsurance | | | 57,614 | | | | 2,403,544 | |
| Zurich Financial Services AG | | | 23,832 | | | | 4,836,648 | |
| | | | | | | | | |
| | | | | | | | 8,212,355 | |
| | | | | | | | | |
Life Sciences Tools & Services 0.1%(a) |
| Lonza Group AG | | | 8,502 | | | | 705,849 | |
| | | | | | | | | |
Machinery 0.1%(a) |
| OC Oerlikon Corp. AG*(b) | | | 1,126 | | | | 87,359 | |
| Schindler Holding AG | | | 6,813 | | | | 295,048 | |
| Sulzer AG | | | 5,209 | | | | 307,645 | |
| | | | | | | | | |
| | | | | | | | 690,052 | |
| | | | | | | | | |
Marine 0.0%(a) (b) |
| Kuehne & Nagel International AG | | | 7,590 | | | | 459,700 | |
| | | | | | | | | |
Pharmaceuticals 2.9%(a) |
| Novartis AG | | | 389,565 | | | | 19,780,369 | |
| Roche Holding AG | | | 115,033 | | | | 17,597,704 | |
| | | | | | | | | |
| | | | | | | | 37,378,073 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.2% |
| Compagnie Financiere Richemont SA | | | 85,469 | | | | 1,797,407 | |
| Swatch Group AG — Chi — X Europe Exchange(a)(b) | | | 5,183 | | | | 809,056 | |
| Swatch Group AG — Swiss Exchange(a) | | | 6,449 | | | | 184,732 | |
| | | | | | | | | |
| | | | | | | | 2,791,195 | |
| | | | | | | | | |
| | | | | | | | 108,459,578 | |
| | | | | | | | | |
| |
| |
UNITED KINGDOM 21.1%(a) |
Aerospace & Defense 0.4% |
| BAE Systems PLC | | | 563,470 | | | | 3,166,579 | |
| Cobham PLC | | | 198,852 | | | | 604,219 | |
| Meggitt PLC | | | 134,757 | | | | 295,152 | |
| Rolls-Royce Group PLC | | | 291,634 | | | | 1,542,686 | |
| | | | | | | | | |
| | | | | | | | 5,608,636 | |
| | | | | | | | | |
Airline 0.0% |
| British Airways PLC | | | 90,070 | | | | 199,255 | |
| | | | | | | | | |
Auto Components 0.0% |
| GKN PLC | | | 121,913 | | | | 233,722 | |
| | | | | | | | | |
Beverages 0.7% |
| Diageo PLC | | | 408,563 | | | | 6,233,572 | |
| SABMiller PLC | | | 143,941 | | | | 2,285,848 | |
| | | | | | | | | |
| | | | | | | | 8,519,420 | |
| | | | | | | | | |
Capital Markets 0.2% |
| 3i Group PLC | | | 67,961 | | | | 592,666 | |
| ICAP PLC | | | 84,272 | | | | 419,833 | |
| Investec PLC | | | 51,267 | | | | 194,652 | |
| Man Group PLC | | | 275,029 | | | | 1,587,541 | |
| Schroders PLC | | | 14,441 | | | | 185,090 | |
| | | | | | | | | |
| | | | | | | | 2,979,782 | |
| | | | | | | | | |
Chemicals 0.0% |
| Johnson Matthey PLC | | | 34,966 | | | | 526,151 | |
| | | | | | | | | |
Commercial Banks 2.9% |
| Barclays PLC | | | 1,304,132 | | | | 3,737,617 | |
| HBOS PLC | | | 874,616 | | | | 1,431,820 | |
| HSBC Holdings PLC | | | 1,922,384 | | | | 22,764,349 | |
| Lloyds TSB Group PLC | | | 963,553 | | | | 3,113,651 | |
| Royal Bank of Scotland Group PLC | | | 2,646,964 | | | | 2,915,063 | |
| Standard Chartered PLC | | | 227,461 | | | | 3,758,465 | |
| | | | | | | | | |
| | | | | | | | 37,720,965 | |
| | | | | | | | | |
Commercial Services & Supplies 0.2% |
| Capita Group PLC (The) | | | 96,619 | | | | 998,153 | |
| G4S PLC | | | 202,103 | | | | 611,980 | |
| Hays PLC | | | 248,348 | | | | 272,587 | |
| Rentokil Initial PLC | | | 300,661 | | | | 218,471 | |
| Serco Group PLC | | | 67,474 | | | | 402,302 | |
| | | | | | | | | |
| | | | | | | | 2,503,493 | |
| | | | | | | | | |
| | | | | | | | | |
Construction & Engineering 0.0% |
| Balfour Beatty PLC | | | 62,283 | | | | 251,637 | |
| | | | | | | | | |
Containers & Packaging 0.1% |
| Rexam PLC | | | 108,877 | | | | 655,934 | |
| | | | | | | | | |
Distributors 0.0% |
| Inchcape PLC | | | 58,610 | | | | 74,716 | |
| | | | | | | | | |
Diversified Financial Services 0.0% |
| London Stock Exchange Group PLC | | | 30,384 | | | | 275,592 | |
| | | | | | | | | |
2008 Annual Report 57
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
UNITED KINGDOM (continued) |
| | | | | | | | | |
| | | | | | | | | |
Diversified Telecommunication Services 0.3% |
| BT Group PLC | | | 1,237,554 | | | $ | 2,324,933 | |
| Cable & Wireless PLC | | | 404,499 | | | | 801,543 | |
| | | | | | | | | |
| | | | | | | | 3,126,476 | |
| | | | | | | | | |
Electric Utilities 0.4% |
| British Energy Group PLC | | | 165,560 | | | | 1,979,833 | |
| Scottish & Southern Energy PLC | | | 139,337 | | | | 2,730,671 | |
| | | | | | | | | |
| | | | | | | | 4,710,504 | |
| | | | | | | | | |
Energy Equipment & Services 0.0% |
| AMEC PLC | | | 52,667 | | | | 440,549 | |
| | | | | | | | | |
Food & Staples Retailing 0.7% |
| J Sainsbury PLC | | | 165,455 | | | | 755,668 | |
| Tesco PLC | | | 1,257,473 | | | | 6,888,387 | |
| WM Morrison Supermarkets PLC | | | 383,546 | | | | 1,632,772 | |
| | | | | | | | | |
| | | | | | | | 9,276,827 | |
| | | | | | | | | |
Food Products 0.6% |
| Associated British Foods PLC | | | 55,793 | | | | 624,164 | |
| Cadbury PLC | | | 216,965 | | | | 1,991,801 | |
| Tate & Lyle PLC | | | 81,699 | | | | 485,597 | |
| Unilever PLC | | | 207,914 | | | | 4,669,980 | |
| | | | | | | | | |
| | | | | | | | 7,771,542 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.1% |
| Smith & Nephew PLC | | | 142,154 | | | | 1,301,336 | |
| | | | | | | | | |
Hotels, Restaurants & Leisure 0.3% |
| Carnival PLC | | | 26,358 | | | | 579,530 | |
| Compass Group PLC | | | 296,797 | | | | 1,379,842 | |
| Enterprise Inns PLC | | | 82,872 | | | | 130,476 | |
| Intercontinental Hotels Group PLC | | | 41,751 | | | | 354,380 | |
| Ladbrokes PLC | | | 119,578 | | | | 304,670 | |
| Mitchells & Butlers PLC | | | 69,102 | | | | 174,895 | |
| Thomas Cook Group PLC | | | 58,304 | | | | 158,136 | |
| TUI Travel PLC | | | 73,765 | | | | 225,117 | |
| Whitbread PLC | | | 28,034 | | | | 406,229 | |
| William Hill PLC | | | 58,731 | | | | 180,542 | |
| | | | | | | | | |
| | | | | | | | 3,893,817 | |
| | | | | | | | | |
Household Durables 0.0% |
| Berkeley Group Holdings PLC* | | | 8,142 | | | | 98,011 | |
| Persimmon PLC | | | 49,017 | | | | 237,253 | |
| | | | | | | | | |
| | | | | | | | 335,264 | |
| | | | | | | | | |
Household Products 0.3% |
| Reckitt Benckiser Group PLC | | | 96,516 | | | | 4,081,751 | |
| | | | | | | | | |
Independent Power Producers & Energy Traders 0.1% |
| Drax Group PLC | | | 55,054 | | | | 511,470 | |
| International Power PLC | | | 241,261 | | | | 862,930 | |
| | | | | | | | | |
| | | | | | | | 1,374,400 | |
| | | | | | | | | |
Industrial Conglomerates 0.1% |
| Smiths Group PLC | | | 62,071 | | | | 799,036 | |
| Tomkins PLC | | | 151,866 | | | | 278,691 | |
| | | | | | | | | |
| | | | | | | | 1,077,727 | |
| | | | | | | | | |
Information Technology Services 0.0% |
| Logica PLC | | | 236,462 | | | | 263,185 | |
| | | | | | | | | |
Insurance 0.7% |
| Aviva PLC | | | 423,475 | | | | 2,525,502 | |
| Friends Provident PLC | | | 363,418 | | | | 416,639 | |
| Legal & General Group PLC | | | 966,734 | | | | 1,111,599 | |
| Old Mutual PLC | | | 799,981 | | | | 647,665 | |
| Prudential PLC | | | 398,735 | | | | 2,002,560 | |
| RSA Insurance Group PLC | | | 520,870 | | | | 1,158,086 | |
| Standard Life PLC | | | 352,563 | | | | 1,364,496 | |
| | | | | | | | | |
| | | | | | | | 9,226,547 | |
| | | | | | | | | |
Internet & Catalog Retail 0.0% |
| Home Retail Group PLC | | | 143,369 | | | | 456,860 | |
| | | | | | | | | |
Machinery 0.0% |
| IMI PLC | | | 43,571 | | | | 193,598 | |
| Invensys PLC* | | | 126,108 | | | | 316,163 | |
| | | | | | | | | |
| | | | | | | | 509,761 | |
| | | | | | | | | |
Media 0.5% |
| British Sky Broadcasting Group PLC | | | 181,788 | | | | 1,106,013 | |
| Daily Mail & General Trust, Class A | | | 34,990 | | | | 164,732 | |
| ITV PLC | | | 560,647 | | | | 270,715 | |
| Pearson PLC | | | 129,459 | | | | 1,289,182 | |
| Reed Elsevier PLC | | | 177,063 | | | | 1,553,282 | |
| Thomson Reuters PLC | | | 30,234 | | | | 523,748 | |
| United Business Media Ltd. | | | 48,671 | | | | 316,647 | |
| WPP Group PLC | | | 178,373 | | | | 1,066,759 | |
| | | | | | | | | |
| | | | | | | | 6,291,078 | |
| | | | | | | | | |
Metals & Mining 1.7% |
| Anglo American PLC | | | 211,697 | | | | 5,310,629 | |
| Antofagasta PLC | | | 61,722 | | | | 381,265 | |
| BHP Billiton PLC | | | 353,405 | | | | 5,999,748 | |
| Eurasian Natural Resources Corp. | | | 52,685 | | | | 263,445 | |
| | | | | | | | | |
| Kazakhmys PLC | | | 32,271 | | | | 151,270 | |
| Lonmin PLC | | | 25,395 | | | | 473,520 | |
| Rio Tinto PLC | | | 159,801 | | | | 7,463,080 | |
| Vedanta Resources PLC | | | 22,688 | | | | 314,138 | |
| Xstrata PLC | | | 101,427 | | | | 1,734,475 | |
| | | | | | | | | |
| | | | | | | | 22,091,570 | |
| | | | | | | | | |
Multi-Utility 0.7% |
| Centrica PLC | | | 590,242 | | | | 2,899,734 | |
| National Grid PLC | | | 400,364 | | | | 4,509,199 | |
| United Utilities Group PLC | | | 109,123 | | | | 1,231,958 | |
| | | | | | | | | |
| | | | | | | | 8,640,891 | |
| | | | | | | | | |
58 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
UNITED KINGDOM (continued) |
| | | | | | | | | |
| | | | | | | | | |
Multiline Retail 0.1% |
| Marks & Spencer Group PLC | | | 253,541 | | | $ | 898,655 | |
| Next PLC | | | 32,194 | | | | 547,087 | |
| | | | | | | | | |
| | | | | | | | 1,445,742 | |
| | | | | | | | | |
Oil, Gas & Consumable Fuels 4.8% |
| BG Group PLC | | | 535,663 | | | | 7,874,707 | |
| BP PLC | | | 3,015,670 | | | | 24,577,016 | |
| Cairn Energy PLC* | | | 20,980 | | | | 543,428 | |
| Royal Dutch Shell PLC, Class A | | | 567,974 | | | | 15,601,664 | |
| Royal Dutch Shell PLC, Class B | | | 438,749 | | | | 11,892,761 | |
| Tullow Oil PLC | | | 115,266 | | | | 978,699 | |
| | | | | | | | | |
| | | | | | | | 61,468,275 | |
| | | | | | | | | |
Paper & Forest Products 0.0% |
| Mondi PLC | | | 64,692 | | | | 234,741 | |
| | | | | | | | | |
Pharmaceuticals 2.2% |
| AstraZeneca PLC | | | 233,169 | | | | 9,879,274 | |
| GlaxoSmithKline PLC | | | 876,669 | | | | 16,849,506 | |
| Shire Ltd. | | | 89,641 | | | | 1,174,375 | |
| | | | | | | | | |
| | | | | | | | 27,903,155 | |
| | | | | | | | | |
Real Estate Investment Trusts 0.3% |
| British Land Co. PLC | | | 81,817 | | | | 815,674 | |
| Hammerson PLC | | | 47,166 | | | | 543,499 | |
| Land Securities Group PLC | | | 75,429 | | | | 1,338,639 | |
| Liberty International PLC | | | 40,859 | | | | 454,528 | |
| Segro PLC | | | 74,031 | | | | 334,146 | |
| | | | | | | | | |
| | | | | | | | 3,486,486 | |
| | | | | | | | | |
Road & Rail 0.1% |
| Firstgroup PLC | | | 81,880 | | | | 540,221 | |
| National Express Group PLC | | | 26,931 | | | | 248,035 | |
| Stagecoach Group PLC | | | 68,356 | | | | 205,200 | |
| | | | | | | | | |
| | | | | | | | 993,456 | |
| | | | | | | | | |
Software 0.1% |
| Sage Group PLC | | | 212,829 | | | | 595,697 | |
| | | | | | | | | |
Specialty Retail 0.1% |
| Carphone Warehouse Group PLC | | | 53,270 | | | | 115,621 | |
| Kingfisher PLC | | | 383,321 | | | | 707,364 | |
| | | | | | | | | |
| | | | | | | | 822,985 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 0.0% |
| Burberry Group PLC | | | 78,375 | | | | 348,741 | |
| | | | | | | | | |
Tobacco 0.9% |
| British American Tobacco PLC | | | 271,890 | | | | 7,456,187 | |
| Imperial Tobacco Group PLC | | | 162,726 | | | | 4,360,388 | |
| | | | | | | | | |
| | | | | | | | 11,816,575 | |
| | | | | | | | | |
Trading Companies & Distributors 0.1% |
| Bunzl PLC | | | 59,826 | | | | 601,388 | |
| Wolseley PLC | | | 107,434 | | | | 587,824 | |
| | | | | | | | | |
| | | | | | | | 1,189,212 | |
| | | | | | | | | |
Water Utility 0.1% |
| Severn Trent PLC | | | 37,513 | | | | 828,987 | |
| | | | | | | | | |
Wireless Telecommunication Services 1.3% |
| Vodafone Group PLC | | | 8,509,744 | | | | 16,366,887 | |
| | | | | | | | | |
| | | | | | | | 271,920,327 | |
| | | | | | | | | |
| |
| |
UNITED STATES 0.1%(a) |
Health Care Equipment & Supplies 0.1% |
| Synthes, Inc. | | | 9,716 | | | | 1,254,209 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 1,259,351,104 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Preferred Stocks 0.4%(a) |
| | | | | | | | | |
| | | | | | | | | |
GERMANY 0.4% |
Automobiles 0.2% |
| Bayerische Motoren Werke AG | | | 8,063 | | | | 160,767 | |
| Porsche Automobil Holding SE(b) | | | 14,300 | | | | 1,260,802 | |
| Volkswagen AG | | | 17,325 | | | | 1,098,848 | |
| | | | | | | | | |
| | | | | | | | 2,520,417 | |
| | | | | | | | | |
Health Care Equipment & Supplies 0.1% |
| Fresenius SE | | | 12,430 | | | | 793,366 | |
| | | | | | | | | |
Household Products 0.1% |
| Henkel AG & Co. KGaA | | | 31,816 | | | | 909,570 | |
| | | | | | | | | |
Media 0.0% |
| ProSiebenSat.1 Media AG | | | 13,637 | | | | 42,079 | |
| | | | | | | | | |
Multi-Utility 0.0% |
| RWE AG | | | 5,309 | | | | 330,071 | |
| | | | | | | | | |
| | | | | | | | 4,595,503 | |
| | | | | | | | | |
| |
| |
ITALY 0.0% |
Diversified Financial Services (0.0%) |
| Istituto Finanziario Industriale SpA* | | | 5,300 | | | | 46,269 | |
| | | | | | | | | |
Insurance 0.0% |
| Unipol Gruppo Finanziario SpA | | | 104,302 | | | | 114,456 | |
| | | | | | | | | |
| | | | | | | | 160,725 | |
| | | | | | | | | |
| | | | | |
Total Preferred Stocks | | | 4,756,228 | |
| | | | | |
| | | | | | | | | |
2008 Annual Report 59
Statement of Investments (Continued)
October 31, 2008
Nationwide International Index Fund (Continued)
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Fund 0.1% |
| | | | | | | | | |
| | | | Shares or
Principal Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
UNITED STATES 0.1% |
| iShares MSCI EAFE Index Fund | | | 26,360 | | | $ | 1,176,183 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Rights 0.0% |
| | | | | | | | | |
| | | | | | | | | |
AUSTRALIA 0.0% |
Real Estate Investment Trusts 0.0% |
| Goodman Group 11/24/08 | | | 111,659 | | | | 2,596 | |
| GPT Group 12/03/08 | | | 374,161 | | | | 185,174 | |
| | | | | | | | | |
| | | | | | | | 187,770 | |
| | | | | | | | | |
| |
| |
BELGIUM 0.0%(a) (c) |
Diversified Financial Services 0.0% |
| Fortis 07/02/14 | | | 368,527 | | | | 0 | |
| | | | | | | | | |
ITALY 0.0% |
Aerospace & Defense 0.0% |
| Finmeccanica SpA 11/14/08 | | | 48,247 | | | | 19,676 | |
| | | | | | | | | |
| | | | | |
Total Rights | | | 207,446 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Warrants 0.0%(a) (c) |
| | | | | | | | | |
| | | | | | | | | |
JAPAN 0.0% |
Metals & Mining 0.0% |
| Dowa Holdings Co. Ltd., expiring 01/29/10 | | | 67,800 | | | | 0 | |
| | | | | | | | | |
| | | | | |
Total Warrants | | | 0 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreements 9.8% |
| | | | | | | | | |
| Barclays Capital, 0.25%, dated 10/31/08, due 11/03/08, repurchase price $124,308,814 collateralized by U.S. Government Agency Mortgages ranging 0.00% — 5.40%, maturing 03/31/09 — 12/14/22; total market value of $126,792,347(d) | | $ | 124,306,224 | | | | 124,306,224 | |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $2,294,889, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $2,340,771 | | | 2,294,874 | | | | 2,294,874 | �� |
| | | | | | | | | |
| | | | | |
Total Repurchase Agreements | | | 126,601,098 | |
| | | | | |
| | | | | |
Total Investments (Cost $1,776,609,602) (e) — 108.0% | | | 1,392,092,059 | |
Liabilities in excess of other assets — (8.0)% | | | | | | | (103,609,413 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 1,288,482,646 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | Fair Valued Security. |
| |
| (b) | | The security or a partial position of this security is on loan at October 31, 2008. The total value of securities on loan at October 31, 2008 was $118,463,375. |
| |
| (c) | | Illiquid security. |
| |
| (d) | | The security was purchased with cash collateral held from securities on loan (See Note 2). The total value of this security as of October 31, 2008 was $124,306,224. |
| |
| (e) | | See notes to financial statements for tax unrealized appreciation/ (depreciation) of securities. |
| | |
| FDR | | Fiduciary Depositary Receipts |
| |
| PPS | | Price Protected Shares |
| |
| REIT | | Real Estate Investment Trust |
| |
| SDR | | Swedish Depositary Receipts |
The accompanying notes are an integral part of these financial statements.
60 Annual Report 2008
At October 31, 2008, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Net Unrealized
|
| | | Delivery
| | Currency
| | Contract
| | Market
| | Appreciation/
|
| Currency | | Date | | (Delivered) | | Value | | Value | | (Depreciation) |
| |
Short Contracts: | | | | | | | | | | | | | | | | | | |
| Australia Dollar | | 11/14/08 | | $ | (2,250,000 | ) | | $ | (1,882,979 | ) | | $ | (1,492,526 | ) | | $ | 390,453 | |
| British Pound | | 11/14/08 | | | (3,131,000 | ) | | | (5,604,805 | ) | | | (5,033,130 | ) | | | 571,675 | |
| Euro | | 11/14/08 | | | (6,721,800 | ) | | | (9,468,612 | ) | | | (8,561,206 | ) | | | 907,406 | |
| Hong Kong Dollar | | 11/14/08 | | | (2,368,700 | ) | | | (305,566 | ) | | | (305,654 | ) | | | (88 | ) |
| Japanese Yen | | 11/14/08 | | | (813,328,000 | ) | | | (7,688,331 | ) | | | (8,262,826 | ) | | | (574,495 | ) |
| Swedish Krone | | 11/14/08 | | | (3,299,000 | ) | | | (490,144 | ) | | | (425,185 | ) | | | 64,959 | |
| | | | | | | | | | | | | | | | | | | |
| Total Short Contracts | | $ | (25,440,437 | ) | | $ | (24,080,527 | ) | | $ | 1,359,910 | |
| | | | | | | | | | | | | |
Long Contracts: | | | | | | | | | | | | | | | | | | |
| Australia Dollar | | 11/14/08 | | $ | 2,950,100 | | | $ | 2,232,660 | | | $ | 1,956,934 | | | $ | (275,726 | ) |
| British Pound | | 11/14/08 | | | 4,469,500 | | | | 7,968,085 | | | | 7,184,789 | | | | (783,296 | ) |
| Euro | | 11/14/08 | | | 8,086,300 | | | | 11,584,543 | | | | 10,299,099 | | | | (1,285,446 | ) |
| Japanese Yen | | 11/14/08 | | | 822,542,600 | | | | 7,683,706 | | | | 8,356,440 | | | | 672,734 | |
| Swedish Krone | | 11/14/08 | | | 3,960,000 | | | | 619,138 | | | | 510,377 | | | | (108,761 | ) |
| | | | | | | | | | | | | | | | | | | |
| Total Long Contracts | | $ | 30,088,132 | | | $ | 28,307,639 | | | $ | (1,780,495 | ) |
| | | | | | | | | | | | | |
As of October 31, 2008, the Fund’s open futures contracts were as follows:
| | | | | | | | | | | | | | | |
| | | | | | | Notional Value
| | Unrealized
|
Number of
| | | | | | Covered by
| | Appreciation/
|
| Contracts | | Long Contracts* | | Expiration | | Contracts | | Depreciation |
| |
| 24 | | SPI 200 Index | | | 12/19/08 | | | $ | 1,608,673 | | | ($ | 89,493 | ) |
| 9 | | CAC40 10 Euro | | | 12/19/08 | | | | 397,595 | | | | 31,269 | |
| 3 | | DAX Index | | | 12/19/08 | | | | 484,115 | | | | 2,166 | |
| 62 | | DJ Euro STOXX 50 | | | 12/19/08 | | | | 2,048,020 | | | | 24,113 | |
| 6 | | IBEX 35 Index | | | 11/24/08 | | | | 688,140 | | | | (1,766 | ) |
| 2 | | S&P/MIB IDEM Index | | | 12/19/08 | | | | 270,390 | | | | (29,968 | ) |
| 5 | | Hang Seng Index | | | 11/28/08 | | | | 449,366 | | | | 51,223 | |
| 73 | | Topix Index | | | 12/15/08 | | | | 6,329,780 | | | | (659,283 | ) |
| 50 | | OMXS30 Index | | | 11/30/08 | | | | 408,888 | | | | 10,256 | |
| 78 | | FTSE 100 Index | | | 12/19/08 | | | | 5,495,141 | | | | 128,647 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | $ | 18,180,108 | | | ($ | 532,836 | ) |
| | | | | | | | | | | | | | | |
| | |
| * | | Cash pledged as collateral. |
The accompanying notes are an integral part of the financial statements.
2008 Annual Report 61
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide International Index
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $1,650,008,504)* | | | $ | 1,265,490,961 | |
| Repurchase agreements, at value and cost | | | | 126,601,098 | |
| | | | | | |
| Total Investments | | | | 1,392,092,059 | |
| | | | | | |
| Cash collateral pledged for futures | | | | 2,254,000 | |
| Foreign currency, at value (cost $11,932,852) | | | | 11,658,931 | |
| Unrealized appreciation on forward foreign currency contracts | | | | 2,655,711 | |
| Interest and dividends receivable | | | | 4,048,856 | |
| Receivable for capital shares issued | | | | 527,186 | |
| Receivable for investments sold | | | | 1,306,987 | |
| Reclaims receivable | | | | 853,244 | |
| Prepaid expenses and other assets | | | | 3,062,215 | |
| | | | | | |
| Total Assets | | | | 1,418,459,189 | |
| | | | | | |
Liabilities: | | | | | |
| Payable to custodian | | | | 1,377,161 | |
| Unrealized depreciation on forward foreign currency contracts | | | | 3,076,296 | |
| Payable for capital shares redeemed | | | | 294,420 | |
| Payable upon return of securities loaned (Note 2) | | | | 124,306,224 | |
| Payable for variation margin on futures contracts | | | | 177,140 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 304,959 | |
| Fund administration fees | | | | 136,738 | |
| Distribution fees | | | | 57,082 | |
| Trustee fees | | | | 6,691 | |
| Compliance program costs (Note 3) | | | | 8,067 | |
| Custodian fees | | | | 31,488 | |
| Other | | | | 200,277 | |
| | | | | | |
| Total Liabilities | | | | 129,976,543 | |
| | | | | | |
Net Assets | | | $ | 1,288,482,646 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 1,543,365,460 | |
| Accumulated undistributed net investment income | | | | 11,705,792 | |
| Accumulated net realized gains from investment and foreign currency transactions | | | | 119,137,306 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (384,517,543 | ) |
| Net unrealized appreciation/(depreciation) from futures | | | | (532,836 | ) |
| Net unrealized appreciation/(depreciation) from foreign currency contracts | | | | (420,585 | ) |
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | | | | (254,948 | ) |
| | | | | | |
Net Assets | | | $ | 1,288,482,646 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 256,105,481 | |
| Class B Shares | | | | 356,467 | |
| Class C Shares | | | | 724,073 | |
| Class R Shares | | | | 6,038 | |
| Institutional Class Shares | | | | 1,031,290,587 | |
| | | | | | |
| Total | | | $ | 1,288,482,646 | |
| | | | | | |
| |
| * | Includes value of securities on loan of and $118,463,375 (Note 2). |
The accompanying notes are an integral part of these financial statements.
62 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide International Index
| |
| | | | Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 40,437,372 | |
| Class B Shares | | | | 57,314 | |
| Class C Shares | | | | 118,656 | |
| Class R Shares | | | | 954 | |
| Institutional Class Shares | | | | 162,411,242 | |
| | | | | | |
| Total | | | | 203,025,538 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 6.33 | |
| Class B Shares (a) | | | $ | 6.21 | (c) |
| Class C Shares (b) | | | $ | 6.10 | |
| Class R Shares | | | $ | 6.32 | (c) |
| Institutional Class Shares | | | $ | 6.35 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 6.72 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 63
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | International Index
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 333,454 | |
| Dividend income | | | | 75,816,993 | |
| Income from securities lending (Note 2) | | | | 3,054,966 | |
| Foreign tax withholding | | | | (6,342,466 | ) |
| | | | | | |
| Total Income | | | | 72,862,947 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 5,511,610 | |
| Fund administration fees | | | | 2,016,535 | |
| Distribution fees Class A | | | | 645,518 | |
| Distribution fees Class B | | | | 5,868 | |
| Distribution fees Class C | | | | 13,649 | |
| Distribution fees Class R | | | | 12 | |
| Administrative servicing fees Class A | | | | 292,642 | |
| Administrative servicing fees Class R | | | | 1 | |
| Registration and filing fees | | | | 9,443 | |
| Professional fees | | | | 308,476 | |
| Printing fees | | | | 56,341 | |
| Trustee fees | | | | 111,879 | |
| Custodian fees | | | | 223,218 | |
| Other | | | | 394,172 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 9,589,364 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (7,190 | ) |
| Expenses reimbursed by Advisor | | | | (1,015,839 | ) |
| Administrator fees voluntarily waived | | | | (807 | ) |
| | | | | | |
| Net Expenses | | | | 8,565,528 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 64,297,419 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 139,346,226 | |
| Net realized losses from futures transactions | | | | (12,640,805 | ) |
| Net realized gains from foreign currency transactions | | | | 1,537,522 | |
| | | | | | |
| Net realized gains from investments, futures and foreign currency transactions | | | | 128,242,943 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,329,682,081 | ) |
| Net change in unrealized appreciation/(depreciation) from futures | | | | (655,911 | ) |
| Net change in unrealized appreciation/(depreciation) from foreign currency contracts | | | | (1,397,352 | ) |
| Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | | | | (530,765 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments, futures, foreign currency contracts and translation of assets and liabilities denominated in foreign currencies | | | | (1,332,266,109 | ) |
| | | | | | |
| Net realized/unrealized losses from investments, futures and foreign currency transactions | | | | (1,024,023,166 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (1,139,725,747 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
64 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide International Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 64,297,419 | | | | $ | 62,163,527 | |
| Net realized gains from investment, futures and foreign currency transactions | | | | 128,242,943 | | | | | 69,485,968 | |
| Net change in unrealized appreciation/(depreciation) from investments, futures and translation of assets and liabilities denominated in foreign currencies | | | | (1,332,266,109 | ) | | | | 405,610,370 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (1,139,725,747 | ) | | | | 537,259,865 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (8,067,405 | ) | | | | (3,527,986 | ) |
| Class B | | | | (15,885 | ) | | | | (10,475 | ) |
| Class C | | | | (37,988 | ) | | | | (19,317 | ) |
| Class R | | | | (83 | ) | | | | (13 | )(a) |
| Institutional Class | | | | (66,046,009 | ) | | | | (55,131,236 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (5,912,646 | ) | | | | (3,326,613 | ) |
| Class B | | | | (18,506 | ) | | | | (17,346 | ) |
| Class C | | | | (45,457 | ) | | | | (23,768 | ) |
| Class R | | | | (30 | ) | | | | – | |
| Institutional Class | | | | (59,206,432 | ) | | | | (54,100,254 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (139,350,441 | ) | | | | (116,157,008 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (92,847,795 | ) | | | | 233,854,600 | |
| | | | | | | | | | | |
| Change in net assets | | | | (1,371,923,983 | ) | | | | 654,957,457 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 2,660,406,629 | | | | | 2,005,449,172 | |
| | | | | | | | | | | |
| End of period | | | $ | 1,288,482,646 | | | | $ | 2,660,406,629 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 11,705,792 | | | | $ | 21,058,824 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 270,373,904 | | | | $ | 123,846,152 | |
| Dividends reinvested | | | | 13,862,259 | | | | | 6,799,456 | |
| Cost of shares redeemed (b) | | | | (59,576,624 | ) | | | | (31,892,340 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 224,659,539 | | | | | 98,753,268 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 21,163 | | | | | 37,578 | |
| Dividends reinvested | | | | 28,362 | | | | | 21,930 | |
| Cost of shares redeemed | | | | (41,457 | ) | | | | (64,657 | ) |
| | | | | | | | | | | |
| Total Class B | | | | 8,068 | | | | | (5,149 | ) |
| | | | | | | | | | | |
| |
| (a) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007.
|
| |
| (b) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 65
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide International Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 259,018 | | | | $ | 904,889 | |
| Dividends reinvested | | | | 51,518 | | | | | 20,552 | |
| Cost of shares redeemed | | | | (429,039 | ) | | | | (120,532 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (118,503 | ) | | | | 804,909 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 8,000 | | | | | 1,000 | (a) |
| Dividends reinvested | | | | 113 | | | | | 13 | (a) |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class R | | | | 8,113 | | | | | 1,013 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 272,570,136 | | | | | 229,072,717 | |
| Dividends reinvested | | | | 125,250,333 | | | | | 109,231,066 | |
| Cost of shares redeemed (b) | | | | (715,225,481 | ) | | | | (204,003,224 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | (317,405,012 | ) | | | | 134,300,559 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (92,847,795 | ) | | | $ | 233,854,600 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 26,530,083 | | | | | 10,898,058 | |
| Reinvested | | | | 1,330,513 | | | | | 612,155 | |
| Redeemed | | | | (5,910,974 | ) | | | | (2,786,678 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 21,949,622 | | | | | 8,723,535 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 2,117 | | | | | 3,441 | |
| Reinvested | | | | 2,685 | | | | | 2,027 | |
| Redeemed | | | | (5,104 | ) | | | | (5,864 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (302 | ) | | | | (396 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 25,543 | | | | | 83,227 | |
| Reinvested | | | | 4,950 | | | | | 1,913 | |
| Redeemed | | | | (48,673 | ) | | | | (10,678 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (18,180 | ) | | | | 74,462 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 850 | | | | | 91 | (a) |
| Reinvested | | | | 12 | | | | | 1 | (a) |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class R Shares | | | | 862 | | | | | 92 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 29,672,868 | | | | | 20,351,913 | |
| Reinvested | | | | 11,716,850 | | | | | 9,841,617 | |
| Redeemed | | | | (70,889,053 | ) | | | | (17,405,187 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | (29,499,335 | ) | | | | 12,788,343 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (7,567,333 | ) | | | | 21,586,036 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
66 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide International Index Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | �� | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 12 | .60 | | | | 0 | .24 | | | | (5 | .86) | | | | (5 | .62) | | | | (0 | .33) | | | | (0 | .32) | | | | (0 | .65) | | | $ | 6 | .33 | | | | (46 | .65%) | | | $ | 256,105,481 | | | | | 0 | .73% | | | | 2 | .53% | | | | 0 | .79% | | | | 12 | .76% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .59 | | | | 0 | .24 | | | | 2 | .32 | | | | 2 | .56 | | | | (0 | .25) | | | | (0 | .30) | | | | (0 | .55) | | | $ | 12 | .60 | | | | 24 | .91% | | | $ | 232,958,284 | | | | | 0 | .79% | | | | 2 | .27% | | | | 0 | .81% | | | | 6 | .15% | | |
| Year Ended October 31, 2006 | | | $ | 8 | .69 | | | | 0 | .16 | | | | 2 | .11 | | | | 2 | .27 | | | | (0 | .12) | | | | (0 | .25) | | | | (0 | .37) | | | $ | 10 | .59 | | | | 26 | .89% | | | $ | 103,403,038 | | | | | 0 | .76% | | | | 1 | .95% | | | | 0 | .80% | | | | 8 | .66% | | |
| Year Ended October 31, 2005 | | | $ | 7 | .63 | | | | 0 | .16 | | | | 1 | .18 | | | | 1 | .34 | | | | (0 | .20) | | | | (0 | .08) | | | | (0 | .28) | | | $ | 8 | .69 | | | | 17 | .83% | | | $ | 40,558,775 | | | | | 0 | .76% | | | | 1 | .81% | | | | 0 | .83% | | | | 12 | .24% | | |
| Year Ended October 31, 2004 | | | $ | 6 | .55 | | | | 0 | .10 | | | | 1 | .07 | | | | 1 | .17 | | | | (0 | .09) | | | | – | | | | | (0 | .09) | | | $ | 7 | .63 | | | | 18 | .01% | | | $ | 34,183,174 | | | | | 0 | .76% | | | | 1 | .57% | | | | 0 | .82% | | | | 7 | .62% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 12 | .39 | | | | 0 | .22 | | | | (5 | .81) | | | | (5 | .59) | | | | (0 | .27) | | | | (0 | .32) | | | | (0 | .59) | | | $ | 6 | .21 | | | | (47 | .04%) | | | $ | 356,467 | | | | | 1 | .37% | | | | 2 | .18% | | | | 1 | .42% | | | | 12 | .76% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .42 | | | | 0 | .18 | | | | 2 | .27 | | | | 2 | .45 | | | | (0 | .18) | | | | (0 | .30) | | | | (0 | .48) | | | $ | 12 | .39 | | | | 24 | .18% | | | $ | 713,940 | | | | | 1 | .37% | | | | 1 | .62% | | | | 1 | .39% | | | | 6 | .15% | | |
| Year Ended October 31, 2006 | | | $ | 8 | .57 | | | | 0 | .13 | | | | 2 | .05 | | | | 2 | .18 | | | | (0 | .08) | | | | (0 | .25) | | | | (0 | .33) | | | $ | 10 | .42 | | | | 25 | .98% | | | $ | 604,517 | | | | | 1 | .37% | | | | 1 | .41% | | | | 1 | .41% | | | | 8 | .66% | | |
| Year Ended October 31, 2005 | | | $ | 7 | .54 | | | | 0 | .08 | | | | 1 | .19 | | | | 1 | .27 | | | | (0 | .16) | | | | (0 | .08) | | | | (0 | .24) | | | $ | 8 | .57 | | | | 17 | .17% | | | $ | 395,925 | | | | | 1 | .36% | | | | 1 | .14% | | | | 1 | .43% | | | | 12 | .24% | | |
| Year Ended October 31, 2004 | | | $ | 6 | .48 | | | | 0 | .06 | | | | 1 | .05 | | | | 1 | .11 | | | | (0 | .05) | | | | – | | | | | (0 | .05) | | | $ | 7 | .54 | | | | 17 | .21% | | | $ | 159,092 | | | | | 1 | .36% | | | | 0 | .98% | | | | 1 | .42% | | | | 7 | .62% | | |
2008 Annual Report 67
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide International Index Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 12 | .17 | | | | 0 | .21 | | | | (5 | .69) | | | | (5 | .48) | | | | (0 | .27) | | | | (0 | .32) | | | | (0 | .59) | | | $ | 6 | .10 | | | | (46 | .98%) | | | $ | 724,073 | | | | | 1 | .37% | | | | 2 | .17% | | | | 1 | .42% | | | | 12 | .76% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .25 | | | | 0 | .16 | | | | 2 | .25 | | | | 2 | .41 | | | | (0 | .19) | | | | (0 | .30) | | | | (0 | .49) | | | $ | 12 | .17 | | | | 24 | .22% | | | $ | 1,665,407 | | | | | 1 | .37% | | | | 1 | .69% | | | | 1 | .39% | | | | 6 | .15% | | |
| Year Ended October 31, 2006 | | | $ | 8 | .44 | | | | 0 | .11 | | | | 2 | .04 | | | | 2 | .15 | | | | (0 | .09) | | | | (0 | .25) | | | | (0 | .34) | | | $ | 10 | .25 | | | | 26 | .06% | | | $ | 639,287 | | | | | 1 | .37% | | | | 1 | .36% | | | | 1 | .41% | | | | 8 | .66% | | |
| Period Ended October 31, 2005 (g) | | | $ | 8 | .27 | | | | 0 | .09 | | | | 0 | .19 | | | | 0 | .28 | | | | (0 | .11) | | | | – | | | | | (0 | .11) | | | $ | 8 | .44 | | | | 3 | .63% | | | $ | 151,484 | | | | | 1 | .36% | | | | 1 | .57% | | | | 1 | .43% | | | | 12 | .24% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 12 | .60 | | | | 0 | .19 | | | | (5 | .83) | | | | (5 | .64) | | | | (0 | .32) | | | | (0 | .32) | | | | (0 | .64) | | | $ | 6 | .32 | | | | (46 | .76%) | | | $ | 6,038 | | | | | 0 | .85% | | | | 2 | .20% | | | | 0 | .88% | | | | 12 | .76% | | |
| Period Ended October 31, 2007 (f)(h) | | | $ | 10 | .96 | | | | 0 | .21 | | | | 1 | .57 | | | | 1 | .78 | | | | (0 | .14) | | | | – | | | | | (0 | .14) | | | $ | 12 | .60 | | | | 16 | .39% | | | $ | 1,164 | | | | | 0 | .76% | | | | 2 | .82% | | | | 0 | .77% | | | | 6 | .15% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 12 | .64 | | | | 0 | .33 | | | | (5 | .93) | | | | (5 | .60) | | | | (0 | .37) | | | | (0 | .32) | | | | (0 | .69) | | | $ | 6 | .35 | | | | (46 | .44%) | | | $ | 1,031,290,587 | | | | | 0 | .37% | | | | 3 | .21% | | | | 0 | .42% | | | | 12 | .76% | | |
| Year Ended October 31, 2007 (f) | | | $ | 10 | .61 | | | | 0 | .30 | | | | 2 | .32 | | | | 2 | .62 | | | | (0 | .29) | | | | (0 | .30) | | | | (0 | .59) | | | $ | 12 | .64 | | | | 25 | .49% | | | $ | 2,425,067,834 | | | | | 0 | .37% | | | | 2 | .62% | | | | 0 | .39% | | | | 6 | .15% | | |
| Year Ended October 31, 2006 | | | $ | 8 | .70 | | | | 0 | .22 | | | | 2 | .09 | | | | 2 | .31 | | | | (0 | .15) | | | | (0 | .25) | | | | (0 | .40) | | | $ | 10 | .61 | | | | 27 | .32% | | | $ | 1,900,802,330 | | | | | 0 | .37% | | | | 2 | .34% | | | | 0 | .41% | | | | 8 | .66% | | |
| Year Ended October 31, 2005 | | | $ | 7 | .64 | | | | 0 | .18 | | | | 1 | .19 | | | | 1 | .37 | | | | (0 | .23) | | | | (0 | .08) | | | | (0 | .31) | | | $ | 8 | .70 | | | | 18 | .26% | | | $ | 1,320,671,391 | | | | | 0 | .36% | | | | 2 | .17% | | | | 0 | .43% | | | | 12 | .24% | | |
| Year Ended October 31, 2004 | | | $ | 6 | .56 | | | | 0 | .12 | | | | 1 | .08 | | | | 1 | .20 | | | | (0 | .12) | | | | – | | | | | (0 | .12) | | | $ | 7 | .64 | | | | 18 | .43% | | | $ | 855,049,635 | | | | | 0 | .36% | | | | 1 | .99% | | | | 0 | .42% | | | | 7 | .62% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Per share calculations were performed using the average shares method. |
| (g) | For the period from February 14, 2005 (commencement of operations) through October 31, 2005. |
| (h) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
68 Annual Report 2008
| |
| Nationwide Mid Cap Market Index Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
The Fund seeks to match the performance of the Standard & Poor’s MidCap 400 (S&P 400) Index as closely as possible before the deduction of Fund expenses. For the annual period ended October 31, 2008, the Nationwide Mid Cap Market Index Fund (Class A at NAV) registered -36.87% versus -36.46% for its benchmark, the S&P 400 Index. For broader comparison, the average return for the Fund’s closest Lipper Inc. peer category of Mid-Cap Core Funds (consisting of 333 funds as of October 31, 2008) was -38.48% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
All 10 sectors represented in the benchmark index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included utilities, with -24.36%; consumer staples, with -27.03%; health care, with -30.08%; and financials, with -31.69%.
What areas of investment detracted from Fund performance?
The weakest-performing sectors during the reporting period were telecommunications services, with -59.99%; energy, with -44.71%; consumer discretionary, with -41.87%; and information technology, with -41.79%. All of these areas underperformed the broad market.
What is your outlook for the near term?
Many of the necessary conditions for a market bottom appear to be falling into place. Investor pessimism is widespread, equity valuations are attractive versus alternatives such as Treasuries, and a defining financial crisis has been followed by aggressive policy responses. In addition, a great deal of cash is on the sidelines and the sectors that underperformed the most during the last two months of the reporting period (financials and consumer discretionary) recently have outperformed.
The passage of the government rescue plan and the Federal Reserve Board’s lowering of the target federal funds interest rate by 250 basis points, or 2.50%, during the reporting period should help the market begin the healing process, but a sustained rally in equities will require evidence that the measures are working. In particular, if credit spreads – the difference in the yield between Treasury securities and other fixed-income assets – begin to narrow, it could signal a real and lasting bottom in equity markets.
Ultimately, the economic and financial outlook is likely to remain troubled for some time. The equity markets might enjoy a bounce in the near term, but it also would not be a surprise to see these markets fall back again as the reality of the looming economic challenges sets in.
Subadviser:
BlackRock Investment Management, LLC
Portfolio Managers:
Debra L. Jelilian and Jeffrey L. Russo, CFA
2008 Annual Report 69
| |
| Fund Performance | Nationwide Mid Cap Market Index Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC2 | | | -36.87% | | | | 1.23% | | | | 3.43% | | | | 0.76% | | | | 0.74% | |
| | | w/SC3 | | | -40.50% | | | | 0.04% | | | | 2.74% | | | | | | | | | |
| |
| |
Class B4 | | w/o SC2 | | | -37.36% | | | | 0.59% | | | | 2.86% | | | | 1.34% | | | | 1.32% | |
| | | w/SC5 | | | -40.36% | | | | 0.27% | | | | 2.86% | | | | | | | | | |
| |
| |
Class C6 | | w/o SC2 | | | -37.31% | | | | 0.61% | | | | 2.86% | | | | 1.34% | | | | 1.32% | |
| | | w/SC7 | | | -37.91% | | | | 0.61% | | | | 2.86% | | | | | | | | | |
| |
| |
Class R8,9 | | | | | -36.84% | | | | 1.24% | | | | 3.44% | | | | 1.04% | | | | 1.02% | |
| |
| |
Institutional Class8 | | | | | -36.63% | | | | 1.63% | | | | 3.87% | | | | 0.34% | | | | 0.32% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on December 29, 1999. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | These returns until the creation of Class B shares (5/25/01) include performance based on the Fund’s Class A shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B shares would have produced because Class B shares invest in the same portfolio of securities as Class A shares. The performance for this class has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class B shares would have been lower. |
| |
| 5 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 6 | | These returns until the creation of Class C shares (10/22/03) include the performance of the Fund’s Class A shares for the period through May 24, 2001 and the Fund’s Class B shares for the period from May 25, 2001 to October 21, 2003. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as the Fund’s other classes. The performance for the Class C shares has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class C shares would have been lower. |
| |
| 7 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 8 | | Not subject to any sales charges. |
| |
| 9 | | These returns until the creation of Class R shares (3/9/07) include performance based on the Fund’s Class A shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R shares has been restated to reflect differences in sales charges, but does not reflect the higher level of other fees applicable to such class; if these fees were reflected, the performance for Class R shares would have been lower. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Mid Cap Market Index Fund, the S&P MidCap 400 Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
70 Annual Report 2008
| | |
| (a) | | The S&P MidCap 400 Index is an unmanaged index that measures the performance of mid-sized U.S. companies. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 71
| |
| Shareholder | Nationwide Mid Cap Market Index Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Mid Cap Market Index Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 681.02 | | | | 2.74 | | | | 0.65 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.87 | | | | 3.30 | | | | 0.65 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 678.06 | | | | 5.91 | | | | 1.40 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.09 | | | | 7.13 | | | | 1.40 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 678.42 | | | | 5.56 | | | | 1.32 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.51 | | | | 6.71 | | | | 1.32 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 681.62 | | | | 1.91 | | | | 0.45 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.87 | | | | 2.30 | | | | 0.45 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 682.21 | | | | 1.32 | | | | 0.31 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.57 | | | | 1.59 | | | | 0.31 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
72 Annual Report 2008
| |
| Portfolio Summary | Nationwide Mid Cap Market Index Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 97.0% | |
| Repurchase Agreement | | | 2.6% | |
| Other assets in excess of liabilities | | | 0.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Real Estate Investment Trusts | | | 6.3% | |
| Insurance | | | 4.9% | |
| Specialty Retail | | | 4.5% | |
| Commercial Banks | | | 4.2% | |
| Commercial Services & Supplies | | | 4.1% | |
| Machinery | | | 4.0% | |
| Health Care Equipment & Supplies | | | 3.8% | |
| Oil, Gas & Consumable Fuels | | | 3.7% | |
| Chemicals | | | 3.5% | |
| Multi-Utility | | | 3.1% | |
| Other | | | 57.9% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| New York Community Bancorp, Inc. | | | 0.7% | |
| Stericycle, Inc. | | | 0.7% | |
| McAfee, Inc. | | | 0.7% | |
| Everest Re Group Ltd. | | | 0.7% | |
| Cephalon, Inc. | | | 0.6% | |
| Equitable Resources, Inc. | | | 0.6% | |
| Health Care REIT, Inc. | | | 0.6% | |
| DENTSPLY International, Inc. | | | 0.6% | |
| FLIR Systems, Inc. | | | 0.6% | |
| FMC Technologies, Inc. | | | 0.6% | |
| Other | | | 93.6% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
2008 Annual Report 73
Statement of Investments
October 31, 2008
Nationwide Mid Cap Market Index Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 97.0% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 0.5% |
| Alliant Techsystems, Inc.* | | | 25,100 | | | $ | 2,068,240 | |
| BE Aerospace, Inc.* | | | 72,944 | | | | 938,789 | |
| | | | | | | | | |
| | | | | | | | 3,007,029 | |
| | | | | | | | | |
| |
| |
Airlines 0.3% |
| AirTran Holdings, Inc.* | | | 83,760 | | | | 342,578 | |
| Alaska Air Group, Inc.* | | | 26,600 | | | | 657,020 | |
| JetBlue Airways Corp.* | | | 139,725 | | | | 775,474 | |
| | | | | | | | | |
| | | | | | | | 1,775,072 | |
| | | | | | | | | |
| |
| |
Auto Components 0.6% |
| ArvinMeritor, Inc. | | | 56,360 | | | | 333,651 | |
| BorgWarner, Inc. | | | 88,340 | | | | 1,985,000 | |
| Gentex Corp. | | | 104,580 | | | | 1,002,922 | |
| Lear Corp.* | | | 56,546 | | | | 113,658 | |
| Modine Manufacturing Co. | | | 22,200 | | | | 164,280 | |
| | | | | | | | | |
| | | | | | | | 3,599,511 | |
| | | | | | | | | |
| |
| |
Automobiles 0.1% |
| Thor Industries, Inc. | | | 25,800 | | | | 461,820 | |
| | | | | | | | | |
| |
| |
Beverages 0.4% |
| Hansen Natural Corp.* | | | 56,200 | | | | 1,422,984 | |
| PepsiAmericas, Inc. | | | 42,800 | | | | 810,204 | |
| | | | | | | | | |
| | | | | | | | 2,233,188 | |
| | | | | | | | | |
| |
| |
Biotechnology 1.6% |
| Cephalon, Inc.* | | | 51,635 | | | | 3,703,262 | |
| PDL BioPharma, Inc.* | | | 91,165 | | | | 888,859 | |
| United Therapeutics Corp.* | | | 17,400 | | | | 1,517,802 | |
| Vertex Pharmaceuticals, Inc.* | | | 113,190 | | | | 2,966,710 | |
| | | | | | | | | |
| | | | | | | | 9,076,633 | |
| | | | | | | | | |
| |
| |
Capital Markets 1.9% |
| Affiliated Managers Group, Inc.*(a) | | | 31,081 | | | | 1,441,537 | |
| Apollo Investment Corp. | | | 104,706 | | | | 1,380,025 | |
| Eaton Vance Corp. | | | 88,200 | | | | 1,940,400 | |
| Jefferies Group, Inc. | | | 91,300 | | | | 1,445,279 | |
| Raymond James Financial, Inc. | | | 73,080 | | | | 1,702,033 | |
| SEI Investments Co. | | | 99,180 | | | | 1,753,502 | |
| Waddell & Reed Financial, Inc., Class A | | | 65,400 | | | | 949,608 | |
| | | | | | | | | |
| | | | | | | | 10,612,384 | |
| | | | | | | | | |
| |
| |
Chemicals 3.5% |
| Airgas, Inc. | | | 62,700 | | | | 2,405,172 | |
| Albemarle Corp. | | | 69,600 | | | | 1,694,760 | |
| Cabot Corp. | | | 49,000 | | | | 1,296,050 | |
| Chemtura Corp. | | | 176,200 | | | | 304,826 | |
| Cytec Industries, Inc. | | | 36,300 | | | | 1,028,016 | |
| Ferro Corp. | | | 33,200 | | | | 513,936 | |
| FMC Corp. | | | 56,920 | | | | 2,478,2974 | |
| Lubrizol Corp. | | | 51,580 | | | | 1,938,377 | |
| Minerals Technologies, Inc. | | | 14,040 | | | | 796,910 | |
| Olin Corp. | | | 57,460 | | | | 1,043,474 | |
| RPM International, Inc. | | | 95,900 | | | | 1,361,780 | |
| Scotts Miracle-Gro Co. (The), Class A | | | 33,020 | | | | 862,482 | |
| Sensient Technologies Corp. | | | 36,980 | | | | 933,005 | |
| Terra Industries, Inc. | | | 69,850 | | | | 1,536,002 | |
| Valspar Corp. | | | 76,100 | | | | 1,556,245 | |
| | | | | | | | | |
| | | | | | | | 19,749,332 | |
| | | | | | | | | |
| |
| |
Commercial Banks 4.2% |
| Associated Banc-Corp. | | | 97,121 | | | | 2,142,489 | |
| BancorpSouth, Inc. | | | 54,700 | | | | 1,327,569 | |
| Bank of Hawaii Corp. | | | 36,400 | | | | 1,845,844 | |
| Cathay General Bancorp | | | 37,700 | | | | 922,896 | |
| City National Corp. | | | 30,600 | | | | 1,638,018 | |
| Colonial BancGroup, Inc. (The) | | | 154,080 | | | | 630,187 | |
| Commerce Bancshares, Inc. | | | 47,700 | | | | 2,255,256 | |
| Cullen/Frost Bankers, Inc. | | | 44,930 | | | | 2,514,732 | |
| FirstMerit Corp. | | | 61,780 | | | | 1,440,710 | |
| PacWest Bancorp | | | 18,740 | | | | 468,313 | |
| SVB Financial Group* | | | 24,799 | | | | 1,275,908 | |
| Synovus Financial Corp. | | | 213,600 | | | | 2,206,488 | |
| TCF Financial Corp. | | | 87,800 | | | | 1,557,572 | |
| Webster Financial Corp. | | | 40,200 | | | | 745,308 | |
| Westamerica Bancorp | | | 22,120 | | | | 1,266,370 | |
| Wilmington Trust Corp. | | | 51,300 | | | | 1,480,518 | |
| | | | | | | | | |
| | | | | | | | 23,718,178 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 4.1% |
| Brink’s Co. (The) | | | 32,080 | | | | 1,555,559 | |
| Clean Harbors, Inc.* | | | 15,100 | | | | 990,107 | |
| Copart, Inc.* | | | 49,100 | | | | 1,713,590 | |
| Corporate Executive Board Co. (The) | | | 26,000 | | | | 775,580 | |
| Corrections Corp. of America* | | | 95,330 | | | | 1,821,756 | |
| Deluxe Corp. | | | 36,673 | | | | 445,944 | |
| Dun & Bradstreet Corp. | | | 41,393 | | | | 3,050,250 | |
| Herman Miller, Inc. | | | 42,600 | | | | 937,200 | |
| HNI Corp. | | | 33,770 | | | | 618,666 | |
| Kelly Services, Inc., Class A | | | 18,675 | | | | 265,932 | |
| Korn/Ferry International* | | | 35,100 | | | | 487,539 | |
| Manpower, Inc. | | | 60,360 | | | | 1,879,007 | |
| Mine Safety Appliances Co. | | | 22,700 | | | | 612,900 | |
| MPS Group, Inc.* | | | 70,140 | | | | 546,391 | |
| Navigant Consulting, Inc.* | | | 35,420 | | | | 572,741 | |
| Republic Services, Inc. | | | 117,273 | | | | 2,779,370 | |
| Rollins, Inc. | | | 29,147 | | | | 512,113 | |
| Stericycle, Inc.* | | | 64,880 | | | | 3,790,939 | |
| | | | | | | | | |
| | | | | | | | 23,355,584 | |
| | | | | | | | | |
| | | | | | | | | |
74 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Communications Equipment 1.5% |
| 3Com Corp.* | | | 292,705 | | | $ | 799,085 | |
| ADC Telecommunications, Inc.* | | | 89,925 | | | | 570,124 | |
| ADTRAN, Inc. | | | 42,659 | | | | 648,417 | |
| Avocent Corp.* | | | 32,706 | | | | 491,244 | |
| CommScope, Inc.* | | | 53,409 | | | | 785,646 | |
| F5 Networks, Inc.* | | | 61,324 | | | | 1,522,062 | |
| Foundry Networks, Inc.* | | | 109,800 | | | | 1,630,530 | |
| Plantronics, Inc. | | | 35,800 | | | | 516,952 | |
| Polycom, Inc.* | | | 64,802 | | | | 1,361,490 | |
| | | | | | | | | |
| | | | | | | | 8,325,550 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 1.3% |
| Diebold, Inc. | | | 48,633 | | | | 1,445,373 | |
| Imation Corp. | | | 23,633 | | | | 291,158 | |
| NCR Corp.* | | | 124,460 | | | | 2,275,129 | |
| Palm, Inc.* | | | 83,200 | | | | 331,968 | |
| Western Digital Corp.* | | | 168,200 | | | | 2,775,300 | |
| | | | | | | | | |
| | | | | | | | 7,118,928 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 1.5% |
| Dycom Industries, Inc.* | | | 29,300 | | | | 260,184 | |
| Granite Construction, Inc. | | | 25,160 | | | | 897,457 | |
| KBR, Inc. | | | 129,110 | | | | 1,915,992 | |
| Quanta Services, Inc.* | | | 133,210 | | | | 2,632,230 | |
| Shaw Group, Inc. (The)* | | | 63,465 | | | | 1,135,389 | |
| URS Corp.* | | | 64,200 | | | | 1,886,838 | |
| | | | | | | | | |
| | | | | | | | 8,728,090 | |
| | | | | | | | | |
| |
| |
Construction Materials 0.4% |
| Martin Marietta Materials, Inc. | | | 31,464 | | | | 2,466,148 | |
| | | | | | | | | |
| |
| |
Consumer Finance 0.1% |
| AmeriCredit Corp.* | | | 85,020 | | | | 498,217 | |
| | | | | | | | | |
| |
| |
Containers & Packaging 1.1% |
| AptarGroup, Inc. | | | 50,000 | | | | 1,516,000 | |
| Greif, Inc., Class A | | | 25,900 | | | | 1,051,022 | |
| Packaging Corp. of America | | | 78,960 | | | | 1,328,897 | |
| Sonoco Products Co. | | | 73,600 | | | | 1,853,248 | |
| Temple-Inland, Inc. | | | 80,910 | | | | 479,796 | |
| | | | | | | | | |
| | | | | | | | 6,228,963 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 2.2% |
| Career Education Corp.* | | | 56,049 | | | | 886,135 | |
| Corinthian Colleges, Inc.* | | | 65,080 | | | | 929,343 | |
| DeVry, Inc. | | | 46,700 | | | | 2,647,423 | |
| ITT Educational Services, Inc.* | | | 23,940 | | | | 2,098,341 | |
| Matthews International Corp., Class A | | | 23,010 | | | | 1,026,936 | |
| Regis Corp. | | | 32,920 | | | | 407,220 | |
| Service Corp. International | | | 191,100 | | | | 1,318,590 | |
| Sotheby’s | | | 51,300 | | | | 477,603 | |
| Strayer Education, Inc. | | | 10,840 | | | | 2,452,767 | |
| | | | | | | | | |
| | | | | | | | 12,244,358 | |
| | | | | | | | | |
Diversified Telecommunication Services 0.1% |
| Cincinnati Bell, Inc.* | | | 181,600 | | | | 434,024 | |
| | | | | | | | | |
| |
| |
Electric Utilities 2.1% |
| DPL, Inc. | | | 86,557 | | | | 1,974,365 | |
| Great Plains Energy, Inc. | | | 90,458 | | | | 1,758,504 | |
| Hawaiian Electric Industries, Inc. | | | 64,600 | | | | 1,719,652 | |
| IDACORP, Inc. | | | 34,700 | | | | 925,102 | |
| Northeast Utilities | | | 117,003 | | | | 2,639,588 | |
| Sierra Pacific Resources | | | 178,420 | | | | 1,479,102 | |
| Westar Energy, Inc. | | | 82,350 | | | | 1,605,001 | |
| | | | | | | | | |
| | | | | | | | 12,101,314 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 1.5% |
| Ametek, Inc. | | | 81,150 | | | | 2,698,238 | |
| Hubbell, Inc., Class B | | | 41,000 | | | | 1,470,670 | |
| Roper Industries, Inc. | | | 68,150 | | | | 3,090,602 | |
| Thomas & Betts Corp.* | | | 43,848 | | | | 1,041,390 | |
| | | | | | | | | |
| | | | | | | | 8,300,900 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 2.3% |
| Arrow Electronics, Inc.* | | | 91,033 | | | | 1,588,526 | |
| Avnet, Inc.* | | | 114,378 | | | | 1,914,688 | |
| FLIR Systems, Inc.* | | | 105,700 | | | | 3,392,970 | |
| Ingram Micro, Inc., Class A* | | | 126,300 | | | | 1,683,579 | |
| National Instruments Corp. | | | 41,430 | | | | 1,052,322 | |
| Tech Data Corp.* | | | 38,743 | | | | 831,037 | |
| Trimble Navigation Ltd.* | | | 90,000 | | | | 1,851,300 | |
| Vishay Intertechnology, Inc.* | | | 141,430 | | | | 609,563 | |
| | | | | | | | | |
| | | | | | | | 12,923,985 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 3.1% |
| Exterran Holdings, Inc.* | | | 50,085 | | | | 1,122,405 | |
| FMC Technologies, Inc.* | | | 96,824 | | | | 3,387,871 | |
| Helix Energy Solutions Group, Inc.* | | | 70,000 | | | | 739,200 | |
| Helmerich & Payne, Inc. | | | 80,000 | | | | 2,744,800 | |
| Oceaneering International, Inc.* | | | 42,600 | | | | 1,200,042 | |
| Patterson-UTI Energy, Inc. | | | 119,240 | | | | 1,582,315 | |
| Pride International, Inc.* | | | 131,528 | | | | 2,471,411 | |
| Superior Energy Services, Inc.* | | | 61,490 | | | | 1,310,967 | |
| Tidewater, Inc. | | | 39,277 | | | | 1,712,870 | |
| Unit Corp.* | | | 36,900 | | | | 1,385,226 | |
| | | | | | | | | |
| | | | | | | | 17,657,107 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 0.4% |
| BJ’s Wholesale Club, Inc.* | | | 45,157 | | | | 1,589,526 | |
| Ruddick Corp. | | | 29,900 | | | | 856,336 | |
| | | | | | | | | |
| | | | | | | | 2,445,862 | |
| | | | | | | | | |
2008 Annual Report 75
Statement of Investments (Continued)
October 31, 2008
Nationwide Mid Cap Market Index Fund (Continued)
| | | | | | | | | |
| Common Stocks (continued) |
| |
Food & Staples Retailing (continued) |
Food Products 1.7% |
| Corn Products International, Inc. | | | 55,090 | | | $ | 1,339,789 | |
| Hormel Foods Corp. | | | 52,620 | | | | 1,487,041 | |
| J.M. Smucker Co. (The) | | | 41,771 | | | | 1,861,316 | |
| Lancaster Colony Corp. | | | 14,200 | | | | 447,868 | |
| Ralcorp Holdings, Inc.* | | | 42,700 | | | | 2,889,936 | |
| Smithfield Foods, Inc.* | | | 89,010 | | | | 936,385 | |
| Tootsie Roll Industries, Inc. | | | 18,495 | | | | 459,971 | |
| | | | | | | | | |
| | | | | | | | 9,422,306 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 3.8% |
| Advanced Medical Optics, Inc.*(a) | | | 39,903 | | | | 246,202 | |
| Beckman Coulter, Inc. | | | 47,260 | | | | 2,359,219 | |
| DENTSPLY International, Inc. | | | 112,972 | | | | 3,432,089 | |
| Edwards Lifesciences Corp.* | | | 42,800 | | | | 2,261,552 | |
| Gen-Probe, Inc.* | | | 41,200 | | | | 1,938,872 | |
| Hill-Rom Holdings, Inc. | | | 47,665 | | | | 1,084,855 | |
| Hologic, Inc.* | | | 194,598 | | | | 2,381,880 | |
| IDEXX Laboratories, Inc.* | | | 45,200 | | | | 1,590,588 | |
| Kinetic Concepts, Inc.* | | | 43,100 | | | | 1,043,451 | |
| ResMed, Inc.* | | | 57,500 | | | | 1,969,950 | |
| STERIS Corp. | | | 44,980 | | | | 1,531,119 | |
| Teleflex, Inc. | | | 30,220 | | | | 1,601,358 | |
| | | | | | | | | |
| | | | | | | | 21,441,135 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 2.8% |
| Community Health Systems, Inc.* | | | 72,977 | | | | 1,496,028 | |
| Health Management Associates, Inc., Class A* | | | 184,900 | | | | 388,290 | |
| Health Net, Inc.* | | | 81,642 | | | | 1,051,549 | |
| Henry Schein, Inc.* | | | 67,974 | | | | 3,181,863 | |
| Kindred Healthcare, Inc.* | | | 22,620 | | | | 327,764 | |
| LifePoint Hospitals, Inc.* | | | 40,556 | | | | 972,127 | |
| Lincare Holdings, Inc.* | | | 55,863 | | | | 1,471,990 | |
| Omnicare, Inc. | | | 79,100 | | | | 2,180,787 | |
| Psychiatric Solutions, Inc.* | | | 42,400 | | | | 1,411,496 | |
| Universal Health Services, Inc., Class B | | | 38,755 | | | | 1,629,260 | |
| VCA Antech, Inc.* | | | 62,627 | | | | 1,133,549 | |
| WellCare Health Plans, Inc.* | | | 31,750 | | | | 767,398 | |
| | | | | | | | | |
| | | | | | | | 16,012,101 | |
| | | | | | | | | |
| |
| |
Health Care Technology 0.3% |
| Cerner Corp.* | | | 51,640 | | | | 1,922,557 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 1.2% |
| Bob Evans Farms, Inc. | | | 23,729 | | | | 495,462 | |
| Boyd Gaming Corp. | | | 43,900 | | | | 298,520 | |
| Brinker International, Inc. | | | 77,330 | | | | 719,169 | |
| Cheesecake Factory (The)* | | | 49,550 | | | | 436,040 | |
| Chipotle Mexican Grill, Inc., Class A* | | | 25,130 | | | | 1,275,347 | |
| International Speedway Corp., Class A* | | | 21,700 | | | | 681,163 | |
| Life Time Fitness, Inc.* | | | 26,570 | | | | 505,893 | |
| Scientific Games Corp., Class A* | | | 49,500 | | | | 891,000 | |
| Wendy’s/Arby’s Group, Inc., Class A | | | 359,975 | | | | 1,303,109 | |
| | | | | | | | | |
| | | | | | | | 6,605,703 | |
| | | | | | | | | |
| |
| |
Household Durables 1.8% |
| American Greetings Corp., Class A | | | 36,614 | | | | 427,652 | |
| Blyth, Inc. | | | 17,840 | | | | 153,424 | |
| Furniture Brands International, Inc. | | | 33,538 | | | | 190,831 | |
| Hovnanian Enterprises, Inc., Class A* | | | 39,120 | | | | 167,825 | |
| M.D.C. Holdings, Inc. | | | 27,900 | | | | 938,277 | |
| Mohawk Industries, Inc.* | | | 42,640 | | | | 2,062,923 | |
| NVR, Inc.* | | | 4,126 | | | | 2,022,606 | |
| Ryland Group, Inc. | | | 32,567 | | | | 611,934 | |
| Toll Brothers, Inc.* | | | 99,018 | | | | 2,289,296 | |
| Tupperware Brands Corp. | | | 47,333 | | | | 1,197,525 | |
| | | | | | | | | |
| | | | | | | | 10,062,293 | |
| | | | | | | | | |
| |
| |
Household Products 0.9% |
| Church & Dwight Co., Inc. | | | 50,700 | | | | 2,995,863 | |
| Energizer Holdings, Inc.* | | | 44,178 | | | | 2,158,537 | |
| | | | | | | | | |
| | | | | | | | 5,154,400 | |
| | | | | | | | | |
| |
| |
Industrial Conglomerate 0.2% |
| Carlisle Cos., Inc. | | | 44,880 | | | | 1,043,460 | |
| | | | | | | | | |
| |
| |
Information Technology Services 2.8% |
| Acxiom Corp. | | | 48,984 | | | | 385,014 | |
| Alliance Data Systems Corp.* | | | 51,100 | | | | 2,563,176 | |
| Broadridge Financial Solutions, Inc. | | | 103,710 | | | | 1,254,891 | |
| DST Systems, Inc.* | | | 32,560 | | | | 1,321,285 | |
| Gartner, Inc.* | | | 44,980 | | | | 827,632 | |
| Global Payments, Inc. | | | 60,670 | | | | 2,457,742 | |
| Lender Processing Services, Inc. | | | 63,500 | | | | 1,464,945 | |
| Metavante Technologies, Inc.* | | | 65,830 | | | | 1,103,969 | |
| NeuStar, Inc., Class A* | | | 57,650 | | | | 1,135,705 | |
| SAIC, Inc.* | | | 146,400 | | | | 2,704,008 | |
| SRA International, Inc., Class A* | | | 32,600 | | | | 602,448 | |
| | | | | | | | | |
| | | | | | | | 15,820,815 | |
| | | | | | | | | |
| |
| |
Insurance 4.9% |
| American Financial Group, Inc. | | | 54,800 | | | | 1,245,604 | |
| Arthur J. Gallagher & Co. | | | 71,100 | | | | 1,731,996 | |
| Brown & Brown, Inc. | | | 87,820 | | | | 1,802,066 | |
76 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Insurance (continued) |
| | | | | | | | | |
| Everest Re Group Ltd. | | | 46,900 | | | $ | 3,503,430 | |
| Fidelity National Financial, Inc., Class A | | | 160,953 | | | | 1,450,187 | |
| First American Corp. | | | 70,453 | | | | 1,437,946 | |
| Hanover Insurance Group, Inc. (The) | | | 38,900 | | | | 1,526,825 | |
| HCC Insurance Holdings, Inc. | | | 87,390 | | | | 1,927,823 | |
| Horace Mann Educators Corp. | | | 30,900 | | | | 245,964 | |
| Mercury General Corp. | | | 26,000 | | | | 1,335,620 | |
| Old Republic International Corp. | | | 175,787 | | | | 1,618,998 | |
| Philadelphia Consolidated Holding Co.* | | | 43,300 | | | | 2,532,617 | |
| Protective Life Corp. | | | 53,300 | | | | 445,055 | |
| Reinsurance Group of America, Inc., Class A | | | 55,100 | | | | 2,057,434 | |
| StanCorp Financial Group, Inc. | | | 35,800 | | | | 1,220,064 | |
| Unitrin, Inc. | | | 36,700 | | | | 770,700 | |
| W.R. Berkley Corp. | | | 106,566 | | | | 2,799,489 | |
| | | | | | | | | |
| | | | | | | | 27,651,818 | |
| | | | | | | | | |
| |
| |
Internet & Catalog Retail 0.4% |
| Netflix, Inc.* | | | 32,930 | | | | 815,347 | |
| priceline.com, Inc.* | | | 29,600 | | | | 1,557,848 | |
| | | | | | | | | |
| | | | | | | | 2,373,195 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 0.2% |
| Digital River, Inc.* | | | 28,270 | | | | 700,531 | |
| ValueClick, Inc.* | | | 66,850 | | | | 494,690 | |
| | | | | | | | | |
| | | | | | | | 1,195,221 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 0.1% |
| Callaway Golf Co. | | | 49,600 | | | | 518,816 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 2.1% |
| Affymetrix, Inc.* | | | 54,010 | | | | 199,297 | |
| Charles River Laboratories International, Inc.* | | | 51,582 | | | | 1,848,183 | |
| Covance, Inc.* | | | 47,880 | | | | 2,394,000 | |
| Invitrogen Corp.* | | | 68,696 | | | | 1,977,758 | |
| Pharmaceutical Product Development, Inc. | | | 90,500 | | | | 2,803,690 | |
| Techne Corp. | | | 28,535 | | | | 1,969,486 | |
| Varian, Inc.* | | | 22,460 | | | | 827,651 | |
| | | | | | | | | |
| | | | | | | | 12,020,065 | |
| | | | | | | | | |
| |
| |
Machinery 4.0% |
| AGCO Corp.* | | | 69,700 | | | | 2,196,944 | |
| Crane Co. | | | 37,166 | | | | 608,408 | |
| Donaldson Co., Inc. | | | 59,780 | | | | 2,101,267 | |
| Federal Signal Corp. | | | 33,500 | | | | 285,085 | |
| Graco, Inc. | | | 45,770 | | | | 1,131,892 | |
| Harsco Corp. | | | 62,400 | | | | 1,477,008 | |
| IDEX Corp. | | | 62,880 | | | | 1,457,558 | |
| Joy Global, Inc. | | | 81,832 | | | | 2,371,491 | |
| Kennametal, Inc. | | | 56,400 | | | | 1,196,808 | |
| Lincoln Electric Holdings, Inc. | | | 31,600 | | | | 1,363,540 | |
| Nordson Corp. | | | 26,000 | | | | 960,180 | |
| Oshkosh Corp. | | | 57,000 | | | | 436,620 | |
| Pentair, Inc. | | | 75,260 | | | | 2,080,186 | |
| SPX Corp. | | | 41,220 | | | | 1,596,863 | |
| Timken Co. | | | 64,200 | | | | 1,019,496 | |
| Trinity Industries, Inc. | | | 62,150 | | | | 1,049,092 | |
| Wabtec Corp. | | | 36,880 | | | | 1,466,349 | |
| | | | | | | | | |
| | | | | | | | 22,798,787 | |
| | | | | | | | | |
| |
| |
Marine 0.2% |
| Alexander & Baldwin, Inc. | | | 31,501 | | | | 1,004,882 | |
| | | | | | | | | |
| |
| |
Media 1.0% |
| Belo Corp., Class A | | | 63,450 | | | | 135,149 | |
| DreamWorks Animation SKG, Inc., Class A* | | | 61,300 | | | | 1,722,530 | |
Harte-Hanks, Inc. | | | 31,440 | | | | 220,709 | |
| John Wiley & Sons, Inc., Class A | | | 32,400 | | | | 1,126,872 | |
| Lamar Advertising Co., Class A* | | | 57,700 | | | | 875,309 | |
| Marvel Entertainment, Inc.* | | | 37,400 | | | | 1,203,906 | |
| Media General, Inc., Class A | | | 17,000 | | | | 129,710 | |
| Scholastic Corp. | | | 20,355 | | | | 377,992 | |
| Valassis Communications, Inc.* | | | 35,700 | | | | 158,508 | |
| | | | | | | | | |
| | | | | | | | 5,950,685 | |
| | | | | | | | | |
| |
| |
Metals & Mining 1.3% |
| Carpenter Technology Corp. | | | 33,960 | | | | 614,676 | |
| Cliffs Natural Resources, Inc. | | | 80,880 | | | | 2,182,951 | |
| Commercial Metals Co. | | | 87,200 | | | | 967,920 | |
| Reliance Steel & Aluminum Co. | | | 48,500 | | | | 1,214,440 | |
| Steel Dynamics, Inc. | | | 135,600 | | | | 1,616,352 | |
| Worthington Industries, Inc. | | | 46,587 | | | | 562,305 | |
| | | | | | | | | |
| | | | | | | | 7,158,644 | |
| | | | | | | | | |
| |
| |
Multi-Utility 3.1% |
| Alliant Energy Corp. | | | 84,000 | | | | 2,467,920 | |
| Black Hills Corp. | | | 29,400 | | | | 742,350 | |
| MDU Resources Group, Inc. | | | 138,925 | | | | 2,529,824 | |
| NSTAR | | | 81,220 | | | | 2,684,321 | |
| OGE Energy Corp. | | | 70,300 | | | | 1,919,190 | |
| PNM Resources, Inc. | | | 66,150 | | | | 644,963 | |
| Puget Energy, Inc. | | | 96,300 | | | | 2,256,309 | |
| SCANA Corp. | | | 88,979 | | | | 2,928,299 | |
| Vectren Corp. | | | 60,260 | | | | 1,518,552 | |
| | | | | | | | | |
| | | | | | | | 17,691,728 | |
| | | | | | | | | |
2008 Annual Report 77
Statement of Investments (Continued)
October 31, 2008
Nationwide Mid Cap Market Index Fund (Continued)
| | | | | | | | | |
| Common Stocks (continued) |
| |
Multi-Utility (continued) |
Multiline Retail 0.7% |
| 99 Cents Only Stores* | | | 36,133 | | | $ | 440,823 | |
| Dollar Tree, Inc.* | | | 68,728 | | | | 2,613,038 | |
| Saks, Inc.* | | | 108,200 | | | | 649,200 | |
| | | | | | | | | |
| | | | | | | | 3,703,061 | |
| | | | | | | | | |
| |
| |
Natural Gas Utility 2.7% |
| AGL Resources, Inc. | | | 58,440 | | | | 1,776,576 | |
| Energen Corp. | | | 54,600 | | | | 1,832,922 | |
| Equitable Resources, Inc. | | | 99,446 | | | | 3,451,771 | |
| National Fuel Gas Co. | | | 62,000 | | | | 2,243,780 | |
| Oneok, Inc. | | | 79,456 | | | | 2,534,646 | |
| UGI Corp. | | | 84,400 | | | | 2,014,628 | |
| WGL Holdings, Inc. | | | 38,100 | | | | 1,226,439 | |
| | | | | | | | | |
| | | | | | | | 15,080,762 | |
| | | | | | | | | |
| |
| |
Office Electronics 0.2% |
| Zebra Technologies Corp., Class A* | | | 47,742 | | | | 966,298 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 3.7% |
| Arch Coal, Inc. | | | 109,694 | | | | 2,348,549 | |
| Bill Barrett Corp.* | | | 28,300 | | | | 577,320 | |
| Cimarex Energy Co. | | | 63,130 | | | | 2,554,240 | |
| Comstock Resources, Inc.* | | | 35,800 | | | | 1,769,236 | |
| Denbury Resources, Inc.* | | | 187,600 | | | | 2,384,396 | |
| Encore Acquisition Co.* | | | 40,610 | | | | 1,265,001 | |
| Forest Oil Corp.* | | | 68,260 | | | | 1,993,875 | |
| Frontier Oil Corp. | | | 79,030 | | | | 1,043,986 | |
| Newfield Exploration Co.* | | | 100,484 | | | | 2,309,122 | |
| Overseas Shipholding Group, Inc. | | | 19,130 | | | | 718,905 | |
| Patriot Coal Corp.* | | | 47,900 | | | | 758,257 | |
| Plains Exploration & Production Co.* | | | 81,818 | | | | 2,307,268 | |
| Quicksilver Resources, Inc.* | | | 86,222 | | | | 902,744 | |
| | | | | | | | | |
| | | | | | | | 20,932,899 | |
| | | | | | | | | |
| |
| |
Paper & Forest Products 0.1% |
| Louisiana-Pacific Corp. | | | 70,260 | | | | 337,248 | |
| | | | | | | | | |
| |
| |
Personal Products 0.5% |
| Alberto-Culver Co. | | | 64,560 | | | | 1,661,129 | |
| NBTY, Inc.* | | | 41,400 | | | | 967,518 | |
| | | | | | | | | |
| | | | | | | | 2,628,647 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 1.2% |
| Endo Pharmaceuticals Holdings, Inc.* | | | 91,600 | | | | 1,694,600 | |
| Medicis Pharmaceutical Corp., Class A | | | 43,400 | | | | 619,318 | |
| Perrigo Co. | | | 59,000 | | | | 2,006,000 | |
| Sepracor, Inc.* | | | 82,832 | | | | 1,103,322 | |
| Valeant Pharmaceuticals International* | | | 67,000 | | | | 1,257,590 | |
| | | | | | | | | |
| | | | | | | | 6,680,830 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 6.3% |
| Alexandria Real Estate Equities, Inc.(a) | | | 24,480 | | | | 1,701,850 | |
| AMB Property Corp. | | | 74,567 | | | | 1,791,845 | |
| BRE Properties, Inc. | | | 38,900 | | | | 1,354,109 | |
| Camden Property Trust | | | 40,500 | | | | 1,365,255 | |
| Cousins Properties, Inc. | | | 31,020 | | | | 449,170 | |
| Duke Realty Corp. | | | 111,760 | | | | 1,576,934 | |
| Equity One, Inc. | | | 25,800 | | | | 450,726 | |
| Essex Property Trust, Inc. | | | 19,500 | | | | 1,897,350 | |
| Federal Realty Investment Trust | | | 44,800 | | | | 2,744,896 | |
| Health Care REIT, Inc. | | | 77,500 | | | | 3,449,525 | |
| Highwoods Properties, Inc. | | | 48,160 | | | | 1,195,331 | |
| Hospitality Properties Trust | | | 70,320 | | | | 713,748 | |
| Liberty Property Trust | | | 74,796 | | | | 1,783,884 | |
| Macerich Co. (The) | | | 56,800 | | | | 1,671,056 | |
| Mack-Cali Realty Corp. | | | 50,150 | | | | 1,139,408 | |
| Nationwide Health Properties, Inc. | | | 73,680 | | | | 2,198,611 | |
| Potlatch Corp. | | | 30,156 | | | | 1,001,481 | |
| Rayonier, Inc. | | | 59,780 | | | | 1,977,522 | |
| Realty Income Corp. | | | 77,200 | | | | 1,784,864 | |
| Regency Centers Corp. | | | 53,200 | | | | 2,099,272 | |
| UDR, Inc. | | | 104,015 | | | | 2,055,336 | |
| Weingarten Realty Investors | | | 56,900 | | | | 1,163,605 | |
| | | | | | | | | |
| | | | | | | | 35,565,778 | |
| | | | | | | | | |
| |
| |
Real Estate Management & Development 0.2% |
| Jones Lang LaSalle, Inc. | | | 30,760 | | | | 1,012,619 | |
| | | | | | | | | |
| |
| |
Road & Rail 1.1% |
| Avis Budget Group, Inc.* | | | 73,900 | | | | 121,196 | |
| Con-way, Inc. | | | 34,840 | | | | 1,185,953 | |
| J.B. Hunt Transport Services, Inc. | | | 62,200 | | | | 1,768,346 | |
| Kansas City Southern* | | | 69,100 | | | | 2,133,117 | |
| Werner Enterprises, Inc. | | | 32,648 | | | | 640,554 | |
| YRC Worldwide, Inc.* | | | 43,862 | | | | 200,888 | |
| | | | | | | | | |
| | | | | | | | 6,050,054 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 1.8% |
| Atmel Corp.* | | | 328,800 | | | | 1,364,520 | |
| Cree, Inc.* | | | 67,025 | | | | 1,315,701 | |
| Fairchild Semiconductor International, Inc.* | | | 95,520 | | | | 542,554 | |
| Integrated Device Technology, Inc.* | | | 129,687 | | | | 824,809 | |
| International Rectifier Corp.* | | | 53,300 | | | | 822,952 | |
78 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Semiconductors & Semiconductor Equipment (continued) |
| | | | | | | | | |
| Intersil Corp., Class A | | | 94,402 | | | $ | 1,292,363 | |
| Lam Research Corp.* | | | 95,315 | | | | 2,131,243 | |
| RF Micro Devices, Inc.* | | | 200,225 | | | | 398,448 | |
| Semtech Corp.* | | | 47,330 | | | | 573,640 | |
| Silicon Laboratories, Inc.* | | | 36,540 | | | | 948,578 | |
| | | | | | | | | |
| | | | | | | | 10,214,808 | |
| | | | | | | | | |
| |
| |
Software 2.9% |
| ACI Worldwide, Inc.* | | | 25,900 | | | | 354,830 | |
| Advent Software, Inc.* | | | 13,269 | | | | 248,661 | |
| ANSYS, Inc.* | | | 67,600 | | | | 1,935,388 | |
| Cadence Design Systems, Inc.* | | | 198,391 | | | | 807,451 | |
| FactSet Research Systems, Inc. | | | 32,500 | | | | 1,260,675 | |
| Fair Isaac Corp. | | | 37,007 | | | | 576,939 | |
| Jack Henry & Associates, Inc. | | | 65,600 | | | | 1,247,056 | |
| Macrovision Solutions Corp.* | | | 63,620 | | | | 704,910 | |
| McAfee, Inc.* | | | 114,900 | | | | 3,739,995 | |
| Mentor Graphics Corp.* | | | 70,600 | | | | 518,204 | |
| Parametric Technology Corp.* | | | 87,860 | | | | 1,141,301 | |
| Sybase, Inc.* | | | 61,274 | | | | 1,631,727 | |
| Synopsys, Inc.* | | | 109,681 | | | | 2,004,969 | |
| Wind River Systems, Inc.* | | | 49,500 | | | | 432,630 | |
| | | | | | | | | |
| | | | | | | | 16,604,736 | |
| | | | | | | | | |
| |
| |
Specialty Retail 4.5% |
| Advance Auto Parts, Inc.(a) | | | 72,700 | | | | 2,268,240 | |
| Aeropostale, Inc.* | | | 50,859 | | | | 1,231,297 | |
| American Eagle Outfitters, Inc. | | | 156,461 | | | | 1,739,846 | |
| AnnTaylor Stores Corp.* | | | 43,589 | | | | 547,914 | |
| Barnes & Noble, Inc. | | | 28,473 | | | | 537,570 | |
| Borders Group, Inc. | | | 46,694 | | | | 158,293 | |
| CarMax, Inc.* | | | 167,500 | | | | 1,778,850 | |
| Chico’s FAS, Inc.* | | | 134,743 | | | | 458,126 | |
| Coldwater Creek, Inc.* | | | 39,900 | | | | 143,241 | |
| Collective Brands, Inc.* | | | 48,695 | | | | 622,809 | |
| Dick’s Sporting Goods, Inc.* | | | 64,660 | | | | 990,591 | |
| Foot Locker, Inc. | | | 117,900 | | | | 1,723,698 | |
| Guess?, Inc. | | | 45,800 | | | | 997,066 | |
| J Crew Group, Inc.* | | | 39,500 | | | | 799,875 | |
| O’Reilly Automotive, Inc.* | | | 101,846 | | | | 2,761,045 | |
| Pacific Sunwear of California, Inc.* | | | 50,700 | | | | 173,394 | |
| PetSmart, Inc. | | | 96,276 | | | | 1,895,675 | |
Rent-A-Center, Inc.* | | | 50,847 | | | | 742,366 | |
| Ross Stores, Inc. | | | 99,954 | | | | 3,267,496 | |
| Urban Outfitters, Inc.* | | | 86,416 | | | | 1,878,684 | |
| Williams-Sonoma, Inc. | | | 66,040 | | | | 546,811 | |
| | | | | | | | | |
| | | | | | | | 25,262,887 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 0.8% |
| Hanesbrands, Inc.* | | | 71,382 | | | | 1,247,044 | |
| Phillips-Van Heusen Corp. | | | 39,180 | | | | 960,302 | |
| Timberland Co., Class A* | | | 36,100 | | | | 436,810 | |
| Under Armour, Inc., Class A* | | | 27,800 | | | | 722,800 | |
| Warnaco Group, Inc. (The)* | | | 35,020 | | | | 1,043,946 | |
| | | | | | | | | |
| | | | | | | | 4,410,902 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 1.4% |
| Astoria Financial Corp. | | | 61,520 | | | | 1,170,110 | |
| First Niagara Financial Group, Inc. | | | 89,500 | | | | 1,411,415 | |
| New York Community Bancorp, Inc. | | | 261,164 | | | | 4,089,828 | |
| PMI Group, Inc. (The) | | | 61,687 | | | | 153,601 | |
| Washington Federal, Inc. | | | 67,012 | | | | 1,180,752 | |
| | | | | | | | | |
| | | | | | | | 8,005,706 | |
| | | | | | | | | |
| |
| |
Tobacco 0.1% |
| Universal Corp. | | | 19,440 | | | | 769,630 | |
| | | | | | | | | |
| |
| |
Trading Companies & Distributors 0.5% |
| GATX Corp. | | | 37,200 | | | | 1,062,060 | |
| MSC Industrial Direct Co., Class A | | | 33,400 | | | | 1,197,724 | |
| United Rentals, Inc.* | | | 45,315 | | | | 464,479 | |
| | | | | | | | | |
| | | | | | | | 2,724,263 | |
| | | | | | | | | |
| |
| |
Water Utility 0.3% |
| Aqua America, Inc. | | | 102,826 | | | | 1,850,868 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 0.4% |
| Telephone & Data Systems, Inc. | | | 61,600 | | | | 1,653,960 | |
| Telephone & Data Systems, Inc., Special Shares | | | 17,900 | | | | 490,460 | |
| | | | | | | | | |
| | | | | | | | 2,144,420 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 547,857,204 | |
| | | | | |
2008 Annual Report 79
Statement of Investments (Continued)
October 31, 2008
Nationwide Mid Cap Market Index Fund (Continued)
| | | | | | | | | |
| Common Stocks (continued) |
| |
Wireless Telecommunication Services (continued) |
| | | | | | | | | |
| Repurchase Agreement 2.6% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $14,596,409, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $14,888,238 | | $ | 14,596,312 | | | | 14,596,312 | |
| | | | | | | | | |
| | | | | |
Total Repurchase Agreement | | | 14,596,312 | |
| | | | | |
| | | | | |
Total Investments (Cost $817,035,410) (b) — 99.6% | | | 562,453,516 | |
Other assets in excess of liabilities — 0.4% | | | | | | | 2,036,017 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 564,489,533 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | All or a part of the security was pledged as collateral for futures contracts as of October 31, 2008. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation/ (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
80 Annual Report 2008
As of October 31, 2008, the Fund’s open futures contracts were as follows:
| | | | | | | | | | | | | | | |
| | | | | | | Notional Value
| | Unrealized
|
Number of
| | | | | | Covered by
| | Appreciation/
|
| Contracts | | Long Contracts | | Expiration | | Contracts | | Depreciation |
| |
| 299 | | S&P Mid 400 Emini | | | 12/19/08 | | | $ | 16,995,160 | | | ($ | 1,876,253 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | $ | 16,995,160 | | | ($ | 1,876,253 | ) |
| | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 81
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Mid Cap
| |
| | | Market Index Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $802,439,098) | | | $ | 547,857,204 | |
| Repurchase agreements, at value and cost | | | | 14,596,312 | |
| | | | | | |
| Total Investments | | | | 562,453,516 | |
| | | | | | |
| Cash | | | | 845,604 | |
| Interest and dividends receivable | | | | 427,015 | |
| Receivable for capital shares issued | | | | 206,743 | |
| Receivable for investments sold | | | | 3,989,936 | |
| Receivable for variation margin on futures contracts | | | | 257,418 | |
| Prepaid expenses and other assets | | | | 36,712 | |
| | | | | | |
| Total Assets | | | | 568,216,944 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 3,212,467 | |
| Payable for capital shares redeemed | | | | 257,381 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 85,176 | |
| Fund administration fees | | | | 58,205 | |
| Distribution fees | | | | 27,956 | |
| Administrative servicing fees | | | | 19,630 | |
| Trustee fees | | | | 2,002 | |
| Compliance program costs (Note 3) | | | | 3,009 | |
| Custodian fees | | | | 5,615 | |
| Other | | | | 55,970 | |
| | | | | | |
| Total Liabilities | �� | | | 3,727,411 | |
| | | | | | |
Net Assets | | | $ | 564,489,533 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 792,666,346 | |
| Accumulated undistributed net investment income | | | | 941,085 | |
| Accumulated net realized gains from investment transactions | | | | 27,340,249 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (254,581,894 | ) |
| Net unrealized appreciation/(depreciation) from futures | | | | (1,876,253 | ) |
| | | | | | |
Net Assets | | | $ | 564,489,533 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 124,032,623 | |
| Class B Shares | | | | 576,888 | |
| Class C Shares | | | | 852,181 | |
| Class R Shares | | | | 691 | |
| Institutional Class Shares | | | | 439,027,150 | |
| | | | | | |
| Total | | | $ | 564,489,533 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
82 Annual Report
| | | | | | |
| | | | | |
| | | | Nationwide Mid Cap
| |
| | | | Market Index Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 12,558,595 | |
| Class B Shares | | | | 59,371 | |
| Class C Shares | | | | 88,209 | |
| Class R Shares | | | | 70 | |
| Institutional Class Shares | | | | 44,101,634 | |
| | | | | | |
| Total | | | | 56,807,879 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 9.88 | |
| Class B Shares (a) | | | $ | 9.71 | (c) |
| Class C Shares (b) | | | $ | 9.66 | |
| Class R Shares | | | $ | 9.88 | (c) |
| Institutional Class Shares | | | $ | 9.96 | (c) |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 10.48 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
Annual Report 83
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Mid
| |
| | | | Cap Market Index
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 913,119 | |
| Dividend income | | | | 10,101,732 | |
| Income from securities lending (Note 2) | | | | 13,031 | |
| | | | | | |
| Total Income | | | | 11,027,882 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 1,724,687 | |
| Fund administration fees | | | | 759,144 | |
| Distribution fees Class A | | | | 454,897 | |
| Distribution fees Class B | | | | 8,533 | |
| Distribution fees Class C | | | | 11,753 | |
| Distribution fees Class R | | | | 3 | |
| Administrative servicing fees Class A | | | | 220,423 | |
| Registration and filing fees | | | | 4,432 | |
| Professional fees | | | | 114,357 | |
| Printing fees | | | | 29,991 | |
| Trustee fees | | | | 40,812 | |
| Custodian fees | | | | 79,462 | |
| Other | | | | 171,696 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 3,620,190 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (14,557 | ) |
| Expenses reimbursed by Advisor | | | | (404,937 | ) |
| Administrator fees voluntarily waived | | | | (2,498 | ) |
| | | | | | |
| Net Expenses | | | | 3,198,198 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 7,829,684 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 44,496,778 | |
| Net realized losses from futures transactions | | | | (12,983,221 | ) |
| | | | | | |
| Net realized gains from investments and futures | | | | 31,513,557 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (362,857,778 | ) |
| Net change in unrealized appreciation/(depreciation) from futures | | | | (4,633,383 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments and futures | | | | (367,491,161 | |
| | | | | | |
| Net realized/unrealized losses from investments and futures | | | | (335,977,604 | |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (328,147,920 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
84 Annual Report
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Mid Cap Market Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 7,829,684 | | | | $ | 17,322,794 | |
| Net realized gains from investment and futures transactions | | | | 31,513,557 | | | | | 239,549,565 | (a) |
| Net change in unrealized appreciation/(depreciation) from investments and futures | | | | (367,491,161 | ) | | | | (67,818,526 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (328,147,920 | ) | | | | 189,053,833 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (1,036,665 | ) | | | | (2,699,292 | ) |
| Class B | | | | (1,001 | ) | | | | (7,135 | ) |
| Class C | | | | (1,655 | ) | | | | (7,636 | ) |
| Class R | | | | (6 | ) | | | | (11 | )(b) |
| Institutional Class | | | | (5,954,461 | ) | | | | (17,024,326 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (8,307,848 | ) | | | | (17,564,797 | ) |
| Class B | | | | (38,273 | ) | | | | (85,866 | ) |
| Class C | | | | (53,796 | ) | | | | (81,958 | ) |
| Class R | | | | (42 | ) | | | | (38 | )(b) |
| Institutional Class | | | | (25,633,488 | ) | | | | (103,998,777 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (41,027,235 | ) | | | | (141,469,836 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (12,455,845 | ) | | | | (403,505,609 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (381,631,000 | ) | | | | (355,921,612 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 946,120,533 | | | | | 1,302,042,145 | |
| | | | | | | | | | | |
| End of period | | | $ | 564,489,533 | | | | $ | 946,120,533 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 941,085 | | | | $ | 129,122 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 20,631,612 | | | | $ | 37,249,274 | |
| Dividends reinvested | | | | 9,165,065 | | | | | 19,943,231 | |
| Cost of shares redeemed (c) | | | | (39,773,394 | ) | | | | (40,797,374 | ) |
| | | | | | | | | | | |
| Total Class A | | | | (9,976,717 | ) | | | | 16,395,131 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 41,801 | | | | | 91,113 | |
| Dividends reinvested | | | | 34,376 | | | | | 79,214 | |
| Cost of shares redeemed | | | | (102,705 | ) | | | | (152,969 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (26,528 | ) | | | | 17,358 | |
| | | | | | | | | | | |
| |
| (a) | Includes realized gain as a result of a Redemption In Kind.
|
| |
| (b) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007.
|
| |
| (c) | Includes redemption fees — see Note 4 to Financial Statements.
|
The accompanying notes are an integral part of these financial statements.
Annual Report 85
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Mid Cap Market Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 374,648 | | | | $ | 432,416 | |
| Dividends reinvested | | | | 32,405 | | | | | 44,761 | |
| Cost of shares redeemed | | | | (225,347 | ) | | | | (94,957 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 181,706 | | | | | 382,220 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 1,000 | (b) |
| Dividends reinvested | | | | 48 | | | | | 49 | (b) |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class R | | | | 48 | | | | | 1,049 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 122,549,070 | | | | | 111,553,713 | |
| Dividends reinvested | | | | 31,587,862 | | | | | 121,022,864 | |
| Redemptions in-kind | | | | – | | | | | (609,836,722 | ) |
| Cost of shares redeemed | | | | (156,771,286 | ) | | | | (43,041,222 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | (2,634,354 | ) | | | | (420,301,367 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (12,455,845 | ) | | | $ | (403,505,609 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 1,494,978 | | | | | 2,330,521 | |
| Reinvested | | | | 612,377 | | | | | 1,285,854 | |
| Redeemed | | | | (2,896,769 | ) | | | | (2,562,347 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (789,414 | ) | | | | 1,054,028 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 3,018 | | | | | 5,894 | |
| Reinvested | | | | 2,319 | | | | | 5,182 | |
| Redeemed | | | | (7,827 | ) | | | | (9,755 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (2,490 | ) | | | | 1,321 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 27,053 | | | | | 27,915 | |
| Reinvested | | | | 2,200 | | | | | 2,941 | |
| Redeemed | | | | (17,492 | ) | | | | (6,046 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 11,761 | | | | | 24,810 | |
| | | | | | | | | | | |
| | |
| (b) | | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
86 Annual Report
| | | | | | | | | | | |
| | | | Nationwide Mid Cap Market Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 64 | (b) |
| Reinvested | | | | 3 | | | | | 3 | (b) |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class R Shares | | | | 3 | | | | | 67 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 8,935,502 | | | | | 6,953,807 | |
| Reinvested | | | | 2,103,014 | | | | | 7,749,155 | |
| Redemptions in-kind | | | | – | | | | | (38,524,114 | ) |
| Redeemed | | | | (10,781,477 | ) | | | | (2,706,322 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 257,039 | | | | | (26,527,474 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | (523,101 | ) | | | | (25,447,248 | ) |
| | | | | | | | | | | |
| | |
| (b) | | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
Annual Report 87
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Mid Cap Market Index Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 16 | .40 | | | | 0 | .11 | | | | (5 | .92) | | | | (5 | .81) | | | | (0 | .08) | | | | (0 | .63) | | | | (0 | .71) | | | $ | 9 | .88 | | | | (36 | .87%) | | | $ | 124,032,623 | | | | | 0 | .69% | | | | 0 | .75% | | | | 0 | .74% | | | | 29 | .96% | | |
| Year Ended October 31, 2007 | | | $ | 15 | .64 | | | | 0 | .17 | | | | 2 | .22 | | | | 2 | .39 | | | | (0 | .21) | | | | (1 | .42) | | | | (1 | .63) | | | $ | 16 | .40 | | | | 16 | .20% | | | $ | 218,928,364 | | | | | 0 | .74% | | | | 1 | .05% | | | | 0 | .77% | | | | 21 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 14 | .68 | | | | 0 | .17 | | | | 1 | .63 | | | | 1 | .80 | | | | (0 | .18) | | | | (0 | .66) | | | | (0 | .84) | | | $ | 15 | .64 | | | | 12 | .57% | | | $ | 192,273,970 | | | | | 0 | .71% | | | | 1 | .09% | | | | 0 | .76% | | | | 15 | .59% | | |
| Year Ended October 31, 2005 | | | $ | 12 | .89 | | | | 0 | .12 | | | | 2 | .04 | | | | 2 | .16 | | | | (0 | .11) | | | | (0 | .26) | | | | (0 | .37) | | | $ | 14 | .68 | | | | 16 | .94% | | | $ | 150,304,580 | | | | | 0 | .70% | | | | 0 | .90% | | | | 0 | .77% | | | | 18 | .44% | | |
| Year Ended October 31, 2004 | | | $ | 11 | .87 | | | | 0 | .05 | | | | 1 | .13 | | | | 1 | .18 | | | | (0 | .04) | | | | (0 | .12) | | | | (0 | .16) | | | $ | 12 | .89 | | | | 10 | .07% | | | $ | 65,059,025 | | | | | 0 | .70% | | | | 0 | .50% | | | | 0 | .77% | | | | 15 | .75% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 16 | .18 | | | | 0 | .02 | | | | (5 | .84) | | | | (5 | .82) | | | | (0 | .02) | | | | (0 | .63) | | | | (0 | .65) | | | $ | 9 | .71 | | | | (37 | .36%) | | | $ | 576,888 | | | | | 1 | .32% | | | | 0 | .12% | | | | 1 | .38% | | | | 29 | .96% | | |
| Year Ended October 31, 2007 | | | $ | 15 | .45 | | | | 0 | .08 | | | | 2 | .19 | | | | 2 | .27 | | | | (0 | .12) | | | | (1 | .42) | | | | (1 | .54) | | | $ | 16 | .18 | | | | 15 | .52% | | | $ | 1,000,821 | | | | | 1 | .32% | | | | 0 | .49% | | | | 1 | .36% | | | | 21 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 14 | .50 | | | | 0 | .07 | | | | 1 | .63 | | | | 1 | .70 | | | | (0 | .09) | | | | (0 | .66) | | | | (0 | .75) | | | $ | 15 | .45 | | | | 11 | .98% | | | $ | 935,088 | | | | | 1 | .32% | | | | 0 | .49% | | | | 1 | .37% | | | | 15 | .59% | | |
| Year Ended October 31, 2005 | | | $ | 12 | .75 | | | | 0 | .03 | | | | 2 | .01 | | | | 2 | .04 | | | | (0 | .03) | | | | (0 | .26) | | | | (0 | .29) | | | $ | 14 | .50 | | | | 16 | .15% | | | $ | 884,018 | | | | | 1 | .31% | | | | 0 | .27% | | | | 1 | .38% | | | | 18 | .44% | | |
| Year Ended October 31, 2004 | | | $ | 11 | .77 | | | | (0 | .02) | | | | 1 | .12 | | | | 1 | .10 | | | | – | | | | | (0 | .12) | | | | (0 | .12) | | | $ | 12 | .75 | | | | 9 | .44% | | | $ | 656,523 | | | | | 1 | .31% | | | | (0 | .10%) | | | | 1 | .37% | | | | 15 | .75% | | |
88 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Mid Cap Market Index Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 16 | .09 | | | | 0 | .02 | | | | (5 | .80) | | | | (5 | .78) | | | | (0 | .02) | | | | (0 | .63) | | | | (0 | .65) | | | $ | 9 | .66 | | | | (37 | .31%) | | | $ | 852,181 | | | | | 1 | .32% | | | | 0 | .11% | | | | 1 | .37% | | | | 29 | .96% | | |
| Year Ended October 31, 2007 | | | $ | 15 | .38 | | | | 0 | .08 | | | | 2 | .18 | | | | 2 | .26 | | | | (0 | .13) | | | | (1 | .42) | | | | (1 | .55) | | | $ | 16 | .09 | | | | 15 | .52% | | | $ | 1,230,151 | | | | | 1 | .32% | | | | 0 | .40% | | | | 1 | .36% | | | | 21 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 14 | .46 | | | | 0 | .07 | | | | 1 | .62 | | | | 1 | .69 | | | | (0 | .11) | | | | (0 | .66) | | | | (0 | .77) | | | $ | 15 | .38 | | | | 11 | .96% | | | $ | 794,122 | | | | | 1 | .32% | | | | 0 | .42% | | | | 1 | .37% | | | | 15 | .59% | | |
| Year Ended October 31, 2005 | | | $ | 12 | .74 | | | | 0 | .02 | | | | 2 | .01 | | | | 2 | .03 | | | | (0 | .05) | | | | (0 | .26) | | | | (0 | .31) | | | $ | 14 | .46 | | | | 16 | .13% | | | $ | 224,692 | | | | | 1 | .31% | | | | 0 | .28% | | | | 1 | .39% | | | | 18 | .44% | | |
| Year Ended October 31, 2004 | | | $ | 11 | .76 | | | | (0 | .02) | | | | 1 | .12 | | | | 1 | .10 | | | | – | | | | | (0 | .12) | | | | (0 | .12) | | | $ | 12 | .74 | | | | 9 | .48% | | | $ | 25,592 | | | | | 1 | .31% | | | | (0 | .10%) | | | | 1 | .38% | | | | 15 | .75% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 16 | .39 | | | | 0 | .11 | | | | (5 | .91) | | | | (5 | .80) | | | | (0 | .08) | | | | (0 | .63) | | | | (0 | .71) | | | $ | 9 | .88 | | | | (36 | .84%) | | | $ | 691 | | | | | 0 | .66% | | | | 0 | .77% | | | | 0 | .69% | | | | 29 | .96% | | |
| Period Ended October 31, 2007 (f) | | | $ | 15 | .72 | | | | 0 | .09 | | | | 1 | .35 | | | | 1 | .44 | | | | (0 | .18) | | | | (0 | .59) | | | | (0 | .77) | | | $ | 16 | .39 | | | | 9 | .40% | | | $ | 1,094 | | | | | 0 | .73% | | | | 0 | .74% | | | | 0 | .75% | | | | 21 | .52% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 16 | .53 | | | | 0 | .16 | | | | (5 | .96) | | | | (5 | .80) | | | | (0 | .14) | | | | (0 | .63) | | | | (0 | .77) | | | $ | 9 | .96 | | | | (36 | .63%) | | | $ | 439,027,150 | | | | | 0 | .32% | | | | 1 | .12% | | | | 0 | .37% | | | | 29 | .96% | | |
| Year Ended October 31, 2007 | | | $ | 15 | .75 | | | | 0 | .23 | | | | 2 | .24 | | | | 2 | .47 | | | | (0 | .27) | | | | (1 | .42) | | | | (1 | .69) | | | $ | 16 | .53 | | | | 16 | .66% | | | $ | 724,960,103 | | | | | 0 | .32% | | | | 1 | .67% | | | | 0 | .35% | | | | 21 | .52% | | |
| Year Ended October 31, 2006 | | | $ | 14 | .77 | | | | 0 | .22 | | | | 1 | .65 | | | | 1 | .87 | | | | (0 | .23) | | | | (0 | .66) | | | | (0 | .89) | | | $ | 15 | .75 | | | | 13 | .06% | | | $ | 1,108,038,965 | | | | | 0 | .32% | | | | 1 | .47% | | | | 0 | .37% | | | | 15 | .59% | | |
| Year Ended October 31, 2005 | | | $ | 12 | .96 | | | | 0 | .17 | | | | 2 | .06 | | | | 2 | .23 | | | | (0 | .16) | | | | (0 | .26) | | | | (0 | .42) | | | $ | 14 | .77 | | | | 17 | .41% | | | $ | 857,474,583 | | | | | 0 | .31% | | | | 1 | .27% | | | | 0 | .38% | | | | 18 | .44% | | |
| Year Ended October 31, 2004 | | | $ | 11 | .95 | | | | 0 | .11 | | | | 1 | .13 | | | | 1 | .24 | | | | (0 | .11) | | | | (0 | .12) | | | | (0 | .23) | | | $ | 12 | .96 | | | | 10 | .47% | | | $ | 530,191,467 | | | | | 0 | .31% | | | | 0 | .89% | | | | 0 | .37% | | | | 15 | .75% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 89
| |
| Nationwide S&P 500 Index Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
The Fund seeks to match the performance of the Standard & Poor’s 500® (S&P 500) Index as closely as possible before the deduction of Fund expenses. For the annual period ended October 31, 2008, the Nationwide S&P 500 Index Fund (Class A at NAV) registered -36.42% versus -36.10% for its benchmark, the S&P 500 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of S&P 500 Index Objective Funds (consisting of 180 funds as of October 31, 2008) was -36.41% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
All of the 10 sectors within the benchmark index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%.
What areas of investment detracted from Fund performance?
The weakest-performing sectors in the benchmark index were financials, with -52.09%; information technology, with -41.21%; materials, with -41.18%; industrials, with -38.56%; and telecommunications services, with -38.16%.
What is your outlook for the near term?
Many of the necessary conditions for a market bottom appear to be falling into place. Investor pessimism is widespread, equity valuations are attractive versus alternatives such as Treasuries, and a defining financial crisis has been followed by aggressive policy responses. In addition, a great deal of cash is on the sidelines and the sectors that underperformed the most during the last two months of the reporting period (financials and consumer discretionary) recently have outperformed.
The passage of the government rescue plan and the Federal Reserve Board’s lowering of the target federal funds interest rate by 250 basis points, or 2.50%, during the reporting period should help the market begin the healing process, but a sustained rally in equities will require evidence that the measures are working. In particular, if credit spreads – the difference in the yield between Treasury securities and other fixed-income assets – begin to narrow, it could signal a real and lasting bottom in equity markets.
Ultimately, the economic and financial outlook is likely to remain troubled for some time. The equity markets might enjoy a bounce in the near term, but it also would not be a surprise to see these markets fall back again as the reality of the looming economic challenges sets in.
Subadviser:
BlackRock Investment Management, LLC
Portfolio Managers:
Debra L. Jelilian and Jeffrey L. Russo, CFA
90 Annual Report 2008
| |
| Fund Performance | Nationwide S&P 500 Index Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr. | | Ratio* | | Ratio* |
| |
Class A1 | | w/o SC2 | | | -36.42% | | | | -0.21% | | | | -0.11% | | | | 0.51% | | | | 0.49% | |
| |
| |
| | | w/SC3 | | | -40.07% | | | | -1.38% | | | | -0.70% | | | | | | | | | |
| |
| |
Class B1 | | w/o SC2 | | | -36.89% | | | | -0.93% | | | | -0.72% | | | | 1.25% | | | | 1.23% | |
| | | w/SC4 | | | -39.97% | | | | -1.30% | | | | -0.72% | | | | | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -36.95% | | | | -0.97% | | | | -0.73% | | | | 1.25% | | | | 1.23% | |
| | | w/SC6 | | | -37.57% | | | | -0.97% | | | | -0.73% | | | | | | | | | |
| |
| |
Class R8,9 | | | | | -36.62% | | | | -0.30% | | | | -0.16% | | | | 0.95% | | | | 0.93% | |
| |
| |
Institutional Service Class1,8 | | | | | -36.43% | | | | -0.21% | | | | -0.12% | | | | 0.50% | | | | 0.48% | |
| |
| |
Institutional Class7,8 | | | | | -36.25% | | | | 0.06% | | | | 0.16% | | | | 0.25% | | | | 0.23% | |
| |
| |
Local Fund Shares8 | | | | | -36.37% | | | | -0.03% | | | | 0.03% | | | | 0.32% | | | | 0.30% | |
| |
| |
Service Class1,8 | | | | | -36.60% | | | | -0.36% | | | | -0.30% | | | | 0.65% | | | | 0.63% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns for the period prior to the creation of a particular class include the performance of the Fund’s Local Fund Shares. These returns were achieved prior to the creation of Class A and Class B shares (12/29/99) and Service Class and Institutional Service Class shares (11/2/98). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class B, Service Class and Institutional Service Class shares would have produced because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class A, Class B, Service Class and Institutional Service Class would have been lower. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (10/22/03) include the performance of the Fund’s Local Fund Shares for the period through December 28, 1999 and the Fund’s Class B shares for the period from December 29, 1999 to October 21, 2003. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as the Fund’s other classes. The performance for the Class C shares has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class C shares would have been lower. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | These returns until the creation of the Institutional Class shares (12/29/99) include the performance of the Fund’s Local Fund shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because Institutional Class shares invest in the same portfolio of securities as Local Fund Shares. |
| |
| 8 | | Not subject to any sales charges. |
| |
| 9 | | Class R shares commenced operations on January 30, 2007. The returns shown in the table are based on the performance of the Fund’s Local Fund shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R shares has been restated to reflect differences in sales charges, if any, but does not reflect the higher level of other fees applicable to such class; if these fees were reflected, the performance for Class R shares would have been lower. |
2008 Annual Report 91
| |
| Fund Performance | Nationwide S&P 500 Index Fund |
Continued
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Local Fund Shares of the Nationwide S&P 500 Index Fund, the S&P 500 Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
92 Annual Report 2008
| |
| Shareholder | Nationwide S&P 500 Index Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide S&P 500 Index Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 705.44 | | | | 2.09 | | | | 0.49 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.69 | | | | 2.48 | | | | 0.49 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 703.05 | | | | 5.27 | | | | 1.23 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.95 | | | | 6.26 | | | | 1.23 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 702.34 | | | | 5.26 | | | | 1.23 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.95 | | | | 6.26 | | | | 1.23 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 704.11 | | | | 3.33 | | | | 0.78 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.09 | | | | 3.95 | | | | 0.78 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 705.64 | | | | 1.94 | | | | 0.45 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.86 | | | | 2.30 | | | | 0.45 | |
| |
| |
| Local Fund Shares | | | Actual | | | | 1,000.00 | | | | 705.54 | | | | 1.31 | | | | 0.30 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.61 | | | | 1.55 | | | | 0.30 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 706.15 | | | | 0.99 | | | | 0.23 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.98 | | | | 1.17 | | | | 0.23 | |
| |
| |
| Service Class Shares | | | Actual | | | | 1,000.00 | | | | 704.04 | | | | 2.81 | | | | 0.66 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.84 | | | | 3.34 | | | | 0.66 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 93
| |
| Portfolio Summary | Nationwide S&P 500 Index Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 98.3% | |
| Repurchase Agreement | | | 1.6% | |
| Other assets in excess of liabilities | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Oil, Gas & Consumable Fuels | | | 10.9% | |
| Pharmaceuticals | | | 7.1% | |
| Diversified Financial Services | | | 4.6% | |
| Computers & Peripherals | | | 4.4% | |
| Software | | | 3.7% | |
| Commercial Banks | | | 3.3% | |
| Industrial Conglomerates | | | 3.1% | |
| Food & Staples Retailing | | | 3.1% | |
| Household Products | | | 3.0% | |
| Diversified Telecommunication Services | | | 3.0% | |
| Other | | | 53.8% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Exxon Mobil Corp. | | | 4.5% | |
| General Electric Co. | | | 2.4% | |
| Procter & Gamble Co. | | | 2.3% | |
| Microsoft Corp. | | | 2.0% | |
| Johnson & Johnson | | | 2.0% | |
| AT&T, Inc. | | | 1.8% | |
| Chevron Corp. | | | 1.8% | |
| JPMorgan Chase & Co. | | | 1.8% | |
| International Business Machines Corp. | | | 1.5% | |
| Wal-Mart Stores, Inc. | | | 1.5% | |
| Other | | | 78.4% | |
| | | | | |
| | | �� | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
94 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide S&P 500 Index Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 98.3% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 2.7% |
| Boeing Co. | | | 146,571 | | | $ | 7,661,266 | |
| General Dynamics Corp. | | | 78,762 | | | | 4,750,924 | |
| Goodrich Corp. | | | 24,751 | | | | 904,897 | |
| Honeywell International, Inc. | | | 145,769 | | | | 4,438,666 | |
| L-3 Communications Holdings, Inc. | | | 24,038 | | | | 1,951,164 | |
| Lockheed Martin Corp. | | | 65,922 | | | | 5,606,666 | |
| Northrop Grumman Corp. | | | 67,076 | | | | 3,145,194 | |
| Precision Castparts Corp. | | | 27,200 | | | | 1,762,832 | |
| Raytheon Co. | | | 82,787 | | | | 4,231,244 | |
| Rockwell Collins, Inc. | | | 31,241 | | | | 1,163,102 | |
| United Technologies Corp. | | | 190,356 | | | | 10,461,966 | |
| | | | | | | | | |
| | | | | | | | 46,077,921 | |
| | | | | | | | | |
| |
| |
Air Freight & Logistics 1.0% |
| CH Robinson Worldwide, Inc. | | | 33,200 | | | | 1,719,096 | |
| Expeditors International of Washington, Inc. | | | 39,600 | | | | 1,292,940 | |
| FedEx Corp. | | | 61,802 | | | | 4,039,997 | |
| United Parcel Service, Inc., Class B | | | 199,416 | | | | 10,525,176 | |
| | | | | | | | | |
| | | | | | | | 17,577,209 | |
| | | | | | | | | |
| |
| |
Airline 0.1% |
| Southwest Airlines Co. | | | 146,276 | | | | 1,723,131 | |
| | | | | | | | | |
| |
| |
Auto Components 0.1% |
| Goodyear Tire & Rubber Co. (The)* | | | 43,621 | | | | 389,099 | |
| Johnson Controls, Inc. | | | 114,258 | | | | 2,025,795 | |
| | | | | | | | | |
| | | | | | | | 2,414,894 | |
| | | | | | | | | |
| |
| |
Automobiles 0.2% |
| Ford Motor Co.* | | | 441,800 | | | | 967,542 | |
| General Motors Corp. | | | 113,656 | | | | 656,932 | |
| Harley-Davidson, Inc. | | | 47,027 | | | | 1,151,221 | |
| | | | | | | | | |
| | | | | | | | 2,775,695 | |
| | | | | | | | | |
| |
| |
Beverages 2.8% |
| Anheuser-Busch Cos., Inc. | | | 141,934 | | | | 8,804,166 | |
| Brown-Forman Corp., Class B | | | 20,964 | | | | 951,754 | |
Coca-Cola Co. (The) | | | 392,417 | | | | 17,289,893 | |
Coca-Cola Enterprises, Inc. | | | 57,957 | | | | 582,468 | |
| Constellation Brands, Inc., Class A* | | | 35,200 | | | | 441,408 | |
| Dr. Pepper Snapple Group, Inc.* | | | 51,200 | | | | 1,172,480 | |
| Molson Coors Brewing Co., Class B | | | 28,040 | | | | 1,047,574 | |
| Pepsi Bottling Group, Inc. | | | 26,721 | | | | 617,790 | |
| PepsiCo, Inc. | | | 309,474 | | | | 17,643,113 | |
| | | | | | | | | |
| | | | | | | | 48,550,646 | |
| | | | | | | | | |
Biotechnology 1.9% |
| Amgen, Inc.* | | | 209,248 | | | | 12,531,863 | |
| Biogen Idec, Inc.* | | | 57,572 | | | | 2,449,688 | |
| Celgene Corp.* | | | 90,200 | | | | 5,796,252 | |
| Genzyme Corp.* | | | 53,351 | | | | 3,888,221 | |
| Gilead Sciences, Inc.* | | | 182,100 | | | | 8,349,285 | |
| | | | | | | | | |
| | | | | | | | 33,015,309 | |
| | | | | | | | | |
| |
| |
Building Products 0.0% |
| Masco Corp. | | | 71,727 | | | | 728,029 | |
| | | | | | | | | |
| |
| |
Capital Markets 2.5% |
| American Capital Ltd. | | | 39,800 | | | | 559,190 | |
| Ameriprise Financial, Inc. | | | 43,651 | | | | 942,862 | |
| Bank of New York Mellon Corp. (The) | | | 222,811 | | | | 7,263,639 | |
| Charles Schwab Corp. (The) | | | 180,687 | | | | 3,454,735 | |
| E*Trade Financial Corp.* | | | 109,622 | | | | 199,512 | |
| Federated Investors, Inc., Class B | | | 16,611 | | | | 401,986 | |
| Franklin Resources, Inc. | | | 30,471 | | | | 2,072,028 | |
| Goldman Sachs Group, Inc. (The) | | | 85,922 | | | | 7,947,785 | |
| Invesco Ltd. | | | 76,800 | | | | 1,145,088 | |
| Janus Capital Group, Inc. | | | 28,931 | | | | 339,650 | |
| Legg Mason, Inc. | | | 28,400 | | | | 630,196 | |
| Merrill Lynch & Co., Inc. | | | 302,295 | | | | 5,619,664 | |
| Morgan Stanley | | | 215,642 | | | | 3,767,266 | |
| Northern Trust Corp. | | | 44,036 | | | | 2,479,667 | |
| State Street Corp. | | | 85,677 | | | | 3,714,098 | |
| T. Rowe Price Group, Inc. | | | 49,382 | | | | 1,952,564 | |
| | | | | | | | | |
| | | | | | | | 42,489,930 | |
| | | | | | | | | |
| |
| |
Chemicals 2.1% |
| Air Products & Chemicals, Inc. | | | 42,166 | | | | 2,451,110 | |
| Ashland, Inc. | | | 12,125 | | | | 273,904 | |
| CF Industries Holdings, Inc. | | | 11,300 | | | | 725,347 | |
| Dow Chemical Co. (The) | | | 183,390 | | | | 4,891,011 | |
| E.I. Du Pont de Nemours & Co. | | | 178,750 | | | | 5,720,000 | |
| Eastman Chemical Co. | | | 14,160 | | | | 571,922 | |
| Ecolab, Inc. | | | 35,211 | | | | 1,311,962 | |
| Hercules, Inc. | | | 18,521 | | | | 311,338 | |
| International Flavors & Fragrances, Inc. | | | 14,740 | | | | 469,911 | |
| Monsanto Co. | | | 108,580 | | | | 9,661,448 | |
| PPG Industries, Inc. | | | 32,806 | | | | 1,626,522 | |
| Praxair, Inc. | | | 62,532 | | | | 4,073,960 | |
| Rohm & Haas Co. | | | 25,077 | | | | 1,764,167 | |
| Sigma-Aldrich Corp. | | | 24,750 | | | | 1,085,535 | |
| | | | | | | | | |
| | | | | | | | 34,938,137 | |
| | | | | | | | | |
2008 Annual Report 95
Statement of Investments (Continued)
October 31, 2008
Nationwide S&P 500 Index Fund (Continued)
| | | | | | | | | |
| Common Stocks (continued) |
| |
Commercial Banks 3.3% |
| BB&T Corp. | | | 109,273 | | | $ | 3,917,437 | |
| Comerica, Inc. | | | 31,426 | | | | 867,043 | |
| Fifth Third Bancorp | | | 113,504 | | | | 1,231,518 | |
| First Horizon National Corp. | | | 36,721 | | | | 437,347 | |
| Huntington Bancshares, Inc. | | | 72,320 | | | | 683,424 | |
| KeyCorp | | | 99,472 | | | | 1,216,543 | |
| M&T Bank Corp. | | | 15,761 | | | | 1,278,217 | |
| Marshall & Ilsley Corp. | | | 52,166 | | | | 940,553 | |
| National City Corp. | | | 375,053 | | | | 1,012,643 | |
| PNC Financial Services Group, Inc. | | | 68,401 | | | | 4,560,295 | |
| Regions Financial Corp. | | | 139,085 | | | | 1,542,453 | |
| SunTrust Banks, Inc. | | | 70,426 | | | | 2,826,900 | |
| U.S. Bancorp | | | 344,703 | | | | 10,275,596 | |
| Wachovia Corp. | | | 415,848 | | | | 2,665,586 | |
| Wells Fargo & Co. | | | 653,228 | | | | 22,242,413 | |
| Zions Bancorp | | | 23,720 | | | | 903,969 | |
| | | | | | | | | |
| | | | | | | | 56,601,937 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 0.5% |
| Allied Waste Industries, Inc.* | | | 60,807 | | | | 633,609 | |
| Avery Dennison Corp. | | | 18,716 | | | | 655,434 | |
| Cintas Corp. | | | 26,701 | | | | 632,814 | |
| Equifax, Inc. | | | 24,051 | | | | 627,250 | |
| Monster Worldwide, Inc.* | | | 23,831 | | | | 339,354 | |
| Pitney Bowes, Inc. | | | 40,596 | | | | 1,005,969 | |
| Robert Half International, Inc. | | | 30,306 | | | | 571,874 | |
| RR Donnelley & Sons Co. | | | 38,706 | | | | 641,358 | |
| Waste Management, Inc. | | | 95,813 | | | | 2,992,240 | |
| | | | | | | | | |
| | | | | | | | 8,099,902 | |
| | | | | | | | | |
| |
| |
Communications Equipment 2.5% |
| Ciena Corp.* | | | 18,258 | | | | 175,460 | |
| Cisco Systems, Inc.* | | | 1,166,209 | | | | 20,723,534 | |
| Corning, Inc. | | | 312,722 | | | | 3,386,779 | |
| Harris Corp. | | | 24,900 | | | | 895,155 | |
| JDS Uniphase Corp.* | | | 43,794 | | | | 239,115 | |
| Juniper Networks, Inc.* | | | 108,000 | | | | 2,023,920 | |
| Motorola, Inc. | | | 438,328 | | | | 2,353,821 | |
| QUALCOMM, Inc. | | | 323,978 | | | | 12,395,398 | |
| Tellabs, Inc.* | | | 80,952 | | | | 343,237 | |
| | | | | | | | | |
| | | | | | | | 42,536,419 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 4.4% |
| Apple, Inc.* | | | 174,874 | | | | 18,814,693 | |
| Dell, Inc.* | | | 345,158 | | | | 4,193,670 | |
| EMC Corp.* | | | 410,387 | | | | 4,834,359 | |
| Hewlett-Packard Co. | | | 483,490 | | | | 18,507,997 | |
| International Business Machines Corp. | | | 267,510 | | | | 24,870,405 | |
| Lexmark International, Inc., Class A* | | | 19,501 | | | | 503,711 | |
| NetApp, Inc.* | | | 67,084 | | | | 907,646 | |
| QLogic Corp.* | | | 26,990 | | | | 324,420 | |
| SanDisk Corp.* | | | 44,400 | | | | 394,716 | |
| Seagate Technology *(a)(b) | | | 5,600 | | | | 0 | |
| Sun Microsystems, Inc.* | | | 152,920 | | | | 703,432 | |
| Teradata Corp.* | | | 36,000 | | | | 554,040 | |
| | | | | | | | | |
| | | | | | | | 74,609,089 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 0.1% |
| Fluor Corp. | | | 35,670 | | | | 1,424,303 | |
| Jacobs Engineering Group, Inc.* | | | 23,300 | | | | 848,819 | |
| | | | | | | | | |
| | | | | | | | 2,273,122 | |
| | | | | | | | | |
| |
| |
Construction Materials 0.1% |
| Vulcan Materials Co. | | | 21,476 | | | | 1,165,717 | |
| | | | | | | | | |
| |
| |
Consumer Finance 0.8% |
| American Express Co. | | | 229,557 | | | | 6,312,817 | |
| Capital One Financial Corp. | | | 74,486 | | | | 2,913,892 | |
| Discover Financial Services | | | 93,521 | | | | 1,145,632 | |
| MasterCard, Inc., Class A | | | 14,396 | | | | 2,128,017 | |
| SLM Corp.* | | | 87,022 | | | | 928,525 | |
| | | | | | | | | |
| | | | | | | | 13,428,883 | |
| | | | | | | | | |
| |
| |
Containers & Packaging 0.1% |
| Ball Corp. | | | 19,830 | | | | 678,186 | |
| Bemis Co., Inc. | | | 19,396 | | | | 481,797 | |
| Pactiv Corp.* | | | 22,736 | | | | 535,660 | |
| Sealed Air Corp. | | | 29,994 | | | | 507,498 | |
| | | | | | | | | |
| | | | | | | | 2,203,141 | |
| | | | | | | | | |
| |
| |
Distributors 0.1% |
| Genuine Parts Co. | | | 31,116 | | | | 1,224,415 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 0.2% |
| Apollo Group, Inc., Class A* | | | 21,726 | | | | 1,510,174 | |
| H&R Block, Inc. | | | 61,472 | | | | 1,212,228 | |
| | | | | | | | | |
| | | | | | | | 2,722,402 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 4.6% |
| Bank of America Corp. | | | 998,997 | | | | 24,145,758 | |
| CIT Group, Inc. | | | 59,500 | | | | 246,330 | |
| Citigroup, Inc. | | | 1,075,088 | | | | 14,674,951 | |
| CME Group, Inc. | | | 13,302 | | | | 3,753,159 | |
| IntercontinentalExchange, Inc.* | | | 14,900 | | | | 1,274,844 | |
| JPMorgan Chase & Co. | | | 727,309 | | | | 30,001,496 | |
| Leucadia National Corp. | | | 33,100 | | | | 888,404 | |
| Moody’s Corp. | | | 39,902 | | | | 1,021,491 | |
| Nasdaq OMX Group, Inc. (The)* | | | 27,300 | | | | 886,158 | |
| NYSE Euronext | | | 53,000 | | | | 1,599,540 | |
| | | | | | | | | |
| | | | | | | | 78,492,131 | |
| | | | | | | | | |
| | | | | | | | | |
96 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
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Diversified Telecommunication Services 3.0% |
| AT&T, Inc.(c) | | | 1,163,413 | | | $ | 31,144,566 | |
| CenturyTel, Inc. | | | 20,976 | | | | 526,707 | |
| Embarq Corp. | | | 28,335 | | | | 850,050 | |
| Frontier Communications Corp. | | | 64,336 | | | | 489,597 | |
| Qwest Communications International, Inc. | | | 297,730 | | | | 851,508 | |
| Verizon Communications, Inc. | | | 562,180 | | | | 16,679,881 | |
| Windstream Corp. | | | 80,582 | | | | 605,171 | |
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| | | | | | | | 51,147,480 | |
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Electric Utilities 2.2% |
| Allegheny Energy, Inc. | | | 33,596 | | | | 1,012,919 | |
| American Electric Power Co., Inc. | | | 78,997 | | | | 2,577,672 | |
| Duke Energy Corp. | | | 251,181 | | | | 4,114,345 | |
| Edison International | | | 61,832 | | | | 2,200,601 | |
| Entergy Corp. | | | 38,076 | | | | 2,971,832 | |
| Exelon Corp. | | | 130,198 | | | | 7,061,939 | |
| FirstEnergy Corp. | | | 60,600 | | | | 3,160,896 | |
| FPL Group, Inc. | | | 81,132 | | | | 3,832,676 | |
| Pepco Holdings, Inc. | | | 38,600 | | | | 797,090 | |
| Pinnacle West Capital Corp. | | | 21,725 | | | | 687,596 | |
| PPL Corp. | | | 72,862 | | | | 2,391,331 | |
| Progress Energy, Inc. | | | 49,351 | | | | 1,942,949 | |
| Southern Co. | | | 152,749 | | | | 5,245,401 | |
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| | | | | | | | 37,997,247 | |
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Electrical Equipment 0.4% |
| Cooper Industries Ltd., Class A | | | 33,660 | | | | 1,041,777 | |
| Emerson Electric Co. | | | 150,564 | | | | 4,927,960 | |
| Rockwell Automation, Inc. | | | 28,576 | | | | 790,698 | |
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| | | | | | | | 6,760,435 | |
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Electronic Equipment & Instruments 0.3% |
| Agilent Technologies, Inc.* | | | 69,676 | | | | 1,546,110 | |
| Amphenol Corp., Class A | | | 35,400 | | | | 1,014,210 | |
| Jabil Circuit, Inc. | | | 36,241 | | | | 304,787 | |
| Molex, Inc. | | | 27,621 | | | | 398,019 | |
| Tyco Electronics Ltd. | | | 92,375 | | | | 1,795,770 | |
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| | | | | | | | 5,058,896 | |
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Energy Equipment & Services 2.1% |
| Baker Hughes, Inc. | | | 61,247 | | | | 2,140,583 | |
| BJ Services Co. | | | 59,192 | | | | 760,617 | |
| Cameron International Corp.* | | | 43,600 | | | | 1,057,736 | |
| ENSCO International, Inc. | | | 29,100 | | | | 1,106,091 | |
| Halliburton Co. | | | 173,924 | | | | 3,441,956 | |
| Nabors Industries Ltd.* | | | 56,454 | | | | 811,809 | |
| National Oilwell Varco, Inc.* | | | 82,788 | | | | 2,474,533 | |
| Noble Corp. | | | 53,662 | | | | 1,728,453 | |
| Rowan Cos., Inc. | | | 22,986 | | | | 416,966 | |
| Schlumberger Ltd. | | | 236,836 | | | | 12,232,579 | |
| Smith International, Inc. | | | 43,100 | | | | 1,486,088 | |
| Transocean, Inc. | | | 63,152 | | | | 5,199,304 | |
| Weatherford International Ltd.* | | | 135,400 | | | | 2,285,552 | |
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| | | | | | | | 35,142,267 | |
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Food & Staples Retailing 3.1% |
| Costco Wholesale Corp. | | | 86,257 | | | | 4,917,512 | |
| CVS Caremark Corp. | | | 283,299 | | | | 8,683,114 | |
| Kroger Co. (The) | | | 130,109 | | | | 3,572,793 | |
| Safeway, Inc. | | | 86,782 | | | | 1,845,853 | |
| SUPERVALU, Inc. | | | 39,279 | | | | 559,333 | |
| SYSCO Corp. | | | 119,633 | | | | 3,134,385 | |
| Wal-Mart Stores, Inc. | | | 442,682 | | | | 24,706,082 | |
| Walgreen Co. | | | 195,425 | | | | 4,975,521 | |
| Whole Foods Market, Inc. | | | 29,600 | | | | 317,312 | |
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| | | | | | | | 52,711,905 | |
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Food Products 1.7% |
| Archer-Daniels-Midland Co. | | | 127,943 | | | | 2,652,258 | |
| Campbell Soup Co. | | | 40,032 | | | | 1,519,215 | |
| ConAgra Foods, Inc. | | | 90,628 | | | | 1,578,740 | |
| Dean Foods Co.* | | | 27,200 | | | | 594,592 | |
| General Mills, Inc. | | | 66,762 | | | | 4,522,458 | |
| H.J. Heinz Co. | | | 62,957 | | | | 2,758,776 | |
| Hershey Co. (The) | | | 34,422 | | | | 1,281,875 | |
| Kellogg Co. | | | 49,942 | | | | 2,518,076 | |
| Kraft Foods, Inc., Class A | | | 300,467 | | | | 8,755,608 | |
| McCormick & Co., Inc., Non-Voting Shares | | | 24,346 | | | | 819,486 | |
| Sara Lee Corp. | | | 137,399 | | | | 1,536,121 | |
| Tyson Foods, Inc., Class A | | | 53,700 | | | | 469,338 | |
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| | | | | | | | 29,006,543 | |
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Health Care Equipment & Supplies 2.3% |
| Baxter International, Inc. | | | 124,273 | | | | 7,517,274 | |
| Becton, Dickinson & Co. | | | 46,986 | | | | 3,260,828 | |
| Boston Scientific Corp.* | | | 290,418 | | | | 2,622,475 | |
| C.R. Bard, Inc. | | | 19,886 | | | | 1,754,939 | |
| Covidien Ltd. | | | 99,475 | | | | 4,405,748 | |
| Hospira, Inc.* | | | 29,146 | | | | 810,842 | |
| Intuitive Surgical, Inc.* | | | 7,728 | | | | 1,335,321 | |
| Medtronic, Inc. | | | 223,306 | | | | 9,005,931 | |
| St. Jude Medical, Inc.* | | | 67,922 | | | | 2,583,074 | |
| Stryker Corp. | | | 47,177 | | | | 2,522,082 | |
| Varian Medical Systems, Inc.* | | | 25,000 | | | | 1,137,750 | |
| Zimmer Holdings, Inc.* | | | 44,846 | | | | 2,082,200 | |
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| | | | | | | | 39,038,464 | |
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2008 Annual Report 97
Statement of Investments (Continued)
October 31, 2008
Nationwide S&P 500 Index Fund (Continued)
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| Common Stocks (continued) |
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Health Care Equipment & Supplies (continued) |
Health Care Providers & Services 1.8% |
| Aetna, Inc. | | | 93,484 | | | $ | 2,324,947 | |
| AmerisourceBergen Corp. | | | 31,852 | | | | 996,012 | |
| Cardinal Health, Inc. | | | 68,997 | | | | 2,635,685 | |
| CIGNA Corp. | | | 52,983 | | | | 863,623 | |
| Coventry Health Care, Inc.* | | | 29,800 | | | | 393,062 | |
| DaVita, Inc.* | | | 21,400 | | | | 1,214,450 | |
| Express Scripts, Inc.* | | | 48,940 | | | | 2,966,253 | |
| Humana, Inc.* | | | 31,861 | | | | 942,767 | |
| Laboratory Corp. of America Holdings* | | | 22,300 | | | | 1,371,227 | |
| McKesson Corp. | | | 53,647 | | | | 1,973,673 | |
| Medco Health Solutions, Inc.* | | | 100,352 | | | | 3,808,359 | |
| Patterson Cos., Inc.* | | | 20,400 | | | | 516,732 | |
| Quest Diagnostics, Inc. | | | 31,672 | | | | 1,482,250 | |
| Tenet Healthcare Corp.* | | | 85,187 | | | | 373,119 | |
| UnitedHealth Group, Inc. | | | 237,418 | | | | 5,633,929 | |
| WellPoint, Inc.* | | | 101,002 | | | | 3,925,948 | |
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Health Care Technology 0.0% |
| IMS Health, Inc. | | | 35,774 | | | | 512,999 | |
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Hotels, Restaurants & Leisure 1.4% |
| Carnival Corp. | | | 86,963 | | | | 2,208,860 | |
| Darden Restaurants, Inc. | | | 28,376 | | | | 629,096 | |
| International Game Technology | | | 60,232 | | | | 843,248 | |
| Marriott International, Inc., Class A | | | 59,762 | | | | 1,247,233 | |
| McDonald’s Corp. | | | 222,441 | | | | 12,886,007 | |
| Starbucks Corp.* | | | 145,524 | | | | 1,910,730 | |
| Starwood Hotels & Resorts Worldwide, Inc. | | | 37,424 | | | | 843,537 | |
| Wyndham Worldwide Corp. | | | 36,629 | | | | 299,991 | |
| Yum! Brands, Inc. | | | 91,462 | | | | 2,653,313 | |
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Household Durables 0.4% |
| Black & Decker Corp. | | | 10,965 | | | | 555,048 | |
| Centex Corp. | | | 25,481 | | | | 312,142 | |
| D.R. Horton, Inc. | | | 55,700 | | | | 411,066 | |
| Fortune Brands, Inc. | | | 27,986 | | | | 1,067,386 | |
| Harman International Industries, Inc. | | | 11,600 | | | | 213,092 | |
| KB Home | | | 15,830 | | | | 264,203 | |
| Leggett & Platt, Inc. | | | 33,201 | | | | 576,369 | |
| Lennar Corp., Class A | | | 29,067 | | | | 224,979 | |
| Newell Rubbermaid, Inc. | | | 49,942 | | | | 686,703 | |
| Pulte Homes, Inc. | | | 43,382 | | | | 483,275 | |
| Snap-on, Inc. | | | 10,770 | | | | 397,952 | |
| Stanley Works (The) | | | 13,280 | | | | 434,787 | |
| Whirlpool Corp. | | | 14,917 | | | | 695,878 | |
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Household Products 3.0% |
| Clorox Co. | | | 27,686 | | | | 1,683,586 | |
| Colgate-Palmolive Co. | | | 100,208 | | | | 6,289,054 | |
| Kimberly-Clark Corp. | | | 82,387 | | | | 5,049,499 | |
| Procter & Gamble Co. | | | 599,003 | | | | 38,659,654 | |
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Independent Power Producers & Energy Traders 0.1% |
| AES Corp. (The)* | | | 132,893 | | | | 1,059,157 | |
| Constellation Energy Group, Inc. | | | 35,686 | | | | 863,958 | |
| Dynegy, Inc., Class A* | | | 103,503 | | | | 376,751 | |
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Industrial Conglomerates 3.1% |
| 3M Co. | | | 138,389 | | | | 8,898,413 | |
| General Electric Co. | | | 2,086,232 | | | | 40,702,386 | |
| Textron, Inc. | | | 46,392 | | | | 821,138 | |
| Tyco International Ltd. | | | 93,075 | | | | 2,352,936 | |
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Information Technology Services 0.7% |
| Affiliated Computer Services, Inc., Class A* | | | 20,041 | | | | 821,681 | |
| Automatic Data Processing, Inc. | | | 97,978 | | | | 3,424,331 | |
| Cognizant Technology Solutions Corp., Class A * | | | 58,400 | | | | 1,121,280 | |
| Computer Sciences Corp.* | | | 29,481 | | | | 889,147 | |
| Convergys Corp.* | | | 25,182 | | | | 193,650 | |
| Fidelity National Information Services, Inc. | | | 33,800 | | | | 510,042 | |
| Fiserv, Inc.* | | | 32,866 | | | | 1,096,410 | |
| Paychex, Inc. | | | 64,052 | | | | 1,828,044 | |
| Total System Services, Inc. | | | 38,200 | | | | 524,868 | |
| Unisys Corp.* | | | 61,462 | | | | 93,422 | |
| Western Union Co. (The) | | | 144,152 | | | | 2,199,759 | |
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| | | | | | | | 12,702,634 | |
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Insurance 2.4% |
| Aflac, Inc. | | | 94,513 | | | | 4,185,036 | |
| Allstate Corp. (The) | | | 107,514 | | | | 2,837,294 | |
| American International Group, Inc. | | | 506,866 | | | | 968,114 | |
| AON Corp. | | | 56,027 | | | | 2,369,942 | |
| Assurant, Inc. | | | 23,900 | | | | 608,972 | |
| Chubb Corp. | | | 71,762 | | | | 3,718,707 | |
| Cincinnati Financial Corp. | | | 32,189 | | | | 836,592 | |
| Genworth Financial, Inc., Class A | | | 84,200 | | | | 407,528 | |
| Hartford Financial Services Group, Inc. | | | 60,571 | | | | 625,093 | |
| Lincoln National Corp. | | | 50,356 | | | | 868,137 | |
| Loews Corp. | | | 71,813 | | | | 2,384,910 | |
| Marsh & McLennan Cos., Inc. | | | 101,893 | | | | 2,987,503 | |
98 Annual Report 2008
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Common Stocks (continued) |
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Insurance (continued) |
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| MBIA, Inc. | | | 34,376 | | | $ | 337,916 | |
| MetLife, Inc. | | | 150,379 | | | | 4,995,590 | |
| Principal Financial Group, Inc. | | | 49,107 | | | | 932,542 | |
| Progressive Corp. (The) | | | 135,000 | | | | 1,926,450 | |
| Prudential Financial, Inc. | | | 84,643 | | | | 2,539,290 | |
| Torchmark Corp. | | | 17,631 | | | | 736,447 | |
| Travelers Cos., Inc. (The) | | | 117,315 | | | | 4,991,753 | |
| Unum Group | | | 64,449 | | | | 1,015,072 | |
| XL Capital Ltd., Class A | | | 62,746 | | | | 608,636 | |
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| | | | | | | | 40,881,524 | |
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Internet & Catalog Retail 0.2% |
| Amazon.com, Inc.* | | | 63,300 | | | | 3,623,292 | |
| Expedia, Inc.* | | | 40,600 | | | | 386,106 | |
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Internet Software & Services 1.5% |
| Akamai Technologies, Inc.* | | | 33,900 | | | | 487,482 | |
| eBay, Inc.* | | | 212,976 | | | | 3,252,144 | |
| Google, Inc., Class A* | | | 47,180 | | | | 16,954,605 | |
| VeriSign, Inc.* | | | 39,000 | | | | 826,800 | |
| Yahoo!, Inc.* | | | 274,448 | | | | 3,518,423 | |
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Leisure Equipment & Products 0.1% |
| Eastman Kodak Co. | | | 56,946 | | | | 522,764 | |
| Hasbro, Inc. | | | 26,221 | | | | 762,245 | |
| Mattel, Inc. | | | 67,423 | | | | 1,012,693 | |
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| | | | | | | | 2,297,702 | |
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Life Sciences Tools & Services 0.4% |
| Applied Biosystems, Inc. | | | 34,271 | | | | 1,056,575 | |
| Millipore Corp.* | | | 9,525 | | | | 494,252 | |
| PerkinElmer, Inc. | | | 20,296 | | | | 364,110 | |
| Thermo Fisher Scientific, Inc.* | | | 80,976 | | | | 3,287,626 | |
| Waters Corp.* | | | 19,971 | | | | 874,730 | |
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| | | | | | | | 6,077,293 | |
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Machinery 1.5% |
| Caterpillar, Inc. | | | 120,564 | | | | 4,601,928 | |
| Cummins, Inc. | | | 38,500 | | | | 995,225 | |
| Danaher Corp. | | | 49,747 | | | | 2,947,012 | |
| Deere & Co. | | | 83,792 | | | | 3,231,019 | |
| Dover Corp. | | | 36,756 | | | | 1,167,738 | |
| Eaton Corp. | | | 32,736 | | | | 1,460,026 | |
| Flowserve Corp. | | | 11,600 | | | | 660,272 | |
| Illinois Tool Works, Inc. | | | 78,894 | | | | 2,634,271 | |
| Ingersoll-Rand Co. Ltd., Class A | | | 61,368 | | | | 1,132,240 | |
| ITT Corp. | | | 34,160 | | | | 1,520,120 | |
| Manitowoc Co., Inc. (The) | | | 24,100 | | | | 237,144 | |
| PACCAR, Inc. | | | 72,291 | | | | 2,113,789 | |
| Pall Corp. | | | 21,491 | | | | 567,577 | |
| Parker Hannifin Corp. | | | 32,834 | | | | 1,272,974 | |
| Terex Corp.* | | | 19,300 | | | | 322,117 | |
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| | | | | | | | 24,863,452 | |
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Media 2.5% |
| CBS Corp., Class B | | | 133,237 | | | | 1,293,731 | |
| Comcast Corp., Class A | | | 576,162 | | | | 9,080,313 | |
| DIRECTV Group, Inc. (The)* | | | 116,400 | | | | 2,547,996 | |
| Gannett Co., Inc. | | | 45,976 | | | | 505,736 | |
| Interpublic Group of Cos., Inc.* | | | 84,078 | | | | 436,365 | |
| McGraw-Hill Cos., Inc. (The) | | | 60,402 | | | | 1,621,190 | |
| Meredith Corp. | | | 7,935 | | | | 153,701 | |
| New York Times Co. (The), Class A | | | 26,906 | | | | 269,060 | |
| News Corp., Class A | | | 445,300 | | | | 4,737,992 | |
| Omnicom Group, Inc. | | | 62,682 | | | | 1,851,626 | |
| Scripps Networks Interactive, Inc., Class A | | | 17,700 | | | | 502,680 | |
| Time Warner, Inc. | | | 707,443 | | | | 7,138,100 | |
| Viacom, Inc., Class B* | | | 122,137 | | | | 2,469,610 | |
| Walt Disney Co. (The) | | | 371,340 | | | | 9,617,706 | |
| Washington Post Co. (The), Class B | | | 1,232 | | | | 525,818 | |
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| | | | | | | | 42,751,624 | |
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Metals & Mining 0.6% |
| AK Steel Holding Corp. | | | 22,000 | | | | 306,240 | |
| Alcoa, Inc. | | | 161,526 | | | | 1,859,164 | |
| Allegheny Technologies, Inc. | | | 19,975 | | | | 530,137 | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 76,114 | | | | 2,214,917 | |
| Newmont Mining Corp. | | | 90,832 | | | | 2,392,515 | |
| Nucor Corp. | | | 62,960 | | | | 2,550,510 | |
| Titanium Metals Corp. | | | 17,800 | | | | 165,718 | |
| United States Steel Corp. | | | 23,431 | | | | 864,135 | |
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| | | | | | | | 10,883,336 | |
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Multi-Utility 1.3% |
| Ameren Corp. | | | 41,356 | | | | 1,342,002 | |
| CenterPoint Energy, Inc. | | | 60,442 | | | | 696,292 | |
| CMS Energy Corp. | | | 45,056 | | | | 461,824 | |
| Consolidated Edison, Inc. | | | 54,526 | | | | 2,362,066 | |
| Dominion Resources, Inc. | | | 112,088 | | | | 4,066,553 | |
| DTE Energy Co. | | | 33,591 | | | | 1,185,762 | |
| Integrys Energy Group, Inc. | | | 13,209 | | | | 628,748 | |
| NiSource, Inc. | | | 47,058 | | | | 609,872 | |
| PG&E Corp. | | | 68,072 | | | | 2,496,200 | |
| Public Service Enterprise Group, Inc. | | | 97,722 | | | | 2,750,874 | |
| Sempra Energy | | | 49,181 | | | | 2,094,619 | |
| TECO Energy, Inc. | | | 45,081 | | | | 520,235 | |
2008 Annual Report 99
Statement of Investments (Continued)
October 31, 2008
Nationwide S&P 500 Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
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| |
Multi-Utility (continued) |
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| Wisconsin Energy Corp. | | | 23,500 | | | $ | 1,022,250 | |
| Xcel Energy, Inc. | | | 82,887 | | | | 1,443,892 | |
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| | | | | | | | 21,681,189 | |
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Multiline Retail 0.7% |
| Big Lots, Inc.* | | | 17,651 | | | | 431,214 | |
| Family Dollar Stores, Inc. | | | 28,206 | | | | 759,023 | |
| J.C. Penney Co., Inc. | | | 44,281 | | | | 1,059,202 | |
| Kohl’s Corp.* | | | 60,497 | | | | 2,125,260 | |
| Macy’s, Inc. | | | 84,052 | | | | 1,032,999 | |
| Nordstrom, Inc. | | | 32,992 | | | | 596,825 | |
| Sears Holdings Corp.* | | | 11,661 | | | | 673,306 | |
| Target Corp. | | | 149,390 | | | | 5,993,527 | |
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| | | | | | | | 12,671,356 | |
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Natural Gas Utility 0.1% |
| Nicor, Inc. | | | 7,905 | | | | 365,290 | |
| Questar Corp. | | | 32,200 | | | | 1,109,612 | |
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| | | | | | | | 1,474,902 | |
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Office Electronics 0.1% |
| Xerox Corp. | | | 174,154 | | | | 1,396,715 | |
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Oil, Gas & Consumable Fuels 10.9% |
| Anadarko Petroleum Corp. | | | 93,076 | | | | 3,285,583 | |
| Apache Corp. | | | 66,224 | | | | 5,452,222 | |
| Cabot Oil & Gas Corp. | | | 21,000 | | | | 589,470 | |
| Chesapeake Energy Corp. | | | 103,500 | | | | 2,273,895 | |
| Chevron Corp. | | | 405,643 | | | | 30,260,968 | |
| ConocoPhillips | | | 300,056 | | | | 15,608,913 | |
| CONSOL Energy, Inc. | | | 35,500 | | | | 1,114,345 | |
| Devon Energy Corp. | | | 87,508 | | | | 7,075,897 | |
| El Paso Corp. | | | 140,213 | | | | 1,360,066 | |
| EOG Resources, Inc. | | | 49,382 | | | | 3,995,991 | |
| Exxon Mobil Corp. | | | 1,025,461 | | | | 76,007,169 | |
| Hess Corp. | | | 54,860 | | | | 3,303,121 | |
| Marathon Oil Corp. | | | 139,824 | | | | 4,068,878 | |
| Massey Energy Co. | | | 17,100 | | | | 394,839 | |
| Murphy Oil Corp. | | | 38,000 | | | | 1,924,320 | |
| Noble Energy, Inc. | | | 34,500 | | | | 1,787,790 | |
| Occidental Petroleum Corp. | | | 161,354 | | | | 8,961,601 | |
| Peabody Energy Corp. | | | 53,700 | | | | 1,853,187 | |
| Pioneer Natural Resources Co. | | | 24,000 | | | | 667,920 | |
| Range Resources Corp. | | | 31,000 | | | | 1,308,820 | |
| Southwestern Energy Co.* | | | 67,300 | | | | 2,397,226 | |
| Spectra Energy Corp. | | | 119,040 | | | | 2,301,043 | |
| Sunoco, Inc. | | | 23,520 | | | | 717,360 | |
| Tesoro Corp. | | | 28,100 | | | | 271,727 | |
| Valero Energy Corp. | | | 103,784 | | | | 2,135,875 | |
| Williams Cos., Inc. | | | 114,838 | | | | 2,408,153 | |
| XTO Energy, Inc. | | | 108,923 | | | | 3,915,782 | |
| | | | | | | | | |
| | | | | | | | 185,442,161 | |
| | | | | | | | | |
Paper & Forest Products 0.2% |
| International Paper Co. | | | 85,258 | | | | 1,468,143 | |
| MeadWestvaco Corp. | | | 33,847 | | | | 474,873 | |
| Weyerhaeuser Co. | | | 42,801 | | | | 1,635,854 | |
| | | | | | | | | |
| | | | | | | | 3,578,870 | |
| | | | | | | | | |
| |
| |
Personal Products 0.2% |
| Avon Products, Inc. | | | 83,517 | | | | 2,073,727 | |
| Estee Lauder Cos., Inc. (The), Class A | | | 23,100 | | | | 832,524 | |
| | | | | | | | | |
| | | | | | | | 2,906,251 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 7.1% |
| Abbott Laboratories | | | 304,763 | | | | 16,807,680 | |
| Allergan, Inc. | | | 61,132 | | | | 2,425,106 | |
| Barr Pharmaceuticals, Inc.* | | | 20,500 | | | | 1,317,330 | |
| Bristol-Myers Squibb Co. | | | 392,040 | | | | 8,056,422 | |
| Eli Lilly & Co. | | | 198,091 | | | | 6,699,438 | |
| Forest Laboratories, Inc.* | | | 60,832 | | | | 1,413,127 | |
| Johnson & Johnson | | | 551,725 | | | | 33,842,812 | |
| King Pharmaceuticals, Inc.* | | | 45,023 | | | | 395,752 | |
| Merck & Co., Inc. | | | 422,976 | | | | 13,091,107 | |
| Mylan, Inc.* | | | 61,551 | | | | 527,492 | |
| Pfizer, Inc. | | | 1,330,834 | | | | 23,569,070 | |
| Schering-Plough Corp. | | | 317,527 | | | | 4,600,966 | |
| Watson Pharmaceuticals, Inc.* | | | 19,106 | | | | 500,004 | |
| Wyeth | | | 263,772 | | | | 8,488,183 | |
| | | | | | | | | |
| | | | | | | | 121,734,489 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 1.1% |
| Apartment Investment & Management Co., Class A | | | 19,017 | | | | 278,219 | |
| AvalonBay Communities, Inc. | | | 15,500 | | | | 1,100,810 | |
| Boston Properties, Inc. | | | 23,900 | | | | 1,694,032 | |
| Developers Diversified Realty Corp. | | | 25,200 | | | | 331,884 | |
| Equity Residential | | | 54,111 | | | | 1,890,097 | |
| General Growth Properties, Inc. | | | 48,100 | | | | 199,134 | |
| HCP, Inc. | | | 49,300 | | | | 1,475,549 | |
| Host Hotels & Resorts, Inc. | | | 104,400 | | | | 1,079,496 | |
| Kimco Realty Corp. | | | 45,800 | | | | 1,034,164 | |
| Plum Creek Timber Co., Inc. | | | 34,361 | | | | 1,280,978 | |
| ProLogis | | | 52,351 | | | | 732,914 | |
| Public Storage | | | 25,000 | | | | 2,037,500 | |
| Simon Property Group, Inc. | | | 44,701 | | | | 2,996,308 | |
| Vornado Realty Trust | | | 27,300 | | | | 1,926,015 | |
| | | | | | | | | |
| | | | | | | | 18,057,100 | |
| | | | | | | | | |
| |
| |
Real Estate Management & Development 0.0% |
| CB Richard Ellis Group, Inc., Class A* | | | 34,900 | | | | 244,649 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
100 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Road & Rail 1.2% |
| Burlington Northern Santa Fe Corp. | | | 56,052 | | | $ | 4,991,991 | |
| CSX Corp. | | | 80,912 | | | | 3,699,297 | |
| Norfolk Southern Corp. | | | 74,437 | | | | 4,461,754 | |
| Ryder System, Inc. | | | 11,405 | | | | 451,866 | |
| Union Pacific Corp. | | | 100,932 | | | | 6,739,229 | |
| | | | | | | | | |
| | | | | | | | 20,344,137 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 2.3% |
| Advanced Micro Devices, Inc.* | | | 121,342 | | | | 424,697 | |
| Altera Corp. | | | 60,382 | | | | 1,047,628 | |
| Analog Devices, Inc. | | | 58,257 | | | | 1,244,369 | |
| Applied Materials, Inc. | | | 266,719 | | | | 3,443,342 | |
| Broadcom Corp., Class A* | | | 87,996 | | | | 1,502,972 | |
| Intel Corp. | | | 1,109,938 | | | | 17,759,008 | |
| KLA-Tencor Corp. | | | 34,821 | | | | 809,588 | |
| Linear Technology Corp. | | | 45,767 | | | | 1,037,996 | |
| LSI Corp.* | | | 125,582 | | | | 483,491 | |
| MEMC Electronic Materials, Inc.* | | | 44,400 | | | | 816,072 | |
| Microchip Technology, Inc. | | | 37,100 | | | | 913,773 | |
| Micron Technology, Inc.* | | | 154,068 | | | | 725,660 | |
| National Semiconductor Corp. | | | 42,377 | | | | 558,105 | |
| Novellus Systems, Inc.* | | | 20,621 | | | | 325,812 | |
| NVIDIA Corp.* | | | 111,433 | | | | 976,153 | |
| Teradyne, Inc.* | | | 34,701 | | | | 176,975 | |
| Texas Instruments, Inc. | | | 259,859 | | | | 5,082,842 | |
| Xilinx, Inc. | | | 55,622 | | | | 1,024,557 | |
| | | | | | | | | |
| | | | | | | | 38,353,040 | |
| | | | | | | | | |
| |
| |
Software 3.7% |
| Adobe Systems, Inc.* | | | 105,242 | | | | 2,803,647 | |
| Autodesk, Inc.* | | | 44,962 | | | | 958,140 | |
| BMC Software, Inc.* | | | 37,156 | | | | 959,368 | |
| C.A., Inc. | | | 77,438 | | | | 1,378,396 | |
| Citrix Systems, Inc.* | | | 36,671 | | | | 945,012 | |
| Compuware Corp.* | | | 52,607 | | | | 335,633 | |
| Electronic Arts, Inc.* | | | 63,507 | | | | 1,446,689 | |
| Intuit, Inc.* | | | 64,162 | | | | 1,607,900 | |
| Microsoft Corp. | | | 1,550,189 | | | | 34,615,720 | |
| Novell, Inc.* | | | 66,672 | | | | 310,692 | |
| Oracle Corp.* | | | 773,638 | | | | 14,149,839 | |
| Salesforce.com, Inc.* | | | 20,800 | | | | 643,968 | |
| Symantec Corp.* | | | 166,774 | | | | 2,098,017 | |
| | | | | | | | | |
| | | | | | | | 62,253,021 | |
| | | | | | | | | |
| |
| |
Specialty Retail 1.7% |
| Abercrombie & Fitch Co., Class A | | | 17,900 | | | | 518,384 | |
| AutoNation, Inc.* | | | 25,980 | | | | 178,483 | |
| AutoZone, Inc.* | | | 8,910 | | | | 1,134,154 | |
| Bed Bath & Beyond, Inc.* | | | 52,102 | | | | 1,342,668 | |
| Best Buy Co., Inc. | | | 67,515 | | | | 1,810,077 | |
| GameStop Corp., Class A* | | | 32,600 | | | | 892,914 | |
| Gap, Inc. (The) | | | 93,640 | | | | 1,211,702 | |
| Home Depot, Inc. | | | 336,267 | | | | 7,932,538 | |
| Lowe’s Cos., Inc. | | | 290,198 | | | | 6,297,297 | |
| Ltd Brands, Inc. | | | 58,728 | | | | 703,561 | |
| Office Depot, Inc.* | | | 53,162 | | | | 191,383 | |
| RadioShack Corp. | | | 28,771 | | | | 364,241 | |
| Sherwin-Williams Co. (The) | | | 19,786 | | | | 1,126,021 | |
| Staples, Inc. | | | 141,372 | | | | 2,746,858 | |
| Tiffany & Co. | | | 24,986 | | | | 685,866 | |
| TJX Cos., Inc. | | | 83,468 | | | | 2,233,604 | |
| | | | | | | | | |
| | | | | | | | 29,369,751 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 0.5% |
| Coach, Inc.* | | | 67,100 | | | | 1,382,260 | |
| Jones Apparel Group, Inc. | | | 19,691 | | | | 218,767 | |
| Liz Claiborne, Inc. | | | 19,511 | | | | 159,015 | |
| Nike, Inc., Class B | | | 77,872 | | | | 4,487,763 | |
| Polo Ralph Lauren Corp. | | | 11,500 | | | | 542,455 | |
| V.F. Corp. | | | 17,106 | | | | 942,541 | |
| | | | | | | | | |
| | | | | | | | 7,732,801 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 0.1% |
| Hudson City Bancorp, Inc. | | | 104,200 | | | | 1,960,002 | |
| Sovereign Bancorp, Inc.* | | | 98,295 | | | | 285,055 | |
| | | | | | | | | |
| | | | | | | | 2,245,057 | |
| | | | | | | | | |
| |
| |
Tobacco 1.8% |
| Altria Group, Inc. | | | 407,943 | | | | 7,828,426 | |
| Lorillard, Inc. | | | 34,900 | | | | 2,298,514 | |
| Philip Morris International, Inc. | | | 406,943 | | | | 17,689,812 | |
| Reynolds American, Inc. | | | 31,590 | | | | 1,546,647 | |
| UST, Inc. | | | 29,181 | | | | 1,972,344 | |
| | | | | | | | | |
| | | | | | | | 31,335,743 | |
| | | | | | | | | |
| |
| |
Trading Companies & Distributors 0.1% |
| Fastenal Co. | | | 25,900 | | | | 1,042,734 | |
| W.W. Grainger, Inc. | | | 12,725 | | | | 999,803 | |
| | | | | | | | | |
| | | | | | | | 2,042,537 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 0.3% |
| American Tower Corp., Class A* | | | 78,400 | | | | 2,533,105 | |
| Sprint Nextel Corp. | | | 554,014 | | | | 1,734,064 | |
| | | | | | | | | |
| | | | | | | | 4,267,169 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 1,675,685,113 | |
| | | | | |
2008 Annual Report 101
Statement of Investments (Continued)
October 31, 2008
Nationwide S&P 500 Index Fund (Continued)
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 1.6% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $26,995,308, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $27,535,031 | | $ | 26,995,127 | | | $ | 26,995,127 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $2,144,325,411) (d) — 99.9% | | | 1,702,680,240 | |
Other assets in excess of liabilities — 0.1% | | | | | | | 2,263,436 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 1,704,943,676 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | Fair Valued Security. |
| |
| (b) | | Illiquid security. |
| |
| (c) | | All or a part of the security was pledged as collateral for futures contracts as of October 31, 2008. |
| |
| (d) | | See notes to financial statements for tax unrealized appreciation/ (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
102 Annual Report 2008
As of October 31, 2008, the Fund’s open futures contracts were as follows:
| | | | | | | | | | | | | | | |
| | | | | | | Notional Value
| | Unrealized
|
Number of
| | | | | | Covered by
| | Appreciation/
|
| Contracts | | Long Contracts* | | Expiration | | Contracts | | Depreciation |
| |
| 123 | | S&P 500 | | | 12/18/08 | | | $ | 29,744,475 | | | ($ | 3,341,199 | ) |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 103
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide S&P 500 Index Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $2,117,330,284) | | | $ | 1,675,685,113 | |
| Repurchase agreements, at value and cost | | | | 26,995,127 | |
| | | | | | |
| Total Investments | | | | 1,702,680,240 | |
| | | | | | |
| Cash | | | | 1,044,602 | |
| Interest and dividends receivable | | | | 2,482,921 | |
| Receivable for capital shares issued | | | | 953,769 | |
| Receivable for investments sold | | | | 44,455 | |
| Receivable for variation margin on futures contracts | | | | 178,204 | |
| Prepaid expenses and other assets | | | | 167,478 | |
| | | | | | |
| Total Assets | | | | 1,707,551,669 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 1,029,065 | |
| Payable for capital shares redeemed | | | | 1,024,260 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 120,831 | |
| Fund administration fees | | | | 172,942 | |
| Distribution fees | | | | 71,016 | |
| Trustee fees | | | | 5,348 | |
| Compliance program costs (Note 3) | | | | 8,562 | |
| Custodian fees | | | | 20,443 | |
| Other | | | | 155,526 | |
| | | | | | |
| Total Liabilities | | | | 2,607,993 | |
| | | | | | |
Net Assets | | | $ | 1,704,943,676 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 2,191,547,946 | |
| Accumulated undistributed net investment income | | | | 3,881,810 | |
| Accumulated net realized losses from investment transactions | | | | (45,499,710 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (441,645,171 | ) |
| Net unrealized appreciation/(depreciation) from futures | | | | (3,341,199 | ) |
| | | | | | |
Net Assets | | | $ | 1,704,943,676 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 65,378,521 | |
| Class B Shares | | | | 8,760,072 | |
| Class C Shares | | | | 2,311,273 | |
| Class R Shares | | | | 217,723 | |
| Institutional Service Class Shares | | | | 61,463,544 | |
| Local Fund Shares | | | | 103,318 | |
| Institutional Class Shares | | | | 1,188,316,958 | |
| Service Class Shares | | | | 378,392,267 | |
| | | | | | |
| Total | | | $ | 1,704,943,676 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
104 Annual Report
| | | | | | |
| | | | | |
| | | | Nationwide S&P 500 Index Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 8,085,580 | |
| Class B Shares | | | | 1,088,852 | |
| Class C Shares | | | | 288,799 | |
| Class R Shares | | | | 26,947 | |
| Institutional Service Class Shares | | | | 7,570,955 | |
| Local Fund Shares | | | | 12,687 | |
| Institutional Class Shares | | | | 146,218,967 | |
| Service Class Shares | | | | 46,803,203 | |
| | | | | | |
| Total | | | | 210,095,990 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.09 | |
| Class B Shares (a) | | | $ | 8.05 | |
| Class C Shares (b) | | | $ | 8.00 | |
| Class R Shares | | | $ | 8.08 | |
| Institutional Service Class Shares | | | $ | 8.12 | |
| Local Fund Shares | | | $ | 8.14 | |
| Institutional Class Shares | | | $ | 8.13 | |
| Service Class Shares | | | $ | 8.08 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 8.58 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
Annual Report 105
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide S&P
| |
| | | 500 Index Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 1,709,846 | |
| Dividend income | | | | 47,315,334 | |
| Income from securities lending (Note 2) | | | | 32,495 | |
| | | | | | |
| Total Income | | | | 49,057,675 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 2,820,198 | |
| Fund administration fees | | | | 2,158,099 | |
| Distribution fees Class A | | | | 203,594 | |
| Distribution fees Class B | | | | 108,523 | |
| Distribution fees Class C | | | | 28,116 | |
| Distribution fees Class R | | | | 1,071 | |
| Distribution fees Local Fund Class | | | | 98 | |
| Distribution fees Service Class | | | | 800,575 | |
| Administrative servicing fees Class A | | | | 3,617 | |
| Administrative servicing fees Class R | | | | 53 | |
| Administrative servicing fees Institutional Service Class | | | | 194,373 | |
| Administrative servicing fees Service Class | | | | 1,355,891 | |
| Registration and filing fees | | | | 12,771 | |
| Professional fees | | | | 309,864 | |
| Printing fees | | | | 116,430 | |
| Trustee fees | | | | 116,049 | |
| Custodian fees | | | | 196,749 | |
| Other | | | | 359,834 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 8,785,905 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (22,595 | ) |
| Expenses reimbursed by Advisor | | | | (947,881 | ) |
| Administrator fees voluntarily waived | | | | (3,784 | ) |
| | | | | | |
| Net Expenses | | | | 7,811,645 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 41,246,030 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 9,852,501 | |
| Net realized losses on futures transactions | | | | (21,244,749 | ) |
| | | | | | |
| Net realized losses from investments and futures | | | | (11,392,248 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (983,626,428 | ) |
| Net change in unrealized appreciation/(depreciation) from futures | | | | (4,891,162 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments and futures | | | | (988,517,590 | ) |
| | | | | | |
| Net realized/unrealized losses from investments and futures | | | | (999,909,838 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (958,663,808 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
106 Annual Report
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide S&P 500 Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 41,246,030 | | | | $ | 52,320,620 | |
| Net realized gains (losses) from investment and futures transactions | | | | (11,392,248 | ) | | | | 400,419,405 | (a) |
| Net change in unrealized appreciation/(depreciation) from investments and futures | | | | (988,517,590 | ) | | | | (48,630,541 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (958,663,808 | ) | | | | 404,109,484 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (1,362,509 | ) | | | | (1,060,890 | ) |
| Class B | | | | (103,029 | ) | | | | (84,708 | ) |
| Class C | | | | (25,993 | ) | | | | (23,259 | ) |
| Class R | | | | (2,973 | ) | | | | (2,316 | )(b) |
| Institutional Service Class | | | | (1,377,208 | ) | | | | (1,455,855 | ) |
| Local Fund Class | | | | (2,566 | ) | | | | (2,527 | ) |
| Institutional Class | | | | (28,813,725 | ) | | | | (42,057,838 | ) |
| Service Class | | | | (8,117,001 | ) | | | | (9,316,987 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (1,246,235 | ) | | | | (221,285 | ) |
| Class B | | | | (169,165 | ) | | | | (27,749 | ) |
| Class C | | | | (41,591 | ) | | | | (7,826 | ) |
| Class R | | | | (3,095 | ) | | | | – | (b) |
| Institutional Service Class | | | | (1,383,994 | ) | | | | (360,121 | ) |
| Local Fund Class | | | | (2,280 | ) | | | | (557 | ) |
| Institutional Class | | | | (23,761,476 | ) | | | | (11,380,719 | ) |
| Service Class | | | | (9,213,280 | ) | | | | (2,649,183 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (75,626,120 | ) | | | | (68,651,820 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 38,913,732 | | | | | (1,085,491,389 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (995,376,196 | ) | | | | (750,033,725 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 2,700,319,872 | | | | | 3,450,353,597 | |
| | | | | | | | | | | |
| End of period | | | $ | 1,704,943,676 | | | | $ | 2,700,319,872 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 3,881,810 | | | | $ | 2,440,278 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 34,549,043 | | | | $ | 50,798,376 | |
| Dividends reinvested | | | | 2,296,921 | | | | | 1,098,987 | |
| Cost of shares redeemed (c) | | | | (18,792,722 | ) | | | | (16,942,990 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 18,053,242 | | | | | 34,954,373 | |
| | | | | | | | | | | |
| |
| (a) | Includes realized gain as a result of a Redemption In Kind.
|
| |
| (b) | For the period from January 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| (c) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
Annual Report 107
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide S&P 500 Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 3,616,798 | | | | $ | 6,019,928 | |
| Dividends reinvested | | | | 89,841 | | | | | 54,755 | |
| Cost of shares redeemed (c) | | | | (1,899,648 | ) | | | | (1,342,318 | ) |
| | | | | | | | | | | |
| Total Class B | | | | 1,806,991 | | | | | 4,732,365 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 1,309,599 | | | | | 2,009,299 | |
| Dividends reinvested | | | | 24,030 | | | | | 15,040 | |
| Cost of shares redeemed (c) | | | | (954,832 | ) | | | | (494,414 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 378,797 | | | | | 1,529,925 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 138,624 | | | | | 254,935 | (b) |
| Dividends reinvested | | | | 6,067 | | | | | 2,316 | (b) |
| Cost of shares redeemed (c) | | | | (62,556 | ) | | | | (43,078 | )(b) |
| | | | | | | | | | | |
| Total Class R | | | | 82,135 | | | | | 214,173 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 9,866,611 | | | | | 17,418,678 | |
| Dividends reinvested | | | | 2,761,185 | | | | | 1,815,961 | |
| Cost of shares redeemed (c) | | | | (12,396,189 | ) | | | | (13,243,554 | ) |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 231,607 | | | | | 5,991,085 | |
| | | | | | | | | | | |
Local Fund Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 502 | | | | | 8,900 | |
| Dividends reinvested | | | | 4,599 | | | | | 3,038 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Local Class | | | | 5,101 | | | | | 11,938 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 365,062,461 | | | | | 310,796,511 | |
| Dividends reinvested | | | | 52,373,108 | | | | | 53,336,883 | |
| Redemptions in-kind | | | | – | | | | | (1,387,369,746 | ) |
| Cost of shares redeemed (c) | | | | (352,934,526 | ) | | | | (75,324,394 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 64,501,043 | | | | | (1,098,560,746 | ) |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 40,235,869 | | | | | 56,827,434 | |
| Dividends reinvested | | | | 17,330,218 | | | | | 11,966,122 | |
| Cost of shares redeemed (c) | | | | (103,711,271 | ) | | | | (103,158,058 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | (46,145,184 | ) | | | | (34,364,502 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 38,913,732 | | | | $ | (1,085,491,389 | ) |
| | | | | | | | | | | |
| | |
| (b) | | For the period from January 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| (c) | | Includes redemption fees — see Note 4 to Financial Statements. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
108 Annual Report
| | | | | | | | | | | |
| | | | Nationwide S&P 500 Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 3,181,707 | | | | | 4,101,130 | |
| Reinvested | | | | 195,918 | | | | | 88,404 | |
| Redeemed | | | | (1,750,553 | ) | | | | (1,362,524 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 1,627,072 | | | | | 2,827,010 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 338,059 | | | | | 486,388 | |
| Reinvested | | | | 7,571 | | | | | 4,449 | |
| Redeemed | | | | (178,064 | ) | | | | (107,339 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | 167,566 | | | | | 383,498 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 122,274 | | | | | 164,697 | |
| Reinvested | | | | 2,034 | | | | | 1,225 | |
| Redeemed | | | | (82,342 | ) | | | | (41,205 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 41,966 | | | | | 124,717 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 13,708 | | | | | 21,257 | (b) |
| Reinvested | | | | 517 | | | | | 185 | (b) |
| Redeemed | | | | (5,247 | ) | | | | (3,473 | )(b) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 8,978 | | | | | 17,969 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 969,875 | | | | | 1,414,893 | |
| Reinvested | | | | 233,631 | | | | | 146,031 | |
| Redeemed | | | | (1,121,178 | ) | | | | (1,063,510 | ) |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 82,328 | | | | | 497,414 | |
| | | | | | | | | | | |
Local Fund Shares | | | | | | | | | | |
| Issued | | | | 44 | | | | | 696 | |
| Reinvested | | | | 390 | | | | | 243 | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Local Class Shares | | | | 434 | | | | | 939 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 33,135,124 | | | | | 25,045,366 | |
| Reinvested | | | | 4,455,874 | | | | | 4,311,926 | |
| Redemptions in-kind | | | | – | | | | | (112,065,408 | ) |
| Redeemed | | | | (30,453,631 | ) | | | | (6,038,360 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 7,137,367 | | | | | (88,746,476 | ) |
| | | | | | | | | | | |
| | |
| (b) | | For the period from January 30, 2007 (commencement of operations) through October 31, 2007. |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
Annual Report 109
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide S&P 500 Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 3,785,208 | | | | | 4,639,007 | |
| Reinvested | | | | 1,465,964 | | | | | 966,974 | |
| Redeemed | | | | (9,216,829 | ) | | | | (8,295,344 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | (3,965,657 | ) | | | | (2,689,363 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | 5,100,054 | | | | | (87,584,292 | ) |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
110 Annual Report
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide S&P 500 Index Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .13 | | | | 0 | .19 | | | | (4 | .85) | | | | (4 | .66) | | | | (0 | .19) | | | | (0 | .19) | | | | (0 | .38) | | | $ | 8 | .09 | | | | (36 | .42%) | | | $ | 65,378,521 | | | | | 0 | .49% | | | | 1 | .72% | | | | 0 | .53% | | | | 10 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .75 | | | | 0 | .19 | | | | 1 | .44 | | | | 1 | .63 | | | | (0 | .20) | | | | (0 | .05) | | | | (0 | .25) | | | $ | 13 | .13 | | | | 13 | .98% | | | $ | 84,794,405 | | | | | 0 | .49% | | | | 1 | .48% | | | | 0 | .51% | | | | 3 | .56% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .36 | | | | 0 | .16 | | | | 1 | .47 | | | | 1 | .63 | | | | (0 | .16) | | | | (0 | .08) | | | | (0 | .24) | | | $ | 11 | .75 | | | | 15 | .90% | | | $ | 42,670,253 | | | | | 0 | .49% | | | | 1 | .46% | | | | 0 | .52% | | | | 2 | .63% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .74 | | | | 0 | .15 | | | | 0 | .64 | | | | 0 | .79 | | | | (0 | .17) | | | | – | | | | | (0 | .17) | | | $ | 10 | .36 | | | | 8 | .11% | | | $ | 24,805,311 | | | | | 0 | .50% | | | | 1 | .49% | | | | 0 | .56% | | | | 5 | .28% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .04 | | | | 0 | .11 | | | | 0 | .70 | | | | 0 | .81 | | | | (0 | .11) | | | | – | | | | | (0 | .11) | | | $ | 9 | .74 | | | | 8 | .99% | | | $ | 7,821,623 | | | | | 0 | .50% | | | | 1 | .18% | | | | 0 | .54% | | | | 1 | .71% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .07 | | | | 0 | .10 | | | | (4 | .83) | | | | (4 | .73) | | | | (0 | .10) | | | | (0 | .19) | | | | (0 | .29) | | | $ | 8 | .05 | | | | (36 | .89%) | | | $ | 8,760,072 | | | | | 1 | .23% | | | | 0 | .98% | | | | 1 | .28% | | | | 10 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .71 | | | | 0 | .09 | | | | 1 | .43 | | | | 1 | .52 | | | | (0 | .11) | | | | (0 | .05) | | | | (0 | .16) | | | $ | 13 | .07 | | | | 13 | .09% | | | $ | 12,040,325 | | | | | 1 | .23% | | | | 0 | .75% | | | | 1 | .25% | | | | 3 | .56% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .33 | | | | 0 | .08 | | | | 1 | .46 | | | | 1 | .54 | | | | (0 | .08) | | | | (0 | .08) | | | | (0 | .16) | | | $ | 11 | .71 | | | | 15 | .01% | | | $ | 6,296,167 | | | | | 1 | .23% | | | | 0 | .75% | | | | 1 | .26% | | | | 2 | .63% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .70 | | | | 0 | .09 | | | | 0 | .63 | | | | 0 | .72 | | | | (0 | .09) | | | | – | | | | | (0 | .09) | | | $ | 10 | .33 | | | | 7 | .45% | | | $ | 5,707,020 | | | | | 1 | .23% | | | | 0 | .90% | | | | 1 | .28% | | | | 5 | .28% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .00 | | | | 0 | .05 | | | | 0 | .69 | | | | 0 | .74 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 9 | .70 | | | | 8 | .23% | | | $ | 4,820,480 | | | | | 1 | .23% | | | | 0 | .45% | | | | 1 | .27% | | | | 1 | .71% | | |
2008 Annual Report 111
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide S&P 500 Index Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .00 | | | | 0 | .11 | | | | (4 | .82) | | | | (4 | .71) | | | | (0 | .10) | | | | (0 | .19) | | | | (0 | .29) | | | $ | 8 | .00 | | | | (36 | .95%) | | | $ | 2,311,273 | | | | | 1 | .23% | | | | 0 | .99% | | | | 1 | .28% | | | | 10 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .65 | | | | 0 | .10 | | | | 1 | .42 | | | | 1 | .52 | | | | (0 | .12) | | | | (0 | .05) | | | | (0 | .17) | | | $ | 13 | .00 | | | | 13 | .11% | | | $ | 3,208,449 | | | | | 1 | .23% | | | | 0 | .74% | | | | 1 | .25% | | | | 3 | .56% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .28 | | | | 0 | .08 | | | | 1 | .46 | | | | 1 | .54 | | | | (0 | .09) | | | | (0 | .08) | | | | (0 | .17) | | | $ | 11 | .65 | | | | 15 | .06% | | | $ | 1,422,512 | | | | | 1 | .23% | | | | 0 | .72% | | | | 1 | .26% | | | | 2 | .63% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .67 | | | | 0 | .08 | | | | 0 | .64 | | | | 0 | .72 | | | | (0 | .11) | | | | – | | | | | (0 | .11) | | | $ | 10 | .28 | | | | 7 | .44% | | | $ | 831,234 | | | | | 1 | .23% | | | | 0 | .71% | | | | 1 | .28% | | | | 5 | .28% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .01 | | | | 0 | .05 | | | | 0 | .67 | | | | 0 | .72 | | | | (0 | .06) | | | | – | | | | | (0 | .06) | | | $ | 9 | .67 | | | | 8 | .06% | | | $ | 250,270 | | | | | 1 | .23% | | | | 0 | .46% | | | | 1 | .27% | | | | 1 | .71% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .12 | | | | 0 | .16 | | | | (4 | .85) | | | | (4 | .69) | | | | (0 | .16) | | | | (0 | .19) | | | | (0 | .35) | | | $ | 8 | .08 | | | | (36 | .62%) | | | $ | 217,723 | | | | | 0 | .76% | | | | 1 | .45% | | | | 0 | .80% | | | | 10 | .51% | | |
| Period Ended October 31, 2007 (f) | | | $ | 12 | .13 | | | | 0 | .10 | | | | 1 | .03 | | | | 1 | .13 | | | | (0 | .14) | | | | – | | | | | (0 | .14) | | | $ | 13 | .12 | | | | 9 | .34% | | | $ | 235,763 | | | | | 0 | .74% | | | | 1 | .12% | | | | 0 | .76% | | | | 3 | .56% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .18 | | | | 0 | .20 | | | | (4 | .88) | | | | (4 | .68) | | | | (0 | .19) | | | | (0 | .19) | | | | (0 | .38) | | | $ | 8 | .12 | | | | (36 | .43%) | | | $ | 61,463,544 | | | | | 0 | .47% | | | | 1 | .75% | | | | 0 | .51% | | | | 10 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .79 | | | | 0 | .20 | | | | 1 | .44 | | | | 1 | .64 | | | | (0 | .20) | | | | (0 | .05) | | | | (0 | .25) | | | $ | 13 | .18 | | | | 14 | .01% | | | $ | 98,678,663 | | | | | 0 | .48% | | | | 1 | .52% | | | | 0 | .49% | | | | 3 | .56% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .40 | | | | 0 | .17 | | | | 1 | .46 | | | | 1 | .63 | | | | (0 | .16) | | | | (0 | .08) | | | | (0 | .24) | | | $ | 11 | .79 | | | | 15 | .85% | | | $ | 82,442,558 | | | | | 0 | .48% | | | | 1 | .49% | | | | 0 | .51% | | | | 2 | .63% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .77 | | | | 0 | .18 | | | | 0 | .62 | | | | 0 | .80 | | | | (0 | .17) | | | | – | | | | | (0 | .17) | | | $ | 10 | .40 | | | | 8 | .29% | | | $ | 69,995,616 | | | | | 0 | .48% | | | | 1 | .68% | | | | 0 | .52% | | | | 5 | .28% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .07 | | | | 0 | .12 | | | | 0 | .69 | | | | 0 | .81 | | | | (0 | .11) | | | | – | | | | | (0 | .11) | | | $ | 9 | .77 | | | | 9 | .14% | | | $ | 69,569,089 | | | | | 0 | .48% | | | | 1 | .21% | | | | 0 | .52% | | | | 1 | .71% | | |
112 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide S&P 500 Index Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Local Fund Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .22 | | | | 0 | .22 | | | | (4 | .90) | | | | (4 | .68) | | | | (0 | .21) | | | | (0 | .19) | | | | (0 | .40) | | | $ | 8 | .14 | | | | (36 | .37%) | | | $ | 103,318 | | | | | 0 | .30% | | | | 1 | .91% | | | | 0 | .34% | | | | 10 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .83 | | | | 0 | .22 | | | | 1 | .44 | | | | 1 | .66 | | | | (0 | .22) | | | | (0 | .05) | | | | (0 | .27) | | | $ | 13 | .22 | | | | 14 | .15% | | | $ | 161,974 | | | | | 0 | .30% | | | | 1 | .71% | | | | 0 | .32% | | | | 3 | .56% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .43 | | | | 0 | .19 | | | | 1 | .47 | | | | 1 | .66 | | | | (0 | .18) | | | | (0 | .08) | | | | (0 | .26) | | | $ | 11 | .83 | | | | 16 | .10% | | | $ | 133,822 | | | | | 0 | .30% | | | | 1 | .67% | | | | 0 | .33% | | | | 2 | .63% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .79 | | | | 0 | .20 | | | | 0 | .63 | | | | 0 | .83 | | | | (0 | .19) | | | | – | | | | | (0 | .19) | | | $ | 10 | .43 | | | | 8 | .45% | | | $ | 115,278 | | | | | 0 | .30% | | | | 1 | .85% | | | | 0 | .35% | | | | 5 | .28% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .09 | | | | 0 | .14 | | | | 0 | .69 | | | | 0 | .83 | | | | (0 | .13) | | | | – | | | | | (0 | .13) | | | $ | 9 | .79 | | | | 8 | .85% | | | $ | 106,323 | | | | | 0 | .30% | | | | 1 | .38% | | | | 0 | .34% | | | | 1 | .71% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .19 | | | | 0 | .22 | | | | (4 | .88) | | | | (4 | .66) | | | | (0 | .21) | | | | (0 | .19) | | | | (0 | .40) | | | $ | 8 | .13 | | | | (36 | .25%) | | | $ | 1,188,316,958 | | | | | 0 | .23% | | | | 1 | .99% | | | | 0 | .27% | | | | 10 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .80 | | | | 0 | .23 | | | | 1 | .44 | | | | 1 | .67 | | | | (0 | .23) | | | | (0 | .05) | | | | (0 | .28) | | | $ | 13 | .19 | | | | 14 | .26% | | | $ | 1,834,779,809 | | | | | 0 | .23% | | | | 1 | .82% | | | | 0 | .24% | | | | 3 | .56% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .41 | | | | 0 | .19 | | | | 1 | .47 | | | | 1 | .66 | | | | (0 | .19) | | | | (0 | .08) | | | | (0 | .27) | | | $ | 11 | .80 | | | | 16 | .12% | | | $ | 2,689,367,610 | | | | | 0 | .23% | | | | 1 | .73% | | | | 0 | .26% | | | | 2 | .63% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .77 | | | | 0 | .19 | | | | 0 | .64 | | | | 0 | .83 | | | | (0 | .19) | | | | – | | | | | (0 | .19) | | | $ | 10 | .41 | | | | 8 | .55% | | | $ | 2,007,289,506 | | | | | 0 | .23% | | | | 1 | .86% | | | | 0 | .28% | | | | 5 | .28% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .07 | | | | 0 | .13 | | | | 0 | .70 | | | | 0 | .83 | | | | (0 | .13) | | | | – | | | | | (0 | .13) | | | $ | 9 | .77 | | | | 8 | .86% | | | $ | 1,247,060,623 | | | | | 0 | .23% | | | | 1 | .45% | | | | 0 | .27% | | | | 1 | .71% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .13 | | | | 0 | .18 | | | | (4 | .87) | | | | (4 | .69) | | | | (0 | .17) | | | | (0 | .19) | | | | (0 | .36) | | | $ | 8 | .08 | | | | (36 | .60%) | | | $ | 378,392,267 | | | | | 0 | .64% | | | | 1 | .58% | | | | 0 | .68% | | | | 10 | .51% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .75 | | | | 0 | .18 | | | | 1 | .43 | | | | 1 | .61 | | | | (0 | .18) | | | | (0 | .05) | | | | (0 | .23) | | | $ | 13 | .13 | | | | 13 | .79% | | | $ | 666,420,484 | | | | | 0 | .63% | | | | 1 | .37% | | | | 0 | .65% | | | | 3 | .56% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .36 | | | | 0 | .15 | | | | 1 | .46 | | | | 1 | .61 | | | | (0 | .14) | | | | (0 | .08) | | | | (0 | .22) | | | $ | 11 | .75 | | | | 15 | .74% | | | $ | 628,020,675 | | | | | 0 | .63% | | | | 1 | .35% | | | | 0 | .66% | | | | 2 | .63% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .73 | | | | 0 | .16 | | | | 0 | .62 | | | | 0 | .78 | | | | (0 | .15) | | | | – | | | | | (0 | .15) | | | $ | 10 | .36 | | | | 8 | .06% | | | $ | 578,102,425 | | | | | 0 | .63% | | | | 1 | .51% | | | | 0 | .67% | | | | 5 | .28% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .03 | | | | 0 | .11 | | | | 0 | .69 | | | | 0 | .80 | | | | (0 | .10) | | | | – | | | | | (0 | .10) | | | $ | 9 | .73 | | | | 9 | .24% | | | $ | 523,127,367 | | | | | 0 | .63% | | | | 1 | .05% | | | | 0 | .67% | | | | 1 | .71% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from January 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 113
| |
| Nationwide Small Cap Index Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
The Fund seeks to match the performance of the Russell 2000® Index as closely as possible before the deduction of Fund expenses. For the annual period ended October 31, 2008, the Nationwide Small Cap Index Fund (Class A at NAV) registered -34.65% versus -34.16% for its benchmark, the Russell 2000® Index. For broader comparison, the average return for the Fund’s closest Lipper Inc. peer category of Small-Cap Core Funds (consisting of 779 funds as of October 31, 2008) was -36.97% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
All 10 sectors within the benchmark index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors were utilities, with -13.45%, and consumer staples, with -15.42%.
What areas of investments detracted from Fund performance?
The weakest-performing sectors during the reporting period were telecommunications services, with
-54.81%; consumer discretionary, with -48.43%; information technology, with -44.74%; and materials, with -37.84%. All of these areas underperformed the broad market.
What is your outlook for the near term?
Many of the necessary conditions for a market bottom appear to be falling into place. Investor pessimism is widespread, equity valuations are attractive versus alternatives such as Treasuries, and a defining financial crisis has been followed by aggressive policy responses. In addition, a great deal of cash is on the sidelines and the sectors that underperformed the most during the last two months of the reporting period (financials and consumer discretionary) recently have outperformed.
The passage of the government rescue plan and the Federal Reserve Board’s lowering of the target federal funds interest rate by 250 basis points, or 2.50%, during the reporting period should help the market begin the healing process, but a sustained rally in equities will require evidence that the measures are working. In particular, if credit spreads – the difference in the yield between Treasury securities and other fixed-income assets – begin to narrow, it could signal a real and lasting bottom in equity markets.
Ultimately, the economic and financial outlook is likely to remain troubled for some time. The equity markets might enjoy a bounce in the near term, but it also would not be a surprise to see these markets fall back again as the reality of the looming economic challenges sets in.
Subadviser:
BlackRock Investment Management, LLC
Portfolio Managers:
Debra L. Jelilian and Jeffrey L. Russo, CFA
114 Annual Report 2008
| |
| Fund Performance | Nationwide Small Cap Index Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Gross
| | Net
|
| | | | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr. | | Ratio* | | Ratio* |
| |
Class A1 | | w/o SC2 | | | -34.65% | | | | 0.91% | | | | 4.12% | | | | 0.74% | | | | 0.71% | |
| | | w/SC3 | | | -38.41% | | | | -0.28% | | | | 3.50% | | | | | | | | | |
| |
| |
Class B4 | | w/o SC2 | | | -35.16% | | | | 0.23% | | | | 3.64% | | | | 1.33% | | | | 1.30% | |
| | | w/SC5 | | | -38.30% | | | | -0.09% | | | | 3.64% | | | | | | | | | |
| |
| |
Class C6 | | w/o SC2 | | | -35.06% | | | | 0.31% | | | | 3.67% | | | | 1.33% | | | | 1.30% | |
| | | w/SC7 | | | -35.69% | | | | 0.31% | | | | 3.67% | | | | | | | | | |
| |
| |
Class R8,9 | | | | | -34.72% | | | | 0.89% | | | | 4.11% | | | | 1.03% | | | | 1.00% | |
| |
| |
Institutional Class1,8 | | | | | -34.45% | | | | 1.29% | | | | 4.50% | | | | 0.33% | | | | 0.30% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns prior to the creation of Class A and Institutional shares (12/29/99) include the performance of the Master Small Cap Series (the “Series”), which began operations on April 9, 1997. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A and Institutional Class shares would have produced because these classes of the Fund’s shares invested in the same portfolio of securities as the Series. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees applicable to such classes; if these fees were reflected, the performance for Class A and Institutional Class shares would have been lower. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | These returns until the creation of Class B shares (11/29/01) include performance based on the Series for the period through December 28, 1999 and the Fund’s Class A shares for the period from December 29, 1999 to November 28, 2001. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B shares would have produced because Class B shares invest in the same portfolio of securities as Class A shares. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class B shares would have been lower. |
| |
| 5 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 6 | | These returns until the creation of Class C shares (10/22/03) include the performance of the Series for the period through December 28, 1999 and the Fund’s Class A shares for the period from December 29, 1999 to November 28, 2001 and the Fund’s Class B shares for the period from November 29, 2001 to October 21, 2003. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as the Fund’s other classes. The performance for the Class C shares has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes; if these fees were reflected, the performance for Class C shares would have been lower. |
| |
| 7 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 8 | | Not subject to any sales charges. |
| |
| 9 | | These returns until the creation of Class R shares (3/9/07) are based on the previous performance of the Fund’s Class A shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R shares has been restated to reflect differences in sales charges, if any, but does not reflect the higher level of other fees applicable to such class; if these fees were reflected, the performance of Class R shares would have been lower. |
2008 Annual Report 115
| |
| Fund Performance | Nationwide Small Cap Index Fund |
Continued
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Small Cap Index Fund, the Russell 2000 Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell 2000 is an unmanaged index of approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
116 Annual Report 2008
| |
| Shareholder | Nationwide Small Cap Index Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Small Cap Index Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 754.24 | | | | 2.57 | | | | 0.58 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.21 | | | | 2.96 | | | | 0.58 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 750.50 | | | | 6.06 | | | | 1.38 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.21 | | | | 7.01 | | | | 1.38 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 751.66 | | | | 5.73 | | | | 1.30 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.60 | | | | 6.62 | | | | 1.30 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 754.42 | | | | 2.10 | | | | 0.48 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.74 | | | | 2.43 | | | | 0.48 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 754.95 | | | | 1.31 | | | | 0.30 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.64 | | | | 1.52 | | | | 0.30 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 117
| |
| Portfolio Summary | Nationwide Small Cap Index Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 94.8% | |
| Exchange Traded Fund | | | 0.0% | |
| Warrants | | | 0.0% | |
| Repurchase Agreement | | | 4.6% | |
| Other assets in excess of liabilities | | | 0.6% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Commercial Banks | | | 7.7% | |
| Real Estate Investment Trusts | | | 5.5% | |
| Commercial Services & Supplies | | | 4.3% | |
| Biotechnology | | | 4.1% | |
| Software | | | 3.7% | |
| Insurance | | | 3.7% | |
| Health Care Equipment & Supplies | | | 3.6% | |
| Oil, Gas & Consumable Fuels | | | 3.6% | |
| Health Care Providers & Services | | | 3.2% | |
| Machinery | | | 3.0% | |
| Other | | | 57.6% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Ralcorp Holdings, Inc. | | | 0.4% | |
| Alexion Pharmaceuticals, Inc. | | | 0.4% | |
| Myriad Genetics, Inc. | | | 0.3% | |
| Waste Connections, Inc. | | | 0.3% | |
| Piedmont Natural Gas Co. | | | 0.3% | |
| Realty Income Corp. | | | 0.3% | |
| Flowers Foods, Inc. | | | 0.3% | |
| Comstock Resources, Inc. | | | 0.3% | |
| Senior Housing Properties Trust | | | 0.3% | |
| Foundry Networks, Inc. | | | 0.3% | |
| Other | | | 96.8% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
118 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Small Cap Index Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 94.8% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 1.9% |
| AAR Corp.*(a) | | | 12,668 | | | $ | 202,561 | |
| Aerovironment, Inc.*(a) | | | 3,500 | | | | 125,720 | |
| American Science & Engineering, Inc. | | | 3,030 | | | | 190,587 | |
| Applied Signal Technology, Inc. | | | 3,600 | | | | 64,512 | |
| Argon ST, Inc.* | | | 4,640 | | | | 96,790 | |
| Ascent Solar Technologies, Inc.* | | | 2,500 | | | | 13,000 | |
| Axsys Technologies, Inc.* | | | 2,900 | | | | 191,487 | |
| Ceradyne, Inc.* | | | 8,840 | | | | 207,740 | |
| Cubic Corp. | | | 4,846 | | | | 107,823 | |
| Curtiss-Wright Corp. | | | 15,048 | | | | 555,271 | |
| Ducommun, Inc.* | | | 3,600 | | | | 72,684 | |
| Dyncorp International, Inc., Class A* | | | 7,600 | | | | 100,472 | |
| Esterline Technologies Corp.* | | | 9,961 | | | | 359,094 | |
| Gencorp, Inc.* | | | 18,074 | | | | 88,563 | |
| HEICO Corp. | | | 7,248 | | | | 278,831 | |
| Herley Industries, Inc.* | | | 4,700 | | | | 62,510 | |
| Hexcel Corp.* | | | 32,575 | | | | 429,990 | |
| Ladish Co., Inc.* | | | 5,200 | | | | 88,556 | |
| LMI Aerospace, Inc.* | | | 3,100 | | | | 47,337 | |
| Moog, Inc., Class A* | | | 14,363 | | | | 504,429 | |
| Orbital Sciences Corp.* | | | 19,722 | | | | 404,104 | |
| Stanley, Inc.* | | | 3,000 | | | | 102,780 | |
| Taser International, Inc.* | | | 21,116 | | | | 105,791 | |
| Teledyne Technologies, Inc.* | | | 11,963 | | | | 545,154 | |
| TransDigm Group, Inc.* | | | 11,200 | | | | 337,568 | |
| Triumph Group, Inc. | | | 5,605 | | | | 245,835 | |
| | | | | | | | | |
| | | | | | | | 5,529,189 | |
| | | | | | | | | |
| |
| |
Air Freight & Logistics 0.3% |
| Atlas Air Worldwide Holdings, Inc.* | | | 4,500 | | | | 86,940 | |
| Dynamex, Inc.* | | | 3,360 | | | | 82,018 | |
| Forward Air Corp. | | | 10,191 | | | | 266,698 | |
| HUB Group, Inc., Class A* | | | 12,515 | | | | 393,597 | |
| Pacer International, Inc. | | | 11,724 | | | | 132,364 | |
| Park-Ohio Holdings Corp.* | | | 2,600 | | | | 19,734 | |
| | | | | | | | | |
| | | | | | | | 981,351 | |
| | | | | | | | | |
| |
| |
Airlines 0.9% |
| AirTran Holdings, Inc.*(a) | | | 37,319 | | | | 152,635 | |
| Alaska Air Group, Inc.* | | | 11,888 | | | | 293,633 | |
| Allegiant Travel Co.* | | | 4,600 | | | | 183,218 | |
| Hawaiian Holdings, Inc.* | | | 13,400 | | | | 93,800 | |
| JetBlue Airways Corp.*(a) | | | 58,400 | | | | 324,120 | |
| Republic Airways Holdings, Inc.* | | | 11,200 | | | | 167,440 | |
| SkyWest, Inc. | | | 19,358 | | | | 298,307 | |
| UAL Corp. | | | 42,100 | | | | 612,976 | |
| US Airways Group, Inc.* | | | 38,500 | | | | 390,390 | |
| | | | | | | | | |
| | | | | | | | 2,516,519 | |
| | | | | | | | | |
| |
| |
Auto Components 0.5% |
| American Axle & Manufacturing Holdings, Inc. | | | 15,545 | | | | 55,806 | |
| Amerigon, Inc.* | | | 7,500 | | | | 36,000 | |
| ArvinMeritor, Inc. | | | 24,879 | | | | 147,284 | |
| ATC Technology Corp.* | | | 7,336 | | | | 160,878 | |
| Cooper Tire & Rubber Co. | | | 19,068 | | | | 145,489 | |
| Dana Holding Corp.* | | | 32,400 | | | | 61,560 | |
| Dorman Products, Inc.* | | | 3,100 | | | | 34,875 | |
| Drew Industries, Inc.* | | | 6,598 | | | | 79,836 | |
| Exide Technologies* | | | 26,400 | | | | 125,400 | |
| Fuel Systems Solutions, Inc.* | | | 4,100 | | | | 116,645 | |
| Hayes Lemmerz International, Inc.*(b) | | | 32,000 | | | | 42,560 | |
| Hayes Lemmerz International, Inc.*(c) | | | 110 | | | | 0 | |
| Lear Corp.* | | | 21,290 | | | | 42,793 | |
| Modine Manufacturing Co. | | | 11,440 | | | | 84,656 | |
| Quantum Fuel Systems Technology* | | | 27,800 | | | | 20,850 | |
| Raser Technologies, Inc.* | | | 14,000 | | | | 60,340 | |
| Spartan Motors, Inc. | | | 9,100 | | | | 41,769 | |
| Stoneridge, Inc.* | | | 4,900 | | | | 27,881 | |
| Superior Industries International, Inc. | | | 7,785 | | | | 111,325 | |
| Tenneco, Inc.* | | | 15,270 | | | | 74,976 | |
| Visteon Corp.* | | | 46,420 | | | | 32,030 | |
| Wonder Auto Technology, Inc.* | | | 5,300 | | | | 21,147 | |
| | | | | | | | | |
| | | | | | | | 1,524,100 | |
| | | | | | | | | |
| |
| |
Automobiles 0.0% |
| Fleetwood Enterprises, Inc.* | | | 28,061 | | | | 11,505 | |
| Winnebago Industries, Inc. | | | 9,153 | | | | 54,369 | |
| | | | | | | | | |
| | | | | | | | 65,874 | |
| | | | | | | | | |
| |
| |
Beverages 0.1% |
| Boston Beer Co., Inc., Class A* | | | 3,055 | | | | 115,449 | |
Coca-Cola Bottling Co. Consolidated | | | 1,500 | | | | 66,270 | |
| National Beverage Corp.* | | | 2,532 | | | | 23,193 | |
| | | | | | | | | |
| | | | | | | | 204,912 | |
| | | | | | | | | |
| |
| |
Biotechnology 4.1% |
| Acadia Pharmaceuticals, Inc.* | | | 9,700 | | | | 18,430 | |
| Acorda Therapeutics, Inc.* | | | 12,500 | | | | 255,000 | |
| Affymax, Inc.* | | | 3,600 | | | | 48,240 | |
| Alexion Pharmaceuticals, Inc.*(a) | | | 25,938 | | | | 1,056,973 | |
| Alkermes, Inc.* | | | 32,257 | | | | 318,699 | |
2008 Annual Report 119
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Biotechnology (continued) |
| | | | | | | | | |
| Allos Therapeutics, Inc.* | | | 17,300 | | | $ | 126,463 | |
| Alnylam Pharmaceuticals, Inc.* | | | 12,000 | | | | 276,000 | |
| Amicus Therapeutics, Inc.* | | | 1,500 | | | | 15,945 | |
| Arena Pharmaceuticals, Inc.* | | | 24,900 | | | | 91,632 | |
| ARIAD, Inc.* | | | 25,214 | | | | 50,176 | |
| Arqule, Inc.* | | | 12,300 | | | | 33,948 | |
| Array BioPharma, Inc.* | | | 16,900 | | | | 83,148 | |
| Celera Corp.* | | | 26,573 | | | | 300,541 | |
| Cell Genesys, Inc.* | | | 29,117 | | | | 6,668 | |
| Celldex Therapeutics, Inc.* | | | 5,400 | | | | 41,850 | |
| Cepheid, Inc.* | | | 19,190 | | | | 227,785 | |
| Cougar Biotechnology, Inc.* | | | 4,800 | | | | 121,920 | |
| Cubist Pharmaceuticals, Inc.* | | | 19,020 | | | | 482,918 | |
| CV Therapeutics, Inc.* | | | 20,444 | | | | 190,742 | |
| Cytokinetics, Inc.* | | | 12,700 | | | | 36,195 | |
| Cytori Therapeutics, Inc.* | | | 7,100 | | | | 28,400 | |
| Dendreon Corp.* | | | 31,478 | | | | 154,872 | |
| Dyax Corp.* | | | 20,000 | | | | 67,000 | |
| Emergent Biosolutions, Inc.* | | | 4,100 | | | | 73,841 | |
| Enzon Pharmaceuticals, Inc.* | | | 15,105 | | | | 75,072 | |
| Genomic Health, Inc.* | | | 5,000 | | | | 92,150 | |
| Geron Corp.* | | | 27,717 | | | | 110,314 | |
| GTx, Inc.* | | | 6,600 | | | | 93,192 | |
| Halozyme Therapeutics, Inc.* | | | 19,400 | | | | 92,926 | |
| Human Genome Sciences, Inc.* | | | 45,665 | | | | 147,498 | |
| Idenix Pharmaceuticals, Inc.* | | | 7,915 | | | | 43,691 | |
| Idera Pharmaceuticals, Inc.* | | | 7,100 | | | | 69,012 | |
| ImmunoGen, Inc.* | | | 18,200 | | | | 84,266 | |
| Immunomedics, Inc.* | | | 24,200 | | | | 36,300 | |
| Incyte Corp.* | | | 25,729 | | | | 106,775 | |
| Indevus Pharmaceuticals, Inc.* | | | 26,200 | | | | 69,954 | |
| InterMune, Inc.* | | | 10,683 | | | | 157,361 | |
| Isis Pharmaceuticals, Inc.* | | | 30,480 | | | | 428,549 | |
| Lexicon Pharmaceuticals, Inc.* | | | 23,600 | | | | 37,052 | |
| Ligand Pharmaceuticals, Inc., Class B* | | | 25,500 | | | | 52,785 | |
| MannKind Corp.* | | | 19,000 | | | | 71,440 | |
| Marshall Edwards, Inc.* | | | 4,400 | | | | 5,456 | |
| Martek Biosciences Corp. | | | 11,005 | | | | 328,279 | |
| Maxygen, Inc.* | | | 7,809 | | | | 32,720 | |
| Medarex, Inc.* | | | 43,042 | | | | 302,585 | |
| Metabolix, Inc.* | | | 6,400 | | | | 59,968 | |
| Molecular Insight Pharmaceuticals, Inc.* | | | 6,300 | | | | 31,500 | |
| Momenta Pharmaceuticals, Inc.* | | | 8,700 | | | | 79,257 | |
| Myriad Genetics, Inc.* | | | 15,044 | | | | 949,126 | |
| Nabi Biopharmaceuticals* | | | 18,551 | | | | 72,720 | |
| Nanosphere, Inc.* | | | 3,600 | | | | 17,928 | |
| Neurocrine Biosciences, Inc.* | | | 12,935 | | | | 53,422 | |
| Novavax, Inc.* | | | 19,600 | | | | 44,100 | |
| NPS Pharmaceuticals, Inc.* | | | 15,900 | | | | 111,300 | |
| Omrix Biopharmaceuticals, Inc.* | | | 4,800 | | | | 83,184 | |
| Onyx Pharmaceuticals, Inc.* | | | 18,740 | | | | 505,605 | |
| Opko Health, Inc.* | | | 12,900 | | | | 19,737 | |
| Orexigen Therapeutics, Inc.* | | | 7,200 | | | | 34,200 | |
| OSI Pharmaceuticals, Inc.* | | | 19,300 | | | | 732,435 | |
| Osiris Therapeutics, Inc.* | | | 4,500 | | | | 68,265 | |
| PDL BioPharma, Inc.* | | | 40,300 | | | | 392,925 | |
| Pharmasset, Inc.* | | | 5,700 | | | | 101,916 | |
| Progenics Pharmaceuticals, Inc.* | | | 9,000 | | | | 90,090 | |
| Protalix BioTherapeutics, Inc.* | | | 3,450 | | | | 5,865 | |
| Regeneron Pharmaceuticals, Inc.* | | | 20,877 | | | | 402,926 | |
| Repligen Corp.* | | | 11,000 | | | | 44,110 | |
| Rexahn Pharmaceuticals, Inc.* | | | 8,200 | | | | 9,020 | |
| Rigel Pharmaceuticals, Inc.* | | | 12,274 | | | | 106,906 | |
| Sangamo BioSciences, Inc.* | | | 12,400 | | | | 96,844 | |
| Savient Pharmaceuticals, Inc.* | | | 18,252 | | | | 86,879 | |
| Seattle Genetics, Inc.* | | | 19,900 | | | | 204,572 | |
| Synta Pharmaceuticals Corp.* | | | 6,200 | | | | 43,896 | |
| Targacept, Inc.* | | | 5,200 | | | | 30,784 | |
| Theravance, Inc.* | | | 17,000 | | | | 115,260 | |
| United Therapeutics Corp.* | | | 7,612 | | | | 663,995 | |
| XOMA Ltd.* | | | 47,600 | | | | 59,500 | |
| Zymogenetics, Inc.*(a) | | | 13,354 | | | | 42,733 | |
| | | | | | | | | |
| | | | | | | | 11,905,731 | |
| | | | | | | | | |
| |
| |
Building Products 0.5% |
| AAON, Inc. | | | 4,850 | | | | 79,976 | |
| American Woodmark Corp. | | | 3,435 | | | | 63,685 | |
| Ameron International Corp. | | | 3,100 | | | | 145,700 | |
| Apogee Enterprises, Inc. | | | 9,750 | | | | 96,135 | |
| Builders FirstSource, Inc.* | | | 4,800 | | | | 18,240 | |
| Gibraltar Industries, Inc. | | | 9,078 | | | | 120,283 | |
| Griffon Corp.* | | | 14,724 | | | | 124,271 | |
| Insteel Industries, Inc. | | | 5,900 | | | | 60,534 | |
| NCI Building Systems, Inc.* | | | 6,694 | | | | 124,575 | |
| Quanex Building Products Corp. | | | 11,975 | | | | 109,691 | |
| Simpson Manufacturing Co., Inc. | | | 13,018 | | | | 299,935 | |
| Trex Co., Inc.* | | | 5,100 | | | | 83,181 | |
| Universal Forest Products, Inc. | | | 5,606 | | | | 132,582 | |
| | | | | | | | | |
| | | | | | | | 1,458,788 | |
| | | | | | | | | |
| |
| |
Capital Markets 1.8% |
| Apollo Investment Corp. | | | 47,982 | | | | 632,403 | |
| Ares Capital Corp. | | | 32,749 | | | | 257,407 | |
| BGC Partners, Inc., Class A | | | 12,211 | | | | 49,943 | |
| BlackRock Kelso Capital Corp. | | | 3,486 | | | | 36,603 | |
| Broadpoint Securities Group, Inc.* | | | 6,200 | | | | 18,290 | |
120 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Capital Markets (continued) |
| | | | | | | | | |
| Calamos Asset Management, Inc., Class A | | | 7,100 | | | $ | 58,291 | |
| Capital Southwest Corp. | | | 1,015 | | | | 103,530 | |
| Cohen & Steers, Inc. | | | 5,350 | | | | 97,210 | |
| Diamond Hill Investment Group, Inc. | | | 600 | | | | 38,154 | |
| Epoch Holding Corp. | | | 3,200 | | | | 28,000 | |
| Evercore Partners, Inc., Class A | | | 3,300 | | | | 40,161 | |
| FBR Capital Markets Corp.* | | | 7,700 | | | | 42,427 | |
| FCStone Group, Inc.* | | | 7,700 | | | | 45,815 | |
| GAMCO Investors, Inc., Class A | | | 2,568 | | | | 97,764 | |
| GFI Group, Inc. | | | 23,240 | | | | 74,600 | |
| Gladstone Capital Corp. | | | 7,628 | | | | 90,849 | |
| Gladstone Investment Corp. | | | 8,000 | | | | 44,560 | |
| Greenhill & Co., Inc. | | | 5,800 | | | | 382,626 | |
| Harris & Harris Group, Inc.* | | | 9,400 | | | | 47,000 | |
| Hercules Technology Growth Capital, Inc. | | | 11,800 | | | | 102,424 | |
| International Assets Holding Corp.* | | | 1,200 | | | | 19,368 | |
| KBW, Inc.* | | | 9,100 | | | | 266,448 | |
| Knight Capital Group, Inc., Class A* | | | 31,675 | | | | 458,021 | |
| Kohlberg Capital Corp. | | | 6,300 | | | | 35,217 | |
| LaBranche & Co., Inc.* | | | 18,206 | | | | 113,423 | |
| Ladenburg Thalmann Financial Services, Inc.* | | | 30,200 | | | | 38,052 | |
| MCG Capital Corp. | | | 25,498 | | | | 20,908 | |
| MVC Capital, Inc. | | | 7,700 | | | | 95,249 | |
| NGP Capital Resources Co. | | | 6,263 | | | | 76,095 | |
| optionsXpress Holdings, Inc. | | | 14,300 | | | | 253,968 | |
| Patriot Capital Funding, Inc. | | | 6,500 | | | | 32,175 | |
| PennantPark Investment Corp. | | | 7,719 | | | | 35,276 | |
| Penson Worldwide, Inc.* | | | 6,000 | | | | 42,840 | |
| Piper Jaffray Cos.* | | | 6,279 | | | | 247,707 | |
| Prospect Capital Corp. | | | 9,400 | | | | 118,252 | |
| Pzena Investment Management, Inc., Class A | | | 2,100 | | | | 9,303 | |
| Riskmetrics Group, Inc.* | | | 6,800 | | | | 104,788 | |
| Sanders Morris Harris Group, Inc. | | | 7,053 | | | | 52,192 | |
| Stifel Financial Corp.* | | | 8,449 | | | | 368,799 | |
| SWS Group, Inc. | | | 8,425 | | | | 156,368 | |
| Thomas Weisel Partners Group, Inc.* | | | 6,130 | | | | 34,451 | |
| TradeStation Group, Inc.* | | | 10,800 | | | | 84,564 | |
| US Global Investors, Inc., Class A | | | 4,600 | | | | 33,166 | |
| Westwood Holdings Group, Inc. | | | 1,900 | | | | 72,865 | |
| | | | | | | | | |
| | | | | | | | 5,057,552 | |
| | | | | | | | | |
Chemicals 2.0% |
| A. Schulman, Inc. | | | 9,608 | | | | 172,079 | |
| American Vanguard Corp. | | | 6,733 | | | | 98,504 | |
| Arch Chemicals, Inc. | | | 8,750 | | | | 248,237 | |
| Balchem Corp. | | | 6,465 | | | | 165,245 | |
| Calgon Carbon Corp.* | | | 13,848 | | | | 184,455 | |
| Ferro Corp. | | | 14,717 | | | | 227,819 | |
| Flotek Industries, Inc.* | | | 7,600 | | | | 37,620 | |
| GenTek, Inc.* | | | 2,600 | | | | 46,800 | |
| H.B. Fuller Co. | | | 16,100 | | | | 284,487 | |
| Hercules, Inc. | | | 38,368 | | | | 644,966 | |
| ICO, Inc.* | | | 10,200 | | | | 45,594 | |
| Innophos Holdings, Inc. | | | 3,500 | | | | 93,625 | |
| Innospec, Inc. | | | 8,344 | | | | 73,010 | |
| Koppers Holdings, Inc. | | | 7,000 | | | | 166,530 | |
| Landec Corp.* | | | 8,400 | | | | 78,540 | |
| LSB Industries, Inc.* | | | 6,200 | | | | 50,964 | |
| Minerals Technologies, Inc. | | | 6,335 | | | | 359,575 | |
| N.L. Industries, Inc. | | | 2,128 | | | | 29,324 | |
| NewMarket Corp. | | | 4,575 | | | | 172,432 | |
| O.M. Group, Inc.* | | | 10,300 | | | | 219,802 | |
| Olin Corp. | | | 25,198 | | | | 457,596 | |
| Penford Corp. | | | 3,800 | | | | 48,906 | |
| PolyOne Corp.* | | | 32,788 | | | | 155,743 | |
| Quaker Chemical Corp. | | | 3,500 | | | | 66,955 | |
| Rockwood Holdings, Inc.* | | | 14,100 | | | | 174,135 | |
| Sensient Technologies Corp. | | | 16,254 | | | | 410,088 | |
| ShengdaTech, Inc.* | | | 8,500 | | | | 43,095 | |
| Solutia, Inc.* | | | 31,800 | | | | 306,552 | |
| Spartech Corp. | | | 10,288 | | | | 65,432 | |
| Stepan Co. | | | 2,100 | | | | 75,243 | |
| W.R. Grace & Co.* | | | 24,300 | | | | 218,943 | |
| Westlake Chemical Corp. | | | 5,900 | | | | 107,557 | |
| Zep, Inc. | | | 7,475 | | | | 157,349 | |
| Zoltek Cos., Inc.* | | | 9,300 | | | | 109,647 | |
| | | | | | | | | |
| | | | | | | | 5,796,849 | |
| | | | | | | | | |
| |
| |
Commercial Banks 7.7% |
| 1st Source Corp. | | | 4,540 | | | | 97,428 | |
| Amcore Financial, Inc. | | | 6,701 | | | | 31,160 | |
| Ameris Bancorp | | | 3,628 | | | | 40,053 | |
| Ames National Corp. | | | 1,900 | | | | 47,500 | |
| Arrow Financial Corp. | | | 3,300 | | | | 85,767 | |
| Bancfirst Corp. | | | 2,200 | | | | 110,880 | |
| Banco Latinoamericano de Exportaciones SA | | | 9,700 | | | | 103,111 | |
| BancTrust Financial Group, Inc. | | | 6,500 | | | | 80,990 | |
| Bank of the Ozarks, Inc. | | | 4,216 | | | | 128,166 | |
| Banner Corp. | | | 4,787 | | | | 61,130 | |
| Boston Private Financial Holdings, Inc. | | | 18,465 | | | | 163,231 | |
| Bryn Mawr Bank Corp. | | | 2,000 | | | | 42,380 | |
| Camden National Corp. | | | 2,800 | | | | 81,900 | |
| Capital City Bank Group, Inc. | | | 3,437 | | | | 96,236 | |
2008 Annual Report 121
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Commercial Banks (continued) |
| | | | | | | | | |
| Capitol Bancorp Ltd. | | | 5,185 | | | $ | 53,094 | |
| Cardinal Financial Corp. | | | 8,700 | | | | 54,288 | |
| Cascade Bancorp | | | 7,118 | | | | 67,906 | |
| Cathay General Bancorp | | | 16,713 | | | | 409,134 | |
| Centerstate Banks of Florida, Inc. | | | 3,500 | | | | 61,250 | |
| Central Pacific Financial Corp. | | | 9,705 | | | | 151,398 | |
| Chemical Financial Corp. | | | 8,071 | | | | 212,025 | |
| Citizens & Northern Corp. | | | 3,300 | | | | 77,550 | |
| Citizens Republic Bancorp, Inc. | | | 39,101 | | | | 115,348 | |
| City Bank | | | 4,655 | | | | 47,947 | |
| City Holding Co. | | | 5,462 | | | | 228,530 | |
| CoBiz Financial, Inc. | | | 6,874 | | | | 80,013 | |
| Colonial BancGroup, Inc. (The) | | | 68,100 | | | | 278,529 | |
| Columbia Banking System, Inc. | | | 6,109 | | | | 97,255 | |
| Community Bank System, Inc. | | | 10,409 | | | | 259,705 | |
| Community Trust Bancorp, Inc. | | | 5,411 | | | | 180,619 | |
| CVB Financial Corp. | | | 22,340 | | | | 282,824 | |
| East West Bancorp, Inc. | | | 21,400 | | | | 371,290 | |
| Enterprise Financial Services Corp. | | | 3,100 | | | | 57,505 | |
| Farmers Capital Bank Corp. | | | 2,400 | | | | 47,472 | |
| Financial Institutions, Inc. | | | 4,000 | | | | 64,840 | |
| First Bancorp North Carolina | | | 4,164 | | | | 72,870 | |
| First Bancorp Puerto Rico | | | 25,010 | | | | 255,602 | |
| First Bancorp, Inc. | | | 2,500 | | | | 45,000 | |
| First Busey Corp. | | | 7,950 | | | | 148,188 | |
| First Commonwealth Financial Corp. | | | 24,666 | | | | 272,806 | |
| First Community Bancshares, Inc. | | | 2,820 | | | | 88,266 | |
| First Financial Bancorp | | | 13,346 | | | | 179,504 | |
| First Financial Bankshares, Inc. | | | 7,274 | | | | 394,178 | |
| First Financial Corp. | | | 3,594 | | | | 151,954 | |
| First Merchants Corp. | | | 6,555 | | | | 144,276 | |
| First Midwest Bancorp, Inc. | | | 16,352 | | | | 363,178 | |
| First South Bancorp, Inc. | | | 2,060 | | | | 28,943 | |
| FirstMerit Corp. | | | 27,300 | | | | 636,636 | |
| FNB Corp. | | | 29,023 | | | | 380,201 | |
| Frontier Financial Corp. | | | 15,814 | | | | 105,321 | |
| Glacier Bancorp, Inc. | | | 18,163 | | | | 366,348 | |
| Green Bankshares, Inc. | | | 4,400 | | | | 86,900 | |
| Guaranty Bancorp* | | | 16,000 | | | | 68,160 | |
| Hancock Holding Co. | | | 8,692 | | | | 383,839 | |
| Hanmi Financial Corp. | | | 12,528 | | | | 50,112 | |
| Harleysville National Corp. | | | 11,175 | | | | 154,997 | |
| Heartland Financial USA, Inc. | | | 3,850 | | | | 91,438 | |
| Heritage Commerce Corp. | | | 3,900 | | | | 50,466 | |
| Home Bancshares, Inc. | | | 4,056 | | | | 105,618 | |
| IBERIABANK Corp. | | | 4,525 | | | | 230,504 | |
| Independent Bank Corp. | | | 5,510 | | | | 158,523 | |
| Integra Bank Corp. | | | 7,698 | | | | 46,419 | |
| International Bancshares Corp. | | | 17,720 | | | | 460,188 | |
| Investors Bancorp, Inc.* | | | 13,900 | | | | 199,604 | |
| Lakeland Bancorp, Inc. | | | 7,336 | | | | 80,843 | |
| Lakeland Financial Corp. | | | 3,800 | | | | 85,310 | |
| MainSource Financial Group, Inc. | | | 6,637 | | | | 118,537 | |
| MB Financial, Inc. | | | 12,181 | | | | 361,898 | |
| Midwest Banc Holdings, Inc. | | | 8,240 | | | | 24,802 | |
| Nara Bancorp, Inc. | | | 7,654 | | | | 84,194 | |
| National Penn Bancshares, Inc. | | | 26,771 | | | | 453,501 | |
| NBT Bancorp, Inc. | | | 10,874 | | | | 303,167 | |
| Northfield Bancorp, Inc.* | | | 5,600 | | | | 67,760 | |
| Old National Bancorp | | | 22,340 | | | | 423,120 | |
| Old Second Bancorp, Inc. | | | 4,684 | | | | 63,234 | |
| Oriental Financial Group | | | 8,204 | | | | 133,233 | |
| Pacific Capital Bancorp | | | 15,511 | | | | 304,636 | |
| Pacific Continental Corp. | | | 4,000 | | | | 57,000 | |
| PacWest Bancorp | | | 8,217 | | | | 205,343 | |
| Park National Corp. | | | 3,541 | | | | 257,608 | |
| Peapack-Gladstone Financial Corp. | | | 3,000 | | | | 96,090 | |
| Pennsylvania Commerce Bancorp, Inc.* | | | 2,000 | | | | 59,500 | |
| Peoples Bancorp, Inc. | | | 2,835 | | | | 54,290 | |
| Pinnacle Financial Partners, Inc.* | | | 8,000 | | | | 234,080 | |
| PremierWest Bancorp | | | 7,200 | | | | 58,680 | |
| PrivateBancorp, Inc. | | | 7,302 | | | | 262,945 | |
| Prosperity Bancshares, Inc. | | | 13,270 | | | | 440,697 | |
| Provident Bankshares Corp. | | | 11,223 | | | | 119,749 | |
| Renasant Corp. | | | 7,493 | | | | 157,053 | |
| Republic Bancorp, Inc., Class A | | | 3,368 | | | | 77,531 | |
| S&T Bancorp, Inc. | | | 8,001 | | | | 272,834 | |
| S.Y. Bancorp, Inc. | | | 4,830 | | | | 133,018 | |
| Sandy Spring Bancorp, Inc. | | | 5,556 | | | | 119,287 | |
| Santander BanCorp | | | 542 | | | | 5,144 | |
| SCBT Financial Corp. | | | 3,028 | | | | 102,619 | |
| Seacoast Banking Corp. of Florida | | | 5,525 | | | | 49,062 | |
| Shore Bancshares, Inc. | | | 3,100 | | | | 75,268 | |
| Sierra Bancorp | | | 2,300 | | | | 45,908 | |
| Signature Bank* | | | 11,413 | | | | 371,836 | |
| Simmons First National Corp., Class A | | | 4,343 | | | | 134,720 | |
| Smithtown Bancorp, Inc. | | | 3,600 | | | | 70,812 | |
| South Financial Group, Inc. (The) | | | 24,600 | | | | 142,926 | |
| Southside Bancshares, Inc. | | | 4,440 | | | | 106,960 | |
| Southwest Bancorp, Inc. | | | 5,300 | | | | 76,744 | |
| State Bancorp, Inc. | | | 5,100 | | | | 64,974 | |
| StellarOne Corp. | | | 7,700 | | | | 130,900 | |
| Sterling Bancorp | | | 6,026 | | | | 94,488 | |
| Sterling Bancshares, Inc. | | | 24,642 | | | | 196,150 | |
| Sterling Financial Corp. | | | 17,524 | | | | 148,779 | |
122 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
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| |
Commercial Banks (continued) |
| | | | | | | | | |
| Suffolk Bancorp | | | 3,483 | | | $ | 113,023 | |
| Sun Bancorp, Inc.* | | | 3,882 | | | | 38,820 | |
| Susquehanna Bancshares, Inc. | | | 29,033 | | | | 449,721 | |
| SVB Financial Group* | | | 10,145 | | | | 521,960 | |
| Texas Capital Bancshares, Inc.* | | | 8,620 | | | | 153,867 | |
| Tompkins Financial Corp. | | | 2,162 | | | | 105,938 | |
| TowneBank | | | 6,500 | | | | 142,155 | |
| Trico Bancshares | | | 5,024 | | | | 108,217 | |
| Trustmark Corp. | | | 16,720 | | | | 343,094 | |
| UCBH Holdings, Inc. | | | 37,275 | | | | 196,812 | |
| UMB Financial Corp. | | | 10,470 | | | | 474,605 | |
| Umpqua Holdings Corp. | | | 20,278 | | | | 345,132 | |
| Union Bankshares Corp. | | | 4,095 | | | | 97,584 | |
| United Bankshares, Inc. | | | 12,765 | | | | 407,203 | |
| United Community Banks, Inc. | | | 12,974 | | | | 170,219 | |
| United Security Bancshares | | | 2,727 | | | | 38,178 | |
| Univest Corp. of Pennsylvania | | | 3,980 | | | | 123,141 | |
| W Holding Co., Inc. | | | 33,780 | | | | 21,957 | |
| Washington Trust Bancorp, Inc. | | | 3,640 | | | | 77,605 | |
| WesBanco, Inc. | | | 9,400 | | | | 255,492 | |
| West Bancorp, Inc. | | | 6,500 | | | | 81,250 | |
| West Coast Bancorp | | | 5,300 | | | | 46,216 | |
| Westamerica Bancorp | | | 9,812 | | | | 561,737 | |
| Western Alliance Bancorp* | | | 5,800 | | | | 85,898 | |
| Wilshire Bancorp, Inc. | | | 6,896 | | | | 76,063 | |
| Wintrust Financial Corp. | | | 7,997 | | | | 204,723 | |
| Yadkin Valley Financial Corp. | | | 4,300 | | | | 64,027 | |
| | | | | | | | | |
| | | | | | | | 22,320,360 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 4.3% |
| ABM Industries, Inc. | | | 15,378 | | | | 251,123 | |
| ACCO Brands Corp.* | | | 19,200 | | | | 54,144 | |
| Administaff, Inc. | | | 7,319 | | | | 146,307 | |
| Advisory Board Co. (The)* | | | 5,800 | | | | 142,970 | |
| American Ecology Corp. | | | 5,500 | | | | 96,470 | |
| American Reprographics Co.* | | | 12,800 | | | | 136,192 | |
| AMREP Corp.* | | | 700 | | | | 21,077 | |
| Bowne & Co., Inc. | | | 9,588 | | | | 74,691 | |
| Casella Waste Systems, Inc., Class A* | | | 8,037 | | | | 40,506 | |
| CBIZ, Inc.* | | | 14,043 | | | | 113,748 | |
| CDI Corp. | | | 4,521 | | | | 58,773 | |
| Cenveo, Inc.* | | | 16,950 | | | | 81,868 | |
| China Direct, Inc.* | | | 2,300 | | | | 5,819 | |
| Clean Harbors, Inc.* | | | 6,700 | | | | 439,319 | |
| Comfort Systems U.S.A., Inc. | | | 13,575 | | | | 126,655 | |
| COMSYS IT Partners, Inc.* | | | 4,590 | | | | 27,907 | |
| Consolidated Graphics, Inc.* | | | 3,514 | | | | 45,717 | |
| Cornell Cos., Inc.* | | | 3,700 | | | | 84,249 | |
| CoStar Group, Inc.* | | | 6,565 | | | | 236,471 | |
| Courier Corp. | | | 3,750 | | | | 65,288 | |
| CRA International, Inc.* | | | 3,631 | | | | 98,255 | |
| Deluxe Corp. | | | 18,000 | | | | 218,880 | |
| Duff & Phelps Corp., Class A* | | | 3,100 | | | | 58,900 | |
| EnergySolutions, Inc. | | | 11,200 | | | | 50,512 | |
| EnerNOC, Inc.* | | | 3,300 | | | | 21,780 | |
| Ennis, Inc. | | | 7,900 | | | | 92,983 | |
| Exponent, Inc.* | | | 5,000 | | | | 147,150 | |
| First Advantage Corp., Class A* | | | 3,736 | | | | 40,834 | |
| Fuel Tech, Inc.* | | | 6,400 | | | | 75,200 | |
| G & K Services, Inc., Class A | | | 7,022 | | | | 158,627 | |
| Geo Group, Inc. (The)* | | | 17,244 | | | | 304,529 | |
| GeoEye, Inc.* | | | 6,100 | | | | 132,004 | |
| Healthcare Services Group | | | 15,150 | | | | 250,884 | |
| Heidrick & Struggles International, Inc. | | | 5,755 | | | | 138,868 | |
| Herman Miller, Inc. | | | 18,900 | | | | 415,800 | |
| Hill International, Inc.* | | | 8,300 | | | | 52,124 | |
| HNI Corp. | | | 14,900 | | | | 272,968 | |
| Hudson Highland Group, Inc.* | | | 9,050 | | | | 47,422 | |
| Huron Consulting Group, Inc.* | | | 7,000 | | | | 380,590 | |
| ICF International, Inc.* | | | 2,500 | | | | 46,450 | |
| ICT Group, Inc.* | | | 3,400 | | | | 17,918 | |
| IKON Office Solutions, Inc. | | | 27,320 | | | | 470,724 | |
| Innerworkings, Inc.* | | | 11,300 | | | | 78,535 | |
| Interface, Inc., Class A | | | 18,755 | | | | 132,223 | |
| Kelly Services, Inc., Class A | | | 9,340 | | | | 133,002 | |
| Kforce, Inc.* | | | 10,975 | | | | 86,373 | |
| Kimball International, Inc., Class B | | | 11,448 | | | | 85,288 | |
| Knoll, Inc. | | | 16,300 | | | | 235,698 | |
| Korn/Ferry International* | | | 15,679 | | | | 217,781 | |
| Learning Tree International, Inc.* | | | 3,200 | | | | 40,800 | |
| LECG Corp.* | | | 8,600 | | | | 41,280 | |
| M & F Worldwide Corp.* | | | 4,000 | | | | 92,200 | |
| McGrath Rentcorp | | | 7,706 | | | | 175,234 | |
| Metalico, Inc.* | | | 8,200 | | | | 26,240 | |
| Mine Safety Appliances Co. | | | 10,487 | | | | 283,149 | |
| Mobile Mini, Inc.* | | | 11,729 | | | | 197,047 | |
| MPS Group, Inc.* | | | 33,126 | | | | 258,052 | |
| Multi-Color Corp. | | | 3,050 | | | | 60,085 | |
| Navigant Consulting, Inc.* | | | 16,269 | | | | 263,070 | |
| Odyssey Marine Exploration, Inc.* | | | 14,200 | | | | 53,676 | |
| On Assignment, Inc.* | | | 12,600 | | | | 81,900 | |
| PeopleSupport, Inc.*(c) | | | 6,800 | | | | 83,300 | |
| PHH Corp.* | | | 17,820 | | | | 143,629 | |
| PRG-Schultz International, Inc.* | | | 5,100 | | | | 21,624 | |
| Protection One, Inc.* | | | 1,000 | | | | 7,350 | |
| Resources Connection, Inc.* | | | 15,355 | | | | 266,256 | |
| Rollins, Inc. | | | 13,391 | | | | 235,280 | |
| Schawk, Inc. | | | 4,345 | | | | 57,050 | |
| School Specialty, Inc.* | | | 6,308 | | | | 132,468 | |
| Spherion Corp.* | | | 19,667 | | | | 62,541 | |
| Standard Parking Corp.* | | | 3,200 | | | | 67,072 | |
2008 Annual Report 123
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
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| |
Commercial Services & Supplies (continued) |
| | | | | | | | | |
| Standard Register Co. (The) | | | 5,851 | | | $ | 47,569 | |
| SYKES Enterprises, Inc.* | | | 11,167 | | | | 178,225 | |
| Team, Inc.* | | | 6,200 | | | | 172,174 | |
| TETRA Tech, Inc.* | | | 19,807 | | | | 435,556 | |
| TrueBlue, Inc.* | | | 15,369 | | | | 128,024 | |
| United Stationers, Inc.* | | | 7,901 | | | | 295,418 | |
| Viad Corp. | | | 6,985 | | | | 152,622 | |
| Volt Information Sciences, Inc.* | | | 4,257 | | | | 32,566 | |
| VSE Corp. | | | 1,400 | | | | 45,906 | |
| Waste Connections, Inc.* | | | 26,434 | | | | 894,791 | |
| Waste Services, Inc.* | | | 7,199 | | | | 43,050 | |
| Watson Wyatt Worldwide, Inc., Class A | | | 14,385 | | | | 610,931 | |
| | | | | | | | | |
| | | | | | | | 12,397,731 | |
| | | | | | | | | |
| |
| |
Communications Equipment 2.6% |
| 3Com Corp.* | | | 135,990 | | | | 371,253 | |
| Acme Packet, Inc.* | | | 9,900 | | | | 46,926 | |
| ADTRAN, Inc. | | | 18,205 | | | | 276,716 | |
| Airvana, Inc.* | | | 6,900 | | | | 30,291 | |
| Anaren, Inc.* | | | 4,893 | | | | 60,918 | |
| Arris Group, Inc.* | | | 41,375 | | | | 285,901 | |
| Aruba Networks, Inc.* | | | 17,500 | | | | 54,425 | |
| Avanex Corp.* | | | 5,166 | | | | 16,015 | |
| Avocent Corp.* | | | 15,100 | | | | 226,802 | |
| Bel Fuse, Inc., Class B | | | 4,249 | | | | 92,203 | |
| BigBand Networks, Inc.* | | | 11,100 | | | | 41,070 | |
| Black Box Corp. | | | 5,877 | | | | 178,720 | |
| Blue Coat Systems, Inc.* | | | 11,190 | | | | 151,065 | |
| Bookham, Inc.* | | | 34,800 | | | | 18,792 | |
| Cogo Group, Inc.* | | | 8,700 | | | | 47,328 | |
| Comtech Telecommunications Corp.* | | | 8,170 | | | | 395,591 | |
| DG FastChannel, Inc.* | | | 5,500 | | | | 97,405 | |
| Digi International, Inc.* | | | 8,700 | | | | 89,088 | |
| EMS Technologies, Inc.* | | | 5,600 | | | | 117,040 | |
| Emulex Corp.* | | | 28,440 | | | | 270,180 | |
| Extreme Networks, Inc.* | | | 29,762 | | | | 54,762 | |
| Finisar Corp.* | | | 124,523 | | | | 75,959 | |
| Foundry Networks, Inc.* | | | 49,700 | | | | 738,045 | |
| Globecomm Systems, Inc.* | | | 6,800 | | | | 53,584 | |
| Harmonic, Inc.* | | | 31,784 | | | | 225,984 | |
| Harris Stratex Networks, Inc., Class A* | | | 9,150 | | | | 60,665 | |
| Hughes Communications, Inc.* | | | 2,200 | | | | 35,750 | |
| Infinera Corp.* | | | 31,100 | | | | 241,958 | |
| InterDigital, Inc.* | | | 15,350 | | | | 334,323 | |
| Ixia* | | | 13,136 | | | | 87,486 | |
| Loral Space & Communications, Inc.* | | | 3,400 | | | | 39,100 | |
| MRV Communications, Inc.* | | | 45,395 | | | | 33,588 | |
| NEON Communications, Inc. *(b)(c) | | | 125 | | | | 0 | |
| Netgear, Inc.* | | | 11,930 | | | | 131,826 | |
| Neutral Tandem, Inc.* | | | 5,900 | | | | 102,778 | |
| Nextwave Wireless, Inc.* | | | 16,600 | | | | 4,648 | |
| Oplink Communications, Inc.* | | | 7,456 | | | | 60,543 | |
| Opnext, Inc.* | | | 4,600 | | | | 18,400 | |
| Orbcomm, Inc.* | | | 8,800 | | | | 26,400 | |
| ParkerVision, Inc.* | | | 7,800 | | | | 39,078 | |
| PC-Tel, Inc.* | | | 6,500 | | | | 38,155 | |
| Plantronics, Inc. | | | 16,541 | | | | 238,852 | |
| Polycom, Inc.* | | | 29,500 | | | | 619,795 | |
| Powerwave Technologies, Inc.* | | | 44,305 | | | | 42,090 | |
| Riverbed Technology, Inc.* | | | 18,500 | | | | 231,805 | |
| Seachange International, Inc.* | | | 10,400 | | | | 79,456 | |
| ShoreTel, Inc.* | | | 14,800 | | | | 72,076 | |
| Sonus Networks, Inc.* | | | 68,750 | | | | 151,937 | |
| Starent Networks Corp.* | | | 10,600 | | | | 105,682 | |
| Sycamore Networks, Inc.* | | | 61,218 | | | | 204,468 | |
| Symmetricom, Inc.* | | | 14,585 | | | | 64,903 | |
| Tekelec* | | | 22,010 | | | | 279,307 | |
| UTStarcom, Inc.* | | | 39,325 | | | | 93,593 | |
| ViaSat, Inc.* | | | 8,923 | | | | 162,577 | |
| | | | | | | | | |
| | | | | | | | 7,617,302 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 0.9% |
| 3PAR, Inc.* | | | 9,300 | | | | 59,334 | |
| Adaptec, Inc.* | | | 40,830 | | | | 131,064 | |
| Avid Technology, Inc.* | | | 10,200 | | | | 151,266 | |
| Compellent Technologies, Inc.* | | | 5,200 | | | | 56,680 | |
| Cray, Inc.* | | | 11,100 | | | | 34,854 | |
| Data Domain, Inc.* | | | 11,100 | | | | 204,906 | |
| Electronics for Imaging, Inc.* | | | 18,733 | | | | 198,570 | |
| Hutchinson Technology, Inc.* | | | 7,996 | | | | 54,693 | |
| Hypercom Corp.* | | | 17,830 | | | | 34,768 | |
| Imation Corp. | | | 10,100 | | | | 124,432 | |
| Immersion Corp.* | | | 10,300 | | | | 53,354 | |
| Intermec, Inc.* | | | 20,591 | | | | 267,065 | |
| Intevac, Inc.* | | | 7,300 | | | | 56,794 | |
| Isilon Systems, Inc.* | | | 9,100 | | | | 31,122 | |
| Netezza Corp.* | | | 13,400 | | | | 129,980 | |
| Novatel Wireless, Inc.* | | | 10,504 | | | | 54,726 | |
| Palm, Inc.* | | | 36,185 | | | | 144,378 | |
| Presstek, Inc.* | | | 9,700 | | | | 40,546 | |
| Quantum Corp.* | | | 64,402 | | | | 18,677 | |
| Rackable Systems, Inc.* | | | 10,045 | | | | 71,621 | |
| Rimage Corp.* | | | 3,500 | | | | 51,590 | |
| STEC, Inc.* | | | 10,400 | | | | 57,200 | |
| Stratasys, Inc.* | | | 7,000 | | | | 84,560 | |
| Super Micro Computer, Inc.* | | | 7,500 | | | | 47,100 | |
| Synaptics, Inc.* | | | 11,235 | | | | 347,049 | |
| | | | | | | | | |
| | | | | | | | 2,506,329 | |
| | | | | | | | | |
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| |
Construction & Engineering 0.7% |
| Dycom Industries, Inc.* | | | 13,096 | | | | 116,293 | |
124 Annual Report 2008
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Common Stocks (continued) |
| | | | Shares | | | | Value | |
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Construction & Engineering (continued) |
| | | | | | | | | |
| EMCOR Group, Inc.* | | | 22,920 | | | $ | 407,288 | |
| Furmanite Corp.* | | | 12,900 | | | | 103,200 | |
| Granite Construction, Inc. | | | 11,205 | | | | 399,682 | |
| Great Lakes Dredge & Dock Corp. | | | 12,200 | | | | 54,656 | |
| Insituform Technologies, Inc., Class A* | | | 9,882 | | | | 132,715 | |
| Integrated Electrical Services, Inc.* | | | 2,800 | | | | 34,244 | |
| Layne Christensen Co.* | | | 6,440 | | | | 169,243 | |
| MasTec, Inc.* | | | 15,146 | | | | 132,073 | |
| Michael Baker Corp.* | | | 2,600 | | | | 61,958 | |
| Northwest Pipe Co.* | | | 3,100 | | | | 89,063 | |
| Orion Marine Group, Inc.* | | | 7,200 | | | | 37,296 | |
| Perini Corp.* | | | 16,483 | | | | 313,507 | |
| Pike Electric Corp.* | | | 5,100 | | | | 44,625 | |
| Sterling Construction Co., Inc.* | | | 4,200 | | | | 55,482 | |
| | | | | | | | | |
| | | | | | | | 2,151,325 | |
| | | | | | | | | |
| |
| |
Construction Materials 0.2% |
| Headwaters, Inc.* | | | 14,144 | | | | 149,926 | |
| Texas Industries, Inc. | | | 7,858 | | | | 248,549 | |
| U.S. Concrete, Inc.* | | | 14,500 | | | | 45,675 | |
| United States Lime & Minerals, Inc.* | | | 500 | | | | 12,750 | |
| | | | | | | | | |
| | | | | | | | 456,900 | |
| | | | | | | | | |
| |
| |
Consumer Finance 0.4% |
| Advance America Cash Advance Centers, Inc. | | | 15,180 | | | | 40,682 | |
| Advanta Corp., Class B | | | 12,932 | | | | 58,453 | |
| Cardtronics, Inc.* | | | 2,700 | | | | 15,066 | |
| Cash America International, Inc. | | | 9,854 | | | | 348,536 | |
| CompuCredit Corp.* | | | 5,951 | | | | 15,354 | |
| Credit Acceptance Corp.* | | | 1,468 | | | | 22,519 | |
| Dollar Financial Corp.* | | | 8,200 | | | | 95,366 | |
| EZCORP, Inc., Class A* | | | 13,000 | | | | 205,920 | |
| First Cash Financial Services, Inc.* | | | 7,105 | | | | 109,204 | |
| First Marblehead Corp. (The) | | | 23,300 | | | | 39,610 | |
| Nelnet, Inc., Class A | | | 6,300 | | | | 92,169 | |
| World Acceptance Corp.* | | | 5,534 | | | | 102,268 | |
| | | | | | | | | |
| | | | | | | | 1,145,147 | |
| | | | | | | | | |
| |
| |
Containers & Packaging 0.4% |
| AEP Industries, Inc.* | | | 1,700 | | | | 33,269 | |
| Boise, Inc.* | | | 11,300 | | | | 7,119 | |
| BWAY Holding Co.* | | | 2,500 | | | | 18,700 | |
| Graphic Packaging Holding Co.* | | | 45,800 | | | | 84,730 | |
| Myers Industries, Inc. | | | 9,000 | | | | 95,130 | |
| Rock-Tenn Co., Class A | | | 12,833 | | | | 390,251 | |
| Silgan Holdings, Inc. | | | 8,396 | | | | 390,750 | |
| | | | | | | | | |
| | | | | | | | 1,019,949 | |
| | | | | | | | | |
| |
| |
Distributors 0.1% |
| Audiovox Corp., Class A* | | | 4,788 | | | | 28,201 | |
| Core-Mark Holding Co., Inc.* | | | 3,400 | | | | 67,218 | |
| RSC Holdings, Inc.* | | | 15,200 | | | | 111,568 | |
| | | | | | | | | |
| | | | | | | | 206,987 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 1.0% |
| American Public Education, Inc.* | | | 3,700 | | | | 163,799 | |
| Capella Education Co.* | | | 4,800 | | | | 227,520 | |
| Coinstar, Inc.* | | | 9,438 | | | | 226,418 | |
| Corinthian Colleges, Inc.* | | | 28,700 | | | | 409,836 | |
| Jackson Hewitt Tax Service, Inc. | | | 9,600 | | | | 132,288 | |
| K12, Inc.* | | | 1,800 | | | | 49,500 | |
| Lincoln Educational Services Corp.* | | | 700 | | | | 10,122 | |
| Matthews International Corp., Class A | | | 10,432 | | | | 465,580 | |
| Pre-Paid Legal Services, Inc.* | | | 2,850 | | | | 112,518 | |
| Princeton Review, Inc.* | | | 5,100 | | | | 28,407 | |
| Regis Corp. | | | 14,475 | | | | 179,056 | |
| Sotheby’s | | | 22,698 | | | | 211,318 | |
| Steiner Leisure Ltd.* | | | 5,700 | | | | 147,630 | |
| Stewart Enterprises, Inc., Class A | | | 28,572 | | | | 147,717 | |
| thinkorswim Group, Inc.* | | | 18,390 | | | | 147,120 | |
| Universal Technical Institute, Inc.* | | | 7,268 | | | | 119,922 | |
| | | | | | | | | |
| | | | | | | | 2,778,751 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 0.4% |
| Ampal American Israel, Class A* | | | 4,300 | | | | 9,718 | |
| Asset Acceptance Capital Corp.* | | | 4,745 | | | | 38,482 | |
| Compass Diversified Holdings | | | 8,600 | | | | 104,920 | |
| Encore Capital Group, Inc.* | | | 4,600 | | | | 43,056 | |
| Fifth Street Finance Corp. | | | 2,200 | | | | 14,960 | |
| Financial Federal Corp. | | | 8,623 | | | | 199,623 | |
| Interactive Brokers Group, Inc., Class A* | | | 13,700 | | | | 292,769 | |
| Life Partners Holdings, Inc. | | | 2,000 | | | | 80,360 | |
| MarketAxess Holdings, Inc.* | | | 9,500 | | | | 54,340 | |
| Medallion Financial Corp. | | | 5,000 | | | | 40,450 | |
| NewStar Financial, Inc.* | | | 6,900 | | | | 37,329 | |
| Pico Holdings, Inc.* | | | 5,700 | | | | 142,728 | |
| Portfolio Recovery Associates, Inc.* | | | 5,122 | | | | 183,777 | |
2008 Annual Report 125
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Diversified Financial Services (continued) |
| | | | | | | | | |
| Primus Guaranty Ltd.* | | | 8,700 | | | $ | 3,915 | |
| Resource America, Inc., Class A | | | 3,905 | | | | 22,454 | |
| | | | | | | | | |
| | | | | | | | 1,268,881 | |
| | | | | | | | | |
| |
| |
Diversified Telecommunication Services 0.8% |
| Alaska Communications Systems, Inc. | | | 14,600 | | | | 136,364 | |
Atlantic Tele-Network, Inc. | | | 3,200 | | | | 77,856 | |
| Cbeyond, Inc.* | | | 8,075 | | | | 97,061 | |
| Cincinnati Bell, Inc.* | | | 81,979 | | | | 195,930 | |
| Cogent Communications Group, Inc.* | | | 16,100 | | | | 76,958 | |
| Consolidated Communications Holdings, Inc. | | | 7,998 | | | | 82,379 | |
| FairPoint Communications, Inc. | | | 30,068 | | | | 119,671 | |
| General Communication, Inc., Class A* | | | 16,048 | | | | 123,249 | |
| Global Crossing Ltd.* | | | 9,100 | | | | 60,606 | |
| Globalstar, Inc.* | | | 15,700 | | | | 8,635 | |
| Hungarian Telephone & Cable Corp.* | | | 1,000 | | | | 10,750 | |
| iBasis, Inc. | | | 7,500 | | | | 16,575 | |
| IDT Corp., Class B* | | | 20,935 | | | | 21,563 | |
| Iowa Telecommunications Services, Inc. | | | 10,800 | | | | 163,296 | |
| NTELOS Holdings Corp. | | | 10,560 | | | | 274,560 | |
| PAETEC Holding Corp.* | | | 43,800 | | | | 39,420 | |
| Premiere Global Services, Inc.* | | | 21,775 | | | | 216,661 | |
| Shenandoah Telecommunications Co. | | | 7,583 | | | | 181,765 | |
| tw telecom, Inc.* | | | 49,664 | | | | 351,621 | |
| Vonage Holdings Corp.* | | | 16,200 | | | | 15,228 | |
| XO Communications, Inc. *(b)(c) | | | 5,400 | | | | 0 | |
| | | | | | | | | |
| | | | | | | | 2,270,148 | |
| | | | | | | | | |
| |
| |
Electric Utilities 1.5% |
| Allete, Inc. | | | 8,860 | | | | 310,100 | |
| Central Vermont Public Service Corp. | | | 3,500 | | | | 69,685 | |
| Cleco Corp. | | | 20,332 | | | | 467,839 | |
| El Paso Electric Co.* | | | 15,831 | | | | 293,190 | |
| Empire District Electric Co. (The) | | | 11,376 | | | | 218,533 | |
| IDACORP, Inc. | | | 15,214 | | | | 405,605 | |
| ITC Holdings Corp. | | | 16,700 | | | | 677,686 | |
| MGE Energy, Inc. | | | 7,023 | | | | 250,230 | |
| Portland General Electric Co. | | | 21,100 | | | | 432,972 | |
| UIL Holdings Corp. | | | 8,513 | | | | 280,929 | |
| UniSource Energy Corp. | | | 11,664 | | | | 321,693 | |
| Westar Energy, Inc. | | | 35,000 | | | | 682,150 | |
| | | | | | | | | |
| | | | | | | | 4,410,612 | |
| | | | | | | | | |
Electrical Equipment 2.0% |
| A.O. Smith Corp. | | | 6,509 | | | | 205,359 | |
| Acuity Brands, Inc. | | | 13,651 | | | | 477,239 | |
| Advanced Battery Technologies, Inc.* | | | 14,800 | | | | 42,180 | |
| Akeena Solar, Inc.* | | | 7,000 | | | | 19,670 | |
| American Superconductor Corp.* | | | 14,136 | | | | 176,841 | |
| AZZ, Inc.* | | | 4,100 | | | | 119,638 | |
| Baldor Electric Co. | | | 15,579 | | | | 273,567 | |
| Beacon Power Corp.* | | | 29,900 | | | | 27,209 | |
| Belden, Inc. | | | 14,752 | | | | 307,432 | |
| Brady Corp., Class A | | | 16,889 | | | | 523,559 | |
| Capstone Turbine Corp.* | | | 49,200 | | | | 66,420 | |
| China BAK Battery, Inc.* | | | 10,800 | | | | 27,864 | |
| Coleman Cable, Inc.* | | | 2,500 | | | | 17,400 | |
| Encore Wire Corp. | | | 6,146 | | | | 117,819 | |
| Ener1, Inc.* | | | 11,000 | | | | 86,130 | |
| Energy Conversion Devices, Inc.* | | | 15,185 | | | | 518,416 | |
| EnerSys* | | | 9,285 | | | | 122,748 | |
| Evergreen Solar, Inc.* | | | 48,410 | | | | 183,474 | |
| Franklin Electric Co., Inc. | | | 7,991 | | | | 336,900 | |
| FuelCell Energy, Inc.* | | | 23,143 | | | | 110,623 | |
| Fushi Copperweld, Inc.* | | | 4,900 | | | | 21,805 | |
| GrafTech International Ltd.* | | | 40,316 | | | | 326,963 | |
| GT Solar International, Inc.* | | | 8,900 | | | | 41,029 | |
| Harbin Electric, Inc.* | | | 1,800 | | | | 14,742 | |
| II-VI, Inc.* | | | 8,584 | | | | 241,125 | |
| LaBarge, Inc.* | | | 3,900 | | | | 53,625 | |
| LSI Industries, Inc. | | | 6,375 | | | | 50,044 | |
| Medis Technologies Ltd.* | | | 11,977 | | | | 14,612 | |
| Microvision, Inc.* | | | 20,100 | | | | 34,773 | |
| Orion Energy Systems, Inc.* | | | 3,600 | | | | 15,984 | |
| Plug Power, Inc.* | | | 27,700 | | | | 27,146 | |
| Polypore International, Inc.* | | | 5,600 | | | | 47,768 | |
| Powell Industries, Inc.* | | | 2,669 | | | | 49,403 | |
| Power-One, Inc.* | | | 23,600 | | | | 26,196 | |
| PowerSecure International, Inc.* | | | 6,300 | | | | 24,255 | |
| Preformed Line Products Co. | | | 800 | | | | 32,000 | |
| Regal-Beloit Corp. | | | 10,736 | | | | 349,564 | |
| Ultralife Corp.* | | | 4,600 | | | | 39,974 | |
| Valence Technology, Inc.* | | | 17,100 | | | | 39,330 | |
| Vicor Corp. | | | 4,988 | | | | 34,866 | |
| Woodward Governor Co. | | | 19,800 | | | | 635,580 | |
| | | | | | | | | |
| | | | | | | | 5,881,272 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 1.8% |
| Agilysys, Inc. | | | 8,185 | | | | 32,904 | |
| Anixter International, Inc.* | | | 10,085 | | | | 338,957 | |
| Benchmark Electronics, Inc.* | | | 22,765 | | | | 272,952 | |
| Brightpoint, Inc.* | | | 17,660 | | | | 101,722 | |
| Checkpoint Systems, Inc.* | | | 13,408 | | | | 169,075 | |
126 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Electronic Equipment & Instruments (continued) |
| | | | | | | | | |
| China Architectural Engineering, Inc.* | | | 6,600 | | | $ | 26,004 | |
| China Security & Surveillance Technology, Inc.* | | | 8,200 | | | | 85,854 | |
| Cogent, Inc.* | | | 14,600 | | | | 133,444 | |
| Cognex Corp. | | | 14,179 | | | | 227,148 | |
| Coherent, Inc.* | | | 8,300 | | | | 209,990 | |
| Comverge, Inc.* | | | 7,400 | | | | 33,596 | |
| CPI International, Inc.* | | | 2,400 | | | | 23,664 | |
| CTS Corp. | | | 12,037 | | | | 84,139 | |
| Daktronics, Inc. | | | 11,072 | | | | 110,277 | |
| DTS, Inc.* | | | 6,012 | | | | 124,148 | |
| Echelon Corp.* | | | 10,487 | | | | 85,259 | |
| Electro Rent Corp. | | | 7,200 | | | | 86,328 | |
| Electro Scientific Industries, Inc.* | | | 8,954 | | | | 74,945 | |
| Elixir Gaming Technologies, Inc.* | | | 25,300 | | | | 3,542 | |
| FARO Technologies, Inc.* | | | 5,600 | | | | 84,952 | |
| Gerber Scientific, Inc.* | | | 8,000 | | | | 38,240 | |
| ICx Technologies, Inc.* | | | 3,800 | | | | 31,084 | |
| Insight Enterprises, Inc.* | | | 16,462 | | | | 160,175 | |
| IPG Photonics Corp.* | | | 6,900 | | | | 97,980 | |
| Kemet Corp.* | | | 31,206 | | | | 18,411 | |
| L-1 Identity Solutions, Inc.*(a) | | | 21,848 | | | | 179,154 | |
| Littelfuse, Inc.* | | | 7,466 | | | | 139,316 | |
| Maxwell Technologies, Inc.* | | | 6,200 | | | | 56,234 | |
| Measurement Specialties, Inc.* | | | 4,131 | | | | 44,119 | |
| Mercury Computer Systems, Inc.* | | | 7,653 | | | | 54,948 | |
| Methode Electronics, Inc. | | | 13,500 | | | | 102,465 | |
| MTS Systems Corp. | | | 5,956 | | | | 193,451 | |
| Multi-Fineline Electronix, Inc.* | | | 3,200 | | | | 37,376 | |
| Newport Corp.* | | | 12,145 | | | | 87,322 | |
| OSI Systems, Inc.* | | | 5,576 | | | | 64,124 | |
| Park Electrochemical Corp. | | | 7,263 | | | | 157,026 | |
| PC Connection, Inc.* | | | 1,900 | | | | 11,476 | |
| PC Mall, Inc.* | | | 4,200 | | | | 18,816 | |
| Plexus Corp.* | | | 13,504 | | | | 251,985 | |
| RadiSys Corp.* | | | 7,560 | | | | 48,157 | |
| Rofin-Sinar Technologies, Inc.* | | | 9,984 | | | | 222,543 | |
| Rogers Corp.* | | | 6,353 | | | | 191,225 | |
| Sanmina-SCI Corp.* | | | 180,300 | | | | 135,225 | |
| ScanSource, Inc.* | | | 8,620 | | | | 171,021 | |
| Smart Modular Technologies, Inc.* | | | 14,000 | | | | 37,940 | |
| SYNNEX Corp.* | | | 5,900 | | | | 91,037 | |
| Technitrol, Inc. | | | 14,431 | | | | 83,267 | |
| TTM Technologies, Inc.* | | | 14,371 | | | | 102,896 | |
| Universal Display Corp.* | | | 10,300 | | | | 111,446 | |
| Zygo Corp.* | | | 4,800 | | | | 41,232 | |
| | | | | | | | | |
| | | | | | | | 5,288,591 | |
| | | | | | | | | |
Energy Equipment & Services 1.6% |
| Allis-Chalmers Energy, Inc.* | | | 9,500 | | | | 64,220 | |
| Basic Energy Services, Inc.* | | | 14,000 | | | | 191,520 | |
| Bolt Technology Corp.* | | | 2,900 | | | | 23,519 | |
| Bristow Group, Inc.* | | | 8,200 | | | | 203,114 | |
| Bronco Drilling Co., Inc.* | | | 9,400 | | | | 72,568 | |
| Cal Dive International, Inc.* | | | 13,912 | | | | 118,391 | |
| CARBO Ceramics, Inc. | | | 6,899 | | | | 298,520 | |
| Complete Production Services, Inc.* | | | 16,200 | | | | 200,718 | |
| Dawson Geophysical Co.* | | | 2,600 | | | | 63,778 | |
| Dril-Quip, Inc.*(a) | | | 10,396 | | | | 256,781 | |
| ENGlobal Corp.* | | | 9,100 | | | | 39,949 | |
| Geokinetics, Inc.* | | | 1,700 | | | | 9,690 | |
| Grey Wolf, Inc.* | | | 60,117 | | | | 385,951 | |
| Gulf Island Fabrication, Inc. | | | 4,087 | | | | 80,555 | |
| Gulfmark Offshore, Inc.* | | | 7,640 | | | | 282,680 | |
| Hornbeck Offshore Services, Inc.* | | | 7,810 | | | | 185,878 | |
| ION Geophysical Corp.* | | | 28,486 | | | | 186,868 | |
| Lufkin Industries, Inc. | | | 4,964 | | | | 259,717 | |
| Matrix Service Co.* | | | 9,100 | | | | 111,475 | |
| Mitcham Industries, Inc.* | | | 3,300 | | | | 18,018 | |
| NATCO Group, Inc., Class A* | | | 6,700 | | | | 141,638 | |
| Natural Gas Services Group, Inc.* | | | 4,100 | | | | 54,325 | |
| Newpark Resources, Inc.* | | | 31,584 | | | | 181,608 | |
| OYO Geospace Corp.* | | | 1,400 | | | | 40,138 | |
| Parker Drilling Co.* | | | 38,112 | | | | 195,133 | |
| PHI, Inc. — Non Voting* | | | 4,300 | | | | 90,214 | |
| Pioneer Drilling Co.* | | | 17,545 | | | | 135,798 | |
| RPC, Inc. | | | 9,151 | | | | 96,909 | |
| SulphCo, Inc.* | | | 15,100 | | | | 30,200 | |
| Superior Well Services, Inc.* | | | 5,600 | | | | 93,800 | |
| T-3 Energy Services, Inc.* | | | 4,200 | | | | 101,262 | |
| Trico Marine Services, Inc.* | | | 4,300 | | | | 38,700 | |
| Union Drilling, Inc.* | | | 4,700 | | | | 25,756 | |
| Willbros Group, Inc.* | | | 13,100 | | | | 202,919 | |
| | | | | | | | | |
| | | | | | | | 4,482,310 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 1.0% |
| Andersons, Inc. (The) | | | 6,130 | | | | 163,242 | |
| Arden Group, Inc., Class A | | | 368 | | | | 55,200 | |
| Casey’s General Stores, Inc. | | | 17,080 | | | | 515,816 | |
| Great Atlantic & Pacific Tea Co.* | | | 11,856 | | | | 98,049 | |
| Ingles Markets, Inc., Class A | | | 4,552 | | | | 84,940 | |
| Nash Finch Co. | | | 4,335 | | | | 170,929 | |
| Pantry, Inc. (The)* | | | 7,475 | | | | 164,600 | |
| PriceSmart, Inc. | | | 4,400 | | | | 65,560 | |
| Ruddick Corp. | | | 14,189 | | | | 406,373 | |
| Spartan Stores, Inc. | | | 7,400 | | | | 199,726 | |
| Susser Holdings Corp.* | | | 3,000 | | | | 46,740 | |
| United Natural Foods, Inc.* | | | 14,472 | | | | 323,304 | |
2008 Annual Report 127
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Food & Staples Retailing (continued) |
| | | | | | | | | |
| Village Super Market, Inc., Class A | | | 1,200 | | | $ | 58,968 | |
| Weis Markets, Inc. | | | 3,483 | | | | 112,989 | |
| Winn-Dixie Stores, Inc.* | | | 18,800 | | | | 282,376 | |
| | | | | | | | | |
| | | | | | | | 2,748,812 | |
| | | | | | | | | |
| |
| |
Food Products 1.9% |
| AgFeed Industries, Inc.* | | | 6,700 | | | | 29,346 | |
| Alico, Inc. | | | 1,300 | | | | 51,207 | |
| American Dairy, Inc.* | | | 1,700 | | | | 20,876 | |
| Aurora Foods, Inc. *(b)(c) | | | 100 | | | | 0 | |
| B&G Foods, Inc., Class A | | | 7,500 | | | | 27,975 | |
| Cal-Maine Foods, Inc. | | | 4,400 | | | | 129,316 | |
| Calavo Growers, Inc. | | | 3,800 | | | | 38,570 | |
| Chiquita Brands International, Inc.* | | | 14,575 | | | | 198,949 | |
| Darling International, Inc.* | | | 27,500 | | | | 207,350 | |
| Diamond Foods, Inc. | | | 5,100 | | | | 149,073 | |
| Farmer Bros Co. | | | 1,800 | | | | 43,200 | |
| Flowers Foods, Inc. | | | 26,094 | | | | 773,687 | |
| Fresh Del Monte Produce, Inc.* | | | 14,100 | | | | 297,651 | |
| Green Mountain Coffee Roasters, Inc.* | | | 5,800 | | | | 168,142 | |
| Griffin Land & Nurseries, Inc. | | | 900 | | | | 27,603 | |
| Hain Celestial Group, Inc.* | | | 13,693 | | | | 318,225 | |
| HQ Sustainable Maritime Industries, Inc.* | | | 2,800 | | | | 11,480 | |
| Imperial Sugar Co. | | | 4,000 | | | | 47,360 | |
| J&J Snack Foods Corp. | | | 5,084 | | | | 159,434 | |
| Lancaster Colony Corp. | | | 6,802 | | | | 214,535 | |
| Lance, Inc. | | | 9,116 | | | | 188,610 | |
| Lifeway Foods, Inc.* | | | 1,200 | | | | 12,000 | |
| Omega Protein Corp.* | | | 6,200 | | | | 45,756 | |
| Pilgrim’s Pride Corp. | | | 15,900 | | | | 17,490 | |
| Ralcorp Holdings, Inc.* | | | 18,723 | | | | 1,267,173 | |
| Reddy Ice Holdings, Inc. | | | 6,615 | | | | 17,596 | |
| Sanderson Farms, Inc. | | | 6,859 | | | | 214,138 | |
| Smart Balance, Inc.* | | | 21,100 | | | | 151,076 | |
| Synutra International, Inc.* | | | 3,300 | | | | 46,200 | |
| Tootsie Roll Industries, Inc. | | | 7,989 | | | | 198,687 | |
| TreeHouse Foods, Inc.* | | | 10,520 | | | | 318,335 | |
| Zhongpin, Inc.* | | | 6,700 | | | | 57,687 | |
| | | | | | | | | |
| | | | | | | | 5,448,727 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 3.6% |
| Abaxis, Inc.* | | | 7,300 | | | | 112,201 | |
| ABIOMED, Inc.* | | | 11,511 | | | | 167,830 | |
| Accuray, Inc.* | | | 12,100 | | | | 76,472 | |
| Align Technology, Inc.* | | | 21,792 | | | | 151,019 | |
| Alphatec Holdings, Inc.* | | | 7,000 | | | | 27,510 | |
| American Medical Systems Holdings, Inc.* | | | 24,516 | | | | 265,263 | |
| Analogic Corp. | | | 4,384 | | | | 193,597 | |
| AngioDynamics, Inc.* | | | 8,600 | | | | 108,360 | |
| ArthroCare Corp.* | | | 9,007 | | | | 187,165 | |
| Atrion Corp. | | | 400 | | | | 39,584 | |
| Cantel Medical Corp.* | | | 3,200 | | | | 30,720 | |
| Cardiac Science Corp.* | | | 5,700 | | | | 53,181 | |
| Conceptus, Inc.* | | | 10,200 | | | | 165,240 | |
| CONMED Corp.* | | | 9,629 | | | | 252,280 | |
| CryoLife, Inc.* | | | 9,400 | | | | 125,960 | |
| Cyberonics, Inc.* | | | 8,039 | | | | 102,417 | |
| Cynosure, Inc., Class A* | | | 2,200 | | | | 19,272 | |
| Datascope Corp. | | | 4,608 | | | | 231,183 | |
| DexCom, Inc.* | | | 8,900 | | | | 40,228 | |
| ev3, Inc.* | | | 24,648 | | | | 159,473 | |
| Exactech, Inc.* | | | 2,600 | | | | 52,520 | |
| Greatbatch, Inc.* | | | 7,720 | | | | 167,910 | |
| Haemonetics Corp.* | | | 8,715 | | | | 514,708 | |
| Hansen Medical, Inc.* | | | 5,800 | | | | 53,998 | |
| I-Flow Corp.* | | | 7,269 | | | | 40,997 | |
| ICU Medical, Inc.* | | | 3,750 | | | | 120,113 | |
| Immucor, Inc.* | | | 23,646 | | | | 627,801 | |
| Insulet Corp.* | | | 6,200 | | | | 34,720 | |
| Integra LifeSciences Holdings Corp.* | | | 5,980 | | | | 224,489 | |
| Invacare Corp. | | | 10,849 | | | | 197,343 | |
| IRIS International, Inc.* | | | 6,600 | | | | 73,590 | |
| Kensey Nash Corp.* | | | 2,482 | | | | 63,018 | |
| Masimo Corp.* | | | 15,500 | | | | 495,845 | |
| Medical Action Industries, Inc.* | | | 4,800 | | | | 55,200 | |
| Mentor Corp. | | | 10,719 | | | | 181,151 | |
| Meridian Bioscience, Inc. | | | 13,575 | | | | 333,673 | |
| Merit Medical Systems, Inc.* | | | 9,332 | | | | 170,776 | |
| Micrus Endovascular Corp.* | | | 5,200 | | | | 61,360 | |
| Natus Medical, Inc.* | | | 9,300 | | | | 142,290 | |
| Neogen Corp.* | | | 4,900 | | | | 144,403 | |
| NuVasive, Inc.* | | | 12,000 | | | | 565,080 | |
| NxStage Medical, Inc.* | | | 6,600 | | | | 26,796 | |
| OraSure Technologies, Inc.* | | | 16,873 | | | | 77,785 | |
| Orthofix International NV* | | | 5,800 | | | | 78,590 | |
| Orthovita, Inc.* | | | 21,000 | | | | 57,540 | |
| Palomar Medical Technologies, Inc.* | | | 6,135 | | | | 70,184 | |
| Quidel Corp.* | | | 9,500 | | | | 150,195 | |
| RTI Biologics, Inc.* | | | 18,700 | | | | 57,035 | |
| Sirona Dental Systems, Inc.* | | | 5,300 | | | | 84,641 | |
| Somanetics Corp.* | | | 3,600 | | | | 67,500 | |
| SonoSite, Inc.* | | | 5,690 | | | | 119,888 | |
| Spectranetics Corp.* | | | 10,700 | | | | 32,100 | |
| Stereotaxis, Inc.* | | | 8,300 | | | | 33,449 | |
| STERIS Corp. | | | 19,790 | | | | 673,652 | |
| SurModics, Inc.* | | | 5,158 | | | | 136,687 | |
| Symmetry Medical, Inc.* | | | 12,600 | | | | 162,792 | |
| Synovis Life Technologies, Inc.* | | | 4,200 | | | | 73,458 | |
| Thoratec Corp.* | | | 18,367 | | | | 452,196 | |
128 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Health Care Equipment & Supplies (continued) |
| | | | | | | | | |
| TomoTherapy, Inc.* | | | 14,700 | | | $ | 47,775 | |
| TranS1, Inc.* | | | 4,300 | | | | 27,348 | |
| Vision-Sciences, Inc.* | | | 4,500 | | | | 14,175 | |
| VNUS Medical Technologies, Inc.* | | | 4,400 | | | | 67,892 | |
| Volcano Corp.* | | | 16,000 | | | | 248,800 | |
| West Pharmaceutical Services, Inc. | | | 10,892 | | | | 434,809 | |
| Wright Medical Group, Inc.* | | | 12,552 | | | | 290,955 | |
| Zoll Medical Corp.* | | | 7,012 | | | | 168,849 | |
| | | | | | | | | |
| | | | | | | | 10,485,031 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 3.2% |
| Air Methods Corp.* | | | 3,600 | | | | 60,408 | |
| Alliance Imaging, Inc.* | | | 9,200 | | | | 74,980 | |
| Almost Family, Inc.* | | | 2,000 | | | | 96,320 | |
| Amedisys, Inc.* | | | 8,955 | | | | 505,152 | |
| AMERIGROUP Corp.* | | | 18,000 | | | | 450,000 | |
| AMN Healthcare Services, Inc.* | | | 11,966 | | | | 107,574 | |
| Amsurg Corp.* | | | 11,078 | | | | 276,285 | |
| Assisted Living Concepts, Inc., Class A* | | | 18,600 | | | | 92,442 | |
| athenahealth, Inc.* | | | 7,000 | | | | 214,200 | |
| Bio-Reference Labs, Inc.* | | | 3,900 | | | | 95,901 | |
| BMP Sunstone Corp.* | | | 7,300 | | | | 49,202 | |
| Capital Senior Living Corp.* | | | 6,000 | | | | 26,940 | |
| CardioNet, Inc.* | | | 1,700 | | | | 43,503 | |
| Catalyst Health Solutions, Inc.* | | | 11,153 | | | | 188,151 | |
| Centene Corp.* | | | 14,634 | | | | 275,705 | |
| Chemed Corp. | | | 7,745 | | | | 339,154 | |
| Chindex International, Inc.* | | | 3,700 | | | | 31,006 | |
| CorVel Corp.* | | | 2,550 | | | | 68,391 | |
| Cross Country Healthcare, Inc.* | | | 10,885 | | | | 123,218 | |
| Emergency Medical Services Corp., Class A* | | | 2,900 | | | | 95,294 | |
| Emeritus Corp.* | | | 6,300 | | | | 72,639 | |
| Ensign Group, Inc. (The) | | | 3,100 | | | | 50,809 | |
| Five Star Quality Care, Inc.* | | | 11,100 | | | | 21,756 | |
| Genoptix, Inc.* | | | 2,800 | | | | 93,632 | |
| Gentiva Health Services, Inc.* | | | 8,549 | | | | 232,105 | |
| Hanger Orthopedic Group, Inc.* | | | 9,800 | | | | 163,268 | |
| HealthSouth Corp.* | | | 29,700 | | | | 372,438 | |
| HealthSpring, Inc.* | | | 16,700 | | | | 275,884 | |
| Healthways, Inc.* | | | 11,846 | | | | 119,645 | |
| HMS Holdings Corp.* | | | 8,400 | | | | 208,068 | |
| inVentiv Health, Inc.* | | | 11,100 | | | | 105,117 | |
| IPC The Hospitalist Co., Inc.* | | | 2,200 | | | | 44,792 | |
| Kindred Healthcare, Inc.* | | | 9,421 | | | | 136,510 | |
| Landauer, Inc. | | | 3,137 | | | | 169,586 | |
| LHC Group, Inc.* | | | 4,700 | | | | 165,816 | |
| Magellan Health Services, Inc.* | | | 13,660 | | | | 504,600 | |
| MedCath Corp.* | | | 5,675 | | | | 87,509 | |
| Molina Healthcare, Inc.* | | | 5,134 | | | | 114,334 | |
| MWI Veterinary Supply, Inc.* | | | 3,500 | | | | 121,205 | |
| National HealthCare Corp. | | | 2,600 | | | | 106,626 | |
| National Research Corp. | | | 400 | | | | 11,452 | |
| NightHawk Radiology Holdings, Inc.* | | | 8,400 | | | | 38,556 | |
| Odyssey HealthCare, Inc.* | | | 11,023 | | | | 105,711 | |
| Owens & Minor, Inc. | | | 13,892 | | | | 601,107 | |
| PharMerica Corp.* | | | 10,309 | | | | 211,644 | |
| Providence Service Corp. (The)* | | | 4,075 | | | | 4,890 | |
| PSS World Medical, Inc.* | | | 20,891 | | | | 378,963 | |
| Psychiatric Solutions, Inc.* | | | 18,744 | | | | 623,988 | |
| RadNet, Inc.* | | | 7,900 | | | | 27,176 | |
| RehabCare Group, Inc.* | | | 6,060 | | | | 103,808 | |
| Res-Care, Inc.* | | | 8,345 | | | | 128,596 | |
| Skilled Healthcare Group, Inc., Class A* | | | 5,500 | | | | 67,540 | |
| Sun Healthcare Group, Inc.* | | | 14,500 | | | | 166,460 | |
| Sunrise Senior Living, Inc.* | | | 15,773 | | | | 47,634 | |
| Triple-S Management Corp., Class B* | | | 5,200 | | | | 53,092 | |
| U.S. Physical Therapy, Inc.* | | | 4,000 | | | | 55,520 | |
| Universal American Corp.* | | | 12,890 | | | | 114,076 | |
| Virtual Radiologic Corp.* | | | 2,700 | | | | 23,490 | |
| | | | | | | | | |
| | | | | | | | 9,143,868 | |
| | | | | | | | | |
| |
| |
Health Care Technology 0.3% |
| Allscripts Healthcare Solutions, Inc. | | | 19,294 | | | | 125,411 | |
| Computer Programs & Systems, Inc. | | | 2,760 | | | | 76,424 | |
| Eclipsys Corp.* | | | 18,337 | | | | 272,305 | |
| MedAssets, Inc.* | | | 5,600 | | | | 80,808 | |
| Omnicell, Inc.* | | | 10,500 | | | | 115,290 | |
| Phase Forward, Inc.* | | | 15,000 | | | | 214,050 | |
| Vital Images, Inc.* | | | 5,765 | | | | 75,233 | |
| | | | | | | | | |
| | | | | | | | 959,521 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 2.1% |
| AFC Enterprises* | | | 8,475 | | | | 41,188 | |
| Ambassadors Group, Inc. | | | 6,800 | | | | 70,992 | |
| Ameristar Casinos, Inc. | | | 8,592 | | | | 79,132 | |
| Bally Technologies, Inc.* | | | 18,457 | | | | 408,823 | |
| BJ’s Restaurants, Inc.* | | | 5,900 | | | | 52,451 | |
| Bluegreen Corp.* | | | 4,100 | | | | 19,885 | |
| Bob Evans Farms, Inc. | | | 10,459 | | | | 218,384 | |
| Buffalo Wild Wings, Inc.* | | | 5,630 | | | | 159,216 | |
| California Pizza Kitchen, Inc.* | | | 6,120 | | | | 59,792 | |
| CBRL Group, Inc. | | | 6,900 | | | | 137,448 | |
| CEC Entertainment, Inc.* | | | 6,748 | | | | 173,289 | |
| Cheesecake Factory (The)* | | | 19,000 | | | | 167,200 | |
| Churchill Downs, Inc.* | | | 3,000 | | | | 113,940 | |
2008 Annual Report 129
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Hotels, Restaurants & Leisure (continued) |
| | | | | | | | | |
| CKE Restaurants, Inc. | | | 17,697 | | | $ | 150,248 | |
| Denny’s Corp.* | | | 34,200 | | | | 61,218 | |
| DineEquity, Inc. | | | 5,360 | | | | 96,641 | |
| Domino’s Pizza, Inc.* | | | 12,660 | | | | 75,327 | |
| Dover Downs Gaming & Entertainment, Inc. | | | 4,443 | | | | 22,748 | |
| Dover Motorsports, Inc. | | | 6,000 | | | | 12,840 | |
| Einstein Noah Restaurant Group, Inc.* | | | 1,800 | | | | 14,436 | |
| Gaylord Entertainment Co.* | | | 13,736 | | | | 294,088 | |
| Great Wolf Resorts, Inc.* | | | 9,900 | | | | 18,711 | |
| Isle of Capri Casinos, Inc.* | | | 5,351 | | | | 27,237 | |
| Jack in the Box, Inc.* | | | 19,840 | | | | 398,784 | |
| Krispy Kreme Doughnuts, Inc.* | | | 20,263 | | | | 55,926 | |
| Landry’s Restaurants, Inc. | | | 4,014 | | | | 50,376 | |
| Life Time Fitness, Inc.* | | | 11,700 | | | | 222,768 | |
| Lodgian, Inc.* | | | 4,820 | | | | 24,582 | |
| Luby’s, Inc.* | | | 7,900 | | | | 38,236 | |
| Marcus Corp. | | | 6,034 | | | | 84,657 | |
| Monarch Casino & Resort, Inc.* | | | 3,030 | | | | 26,997 | |
| Morgans Hotel Group Co.* | | | 9,100 | | | | 43,316 | |
| O’Charleys, Inc. | | | 7,025 | | | | 52,687 | |
| P.F. Chang’s China Bistro, Inc.* | | | 7,585 | | | | 155,189 | |
| Papa John’s International, Inc.* | | | 7,424 | | | | 167,485 | |
| Peet’s Coffee & Tea, Inc.* | | | 4,682 | | | | 105,158 | |
| Pinnacle Entertainment, Inc.* | | | 20,196 | | | | 113,098 | |
| Red Robin Gourmet Burgers, Inc.* | | | 5,659 | | | | 85,960 | |
| Rick’s Cabaret International, Inc.* | | | 2,200 | | | | 13,904 | |
| Riviera Holdings Corp.* | | | 2,700 | | | | 11,583 | |
| Ruby Tuesday, Inc. | | | 16,760 | | | | 40,392 | |
| Ruth’s Hospitality Group, Inc.* | | | 7,700 | | | | 17,633 | |
| Shuffle Master, Inc.* | | | 17,865 | | | | 68,959 | |
| Six Flags, Inc.* | | | 28,400 | | | | 8,804 | |
| Sonic Corp.* | | | 20,210 | | | | 216,247 | |
| Speedway Motorsports, Inc. | | | 3,945 | | | | 62,923 | |
| Steak N Shake Co. (The)* | | | 9,672 | | | | 49,811 | |
| Texas Roadhouse, Inc., Class A* | | | 17,675 | | | | 124,078 | |
| Town Sports International Holdings, Inc.* | | | 4,900 | | | | 12,201 | |
| Vail Resorts, Inc.* | | | 10,508 | | | | 349,496 | |
| Wendy’s/Arby’s Group, Inc., Class A | | | 136,644 | | | | 494,651 | |
| WMS Industries, Inc.* | | | 14,777 | | | | 369,425 | |
| | | | | | | | | |
| | | | | | | | 5,940,560 | |
| | | | | | | | | |
| |
| |
Household Durables 1.0% |
| American Greetings Corp., Class A | | | 16,200 | | | | 189,216 | |
| Beazer Homes U.S.A, Inc.* | | | 13,200 | | | | 41,844 | |
| Blyth, Inc. | | | 8,220 | | | | 70,692 | |
| Brookfield Homes Corp. | | | 3,447 | | | | 31,575 | |
| Cavco Industries, Inc.* | | | 2,400 | | | | 81,672 | |
| Champion Enterprises, Inc.* | | | 26,184 | | | | 48,964 | |
| CSS Industries, Inc. | | | 2,505 | | | | 55,611 | |
| Ethan Allen Interiors, Inc. | | | 8,300 | | | | 148,487 | |
| Furniture Brands International, Inc. | | | 13,535 | | | | 77,014 | |
| Helen of Troy Ltd.* | | | 10,200 | | | | 183,498 | |
| Hooker Furniture Corp. | | | 3,075 | | | | 28,013 | |
| Hovnanian Enterprises, Inc., Class A* | | | 15,600 | | | | 66,924 | |
| iRobot Corp.* | | | 6,100 | | | | 62,952 | |
La-Z-Boy, Inc. | | | 16,100 | | | | 93,058 | |
| Libbey, Inc. | | | 4,900 | | | | 17,934 | |
| M/I Homes, Inc. | | | 4,692 | | | | 63,858 | |
| Meritage Homes Corp.* | | | 10,400 | | | | 142,792 | |
| National Presto Industries, Inc. | | | 1,581 | | | | 104,741 | |
| Palm Harbor Homes, Inc.* | | | 3,841 | | | | 33,033 | |
| Russ Berrie & Co., Inc.* | | | 4,157 | | | | 11,224 | |
| Ryland Group, Inc. | | | 14,300 | | | | 268,697 | |
| Sealy Corp. | | | 13,500 | | | | 43,605 | |
| Skyline Corp. | | | 2,318 | | | | 50,115 | |
| Standard Pacific Corp.* | | | 41,800 | | | | 119,130 | |
| Tempur-Pedic International, Inc. | | | 25,200 | | | | 196,812 | |
| Tupperware Brands Corp. | | | 20,938 | | | | 529,732 | |
| Universal Electronics, Inc.* | | | 5,056 | | | | 106,833 | |
| | | | | | | | | |
| | | | | | | | 2,868,026 | |
| | | | | | | | | |
| |
| |
Household Products 0.1% |
| Central Garden & Pet Co., Class A* | | | 23,012 | | | | 73,178 | |
| Spectrum Brands, Inc.* | | | 15,900 | | | | 11,607 | |
| WD-40 Co. | | | 5,827 | | | | 169,566 | |
| | | | | | | | | |
| | | | | | | | 254,351 | |
| | | | | | | | | |
| |
| |
Independent Power Producers & Energy Traders 0.1% |
| Ormat Technologies, Inc. | | | 5,830 | | | | 140,853 | |
| Synthesis Energy Systems, Inc.* | | | 8,700 | | | | 19,140 | |
| U.S. Geothermal, Inc.* | | | 18,900 | | | | 15,874 | |
| | | | | | | | | |
| | | | | | | | 175,867 | |
| | | | | | | | | |
| |
| |
Industrial Conglomerates 0.3% |
| Otter Tail Corp. | | | 11,340 | | | | 266,263 | |
| Raven Industries, Inc. | | | 5,680 | | | | 182,839 | |
| Seaboard Corp. | | | 106 | | | | 142,040 | |
| Standex International Corp. | | | 3,954 | | | | 102,053 | |
| Tredegar Corp. | | | 8,506 | | | | 125,208 | |
| United Capital Corp.* | | | 400 | | | | 8,900 | |
| | | | | | | | | |
| | | | | | | | 827,303 | |
| | | | | | | | | |
| |
| |
Information Technology Services 1.8% |
| Acxiom Corp. | | | 21,500 | | | | 168,990 | |
130 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Information Technology Services (continued) |
| | | | | | | | | |
| BearingPoint, Inc.* | | | 78,715 | | | $ | 17,317 | |
| CACI International, Inc., Class A* | | | 10,200 | | | | 420,036 | |
| Cass Information Systems, Inc. | | | 1,970 | | | | 68,458 | |
| China Information Security Technology, Inc.* | | | 6,600 | | | | 26,202 | |
| CIBER, Inc.* | | | 19,054 | | | | 102,892 | |
| CSG Systems International, Inc.* | | | 11,687 | | | | 194,355 | |
| CyberSource Corp.* | | | 23,246 | | | | 282,439 | |
| Euronet Worldwide, Inc.* | | | 15,908 | | | | 189,623 | |
| ExlService Holdings, Inc.* | | | 4,900 | | | | 35,770 | |
| Forrester Research, Inc.* | | | 5,481 | | | | 153,742 | |
| Gartner, Inc.* | | | 19,926 | | | | 366,638 | |
| Gevity HR, Inc. | | | 7,853 | | | | 26,779 | |
| Global Cash Access Holdings, Inc.* | | | 11,800 | | | | 33,276 | |
| Hackett Group, Inc. (The)* | | | 14,800 | | | | 44,104 | |
| Heartland Payment Systems, Inc. | | | 7,800 | | | | 135,798 | |
| iGate Corp.* | | | 7,900 | | | | 53,641 | |
| infoGROUP, Inc. | | | 10,400 | | | | 46,384 | |
| Integral Systems, Inc.* | | | 5,302 | | | | 130,270 | |
| Mantech International Corp., Class A* | | | 6,896 | | | | 371,970 | |
| Mastech Holdings, Inc.* | | | 526 | | | | 815 | |
| MAXIMUS, Inc. | | | 6,322 | | | | 201,925 | |
| NCI, Inc., Class A* | | | 2,200 | | | | 52,360 | |
| Ness Technologies, Inc.* | | | 13,875 | | | | 102,536 | |
| Online Resources Corp.* | | | 10,400 | | | | 36,400 | |
| Perot Systems Corp., Class A* | | | 28,948 | | | | 416,562 | |
| RightNow Technologies, Inc.* | | | 9,900 | | | | 65,142 | |
| Safeguard Scientifics, Inc.* | | | 33,700 | | | | 26,623 | |
| Sapient Corp.* | | | 29,662 | | | | 162,844 | |
| SI International, Inc.* | | | 4,228 | | | | 121,766 | |
| SRA International, Inc., Class A* | | | 14,300 | | | | 264,264 | |
| Syntel, Inc. | | | 3,940 | | | | 97,988 | |
| TeleTech Holdings, Inc.* | | | 13,811 | | | | 124,852 | |
| TNS, Inc.* | | | 8,700 | | | | 123,366 | |
| VeriFone Holdings, Inc.* | | | 23,000 | | | | 261,280 | |
| Virtusa Corp.* | | | 3,500 | | | | 19,285 | |
| Wright Express Corp.* | | | 13,475 | | | | 184,473 | |
| | | | | | | | | |
| | | | | | | | 5,131,165 | |
| | | | | | | | | |
| |
| |
Insurance 3.7% |
| AMBAC Financial Group, Inc. | | | 96,100 | | | | 257,548 | |
| AmCOMP, Inc.* | | | 4,800 | | | | 58,272 | |
| American Equity Investment Life Holding Co. | | | 19,385 | | | | 87,620 | |
| American Physicians Capital, Inc. | | | 2,875 | | | | 117,616 | |
| American Safety Insurance Holdings Ltd.* | | | 4,000 | | | | 41,400 | |
| Amerisafe, Inc.* | | | 6,400 | | | | 110,336 | |
| Amtrust Financial Services, Inc. | | | 5,800 | | | | 56,956 | |
| Argo Group International Holdings Ltd.* | | | 10,462 | | | | 333,738 | |
| Aspen Insurance Holdings Ltd. | | | 29,400 | | | | 675,024 | |
| Assured Guaranty Ltd. | | | 18,800 | | | | 211,124 | |
| Baldwin & Lyons, Inc., Class B | | | 2,281 | | | | 41,491 | |
| CastlePoint Holdings Ltd. | | | 11,400 | | | | 102,828 | |
| Citizens, Inc.* | | | 13,400 | | | | 113,766 | |
| CNA Surety Corp.* | | | 4,800 | | | | 66,480 | |
| Crawford & Co., Class B* | | | 8,120 | | | | 117,740 | |
| Delphi Financial Group, Inc., Class A | | | 14,559 | | | | 229,304 | |
| Donegal Group, Inc., Class A | | | 3,188 | | | | 52,219 | |
| eHealth, Inc.* | | | 8,900 | | | | 113,208 | |
| EMC Insurance Group, Inc. | | | 2,170 | | | | 53,078 | |
| Employers Holdings, Inc. | | | 17,460 | | | | 222,790 | |
| Enstar Group Ltd.* | | | 1,800 | | | | 137,070 | |
| FBL Financial Group, Inc., Class A | | | 3,847 | | | | 67,169 | |
| First Acceptance Corp.* | | | 2,900 | | | | 8,845 | |
| First Mercury Financial Corp.* | | | 5,300 | | | | 57,187 | |
| Flagstone Reinsurance Holdings Ltd. | | | 9,200 | | | | 97,428 | |
| FPIC Insurance Group, Inc.* | | | 2,750 | | | | 123,090 | |
| Greenlight Capital Re Ltd., Class A* | | | 10,200 | | | | 127,704 | |
| Hallmark Financial Services* | | | 700 | | | | 4,550 | |
| Harleysville Group, Inc. | | | 4,658 | | | | 147,100 | |
| Hilltop Holdings, Inc.* | | | 14,262 | | | | 134,063 | |
| Horace Mann Educators Corp. | | | 14,459 | | | | 115,094 | |
| Independence Holding Co. | | | 1,120 | | | | 7,314 | |
| Infinity Property & Casualty Corp. | | | 4,785 | | | | 190,539 | |
| IPC Holdings Ltd. | | | 16,900 | | | | 466,609 | |
| Kansas City Life Insurance Co. | | | 1,300 | | | | 62,075 | |
| LandAmerica Financial Group, Inc. | | | 5,223 | | | | 51,446 | |
| Maiden Holdings Ltd. | | | 15,000 | | | | 67,800 | |
| Max Capital Group Ltd. | | | 19,000 | | | | 303,050 | |
| Meadowbrook Insurance Group, Inc. | | | 18,735 | | | | 98,733 | |
| Montpelier Re Holdings Ltd. | | | 31,500 | | | | 450,765 | |
| National Financial Partners Corp. | | | 13,101 | | | | 87,253 | |
| National Interstate Corp. | | | 2,300 | | | | 40,250 | |
| National Western Life Insurance Co., Class A | | | 699 | | | | 131,957 | |
| Navigators Group, Inc.* | | | 4,692 | | | | 236,993 | |
| NYMAGIC, Inc. | | | 1,900 | | | | 33,155 | |
| Odyssey Re Holdings Corp. | | | 8,060 | | | | 317,886 | |
2008 Annual Report 131
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Insurance (continued) |
| | | | | | | | | |
| Phoenix Cos., Inc. (The) | | | 39,676 | | | $ | 256,704 | |
| Platinum Underwriters Holdings Ltd. | | | 16,000 | | | | 507,840 | |
| PMA Capital Corp., Class A* | | | 11,423 | | | | 52,774 | |
| Presidential Life Corp. | | | 7,581 | | | | 71,110 | |
| ProAssurance Corp.* | | | 10,817 | | | | 594,394 | |
| RLI Corp. | | | 6,314 | | | | 362,360 | |
| Safety Insurance Group, Inc. | | | 5,805 | | | | 220,532 | |
| SeaBright Insurance Holdings, Inc.* | | | 7,700 | | | | 80,542 | |
| Selective Insurance Group | | | 18,468 | | | | 438,615 | |
| State Auto Financial Corp. | | | 4,200 | | | | 110,628 | |
| Stewart Information Services Corp. | | | 5,802 | | | | 96,313 | |
| Tower Group, Inc. | | | 6,400 | | | | 134,592 | |
| United America Indemnity Ltd., Class A* | | | 6,600 | | | | 79,068 | |
| United Fire & Casualty Co. | | | 8,017 | | | | 185,754 | |
| Validus Holdings Ltd. | | | 22,400 | | | | 397,376 | |
| Zenith National Insurance Corp.(a) | | | 12,552 | | | | 412,459 | |
| | | | | | | | | |
| | | | | | | | 10,628,724 | |
| | | | | | | | | |
| |
| |
Internet & Catalog Retail 0.4% |
1-800-FLOWERS.COM, Inc., Class A* | | | 8,846 | | | | 47,326 | |
| Blue Nile, Inc.* | | | 4,503 | | | | 137,702 | |
| Drugstore.com, Inc.* | | | 29,300 | | | | 52,154 | |
| Gaiam, Inc., Class A* | | | 6,100 | | | | 50,020 | |
| Netflix, Inc.* | | | 13,580 | | | | 336,241 | |
| NutriSystem, Inc.* | | | 10,300 | | | | 145,745 | |
| Orbitz Worldwide, Inc.* | | | 10,800 | | | | 36,396 | |
| Overstock.com, Inc.* | | | 5,500 | | | | 68,255 | |
| PetMed Express, Inc.* | | | 7,500 | | | | 132,450 | |
| Shutterfly, Inc.* | | | 6,600 | | | | 50,358 | |
| Stamps.com, Inc.* | | | 4,916 | | | | 47,980 | |
| | | | | | | | | |
| | | | | | | | 1,104,627 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 1.8% |
| Ariba, Inc.* | | | 28,875 | | | | 308,962 | |
| Art Technology Group, Inc.* | | | 45,500 | | | | 88,725 | |
| AsiaInfo Holdings, Inc.* | | | 12,300 | | | | 135,177 | |
| Bankrate, Inc.* | | | 4,255 | | | | 140,032 | |
| Bidz.com, Inc.* | | | 2,000 | | | | 13,500 | |
| Chordiant Software, Inc.* | | | 10,940 | | | | 36,321 | |
| comScore, Inc.* | | | 6,400 | | | | 78,080 | |
| Constant Contact, Inc.* | | | 6,900 | | | | 82,869 | |
| DealerTrack Holdings, Inc.* | | | 14,400 | | | | 154,512 | |
| Dice Holdings, Inc.* | | | 4,000 | | | | 16,240 | |
| Digital River, Inc.* | | | 12,088 | | | | 299,541 | |
| DivX, Inc.* | | | 9,700 | | | | 67,706 | |
| EarthLink, Inc.* | | | 36,985 | | | | 255,196 | |
| GSI Commerce, Inc.* | | | 7,923 | | | | 82,003 | |
| HSW International, Inc.* | | | 7,700 | | | | 7,084 | |
| Infospace, Inc.* | | | 12,209 | | | | 104,631 | |
| Internap Network Services Corp.* | | | 17,050 | | | | 48,763 | |
| Internet Brands, Inc., Class A* | | | 7,900 | | | | 51,271 | |
| Internet Capital Group, Inc.* | | | 13,800 | | | | 78,936 | |
| Interwoven, Inc.* | | | 15,361 | | | | 193,702 | |
| j2 Global Communications, Inc.* | | | 15,480 | | | | 249,538 | |
| Keynote Systems, Inc.* | | | 5,100 | | | | 49,980 | |
| Knot, Inc. (The)* | | | 10,100 | | | | 69,690 | |
| Limelight Networks, Inc.* | | | 8,800 | | | | 20,944 | |
| Liquidity Services, Inc.* | | | 5,335 | | | | 44,814 | |
| LoopNet, Inc.* | | | 9,100 | | | | 68,887 | |
| Marchex, Inc., Class B | | | 8,000 | | | | 61,440 | |
| MercadoLibre, Inc.* | | | 8,600 | | | | 117,562 | |
| ModusLink Global Solutions, Inc.* | | | 17,224 | | | | 95,765 | |
| Move, Inc.* | | | 45,739 | | | | 76,842 | |
| NIC, Inc. | | | 12,000 | | | | 64,440 | |
| Omniture, Inc.* | | | 21,091 | | | | 242,547 | |
| Perficient, Inc.* | | | 11,500 | | | | 63,135 | |
| Rackspace Hosting, Inc.* | | | 4,600 | | | | 26,174 | |
| RealNetworks, Inc.* | | | 31,928 | | | | 136,652 | |
| S1 Corp.* | | | 16,378 | | | | 102,690 | |
| SAVVIS, Inc.* | | | 12,630 | | | | 108,618 | |
| SonicWALL, Inc.* | | | 19,051 | | | | 85,348 | |
| SupportSoft, Inc.* | | | 17,000 | | | | 42,500 | |
| Switch & Data Facilities Co., Inc.* | | | 7,300 | | | | 68,766 | |
| TechTarget, Inc.* | | | 4,100 | | | | 20,049 | |
| Terremark Worldwide, Inc.* | | | 16,590 | | | | 74,821 | |
| TheStreet.com, Inc. | | | 6,900 | | | | 27,186 | |
| United Online, Inc. | | | 26,063 | | | | 192,866 | |
| ValueClick, Inc.* | | | 29,234 | | | | 216,332 | |
| Vignette Corp.* | | | 8,331 | | | | 67,648 | |
| VistaPrint Ltd.* | | | 14,900 | | | | 254,343 | |
| Vocus, Inc.* | | | 5,400 | | | | 90,882 | |
| Web.com Group, Inc.* | | | 9,500 | | | | 46,645 | |
| Websense, Inc.* | | | 15,250 | | | | 297,680 | |
| | | | | | | | | |
| | | | | | | | 5,328,035 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 0.5% |
| Brunswick Corp. | | | 29,600 | | | | 102,712 | |
| Callaway Golf Co. | | | 22,369 | | | | 233,980 | |
| JAKKS Pacific, Inc.* | | | 9,237 | | | | 206,632 | |
| Leapfrog Enterprises, Inc.* | | | 11,140 | | | | 75,195 | |
| Marine Products Corp. | | | 2,126 | | | | 13,160 | |
| Nautilus, Inc.* | | | 9,430 | | | | 23,009 | |
| Polaris Industries, Inc. | | | 11,100 | | | | 373,737 | |
| Pool Corp. | | | 16,500 | | | | 287,265 | |
| RC2 Corp.* | | | 6,165 | | | | 78,295 | |
132 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Leisure Equipment & Products (continued) |
| | | | | | | | | |
| Smith & Wesson Holding Corp.* | | | 13,600 | | | $ | 31,280 | |
| Steinway Musical Instruments* | | | 2,300 | | | | 51,198 | |
| | | | | | | | | |
| | | | | | | | 1,476,463 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 1.2% |
| Accelrys, Inc.* | | | 9,600 | | | | 45,984 | |
| Affymetrix, Inc.* | | | 23,400 | | | | 86,346 | |
| Albany Molecular Research, Inc.* | | | 7,885 | | | | 99,745 | |
| AMAG Pharmaceuticals, Inc.*(a) | | | 5,760 | | | | 176,141 | |
| Bio-Rad Laboratories, Inc., Class A* | | | 6,415 | | | | 547,713 | |
| Bruker Corp.* | | | 16,713 | | | | 68,356 | |
| Caliper Life Sciences* | | | 17,200 | | | | 24,080 | |
| Cambrex Corp.* | | | 8,224 | | | | 37,008 | |
| Clinical Data, Inc.* | | | 3,000 | | | | 33,000 | |
| Dionex Corp.* | | | 6,145 | | | | 330,785 | |
| Enzo Biochem, Inc.* | | | 11,364 | | | | 65,570 | |
| eResearchTechnology, Inc.* | | | 14,589 | | | | 94,245 | |
| Exelixis, Inc.* | | | 35,440 | | | | 121,914 | |
| Kendle International, Inc.* | | | 4,400 | | | | 79,508 | |
| Life Sciences Research, Inc.* | | | 3,000 | | | | 55,320 | |
| Luminex Corp.* | | | 13,860 | | | | 258,489 | |
| Medivation, Inc.* | | | 8,600 | | | | 161,422 | |
| Nektar Therapeutics* | | | 31,195 | | | | 172,508 | |
| PAREXEL International Corp.* | | | 19,102 | | | | 198,661 | |
| PharmaNet Development Group, Inc.* | | | 6,525 | | | | 10,440 | |
| Sequenom, Inc.* | | | 19,100 | | | | 343,800 | |
| Varian, Inc.* | | | 9,969 | | | | 367,358 | |
| | | | | | | | | |
| | | | | | | | 3,378,393 | |
| | | | | | | | | |
| |
| |
Machinery 3.0% |
| 3D Systems Corp.* | | | 5,300 | | | | 57,611 | |
| Accuride Corp.* | | | 12,278 | | | | 3,929 | |
| Actuant Corp., Class A* | | | 18,760 | | | | 336,367 | |
| Alamo Group, Inc. | | | 2,300 | | | | 28,934 | |
| Albany International Corp., Class A | | | 9,967 | | | | 145,120 | |
| Altra Holdings, Inc.* | | | 8,900 | | | | 79,566 | |
| American Railcar Industries, Inc. | | | 2,700 | | | | 30,024 | |
| Ampco-Pittsburgh Corp. | | | 2,800 | | | | 66,192 | |
| Applied Industrial Technologies, Inc. | | | 14,812 | | | | 299,054 | |
| Astec Industries, Inc.* | | | 6,059 | | | | 154,020 | |
| Badger Meter, Inc. | | | 4,900 | | | | 123,480 | |
| Barnes Group, Inc. | | | 16,114 | | | | 233,814 | |
| Blount International, Inc.* | | | 12,100 | | | | 105,149 | |
| Briggs & Stratton Corp. | | | 15,980 | | | | 251,845 | |
| Cascade Corp. | | | 2,946 | | | | 97,247 | |
| Chart Industries, Inc.* | | | 9,600 | | | | 130,752 | |
| China Fire & Security Group, Inc.* | | | 4,000 | | | | 34,400 | |
| CIRCOR International, Inc. | | | 5,685 | | | | 174,245 | |
| Clarcor, Inc. | | | 16,994 | | | | 601,418 | |
| Colfax Corp.* | | | 7,100 | | | | 60,492 | |
| Columbus McKinnon Corp.* | | | 6,100 | | | | 85,644 | |
| Commercial Vehicle Group, Inc.* | | | 7,800 | | | | 10,374 | |
| Dynamic Materials Corp. | | | 4,230 | | | | 80,370 | |
| Energy Recovery, Inc.* | | | 3,800 | | | | 22,040 | |
| EnPro Industries, Inc.* | | | 6,800 | | | | 151,028 | |
| ESCO Technologies, Inc.* | | | 8,753 | | | | 301,978 | |
| Federal Signal Corp. | | | 16,243 | | | | 138,228 | |
| Flanders Corp.* | | | 4,500 | | | | 27,900 | |
| Flow International Corp.* | | | 12,700 | | | | 48,768 | |
| Force Protection, Inc.* | | | 21,600 | | | | 60,264 | |
| FreightCar America, Inc. | | | 3,630 | | | | 94,779 | |
| Gorman-Rupp Co. (The) | | | 4,597 | | | | 144,576 | |
| Graham Corp. | | | 3,400 | | | | 71,400 | |
| Greenbrier Cos., Inc. | | | 5,190 | | | | 42,818 | |
| Hurco Cos., Inc.* | | | 2,200 | | | | 49,500 | |
| K-Tron International, Inc.* | | | 900 | | | | 84,591 | |
| Kadant, Inc.* | | | 5,003 | | | | 82,249 | |
| Kaydon Corp. | | | 9,348 | | | | 312,317 | |
| Key Technology, Inc.* | | | 2,100 | | | | 33,999 | |
| LB Foster Co., Class A* | | | 3,700 | | | | 101,750 | |
| Lindsay Corp. | | | 4,028 | | | | 191,652 | |
| Lydall, Inc.* | | | 5,600 | | | | 37,240 | |
| Met-Pro Corp. | | | 5,500 | | | | 64,240 | |
| Middleby Corp.* | | | 5,970 | | | | 241,128 | |
| Mueller Industries, Inc. | | | 13,025 | | | | 297,882 | |
| Mueller Water Products, Inc., Class A | | | 37,670 | | | | 263,690 | |
| NACCO Industries, Inc., Class A | | | 1,922 | | | | 118,414 | |
| NN, Inc. | | | 5,300 | | | | 38,213 | |
| Nordson Corp. | | | 11,397 | | | | 420,891 | |
| Omega Flex, Inc. | | | 800 | | | | 17,112 | |
| PMFG, Inc.* | | | 4,600 | | | | 49,956 | |
| RBC Bearings, Inc.* | | | 7,700 | | | | 182,721 | |
| Robbins & Myers, Inc. | | | 9,446 | | | | 192,698 | |
| Sauer-Danfoss, Inc. | | | 3,238 | | | | 33,190 | |
| Sun Hydraulics Corp. | | | 4,150 | | | | 86,901 | |
| Tecumseh Products Co., Class A* | | | 5,501 | | | | 101,879 | |
| Tennant Co. | | | 5,524 | | | | 138,597 | |
| Thermadyne Holdings Corp.* | | | 4,800 | | | | 43,248 | |
| Titan International, Inc. | | | 11,550 | | | | 133,518 | |
| Titan Machinery, Inc.* | | | 2,500 | | | | 30,950 | |
| Trimas Corp.* | | | 3,500 | | | | 13,825 | |
| TurboChef Technologies, Inc.* | | | 8,700 | | | | 43,761 | |
| Twin Disc, Inc. | | | 2,800 | | | | 21,700 | |
| Wabash National Corp. | | | 11,040 | | | | 67,123 | |
| Wabtec Corp. | | | 16,378 | | | | 651,189 | |
2008 Annual Report 133
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Machinery (continued) |
| | | | | | | | | |
| Watts Water Technologies, Inc., Class A | | | 9,830 | | | $ | 259,807 | |
| Xerium Technologies, Inc. | | | 7,000 | | | | 27,230 | |
| | | | | | | | | |
| | | | | | | | 8,726,987 | |
| | | | | | | | | |
| |
| |
Marine 0.2% |
| American Commercial Lines, Inc.* | | | 12,700 | | | | 94,361 | |
| Eagle Bulk Shipping, Inc. | | | 15,800 | | | | 157,526 | |
| Genco Shipping & Trading Ltd. | | | 8,200 | | | | 170,970 | |
| Horizon Lines, Inc., Class A | | | 10,600 | | | | 49,714 | |
| International Shipholding Corp. | | | 2,200 | | | | 54,098 | |
| TBS International Ltd., Class A* | | | 3,500 | | | | 29,960 | |
| Ultrapetrol Bahamas Ltd.* | | | 7,600 | | | | 31,464 | |
| | | | | | | | | |
| | | | | | | | 588,093 | |
| | | | | | | | | |
| |
| |
Media 1.1% |
| AH Belo Corp., Class A | | | 7,800 | | | | 25,818 | |
| Arbitron, Inc. | | | 9,153 | | | | 298,205 | |
| Belo Corp., Class A | | | 31,500 | | | | 67,095 | |
| Charter Communications, Inc., Class A* | | | 144,620 | | | | 63,633 | |
| Cinemark Holdings, Inc. | | | 9,100 | | | | 75,439 | |
| Citadel Broadcasting Co.* | | | 56,760 | | | | 17,028 | |
| CKX, Inc. | | | 16,700 | | | | 74,148 | |
| Cox Radio, Inc., Class A* | | | 8,690 | | | | 47,360 | |
| Cross Media Marketing Corp. *(b)(c) | | | 100 | | | | 0 | |
| Crown Media Holdings, Inc., Class A* | | | 4,358 | | | | 13,553 | |
| Cumulus Media, Inc., Class A* | | | 9,994 | | | | 10,494 | |
| Dolan Media Co.* | | | 9,100 | | | | 37,310 | |
| Entercom Communications Corp., Class A | | | 8,700 | | | | 6,003 | |
| Entravision Communications Corp., Class A* | | | 21,573 | | | | 40,773 | |
| Fisher Communications, Inc. | | | 2,400 | | | | 88,560 | |
| Global Sources Ltd.* | | | 5,370 | | | | 42,423 | |
| Global Traffic Network, Inc.* | | | 4,300 | | | | 23,005 | |
| Gray Television, Inc. | | | 16,158 | | | | 8,079 | |
Harte-Hanks, Inc. | | | 12,400 | | | | 87,048 | |
| Idearc, Inc. | | | 49,800 | | | | 18,924 | |
| Interactive Data Corp. | | | 12,000 | | | | 282,960 | |
| Journal Communications, Inc., Class A | | | 14,220 | | | | 35,550 | |
| Knology, Inc.* | | | 10,200 | | | | 49,368 | |
| Lee Enterprises, Inc. | | | 15,100 | | | | 37,750 | |
| Lin TV Corp., Class A* | | | 9,800 | | | | 16,758 | |
| Live Nation, Inc.* | | | 25,600 | | | | 288,000 | |
| Martha Stewart Living Omnimedia, Class A* | | | 8,508 | | | | 44,497 | |
| Marvel Entertainment, Inc.* | | | 16,550 | | | | 532,744 | |
| McClatchy Co., Class A | | | 19,200 | | | | 58,944 | |
| Media General, Inc., Class A | | | 6,900 | | | | 52,647 | |
| Mediacom Communications Corp., Class A* | | | 14,341 | | | | 63,674 | |
| National CineMedia, Inc. | | | 14,920 | | | | 120,852 | |
| Outdoor Channel Holdings, Inc.* | | | 6,100 | | | | 48,800 | |
| Playboy Enterprises, Inc., Class B* | | | 8,134 | | | | 20,091 | |
| Primedia, Inc. | | | 9,866 | | | | 12,333 | |
| R.H. Donnelley Corp.* | | | 23,200 | | | | 19,720 | |
| RCN Corp.* | | | 13,330 | | | | 85,978 | |
| RHI Entertainment, Inc.* | | | 3,900 | | | | 52,260 | |
| Scholastic Corp. | | | 8,122 | | | | 150,826 | |
| Sinclair Broadcast Group, Inc., Class A | | | 17,635 | | | | 56,961 | |
| Valassis Communications, Inc.* | | | 16,200 | | | | 71,928 | |
| Value Line, Inc. | | | 100 | | | | 3,855 | |
| Westwood One, Inc.* | | | 21,100 | | | | 6,119 | |
| World Wrestling Entertainment, Inc., Class A | | | 6,269 | | | | 89,271 | |
| | | | | | | | | |
| | | | | | | | 3,246,784 | |
| | | | | | | | | |
| |
| |
Metals & Mining 0.9% |
| Allied Nevada Gold Corp.* | | | 16,200 | | | | 55,890 | |
| AM Castle & Co. | | | 5,900 | | | | 71,803 | |
| AMCOL International Corp. | | | 8,550 | | | | 209,731 | |
| Apex Silver Mines Ltd.* | | | 17,500 | | | | 23,275 | |
| Brush Engineered Materials, Inc.* | | | 7,236 | | | | 88,786 | |
| China Precision Steel, Inc.* | | | 5,800 | | | | 12,586 | |
| Coeur d’Alene Mines Corp.* | | | 185,955 | | | | 133,887 | |
| Compass Minerals International, Inc. | | | 10,760 | | | | 591,047 | |
| General Moly, Inc.* | | | 20,000 | | | | 39,800 | |
| General Steel Holdings, Inc.* | | | 2,500 | | | | 11,850 | |
| Haynes International, Inc.* | | | 4,000 | | | | 101,240 | |
| Hecla Mining Co.* | | | 42,938 | | | | 106,916 | |
| Horsehead Holding Corp.* | | | 11,800 | | | | 40,828 | |
| Kaiser Aluminum Corp. | | | 5,300 | | | | 177,868 | |
| Olympic Steel, Inc. | | | 3,000 | | | | 68,580 | |
| Royal Gold, Inc. | | | 9,875 | | | | 284,696 | |
| RTI International Metals, Inc.* | | | 7,210 | | | | 113,846 | |
| Stillwater Mining Co.* | | | 13,335 | | | | 52,807 | |
| Sutor Technology Group Ltd.* | | | 3,200 | | | | 6,880 | |
| Universal Stainless & Alloy* | | | 2,400 | | | | 44,232 | |
| Worthington Industries, Inc. | | | 21,275 | | | | 256,789 | |
| | | | | | | | | |
| | | | | | | | 2,493,337 | |
| | | | | | | | | |
| |
| |
Multi-Utility 0.5% |
| Avista Corp. | | | 17,876 | | | | 355,017 | |
| Black Hills Corp. | | | 12,980 | | | | 327,745 | |
| CH Energy Group, Inc. | | | 5,363 | | | | 221,117 | |
134 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Multi-Utility (continued) |
| | | | | | | | | |
| NorthWestern Corp. | | | 13,100 | | | $ | 255,974 | |
| PNM Resources, Inc. | | | 27,800 | | | | 271,050 | |
| | | | | | | | | |
| | | | | | | | 1,430,903 | |
| | | | | | | | | |
| |
| |
Multiline Retail 0.2% |
| 99 Cents Only Stores* | | | 15,816 | | | | 192,955 | |
| Dillard’s, Inc., Class A | | | 19,200 | | | | 102,336 | |
| Fred’s, Inc., Class A | | | 13,460 | | | | 164,885 | |
| Retail Ventures, Inc.* | | | 10,705 | | | | 22,053 | |
| Tuesday Morning Corp.* | | | 9,842 | | | | 22,046 | |
| | | | | | | | | |
| | | | | | | | 504,275 | |
| | | | | | | | | |
| |
| |
Natural Gas Utility 1.5% |
| Chesapeake Utilities Corp. | | | 2,300 | | | | 71,852 | |
| Laclede Group, Inc. (The) | | | 7,400 | | | | 387,168 | |
| New Jersey Resources Corp. | | | 14,137 | | | | 526,462 | |
| Nicor, Inc. | | | 14,887 | | | | 687,928 | |
| Northwest Natural Gas Co. | | | 8,916 | | | | 453,646 | |
| Piedmont Natural Gas Co. | | | 24,800 | | | | 816,416 | |
| South Jersey Industries, Inc. | | | 10,004 | | | | 340,836 | |
| Southwest Gas Corp. | | | 14,286 | | | | 373,151 | |
| WGL Holdings, Inc. | | | 16,695 | | | | 537,412 | |
| | | | | | | | | |
| | | | | | | | 4,194,871 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 3.6% |
| Abraxas Petroleum Corp.* | | | 15,400 | | | | 33,880 | |
| Alon USA Energy, Inc. | | | 3,600 | | | | 31,752 | |
| American Oil & Gas, Inc.* | | | 13,900 | | | | 25,020 | |
| APCO Argentina, Inc. | | | 1,400 | | | | 39,130 | |
| Approach Resources, Inc.* | | | 3,300 | | | | 35,970 | |
| Arena Resources, Inc.* | | | 12,800 | | | | 390,144 | |
| Arlington Tankers Ltd. | | | 3,300 | | | | 32,076 | |
| Atlas America, Inc. | | | 11,597 | | | | 265,687 | |
| ATP Oil & Gas Corp.* | | | 9,400 | | | | 113,176 | |
| Aventine Renewable Energy Holdings, Inc.* | | | 10,710 | | | | 20,884 | |
| Berry Petroleum Co., Class A | | | 14,380 | | | | 335,054 | |
| Bill Barrett Corp.* | | | 12,400 | | | | 252,960 | |
| BMB Munai, Inc.* | | | 12,800 | | | | 31,872 | |
| BPZ Resources, Inc.* | | | 20,200 | | | | 199,980 | |
| Brigham Exploration Co.* | | | 15,602 | | | | 122,320 | |
| Callon Petroleum Co.* | | | 7,100 | | | | 73,272 | |
| Cano Petroleum, Inc.* | | | 17,400 | | | | 10,092 | |
| Carrizo Oil & Gas, Inc.* | | | 9,240 | | | | 216,124 | |
| Cheniere Energy, Inc.* | | | 16,400 | | | | 61,336 | |
| Clayton Williams Energy, Inc.* | | | 1,900 | | | | 92,017 | |
| Clean Energy Fuels Corp.* | | | 7,400 | | | | 56,980 | |
| Comstock Resources, Inc.* | | | 15,331 | | | | 757,658 | |
| Concho Resources, Inc.* | | | 18,700 | | | | 397,375 | |
| Contango Oil & Gas Co.* | | | 4,400 | | | | 242,000 | |
| Crosstex Energy, Inc. | | | 14,100 | | | | 143,961 | |
| CVR Energy, Inc.* | | | 7,100 | | | | 28,187 | |
| Delek US Holdings, Inc. | | | 5,000 | | | | 27,950 | |
| Delta Petroleum Corp.* | | | 20,980 | | | | 197,212 | |
| DHT Maritime, Inc. | | | 12,700 | | | | 66,802 | |
| Double Eagle Petroleum Co.* | | | 3,100 | | | | 25,017 | |
| Endeavour International Corp.* | | | 38,600 | | | | 28,950 | |
| Energy Partners Ltd.* | | | 10,761 | | | | 46,487 | |
| Energy XXI (Bermuda) Ltd. | | | 42,300 | | | | 83,331 | |
| Evergreen Energy, Inc.* | | | 23,660 | | | | 8,518 | |
| EXCO Resources, Inc.* | | | 50,400 | | | | 463,176 | |
| FX Energy, Inc.* | | | 14,400 | | | | 70,416 | |
| Gasco Energy, Inc.* | | | 33,800 | | | | 27,040 | |
| General Maritime Corp. | | | 8,600 | | | | 130,290 | |
| GeoGlobal Resources, Inc.* | | | 11,600 | | | | 21,460 | |
| GeoMet, Inc.* | | | 4,200 | | | | 12,390 | |
| GeoResources, Inc.* | | | 2,300 | | | | 34,362 | |
| GMX Resources, Inc.* | | | 5,600 | | | | 211,400 | |
| Golar LNG Ltd. | | | 11,200 | | | | 76,608 | |
| Goodrich Petroleum Corp.* | | | 7,595 | | | | 210,837 | |
| Gran Tierra Energy, Inc.* | | | 31,000 | | | | 78,430 | |
| GreenHunter Energy, Inc.* | | | 1,200 | | | | 10,740 | |
| Gulfport Energy Corp.* | | | 9,300 | | | | 65,565 | |
| Harvest Natural Resources, Inc.* | | | 11,865 | | | | 100,734 | |
| Houston American Energy Corp. | | | 5,500 | | | | 21,945 | |
| International Coal Group, Inc.* | | | 42,900 | | | | 200,772 | |
| James River Coal Co.* | | | 8,800 | | | | 169,136 | |
| Knightsbridge Tankers Ltd. | | | 5,800 | | | | 103,878 | |
| McMoRan Exploration Co.* | | | 19,707 | | | | 279,642 | |
| Meridian Resource Corp.* | | | 28,200 | | | | 33,276 | |
| National Coal Corp.* | | | 9,300 | | | | 39,897 | |
| Nordic American Tanker Shipping | | | 11,600 | | | | 343,940 | |
| Northern Oil & Gas, Inc.* | | | 7,200 | | | | 39,240 | |
| Oilsands Quest, Inc.* | | | 51,600 | | | | 85,140 | |
| Pacific Ethanol, Inc.* | | | 17,000 | | | | 15,300 | |
| Panhandle Oil & Gas, Inc. | | | 2,600 | | | | 65,000 | |
| Parallel Petroleum Corp.* | | | 13,965 | | | | 56,000 | |
| Penn Virginia Corp. | | | 14,080 | | | | 523,353 | |
| Petrocorp, Inc. *(b)(c) | | | 1,500 | | | | 0 | |
| Petroleum Development Corp.* | | | 5,056 | | | | 104,710 | |
| PetroQuest Energy, Inc.* | | | 14,600 | | | | 145,270 | |
| PrimeEnergy Corp.* | | | 200 | | | | 12,000 | |
| Quest Resource Corp.* | | | 9,300 | | | | 3,952 | |
| RAM Energy Resources, Inc.* | | | 17,000 | | | | 20,910 | |
| Rentech, Inc.* | | | 59,000 | | | | 43,660 | |
| Rex Energy Corp.* | | | 5,700 | | | | 38,646 | |
| Rosetta Resources, Inc.* | | | 17,305 | | | | 182,568 | |
| Ship Finance International Ltd. | | | 14,100 | | | | 192,465 | |
| Stone Energy Corp.* | | | 10,649 | | | | 323,091 | |
| Swift Energy Co.* | | | 10,320 | | | | 331,065 | |
| Teekay Tankers Ltd., Class A | | | 4,800 | | | | 58,320 | |
| Toreador Resources Corp.* | | | 6,200 | | | | 45,880 | |
2008 Annual Report 135
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Oil, Gas & Consumable Fuels (continued) |
| | | | | | | | | |
| Tri-Valley Corp.* | | | 7,800 | | | $ | 37,050 | |
| TXCO Resources, Inc.* | | | 11,800 | | | | 61,832 | |
| Uranium Resources, Inc.* | | | 16,600 | | | | 15,604 | |
| USEC, Inc.* | | | 36,413 | | | | 150,386 | |
| VAALCO Energy, Inc.* | | | 19,900 | | | | 105,470 | |
| Venoco, Inc.* | | | 6,600 | | | | 27,918 | |
| VeraSun Energy Corp.* | | | 34,625 | | | | 17,659 | |
| Warren Resources, Inc.* | | | 20,540 | | | | 108,657 | |
| Western Refining, Inc. | | | 10,100 | | | | 67,367 | |
| Westmoreland Coal Co.* | | | 3,500 | | | | 34,475 | |
| World Fuel Services Corp. | | | 10,120 | | | | 216,872 | |
| | | | | | | | | |
| | | | | | | | 10,328,968 | |
| | | | | | | | | |
| |
| |
Paper & Forest Products 0.3% |
| AbitibiBowater, Inc.* | | | 17,350 | | | | 33,833 | |
| Buckeye Technologies, Inc.* | | | 12,190 | | | | 71,799 | |
| Deltic Timber Corp. | | | 3,556 | | | | 161,976 | |
| Glatfelter | | | 14,310 | | | | 147,536 | |
| KapStone Paper and Packaging Corp.* | | | 6,700 | | | | 32,093 | |
| Louisiana-Pacific Corp. | | | 34,800 | | | | 167,040 | |
| Mercer International, Inc.* | | | 10,920 | | | | 30,576 | |
| Neenah Paper, Inc. | | | 4,900 | | | | 44,247 | |
| Schweitzer-Mauduit International, Inc. | | | 4,942 | | | | 82,630 | |
| Verso Paper Corp. | | | 5,200 | | | | 8,060 | |
| Wausau Paper Corp. | | | 15,847 | | | | 146,743 | |
| | | | | | | | | |
| | | | | | | | 926,533 | |
| | | | | | | | | |
| |
| |
Personal Products 0.4% |
| American Oriental Bioengineering, Inc.* | | | 20,800 | | | | 127,088 | |
| Chattem, Inc.* | | | 5,626 | | | | 425,720 | |
| China Sky One Medical, Inc.* | | | 2,800 | | | | 25,144 | |
| Elizabeth Arden, Inc.* | | | 8,207 | | | | 141,899 | |
| Inter Parfums, Inc. | | | 5,150 | | | | 60,049 | |
| Mannatech, Inc. | | | 6,200 | | | | 24,862 | |
| Nu Skin Enterprises, Inc., Class A | | | 17,498 | | | | 225,549 | |
| Prestige Brands Holdings, Inc.* | | | 11,400 | | | | 78,774 | |
| Schiff Nutrition International, Inc.* | | | 4,000 | | | | 23,560 | |
| USANA Health Sciences, Inc.* | | | 2,610 | | | | 99,023 | |
| | | | | | | | | |
| | | | | | | | 1,231,668 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 1.5% |
| Acura Pharmaceuticals, Inc.* | | | 2,200 | | | | 12,650 | |
| Adolor Corp.* | | | 15,500 | | | | 48,825 | |
| Akorn, Inc.* | | | 17,100 | | | | 53,181 | |
| Alexza Pharmaceuticals, Inc.* | | | 8,800 | | | | 25,080 | |
| Alpharma, Inc., Class A* | | | 14,348 | | | | 449,236 | |
| Ardea Biosciences, Inc.* | | | 4,000 | | | | 40,600 | |
| Auxilium Pharmaceuticals, Inc.* | | | 13,900 | | | | 273,135 | |
| Biodel, Inc.* | | | 3,900 | | | | 8,658 | |
| BioForm Medical, Inc.* | | | 6,100 | | | | 12,505 | |
| BioMimetic Therapeutics, Inc.* | | | 4,500 | | | | 36,810 | |
| Cadence Pharmaceuticals, Inc.* | | | 7,300 | | | | 47,669 | |
| Caraco Pharmaceutical Laboratories Ltd.* | | | 3,000 | | | | 30,510 | |
| Columbia Laboratories, Inc.* | | | 17,100 | | | | 26,847 | |
| Cypress Bioscience, Inc.* | | | 12,620 | | | | 68,653 | |
| Depomed, Inc.* | | | 16,200 | | | | 34,992 | |
| Discovery Laboratories, Inc.* | | | 35,300 | | | | 64,599 | |
| Durect Corp.* | | | 29,000 | | | | 119,190 | |
| Inspire Pharmaceuticals, Inc.* | | | 15,400 | | | | 56,364 | |
| Javelin Pharmaceuticals, Inc.* | | | 18,300 | | | | 25,986 | |
| Jazz Pharmaceuticals, Inc.* | | | 1,900 | | | | 5,662 | |
| KV Pharmaceutical Co., Class A* | | | 11,123 | | | | 189,091 | |
| MAP Pharmaceuticals, Inc.* | | | 1,500 | | | | 6,240 | |
| Medicines Co. (The)* | | | 17,579 | | | | 306,402 | |
| Medicis Pharmaceutical Corp., Class A | | | 19,060 | | | | 271,986 | |
| MiddleBrook Pharmaceuticals, Inc.* | | | 12,200 | | | | 16,470 | |
| Noven Pharmaceuticals, Inc.* | | | 8,400 | | | | 94,500 | |
| Obagi Medical Products, Inc.* | | | 6,000 | | | | 49,920 | |
| Optimer Pharmaceuticals, Inc.* | | | 9,300 | | | | 38,595 | |
| Pain Therapeutics, Inc.* | | | 11,610 | | | | 106,115 | |
| Par Pharmaceutical Cos., Inc.* | | | 11,695 | | | | 116,950 | |
| Pozen, Inc.* | | | 8,805 | | | | 54,327 | |
| Questcor Pharmaceuticals, Inc.* | | | 18,200 | | | | 140,868 | |
| Salix Pharmaceuticals Ltd.* | | | 16,070 | | | | 147,844 | |
| Sucampo Pharmaceuticals, Inc., Class A* | | | 3,500 | | | | 28,805 | |
| Valeant Pharmaceuticals International* | | | 23,500 | | | | 441,095 | |
| ViroPharma, Inc.* | | | 23,600 | | | | 295,944 | |
| Vivus, Inc.* | | | 23,300 | | | | 141,897 | |
| XenoPort, Inc.* | | | 8,500 | | | | 353,685 | |
| | | | | | | | | |
| | | | | | | | 4,241,886 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 5.5% |
| Acadia Realty Trust | | | 10,899 | | | | 196,945 | |
| Agree Realty Corp. | | | 2,900 | | | | 58,203 | |
| Alexander’s, Inc. | | | 600 | | | | 210,000 | |
| American Campus Communities, Inc. | | | 14,704 | | | | 382,010 | |
| American Capital Agency Corp. | | | 2,900 | | | | 53,940 | |
| Anthracite Capital, Inc. | | | 19,851 | | | | 86,153 | |
| Anworth Mortgage Asset Corp. | | | 27,800 | | | | 162,908 | |
| Arbor Realty Trust, Inc. | | | 4,830 | | | | 17,388 | |
| Ashford Hospitality Trust, Inc. | | | 42,410 | | | | 68,704 | |
| Associated Estates Realty Corp. | | | 5,300 | | | | 43,248 | |
136 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Real Estate Investment Trusts (continued) |
| | | | | | | | | |
| BioMed Realty Trust, Inc. | | | 27,303 | | | $ | 383,607 | |
| Capital Trust, Inc., Class A | | | 5,568 | | | | 43,987 | |
| CapLease, Inc. | | | 13,000 | | | | 87,750 | |
| Capstead Mortgage Corp. | | | 19,000 | | | | 190,950 | |
| Care Investment Trust, Inc. | | | 5,000 | | | | 55,900 | |
| Cedar Shopping Centers, Inc. | | | 13,700 | | | | 130,972 | |
| Chimera Investment Corp. | | | 10,500 | | | | 30,240 | |
| Cogdell Spencer, Inc. | | | 3,900 | | | | 46,800 | |
| Colonial Properties Trust | | | 16,800 | | | | 177,072 | |
| Corporate Office Properties Trust | | | 14,280 | | | | 443,965 | |
| Cousins Properties, Inc. | | | 14,602 | | | | 211,437 | |
| DCT Industrial Trust, Inc. | | | 57,970 | | | | 285,792 | |
| DiamondRock Hospitality Co. | | | 31,960 | | | | 165,553 | |
| DuPont Fabros Technology, Inc. | | | 4,300 | | | | 26,789 | |
| EastGroup Properties, Inc. | | | 8,710 | | | | 291,611 | |
| Education Realty Trust, Inc. | | | 10,400 | | | | 44,200 | |
| Entertainment Properties Trust(a) | | | 10,614 | | | | 397,494 | |
| Equity Lifestyle Properties, Inc. | | | 6,836 | | | | 287,044 | |
| Equity One, Inc. | | | 11,425 | | | | 199,595 | |
| Extra Space Storage, Inc. | | | 27,940 | | | | 321,589 | |
| FelCor Lodging Trust, Inc. | | | 22,300 | | | | 67,123 | |
| First Industrial Realty Trust, Inc. | | | 14,902 | | | | 154,087 | |
| First Potomac Realty Trust | | | 8,800 | | | | 108,064 | |
| Franklin Street Properties Corp. | | | 19,000 | | | | 224,770 | |
| Friedman Billings Ramsey Group, Inc., Class A * | | | 44,800 | | | | 30,464 | |
| Getty Realty Corp. | | | 5,435 | | | | 105,819 | |
| Glimcher Realty Trust | | | 12,778 | | | | 66,957 | |
| Gramercy Capital Corp. | | | 14,908 | | | | 39,655 | |
| Hatteras Financial Corp. | | | 3,900 | | | | 85,020 | |
| Healthcare Realty Trust, Inc. | | | 19,900 | | | | 508,445 | |
| Hersha Hospitality Trust | | | 14,400 | | | | 60,624 | |
| Highwoods Properties, Inc. | | | 21,564 | | | | 535,218 | |
| Home Properties, Inc. | | | 10,690 | | | | 432,838 | |
| Inland Real Estate Corp. | | | 18,470 | | | | 211,666 | |
| Investors Real Estate Trust | | | 18,197 | | | | 179,786 | |
| JER Investors Trust, Inc. | | | 8,500 | | | | 27,625 | |
| Kite Realty Group Trust | | | 7,469 | | | | 45,412 | |
| LaSalle Hotel Properties | | | 13,486 | | | | 189,883 | |
| Lexington Realty Trust | | | 17,495 | | | | 140,485 | |
| LTC Properties, Inc. | | | 7,740 | | | | 187,076 | |
| Maguire Properties, Inc. | | | 13,510 | | | | 47,961 | |
| Medical Properties Trust, Inc. | | | 22,210 | | | | 163,910 | |
| MFA Mortgage Investments, Inc. | | | 65,874 | | | | 362,307 | |
Mid-America Apartment Communities, Inc. | | | 8,892 | | | | 313,354 | |
| Mission West Properties, Inc. | | | 5,400 | | | | 46,764 | |
| Monmouth Real Estate Investment Corp., Class A | | | 7,700 | | | | 56,210 | |
| National Health Investors, Inc. | | | 7,037 | | | | 210,688 | |
| National Retail Properties, Inc. | | | 25,540 | | | | 455,378 | |
| Newcastle Investment Corp. | | | 17,597 | | | | 71,268 | |
| NorthStar Realty Finance Corp. | | | 18,720 | | | | 107,640 | |
| Omega Healthcare Investors, Inc. | | | 26,600 | | | | 400,862 | |
| One Liberty Properties, Inc. | | | 3,100 | | | | 36,766 | |
| Parkway Properties, Inc. | | | 5,482 | | | | 94,565 | |
| Pennsylvania Real Estate Investment Trust | | | 12,167 | | | | 153,913 | |
| Post Properties, Inc. | | | 14,876 | | | | 332,032 | |
| Potlatch Corp. | | | 13,341 | | | | 443,055 | |
| PS Business Parks, Inc. | | | 4,845 | | | | 219,333 | |
| RAIT Financial Trust | | | 20,943 | | | | 80,002 | |
| Ramco-Gershenson Properties Trust | | | 5,739 | | | | 75,640 | |
| Realty Income Corp. | | | 34,300 | | | | 793,016 | |
| Redwood Trust, Inc. | | | 11,120 | | | | 169,469 | |
| Resource Capital Corp. | | | 8,000 | | | | 39,600 | |
| Saul Centers, Inc. | | | 3,345 | | | | 122,394 | |
| Senior Housing Properties Trust | | | 38,797 | | | | 743,739 | |
| Sovran Self Storage, Inc. | | | 7,701 | | | | 249,897 | |
| Strategic Hotels & Resorts, Inc. | | | 26,232 | | | | 129,848 | |
| Sun Communities, Inc. | | | 6,010 | | | | 90,390 | |
| Sunstone Hotel Investors, Inc. | | | 17,350 | | | | 113,643 | |
| Tanger Factory Outlet Centers | | | 10,597 | | | | 383,293 | |
| U-Store-It Trust | | | 16,410 | | | | 112,573 | |
| Universal Health Realty Income Trust | | | 3,673 | | | | 127,490 | |
| Urstadt Biddle Properties, Inc., Class A | | | 5,980 | | | | 97,952 | |
| Washington Real Estate Investment Trust | | | 17,284 | | | | 518,174 | |
| Winthrop Realty Trust | | | 14,300 | | | | 36,608 | |
| | | | | | | | | |
| | | | | | | | 15,902,597 | |
| | | | | | | | | |
| |
| |
Real Estate Management & Development 0.2% |
| Avatar Holdings, Inc.* | | | 1,792 | | | | 60,838 | |
| Consolidated-Tomoka Land Co. | | | 1,680 | | | | 61,992 | |
| Forestar Real Estate Group, Inc.* | | | 11,700 | | | | 102,375 | |
| FX Real Estate and Entertainment, Inc.* | | | 2,340 | | | | 1,615 | |
| Grubb & Ellis Co. | | | 10,100 | | | | 15,453 | |
| Maui Land & Pineapple Co., Inc.* | | | 1,237 | | | | 19,173 | |
| Meruelo Maddux Properties, Inc.* | | | 13,570 | | | | 13,299 | |
| Stratus Properties, Inc.* | | | 1,700 | | | | 41,650 | |
2008 Annual Report 137
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Real Estate Management & Development (continued) |
| | | | | | | | | |
| Tejon Ranch Co.* | | | 3,943 | | | $ | 114,584 | |
| Thomas Properties Group, Inc. | | | 8,600 | | | | 59,770 | |
| | | | | | | | | |
| | | | | | | | 490,749 | |
| | | | | | | | | |
| |
| |
Road & Rail 0.8% |
| AMERCO* | | | 3,304 | | | | 149,539 | |
| Arkansas Best Corp. | | | 7,225 | | | | 210,898 | |
| Celadon Group, Inc.* | | | 7,900 | | | | 84,451 | |
| Dollar Thrifty Automotive Group* | | | 7,300 | | | | 11,826 | |
| Genesee & Wyoming, Inc., Class A* | | | 10,280 | | | | 342,838 | |
| Heartland Express, Inc. | | | 18,846 | | | | 289,098 | |
| Knight Transportation, Inc. | | | 19,320 | | | | 307,188 | |
| Marten Transport Ltd.* | | | 5,445 | | | | 100,079 | |
| Old Dominion Freight Line, Inc.* | | | 9,379 | | | | 284,559 | |
| Patriot Transportation Holding, Inc.* | | | 400 | | | | 28,000 | |
| Saia, Inc.* | | | 4,855 | | | | 51,511 | |
| Universal Truckload Services, Inc.* | | | 1,400 | | | | 21,392 | |
| Werner Enterprises, Inc. | | | 13,662 | | | | 268,048 | |
| YRC Worldwide, Inc.* | | | 19,300 | | | | 88,394 | |
| | | | | | | | | |
| | | | | | | | 2,237,821 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 3.0% |
| Actel Corp.* | | | 8,509 | | | | 102,874 | |
| Advanced Analogic Technologies, Inc.* | | | 15,400 | | | | 46,354 | |
| Advanced Energy Industries, Inc.* | | | 11,045 | | | | 117,850 | |
| Amkor Technology, Inc.* | | | 36,200 | | | | 146,972 | |
| Anadigics, Inc.* | | | 21,100 | | | | 37,136 | |
| Applied Micro Circuits Corp.* | | | 21,817 | | | | 111,485 | |
| Asyst Technologies, Inc.* | | | 15,709 | | | | 9,897 | |
| Atheros Communications, Inc.* | | | 20,065 | | | | 360,568 | |
| ATMI, Inc.* | | | 10,857 | | | | 132,021 | |
| AuthenTec, Inc.* | | | 8,500 | | | | 15,980 | |
| Axcelis Technologies, Inc.* | | | 32,433 | | | | 14,271 | |
| Brooks Automation, Inc.* | | | 21,378 | | | | 146,439 | |
| Cabot Microelectronics Corp.* | | | 7,932 | | | | 227,886 | |
| Cavium Networks, Inc.* | | | 10,200 | | | | 129,948 | |
| Ceva, Inc.* | | | 7,300 | | | | 62,050 | |
| Cirrus Logic, Inc.* | | | 21,897 | | | | 125,689 | |
| Cohu, Inc. | | | 8,245 | | | | 116,584 | |
| Cymer, Inc.* | | | 9,938 | | | | 243,183 | |
| Diodes, Inc.* | | | 9,340 | | | | 92,279 | |
| DSP Group, Inc.* | | | 8,448 | | | | 53,222 | |
| Eagle Test Systems, Inc.* | | | 4,000 | | | | 60,560 | |
| EMCORE Corp.* | | | 24,800 | | | | 88,288 | |
| Entegris, Inc.* | | | 37,654 | | | | 101,289 | |
| Entropic Communications, Inc.* | | | 400 | | | | 424 | |
| Exar Corp.* | | | 12,564 | | | | 83,928 | |
| FEI Co.* | | | 12,268 | | | | 257,751 | |
| FormFactor, Inc.* | | | 16,437 | | | | 286,333 | |
| Hittite Microwave Corp.* | | | 6,800 | | | | 222,836 | |
| IXYS Corp. | | | 8,702 | | | | 69,094 | |
| Kopin Corp.* | | | 23,700 | | | | 54,984 | |
| Kulicke & Soffa Industries, Inc.* | | | 18,068 | | | | 53,120 | |
| Lattice Semiconductor Corp.*(a) | | | 38,875 | | | | 73,085 | |
| LTX-Credence Corp.* | | | 46,873 | | | | 29,061 | |
| Mattson Technology, Inc.* | | | 16,674 | | | | 43,686 | |
| Micrel, Inc. | | | 16,758 | | | | 123,171 | |
| Microsemi Corp.* | | | 26,508 | | | | 576,284 | |
| Microtune, Inc.* | | | 19,750 | | | | 49,375 | |
| MIPS Technologies, Inc.* | | | 14,974 | | | | 41,777 | |
| MKS Instruments, Inc.* | | | 16,823 | | | | 312,067 | |
| Monolithic Power Systems, Inc.* | | | 8,800 | | | | 149,512 | |
| NetLogic Microsystems, Inc.* | | | 5,800 | | | | 122,496 | |
| NVE Corp.* | | | 1,600 | | | | 45,200 | |
| OmniVision Technologies, Inc.* | | | 17,228 | | | | 139,375 | |
| Pericom Semiconductor Corp.* | | | 7,900 | | | | 61,620 | |
| Photronics, Inc.* | | | 15,492 | | | | 10,689 | |
| PLX Technology, Inc.* | | | 10,300 | | | | 35,432 | |
| PMC — Sierra, Inc.* | | | 73,800 | | | | 345,384 | |
| Power Integrations, Inc.* | | | 10,300 | | | | 216,197 | |
| RF Micro Devices, Inc.* | | | 88,760 | | | | 176,632 | |
| Rubicon Technology, Inc.* | | | 4,500 | | | | 23,940 | |
| Rudolph Technologies, Inc.* | | | 10,987 | | | | 36,806 | |
| Semitool, Inc.* | | | 6,418 | | | | 37,930 | |
| Semtech Corp.* | | | 20,835 | | | | 252,520 | |
| Sigma Designs, Inc.* | | | 9,000 | | | | 99,810 | |
| Silicon Image, Inc.* | | | 24,706 | | | | 112,906 | |
| Silicon Storage Technology, Inc.* | | | 26,484 | | | | 83,425 | |
| SiRF Technology Holdings, Inc.* | | | 20,575 | | | | 19,341 | |
| Skyworks Solutions, Inc.* | | | 55,037 | | | | 392,414 | |
| Spansion, Inc., Class A* | | | 42,600 | | | | 26,412 | |
| Standard Microsystems Corp.* | | | 7,161 | | | | 128,970 | |
| Supertex, Inc.* | | | 3,780 | | | | 91,174 | |
| Techwell, Inc.* | | | 5,600 | | | | 49,056 | |
| Tessera Technologies, Inc.* | | | 16,328 | | | | 282,148 | |
| Transmeta Corp.* | | | 4,100 | | | | 67,035 | |
| Trident Microsystems, Inc.* | | | 20,573 | | | | 37,237 | |
| TriQuint Semiconductor, Inc.* | | | 48,339 | | | | 216,559 | |
| Ultra Clean Holdings, Inc.* | | | 7,200 | | | | 21,744 | |
| Ultratech, Inc.* | | | 7,850 | | | | 118,378 | |
| Veeco Instruments, Inc.* | | | 11,242 | | | | 87,013 | |
138 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Semiconductors & Semiconductor Equipment (continued) |
| | | | | | | | | |
| Volterra Semiconductor Corp.* | | | 8,600 | | | $ | 81,184 | |
| Zoran Corp.* | | | 17,459 | | | | 142,116 | |
| | | | | | | | | |
| | | | | | | | 8,530,456 | |
| | | | | | | | | |
| |
| |
Software 3.7% |
| ACI Worldwide, Inc.* | | | 12,096 | | | | 165,715 | |
| Actuate Corp.* | | | 18,800 | | | | 53,392 | |
| Advent Software, Inc.* | | | 5,593 | | | | 104,813 | |
| American Software, Inc., Class A | | | 8,200 | | | | 37,310 | |
| ArcSight, Inc.* | | | 2,700 | | | | 15,957 | |
| Blackbaud, Inc. | | | 15,694 | | | | 238,549 | |
| Blackboard, Inc.* | | | 10,400 | | | | 254,592 | |
| Bottomline Technologies, Inc.* | | | 7,900 | | | | 62,252 | |
| Callidus Software, Inc.* | | | 10,600 | | | | 35,828 | |
| Commvault Systems, Inc.* | | | 15,000 | | | | 160,500 | |
| Concur Technologies, Inc.* | | | 14,500 | | | | 365,835 | |
| Deltek, Inc.* | | | 2,800 | | | | 14,588 | |
| DemandTec, Inc.* | | | 6,900 | | | | 49,749 | |
| Digimarc Corp.* | | | 1,742 | | | | 17,420 | |
| Double-Take Software, Inc.* | | | 5,800 | | | | 42,920 | |
| Ebix, Inc.* | | | 2,100 | | | | 53,403 | |
| Entrust, Inc.* | | | 22,700 | | | | 31,780 | |
| Epicor Software Corp.* | | | 19,989 | | | | 140,922 | |
| EPIQ Systems, Inc.* | | | 11,975 | | | | 162,740 | |
| Fair Isaac Corp. | | | 16,400 | | | | 255,676 | |
| FalconStor Software, Inc.* | | | 13,699 | | | | 41,234 | |
| Guidance Software, Inc.* | | | 3,500 | | | | 9,975 | |
| i2 Technologies, Inc.* | | | 5,000 | | | | 71,250 | |
| Informatica Corp.* | | | 29,853 | | | | 419,435 | |
| Interactive Intelligence, Inc.* | | | 5,100 | | | | 37,485 | |
| Jack Henry & Associates, Inc. | | | 25,235 | | | | 479,717 | |
| JDA Software Group, Inc.* | | | 8,729 | | | | 124,650 | |
| Kenexa Corp.* | | | 7,600 | | | | 67,716 | |
| Lawson Software, Inc.* | | | 39,840 | | | | 211,949 | |
| Macrovision Solutions Corp.* | | | 27,719 | | | | 307,127 | |
| Magma Design Automation, Inc.* | | | 14,898 | | | | 38,884 | |
| Manhattan Associates, Inc.* | | | 7,540 | | | | 126,747 | |
| Mentor Graphics Corp.* | | | 30,500 | | | | 223,870 | |
| MICROS Systems, Inc.* | | | 27,468 | | | | 467,780 | |
| MicroStrategy, Inc., Class A* | | | 3,086 | | | | 121,496 | |
| Midway Games, Inc.* | | | 6,637 | | | | 5,907 | |
| Monotype Imaging Holdings, Inc.* | | | 5,300 | | | | 36,093 | |
| MSC.Software Corp.* | | | 15,100 | | | | 129,860 | |
| Net 1 UEPS Technologies, Inc.* | | | 15,100 | | | | 211,400 | |
| NetScout Systems, Inc.* | | | 10,400 | | | | 100,048 | |
| NetSuite, Inc.* | | | 1,700 | | | | 16,779 | |
| OpenTV Corp., Class A* | | | 31,900 | | | | 42,427 | |
| Opnet Technologies, Inc.* | | | 4,900 | | | | 61,887 | |
| Parametric Technology Corp.* | | | 38,895 | | | | 505,246 | |
| Pegasystems, Inc. | | | 4,400 | | | | 57,552 | |
| Phoenix Technologies Ltd.* | | | 9,300 | | | | 41,106 | |
| Progress Software Corp.* | | | 13,735 | | | | 315,081 | |
| PROS Holdings, Inc.* | | | 4,300 | | | | 23,091 | |
| QAD, Inc. | | | 2,300 | | | | 11,730 | |
| Quality Systems, Inc. | | | 5,954 | | | | 229,170 | |
| Quest Software, Inc.* | | | 24,362 | | | | 322,797 | |
| Radiant Systems, Inc.* | | | 9,935 | | | | 52,357 | |
| Renaissance Learning, Inc. | | | 2,465 | | | | 33,623 | |
| Secure Computing Corp.* | | | 19,091 | | | | 108,055 | |
| Smith Micro Software, Inc.* | | | 10,300 | | | | 64,375 | |
| Solera Holdings, Inc.* | | | 17,400 | | | | 433,086 | |
| Sonic Solutions, Inc.* | | | 7,400 | | | | 15,096 | |
| Sourcefire, Inc.* | | | 7,100 | | | | 45,014 | |
| SPSS, Inc.* | | | 5,973 | | | | 139,529 | |
| SuccessFactors, Inc.* | | | 7,300 | | | | 58,327 | |
| Sybase, Inc.* | | | 26,700 | | | | 711,021 | |
| Symyx Technologies, Inc.* | | | 11,959 | | | | 52,739 | |
| Synchronoss Technologies, Inc.* | | | 7,900 | | | | 61,383 | |
| Take-Two Interactive Software, Inc. | | | 25,200 | | | | 298,872 | |
| Taleo Corp., Class A* | | | 8,800 | | | | 121,440 | |
| TeleCommunication Systems, Inc., Class A* | | | 11,400 | | | | 78,432 | |
| THQ, Inc.* | | | 22,441 | | | | 167,185 | |
| TIBCO Software, Inc.* | | | 62,860 | | | | 323,729 | |
| TiVo, Inc.* | | | 34,379 | | | | 236,184 | |
| Tyler Technologies, Inc.* | | | 13,500 | | | | 183,465 | |
| Ultimate Software Group, Inc.* | | | 8,300 | | | | 110,639 | |
| Unica Corp.* | | | 3,400 | | | | 17,578 | |
| Vasco Data Security International, Inc.* | | | 9,600 | | | | 108,768 | |
| Wind River Systems, Inc.* | | | 24,246 | | | | 211,910 | |
| | | | | | | | | |
| | | | | | | | 10,756,237 | |
| | | | | | | | | |
| |
| |
Specialty Retail 2.5% |
| Aaron Rents, Inc.(a) | | | 15,301 | | | | 379,312 | |
| Aeropostale, Inc.*(a) | | | 22,599 | | | | 547,122 | |
| America’s Car-Mart, Inc.* | | | 2,800 | | | | 45,724 | |
| Asbury Automotive Group, Inc. | | | 10,760 | | | | 34,970 | |
| Bebe Stores, Inc. | | | 11,900 | | | | 105,434 | |
| Big 5 Sporting Goods Corp. | | | 7,400 | | | | 46,472 | |
| Blockbuster, Inc., Class A* | | | 59,680 | | | | 90,714 | |
| Borders Group, Inc. | | | 20,400 | | | | 69,156 | |
| Brown Shoe Co., Inc. | | | 14,254 | | | | 150,237 | |
| Buckle, Inc. (The) | | | 7,857 | | | | 206,953 | |
Build-A-Bear Workshop, Inc.* | | | 5,600 | | | | 29,120 | |
| Cabela’s, Inc.* | | | 12,305 | | | | 97,825 | |
| Cache, Inc.* | | | 3,800 | | | | 13,642 | |
| Casual Male Retail Group, Inc.* | | | 11,806 | | | | 22,431 | |
| Cato Corp. (The), Class A | | | 9,291 | | | | 144,196 | |
| Charlotte Russe Holding, Inc.* | | | 7,036 | | | | 59,454 | |
| Charming Shoppes, Inc.* | | | 38,210 | | | | 42,031 | |
2008 Annual Report 139
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Specialty Retail (continued) |
| | | | | | | | | |
| Chico’s FAS, Inc.* | | | 59,500 | | | $ | 202,300 | |
| Children’s Place Retail Stores, Inc. (The)* | | | 7,911 | | | | 264,465 | |
| Christopher & Banks Corp. | | | 11,139 | | | | 58,146 | |
| Circuit City Stores, Inc. | | | 58,700 | | | | 14,675 | |
| Citi Trends, Inc.* | | | 4,500 | | | | 75,285 | |
| Coldwater Creek, Inc.* | | | 19,200 | | | | 68,928 | |
| Collective Brands, Inc.* | | | 21,614 | | | | 276,443 | |
| Conn’s, Inc.* | | | 3,300 | | | | 44,715 | |
| Dress Barn, Inc.* | | | 15,229 | | | | 145,589 | |
| DSW, Inc., Class A* | | | 3,865 | | | | 49,974 | |
| Finish Line (The), Class A | | | 14,356 | | | | 137,387 | |
| Genesco, Inc. | | | 6,520 | | | | 161,761 | |
| Group 1 Automotive, Inc. | | | 7,863 | | | | 79,023 | |
| Gymboree Corp.* | | | 9,602 | | | | 248,308 | |
| Haverty Furniture Cos., Inc. | | | 5,975 | | | | 58,794 | |
| hhgregg, Inc.* | | | 3,000 | | | | 16,440 | |
| Hibbett Sports, Inc.* | | | 9,359 | | | | 166,684 | |
| HOT Topic, Inc.* | | | 14,738 | | | | 95,502 | |
| J Crew Group, Inc.* | | | 14,290 | | | | 289,372 | |
| Jo-Ann Stores, Inc.* | | | 8,583 | | | | 164,450 | |
| JOS. A. Bank Clothiers, Inc.* | | | 5,755 | | | | 146,580 | |
| Lumber Liquidators, Inc.* | | | 3,200 | | | | 26,656 | |
| MarineMax, Inc.* | | | 5,500 | | | | 12,760 | |
| Men’s Wearhouse, Inc. | | | 17,400 | | | | 266,046 | |
| Midas, Inc.* | | | 5,000 | | | | 65,150 | |
| Monro Muffler, Inc. | | | 5,875 | | | | 126,489 | |
| New York & Co., Inc.* | | | 7,800 | | | | 21,996 | |
| Pacific Sunwear of California, Inc.* | | | 22,160 | | | | 75,787 | |
| Pep Boys — Manny, Moe & Jack | | | 14,283 | | | | 68,844 | |
| Pier 1 Imports, Inc.* | | | 30,000 | | | | 41,400 | |
Rent-A-Center, Inc.* | | | 22,550 | | | | 329,230 | |
| REX Stores Corp.* | | | 3,300 | | | | 29,304 | |
| Sally Beauty Holdings, Inc.* | | | 31,300 | | | | 159,004 | |
| Shoe Carnival, Inc.* | | | 3,000 | | | | 42,030 | |
| Sonic Automotive, Inc., Class A | | | 9,352 | | | | 47,976 | |
| Stage Stores, Inc. | | | 12,601 | | | | 97,154 | |
| Stein Mart, Inc. | | | 8,033 | | | | 17,271 | |
| Syms Corp.* | | | 1,900 | | | | 19,950 | |
| Systemax, Inc. | | | 3,400 | | | | 48,144 | |
| Talbots, Inc. | | | 8,200 | | | | 80,442 | |
| Tractor Supply Co.* | | | 11,000 | | | | 457,160 | |
| Tween Brands, Inc.* | | | 8,407 | | | | 71,628 | |
| Ulta Salon, Cosmetics & Fragrance, Inc.* | | | 7,300 | | | | 64,386 | |
| Wet Seal, Inc. (The), Class A* | | | 31,105 | | | | 91,449 | |
| Zale Corp.* | | | 10,802 | | | | 184,282 | |
| Zumiez, Inc.* | | | 6,600 | | | | 64,416 | |
| | | | | | | | | |
| | | | | | | | 7,358,568 | |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 1.5% |
| American Apparel, Inc.* | | | 12,100 | | | | 71,148 | |
| Carter’s, Inc.* | | | 19,108 | | | | 405,854 | |
| Cherokee, Inc. | | | 2,500 | | | | 51,625 | |
| Columbia Sportswear Co. | | | 4,200 | | | | 154,854 | |
| CROCS, Inc.* | | | 28,100 | | | | 70,531 | |
| Deckers Outdoor Corp.* | | | 4,278 | | | | 363,031 | |
| FGX International Holdings Ltd.* | | | 3,800 | | | | 41,800 | |
| Fossil, Inc.* | | | 15,345 | | | | 278,512 | |
| Fuqi International, Inc.* | | | 3,600 | | | | 28,476 | |
| G-III Apparel Group Ltd.* | | | 4,500 | | | | 62,145 | |
| Iconix Brand Group, Inc.* | | | 19,500 | | | | 212,355 | |
| K-Swiss, Inc., Class A | | | 9,181 | | | | 138,908 | |
| Kenneth Cole Productions, Inc., Class A | | | 3,070 | | | | 40,770 | |
| Lululemon Athletica, Inc.* | | | 6,100 | | | | 86,437 | |
| Maidenform Brands, Inc.* | | | 7,100 | | | | 77,958 | |
| Movado Group, Inc. | | | 4,937 | | | | 75,092 | |
| Oxford Industries, Inc. | | | 4,757 | | | | 64,077 | |
| Perry Ellis International, Inc.* | | | 4,082 | | | | 39,963 | |
| Quiksilver, Inc.* | | | 42,200 | | | | 109,298 | |
| Skechers USA, Inc., Class A* | | | 11,085 | | | | 150,534 | |
| Steven Madden Ltd.* | | | 5,998 | | | | 130,636 | |
| Timberland Co., Class A*(a) | | | 16,100 | | | | 194,810 | |
| True Religion Apparel, Inc.* | | | 5,800 | | | | 97,150 | |
| Under Armour, Inc., Class A* | | | 11,130 | | | | 289,380 | |
| Unifi, Inc.* | | | 15,200 | | | | 72,960 | |
| UniFirst Corp. | | | 4,543 | | | | 148,238 | |
| Volcom, Inc.* | | | 6,100 | | | | 78,873 | |
| Warnaco Group, Inc. (The)* | | | 15,323 | | | | 456,779 | |
| Weyco Group, Inc. | | | 2,000 | | | | 55,600 | |
| Wolverine World Wide, Inc. | | | 16,746 | | | | 393,531 | |
| | | | | | | | | |
| | | | | | | | 4,441,325 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 1.7% |
| Abington Bancorp, Inc. | | | 8,900 | | | | 92,115 | |
| Anchor Bancorp Wisconsin, Inc. | | | 6,417 | | | | 36,577 | |
| Bank Mutual Corp. | | | 17,160 | | | | 197,855 | |
| BankFinancial Corp. | | | 7,200 | | | | 87,768 | |
| Beneficial Mutual Bancorp, Inc.* | | | 9,900 | | | | 117,315 | |
| Berkshire Hills Bancorp, Inc. | | | 3,540 | | | | 92,146 | |
| Brookline Bancorp, Inc. | | | 19,685 | | | | 230,314 | |
| Brooklyn Federal Bancorp, Inc. | | | 1,700 | | | | 24,650 | |
| Clifton Savings Bancorp, Inc. | | | 2,300 | | | | 25,070 | |
| Corus Bankshares, Inc. | | | 13,940 | | | | 30,668 | |
| Danvers Bancorp, Inc. | | | 6,500 | | | | 79,820 | |
| Dime Community Bancshares | | | 8,464 | | | | 141,349 | |
| Doral Financial Corp.* | | | 1,500 | | | | 14,025 | |
| Downey Financial Corp. | | | 2,600 | | | | 4,160 | |
| Encore Bancshares, Inc.* | | | 1,800 | | | | 30,042 | |
| ESSA Bancorp, Inc. | | | 6,200 | | | | 85,932 | |
140 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Thrifts & Mortgage Finance (continued) |
| | | | | | | | | |
| Federal Agricultural Mortgage Corp., Class C | | | 3,400 | | | $ | 19,720 | |
| First Financial Holdings, Inc. | | | 4,200 | | | | 91,140 | |
| First Financial Northwest, Inc. | | | 8,300 | | | | 67,811 | |
| First Niagara Financial Group, Inc. | | | 38,890 | | | | 613,295 | |
| First Place Financial Corp. | | | 6,235 | | | | 42,834 | |
| FirstFed Financial Corp.* | | | 3,536 | | | | 31,647 | |
| Flagstar Bancorp, Inc. | | | 18,795 | | | | 35,711 | |
| Flushing Financial Corp. | | | 7,650 | | | | 118,958 | |
| Fox Chase Bancorp, Inc.* | | | 2,700 | | | | 32,130 | |
| Guaranty Financial Group, Inc.* | | | 12,600 | | | | 25,578 | |
| Home Federal Bancorp, Inc. | | | 2,900 | | | | 33,611 | |
| Kearny Financial Corp. | | | 5,400 | | | | 62,262 | |
| Meridian Interstate Bancorp, Inc.* | | | 3,000 | | | | 29,100 | |
| NASB Financial, Inc. | | | 900 | | | | 27,000 | |
| NewAlliance Bancshares, Inc. | | | 37,620 | | | | 519,156 | |
| Northwest Bancorp, Inc. | | | 5,290 | | | | 140,185 | |
| OceanFirst Financial Corp. | | | 3,300 | | | | 54,747 | |
| Ocwen Financial Corp.* | | | 10,760 | | | | 72,092 | |
| Oritani Financial Corp.* | | | 3,700 | | | | 63,196 | |
| PMI Group, Inc. (The) | | | 27,400 | | | | 68,226 | |
| Provident Financial Services, Inc. | | | 20,106 | | | | 294,754 | |
| Provident New York Bancorp | | | 14,275 | | | | 171,871 | |
| Radian Group, Inc. | | | 27,100 | | | | 97,560 | |
| Rockville Financial, Inc. | | | 2,200 | | | | 28,622 | |
| Roma Financial Corp. | | | 2,200 | | | | 32,010 | |
| TrustCo Bank Corp. NY | | | 25,508 | | | | 310,432 | |
| United Community Financial Corp. | | | 6,711 | | | | 31,475 | |
| United Financial Bancorp, Inc. | | | 6,000 | | | | 84,000 | |
| ViewPoint Financial Group | | | 3,800 | | | | 64,600 | |
| Waterstone Financial, Inc.* | | | 1,860 | | | | 15,345 | |
| Westfield Financial, Inc. | | | 11,528 | | | | 119,316 | |
| WSFS Financial Corp. | | | 2,209 | | | | 105,745 | |
| | | | | | | | | |
| | | | | | | | 4,793,935 | |
| | | | | | | | | |
| |
| |
Tobacco 0.2% |
| Alliance One International, Inc.* | | | 31,611 | | | | 105,581 | |
| Star Scientific, Inc.* | | | 22,200 | | | | 70,596 | |
| Universal Corp. | | | 8,532 | | | | 337,782 | |
| Vector Group Ltd. | | | 11,789 | | | | 201,002 | |
| | | | | | | | | |
| | | | | | | | 714,961 | |
| | | | | | | | | |
| |
| |
Trading Companies & Distributors 0.5% |
| Aceto Corp. | | | 8,600 | | | | 71,810 | |
| Aircastle Ltd. | | | 16,400 | | | | 113,980 | |
| Beacon Roofing Supply, Inc.* | | | 14,970 | | | | 204,790 | |
| DXP Enterprises, Inc.* | | | 2,400 | | | | 33,504 | |
| H&E Equipment Services, Inc.* | | | 5,900 | | | | 33,630 | |
| Houston Wire & Cable Co. | | | 6,000 | | | | 69,120 | |
| Interline Brands, Inc.* | | | 11,500 | | | | 122,360 | |
| Kaman Corp. | | | 8,908 | | | | 227,421 | |
| Lawson Products | | | 1,324 | | | | 39,455 | |
| Rush Enterprises, Inc., Class A* | | | 11,950 | | | | 111,972 | |
| TAL International Group, Inc. | | | 4,400 | | | | 72,864 | |
| Textainer Group Holdings Ltd. | | | 2,800 | | | | 30,884 | |
| Watsco, Inc. | | | 7,733 | | | | 317,749 | |
| | | | | | | | | |
| | | | | | | | 1,449,539 | |
| | | | | | | | | |
| |
| |
Transportation Infrastructure 0.0% |
| CAI International, Inc.* | | | 2,800 | | | | 22,176 | |
| | | | | | | | | |
| |
| |
Water Utility 0.3% |
| American States Water Co. | | | 5,846 | | | | 199,992 | |
| Cadiz, Inc.* | | | 4,400 | | | | 61,204 | |
| California Water Service Group | | | 6,597 | | | | 247,783 | |
| Connecticut Water Service, Inc. | | | 3,100 | | | | 82,150 | |
| Consolidated Water Co. Ltd. | | | 5,200 | | | | 73,788 | |
| Middlesex Water Co. | | | 4,900 | | | | 84,476 | |
| SJW Corp. | | | 4,745 | | | | 131,911 | |
| Southwest Water Co. | | | 8,925 | | | | 71,132 | |
| | | | | | | | | |
| | | | | | | | 952,436 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 0.2% |
| Centennial Communications Corp.* | | | 23,800 | | | | 84,728 | |
| FiberTower Corp.* | | | 34,380 | | | | 25,097 | |
| ICO Global Communications Holdings Ltd.* | | | 32,100 | | | | 52,644 | |
| iPCS, Inc.* | | | 5,800 | | | | 94,656 | |
| Syniverse Holdings, Inc.* | | | 17,300 | | | | 325,240 | |
| TerreStar Corp.* | | | 17,500 | | | | 14,175 | |
| USA Mobility, Inc. | | | 7,824 | | | | 75,502 | |
| Virgin Mobile USA, Inc., Class A* | | | 11,800 | | | | 11,682 | |
| | | | | | | | | |
| | | | | | | | 683,724 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 273,391,762 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Fund 0.0% |
| | | | | | | | | |
| | | | | | | | | |
Closed-End Fund 0.0% |
| Kayne Anderson Energy Development Co. | | | 3,700 | | | | 54,723 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Warrants 0.0%(b) (c) |
| | | | | | | | | |
| | | | | | | | | |
Electric Utility 0.0% |
| GreenHunter Energy, Inc. | | | 120 | | | | 0 | |
| | | | | | | | | |
2008 Annual Report 141
Statement of Investments (Continued)
October 31, 2008
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 4.6% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $13,155,896, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $13,418,924 | | $ | 13,155,808 | | | $ | 13,155,808 | |
| | | | | | | | | |
| | | | | |
Total Repurchase Agreement | | | 13,155,808 | |
| | | | | |
| | | | | |
Total Investments (Cost $418,194,155) (d) — 99.4% | | | 286,602,293 | |
Other assets in excess of liabilities — 0.6% | | | | | | | 1,816,800 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 288,419,093 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | All or a part of the security was pledged as collateral for futures contracts as of October 31, 2008. |
| |
| (b) | | Illiquid security. |
| |
| (c) | | Fair Valued Security. |
| |
| (d) | | See notes to statements of investments for tax unrealized appreciation/ (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
142 Annual Report 2008
As of October 31, 2008, the Fund’s open futures contracts were as follows:
| | | | | | | | | | | | | | | |
| | | | | | | Notional Value
| | Unrealized
|
Number of
| | | | | | Covered by
| | Appreciation/
|
| Contracts | | Long Contracts | | Expiration | | Contracts | | Depreciation |
| |
| 288 | | Russell 2000 | | | 12/19/08 | | | $ | 15,451,200 | | | ($ | 3,123,633 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | $ | 15,451,200 | | | ($ | 3,123,633 | ) |
| | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 143
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Small Cap Index Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $405,038,347) | | | $ | 273,446,485 | |
| Repurchase agreements, at value and cost | | | | 13,155,808 | |
| | | | | | |
| Total Investments | | | | 286,602,293 | |
| | | | | | |
| Cash | | | | 830,547 | |
| Interest and dividends receivable | | | | 216,013 | |
| Receivable for capital shares issued | | | | 228,998 | |
| Receivable for investments sold | | | | 812,735 | |
| Receivable for variation margin on futures contracts | | | | 551,676 | |
| Prepaid expenses and other assets | | | | 34,484 | |
| | | | | | |
| Total Assets | | | | 289,276,746 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 644,728 | |
| Payable for capital shares redeemed | | | | 84,150 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 41,344 | |
| Fund administration fees | | | | 29,468 | |
| Distribution fees | | | | 20,950 | |
| Trustee fees | | | | 651 | |
| Compliance program costs (Note 3) | | | | 1,455 | |
| Custodian fees | | | | 3,092 | |
| Other | | | | 31,815 | |
| | | | | | |
| Total Liabilities | | | | 857,653 | |
| | | | | | |
Net Assets | | | $ | 288,419,093 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 417,272,068 | |
| Accumulated undistributed net investment income | | | | 593,307 | |
| Accumulated net realized gains from investment and futures transactions | | | | 5,269,213 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (131,591,862 | ) |
| Net unrealized appreciation/(depreciation) from futures | | | | (3,123,633 | ) |
| | | | | | |
Net Assets | | | $ | 288,419,093 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 95,789,525 | |
| Class B Shares | | | | 286,977 | |
| Class C Shares | | | | 404,580 | |
| Class R Shares | | | | 690 | |
| Institutional Class Shares | | | | 191,937,321 | |
| | | | | | |
| Total | | | $ | 288,419,093 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
144 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Small Cap Index Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 11,615,070 | |
| Class B Shares | | | | 35,175 | |
| Class C Shares | | | | 49,714 | |
| Class R Shares | | | | 83 | |
| Institutional Class Shares | | | | 23,041,575 | |
| | | | | | |
| Total | | | | 34,741,617 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.25 | |
| Class B Shares (a) | | | $ | 8.15 | (c) |
| Class C Shares (b) | | | $ | 8.14 | |
| Class R Shares | | | $ | 8.24 | (c) |
| Institutional Class Shares | | | $ | 8.33 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 8.75 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 145
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Small Cap Index
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 630,323 | |
| Dividend income | | | | 4,511,120 | |
| Income from securities lending (Note 2) | | | | 11,655 | |
| Foreign tax withholding | | | | (189 | ) |
| | | | | | |
| Total Income | | | | 5,152,909 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 725,968 | |
| Fund administration fees | | | | 355,975 | |
| Distribution fees Class A | | | | 243,120 | |
| Distribution fees Class B | | | | 3,829 | |
| Distribution fees Class C | | | | 5,200 | |
| Distribution fees Class R | | | | 3 | |
| Administrative servicing fees Class A | | | | 95,603 | |
| Registration and filing fees | | | | 6,484 | |
| Professional fees | | | | 55,572 | |
| Printing fees | | | | 24,621 | |
| Trustee fees | | | | 18,533 | |
| Custodian fees | | | | 46,323 | |
| Other | | | | 80,467 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 1,661,698 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (7,974 | ) |
| Expenses reimbursed by Advisor | | | | (217,602 | ) |
| Administrator fees voluntarily waived | | | | (2,019 | ) |
| | | | | | |
| Net Expenses | | | | 1,434,103 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 3,718,806 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gains from investment transactions | | | | 14,335,596 | |
| Net realized losses from futures transactions | | | | (6,314,380 | ) |
| | | | | | |
| Net realized gains from investments and futures | | | | 8,021,216 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (160,525,104 | ) |
| Net change in unrealized appreciation/(depreciation) from futures | | | | (5,405,940 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments and futures | | | | (165,931,044 | ) |
| | | | | | |
| Net realized/unrealized losses from investments and futures | | | | (157,909,828 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (154,191,022 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
146 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Small Cap Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 3,718,806 | | | | $ | 7,728,980 | |
| Net realized gains from investment and futures transactions | | | | 8,021,216 | | | | | 94,645,937 | (a) |
| Net change in unrealized appreciation/(depreciation) from investments and futures | | | | (165,931,044 | ) | | | | (47,882,543 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (154,191,022 | ) | | | | 54,492,374 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (567,435 | ) | | | | (1,745,690 | ) |
| Class B | | | | (308 | ) | | | | (3,374 | ) |
| Class C | | | | (260 | ) | | | | (4,621 | ) |
| Class R | | | | (4 | ) | | | | (12 | )(b) |
| Institutional Class | | | | (2,418,812 | ) | | | | (7,484,258 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (3,375,848 | ) | | | | (11,697,910 | ) |
| Class B | | | | (13,116 | ) | | | | (45,975 | ) |
| Class C | | | | (21,384 | ) | | | | (54,254 | ) |
| Class R | | | | (31 | ) | | | | (18 | )(b) |
| Institutional Class | | | | (8,641,752 | ) | | | | (51,490,515 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (15,038,950 | ) | | | | (72,526,627 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 12,051,436 | | | | | (169,904,551 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (157,178,536 | ) | | | | (187,938,804 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 445,597,629 | | | | | 633,536,433 | |
| | | | | | | | | | | |
| End of period | | | $ | 288,419,093 | | | | $ | 445,597,629 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 593,307 | | | | $ | 224,614 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 53,368,760 | | | | $ | 39,870,259 | |
| Dividends reinvested | | | | 3,829,930 | | | | | 13,260,263 | |
| Cost of shares redeemed (c) | | | | (32,807,583 | ) | | | | (39,956,236 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 24,391,107 | | | | | 13,174,286 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 39,627 | | | | | 13,586 | |
| Dividends reinvested | | | | 12,389 | | | | | 46,482 | |
| Cost of shares redeemed | | | | (39,671 | ) | | | | (79,534 | ) |
| | | | | | | | | | | |
| Total Class B | | | | 12,345 | | | | | (19,466 | ) |
| | | | | | | | | | | |
| |
| (a) | Includes realized gain as a result of a redemption in kind.
|
| |
| (b) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007.
|
| |
| (c) | Includes redemption fees — see Note 4 to Financial Statements.
|
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 147
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Small Cap Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 266,109 | | | | $ | 174,370 | |
| Dividends reinvested | | | | 11,055 | | | | | 33,679 | |
| Cost of shares redeemed | | | | (254,095 | ) | �� | | | (86,878 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 23,069 | | | | | 121,171 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 1,000 | (b) |
| Dividends reinvested | | | | 35 | | | | | 30 | (b) |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class R | | | | 35 | | | | | 1,030 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 57,244,248 | | | | | 95,999,591 | |
| Dividends reinvested | | | | 11,060,523 | | | | | 58,974,706 | |
| Redemptions in-kind | | | | – | | | | | (320,668,228 | ) |
| Cost of shares redeemed (c) | | | | (80,679,891 | ) | | | | (17,487,641 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | (12,375,120 | ) | | | | (183,181,572 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 12,051,436 | | | | $ | (169,904,551 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 4,809,026 | | | | | 3,038,668 | |
| Reinvested | | | | 322,044 | | | | | 1,025,774 | |
| Redeemed | | | | (3,006,040 | ) | | | | (3,059,976 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 2,125,030 | | | | | 1,004,466 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 3,385 | | | | | 1,075 | |
| Reinvested | | | | 1,043 | | | | | 3,626 | |
| Redeemed | | | | (3,842 | ) | | | | (6,199 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | 586 | | | | | (1,498 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 24,827 | | | | | 13,634 | |
| Reinvested | | | | 930 | | | | | 2,633 | |
| Redeemed | | | | (25,488 | ) | | | | (6,895 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 269 | | | | | 9,372 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 78 | (b) |
| Reinvested | | | | 3 | | | | | 2 | (b) |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class R Shares | | | | 3 | | | | | 80 | |
| | | | | | | | | | | |
| | |
| (b) | | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
| | |
| (c) | | Includes redemption fees — see Note 4 to Financial Statements. |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
148 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Small Cap Index Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 5,161,621 | | | | | 7,312,573 | |
| Reinvested | | | | 924,436 | | | | | 4,520,510 | |
| Redemptions in-kind | | | | – | | | | | (24,403,975 | ) |
| Redeemed | | | | (7,279,613 | ) | | | | (1,340,211 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | (1,193,556 | ) | | | | (13,911,103 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | 932,332 | | | | | (12,898,683 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 149
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Small Cap Index Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .09 | | | | 0 | .08 | | | | (4 | .48) | | | | (4 | .40) | | | | (0 | .06) | | | | (0 | .38) | | | | (0 | .44) | | | $ | 8 | .25 | | | | (34 | .65%) | | | $ | 95,789,525 | | | | | 0 | .65% | | | | 0 | .78% | | | | 0 | .71% | | | | 37 | .88% | | |
| Year Ended October 31, 2007 | | | $ | 13 | .47 | | | | 0 | .14 | | | | 0 | .94 | | | | 1 | .08 | | | | (0 | .18) | | | | (1 | .28) | | | | (1 | .46) | | | $ | 13 | .09 | | | | 8 | .36% | | | $ | 124,188,723 | | | | | 0 | .71% | | | | 1 | .03% | | | | 0 | .75% | | | | 19 | .60% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .90 | | | | 0 | .15 | | | | 2 | .06 | | | | 2 | .21 | | | | (0 | .15) | | | | (0 | .49) | | | | (0 | .64) | | | $ | 13 | .47 | | | | 19 | .14% | | | $ | 114,280,835 | | | | | 0 | .70% | | | | 1 | .21% | | | | 0 | .75% | | | | 31 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .15 | | | | 0 | .10 | | | | 1 | .20 | | | | 1 | .30 | | | | (0 | .10) | | | | (0 | .45) | | | | (0 | .55) | | | $ | 11 | .90 | | | | 11 | .67% | | | $ | 65,750,869 | | | | | 0 | .69% | | | | 0 | .90% | | | | 0 | .77% | | | | 24 | .14% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .25 | | | | 0 | .06 | | | | 1 | .06 | | | | 1 | .12 | | | | (0 | .05) | | | | (0 | .17) | | | | (0 | .22) | | | $ | 11 | .15 | | | | 11 | .08% | | | $ | 62,688,382 | | | | | 0 | .69% | | | | 0 | .56% | | | | 0 | .77% | | | | 24 | .10% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 12 | .98 | | | | 0 | .02 | | | | (4 | .46) | | | | (4 | .44) | | | | (0 | .01) | | | | (0 | .38) | | | | (0 | .39) | | | $ | 8 | .15 | | | | (35 | .16%) | | | $ | 286,977 | | | | | 1 | .30% | | | | 0 | .22% | | | | 1 | .36% | | | | 37 | .88% | | |
| Year Ended October 31, 2007 | | | $ | 13 | .36 | | | | 0 | .06 | | | | 0 | .93 | | | | 0 | .99 | | | | (0 | .09) | | | | (1 | .28) | | | | (1 | .37) | | | $ | 12 | .98 | | | | 7 | .68% | | | $ | 448,885 | | | | | 1 | .30% | | | | 0 | .45% | | | | 1 | .34% | | | | 19 | .60% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .82 | | | | 0 | .08 | | | | 2 | .02 | | | | 2 | .10 | | | | (0 | .07) | | | | (0 | .49) | | | | (0 | .56) | | | $ | 13 | .36 | | | | 18 | .38% | | | $ | 482,293 | | | | | 1 | .30% | | | | 0 | .62% | | | | 1 | .35% | | | | 31 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .08 | | | | 0 | .03 | | | | 1 | .19 | | | | 1 | .22 | | | | (0 | .03) | | | | (0 | .45) | | | | (0 | .48) | | | $ | 11 | .82 | | | | 10 | .98% | | | $ | 444,173 | | | | | 1 | .29% | | | | 0 | .28% | | | | 1 | .37% | | | | 24 | .14% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .21 | | | | (0 | .01) | | | | 1 | .05 | | | | 1 | .04 | | | | – | | | | | (0 | .17) | | | | (0 | .17) | | | $ | 11 | .08 | | | | 10 | .28% | | | $ | 424,121 | | | | | 1 | .29% | | | | (0 | .04%) | | | | 1 | .37% | | | | 24 | .10% | | |
150 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Small Cap Index Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 12 | .94 | | | | 0 | .02 | | | | (4 | .44) | | | | (4 | .42) | | | | – | | | | | (0 | .38) | | | | (0 | .38) | | | $ | 8 | .14 | | | | (35 | .06%) | | | $ | 404,580 | | | | | 1 | .30% | | | | 0 | .25% | | | | 1 | .36% | | | | 37 | .88% | | |
| Year Ended October 31, 2007 | | | $ | 13 | .33 | | | | 0 | .06 | | | | 0 | .93 | | | | 0 | .99 | | | | (0 | .10) | | | | (1 | .28) | | | | (1 | .38) | | | $ | 12 | .94 | | | | 7 | .74% | | | $ | 639,822 | | | | | 1 | .30% | | | | 0 | .42% | | | | 1 | .34% | | | | 19 | .60% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .80 | | | | 0 | .06 | | | | 2 | .05 | | | | 2 | .11 | | | | (0 | .09) | | | | (0 | .49) | | | | (0 | .58) | | | $ | 13 | .33 | | | | 18 | .40% | | | $ | 534,348 | | | | | 1 | .30% | | | | 0 | .53% | | | | 1 | .35% | | | | 31 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .08 | | | | 0 | .03 | | | | 1 | .19 | | | | 1 | .22 | | | | (0 | .05) | | | | (0 | .45) | | | | (0 | .50) | | | $ | 11 | .80 | | | | 10 | .99% | | | $ | 199,527 | | | | | 1 | .29% | | | | 0 | .23% | | | | 1 | .37% | | | | 24 | .14% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .20 | | | | – | | | | | 1 | .06 | | | | 1 | .06 | | | | (0 | .01) | | | | (0 | .17) | | | | (0 | .18) | | | $ | 11 | .08 | | | | 10 | .48% | | | $ | 39,105 | | | | | 1 | .29% | | | | (0 | .04%) | | | | 1 | .37% | | | | 24 | .10% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .08 | | | | 0 | .08 | | | | (4 | .49) | | | | (4 | .41) | | | | (0 | .05) | | | | (0 | .38) | | | | (0 | .43) | | | $ | 8 | .24 | | | | (34 | .72%) | | | $ | 690 | | | | | 0 | .71% | | | | 0 | .78% | | | | 0 | .79% | | | | 37 | .88% | | |
| Period Ended October 31, 2007 (f) | | | $ | 12 | .75 | | | | 0 | .07 | | | | 0 | .64 | | | | 0 | .71 | | | | (0 | .15) | | | | (0 | .23) | | | | (0 | .38) | | | $ | 13 | .08 | | | | 5 | .64% | | | $ | 1,056 | | | | | 0 | .68% | | | | 0 | .84% | | | | 0 | .70% | | | | 19 | .60% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 13 | .22 | | | | 0 | .13 | | | | (4 | .54) | | | | (4 | .41) | | | | (0 | .10) | | | | (0 | .38) | | | | (0 | .48) | | | $ | 8 | .33 | | | | (34 | .45%) | | | $ | 191,937,321 | | | | | 0 | .30% | | | | 1 | .25% | | | | 0 | .36% | | | | 37 | .88% | | |
| Year Ended October 31, 2007 | | | $ | 13 | .59 | | | | 0 | .20 | | | | 0 | .94 | | | | 1 | .14 | | | | (0 | .23) | | | | (1 | .28) | | | | (1 | .51) | | | $ | 13 | .22 | | | | 8 | .76% | | | $ | 320,319,143 | | | | | 0 | .30% | | | | 1 | .53% | | | | 0 | .33% | | | | 19 | .60% | | |
| Year Ended October 31, 2006 | | | $ | 12 | .00 | | | | 0 | .20 | | | | 2 | .07 | | | | 2 | .27 | | | | (0 | .19) | | | | (0 | .49) | | | | (0 | .68) | | | $ | 13 | .59 | | | | 19 | .60% | | | $ | 518,238,957 | | | | | 0 | .30% | | | | 1 | .61% | | | | 0 | .35% | | | | 31 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 11 | .24 | | | | 0 | .15 | | | | 1 | .21 | | | | 1 | .36 | | | | (0 | .15) | | | | (0 | .45) | | | | (0 | .60) | | | $ | 12 | .00 | | | | 12 | .11% | | | $ | 348,509,477 | | | | | 0 | .29% | | | | 1 | .28% | | | | 0 | .37% | | | | 24 | .14% | | |
| Year Ended October 31, 2004 | | | $ | 10 | .32 | | | | 0 | .10 | | | | 1 | .09 | | | | 1 | .19 | | | | (0 | .10) | | | | (0 | .17) | | | | (0 | .27) | | | $ | 11 | .24 | | | | 11 | .51% | | | $ | 210,322,134 | | | | | 0 | .29% | | | | 0 | .97% | | | | 0 | .37% | | | | 24 | .10% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts shown as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 151
Notes to Financial Statements
October 31, 2008
1. Organization
Nationwide Mutual Funds (the “Trust”) is an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust dated October 28, 2004, as amended to date. The Trust, originally created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, was redomesticated as a Delaware statutory trust on February 28, 2005. The redomestication was a change in statutory status and did not affect the operations of the Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2008, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. The Trust operates thirty-six (36) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the five (5) funds listed below (each, a “Fund”; collectively, the “Funds”):
| | |
| | - | Nationwide Bond Index Fund (“Bond Index”) |
| | - | Nationwide International Index Fund (“International Index”) |
| | - | Nationwide Mid Cap Market Index Fund (“Mid Cap Market Index”) |
| | - | Nationwide S&P 500 Index Fund (“S&P 500 Index”) |
| | - | Nationwide Small Cap Index Fund (“Small Cap Index”) |
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates and those differences could be material.
Securities for which market quotations are readily available are valued at current market value as of “Valuation Time.” Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern time). Equity securities are valued at the last quoted sale price or, if there is no sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Prices are taken from the primary market or exchange in which each security trades. Investment companies are valued at net asset value (“NAV”) as reported by such company.
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service, the use of which has been approved by the Board of Trustees. Short-term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Funds’ investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees. The “Fair Value” of these securities is determined in good faith by taking into account
152 Annual Report 2008
relevant factors and surrounding circumstances. Methods utilized to obtain a “Fair Value” may include the following non-exclusive list of acceptable methods: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the yield-to-maturity for debt issues; or (iv) a consolidation of the methods. The Board of Trustees’ Valuation & Operations Committee considers a non-exclusive list of factors to arrive at the appropriate method of determining “Fair Value.” For example, fair value determinations are required for securities whose value is affected by a “significant” event that materially affects the value of a domestic or foreign security which occurs subsequent to the time of the close of the principal market on which such domestic or foreign security trades and before the Valuation Time (i.e., a “subsequent event”). Typically, this will involve events occurring after the close of a foreign market on which a security trades and before the next Valuation Time.
The Funds holding foreign equity securities (the “Foreign Equity Funds”) value foreign securities at fair value in the circumstances described below. Generally, trading in foreign securities markets is completed each day at various times prior to the Valuation Time. Due to the time differences between the closings of the relevant foreign securities exchanges and the Valuation Time for the Foreign Equity Funds, the Foreign Equity Funds will fair value their foreign investments when it is determined that the market quotations for the foreign investments either are not readily available or are unreliable and, therefore, do not represent fair value. When the fair value prices are utilized, these prices will attempt to reflect the impact of the U.S. financial markets’ perceptions and trading activities on the Foreign Equity Funds’ foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Trustees has determined that movements in relevant indices or other appropriate market indicators, after the close of the foreign securities exchanges, may demonstrate that market quotations are unreliable, and may trigger fair value pricing for certain securities. Consequently, fair valuation of portfolio securities may occur on a daily basis.
| |
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. The Funds may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
| |
| (c) | Foreign Currency Transactions |
The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.
2008 Annual Report 153
Notes to Financial Statements (Continued)
October 31, 2008
| |
| (d) | Forward Foreign Currency Contracts |
Certain Funds may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date.
Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging their existing portfolio securities or securities that the Funds intend to purchase against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes; however, in those instances, the aggregate initial margin and premiums required to establish a Fund’s positions may not exceed 5% of that Fund’s NAV after taking into account unrealized profits and unrealized losses on any such contract it has entered into.
Upon entering into a futures contract, each of the Funds is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin” payments, are made each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. A gain or loss equal to the variation margin is recognized on a daily basis. Futures contracts are valued daily at their last quoted sale price.
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future.
Should market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions for hedging purposes involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the value of the underlying hedged assets.
| |
| (f) | Mortgage Dollar Rolls |
Certain Funds may enter into mortgage “dollar rolls” in which a Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. Mortgage dollar rolls are referred to as TBA’s on the Statement of Investments of the applicable Funds. During the roll period, the Fund foregoes principal and interest paid on the mortgage-backed securities. Each mortgage dollar roll is treated as a financing transaction; therefore, any gain or loss is considered unrealized until the roll reaches completion. Risks may arise due to the delayed payment date and the potential inability of counterparties to complete the transaction. Income is generated as consideration for entering into these transactions and is included in interest income on the Statement of Operations.
| |
| (g) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
154 Annual Report 2008
To generate additional income, each of the Funds may lend their respective portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions provided that (1) the borrower delivers cash or securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter shall require the borrower to mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Funds receive payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Funds’ investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank serves as custodian for the securities lending program of the Funds. JPMorgan Chase Bank receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
As of October 31, 2008, the following Fund(s) had securities with the following values on loan:
| | | | | | | | | | | | | |
| | | | | Value of
| | Value of
| | |
| | | Fund | | Loaned Securities | | Collateral | | |
| |
| | | International Index | | $ | 118,463,375 | | | $ | 124,306,224 | | | |
| |
| |
| |
| (i) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for the Funds. For all Funds, distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary in nature. Permanent differences (i.e., reclassification of market discounts, foreign gain/loss, and paydowns) are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the respective Funds. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, these excesses are reported as distributions of paid-in-capital.
It is the policy of each Fund to qualify or to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
The Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax
2008 Annual Report 155
Notes to Financial Statements (Continued)
October 31, 2008
position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable) and an increase in a deferred tax liability (or a reduction in a deferred tax asset). Adoption of FIN 48 was required no later than the last business day of the first financial statement reporting period for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Accordingly, the Funds were required to implement FIN 48 in their NAV per share calculations on April 30, 2008. Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. Each Fund files U.S. federal income tax returns and, if applicable, returns in various state or foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service. The adoption of FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to each Fund’s NAV and financial statements.
| |
| (k) | Allocation of Expenses, Income, and Gains and Losses |
Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the Trust. For each Fund, except Bond Index, the method for allocating income, fund level expenses, and realized and unrealized gains or losses is based on the fair value of shares outstanding relative to net assets. Under this method, each class of shares participates based on the total NAV of that class’s shares in proportion to the total net assets of the Fund. For the Bond Index, the allocation method used is based on the fair value of settled shares outstanding. Under this method, earnings are allocated based on the fair value of settled shares. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA” or the “Adviser”) manages the investment of the assets and supervises the daily business affairs of the Funds. NFA is a wholly-owned subsidiary of Nationwide Financial Services, Inc. (“NFS”), whose parent company is Nationwide Corporation. NFA provides investment management evaluation services in initially selecting and monitoring, on an ongoing basis, the performance of BlackRock Investment Management LLC, the subadviser for the Funds. BlackRock Investment Management LLC manages each of its respective Fund’s investments and has the responsibility for making all investment decisions for the Funds.
Under the terms of the Investment Advisory Agreement, each Fund pays NFA an investment advisory fee based on that Fund’s average daily net assets. From these fees, pursuant to the subadvisory agreement, NFA pays fees
156 Annual Report 2008
to the subadviser. For the year ended October 31, 2008, the Funds paid investment advisory fees to NFA according to the schedule below:
| | | | | | | | | | |
| Fund | | Fee Schedule | | Fees | | |
| |
| Bond Index | | Up to $1.5 billion | | | 0.22 | % | | | |
| | | $1.5 billion up to $3 billion | | | 0.21 | % | | | |
| | | On $3 billion and more | | | 0.20 | % | | | |
| |
| |
| International Index | | Up to $1.5 billion | | | 0.27 | % | | | |
| | | $1.5 billion up to $3 billion | | | 0.26 | % | | | |
| | | On $3 billion and more | | | 0.25 | % | | | |
| |
| |
| Mid Cap Market Index | | Up to $1.5 billion | | | 0.22 | % | | | |
| | | $1.5 billion up to $3 billion | | | 0.21 | % | | | |
| | | On $3 billion and more | | | 0.20 | % | | | |
| |
| |
| S&P 500 Index | | Up to $1.5 billion | | | 0.13 | % | | | |
| | | $1.5 billion up to $3 billion | | | 0.12 | % | | | |
| | | $3 billion more up to $4.5 billion | | | 0.11 | % | | | |
| | | On $4.5 billion and more | | | 0.10 | % | | | |
| |
| |
| Small Cap Index | | Up to $1.5 billion | | | 0.20 | % | | | |
| | | $1.5 billion up to $3 billion | | | 0.19 | % | | | |
| | | On $3 billion and more | | | 0.18 | % | | | |
| |
| |
From such fees, pursuant to the subadvisory agreements, NFA paid the subadviser $4,161,592 for the year ended October 31, 2008.
NFA and the Funds have entered into written Expense Limitation Agreements, that limit operating expenses (excluding any taxes, interest, brokerage fees, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by the Fund in connection with any merger or reorganization and may exclude other non-routine expenses not incurred in the ordinary course of the Fund’s business) from exceeding the amounts listed in the table below until at least May 1, 2009:
| | | | | | | | | | | | | |
| | | Fund | | Classes | | Amount | | |
| |
| | | Bond Index(a) | | | All Classes | | | | 0.32% | | | |
| |
| |
| | | International Index(a) | | | All Classes | | | | 0.37% | | | |
| |
| |
| | | Mid Cap Market Index | | | All Classes | | | | 0.32% | | | |
| |
| |
| | | S&P 500 Index | | | All Classes | | | | 0.23% | | | |
| |
| |
| | | Small Cap Index(a) | | | All Classes | | | | 0.30% | | | |
| |
| |
| | |
| (a) | | The Expense Limitation Agreement also states that the expense ratio for each class, except class R, will not exceed 4.00% through March 1, 2011. |
NFA may request and receive reimbursement from the Funds for advisory fees waived and other expenses reimbursed by NFA pursuant to the Expense Limitation Agreement at a date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the Class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Except as provided for in the Expense Limitation Agreements, reimbursement of amounts previously waived or assumed by NFA is not permitted.
2008 Annual Report 157
Notes to Financial Statements (Continued)
October 31, 2008
As of October 31, 2008, the cumulative potential reimbursements of the following Funds, based on reimbursements which expire within three years from the fiscal year in which the corresponding reimbursements to the Fund were made for expenses reimbursed by NFA, would be:
| | | | | | | | | | | | | | | |
| | | | | | | Amount
| | |
| | | Amount Fiscal Year
| | Amount
| | Fiscal Year
| | |
| Fund | | 2006 | | Fiscal Year 2007 | | 2008 | | |
| |
| Bond Index | | $ | 663,758 | | | $ | 439,605 | | | $ | 527,490 | | | |
| |
| |
| International Index | | | 631,723 | | | | 386,490 | | | | 1,015,839 | | | |
| |
| |
| Mid Cap Market Index | | | 509,553 | | | | 319,532 | | | | 404,937 | | | |
| |
| |
| S&P 500 Index | | | 808,395 | | | | 375,580 | | | | 947,881 | | | |
| |
| |
| Small Cap Index | | | 222,353 | | | | 164,560 | | | | 217,602 | | | |
| |
| |
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Funds’ principal underwriter, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. NFD is a wholly-owned subsidiary of NFS Distributors Inc. (“NFSDI”). These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A
| | Class B
| | Class C
| | Class R
| | Local Fund
| | Service Class
| | |
| Fund | | Shares | | Shares | | Shares | | Shares | | Shares | | Shares | | |
| |
| Bond Index | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | |
| |
| |
| International Index | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | |
| |
| |
| Mid Cap Market Index | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | |
| |
| |
| S&P 500 Index | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | 0.07% | | | | 0.15% | | | |
| |
| |
| Small Cap Index | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | | N/A | | | |
| |
| |
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A shares. These fees are deducted from and are not included in proceeds from sales of Class A shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A shares of the Funds. NFD also receives fees for services as principal underwriter for Class B shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B shares, which may cause the current value of a shareholder’s account to fall below the total purchase payments. The CDSC, if applicable, will be imposed on redemptions of Class B and shares made within six years of the purchase. Class C shares have a CDSC fee of 1% imposed on redemptions of Class C shares of the Funds made within one year of purchase. For the year ended October 31, 2008, NFD received commissions of $62,129 from front-end sales charges of Class A shares and from CDSC fees from Class B and Class C shares of the Funds, of which $4,154 was re-allowed to affiliated broker-dealers of the Funds.
Under the terms of a Fund Administration and Transfer Agency Agreement, Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFSDI, provides various administrative and accounting services for the Funds, and serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. The fees for the services provided under this agreement are calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees are then allocated proportionately among all funds within the Trust in relation to the average daily net assets of each Fund and are paid to NFM.
158 Annual Report 2008
| | | | | | | | | |
| | | Combined Fee Schedule* | | | | |
| |
| | | Up to $1 billion | | | 0.26% | | | |
| |
| |
| | | $1 billion to $3 billion | | | 0.19% | | | |
| |
| |
| | | $3 billion to $4 billion | | | 0.15% | | | |
| |
| |
| | | $4 billion to $5 billion | | | 0.08% | | | |
| |
| |
| | | $5 billion to $10 billion | | | 0.05% | | | |
| |
| |
| | | $10 billion to $12 billion | | | 0.03% | | | |
| |
| |
| | | $12 billion or more | | | 0.02% | | | |
| |
| |
| | |
| * | | The assets of the Nationwide Investor Destinations Aggressive, Nationwide Investor Destinations Moderately Aggressive, Nationwide Investor Destinations Moderate, Nationwide Investor Destinations Moderately Conservative and Nationwide Investor Destinations Conservative Funds (collectively, the “Investor Destinations Funds”) and the Nationwide Destination 2010, Nationwide Destination 2015, Nationwide Destination 2020, Nationwide Destination 2025, Nationwide Destination 2030, Nationwide Destination 2035, Nationwide Destination 2040, Nationwide Destination 2045, Nationwide Destination 2050, and Nationwide Retirement Income Funds (collectively, the “Target Destination Funds”) are excluded from the Trust asset level amount in order to calculate this asset based fee. The Investor Destinations Funds and the Target Destination Funds do not pay any part of this fee. |
NFA and NFM have entered into agreements with Citi Fund Services Ohio, Inc. (“Citi”), pursuant to which Citi provides sub-administration and sub-transfer agency services, respectively, to the Funds.
NFA and Citi have agreed to designate certain sub-transfer agency agreements NFA enters into with respect to the Funds as “Qualifying Sub-TA Agreements.” With respect to Qualifying Sub-TA Agreements, Citi will credit to NFA an amount equal to the lesser of (i) the actual amount NFA is charged by the sub-transfer agent under the applicable Qualifying Sub-TA Agreement or (ii) $10 per investor account; however, the aggregate amount paid with regard to all Qualifying Sub-TA Agreements, regardless of whether option (i) or (ii) applies, shall not exceed $200,000 per annum. Citi will calculate and credit such amounts to NFA’s fees on a monthly basis. All amounts will be credited to each applicable Fund on a monthly basis.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, NFS and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquiries regarding the Funds; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Class R, Institutional Service Class, and Service Class shares of each of the Funds.
For the year ended October 31, 2008, NFS received the following amounts in administrative services fees from each Fund:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Bond Index | | $ | 104,950 | | | |
| |
| |
| | | International Index | | | 372,404 | | | |
| |
| |
| | | Mid Cap Market Index | | | 269,591 | | | |
| |
| |
| | | S&P 500 Index | | | 1,607,060 | | | |
| |
| |
| | | Small Cap Index | | | 137,944 | | | |
| |
| |
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, by and among NFA, the Audit Committee of the Board of Trustees and the Trust, the Board of Trustees has agreed to reimburse NFA for certain costs related to the Funds’ portion of ongoing
2008 Annual Report 159
Notes to Financial Statements (Continued)
October 31, 2008
administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the year ended October 31, 2008, the Funds’ portion of such costs amounted to $57,200.
4. Short-Term Trading Fees
The Funds assess a 2.00% redemption fee on all classes of shares that are purchased and are sold or exchanged within seven calendar days of purchase. The redemption fee, if any, is paid directly to the applicable Fund class and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.
For the year ended October 31, 2008, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Institutional
| | Local
| | Service
| | Institutional
| | | | | | | | | | |
| Fund | | A | | B | | C | | R | | Service Class | | Class | | Class | | Class | | | | | | | | | | |
| |
| Bond Index | | $ | 646 | | | $ | — | | | $ | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | $ | — | | | | | | | | | | | | | | | | | | | |
| |
| |
| International Index | | | 9 | | | | — | | | | — | | | $ | — | | | | N/A | | | | N/A | | | | N/A | | | | 8 | | | | | | | | | | | | | | | | | | | |
| |
| |
| Mid Cap Market Index | | | 220 | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | | | | | | | | | | | | | | | | |
| |
| |
| S&P 500 Index | | | 1,135 | | | | — | | | | — | | | | — | | | $ | — | | | $ | — | | | $ | — | | | | 236 | | | | | | | | | | | | | | | | | | | |
| |
| |
| Small Cap Index | | | 97 | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | 444 | | | | | | | | | | | | | | | | | | | |
| |
| |
For the year ended October 31, 2007, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Institutional
| | Local
| | Service
| | Institutional
| | | | | | | | | | |
| Fund | | A | | B | | C | | R | | Service Class | | Class | | Class | | Class | | | | | | | | | | |
| |
| Bond Index | | $ | 803 | | | $ | — | | | $ | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | $ | — | | | | | | | | | | | | | | | | | | | |
| |
| |
| International Index | | | 5,381 | | | | — | | | | — | | | $ | — | | | | N/A | | | | N/A | | | | N/A | | | | 82 | | | | | | | | | | | | | | | | | | | |
| |
| |
| Mid Cap Market Index | | | 2,662 | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | | | | | | | | | | | | | | | | |
| |
| |
| S&P 500 Index | | | 740 | | | | 320 | | | | — | | | | — | | | $ | — | | | $ | — | | | $ | 2,720 | | | | — | | | | | | | | | | | | | | | | | | | |
| |
| |
| Small Cap Index | | | 66 | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | 742 | | | | | | | | | | | | | | | | | | | |
| |
| |
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Funds’ custodian bank, permitting the Trust to borrow up to $100,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. The interest costs, if any, would be shown on the Statement of Operations. No compensating balances are required under the terms of the line of credit. The line of credit is renewed annually, expiring on July 23, 2009, with a commitment fee of 0.07% per year on $100,000,000. There are three (3) other lenders participating in this arrangement. Advances taken by the Funds under this arrangement would be primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. There were no borrowings under this line of credit during the year ended October 31, 2008.
The Trust’s custodian bank has agreed to reduce the bank’s fees (earnings credits) when the Funds of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those funds that use DDAs based on the number of open shareholder accounts in each Fund. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the
160 Annual Report 2008
excess is applied towards custody account charges related to the safeguarding of assets for the funds that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
6. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Bond Index | | $ | 1,193,146,574 | | | $ | 1,524,105,751 | | | |
| |
| |
| | | International Index | | | 262,018,869 | | | | 423,718,682 | | | |
| |
| |
| | | Mid Cap Market Index | | | 246,037,101 | | | | 228,329,407 | | | |
| |
| |
| | | S&P 500 Index | | | 264,060,245 | | | | 228,962,826 | | | |
| |
| |
| | | Small Cap Index | | | 152,152,219 | | | | 130,117,678 | | | |
| |
| |
Purchases and sales of U.S. Government securities for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Bond Index | | $ | 977,024,430 | | | $ | 980,634,406 | | | |
| |
| |
7. Portfolio Investment Risks
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries.
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and a high price volatility with respect to securities of issuers from developing countries.
8. Indemnifications
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered into Indemnification Agreements with its Trustees and certain of its Officers. Trust Officers receive no compensation from the Trust for serving as its Officers. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum liability under these arrangements is unknown, as this would involve future claims that may be made against the Trust. Based on experience however, the Trust expects that risk of loss to be remote.
9. New Accounting Pronouncements
In September 2006, the FASB issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current accounting principles generally accepted in the United States of America
2008 Annual Report 161
Notes to Financial Statements (Continued)
October 31, 2008
from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of October 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about each Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on each Fund’s financial statements and related disclosures.
In September 2008, FASB Staff Position FAS 133-1 and FIN 45-4, “Disclosures about Credit Derivates and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (the “Amendment”) was issued and is effective for annual and interim reporting periods ending after November 15, 2008. The Amendment requires enhanced disclosures regarding a fund’s credit derivatives holdings and hybrid financial instruments containing embedded credit derivatives. Management is currently evaluating what impact the adoption of the Amendment will have on each Fund’s financial statement disclosure.
10. Other
During the year ended October 31, 2007, the Bond Index Fund, Mid Cap Index Fund, S&P 500 Index Fund and Small Cap Index Fund delivered securities of the Funds in exchange for the redemption of Institutional Shares (redemption in- kind). Cash and securities were transferred for redemptions at a market value of $1,412,594,323, $609,836,722, $1,387,369,746 and $320,668,228 for the Bond Index Fund, Mid Cap Index, S&P 500 Index Fund, and Small Cap Index Fund respectively. For financial reporting purposes, the Bond Index Fund, Mid Cap Index, S&P 500 Index Fund and Small Cap Index Fund recorded net realized gains (losses) of $(5,987,093), $146,024,439, $362,895,382 and $63,889,918, respectively, in connection with the transactions. However, for tax purposes, the transactions received tax-free treatment. These permanent book to tax differences were reclassified within the components of net assets in accordance with the Funds’ accounting policies, more fully disclosed in note 2. During the year ended October 31, 2008, the Funds did not have any in-kind transactions.
At October 31, 2008, the Funds had individual shareholder accounts and/or omnibus shareholder accounts (comprised of a group of individual shareholders), which amounted to more than 10% of the total shares outstanding of the Funds as detailed below.
| | | | | | | | | | | | | |
| | | Fund | | % of Shares | | Number of Accounts | | |
| |
| | | Bond Index | | | 83% | | | | 4 | | | |
| |
| |
| | | International Index | | | 81% | | | | 5 | | | |
| |
| |
| | | Mid Cap Market Index | | | 87% | | | | 4 | | | |
| |
| |
| | | S&P 500 Index | | | 84% | | | | 4 | | | |
| |
| |
| | | Small Cap Index | | | 93% | | | | 4 | | | |
| |
| |
Market Conditions
Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the NAV of many mutual funds, including these Funds. Such events during this period have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business and/or whose securities are or may be
162 Annual Report 2008
held by the Funds. The potential investment of each Fund’s investments in these issuers, and the financial sector in general, as reflected in each Fund’s schedule of investments, may expose investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
11. Federal Tax Information
The tax character of distributions paid during the fiscal year ended October 31, 2008, was as follows: (Total distributions paid may differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Bond Index | | $ | 47,610,383 | | | $ | — | | | $ | 47,610,383 | | | | | | | $ | 47,610,383 | | | |
| |
| |
| International Index | | | 84,192,400 | | | | 55,158,041 | | | | 139,350,441 | | | | | | | | 139,350,441 | | | |
| |
| |
| Mid Cap Market Index | | | 10,390,861 | | | | 30,636,374 | | | | 41,027,235 | | | | | | | | 41,027,235 | | | |
| |
| |
| S&P 500 Index | | | 45,063,871 | | | | 30,562,249 | | | | 75,626,120 | | | | | | | | 75,626,120 | | | |
| |
| |
| Small Cap Index | | | 6,778,773 | | | | 8,260,177 | | | | 15,038,950 | | | | | | | | 15,038,950 | | | |
| |
| |
The tax character of distributions paid during the fiscal year ended October 31, 2007, was as follows: (Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Bond Index | | $ | 84,677,630 | | | $ | — | | | $ | 84,677,630 | | | | | | | $ | 84,677,630 | | | |
| |
| |
| International Index | | | 77,264,805 | | | | 38,892,203 | | | | 116,157,008 | | | | | | | | 116,157,008 | | | |
| |
| |
| Mid Cap Market Index | | | 40,660,929 | | | | 100,808,907 | | | | 141,469,836 | | | | | | | | 141,469,836 | | | |
| |
| |
| S&P 500 Index | | | 57,913,412 | | | | 10,738,408 | | | | 68,651,820 | | | | | | | | 68,651,820 | | | |
| |
| |
| Small Cap Index | | | 23,410,096 | | | | 49,116,531 | | | | 72,526,627 | | | | | | | | 72,526,627 | | | |
| |
| |
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows: (Total distributions paid differ from the Staement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Total
| | |
| | | Undistributed
| | Undistributed
| | Undistributed
| | | | | | Accumulated
| | Unrealized
| | Accumulated
| | |
| | | Tax Exempt
| | Ordinary
| | Long-Term
| | Accumulated
| | Distributions
| | Capital and
| | Appreciation
| | Earnings
| | |
| Fund | | Income | | Income | | Capital Gains | | Earnings | | Payable | | Other Losses | | (Depreciation)* | | (Deficit) | | |
| |
| Bond Index | | | | | | $ | 5,104,195 | | | $ | — | | | $ | 5,104,195 | | | $ | (3,437,985) | | | $ | (10,082,839) | | | $ | (44,171,022) | | | $ | (52,587,651) | | | |
| |
| |
| International Index | | | | | | | 12,852,567 | | | | 127,541,221 | | | | 140,393,788 | | | | — | | | | — | | | | (395,276,602) | | | | (254,882,814) | | | |
| |
| |
| Mid Cap Market Index | | | | | | | 830,800 | | | | 29,344,465 | | | | 30,175,265 | | | | — | | | | — | | | | (258,352,078) | | | | (228,176,813) | | | |
| |
| |
| S&P 500 Index | | | | | | | 3,785,262 | | | | — | | | | 3,785,262 | | | | — | | | | (14,656,608) | | | | (475,732,924) | | | | (486,604,270) | | | |
| |
| |
| Small Cap Index | | | | | | | 376,128 | | | | 4,317,368 | | | | 4,693,496 | | | | — | | | | — | | | | (133,546,471) | | | | (128,852,975) | | | |
| |
| |
2008 Annual Report 163
Notes to Financial Statements (Continued)
October 31, 2008
| | |
| * | | The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. |
As of October 31, 2008, the tax cost of securities and the breakdown of unrealized appreciation / (depreciation) for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net Unrealized
| | |
| | | Tax Cost
| | Unrealized
| | Unrealized
| | Appreciation
| | |
| Fund | | of Securities | | Appreciation | | Depreciation | | (Depreciation) | | |
| |
| Bond Index | | $ | 1,003,242,008 | | | $ | 6,771,169 | | | $ | (50,942,191) | | | $ | (44,171,022) | | | |
| |
| |
| International Index | | | 1,786,580,789 | | | | 72,804,163 | | | | (468,080,765) | | | | (395,276,602) | | | |
| |
| |
| Mid Cap Market Index | | | 820,805,594 | | | | 12,507,074 | | | | (270,859,152) | | | | (258,352,078) | | | |
| |
| |
| S&P 500 Index | | | 2,178,413,164 | | | | 86,055,851 | | | | (561,788,775) | | | | (475,732,924) | | | |
| |
| |
| Small Cap Index | | | 420,148,764 | | | | 9,425,751 | | | | (142,972,222) | | | | (133,546,471) | | | |
| |
| |
As of October 31, 2008, for Federal income tax purposes, the following Funds have capital loss carryforward available to offset capital gains, if any, to the extent provided by the treasury regulations
| | | | | | | | | | | | | |
| | | Fund | | Amount | | Expires | | |
| |
| | | Bond Index | | $ | 795,285 | | | | 2013 | | | |
| |
| |
| | | Bond Index | | | 9,287,554 | | | | 2014 | | | |
| |
| |
| | | S&P 500 Index | | | 14,656,608 | | | | 2016 | | | |
| |
| |
12. Subsequent Event
Effective immediately, new account requests and purchase orders for Local Fund shares of the Nationwide S&P 500 Index Fund are no longer accepted (other than those purchase orders received through dividend reinvestment). Effective on or about January 30, 2009, all Local shares of the Fund will be redeemed.
164 Annual Report 2008
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nationwide Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nationwide Bond Index Fund, Nationwide International Index Fund, Nationwide Mid Cap Market Index Fund, Nationwide S&P 500 Index Fund and Nationwide Small Cap Index Fund (five series of Nationwide Mutual Funds, hereafter referred to as the “Funds”) at October 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2008
2008 Annual Report 165
Supplemental Information
(Unaudited)
1) Other Federal Tax Information
For the year ended October 31, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.
For the year ended October 31, 2008, the following Funds paid qualified dividend income:
| | | | | | | | | |
| | | | | Qualified
| | |
| | | | | Dividend
| | |
| | | Fund | | Income | | |
| |
| | | International Index | | $ | 52,017,849 | | | |
| |
| |
| | | Mid Cap Market Index | | | 8,088,255 | | | |
| |
| |
| | | S&P 500 Index | | | 41,849,039 | | | |
| |
| |
| | | Small Cap Index | | | 3,962,131 | | | |
| |
| |
For the taxable year ended October 31, 2008, the following percentage of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
| | | | | | | | | |
| | | | | Dividends
| | |
| | | | | Received
| | |
| | | Fund | | Deduction | | |
| |
| | | Mid Cap Market Index | | | 78% | | | |
| |
| |
| | | S&P 500 Index | | | 99% | | | |
| |
| |
| | | Small Cap Index | | | 57% | | | |
| |
| |
The Funds designate the following amounts, or the maximum amount allowable under the Internal Revenue Code, as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | International Index | | $ | 55,181,529 | | | |
| |
| |
| | | Mid Cap Market Index | | | 30,636,374 | | | |
| |
| |
| | | S&P 500 Index | | | 30,562,249 | | | |
| |
| |
| | | Small Cap Index | | | 8,260,177 | | | |
| |
| |
Certain Funds Intend to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. As of October 31, 2007, foreign source income per share for each Fund was as follows:
| | | | | | | | | |
| | | | | Foreign Source
| | |
| | | Fund | | Income Per Share | | |
| |
| | | International Index | | $ | 0.03 | | | |
| |
| |
166 Annual Report 2008
Management Information
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s)Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Charles E. Allen
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
since
July 2000 | | | Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management) | | | | 94 | | | | None |
| |
| |
Paula H.J. Cholmondeley
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
Since
July 2000 | | | Ms. Cholmondeley has served as Chief Executive Officer of Sorrel Group (management consulting group) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America | | | | 94 | | | | Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology, Inc. (specialty chemicals) |
| |
| |
C. Brent DeVore3
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1940 | | | Trustee
since 1990 | | | Dr. DeVore is President of Otterbein College | | | | 94 | | | | None |
| |
| |
Phyllis Kay Dryden
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
since
December 2004 | | | Ms. Dryden was a partner of Mitchell Madison Group LLC, a management consulting company from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm | | | | 94 | | | | None |
| |
| |
Barbara L. Hennigar
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1935 | | | Trustee
Since
July 2000 | | | Retired. Ms. Hennigar was Executive Vice President of Oppenheimer Funds (an asset management company) from October 1992 until June 2000 and Chairman of Oppenheimer Funds Services from October 1999 to June 2000 and President & CEO from June 1992 to October 1999 | | | | 94 | | | | None |
| |
| |
2008 Annual Report 167
Management Information (Continued)
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s)Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Barbara I. Jacobs
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Trustee
since
December 2004 | | | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 – 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association — College Retirement Equities Fund) | | | | 94 | | | | None |
| |
| |
Douglas F. Kridler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Trustee
since
September 1997 | | | Mr. Kridler has been a Board Member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of the Columbus Foundation (a Columbus, Ohio-based foundation which manages over 1,300 individual endowment funds) since February 2002. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts; Chairman of the Greater Columbus Convention and Visitors Bureau; and Board Member of Columbus Downtown Development Corporation | | | | 94 | | | | None |
| |
| |
David C. Wetmore
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
Since
1995 and
Chairman
Since
February 2005 | | | Retired. Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology orientated investment banking and venture capital firm) from 1995 through 2000 | | | | 94 | | | | None |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 3 | | Mr. DeVore has served as President of Otterbein College since 1984. Mark Thresher, President and Chief Operating Officer of Nationwide Financial Services, Inc. (“NFS”) has served as a member of the Board of Trustees of Otterbein College since 2000, currently serving as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Funds’ investment adviser, and Nationwide Fund Distributors LLC (“NFD”), principal underwriter to the Trust, are wholly-owned subsidiaries of NFS. Mr. DeVore has announced his intention to retire as President of Otterbein College at the end of the 2008-2009 school year. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
168 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Arden L. Shisler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1941 | | | Trustee
SinceFebruary 20004 | | | Retired. Mr. Shisler is the former President and Chief Executive Officer of KeB Transport, Inc., a trucking firm (2000 through 2002). He served as a consultant to KeB from January 2003 through December 2004. Since 1992, Mr. Shisler has also been Chairman of the Board for Nationwide Mutual Insurance Company.2 | | | | 94 | | | | Director of Nationwide Financial Services, Inc., Chairman of Nationwide Mutual Insurance Company2 |
| |
| |
Michael S. Spangler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1966 | | | President and Chief
Executive Officer sinceJune 20085 | | | Mr. Spangler is the President and Chief Executive Officer of Nationwide Funds Group, which includes NFA,2 Nationwide Fund Management LLC 2 and Nationwide Fund Distributors LLC 2, and is a Senior Vice President of Nationwide Financial Services, Inc.2 From May 2004 until May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. He was President of Touchstone Advisors, Inc., and Vice President and Director of Touchstone Investments Business Operations from July 2002 until May 2004 | | | | N/A | | | | N/A |
| |
| |
Stephen T. Grugeon
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Executive Vice President
and Chief Operating
Officer since June20086 | | | Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. 2 Mr. Grugeon is also President of NWD Investments, which represents certain asset management operations of Nationwide Mutual Insurance Company and includes Nationwide SA Capital Trust. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006, and Chief Operating Officer of Corviant Corporation, a subsidiary of NWD Investments, from 1999 through 2003.2 | | | | N/A | | | | N/A |
| |
| |
Joseph Finelli
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1957 | | | Treasurer
Since
September 2007 | | | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting and Operations for Nationwide Funds Group.2 From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
2008 Annual Report 169
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Dorothy Sanders
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Chief Compliance
Officer
since
October 2007 | | | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). From 2000 to November 2004, she was Vice President, Secretary and General Counsel of Fred Alger & Company, Incorporated | | | | N/A | | | | N/A |
| |
| |
Eric E. Miller
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1953 | | | Secretary
Since
December 2002 | | | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
Doff Meyer
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Vice President
and
Chief Marketing
Officer
since
January 2008 | | | Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007). 2 From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. From January 2003 until September 2004, Ms. Meyer was an independent marketing consultant | | | | N/A | | | | N/A |
| |
| |
170 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Michael Butler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1959 | | | Vice President
and Chief Distribution
Officer
since
January 2008 | | | Mr. Butler is Chief Distribution Officer of Nationwide Funds Group (since May 2007) and President of Nationwide Fund Distributors LLC (since January 2008). 2 From January 2006 through April 2007, Mr. Butler was Vice President – Mutual Fund Strategy of Nationwide Financial Services, Inc.2 and was Senior Vice President – Retirement Plan Sales of NFS Distributors, Inc.2 from 2000 until January 2006 | | | | N/A | | | | N/A |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | This position is held with an affiliated person or principal underwriter of the Trust. |
| 3 | | Directorships held in (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 4 | | Mr. Shisler resigned as a Trustee of the Trust effective September 19, 2008. |
| 5 | | Prior to June 30, 2008, Mr. Grugeon served as the Trust’s acting President and Chief Executive Officer. Prior to February 2008, Mr. John H. Grady was the President and Chief Executive Officer. |
| 6 | | From February 2008 through June 2008, Mr. Grugeon also served as acting President and Chief Executive Officer of Nationwide Mutual Funds, Nationwide Variable Insurance Trust and Nationwide Funds Group. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Funds’ website at www.nationwidefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
2008 Annual Report 171
1200 River Road, Suite 1000
Conshohocken, PA 19428
nationwidefunds.com
Nationwide, the Nationwide Framemark, Nationwide Funds and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds Group is a service mark of Nationwide Mutual Insurance Company
©2008 Nationwide Funds Group.
All rights reserved.
AR-IDX 12/08
Nationwide Mutual Funds
Annual Report
October 31, 2008
Nationwide Investor Destinations Aggressive Fund
Nationwide Investor Destinations Moderately Aggressive Fund
Nationwide Investor Destinations Moderate Fund
Nationwide Investor Destinations Moderately Conservative Fund
Nationwide Investor Destinations Conservative Fund
AnnualReport
October 31, 2008
| | | | |
| | | | Contents |
| | | | |
| 1 | | | Message to Shareholders |
| 5 | | | Nationwide Investor Destinations Aggressive Fund |
| 21 | | | Nationwide Investor Destinations Moderately Aggressive Fund |
| 37 | | | Nationwide Investor Destinations Moderate Fund |
| 53 | | | Nationwide Investor Destinations Moderately Conservative Fund |
| 69 | | | Nationwide Investor Destinations Conservative Fund |
| 85 | | | Notes to Financial Statements |
| | | | |
Commentary provided by Nationwide Fund Advisors, investment adviser to Nationwide Funds. All opinions and estimates included in this report constitute the Adviser’s judgment as of the date of this report and are subject to change without notice. Portfolio composition is accurate as of the date of this report and is subject to change at any time.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The Nationwide Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on nationwidefunds.com or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
This page intentionally left blank
Message to Shareholders
October 31, 2008
Dear Shareholder:
Challenging developments in financial markets, as well as in the global economy particularly during the latter months of the annual reporting period, have dominated the news cycles. Commentators have described the decline as “unprecedented in our lifetime.” Unfortunately, I cannot contradict the pundits. Nearly across the board, markets are posting negative performance numbers in the double digits. As for our funds, while some performed well relative to their peer groups, most have lost value.
The causes for the prevailing negative market conditions have been well documented in the press and elsewhere. The failure of high-profile financial institutions and the extraordinary government intervention have left no asset class unaffected. While I can’t give you good news at this time, I can urge you to keep these events in perspective.
It’s important to remember that economic markets never stand still. They’re volatile by nature. Of course, that premise is easier to accept when markets are going up. However, we approach investing from a long-term perspective. Staying focused, adhering to a plan and remaining aware of your options will help you endure various market conditions.
Nationwide® and Nationwide Funds Groupsm continue to work with investors to help them keep a solid grasp on their long-term financial goals. Our approach is deliberate and our commitment is firm. We do not foresee a fast recovery from the ongoing economic and market turbulence. However, we believe that our underlying investment principles are sound.
In closing, we thank you for entrusting your assets to Nationwide Funds Group.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
This report and the holdings provided are for informational purposes only, and are not intended as an offer or recommendation with respect to the purchase or sale of any security, option, future or other derivatives in such securities. Portfolio composition is accurate as of the date of this report and is subject to change at any time. There is no assurance that any specific securities mentioned in this report will remain in the fund’s portfolio. A more recent listing of each fund’s portfolio holdings can be found on the Trust’s internet site nationwidefunds.com.
The Nationwide Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the Nationwide Investor Destinations Funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
There is no assurance that a diversified portfolio will produce better results than a nondiversified portfolio.
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective as determined by Lipper Inc.
The Nationwide Investor Destinations Aggressive Fund benchmark consists of 95% Standard & Poor’s 500® (S&P 500) Index and 5% Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers (LB) U.S. Aggregate Index.)
The Nationwide Investor Destinations Moderately Aggressive Fund benchmark consists of 80% Standard & Poor’s 500® (S&P 500) Index, 15% Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index] and 5% Citigroup 3-Month Treasury Bill (T-Bill) Index.
2008 Annual Report 1
Message to Shareholders (Continued)
October 31, 2008
The Nationwide Investor Destinations Moderate Fund benchmark consists of 60% Standard & Poor’s 500® (S&P 500) Index, 25% Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index] and 15% Citigroup 3-Month Treasury Bill (T-Bill) Index.
The Nationwide Investor Destinations Moderately Conservative Fund benchmark consists of 40% Standard & Poor’s 500® (S&P 500) Index, 35% Barclays Capital U.S. Aggregate Bond Index[formerly Lehman Brothers (LB) U.S. Aggregate Index] and 25% Citigroup 3-Month Treasury Bill (T-Bill) Index.
The Nationwide Investor Destinations Conservative Fund benchmark consists of 45% Citigroup 3-Month Treasury Bill (T-Bill) Index, 35% Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers (LB) U.S. Aggregate Index) and 20% Standard & Poor’s 500® (S&P 500) Index.
Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index]: An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more) that is generally representative of the bond market as a whole.
Citigroup 3-Month Treasury Bill (T-Bill) Index: An unmanaged index that is generally representative of 3-month Treasury bills; consists of an average of the last 3-month Treasury bill issues (excluding the current month-end bill).
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of the stocks of 400 medium-sized U.S. companies.
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Class A shares at NAV. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Sales charge and fee information: Nationwide Investor Destinations Aggressive Fund, Nationwide Investor Destinations Moderately Aggressive Fund, Nationwide Investor Destinations Moderate Fund, Nationwide Investor Destinations Moderately Conservative Fund and Nationwide Investor Destinations Conservative Fund Class A shares have a maximum sales charge (load) of 5.75% imposed on purchases (as a percentage of offering price). As the amount of your investment increases, the sales charge imposed on the purchase of Class A shares decreases. Up to a 0.25% 12b-1 fee applies.
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 1-800-848-0920 to request a prospectus, or download a prospectus at nationwidefunds.com. Please read it carefully before investing any money.
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations. Each Fund’s underlying funds may be subject to specific investment risks such as those associated with small companies, international securities, initial public offerings, bonds and short-term
2 Annual Report 2008
instruments. Please see the Funds’ prospectus for information about the specific risks of this type of an investment.
International investing involves additional risks, including currency fluctuations, differences in accounting standards, economic and political instability, illiquidity and higher trading costs, and differences in foreign regulations, all of which are magnified in emerging markets. Small-company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the money market.
| |
| • | The U.S. Treasury Temporary Guarantee Program provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008. |
| |
| • | Any increase in the number of shares an investor holds after the close of business on September 19, 2008, will not be guaranteed. |
| |
| • | If a customer closes his or her account with a fund or broker-dealer, any future investment in the fund will not be guaranteed. |
| |
| • | If the number of shares an investor holds fluctuates during the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. |
| |
| • | The Program, which was set to expire on December 18, 2008, has been extended by the United States Treasury and is set to expire on April 30, 2009. |
The Funds’ adviser or its employees, may have a position in the securities named in this report. Except where otherwise indicated, the views and opinions expressed herein are those of Nationwide Funds Group as of the date noted, are subject to change at any time, and may not come to pass.
Nationwide Funds distributed by Nationwide Fund Distributors LLC, Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428.
Nationwide Funds Group (NFG) is the mutual fund arm of Nationwide Financial Services, Inc. (NYSE: NFS). Based in Conshohocken, Pa., a suburb of Philadelphia, NFG comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to the Nationwide Funds. NFS is an affiliate of Nationwide Mutual Insurance Company.
2008 Annual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the year ended October 31, 2008.
The economic conditions during the reporting period were driven by events that began to take shape in mid-year 2007 as the bursting of the U.S. housing bubble triggered a number of collateral impacts across the global economy. Specifically, substantial dislocations occurred in global financial markets. The financial imbalances and subprime mortgage default issues that became obvious to everyone in late 2007 mushroomed into a global financial crisis marked by diminishing liquidity and plunging asset values.
Financial services and cyclical stocks were the areas most aggressively pressured during the reporting period as the economy slowed and the residential housing market and the mortgages backing it soured. These problems included: (1) the failures of several prominent U.S. financial institutions; (2) the U.S. government’s takeover of Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market); (3) the reorganization of Wall Street’s remaining investment banks (The Goldman Sachs Group, Inc. and Morgan Stanley) as bank holding companies; and (4) the need to pass a $700 billion Troubled Asset Relief Program (TARP) bill by the U.S. Congress.
In short, the reporting period was filled with events that have not happened in more than 50 years, and, in many cases, since the Great Depression. Worldwide recession fears, fueled by these financial problems, resulted in sizable double-digit declines in nearly all segments of the investment market as well as increased volatility throughout the reporting period, along with rapid changes in relative performance among economic sectors. This was especially true in commodities; prices both surged and fell sharply during the course of the reporting period.
Large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, fell 36% during the reporting period as credit markets deteriorated and market volatility reached record levels. Mid-cap U.S. equities, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 37%, and small-cap U.S. equities, as measured by the Russell 2000® Index, declined 34%.
In general, international stocks were even more negatively affected than U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost more than 46% during the reporting period, including a loss of more than 34% during the last three months of the period. Emerging market stocks, as measured by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, lost more than 56% during the reporting period, including a loss of more than 44% during the last three months of the period.
The reporting period was a time of general disappointment for fixed-income investors as well. The broad-based Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] gained a mere 0.31%. Continuing credit market woes, however, coupled with uncertainty about the extent of government intervention to help ease the liquidity crunch, served to drag down U.S. investment-grade corporate bonds by nearly 14% during the reporting period.
4 Annual Report 2008
| |
Nationwide Investor Destinations
Aggressive Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Investor Destinations Aggressive Fund (Class A at NAV) registered -38.07% versus -34.56% for its composite benchmark, 95% Standard & Poor’s 500® (S&P 500) Index and 5% Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers (LB) U.S. Aggregate Bond Index). For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Global Multi-Cap Core Funds (consisting of 121 funds as of October 31, 2008) was -40.06% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Only one of the Fund’s underlying investments – the Nationwide Bond Index Fund (with a relatively small allocation within the Fund of approximately 5%) – posted a positive return, gaining 0.04% during the reporting period. U.S. Treasury, Agency and Agency mortgage-backed securities all posted gains during the reporting period; as a result, these sectors were the strongest performers in the Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB)U.S. Aggregate Bond Index] for the period. Corporate bonds and securitized issues lagged the broad market. The broad corporate bond sector dropped 13.82%, and financials were the most notable underperformers.
What areas of investment detracted from Fund performance?
The declines posted by the Fund’s two largest positions, the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 40% and 30%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the S&P 500 Index recorded negative performance for the reporting period. Although each sector lost ground, among the relatively better performers were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, wi th -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Of these, the relatively better performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects do not appear to be good. Many investors appear to have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not further erode their capital. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term appears to be relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Investor Destinations Funds. By combining underlying investments in major asset classes that typically behave differently under various market conditions, it is possible for these Funds to achieve higher risk-adjusted returns over time than those that could be achieved with a less-diversified portfolio of investments. We believe this particular Fund’s substantial equity-oriented allocations across U.S. and international markets position the Fund well to deliver the potential for strong, risk-adjusted returns for the aggressive investor over the long term.
The table below on the next page lists the target allocation for each of the Fund’s underlying
2008 Annual Report 5
investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
Nationwide Investor Destinations Aggressive Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| Asset Classes | | Underlying Investments | | Target Allocation* | | 12-Month Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index | | | 40% | | | | -36.25% | |
| | | Fund | | | | | | | | |
| |
| |
| International Stocks | | Nationwide International | | | 30% | | | | -46.44% | |
| | | Index Fund | | | | | | | | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market | | | 15% | | | | -36.63% | |
| | | Index Fund | | | | | | | | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap | | | 10% | | | | -34.45% | |
| | | Index Fund | | | | | | | | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index Fund | | | 5% | | | | 0.03% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
6 Annual Report 2008
| |
| Fund Performance | Nationwide Investor Destinations Aggressive Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Class A | | w/o SC2 | | | -38.07% | | | | 1.32% | | | | -1.71% | | | | 0.75% | |
| | | w/SC3 | | | -41.63% | | | | 0.12% | | | | -2.38% | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -38.50% | | | | 0.62% | | | | -2.39% | | | | 1.49% | |
| | | w/SC4 | | | -41.42% | | | | 0.27% | | | | -2.39% | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -38.51% | | | | 0.60% | | | | -2.41% | | | | 1.49% | |
| | | w/SC6 | | | -39.10% | | | | 0.60% | | | | -2.41% | | | | | |
| |
| |
Class R7,8 | | | | | -38.27% | | | | 1.14% | | | | -2.10% | | | | 1.19% | |
| |
| |
Institutional Class7,9 | | | | | -37.86% | | | | 1.60% | | | | -1.56% | | | | 0.49% | |
| |
| |
Service Class7 | | | | | -38.09% | | | | 1.21% | | | | -1.78% | | | | 0.89% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on March 31, 2000. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | Not subject to any sales charges. |
| |
| 8 | | These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because Class R shares invest in the same portfolio of securities as Class B shares. |
| |
| 9 | | These returns until the creation of Institutional Class shares (12/29/04) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Institutional Class shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Class B shares. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Investor Destinations Aggressive Fund, Barclays Capital U.S. Aggregate Bond Index [Formerly Lehman Brothers U.S. Aggregate Bond Index](a), S&P 500 Index (S&P 500)(b), the Aggressive Composite Index(c), and the Consumer Price Index (CPI)(d) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues including government, corporate, |
2008 Annual Report 7
| |
| Fund Performance | Nationwide Investor Destinations Aggressive Fund |
Continued
| | |
| | asset-backed, and mortgage-backed securities with maturities of one year or more. |
| |
| (b) | | The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed. |
| |
| (c) | | The Aggressive Composite Index is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Aggressive Composite is a combination of the S&P 500 (95%) and the Barclays Capital U.S. Aggregate Bond Index (5%). |
| |
| (d) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
8 Annual Report 2008
| |
| Shareholder | Nationwide Investor Destinations |
| |
| Expense Example | Aggressive Fund |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
Nationwide Investor Destinations
| | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Aggressive Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 682.73 | | | | 2.21 | | | | 0.52 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.51 | | | | 2.66 | | | | 0.52 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 680.80 | | | | 5.12 | | | | 1.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.05 | | | | 6.17 | | | | 1.21 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 680.18 | | | | 5.12 | | | | 1.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.05 | | | | 6.17 | | | | 1.21 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 682.24 | | | | 3.49 | | | | 0.82 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.99 | | | | 4.20 | | | | 0.82 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 684.33 | | | | 0.89 | | | | 0.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,024.08 | | | | 1.07 | | | | 0.21 | |
| |
| |
| Service Class | | | Actual | | | | 1,000.00 | | | | 683.06 | | | | 2.31 | | | | 0.54 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.40 | | | | 2.77 | | | | 0.54 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 9
| |
| Portfolio Summary | Nationwide Investor Destinations Aggressive Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 100.1% | |
| Liabilities in excess of other assets | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 94.4% | |
| Fixed Income Funds | | | 5.7% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 41.4% | |
| Nationwide International Index Fund, Institutional Class | | | 28.9% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 14.4% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 9.7% | |
| Nationwide Bond Index Fund, Institutional Class | | | 5.7% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
10 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Investor Destinations Aggressive Fund
| | | | | | | | | |
| Mutual Funds 100.1%(a) |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 94.4% |
| Nationwide International Index Fund, Institutional Class | | | 32,897,814 | | | $ | 208,901,120 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 10,482,246 | | | | 104,403,168 | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 36,826,108 | | | | 299,396,257 | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 8,388,021 | | | | 69,872,212 | |
| | | | | | | | | |
| | | | | | | | 682,572,757 | |
Fixe d Income Fund 5.7% |
| Nationwide Bond Index Fund, Institutional Class | | | 4,012,058 | | | | 41,364,321 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $1,013,568,685) (b) — 100.1% | | | 723,937,078 | |
Liabilities in excess of other assets — (0.1)% | | | | | | | (506,793 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 723,430,285 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 11
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | Destinations Aggressive Fund | |
| | | | |
Assets: | | | | | |
| Investments in affiliates, at value (cost $1,013,568,685 ) | | | $ | 723,937,078 | |
| Dividend receivable | | | | 163,791 | |
| Receivable for capital shares issued | | | | 651,166 | |
| Prepaid expenses and other assets | | | | 50,092 | |
| | | | | | |
| Total Assets | | | | 724,802,127 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 256,854 | |
| Payable for capital shares redeemed | | | | 627,713 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 81,114 | |
| Accounting and transfer agent fees | | | | 42,411 | |
| Distribution fees | | | | 211,516 | |
| Administrative servicing fees | | | | 57,387 | |
| Trustee fees | | | | 2,544 | |
| Compliance program costs (Note 3) | | | | 3,667 | |
| Custodian fees | | | | 8,717 | |
| Other | | | | 79,919 | |
| | | | | | |
| Total Liabilities | | | | 1,371,842 | |
| | | | | | |
Net Assets | | | $ | 723,430,285 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 963,451,380 | |
| Accumulated undistributed net investment income | | | | – | |
| Accumulated net realized gains from investment transactions | | | | 49,610,512 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (289,631,607 | ) |
| | | | | | |
Net Assets | | | $ | 723,430,285 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 41,992,722 | |
| Class B Shares | | | | 12,167,277 | |
| Class C Shares | | | | 69,599,437 | |
| Class R Shares | | | | 36,259,161 | |
| Institutional Class Shares | | | | 25,347,433 | |
| Service Class Shares | | | | 538,064,255 | |
| | | | | | |
| Total | | | $ | 723,430,285 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
12 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | | Destinations Aggressive Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 5,981,452 | |
| Class B Shares | | | | 1,756,564 | |
| Class C Shares | | | | 10,071,267 | |
| Class R Shares | | | | 5,218,481 | |
| Institutional Class Shares | | | | 3,582,220 | |
| Service Class Shares | | | | 76,443,977 | |
| | | | | | |
| Total | | | | 103,053,961 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.02 | |
| Class B Shares (a) | | | $ | 6.93 | |
| Class C Shares (b) | | | $ | 6.91 | |
| Class R Shares | | | $ | 6.95 | |
| Institutional Class Shares | | | $ | 7.08 | |
| Service Class Shares | | | $ | 7.04 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.45 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 13
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Investor
| |
| | | | Destinations
| |
| | | Aggressive Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 23,621,569 | |
| Interest income from affiliates | | | | 8,338 | |
| | | | | | |
| Total Income | | | | 23,629,907 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 1,318,248 | |
| Accounting and transfer agent fees | | | | 292,538 | |
| Distribution fees Class A | | | | 164,918 | |
| Distribution fees Class B | | | | 181,568 | |
| Distribution fees Class C | | | | 1,043,810 | |
| Distribution fees Class R | | | | 197,767 | |
| Distribution fees Service Class | | | | 1,880,815 | |
| Administrative servicing fees Class A | | | | 20,503 | |
| Administrative servicing fees Class R | | | | 48,228 | |
| Administrative servicing fees Service Class | | | | 1,097,815 | |
| Registration and filing fees | | | | 26,801 | |
| Professional fees | | | | 156,377 | |
| Printing fees | | | | 98,486 | |
| Trustee fees | | | | 54,361 | |
| Custodian fees | | | | 61,342 | |
| Other | | | | 69,612 | |
| | | | | | |
| Total expenses before waived expenses | | | | 6,713,189 | |
| | | | | | |
| Earning credit (Note 4) | | | | (13,275 | ) |
| Administrator fees voluntarily waived | | | | (16,166 | ) |
| | | | | | |
| Net Expenses | | | | 6,683,748 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 16,946,159 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 25,926,912 | |
| Net realized gains from investment transactions with affiliates | | | | 31,656,718 | |
| | | | | | |
| Net realized gains from investment transactions with affiliated funds | | | | 57,583,630 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (527,246,654 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (469,663,024 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (452,716,865 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
14 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Aggressive Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 16,946,159 | | | | $ | 15,731,531 | |
| Net realized gains from investment transactions | | | | 57,583,630 | | | | | 46,995,869 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (527,246,654 | ) | | | | 92,831,808 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (452,716,865 | ) | | | | 155,559,208 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (1,562,467 | ) | | | | (1,881,143 | ) |
| Class B | | | | (292,187 | ) | | | | (364,681 | ) |
| Class C | | | | (1,675,049 | ) | | | | (2,095,868 | ) |
| Class R | | | | (745,951 | ) | | | | (258,245 | ) |
| Institutional Class | | | | (871,085 | ) | | | | (470,760 | ) |
| Service Class | | | | (16,113,602 | ) | | | | (18,225,315 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (2,780,369 | ) | | | | (1,427,745 | ) |
| Class B | | | | (707,644 | ) | | | | (382,411 | ) |
| Class C | | | | (4,059,419 | ) | | | | (2,145,163 | ) |
| Class R | | | | (1,076,571 | ) | | | | (72,786 | ) |
| Institutional Class | | | | (1,226,204 | ) | | | | (48,542 | ) |
| Service Class | | | | (27,644,364 | ) | | | | (15,278,242 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (58,754,912 | ) | | | | (42,650,901 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 16,736,685 | | | | | 253,821,600 | |
| | | | | | | | | | | |
| Change in net assets | | | | (494,735,092 | ) | | | | 366,729,907 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,218,165,377 | | | | | 851,435,470 | |
| | | | | | | | | | | |
| End of period | | | $ | 723,430,285 | | | | $ | 1,218,165,377 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | — | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 14,691,880 | | | | $ | 43,791,018 | |
| Dividends reinvested | | | | 2,941,567 | | | | | 2,119,676 | |
| Cost of shares redeemed | | | | (32,654,807 | ) | | | | (25,605,952 | ) |
| | | | | | | | | | | |
| Total Class A | | | | (15,021,360 | ) | | | | 20,304,742 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 1,755,554 | | | | | 4,924,237 | |
| Dividends reinvested | | | | 646,969 | | | | | 509,440 | |
| Cost of shares redeemed | | | | (3,171,393 | ) | | | | (2,422,744 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (768,870 | ) | | | | 3,010,933 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 17,475,451 | | | | | 37,539,327 | |
| Dividends reinvested | | | | 1,687,986 | | | | | 1,103,530 | |
| Cost of shares redeemed | | | | (24,918,281 | ) | | | | (16,792,811 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (5,754,844 | ) | | | | 21,850,046 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 15
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Aggressive Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 31,843,428 | | | | | 28,636,911 | |
| Dividends reinvested | | | | 1,534,572 | | | | | 213,659 | |
| Cost of shares redeemed | | | | (5,758,580 | ) | | | | (3,216,413 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 27,619,420 | | | | | 25,634,157 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 14,720,387 | | | | | 34,999,727 | |
| Dividends reinvested | | | | 2,097,279 | | | | | 519,302 | |
| Cost of shares redeemed | | | | (9,037,065 | ) | | | | (5,136,089 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 7,780,601 | | | | | 30,382,940 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 98,466,004 | | | | | 208,483,328 | |
| Dividends reinvested | | | | 43,744,423 | | | | | 33,491,774 | |
| Cost of shares redeemed | | | | (139,328,689 | ) | | | | (89,336,320 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | 2,881,738 | | | | | 152,638,782 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 16,736,685 | | | | $ | 253,821,600 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 1,480,463 | | | | | 3,881,554 | |
| Reinvested | | | | 274,406 | | | | | 190,550 | |
| Redeemed | | | | (3,287,261 | ) | | | | (2,239,900 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (1,532,392 | ) | | | | 1,832,204 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 172,759 | | | | | 441,161 | |
| Reinvested | | | | 60,654 | | | | | 46,522 | |
| Redeemed | | | | (332,772 | ) | | | | (215,706 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (99,359 | ) | | | | 271,977 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 1,748,711 | | | | | 3,394,302 | |
| Reinvested | | | | 158,812 | | | | | 100,820 | |
| Redeemed | | | | (2,628,088 | ) | | | | (1,495,654 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (720,565 | ) | | | | 1,999,468 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 3,212,498 | | | | | 2,529,977 | |
| Reinvested | | | | 146,606 | | | | | 18,910 | |
| Redeemed | | | | (598,867 | ) | | | | (285,445 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 2,760,237 | | | | | 2,263,442 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 1,420,005 | | | | | 3,133,939 | |
| Reinvested | | | | 195,846 | | | | | 45,160 | |
| Redeemed | | | | (903,945 | ) | | | | (441,538 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 711,906 | | | | | 2,737,561 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
16 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Aggressive Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 9,923,310 | | | | | 18,443,978 | |
| Reinvested | | | | 4,084,791 | | | | | 3,009,347 | |
| Redeemed | | | | (13,708,879 | ) | | | | (7,924,889 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | 299,222 | | | | | 13,528,436 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 1,419,049 | | | | | 22,633,088 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 17
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Aggressive Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .99 | | | | 0 | .18 | | | | (4 | .54) | | | | (4 | .36) | | | | (0 | .23) | | | | (0 | .38) | | | | (0 | .61) | | | $ | 7 | .02 | | | | (38 | .07%) | | | $ | 41,992,722 | | | | | 0 | .48% | | | | 1 | .88% | | | | 0 | .48% | | | | 16 | .79% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .77 | | | | 0 | .20 | | | | 1 | .52 | | | | 1 | .72 | | | | (0 | .27) | | | | (0 | .23) | | | | (0 | .50) | | | $ | 11 | .99 | | | | 16 | .46% | | | $ | 90,083,962 | | | | | 0 | .45% | | | | 1 | .67% | | | | 0 | .45% | | | | 3 | .92% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .48 | | | | 0 | .15 | | | | 1 | .53 | | | | 1 | .68 | | | | (0 | .20) | | | | (0 | .19) | | | | (0 | .39) | | | $ | 10 | .77 | | | | 18 | .13% | | | $ | 61,216,843 | | | | | 0 | .45% | | | | 1 | .27% | | | | 0 | .46% | | | | 4 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 8 | .61 | | | | 0 | .19 | | | | 0 | .87 | | | | 1 | .06 | | | | (0 | .19) | | | | – | | | | | (0 | .19) | | | $ | 9 | .48 | | | | 12 | .36% | | | $ | 38,583,404 | | | | | 0 | .49% | | | | 1 | .87% | | | | –(f) | | | | | 6 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 7 | .81 | | | | 0 | .10 | | | | 0 | .80 | | | | 0 | .90 | | | | (0 | .10) | | | | – | | | | | (0 | .10) | | | $ | 8 | .61 | | | | 11 | .55% | | | $ | 19,737,415 | | | | | 0 | .47% | | | | 1 | .06% | | | | –(f) | | | | | 2 | .12% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .84 | | | | 0 | .11 | | | | (4 | .48) | | | | (4 | .37) | | | | (0 | .16) | | | | (0 | .38) | | | | (0 | .54) | | | $ | 6 | .93 | | | | (38 | .50%) | | | $ | 12,167,277 | | | | | 1 | .20% | | | | 1 | .13% | | | | 1 | .21% | | | | 16 | .79% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .66 | | | | 0 | .12 | | | | 1 | .50 | | | | 1 | .62 | | | | (0 | .21) | | | | (0 | .23) | | | | (0 | .44) | | | $ | 11 | .84 | | | | 15 | .62% | | | $ | 21,966,705 | | | | | 1 | .19% | | | | 0 | .95% | | | | 1 | .19% | | | | 3 | .92% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .38 | | | | 0 | .08 | | | | 1 | .52 | | | | 1 | .60 | | | | (0 | .13) | | | | (0 | .19) | | | | (0 | .32) | | | $ | 10 | .66 | | | | 17 | .39% | | | $ | 16,889,601 | | | | | 1 | .19% | | | | 0 | .64% | | | | 1 | .19% | | | | 4 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 8 | .53 | | | | 0 | .11 | | | | 0 | .86 | | | | 0 | .97 | | | | (0 | .12) | | | | – | | | | | (0 | .12) | | | $ | 9 | .38 | | | | 11 | .46% | | | $ | 11,760,611 | | | | | 1 | .21% | | | | 1 | .18% | | | | –(f) | | | | | 6 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 7 | .74 | | | | 0 | .04 | | | | 0 | .80 | | | | 0 | .84 | | | | (0 | .05) | | | | – | | | | | (0 | .05) | | | $ | 8 | .53 | | | | 10 | .86% | | | $ | 7,414,335 | | | | | 1 | .20% | | | | 0 | .35% | | | | –(f) | | | | | 2 | .12% | | |
18 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Aggressive Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .81 | | | | 0 | .11 | | | | (4 | .47) | | | | (4 | .36) | | | | (0 | .16) | | | | (0 | .38) | | | | (0 | .54) | | | $ | 6 | .91 | | | | (38 | .51%) | | | $ | 69,599,437 | | | | | 1 | .20% | | | | 1 | .13% | | | | 1 | .21% | | | | 16 | .79% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .64 | | | | 0 | .12 | | | | 1 | .49 | | | | 1 | .61 | | | | (0 | .21) | | | | (0 | .23) | | | | (0 | .44) | | | $ | 11 | .81 | | | | 15 | .55% | | | $ | 127,449,809 | | | | | 1 | .19% | | | | 0 | .95% | | | | 1 | .19% | | | | 3 | .92% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .37 | | | | 0 | .07 | | | | 1 | .52 | | | | 1 | .59 | | | | (0 | .13) | | | | (0 | .19) | | | | (0 | .32) | | | $ | 10 | .64 | | | | 17 | .29% | | | $ | 93,557,002 | | | | | 1 | .19% | | | | 0 | .65% | | | | 1 | .19% | | | | 4 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 8 | .52 | | | | 0 | .12 | | | | 0 | .86 | | | | 0 | .98 | | | | (0 | .13) | | | | – | | | | | (0 | .13) | | | $ | 9 | .37 | | | | 11 | .49% | | | $ | 71,231,493 | | | | | 1 | .21% | | | | 1 | .16% | | | | –(f) | | | | | 6 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 7 | .73 | | | | 0 | .04 | | | | 0 | .80 | | | | 0 | .84 | | | | (0 | .05) | | | | – | | | | | (0 | .05) | | | $ | 8 | .52 | | | | 10 | .88% | | | $ | 43,667,578 | | | | | 1 | .20% | | | | 0 | .32% | | | | –(f) | | | | | 2 | .12% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .88 | | | | 0 | .17 | | | | (4 | .52) | | | | (4 | .35) | | | | (0 | .20) | | | | (0 | .38) | | | | (0 | .58) | | | $ | 6 | .95 | | | | (38 | .27%) | | | $ | 36,259,161 | | | | | 0 | .83% | | | | 1 | .47% | | | | 0 | .83% | | | | 16 | .79% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .69 | | | | 0 | .21 | | | | 1 | .46 | | | | 1 | .67 | | | | (0 | .25) | | | | (0 | .23) | | | | (0 | .48) | | | $ | 11 | .88 | | | | 16 | .11% | | | $ | 29,198,877 | | | | | 0 | .77% | | | | 1 | .19% | | | | 0 | .77% | | | | 3 | .92% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .42 | | | | 0 | .16 | | | | 1 | .49 | | | | 1 | .65 | | | | (0 | .19) | | | | (0 | .19) | | | | (0 | .38) | | | $ | 10 | .69 | | | | 17 | .93% | | | $ | 2,083,122 | | | | | 0 | .79% | | | | 0 | .88% | | | | 0 | .80% | | | | 4 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 8 | .56 | | | | 0 | .18 | | | | 0 | .86 | | | | 1 | .04 | | | | (0 | .18) | | | | – | | | | | (0 | .18) | | | $ | 9 | .42 | | | | 12 | .19% | | | $ | 215,578 | | | | | 0 | .63% | | | | 1 | .47% | | | | –(f) | | | | | 6 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 7 | .74 | | | | 0 | .07 | | | | 0 | .82 | | | | 0 | .89 | | | | (0 | .07) | | | | – | | | | | (0 | .07) | | | $ | 8 | .56 | | | | 11 | .58% | | | $ | 37,539 | | | | | 0 | .63% | | | | 0 | .93% | | | | –(f) | | | | | 2 | .12% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 12 | .08 | | | | 0 | .21 | | | | (4 | .57) | | | | (4 | .36) | | | | (0 | .26) | | | | (0 | .38) | | | | (0 | .64) | | | $ | 7 | .08 | | | | (37 | .86%) | | | $ | 25,347,433 | | | | | 0 | .20% | | | | 2 | .09% | | | | 0 | .20% | | | | 16 | .79% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .84 | | | | 0 | .28 | | | | 1 | .48 | | | | 1 | .76 | | | | (0 | .29) | | | | (0 | .23) | | | | (0 | .52) | | | $ | 12 | .08 | | | | 16 | .77% | | | $ | 34,670,326 | | | | | 0 | .19% | | | | 1 | .80% | | | | 0 | .19% | | | | 3 | .92% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .53 | | | | 0 | .22 | | | | 1 | .50 | | | | 1 | .72 | | | | (0 | .22) | | | | (0 | .19) | | | | (0 | .41) | | | $ | 10 | .84 | | | | 18 | .54% | | | $ | 1,439,446 | | | | | 0 | .18% | | | | 1 | .74% | | | | 0 | .19% | | | | 4 | .80% | | |
| Period Ended October 31, 2005 (g) | | | $ | 9 | .31 | | | | 0 | .09 | | | | 0 | .25 | | | | 0 | .34 | | | | (0 | .12) | | | | – | | | | | (0 | .12) | | | $ | 9 | .53 | | | | 3 | .66% | | | $ | 1,036 | | | | | 0 | .24% | | | | 1 | .39% | | | | –(f) | | | | | 6 | .51% | | |
2008 Annual Report 19
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Aggressive Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 12 | .01 | | | | 0 | .18 | | | | (4 | .55) | | | | (4 | .37) | | | | (0 | .22) | | | | (0 | .38) | | | | (0 | .60) | | | $ | 7 | .04 | | | | (38 | .09%) | | | $ | 538,064,255 | | | | | 0 | .60% | | | | 1 | .74% | | | | 0 | .60% | | | | 16 | .79% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .80 | | | | 0 | .19 | | | | 1 | .51 | | | | 1 | .70 | | | | (0 | .26) | | | | (0 | .23) | | | | (0 | .49) | | | $ | 12 | .01 | | | | 16 | .20% | | | $ | 914,795,698 | | | | | 0 | .59% | | | | 1 | .55% | | | | 0 | .59% | | | | 3 | .92% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .50 | | | | 0 | .14 | | | | 1 | .54 | | | | 1 | .68 | | | | (0 | .19) | | | | (0 | .19) | | | | (0 | .38) | | | $ | 10 | .80 | | | | 18 | .04% | | | $ | 676,249,456 | | | | | 0 | .59% | | | | 1 | .16% | | | | 0 | .60% | | | | 4 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 8 | .63 | | | | 0 | .18 | | | | 0 | .87 | | | | 1 | .05 | | | | (0 | .18) | | | | – | | | | | (0 | .18) | | | $ | 9 | .50 | | | | 12 | .18% | | | $ | 439,966,300 | | | | | 0 | .62% | | | | 1 | .78% | | | | –(f) | | | | | 6 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 7 | .82 | | | | 0 | .09 | | | | 0 | .81 | | | | 0 | .90 | | | | (0 | .09) | | | | – | | | | | (0 | .09) | | | $ | 8 | .63 | | | | 11 | .50% | | | $ | 282,485,709 | | | | | 0 | .59% | | | | 0 | .94% | | | | 0 | .60% | | | | 2 | .12% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | There were no fee reductions during the period. |
| (g) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
20 Annual Report 2008
| |
Nationwide Investor Destinations
Moderately Aggressive Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Investor Destinations Moderately Aggressive Fund (Class A at NAV) registered -32.83% versus -29.69% for its composite benchmark, 80% Standard & Poor’s 500® (S&P 500) Index, 15% Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] and 5% Citigroup 3-Month Treasury Bill (T-Bill) Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target Allocation Growth Funds (consisting of 666 funds as of October 31, 2008) was -30.82% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Only two of the Fund’s underlying investments – Nationwide Bond Index Fund (with an allocation within the Fund of approximately 15%) and the Nationwide Contract (with an allocation within the Fund of approximately 5%) – posted positive returns, gaining 0.04% and 4.08%, respectively. U.S. Treasury, Agency and Agency mortgage-backed securities all posted gains during the reporting period; as a result, these sectors were the strongest performers in the Barclays Capital US Aggregate Bond Index for the period. Corporate bonds and securitized issues lagged the broad market. The broad corporate bond sector dropped 13.82%, and financials were the most notable underperformer. The Nationwide Contract is a fixed-interest contract issued and guaranteed by Nationwide Life Insurance Company that has a stable principal value and pays a credited interest rate that can change quarterly.
What areas of investment detracted from Fund performance?
The declines posted by the Fund’s two largest positions, the Nationwide S&P 500 Index Fund, with
-36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 35% and 25%, respectively) proved to be the largest negative contributors to the Fund as a whole during the period. All 10 sectors within the S&P 500 Index recorded negative performance for the reporting period. Although each sector lost ground, the relatively better performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the relatively better performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects do not appear to be good. Many investors appear to have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term appears to be relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Investor Destinations Funds. By combining underlying investments in major asset classes that typically behave differently under various market conditions, it is possible for the Funds to achieve higher risk-adjusted returns over time than those that could be achieved with a less-diversified portfolio of investments. We believe this particular Fund’s substantial equity-oriented allocations across
2008 Annual Report 21
U.S. and international markets, with a modest fixed-income allocation, position the Fund well to deliver the potential for strong, risk-adjusted returns for the moderately aggressive investor over the long term.
The table below lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
Nationwide Investor Destinations Moderately Aggressive Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Classes | | Underlying Investments | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 35% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 25% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 15% | | | | -36.63% | |
| |
| |
| Intermediate –Term Bonds | | Nationwide Bond Index Fund | | | 15% | | | | 0.03% | |
| |
| |
| Short-Term Bonds | | Nationwide Contract | | | 5% | | | | 4.08% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 5% | | | | -34.45% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares for each underlying investment except the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
22 Annual Report 2008
| |
| Fund Performance | Nationwide Investor Destinations Moderately
Aggressive Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Class A | | w/o SC2 | | | -32.83% | | | | 1.69% | | | | -0.60% | | | | 0.73% | |
| | | w/SC3 | | | -36.67% | | | | 0.49% | | | | -1.28% | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -33.38% | | | | 0.95% | | | | -1.32% | | | | 1.47% | |
| | | w/SC4 | | | -36.57% | | | | 0.59% | | | | -1.32% | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -33.38% | | | | 0.93% | | | | -1.29% | | | | 1.47% | |
| | | w/SC6 | | | -34.02% | | | | 0.93% | | | | -1.29% | | | | | |
| |
| |
Class R7,8 | | | | | -33.06% | | | | 1.47% | | | | -1.02% | | | | 1.17% | |
| |
| |
Institutional Class7,9 | | | | | -32.65% | | | | 1.88% | | | | -0.49% | | | | 0.47% | |
| |
| |
Service Class7 | | | | | -32.96% | | | | 1.56% | | | | -0.68% | | | | 0.86% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on March 31, 2000. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | Not subject to any sales charges. |
| |
| 8 | | These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares. |
| |
| 9 | | These returns until the creation of Institutional Class shares (12/29/04) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Institutional Class shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Class B shares. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Investor Destinations Moderately Aggressive Fund, Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers U.S. Aggregate Bond Index](a), S&P 500 Index (S&P 500)(b), the Citigroup 3-Month T Bill Index(c), the Moderately Aggressive Composite Index(d), and the Consumer Price Index (CPI)(e) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
2008 Annual Report 23
| |
| Fund Performance | Nationwide Investor Destinations Moderately
Aggressive Fund |
Continued
| | |
| (a) | | Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more. |
| |
| (b) | | The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed. |
| |
| (c) | | The Citigroup 3-Month T Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill). |
| |
| (d) | | The Moderately Aggressive Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderately Aggressive Composite is a combination of the S&P 500 (80%), the Barclays Capital U.S. Aggregate Bond Index (15%) and the Citigroup 3-Month T Bill Index (5%). |
| |
| (e) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
24 Annual Report 2008
| |
| Shareholder | Nationwide Investor Destinations |
| |
| Expense Example | Moderately Aggressive Fund |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
Nationwide Investor Destinations
| | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Moderately Aggressive Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 723.49 | | | | 2.04 | | | | 0.47 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.77 | | | | 2.40 | | | | 0.47 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 720.35 | | | | 5.25 | | | | 1.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.04 | | | | 6.17 | | | | 1.21 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 720.32 | | | | 5.24 | | | | 1.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.04 | | | | 6.17 | | | | 1.21 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 722.17 | | | | 3.58 | | | | 0.83 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.98 | | | | 4.21 | | | | 0.83 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 724.50 | | | | 0.92 | | | | 0.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,024.07 | | | | 1.08 | | | | 0.21 | |
| |
| |
| Service Class | | | Actual | | | | 1,000.00 | | | | 722.80 | | | | 2.36 | | | | 0.55 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.39 | | | | 2.78 | | | | 0.55 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 25
| |
| Portfolio Summary | Nationwide Investor Destinations
Moderately Aggressive Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 97.2% | |
| Fixed Contract | | | 2.9% | |
| Liabilities in excess of other assets | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 77.6% | |
| Fixed Income Funds | | | 18.3% | |
| Fixed Contract | | | 2.9% | |
| Money Market Fund | | | 1.3% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 35.3% | |
| Nationwide International Index Fund, Institutional Class | | | 23.5% | |
| Nationwide Bond Index Fund, Institutional Class | | | 16.7% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 14.1% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 4.7% | |
| Nationwide Fixed Contract, 4.00% | | | 2.9% | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 1.6% | |
| Nationwide Money Market Fund, Institutional Class | | | 1.3% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
26 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Investor Destinations Moderately Aggressive Fund
| | | | | | | | | |
| Mutual Funds 97.2%(a) |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 77.6% |
| Nationwide International Index Fund, Institutional Class | | | 45,358,181 | | | $ | 288,024,451 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 17,345,550 | | | | 172,761,674 | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 53,317,259 | | | | 433,469,314 | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 6,939,531 | | | | 57,806,294 | |
| | | | | | | | | |
| | | | | | | | 952,061,733 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 18.3% |
| Nationwide Bond Index Fund, Institutional Class | | | 19,919,960 | | | | 205,374,785 | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 2,183,834 | | | | 19,785,539 | |
| | | | | | | | | |
| | | | | | | | 225,160,324 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.3% |
| Nationwide Money Market Fund, Institutional Class | | | 15,773,112 | | | | 15,773,112 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 1,192,995,169 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Fixed Contract 2.9%(a) (b) |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| Nationwide Fixed Contract, 4.00% | | $ | 35,355,409 | | | | 35,355,409 | |
| | | | | | | | | |
| | | | | |
Total Fixed Contract | | | 35,355,409 | |
| | | | | |
| | | | | |
Total Investments (Cost $1,625,134,693) (c) — 100.1% | | | 1,228,350,578 | |
Liabilities in excess of other assets — (0.1)% | | | | | | | (985,210 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 1,227,365,368 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees. |
| |
| (c) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 27
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor Destinations Moderately
| |
| | | Aggressive Fund | |
| | | | |
Assets: | | | | | |
| Investments in affiliates, at value (cost $1,625,134,693 ) | | | $ | 1,228,350,578 | |
| Dividend receivable | | | | 895,049 | |
| Receivable for capital shares issued | | | | 1,074,781 | |
| Prepaid expenses and other assets | | | | 54,258 | |
| | | | | | |
| Total Assets | | | | 1,230,374,666 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 1,152,628 | |
| Payable for capital shares redeemed | | | | 1,055,636 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 137,363 | |
| Accounting and transfer agent fees | | | | 57,791 | |
| Distribution fees | | | | 373,854 | |
| Administrative servicing fees | | | | 79,844 | |
| Trustee fees | | | | 4,155 | |
| Compliance program costs (Note 3) | | | | 5,735 | |
| Custodian fees | | | | 16,944 | |
| Other | | | | 125,348 | |
| | | | | | |
| Total Liabilities | | | | 3,009,298 | |
| | | | | | |
Net Assets | | | $ | 1,227,365,368 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 1,535,552,829 | |
| Accumulated undistributed net investment income | | | | 591,218 | |
| Accumulated net realized gains from investment transactions | | | | 88,005,436 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (396,784,115 | ) |
| | | | | | |
Net Assets | | | $ | 1,227,365,368 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 66,098,117 | |
| Class B Shares | | | | 26,143,633 | |
| Class C Shares | | | | 132,062,033 | |
| Class R Shares | | | | 82,732,049 | |
| Institutional Class Shares | | | | 53,214,335 | |
| Service Class Shares | | | | 867,115,201 | |
| | | | | | |
| Total | | | $ | 1,227,365,368 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
28 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor Destinations Moderately
| |
| | | | Aggressive Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 8,594,378 | |
| Class B Shares | | | | 3,452,472 | |
| Class C Shares | | | | 17,435,119 | |
| Class R Shares | | | | 10,921,170 | |
| Institutional Class Shares | | | | 6,922,640 | |
| Service Class Shares | | | | 112,889,561 | |
| | | | | | |
| Total | | | | 160,215,340 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.69 | |
| Class B Shares (a) | | | $ | 7.57 | |
| Class C Shares (b) | | | $ | 7.57 | |
| Class R Shares | | | $ | 7.58 | |
| Institutional Class Shares | | | $ | 7.69 | |
| Service Class Shares | | | $ | 7.68 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 8.16 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 29
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Investor
| |
| | | | Destinations
| |
| | | | Moderately
| |
| | | Aggressive Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 41,855,623 | |
| Interest income from affiliates | | | | 1,553,924 | |
| | | | | | |
| Total Income | | | | 43,409,547 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 2,119,233 | |
| Accounting and transfer agent fees | | | | 479,597 | |
| Distribution fees Class A | | | | 231,041 | |
| Distribution fees Class B | | | | 374,069 | |
| Distribution fees Class C | | | | 1,923,435 | |
| Distribution fees Class R | | | | 412,250 | |
| Distribution fees Service Class | | | | 2,897,216 | |
| Administrative servicing fees Class A | | | | 7,179 | |
| Administrative servicing fees Class R | | | | 109,083 | |
| Administrative servicing fees Service Class | | | | 1,683,210 | |
| Registration and filing fees | | | | 36,805 | |
| Professional fees | | | | 250,596 | |
| Printing fees | | | | 137,255 | |
| Trustee fees | | | | 86,863 | |
| Custodian fees | | | | 110,702 | |
| Other | | | | 108,322 | |
| | | | | | |
| Total expenses before waived expenses | | | | 10,966,856 | |
| | | | | | |
| Earning credit (Note 4) | | | | (23,190 | ) |
| Administrator fees voluntarily waived | | | | (24,930 | ) |
| | | | | | |
| Net Expenses | | | | 10,918,736 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 32,490,811 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 34,141,604 | |
| Net realized gains from investment transactions with affiliates | | | | 61,342,188 | |
| | | | | | |
| Net realized gains from investment transactions with affiliated funds | | | | 95,483,792 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (739,797,320 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (644,313,528 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (611,822,717 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
30 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderately Aggressive Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 32,490,811 | | | | $ | 31,571,141 | |
| Net realized gains from investment transactions | | | | 95,483,792 | | | | | 52,319,655 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (739,797,320 | ) | | | | 138,635,961 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (611,822,717 | ) | | | | 222,526,757 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (2,331,952 | ) | | | | (2,632,785 | ) |
| Class B | | | | (675,565 | ) | | | | (857,832 | ) |
| Class C | | | | (3,462,127 | ) | | | | (4,362,780 | ) |
| Class R | | | | (1,768,068 | ) | | | | (581,683 | ) |
| Institutional Class | | | | (1,874,682 | ) | | | | (1,075,534 | ) |
| Service Class | | | | (27,200,516 | ) | | | | (31,197,355 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (2,564,384 | ) | | | | (1,795,310 | ) |
| Class B | | | | (1,054,241 | ) | | | | (824,425 | ) |
| Class C | | | | (5,436,823 | ) | | | | (4,088,152 | ) |
| Class R | | | | (1,624,440 | ) | | | | (84,880 | ) |
| Institutional Class | | | | (1,748,195 | ) | | | | (85,526 | ) |
| Service Class | | | | (31,244,256 | ) | | | | (23,158,067 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (80,985,249 | ) | | | | (70,744,329 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 22,152,655 | | | | | 346,807,264 | |
| | | | | | | | | | | |
| Change in net assets | | | | (670,655,311 | ) | | | | 498,589,692 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,898,020,679 | | | | | 1,399,430,987 | |
| | | | | | | | | | | |
| End of period | | | $ | 1,227,365,368 | | | | $ | 1,898,020,679 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 591,218 | | | | $ | 334,982 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 18,073,799 | | | | $ | 48,170,259 | |
| Dividends reinvested | | | | 2,865,325 | | | | | 2,545,246 | |
| Cost of shares redeemed | | | | (26,821,733 | ) | | | | (32,423,383 | ) |
| | | | | | | | | | | |
| Total Class A | | | | (5,882,609 | ) | | | | 18,292,122 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,380,286 | | | | | 4,852,912 | |
| Dividends reinvested | | | | 1,180,772 | | | | | 1,113,587 | |
| Cost of shares redeemed | | | | (6,110,838 | ) | | | | (4,741,471 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (2,549,780 | ) | | | | 1,225,028 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 31
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderately Aggressive Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 25,560,789 | | | | $ | 48,233,511 | |
| Dividends reinvested | | | | 2,325,384 | | | | | 2,055,742 | |
| Cost of shares redeemed | | | | (45,407,616 | ) | | | | (32,387,847 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (17,521,443 | ) | | | | 17,901,406 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 66,531,114 | | | | | 58,024,876 | |
| Dividends reinvested | | | | 3,135,494 | | | | | 476,534 | |
| Cost of shares redeemed | | | | (7,171,591 | ) | | | | (6,502,529 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 62,495,017 | | | | | 51,998,881 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 21,256,138 | | | | | 63,157,936 | |
| Dividends reinvested | | | | 3,622,871 | | | | | 1,161,060 | |
| Cost of shares redeemed | | | | (8,679,307 | ) | | | | (7,617,090 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 16,199,702 | | | | | 56,701,906 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 126,570,824 | | | | | 282,353,940 | |
| Dividends reinvested | | | | 58,444,538 | | | | | 54,355,351 | |
| Cost of shares redeemed | | | | (215,603,594 | ) | | | | (136,021,370 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | (30,588,232 | ) | | | | 200,687,921 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 22,152,655 | | | | $ | 346,807,264 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 1,753,054 | | | | | 4,228,098 | |
| Reinvested | | | | 263,859 | | | | | 225,572 | |
| Redeemed | | | | (2,646,374 | ) | | | | (2,811,077 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (629,461 | ) | | | | 1,642,593 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 232,408 | | | | | 431,046 | |
| Reinvested | | | | 109,284 | | | | | 100,292 | |
| Redeemed | | | | (630,768 | ) | | | | (419,653 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (289,076 | ) | | | | 111,685 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 2,463,899 | | | | | 4,289,749 | |
| Reinvested | | | | 215,282 | | | | | 185,013 | |
| Redeemed | | | | (4,624,457 | ) | | | | (2,856,482 | ) |
| | | | | | | | | �� | | |
| Total Class C Shares | | | | (1,945,276 | ) | | | | 1,618,280 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 6,518,747 | | | | | 5,097,065 | |
| Reinvested | | | | 296,008 | | | | | 41,679 | |
| Redeemed | | | | (729,728 | ) | | | | (564,611 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 6,085,027 | | | | | 4,574,133 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
32 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderately Aggressive Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 2,016,911 | | | | | 5,658,164 | |
| Reinvested | | | | 335,351 | | | | | 100,858 | |
| Redeemed | | | | (881,390 | ) | | | | (658,751 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 1,470,872 | | | | | 5,100,271 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 12,221,881 | | | | | 24,767,962 | |
| Reinvested | | | | 5,385,691 | | | | | 4,829,960 | |
| Redeemed | | | | (20,391,321 | ) | | | | (12,003,273 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | (2,783,749 | ) | | | | 17,594,649 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 1,908,337 | | | | | 30,641,611 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 33
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Aggressive Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 12 | .03 | | | | 0 | .23 | | | | (4 | .03) | | | | (3 | .80) | | | | (0 | .26) | | | | (0 | .28) | | | | (0 | .54) | | | $ | 7 | .69 | | | | (32 | .83%) | | | $ | 66,098,117 | | | | | 0 | .46% | | | | 2 | .21% | | | | 0 | .46% | | | | 23 | .68% | | |
| Year Ended October 31, 2007 | | | $ | 11 | .00 | | | | 0 | .25 | | | | 1 | .31 | | | | 1 | .56 | | | | (0 | .30) | | | | (0 | .23) | | | | (0 | .53) | | | $ | 12 | .03 | | | | 14 | .67% | | | $ | 110,994,304 | | | | | 0 | .44% | | | | 2 | .09% | | | | 0 | .44% | | | | 2 | .80% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .84 | | | | 0 | .18 | | | | 1 | .33 | | | | 1 | .51 | | | | (0 | .22) | | | | (0 | .13) | | | | (0 | .35) | | | $ | 11 | .00 | | | | 15 | .66% | | | $ | 83,365,165 | | | | | 0 | .46% | | | | 1 | .65% | | | | 0 | .47% | | | | 6 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .10 | | | | 0 | .21 | | | | 0 | .74 | | | | 0 | .95 | | | | (0 | .21) | | | | – | | | | | (0 | .21) | | | $ | 9 | .84 | | | | 10 | .47% | | | $ | 57,072,820 | | | | | 0 | .49% | | | | 2 | .10% | | | | –(f) | | | | | 5 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .35 | | | | 0 | .12 | | | | 0 | .75 | | | | 0 | .87 | | | | (0 | .12) | | | | – | | | | | (0 | .12) | | | $ | 9 | .10 | | | | 10 | .48% | | | $ | 35,416,274 | | | | | 0 | .47% | | | | 1 | .37% | | | | 0 | .47% | | | | 2 | .74% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .86 | | | | 0 | .15 | | | | (3 | .98) | | | | (3 | .83) | | | | (0 | .18) | | | | (0 | .28) | | | | (0 | .46) | | | $ | 7 | .57 | | | | (33 | .38%) | | | $ | 26,143,633 | | | | | 1 | .20% | | | | 1 | .47% | | | | 1 | .20% | | | | 23 | .68% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .85 | | | | 0 | .16 | | | | 1 | .31 | | | | 1 | .47 | | | | (0 | .23) | | | | (0 | .23) | | | | (0 | .46) | | | $ | 11 | .86 | | | | 13 | .87% | | | $ | 44,365,796 | | | | | 1 | .18% | | | | 1 | .37% | | | | 1 | .18% | | | | 2 | .80% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .72 | | | | 0 | .11 | | | | 1 | .30 | | | | 1 | .41 | | | | (0 | .15) | | | | (0 | .13) | | | | (0 | .28) | | | $ | 10 | .85 | | | | 14 | .83% | | | $ | 39,398,958 | | | | | 1 | .19% | | | | 1 | .03% | | | | 1 | .20% | | | | 6 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 8 | .99 | | | | 0 | .14 | | | | 0 | .73 | | | | 0 | .87 | | | | (0 | .14) | | | | – | | | | | (0 | .14) | | | $ | 9 | .72 | | | | 9 | .74% | | | $ | 30,176,729 | | | | | 1 | .21% | | | | 1 | .40% | | | | –(f) | | | | | 5 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .26 | | | | 0 | .07 | | | | 0 | .73 | | | | 0 | .80 | | | | (0 | .07) | | | | – | | | | | (0 | .07) | | | $ | 8 | .99 | | | | 9 | .66% | | | $ | 19,546,083 | | | | | 1 | .19% | | | | 0 | .67% | | | | 1 | .19% | | | | 2 | .74% | | |
34 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Aggressive Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .86 | | | | 0 | .15 | | | | (3 | .98) | | | | (3 | .83) | | | | (0 | .18) | | | | (0 | .28) | | | | (0 | .46) | | | $ | 7 | .57 | | | | (33 | .38%) | | | $ | 132,062,033 | | | | | 1 | .20% | | | | 1 | .47% | | | | 1 | .20% | | | | 23 | .68% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .86 | | | | 0 | .16 | | | | 1 | .30 | | | | 1 | .46 | | | | (0 | .23) | | | | (0 | .23) | | | | (0 | .46) | | | $ | 11 | .86 | | | | 13 | .87% | | | $ | 229,820,512 | | | | | 1 | .18% | | | | 1 | .37% | | | | 1 | .18% | | | | 2 | .80% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .72 | | | | 0 | .11 | | | | 1 | .31 | | | | 1 | .42 | | | | (0 | .15) | | | | (0 | .13) | | | | (0 | .28) | | | $ | 10 | .86 | | | | 14 | .83% | | | $ | 192,829,644 | | | | | 1 | .19% | | | | 1 | .03% | | | | 1 | .20% | | | | 6 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 8 | .99 | | | | 0 | .14 | | | | 0 | .73 | | | | 0 | .87 | | | | (0 | .14) | | | | – | | | | | (0 | .14) | | | $ | 9 | .72 | | | | 9 | .74% | | | $ | 155,315,482 | | | | | 1 | .21% | | | | 1 | .39% | | | | –(f) | | | | | 5 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .27 | | | | 0 | .07 | | | | 0 | .72 | | | | 0 | .79 | | | | (0 | .07) | | | | – | | | | | (0 | .07) | | | $ | 8 | .99 | | | | 9 | .58% | | | $ | 99,210,776 | | | | | 1 | .19% | | | | 0 | .66% | | | | 1 | .19% | | | | 2 | .74% | | |
| | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .87 | | | | 0 | .21 | | | | (3 | .99) | | | | (3 | .78) | | | | (0 | .23) | | | | (0 | .28) | | | | (0 | .51) | | | $ | 7 | .58 | | | | (33 | .06%) | | | $ | 82,732,049 | | | | | 0 | .84% | | | | 1 | .81% | | | | 0 | .84% | | | | 23 | .68% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .87 | | | | 0 | .24 | | | | 1 | .27 | | | | 1 | .51 | | | | (0 | .28) | | | | (0 | .23) | | | | (0 | .51) | | | $ | 11 | .87 | | | | 14 | .25% | | | $ | 57,399,585 | | | | | 0 | .79% | | | | 1 | .69% | | | | 0 | .79% | | | | 2 | .80% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .75 | | | | 0 | .20 | | | | 1 | .27 | | | | 1 | .47 | | | | (0 | .22) | | | | (0 | .13) | | | | (0 | .35) | | | $ | 10 | .87 | | | | 15 | .43% | | | $ | 2,847,424 | | | | | 0 | .80% | | | | 1 | .73% | | | | 0 | .80% | | | | 6 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .01 | | | | 0 | .20 | | | | 0 | .74 | | | | 0 | .94 | | | | (0 | .20) | | | | – | | | | | (0 | .20) | | | $ | 9 | .75 | | | | 10 | .49% | | | $ | 253,440 | | | | | 0 | .61% | | | | 1 | .92% | | | | –(f) | | | | | 5 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .26 | | | | 0 | .10 | | | | 0 | .75 | | | | 0 | .85 | | | | (0 | .10) | | | | – | | | | | (0 | .10) | | | $ | 9 | .01 | | | | 10 | .27% | | | $ | 62,882 | | | | | 0 | .62% | | | | 1 | .19% | | | | –(f) | | | | | 2 | .74% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 12 | .03 | | | | 0 | .26 | | | | (4 | .03) | | | | (3 | .77) | | | | (0 | .29) | | | | (0 | .28) | | | | (0 | .57) | | | $ | 7 | .69 | | | | (32 | .65%) | | | $ | 53,214,335 | | | | | 0 | .20% | | | | 2 | .44% | | | | 0 | .20% | | | | 23 | .68% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .99 | | | | 0 | .32 | | | | 1 | .28 | | | | 1 | .60 | | | | (0 | .33) | | | | (0 | .23) | | | | (0 | .56) | | | $ | 12 | .03 | | | | 14 | .96% | | | $ | 65,583,607 | | | | | 0 | .19% | | | | 2 | .22% | | | | 0 | .19% | | | | 2 | .80% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .85 | | | | 0 | .25 | | | | 1 | .27 | | | | 1 | .52 | | | | (0 | .25) | | | | (0 | .13) | | | | (0 | .38) | | | $ | 10 | .99 | | | | 15 | .84% | | | $ | 3,863,570 | | | | | 0 | .19% | | | | 2 | .07% | | | | 0 | .20% | | | | 6 | .67% | | |
| Period Ended October 31, 2005 (g) | | | $ | 9 | .67 | | | | 0 | .12 | | | | 0 | .20 | | | | 0 | .32 | | | | (0 | .14) | | | | – | | | | | (0 | .14) | | | $ | 9 | .85 | | | | 3 | .37% | | | $ | 1,033 | | | | | 0 | .24% | | | | 1 | .73% | | | | –(f) | | | | | 5 | .51% | | |
2008 Annual Report 35
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Aggressive Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 12 | .02 | | | | 0 | .21 | | | | (4 | .03) | | | | (3 | .82) | | | | (0 | .24) | | | | (0 | .28) | | | | (0 | .52) | | | $ | 7 | .68 | | | | (32 | .96%) | | | $ | 867,115,201 | | | | | 0 | .60% | | | | 2 | .07% | | | | 0 | .60% | | | | 23 | .68% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .98 | | | | 0 | .24 | | | | 1 | .32 | | | | 1 | .56 | | | | (0 | .29) | | | | (0 | .23) | | | | (0 | .52) | | | $ | 12 | .02 | | | | 14 | .55% | | | $ | 1,389,856,875 | | | | | 0 | .58% | | | | 1 | .97% | | | | 0 | .58% | | | | 2 | .80% | | |
| Year Ended October 31, 2006 | | | $ | 9 | .83 | | | | 0 | .17 | | | | 1 | .32 | | | | 1 | .49 | | | | (0 | .21) | | | | (0 | .13) | | | | (0 | .34) | | | $ | 10 | .98 | | | | 15 | .53% | | | $ | 1,077,126,226 | | | | | 0 | .59% | | | | 1 | .54% | | | | 0 | .60% | | | | 6 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .08 | | | | 0 | .20 | | | | 0 | .75 | | | | 0 | .95 | | | | (0 | .20) | | | | – | | | | | (0 | .20) | | | $ | 9 | .83 | | | | 10 | .48% | | | $ | 736,304,452 | | | | | 0 | .61% | | | | 1 | .98% | | | | –(f) | | | | | 5 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .34 | | | | 0 | .11 | | | | 0 | .74 | | | | 0 | .85 | | | | (0 | .11) | | | | – | | | | | (0 | .11) | | | $ | 9 | .08 | | | | 10 | .22% | | | $ | 452,237,154 | | | | | 0 | .59% | | | | 1 | .26% | | | | 0 | .59% | | | | 2 | .74% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | There were no fee reductions during the period. |
| (g) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
36 Annual Report 2008
| |
Nationwide Investor Destinations
Moderate Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Investor Destinations Moderate Fund (Class A at NAV) registered -24.88% versus -22.74% for its composite benchmark, 60% Standard & Poor’s 500® (S&P 500) Index, 25% Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] and 15% Citigroup 3-Month Treasury Bill (T-Bill) Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target Allocation Growth Funds (consisting of 666 funds as of October 31, 2008) was -30.82% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Contract and the Nationwide Money Market Fund (each with an allocation within the Fund of approximately 5%) posted positive returns, gaining 4.08% and 2.65%, respectively, during the reporting period. The Nationwide Contract is a fixed-interest contract issued and guaranteed by Nationwide Life Insurance Company that has a stable principal value and pays a credited interest rate that can change quarterly.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 30% and 15%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the S&P 500 Index recorded negative performance for the reporting period. Although each sector lost ground, the relatively better performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the relatively better performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects do not appear to be good. Many investors appear to have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not further erode their capital. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term appears to be relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Investor Destinations Funds. By combining underlying investments in major asset classes that typically behave differently under various market conditions, it is possible for the Funds to achieve higher risk-adjusted returns over time than those that could be achieved with a less-diversified portfolio of investments. We believe this particular Fund’s significant equity-oriented allocations across U.S. and international markets as well as fixed-income-oriented allocations position the Fund well to deliver the potential for strong, risk-adjusted returns for the moderate investor over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 37
Nationwide Investor Destinations Moderate Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12 Month
|
| Asset Classes | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 30% | | | | -36.25% | |
| |
| |
| Intermediate Term Bonds | | Nationwide Bond Index Fund | | | 25% | | | | 0.03% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 15% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index | | | 10% | | | | -36.63% | |
| | | Funds | | | | | | | | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 5% | | | | -34.45% | |
| |
| |
| Short-Term Bonds | | Nationwide Contract | | | 5% | | | | 4.08% | |
| |
| |
| Short-Term Bonds | | Nationwide Enhanced Income Fund | | | 5% | | | | 2.74% | |
| |
| |
| Money Market Investments | | Nationwide Money Market Fund | | | 5% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares for each underlying investment, except for the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
38 Annual Report 2008
| |
| Fund Performance | Nationwide Investor Destinations Moderate Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Class A | | w/o SC2 | | | -24.88% | | | | 1.94% | | | | 0.67% | | | | 0.73% | |
| | | w/SC3 | | | -29.20% | | | | 0.74% | | | | -0.03% | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -25.37% | | | | 1.21% | | | | -0.05% | | | | 1.47% | |
| | | w/SC4 | | | -28.94% | | | | 0.85% | | | | -0.05% | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -25.44% | | | | 1.20% | | | | -0.07% | | | | 1.47% | |
| | | w/SC6 | | | -26.15% | | | | 1.20% | | | | -0.07% | | | | | |
| |
| |
Class R7,8 | | | | | -25.18% | | | | 1.67% | | | | 0.21% | | | | 1.17% | |
| |
| |
Institutional Class7,9 | | | | | -24.64% | | | | 2.16% | | | | 0.78% | | | | 0.47% | |
| |
| |
Service Class7 | | | | | -24.97% | | | | 1.81% | | | | 0.58% | | | | 0.86% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on March 31, 2000. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | Not subject to any sales charges. |
| |
| 8 | | These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares. |
| |
| 9 | | These returns until the creation of Institutional Class shares (12/29/04) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Institutional Class shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Class B shares. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Investor Destinations Moderate Fund, Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers U.S. Aggregate Bond Index (LB U.S. Aggregate Bond)(a)], S&P 500 Index (S&P 500)(b), the Citigroup 3-Month T Bill Index(c), the Moderate Composite Index(d), and the Consumer Price Index (CPI)(e) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more. |
| |
| (b) | | The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at |
2008 Annual Report 39
| |
| Fund Performance | Nationwide Investor Destinations Moderate Fund |
Continued
| | |
| | how the stock prices of large U.S. companies have performed. |
| |
| (c) | | The Citigroup 3-Month T Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill). |
| |
| (d) | | The Moderate Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderate Composite is a combination of S&P 500 (60%), Barclays Capital U.S. Aggregate Bond Index (25%) and Citigroup 3-Month T Bill Index (15%). |
| |
| (e) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
40 Annual Report 2008
| |
| Shareholder | Nationwide Investor Destinations |
| |
| Expense Example | Moderate Fund |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
Nationwide Investor Destinations
| | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Moderate Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 789.46 | | | | 2.06 | | | | 0.46 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.83 | | | | 2.33 | | | | 0.46 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 786.23 | | | | 5.44 | | | | 1.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.05 | | | | 6.17 | | | | 1.21 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 786.38 | | | | 5.44 | | | | 1.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.05 | | | | 6.17 | | | | 1.21 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 787.33 | | | | 3.80 | | | | 0.85 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.88 | | | | 4.31 | | | | 0.85 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 790.55 | | | | 0.95 | | | | 0.21 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,024.08 | | | | 1.07 | | | | 0.21 | |
| |
| |
| Service Class | | | Actual | | | | 1,000.00 | | | | 788.79 | | | | 2.39 | | | | 0.53 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.46 | | | | 2.71 | | | | 0.53 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 41
| |
| Portfolio Summary | Nationwide Investor Destinations Moderate Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 93.1% | |
| Fixed Contract | | | 7.0% | |
| Liabilities in excess of other assets | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 56.4% | |
| Fixed Income Funds | | | 33.6% | |
| Fixed Contract | | | 7.0% | |
| Money Market Fund | | | 3.1% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 29.2% | |
| Nationwide Bond Index Fund, Institutional Class | | | 27.0% | |
| Nationwide International Index Fund, Institutional Class | | | 13.6% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 9.1% | |
| Nationwide Fixed Contract, 4.00% | | | 7.0% | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 6.6% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 4.5% | |
| Nationwide Money Market Fund, Institutional Class | | | 3.1% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
42 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Investor Destinations Moderate Fund
| | | | | | | | | |
| Mutual Funds 93.1%(a) |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 56.4% |
| Nationwide International Index Fund, Institutional Class | | | 23,268,463 | | | $ | 147,754,742 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 9,883,920 | | | | 98,443,844 | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 39,082,601 | | | | 317,741,548 | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 5,931,454 | | | | 49,409,010 | |
| | | | | | | | | |
| | | | | | | | 613,349,144 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 33.6% |
| Nationwide Bond Index Fund, Institutional Class | | | 28,408,615 | | | | 292,892,823 | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 7,950,279 | | | | 72,029,525 | |
| | | | | | | | | |
| | | | | | | | 364,922,348 | |
| | | | | | | | | |
| |
| |
Money Market Fund 3.1% |
| Nationwide Money Market Fund, Institutional Class | | | 34,147,743 | | | | 34,147,743 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 1,012,419,235 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Fixed Contract 7.0%(a) (b) |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| Nationwide Fixed Contract, 4.00% | | $ | 75,862,745 | | | | 75,862,745 | |
| | | | | | | | | |
| | | | | |
Total Fixed Contract | | | 75,862,745 | |
| | | | | |
| | | | | |
Total Investments (Cost $1,347,031,753) (c) — 100.1% | | | 1,088,281,980 | |
Liabilities in excess of other assets — (0.1)% | | | | | | | (832,461 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 1,087,449,519 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees. |
| |
| (c) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 43
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | Destinations Moderate Fund | |
| | | | |
Assets: | | | | | |
| Investments in affiliates, at value (cost $1,347,031,753) | | | $ | 1,088,281,980 | |
| Dividend receivable | | | | 1,425,371 | |
| Receivable for capital shares issued | | | | 588,649 | |
| Receivable for investments sold | | | | 196739 | |
| Prepaid expenses and other assets | | | | 50,514 | |
| | | | | | |
| Total Assets | | | | 1,090,543,253 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 1,417,020 | |
| Payable for capital shares redeemed | | | | 983,770 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 121,832 | |
| Accounting and transfer agent fees | | | | 54,044 | |
| Distribution fees | | | | 341,172 | |
| Administrative servicing fees | | | | 53,102 | |
| Trustee fees | | | | 3,552 | |
| Compliance program costs (Note 3) | | | | 5,596 | |
| Custodian fees | | | | 11,896 | |
| Other | | | | 101,750 | |
| | | | | | |
| Total Liabilities | | | | 3,093,734 | |
| | | | | | |
Net Assets | | | $ | 1,087,449,519 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 1,255,562,017 | |
| Accumulated undistributed net investment income | | | | 1,510,848 | |
| Accumulated net realized gains from investment transactions | | | | 89,126,427 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (258,749,773 | ) |
| | | | | | |
Net Assets | | | $ | 1,087,449,519 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 64,773,015 | |
| Class B Shares | | | | 24,758,716 | |
| Class C Shares | | | | 136,846,923 | |
| Class R Shares | | | | 74,954,889 | |
| Institutional Class Shares | | | | 65,760,859 | |
| Service Class Shares | | | | 720,355,117 | |
| | | | | | |
| Total | | | $ | 1,087,449,519 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
44 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | Destinations Moderate Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 7,813,585 | |
| Class B Shares | | | | 3,005,721 | |
| Class C Shares | | | | 16,669,914 | |
| Class R Shares | | | | 9,128,709 | |
| Institutional Class Shares | | | | 7,935,932 | |
| Service Class Shares | | | | 86,994,939 | |
| | | | | | |
| Total | | | | 131,548,800 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.29 | |
| Class B Shares (a) | | | $ | 8.24 | |
| Class C Shares (b) | | | $ | 8.21 | |
| Class R Shares | | | $ | 8.21 | |
| Institutional Class Shares | | | $ | 8.29 | |
| Service Class Shares | | | $ | 8.28 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 8.80 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 45
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Investor
| |
| | | | Destinations
| |
| | | Moderate Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 36,961,452 | |
| Interest income from affiliates | | | | 3,790,043 | |
| | | | | | |
| Total Income | | | | 40,751,495 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 1,760,896 | |
| Accounting and transfer agent fees | | | | 464,468 | |
| Distribution fees Class A | | | | 207,043 | |
| Distribution fees Class B | | | | 331,892 | |
| Distribution fees Class C | | | | 1,832,639 | |
| Distribution fees Class R | | | | 368,046 | |
| Distribution fees Service Class | | | | 2,253,132 | |
| Administrative servicing fees Class A | | | | 1,664 | |
| Administrative servicing fees Class R | | | | 99,799 | |
| Administrative servicing fees Service Class | | | | 1,262,104 | |
| Registration and filing fees | | | | 30,490 | |
| Professional fees | | | | 190,641 | |
| Printing fees | | | | 97,154 | |
| Trustee fees | | | | 70,008 | |
| Custodian fees | | | | 81,629 | |
| Other | | | | 106,676 | |
| | | | | | |
| Total expenses before waived expenses | | | | 9,158,281 | |
| | | | | | |
| Earning credit (Note 4) | | | | (14,805 | ) |
| Administrator fees voluntarily waived | | | | (25,780 | ) |
| | | | | | |
| Net Expenses | | | | 9,117,696 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 31,633,799 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 19,466,564 | |
| Net realized gains from investment transactions with affiliates | | | | 75,905,882 | |
| | | | | | |
| Net realized gains from investment transactions with affiliated funds | | | | 95,372,446 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (505,577,722 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (410,205,276 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (378,571,477 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
46 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderate Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 31,633,799 | | | | $ | 39,345,773 | |
| Net realized gains from investment transactions | | | | 95,372,446 | | | | | 41,790,304 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (505,577,722 | ) | | | | 94,586,937 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (378,571,477 | ) | | | | 175,723,014 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (2,430,240 | ) | | | | (2,376,622 | ) |
| Class B | | | | (667,805 | ) | | | | (842,104 | ) |
| Class C | | | | (3,710,811 | ) | | | | (4,713,541 | ) |
| Class R | | | | (1,869,423 | ) | | | | (651,677 | ) |
| Institutional Class | | | | (2,621,457 | ) | | | | (1,583,975 | ) |
| Service Class | | | | (23,920,035 | ) | | | | (35,944,547 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (2,160,229 | ) | | | | (1,362,206 | ) |
| Class B | | | | (919,537 | ) | | | | (698,025 | ) |
| Class C | | | | (5,113,446 | ) | | | | (3,820,716 | ) |
| Class R | | | | (1,492,012 | ) | | | | (113,116 | ) |
| Institutional Class | | | | (2,046,104 | ) | | | | (131,055 | ) |
| Service Class | | | | (23,366,415 | ) | | | | (23,095,572 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (70,317,514 | ) | | | | (75,333,156 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (311,248,570 | ) | | | | 298,149,617 | |
| | | | | | | | | | | |
| Change in net assets | | | | (760,137,561 | ) | | | | 398,539,475 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,847,587,080 | | | | | 1,449,047,605 | |
| | | | | | | | | | | |
| End of period | | | $ | 1,087,449,519 | | | | $ | 1,847,587,080 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 1,510,848 | | | | $ | 2,086,634 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 21,028,709 | | | | $ | 30,830,583 | |
| Dividends reinvested | | | | 2,847,298 | | | | | 2,122,200 | |
| Cost of shares redeemed | | | | (21,914,515 | ) | | | | (17,415,700 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 1,961,492 | | | | | 15,537,083 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,264,500 | | | | | 3,814,286 | |
| Dividends reinvested | | | | 841,398 | | | | | 801,110 | |
| Cost of shares redeemed | | | | (6,236,670 | ) | | | | (3,789,422 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (3,130,772 | ) | | | | 825,974 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 47
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderate Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 26,891,187 | | | | $ | 54,636,352 | |
| Dividends reinvested | | | | 2,139,413 | | | | | 2,050,249 | |
| Cost of shares redeemed | | | | (46,384,378 | ) | | | | (40,755,285 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (17,353,778 | ) | | | | 15,931,316 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 56,759,821 | | | | | 54,862,509 | |
| Dividends reinvested | | | | 2,849,602 | | | | | 477,015 | |
| Cost of shares redeemed | | | | (13,214,979 | ) | | | | (7,154,808 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 46,394,444 | | | | | 48,184,716 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 21,079,808 | | | | | 77,557,110 | |
| Dividends reinvested | | | | 4,667,546 | | | | | 1,715,030 | |
| Cost of shares redeemed | | | | (14,834,827 | ) | | | | (5,634,045 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 10,912,527 | | | | | 73,638,095 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 119,090,449 | | | | | 241,646,355 | |
| Dividends reinvested | | | | 47,286,361 | | | | | 59,039,897 | |
| Cost of shares redeemed | | | | (516,409,293 | ) | | | | (156,653,819 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | (350,032,483 | ) | | | | 144,032,433 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (311,248,570 | ) | | | $ | 298,149,617 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 2,024,167 | | | | | 2,749,639 | |
| Reinvested | | | | 266,624 | | | | | 190,819 | |
| Redeemed | | | | (2,153,091 | ) | | | | (1,546,886 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 137,700 | | | | | 1,393,572 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 218,557 | | | | | 343,282 | |
| Reinvested | | | | 78,724 | | | | | 72,704 | |
| Redeemed | | | | (621,389 | ) | | | | (340,234 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (324,108 | ) | | | | 75,752 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 2,602,605 | | | | | 4,937,280 | |
| Reinvested | | | | 200,997 | | | | | 186,802 | |
| Redeemed | | | | (4,613,819 | ) | | | | (3,663,997 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (1,810,217 | ) | | | | 1,460,085 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 5,504,333 | | | | | 4,898,906 | |
| Reinvested | | | | 270,963 | | | | | 42,573 | |
| Redeemed | | | | (1,317,194 | ) | | | | (640,561 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 4,458,102 | | | | | 4,300,918 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
48 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderate Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 1,999,547 | | | | | 7,022,019 | |
| Reinvested | | | | 437,901 | | | | | 152,505 | |
| Redeemed | | | | (1,462,547 | ) | | | | (497,624 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 974,901 | | | | | 6,676,900 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 11,447,823 | | | | | 21,544,058 | |
| Reinvested | | | | 4,430,273 | | | | | 5,326,817 | |
| Redeemed | | | | (46,950,349 | ) | | | | (14,098,634 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | (31,072,253 | ) | | | | 12,772,241 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (27,635,875 | ) | | | | 26,679,468 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 49
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderate Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Net Asset
| | | | | | Unrealized
| | | | | | | | | | | | | | | Net Asset
| | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Value,
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Value,
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | Beginning
| | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | End of
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .65 | | | | 0 | .27 | | | | (3 | .04) | | | | (2 | .77) | | | | (0 | .31) | | | | (0 | .28) | | | | (0 | .59) | | | $ | 8 | .29 | | | | (24 | .88%) | | | $ | 64,773,015 | | | | | 0 | .46% | | | | 2 | .56% | | | | 0 | .46% | | | | 21 | .57% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .97 | | | | 0 | .30 | | | | 0 | .93 | | | | 1 | .23 | | | | (0 | .34) | | | | (0 | .21) | | | | (0 | .55) | | | $ | 11 | .65 | | | | 11 | .56% | | | $ | 89,397,222 | | | | | 0 | .44% | | | | 2 | .59% | | | | 0 | .44% | | | | 2 | .98% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .11 | | | | 0 | .23 | | | | 1 | .00 | | | | 1 | .23 | | | | (0 | .26) | | | | (0 | .11) | | | | (0 | .37) | | | $ | 10 | .97 | | | | 12 | .41% | | | $ | 68,921,688 | | | | | 0 | .46% | | | | 2 | .16% | | | | 0 | .46% | | | | 8 | .40% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .60 | | | | 0 | .23 | | | | 0 | .52 | | | | 0 | .75 | | | | (0 | .23) | | | | (0 | .01) | | | | (0 | .24) | | | $ | 10 | .11 | | | | 7 | .86% | | | $ | 57,505,312 | | | | | 0 | .48% | | | | 2 | .35% | | | | –(f) | | | | | 5 | .91% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .01 | | | | 0 | .17 | | | | 0 | .58 | | | | 0 | .75 | | | | (0 | .16) | | | | – | | | | | (0 | .16) | | | $ | 9 | .60 | | | | 8 | .36% | | | $ | 35,156,632 | | | | | 0 | .47% | | | | 1 | .78% | | | | 0 | .47% | | | | 5 | .64% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .55 | | | | 0 | .19 | | | | (3 | .01) | | | | (2 | .82) | | | | (0 | .21) | | | | (0 | .28) | | | | (0 | .49) | | | $ | 8 | .24 | | | | (25 | .37%) | | | $ | 24,758,716 | | | | | 1 | .21% | | | | 1 | .82% | | | | 1 | .21% | | | | 21 | .57% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .89 | | | | 0 | .20 | | | | 0 | .92 | | | | 1 | .12 | | | | (0 | .25) | | | | (0 | .21) | | | | (0 | .46) | | | $ | 11 | .55 | | | | 10 | .64% | | | $ | 38,474,634 | | | | | 1 | .18% | | | | 1 | .85% | | | | 1 | .18% | | | | 2 | .98% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .04 | | | | 0 | .15 | | | | 0 | .99 | | | | 1 | .14 | | | | (0 | .18) | | | | (0 | .11) | | | | (0 | .29) | | | $ | 10 | .89 | | | | 11 | .61% | | | $ | 35,436,566 | | | | | 1 | .18% | | | | 1 | .51% | | | | 1 | .19% | | | | 8 | .40% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .55 | | | | 0 | .16 | | | | 0 | .50 | | | | 0 | .66 | | | | (0 | .16) | | | | (0 | .01) | | | | (0 | .17) | | | $ | 10 | .04 | | | | 6 | .96% | | | $ | 28,906,723 | | | | | 1 | .20% | | | | 1 | .66% | | | | –(f) | | | | | 5 | .91% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .96 | | | | 0 | .10 | | | | 0 | .59 | | | | 0 | .69 | | | | (0 | .10) | | | | – | | | | | (0 | .10) | | | $ | 9 | .55 | | | | 7 | .72% | | | $ | 19,504,323 | | | | | 1 | .19% | | | | 1 | .07% | | | | 1 | .19% | | | | 5 | .64% | | |
50 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderate Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Net Asset
| | | | | | Unrealized
| | | | | | | | | | | | | | | Net Asset
| | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Value,
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Value,
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | Beginning
| | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | End of
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .52 | | | | 0 | .19 | | | | (3 | .01) | | | | (2 | .82) | | | | (0 | .21) | | | | (0 | .28) | | | | (0 | .49) | | | $ | 8 | .21 | | | | (25 | .44%) | | | $ | 136,846,923 | | | | | 1 | .21% | | | | 1 | .82% | | | | 1 | .21% | | | | 21 | .57% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .86 | | | | 0 | .21 | | | | 0 | .92 | | | | 1 | .13 | | | | (0 | .26) | | | | (0 | .21) | | | | (0 | .47) | | | $ | 11 | .52 | | | | 10 | .69% | | | $ | 212,829,000 | | | | | 1 | .18% | | | | 1 | .86% | | | | 1 | .18% | | | | 2 | .98% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .01 | | | | 0 | .16 | | | | 0 | .99 | | | | 1 | .15 | | | | (0 | .19) | | | | (0 | .11) | | | | (0 | .30) | | | $ | 10 | .86 | | | | 11 | .65% | | | $ | 184,788,048 | | | | | 1 | .18% | | | | 1 | .51% | | | | 1 | .19% | | | | 8 | .40% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .52 | | | | 0 | .16 | | | | 0 | .50 | | | | 0 | .66 | | | | (0 | .16) | | | | (0 | .01) | | | | (0 | .17) | | | $ | 10 | .01 | | | | 6 | .98% | | | $ | 150,491,449 | | | | | 1 | .20% | | | | 1 | .66% | | | | –(f) | | | | | 5 | .91% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .94 | | | | 0 | .10 | | | | 0 | .58 | | | | 0 | .68 | | | | (0 | .10) | | | | – | | | | | (0 | .10) | | | $ | 9 | .52 | | | | 7 | .67% | | | $ | 102,057,894 | | | | | 1 | .19% | | | | 1 | .07% | | | | 1 | .19% | | | | 5 | .64% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .55 | | | | 0 | .24 | | | | (3 | .03) | | | | (2 | .79) | | | | (0 | .27) | | | | (0 | .28) | | | | (0 | .55) | | | $ | 8 | .21 | | | | (25 | .18%) | | | $ | 74,954,889 | | | | | 0 | .84% | | | | 2 | .16% | | | | 0 | .84% | | | | 21 | .57% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .89 | | | | 0 | .27 | | | | 0 | .91 | | | | 1 | .18 | | | | (0 | .31) | | | | (0 | .21) | | | | (0 | .52) | | | $ | 11 | .55 | | | | 11 | .17% | | | $ | 53,929,660 | | | | | 0 | .76% | | | | 2 | .21% | | | | 0 | .76% | | | | 2 | .98% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .06 | | | | 0 | .22 | | | | 0 | .97 | | | | 1 | .19 | | | | (0 | .25) | | | | (0 | .11) | | | | (0 | .36) | | | $ | 10 | .89 | | | | 12 | .11% | | | $ | 4,025,758 | | | | | 0 | .79% | | | | 1 | .88% | | | | 0 | .79% | | | | 8 | .40% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .56 | | | | 0 | .22 | | | | 0 | .51 | | | | 0 | .73 | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 10 | .06 | | | | 7 | .68% | | | $ | 198,589 | | | | | 0 | .61% | | | | 2 | .09% | | | | –(f) | | | | | 5 | .91% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .96 | | | | 0 | .13 | | | | 0 | .60 | | | | 0 | .73 | | | | (0 | .13) | | | | – | | | | | (0 | .13) | | | $ | 9 | .56 | | | | 8 | .19% | | | $ | 42,024 | | | | | 0 | .62% | | | | 1 | .79% | | | | –(f) | | | | | 5 | .64% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .65 | | | | 0 | .30 | | | | (3 | .04) | | | | (2 | .74) | | | | (0 | .34) | | | | (0 | .28) | | | | (0 | .62) | | | $ | 8 | .29 | | | | (24 | .64%) | | | $ | 65,760,859 | | | | | 0 | .20% | | | | 2 | .81% | | | | 0 | .21% | | | | 21 | .57% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .98 | | | | 0 | .33 | | | | 0 | .91 | | | | 1 | .24 | | | | (0 | .36) | | | | (0 | .21) | | | | (0 | .57) | | | $ | 11 | .65 | | | | 11 | .73% | | | $ | 81,099,547 | | | | | 0 | .19% | | | | 2 | .78% | | | | 0 | .19% | | | | 2 | .98% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .12 | | | | 0 | .27 | | | | 0 | .99 | | | | 1 | .26 | | | | (0 | .29) | | | | (0 | .11) | | | | (0 | .40) | | | $ | 10 | .98 | | | | 12 | .69% | | | $ | 3,119,086 | | | | | 0 | .21% | | | | 2 | .55% | | | | 0 | .21% | | | | 8 | .40% | | |
| Period Ended October 31, 2005 (g) | | | $ | 10 | .02 | | | | 0 | .18 | | | | 0 | .09 | | | | 0 | .27 | | | | (0 | .17) | | | | – | | | | | (0 | .17) | | | $ | 10 | .12 | | | | 2 | .71% | | | $ | 1,027 | | | | | 0 | .23% | | | | 2 | .45% | | | | –(f) | | | | | 5 | .91% | | |
2008 Annual Report 51
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderate Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Net Asset
| | | | | | Unrealized
| | | | | | | | | | | | | | | Net Asset
| | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Value,
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Value,
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | Beginning
| | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | End of
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .62 | | | | 0 | .26 | | | | (3 | .04) | | | | (2 | .78) | | | | (0 | .28) | | | | (0 | .28) | | | | (0 | .56) | | | $ | 8 | .28 | | | | (24 | .97%) | | | $ | 720,355,117 | | | | | 0 | .59% | | | | 2 | .42% | | | | 0 | .60% | | | | 21 | .57% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .95 | | | | 0 | .27 | | | | 0 | .93 | | | | 1 | .20 | | | | (0 | .32) | | | | (0 | .21) | | | | (0 | .53) | | | $ | 11 | .62 | | | | 11 | .33% | | | $ | 1,371,857,017 | | | | | 0 | .58% | | | | 2 | .45% | | | | 0 | .58% | | | | 2 | .98% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .09 | | | | 0 | .22 | | | | 1 | .00 | | | | 1 | .22 | | | | (0 | .25) | | | | (0 | .11) | | | | (0 | .36) | | | $ | 10 | .95 | | | | 12 | .30% | | | $ | 1,152,756,459 | | | | | 0 | .58% | | | | 2 | .05% | | | | 0 | .59% | | | | 8 | .40% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .59 | | | | 0 | .22 | | | | 0 | .51 | | | | 0 | .73 | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 10 | .09 | | | | 7 | .66% | | | $ | 934,203,210 | | | | | 0 | .60% | | | | 2 | .24% | | | | –(f) | | | | | 5 | .91% | | |
| Year Ended October 31, 2004 | | | $ | 8 | .99 | | | | 0 | .16 | | | | 0 | .59 | | | | 0 | .75 | | | | (0 | .15) | | | | – | | | | | (0 | .15) | | | $ | 9 | .59 | | | | 8 | .34% | | | $ | 487,130,429 | | | | | 0 | .59% | | | | 1 | .66% | | | | 0 | .59% | | | | 5 | .64% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | There were no fee reductions during the period. |
| (g) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
52 Annual Report 2008
| |
Nationwide Investor Destinations
Moderately Conservative | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Investor Destinations Moderately Conservative Fund (Class A at NAV) registered -16.97% versus -15.29% for its composite benchmark, 40% Standard & Poor’s 500® (S&P 500) Index, 35% Barclays Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] and 25% Citigroup 3-Month Treasury Bill (T-Bill) Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target Allocation Moderate Funds (consisting of 509 funds as of October 31, 2008) was -26.48% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Contract and the Nationwide Money Market Fund (each with an allocation within the Fund of approximately 10%) posted positive returns, gaining 4.08% and 2.65 %, respectively, during the reporting period. The Nationwide Contract is a fixed-interest contract issued and guaranteed by Nationwide Life Insurance Company that has a stable principal value and pays a credited interest rate that can change quarterly.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 20% and 10%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the S&P 500 Index recorded negative performance for the reporting period. Although each sector lost ground, the relatively better performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the relatively better performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects do not appear to be good. Many investors appear to have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term appears to be relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Investor Destinations Funds. By combining underlying investments in major asset classes that typically behave differently under various market conditions, it is possible for the Funds to achieve higher risk-adjusted returns over time than those that could be achieved with a less-diversified portfolio of investments. We believe this particular Fund’s blend of significant fixed-income-oriented allocations as well as equity-oriented allocations positions the Fund well to deliver the potential for strong, risk-adjusted returns for the moderately conservative investor over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 53
Nationwide Investor Destinations Moderately Conservative Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Classes | | Underlying Investments | | Allocation* | | Return |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index Fund | | | 35% | | | | 0.03% | |
| |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index | | | 20% | | | | -36.25% | |
| |
| |
| Short-Term Bonds | | Nationwide Contract | | | 10% | | | | 4.08% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 10% | | | | -36.63% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 10% | | | | -46.44% | |
| |
| |
| Money Market Investments | | Nationwide Money Market Fund | | | 10% | | | | 2.64% | |
| |
| |
| Short-Term Bonds | | Nationwide Enhanced Income | | | 5% | | | | 2.74% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares for each underlying investment except the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
54 Annual Report 2008
| |
| Fund Performance | Nationwide Investor Destinations Moderately
Conservative Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Class A | | w/o SC2 | | | -16.97% | | | | 2.30% | | | | 1.78% | | | | 0.76% | |
| | | w/SC3 | | | -21.74% | | | | 1.08% | | | | 1.08% | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -17.52% | | | | 1.58% | | | | 1.10% | | | | 1.50% | |
| | | w/SC4 | | | -21.45% | | | | 1.24% | | | | 1.10% | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -17.57% | | | | 1.58% | | | | 1.10% | | | | 1.50% | |
| | | w/SC6 | | | -18.35% | | | | 1.58% | | | | 1.10% | | | | | |
| |
| |
Class R7,8 | | | | | -17.31% | | | | 2.09% | | | | 1.41% | | | | 1.20% | |
| |
| |
Institutional Class7,9 | | | | | -16.74% | | | | 2.53% | | | | 1.93% | | | | 0.50% | |
| |
| |
Service Class7 | | | | | -16.96% | | | | 2.19% | | | | 1.73% | | | | 0.89% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on March 31, 2000. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | Not subject to any sales charges. |
| |
| 8 | | These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares. |
| |
| 9 | | These returns until the creation of Institutional Class shares (12/29/04) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Institutional Class shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Class B shares. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Investor Destinations Moderately Conservative Fund, Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers U.S. Aggregate Bond Index (LB U.S. Aggregate Bond)](a), S&P 500 Index (S&P 500)(b), the Citigroup 3-Month T Bill Index(c), the Moderately Conservative Composite Index(d), and the Consumer Price Index (CPI)(e) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
2008 Annual Report 55
| |
| Fund Performance | Nationwide Investor Destinations Moderately
Conservative Fund |
| | |
| (a) | | Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more. |
| |
| (b) | | The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed. |
| |
| (c) | | The Citigroup 3-Month T Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill). |
| |
| (d) | | The Moderately Conservative Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderately Conservative Composite is a combination of Barclays Capital U.S. Aggregate Bond Index (35%), S&P 500 (40%), and Citigroup 3-Month T Bill Index (25%). |
| |
| (e) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
56 Annual Report 2008
| |
| Shareholder | Nationwide Investor Destinations |
| |
| Expense Example | Moderately Conservative Fund |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
Nationwide Investor Destinations
| | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Moderately Conservative Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 847.51 | | | | 2.11 | | | | 0.45 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.85 | | | | 2.31 | | | | 0.45 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 844.28 | | | | 5.53 | | | | 1.19 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.14 | | | | 6.07 | | | | 1.19 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 844.69 | | | | 5.53 | | | | 1.19 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.14 | | | | 6.07 | | | | 1.19 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 845.51 | | | | 3.72 | | | | 0.80 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.10 | | | | 4.08 | | | | 0.80 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 848.73 | | | | 0.90 | | | | 0.19 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,024.17 | | | | 0.98 | | | | 0.19 | |
| |
| |
| Service Class | | | Actual | | | | 1,000.00 | | | | 847.62 | | | | 2.43 | | | | 0.52 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.50 | | | | 2.67 | | | | 0.52 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 57
| |
| Portfolio Summary | Nationwide Investor Destinations
Moderately Conservative Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 91.9% | |
| Fixed Contract | | | 8.2% | |
| Liabilities in excess of other assets | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Fixed Income Funds | | | 47.4% | |
| Equity Funds | | | 36.4% | |
| Fixed Contract | | | 8.2% | |
| Money Market Fund | | | 8.1% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide Bond Index Fund, Institutional Class | | | 36.6% | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 18.9% | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 10.8% | |
| Nationwide International Index Fund, Institutional Class | | | 8.8% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 8.7% | |
| Nationwide Fixed Contract, 4.00% | | | 8.2% | |
| Nationwide Money Market Fund, Institutional Class | | | 8.1% | |
| Other | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
58 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Investor Destinations Moderately Conservative Fund
| | | | | | | | | |
| Mutual Funds 91.9%(a) |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 36.4% |
| Nationwide International Index Fund, Institutional Class | | | 4,654,759 | | | $ | 29,557,717 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 2,966,081 | | | | 29,542,168 | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 7,821,505 | | | | 63,588,832 | |
| | | | | | | | | |
| | | | | | | | 122,688,717 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 47.4% |
| Nationwide Bond Index Fund, Institutional Class | | | 11,950,745 | | | | 123,212,181 | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 4,007,399 | | | | 36,307,039 | |
| | | | | | | | | |
| | | | | | | | 159,519,220 | |
| | | | | | | | | |
| |
| |
Money Market Fund 8.1% |
| Nationwide Money Market Fund, Institutional Class | | | 27,333,364 | | | | 27,333,364 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 309,541,301 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Fixed Contract 8.2%(a) (b) |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| Nationwide Fixed Contract, 4.00% | | $ | 27,650,061 | | | | 27,650,061 | |
| | | | | | | | | |
| | | | | |
Total Fixed Contract | | | 27,650,061 | |
| | | | | |
| | | | | |
Total Investments (Cost $395,159,524) (c) — 100.1% | | | 337,191,363 | |
| | | | | |
Liabilities in excess of other assets — (0.1)% | | | (304,422 | ) |
| | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 336,886,941 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees. |
| |
| (c) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 59
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | | Destinations Moderately
| |
| | | Conservative Fund | |
| | | | |
Assets: | | | | | |
| Investments in affiliates, at value (cost $395,159,524) | | | $ | 337,191,363 | |
| Dividend receivable | | | | 635,391 | |
| Receivable for capital shares issued | | | | 132,256 | |
| Receivable for investments sold | | | | 365,270 | |
| Prepaid expenses and other assets | | | | 41,060 | |
| | | | | | |
| Total Assets | | | | 338,365,340 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 632,369 | |
| Payable for capital shares redeemed | | | | 643,551 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 37,769 | |
| Accounting and transfer agent fees | | | | 13,615 | |
| Distribution fees | | | | 100,255 | |
| Administrative servicing fees | | | | 16,090 | |
| Trustee fees | | | | 950 | |
| Compliance program costs (Note 3) | | | | 1,247 | |
| Custodian fees | | | | 3,582 | |
| Other | | | | 28,971 | |
| | | | | | |
| Total Liabilities | | | | 1,478,399 | |
| | | | | | |
Net Assets | | | $ | 336,886,941 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 387,247,162 | |
| Accumulated undistributed net investment income | | | | 769,194 | |
| Accumulated net realized gains from investment transactions | | | | 6,838,746 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (57,968,161 | ) |
| | | | | | |
Net Assets | | | $ | 336,886,941 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 23,093,974 | |
| Class B Shares | | | | 5,702,625 | |
| Class C Shares | | | | 32,042,631 | |
| Class R Shares | | | | 29,677,803 | |
| Institutional Class Shares | | | | 11,932,939 | |
| Service Class Shares | | | | 234,436,969 | |
| | | | | | |
| Total | | | $ | 336,886,941 | |
| | | | | | |
The accompanying notesare an integral part of these financial statements.
60 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | | Destinations Moderately
| |
| | | | Conservative Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 2,672,429 | |
| Class B Shares | | | | 660,079 | |
| Class C Shares | | | | 3,721,523 | |
| Class R Shares | | | | 3,429,203 | |
| Institutional Class Shares | | | | 1,371,181 | |
| Service Class Shares | | | | 27,017,852 | |
| | | | | | |
| Total | | | | 38,872,267 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.64 | |
| Class B Shares (a) | | | $ | 8.64 | |
| Class C Shares (b) | | | $ | 8.61 | |
| Class R Shares | | | $ | 8.65 | |
| Institutional Class Shares | | | $ | 8.70 | |
| Service Class Shares | | | $ | 8.68 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 9.17 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notesare an integral part of these financial statements.
2008 Annual Report 61
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Investor
| |
| | | | Destinations
| |
| | | | Moderately
| |
| | | Conservative Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 11,618,743 | |
| Interest income from affiliates | | | | 1,476,782 | |
| | | | | | |
| Total Income | | | | 13,095,525 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 498,885 | |
| Accounting and transfer agent fees | | | | 88,640 | |
| Distribution fees Class A | | | | 67,728 | |
| Distribution fees Class B | | | | 69,379 | |
| Distribution fees Class C | | | | 389,520 | |
| Distribution fees Class R | | | | 129,655 | |
| Distribution fees Service Class | | | | 676,448 | |
| Administrative servicing fees Class A | | | | 2,628 | |
| Administrative servicing fees Class R | | | | 36,710 | |
| Administrative servicing fees Service Class | | | | 378,669 | |
| Registration and filing fees | | | | 26,186 | |
| Professional fees | | | | 59,230 | |
| Printing fees | | | | 25,949 | |
| Trustee fees | | | | 20,047 | |
| Custodian fees | | | | 23,407 | |
| Other | | | | 27,193 | |
| | | | | | |
| Total expenses before waived expenses | | | | 2,520,274 | |
| | | | | | |
| Earning credit (Note 4) | | | | (5,140 | ) |
| Administrator fees voluntarily waived | | | | (5,535 | ) |
| | | | | | |
| Net Expenses | | | | 2,509,599 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 10,585,926 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 3,723,737 | |
| Net realized gains from investment transactions with affiliates | | | | 4,748,056 | |
| | | | | | |
| Net realized gains from investment transactions with affiliated funds | | | | 8,471,793 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (89,266,683 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (80,794,890 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (70,208,964 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
62 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderately
| |
| | | | Conservative Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 10,585,926 | | | | $ | 10,617,005 | |
| Net realized gains from investment transactions | | | | 8,471,793 | | | | | 10,087,317 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (89,266,683 | ) | | | | 11,232,684 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (70,208,964 | ) | | | | 31,937,006 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (848,551 | ) | | | | (950,706 | ) |
| Class B | | | | (164,433 | ) | | | | (198,065 | ) |
| Class C | | | | (931,779 | ) | | | | (1,100,315 | ) |
| Class R | | | | (722,476 | ) | | | | (242,396 | ) |
| Institutional Class | | | | (484,092 | ) | | | | (276,140 | ) |
| Service Class | | | | (7,974,834 | ) | | | | (8,499,326 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (685,073 | ) | | | | (646,039 | ) |
| Class B | | | | (178,112 | ) | | | | (180,577 | ) |
| Class C | | | | (1,045,495 | ) | | | | (989,504 | ) |
| Class R | | | | (510,786 | ) | | | | (41,346 | ) |
| Institutional Class | | | | (345,628 | ) | | | | (25,938 | ) |
| Service Class | | | | (6,497,505 | ) | | | | (5,990,496 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (20,388,764 | ) | | | | (19,140,848 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 16,071,822 | | | | | 79,636,311 | |
| | | | | | | | | | | |
| Change in net assets | | | | (74,525,906 | ) | | | | 92,432,469 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 411,412,847 | | | | | 318,980,378 | |
| | | | | | | | | | | |
| End of period | | | $ | 336,886,941 | | | | $ | 411,412,847 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 769,194 | | | | $ | 825,371 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 7,539,671 | | | | $ | 11,701,328 | |
| Dividends reinvested | | | | 1,139,017 | | | | | 1,203,086 | |
| Cost of shares redeemed | | | | (8,363,411 | ) | | | | (11,989,960 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 315,277 | | | | | 914,454 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 855,894 | | | | | 1,398,246 | |
| Dividends reinvested | | | | 184,724 | | | | | 198,474 | |
| Cost of shares redeemed | | | | (1,509,949 | ) | | | | (1,484,536 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (469,331 | ) | | | | 112,184 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 63
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderately
| |
| | | | Conservative Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 8,208,188 | | | | $ | 12,910,895 | |
| Dividends reinvested | | | | 573,501 | | | | | 552,655 | |
| Cost of shares redeemed | | | | (12,981,807 | ) | | | | (10,921,158 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (4,200,118 | ) | | | | 2,542,392 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 22,348,282 | | | | | 21,425,179 | |
| Dividends reinvested | | | | 1,153,632 | | | | | 240,672 | |
| Cost of shares redeemed | | | | (5,096,074 | ) | | | | (4,729,897 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 18,405,840 | | | | | 16,935,954 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 4,568,456 | | | | | 13,643,134 | |
| Dividends reinvested | | | | 829,717 | | | | | 302,078 | |
| Cost of shares redeemed | | | | (4,071,816 | ) | | | | (1,475,209 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 1,326,357 | | | | | 12,470,003 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 60,955,574 | | | | | 98,281,343 | |
| Dividends reinvested | | | | 14,472,312 | | | | | 14,489,790 | |
| Cost of shares redeemed | | | | (74,734,089 | ) | | | | (66,109,809 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | 693,797 | | | | | 46,661,324 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 16,071,822 | | | | $ | 79,636,311 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 744,885 | | | | | 1,093,644 | |
| Reinvested | | | | 110,766 | | | | | 113,444 | |
| Redeemed | | | | (829,249 | ) | | | | (1,120,609 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 26,402 | | | | | 86,479 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 88,533 | | | | | 131,082 | |
| Reinvested | | | | 17,892 | | | | | 18,720 | |
| Redeemed | | | | (151,518 | ) | | | | (137,889 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (45,093 | ) | | | | 11,913 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 833,664 | | | | | 1,213,856 | |
| Reinvested | | | | 55,734 | | | | | 52,291 | |
| Redeemed | | | | (1,288,070 | ) | | | | (1,021,743 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (398,672 | ) | | | | 244,404 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 2,202,753 | | | | | 1,981,232 | |
| Reinvested | | | | 112,504 | | | | | 22,421 | |
| Redeemed | | | | (511,947 | ) | | | | (435,806 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 1,803,310 | | | | | 1,567,847 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
64 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Moderately
| |
| | | | Conservative Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 442,453 | | | | | 1,279,418 | |
| Reinvested | | | | 80,259 | | | | | 28,070 | |
| Redeemed | | | | (406,300 | ) | | | | (137,231 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 116,412 | | | | | 1,170,257 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 5,983,972 | | | | | 9,099,129 | |
| Reinvested | | | | 1,402,625 | | | | | 1,361,330 | |
| Redeemed | | | | (7,340,798 | ) | | | | (6,121,721 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | 45,799 | | | | | 4,338,738 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 1,548,158 | | | | | 7,419,638 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 65
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Conservative Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .00 | | | | 0 | .30 | | | | (2 | .08) | | | | (1 | .78) | | | | (0 | .32) | | | | (0 | .26) | | | | (0 | .58) | | | $ | 8 | .64 | | | | (16 | .97%) | | | $ | 23,093,974 | | | | | 0 | .46% | | | | 2 | .97% | | | | 0 | .46% | | | | 25 | .61% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .64 | | | | 0 | .32 | | | | 0 | .65 | | | | 0 | .97 | | | | (0 | .35) | | | | (0 | .26) | | | | (0 | .61) | | | $ | 11 | .00 | | | | 9 | .42% | | | $ | 29,097,449 | | | | | 0 | .46% | | | | 3 | .06% | | | | 0 | .46% | | | | 12 | .07% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .18 | | | | 0 | .28 | | | | 0 | .64 | | | | 0 | .92 | | | | (0 | .29) | | | | (0 | .17) | | | | (0 | .46) | | | $ | 10 | .64 | | | | 9 | .24% | | | $ | 27,244,214 | | | | | 0 | .48% | | | | 2 | .65% | | | | 0 | .49% | | | | 12 | .64% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .88 | | | | 0 | .26 | | | | 0 | .31 | | | | 0 | .57 | | | | (0 | .26) | | | | (0 | .01) | | | | (0 | .27) | | | $ | 10 | .18 | | | | 5 | .78% | | | $ | 16,923,424 | | | | | 0 | .54% | | | | 2 | .57% | | | | 0 | .54% | | | | 8 | .37% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .44 | | | | 0 | .19 | | | | 0 | .44 | | | | 0 | .63 | | | | (0 | .19) | | | | – | | | | | (0 | .19) | | | $ | 9 | .88 | | | | 6 | .71% | | | $ | 11,156,971 | | | | | 0 | .52% | | | | 2 | .12% | | | | 0 | .52% | | | | 6 | .66% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .99 | | | | 0 | .23 | | | | (2 | .08) | | | | (1 | .85) | | | | (0 | .24) | | | | (0 | .26) | | | | (0 | .50) | | | $ | 8 | .64 | | | | (17 | .52%) | | | $ | 5,702,625 | | | | | 1 | .20% | | | | 2 | .23% | | | | 1 | .20% | | | | 25 | .61% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .64 | | | | 0 | .24 | | | | 0 | .64 | | | | 0 | .88 | | | | (0 | .27) | | | | (0 | .26) | | | | (0 | .53) | | | $ | 10 | .99 | | | | 8 | .53% | | | $ | 7,750,492 | | | | | 1 | .20% | | | | 2 | .30% | | | | 1 | .20% | | | | 12 | .07% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .18 | | | | 0 | .20 | | | | 0 | .65 | | | | 0 | .85 | | | | (0 | .22) | | | | (0 | .17) | | | | (0 | .39) | | | $ | 10 | .64 | | | | 8 | .49% | | | $ | 7,375,951 | | | | | 1 | .20% | | | | 1 | .98% | | | | 1 | .21% | | | | 12 | .64% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .88 | | | | 0 | .20 | | | | 0 | .31 | | | | 0 | .51 | | | | (0 | .20) | | | | (0 | .01) | | | | (0 | .21) | | | $ | 10 | .18 | | | | 5 | .08% | | | $ | 6,001,750 | | | | | 1 | .22% | | | | 1 | .90% | | | | 1 | .22% | | | | 8 | .37% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .44 | | | | 0 | .13 | | | | 0 | .43 | | | | 0 | .56 | | | | (0 | .12) | | | | – | | | | | (0 | .12) | | | $ | 9 | .88 | | | | 5 | .99% | | | $ | 4,606,478 | | | | | 1 | .21% | | | | 1 | .41% | | | | –(f) | | | | | 6 | .66% | | |
66 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Conservative Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | �� | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .96 | | | | 0 | .23 | | | | (2 | .08) | | | | (1 | .85) | | | | (0 | .24) | | | | (0 | .26) | | | | (0 | .50) | | | $ | 8 | .61 | | | | (17 | .57%) | | | $ | 32,042,631 | | | | | 1 | .20% | | | | 2 | .23% | | | | 1 | .20% | | | | 25 | .61% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .61 | | | | 0 | .24 | | | | 0 | .64 | | | | 0 | .88 | | | | (0 | .27) | | | | (0 | .26) | | | | (0 | .53) | | | $ | 10 | .96 | | | | 8 | .66% | | | $ | 45,138,980 | | | | | 1 | .20% | | | | 2 | .30% | | | | 1 | .20% | | | | 12 | .07% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .14 | | | | 0 | .20 | | | | 0 | .66 | | | | 0 | .86 | | | | (0 | .22) | | | | (0 | .17) | | | | (0 | .39) | | | $ | 10 | .61 | | | | 8 | .50% | | | $ | 41,108,220 | | | | | 1 | .20% | | | | 1 | .97% | | | | 1 | .21% | | | | 12 | .64% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .85 | | | | 0 | .18 | | | | 0 | .31 | | | | 0 | .49 | | | | (0 | .19) | | | | (0 | .01) | | | | (0 | .20) | | | $ | 10 | .14 | | | | 5 | .01% | | | $ | 39,545,053 | | | | | 1 | .22% | | | | 1 | .90% | | | | 1 | .22% | | | | 8 | .37% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .42 | | | | 0 | .13 | | | | 0 | .43 | | | | 0 | .56 | | | | (0 | .13) | | | | – | | | | | (0 | .13) | | | $ | 9 | .85 | | | | 5 | .99% | | | $ | 26,760,188 | | | | | 1 | .22% | | | | 1 | .42% | | | | –(f) | | | | | 6 | .66% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .02 | | | | 0 | .26 | | | | (2 | .08) | | | | (1 | .82) | | | | (0 | .29) | | | | (0 | .26) | | | | (0 | .55) | | | $ | 8 | .65 | | | | (17 | .31%) | | | $ | 29,677,803 | | | | | 0 | .84% | | | | 2 | .57% | | | | 0 | .84% | | | | 25 | .61% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .69 | | | | 0 | .30 | | | | 0 | .63 | | | | 0 | .93 | | | | (0 | .34) | | | | (0 | .26) | | | | (0 | .60) | | | $ | 11 | .02 | | | | 9 | .04% | | | $ | 17,913,023 | | | | | 0 | .83% | | | | 2 | .78% | | | | 0 | .83% | | | | 12 | .07% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .22 | | | | 0 | .28 | | | | 0 | .65 | | | | 0 | .93 | | | | (0 | .29) | | | | (0 | .17) | | | | (0 | .46) | | | $ | 10 | .69 | | | | 9 | .19% | | | $ | 620,222 | | | | | 0 | .81% | | | | 2 | .53% | | | | 0 | .82% | | | | 12 | .64% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .91 | | | | 0 | .25 | | | | 0 | .31 | | | | 0 | .56 | | | | (0 | .24) | | | | (0 | .01) | | | | (0 | .25) | | | $ | 10 | .22 | | | | 5 | .73% | | | $ | 1,141 | | | | | 0 | .65% | | | | 2 | .54% | | | | 0 | .65% | | | | 8 | .37% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .45 | | | | 0 | .20 | | | | 0 | .42 | | | | 0 | .62 | | | | (0 | .16) | | | | – | | | | | (0 | .16) | | | $ | 9 | .91 | | | | 6 | .55% | | | $ | 1,117 | | | | | 0 | .60% | | | | 2 | .01% | | | | –(f) | | | | | 6 | .66% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .07 | | | | 0 | .33 | | | | (2 | .09) | | | | (1 | .76) | | | | (0 | .35) | | | | (0 | .26) | | | | (0 | .61) | | | $ | 8 | .70 | | | | (16 | .74%) | | | $ | 11,932,939 | | | | | 0 | .20% | | | | 3 | .22% | | | | 0 | .20% | | | | 25 | .61% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .71 | | | | 0 | .36 | | | | 0 | .64 | | | | 1 | .00 | | | | (0 | .38) | | | | (0 | .26) | | | | (0 | .64) | | | $ | 11 | .07 | | | | 9 | .64% | | | $ | 13,889,521 | | | | | 0 | .21% | | | | 3 | .30% | | | | 0 | .21% | | | | 12 | .07% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .24 | | | | 0 | .31 | | | | 0 | .65 | | | | 0 | .96 | | | | (0 | .32) | | | | (0 | .17) | | | | (0 | .49) | | | $ | 10 | .71 | | | | 9 | .58% | | | $ | 905,330 | | | | | 0 | .20% | | | | 3 | .05% | | | | 0 | .21% | | | | 12 | .64% | | |
| Period Ended October 31, 2005 (g) | | | $ | 10 | .17 | | | | 0 | .23 | | | | 0 | .04 | | | | 0 | .27 | | | | (0 | .20) | | | | – | | | | | (0 | .20) | | | $ | 10 | .24 | | | | 3 | .70% | | | $ | 1,027 | | | | | 0 | .29% | | | | 3 | .17% | | | | –(f) | | | | | 8 | .37% | | |
2008 Annual Report 67
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Conservative Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 11 | .03 | | | | 0 | .29 | | | | (2 | .08) | | | | (1 | .79) | | | | (0 | .30) | | | | (0 | .26) | | | | (0 | .56) | | | $ | 8 | .68 | | | | (16 | .96%) | | | $ | 234,436,969 | | | | | 0 | .59% | | | | 2 | .83% | | | | 0 | .59% | | | | 25 | .61% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .68 | | | | 0 | .32 | | | | 0 | .63 | | | | 0 | .95 | | | | (0 | .34) | | | | (0 | .26) | | | | (0 | .60) | | | $ | 11 | .03 | | | | 9 | .15% | | | $ | 297,623,382 | | | | | 0 | .60% | | | | 2 | .99% | | | | 0 | .60% | | | | 12 | .07% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .21 | | | | 0 | .26 | | | | 0 | .66 | | | | 0 | .92 | | | | (0 | .28) | | | | (0 | .17) | | | | (0 | .45) | | | $ | 10 | .68 | | | | 9 | .18% | | | $ | 241,726,441 | | | | | 0 | .60% | | | | 2 | .53% | | | | 0 | .61% | | | | 12 | .64% | | |
| Year Ended October 31, 2005 | | | $ | 9 | .91 | | | | 0 | .25 | | | | 0 | .31 | | | | 0 | .56 | | | | (0 | .25) | | | | (0 | .01) | �� | | | (0 | .26) | | | $ | 10 | .21 | | | | 5 | .67% | | | $ | 195,790,379 | | | | | 0 | .62% | | | | 2 | .49% | | | | 0 | .62% | | | | 8 | .37% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .47 | | | | 0 | .19 | | | | 0 | .43 | | | | 0 | .62 | | | | (0 | .18) | | | | – | | | | | (0 | .18) | | | $ | 9 | .91 | | | | 6 | .59% | | | $ | 136,368,412 | | | | | 0 | .61% | | | | 2 | .01% | | | | 0 | .61% | | | | 6 | .66% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | There were no fee reductions during the period. |
| (g) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
68 Annual Report 2008
| |
Nationwide Investor Destinations
Conservative Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Investor Destinations Conservative Fund (Class A at NAV) registered -8.17% versus -7.12% for its composite benchmark, 20% Standard & Poor’s 500® (S&P 500) Index, 35% Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] and 45% Citigroup 3-Month Treasury Bill (T-Bill) Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target Allocation Conservative Funds (consisting of 451 funds as of October 31, 2008) was -18.98% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Contract and the Nationwide Money Market Fund (each with an allocation within the Fund of approximately 15%) posted positive returns, gaining 4.08% and 2.65%, respectively, during the reporting period. The Nationwide Contract is a fixed-interest contract issued and guaranteed by Nationwide Life Insurance Company that has a stable principal value and pays a credited interest rate that can change quarterly.
What areas investment detracted from Fund performance?
The declines posted by the Fund’s positions in the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 10% and 5%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the S&P 500 Index recorded negative performance for the reporting period. Relatively speaking, the better performers were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. The relatively better-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects do not appear to be good. Many investors appear to have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not further erode their capital. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term appears to be relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Investor Destinations Funds. By combining underlying investments in major asset classes that typically behave differently under various market conditions, it is possible for the Funds to achieve higher risk-adjusted returns over time than those that could be achieved with a less-diversified portfolio of investments. We believe this particular Fund’s substantial fixed-income-oriented allocations as well as some equity-oriented allocations position the Fund well to deliver the potential for strong, risk-adjusted returns for the conservative investor over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 69
Nationwide Investor Destinations Conservative Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Classes | | Underlying Investments | | Allocation* | | Return |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index Fund | | | 40% | | | | 0.03% | |
| |
| |
| Money Market Investment | | Nationwide Money Market Fund | | | 15% | | | | 2.64% | |
| |
| |
| Short Term Bonds | | Nationwide Contract | | | 15% | | | | 4.08% | |
| |
| |
| Short-Term Bonds | | Nationwide Enhanced Income Fund | | | 10% | | | | 2.74% | |
| |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 10% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 5% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 5% | | | | -36.63% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares for each underlying investment except the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
70 Annual Report 2008
| |
| Fund Performance | Nationwide Investor Destinations Conservative Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Class A | | w/o SC2 | | | -8.17% | | | | 2.60% | | | | 2.73% | | | | 0.77% | |
| | | w/SC3 | | | -13.42% | | | | 1.40% | | | | 2.02% | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -8.81% | | | | 1.87% | | | | 2.01% | | | | 1.51% | |
| | | w/SC4 | | | -13.20% | | | | 1.52% | | | | 2.01% | | | | | |
| |
| |
Class C5 | | w/o SC2 | | | -8.83% | | | | 1.88% | | | | 2.01% | | | | 1.51% | |
| | | w/SC6 | | | -9.71% | | | | 1.88% | | | | 2.01% | | | | | |
| |
| |
Class R7,8 | | | | | -8.40% | | | | 2.42% | | | | 2.33% | | | | 1.21% | |
| |
| |
Institutional Class7,9 | | | | | -7.89% | | | | 2.85% | | | | 2.88% | | | | 0.51% | |
| |
| |
Service Class7 | | | | | -8.31% | | | | 2.47% | | | | 2.66% | | | | 0.90% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on March 31, 2000. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges. |
| |
| 6 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 7 | | Not subject to any sales charges. |
| |
| 8 | | These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares. |
| |
| 9 | | These returns until the creation of Institutional Class shares (12/29/04) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Institutional Class shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Class B shares. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class A shares of the Nationwide Investor Destinations Conservative Fund, Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers U.S. Aggregate Bond Index (LB U.S. Aggregate Bond)(a)], S&P 500 Index (S&P 500)(b), the Citigroup 3-Month T Bill Index(c), the Conservative Composite Index(d), and the Consumer Price Index (CPI)(e) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues including government, corporate, |
2008 Annual Report 71
| |
| Fund Performance | Nationwide Investor Destinations Conservative Fund |
Continued
| | |
| | asset-backed, and mortgage-backed securities with maturities of one year or more. |
| |
| (b) | | The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed. |
| |
| (c) | | The Citigroup 3-Month T Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill). |
| |
| (d) | | The Conservative Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Conservative Composite is a combination of Barclays Capital U.S. Aggregate Bond Index (35%), S&P 500 (20%), and Citigroup 3-Month T Bill Index (45%). |
| |
| (e) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
72 Annual Report 2008
| |
| Shareholder | Nationwide Investor Destinations |
| |
| Expense Example | Conservative Fund |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
Nationwide Investor Destinations
| | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Conservative Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 915.55 | | | | 2.14 | | | | 0.45 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.90 | | | | 2.27 | | | | 0.45 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 911.36 | | | | 5.68 | | | | 1.18 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.19 | | | | 6.02 | | | | 1.18 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 912.01 | | | | 5.67 | | | | 1.18 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.21 | | | | 6.00 | | | | 1.18 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 914.08 | | | | 3.85 | | | | 0.80 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.11 | | | | 4.08 | | | | 0.80 | |
| |
| |
| Institutional Class | | | Actual | | | | 1,000.00 | | | | 916.12 | | | | 0.87 | | | | 0.18 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,024.23 | | | | 0.91 | | | | 1.18 | |
| |
| |
| Service Class | | | Actual | | | | 1,000.00 | | | | 914.20 | | | | 2.47 | | | | 0.51 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.56 | | | | 2.61 | | | | 0.51 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 73
| |
| Portfolio Summary | Nationwide Investor Destinations Conservative Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 88.8% | |
| Fixed Contract | | | 11.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Fixed Income Funds | | | 57.6% | |
| Equity Funds | | | 17.7% | |
| Money Market Fund | | | 13.5% | |
| Fixed Contract | | | 11.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide Bond Index Fund, Institutional Class | | | 40.4% | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 17.1% | |
| Nationwide Money Market Fund, Institutional Class | | | 13.5% | |
| Nationwide Fixed Contract, 4.00% | | | 11.2% | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 9.2% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 4.3% | |
| Nationwide International Index Fund, Institutional Class | | | 4.3% | |
| | | | | |
| | | | 100.0% | |
74 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Investor Destinations Conservative Fund
| | | | | | | | | |
| Mutual Funds 88.8%(a) |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 17.7% |
| Nationwide International Index Fund, Institutional Class | | | 1,614,360 | | | $ | 10,251,187 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 1,029,560 | | | | 10,254,416 | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 2,708,331 | | | | 22,018,732 | |
| | | | | | | | | |
| | | | | | | | 42,524,335 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 57.6% |
| Nationwide Bond Index Fund, Institutional Class | | | 9,414,413 | | | | 97,062,597 | |
| Nationwide Enhanced Income Fund, Institutional Class | | | 4,541,214 | | | | 41,143,398 | |
| | | | | | | | | |
| | | | | | | | 138,205,995 | |
| | | | | | | | | |
| |
| |
Money Market Fund 13.5% |
| Nationwide Money Market Fund, Institutional Class | | | 32,457,137 | | | | 32,457,137 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 213,187,467 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Fixed Contract 11.2%(a) (b) |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| Nationwide Fixed Contract, 4.00% | | $ | 27,091,366 | | | | 27,091,366 | |
| | | | | | | | | |
| | | | | |
Total Fixed Contract | | | 27,091,366 | |
| | | | | |
| | | | | |
Total Investments (Cost $262,676,851) (c) — 100.0% | | | 240,278,834 | |
Liabilities in excess of other assets — 0.0% | | | | | | | (285,913 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 239,992,921 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees. |
| |
| (c) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 75
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | Destinations Conservative Fund | |
| | | | |
Assets: | | | | | |
| Investments in affiliates, at value (cost $262,676,851 ) | | | $ | 240,278,834 | |
| Dividend receivable | | | | 545,651 | |
| Receivable for capital shares issued | | | | 128,797 | |
| Receivable for investments sold | | | | 278,753 | |
| Prepaid expenses and other assets | | | | 39,892 | |
| | | | | | |
| Total Assets | | | | 241,271,927 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 542,690 | |
| Payable for capital shares redeemed | | | | 597,234 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 26,509 | |
| Accounting and transfer agent fees | | | | 9,351 | |
| Distribution fees | | | | 71,275 | |
| Administrative servicing fees | | | | 10,881 | |
| Trustee fees | | | | 575 | |
| Compliance program costs (Note 3) | | | | 763 | |
| Custodian fees | | | | 1,709 | |
| Other | | | | 18,019 | |
| | | | | | |
| Total Liabilities | | | | 1,279,006 | |
| | | | | | |
Net Assets | | | $ | 239,992,921 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 259,881,734 | |
| Accumulated undistributed net investment income | | | | 698,149 | |
| Accumulated net realized gains from investment transactions | | | | 1,811,055 | |
| Net unrealized appreciation/(depreciation) from investments | | | | (22,398,017 | ) |
| | | | | | |
Net Assets | | | $ | 239,992,921 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 11,682,682 | |
| Class B Shares | | | | 3,261,540 | |
| Class C Shares | | | | 23,815,171 | |
| Class R Shares | | | | 20,228,887 | |
| Institutional Class Shares | | | | 5,705,718 | |
| Service Class Shares | | | | 175,298,923 | |
| | | | | | |
| Total | | | $ | 239,992,921 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
76 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Investor
| |
| | | | Destinations Conservative Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 1,262,115 | |
| Class B Shares | | | | 351,765 | |
| Class C Shares | | | | 2,581,370 | |
| Class R Shares | | | | 2,190,466 | |
| Institutional Class Shares | | | | 614,339 | |
| Service Class Shares | | | | 18,905,868 | |
| | | | | | |
| Total | | | | 25,905,923 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 9.26 | |
| Class B Shares (a) | | | $ | 9.27 | |
| Class C Shares (b) | | | $ | 9.23 | |
| Class R Shares | | | $ | 9.24 | |
| Institutional Class Shares | | | $ | 9.29 | |
| Service Class Shares | | | $ | 9.27 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 9.82 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 77
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Investor
| |
| | | | Destinations
| |
| | | Conservative Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 7,601,897 | |
| Interest income from affiliates | | | | 1,325,020 | |
| | | | | | |
| Total Income | | | | 8,926,917 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 312,715 | |
| Accounting and transfer agent fees | | | | 60,670 | |
| Distribution fees Class A | | | | 30,277 | |
| Distribution fees Class B | | | | 36,038 | |
| Distribution fees Class C | | | | 231,896 | |
| Distribution fees Class R | | | | 69,531 | |
| Distribution fees Service Class | | | | 455,284 | |
| Administrative servicing fees Class A | | | | 1,544 | |
| Administrative servicing fees Class R | | | | 18,280 | |
| Administrative servicing fees Service Class | | | | 250,102 | |
| Registration and filing fees | | | | 15,622 | |
| Professional fees | | | | 34,493 | |
| Printing fees | | | | 12,605 | |
| Trustee fees | | | | 12,206 | |
| Custodian fees | | | | 12,229 | |
| Other | | | | 20,128 | |
| | | | | | |
| Total expenses before waived expenses | | | | 1,573,620 | |
| | | | | | |
| Earning credit (Note 4) | | | | (7,168 | ) |
| Administrator fees voluntarily waived | | | | (4,087 | ) |
| | | | | | |
| Net Expenses | | | | 1,562,365 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 7,364,552 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 1,114,401 | |
| Net realized gains from investment transactions with affiliates | | | | 2,067,789 | |
| | | | | | |
| Net realized gains from investment transactions with affiliated funds | | | | 3,182,190 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (31,865,536 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (28,683,346 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (21,318,794 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
78 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Conservative Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 7,364,552 | | | | $ | 7,683,747 | |
| Net realized gains from investment transactions | | | | 3,182,190 | | | | | 2,852,057 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (31,865,536 | ) | | | | 4,167,192 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (21,318,794 | ) | | | | 14,702,996 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (369,927 | ) | | | | (677,251 | ) |
| Class B | | | | (83,681 | ) | | | | (109,907 | ) |
| Class C | | | | (559,736 | ) | | | | (568,187 | ) |
| Class R | | | | (432,658 | ) | | | | (130,924 | ) |
| Institutional Class | | | | (216,410 | ) | | | | (131,197 | ) |
| Service Class | | | | (5,880,099 | ) | | | | (6,132,124 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (130,464 | ) | | | | (270,490 | ) |
| Class B | | | | (45,046 | ) | | | | (57,530 | ) |
| Class C | | | | (276,498 | ) | | | | (268,380 | ) |
| Class R | | | | (125,912 | ) | | | | (7,671 | ) |
| Institutional Class | | | | (66,977 | ) | | | | (3,331 | ) |
| Service Class | | | | (2,213,528 | ) | | | | (2,501,073 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (10,400,936 | ) | | | | (10,858,065 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 23,565,491 | | | | | 35,443,333 | |
| | | | | | | | | | | |
| Change in net assets | | | | (8,154,239 | ) | | | | 39,288,264 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 248,147,160 | | | | | 208,858,896 | |
| | | | | | | | | | | |
| End of period | | | $ | 239,992,921 | | | | $ | 248,147,160 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 698,149 | | | | $ | 730,752 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 7,646,399 | | | | $ | 8,737,968 | |
| Dividends reinvested | | | | 344,099 | | | | | 820,326 | |
| Cost of shares redeemed | | | | (14,936,001 | ) | | | | (8,161,368 | ) |
| | | | | | | | | | | |
| Total Class A | | | | (6,945,503 | ) | | | | 1,396,926 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 1,201,415 | | | | | 809,491 | |
| Dividends reinvested | | | | 67,118 | | | | | 86,658 | |
| Cost of shares redeemed | | | | (1,262,507 | ) | | | | (1,092,668 | ) |
| | | | | | | | | | | |
| Total Class B | | | | 6,026 | | | | | (196,519 | ) |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 79
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Conservative Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 12,739,577 | | | | $ | 7,324,611 | |
| Dividends reinvested | | | | 241,474 | | | | | 229,974 | |
| Cost of shares redeemed | | | | (7,446,586 | ) | | | | (5,055,888 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 5,534,465 | | | | | 2,498,697 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 17,904,729 | | | | | 10,511,040 | |
| Dividends reinvested | | | | 507,200 | | | | | 111,663 | |
| Cost of shares redeemed | | | | (3,936,978 | ) | | | | (3,338,698 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 14,474,951 | | | | | 7,284,005 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,846,847 | | | | | 5,273,466 | |
| Dividends reinvested | | | | 283,385 | | | | | 134,528 | |
| Cost of shares redeemed | | | | (1,710,580 | ) | | | | (675,078 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 1,419,652 | | | | | 4,732,916 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 53,252,940 | | | | | 49,106,209 | |
| Dividends reinvested | | | | 8,093,573 | | | | | 8,633,171 | |
| Cost of shares redeemed | | | | (52,270,613 | ) | | | | (38,012,072 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | 9,075,900 | | | | | 19,727,308 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 23,565,491 | | | | $ | 35,443,333 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 760,798 | | | | | 839,883 | |
| Reinvested | | | | 33,924 | | | | | 79,394 | |
| Redeemed | | | | (1,436,187 | ) | | | | (783,779 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (641,465 | ) | | | | 135,498 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 121,510 | | | | | 77,779 | |
| Reinvested | | | | 6,589 | | | | | 8,399 | |
| Redeemed | | | | (127,388 | ) | | | | (105,118 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | 711 | | | | | (18,940 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 1,280,608 | | | | | 708,280 | |
| Reinvested | | | | 23,848 | | | | | 22,345 | |
| Redeemed | | | | (750,845 | ) | | | | (487,981 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 553,611 | | | | | 242,644 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 1,783,463 | | | | | 1,010,306 | |
| Reinvested | | | | 50,233 | | | | | 10,762 | |
| Redeemed | | | | (391,654 | ) | | | | (320,965 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 1,442,042 | | | | | 700,103 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
80 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Investor Destinations Conservative Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 283,419 | | | | | 508,965 | |
| Reinvested | | | | 27,835 | | | | | 12,906 | |
| Redeemed | | | | (169,544 | ) | | | | (64,411 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 141,710 | | | | | 457,460 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 5,272,418 | | | | | 4,704,519 | |
| Reinvested | | | | 796,011 | | | | | 833,951 | |
| Redeemed | | | | (5,134,722 | ) | | | | (3,645,738 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | 933,707 | | | | | 1,892,732 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 2,430,316 | | | | | 3,409,497 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 81
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Conservative Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .56 | | | | 0 | .37 | | | | (1 | .20) | | | | (0 | .83) | | | | (0 | .34) | | | | (0 | .13) | | | | (0 | .47) | | | $ | 9 | .26 | | | | (8 | .17%) | | | $ | 11,682,682 | | | | | 0 | .46% | | | | 3 | .24% | | | | 0 | .46% | | | | 29 | .72% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .40 | | | | 0 | .37 | | | | 0 | .31 | | | | 0 | .68 | | | | (0 | .37) | | | | (0 | .15) | | | | (0 | .52) | | | $ | 10 | .56 | | | | 6 | .78% | | | $ | 20,101,731 | | | | | 0 | .47% | | | | 3 | .54% | | | | 0 | .47% | | | | 10 | .69% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .17 | | | | 0 | .34 | | | | 0 | .32 | | | | 0 | .66 | | | | (0 | .31) | | | | (0 | .12) | | | | (0 | .43) | | | $ | 10 | .40 | | | | 6 | .68% | | | $ | 18,383,603 | | | | | 0 | .48% | | | | 2 | .98% | | | | 0 | .48% | | | | 36 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .13 | | | | 0 | .24 | | | | 0 | .12 | | | | 0 | .36 | | | | (0 | .27) | | | | (0 | .05) | | | | (0 | .32) | | | $ | 10 | .17 | | | | 3 | .67% | | | $ | 28,965,461 | | | | | 0 | .53% | | | | 2 | .85% | | | | 0 | .53% | | | | 13 | .42% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .88 | | | | 0 | .22 | | | | 0 | .25 | | | | 0 | .47 | | | | (0 | .22) | | | | – | | | | | (0 | .22) | | | $ | 10 | .13 | | | | 4 | .84% | | | $ | 5,007,763 | | | | | 0 | .50% | | | | 2 | .43% | | | | 0 | .51% | | | | 11 | .67% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .54 | | | | 0 | .26 | | | | (1 | .16) | | | | (0 | .90) | | | | (0 | .24) | | | | (0 | .13) | | | | (0 | .37) | | | $ | 9 | .27 | | | | (8 | .81%) | | | $ | 3,261,540 | | | | | 1 | .20% | | | | 2 | .53% | | | | 1 | .20% | | | | 29 | .72% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .38 | | | | 0 | .29 | | | | 0 | .31 | | | | 0 | .60 | | | | (0 | .29) | | | | (0 | .15) | | | | (0 | .44) | | | $ | 10 | .54 | | | | 6 | .01% | | | $ | 3,701,270 | | | | | 1 | .20% | | | | 2 | .81% | | | | 1 | .21% | | | | 10 | .69% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .16 | | | | 0 | .24 | | | | 0 | .34 | | | | 0 | .58 | | | | (0 | .24) | | | | (0 | .12) | | | | (0 | .36) | | | $ | 10 | .38 | | | | 5 | .89% | | | $ | 3,841,442 | | | | | 1 | .21% | | | | 2 | .36% | | | | 1 | .22% | | | | 36 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .12 | | | | 0 | .21 | | | | 0 | .08 | | | | 0 | .29 | | | | (0 | .20) | | | | (0 | .05) | | | | (0 | .25) | | | $ | 10 | .16 | | | | 3 | .02% | | | $ | 4,010,143 | | | | | 1 | .22% | | | | 2 | .10% | | | | 1 | .22% | | | | 13 | .42% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .87 | | | | 0 | .15 | | | | 0 | .25 | | | | 0 | .40 | | | | (0 | .15) | | | | – | | | | | (0 | .15) | | | $ | 10 | .12 | | | | 4 | .12% | | | $ | 3,437,479 | | | | | 1 | .23% | | | | 1 | .70% | | | | –(f) | | | | | 11 | .67% | | |
82 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Conservative Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .51 | | | | 0 | .25 | | | | (1 | .15) | | | | (0 | .90) | | | | (0 | .25) | | | | (0 | .13) | | | | (0 | .38) | | | $ | 9 | .23 | | | | (8 | .83%) | | | $ | 23,815,171 | | | | | 1 | .20% | | | | 2 | .52% | | | | 1 | .20% | | | | 29 | .72% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .35 | | | | 0 | .29 | | | | 0 | .32 | | | | 0 | .61 | | | | (0 | .30) | | | | (0 | .15) | | | | (0 | .45) | | | $ | 10 | .51 | | | | 6 | .04% | | | $ | 21,304,049 | | | | | 1 | .21% | | | | 2 | .81% | | | | 1 | .21% | | | | 10 | .69% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .13 | | | | 0 | .25 | | | | 0 | .34 | | | | 0 | .59 | | | | (0 | .25) | | | | (0 | .12) | | | | (0 | .37) | | | $ | 10 | .35 | | | | 5 | .92% | | | $ | 18,473,790 | | | | | 1 | .21% | | | | 2 | .36% | | | | 1 | .22% | | | | 36 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .09 | | | | 0 | .21 | | | | 0 | .08 | | | | 0 | .29 | | | | (0 | .20) | | | | (0 | .05) | | | | (0 | .25) | | | $ | 10 | .13 | | | | 2 | .95% | | | $ | 19,105,966 | | | | | 1 | .23% | | | | 2 | .10% | | | | 1 | .23% | | | | 13 | .42% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .85 | | | | 0 | .16 | | | | 0 | .24 | | | | 0 | .40 | | | | (0 | .16) | | | | – | | | | | (0 | .16) | | | $ | 10 | .09 | | | | 4 | .10% | | | $ | 13,682,592 | | | | | 1 | .24% | | | | 1 | .69% | | | | –(f) | | | | | 11 | .67% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .55 | | | | 0 | .29 | | | | (1 | .14) | | | | (0 | .85) | | | | (0 | .33) | | | | (0 | .13) | | | | (0 | .46) | | | $ | 9 | .24 | | | | (8 | .40%) | | | $ | 20,228,887 | | | | | 0 | .82% | | | | 2 | .85% | | | | 0 | .82% | | | | 29 | .72% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .40 | | | | 0 | .31 | | | | 0 | .34 | | | | 0 | .65 | | | | (0 | .35) | | | | (0 | .15) | | | | (0 | .50) | | | $ | 10 | .55 | | | | 6 | .44% | | | $ | 7,900,079 | | | | | 0 | .83% | | | | 3 | .17% | | | | 0 | .83% | | | | 10 | .69% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .20 | | | | 0 | .26 | | | | 0 | .38 | | | | 0 | .64 | | | | (0 | .32) | | | | (0 | .12) | | | | (0 | .44) | | | $ | 10 | .40 | | | | 6 | .46% | | | $ | 502,668 | | | | | 0 | .83% | | | | 3 | .03% | | | | 0 | .83% | | | | 36 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .15 | | | | 0 | .22 | | | | 0 | .14 | | | | 0 | .36 | | | | (0 | .26) | | | | (0 | .05) | | | | (0 | .31) | | | $ | 10 | .20 | | | | 3 | .65% | | | $ | 3,156 | | | | | 0 | .65% | | | | 2 | .67% | | | | 0 | .65% | | | | 13 | .42% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .87 | | | | 0 | .22 | | | | 0 | .24 | | | | 0 | .46 | | | | (0 | .18) | | | | – | | | | | (0 | .18) | | | $ | 10 | .15 | | | | 4 | .73% | | | $ | 1,192 | | | | | 0 | .62% | | | | 2 | .30% | | | | –(f) | | | | | 11 | .67% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .62 | | | | 0 | .36 | | | | (1 | .16) | | | | (0 | .80) | | | | (0 | .40) | | | | (0 | .13) | | | | (0 | .53) | | | $ | 9 | .29 | | | | (7 | .89%) | | | $ | 5,705,718 | | | | | 0 | .20% | | | | 3 | .52% | | | | 0 | .20% | | | | 29 | .72% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .46 | | | | 0 | .38 | | | | 0 | .33 | | | | 0 | .71 | | | | (0 | .40) | | | | (0 | .15) | | | | (0 | .55) | | | $ | 10 | .62 | | | | 7 | .12% | | | $ | 5,019,624 | | | | | 0 | .22% | | | | 3 | .77% | | | | 0 | .22% | | | | 10 | .69% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .23 | | | | 0 | .33 | | | | 0 | .37 | | | | 0 | .70 | | | | (0 | .35) | | | | (0 | .12) | | | | (0 | .47) | | | $ | 10 | .46 | | | | 6 | .91% | | | $ | 158,596 | | | | | 0 | .22% | | | | 3 | .68% | | | | 0 | .23% | | | | 36 | .51% | | |
| Period Ended October 31, 2005 (g) | | | $ | 10 | .20 | | | | 0 | .27 | | | | (0 | .02) | | | | 0 | .25 | | | | (0 | .22) | | | | – | | | | | (0 | .22) | | | $ | 10 | .23 | | | | 2 | .44% | | | $ | 1,024 | | | | | 0 | .28% | | | | 3 | .74% | | | | 0 | .28% | | | | 13 | .42% | | |
2008 Annual Report 83
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Conservative Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 10 | .58 | | | | 0 | .32 | | | | (1 | .17) | | | | (0 | .85) | | | | (0 | .33) | | | | (0 | .13) | | | | (0 | .46) | | | $ | 9 | .27 | | | | (8 | .31%) | | | $ | 175,298,923 | | | | | 0 | .58% | | | | 3 | .14% | | | | 0 | .59% | | | | 29 | .72% | | |
| Year Ended October 31, 2007 | | | $ | 10 | .42 | | | | 0 | .35 | | | | 0 | .32 | | | | 0 | .67 | | | | (0 | .36) | | | | (0 | .15) | | | | (0 | .51) | | | $ | 10 | .58 | | | | 6 | .64% | | | $ | 190,120,407 | | | | | 0 | .61% | | | | 3 | .41% | | | | 0 | .61% | | | | 10 | .69% | | |
| Year Ended October 31, 2006 | | | $ | 10 | .20 | | | | 0 | .31 | | | | 0 | .34 | | | | 0 | .65 | | | | (0 | .31) | | | | (0 | .12) | | | | (0 | .43) | | | $ | 10 | .42 | | | | 6 | .52% | | | $ | 167,498,797 | | | | | 0 | .61% | | | | 2 | .95% | | | | 0 | .62% | | | | 36 | .51% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .15 | | | | 0 | .27 | | | | 0 | .09 | | | | 0 | .36 | | | | (0 | .26) | | | | (0 | .05) | | | | (0 | .31) | | | $ | 10 | .20 | | | | 3 | .62% | | | $ | 137,588,864 | | | | | 0 | .62% | | | | 2 | .70% | | | | 0 | .63% | | | | 13 | .42% | | |
| Year Ended October 31, 2004 | | | $ | 9 | .90 | | | | 0 | .23 | | | | 0 | .23 | | | | 0 | .46 | | | | (0 | .21) | | | | – | | | | | (0 | .21) | | | $ | 10 | .15 | | | | 4 | .69% | | | $ | 101,261,256 | | | | | 0 | .61% | | | | 2 | .31% | | | | 0 | .63% | | | | 11 | .67% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | There were no fee reductions during the period. |
| (g) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
84 Annual Report 2008
Notes to Financial Statements
October 31, 2008
1. Organization
Nationwide Mutual Funds (the “Trust”) is an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust dated October 28, 2004, as amended to date. The Trust, originally created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, was redomesticated as a Delaware statutory trust on February 28, 2005. The redomestication was a change in statutory status and did not affect the operations of the Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2008, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. The Trust operates thirty-six (36) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the five (5) funds listed below (each, a “Fund”; collectively, the “Funds”):
| | |
| | - | Nationwide Investor Destinations Aggressive Fund (“Investor Destinations Aggressive”) |
| | - | Nationwide Investor Destinations Moderately Aggressive Fund (“Investor Destinations Moderately Aggressive”) |
| | - | Nationwide Investor Destinations Moderate Fund (“Investor Destinations Moderate”) |
| | - | Nationwide Investor Destinations Moderately Conservative Fund (“Investor Destinations Moderately Conservative”) |
| | - | Nationwide Investor Destinations Conservative Fund (“Investor Destinations Conservative”) |
Each of the Funds is constructed as a “fund of funds,” which means that each of the Funds pursues its investment objective by allocating its investments primarily among other affiliated and unaffiliated mutual funds (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. Each of the Funds may also invest in a non-registered Fixed Interest Contract (“Fixed Interest Contract”) issued by Nationwide Life Insurance Company (“Nationwide Life”) up to the Fund’s designated limit.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates and those differences could be material.
Shares of the Underlying Funds in which the Fund invests are valued at their respective net asset values (“NAV“s) as reported by the Underlying Funds. The securities in the Underlying Funds generally are valued as of the close of business of the regular session of trading on the New York Stock Exchange (usually at 4:00 p.m. Eastern time). The Underlying Funds generally value securities and assets at current market value.
Each of the Funds (except the Investor Destinations Aggressive Fund) currently invests in the Nationwide Contract. The Nationwide Contract is a fixed interest contract issued and guaranteed by Nationwide Life. This contract has a stable principal value and will pay the Fund a fixed rate of interest. The fixed interest rate must be at least 3.50% (on an annual basis), but may be higher and is currently adjusted on a quarterly basis. During the twelve months ended October 31, 2008, the rate ranged from 4.00% to 4.05%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Fund receives no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets
2008 Annual Report 85
Notes to Financial Statements (Continued)
October 31, 2008
underlying the contract. Although under certain market conditions a Fund’s performance may be hurt by its investment in the Nationwide Contract, Nationwide Fund Advisors (“NFA” or “Adviser”) believes that the relatively stable nature of the Nationwide Contract should reduce the Fund’s volatility and overall risk, especially when the bond and stock markets decline simultaneously. Under most circumstances, the fixed interest contract is valued at par value each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day net purchase or redemption.
| |
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. The Funds may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty. As of October 31, 2008, the Funds did not hold any repurchase agreements.
| |
| (c) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
| |
| (d) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for all Funds. For all Funds, distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary in nature. Permanent differences (i.e., reclassification of market discounts, foreign gain/loss, and paydowns) are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the respective Funds. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, these excesses are reported as distributions of paid-in-capital.
It is the policy of each Fund to qualify or to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
86 Annual Report 2008
The Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. If a tax position taken by a Fund is not sustained upon examination by a taxing authority, the Fund may incur taxes and penalties related to that position, and those amounts could be material. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable) and an increase in a deferred tax liability (or a reduction in a deferred tax asset). Adoption of FIN 48 was required no later than the last business day of the first financial statement reporting period for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Accordingly, the Funds were required to implement FIN 48 in their NAV per share calculations on April 30, 2008. Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. Each Fund files U.S. federal income tax returns and, if applicable, returns in various state or foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service. The adoption of FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to each Fund’s NAV and financial statements.
| |
| (f) | Allocation of Expenses, Income, and Gains and Losses |
Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the Trust. For each Fund, the method for allocating income, fund level expenses, and realized and unrealized gains or losses is based on the fair value of shares outstanding relative to net assets. Under this method, each class of shares participates based on the total NAV of that class’s shares in proportion to the total net assets of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA” or the “Adviser”) manages the investment of the assets and supervises the daily business affairs of the Funds. NFA is a wholly-owned subsidiary of Nationwide Financial Services, Inc. (“NFS”), whose parent company is Nationwide Corporation.
Under the terms of the Funds’ Investment Advisory Agreement, the Funds each pay NFA an investment advisory fee of 0.13% based on the Fund’s average daily net assets.
NFA and the Funds have entered into written Expense Limitation Agreements, that limit operating expenses (excluding any taxes, interest, brokerage fees, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by the Fund in connection with any merger or reorganization and may exclude other non-routine expenses not
2008 Annual Report 87
Notes to Financial Statements (Continued)
October 31, 2008
incurred in the ordinary course of the Fund’s business) from exceeding the amounts listed in the table below until at least May 1, 2009:
| | | | | | | | | | | | | |
| | | Fund | | Classes | | Amount | | |
| |
| | | Investor Destinations Aggressive(a) | | | All Classes | | | | 0.25% | | | |
| |
| |
| | | Investor Destinations Moderately Aggressive(a) | | | All Classes | | | | 0.25% | | | |
| |
| |
| | | Investor Destinations Moderate(a) | | | All Classes | | | | 0.25% | | | |
| |
| |
| | | Investor Destinations Moderately Conservative(a) | | | All Classes | | | | 0.25% | | | |
| |
| |
| | | Investor Destinations Conservative(a) | | | All Classes | | | | 0.25% | | | |
| |
| |
| | |
| (a) | | The Expense Limitation Agreement also states that the expense ratio for each class, except Class R & Class I, will not exceed 4.00% through March 1, 2011. |
NFA may request and receive reimbursement from the Funds for advisory fees waived and other expenses reimbursed by NFA pursuant to the Expense Limitation Agreement at a date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the Class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Except as provided for in the Expense Limitation Agreements, reimbursement of amounts previously waived or assumed by NFA is not permitted. As of October 31, 2008, the Funds had no cumulative potential reimbursements.
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Funds’ principal underwriter, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. NFD is a wholly-owned subsidiary of NFS Distributors Inc. (“NFSDI”). These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A shares. These fees are deducted from and are not included in proceeds from sales of Class A shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A shares of the Funds. NFD also receives fees for services as principal underwriter for Class B shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B shares, which may cause the current value of a shareholder’s account to fall below the total purchase payments. The CDSC, if applicable, will be imposed on redemptions of Class B and shares made within six years of the purchase. Class C shares have a CDSC fee of 1% imposed on redemptions of Class C shares of the Funds made within one year of purchase. For the year ended October 31, 2008, NFD received commissions of $838,290 from front-end sales charges of Class A shares and from CDSC fees from Class B and Class C shares of the Funds, of which $74,626 was re-allowed to affiliated broker-dealers of the Funds.
Under the terms of a Fund Administration and Transfer Agency Agreement, Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFSDI, provides various administrative and accounting services for the Funds, and serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. The Funds do not pay a fee for these services.
NFA and NFM have entered into agreements with Citi Fund Services Ohio, Inc. (“Citi”), pursuant to which Citi provides sub-administration and sub-transfer agency services, respectively, to the Funds.
NFA and Citi have agreed to designate certain sub-transfer agency agreements NFA enters into with respect to the Funds as “Qualifying Sub-TA Agreements.” With respect to Qualifying Sub-TA Agreements, Citi will credit to NFA an amount equal to the lesser of (i) the actual amount NFA is charged by the sub-transfer agent under the
88 Annual Report 2008
applicable Qualifying Sub-TA Agreement or (ii) $10 per investor account; however, the aggregate amount paid with regard to all Qualifying Sub-TA Agreements, regardless of whether option (i) or (ii) applies, shall not exceed $200,000 per annum. Citi will calculate and credit such amounts to NFA’s fees on a monthly basis. All amounts will be credited to each applicable Fund on a monthly basis.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, NFS and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquiries regarding the Funds; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Class R, and Service Class shares of each of the Funds
For the year ended October 31, 2008, NFS received the following amounts in administrative services fees from each Fund:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Investor Destinations Aggressive | | $ | 1,227,350 | | | |
| |
| |
| | | Investor Destinations Moderately Aggressive | | | 1,912,222 | | | |
| |
| |
| | | Investor Destinations Moderate | | | 1,535,888 | | | |
| |
| |
| | | Investor Destinations Moderately Conservative | | | 452,550 | | | |
| |
| |
| | | Investor Destinations Conservative | | | 292,577 | | | |
| |
| |
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, by and among NFA, the Audit Committee of the Board of Trustees and the Trust, the Board of Trustees has agreed to reimburse NFA for certain costs related to the Funds’ portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the year ended October 31, 2008, the Funds’ portion of such costs amounted to $39,667.
4. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Funds’ custodian bank, permitting the Trust to borrow up to $100,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. The interest costs, if any, would be shown on the Statement of Operations. No compensating balances are required under the terms of the line of credit. The line of credit is renewed annually, expiring on July 23, 2009, with a commitment fee of 0.07% per year on $100,000,000. There are three (3) other lenders participating in this arrangement. Advances taken by the Funds under this arrangement would be primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. There were no borrowings under this line of credit during the year ended October 31, 2008.
The Trust’s custodian bank has agreed to reduce the bank’s fees (earnings credits) when the Funds of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those funds that use DDAs based on the number of open shareholder accounts in each Fund. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for the funds that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
2008 Annual Report 89
Notes to Financial Statements (Continued)
October 31, 2008
5. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Investor Destinations Aggressive | | $ | 172,805,148 | | | $ | 171,722,591 | | | |
| |
| |
| | | Investor Destinations Moderately Aggressive | | | 401,656,552 | | | | 378,759,329 | | | |
| |
| |
| | | Investor Destinations Moderate | | | 276,188,071 | | | | 542,418,614 | | | |
| |
| |
| | | Investor Destinations Moderately Conservative | | | 119,012,851 | | | | 88,765,400 | | | |
| |
| |
| | | Investor Destinations Conservative | | | 102,177,727 | | | | 61,461,088 | | | |
| |
| |
6. Indemnifications
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered into Indemnification Agreements with its Trustees and certain of its Officers. Trust Officers receive no compensation from the Trust for serving as its Officers. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum liability under these arrangements is unknown, as this would involve future claims that may be made against the Trust. Based on experience however, the Trust expects that risk of loss to be remote.
7. New Accounting Pronouncements
In September 2006, the FASB issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current accounting principles generally accepted in the United States of America from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of October 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about each Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on each Fund’s financial statements and related disclosures.
In September 2008, FASB Staff Position FAS 133-1 and FIN 45-4, “Disclosures about Credit Derivates and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (the “Amendment”) was issued and is effective for annual and interim reporting periods ending after November 15, 2008. The Amendment requires enhanced disclosures regarding a fund’s credit derivatives holdings and hybrid financial instruments containing embedded credit derivatives. Management is currently evaluating what impact the adoption of the Amendment will have on each Fund’s financial statement disclosure.
90 Annual Report 2008
8. Other
At October 31, 2008, the Funds had individual shareholder accounts and/or omnibus shareholder accounts (comprised of a group of individual shareholders), which amounted to more than 10% of the total shares outstanding of the Funds as detailed below.
| | | | | | | | | | | | | |
| | | Fund | | % of Shares | | Number of Accounts | | |
| |
| | | Investor Destination Aggressive | | | 81% | | | | 2 | | | |
| |
| |
| | | Investor Destination Mod Aggressive | | | 91% | | | | 3 | | | |
| |
| |
| | | Investor Destination Moderate | | | 90% | | | | 3 | | | |
| |
| |
| | | Investor Destination Mod Conservative | | | 81% | | | | 2 | | | |
| |
| |
| | | Investor Destination Conservative | | | 83% | | | | 2 | | | |
| |
| |
Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the NAV of many mutual funds, including these Funds. Such events during this period have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business and/or whose securities are or may be held by the Funds. The potential investment of each Fund’s investments in these issuers, and the financial sector in general, as reflected in each Fund’s schedule of investments, may expose investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
9. Federal Tax Information
The tax character of distributions paid during the fiscal year ended October 31, 2008, was as follows: (Total distributions paid may differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Investor Destinations Aggressive | | $ | 21,101,059 | | | $ | 37,653,853 | | | $ | 58,754,912 | | | $ | — | | | $ | 58,754,912 | | | |
| |
| |
| Investor Destinations Moderately Aggressive | | | 37,312,839 | | | | 43,672,410 | | | | 80,985,249 | | | | — | | | | 80,985,249 | | | |
| |
| |
| Investor Destinations Moderate | | | 35,219,718 | | | | 35,097,796 | | | | 70,317,514 | | | | — | | | | 70,317,514 | | | |
| |
| |
| Investor Destinations Moderately Conservative | | | 11,126,144 | | | | 9,262,620 | | | | 20,388,764 | | | | — | | | | 20,388,764 | | | |
| |
| |
| Investor Destinations Conservative | | | 7,610,724 | | | | 2,790,212 | | | | 10,400,936 | | | | — | | | | 10,400,936 | | | |
| |
| |
2008 Annual Report 91
Notes to Financial Statements (Continued)
October 31, 2008
The tax character of distributions paid during the fiscal year ended October 31, 2007, was as follows: (Total distributons paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Investor Destinations Aggressive | | $ | 24,732,426 | | | $ | 17,918,475 | | | $ | 42,650,901 | | | $ | — | | | $ | 42,650,901 | | | |
| |
| |
| Investor Destinations Moderately Aggressive | | | 40,707,968 | | | | 30,036,361 | | | | 70,744,329 | | | | — | | | | 70,744,329 | | | |
| |
| |
| Investor Destinations Moderate | | | 46,112,465 | | | | 29,220,691 | | | | 75,333,156 | | | | — | | | | 75,333,156 | | | |
| |
| |
| Investor Destinations Moderately Conservative | | | 11,266,948 | | | | 7,873,900 | | | | 19,140,848 | | | | — | | | | 19,140,848 | | | |
| |
| |
| Investor Destinations Conservative | | | 7,749,589 | | | | 3,108,476 | | | | 10,858,065 | | | | — | | | | 10,858,065 | | | |
| |
| |
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows: (Total distributions paid differ from the Staement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Total
| | |
| | | Undistributed
| | Undistributed
| | Undistributed
| | | | | | Accumulated
| | Unrealized
| | Accumulated
| | |
| | | Tax Exempt
| | Ordinary
| | Long-Term
| | Accumulated
| | Distributions
| | Capital and
| | Appreciation
| | Earnings
| | |
| Fund | | Income | | Income | | Capital Gains | | Earnings | | Payable | | Other Losses | | (Depreciation)* | | (Deficit) | | |
| |
| Investor Destinations Aggressive | | $ | — | | | $ | — | | | $ | 51,830,295 | | | $ | 51,830,295 | | | $ | — | | | $ | — | | | $ | (291,851,390) | | | $ | (240,021,095) | | | |
| |
| |
| Investor Destinations Moderately Aggressive | | | — | | | | 591,218 | | | | 91,586,304 | | | | 92,177,522 | | | | — | | | | — | | | | (400,364,983) | | | | (308,187,461) | | | |
| |
| |
| Investor Destinations Moderate | | | — | | | | 1,510,848 | | | | 93,323,834 | | | | 94,834,682 | | | | — | | | | — | | | | (262,947,180) | | | | (168,112,498) | | | |
| |
| |
| Investor Destinations Moderately Conservative | | | — | | | | 769,194 | | | | 9,272,092 | | | | 10,041,286 | | | | — | | | | — | | | | (60,401,507) | | | | (50,360,221) | | | |
| |
| |
| Investor Destinations Conservative | | | — | | | | 698,149 | | | | 3,504,410 | | | | 4,202,559 | | | | — | | | | — | | | | (24,091,372) | | | | (19,888,813) | | | |
| |
| |
| | |
| * | | The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. |
As of October 31, 2008, the tax cost of securities and the breakdown of unrealized appreciation / (depreciation) for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net Unrealized
| | |
| | | Tax Cost
| | Unrealized
| | Unrealized
| | Appreciation
| | |
| Fund | | of Securities | | Appreciation | | Depreciation | | (Depreciation) | | |
| |
| Investor Destinations Aggressive | | $ | 1,015,788,468 | | | $ | — | | | $ | (291,851,390) | | | $ | (291,851,390) | | | |
| |
| |
| Investor Destinations Moderately Aggressive | | | 1,628,715,561 | | | | 9 | | | | (400,364,992) | | | | (400,364,983) | | | |
| |
| |
92 Annual Report 2008
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net Unrealized
| | |
| | | Tax Cost
| | Unrealized
| | Unrealized
| | Appreciation
| | |
| Fund | | of Securities | | Appreciation | | Depreciation | | (Depreciation) | | |
| |
| Investor Destinations Moderate | | $ | 1,351,229,160 | | | $ | — | | | $ | (262,947,180) | | | $ | (262,947,180) | | | |
| |
| |
| Investor Destinations Moderately Conservative | | | 397,592,870 | | | | — | | | | (60,401,507) | | | | (60,401,507) | | | |
| |
| |
| Investor Destinations Conservative | | | 264,370,206 | | | | — | | | | (24,091,372) | | | | (24,091,372) | | | |
| |
| |
As of October 31, 2008, for Federal income tax purposes, the Funds did not have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the treasury regulations.
2008 Annual Report 93
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nationwide Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nationwide Investor Destinations Aggressive Fund, Nationwide Investor Destinations Moderately Aggressive Fund, Nationwide Investor Destinations Moderate Fund, Nationwide Investor Destinations Moderately Conservative Fund and Nationwide Investor Destinations Conservative Fund (five series of Nationwide Mutual Funds, hereafter referred to as the “Funds”) at October 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States.) Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the underlying funds’ transfer agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2008
94 Annual Report 2008
Supplemental Information
(Unaudited)
1) Other Federal Tax Information
For the period ended October 31, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2008 From 1099-DIV.
For the year ended October 31, 2008, the following Funds paid qualified dividend income:
| | | | | | | | | |
| | | | | Qualified
| | |
| | | | | Dividend
| | |
| | | Fund | | Income | | |
| |
| | | Investor Destinations Aggressive | | $ | 15,190,645 | | | |
| |
| |
| | | Investor Destinations Moderately Aggressive | | | 20,433,968 | | | |
| |
| |
| | | Investor Destinations Moderate | | | 12,350,967 | | | |
| |
| |
| | | Investor Destinations Moderately Conservative | | | 2,321,783 | | | |
| |
| |
| | | Investor Destinations Conservative | | | 729,142 | | | |
| |
| |
For the taxable year ended October 31, 2008, the following percentage of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
| | | | | | | | | |
| | | | | Dividends
| | |
| | | | | Received
| | |
| | | Fund | | Deduction | | |
| |
| | | Investor Destinations Aggressive | | | 45% | | | |
| |
| |
| | | Investor Destinations Moderately Aggressive | | | 35% | | | |
| |
| |
| | | Investor Destinations Moderate | | | 25% | | | |
| |
| |
| | | Investor Destinations Moderately Conservative | | | 15% | | | |
| |
| |
| | | Investor Destinations Conservative | | | 7% | | | |
| |
| |
The Funds designate the following amounts, or the maximum amount allowable under the Internal Revenue Code, as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Investor Destinations Aggressive | | $ | 37,653,853 | | | |
| |
| |
| | | Investor Destinations Moderately Aggressive | | | 43,672,411 | | | |
| |
| |
| | | Investor Destinations Moderate | | | 35,097,795 | | | |
| |
| |
| | | Investor Destinations Moderately Conservative | | | 9,262,620 | | | |
| |
| |
| | | Investor Destinations Conservative | | | 2,790,211 | | | |
| |
| |
2008 Annual Report 95
Management Information
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
| |
| |
Charles E. Allen
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
since
July 2000 | | | Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management). | | | | 94 | | | | None |
| |
| |
Paula H.J. Cholmondeley
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
Since
July 2000 | | | Ms. Cholmondeley has served as Chief Executive Officer of Sorrel Group (management consulting group) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | | | | 94 | | | | Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology, Inc. (specialty chemicals) |
| |
| |
C. Brent DeVore3
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1940 | | | Trustee
since 1990 | | | Dr. DeVore is President of Otterbein College. | | | | 94 | | | | None |
| |
| |
Phyllis Kay Dryden
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
since
December 2004 | | | Ms. Dryden was a partner of Mitchell Madison Group LLC, a management consulting company from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | | | | 94 | | | | None |
| |
| |
Barbara L. Hennigar
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1935 | | | Trustee
Since
July 2000 | | | Retired. Ms. Hennigar was Executive Vice President of Oppenheimer Funds (an asset management company) from October 1992 until June 2000 and Chairman of Oppenheimer Funds Services from October 1999 to June 2000 and President & CEO from June 1992 to October 1999. | | | | 94 | | | | None |
| |
| |
96 Annual Report 2008
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Barbara I. Jacobs
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Trustee
since
December 2004 | | | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 – 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association — College Retirement Equities Fund). | | | | 94 | | | | None |
| |
| |
Douglas F. Kridler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Trustee
since
September 1997 | | | Mr. Kridler has been a Board Member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of the Columbus Foundation (a Columbus, Ohio-based foundation which manages over 1,300 individual endowment funds) since February 2002. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts; Chairman of the Greater Columbus Convention and Visitors Bureau; and Board Member of Columbus Downtown Development Corporation. | | | | 94 | | | | None |
| |
| |
2008 Annual Report 97
Management Information (Continued)
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
David C. Wetmore
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
Since
1995 and
Chairman
Since
February 2005 | | | Retired. Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology orientated investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr Wetmore served as the COO, CEO and Chairman of the board of several publicly-held software and services companies and as the managing partner of a “big 8” public accounting firm. | | | | 94 | | | | None |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 3 | | Mr. DeVore has served as President of Otterbein College since 1984. Mark Thresher, President and Chief Operating Officer of Nationwide Financial Services, Inc. (“NFS”) has served as a member of the Board of Trustees of Otterbein College since 2000, currently serving as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Funds’ investment adviser, and Nationwide Fund Distributors LLC (“NFD”), principal underwriter to the Trust, are wholly-owned subsidiaries of NFS. Mr. DeVore has announced his intention to retire as President of Otterbein College at the end of the 2008-2009 school year. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
98 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
| |
| |
Arden L. Shisler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1941 | | | Trustee
SinceFebruary 20004 | | | Retired. Mr. Shisler is the former President and Chief Executive Officer of KeB Transport, Inc., a trucking firm (2000 through 2002). He served as a consultant to KeB from January 2003 through December 2004. Since 1992, Mr. Shisler has also been Chairman of the Board for Nationwide Mutual Insurance Company.2 | | | | 94 | | | | Director of Nationwide Financial Services, Inc., Chairman of Nationwide Mutual Insurance Company2 |
| |
| |
Michael S. Spangler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1966 | | | President and Chief
Executive Officer sinceJune 20085 | | | Mr. Spangler is the President and Chief Executive Officer of Nationwide Funds Group, which includes NFA,2 Nationwide Fund Management LLC 2 and Nationwide Fund Distributors LLC 2, and is a Senior Vice President of Nationwide Financial Services, Inc.2 From May 2004 until May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. He was President of Touchstone Advisors, Inc., and Vice President and Director of Touchstone Investments Business Operations from July 2002 until May 2004. | | | | N/A | | | | N/A |
| |
| |
Stephen T. Grugeon
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Executive Vice President
and Chief Operating
Officer since June20086 | | | Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. 2 Mr. Grugeon is also President of NWD Investments, which represents certain asset management operations of Nationwide Mutual Insurance Company and includes Nationwide SA Capital Trust. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006, and Chief Operating Officer of Corviant Corporation, a subsidiary of NWD Investments, from 1999 through 2003.2 | | | | N/A | | | | N/A |
| |
| |
Joseph Finelli
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1957 | | | Treasurer
Since
September 2007 | | | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting and Operations for Nationwide Funds Group.2 From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments.2 | | | | N/A | | | | N/A |
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2008 Annual Report 99
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Dorothy Sanders
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Chief Compliance
Officer
since
October 2007 | | | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). From 2000 to November 2004, she was Vice President, Secretary and General Counsel of Fred Alger & Company, Incorporated. | | | | N/A | | | | N/A |
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Eric E. Miller
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1953 | | | Secretary
Since
December 2002 | | | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
Doff Meyer
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Vice President
and
Chief Marketing
Officer
since
January 2008 | | | Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007). 2 From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. From January 2003 until September 2004, Ms. Meyer was an independent marketing consultant. | | | | N/A | | | | N/A |
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100 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Michael Butler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1959 | | | Vice President
and Chief Distribution
Officer
since
January 2008 | | | Mr. Butler is Chief Distribution Officer of Nationwide Funds Group (since May 2007) and President of Nationwide Fund Distributors LLC (since January 2008). 2 From January 2006 through April 2007, Mr. Butler was Vice President – Mutual Fund Strategy of Nationwide Financial Services, Inc.2 and was Senior Vice President – Retirement Plan Sales of NFS Distributors, Inc.2 from 2000 until January 2006. | | | | N/A | | | | N/A |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | This position is held with an affiliated person or principal underwriter of the Trust. |
| 3 | | Directorships held in (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 4 | | Mr. Shisler resigned as a Trustee of the Trust effective September 19, 2008. |
| 5 | | Prior to June 30, 2008, Mr. Grugeon served as the Trust’s acting President and Chief Executive Officer. Prior to February 2008, Mr. John H. Grady was the President and Chief Executive Officer. |
| 6 | | From February 2008 through June 2008, Mr. Grugeon also served as acting President and Chief Executive Officer of Nationwide Mutual Funds, Nationwide Variable Insurance Trust and Nationwide Funds Group. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Funds’ website at www.nationwidefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
2008 Annual Report 101
1200 River Road, Suite 1000
Conshohocken, PA 19428
nationwidefunds.com
Nationwide, the Nationwide Framemark, Nationwide Funds and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds Group is a service mark of Nationwide Mutual Insurance Company
©2008 Nationwide Funds Group.
All rights reserved.
AR-ID 12/08
Nationwide Mutual Funds
Annual Report
October 31, 2008
Equity Funds
Nationwide Growth Fund
Nationwide Fund
Fixed-Income Funds
Nationwide Money Market Fund
AnnualReport
October 31, 2008
| | | | |
| | | | Contents |
| | | | |
| 1 | | | Message to Shareholders |
| | | | |
| | | | Equity Funds |
| 6 | | | Nationwide Growth Fund |
| 21 | | | Nationwide Fund |
| | | | |
| | | | Fixed Income Funds |
| 38 | | | Nationwide Money Market Fund |
| 53 | | | Notes to Financial Statements |
| | | | |
Commentary provided by Nationwide Fund Advisors, investment adviser to Nationwide Funds. All opinions and estimates included in this report constitute the Adviser’s judgment as of the date of this report and are subject to change without notice. Portfolio composition is accurate as of the date of this report and is subject to change at any time.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The Nationwide Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on nationwidefunds.com or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
This page intentionally left blank
Message to Shareholders
October 31, 2008
Dear Shareholder:
Challenging developments in financial markets, as well as in the global economy particularly during the latter months of the annual reporting period, have dominated the news cycles. Commentators have described the decline as “unprecedented in our lifetime.” Unfortunately, I cannot contradict the pundits. Nearly across the board, markets are posting negative performance numbers in the double digits. As for our funds, while some performed well relative to their peer groups, most have lost value.
The causes for the prevailing negative market conditions have been well documented in the press and elsewhere. The failure of high-profile financial institutions and the extraordinary government intervention have left no asset class unaffected. While I can’t give you good news at this time, I can urge you to keep these events in perspective.
It’s important to remember that economic markets never stand still. They’re volatile by nature. Of course, that premise is easier to accept when markets are going up. However, we approach investing from a long-term perspective. Staying focused, adhering to a plan and remaining aware of your options will help you endure various market conditions.
Nationwide® and Nationwide Funds Groupsm continue to work with investors to help them keep a solid grasp on their long-term financial goals. Our approach is deliberate and our commitment is firm. We do not foresee a fast recovery from the ongoing economic and market turbulence. However, we believe that our underlying investment principles are sound.
In closing, we thank you for entrusting your assets to Nationwide Funds Group.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
This report and the holdings provided are for informational purposes only, and are not intended as an offer or recommendation with respect to the purchase or sale of any security, option, future or other derivatives in such securities. Portfolio composition is subject to change at any time. There is no assurance that any specific securities mentioned in this report will remain in the fund’s portfolio. A more recent listing of each fund’s portfolio holdings can be found on the Trust’s internet site nationwidefunds.com.
There is no assurance that a diversified portfolio will produce better results than a nondiversified portfolio.
Investing in mutual funds involves risk, including the possible loss of principal. There is no assurance that the investment objective of any fund will be achieved.
Market index performance is provided by a third party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and does not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective as determined by Lipper Inc.
Lipper Inc., a wholly owned subsidiary of Reuters, is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
iMoneyNet First Tier Retail Index: An unmanaged index that is an average of non-government retail money market mutual funds that do not invest in any second-tier securities. Portfolio holdings of first-tier money market mutual funds include U.S. Treasury, U.S. other, repurchase agreements, time deposits, domestic and foreign bank obligations, first-tier commercial paper, floating-rate notes and asset-backed commercial paper.
Barclay s Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index]: An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-
2008 Annual Report 1
Message to Shareholders (Continued)
October 31, 2008
backed securities with maturities of one year or more) that is generally representative of the bond market as a whole.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 1000® Growth Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 1000® Index (the largest 1,000 U.S. companies, based on market capitalization) with higher price-to-book ratios and higher forecasted growth values.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency except as stated below. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the money market.
| |
| • | The U.S. Treasury Temporary Guarantee Program provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008. |
| |
| • | Any increase in the number of shares an investor holds after the close of business on September 19, 2008, will not be guaranteed. |
| |
| • | If a customer closes his or her account with a fund or broker-dealer, any future investment in the fund will not be guaranteed. |
| |
| • | If the number of shares an investor holds fluctuates during the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. |
| |
| • | The Program, which was set to expire on December 18, 2008, has been extended by the United States Treasury and is set to expire on April 30, 2009. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Class A shares at NAV of the Nationwide Fund and the Nationwide Growth Fund, and Prime Shares of the Nationwide Money Market Fund. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Sales charge and fee information:
Nationwide Fund
Nationwide Growth Fund
Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee.
Sales charge and fee information:
Nationwide Money Market Fund
The Fund has no sales charge or 12b-1 fee.Total returns reflect a waiver of part of the Fund’s fees for certain periods since inception, without which returns would have been lower.
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain
2 Annual Report 2008
this and other fund information, please call 1-800-848-0920 to request a prospectus, or download a prospectus at nationwidefunds.com. Please read it carefully before investing any money.
The Funds’ adviser or its employees, may have a position in the securities named in this report. Except where otherwise indicated, the views and opinions expressed herein are those of Nationwide Funds Group as of the date noted, are subject to change at any time, and may not come to pass.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428. NFD is not affiliated with Aberdeen Asset Management Inc. NFD is affiliated with Nationwide Asset Management, LLC.
Nationwide Funds Group (NFG) is the mutual fund arm of Nationwide Financial Services, Inc. (NYSE: NFS). Based in Conshohocken, Pa., a suburb of Philadelphia, NFG comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to the Nationwide Funds. NFS is an affiliate of Nationwide Mutual Insurance Company.
2008 Annual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the year ended October 31, 2008.
The economic conditions during the reporting period were driven by events that began to take shape in mid-year 2007 as the bursting of the U.S. housing bubble triggered a number of collateral impacts across the global economy. Specifically, substantial dislocations occurred in global financial markets. The financial imbalances and subprime mortgage default issues that became obvious to everyone in late 2007 mushroomed into a global financial crisis marked by diminishing liquidity and plunging asset values.
Financial services and cyclical stocks were the areas most aggressively pressured during the reporting period as the economy slowed and the residential housing market and the mortgages backing it soured. These problems included: (1) the failures of several prominent U.S. financial institutions; (2) the U.S. government’s takeover of Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market); (3) the reorganization of Wall Street’s remaining investment banks (The Goldman Sachs Group, Inc. and Morgan Stanley) as bank holding companies; and (4) the need to pass a $700 billion Troubled Asset Relief Program (TARP) bill by the U.S. Congress.
In short, the reporting period was filled with events that have not happened in more than 50 years, and, in many cases, since the Great Depression. Worldwide recession fears, fueled by these financial problems, resulted in sizable double-digit declines in nearly all segments of the investment market as well as increased volatility throughout the reporting period, along with rapid changes in relative performance among economic sectors. This was especially true in commodities; prices both surged and fell sharply during the course of the reporting period.
Large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, fell 36% during the reporting period as credit markets deteriorated and market volatility reached record levels. Mid-cap U.S. equities, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 37%, and small-cap U.S. equities, as measured by the Russell 2000® Index, declined 34%.
In general, international stocks were even more negatively affected than U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost more than 46% during the reporting period, including a loss of more than 34% during the last three months of the period. Emerging market stocks, as measured by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, lost more than 56% during the reporting period, including a loss of more than 44% during the last three months of the period.
The reporting period was a time of general disappointment for fixed-income investors as well. The broad-based Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] gained a mere 0.31%. Continuing credit market woes, however, coupled with uncertainty about the extent of government intervention to help ease the liquidity crunch, served to drag down U.S. investment-grade corporate bonds by nearly 14% during the reporting period.
4 Annual Report 2008
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Growth Fund (Class A at NAV) registered -37.65% versus -36.95% for its benchmark, the Russell 1000® Growth Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Large-Cap Growth Funds (consisting of 784 funds as of October 31, 2008) was -38.55% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund benefited from holdings in a number of strong companies. These included Gilead Sciences, Inc., an HIV drugmaker that benefited from increased use of its key products; McDonald’s Corp., which took market share from higher-end restaurants in a slowing economy; Hess Corp., which rallied during the reporting period when energy prices were rising rapidly; and Visa Inc., which enjoyed margin-expansion opportunities. Wal-Mart Stores, Inc. performed well after making store improvements and benefited from a trend toward greater frugality among consumers amid a weakening economy. The Fund’s positions in QUALCOMM Inc. and McAfee, Inc. also were positive contributors. The Fund was overweight in the health-care sector relative to its benchmark index throughout the reporting period and benefited as health-care stocks generally outperformed the market.
What areas of investment detracted from Fund performance?
The Fund’s overall stock selection in the health care and technology sectors hampered performance during the reporting period. Health insurer Aetna Inc. fell as investment income declined, while Merck & Co., Inc. fell as prescription rates for several of its key drugs came in lower than anticipated. Symantec Corp., a security software firm, and Cognizant Technology Solutions Corp., an outsourcer of technology, were both weaker as large financial-services customers pulled back on spending plans. The Fund’s underweight positions in a number of large companies such as The Procter & Gamble Co. and International Business Machines Corp. (IBM) hindered performance as large, stable companies outperformed the market during the reporting period.
What is your outlook for the near term?
While we obviously are mindful of a slowing global economy and continuing near-term dislocations in global credit markets, we remain confident in the ultimate durability of both the U.S. and international economies. Global policy action and coordination by regulators and policymakers has been both unprecedented and substantial, and this is likely to have an improving effect over the longer term. Although the reporting period has been volatile and negative, the foundation has been laid for what could be the start of a recovery in 2009. It is important to note that the dollar has been stable of late, and the commodity investment bubble appears to have burst. With policymakers around the globe moving with increased cohesion and vigor to restore confidence and prevent a deflationary spiral, signs of a recovery are beginning to emerge. In the meantime, we believe that our focus on finding good-quality businesses at attractive valuations will position the Fund appropriately to benefit from an economic recovery.
Subadviser:
Aberdeen Asset Management Inc.
Portfolio Managers:
Christopher Baggini, CFA and Douglas Burtnick, CFA
2008 Annual Report 5
| |
| Fund Performance | Nationwide Growth Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr. | | Ratio* |
| |
| Class A | | w/o SC1 | | | -37.65% | | | | -0.68% | | | | -5.64% | | | | 1.12% | |
| | | w/SC2 | | | -41.25% | | | | -1.85% | | | | -6.20% | | | | | |
| |
| |
| Class B | | w/o SC1 | | | -38.06% | | | | -1.36% | | | | -6.53% | | | | 1.81% | |
| | | w/SC3 | | | -41.16% | | | | -1.76% | | | | -6.53% | | | | | |
| |
| |
Class C4 | | w/o SC1 | | | -38.07% | | | | -1.34% | | | | -6.17% | | | | 1.81% | |
| | | w/SC5 | | | -38.69% | | | | -1.34% | | | | -6.17% | | | | | |
| |
| |
| Class D | | w/o SC2 | | | -37.40% | | | | -0.37% | | | | -5.36% | | | | 0.81% | |
| | | w/SC6 | | | -40.22% | | | | -1.27% | | | | -5.80% | | | | | |
| |
| |
Class R1,7 | | | | | -37.87% | | | | -0.90% | | | | -5.61% | | | | 1.51% | |
| |
| |
Institutional Service Class1,7 | | | | | -37.36% | | | | -0.36% | | | | -5.35% | | | | 0.81% | |
| |
| |
Institutional Class1,7 | | | | | -37.44% | | | | -0.40% | | | | -5.38% | | | | 0.81% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 2 | | A 5.75% front-end sales charge was deducted. |
| |
| 3 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 4 | | These returns for periods prior to the creation of the class, include the performance of the Fund’s Class D shares. These returns were achieved prior to the creation of Class C shares (3/1/01), Institutional Service Class shares (1/2/02), Class R shares (10/1/03), and Institutional Class shares (6/29/04). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C, Institutional Service Class, Class R shares and Institutional Class shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for Class C and Class R shares would have been lower. |
| |
| 5 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 6 | | A 4.50% front-end sales charge was deducted. |
| |
| 7 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class D shares of the Nationwide Growth Fund, the Russell 1000 Growth Index (Russell 1000 Growth)(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 10/31/08. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell 1000 Growth measures the performance of those companies in the Russell 1000 Index (the largest 1000 companies in the U.S.) with higher price-to-book ratios and higher forecasted growth values. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
6 Annual Report 2008
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Growth Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 703.34 | | | | 4.72 | | | | 1.10 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.59 | | | | 5.62 | | | | 1.10 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 700.27 | | | | 7.80 | | | | 1.83 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,015.96 | | | | 9.29 | | | | 1.83 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 700.27 | | | | 7.81 | | | | 1.83 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,015.94 | | | | 9.31 | | | | 1.83 | |
| |
| |
| Class D Shares | | | Actual | | | | 1,000.00 | | | | 704.46 | | | | 3.55 | | | | 0.83 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.97 | | | | 4.22 | | | | 0.83 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 702.34 | | | | 6.09 | | | | 1.42 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.98 | | | | 7.25 | | | | 1.42 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 704.82 | | | | 3.38 | | | | 0.79 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.17 | | | | 4.02 | | | | 0.79 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 704.11 | | | | 3.39 | | | | 0.79 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.15 | | | | 4.03 | | | | 0.79 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 7
| |
| Portfolio Summary | Nationwide Growth Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 99.1% | |
| Repurchase Agreement | | | 1.7% | |
| Liabilities in excess of other assets | | | -0.8% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Software | | | 9.1% | |
| Biotechnology | | | 7.1% | |
| Computers & Peripherals | | | 6.7% | |
| Health Care Equipment & Supplies | | | 5.2% | |
| Pharmaceuticals | | | 5.1% | |
| Food & Staples Retailing | | | 5.0% | |
| Communications Equipment | | | 4.7% | |
| Hotels, Restaurants & Leisure | | | 4.5% | |
| Oil, Gas & Consumable Fuels | | | 3.9% | |
| Energy Equipment & Services | | | 3.6% | |
| Other | | | 45.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Microsoft Corp. | | | 3.8% | |
| Abbott Laboratories | | | 2.7% | |
| Apple, Inc. | | | 2.7% | |
| Wal-Mart Stores, Inc. | | | 2.6% | |
| Google, Inc. | | | 2.3% | |
| Oracle Corp. | | | 2.1% | |
| PepsiCo, Inc. | | | 2.1% | |
| Cisco Systems, Inc. | | | 2.0% | |
| Gilead Sciences, Inc. | | | 2.0% | |
| McDonald’s Corp. | | | 1.9% | |
| Other | | | 75.8% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
8 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Growth Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 99.1% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 3.6% |
| Boeing Co. | | | 8,780 | | | $ | 458,931 | |
| Honeywell International, Inc. | | | 33,200 | | | | 1,010,940 | |
| Precision Castparts Corp. | | | 12,850 | | | | 832,808 | |
| Raytheon Co. | | | 30,150 | | | | 1,540,966 | |
| United Technologies Corp. | | | 8,360 | | | | 459,466 | |
| | | | | | | | | |
| | | | | | | | 4,303,111 | |
| | | | | | | | | |
| |
| |
Beverages 3.4% |
Coca-Cola Co. (The) | | | 35,920 | | | | 1,582,635 | |
| PepsiCo, Inc. | | | 44,690 | | | | 2,547,777 | |
| | | | | | | | | |
| | | | | | | | 4,130,412 | |
| | | | | | | | | |
| |
| |
Biotechnology 7.1% |
| Amgen, Inc.* | | | 11,450 | | | | 685,741 | |
| Biogen Idec, Inc.* | | | 28,470 | | | | 1,211,398 | |
| Cephalon, Inc.* | | | 19,200 | | | | 1,377,024 | |
| Genentech, Inc.* | | | 18,200 | | | | 1,509,508 | |
| Gilead Sciences, Inc.* | | | 52,090 | | | | 2,388,326 | |
| ImClone Systems, Inc.* | | | 9,240 | | | | 635,342 | |
| United Therapeutics Corp.* | | | 8,620 | | | | 751,923 | |
| | | | | | | | | |
| | | | | | | | 8,559,262 | |
| | | | | | | | | |
| |
| |
Capital Markets 2.2% |
| Charles Schwab Corp. (The) | | | 63,200 | | | | 1,208,384 | |
| Franklin Resources, Inc. | | | 3,200 | | | | 217,600 | |
| Investment Technology Group, Inc.* | | | 6,300 | | | | 128,583 | |
| Lazard Ltd., Class A | | | 7,750 | | | | 233,818 | |
| State Street Corp. | | | 21,190 | | | | 918,586 | |
| | | | | | | | | |
| | | | | | | | 2,706,971 | |
| | | | | | | | | |
| |
| |
Chemicals 1.9% |
| Air Products & Chemicals, Inc. | | | 17,000 | | | | 988,210 | |
| Celanese Corp., Series A | | | 17,750 | | | | 246,015 | |
| Monsanto Co. | | | 11,977 | | | | 1,065,713 | |
| | | | | | | | | |
| | | | | | | | 2,299,938 | |
| | | | | | | | | |
| |
| |
Commercial Banks 0.5% |
| Synovus Financial Corp. | | | 61,400 | | | | 634,262 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 0.1% |
| Waste Management, Inc. | | | 5,500 | | | | 171,765 | |
| | | | | | | | | |
| |
| |
Communications Equipment 4.7% |
| Cisco Systems, Inc.* | | | 134,540 | | | | 2,390,776 | |
| Juniper Networks, Inc.* | | | 67,100 | | | | 1,257,454 | |
| Nortel Networks Corp.* | | | 63 | | | | 78 | |
| QUALCOMM, Inc. | | | 51,920 | | | | 1,986,459 | |
| | | | | | | | | |
| | | | | | | | 5,634,767 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 6.7% |
| Apple, Inc.* | | | 29,940 | | | | 3,221,245 | |
| Dell, Inc.* | | | 16,550 | | | | 201,083 | |
| EMC Corp.* | | | 109,950 | | | | 1,295,211 | |
| Hewlett-Packard Co. | | | 52,640 | | | | 2,015,059 | |
| International Business Machines Corp. | | | 15,050 | | | | 1,399,198 | |
| | | | | | | | | |
| | | | | | | | 8,131,796 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 0.5% |
| Quanta Services, Inc.* | | | 27,400 | | | | 541,424 | |
| | | | | | | | | |
| |
| |
Consumer Finance 0.4% |
| MasterCard, Inc., Class A | | | 3,020 | | | | 446,416 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 1.5% |
| IntercontinentalExchange, Inc.* | | | 9,410 | | | | 805,120 | |
| JPMorgan Chase & Co. | | | 23,800 | | | | 981,750 | |
| | | | | | | | | |
| | | | | | | | 1,786,870 | |
| | | | | | | | | |
| |
| |
Diversified Telecommunication Services 0.1% |
| Windstream Corp. | | | 23,450 | | | | 176,110 | |
| | | | | | | | | |
| |
| |
Electric Utility 0.2% |
| DPL, Inc. | | | 10,150 | | | | 231,522 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 1.7% |
| Ametek, Inc. | | | 27,495 | | | | 914,209 | |
| Emerson Electric Co. | | | 33,300 | | | | 1,089,909 | |
| | | | | | | | | |
| | | | | | | | 2,004,118 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 3.6% |
| Cameron International Corp.* | | | 22,700 | | | | 550,702 | |
| Halliburton Co. | | | 9,320 | | | | 184,443 | |
| Schlumberger Ltd. | | | 37,620 | | | | 1,943,073 | |
| Transocean, Inc. | | | 20,874 | | | | 1,718,556 | |
| | | | | | | | | |
| | | | | | | | 4,396,774 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 5.0% |
| CVS Caremark Corp. | | | 74,969 | | | | 2,297,800 | |
| Kroger Co. (The) | | | 10,750 | | | | 295,195 | |
| SYSCO Corp. | | | 13,500 | | | | 353,700 | |
| Wal-Mart Stores, Inc. | | | 56,160 | | | | 3,134,289 | |
| | | | | | | | | |
| | | | | | | | 6,080,984 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 5.2% |
| Baxter International, Inc. | | | 34,150 | | | | 2,065,733 | |
| Beckman Coulter, Inc. | | | 5,600 | | | | 279,552 | |
| Becton, Dickinson & Co. | | | 19,000 | | | | 1,318,600 | |
| Hospira, Inc.* | | | 24,600 | | | | 684,372 | |
| Medtronic, Inc. | | | 10,300 | | | | 415,399 | |
| St. Jude Medical, Inc.* | | | 41,650 | | | | 1,583,950 | |
| | | | | | | | | |
| | | | | | | | 6,347,606 | |
| | | | | | | | | |
2008 Annual Report 9
Statement of Investments (Continued)
October 31, 2008
Nationwide Growth Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
Health Care Equipment & Supplies (continued) |
| | | | | | | | | |
| |
| |
| | | | | | | | | |
Health Care Providers & Services 2.8% |
| Aetna, Inc. | | | 41,760 | | | $ | 1,038,571 | |
| Medco Health Solutions, Inc.* | | | 24,400 | | | | 925,980 | |
| UnitedHealth Group, Inc. | | | 57,350 | | | | 1,360,916 | |
| | | | | | | | | |
| | | | | | | | 3,325,467 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 4.5% |
| Burger King Holdings, Inc. | | | 39,700 | | | | 789,236 | |
| Carnival Corp. | | | 11,350 | | | | 288,290 | |
| Darden Restaurants, Inc. | | | 58,000 | | | | 1,285,860 | |
| McDonald’s Corp. | | | 40,470 | | | | 2,344,427 | |
| WMS Industries, Inc.* | | | 31,500 | | | | 787,500 | |
| | | | | | | | | |
| | | | | | | | 5,495,313 | |
| | | | | | | | | |
| |
| |
Household Products 2.0% |
| Clorox Co. | | | 9,850 | | | | 598,979 | |
| Colgate-Palmolive Co. | | | 23,700 | | | | 1,487,412 | |
| Procter & Gamble Co. | | | 5,430 | | | | 350,452 | |
| | | | | | | | | |
| | | | | | | | 2,436,843 | |
| | | | | | | | | |
| |
| |
Information Technology Services 3.0% |
| Alliance Data Systems Corp.* | | | 30,320 | | | | 1,520,851 | |
| Cognizant Technology Solutions Corp., Class A* | | | 44,920 | | | | 862,464 | |
| Total System Services, Inc. | | | 15,700 | | | | 215,718 | |
| Visa, Inc., Class A | | | 18,260 | | | | 1,010,691 | |
| | | | | | | | | |
| | | | | | | | 3,609,724 | |
| | | | | | | | | |
| |
| |
Insurance 0.7% |
| Aflac, Inc. | | | 19,150 | | | | 847,962 | |
| | | | | | | | | |
| |
| |
Internet & Catalog Retail 0.2% |
| Amazon.com, Inc.* | | | 3,700 | | | | 211,788 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 2.3% |
| Google, Inc., Class A* | | | 7,620 | | | | 2,738,323 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 0.5% |
| Hasbro, Inc. | | | 20,700 | | | | 601,749 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 1.2% |
| Illumina, Inc.* | | | 9,300 | | | | 286,719 | |
| Thermo Fisher Scientific, Inc.* | | | 29,450 | | | | 1,195,670 | |
| | | | | | | | | |
| | | | | | | | 1,482,389 | |
| | | | | | | | | |
| |
| |
Machinery 1.4% |
| Caterpillar, Inc. | | | 7,130 | | | | 272,152 | |
| Deere & Co. | | | 22,450 | | | | 865,672 | |
| Harsco Corp. | | | 10,890 | | | | 257,766 | |
| PACCAR, Inc. | | | 8,500 | | | | 248,540 | |
| | | | | | | | | |
| | | | | | | | 1,644,130 | |
| | | | | | | | | |
| |
| |
Media 1.9% |
| Comcast Corp., Class A | | | 83,200 | | | | 1,311,232 | |
| Time Warner, Inc. | | | 24,850 | | | | 250,737 | |
| Walt Disney Co. (The) | | | 28,260 | | | | 731,934 | |
| | | | | | | | | |
| | | | | | | | 2,293,903 | |
| | | | | | | | | |
| |
| |
Multiline Retail 0.8% |
| Kohl’s Corp.* | | | 28,800 | | | | 1,011,744 | |
| | | | | | | | | |
| |
| |
Natural Gas Utility 0.2% |
| Questar Corp. | | | 7,400 | | | | 255,004 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 3.9% |
| Cabot Oil & Gas Corp. | | | 27,900 | | | | 783,153 | |
| EOG Resources, Inc. | | | 20,420 | | | | 1,652,386 | |
| Exxon Mobil Corp. | | | 5,100 | | | | 378,012 | |
| Hess Corp. | | | 4,700 | | | | 282,987 | |
| Occidental Petroleum Corp. | | | 15,600 | | | | 866,424 | |
| Williams Cos., Inc. | | | 36,430 | | | | 763,937 | |
| | | | | | | | | |
| | | | | | | | 4,726,899 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 5.1% |
| Abbott Laboratories | | | 59,300 | | | | 3,270,395 | |
| Allergan, Inc. | | | 13,600 | | | | 539,512 | |
| Bristol-Myers Squibb Co. | | | 99,900 | | | | 2,052,945 | |
| Johnson & Johnson | | | 5,200 | | | | 318,968 | |
| | | | | | | | | |
| | | | | | | | 6,181,820 | |
| | | | | | | | | |
| |
| |
Road & Rail 1.6% |
| Burlington Northern Santa Fe Corp. | | | 4,200 | | | | 374,052 | |
| Canadian National Railway Co. | | | 22,450 | | | | 971,187 | |
| Ryder System, Inc. | | | 4,500 | | | | 178,290 | |
| Union Pacific Corp. | | | 5,400 | | | | 360,558 | |
| | | | | | | | | |
| | | | | | | | 1,884,087 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 3.5% |
| Altera Corp. | | | 43,450 | | | | 753,857 | |
| Intel Corp. | | | 146,130 | | | | 2,338,080 | |
| Marvell Technology Group Ltd.* | | | 98,350 | | | | 684,516 | |
| Texas Instruments, Inc. | | | 22,450 | | | | 439,122 | |
| | | | | | | | | |
| | | | | | | | 4,215,575 | |
| | | | | | | | | |
| |
| |
Software 9.1% |
| Adobe Systems, Inc.* | | | 45,000 | | | | 1,198,800 | |
| Citrix Systems, Inc.* | | | 24,300 | | | | 626,211 | |
| McAfee, Inc.* | | | 30,100 | | | | 979,755 | |
| Microsoft Corp. | | | 208,020 | | | | 4,645,087 | |
| Oracle Corp.* | | | 141,290 | | | | 2,584,194 | |
| Symantec Corp.* | | | 77,950 | | | | 980,611 | |
| | | | | | | | | |
| | | | | | | | 11,014,658 | |
| | | | | | | | | |
| | | | | | | | | |
10 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| |
| |
Specialty Retail 2.6% |
| GameStop Corp., Class A* | | | 34,740 | | | $ | 951,529 | |
| J Crew Group, Inc.* | | | 21,600 | | | | 437,400 | |
| Lowe’s Cos., Inc. | | | 38,400 | | | | 833,280 | |
| Ross Stores, Inc. | | | 29,000 | | | | 948,010 | |
| | | | | | | | | |
| | | | | | | | 3,170,219 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 1.9% |
| Coach, Inc.* | | | 54,700 | | | | 1,126,820 | |
| Nike, Inc., Class B | | | 20,400 | | | | 1,175,652 | |
| | | | | | | | | |
| | | | | | | | 2,302,472 | |
| | | | | | | | | |
| |
| |
Tobacco 0.5% |
| Altria Group, Inc. | | | 18,150 | | | | 348,299 | |
| Philip Morris International, Inc. | | | 6,300 | | | | 273,861 | |
| | | | | | | | | |
| | | | | | | | 622,160 | |
| | | | | | | | | |
| |
| |
Trading Companies & Distributors 0.4% |
| W.W. Grainger, Inc. | | | 6,520 | | | | 512,276 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 0.6% |
| American Tower Corp., Class A* | | | 20,550 | | | | 663,971 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 119,832,584 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 1.7% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $2,067,363, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $2,108,696 | | $ | 2,067,349 | | | | 2,067,349 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $150,537,402) (a) — 100.8% | | | 121,899,933 | |
Liabilities in excess of other assets — (0.8)% | | | | | | | (912,100 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 120,987,833 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 11
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Growth
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $148,470,053) | | | $ | 119,832,584 | |
| Repurchase agreements, at value and cost | | | | 2,067,349 | |
| | | | | | |
| Total Investments | | | | 121,899,933 | |
| | | | | | |
| Interest and dividends receivable | | | | 117,861 | |
| Receivable for capital shares issued | | | | 63,473 | |
| Receivable for investments sold | | | | 1,257,996 | |
| Prepaid expenses and other assets | | | | 43,430 | |
| | | | | | |
| Total Assets | | | | 123,382,693 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 1,990,236 | |
| Payable for capital shares redeemed | | | | 253,045 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 61,998 | |
| Fund administration fees | | | | 12,380 | |
| Distribution fees | | | | 4,439 | |
| Administrative servicing fees | | | | 18,660 | |
| Trustee fees | | | | 458 | |
| Compliance program costs (Note 3) | | | | 655 | |
| Other | | | | 52,989 | |
| | | | | | |
| Total Liabilities | | | | 2,394,860 | |
| | | | | | |
Net Assets | | | $ | 120,987,833 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 380,619,144 | |
| Accumulated undistributed net investment income | | | | 80,189 | |
| Accumulated net realized losses from investment transactions | | | | (231,074,031 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (28,637,469 | ) |
| | | | | | |
Net Assets | | | $ | 120,987,833 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 9,957,021 | |
| Class B Shares | | | | 2,039,665 | |
| Class C Shares | | | | 623,431 | |
| Class D Shares | | | | 108,364,868 | |
| Class R Shares | | | | 996 | |
| Institutional Service Class Shares | | | | 924 | |
| Institutional Class Shares | | | | 928 | |
| | | | | | |
| Total | | | $ | 120,987,833 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
12 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Growth
| |
| | | | Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 1,748,456 | |
| Class B Shares | | | | 396,538 | |
| Class C Shares | | | | 121,229 | |
| Class D Shares | | | | 18,551,401 | |
| Class R Shares | | | | 174 | |
| Institutional Service Class Shares | | | | 158 | |
| Institutional Class Shares | | | | 159 | |
| | | | | | |
| Total | | | | 20,818,115 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 5.69 | |
| Class B Shares (a) | | | $ | 5.14 | |
| Class C Shares (b) | | | $ | 5.14 | |
| Class D Shares | | | $ | 5.84 | |
| Class R Shares | | | $ | 5.71 | (c) |
| Institutional Service Class Shares | | | $ | 5.85 | |
| Institutional Class Shares | | | $ | 5.83 | (c) |
| | | | | | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 6.04 | |
| Class D Shares | | | $ | 6.12 | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| Class D Shares | | | | 4.50 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 13
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | Growth Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 52,133 | |
| Dividend income | | | | 1,903,093 | |
| Income from securities lending (Note 2) | | | | 40,770 | |
| | | | | | |
| Total Income | | | | 1,995,996 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 1,067,854 | |
| Fund administration fees | | | | 167,814 | |
| Distribution fees Class A | | | | 38,653 | |
| Distribution fees Class B | | | | 32,356 | |
| Distribution fees Class C | | | | 20,246 | |
| Distribution fees Class R | | | | 7 | |
| Administrative servicing fees Class A | | | | 8,898 | |
| Administrative servicing fees Class D | | | | 18,626 | |
| Administrative servicing fees Class R | | | | 1 | |
| Registration and filing fees | | | | 43,521 | |
| Professional fees | | | | 21,874 | |
| Printing fees | | | | 114,528 | |
| Trustee fees | | | | 9,514 | |
| Custodian fees | | | | 31,627 | |
| Other | | | | 4,648 | |
| | | | | | |
| Total expenses before waived expenses | | | | 1,580,167 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (23,119 | ) |
| Administrator fees voluntarily waived | | | | (657 | ) |
| | | | | | |
| Net Expenses | | | | 1,556,391 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 439,605 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (20,074,972 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (56,754,191 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (76,829,163 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (76,389,558 | ) |
| | | | | | |
The accompanying notes are an integral part of financial statements.
14 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 439,605 | | | | $ | 451,225 | |
| Net realized gains (losses) from investment transactions | | | | (20,074,972 | ) | | | | 36,033,676 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (56,754,191 | ) | | | | 13,310,430 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (76,389,558 | ) | | | | 49,795,331 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (24,178 | ) | | | | (38,227 | ) |
| Class B | | | | (683 | ) | | | | (2,922 | ) |
| Class C | | | | – | | | | | (3,889 | ) |
| Class D | | | | (339,208 | ) | | | | (522,413 | ) |
| Class R | | | | (1 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (3 | ) | | | | (4 | ) |
| Institutional Class | | | | (3 | ) | | | | (4 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (364,076 | ) | | | | (567,462 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (20,385,421 | ) | | | | (31,661,817 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (97,139,055 | ) | | | | 17,566,052 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 218,126,888 | | | | | 200,560,836 | |
| | | | | | | | | | | |
| End of period | | | $ | 120,987,833 | | | | $ | 218,126,888 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 80,189 | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 5,286,231 | | | | $ | 5,101,882 | |
| Dividends reinvested | | | | 19,422 | | | | | 33,234 | |
| Cost of shares redeemed (a) | | | | (6,938,623 | ) | | | | (3,218,972 | ) |
| | | | | | | | | | | |
| Total Class A | | | | (1,632,970 | ) | | | | 1,916,144 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 287,221 | | | | | 410,462 | |
| Dividends reinvested | | | | 633 | | | | | 2,766 | |
| Cost of shares redeemed (a) | | | | (1,118,646 | ) | | | | (1,560,370 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (830,792 | ) | | | | (1,147,142 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 768,162 | | | | | 1,895,000 | |
| Dividends reinvested | | | | – | | | | | 898 | |
| Cost of shares redeemed (a) | | | | (2,129,882 | ) | | | | (258,944 | ) |
| | | | | | | | | | | |
| Total Class C | | | | (1,361,720 | ) | | | | 1,636,954 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 15
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 5,182,808 | | | | $ | 5,100,644 | |
| Dividends reinvested | | | | 328,100 | | | | | 508,259 | |
| Cost of shares redeemed (a) | | | | (22,070,854 | ) | | | | (39,676,689 | ) |
| | | | | | | | | | | |
| Total Class D | | | | (16,559,946 | ) | | | | (34,067,786 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 75 | |
| Dividends reinvested | | | | 1 | | | | | 3 | |
| Cost of shares redeemed (a) | | | | – | | | | | (73 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 1 | | | | | 5 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | – | |
| Dividends reinvested | | | | 3 | | | | | 4 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 3 | | | | | 4 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 10 | |
| Dividends reinvested | | | | 3 | | | | | 4 | |
| Cost of shares redeemed | | | | – | | | | | (10 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 3 | | | | | 4 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (20,385,421 | ) | | | $ | (31,661,817 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | �� | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 639,018 | | | | | 617,807 | |
| Reinvested | | | | 2,550 | | | | | 3,851 | |
| Redeemed | | | | (888,876 | ) | | | | (404,793 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (247,308 | ) | | | | 216,865 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 40,064 | | | | | 56,212 | |
| Reinvested | | | | 91 | | | | | 352 | |
| Redeemed | | | | (160,261 | ) | | | | (215,658 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (120,106 | ) | | | | (159,094 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 99,100 | | | | | 246,010 | |
| Reinvested | | | | – | | | | | 114 | |
| Redeemed | | | | (308,471 | ) | | | | (33,597 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | (209,371 | ) | | | | 212,527 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
16 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Issued | | | | 645,162 | | | | | 625,648 | |
| Reinvested | | | | 42,007 | | | | | 57,561 | |
| Redeemed | | | | (2,754,933 | ) | | | | (4,886,618 | ) |
| | | | | | | | | | | |
| Total Class D Shares | | | | (2,067,764 | ) | | | | (4,203,409 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 9 | |
| Reinvested | | | | – | | | | | – | |
| Redeemed | | | | – | | | | | (9 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | – | | | | | – | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | – | |
| Reinvested | | | | – | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | – | | | | | – | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 1 | |
| Reinvested | | | | – | | | | | – | |
| Redeemed | | | | – | | | | | (1 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total change in shares: | | | | (2,644,549 | ) | | | | (3,933,111 | ) |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 17
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 9 | .14 | | | | – | | | | | (3 | .44) | | | | (3 | .44) | | | | (0 | .01) | | | | (0 | .01) | | | $ | 5 | .69 | | | | (37 | .65%) | | | $ | 9,957,021 | | | | | 1 | .12% | | | | 0 | .00% | | | | 1 | .12% | | | | 217 | .15% | | |
| Year Ended October 31, 2007 (f) | | | $ | 7 | .20 | | | | – | | | | | 1 | .96 | | | | 1 | .96 | | | | (0 | .02) | | | | (0 | .02) | | | $ | 9 | .14 | | | | 27 | .24% | | | $ | 18,240,558 | | | | | 1 | .12% | | | | (0 | .05%) | | | | 1 | .12% | | | | 262 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 6 | .69 | | | | (0 | .04) | | | | 0 | .55 | | | | 0 | .51 | | | | – | | | | | – | | | | $ | 7 | .20 | | | | 7 | .62% | | | $ | 12,815,818 | | | | | 1 | .15% | | | | (0 | .29%) | | | | 1 | .15% | | | | 284 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 6 | .08 | | | | (0 | .01) | | | | 0 | .63 | | | | 0 | .62 | | | | (0 | .01) | | | | (0 | .01) | | | $ | 6 | .69 | | | | 10 | .22% | | | $ | 29,467,129 | | | | | 1 | .34% | | | | (0 | .14%) | | | | –(g) | | | | | 281 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 5 | .92 | | | | (0 | .02) | | | | 0 | .18 | | | | 0 | .16 | | | | – | | | | | – | | | | $ | 6 | .08 | | | | 2 | .70% | | | $ | 30,641,138 | | | | | 1 | .19% | | | | (0 | .36%) | | | | –(g) | | | | | 286 | .06% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 8 | .30 | | | | (0 | .05) | | | | (3 | .11) | | | | (3 | .16) | | | | – | | | | | – | | | | $ | 5 | .14 | | | | (38 | .06%) | | | $ | 2,039,665 | | | | | 1 | .81% | | | | (0 | .67%) | | | | 1 | .81% | | | | 217 | .15% | | |
| Year Ended October 31, 2007 (f) | | | $ | 6 | .58 | | | | (0 | .05) | | | | 1 | .78 | | | | 1 | .73 | | | | (0 | .01) | | | | (0 | .01) | | | $ | 8 | .30 | | | | 26 | .23% | | | $ | 4,288,651 | | | | | 1 | .81% | | | | (0 | .72%) | | | | 1 | .82% | | | | 262 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 6 | .15 | | | | (0 | .07) | | | | 0 | .50 | | | | 0 | .43 | | | | – | | | | | – | | | | $ | 6 | .58 | | | | 6 | .99% | | | $ | 4,444,688 | | | | | 1 | .80% | | | | (0 | .94%) | | | | 1 | .80% | | | | 284 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 5 | .61 | | | | (0 | .05) | | | | 0 | .59 | | | | 0 | .54 | | | | – | | | | | – | | | | $ | 6 | .15 | | | | 9 | .63% | | | $ | 5,324,797 | | | | | 1 | .98% | | | | (0 | .78%) | | | | –(g) | | | | | 281 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 5 | .51 | | | �� | (0 | .05) | | | | 0 | .15 | | | | 0 | .10 | | | | – | | | | | – | | | | $ | 5 | .61 | | | | 1 | .81% | | | $ | 5,817,237 | | | | | 1 | .84% | | | | (1 | .00%) | | | | –(g) | | | | | 286 | .06% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 8 | .30 | | | | (0 | .05) | | | | (3 | .11) | | | | (3 | .16) | | | | – | | | | | – | | | | $ | 5 | .14 | | | | (38 | .07%) | | | $ | 623,431 | | | | | 1 | .81% | | | | (0 | .67%) | | | | 1 | .81% | | | | 217 | .15% | | |
| Year Ended October 31, 2007 (f) | | | $ | 6 | .58 | | | | (0 | .06) | | | | 1 | .79 | | | | 1 | .73 | | | | (0 | .01) | | | | (0 | .01) | | | $ | 8 | .30 | | | | 26 | .37% | | | $ | 2,743,798 | | | | | 1 | .79% | | | | (0 | .79%) | | | | 1 | .79% | | | | 262 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 6 | .16 | | | | (0 | .05) | | | | 0 | .47 | | | | 0 | .42 | | | | – | | | | | – | | | | $ | 6 | .58 | | | | 6 | .82% | | | $ | 777,448 | | | | | 1 | .77% | | | | (0 | .93%) | | | | 1 | .77% | | | | 284 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 5 | .62 | | | | (0 | .04) | | | | 0 | .58 | | | | 0 | .54 | | | | – | | | | | – | | | | $ | 6 | .16 | | | | 9 | .61% | | | $ | 549,708 | | | | | 2 | .03% | | | | (0 | .96%) | | | | –(g) | | | | | 281 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 5 | .51 | | | | (0 | .05) | | | | 0 | .16 | | | | 0 | .11 | | | | – | | | | | – | | | | $ | 5 | .62 | | | | 2 | .00% | | | $ | 247,780 | | | | | 1 | .84% | | | | (1 | .01%) | | | | –(g) | | | | | 286 | .06% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 9 | .35 | | | | 0 | .02 | | | | (3 | .51) | | | | (3 | .49) | | | | (0 | .02) | | | | (0 | .02) | | | $ | 5 | .84 | | | | (37 | .40%) | | | $ | 108,364,868 | | | | | 0 | .82% | | | | 0 | .31% | | | | 0 | .82% | | | | 217 | .15% | | |
| Year Ended October 31, 2007 (f) | | | $ | 7 | .35 | | | | 0 | .02 | | | | 2 | .00 | | | | 2 | .02 | | | | (0 | .02) | | | | (0 | .02) | | | $ | 9 | .35 | | | | 27 | .57% | | | $ | 192,849,322 | | | | | 0 | .81% | | | | 0 | .27% | | | | 0 | .82% | | | | 262 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 6 | .81 | | | | – | | | | | 0 | .54 | | | | 0 | .54 | | | | – | | | | | – | | | | $ | 7 | .35 | | | | 7 | .93% | | | $ | 182,519,298 | | | | | 0 | .80% | | | | 0 | .05% | | | | 0 | .80% | | | | 284 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 6 | .17 | | | | 0 | .01 | | | | 0 | .65 | | | | 0 | .66 | | | | (0 | .02) | | | | (0 | .02) | | | $ | 6 | .81 | | | | 10 | .74% | | | $ | 202,682,030 | | | | | 0 | .99% | | | | 0 | .21% | | | | –(g) | | | | | 281 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 6 | .00 | | | | – | | | | | 0 | .17 | | | | 0 | .17 | | | | – | | | | | – | | | | $ | 6 | .17 | | | | 2 | .87% | | | $ | 216,842,723 | | | | | 0 | .85% | | | | (0 | .01%) | | | | –(g) | | | | | 286 | .06% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) There were no fee reductions during the period.
(h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
18 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Growth Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 9 | .20 | | | | (0 | .03) | | | | (3 | .45) | | | | (3 | .48) | | | | (0 | .01) | | | | (0 | .01) | | | $ | 5 | .71 | | | | (37 | .87%) | | | $ | 996 | | | | | 1 | .48% | | | | (0 | .36%) | | | | 1 | .48% | | | | 217 | .15% | | |
| Year Ended October 31, 2007 (f) | | | $ | 7 | .27 | | | | (0 | .04) | | | | 1 | .98 | | | | 1 | .94 | | | | (0 | .01) | | | | (0 | .01) | | | $ | 9 | .20 | | | | 26 | .76% | | | $ | 1,602 | | | | | 1 | .48% | | | | (0 | .44%) | | | | 1 | .49% | | | | 262 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 6 | .77 | | | | (0 | .03) | | | | 0 | .53 | | | | 0 | .50 | | | | – | | | | | – | | | | $ | 7 | .27 | | | | 7 | .39% | | | $ | 1,265 | | | | | 1 | .28% | | | | (0 | .47%) | | | | 1 | .28% | | | | 284 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 6 | .15 | | | | (0 | .01) | | | | 0 | .64 | | | | 0 | .63 | | | | (0 | .01) | | | | (0 | .01) | | | $ | 6 | .77 | | | | 10 | .28% | | | $ | 1,177 | | | | | 1 | .29% | | | | (0 | .14%) | | | | –(g) | | | | | 281 | .51% | | |
| Year Ended October 31, 2004 | | | $ | 6 | .00 | | | | (0 | .03) | | | | 0 | .18 | | | | 0 | .15 | | | | – | | | | | – | | | | $ | 6 | .15 | | | | 2 | .50% | | | $ | 1,067 | | | | | 1 | .29% | | | | (0 | .46%) | | | | –(g) | | | | | 286 | .06% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 9 | .36 | | | | 0 | .03 | | | | (3 | .52) | | | | (3 | .49) | | | | (0 | .02) | | | | (0 | .02) | | | $ | 5 | .85 | | | | (37 | .36%) | | | $ | 924 | | | | | 0 | .74% | | | | 0 | .37% | | | | 0 | .74% | | | | 217 | .15% | | |
| Year Ended October 31, 2007 (f) | | | $ | 7 | .36 | | | | 0 | .02 | | | | 2 | .00 | | | | 2 | .02 | | | | (0 | .02) | | | | (0 | .02) | | | $ | 9 | .36 | | | | 27 | .53% | | | $ | 1,475 | | | | | 0 | .81% | | | | 0 | .22% | | | | 0 | .81% | | | | 262 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 6 | .82 | | | | – | | | | | 0 | .54 | | | | 0 | .54 | | | | – | | | | | – | | | | $ | 7 | .36 | | | | 7 | .92% | | | $ | 1,157 | | | | | 0 | .80% | | | | 0 | .02% | | | | 0 | .80% | | | | 284 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 6 | .19 | | | | – | | | | | 0 | .65 | | | | 0 | .65 | | | | (0 | .02) | | | | (0 | .02) | | | $ | 6 | .82 | | | | 10 | .55% | | | $ | 1,071 | | | | | 1 | .04% | | | | 0 | .11% | | | | –(g) | | | | | 281 | .51% | | |
| Year Ended October 31, 2004 (f) | | | $ | 6 | .01 | | | | 0 | .01 | | | | 0 | .17 | | | | 0 | .18 | | | | – | | | | | – | | | | $ | 6 | .19 | | | | 3 | .03% | | | $ | 969 | | | | | 0 | .84% | | | | 0 | .22% | | | | –(g) | | | | | 286 | .06% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 9 | .34 | | | | 0 | .03 | | | | (3 | .52) | | | | (3 | .49) | | | | (0 | .02) | | | | (0 | .02) | | | $ | 5 | .83 | | | | (37 | .44%) | | | $ | 928 | | | | | 0 | .74% | | | | 0 | .37% | | | | 0 | .74% | | | | 217 | .15% | | |
| Year Ended October 31, 2007 (f) | | | $ | 7 | .34 | | | | 0 | .02 | | | | 2 | .01 | | | | 2 | .03 | | | | (0 | .03) | | | | (0 | .03) | | | $ | 9 | .34 | | | | 27 | .61% | | | $ | 1,482 | | | | | 0 | .81% | | | | 0 | .23% | | | | 0 | .81% | | | | 262 | .81% | | |
| Year Ended October 31, 2006 | | | $ | 6 | .80 | | | | – | | | | | 0 | .54 | | | | 0 | .54 | | | | – | | | | | – | | | | $ | 7 | .34 | | | | 7 | .94% | | | $ | 1,162 | | | | | 0 | .79% | | | | 0 | .02% | | | | 0 | .79% | | | | 284 | .67% | | |
| Year Ended October 31, 2005 | | | $ | 6 | .17 | | | | – | | | | | 0 | .65 | | | | 0 | .65 | | | | (0 | .02) | | | | (0 | .02) | | | $ | 6 | .80 | | | | 10 | .59% | | | $ | 1,076 | | | | | 1 | .04% | | | | 0 | .11% | | | | –(g) | | | | | 281 | .51% | | |
| Period Ended October 31, 2004 (h) | | | $ | 6 | .34 | | | | – | | | | | (0 | .17) | | | | (0 | .17) | | | | – | | | | | – | | | | $ | 6 | .17 | | | | (2 | .68%) | | | $ | 973 | | | | | 0 | .80% | | | | (0 | .06%) | | | | –(g) | | | | | 286 | .06% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Per share calculations were performed using average shares method. |
| (g) | There were no fee reductions during the period. |
| (h) | For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 19
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Fund (Class A at NAV) registered -40.14% versus -36.10% for its benchmark, the Standard & Poor’s 500® (S&P 500) Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Large-Cap Core Funds (consisting of 893 funds as of October 31, 2008) was -36.22% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund benefited from holdings in Visa Inc., which experienced margin expansion and was somewhat insulated from the global credit market turmoil, given the transaction-oriented nature of its business. The Fund’s holdings in Union Pacific Corp. also added positive relative returns, given the company’s solid operating model and the relative robustness of freight levels during a large portion of the reporting period. Fund holding T. Rowe Price Group, Inc. also added positive returns. The company benefited from its strong business franchise in asset management as well as from the general appeal of fee-based earnings models that were not affected by an aversion to credit risk.
What areas of investment detracted from Fund performance?
Stock selection in the technology, industrials and financials sectors hurt Fund performance. Research In Motion Ltd. was the largest detractor in technology, while Deere & Co. was a significant detractor in the industrials sector. Research In Motion, a high-quality technology company with good management, saw its outlook come into question as enterprise and consumer-spending expectations were revised downward and a key new product launch faced several bottlenecks. Research In Motion’s active pursuit of entry into the consumer marketplace came at a difficult time, forcing the company to invest in growth. These headwinds were quite punishing to the stock. The sharp break in commodities prices as well as credit-related issues in its financing arm adversely affected Deere, also a high-quality franchise. In financials, MetLife, Inc. was a significant detractor from Fund performance in the context of federal government bailouts and capital injections into the banking sector, which began to create additional questions about the underlying strength and viability of insurance company balance sheets.
What is your outlook for the near term?
While we obviously are mindful of a slowing global economy and continuing near-term dislocations in global credit markets, we remain confident in the ultimate durability of both the U.S. and international economies. Global policy action and coordination by regulators and policymakers has been both unprecedented and substantial, and this is likely to have an improving effect over the longer term. Although the reporting period has been volatile and negative, the foundation has been laid for what could be the start of a recovery in 2009. It’s important to note that the dollar has been stable of late, and the commodity investment bubble appears to have burst. With policymakers around the globe moving with increased cohesion and vigor to restore confidence and prevent a deflationary spiral, signs of a recovery are beginning to emerge. In the meantime, we believe that our focus on finding good-quality businesses at attractive valuations will position the Fund appropriately to benefit from an economic recovery.
Subadviser:
Aberdeen Asset Management Inc.
Portfolio Managers:
Shahreza Yusof; Paul Atkinson; Francis Radano III, CFA; Joseph A. Cerniglia, CFA; and Jarett
Fisher, CFA
20 Annual Report 2008
| |
| Fund Performance | Nationwide Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr. | | Ratio* |
| |
| Class A | | w/o SC1 | | | -40.14% | | | | -1.26% | | | | -1.33% | | | | 0.97% | |
| | | w/SC2 | | | -43.59% | | | | -2.42% | | | | -1.91% | | | | | |
| |
| |
| Class B | | w/o SC1 | | | -40.58% | | | | -1.95% | | | | -2.06% | | | | 1.71% | |
| | | w/SC3 | | | -43.06% | | | | -2.20% | | | | -2.06% | | | | | |
| |
| |
Class C4 | | w/o SC1 | | | -40.59% | | | | -1.96% | | | | -1.83% | | | | 1.71% | |
| | | w/SC5 | | | -41.09% | | | | -1.96% | | | | -1.83% | | | | | |
| |
| |
Class D6 | | w/o SC2 | | | -40.04% | | | | -1.03% | | | | -1.11% | | | | 0.76% | |
| | | w/SC6 | | | -42.75% | | | | -1.94% | | | | -1.57% | | | | | |
| |
| |
Class R1,7 | | | | | -40.25% | | | | -1.42% | | | | -1.32% | | | | 1.41% | |
| |
| |
Institutional Class1,7 | | | | | -39.96% | | | | -0.95% | | | | -1.08% | | | | 0.71% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 2 | | A 5.75% front-end sales charge was deducted. |
| |
| 3 | | A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 4 | | These returns for periods prior to the creation of the class, include the performance of the Fund’s Class D shares. These returns were achieved prior to the creation of Class C shares (3/1/01), Institutional Service Class shares (1/2/02), Class R shares (10/1/03), and Institutional Class shares (6/29/04). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C, Institutional Service Class, Class R shares and Institutional Class shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for Class C and Class R shares would have been lower. |
| |
| 5 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 6 | | A 4.50% front-end sales charge was deducted. |
| |
| 7 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Class D shares of the Nationwide Fund, S&P 500 Index (S&P 500)(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 10/31/08. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expense, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 21
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 657.57 | | | | 4.23 | | | | 1.01 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.04 | | | | 5.16 | | | | 1.01 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 655.23 | | | | 7.19 | | | | 1.73 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.45 | | | | 8.80 | | | | 1.73 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 655.28 | | | | 7.19 | | | | 1.73 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.45 | | | | 8.79 | | | | 1.73 | |
| |
| |
| Class D Shares | | | Actual | | | | 1,000.00 | | | | 658.11 | | | | 3.19 | | | | 0.77 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.28 | | | | 3.90 | | | | 0.77 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 656.97 | | | | 5.10 | | | | 1.22 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.98 | | | | 6.24 | | | | 1.22 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 658.69 | | | | 2.49 | | | | 0.60 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.14 | | | | 3.04 | | | | 0.60 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
22 Annual Report 2008
| |
| Portfolio Summary | Nationwide Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 97.8% | |
| Repurchase Agreement | | | 2.2% | |
| Other assets in excess of liabilities | | | 0.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Oil, Gas & Consumable Fuels | | | 9.9% | |
| Pharmaceuticals | | | 7.5% | |
| Food & Staples Retailing | | | 6.8% | |
| Health Care Providers & Services | | | 4.3% | |
| Insurance | | | 3.9% | |
| Capital Markets | | | 3.8% | |
| Computers & Peripherals | | | 3.7% | |
| Aerospace & Defense | | | 3.6% | |
| Communications Equipment | | | 3.5% | |
| Commercial Banks | | | 3.0% | |
| Other | | | 50.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Exxon Mobil Corp. | | | 3.6% | |
| Intel Corp. | | | 2.6% | |
| Johnson & Johnson | | | 2.5% | |
| Procter & Gamble Co. | | | 2.0% | |
| Pfizer, Inc. | | | 1.9% | |
| MetLife, Inc. | | | 1.8% | |
| Wal-Mart Stores, Inc. | | | 1.8% | |
| Occidental Petroleum Corp. | | | 1.6% | |
| Research In Motion Ltd. | | | 1.6% | |
| CVS Caremark Corp. | | | 1.4% | |
| Other | | | 79.2% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
2008 Annual Report 23
Statement of Investments
October 31, 2008
Nationwide Fund
| | | | | | | | | |
| | | | | | | | | |
| Common Stocks 97.8% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Aerospace & Defense 3.6% |
| BE Aerospace, Inc.* | | | 489,769 | | | $ | 6,303,327 | |
| Boeing Co. | | | 53,581 | | | | 2,800,679 | |
| Honeywell International, Inc. | | | 49,200 | | | | 1,498,140 | |
| L-3 Communications Holdings, Inc. | | | 40,100 | | | | 3,254,917 | |
| Lockheed Martin Corp. | | | 19,600 | | | | 1,666,980 | |
| Northrop Grumman Corp. | | | 75,158 | | | | 3,524,159 | |
| United Technologies Corp. | | | 118,700 | | | | 6,523,752 | |
| | | | | | | | | |
| | | | | | | | 25,571,954 | |
| | | | | | | | | |
| |
| |
Air Freight & Logistics 0.3% |
| FedEx Corp. | | | 31,900 | | | | 2,085,303 | |
| | | | | | | | | |
| |
| |
Auto Components 1.5% |
| Autoliv, Inc. | | | 58,400 | | | | 1,247,424 | |
| BorgWarner, Inc. | | | 98,460 | | | | 2,212,396 | |
| Goodyear Tire & Rubber Co. (The)* | | | 529,980 | | | | 4,727,422 | |
| Johnson Controls, Inc. | | | 136,300 | | | | 2,416,599 | |
| WABCO Holdings, Inc. | | | 1 | | | | 18 | |
| | | | | | | | | |
| | | | | | | | 10,603,859 | |
| | | | | | | | | |
| |
| |
Beverages 1.5% |
| Molson Coors Brewing Co., Class B | | | 239,696 | | | | 8,955,043 | |
| Pepsi Bottling Group, Inc. | | | 78,000 | | | | 1,803,360 | |
| | | | | | | | | |
| | | | | | | | 10,758,403 | |
| | | | | | | | | |
| |
| |
Capital Markets 3.8% |
| Bank of New York Mellon Corp. (The) | | | 108,700 | | | | 3,543,620 | |
| Goldman Sachs Group, Inc. (The) | | | 75,210 | | | | 6,956,925 | |
| Investment Technology Group, Inc.* | | | 79,500 | | | | 1,622,595 | |
| Janus Capital Group, Inc. | | | 128,700 | | | | 1,510,938 | |
| Northern Trust Corp. | | | 149,519 | | | | 8,419,415 | |
| State Street Corp. | | | 98,600 | | | | 4,274,310 | |
| | | | | | | | | |
| | | | | | | | 26,327,803 | |
| | | | | | | | | |
| |
| |
Chemicals 2.9% |
| Air Products & Chemicals, Inc. | | | 159,900 | | | | 9,294,987 | |
| Dow Chemical Co. (The) | | | 358,600 | | | | 9,563,862 | |
| Lubrizol Corp. | | | 42,223 | | | | 1,586,740 | |
| | | | | | | | | |
| | | | | | | | 20,445,589 | |
| | | | | | | | | |
| |
| |
Commercial Banks 3.0% |
| Fifth Third Bancorp | | | 417,037 | | | | 4,524,851 | |
| KeyCorp | | | 384,498 | | | | 4,702,411 | |
| PNC Financial Services Group, Inc. | | | 52,700 | | | | 3,513,509 | |
| Wells Fargo & Co. | | | 73,500 | | | | 2,502,675 | |
| Zions Bancorp | | | 161,201 | | | | 6,143,370 | |
| | | | | | | | | |
| | | | | | | | 21,386,816 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 0.6% |
| Avery Dennison Corp. | | | 46,300 | | | | 1,621,426 | |
| Waste Management, Inc. | | | 87,600 | | | | 2,735,748 | |
| | | | | | | | | |
| | | | | | | | 4,357,174 | |
| | | | | | | | | |
| |
| |
Communications Equipment 3.5% |
| Cisco Systems, Inc.* | | | 524,836 | | | | 9,326,336 | |
| Corning, Inc. | | | 142,600 | | | | 1,544,358 | |
| QUALCOMM, Inc. | | | 80,000 | | | | 3,060,800 | |
| Research In Motion Ltd.* | | | 216,900 | | | | 10,938,267 | |
| | | | | | | | | |
| | | | | | | | 24,869,761 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 3.7% |
| Apple, Inc.* | | | 37,400 | | | | 4,023,866 | |
| Dell, Inc.* | | | 144,100 | | | | 1,750,815 | |
| Hewlett-Packard Co. | | | 157,700 | | | | 6,036,756 | |
| International Business Machines Corp. | | | 71,911 | | | | 6,685,566 | |
| NCR Corp.* | | | 425,198 | | | | 7,772,619 | |
| | | | | | | | | |
| | | | | | | | 26,269,622 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 0.2% |
| Fluor Corp. | | | 30,600 | | | | 1,221,858 | |
| | | | | | | | | |
| |
| |
Consumer Finance 1.1% |
| American Express Co. | | | 83,400 | | | | 2,293,500 | |
| Capital One Financial Corp. | | | 138,900 | | | | 5,433,768 | |
| | | | | | | | | |
| | | | | | | | 7,727,268 | |
| | | | | | | | | |
| |
| |
Containers & Packaging 0.5% |
| Greif, Inc., Class A | | | 26,200 | | | | 1,063,196 | |
| Pactiv Corp.* | | | 112,430 | | | | 2,648,851 | |
| | | | | | | | | |
| | | | | | | | 3,712,047 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 2.8% |
| Bank of America Corp. | | | 253,084 | | | | 6,117,040 | |
| Citigroup, Inc. | | | 232,677 | | | | 3,176,041 | |
| JPMorgan Chase & Co. | | | 210,130 | | | | 8,667,863 | |
| NYSE Euronext | | | 53,240 | | | | 1,606,783 | |
| | | | | | | | | |
| | | | | | | | 19,567,727 | |
| | | | | | | | | |
| |
| |
Diversified Telecommunication Services 2.7% |
| AT&T, Inc. | | | 303,647 | | | | 8,128,630 | |
| CenturyTel, Inc. | | | 109,000 | | | | 2,736,990 | |
| Embarq Corp. | | | 60,700 | | | | 1,821,000 | |
| Verizon Communications, Inc. | | | 212,800 | | | | 6,313,776 | |
| | | | | | | | | |
| | | | | | | | 19,000,396 | |
| | | | | | | | | |
24 Annual Report 2008
| | | | | | | | | |
| Common Stocks (continued) |
| |
Diversified Telecommunication Services (continued) |
Electric Utilities 1.8% |
| Great Plains Energy, Inc. | | | 147,700 | | | $ | 2,871,288 | |
| Northeast Utilities | | | 143,260 | | | | 3,231,946 | |
| PPL Corp. | | | 134,230 | | | | 4,405,428 | |
| Southern Co. | | | 70,500 | | | | 2,420,970 | |
| | | | | | | | | |
| | | | | | | | 12,929,632 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 0.3% |
| Emerson Electric Co. | | | 57,030 | | | | 1,866,592 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 1.1% |
| Avnet, Inc.* | | | 380,285 | | | | 6,365,971 | |
| Mettler-Toledo International, Inc.* | | | 21,447 | | | | 1,641,553 | |
| | | | | | | | | |
| | | | | | | | 8,007,524 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 2.0% |
| Schlumberger Ltd. | | | 172,800 | | | | 8,925,120 | |
| Transocean, Inc. | | | 58,500 | | | | 4,816,305 | |
| | | | | | | | | |
| | | | | | | | 13,741,425 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 6.8% |
| Costco Wholesale Corp. | | | 121,400 | | | | 6,921,014 | |
| CVS Caremark Corp. | | | 315,560 | | | | 9,671,914 | |
| Kroger Co. (The) | | | 263,227 | | | | 7,228,213 | |
| Safeway, Inc. | | | 93,400 | | | | 1,986,618 | |
| SYSCO Corp. | | | 355,700 | | | | 9,319,340 | |
| Wal-Mart Stores, Inc. | | | 219,737 | | | | 12,263,522 | |
| | | | | | | | | |
| | | | | | | | 47,390,621 | |
| | | | | | | | | |
| |
| |
Food Products 2.0% |
| Archer-Daniels-Midland Co. | | | 168,013 | | | | 3,482,909 | |
| Kellogg Co. | | | 46,507 | | | | 2,344,883 | |
| Kraft Foods, Inc., Class A | | | 213,100 | | | | 6,209,734 | |
| Smithfield Foods, Inc.* | | | 170,930 | | | | 1,798,184 | |
| | | | | | | | | |
| | | | | | | | 13,835,710 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 1.6% |
| DENTSPLY International, Inc. | | | 176,146 | | | | 5,351,315 | |
| St. Jude Medical, Inc.* | | | 164,016 | | | | 6,237,529 | |
| | | | | | | | | |
| | | | | | | | 11,588,844 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 4.3% |
| Aetna, Inc. | | | 134,357 | | | | 3,341,459 | |
| AmerisourceBergen Corp. | | | 192,417 | | | | 6,016,879 | |
| Cardinal Health, Inc. | | | 63,300 | | | | 2,418,060 | |
| Express Scripts, Inc.* | | | 37,100 | | | | 2,248,631 | |
| McKesson Corp. | | | 216,388 | | | | 7,960,914 | |
| Medco Health Solutions, Inc.* | | | 65,600 | | | | 2,489,520 | |
| Quest Diagnostics, Inc. | | | 46,900 | | | | 2,194,920 | |
| UnitedHealth Group, Inc. | | | 93,431 | | | | 2,217,118 | |
| Universal Health Services, Inc., Class B | | | 14,000 | | | | 588,560 | |
| WellPoint, Inc.* | | | 12,000 | | | | 466,440 | |
| | | | | | | | | |
| | | | | | | | 29,942,501 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 0.9% |
| McDonald’s Corp. | | | 47,100 | | | | 2,728,503 | |
| Yum! Brands, Inc. | | | 114,500 | | | | 3,321,645 | |
| | | | | | | | | |
| | | | | | | | 6,050,148 | |
| | | | | | | | | |
| |
| |
Household Products 2.3% |
| Colgate-Palmolive Co. | | | 33,720 | | | | 2,116,267 | |
| Procter & Gamble Co. | | | 221,610 | | | | 14,302,710 | |
| | | | | | | | | |
| | | | | | | | 16,418,977 | |
| | | | | | | | | |
| |
| |
Industrial Conglomerates 0.9% |
| 3M Co. | | | 49,300 | | | | 3,169,990 | |
| General Electric Co. | | | 152,550 | | | | 2,976,251 | |
| | | | | | | | | |
| | | | | | | | 6,146,241 | |
| | | | | | | | | |
| |
| |
Information Technology Services 0.7% |
| Cognizant Technology Solutions Corp., Class A* | | | 223,800 | | | | 4,296,960 | |
| Total System Services, Inc. | | | 50,000 | | | | 687,000 | |
| | | | | | | | | |
| | | | | | | | 4,983,960 | |
| | | | | | | | | |
| |
| |
Insurance 3.9% |
| Aflac, Inc. | | | 49,600 | | | | 2,196,288 | |
| Assurant, Inc. | | | 113,088 | | | | 2,881,482 | |
| Chubb Corp. | | | 50,061 | | | | 2,594,161 | |
| MetLife, Inc. | | | 386,575 | | | | 12,842,022 | |
| PartnerRe Ltd. | | | 61,970 | | | | 4,194,749 | |
| Reinsurance Group of America, Inc., Class B * | | | 63,340 | | | | 2,346,114 | |
| | | | | | | | | |
| | | | | | | | 27,054,816 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 0.4% |
| Google, Inc., Class A* | | | 7,350 | | | | 2,641,296 | |
| | | | | | | | | |
| |
| |
Leisure Equipment & Products 0.2% |
| Eastman Kodak Co. | | | 134,400 | | | | 1,233,792 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 0.7% |
| Thermo Fisher Scientific, Inc.* | | | 117,997 | | | | 4,790,678 | |
| | | | | | | | | |
| |
| |
Machinery 2.6% |
| Deere & Co. | | | 150,067 | | | | 5,786,583 | |
| Eaton Corp. | | | 47,700 | | | | 2,127,420 | |
| Harsco Corp. | | | 56,400 | | | | 1,334,988 | |
| Ingersoll-Rand Co. Ltd., Class A | | | 113,046 | | | | 2,085,699 | |
| PACCAR, Inc. | | | 103,582 | | | | 3,028,738 | |
| Parker Hannifin Corp. | | | 91,900 | | | | 3,562,963 | |
| | | | | | | | | |
| | | | | | | | 17,926,391 | |
| | | | | | | | | |
| | | | | | | | | |
2008 Annual Report 25
Statement of Investments (Continued)
October 31, 2008
Nationwide Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Media 2.1% |
| Citadel Broadcasting Co.* | | | 2 | | | $ | 1 | |
| News Corp., Class A | | | 216,600 | | | | 2,304,624 | |
| Omnicom Group, Inc. | | | 58,800 | | | | 1,736,952 | |
| Regal Entertainment Group, Class A | | | 290,021 | | | | 3,723,870 | |
| Time Warner, Inc. | | | 265,960 | | | | 2,683,536 | |
| Walt Disney Co. (The) | | | 157,330 | | | | 4,074,847 | |
| | | | | | | | | |
| | | | | | | | 14,523,830 | |
| | | | | | | | | |
| |
| |
Metals & Mining 0.7% |
| Alcoa, Inc. | | | 88,900 | | | | 1,023,239 | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 68,559 | | | | 1,995,067 | |
| Nucor Corp. | | | 47,900 | | | | 1,940,429 | |
| | | | | | | | | |
| | | | | | | | 4,958,735 | |
| | | | | | | | | |
| |
| |
Multi-Utility 0.7% |
| CenterPoint Energy, Inc. | | | 147,800 | | | | 1,702,656 | |
| Integrys Energy Group, Inc. | | | 70,800 | | | | 3,370,080 | |
| | | | | | | | | |
| | | | | | | | 5,072,736 | |
| | | | | | | | | |
| |
| |
Multiline Retail 0.4% |
| Macy’s, Inc. | | | 224,300 | | | | 2,756,647 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 9.9% |
| Apache Corp. | | | 77,900 | | | | 6,413,507 | |
| Chevron Corp. | | | 124,082 | | | | 9,256,517 | |
| ConocoPhillips | | | 84,886 | | | | 4,415,770 | |
| EOG Resources, Inc. | | | 61,500 | | | | 4,976,580 | |
| Exxon Mobil Corp. | | | 342,733 | | | | 25,403,370 | |
| Hess Corp. | | | 50,840 | | | | 3,061,076 | |
| Marathon Oil Corp. | | | 86,628 | | | | 2,520,875 | |
| Occidental Petroleum Corp. | | | 200,608 | | | | 11,141,768 | |
| Williams Cos., Inc. | | | 116,100 | | | | 2,434,617 | |
| | | | | | | | | |
| | | | | | | | 69,624,080 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 7.5% |
| Abbott Laboratories | | | 92,494 | | | | 5,101,044 | |
| Allergan, Inc. | | | 103,866 | | | | 4,120,364 | |
| Bristol-Myers Squibb Co. | | | 406,900 | | | | 8,361,795 | |
| Johnson & Johnson | | | 283,310 | | | | 17,378,236 | |
| Merck & Co., Inc. | | | 79,700 | | | | 2,466,715 | |
| Pfizer, Inc. | | | 765,242 | | | | 13,552,436 | |
| Wyeth | | | 47,900 | | | | 1,541,422 | |
| | | | | | | | | |
| | | | | | | | 52,522,012 | |
| | | | | | | | | |
| |
| |
Road & Rail 2.9% |
| Burlington Northern Santa Fe Corp. | | | 71,785 | | | | 6,393,172 | |
| Canadian National Railway Co. | | | 61,000 | | | | 2,638,860 | |
| CSX Corp. | | | 42,900 | | | | 1,961,388 | |
| Norfolk Southern Corp. | | | 35,692 | | | | 2,139,378 | |
| Ryder System, Inc. | | | 54,200 | | | | 2,147,404 | |
| Union Pacific Corp. | | | 71,410 | | | | 4,768,046 | |
| | | | | | | | | |
| | | | | | | | 20,048,248 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 2.6% |
| Intel Corp. | | | 1,143,715 | | | | 18,299,440 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR – TW | | | 1 | | | | 8 | |
| | | | | | | | | |
| | | | | | | | 18,299,448 | |
| | | | | | | | | |
| |
| |
Software 1.8% |
| Microsoft Corp. | | | 370,100 | | | | 8,264,333 | |
| Oracle Corp.* | | | 231,400 | | | | 4,232,306 | |
| | | | | | | | | |
| | | | | | | | 12,496,639 | |
| | | | | | | | | |
| |
| |
Specialty Retail 2.2% |
| American Eagle Outfitters, Inc. | | | 144,900 | | | | 1,611,288 | |
| Best Buy Co., Inc. | | | 56,500 | | | | 1,514,765 | |
| GameStop Corp., Class A* | | | 64,408 | | | | 1,764,135 | |
| Ltd Brands, Inc. | | | 279,100 | | | | 3,343,618 | |
| Ross Stores, Inc. | | | 66,500 | | | | 2,173,885 | |
| TJX Cos., Inc. | | | 192,500 | | | | 5,151,300 | |
| | | | | | | | | |
| | | | | | | | 15,558,991 | |
| | | | | | | | | |
| |
| |
Textiles, Apparel & Luxury Goods 0.7% |
| V.F. Corp. | | | 93,540 | | | | 5,154,054 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 0.5% |
| Hudson City Bancorp, Inc. | | | 173,000 | | | | 3,254,130 | |
| | | | | | | | | |
| |
| |
Tobacco 1.6% |
| Altria Group, Inc. | | | 188,800 | | | | 3,623,072 | |
| Lorillard, Inc. | | | 30,500 | | | | 2,008,730 | |
| Philip Morris International, Inc. | | | 136,000 | | | | 5,911,920 | |
| | | | | | | | | |
| | | | | | | | 11,543,722 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 0.0% |
| Vodafone Group PLC ADR – GB | | | 1 | | | | 19 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 686,268,019 | |
| | | | | |
| | | | | | | | | |
26 Annual Report 2008
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 2.2% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $15,226,688, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $15,531,118 | | $ | 15,226,586 | | | $ | 15,226,586 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $875,129,104) (a) — 100.0% | | | 701,494,605 | |
Other assets in excess of liabilities — 0.0% | | | | | | | 301,566 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 701,796,171 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| ADR | | American Depositary Receipt |
| |
| GB | | United Kingdom |
| |
| TW | | Taiwan |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 27
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $859,902,518) | | | $ | 686,268,019 | |
| Repurchase agreements, at value and cost | | | | 15,226,586 | |
| | | | | | |
| Total Investments | | | | 701,494,605 | |
| | | | | | |
| Cash | | | | 49 | |
| Interest and dividends receivable | | | | 1,166,394 | |
| Receivable for capital shares issued | | | | 159,439 | |
| Receivable for investments sold | | | | 119,684,460 | |
| Prepaid expenses and other assets | | | | 52,339 | |
| | | | | | |
| Total Assets | | | | 822,557,286 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 119,113,962 | |
| Payable for capital shares redeemed | | | | 752,861 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 357,838 | |
| Fund administration fees | | | | 73,537 | |
| Distribution fees | | | | 20,467 | |
| Administrative servicing fees | | | | 238,922 | |
| Trustee fees | | | | 2,783 | |
| Compliance program costs (Note 3) | | | | 4,109 | |
| Custodian fees | | | | 4,389 | |
| Other | | | | 192,247 | |
| | | | | | |
| Total Liabilities | | | | 120,761,115 | |
| | | | | | |
Net Assets | | | $ | 701,796,171 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 1,138,468,990 | |
| Accumulated undistributed net investment income | | | | 3,511,352 | |
| Accumulated net realized losses from investment transactions | | | | (266,549,672 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (173,634,499 | ) |
| | | | | | |
Net Assets | | | $ | 701,796,171 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 62,064,995 | |
| Class B Shares | | | | 7,336,269 | |
| Class C Shares | | | | 441,929 | |
| Class D Shares | | | | 631,946,652 | |
| Class R Shares | | | | 5,430 | |
| Institutional Class Shares | | | | 896 | |
| | | | | | |
| Total | | | $ | 701,796,171 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
28 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 5,807,328 | |
| Class B Shares | | | | 719,330 | |
| Class C Shares | | | | 43,413 | |
| Class D Shares | | | | 59,939,291 | |
| Class R Shares | | | | 514 | |
| Institutional Class Shares | | | | 85 | |
| | | | | | |
| Total | | | | 66,509,961 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 10.69 | |
| Class B Shares (a) | | | $ | 10.20 | |
| Class C Shares (b) | | | $ | 10.18 | |
| Class D Shares | | | $ | 10.54 | |
| Class R Shares | | | $ | 10.57 | (c) |
| Institutional Class Shares | | | $ | 10.56 | (c) |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 11.34 | |
| Class D Shares | | | $ | 11.04 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| Class D Shares | | | | 4.50 | % |
| | | | | | |
| | |
| (a) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (b) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (c) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 29
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 628,590 | |
| Dividend income | | | | 22,385,868 | |
| Income from securities lending (Note 2) | | | | 32,891 | |
| | | | | | |
| Total Income | | | | 23,047,349 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 6,226,932 | |
| Fund administration fees | | | | 1,027,015 | |
| Distribution fees Class A | | | | 247,642 | |
| Distribution fees Class B | | | | 127,045 | |
| Distribution fees Class C | | | | 6,596 | |
| Distribution fees Class R | | | | 47 | |
| Administrative servicing fees Class A | | | | 30,136 | |
| Administrative servicing fees Class D | | | | 609,670 | |
| Registration and filing fees | | | | 5,889 | |
| Professional fees | | | | 155,065 | |
| Printing fees | | | | 226,844 | |
| Trustee fees | | | | 57,373 | |
| Custodian fees | | | | 129,594 | |
| Other | | | | 35,882 | |
| | | | | | |
| Total expenses before waived expenses | | | | 8,885,730 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (67,028 | ) |
| Administrator fees voluntarily waived | | | | (73 | ) |
| | | | | | |
| Net Expenses | | | | 8,818,629 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 14,228,720 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (250,578,165 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (255,356,694 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (505,934,859 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (491,706,139 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
30 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 14,228,720 | | | | $ | 13,581,109 | |
| Net realized gains (losses) from investment transactions | | | | (250,578,165 | ) | | | | 202,844,034 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (255,356,694 | ) | | | | (20,170,268 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (491,706,139 | ) | | | | 196,254,875 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (850,752 | ) | | | | (1,016,241 | ) |
| Class B | | | | (25,191 | ) | | | | (24,434 | ) |
| Class C | | | | (1,249 | ) | | | | (1,060 | ) |
| Class D | | | | (10,468,230 | ) | | | | (12,268,152 | ) |
| Class R | | | | (59 | ) | | | | (48 | ) |
| Institutional Class | | | | (15 | ) | | | | (15 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (18,804,898 | ) | | | | (12,712,838 | ) |
| Class B | | | | (2,650,192 | ) | | | | (2,146,971 | ) |
| Class C | | | | (131,964 | ) | | | | (85,253 | ) |
| Class D | | | | (180,715,061 | ) | | | | (122,380,347 | ) |
| Class R | | | | (3,453 | ) | | | | (153 | ) |
| Institutional Class | | | | (231 | ) | | | | (140 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (213,651,295 | ) | | | | (150,635,652 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 95,420,536 | | | | | (21,189,211 | ) |
| | | | | | | | | | | |
| Change in net assets | | | | (609,936,898 | ) | | | | 24,430,012 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,311,733,069 | | | | | 1,287,303,057 | |
| | | | | | | | | | | |
| End of period | | | $ | 701,796,171 | | | | $ | 1,311,733,069 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 3,511,352 | | | | $ | 464,671 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 7,010,979 | | | | $ | 13,183,844 | |
| Dividends reinvested | | | | 17,083,583 | | | | | 11,323,137 | |
| Cost of shares redeemed (a) | | | | (21,957,162 | ) | | | | (22,205,788 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 2,137,400 | | | | | 2,301,193 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 1,160,482 | | | | | 1,250,817 | |
| Dividends reinvested | | | | 2,647,950 | | | | | 2,159,733 | |
| Cost of shares redeemed (a) | | | | (5,208,296 | ) | | | | (7,211,022 | ) |
| | | | | | | | | | | |
| Total Class B | | | | (1,399,864 | ) | | | | (3,800,472 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 142,838 | | | | | 123,923 | |
| Dividends reinvested | | | | 68,668 | | | | | 49,986 | |
| Cost of shares redeemed (a) | | | | (138,977 | ) | | | | (253,406 | ) |
| | | | | | | | | | | |
| Total Class C | | | | 72,529 | | | | | (79,497 | ) |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 31
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 46,862,714 | | | | $ | 31,401,670 | |
| Dividends reinvested | | | | 182,248,043 | | | | | 127,824,105 | |
| Cost of shares redeemed (a) | | | | (134,492,011 | ) | | | | (168,253,592 | ) |
| | | | | | | | | | | |
| Total Class D | | | | 94,618,746 | | | | | (9,027,817 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 9,748 | | | | | 20,184 | |
| Dividends reinvested | | | | 270 | | | | | 160 | |
| Cost of shares redeemed | | | | (18,538 | ) | | | | (148 | ) |
| | | | | | | | | | | |
| Total Class R | | | | (8,520 | ) | | | | 20,196 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 744,789 | |
| Dividends reinvested | | | | 245 | | | | | 156 | |
| Cost of shares redeemed | | | | – | | | | | (11,347,759 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 245 | | | | | (10,602,814 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 95,420,536 | | | | $ | (21,189,211 | ) |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 444,486 | | | | | 648,476 | |
| Reinvested | | | | 987,920 | | | | | 586,328 | |
| Redeemed | | | | (1,446,262 | ) | | | | (1,096,792 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | (13,856 | ) | | | | 138,012 | |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | 74,662 | | | | | 64,369 | |
| Reinvested | | | | 159,723 | | | | | 116,429 | |
| Redeemed | | | | (346,246 | ) | | | | (369,571 | ) |
| | | | | | | | | | | |
| Total Class B Shares | | | | (111,861 | ) | | | | (188,773 | ) |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 8,778 | | | | | 6,493 | |
| Reinvested | | | | 4,150 | | | | | 2,697 | |
| Redeemed | | | | (9,287 | ) | | | | (12,651 | ) |
| | | | | | | | | | | |
| Total Class C Shares | | | | 3,641 | | | | | (3,461 | ) |
| | | | | | | | | | | |
Class D Shares | | | | | | | | | | |
| Issued | | | | 2,800,775 | | | | | 1,575,721 | |
| Reinvested | | | | 10,698,113 | | | | | 6,691,463 | |
| Redeemed | | | | (8,816,267 | ) | | | | (8,388,888 | ) |
| | | | | | | | | | | |
| Total Class D Shares | | | | 4,682,621 | | | | | (121,704 | ) |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 616 | | | | | 987 | |
| Reinvested | | | | 16 | | | | | 8 | |
| Redeemed | | | | (1,174 | ) | | | | (7 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | (542 | ) | | | | 988 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
The accompanying notes are an integral part of these financial statements.
32 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 35,694 | |
| Reinvested | | | | 14 | | | | | 8 | |
| Redeemed | | | | – | | | | | (533,299 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 14 | | | | | (497,597 | ) |
| | | | | | | | | | | |
| Total change in shares: | | | | 4,560,017 | | | | | (672,535 | ) |
| | | | | | | | | | | |
| | |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 33
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 21 | .40 | | | | 0 | .18 | | | | (7 | .48) | | | | (7 | .30) | | | | (0 | .14) | | | | (3 | .27) | | | | (3 | .41) | | | $ | 10 | .69 | | | | (40 | .14%) | | | $ | 62,064,995 | | | | | 1 | .01% | | | | 1 | .14% | | | | 1 | .01% | | | | 353 | .47% | | |
| Year Ended October 31, 2007 (f) | | | $ | 20 | .75 | | | | 0 | .18 | | | | 2 | .89 | | | | 3 | .07 | | | | (0 | .17) | | | | (2 | .25) | | | | (2 | .42) | | | $ | 21 | .40 | | | | 16 | .17% | | | $ | 124,572,619 | | | | | 0 | .97% | | | | 0 | .88% | | | | 0 | .97% | | | | 373 | .30% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .94 | | | | 0 | .18 | | | | 2 | .61 | | | | 2 | .79 | | | | (0 | .17) | | | | (2 | .81) | | | | (2 | .98) | | | $ | 20 | .75 | | | | 14 | .65% | | | $ | 117,938,002 | | | | | 1 | .04% | | | | 0 | .91% | | | | 1 | .04% | | | | 245 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 18 | .96 | | | | 0 | .38 | | | | 1 | .86 | | | | 2 | .24 | | | | (0 | .18) | | | | (0 | .08) | | | | (0 | .26) | | | $ | 20 | .94 | | | | 11 | .88% | | | $ | 119,614,916 | | | | | 1 | .14% | | | | 1 | .64% | | | | –(g) | | | | | 145 | .66% | | |
| Year Ended October 31, 2004 | | | $ | 18 | .08 | | | | 0 | .07 | | | | 0 | .87 | | | | 0 | .94 | | | | (0 | .06) | | | | – | | | | | (0 | .06) | | | $ | 18 | .96 | | | | 5 | .22% | | | $ | 447,883,716 | | | | | 1 | .10% | | | | 0 | .35% | | | | –(g) | | | | | 144 | .61% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 20 | .59 | | | | 0 | .07 | | | | (7 | .16) | | | | (7 | .09) | | | | (0 | .03) | | | | (3 | .27) | | | | (3 | .30) | | | $ | 10 | .20 | | | | (40 | .58%) | | | $ | 7,336,269 | | | | | 1 | .73% | | | | 0 | .42% | | | | 1 | .73% | | | | 353 | .47% | | |
| Year Ended October 31, 2007 (f) | | | $ | 20 | .05 | | | | 0 | .03 | | | | 2 | .79 | | | | 2 | .82 | | | | (0 | .03) | | | | (2 | .25) | | | | (2 | .28) | | | $ | 20 | .59 | | | | 15 | .32% | | | $ | 17,114,110 | | | | | 1 | .71% | | | | 0 | .14% | | | | 1 | .72% | | | | 373 | .30% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .32 | | | | 0 | .05 | | | | 2 | .52 | | | | 2 | .57 | | | | (0 | .03) | | | | (2 | .81) | | | | (2 | .84) | | | $ | 20 | .05 | | | | 13 | .83% | | | $ | 20,454,791 | | | | | 1 | .76% | | | | 0 | .21% | | | | 1 | .76% | | | | 245 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 18 | .46 | | | | 0 | .03 | | | | 2 | .01 | | | | 2 | .04 | | | | (0 | .10) | | | | (0 | .08) | | | | (0 | .18) | | | $ | 20 | .32 | | | | 11 | .09% | | | $ | 29,959,872 | | | | | 1 | .79% | | | | 0 | .25% | | | | –(g) | | | | | 145 | .66% | | |
| Year Ended October 31, 2004 | | | $ | 17 | .65 | | | | (0 | .05) | | | | 0 | .86 | | | | 0 | .81 | | | | – | | | | | – | | | | | – | | | | $ | 18 | .46 | | | | 4 | .59% | | | $ | 35,072,931 | | | | | 1 | .76% | | | | (0 | .30%) | | | | –(g) | | | | | 144 | .61% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) There were no fee reductions during the period.
(h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
34 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 20 | .56 | | | | 0 | .07 | | | | (7 | .15) | | | | (7 | .08) | | | | (0 | .03) | | | | (3 | .27) | | | | (3 | .30) | | | $ | 10 | .18 | | | | (40 | .59%) | | | $ | 441,929 | | | | | 1 | .73% | | | | 0 | .43% | | | | 1 | .73% | | | | 353 | .47% | | |
| Year Ended October 31, 2007 (f) | | | $ | 20 | .03 | | | | 0 | .03 | | | | 2 | .78 | | | | 2 | .81 | | | | (0 | .03) | | | | (2 | .25) | | | | (2 | .28) | | | $ | 20 | .56 | | | | 15 | .27% | | | $ | 817,742 | | | | | 1 | .71% | | | | 0 | .15% | | | | 1 | .72% | | | | 373 | .30% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .30 | | | | 0 | .04 | | | | 2 | .53 | | | | 2 | .57 | | | | (0 | .03) | | | | (2 | .81) | | | | (2 | .84) | | | $ | 20 | .03 | | | | 13 | .89% | | | $ | 865,856 | | | | | 1 | .75% | | | | 0 | .20% | | | | 1 | .75% | | | | 245 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 18 | .45 | | | | 0 | .04 | | | | 1 | .99 | | | | 2 | .03 | | | | (0 | .10) | | | | (0 | .08) | | | | (0 | .18) | | | $ | 20 | .30 | | | | 11 | .04% | | | $ | 965,423 | | | | | 1 | .79% | | | | 0 | .27% | | | | –(g) | | | | | 145 | .66% | | |
| Year Ended October 31, 2004 | | | $ | 17 | .65 | | | | (0 | .06) | | | | 0 | .87 | | | | 0 | .81 | | | | (0 | .01) | | | | – | | | | | (0 | .01) | | | $ | 18 | .45 | | | | 4 | .58% | | | $ | 989,408 | | | | | 1 | .76% | | | | (0 | .32%) | | | | –(g) | | | | | 144 | .61% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 21 | .16 | | | | 0 | .21 | | | | (7 | .39) | | | | (7 | .18) | | | | (0 | .17) | | | | (3 | .27) | | | | (3 | .44) | | | $ | 10 | .54 | | | | (40 | .04%) | | | $ | 631,946,652 | | | | | 0 | .79% | | | | 1 | .36% | | | | 0 | .79% | | | | 353 | .47% | | |
| Year Ended October 31, 2007 (f) | | | $ | 20 | .55 | | | | 0 | .22 | | | | 2 | .86 | | | | 3 | .08 | | | | (0 | .22) | | | | (2 | .25) | | | | (2 | .47) | | | $ | 21 | .16 | | | | 16 | .38% | | | $ | 1,169,204,760 | | | | | 0 | .76% | | | | 1 | .08% | | | | 0 | .76% | | | | 373 | .30% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .76 | | | | 0 | .23 | | | | 2 | .59 | | | | 2 | .82 | | | | (0 | .22) | | | | (2 | .81) | | | | (3 | .03) | | | $ | 20 | .55 | | | | 14 | .95% | | | $ | 1,137,817,209 | | | | | 0 | .80% | | | | 1 | .14% | | | | 0 | .80% | | | | 245 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 18 | .83 | | | | 0 | .23 | | | | 2 | .04 | | | | 2 | .27 | | | | (0 | .26) | | | | (0 | .08) | | | | (0 | .34) | | | $ | 20 | .76 | | | | 12 | .11% | | | $ | 1,132,192,238 | | | | | 0 | .85% | | | | 1 | .17% | | | | –(g) | | | | | 145 | .66% | | |
| Year Ended October 31, 2004 | | | $ | 17 | .96 | | | | 0 | .12 | | | | 0 | .88 | | | | 1 | .00 | | | | (0 | .13) | | | | – | | | | | (0 | .13) | | | $ | 18 | .83 | | | | 5 | .59% | | | $ | 1,161,933,951 | | | | | 0 | .82% | | | | 0 | .64% | | | | –(g) | | | | | 144 | .61% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) There were no fee reductions during the period.
(h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 35
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 21 | .16 | | | | 0 | .15 | | | | (7 | .39) | | | | (7 | .24) | | | | (0 | .08) | | | | (3 | .27) | | | | (3 | .35) | | | $ | 10 | .57 | | | | (40 | .25%) | | | $ | 5,430 | | | | | 1 | .22% | | | | 0 | .93% | | | | 1 | .22% | | | | 353 | .47% | | |
| Year Ended October 31, 2007 (f) | | | $ | 20 | .58 | | | | 0 | .10 | | | | 2 | .82 | | | | 2 | .92 | | | | (0 | .09) | | | | (2 | .25) | | | | (2 | .34) | | | $ | 21 | .16 | | | | 15 | .45% | | | $ | 22,345 | | | | | 1 | .26% | | | | 0 | .50% | | | | 1 | .26% | | | | 373 | .30% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .78 | | | | 0 | .18 | | | | 2 | .60 | | | | 2 | .78 | | | | (0 | .17) | | | | (2 | .81) | | | | (2 | .98) | | | $ | 20 | .58 | | | | 14 | .71% | | | $ | 1,398 | | | | | 0 | .96% | | | | 0 | .93% | | | | 0 | .96% | | | | 245 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 18 | .83 | | | | 0 | .19 | | | | 2 | .05 | | | | 2 | .24 | | | | (0 | .21) | | | | (0 | .08) | | | | (0 | .29) | | | $ | 20 | .78 | | | | 11 | .95% | | | $ | 1,219 | | | | | 0 | .96% | | | | 0 | .95% | | | | –(g) | | | | | 145 | .66% | | |
| Year Ended October 31, 2004 | | | $ | 17 | .95 | | | | 0 | .03 | | | | 0 | .88 | | | | 0 | .91 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 18 | .83 | | | | 5 | .08% | | | $ | 1,089 | | | | | 1 | .27% | | | | 0 | .16% | | | | –(g) | | | | | 144 | .61% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 21 | .18 | | | | 0 | .23 | | | | (7 | .39) | | | | (7 | .16) | | | | (0 | .19) | | | | (3 | .27) | | | | (3 | .46) | | | $ | 10 | .56 | | | | (39 | .96%) | | | $ | 896 | | | | | 0 | .64% | | | | 1 | .48% | | | | 0 | .64% | | | | 353 | .47% | | |
| Year Ended October 31, 2007 (f) | | | $ | 20 | .55 | | | | 0 | .41 | | | | 2 | .70 | | | | 3 | .11 | | | | (0 | .23) | | | | (2 | .25) | | | | (2 | .48) | | | $ | 21 | .18 | | | | 16 | .52% | | | $ | 1,493 | | | | | 0 | .71% | | | | 1 | .98% | | | | 0 | .71% | | | | 373 | .30% | | |
| Year Ended October 31, 2006 | | | $ | 20 | .76 | | | | 0 | .22 | | | | 2 | .61 | | | | 2 | .83 | | | | (0 | .23) | | | | (2 | .81) | | | | (3 | .04) | | | $ | 20 | .55 | | | | 15 | .01% | | | $ | 10,225,801 | | | | | 0 | .74% | | | | 1 | .11% | | | | 0 | .74% | | | | 245 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 18 | .83 | | | | 0 | .24 | | | | 2 | .04 | | | | 2 | .28 | | | | (0 | .27) | | | | (0 | .08) | | | | (0 | .35) | | | $ | 20 | .76 | | | | 12 | .19% | | | $ | 3,335,277 | | | | | 0 | .81% | | | | 0 | .81% | | | | –(g) | | | | | 145 | .66% | | |
| Period Ended October 31, 2004 (h) | | | $ | 19 | .00 | | | | 0 | .03 | | | | (0 | .17) | | | | (0 | .14) | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 18 | .83 | | | | (0 | .74%) | | | $ | 341,271 | | | | | 0 | .78% | | | | 0 | .54% | | | | –(g) | | | | | 144 | .61% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Per share calculations were performed using average shares method. |
| (g) | There were no fee reductions during the period. |
| (h) | For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
36 Annual Report 2008
| |
| Nationwide Money Market Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Money Market Fund (Prime Shares) registered 2.65% versus 3.46% for its benchmark, the iMoneyNet First Tier Retail Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Money Market Funds (consisting of 331 funds as of October 31, 2008) was 2.54% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
For much of the reporting period, the areas that provided the best returns for the Fund included floating-rate notes, asset-backed commercial paper (ABCP) and generally longer-dated maturities. As the Federal Reserve Board lowered interest rates during the reporting period, holdings with longer-than-average maturities and floating-rate notes with longer reset periods performed better than comparable shorter-dated holdings. In addition, ABCP returned better rates than other commercial paper as the market increasingly demanded larger premiums from all types of asset-backed securities. Holdings with longer maturities continue to provide better returns than shorter-maturity assets.
What areas of investment detracted from Fund performance?
Areas that detracted from Fund performance during the reporting period were shorter-maturity holdings and U.S. Government and Agency debt. To increase the liquidity of the Fund while decreasing risk during the recent volatile market conditions, more U.S. government and Agency securities were added to the Fund. Because of the perceived investor safety of U.S. government and Agency securities, these assets provide lower yields. In addition, the Fund eliminated all asset-backed exposure to reduce risk. In general, ABCP typically provide higher returns; accordingly, the reduced exposure hurt Fund performance. As interest rates decreased 350 basis points, or 3.50%, from the previous reporting period, spreads in all areas tightened and competition increased for all types of short-term investments. The increased competition resulted in fewer opportunities to achieve higher-than-average returns and less variation between mutual funds. With the changing dynamics of the short-term marketplace, including the heightened competition and significantly fewer opportunities to earn higher returns, much of our attention in managing the Fund has shifted to pursuing safety and liquidity.
What is your outlook for the near term?
The near-term economic outlook remains dire, as evidenced by the downtrend in the leading economic indicators and the continued deterioration in the housing and labor markets. A meaningful recovery in corporate profits appears unlikely in the near future. Still, the markets already have discounted a relatively severe recession and now appear to be much more reasonably valued than they were throughout most of the past economic cycle. Moreover, risk assets tend to be leading indicators, with the Standard & Poor’s 500® (S&P 500) Index having bottomed in advance of 12 of the past 13 historical recessionary troughs. Volatility is likely to remain high, and enormous downside risks persist, but we have reason to believe that the worst of the declines has occurred.
Subadviser:
Nationwide Asset Management, LLC
Portfolio Manager:
Daniel Blevins, CFA
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency except as stated below. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the money market.
| |
| • | The U.S. Treasury Temporary Guarantee Program provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008. |
| |
| • | Any increase in the number of shares an investor holds after the close of business on September 19, 2008, will not be guaranteed. |
| |
| • | If a customer closes his or her account with a fund or broker-dealer, any future investment in the fund will not be guaranteed. |
2008 Annual Report 37
Nationwide Money Market Fund
(Continued)
| |
| • | If the number of shares an investor holds fluctuates during the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. |
| |
| • | The Program, which was set to expire on December 18, 2008, has been extended by the United States Treasury and is set to expire on April 30, 2009. |
38 Annual Report 2008
| |
| Fund Performance | Nationwide Money Market Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | 10 Yr. | | Ratio* |
| |
Institutional Class Shares1 | | | | | 2.73% | | | | 3.04% | | | | 3.18% | | | | 0.51% | |
| |
| |
Service Class Shares1 | | | | | 2.57% | | | | 2.85% | | | | 3.01% | | | | 0.74% | |
| |
| |
| Prime Shares | | | | | 2.65% | | | | 2.98% | | | | 3.13% | | | | 0.58% | |
| |
| |
There is no sales charge (SC) on the shares of the Money Market Fund. Past performance is no guarantee of future results. An investment in this Fund is neither guaranteed nor insured by the FDIC or any other government agency. Although this Fund strives to maintain the value of your investment at $1.00 per share, it is possible to lose money by investing in this Fund.
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | These returns, for periods prior to the creation of the class, include the performance of the Fund’s Prime shares. These returns were achieved prior to the creation of Service Class shares (1/4/99), and Institutional Class shares (12/13/01). Excluding the effects of any fee waivers or reimbursements, such prior performance is similar to what Service Class and Institutional Class shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for the Service Class shares would have been lower. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in Prime Shares of the Nationwide Money Market Fund, the iMoneyNet-First Tier Retail(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 10/31/08. Unlike the Fund, the returns for these unmanaged indexes does not reflect any fees or expenses. Investors cannot invest directly in market indexes.
| | |
| (a) | | The iMoneyNet-First Tier Retail is an average of non-government retail money market mutual funds that do not invest in any second tier securities. Portfolio holdings of first tier money market mutual funds include U.S. Treasury, U.S. other, repurchase agreements, time deposits, domestic bank obligations, foreign bank obligations, first tier commercial paper, floating rate notes, and asset-backed commercial paper. |
| | |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 39
| |
| Shareholder | Nationwide Money Market Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Money Market Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 1,009.41 | | | | 2.96 | | | | 0.59 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.19 | | | | 2.98 | | | | 0.59 | |
| |
| |
| Service Class Shares | | | Actual | | | | 1,000.00 | | | | 1,009.01 | | | | 3.29 | | | | 0.65 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.86 | | | | 3.31 | | | | 0.65 | |
| |
| |
| Prime Class Shares | | | Actual | | | | 1,000.00 | | | | 1,009.33 | | | | 3.02 | | | | 0.60 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.13 | | | | 3.04 | | | | 0.60 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
40 Annual Report 2008
| |
| Portfolio Summary | Nationwide Money Market Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Commercial Paper | | | 74.6% | |
| Government Mortgage Backed Agencies | | | 15.4% | |
| Corporate Bonds | | | 3.7% | |
| U.S. Government Agency & Obligations | | | 2.5% | |
| Certificates of Deposit | | | 2.4% | |
| Municipal Bonds | | | 1.5% | |
| Liabilities in excess of other assets | | | -0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Financial Services | | | 15.9% | |
| U.S. Government Agencies | | | 15.4% | |
| Diversified Manufacturing | | | 7.9% | |
| Food- Diversified | | | 6.6% | |
| Industrial Machinery & Equipment | | | 4.9% | |
| Media | | | 4.3% | |
| Telecommunications | | | 4.3% | |
| Retail | | | 4.1% | |
| Oil & Gas | | | 4.0% | |
| Computers & Peripherals | | | 3.5% | |
| Other | | | 29.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Florida Hurricane Catastrophe Fund, 4.78%, 11/14/08 | | | 1.5% | |
| Federal National Mortgage Assoc., 2.12%, 12/10/08 | | | 1.4% | |
| Goldman Sachs Group, Inc., 3.52%, 11/24/08 | | | 1.1% | |
| Governor & Co. of the Bank of Ireland, 2.80%, 11/14/08 | | | 1.0% | |
| Dover Corp., 1.65%, 11/20/08 | | | 1.0% | |
| Federal Farm Credit Bank, 1.10%, 12/10/08 | | | 1.0% | |
| Siemens Capital Co. LLC, 1.36%, 12/30/08 | | | 1.0% | |
| U.S. Treasury Bills, 1.28%, 04/09/09 | | | 0.9% | |
| Wal-Mart Stores, Inc., 2.10%, 11/17/08 | | | 0.9% | |
| Kommunalkredit Austria, 3.78%, 11/21/08 | | | 0.9% | |
| Other | | | 89.3% | |
| | | | | |
| | | | 100.0% | |
2008 Annual Report 41
Statement of Investments
October 31, 2008
Nationwide Money Market Fund
| | | | | | | | | |
| Certificates of Deposit 2.4% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
Banks — Domestic 0.6% |
| Bank of America Corp., 2.96%, 03/13/09 | | $ | 15,000,000 | | | $ | 15,000,000 | |
| | | | | | | | | |
| |
| |
Banks — Foreign 1.8% |
| Bank of Ireland, 2.80%, 11/14/08(a)(b)(c) | | | 25,000,000 | | | | 25,000,000 | |
| Svenska Handelsbanken, Inc., 3.25%, 11/24/08 | | | 21,725,000 | | | | 21,735,371 | |
| | | | | | | | | |
| | | | | | | | 46,735,371 | |
| | | | | | | | | |
| | | | | |
Total Certificates of Deposit | | | 61,735,371 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Commercial Paper 74.6% |
| | | | | | | | | |
| | | | | | | | | |
Agricultural Services 0.6%(a) (d) (e) |
| Cargill, Inc. | | | | | | | | |
| 3.35%, 11/05/08 | | | 5,000,000 | | | | 4,998,139 | |
| 3.30%, 11/07/08 | | | 10,000,000 | | | | 9,994,500 | |
| | | | | | | | | |
| | | | | | | | 14,992,639 | |
| | | | | | | | | |
| |
| |
Banks — Domestic 2.5%(e) |
| Bank of America Corp. | | | | | | | | |
| 2.60%, 11/04/08 | | | 1,462,000 | | | | 1,461,683 | |
| 2.60%, 11/12/08 | | | 2,537,000 | | | | 2,534,984 | |
| 2.62%, 11/25/08 | | | 6,117,000 | | | | 6,106,316 | |
| 2.62%, 11/28/08 | | | 3,012,000 | | | | 3,006,081 | |
| 2.69%, 12/01/08 | | | 18,700,000 | | | | 18,658,081 | |
| KBC Financial Products International Ltd.(a)(d) | | | | | | | | |
| 2.70%, 11/14/08 | | | 2,700,000 | | | | 2,697,368 | |
| 2.79%, 11/17/08 | | | 15,000,000 | | | | 14,981,400 | |
| 3.00%, 12/03/08 | | | 5,750,000 | | | | 5,734,667 | |
| Wells Fargo & Co., 2.58%, 11/05/08 | | | 10,000,000 | | | | 9,997,133 | |
| | | | | | | | | |
| | | | | | | | 65,177,713 | |
| | | | | | | | | |
| |
| �� |
Banks — Foreign 3.0% |
| ANZ National (International) Ltd.(d) | | | | | | | | |
| 4.38%, 11/05/08 | | | 9,250,000 | | | | 9,245,498 | |
| 4.60%, 11/05/08(e) | | | 6,500,000 | | | | 6,496,678 | |
| 4.00%, 11/25/08(e) | | | 3,000,000 | | | | 2,992,000 | |
| Bank of Scotland PLC | | | | | | | | |
| 2.79%, 11/03/08(e) | | | 10,000,000 | | | | 9,998,450 | |
| 4.10%, 11/07/08(c) | | | 5,000,000 | | | | 5,000,000 | |
| DnB NOR Bank ASA(a)(d) | | | | | | | | |
| 3.50%, 11/05/08(e) | | | 3,800,000 | | | | 3,798,522 | |
| 2.50%, 11/10/08(e) | | | 5,000,000 | | | | 4,996,875 | |
| 2.40%, 11/12/08 | | | 10,000,000 | | | | 9,992,667 | |
| 2.72%, 11/12/08(e) | | | 10,000,000 | | | | 9,991,689 | |
| 5.00%, 12/22/08(e) | | | 3,950,000 | | | | 3,922,021 | |
| National Australia Funding Delaware, Inc., 2.60%, 11/24/08(a)(d)(e) | | | 10,000,000 | | | | 9,983,389 | |
| Unicredito Italiano, 2.81%, 12/11/08(a)(d)(e) | | | 2,000,000 | | | | 1,993,755 | |
| | | | | | | | | |
| | | | | | | | 78,411,544 | |
| | | | | | | | | |
| |
| |
Chemicals-Diversified 3.1%(e) |
| Air Products & Chemicals, Inc., 0.80%, 11/05/08 | | | 10,000,000 | | | | 9,999,111 | |
| BASF AG(a)(d) | | | | | | | | |
| 2.60%, 12/18/08 | | | 15,000,000 | | | | 14,949,083 | |
| 2.38%, 12/29/08 | | | 10,000,000 | | | | 9,961,656 | |
| BASF SE, 2.07%, 11/10/08(a)(d) | | | 10,000,000 | | | | 9,994,825 | |
| Praxair, Inc. | | | | | | | | |
| 2.05%, 11/05/08 | | | 5,000,000 | | | | 4,998,861 | |
| 2.40%, 11/12/08 | | | 10,000,000 | | | | 9,992,667 | |
| 2.10%, 11/17/08 | | | 15,000,000 | | | | 14,986,000 | |
| 1.15%, 11/19/08 | | | 5,530,000 | | | | 5,526,820 | |
| | | | | | | | | |
| | | | | | | | 80,409,023 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 3.5%(e) |
| Hewlett-Packard Co. | | | | | | | | |
| 2.40%, 11/03/08 | | | 8,000,000 | | | | 7,998,933 | |
| 2.40%, 11/05/08 | | | 15,000,000 | | | | 14,996,000 | |
| IBM Corp. | | | | | | | | |
| 2.24%, 11/20/08 | | | 10,000,000 | | | | 9,988,178 | |
| 1.50%, 11/25/08 | | | 5,000,000 | | | | 4,995,000 | |
| 1.75%, 12/16/08 | | | 18,755,000 | | | | 18,713,974 | |
| Microsoft Corp. | | | | | | | | |
| 1.00%, 11/18/08 | | | 20,000,000 | | | | 19,990,556 | |
| 1.00%, 11/19/08 | | | 5,000,000 | | | | 4,997,500 | |
| 1.00%, 11/21/08 | | | 10,000,000 | | | | 9,994,444 | |
| | | | | | | | | |
| | | | | | | | 91,674,585 | |
| | | | | | | | | |
| |
| |
Diversified Manufacturing 7.9% |
| Danaher Corp.(e) | | | | | | | | |
| 1.50%, 11/07/08 | | | 6,000,000 | | | | 5,998,500 | |
| 1.55%, 11/18/08 | | | 5,000,000 | | | | 4,996,340 | |
| 1.60%, 11/19/08 | | | 10,000,000 | | | | 9,992,000 | |
| 1.50%, 12/09/08 | | | 9,000,000 | | | | 8,985,750 | |
| Dover Corp.(a)(d)(e) | | | | | | | | |
| 1.65%, 11/20/08 | | | 25,000,000 | | | | 24,978,229 | |
| 2.00%, 12/04/08 | | | 10,000,000 | | | | 9,981,667 | |
| Honeywell International, Inc.(a)(d) | | | | | | | | |
| 1.90%, 11/04/08 | | | 10,000,000 | | | | 9,998,417 | |
| 2.00%, 11/04/08 | | | 7,096,000 | | | | 7,094,817 | |
| 2.07%, 11/04/08(e) | | | 14,000,000 | | | | 13,997,585 | |
| Illinois Tool Works, Inc.(e) | | | | | | | | |
| 2.25%, 11/10/08 | | | 17,000,000 | | | | 16,990,437 | |
| 1.70%, 12/11/08 | | | 15,000,000 | | | | 14,971,667 | |
| 1.85%, 01/16/09 | | | 3,545,000 | | | | 3,531,155 | |
42 Annual Report 2008
| | | | | | | | | |
Commercial Paper (continued) |
| | | | Principal Amount | | | | Value | |
| |
| |
Diversified Manufacturing (continued) |
| | | | | | | | | |
| Pitney Bowes, Inc.(a)(d)(e) | | | | | | | | |
| 1.65%, 11/07/08 | | $ | 9,000,000 | | | $ | 8,997,525 | |
| 1.50%, 11/12/08 | | | 10,000,000 | | | | 9,995,417 | |
| 1.00%, 11/13/08 | | | 8,000,000 | | | | 7,997,333 | |
| 1.60%, 11/17/08 | | | 8,000,000 | | | | 7,994,311 | |
| Siemens Capital Co. LLC(a)(d)(e) | | | | | | | | |
| 1.36%, 12/23/08 | | | 15,000,000 | | | | 14,970,533 | |
| 1.36%, 12/30/08 | | | 25,000,000 | | | | 24,944,278 | |
| | | | | | | | | |
| | | | | | | | 206,415,961 | |
| | | | | | | | | |
| |
| |
Financial Services 15.9% |
| Avon Capital Corp., 0.25%, 11/03/08(a)(d)(e) | | | 2,006,000 | | | | 2,005,972 | |
| BNP Paribas Finance, Inc.(e) | | | | | | | | |
| 3.75%, 11/10/08 | | | 5,800,000 | | | | 5,794,563 | |
| 3.78%, 11/14/08 | | | 15,000,000 | | | | 14,979,525 | |
| 3.74%, 11/18/08 | | | 15,000,000 | | | | 14,973,508 | |
| Citigroup Funding, Inc. | | | | | | | | |
| 2.82%, 11/04/08(e) | | | 10,000,000 | | | | 9,997,650 | |
| 3.85%, 11/05/08(e) | | | 10,000,000 | | | | 9,995,722 | |
| 4.15%, 11/06/08(e) | | | 10,000,000 | | | | 9,994,236 | |
| 2.65%, 11/07/08 | | | 10,000,000 | | | | 9,995,583 | |
| 2.67%, 11/07/08(e) | | | 10,000,000 | | | | 9,995,550 | |
| 2.75%, 11/20/08(e) | | | 10,000,000 | | | | 9,985,486 | |
| 2.75%, 12/12/08(e) | | | 10,000,000 | | | | 9,968,681 | |
| Danske Corp.(e) | | | | | | | | |
| 2.96%, 12/02/08 | | | 20,000,000 | | | | 19,949,022 | |
| 2.60%, 12/16/08 | | | 15,000,000 | | | | 14,951,250 | |
| Fortis Funding LLC(a)(d)(e) | | | | | | | | |
| 2.69%, 11/03/08 | | | 20,000,000 | | | | 19,997,011 | |
| 2.69%, 11/05/08 | | | 5,000,000 | | | | 4,998,506 | |
| ING U.S. Funding LLC(e) | | | | | | | | |
| 2.59%, 11/03/08 | | | 4,000,000 | | | | 3,999,426 | |
| 2.59%, 11/04/08 | | | 10,000,000 | | | | 9,997,842 | |
| 2.59%, 11/06/08 | | | 10,000,000 | | | | 9,996,410 | |
| 4.39%, 11/13/08 | | | 10,000,000 | | | | 9,985,383 | |
| 2.71%, 11/24/08 | | | 11,000,000 | | | | 10,980,990 | |
| 2.71%, 11/25/08 | | | 1,245,000 | | | | 1,242,755 | |
| 4.45%, 12/02/08 | | | 4,000,000 | | | | 3,984,672 | |
| John Deere Capital Corp. | | | | | | | | |
| 2.20%, 11/13/08(e) | | | 7,000,000 | | | | 6,994,867 | |
| 2.20%, 11/19/08(e) | | | 10,000,000 | | | | 9,989,000 | |
| 2.05%, 11/24/08 | | | 5,000,000 | | | | 4,993,451 | |
| 2.15%, 11/24/08(e) | | | 7,000,000 | | | | 6,990,385 | |
| 2.25%, 11/25/08(e) | | | 6,000,000 | | | | 5,991,000 | |
| JPMorgan Chase & Co.(e) | | | | | | | | |
| 2.45%, 11/03/08 | | | 15,000,000 | | | | 14,997,958 | |
| 1.50%, 11/17/08 | | | 15,000,000 | | | | 14,990,000 | |
| 2.60%, 12/03/08 | | | 15,000,000 | | | | 14,965,333 | |
| Natexis Banques U.S. Finance Co. LLC, 2.88%, 11/04/08(e) | | | 15,000,000 | | | | 14,996,400 | |
| Nordea North America, Inc.(e) | | | | | | | | |
| 4.20%, 11/12/08 | | | 10,000,000 | | | | 9,987,167 | |
| 3.77%, 12/22/08 | | | 15,000,000 | | | | 14,919,887 | |
| 2.08%, 12/29/08 | | | 10,000,000 | | | | 9,966,489 | |
| Rabobank USA Financial Corp.(e) | | | | | | | | |
| 3.50%, 11/10/08 | | | 10,000,000 | | | | 9,991,250 | |
| 3.10%, 11/18/08 | | | 12,000,000 | | | | 11,982,433 | |
| 2.20%, 11/24/08 | | | 9,750,000 | | | | 9,736,296 | |
| 2.50%, 11/25/08 | | | 3,000,000 | | | | 2,995,000 | |
| Westpac Capital Corp.(a)(d) | | | | | | | | |
| 2.60%, 11/12/08(e) | | | 2,400,000 | | | | 2,398,093 | |
| 2.71%, 11/28/08(e) | | | 18,000,000 | | | | 17,963,415 | |
| 2.75%, 12/04/08(e) | | | 10,800,000 | | | | 10,772,775 | |
| 3.75%, 12/04/08 | | | 4,200,000 | | | | 4,185,563 | |
| | | | | | | | | |
| | | | | | | | 417,576,505 | |
| | | | | | | | | |
| |
| |
Food-Diversified 6.6% |
| Campbell Soup Co.(a)(d) | | | | | | | | |
| 1.90%, 11/03/08(e) | | | 5,000,000 | | | | 4,999,472 | |
| 1.75%, 11/04/08 | | | 2,765,000 | | | | 2,764,597 | |
| 1.90%, 11/04/08(e) | | | 5,000,000 | | | | 4,999,208 | |
| 1.70%, 11/13/08(e) | | | 2,000,000 | | | | 1,998,867 | |
| 1.90%, 12/01/08(e) | | | 10,000,000 | | | | 9,984,167 | |
| 1.50%, 12/08/08(e) | | | 10,000,000 | | | | 9,984,583 | |
Coca-Cola Co. (The)(a)(d)(e) | | | | | | | | |
| 1.60%, 11/14/08 | | | 5,000,000 | | | | 4,997,111 | |
| 1.65%, 11/20/08 | | | 6,000,000 | | | | 5,994,775 | |
| 1.60%, 12/10/08 | | | 5,000,000 | | | | 4,991,333 | |
| 1.65%, 12/12/08 | | | 4,000,000 | | | | 3,992,483 | |
| 1.65%, 12/17/08 | | | 15,000,000 | | | | 14,968,375 | |
| McDonald’s Corp.(e) | | | | | | | | |
| 2.75%, 11/12/08 | | | 10,000,000 | | | | 9,991,597 | |
| 2.75%, 11/14/08 | | | 10,000,000 | | | | 9,990,069 | |
| 1.90%, 11/21/08 | | | 15,000,000 | | | | 14,984,167 | |
| Nestle Finance International Ltd. | | | | | | | | |
| 1.80%, 11/05/08(e) | | | 10,000,000 | | | | 9,998,000 | |
| 2.10%, 11/06/08(e) | | | 11,000,000 | | | | 10,996,792 | |
| 1.60%, 12/11/08(e) | | | 13,000,000 | | | | 12,976,889 | |
| 1.10%, 12/17/08 | | | 5,000,000 | | | | 4,992,972 | |
| 1.60%, 12/17/08(e) | | | 10,000,000 | | | | 9,979,556 | |
| PepsiCo, Inc.(e) | | | | | | | | |
| 1.55%, 11/18/08 | | | 10,000,000 | | | | 9,992,681 | |
| 1.50%, 11/21/08 | | | 10,000,000 | | | | 9,991,667 | |
| | | | | | | | | |
| | | | | | | | 173,569,361 | |
| | | | | | | | | |
| |
| |
Household Products 2.6%(e) |
| Lowe’s Cos., Inc. | | | | | | | | |
| 0.25%, 11/03/08 | | | 15,000,000 | | | | 14,999,792 | |
| 2.00%, 11/13/08 | | | 18,478,000 | | | | 18,465,681 | |
2008 Annual Report 43
Statement of Investments (Continued)
October 31, 2008
Nationwide Money Market Fund (Continued)
| | | | | | | | | |
Commercial Paper (continued) |
| | | | Principal Amount | | | | Value | |
| |
| |
Household Products (continued) |
| | | | | | | | | |
| Procter & Gamble Co. | | | | | | | | |
| 1.65%, 11/24/08 | | $ | 10,000,000 | | | $ | 9,989,459 | |
| 1.65%, 12/18/08 | | | 10,000,000 | | | | 9,978,458 | |
| 1.65%, 12/23/08 | | | 15,000,000 | | | | 14,964,250 | |
| | | | | | | | | |
| | | | | | | | 68,397,640 | |
| | | | | | | | | |
| |
| |
Industrial Machinery & Equipment 4.9% |
| Caterpillar Financial Services Corp.(e) | | | | | | | | |
| 1.60%, 11/12/08 | | | 11,000,000 | | | | 10,994,622 | |
| 1.75%, 11/13/08 | | | 3,895,000 | | | | 3,892,728 | |
| 1.70%, 11/18/08 | | | 12,000,000 | | | | 11,990,367 | |
| 1.75%, 12/01/08 | | | 8,000,000 | | | | 7,988,333 | |
| Eaton Corp. | | | | | | | | |
| 1.50%, 11/07/08 | | | 5,000,000 | | | | 4,998,750 | |
| 2.20%, 11/07/08(e) | | | 10,000,000 | | | | 9,996,333 | |
| 2.25%, 11/10/08(e) | | | 5,000,000 | | | | 4,997,188 | |
| National Australia Funding Delaware, Inc.(a)(d)(e) | | | | | | | | |
| 3.47%, 11/03/08 | | | 8,000,000 | | | | 7,998,458 | |
| 2.68%, 11/04/08 | | | 12,800,000 | | | | 12,797,141 | |
| 2.56%, 11/07/08 | | | 3,000,000 | | | | 2,998,720 | |
| Parker-Hannifin Corp. | | | | | | | | |
| 1.90%, 11/06/08(e) | | | 9,000,000 | | | | 8,997,625 | |
| 2.10%, 11/06/08 | | | 2,150,000 | | | | 2,149,373 | |
| 2.20%, 11/17/08(e) | | | 10,000,000 | | | | 9,990,222 | |
| 1.65%, 12/22/08(e) | | | 13,000,000 | | | | 12,969,613 | |
| United Technologies Corp., 1.10%, 11/24/08(e) | | | 15,500,000 | | | | 15,489,107 | |
| | | | | | | | | |
| | | | | | | | 128,248,580 | |
| | | | | | | | | |
| |
| |
Media 4.3%(e) |
| McGraw-Hill Cos., Inc. (The) | | | | | | | | |
| 2.15%, 11/05/08 | | | 6,500,000 | | | | 6,498,447 | |
| 1.85%, 11/07/08 | | | 7,000,000 | | | | 6,997,842 | |
| 2.00%, 11/10/08 | | | 10,000,000 | | | | 9,995,000 | |
| 1.75%, 11/18/08 | | | 15,000,000 | | | | 14,987,604 | |
| Walt Disney Co. (The) | | | | | | | | |
| 1.50%, 12/08/08 | | | 15,000,000 | | | | 14,976,875 | |
| 1.50%, 12/16/08 | | | 10,000,000 | | | | 9,981,250 | |
| 1.50%, 12/19/08 | | | 10,000,000 | | | | 9,980,000 | |
| Washington Post Co.(a)(d) | | | | | | | | |
| 2.00%, 11/05/08 | | | 5,000,000 | | | | 4,998,889 | |
| 2.15%, 11/06/08 | | | 20,000,000 | | | | 19,994,028 | |
| 2.15%, 11/10/08 | | | 15,000,000 | | | | 14,991,937 | |
| | | | | | | | | |
| | | | | | | | 113,401,872 | |
| | | | | | | | | |
| |
| |
Motor Vehicle Parts and Accessories 2.8%(e) |
| American Honda Finance Corp.(d) | | | | | | | | |
| 2.40%, 11/25/08 | | | 7,000,000 | | | | 6,988,800 | |
| 2.25%, 12/11/08 | | | 8,000,000 | | | | 7,980,000 | |
| 2.25%, 12/12/08 | | | 10,000,000 | | | | 9,974,375 | |
| Toyota Motor Credit Corp. | | | | | | | | |
| 2.42%, 11/04/08 | | | 8,000,000 | | | | 7,998,387 | |
| 2.52%, 11/06/08 | | | 10,000,000 | | | | 9,996,500 | |
| 2.49%, 11/10/08 | | | 10,000,000 | | | | 9,993,775 | |
| 2.54%, 12/04/08 | | | 10,000,000 | | | | 9,976,717 | |
| 2.75%, 12/12/08 | | | 12,000,000 | | | | 11,962,416 | |
| | | | | | | | | |
| | | | | | | | 74,870,970 | |
| | | | | | | | | |
| |
| |
Oil & Gas 4.0%(e) |
| BP Capital Markets PLC | | | | | | | | |
| 1.70%, 01/06/09 | | | 20,000,000 | | | | 19,937,667 | |
| 1.55%, 01/13/09 | | | 15,000,000 | | | | 14,952,854 | |
| Chevron Corp. | | | | | | | | |
| 2.05%, 11/12/08 | | | 10,000,000 | | | | 9,993,736 | |
| 2.05%, 11/13/08 | | | 15,000,000 | | | | 14,989,750 | |
| 1.90%, 11/19/08 | | | 5,000,000 | | | | 4,995,250 | |
| 1.25%, 11/28/08 | | | 5,000,000 | | | | 4,995,313 | |
| ConocoPhillips(a)(d) | | | | | | | | |
| 2.15%, 11/04/08 | | | 18,000,000 | | | | 17,996,775 | |
| 2.25%, 11/14/08 | | | 10,000,000 | | | | 9,991,875 | |
| 2.20%, 12/17/08 | | | 7,000,000 | | | | 6,980,322 | |
| | | | | | | | | |
| | | | | | | | 104,833,542 | |
| | | | | | | | | |
| |
| |
Personal Credit Institutions 1.9%(e) |
| General Electric Capital Corp. | | | | | | | | |
| 2.62%, 11/07/08 | | | 10,000,000 | | | | 9,995,633 | |
| 2.50%, 11/25/08 | | | 15,000,000 | | | | 14,975,000 | |
| 3.05%, 11/26/08 | | | 10,000,000 | | | | 9,978,820 | |
| HSBC Finance Corp. | | | | | | | | |
| 3.25%, 11/18/08 | | | 8,000,000 | | | | 7,987,722 | |
| 3.25%, 11/21/08 | | | 7,000,000 | | | | 6,987,361 | |
| | | | | | | | | |
| | | | | | | | 49,924,536 | |
| | | | | | | | | |
| |
| |
Retail 4.1%(e) |
| Target Corp. | | | | | | | | |
| 2.10%, 12/01/08 | | | 15,000,000 | | | | 14,973,750 | |
| 2.15%, 12/08/08 | | | 20,000,000 | | | | 19,955,806 | |
| Wal-Mart Stores, Inc. | | | | | | | | |
| 2.25%, 11/03/08 | | | 15,000,000 | | | | 14,998,125 | |
| 2.10%, 11/17/08 | | | 23,000,000 | | | | 22,978,533 | |
| Walgreen Co. | | | | | | | | |
| 1.75%, 11/17/08 | | | 10,000,000 | | | | 9,992,222 | |
| 1.75%, 11/19/08 | | | 10,000,000 | | | | 9,991,250 | |
| 1.90%, 11/25/08 | | | 7,990,000 | | | | 7,979,879 | |
| 1.50%, 12/01/08 | | | 6,000,000 | | | | 5,992,500 | |
| | | | | | | | | |
| | | | | | | | 106,862,065 | |
| | | | | | | | | |
| |
| |
Telecommunications 4.3% |
| AT&T, Inc.(a)(d)(e) | | | | | | | | |
| 2.11%, 11/07/08 | | | 2,000,000 | | | | 1,999,297 | |
| 2.14%, 11/13/08 | | | 15,000,000 | | | | 14,989,300 | |
| 1.65%, 11/20/08 | | | 10,000,000 | | | | 9,991,292 | |
| 1.75%, 12/09/08 | | | 8,000,000 | | | | 7,985,222 | |
| Nokia Corp.(e) | | | | | | | | |
| 3.20%, 11/04/08 | | | 7,096,000 | | | | 7,094,108 | |
| 2.60%, 11/13/08 | | | 12,000,000 | | | | 11,989,600 | |
44 Annual Report 2008
| | | | | | | | | |
Commercial Paper (continued) |
| | | | Principal Amount | | | | Value | |
| |
| |
Telecommunications (continued) |
| | | | | | | | | |
| 2.35%, 11/18/08 | | $ | 7,960,000 | | | $ | 7,951,167 | |
| 1.80%, 12/08/08 | | | 10,000,000 | | | | 9,981,500 | |
| 2.55%, 12/17/08 | | | 5,000,000 | | | | 4,983,708 | |
| Telstra Corp.(a)(d) | | | | | | | | |
| 3.00%, 11/12/08(e) | | | 13,000,000 | | | | 12,988,083 | |
| 3.65%, 11/21/08(e) | | | 2,000,000 | | | | 1,995,945 | |
| 2.50%, 11/26/08(e) | | | 5,000,000 | | | | 4,991,319 | |
| 2.00%, 12/03/08 | | | 9,000,000 | | | | 8,984,000 | |
| 2.30%, 12/03/08(e) | | | 6,000,000 | | | | 5,987,733 | |
| | | | | | | | | |
| | | | | | | | 111,912,274 | |
| | | | | | | | | |
| |
| |
Transportation 1.3%(e) |
| United Parcel Service, Inc. | | | | | | | | |
| 1.05%, 11/13/08 | | | 10,000,000 | | | | 9,996,500 | |
| 1.00%, 11/24/08 | | | 15,000,000 | | | | 14,990,417 | |
| 1.10%, 12/01/08 | | | 10,000,000 | | | | 9,990,833 | |
| | | | | | | | | |
| | | | | | | | 34,977,750 | |
| | | | | | | | | |
| |
| |
Utilities 1.3%(e) |
| FPL Group Capital, Inc. | | | | | | | | |
| 3.55%, 11/26/08 | | | 15,000,000 | | | | 14,963,021 | |
| 4.00%, 11/28/08 | | | 10,000,000 | | | | 9,970,000 | |
| 3.55%, 12/19/08 | | | 10,000,000 | | | | 9,952,666 | |
| | | | | | | | | |
| | | | | | | | 34,885,687 | |
| | | | | | | | | |
| | | | | |
Total Commercial Paper | | | 1,956,542,247 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Corporate Bonds 3.7% |
| | | | | | | | | |
| | | | | | | | | |
Banks — Mortgage 0.9%(a) (b) (c) |
| Kommunalkredit Austria, 3.78%, 11/21/08 | | | 22,500,000 | | | | 22,500,000 | |
| | | | | | | | | |
| |
| |
Motor Vehicle Parts and Accessories 0.9%(a) |
| American Honda Finance Corp. | | | | | | | | |
| 3.85%, 11/06/08(d) | | | 10,000,000 | | | | 10,001,968 | |
| 2.96%, 08/26/09(b)(c) | | | 15,000,000 | | | | 15,000,000 | |
| | | | | | | | | |
| | | | | | | | 25,001,968 | |
| | | | | | | | | |
| |
| |
Personal Credit Institutions 0.8%(c) |
| HSBC Finance Corp., 3.24%, 11/24/08 | | | 20,000,000 | | | | 20,000,000 | |
| | | | | | | | | |
Security Brokers & Dealers 1.1%(c) (d) |
| Goldman Sachs Group, Inc., 3.52%, 11/24/08 | | | 30,000,000 | | | | 30,000,000 | |
| | | | | | | | | |
| | | | | |
Total Corporate Bonds | | | 97,501,968 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Government Mortgage Backed Agencies 15.4% |
| | | | | | | | | |
| | | | | | | | | |
U.S. Government Agencies 15.4% |
| Federal Farm Credit Bank | | | | | | | | |
| 1.20%, 11/12/08(e) | | | 15,000,000 | | | | 14,994,500 | |
| 0.70%, 11/13/08(e) | | | 8,000,000 | | | | 7,998,133 | |
| 0.15%, 11/26/08(e) | | | 20,000,000 | | | | 19,997,917 | |
| 1.10%, 12/10/08(e) | | | 25,000,000 | | | | 24,970,208 | |
| 0.50%, 12/18/08(e) | | | 2,060,000 | | | | 2,058,655 | |
| 4.13%, 04/15/09 | | | 1,172,000 | | | | 1,178,763 | |
| Federal Home Loan Bank | | | | | | | | |
| 2.11%, 11/14/08(e) | | | 15,000,000 | | | | 14,988,571 | |
| 2.55%, 11/14/08 | | | 6,600,000 | | | | 6,593,923 | |
| 2.35%, 12/05/08(e) | | | 8,650,000 | | | | 8,630,802 | |
| 2.23%, 12/10/08(e) | | | 10,000,000 | | | | 9,975,842 | |
| 1.35%, 12/19/08(e) | | | 14,600,000 | | | | 14,573,720 | |
| 2.20%, 01/14/09(e) | | | 3,000,000 | | | | 2,986,433 | |
| 2.23%, 01/16/09(e) | | | 1,400,000 | | | | 1,393,409 | |
| 2.36%, 02/04/09(e) | | | 16,000,000 | | | | 15,900,356 | |
| 2.25%, 02/13/09 | | | 20,000,000 | | | | 19,999,472 | |
| Series 1, 2.85%, 10/02/09 | | | 15,000,000 | | | | 15,000,000 | |
| Federal Home Loan Mortgage Corp. | | | | | | | | |
| 1.95%, 11/04/08(e) | | | 12,000,000 | | | | 11,998,050 | |
| 2.47%, 11/17/08(e) | | | 15,000,000 | | | | 14,983,533 | |
| 2.48%, 11/17/08 | | | 5,000,000 | | | | 4,994,489 | |
| 1.25%, 11/19/08(e) | | | 5,000,000 | | | | 4,996,875 | |
| 2.04%, 11/21/08(e) | | | 15,000,000 | | | | 14,983,000 | |
| Series RB, 2.45%, 11/25/08(e) | | | 2,000,000 | | | | 1,996,733 | |
| 2.25%, 11/26/08(e) | | | 9,872,000 | | | | 9,856,575 | |
| 2.15%, 12/15/08(e) | | | 17,485,000 | | | | 17,439,053 | |
| 2.30%, 12/15/08 | | | 10,000,000 | | | | 9,971,889 | |
| 2.05%, 01/07/09(e) | | | 2,555,000 | | | | 2,545,252 | |
| 2.15%, 01/12/09(e) | | | 15,000,000 | | | | 14,935,500 | |
| Federal National Mortgage Assoc | | | | | | | | |
| 1.80%, 11/03/08 | | | 10,000,000 | | | | 9,999,000 | |
| 2.44%, 11/03/08(e) | | | 15,000,000 | | | | 14,997,967 | |
| 1.30%, 11/04/08(e) | | | 2,200,000 | | | | 2,199,762 | |
| 2.38%, 11/05/08(e) | | | 15,065,000 | | | | 15,061,016 | |
| Series BB, 2.46%, 11/06/08(e) | | | 15,000,000 | | | | 14,994,875 | |
| 1.15%, 12/01/08(e) | | | 3,586,000 | | | | 3,582,563 | |
| 1.15%, 12/03/08(e) | | | 5,000,000 | | | | 4,994,889 | |
2008 Annual Report 45
Statement of Investments (Continued)
October 31, 2008
Nationwide Money Market Fund (Continued)
| | | | | | | | | |
Government Mortgage Backed Agencies (continued) |
| | | | Principal Amount | | | | Value | |
| |
| |
| | | | | | | | | |
| 2.12%, 12/10/08(e) | | $ | 37,870,000 | | | $ | 37,783,025 | |
| 1.00%, 12/16/08(e) | | | 10,000,000 | | | | 9,987,500 | |
| | | | | | | | | |
| | | | | |
Total Government Mortgage Backed Agencies | | | 403,542,250 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Municipal Bond 1.5%(c) |
| | | | | | | | | |
| | | | | | | | | |
Florida 1.5% |
| Florida Hurricane Catastrophe Fund, 4.78%, 11/14/08 | | | 40,000,000 | | | | 40,000,000 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| U.S. Government Agency & Obligations 2.5% |
| | | | | | | | | |
| U.S. Treasury Bills | | | | | | | | |
| 1.45%, 11/06/08(e) | | | 20,000,000 | | | | 19,995,972 | |
| 1.28%, 04/09/09(e) | | | 25,000,000 | | | | 24,858,667 | |
| 1.62%, 04/23/09 | | | 20,000,000 | | | | 19,844,300 | |
| | | | | |
Total U.S. Government Agency & Obligations | | | 64,698,939 | |
| | | | | |
| | | | | |
Total Investments (Cost $2,624,020,775) (f) — 100.1% | | | 2,624,020,775 | |
Liabilities in excess of other assets — (0.1)% | | | | | | | (2,310,304 | ) |
| | | | | | | | | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 2,621,710,471 | |
| | | | | |
| | |
| (a) | | Security exempt from registration under Rule 144A of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of October 31, 2008, all such securities in total represented 24.10% of net assets. |
| |
| (b) | | Illiquid security. |
| |
| (c) | | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on October 31, 2008. The maturity date represents the actual maturity date. |
| |
| (d) | | Restricted securities issued pursuant to Section 4(2) of the Securities Act of 1933. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. |
| |
| (e) | | The rate reflected in the Statement of Investments is the discount rate at the time of purchase. |
| |
| (f) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
46 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | Money Market Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $2,624,020,775) | | | $ | 2,624,020,775 | |
| Interest receivable | | | | 905,498 | |
| Receivable for capital shares issued | | | | 2,331,683 | |
| Prepaid expenses and other assets | | | | 246,714 | |
| | | | | | |
| Total Assets | | | | 2,627,504,670 | |
| | | | | | |
Liabilities: | | | | | |
| Cash overdraft | | | | 996 | |
| Distributions payable | | | | 18,753 | |
| Payable for capital shares redeemed | | | | 4,412,158 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 832,473 | |
| Fund administration fees | | | | 260,323 | |
| Distribution fees | | | | 1,016 | |
| Trustee fees | | | | 4,883 | |
| Compliance program costs (Note 3) | | | | 6,036 | |
| Custodian fees | | | | 16,174 | |
| Other | | | | 241,387 | |
| | | | | | |
| Total Liabilities | | | | 5,794,199 | |
| | | | | | |
Net Assets | | | $ | 2,621,710,471 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 2,623,359,197 | |
| Accumulated undistributed net investment income | | | | 516 | |
| Accumulated net realized losses from investment transactions | | | | (1,649,242 | ) |
| | | | | | |
Net Assets | | | $ | 2,621,710,471 | |
| | | | | | |
| Institutional Class Shares | | | | 1,950,048,945 | |
| Service Class Shares | | | | 12,482,591 | |
| Prime Shares | | | | 659,178,935 | |
| | | | | | |
| Total | | | $ | 2,621,710,471 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Institutional Class Shares | | | | 1,951,302,825 | |
| Service Class Shares | | | | 12,489,309 | |
| Prime Shares | | | | 659,835,053 | |
| | | | | | |
| Total | | | | 2,623,627,187 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Institutional Class Shares | | | $ | 1.00 | |
| Service Class Shares | | | $ | 1.00 | |
| Prime Shares | | | $ | 1.00 | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 47
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Money
| |
| | | Market Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 72,772,022 | |
| Dividend income | | | | 65,816 | |
| | | | | | |
| Total Income | | | | 72,837,838 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 8,817,290 | |
| Fund administration fees | | | | 2,230,345 | |
| Distribution fees Service Class | | | | 14,748 | |
| Administrative servicing fees Service Class | | | | 179 | |
| Administrative servicing fees Prime Class | | | | 457,804 | |
| Registration and filing fees | | | | 25,188 | |
| Professional fees | | | | 351,071 | |
| Printing fees | | | | 99,796 | |
| Trustee fees | | | | 120,070 | |
| Custodian fees | | | | 190,691 | |
| Other | | | | 809,180 | |
| | | | | | |
| Total expenses before waived expenses | | | | 13,116,362 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (55,982 | ) |
| Distribution fees voluntarily waived — Service Class | | | | (4,916 | ) |
| | | | | | |
| Net Expenses | | | | 13,055,464 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 59,782,374 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (6,955,221 | ) |
| Net increase from payment by advisor (Note 3) | | | | 5,321,166 | |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (1,634,055 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | 58,148,319 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
48 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Money Market Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 59,782,374 | | | | $ | 86,864,179 | |
| Net realized losses from investment transactions | | | | (1,634,055 | ) | | | | (1,362 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | 58,148,319 | | | | | 86,862,817 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Institutional Class | | | | (44,205,350 | ) | | | | (65,995,097 | ) |
| Service Class | | | | (249,109 | ) | | | | (415,950 | ) |
| Prime Class | | | | (15,333,057 | ) | | | | (20,438,434 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (59,787,516 | ) | | | | (86,849,481 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 648,053,627 | | | | | 334,488,931 | |
| | | | | | | | | | | |
| Change in net assets | | | | 646,414,430 | | | | | 334,502,267 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,975,296,041 | | | | | 1,640,793,774 | |
| | | | | | | | | | | |
| End of period | | | $ | 2,621,710,471 | | | | $ | 1,975,296,041 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 516 | | | | $ | 5,658 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 929,736,576 | | | | | 796,994,614 | |
| Dividends reinvested | | | | 44,205,350 | | | | | 65,991,993 | |
| Cost of shares redeemed | | | | (487,651,922 | ) | | | | (669,867,801 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 486,290,004 | | | | | 193,118,806 | |
| | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 7,533,395 | | | | | 4,376,416 | |
| Dividends reinvested | | | | 248,129 | | | | | 415,945 | |
| Cost of shares redeemed | | | | (4,257,287 | ) | | | | (5,728,347 | ) |
| | | | | | | | | | | |
| Total Service Class | | | | 3,524,237 | | | | | (935,986 | ) |
| | | | | | | | | | | |
Prime Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 520,543,492 | | | | | 466,330,168 | |
| Dividends reinvested | | | | 15,022,900 | | | | | 19,847,167 | |
| Cost of shares redeemed | | | | (377,327,006 | ) | | | | (343,871,224 | ) |
| | | | | | | | | | | |
| Total Prime Class | | | | 158,239,386 | | | | | 142,306,111 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 648,053,627 | | | | $ | 334,488,931 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 929,736,576 | | | | | 796,994,614 | |
| Reinvested | | | | 44,205,350 | | | | | 65,991,993 | |
| Redeemed | | | | (487,651,922 | ) | | | | (669,867,801 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 486,290,004 | | | | | 193,118,806 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 49
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Money Market Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Service Class Shares | | | | | | | | | | |
| Issued | | | | 7,533,395 | | | | | 4,376,416 | |
| Reinvested | | | | 248,129 | | | | | 415,945 | |
| Redeemed | | | | (4,257,287 | ) | | | | (5,728,347 | ) |
| | | | | | | | | | | |
| Total Service Class Shares | | | | 3,524,237 | | | | | (935,986 | ) |
| | | | | | | | | | | |
Prime Shares | | | | | | | | | | |
| Issued | | | | 520,543,492 | | | | | 466,330,138 | |
| Reinvested | | | | 15,022,900 | | | | | 19,847,167 | |
| Redeemed | | | | (377,327,006 | ) | | | | (343,871,224 | ) |
| | | | | | | | | | | |
| Total Prime Class Shares | | | | 158,239,386 | | | | | 142,306,081 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 648,053,627 | | | | | 334,488,901 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
50 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Money Market Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | |
| | | | Net Asset | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | |
| | | | Value,
| | | | | | | | | | | | | | | Capital | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | |
| | | | Beginning
| | | Net
| | | Total
| | | Net
| | | | | | Contributions
| | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | |
| | | | of | | | Investment
| | | from
| | | Investment
| | | Total
| | | from | | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | |
| | | | Period | | | Income | | | Operations | | | Income | | | Distributions | | | Adviser | | | of Period | | | Return | | | of Period | | | Net Assets | | | Net Assets | | | Net Assets (a) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 1 | .00 | | | | 0 | .03 | | | | 0 | .03 | | | | (0 | .03) | | | | (0 | .03) | | | | –(d) | | | | $ | 1 | .00 | | | | 2 | .73%(b) | | | $ | 1,950,048,945 | | | | | 0 | .55% | | | | 2 | .64% | | | | 0 | .55% | | |
| Year Ended October 31, 2007 | | | $ | 1 | .00 | | | | 0 | .05 | | | | 0 | .05 | | | | (0 | .05) | | | | (0 | .05) | | | | – | | | | $ | 1 | .00 | | | | 5 | .01% | | | $ | 1,464,958,334 | | | | | 0 | .51% | | | | 4 | .90% | | | | 0 | .51% | | |
| Year Ended October 31, 2006 | | | $ | 1 | .00 | | | | 0 | .04 | | | | 0 | .04 | | | | (0 | .04) | | | | (0 | .04) | | | | – | | | | $ | 1 | .00 | | | | 4 | .40% | | | $ | 1,271,826,097 | | | | | 0 | .54% | | | | 4 | .32% | | | | –(c) | | | |
| Year Ended October 31, 2005 | | | $ | 1 | .00 | | | | 0 | .02 | | | | 0 | .02 | | | | (0 | .02) | | | | (0 | .02) | | | | – | | | | $ | 1 | .00 | | | | 2 | .41% | | | $ | 1,525,486,972 | | | | | 0 | .55% | | | | 2 | .40% | | | | –(c) | | | |
| Year Ended October 31, 2004 | | | $ | 1 | .00 | | | | 0 | .01 | | | | 0 | .01 | | | | (0 | .01) | | | | (0 | .01) | | | | – | | | | $ | 1 | .00 | | | | 0 | .73% | | | $ | 1,219,342,910 | | | | | 0 | .54% | | | | 0 | .73% | | | | –(c) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 1 | .00 | | | | 0 | .03 | | | | 0 | .03 | | | | (0 | .03) | | | | (0 | .03) | | | | –(d) | | | | $ | 1 | .00 | | | | 2 | .57%(b) | | | $ | 12,482,591 | | | | | 0 | .70% | | | | 2 | .53% | | | | 0 | .75% | | |
| Year Ended October 31, 2007 | | | $ | 1 | .00 | | | | 0 | .05 | | | | 0 | .05 | | | | (0 | .05) | | | | (0 | .05) | | | | – | | | | $ | 1 | .00 | | | | 4 | .82% | | | $ | 8,960,588 | | | | | 0 | .74% | | | | 4 | .67% | | | | 0 | .79% | | |
| Year Ended October 31, 2006 | | | $ | 1 | .00 | | | | 0 | .04 | | | | 0 | .04 | | | | (0 | .04) | | | | (0 | .04) | | | | – | | | | $ | 1 | .00 | | | | 4 | .17% | | | $ | 9,900,895 | | | | | 0 | .75% | | | | 4 | .14% | | | | 0 | .80% | | |
| Year Ended October 31, 2005 | | | $ | 1 | .00 | | | | 0 | .02 | | | | 0 | .02 | | | | (0 | .02) | | | | (0 | .02) | | | | – | | | | $ | 1 | .00 | | | | 2 | .21% | | | $ | 6,709,751 | | | | | 0 | .75% | | | | 2 | .30% | | | | 0 | .88% | | |
| Year Ended October 31, 2004 | | | $ | 1 | .00 | | | | 0 | .01 | | | | 0 | .01 | | | | (0 | .01) | | | | (0 | .01) | | | | – | | | | $ | 1 | .00 | | | | 0 | .52% | | | $ | 5,952,324 | | | | | 0 | .75% | | | | 0 | .51% | | | | 0 | .78% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Prime Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 | | | $ | 1 | .00 | | | | 0 | .03 | | | | 0 | .03 | | | | (0 | .03) | | | | (0 | .03) | | | | –(d) | | | | $ | 1 | .00 | | | | 2 | .65%(b) | | | $ | 659,178,935 | | | | | 0 | .63% | | | | 2 | .56% | | | | 0 | .63% | | |
| Year Ended October 31, 2007 | | | $ | 1 | .00 | | | | 0 | .05 | | | | 0 | .05 | | | | (0 | .05) | | | | (0 | .05) | | | | – | | | | $ | 1 | .00 | | | | 4 | .94% | | | $ | 501,377,119 | | | | | 0 | .58% | | | | 4 | .84% | | | | 0 | .58% | | |
| Year Ended October 31, 2006 | | | $ | 1 | .00 | | | | 0 | .04 | | | | 0 | .04 | | | | (0 | .04) | | | | (0 | .04) | | | | – | | | | $ | 1 | .00 | | | | 4 | .35% | | | $ | 359,066,782 | | | | | 0 | .59% | | | | 4 | .27% | | | | –(c) | | | |
| Year Ended October 31, 2005 | | | $ | 1 | .00 | | | | 0 | .02 | | | | 0 | .02 | | | | (0 | .02) | | | | (0 | .02) | | | | – | | | | $ | 1 | .00 | | | | 2 | .36% | | | $ | 334,991,393 | | | | | 0 | .60% | | | | 2 | .31% | | | | –(c) | | | |
| Year Ended October 31, 2004 | | | $ | 1 | .00 | | | | 0 | .01 | | | | 0 | .01 | | | | (0 | .01) | | | | (0 | .01) | | | | – | | | | $ | 1 | .00 | | | | 0 | .67% | | | $ | 395,038,431 | | | | | 0 | .60% | | | | 0 | .66% | | | | –(c) | | | |
| |
| (a) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (b) | Includes payment from the Investment Adviser which increased the total return by 0.26% (Note 3). |
| (c) | There were no fee reductions during the period. |
| (d) | The amount is less than $0.005 per share. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 51
Notes to Financial Statements
October 31, 2008
1. Organization
Nationwide Mutual Funds (the “Trust”) is an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust dated October 28, 2004, as amended to date. The Trust, originally created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, was redomesticated as a Delaware statutory trust on February 28, 2005. The redomestication was a change in statutory status and did not affect the operations of the Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2008, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. The Trust operates thirty-six (36) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the three (3) funds listed below (each, a “Fund”; collectively, the “Funds”):
| | |
| | - | Nationwide Growth Fund (“Growth”) |
| | - | Nationwide Fund (“Nationwide”) |
| | - | Nationwide Money Market Fund (“Money Market”) |
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates and those differences could be material.
Securities for which market quotations are readily available are valued at current market value as of “Valuation Time.” Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern time). Equity securities are valued at the last quoted sale price or, if there is no sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Prices are taken from the primary market or exchange in which each security trades. Investment companies are valued at net asset value (“NAV”) as reported by such company.
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service, the use of which has been approved by the Board of Trustees. Short-term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
Investments of Money Market are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security.
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of
52 Annual Report 2008
the Funds’ investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees. The “Fair Value” of these securities is determined in good faith by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a “Fair Value” may include the following non-exclusive list of acceptable methods: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the yield-to-maturity for debt issues; or (iv) a consolidation of the methods. The Board of Trustees’ Valuation & Operations Committee considers a non-exclusive list of factors to arrive at the appropriate method of determining “Fair Value.” For example, fair value determinations are required for securities whose value is affected by a “significant” event that materially affects the value of a domestic or foreign security which occurs subsequent to the time of the close of the principal market on which such domestic or foreign security trades and before the Valuation Time (i.e., a “subsequent event”). Typically, this will involve events occurring after the close of a foreign market on which a security trades and before the next Valuation Time.
The Funds holding foreign equity securities (the “Foreign Equity Funds”) value foreign securities at fair value in the circumstances described below. Generally, trading in foreign securities markets is completed each day at various times prior to the Valuation Time. Due to the time differences between the closings of the relevant foreign securities exchanges and the Valuation Time for the Foreign Equity Funds, the Foreign Equity Funds will fair value their foreign investments when it is determined that the market quotations for the foreign investments either are not readily available or are unreliable and, therefore, do not represent fair value. When the fair value prices are utilized, these prices will attempt to reflect the impact of the U.S. financial markets’ perceptions and trading activities on the Foreign Equity Funds’ foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Trustees has determined that movements in relevant indices or other appropriate market indicators, after the close of the foreign securities exchanges, may demonstrate that market quotations are unreliable, and may trigger fair value pricing for certain securities. Consequently, fair valuation of portfolio securities may occur on a daily basis.
| |
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. The Funds may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
| |
| (c) | Forward Foreign Currency Contracts |
Certain Funds may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. The Funds did not have any forward foreign currency contracts during the fiscal year ending October 31, 2008.
2008 Annual Report 53
Notes to Financial Statements (Continued)
October 31, 2008
Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging their existing portfolio securities or securities that the Funds intend to purchase against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes; however, in those instances, the aggregate initial margin and premiums required to establish a Fund’s positions may not exceed 5% of that Fund’s NAV after taking into account unrealized profits and unrealized losses on any such contract it has entered into.
Upon entering into a futures contract, each of the Funds is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin” payments, are made each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. A gain or loss equal to the variation margin is recognized on a daily basis. Futures contracts are valued daily at their last quoted sale price.
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future.
Should market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions for hedging purposes involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the value of the underlying hedged assets. The Funds did not have any futures contracts during the fiscal year ending October 31, 2008.
| |
| (e) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
To generate additional income, each of the Funds, with the exception of Money Market, may lend their respective portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions provided that (1) the borrower delivers cash or securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter shall require the borrower to mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Funds receive payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Funds’ investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank serves as custodian for the securities lending program of the Funds. JPMorgan Chase Bank receives a fee based on the value of the collateral received from borrowers. As of October 31, 2008, the Funds did not have securities on loan.
54 Annual Report 2008
| |
| (g) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for Growth and Nationwide and are declared daily and paid monthly for Money Market. For all Funds, distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary in nature. Permanent differences (i.e., reclassification of market discounts, foreign gain/loss, and paydowns) are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the respective Funds. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, these excesses are reported as distributions of paid-in-capital.
It is the policy of each Fund to qualify or to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
The Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. If a tax position taken by a Fund is not sustained upon examination by a taxing authority, the Fund may incur taxes and penalties related to that position, and those amounts could be material. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable) and an increase in a deferred tax liability (or a reduction in a deferred tax asset). Adoption of FIN 48 was required no later than the last business day of the first financial statement reporting period for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Accordingly, the Funds were required to implement FIN 48 in their NAV per share calculations on April 30, 2008. Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. Each Fund files U.S. federal income tax returns and, if applicable, returns in various state or foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service. The adoption of FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to each Fund’s NAV and financial statements.
| |
| (i) | Allocation of Expenses, Income, and Gains and Losses |
Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the Trust. For each Fund, the method for allocating income, fund level expenses, and realized and unrealized gains or losses is based on the fair value of shares outstanding relative to net assets. Under this method, each class of shares participates
2008 Annual Report 55
Notes to Financial Statements (Continued)
October 31, 2008
based on the total NAV of that class’s shares in proportion to the total net assets of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA” or the “Adviser”) manages the investment of the assets and supervises the daily business affairs of the Funds (as shown in the table below). NFA is a wholly-owned subsidiary of Nationwide Financial Services, Inc. (“NFS”), whose parent company is Nationwide Corporation. NFA provides investment management evaluation services in initially selecting and monitoring, on an ongoing basis, the performance of the subadviser for each of the Funds. The subadviser manages each of its respective Fund’s investments and has the responsibility for making all investment decisions for the applicable Funds.
The subadviser for each Fund is as follows:
| | | | | | | |
| Fund | | Adviser | | Subadviser | | |
| |
| Growth | | NFA | | Aberdeen Asset Management, Inc. (“Aberdeen”) | | |
| |
| |
| Nationwide | | NFA | | Aberdeen | | |
| |
| |
| Money Market | | NFA | | Nationwide Asset Management, LLC (“NWAM”) (a) | | |
| |
| |
| | |
| (a) | | Effective January 1, 2008, NWAM, an affiliate of NFA, became subadviser to Money Market. |
Under the terms of the Investment Advisory Agreement, each Fund pays NFA an investment advisory fee based on that Fund’s average daily net assets. From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. For the year ended October 31, 2008, the Funds paid investment advisory fees to NFA according to the schedule below:
| | | | | | | | | | |
| | | | | Total
| | |
| Fund | | Fee Schedule | | Fees | | |
| |
| Growth and Nationwide | | $0 up to $250 million | | | 0.60 | % | | | |
| | | $250 million up to $1 billion | | | 0.575 | % | | | |
| | | $1 billion up to $2 billion | | | 0.55 | % | | | |
| | | $2 billion up to $5 billion | | | 0.525 | % | | | |
| | | $5 billion or more | | | 0.50 | % | | | |
| |
| |
| Money Market | | $0 up to $1 billion | | | 0.40 | % | | | |
| | | $1 billion up to $2 billion | | | 0.38 | % | | | |
| | | $2 billion up to $5 billion | | | 0.36 | % | | | |
| | | $5 billion and more | | | 0.34 | % | | | |
| |
| |
From such fees, pursuant to the subadvisory agreements, NFA paid the subadvisers $4,535,235 of which $775,642 was paid to affiliated subadvisers, for the year ended October 31, 2008.
NFA and Money Market have entered into a written Expense Limitation Agreement, that limits operating expenses (excluding any taxes, interest, brokerage fees, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by the Fund in connection with any merger or reorganization and may exclude other non-routine expenses not incurred in the ordinary course of the Fund’s business) from exceeding the amounts listed in the table below until at least May 1, 2009:
| | | | | | | | | | | | | |
| | | Fund | | Classes | | Amount | | |
| |
| | | Money Market | | | Institutional Class | | | | 0.59% | | | |
| |
| |
| | | | | | Service Class | | | | 0.75% | | | |
| |
| |
| | | | | | Prime | | | | 0.59% | | | |
| |
| |
56 Annual Report 2008
NFA may request and receive reimbursement from Money Market for advisory fees waived and other expenses reimbursed by NFA pursuant to the Expense Limitation Agreement at a date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the Class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Except as provided for in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by NFA is not permitted. As of October 31, 2008, Money Market had no cumulative potential reimbursements.
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Funds’ principal underwriter, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. NFD is a wholly-owned subsidiary of NFS Distributors Inc. (“NFSDI”). These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed the following:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A
| | Class B
| | Class C
| | Class R
| | Service Class
| | |
| Fund | | Shares | | Shares | | Shares | | Shares | | Shares | | |
| |
| Growth | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | |
| |
| |
| Nationwide | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | | N/A | | | |
| |
| |
| Money Market | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 0.15% | | | |
| |
| |
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A and Class D shares. These fees are deducted from and are not included in proceeds from sales of Class A and Class D shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A and Class D shares of the Funds. NFD also receives fees for services as principal underwriter for Class B shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B shares, which may cause the current value of a shareholder’s account to fall below the total purchase payments. The CDSC, if applicable, will be imposed on redemptions of Class B and shares made within six years of the purchase. Class C shares have a CDSC fee of 1% imposed on redemptions of Class C shares of the Funds made within one year of purchase. For the year ended October 31, 2008, NFD received commissions of $223,167 from front-end sales charges of Class A and Class D shares and from CDSC fees from Class B and Class C shares of the Funds, of which $192,324 was re-allowed to affiliated broker-dealers of the Funds.
Under the terms of a Fund Administration and Transfer Agency Agreement, Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFSDI, provides various administrative and accounting services for the Funds, and serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. The fees for the services provided under this agreement are calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees are then allocated proportionately among all funds within the Trust in relation to the average daily net assets of each Fund and are paid to NFM.
| | | | | | | | | |
| | | Combined Fee Schedule* | | | | |
| |
| | | Up to $1 billion | | | 0.26% | | | |
| |
| |
| | | $1 billion to $3 billion | | | 0.19% | | | |
| |
| |
| | | $3 billion to $4 billion | | | 0.15% | | | |
| |
| |
| | | $4 billion to $5 billion | | | 0.08% | | | |
| |
| |
| | | $5 billion to $10 billion | | | 0.05% | | | |
| |
| |
| | | $10 billion to $12 billion | | | 0.03% | | | |
| |
| |
| | | $12 billion or more | | | 0.02% | | | |
| |
| |
2008 Annual Report 57
Notes to Financial Statements (Continued)
October 31, 2008
| | |
| * | | The assets of the Nationwide Investor Destinations Aggressive, Nationwide Investor Destinations Moderately Aggressive, Nationwide Investor Destinations Moderate, Nationwide Investor Destinations Moderately Conservative and Nationwide Investor Destinations Conservative Funds (collectively, the “Investor Destinations Funds”) and the Nationwide Destination 2010, Nationwide Destination 2015, Nationwide Destination 2020, Nationwide Destination 2025, Nationwide Destination 2030, Nationwide Destination 2035, Nationwide Destination 2040, Nationwide Destination 2045, Nationwide Destination 2050, and Nationwide Retirement Income Funds (collectively, the “Target Destination Funds”) are excluded from the Trust asset level amount in order to calculate this asset based fee. The Investor Destinations Funds and the Target Destination Funds do not pay any part of this fee. |
NFA and NFM have entered into agreements with Citi Fund Services Ohio, Inc. (“Citi”), pursuant to which Citi provides sub-administration and sub-transfer agency services, respectively, to the Funds.
NFA and Citi have agreed to designate certain sub-transfer agency agreements NFA enters into with respect to the Funds as “Qualifying Sub-TA Agreements.” With respect to Qualifying Sub-TA Agreements, Citi will credit to NFA an amount equal to the lesser of (i) the actual amount NFA is charged by the sub-transfer agent under the applicable Qualifying Sub-TA Agreement or (ii) $10 per investor account; however, the aggregate amount paid with regard to all Qualifying Sub-TA Agreements, regardless of whether option (i) or (ii) applies, shall not exceed $200,000 per annum. Citi will calculate and credit such amounts to NFA’s fees on a monthly basis. All amounts will be credited to each applicable Fund on a monthly basis.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, NFS and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquiries regarding the Funds; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Class D, Class R, Prime Shares, Service Class and Institutional Services Classes of shares of each of the Funds.
For the year ended October 31, 2008, NFS received the following amounts in administrative services fees from each Fund:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Growth | | $ | 19,579 | | | |
| |
| |
| | | Nationwide | | | 565,565 | | | |
| |
| |
| | | Money Market | | | 528,171 | | | |
| |
| |
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, by and among NFA, the Audit Committee of the Board of Trustees and the Trust, the Board of Trustees has agreed to reimburse NFA for certain costs related to the Funds’ portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the year ended October 31, 2008, the Funds’ portion of such costs amounted to $27,215.
On November 2, 2007, Nationwide Mutual Insurance Company (“NMIC”) purchased several structured investment vehicle notes from the Money Market Fund. These notes were purchased at a price equal to the notes’ amortized cost including accrued interest totaling $81,133,320, of which $4,721,166 was a contribution from NMIC representing the amount in excess of the estimated value of the notes determined in good faith.
On October 9, 2008, Nationwide Asset Management LLC, the subadviser to Money Market, made a contribution of $600,000 to the capital of Money Market in connection with a $600,000 loss realized by Money Market on sale of securities.
58 Annual Report 2008
4. Short-Term Trading Fees
The Funds (except Money Maket) assess a 2.00% redemption fee on all classes of shares that are purchased and are sold or exchanged within 30 calendar days of purchase. The redemption fee, if any, is paid directly to the applicable Fund class and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.
For the year ended October 31, 2008, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Class
| | Institutional
| | Institutional
| | | | | | | | | | | | |
| Fund | | A | | B | | C | | D | | R | | Service Class | | Class | | | | | | | | | | | | |
| |
| Growth | | $ | 1,134 | | | $ | 16 | | | $ | 36 | | | $ | 3,216 | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Nationwide | | | 1,340 | | | | 99 | | | | — | | | | 2,627 | | | | — | | | | N/A | | | | — | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
For the year ended October 31, 2007, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Class
| | Institutional
| | Institutional
| | | | | | | | | | | | |
| Fund | | A | | B | | C | | D | | R | | Service Class | | Class | | | | | | | | | | | | |
| |
| Growth | | $ | 1,203 | | | $ | 18 | | | $ | — | | | $ | 1,097 | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Nationwide | | | 2,505 | | | | 185 | | | | 6 | | | | 5,433 | | | | — | | | | N/A | | | | — | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Funds’ custodian bank, permitting the Trust to borrow up to $100,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. The interest costs, if any, would be shown on the Statement of Operations. No compensating balances are required under the terms of the line of credit. The line of credit is renewed annually, expiring on July 23, 2009, with a commitment fee of 0.07% per year on $100,000,000. There are three (3) other lenders participating in this arrangement. Advances taken by the Funds under this arrangement would be primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. There were no borrowings under this line of credit during the year ended October 31, 2008.
The Trust’s custodian bank has agreed to reduce the bank’s fees (earnings credits) when the Funds of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those funds that use DDAs based on the number of open shareholder accounts in each Fund. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for the funds that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
2008 Annual Report 59
Notes to Financial Statements (Continued)
October 31, 2008
6. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Growth | | $ | 383,809,266 | | | $ | 404,134,984 | | | |
| |
| |
| | | Nationwide | | | 3,768,830,951 | | | | 3,878,445,101 | | | |
| |
| |
Purchases and sales of U.S. Government securities for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Money Market | | $ | 1,586,084,419 | | | $ | 133,886,107 | | | |
| |
| |
7. Indemnifications
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered into Indemnification Agreements with its Trustees and certain of its Officers. Trust Officers receive no compensation from the Trust for serving as its Officers. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum liability under these arrangements is unknown, as this would involve future claims that may be made against the Trust. Based on experience however, the Trust expects that risk of loss to be remote.
8. New Accounting Pronouncements
In September 2006, the FASB issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current accounting principles generally accepted in the United States of America from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of October 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about each Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on each Fund’s financial statements and related disclosures.
In September 2008, FASB Staff Position FAS 133-1 and FIN 45-4, “Disclosures about Credit Derivates and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (the “Amendment”) was issued and is effective for annual and interim reporting periods ending after November 15, 2008. The Amendment requires enhanced disclosures regarding a fund’s credit derivatives holdings and hybrid financial instruments containing embedded credit derivatives. Management is currently evaluating what impact the adoption of the Amendment will have on each Fund’s financial statement disclosure.
60 Annual Report 2008
9. Other
In response to credit market instability, on September 22, 2008 the United States Department of the Treasury (the “Treasury Department”) made available certain funds from its Exchange Stabilization Fund on a temporary basis to assist money market funds in paying their shareholders $1.00 per share upon redemption of fund shares. The Treasury Department’s Temporary Guarantee for Money Market Funds (the “Program”) is limited to assets in money market funds as of the close of business on September 19, 2008 and to shareholders of record as of that date. Participating money market funds are required to make premium payments to participate in the Program. The guarantee would be triggered if a participating money market fund were to be liquidated within thirty days of its net asset value per share falling below $0.995. Upon such a fund’s liquidation, the Program would make up the difference between the liquidation net asset value per share and $1.00. The Program is currently set to expire on December 18, 2008.
On October 3, 2008, the Board approved the participation of Money Market in the Program for the Program’s initial three-month period. Money Market paid a premium of $242,419, equivalent to 0.01% of Money Market’s net asset value as of September 19, 2008 required for Money Market to participate in the Program.
On October 10, 2008 the Securities and Exchange Commission issued a no-action relief letter to the Investment Company Institute to temporarily allow money market funds to value certain securities at amortized cost for shadow pricing purposes (the process of periodically comparing a fund’s amortized cost valuations to valuations derived by reference to available market quotations) under Rule 2a-7 of the 1940 Act. The relief is limited to first tier securities with maturities of 60 days or less that a money market fund reasonably expects to hold to maturity. The relief expires on January 12, 2009. Money Market began applying the guidance on October 22, 2008.
At October 31, 2008, the Funds had individual shareholder accounts and/or omnibus shareholder accounts (comprised of a group of individual shareholders), which amounted to more than 10% of the total shares outstanding of the Funds as detailed below.
| | | | | | | | | | | | | |
| | | Fund | | % of Shares | | Number of Accounts | | |
| |
| | | Nationwide | | | 28% | | | | 1 | | | |
| |
| |
| | | Money Market | | | 87% | | | | 2 | | | |
| |
| |
Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the NAV of many mutual funds, including these Funds. Such events during this period have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business and/or whose securities are or may be held by the Funds. The potential investment of each Fund’s investments in these issuers, and the financial sector in general, as reflected in each Fund’s schedule of investments, may expose investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
10. Federal Tax Information
The tax character of distributions paid during the fiscal year ended October 31, 2008, was as follows: (Total distributions paid may differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when paid.)
2008 Annual Report 61
Notes to Financial Statements (Continued)
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Growth | | $ | 364,076 | | | $ | — | | | $ | 364,076 | | | $ | — | | | $ | 364,076 | | | |
| |
| |
| Nationwide | | | 151,311,694 | | | | 62,339,601 | | | | 213,651,295 | | | | — | | | | 213,651,295 | | | |
| |
| |
| Money Market | | | 64,036,237 | | | | — | | | | 64,036,237 | | | | — | | | | 64,036,237 | | | |
| |
| |
The tax character of distributions paid during the fiscal year ended October 31, 2007, was as follows: (Total distributons paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Growth | | $ | 567,462 | | | $ | — | | | $ | 567,462 | | | $ | — | | | $ | 567,462 | | | |
| |
| |
| Nationwide | | | 79,928,504 | | | | 70,707,148 | | | | 150,635,652 | | | | — | | | | 150,635,652 | | | |
| |
| |
| Money Market | | | 85,434,477 | | | | — | | | | 85,434,477 | | | | — | | | | 85,434,477 | | | |
| |
| |
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows: (Total distributions paid differ from the Staement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Total
| | |
| | | Undistributed
| | Undistributed
| | Undistributed
| | | | | | Accumulated
| | Unrealized
| | Accumulated
| | |
| | | Tax Exempt
| | Ordinary
| | Long-Term
| | Accumulated
| | Distributions
| | Capital and
| | Appreciation
| | Earnings
| | |
| Fund | | Income | | Income | | Capital Gains | | Earnings | | Payable | | Other Losses | | (Depreciation)* | | (Deficit) | | |
| |
| Growth | | $ | — | | | $ | 80,189 | | | $ | — | | | $ | 80,189 | | | $ | — | | | $ | (225,955,736) | | | $ | (33,755,764) | | | $ | (259,631,311) | | | |
| |
| |
| Nationwide | | | — | | | | 3,511,352 | | | | — | | | | 3,511,352 | | | | — | | | | (214,087,253) | | | | (226,096,918) | | | | (436,672,819) | | | |
| |
| |
| Money Market | | | — | | | | 3,864,435 | | | | — | | | | 3,864,435 | | | | (3,863,919) | | | | (1,649,242) | | | | — | | | | (1,648,726) | | | |
| |
| |
| | |
| * | | The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. |
As of October 31, 2008, the tax cost of securities and the breakdown of unrealized appreciation / (depreciation) for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net Unrealized
| | |
| | | Tax Cost
| | Unrealized
| | Unrealized
| | Appreciation
| | |
| Fund | | of Securities | | Appreciation | | Depreciation | | (Depreciation) | | |
| |
| Growth | | $ | 155,655,697 | | | $ | 1,260,422 | | | $ | (35,016,186) | | | $ | (33,755,764) | | | |
| |
| |
| Nationwide | | | 927,591,523 | | | | 7,783,247 | | | | (233,880,165) | | | | (226,096,918) | | | |
| |
| |
| Money Market | | | 2,624,020,775 | | | | — | | | | — | | | | — | | | |
| |
| |
As of October 31, 2008, for Federal income tax purposes, the following Funds have capital loss carry forwards available to offset capital gains, if any, to the extent provided by the treasury regulations.
| | | | | | | | | | | | | |
| | | Fund | | Amount | | Expires | | |
| |
| | | Growth | | $ | 135,374,479 | | | | 2009 | | | |
| |
| |
| | | Growth | | | 71,971,609 | | | | 2010 | | | |
| |
| |
62 Annual Report 2008
| | | | | | | | | | | | | |
| | | Fund | | Amount | | Expires | | |
| |
| | | Growth | | | 15,973,738 | | | | 2016 | | | |
| |
| |
| | | Nationwide | | | 214,087,253 | | | | 2016 | | | |
| |
| |
| | | Money Market | | | 1,238 | | | | 2008 | | | |
| |
| |
| | | Money Market | | | 7,994 | | | | 2010 | | | |
| |
| |
| | | Money Market | | | 951 | | | | 2012 | | | |
| |
| |
| | | Money Market | | | 1,927 | | | | 2013 | | | |
| |
| |
| | | Money Market | | | 1,715 | | | | 2014 | | | |
| |
| |
| | | Money Market | | | 1,362 | | | | 2015 | | | |
| |
| |
| | | Money Market | | | 1,634,055 | | | | 2016 | | | |
| |
| |
As of October 31, 2008, the following Funds have additional capital loss carryforwards, subject to any applicable limitations on availability, to offset future capital gains, if any, as the successor of a merged Fund:
| | | | | | | | | | | | | |
| | | Fund | | Amount | | Expires | | |
| |
| | | Growth | | | 1,317,955 | | | | 2009 | | | |
| |
| |
| | | Growth | | | 1,317,955 | | | | 2010 | | | |
| |
| |
11. Subsequent Event
On December 3, 2008, the Board approved the extension until April 30, 2009 of the participation of Money Market in the Program. On December 4, 2008, Money Market paid a premium of $363,628, equivalent to 0.015% of Money Market’s NAV as of September 19, 2008, which was required for Money Market to participate in Program extension.
Effective December 31, 2008, Class B shares will be offered only (1) to current shareholders of Class B shares that wish to add their existing Class B investments in the same fund; (2) to current shareholders of Class B shares exchanging into Class B shares of another Nationwide Fund; and (3) through reinvestment of dividends or distributions that are paid on Class B shares in additional Class B shares. In addition, reinvestment of proceeds from a redemption of Class B shares (which, as described in the Prospectus, allows shareholders who redeem Class B shares to reinvest the proceeds in Class B shares within 30 days of the redemption and have any CDSC paid on such shares re-deposited in shares equal to the CDSC amount of the CDSC into the shareholder’s account) will be discontinued.
2008 Annual Report 63
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nationwide Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nationwide Growth Fund, Nationwide Fund and Nationwide Money Market Fund (three series of Nationwide Mutual Funds, hereafter referred to as the “Funds”) at October 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States.) Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2008
64 Annual Report 2008
Supplemental Information
(Unaudited)
1) Other Federal Tax Information
For the year ended October 31, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.
For the year ended October 31, 2008, the following Funds paid qualified dividend income:
| | | | | | | | | |
| | | | | Qualified
| | |
| | | | | Dividend
| | |
| | | Fund | | Income | | |
| |
| | | Growth | | $ | 364,076 | | | |
| |
| |
| | | Nationwide | | | 26,545,725 | | | |
| |
| |
For the taxable year ended October 31, 2008, the following percentage of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
| | | | | | | | | |
| | | | | Dividends
| | |
| | | | | Received
| | |
| | | Fund | | Deduction | | |
| |
| | | Growth | | | 100% | | | |
| |
| |
| | | Nationwide | | | 18% | | | |
| |
| |
| | | Money Market | | | — | | | |
| |
| |
The Funds designate the following amounts, or the maximum amount allowable under the Internal Revenue Code, as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Growth | | $ | — | | | |
| |
| |
| | | Nationwide | | | 62,339,601 | | | |
| |
| |
| | | Money Market | | | — | | | |
| |
| |
2008 Annual Report 65
Management Information
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
| |
| |
Charles E. Allen
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
since
July 2000 | | | Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management). | | | | 94 | | | | None |
| |
| |
Paula H.J. Cholmondeley
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
Since
July 2000 | | | Ms. Cholmondeley has served as Chief Executive Officer of Sorrel Group (management consulting group) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | | | | 94 | | | | Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology, Inc. (specialty chemicals) |
| |
| |
C. Brent DeVore3
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1940 | | | Trustee
since 1990 | | | Dr. DeVore is President of Otterbein College. | | | | 94 | | | | None |
| |
| |
Phyllis Kay Dryden
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
since
December 2004 | | | Ms. Dryden was a partner of Mitchell Madison Group LLC, a management consulting company from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | | | | 94 | | | | None |
| |
| |
Barbara L. Hennigar
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1935 | | | Trustee
Since
July 2000 | | | Retired. Ms. Hennigar was Executive Vice President of Oppenheimer Funds (an asset management company) from October 1992 until June 2000 and Chairman of Oppenheimer Funds Services from October 1999 to June 2000 and President & CEO from June 1992 to October 1999. | | | | 94 | | | | None |
| |
| |
66 Annual Report 2008
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Barbara I. Jacobs
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Trustee
since
December 2004 | | | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 – 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association — College Retirement Equities Fund). | | | | 94 | | | �� | None |
| |
| |
Douglas F. Kridler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Trustee
since
September 1997 | | | Mr. Kridler has been a Board Member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of the Columbus Foundation (a Columbus, Ohio-based foundation which manages over 1,300 individual endowment funds) since February 2002. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts; Chairman of the Greater Columbus Convention and Visitors Bureau; and Board Member of Columbus Downtown Development Corporation. | | | | 94 | | | | None |
| |
| |
2008 Annual Report 67
Management Information (Continued)
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
David C. Wetmore
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
Since
1995 and
Chairman
Since
February 2005 | | | Retired. Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology orientated investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr Wetmore served as the COO, CEO and Chairman of the board of several publicly-held software and services companies and as the managing partner of a “big 8” public accounting firm. | | | | 94 | | | | None |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 3 | | Mr. DeVore has served as President of Otterbein College since 1984. Mark Thresher, President and Chief Operating Officer of Nationwide Financial Services, Inc. (“NFS”) has served as a member of the Board of Trustees of Otterbein College since 2000, currently serving as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Funds’ investment adviser, and Nationwide Fund Distributors LLC (“NFD”), principal underwriter to the Trust, are wholly-owned subsidiaries of NFS. Mr. DeVore has announced his intention to retire as President of Otterbein College at the end of the 2008-2009 school year. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
68 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
| |
| |
Arden L. Shisler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1941 | | | Trustee
SinceFebruary 20004 | | | Retired. Mr. Shisler is the former President and Chief Executive Officer of KeB Transport, Inc., a trucking firm (2000 through 2002). He served as a consultant to KeB from January 2003 through December 2004. Since 1992, Mr. Shisler has also been Chairman of the Board for Nationwide Mutual Insurance Company.2 | | | | 94 | | | | Director of Nationwide Financial Services, Inc., Chairman of Nationwide Mutual Insurance Company2 |
| |
| |
Michael S. Spangler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1966 | | | President and Chief
Executive Officer sinceJune 20085 | | | Mr. Spangler is the President and Chief Executive Officer of Nationwide Funds Group, which includes NFA,2 Nationwide Fund Management LLC 2 and Nationwide Fund Distributors LLC 2, and is a Senior Vice President of Nationwide Financial Services, Inc.2 From May 2004 until May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. He was President of Touchstone Advisors, Inc., and Vice President and Director of Touchstone Investments Business Operations from July 2002 until May 2004. | | | | N/A | | | | N/A |
| |
| |
Stephen T. Grugeon
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Executive Vice President
and Chief Operating
Officer since June20086 | | | Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. 2 Mr. Grugeon is also President of NWD Investments, which represents certain asset management operations of Nationwide Mutual Insurance Company and includes Nationwide SA Capital Trust. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006, and Chief Operating Officer of Corviant Corporation, a subsidiary of NWD Investments, from 1999 through 2003.2 | | | | N/A | | | | N/A |
| |
| |
Joseph Finelli
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1957 | | | Treasurer
Since
September 2007 | | | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting and Operations for Nationwide Funds Group.2 From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
2008 Annual Report 69
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Dorothy Sanders
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Chief Compliance
Officer
since
October 2007 | | | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). From 2000 to November 2004, she was Vice President, Secretary and General Counsel of Fred Alger & Company, Incorporated. | | | | N/A | | | | N/A |
| |
| |
Eric E. Miller
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1953 | | | Secretary
Since
December 2002 | | | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
Doff Meyer
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Vice President
and
Chief Marketing
Officer
since
January 2008 | | | Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007). 2 From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. From January 2003 until September 2004, Ms. Meyer was an independent marketing consultant. | | | | N/A | | | | N/A |
| |
| |
70 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Michael Butler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1959 | | | Vice President
and Chief Distribution
Officer
since
January 2008 | | | Mr. Butler is Chief Distribution Officer of Nationwide Funds Group (since May 2007) and President of Nationwide Fund Distributors LLC (since January 2008). 2 From January 2006 through April 2007, Mr. Butler was Vice President – Mutual Fund Strategy of Nationwide Financial Services, Inc.2 and was Senior Vice President – Retirement Plan Sales of NFS Distributors, Inc.2 from 2000 until January 2006. | | | | N/A | | | | N/A |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | This position is held with an affiliated person or principal underwriter of the Trust. |
| 3 | | Directorships held in (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 4 | | Mr. Shisler resigned as a Trustee of the Trust effective September 19, 2008. |
| 5 | | Prior to June 30, 2008, Mr. Grugeon served as the Trust’s acting President and Chief Executive Officer. Prior to February 2008, Mr. John H. Grady was the President and Chief Executive Officer. |
| 6 | | From February 2008 through June 2008, Mr. Grugeon also served as acting President and Chief Executive Officer of Nationwide Mutual Funds, Nationwide Variable Insurance Trust and Nationwide Funds Group. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Funds’ website at www.nationwidefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
2008 Annual Report 71
1200 River Road, Suite 1000
Conshohocken, PA 19428
nationwidefunds.com
Nationwide, the Nationwide Framemark, Nationwide Funds and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds Group is a service mark of Nationwide Mutual Insurance Company
©2008 Nationwide Funds Group.
All rights reserved.
AR-CORE2 12/08
Nationwide Mutual Funds
Annual Report
October 31, 2008
NorthPointe Small Cap Growth Fund
NorthPointe Small Cap Value Fund
AnnualReport
October 31, 2008
| | | | |
| | | | Contents |
| | | | |
| 1 | | | Message to Shareholders |
| 5 | | | NorthPointe Small Cap Growth Fund |
| 19 | | | NorthPointe Small Cap Value Fund |
| 30 | | | Notes to Financial Statements |
| | | | |
Commentary provided by Nationwide Fund Advisors, investment adviser to Nationwide Funds. All opinions and estimates included in this report constitute the Adviser’s judgment as of the date of this report and are subject to change without notice. Portfolio composition is accurate as of the date of this report and is subject to change at any time.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The Nationwide Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on nationwidefunds.com or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
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Message to Shareholders
October 31, 2008
Dear Shareholder:
Challenging developments in financial markets, as well as in the global economy particularly during the latter months of the annual reporting period, have dominated the news cycles. Commentators have described the decline as “unprecedented in our lifetime.” Unfortunately, I cannot contradict the pundits. Nearly across the board, markets are posting negative performance numbers in the double digits. As for our funds, while some performed well relative to their peer groups, most have lost value.
The causes for the prevailing negative market conditions have been well documented in the press and elsewhere. The failure of high-profile financial institutions and the extraordinary government intervention have left no asset class unaffected. While I can’t give you good news at this time, I can urge you to keep these events in perspective.
It’s important to remember that economic markets never stand still. They’re volatile by nature. Of course, that premise is easier to accept when markets are going up. However, we approach investing from a long-term perspective. Staying focused, adhering to a plan and remaining aware of your options will help you endure various market conditions.
Nationwide® and Nationwide Funds Groupsm continue to work with investors to help them keep a solid grasp on their long-term financial goals. Our approach is deliberate and our commitment is firm. We do not foresee a fast recovery from the ongoing economic and market turbulence. However, we believe that our underlying investment principles are sound.
In closing, we thank you for entrusting your assets to Nationwide Funds Group.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
This report and the holdings provided are for informational purposes only, and are not intended as an offer or recommendation with respect to the purchase or sale of any security, option, future or other derivatives in such securities. Portfolio composition is accurate as of the date of this report and is subject to change at any time. There is no assurance that any specific securities mentioned in this report will remain in the fund’s portfolio. A more recent listing of each fund’s portfolio holdings can be found on the Trust’s internet site nationwidefunds.com.
There is no assurance that a diversified portfolio will produce better results than a nondiversified portfolio.
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
Investing in mutual funds involves risk, including the possible loss of principal. There is no assurance that the investment objective of any fund will be achieved.
Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective as determined by Lipper Inc.
Lipper Inc., a wholly owned subsidiary of Reuters, is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Barclays Capital U.S. Aggregate Bond Index[formerly Lehman Brothers (LB) U.S. Aggregate Index]: An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more) that is generally representative of the bond market as a whole.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
2008 Annual Report 1
Message to Shareholders (Continued)
October 31, 2008
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Russell 2000® Growth Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 2000® Index (the smallest 2,000 U.S. companies, based on market capitalization) with higher price-to-book ratios and higher forecasted growth values.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.
Small-company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility.
International investing involves additional risks, including currency fluctuations, differences in accounting standards, economic and political instability, illiquidity and higher trading costs, and differences in foreign regulations, all of which are magnified in emerging markets.
Value stocks can react differently to issuer, political, market and economic developments than the market overall and other types of stocks. This can cause the Fund to underperform other funds that use different investing styles.
The NorthPointe Small Cap Growth Fund may purchase securities in initial public offerings, which can be very volatile and carry high transaction costs.
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Class A shares at NAV (NorthPointe Small Cap Growth Fund) and for Institutional Class shares* at NAV (NorthPointe Small Cap Value Fund). Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
*Institutional Class shares are available only to certain investors.
Sales charge and fee information: NorthPointe Small Cap Growth Fund Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. Total returns reflect a waiver of part of the Fund’s fees for certain periods since inception, without which returns would have been lower.
Sales charge and fee information: The NorthPointe Small Cap Value Fund has no sales charge or 12b-1 fee. Total returns reflect a waiver of part of the Fund’s fees for certain periods since inception, without which returns would have been lower.
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 1-800-848-0920 to request a prospectus, or download a prospectus at nationwidefunds.com. Please read it carefully before investing any money.
The Funds’ adviser or its employees, may have a position in the securities named in this report. Except where otherwise indicated, the views and opinions expressed herein are those of Nationwide Funds Group as of the date noted, are subject to change at any time, and may not come to pass.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428. NFD is not affiliated with NorthPointe Capital® LLC.
Nationwide Funds Group (NFG) is the mutual fund arm of Nationwide Financial Services, Inc. (NYSE: NFS). Based in Conshohocken, Pa., a suburb of Philadelphia, NFG comprises Nationwide Fund Advisors, Nationwide
2 Annual Report 2008
Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to the Nationwide Funds. NFS is an affiliate of Nationwide Mutual Insurance Company.
2008 Annual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the year ended October 31, 2008.
The economic conditions during the reporting period were driven by events that began to take shape in mid-year 2007 as the bursting of the U.S. housing bubble triggered a number of collateral impacts across the global economy. Specifically, substantial dislocations occurred in global financial markets. The financial imbalances and subprime mortgage default issues that became obvious to everyone in late 2007 mushroomed into a global financial crisis marked by diminishing liquidity and plunging asset values.
Financial services and cyclical stocks were the areas most aggressively pressured during the reporting period as the economy slowed and the residential housing market and the mortgages backing it soured. These problems included: (1) the failures of several prominent U.S. financial institutions; (2) the U.S. government’s takeover of Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market); (3) the reorganization of Wall Street’s remaining investment banks (The Goldman Sachs Group, Inc. and Morgan Stanley) as bank holding companies; and (4) the need to pass a $700 billion Troubled Asset Relief Program (TARP) bill by the U.S. Congress.
In short, the reporting period was filled with events that have not happened in more than 50 years, and, in many cases, since the Great Depression. Worldwide recession fears, fueled by these financial problems, resulted in sizable double-digit declines in nearly all segments of the investment market as well as increased volatility throughout the reporting period, along with rapid changes in relative performance among economic sectors. This was especially true in commodities; prices both surged and fell sharply during the course of the reporting period.
Large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, fell 36% during the reporting period as credit markets deteriorated and market volatility reached record levels. Mid-cap U.S. equities, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 37%, and small-cap U.S. equities, as measured by the Russell 2000® Index, declined 34%.
In general, international stocks were even more negatively affected than U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost more than 46% during the reporting period, including a loss of more than 34% during the last three months of the period. Emerging market stocks, as measured by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, lost more than 56% during the reporting period, including a loss of more than 44% during the last three months of the period.
The reporting period was a time of general disappointment for fixed-income investors as well. The broad-based Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] gained a mere 0.31%. Continuing credit market woes, however, coupled with uncertainty about the extent of government intervention to help ease the liquidity crunch, served to drag down U.S. investment-grade corporate bonds by nearly 14% during the reporting period.
4 Annual Report 2008
| |
| NorthPointe Small Cap Growth Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the NorthPointe Small Cap Growth Fund (Class A at NAV) registered -51.71% versus -37.87% for its benchmark, the Russell 2000® Growth Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Small-Cap Growth Funds (consisting of 594 funds as of October 31, 2008) was -42.01% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund benefited by the financials and consumer staples sectors. Individual standouts for the reporting period included health-care sector Fund holdings Adams Respiratory Therapeutics, Inc. and PharMerica Corp., and financials sector Fund holding EZCORP, Inc. Adams Respiratory Therapeutics, a specialty pharmaceutical company focused on the treatment of respiratory disorders, was acquired by another firm during the reporting period. PharMerica is a provider of pharmaceutical services to patients in hospitals and long-term care facilities; the company has continued to gain market share due to increased customer penetration and the opening of new accounts. EZCORP owns and operates pawnshops that serve as sources for consumer credit and retail previously owned merchandise. The company reported better-than-expected financial results during the reporting period and typically benefits from periods of economic weakness. EZCORP’s performance has been driven by its recent acquisitions of several pawnshops.
What areas of investment detracted from Fund performance?
The Fund’s positions in technology and industrials proved to be the biggest detractors from performance. Within technology, the Fund was overweight in the semiconductor & semiconductor equipment industry, which was one of the sector’s worst performers. In industrials, the Fund was overweight in the machinery industry, which was the worst relative performer in the sector.
On a stock-specific level, the most significant detractors from Fund performance were industrial fund holding Horizon Lines, Inc and technology holdings EMCORE Corp. and Silicon Motion Technology Corp. Horizon Lines is experiencing a decrease in demand amid an economic slowdown in Alaska and Hawaii. We have reduced the Fund’s exposure to Horizon, but we believe the company offers compelling long-term growth. EMCORE Corp, which offers products for the broadband, fiber optic, satellite and terrestrial solar power markets, was another laggard during the reporting period. We view these concerns as a near-term headwind, but we like the story over the medium to long term; the Fund continues to hold a position in EMCORE. The Fund’s shares of Silicon Motion Technology Corp., a semiconductor products company for the multimedia consumer electronics market, missed our earnings expectations, and the company lowered its full-year guidance. The company’s weakness is being driven by a slowdown in consumer spending.
What is your outlook for the near term?
Global financial markets are experiencing unprecedented levels of distress. Consequently, the visibility into the near term is extremely limited. The long-term historical track record of equities, however, and especially small-capitalization stocks, bodes well for the future. We believe that the key to success is adhering to a disciplined investment approach focused on earnings, the key driver of price appreciation. Our investment approach is to apply a rigorous investment process that indentifies best-in-class companies with solid fundamentals. This has been a hallmark of our investment style for many years, regardless of prevailing market conditions.
We recognize that we may be early in our estimations; however, as we look at the solid future growth prospects of the Fund’s holdings into 2009, we believe our stock selections are prudent ones. As we look forward, we remain optimistic about the Fund’s prospects as we head into the next year.
Subadviser:
NorthPointe Capital® LLC
Portfolio Manager:
Carl P. Wilk, CFP and Karl Knas, CFA
2008 Annual Report 5
| |
| Fund Performance | NorthPointe Small Cap Growth Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | | | | | Expense
| | Expense
|
| | | | | 1 Yr. | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC2 | | | -51.71% | | | | -6.04% | | | | 1.55% | | | | 1.40% | |
| | | w/SC3 | | | -54.50% | | | | -7.39% | | | | | | | | | |
| |
| |
| Class B | | w/o SC2 | | | -52.08% | | | | -6.68% | | | | 2.25% | | | | 2.10% | |
| | | w/SC4 | | | -54.26% | | | | -7.03% | | | | | | | | | |
| |
| |
| Class C | | w/o SC2 | | | -52.08% | | | | -6.68% | | | | 2.25% | | | | 2.10% | |
| | | w/SC5 | | | -52.52% | | | | -6.68% | | | | | | | | | |
| |
| |
Class R6 | | | | | -51.85% | | | | -6.27% | | | | 1.95% | | | | 1.80% | |
| |
| |
Institutional Service Class2 | | | | | -51.53% | | | | -5.74% | | | | 1.25% | | | | 1.10% | |
| |
| |
Institutional Class2 | | | | | -51.57% | | | | -5.74% | | | | 1.25% | | | | 1.10% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on September 29, 2004. |
| |
| 2 | | These returns do not reflect the effects of sales charges (SC). |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years and is not deducted from returns after 6 years. |
| |
| 5 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 6 | | Not subject to any sales charges. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the NorthPointe Small Cap Growth Fund, Russell 2000 Growth Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell 2000 is an unmanaged index of approximately 2,000 companies with small market capitalizations relative to the market capilizations of other U.S. companies. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
6 Annual Report 2008
| |
| Shareholder | NorthPointe Small Cap Growth Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| NorthPointe Small Cap Growth Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 626.83 | | | | 5.86 | | | | 1.43 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.93 | | | | 7.30 | | | | 1.43 | |
| |
| |
| Class B Shares | | | Actual | | | | 1,000.00 | | | | 624.60 | | | | 8.91 | | | | 2.18 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.17 | | | | 11.10 | | | | 2.18 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 624.60 | | | | 8.45 | | | | 2.07 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,014.73 | | | | 10.54 | | | | 2.07 | |
| |
| |
| Class R Shares | | | Actual | | | | 1,000.00 | | | | 626.06 | | | | 6.87 | | | | 1.68 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,016.69 | | | | 8.55 | | | | 1.68 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 628.36 | | | | 4.52 | | | | 1.10 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.58 | | | | 5.62 | | | | 1.10 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 627.71 | | | | 4.51 | | | | 1.10 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.59 | | | | 5.61 | | | | 1.10 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 7
| |
| Portfolio Summary | NorthPointe Small Cap Growth Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 98.3% | |
| Repurchase Agreement | | | 2.1% | |
| Liabilities in excess of other assets | | | -0.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Software | | | 7.9% | |
| Health Care Providers & Services | | | 7.6% | |
| Internet Software & Services | | | 6.8% | |
| Textiles, Apparel & Luxury Goods | | | 6.2% | |
| Road & Rail | | | 6.1% | |
| Semiconductors & Semiconductor Equipment | | | 4.4% | |
| Aerospace & Defense | | | 4.4% | |
| Electrical Equipment | | | 4.3% | |
| Specialty Retail | | | 4.1% | |
| Commercial Services & Supplies | | | 3.8% | |
| Other | | | 44.4% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| Jarden Corp. | | | 2.3% | |
| Cubist Pharmaceuticals, Inc., | | | 2.3% | |
| Triumph Group, Inc. | | | 2.2% | |
| Central European Distribution Corp. | | | 2.2% | |
| Bankrate, Inc., | | | 2.2% | |
| Chattem, Inc. | | | 2.1% | |
| LMI Aerospace, Inc., | | | 2.1% | |
| Scientific Games Corp., Class A | | | 2.1% | |
| DG FastChannel, Inc. | | | 2.1% | |
| Iconix Brand Group, Inc. | | | 2.1% | |
| Other | | | 78.3% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
8 Annual Report 2008
Statement of Investments
October 31, 2008
NorthPointe Small Cap Growth Fund
| | | | | | | | | |
| Common Stocks 98.3% |
| | | | | | | | | |
| | | |
Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Aerospace & Defense 4.4% |
| LMI Aerospace, Inc.* | | | 62,715 | | | $ | 957,658 | |
| Triumph Group, Inc. | | | 22,987 | | | | 1,008,210 | |
| | | | | | | | | |
| | | | | | | | 1,965,868 | |
| | | | | | | | | |
| |
| |
Beverages 2.2% |
| Central European Distribution Corp.* | | | 34,584 | | | | 995,673 | |
| | | | | | | | | |
| |
| |
Biotechnology 2.3% |
| Cubist Pharmaceuticals, Inc.* | | | 39,910 | | | | 1,013,315 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 3.8% |
| Cenveo, Inc.* | | | 94,600 | | | | 456,918 | |
| Hill International, Inc.* | | | 83,015 | | | | 521,334 | |
| On Assignment, Inc.* | | | 112,083 | | | | 728,540 | |
| | | | | | | | | |
| | | | | | | | 1,706,792 | |
| | | | | | | | | |
| |
| |
Communications Equipment 3.5% |
| CommScope, Inc.* | | | 6,267 | | | | 92,188 | |
| DG FastChannel, Inc.* | | | 52,814 | | | | 935,336 | |
| F5 Networks, Inc.* | | | 21,688 | | | | 538,296 | |
| | | | | | | | | |
| | | | | | | | 1,565,820 | |
| | | | | | | | | |
| |
| |
Consumer Finance 1.3% |
| World Acceptance Corp.* | | | 30,814 | | | | 569,443 | |
| | | | | | | | | |
| |
| |
Distributors 0.7% |
| LKQ Corp.* | | | 26,727 | | | | 305,757 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 1.6% |
| ITT Educational Services, Inc.* | | | 8,169 | | | | 716,013 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 4.3% |
| Energy Conversion Devices, Inc.* | | | 15,141 | | | | 516,914 | |
| JA Solar Holdings Co. Ltd. ADR – CN* | | | 100,690 | | | | 483,312 | |
| Woodward Governor Co. | | | 28,452 | | | | 913,309 | |
| | | | | | | | | |
| | | | | | | | 1,913,535 | |
| | | | | | | | | |
| |
| |
Electronic Equipment & Instruments 1.6% |
| TTM Technologies, Inc.* | | | 100,000 | | | | 716,000 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 1.8% |
| Superior Energy Services, Inc.* | | | 10,000 | | | | 213,200 | |
| Willbros Group, Inc.* | | | 37,497 | | | | 580,829 | |
| | | | | | | | | |
| | | | | | | | 794,029 | |
| | | | | | | | | |
| |
| |
Food Products 1.6% |
| Flowers Foods, Inc. | | | 23,517 | | | | 697,279 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 2.7% |
| Inverness Medical Innovations, Inc.* | | | 35,795 | | | | 685,474 | |
| Zoll Medical Corp.* | | | 22,800 | | | | 549,024 | |
| | | | | | | | | |
| | | | | | | | 1,234,498 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 7.6% |
| Bio-Reference Labs, Inc.* | | | 29,137 | | | | 716,479 | |
| Genoptix, Inc.* | | | 18,087 | | | | 604,829 | |
| IPC The Hospitalist Co., Inc.* | | | 37,221 | | | | 757,820 | |
| PharMerica Corp.* | | | 30,350 | | | | 623,085 | |
| Sun Healthcare Group, Inc.* | | | 63,156 | | | | 725,031 | |
| | | | | | | | | |
| | | | | | | | 3,427,244 | |
| | | | | | | | | |
| |
| |
Health Care Technology 0.9% |
| Phase Forward, Inc.* | | | 29,850 | | | | 425,960 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 3.4% |
| Scientific Games Corp., Class A* | | | 53,062 | | | | 955,116 | |
| Texas Roadhouse, Inc., Class A* | | | 80,415 | | | | 564,513 | |
| | | | | | | | | |
| | | | | | | | 1,519,629 | |
| | | | | | | | | |
| |
| |
Household Durables 2.3% |
| Jarden Corp.* | | | 58,466 | | | | 1,040,695 | |
| | | | | | | | | |
| |
| |
Insurance 1.9% |
| National Interstate Corp. | | | 48,796 | | | | 853,930 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 6.8% |
| Bankrate, Inc.* | | | 30,000 | | | | 987,300 | |
| Interwoven, Inc.* | | | 68,875 | | | | 868,514 | |
| j2 Global Communications, Inc.* | | | 33,424 | | | | 538,795 | |
| Web.com Group, Inc.* | | | 133,914 | | | | 657,517 | |
| | | | | | | | | |
| | | | | | | | 3,052,126 | |
| | | | | | | | | |
| |
| |
Life Sciences Tools & Services 3.1% |
| Bio-Rad Laboratories, Inc., Class A* | | | 7,834 | | | | 668,867 | |
| Bruker Corp.* | | | 85,086 | | | | 348,002 | |
| Kendle International, Inc.* | | | 21,202 | | | | 383,120 | |
| | | | | | | | | |
| | | | | | | | 1,399,989 | |
| | | | | | | | | |
| |
| |
Machinery 2.4% |
| Flow International Corp.* | | | 144,855 | | | | 556,243 | |
| Titan Machinery, Inc.* | | | 42,988 | | | | 532,192 | |
| | | | | | | | | |
| | | | | | | | 1,088,435 | |
| | | | | | | | | |
| |
| |
Marine 1.3% |
| Horizon Lines, Inc., Class A | | | 126,096 | | | | 591,390 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 1.2% |
| ATP Oil & Gas Corp.* | | | 43,558 | | | | 524,438 | |
| | | | | | | | | |
| |
| |
Personal Products 2.1% |
| Chattem, Inc.* | | | 12,755 | | | | 965,171 | |
| | | | | | | | | |
| | | | | | | | |
2008 Annual Report 9
Statement of Investments (Continued)
October 31, 2008
NorthPointe Small Cap Growth Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | |
Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Pharmaceuticals 3.3% |
| Medicines Co. (The)* | | | 38,926 | | | $ | 678,480 | |
| ViroPharma, Inc.* | | | 65,416 | | | | 820,317 | |
| | | | | | | | | |
| | | | | | | | 1,498,797 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 1.5% |
| Anworth Mortgage Asset Corp. | | | 113,511 | | | | 665,174 | |
| | | | | | | | | |
| |
| |
Road & Rail 6.1% |
| Celadon Group, Inc.* | | | 50,850 | | | | 543,587 | |
| Genesee & Wyoming, Inc., Class A* | | | 18,947 | | | | 631,882 | |
| Heartland Express, Inc. | | | 44,504 | | | | 682,691 | |
| Old Dominion Freight Line, Inc.* | | | 28,518 | | | | 865,236 | |
| | | | | | | | | |
| | | | | | | | 2,723,396 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 4.4% |
| Diodes, Inc.* | | | 16,202 | | | | 160,076 | |
| EMCORE Corp.* | | | 167,803 | | | | 597,379 | |
| Monolithic Power Systems, Inc.* | | | 36,710 | | | | 623,703 | |
| ON Semiconductor Corp.* | | | 115,542 | | | | 590,419 | |
| | | | | | | | | |
| | | | | | | | 1,971,577 | |
| | | | | | | | | |
| |
| |
Software 7.9% |
| Double-Take Software, Inc.* | | | 53,765 | | | | 397,861 | |
| JDA Software Group, Inc.* | | | 63,016 | | | | 899,868 | |
| MICROS Systems, Inc.* | | | 17,923 | | | | 305,229 | |
| Radiant Systems, Inc.* | | | 131,616 | | | | 693,616 | |
| Smith Micro Software, Inc.* | | | 124,056 | | | | 775,350 | |
| Vasco Data Security International, Inc.* | | | 44,112 | | | | 499,789 | |
| | | | | | | | | |
| | | | | | | | 3,571,713 | |
| | | | | | | | | |
| |
| |
Specialty Retail 4.1% |
| Guess?, Inc. | | | 15,717 | | | | 342,159 | |
| Gymboree Corp.* | | | 25,000 | | | | 646,500 | |
| Wet Seal, Inc. (The), Class A* | | | 290,000 | | | | 852,600 | |
| | | | | | | | | |
| | | | | | | | 1,841,259 | |
| | | | | | | | | |
| |
| |
| | | | Shares or
Principal Amount | | | | Value | |
| |
| |
Textiles, Apparel & Luxury Goods 6.2% |
| Deckers Outdoor Corp.* | | | 9,660 | | | | 819,748 | |
| G-III Apparel Group Ltd.* | | | 42,366 | | | | 585,074 | |
| Iconix Brand Group, Inc.* | | | 85,000 | | | | 925,650 | |
| Volcom, Inc.* | | | 36,871 | | | | 476,742 | |
| | | | | | | | | |
| | | | | | | | 2,807,214 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 44,162,159 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 2.1% |
| | | | | | | | | |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $936,493, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $955,217 | | $ | 936,487 | | | | 936,487 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $63,372,375) (a) — 100.4% | | | 45,098,646 | |
Liabilities in excess of other assets — (0.4)% | | | | | | | (159,845 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 44,938,801 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to statements of investments for tax unrealized appreciation / (depreciation) of securities. |
| | |
| ADR | | American Depositary Receipt |
| |
| CN | | China |
The accompanying notes are an integral part of these financial statements.
10 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | NorthPointe
| |
| | | | Small Cap Growth
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $62,435,888) | | | $ | 44,162,159 | |
| Repurchase agreements, at value and cost | | | | 936,487 | |
| | | | | | |
| Total Investments | | | | 45,098,646 | |
| | | | | | |
| Interest and dividends receivable | | | | 30,138 | |
| Receivable for capital shares issued | | | | 33,978 | |
| Receivable for investments sold | | | | 1,556,187 | |
| Prepaid expenses and other assets | | | | 44,463 | |
| | | | | | |
| Total Assets | | | | 46,763,412 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 605,453 | |
| Payable for capital shares redeemed | | | | 1,144,823 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 42,673 | |
| Fund administration fees | | | | 5,391 | |
| Distribution fees | | | | 1,211 | |
| Trustee fees | | | | 149 | |
| Compliance program costs (Note 3) | | | | 369 | |
| Custodian fees | | | | 689 | |
| Other | | | | 23,853 | |
| | | | | | |
| Total Liabilities | | | | 1,824,611 | |
| | | | | | |
Net Assets | | | $ | 44,938,801 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 98,175,051 | |
| Accumulated net realized losses from investment transactions | | | | (34,962,521 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (18,273,729 | ) |
| | | | | | |
Net Assets | | | $ | 44,938,801 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 913 | |
| Class B Shares | | | | 755 | |
| Class C Shares | | | | 754 | |
| Class R Shares | | | | 2,736,520 | |
| Institutional Service Class Shares | | | | 785 | |
| Institutional Class Shares | | | | 42,199,074 | |
| | | | | | |
| Total | | | $ | 44,938,801 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 153 | |
| Class B Shares | | | | 130 | |
| Class C Shares | | | | 130 | |
| Class R Shares | | | | 462,887 | |
| Institutional Service Class Shares | | | | 129 | |
| Institutional Class Shares | | | | 6,949,405 | |
| | | | | | |
| Total | | | | 7,412,834 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 11
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | NorthPointe
| |
| | | | Small Cap Growth
| |
| | | | Fund | |
| | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 5.98 | (a) |
| Class B Shares (b) | | | $ | 5.79 | (a) |
| Class C Shares (c) | | | $ | 5.79 | (a) |
| Class R Shares | | | $ | 5.91 | |
| Institutional Service Class Shares | | | $ | 6.07 | (a) |
| Institutional Class Shares | | | $ | 6.07 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 6.34 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | The NAV reported above represents the traded NAV at October 31, 2008. |
| |
| (b) | | For Class B shares, the redemption price per share varies by the length of time shares are held. |
| |
| (c) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
12 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | NorthPointe
| |
| | | | Small Cap
| |
| | | Growth Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 76,221 | |
| Dividend income | | | | 201,560 | |
| | | | | | |
| Total Income | | | | 277,781 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 876,576 | |
| Fund administration fees | | | | 90,575 | |
| Distribution fees Class A | | | | 4 | |
| Distribution fees Class B | | | | 11 | |
| Distribution fees Class C | | | | 17 | |
| Distribution fees Class R | | | | 21,280 | |
| Administrative servicing fees Class A | | | | 2 | |
| Administrative servicing fees Class R | | | | 1,538 | |
| Registration and filing fees | | | | 5,589 | |
| Professional fees | | | | 14,263 | |
| Printing fees | | | | 44,629 | |
| Trustee fees | | | | 4,971 | |
| Custodian fees | | | | 11,148 | |
| Other | | | | 16,846 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 1,087,449 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (3,511 | ) |
| Expenses reimbursed by Advisor | | | | (49,007 | ) |
| | | | | | |
| Net Expenses | | | | 1,034,931 | |
| | | | | | |
NET INVESTMENT LOSS | | | | (757,150 | ) |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (34,804,474 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (28,137,430 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (62,941,904 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (63,699,054 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 13
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | NorthPointe Small Cap Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment loss | | | $ | (757,150 | ) | | | $ | (415,364 | ) |
| Net realized gains (losses) from investment transactions | | | | (34,804,474 | ) | | | | 10,471,639 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (28,137,430 | ) | | | | 2,965,944 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (63,699,054 | ) | | | | 13,022,219 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (153 | ) | | | | (1,561 | ) |
| Class B | | | | (130 | ) | | | | (116 | ) |
| Class C | | | | (130 | ) | | | | (116 | ) |
| Class R | | | | (454,223 | ) | | | | (116 | ) |
| Institutional Service Class | | | | (130 | ) | | | | (116 | ) |
| Institutional Class | | | | (9,598,583 | ) | | | | (5,337,471 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (10,053,349 | ) | | | | (5,339,496 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (6,430,569 | ) | | | | 53,031,272 | |
| | | | | | | | | | | |
| Change in net assets | | | | (80,182,972 | ) | | | | 60,713,995 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 125,121,773 | | | | | 64,407,778 | |
| | | | | | | | | | | |
| End of period | | | $ | 44,938,801 | | | | $ | 125,121,773 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | — | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | – | | | | $ | 6 | |
| Dividends reinvested | | | | 153 | | | | | 1,561 | |
| Cost of shares redeemed (a) | | | | – | | | | | (18,208 | ) |
| | | | | | | | | | | |
| Total Class A | | | | 153 | | | | | (16,641 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | – | |
| Dividends reinvested | | | | 130 | | | | | 116 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class B | | | | 130 | | | | | 116 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | – | |
| Dividends reinvested | | | | 130 | | | | | 116 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 130 | | | | | 116 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 1,323,771 | | | | | 5,909,787 | |
| Dividends reinvested | | | | 454,223 | | | | | 116 | |
| Cost of shares redeemed (a) | | | | (1,359,238 | ) | | | | (561,866 | ) |
| | | | | | | | | | | |
| Total Class R | | | | 418,756 | | | | | 5,348,037 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
14 Annual Report 2008
| | | | | | | | | | | |
| | | | NorthPointe Small Cap Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | – | | | | $ | – | |
| Dividends reinvested | | | | 130 | | | | | 116 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 130 | | | | | 116 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 31,507,106 | | | | | 46,133,128 | |
| Dividends reinvested | | | | 9,041,759 | | | | | 5,249,876 | |
| Cost of shares redeemed (a) | | | | (47,398,733 | ) | | | | (3,683,476 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | (6,849,868 | ) | | | | 47,699,528 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (6,430,569 | ) | | | $ | 53,031,272 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | – | | | | | – | |
| Reinvested | | | | 14 | | | | | 127 | |
| Redeemed | | | | – | | | | | (1,451 | ) |
| | | | | | | | | | | |
| Total Class A Shares | | | | 14 | | | | | (1,324 | ) |
| | | | | | | | | | | |
Class B Shares | | | | | | | | | | |
| Issued | | | | – | | | | | – | |
| Reinvested | | | | 11 | | | | | 10 | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class B Shares | | | | 11 | | | | | 10 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | – | | | | | – | |
| Reinvested | | | | 11 | | | | | 10 | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 11 | | | | | 10 | |
| | | | | | | | | | | |
Class R Shares | | | | | | | | | | |
| Issued | | | | 139,567 | | | | | 465,541 | |
| Reinvested | | | | 39,740 | | | | | 10 | |
| Redeemed | | | | (139,221 | ) | | | | (42,859 | ) |
| | | | | | | | | | | |
| Total Class R Shares | | | | 40,086 | | | | | 422,692 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | – | |
| Reinvested | | | | 11 | | | | | 9 | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 11 | | | | | 9 | |
| | | | | | | | | | | |
| |
| (a) | Includes redemption fees — see Note 4 to Financial Statements.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 15
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | NorthPointe Small Cap Growth Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 3,034,533 | | | | | 3,632,263 | |
| Reinvested | | | | 774,123 | | | | | 423,377 | |
| Redeemed | | | | (5,570,554 | ) | | | | (275,778 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | (1,761,898 | ) | | | | 3,779,862 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (1,721,765 | ) | | | | 4,201,259 | |
| | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
16 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
NorthPointe Small Cap Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | �� | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 13 | .56 | | | | (0 | .10) | | | | (6 | .38) | | | | (6 | .48) | | | | (1 | .10) | | | | (1 | .10) | | | $ | 5 | .98 | | | | (51 | .71%) | | | $ | 913 | | | | | 1 | .47% | | | | (1 | .05%) | | | | 1 | .59% | | | | 163 | .80% | | |
| Year Ended October 31, 2007 (f) | | | $ | 12 | .96 | | | | (0 | .11) | | | | 1 | .78 | | | | 1 | .67 | | | | (1 | .07) | | | | (1 | .07) | | | $ | 13 | .56 | | | | 13 | .71% | | | $ | 1,889 | | | | | 1 | .38% | | | | (0 | .85%) | | | | 1 | .42% | | | | 85 | .86% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .67 | | | | (0 | .09) | | | | 2 | .39 | | | | 2 | .30 | | | | (1 | .01) | | | | (1 | .01) | | | $ | 12 | .96 | | | | 20 | .98% | | | $ | 18,969 | | | | | 1 | .40% | | | | (0 | .97%) | | | | 1 | .45% | | | | 98 | .72% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .47 | | | | (0 | .13) | | | | 1 | .33 | | | | 1 | .20 | | | | – | | | | | – | | | | $ | 11 | .67 | | | | 11 | .46% | | | $ | 1,167 | | | | | 1 | .58% | | | | (1 | .11%) | | | | 1 | .69% | | | | 144 | .08% | | |
| Period Ended October 31, 2004 (g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .48 | | | | 0 | .47 | | | | – | | | | | – | | | | $ | 10 | .47 | | | | 4 | .70% | | | $ | 1,047 | | | | | 1 | .50% | | | | (1 | .17%) | | | | 9 | .82% | | | | 0 | .48% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 13 | .26 | | | | (0 | .17) | | | | (6 | .20) | | | | (6 | .37) | | | | (1 | .10) | | | | (1 | .10) | | | $ | 5 | .79 | | | | (52 | .08%) | | | $ | 755 | | | | | 2 | .02% | | | | (1 | .76%) | | | | 2 | .03% | | | | 163 | .80% | | |
| Year Ended October 31, 2007 (f) | | | $ | 12 | .77 | | | | (0 | .17) | | | | 1 | .73 | | | | 1 | .56 | | | | (1 | .07) | | | | (1 | .07) | | | $ | 13 | .26 | | | | 13 | .00% | | | $ | 1,573 | | | | | 2 | .00% | | | | (1 | .36%) | | | | 2 | .10% | | | | 85 | .86% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .58 | | | | (0 | .21) | | | | 2 | .41 | | | | 2 | .20 | | | | (1 | .01) | | | | (1 | .01) | | | $ | 12 | .77 | | | | 20 | .22% | | | $ | 1,392 | | | | | 2 | .10% | | | | (1 | .73%) | | | | 2 | .22% | | | | 98 | .72% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .46 | | | | (0 | .20) | | | | 1 | .32 | | | | 1 | .12 | | | | – | | | | | – | | | | $ | 11 | .58 | | | | 10 | .71% | | | $ | 1,158 | | | | | 2 | .02% | | | | (1 | .79%) | | | | 2 | .10% | | | | 144 | .08% | | |
| Period Ended October 31, 2004 (g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .47 | | | | 0 | .46 | | | | – | | | | | – | | | | $ | 10 | .46 | | | | 4 | .60% | | | $ | 1,046 | | | | | 2 | .07% | | | | (1 | .78%) | | | | 9 | .13% | | | | 0 | .48% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 13 | .26 | | | | (0 | .17) | | | | (6 | .20) | | | | (6 | .37) | | | | (1 | .10) | | | | (1 | .10) | | | $ | 5 | .79 | | | | (52 | .08%) | | | $ | 754 | | | | | 2 | .07% | | | | (1 | .81%) | | | | 2 | .52% | | | | 163 | .80% | | |
| Year Ended October 31, 2007 (f) | | | $ | 12 | .77 | | | | (0 | .17) | | | | 1 | .73 | | | | 1 | .56 | | | | (1 | .07) | | | | (1 | .07) | | | $ | 13 | .26 | | | | 13 | .00% | | | $ | 1,573 | | | | | 2 | .00% | | | | (1 | .36%) | | | | 2 | .10% | | | | 85 | .86% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .58 | | | | (0 | .21) | | | | 2 | .41 | | | | 2 | .20 | | | | (1 | .01) | | | | (1 | .01) | | | $ | 12 | .77 | | | | 20 | .22% | | | $ | 1,392 | | | | | 2 | .10% | | | | (1 | .73%) | | | | 2 | .14% | | | | 98 | .72% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .46 | | | | (0 | .20) | | | | 1 | .32 | | | | 1 | .12 | | | | – | | | | | – | | | | $ | 11 | .58 | | | | 10 | .71% | | | $ | 1,158 | | | | | 2 | .02% | | | | (1 | .79%) | | | | 2 | .11% | | | | 144 | .08% | | |
| Period Ended October 31, 2004 (g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .47 | | | | 0 | .46 | | | | – | | | | | – | | | | $ | 10 | .46 | | | | 4 | .60% | | | $ | 1,046 | | | | | 2 | .07% | | | | (1 | .78%) | | | | 9 | .13% | | | | 0 | .48% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 13 | .45 | | | | (0 | .13) | | | | (6 | .31) | | | | (6 | .44) | | | | (1 | .10) | | | | (1 | .10) | | | $ | 5 | .91 | | | | (51 | .85%) | | | $ | 2,736,520 | | | | | 1 | .64% | | | | (1 | .33%) | | | | 1 | .68% | | | | 163 | .80% | | |
| Year Ended October 31, 2007 (f) | | | $ | 12 | .91 | | | | (0 | .11) | | | | 1 | .72 | | | | 1 | .61 | | | | (1 | .07) | | | | (1 | .07) | | | $ | 13 | .45 | | | | 13 | .28% | | | $ | 5,685,988 | | | | | 1 | .56% | | | | (0 | .87%) | | | | 1 | .69% | | | | 85 | .86% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .63 | | | | (0 | .14) | | | | 2 | .43 | | | | 2 | .29 | | | | (1 | .01) | | | | (1 | .01) | | | $ | 12 | .91 | | | | 20 | .96% | | | $ | 1,407 | | | | | 1 | .23% | | | | (1 | .10%) | | | | 1 | .23% | | | | 98 | .72% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .46 | | | | (0 | .16) | | | | 1 | .33 | | | | 1 | .17 | | | | – | | | | | – | | | | $ | 11 | .63 | | | | 11 | .19% | | | $ | 1,163 | | | | | 1 | .55% | | | | (1 | .41%) | | | | 1 | .56% | | | | 144 | .08% | | |
| Period Ended October 31, 2004 (g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .47 | | | | 0 | .46 | | | | – | | | | | – | | | | $ | 10 | .46 | | | | 4 | .60% | | | $ | 1,046 | | | | | 1 | .73% | | | | (1 | .17%) | | | | 8 | .65% | | | | 0 | .48% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 13 | .70 | | | | (0 | .08) | | | | (6 | .45) | | | | (6 | .53) | | | | (1 | .10) | | | | (1 | .10) | | | $ | 6 | .07 | | | | (51 | .53%) | | | $ | 785 | | | | | 1 | .10% | | | | (0 | .84%) | | | | 1 | .17% | | | | 163 | .80% | | |
| Year Ended October 31, 2007 (f) | | | $ | 13 | .04 | | | | (0 | .05) | | | | 1 | .78 | | | | 1 | .73 | | | | (1 | .07) | | | | (1 | .07) | | | $ | 13 | .70 | | | | 14 | .11% | | | $ | 1,621 | | | | | 1 | .02% | | | | (0 | .38%) | | | | 1 | .11% | | | | 85 | .86% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .70 | | | | (0 | .10) | | | | 2 | .45 | | | | 2 | .35 | | | | (1 | .01) | | | | (1 | .01) | | | $ | 13 | .04 | | | | 21 | .38% | | | $ | 1,420 | | | | | 1 | .35% | | | | (0 | .77%) | | | | 1 | .35% | | | | 98 | .72% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .47 | | | | (0 | .10) | | | | 1 | .33 | | | | 1 | .23 | | | | – | | | | | – | | | | $ | 11 | .70 | | | | 11 | .75% | | | $ | 1,170 | | | | | 1 | .19% | | | | (0 | .87%) | | | | 1 | .40% | | | | 144 | .08% | | |
| Period Ended October 31, 2004 (g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .48 | | | | 0 | .47 | | | | – | | | | | – | | | | $ | 10 | .47 | | | | 4 | .70% | | | $ | 1,047 | | | | | 1 | .04% | | | | (0 | .74%) | | | | 8 | .22% | | | | 0 | .48% | | |
(a) Excludes sales charge.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(f) Per share calculations were performed using average shares method.
(g) For the period from September 29, 2004 (commencement of operations) through October 31, 2004.
- - Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 17
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
NorthPointe Small Cap Growth Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 13 | .71 | | | | (0 | .08) | | | | (6 | .46) | | | | (6 | .54) | | | | (1 | .10) | | | | (1 | .10) | | | $ | 6 | .07 | | | | (51 | .57%) | | | $ | 42,199,074 | | | | | 1 | .10% | | | | (0 | .80%) | | | | 1 | .15% | | | | 163 | .80% | | |
| Year Ended October 31, 2007 (f) | | | $ | 13 | .06 | | | | (0 | .06) | | | | 1 | .78 | | | | 1 | .72 | | | | (1 | .07) | | | | (1 | .07) | | | $ | 13 | .71 | | | | 14 | .01% | | | $ | 119,429,129 | | | | | 1 | .08% | | | | (0 | .42%) | | | | 1 | .16% | | | | 85 | .86% | | |
| Year Ended October 31, 2006 | | | $ | 11 | .71 | | | | (0 | .07) | | | | 2 | .43 | | | | 2 | .36 | | | | (1 | .01) | | | | (1 | .01) | | | $ | 13 | .06 | | | | 21 | .45% | | | $ | 64,383,198 | | | | | 1 | .10% | | | | (0 | .69%) | | | | 1 | .16% | | | | 98 | .72% | | |
| Year Ended October 31, 2005 | | | $ | 10 | .47 | | | | (0 | .12) | | | | 1 | .36 | | | | 1 | .24 | | | | – | | | | | – | | | | $ | 11 | .71 | | | | 11 | .84% | | | $ | 41,073,533 | | | | | 1 | .10% | | | | (0 | .81%) | | | | 1 | .19% | | | | 144 | .08% | | |
| Period Ended October 31, 2004 (g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .48 | | | | 0 | .47 | | | | – | | | | | – | | | | $ | 10 | .47 | | | | 4 | .70% | | | $ | 49,792,831 | | | | | 1 | .07% | | | | (1 | .02%) | | | | 2 | .18% | | | | 0 | .48% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Per share calculations were performed using average shares method. |
| (g) | For the period from September 29, 2004 (commencement of operations) through October 31, 2004. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
18 Annual Report 2008
| |
| NorthPointe Small Cap Value Fund | |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the NorthPointe Small Cap Value Fund (Institutional Class at NAV) registered -37.74% versus -34.16% for its benchmark, the Russell 2000® Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Small-Cap Core Funds (consisting of 779 funds as of October 31, 2008) was -36.97% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
During the reporting period, strong stock selection in the telecommunications services and consumer staples sectors enhanced Fund performance. In addition, the Fund’s overweight position in the outperforming financials sector contributed to performance. Investments in wireless telecommunication companies NII Holdings, Inc. and NTELOS Holdings Corp. performed well for the Fund; both companies continued to report impressive operating performance. Within the Fund’s consumer staples sector holdings, the stock of Spartan Stores, Inc., a grocery retailer, performed well; the company continued to report earnings in excess of analyst expectations. In addition, the company’s stock performed well as investors sought out those firms whose sales should remain consistent regardless of the economic backdrop.
What areas of investment detracted from Fund performance?
Stock selection in the health-care and financials sectors detracted from Fund performance. Within health care, the stock of Hythiam, Inc., a services provider focused on treating patients who are fighting addiction to drugs and alcohol, underperformed. Hythiam is controversial among investors, particularly the short-selling community, as debate continues over the effectiveness of the company’s treatment program. Financials stock The Student Loan Corp. also underperformed. Concerns about funding availability and flawed comparisons, in our opinion, to Fannie Mae and Freddie Mac (institutions that essentially were taken over by the U.S. government) caused the company’s stock to fall dramatically in the final month of the reporting period.
What is your outlook for the near term?
The financial market events and the economic conditions that prevailed during the end of the reporting period have served to heighten investors’ focus on the state of the macroeconomic environment and the soundness of the underlying financial system, not only in the United States but also across the globe. Investors are seeking better clarity on these topics, and market volatility is unlikely to subside until greater levels of clarity are achieved. We do believe, however, that investors have discounted a sufficient amount of bad news and, as the stock market tends to be forward looking, we expect recovery to occur before the headlines start to improve.
Subadviser:
NorthPointe Capital® LLC
Portfolio Managers:
Mary C. Champagne, CFA and Jeffrey C. Petherick, CFA
2008 Annual Report 19
| |
| Fund Performance | NorthPointe Small Cap Value Fund |
Average Annual Total Return
(For periods ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Expense
|
| | | | | 1 Yr. | | 5 Yr. | | Inception1 | | Ratio* |
| |
| Institutional Class | | | | | -37.74% | | | | 0.35% | | | | 4.84% | | | | 0.97% | |
| |
| |
There are no sales charges on the shares of the NorthPointe Small Cap Value Fund.
| | |
| * | | As of October 31, 2007. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on June 29, 2000. |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Institutional Class of the NorthPointe Small Cap Value Fund, Russell 2000 Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The Russell 2000 is an unmanaged index of approximately 2,000 companies with small market capitalizations relative to the market capilizations of other U.S. companies. |
| |
| (b) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
20 Annual Report 2008
| |
| Shareholder | NorthPointe Small Cap Value Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| NorthPointe Small Cap Value Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 744.37 | | | | 4.29 | | | | 0.98 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.22 | | | | 4.97 | | | | 0.98 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 21
| |
| Portfolio Summary | NorthPointe Small Cap Value Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Common Stocks | | | 97.4% | |
| Repurchase Agreement | | | 2.9% | |
| Liabilities in excess of other assets | | | -0.3% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Insurance | | | 6.2% | |
| Commercial Banks | | | 5.9% | |
| Chemicals | | | 5.6% | |
| Thrifts & Mortgage Finance | | | 4.9% | |
| Communications Equipment | | | 4.4% | |
| Biotechnology | | | 4.4% | |
| Software | | | 4.0% | |
| Real Estate Investment Trusts | | | 4.0% | |
| Oil, Gas & Consumable Fuels | | | 3.7% | |
| Machinery | | | 3.4% | |
| Other | | | 53.5% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings* | | |
| |
| United Financial Bancorp, Inc. | | | 1.8% | |
| Omrix Biopharmaceuticals, Inc. | | | 1.7% | |
| Berkshire Hills Bancorp, Inc. | | | 1.6% | |
| People’s United Financial, Inc. | | | 1.6% | |
| Tower Group, Inc. | | | 1.5% | |
| Meadowbrook Insurance Group, Inc. | | | 1.5% | |
| Hanover Insurance Group, Inc. (The) | | | 1.5% | |
| Amerisafe, Inc. | | | 1.5% | |
| Hercules Technology Growth Capital, Inc. | | | 1.5% | |
| BioMarin Pharmaceutical, Inc. | | | 1.5% | |
| Other | | | 84.3% | |
| | | | | |
| | | | 100.0% | |
| | |
| * | | For purpose of listing top holdings, the repurchase agreement is included as part of Other. |
22 Annual Report 2008
Statement of Investments
October 31, 2008
NorthPointe Small Cap Value Fund
| | | | | | | | | |
| Common Stocks 97.4% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Aerospace & Defense 0.2% |
| Teledyne Technologies, Inc.* | | | 569 | | | $ | 25,929 | |
| | | | | | | | | |
| |
| |
Airlines 2.3% |
| Continental Airlines, Inc., Class B* | | | 7,900 | | | | 149,468 | |
| UAL Corp. | | | 8,100 | | | | 117,936 | |
| | | | | | | | | |
| | | | | | | | 267,404 | |
| | | | | | | | | |
| |
| |
Auto Components 0.5% |
| Exide Technologies* | | | 11,600 | | | | 55,100 | |
| | | | | | | | | |
| |
| |
Biotechnology 4.4% |
| BioMarin Pharmaceutical, Inc.* | | | 9,800 | | | | 179,536 | |
| Omrix Biopharmaceuticals, Inc.* | | | 11,900 | | | | 206,227 | |
| OSI Pharmaceuticals, Inc.* | | | 3,600 | | | | 136,620 | |
| | | | | | | | | |
| | | | | | | | 522,383 | |
| | | | | | | | | |
| |
| |
Capital Markets 2.9% |
| Hercules Technology Growth Capital, Inc. | | | 20,700 | | | | 179,676 | |
| Knight Capital Group, Inc., Class A* | | | 11,100 | | | | 160,506 | |
| | | | | | | | | |
| | | | | | | | 340,182 | |
| | | | | | | | | |
| |
| |
Chemicals 5.6% |
| A. Schulman, Inc. | | | 3,800 | | | | 68,058 | |
| Airgas, Inc. | | | 2,400 | | | | 92,064 | |
| Landec Corp.* | | | 14,200 | | | | 132,770 | |
| O.M. Group, Inc.* | | | 6,000 | | | | 128,040 | |
| Olin Corp. | | | 5,800 | | | | 105,328 | |
| Solutia, Inc.* | | | 13,500 | | | | 130,140 | |
| | | | | | | | | |
| | | | | | | | 656,400 | |
| | | | | | | | | |
| |
| |
Commercial Banks 5.9% |
| Bank of the Ozarks, Inc. | | | 5,352 | | | | 162,701 | |
| Glacier Bancorp, Inc. | | | 7,400 | | | | 149,258 | |
| Green Bankshares, Inc. | | | 8,904 | | | | 175,854 | |
| MB Financial, Inc. | | | 1,352 | | | | 40,168 | |
| Sterling Financial Corp. | | | 19,300 | | | | 163,857 | |
| | | | | | | | | |
| | | | | | | | 691,838 | |
| | | | | | | | | |
| |
| |
Commercial Services & Supplies 2.6% |
| ABM Industries, Inc. | | | 3,500 | | | | 57,155 | |
| Administaff, Inc. | | | 6,900 | | | | 137,931 | |
| United Stationers, Inc.* | | | 3,100 | | | | 115,909 | |
| | | | | | | | | |
| | | | | | | | 310,995 | |
| | | | | | | | | |
| |
| |
Communications Equipment 4.4% |
| Comtech Telecommunications Corp.* | | | 3,100 | | | | 150,102 | |
| F5 Networks, Inc.* | | | 2,800 | | | | 69,496 | |
| Harmonic, Inc.* | | | 17,500 | | | | 124,425 | |
| Hughes Communications, Inc.* | | | 5,091 | | | | 82,729 | |
| Opnext, Inc.* | | | 24,400 | | | | 97,600 | |
| | | | | | | | | |
| | | | | | | | 524,352 | |
| | | | | | | | | |
| |
| |
Computers & Peripherals 2.1% |
| Intermec, Inc.* | | | 5,700 | | | | 73,929 | |
| NCR Corp.* | | | 5,100 | | | | 93,228 | |
| Super Micro Computer, Inc.* | | | 11,964 | | | | 75,134 | |
| | | | | | | | | |
| | | | | | | | 242,291 | |
| | | | | | | | | |
| |
| |
Construction & Engineering 0.8% |
| MasTec, Inc.* | | | 10,800 | | | | 94,176 | |
| | | | | | | | | |
| |
| |
Consumer Finance 1.6% |
| SLM Corp.* | | | 11,100 | | | | 118,437 | |
| Student Loan Corp. (The) | | | 2,038 | | | | 74,387 | |
| | | | | | | | | |
| | | | | | | | 192,824 | |
| | | | | | | | | |
| |
| |
Containers & Packaging 1.4% |
| Crown Holdings, Inc.* | | | 5,400 | | | | 108,972 | |
| Pactiv Corp.* | | | 2,200 | | | | 51,832 | |
| | | | | | | | | |
| | | | | | | | 160,804 | |
| | | | | | | | | |
| |
| |
Diversified Consumer Services 0.9% |
| Stewart Enterprises, Inc., Class A | | | 19,500 | | | | 100,815 | |
| | | | | | | | | |
| |
| |
Diversified Financial Services 1.4% |
| Portfolio Recovery Associates, Inc.* | | | 4,600 | | | | 165,048 | |
| | | | | | | | | |
| |
| |
Diversified Telecommunication Services 1.2% |
| NTELOS Holdings Corp. | | | 5,467 | | | | 142,142 | |
| | | | | | | | | |
| |
| |
Electric Utility 1.1% |
| Allete, Inc. | | | 3,700 | | | | 129,500 | |
| | | | | | | | | |
| |
| |
Electrical Equipment 1.7% |
| Baldor Electric Co. | | | 2,800 | | | | 49,168 | |
| GrafTech International Ltd.* | | | 10,800 | | | | 87,588 | |
| Polypore International, Inc.* | | | 7,260 | | | | 61,928 | |
| | | | | | | | | |
| | | | | | | | 198,684 | |
| | | | | | | | | |
| |
| |
Energy Equipment & Services 1.6% |
| Basic Energy Services, Inc.* | | | 5,550 | | | | 75,924 | |
| Key Energy Services, Inc.* | | | 18,700 | | | | 115,940 | |
| | | | | | | | | |
| | | | | | | | 191,864 | |
| | | | | | | | | |
| |
| |
Food & Staples Retailing 2.8% |
| BJ’s Wholesale Club, Inc.* | | | 2,600 | | | | 91,520 | |
| Casey’s General Stores, Inc. | | | 2,200 | | | | 66,440 | |
| Nash Finch Co. | | | 1,500 | | | | 59,145 | |
| Spartan Stores, Inc. | | | 4,270 | | | | 115,247 | |
| | | | | | | | | |
| | | | | | | | 332,352 | |
| | | | | | | | | |
| | | | | | | | |
2008 Annual Report 23
Statement of Investments (Continued)
October 31, 2008
NorthPointe Small Cap Value Fund (Continued)
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Food Products 1.5% |
| Ralcorp Holdings, Inc.* | | | 1,500 | | | $ | 101,520 | |
| Sanderson Farms, Inc. | | | 1,400 | | | | 43,708 | |
| Smithfield Foods, Inc.* | | | 3,400 | | | | 35,768 | |
| | | | | | | | | |
| | | | | | | | 180,996 | |
| | | | | | | | | |
| |
| |
Health Care Equipment & Supplies 2.2% |
| Invacare Corp. | | | 4,400 | | | | 80,036 | |
| Natus Medical, Inc.* | | | 5,400 | | | | 82,620 | |
| Teleflex, Inc. | | | 1,800 | | | | 95,382 | |
| | | | | | | | | |
| | | | | | | | 258,038 | |
| | | | | | | | | |
| |
| |
Health Care Providers & Services 1.2% |
| Animal Health International, Inc.* | | | 15,390 | | | | 99,266 | |
| Hythiam, Inc.* | | | 69,200 | | | | 44,288 | |
| | | | | | | | | |
| | | | | | | | 143,554 | |
| | | | | | | | | |
| |
| |
Hotels, Restaurants & Leisure 1.5% |
| California Pizza Kitchen, Inc.* | | | 10,700 | | | | 104,539 | |
| Darden Restaurants, Inc. | | | 3,400 | | | | 75,378 | |
| | | | | | | | | |
| | | | | | | | 179,917 | |
| | | | | | | | | |
| |
| |
Household Durables 1.8% |
| Jarden Corp.* | | | 6,300 | | | | 112,140 | |
| Toll Brothers, Inc.* | | | 4,200 | | | | 97,104 | |
| | | | | | | | | |
| | | | | | | | 209,244 | |
| | | | | | | | | |
| |
| |
Information Technology Services 1.3% |
| CACI International, Inc., Class A* | | | 3,700 | | | | 152,366 | |
| | | | | | | | | |
| |
| |
Insurance 6.2% |
| Amerisafe, Inc.* | | | 10,460 | | | | 180,330 | |
| Hanover Insurance Group, Inc. (The) | | | 4,600 | | | | 180,550 | |
| Meadowbrook Insurance Group, Inc. | | | 34,560 | | | | 182,131 | |
| Tower Group, Inc. | | | 8,684 | | | | 182,625 | |
| | | | | | | | | |
| | | | | | | | 725,636 | |
| | | | | | | | | |
| |
| |
Internet Software & Services 0.8% |
| Interwoven, Inc.* | | | 7,400 | | | | 93,314 | |
| | | | | | | | | |
| |
| |
Machinery 3.4% |
| ESCO Technologies, Inc.* | | | 2,900 | | | | 100,050 | |
| Oshkosh Corp. | | | 14,700 | | | | 112,602 | |
| Robbins & Myers, Inc. | | | 3,800 | | | | 77,520 | |
| Valmont Industries, Inc. | | | 2,000 | | | | 109,560 | |
| | | | | | | | | |
| | | | | | | | 399,732 | |
| | | | | | | | | |
| |
| |
Media 1.0% |
| Lions Gate Entertainment Corp.* | | | 16,300 | | | | 114,100 | |
| | | | | | | | | |
| |
| |
Multiline Retail 0.7% |
| Dollar Tree, Inc.* | | | 2,300 | | | | 87,446 | |
| | | | | | | | | |
| |
| |
Natural Gas Utility 0.8% |
| Energen Corp. | | | 2,700 | | | | 90,639 | |
| | | | | | | | | |
| |
| |
Oil, Gas & Consumable Fuels 3.7% |
| Arch Coal, Inc. | | | 6,000 | | | | 128,460 | |
| Holly Corp. | | | 7,100 | | | | 139,373 | |
| Kodiak Oil & Gas Corp.* | | | 66,202 | | | | 49,651 | |
| Rex Energy Corp.* | | | 18,400 | | | | 124,752 | |
| | | | | | | | | |
| | | | | | | | 442,236 | |
| | | | | | | | | |
| |
| |
Pharmaceuticals 1.2% |
| Questcor Pharmaceuticals, Inc.* | | | 18,800 | | | | 145,512 | |
| | | | | | | | | |
| |
| |
Real Estate Investment Trusts 4.0% |
| BioMed Realty Trust, Inc. | | | 4,500 | | | | 63,225 | |
| Cogdell Spencer, Inc. | | | 12,040 | | | | 144,480 | |
| Entertainment Properties Trust | | | 3,300 | | | | 123,585 | |
| NorthStar Realty Finance Corp. | | | 23,811 | | | | 136,913 | |
| | | | | | | | | |
| | | | | | | | 468,203 | |
| | | | | | | | | |
| |
| |
Real Estate Management & Development 1.1% |
| Meruelo Maddux Properties, Inc.* | | | 134,958 | | | | 132,259 | |
| | | | | | | | | |
| |
| |
Road & Rail 2.0% |
| Celadon Group, Inc.* | | | 12,200 | | | | 130,418 | |
| Knight Transportation, Inc. | | | 7,000 | | | | 111,300 | |
| | | | | | | | | |
| | | | | | | | 241,718 | |
| | | | | | | | | |
| |
| |
Semiconductors & Semiconductor Equipment 1.9% |
| Cirrus Logic, Inc.* | | | 30,435 | | | | 174,697 | |
| Teradyne, Inc.* | | | 9,800 | | | | 49,980 | |
| | | | | | | | | |
| | | | | | | | 224,677 | |
| | | | | | | | | |
| |
| |
Software 4.0% |
| Aspen Technology, Inc.* | | | 14,000 | | | | 109,620 | |
| EPIQ Systems, Inc.* | | | 7,500 | | | | 101,925 | |
| NetScout Systems, Inc.* | | | 11,000 | | | | 105,820 | |
| Novell, Inc.* | | | 33,900 | | | | 157,974 | |
| | | | | | | | | |
| | | | | | | | 475,339 | |
| | | | | | | | | |
| |
| |
Specialty Retail 2.5% |
| Brown Shoe Co., Inc. | | | 7,900 | | | | 83,266 | |
| JOS. A. Bank Clothiers, Inc.* | | | 3,700 | | | | 94,239 | |
| Sally Beauty Holdings, Inc.* | | | 18,200 | | | | 92,456 | |
| Tween Brands, Inc.* | | | 2,800 | | | | 23,856 | |
| | | | | | | | | |
| | | | | | | | 293,817 | |
| | | | | | | | | |
| | | | | | | | |
24 Annual Report 2008
| | | | | | | | | |
Common Stocks (continued) |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
Textiles, Apparel & Luxury Goods 2.5% |
| Carter’s, Inc.* | | | 7,600 | | | $ | 161,424 | |
| Hanesbrands, Inc.* | | | 7,700 | | | | 134,519 | |
| | | | | | | | | |
| | | | | | | | 295,943 | |
| | | | | | | | | |
| |
| |
Thrifts & Mortgage Finance 4.9% |
| Berkshire Hills Bancorp, Inc. | | | 7,200 | | | | 187,416 | |
| People’s United Financial, Inc. | | | 10,500 | | | | 183,750 | |
| United Financial Bancorp, Inc. | | | 14,819 | | | | 207,466 | |
| | | | | | | | | |
| | | | | | | | 578,632 | |
| | | | | | | | | |
| |
| |
Water Utility 0.8% |
| California Water Service Group | | | 2,400 | | | | 90,144 | |
| | | | | | | | | |
| |
| |
Wireless Telecommunication Services 1.0% |
| NII Holdings, Inc.* | | | 4,800 | | | | 123,648 | |
| | | | | | | | | |
| | | | | |
Total Common Stocks | | | 11,492,193 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Repurchase Agreement 2.9% |
| | | | | | | | | |
| | | | Principal Amount | | | | Value | |
| |
| |
| CS First Boston, 0.08%, dated 10/31/08, due 11/03/08, repurchase price $342,530, collateralized U.S. Government Agency Mortgages ranging 0.00% — 5.50%, maturing 11/03/08 — 11/01/35; total market value of $349,379 | | $ | 342,528 | | | | 342,528 | |
| | | | | | | | | |
| | | | | |
Total Investments (Cost $14,912,263) (a) — 100.3% | | | 11,834,721 | |
Liabilities in excess of other assets — (0.3)% | | | | | | | (40,982 | ) |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 11,793,739 | |
| | | | | |
| | |
| * | | Denotes a non-income producing security. |
| |
| (a) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 25
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | NorthPointe
| |
| | | | Small Cap Value
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $14,569,735) | | | $ | 11,492,193 | |
| Repurchase agreements, at value and cost | | | | 342,528 | |
| | | | | | |
| Total Investments | | | | 11,834,721 | |
| | | | | | |
| Interest and dividends receivable | | | | 13,367 | |
| Receivable for investments sold | | | | 277,419 | |
| Receivable from adviser | | | | 1,089 | |
| Prepaid expenses and other assets | | | | 12,733 | |
| | | | | | |
| Total Assets | | | | 12,139,329 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 343,311 | |
| Accrued expenses and other payables: | | | | | |
| Fund administration fees | | | | 1,211 | |
| Trustee fees | | | | 47 | |
| Compliance program costs (Note 3) | | | | 103 | |
| Custodian fees | | | | 215 | |
| Other | | | | 703 | |
| | | | | | |
| Total Liabilities | | | | 345,590 | |
| | | | | | |
Net Assets | | | $ | 11,793,739 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 20,766,552 | |
| Accumulated undistributed net investment income | | | | 67,471 | |
| Accumulated net realized losses from investment transactions | | | | (5,962,742 | ) |
| Net unrealized appreciation/(depreciation) from investments | | | | (3,077,542 | ) |
| | | | | | |
Net Assets | | | $ | 11,793,739 | |
| | | | | | |
| Institutional Class Shares | | | | 11,793,739 | |
| | | | | | |
| Total | | | $ | 11,793,739 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Institutional Class Shares | | | | 2,099,936 | |
| | | | | | |
| Total | | | | 2,099,936 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Institutional Class Shares | | | $ | 5.62 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
26 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | NorthPointe
| |
| | | | Small Cap Value
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Interest income | | | $ | 22,791 | |
| Dividend income | | | | 252,885 | |
| | | | | | |
| Total Income | | | | 275,676 | |
| | | | | | |
EXPENSES: | | | | | |
| Investment advisory fees | | | | 153,013 | |
| Fund administration fees | | | | 17,279 | |
| Registration and filing fees | | | | 9,242 | |
| Professional fees | | | | 2,510 | |
| Printing fees | | | | 1,801 | |
| Trustee fees | | | | 951 | |
| Custodian fees | | | | 1,792 | |
| Other | | | | 6,670 | |
| | | | | | |
| Total expenses before reimbursed expenses | | | | 193,258 | |
| | | | | | |
| Earnings credit (Note 5) | | | | (265 | ) |
| Expenses reimbursed by Advisor | | | | (13,472 | ) |
| | | | | | |
| Net Expenses | | | | 179,521 | |
| | | | | | |
NET INVESTMENT INCOME | | | | 96,155 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized losses from investment transactions | | | | (5,836,921 | ) |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (3,176,776 | ) |
| | | | | | |
| Net realized/unrealized losses from investments | | | | (9,013,697 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (8,917,542 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 27
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | NorthPointe Small Cap Value Fund | |
| | | | | |
| | | | Year Ended
| | | | Year Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 96,155 | | | | $ | 83,289 | |
| Net realized gains/(losses) from investment transactions | | | | (5,836,921 | ) | | | | 4,179,328 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (3,176,776 | ) | | | | (2,177,824 | ) |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (8,917,542 | ) | | | | 2,084,793 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Institutional Class | | | | (37,775 | ) | | | | (148,355 | ) |
| Net realized gains: | | | | | | | | | | |
| Institutional Class | | | | (4,130,682 | ) | | | | (3,969,820 | ) |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (4,168,457 | ) | | | | (4,118,175 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | (6,306,206 | ) | | | | 952,305 | |
| | | | | | | | | | | |
| Change in net assets | | | | (19,392,205 | ) | | | | (1,081,077 | ) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 31,185,944 | | | | | 32,267,021 | |
| | | | | | | | | | | |
| End of period | | | $ | 11,793,739 | | | | $ | 31,185,944 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 67,471 | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,552,602 | | | | $ | 2,425,501 | |
| Dividends reinvested | | | | 3,771,024 | | | | | 3,565,432 | |
| Cost of shares redeemed (a) | | | | (11,629,832 | ) | | | | (5,038,628 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | (6,306,206 | ) | | | | 952,305 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | (6,306,206 | ) | | | $ | 952,305 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 214,215 | | | | | 223,822 | |
| Reinvested | | | | 453,251 | | | | | 327,841 | |
| Redeemed | | | | (1,410,121 | ) | | | | (463,160 | ) |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | (742,655 | ) | | | | 88,503 | |
| | | | | | | | | | | |
| Total change in shares: | | | | (742,655 | ) | | | | 88,503 | |
| | | | | | | | | | | |
| | |
| (a) | | Includes redemption fees — see Note 4 to Financial Statements. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
28 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
NorthPointe Small Cap Value Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a) | | | of Period | | | Net Assets | | | Net Assets | | | Net Assets (b) | | | Turnover | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (c) | | | $ | 10 | .97 | | | | 0 | .04 | | | | (3 | .61) | | | | (3 | .57) | | | | (0 | .01) | | | | (1 | .77) | | | | (1 | .78) | | | $ | 5 | .62 | | | | (37 | .74%) | | | $ | 11,793,739 | | | | | 1 | .00% | | | | 0 | .54% | | | | 1 | .08% | | | | 211 | .83% | | |
| Year Ended October 31, 2007 (c) | | | $ | 11 | .72 | | | | 0 | .03 | | | | 0 | .71 | | | | 0 | .74 | | | | (0 | .05) | | | | (1 | .44) | | | | (1 | .49) | | | $ | 10 | .97 | | | | 6 | .48% | | | $ | 31,185,944 | | | | | 0 | .97% | | | | 0 | .25% | | | | 0 | .98% | | | | 182 | .64% | | |
| Year Ended October 31, 2006 | | | $ | 12 | .51 | | | | 0 | .05 | | | | 1 | .86 | | | | 1 | .91 | | | | (0 | .05) | | | | (2 | .65) | | | | (2 | .70) | | | $ | 11 | .72 | | | | 18 | .07% | | | $ | 32,267,021 | | | | | 1 | .00% | | | | 0 | .43% | | | | 1 | .07% | | | | 154 | .88% | | |
| Year Ended October 31, 2005 | | | $ | 14 | .43 | | | | 0 | .08 | | | | 1 | .99 | | | | 2 | .07 | | | | (0 | .08) | | | | (3 | .91) | | | | (3 | .99) | | | $ | 12 | .51 | | | | 15 | .39% | | | $ | 25,068,870 | | | | | 1 | .00% | | | | 0 | .61% | | | | 1 | .03% | | | | 164 | .93% | | |
| Year Ended October 31, 2004 | | | $ | 13 | .53 | | | | 0 | .03 | | | | 1 | .64 | | | | 1 | .67 | | | | (0 | .03) | | | | (0 | .74) | | | | (0 | .77) | | | $ | 14 | .43 | | | | 12 | .65% | | | $ | 32,156,353 | | | | | 0 | .99% | | | | 0 | .19% | | | | 1 | .00% | | | | 135 | .45% | | |
| |
| (a) | Excludes sales charge. |
| (b) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (c) | Per share calculations were performed using average shares method. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 29
Notes to Financial Statements
October 31, 2008
1. Organization
Nationwide Mutual Funds (the “Trust”) is an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust dated October 28, 2004, as amended to date. The Trust, originally created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, was redomesticated as a Delaware statutory trust on February 28, 2005. The redomestication was a change in statutory status and did not affect the operations of the Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2008, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. The Trust operates thirty-six (36) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the two (2) funds listed below (each, a “Fund”; collectively, the “Funds”):
| | |
| | - | NorthPointe Small Cap Growth Fund (“Small Cap Growth”) |
| | - | NorthPointe Small Cap Value Fund (“Small Cap Value”) |
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates and those differences could be material.
Securities for which market quotations are readily available are valued at current market value as of “Valuation Time.” Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern time). Equity securities are valued at the last quoted sale price or, if there is no sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Prices are taken from the primary market or exchange in which each security trades. Investment companies are valued at net asset value (“NAV”) as reported by such company.
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service, the use of which has been approved by the Board of Trustees. Short-term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Funds’ investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees. The “Fair Value” of these securities is determined in good faith by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a “Fair Value” may include the
30 Annual Report 2008
following non-exclusive list of acceptable methods: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the yield-to-maturity for debt issues; or (iv) a consolidation of the methods. The Board of Trustees’ Valuation & Operations Committee considers a non-exclusive list of factors to arrive at the appropriate method of determining “Fair Value.” For example, fair value determinations are required for securities whose value is affected by a “significant” event that materially affects the value of a domestic or foreign security which occurs subsequent to the time of the close of the principal market on which such domestic or foreign security trades and before the Valuation Time (i.e., a “subsequent event”). Typically, this will involve events occurring after the close of a foreign market on which a security trades and before the next Valuation Time.
The Funds holding foreign equity securities (the “Foreign Equity Funds”) value foreign securities at fair value in the circumstances described below. Generally, trading in foreign securities markets is completed each day at various times prior to the Valuation Time. Due to the time differences between the closings of the relevant foreign securities exchanges and the Valuation Time for the Foreign Equity Funds, the Foreign Equity Funds will fair value their foreign investments when it is determined that the market quotations for the foreign investments either are not readily available or are unreliable and, therefore, do not represent fair value. When the fair value prices are utilized, these prices will attempt to reflect the impact of the U.S. financial markets’ perceptions and trading activities on the Foreign Equity Funds’ foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Trustees has determined that movements in relevant indices or other appropriate market indicators, after the close of the foreign securities exchanges, may demonstrate that market quotations are unreliable, and may trigger fair value pricing for certain securities. Consequently, fair valuation of portfolio securities may occur on a daily basis.
| |
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. The Funds may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
| |
| (c) | Forward Foreign Currency Contracts |
Certain Funds may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. The Funds did not have any forward foreign currency contracts during the fiscal year ending October 31, 2008.
2008 Annual Report 31
Notes to Financial Statements (Continued)
October 31, 2008
Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging their existing portfolio securities or securities that the Funds intend to purchase against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes; however, in those instances, the aggregate initial margin and premiums required to establish a Fund’s positions may not exceed 5% of that Fund’s NAV after taking into account unrealized profits and unrealized losses on any such contract it has entered into.
Upon entering into a futures contract, each of the Funds is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin” payments, are made each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. A gain or loss equal to the variation margin is recognized on a daily basis. Futures contracts are valued daily at their last quoted sale price.
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future.
Should market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions for hedging purposes involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the value of the underlying hedged assets. The Funds did not have any futures contracts during the fiscal year ending October 31, 2008.
| |
| (e) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
To generate additional income, each of the Funds may lend their respective portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions provided that (1) the borrower delivers cash or securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter shall require the borrower to mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Funds receive payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Funds’ investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank serves as custodian for the securities lending program of the Funds. JPMorgan Chase Bank receives a fee based on the value of the collateral received from borrowers. As of October 31, 2008, the Funds did not have securities on loan.
32 Annual Report 2008
| |
| (g) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for the Funds. For the Funds, distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary in nature. Permanent differences (i.e., reclassification of market discounts, foreign gain/loss, and paydowns) are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the respective Funds. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, these excesses are reported as distributions of paid-in-capital.
It is the policy of each Fund to qualify or to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
The Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. If a tax position taken by a Fund is not sustained upon examination by a taxing authority, the Fund may incur taxes and penalties related to that position, and those amounts could be material. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable) and an increase in a deferred tax liability (or a reduction in a deferred tax asset). Adoption of FIN 48 was required no later than the last business day of the first financial statement reporting period for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Accordingly, the Funds were required to implement FIN 48 in their NAV per share calculations on April 30, 2008. Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. Each Fund files U.S. federal income tax returns and, if applicable, returns in various state or foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service. The adoption of FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to each Fund’s NAV and financial statements.
| |
| (i) | Allocation of Expenses, Income, and Gains and Losses |
Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the Trust. For each Fund, the method for allocating income, fund level expenses, and realized and unrealized gains or losses is based on the fair value of shares outstanding relative to net assets. Under this method, each class of shares participates
2008 Annual Report 33
Notes to Financial Statements (Continued)
October 31, 2008
based on the total NAV of that class’s shares in proportion to the total net assets of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA” or the “Adviser”) manages the investment of the assets and supervises the daily business affairs of the Funds. NFA is a wholly-owned subsidiary of Nationwide Financial Services, Inc. (“NFS”), whose parent company is Nationwide Corporation. NFA provides investment management evaluation services in initially selecting and monitoring, on an ongoing basis, the performance of NorthPointe Capital LLC (“NorthPointe”), the subadviser for the Funds. NorthPointe manages each of its respective Fund’s investments and has the responsibility for making all investment decisions for the Funds.
Under the terms of the Investment Advisory Agreement, each Fund pays NFA an investment advisory fee based on that Fund’s average daily net assets. From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. For the year ended October 31, 2008, the Funds paid investment advisory fees to NFA according to the schedule below:
| | | | | | | | | | |
| | | | | Total
| | |
| Fund | | Fee Schedule | | Fees | | |
| |
| Small Cap Growth | | All Assets | | | 0.95 | % | | | |
| |
| |
| Small Cap Value | | All Assets | | | 0.85 | % | | | |
| |
| |
From such fees, pursuant to the subadvisory agreements, NFA paid the subadviser $588,497 for the year ended October 31, 2008.
NFA and the Funds have entered into written Expense Limitation Agreements, that limit operating expenses (excluding any taxes, interest, brokerage fees, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by the Fund in connection with any merger or reorganization and may exclude other non-routine expenses not incurred in the ordinary course of the Fund’s business) from exceeding the amounts listed in the table below until at least May 1, 2009:
| | | | | | | | | | | | | |
| | | Fund | | Classes | | Amount | | |
| |
| | | Small Cap Growth | | | All Classes | | | | 1.10% | | | |
| |
| |
| | | Small Cap Value | | | All Classes | | | | 1.00% | | | |
| |
| |
NFA may request and receive reimbursement from the Funds for advisory fees waived and other expenses reimbursed by NFA pursuant to the Expense Limitation Agreement at a date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the Class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Except as provided for in the Expense Limitation Agreements, reimbursement of amounts previously waived or assumed by NFA is not permitted.
As of October 31, 2008, the cumulative potential reimbursements of the following Funds, based on reimbursements which expire within three years from the fiscal year in which the corresponding reimbursements to the Fund were made for expenses reimbursed by NFA, would be:
| | | | | | | | | | | | | | | |
| | | | | | | Amount
| | |
| | | Amount Fiscal Year
| | Amount
| | Fiscal Year
| | |
| Fund | | 2006 | | Fiscal Year 2007 | | 2008 | | |
| |
| Small Cap Growth | | $ | 28,148 | | | $ | 75,278 | | | $ | 49,007 | | | |
| |
| |
| Small Cap Value | | | 17,755 | | | | 3,918 | | | | 13,472 | | | |
| |
| |
34 Annual Report 2008
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Funds’ principal underwriter, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. NFD is a wholly-owned subsidiary of NFS Distributors Inc. (“NFSDI”). These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed the following:
| | | | | | | | | | | | | | | | | | | |
| | | Class A
| | Class B
| | Class C
| | Class R
| | |
| Fund | | Shares | | Shares | | Shares | | Shares | | |
| |
| Small Cap Growth | | | 0.25% | | | | 1.00% | | | | 1.00% | | | | 0.50% | | | |
| |
| |
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A shares. These fees are deducted from and are not included in proceeds from sales of Class A shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A shares of the Funds. NFD also receives fees for services as principal underwriter for Class B shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B shares, which may cause the current value of a shareholder’s account to fall below the total purchase payments. The CDSC, if applicable, will be imposed on redemptions of Class B and shares made within six years of the purchase. Class C shares have a CDSC fee of 1% imposed on redemptions of Class C shares of the Funds made within one year of purchase. For the year ended October 31, 2008, NFD received no commissions from front-end sales charges of Class A shares and from CDSC fees from Class B and Class C shares of the Funds.
Under the terms of a Fund Administration and Transfer Agency Agreement, Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFSDI, provides various administrative and accounting services for the Funds, and serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. The fees for the services provided under this agreement are calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees are then allocated proportionately among all funds within the Trust in relation to the average daily net assets of each Fund and are paid to NFM.
| | | | | | | | | |
| | | Combined Fee Schedule* | | | | |
| |
| | | Up to $1 billion | | | 0.26% | | | |
| |
| |
| | | $1 billion to $3 billion | | | 0.19% | | | |
| |
| |
| | | $3 billion to $4 billion | | | 0.15% | | | |
| |
| |
| | | $4 billion to $5 billion | | | 0.08% | | | |
| |
| |
| | | $5 billion to $10 billion | | | 0.05% | | | |
| |
| |
| | | $10 billion to $12 billion | | | 0.03% | | | |
| |
| |
| | | $12 billion or more | | | 0.02% | | | |
| |
| |
| | |
| * | | The assets of the Nationwide Investor Destinations Aggressive, Nationwide Investor Destinations Moderately Aggressive, Nationwide Investor Destinations Moderate, Nationwide Investor Destinations Moderately Conservative and Nationwide Investor Destinations Conservative Funds (collectively, the “Investor Destinations Funds”) and the Nationwide Destination 2010, Nationwide Destination 2015, Nationwide Destination 2020, Nationwide Destination 2025, Nationwide Destination 2030, Nationwide Destination 2035, Nationwide Destination 2040, Nationwide Destination 2045, Nationwide Destination 2050, and Nationwide Retirement Income Funds (collectively, the “Target Destination Funds”) are excluded from the Trust asset level amount in order to calculate this asset based fee. The Investor Destinations Funds and the Target Destination Funds do not pay any part of this fee. |
NFA and NFM have entered into agreements with Citi Fund Services Ohio, Inc. (“Citi”), pursuant to which Citi provides sub-administration and sub-transfer agency services, respectively, to the Funds.
2008 Annual Report 35
Notes to Financial Statements (Continued)
October 31, 2008
NFA and Citi have agreed to designate certain sub-transfer agency agreements NFA enters into with respect to the Funds as “Qualifying Sub-TA Agreements.” With respect to Qualifying Sub-TA Agreements, Citi will credit to NFA an amount equal to the lesser of (i) the actual amount NFA is charged by the sub-transfer agent under the applicable Qualifying Sub-TA Agreement or (ii) $10 per investor account; however, the aggregate amount paid with regard to all Qualifying Sub-TA Agreements, regardless of whether option (i) or (ii) applies, shall not exceed $200,000 per annum. Citi will calculate and credit such amounts to NFA’s fees on a monthly basis. All amounts will be credited to each applicable Fund on a monthly basis.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, NFS and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquiries regarding the Funds; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Class R, and Institutional Service Class Shares of each of the Funds.
For the year ended October 31, 2008, NFS received the following amounts in administrative services fees from each Fund:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Small Cap Growth | | $ | 2,615 | | | |
| |
| |
| | | Small Cap Value | | | — | | | |
| |
| |
As of October 31, 2008, the Adviser or affiliates of the Adviser directly held 61.23% of the shares outstanding of Small Cap Growth. Please refer to “Note 11. Subsequent Event” for additional information.
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, by and among NFA, the Audit Committee of the Board of Trustees and the Trust, the Board of Trustees has agreed to reimburse NFA for certain costs related to the Funds’ portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the year ended October 31, 2008, the Funds’ portion of such costs amounted to $1,079.
4. Short-Term Trading Fees
The Funds assess a 2.00% redemption fee on all classes of shares that are purchased and are sold or exchanged within 90 calendar days of purchase. The redemption fee, if any, is paid directly to the applicable Fund class and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.
For the year ended October 31, 2008, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Institutional
| | Institutional
| | | | | | | | | | | | | | |
| Fund | | A | | B | | C | | R | | Service Class | | Class | | | | | | | | | | | | | | |
| |
| Small Cap Growth | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 4,885 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Small Cap Value | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
36 Annual Report 2008
For the year ended October 31, 2007, the Funds had the following contributions to capital due to collection of redemption fees:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class
| | Class
| | Class
| | Class
| | Institutional
| | Institutional
| | | | | | | | | | | | | | |
| Fund | | A | | B | | C | | R | | Service Class | | Class | | | | | | | | | | | | | | |
| |
| Small Cap Growth | | $ | — | | | $ | — | | | $ | — | | | $ | 7,950 | | | $ | — | | | $ | 539 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
| Small Cap Value | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| |
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Funds’ custodian bank, permitting the Trust to borrow up to $100,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. The interest costs, if any, would be shown on the Statement of Operations. No compensating balances are required under the terms of the line of credit. The line of credit is renewed annually, expiring on July 23, 2009, with a commitment fee of 0.07% per year on $100,000,000. There are three (3) other lenders participating in this arrangement. Advances taken by the Funds under this arrangement would be primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. There were no borrowings under this line of credit during the year ended October 31, 2008.
The Trust’s custodian bank has agreed to reduce the bank’s fees (earnings credits) when the Funds of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those funds that use DDAs based on the number of open shareholder accounts in each Fund. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for the funds that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
6. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Small Cap Growth | | $ | 147,585,123 | | | $ | 160,803,691 | | | |
| |
| |
| | | Small Cap Value | | | 37,500,812 | | | | 46,677,257 | | | |
| |
| |
7. Indemnifications
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered into Indemnification Agreements with its Trustees and certain of its Officers. Trust Officers receive no compensation from the Trust for serving as its Officers. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum liability under these arrangements is unknown, as this would involve future claims that may be made against the Trust. Based on experience however, the Trust expects that risk of loss to be remote.
8. New Accounting Pronouncements
In September 2006, the FASB issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those
2008 Annual Report 37
Notes to Financial Statements (Continued)
October 31, 2008
fiscal years. The changes to current accounting principles generally accepted in the United States of America from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of October 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about each Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on each Fund’s financial statements and related disclosures.
In September 2008, FASB Staff Position FAS 133-1 and FIN 45-4, “Disclosures about Credit Derivates and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (the “Amendment”) was issued and is effective for annual and interim reporting periods ending after November 15, 2008. The Amendment requires enhanced disclosures regarding a fund’s credit derivatives holdings and hybrid financial instruments containing embedded credit derivatives. Management is currently evaluating what impact the adoption of the Amendment will have on each Fund’s financial statement disclosure.
9. Other
At October 31, 2008, the Funds had individual shareholder accounts and/or omnibus shareholder accounts (comprised of a group of individual shareholders), which amounted to more than 10% of the total shares outstanding of the Funds as detailed below.
| | | | | | | | | | | | | |
| | | Fund | | % of Shares | | Number of Accounts | | |
| |
| | | Small Cap Growth | | | 74% | | | | 2 | | | |
| |
| |
| | | Small Cap Value | | | 83% | | | | 5 | | | |
| |
| |
Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the NAV of many mutual funds, including these Funds. Such events during this period have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business and/or whose securities are or may be held by the Funds. The potential investment of each Fund’s investments in these issuers, and the financial sector in general, as reflected in each Fund’s schedule of investments, may expose investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
10. Federal Tax Information
The tax character of distributions paid during the fiscal year ended October 31, 2008, was as follows: (Total distributions paid may differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when paid.)
38 Annual Report 2008
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Small Cap Growth | | $ | 4,994,520 | | | $ | 5,058,829 | | | $ | 10,053,349 | | | $ | — | | | $ | 10,053,349 | | | |
| |
| |
| Small Cap Value | | | 2,968,729 | | | | 1,199,728 | | | | 4,168,457 | | | | — | | | | 4,168,457 | | | |
| |
| |
The tax character of distributions paid during the fiscal year ended October 31, 2007, was as follows: (Total distributons paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Small Cap Growth | | $ | 2,201,433 | | | $ | 3,138,063 | | | $ | 5,339,496 | | | $ | — | | | $ | 5,339,496 | | | |
| |
| |
| Small Cap Value | | | 2,234,121 | | | | 1,884,054 | | | | 4,118,175 | | | | — | | | | 4,118,175 | | | |
| |
| |
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows: (Total distributions paid differ from the Staement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Total
| | |
| | | Undistributed
| | Undistributed
| | Undistributed
| | | | | | Accumulated
| | Unrealized
| | Accumulated
| | |
| | | Tax Exempt
| | Ordinary
| | Long-Term
| | Accumulated
| | Distributions
| | Capital and
| | Appreciation
| | Earnings
| | |
| Fund | | Income | | Income | | Capital Gains | | Earnings | | Payable | | Other Losses | | (Depreciation)* | | (Deficit) | | |
| |
| Small Cap Growth | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (30,364,860) | | | $ | (22,871,390) | | | $ | (53,236,250) | | | |
| |
| |
| Small Cap Value | | | — | | | | 67,471 | | | | — | | | | 67,471 | | | | — | | | | (5,419,399) | | | | (3,620,885) | | | | (8,972,813) | | | |
| |
| |
| | |
| * | | The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. |
As of October 31, 2008, the tax cost of securities and the breakdown of unrealized appreciation / (depreciation) for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net Unrealized
| | |
| | | Tax Cost
| | Unrealized
| | Unrealized
| | Appreciation
| | |
| Fund | | of Securities | | Appreciation | | Depreciation | | (Depreciation) | | |
| |
| Small Cap Growth | | $ | 67,970,036 | | | $ | 1,045,358 | | | $ | (23,916,748) | | | $ | (22,871,390) | | | |
| |
| |
| Small Cap Value | | | 15,455,606 | | | | 474,587 | | | | (4,095,472) | | | | (3,620,885) | | | |
| |
| |
As of October 31, 2008, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the treasury regulations.
| | | | | | | | | | | | | |
| | | Fund | | Amount | | Expires | | |
| |
| | | Small Cap Growth | | $ | 30,364,860 | | | | 2016 | | | |
| |
| |
| | | Small Cap Value | | | 5,419,399 | | | | 2016 | | | |
| |
| |
11. Subsequent Event
On December 3, 2008, the Board of Trustees approved the liquidation of Small Cap Growth & Small Cap Value. The liquidation is expected to be completed by April 30, 2009. Pursuant to the plan of liquidation adopted by
2008 Annual Report 39
Notes to Financial Statements (Continued)
October 31, 2008
the Board, the Fund may accrue for expenses incurred in connection with the liquidation to ensure that all shareholders are treated fairly.
40 Annual Report 2008
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nationwide Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of NorthPointe Small Cap Growth Fund and NorthPointe Small Cap Value Fund (two series of Nationwide Mutual Funds, hereafter referred to as the “Funds”) at October 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States.) Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2008
2008 Annual Report 41
Supplemental Information
(Unaudited)
1) Other Federal Tax Information
For the year ended October 31, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.
For the year ended October 31, 2008, the following Funds paid qualified dividend income:
| | | | | | | | | |
| | | | | Qualified
| | |
| | | | | Dividend
| | |
| | | Fund | | Income | | |
| |
| | | Small Cap Growth | | $ | 341,126 | | | |
| |
| |
| | | Small Cap Value | | | 445,253 | | | |
| |
| |
For the taxable year ended October 31, 2008, the following percentage of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
| | | | | | | | | |
| | | | | Dividends
| | |
| | | | | Received
| | |
| | | Fund | | Deduction | | |
| |
| | | Small Cap Growth | | | 7% | | | |
| |
| |
| | | Small Cap Value | | | 16% | | | |
| |
| |
The Funds designate the following amounts, or the maximum amount allowable under the Internal Revenue Code, as long term capital gain distributions qualifying for the maximum 15% income tax rate for individuals:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Small Cap Growth | | $ | 5,058,829 | | | |
| |
| |
| | | Small Cap Value | | | 1,199,728 | | | |
| |
| |
42 Annual Report 2008
Management Information
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
| |
| |
Charles E. Allen
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
since
July 2000 | | | Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management). | | | | 94 | | | | None |
| |
| |
Paula H.J. Cholmondeley
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
Since
July 2000 | | | Ms. Cholmondeley has served as Chief Executive Officer of Sorrel Group (management consulting group) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | | | | 94 | | | | Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology, Inc. (specialty chemicals) |
| |
| |
C. Brent DeVore3
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1940 | | | Trustee
since 1990 | | | Dr. DeVore is President of Otterbein College. | | | | 94 | | | | None |
| |
| |
Phyllis Kay Dryden
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
since
December 2004 | | | Ms. Dryden was a partner of Mitchell Madison Group LLC, a management consulting company from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | | | | 94 | | | | None |
| |
| |
Barbara L. Hennigar
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1935 | | | Trustee
Since
July 2000 | | | Retired. Ms. Hennigar was Executive Vice President of Oppenheimer Funds (an asset management company) from October 1992 until June 2000 and Chairman of Oppenheimer Funds Services from October 1999 to June 2000 and President & CEO from June 1992 to October 1999. | | | | 94 | | | | None |
| |
| |
2008 Annual Report 43
Management Information (Continued)
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Barbara I. Jacobs
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Trustee
since
December 2004 | | | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 – 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association — College Retirement Equities Fund). | | | | 94 | | | | None |
| |
| |
Douglas F. Kridler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Trustee
since
September 1997 | | | Mr. Kridler has been a Board Member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of the Columbus Foundation (a Columbus, Ohio-based foundation which manages over 1,300 individual endowment funds) since February 2002. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts; Chairman of the Greater Columbus Convention and Visitors Bureau; and Board Member of Columbus Downtown Development Corporation. | | | | 94 | | | | None |
| |
| |
44 Annual Report 2008
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
David C. Wetmore
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
Since
1995 and
Chairman
Since
February 2005 | | | Retired. Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology orientated investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr Wetmore served as the COO, CEO and Chairman of the board of several publicly-held software and services companies and as the managing partner of a “big 8” public accounting firm. | | | | 94 | | | | None |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 3 | | Mr. DeVore has served as President of Otterbein College since 1984. Mark Thresher, President and Chief Operating Officer of Nationwide Financial Services, Inc. (“NFS”) has served as a member of the Board of Trustees of Otterbein College since 2000, currently serving as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Funds’ investment adviser, and Nationwide Fund Distributors LLC (“NFD”), principal underwriter to the Trust, are wholly-owned subsidiaries of NFS. Mr. DeVore has announced his intention to retire as President of Otterbein College at the end of the 2008-2009 school year. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
2008 Annual Report 45
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
| |
| |
Arden L. Shisler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1941 | | | Trustee
Since February 20004 | | | Retired. Mr. Shisler is the former President and Chief Executive Officer of KeB Transport, Inc., a trucking firm (2000 through 2002). He served as a consultant to KeB from January 2003 through December 2004. Since 1992, Mr. Shisler has also been Chairman of the Board for Nationwide Mutual Insurance Company.2 | | | | 94 | | | | Director of Nationwide Financial Services, Inc., Chairman of Nationwide Mutual Insurance Company2 |
| |
| |
Michael S. Spangler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1966 | | | President and Chief
Executive Officer since June 20085 | | | Mr. Spangler is the President and Chief Executive Officer of Nationwide Funds Group, which includes NFA,2 Nationwide Fund Management LLC 2 and Nationwide Fund Distributors LLC 2, and is a Senior Vice President of Nationwide Financial Services, Inc.2 From May 2004 until May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. He was President of Touchstone Advisors, Inc., and Vice President and Director of Touchstone Investments Business Operations from July 2002 until May 2004. | | | | N/A | | | | N/A |
| |
| |
Stephen T. Grugeon
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Executive Vice President
and Chief Operating
Officer since June 20086 | | | Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. 2 Mr. Grugeon is also President of NWD Investments, which represents certain asset management operations of Nationwide Mutual Insurance Company and includes Nationwide SA Capital Trust. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006, and Chief Operating Officer of Corviant Corporation, a subsidiary of NWD Investments, from 1999 through 2003.2 | | | | N/A | | | | N/A |
| |
| |
Joseph Finelli
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1957 | | | Treasurer
Since
September 2007 | | | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting and Operations for Nationwide Funds Group.2 From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
46 Annual Report 2008
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Dorothy Sanders
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Chief Compliance
Officer
since
October 2007 | | | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). From 2000 to November 2004, she was Vice President, Secretary and General Counsel of Fred Alger & Company, Incorporated. | | | | N/A | | | | N/A |
| |
| |
Eric E. Miller
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1953 | | | Secretary
Since
December 2002 | | | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
Doff Meyer
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Vice President
and
Chief Marketing
Officer
since
January 2008 | | | Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007). 2 From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. From January 2003 until September 2004, Ms. Meyer was an independent marketing consultant. | | | | N/A | | | | N/A |
| |
| |
2008 Annual Report 47
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Michael Butler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1959 | | | Vice President
and Chief Distribution
Officer
since
January 2008 | | | Mr. Butler is Chief Distribution Officer of Nationwide Funds Group (since May 2007) and President of Nationwide Fund Distributors LLC (since January 2008). 2 From January 2006 through April 2007, Mr. Butler was Vice President – Mutual Fund Strategy of Nationwide Financial Services, Inc.2 and was Senior Vice President – Retirement Plan Sales of NFS Distributors, Inc.2 from 2000 until January 2006. | | | | N/A | | | | N/A |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | This position is held with an affiliated person or principal underwriter of the Trust. |
| 3 | | Directorships held in (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 4 | | Mr. Shisler resigned as a Trustee of the Trust effective September 19, 2008. |
| 5 | | Prior to June 30, 2008, Mr. Grugeon served as the Trust’s acting President and Chief Executive Officer. Prior to February 2008, Mr. John H. Grady was the President and Chief Executive Officer. |
| 6 | | From February 2008 through June 2008, Mr. Grugeon also served as acting President and Chief Executive Officer of Nationwide Mutual Funds, Nationwide Variable Insurance Trust and Nationwide Funds Group. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Funds’ website at www.nationwidefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
48 Annual Report 2008
1200 River Road, Suite 1000
Conshohocken, PA 19428
nationwidefunds.com
Nationwide, the Nationwide Framemark, Nationwide Funds and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds Group is a service mark of Nationwide Mutual Insurance Company
©2008 Nationwide Funds Group.
All rights reserved.
AR-NP 12/08
Nationwide Mutual Funds
Annual Report
October 31, 2008
Nationwide Destination 2010 Fund
Nationwide Destination 2015 Fund
Nationwide Destination 2020 Fund
Nationwide Destination 2025 Fund
Nationwide Destination 2030 Fund
Nationwide Destination 2035 Fund
Nationwide Destination 2040 Fund
Nationwide Destination 2045 Fund
Nationwide Destination 2050 Fund
Nationwide Retirement Income Fund
AnnualReport
October 31, 2008
| | | | |
| | | | Contents |
| | | | |
| 1 | | | Message to Shareholders |
| 5 | | | Nationwide Destination 2010 Fund |
| 19 | | | Nationwide Destination 2015 Fund |
| 34 | | | Nationwide Destination 2020 Fund |
| 49 | | | Nationwide Destination 2025 Fund |
| 64 | | | Nationwide Destination 2030 Fund |
| 79 | | | Nationwide Destination 2035 Fund |
| 93 | | | Nationwide Destination 2040 Fund |
| 107 | | | Nationwide Destination 2045 Fund |
| 121 | | | Nationwide Destination 2050 Fund |
| 135 | | | Nationwide Retirement Income Fund |
| 149 | | | Notes to Financial Statements |
| | | | |
Commentary provided by Nationwide Fund Advisors, investment adviser to Nationwide Funds. All opinions and estimates included in this report constitute the Adviser’s judgment as of the date of this report and are subject to change without notice. Portfolio composition is accurate as of the date of this report and is subject to change at any time.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The Nationwide Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on nationwidefunds.com or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
This page intentionally left blank
Message to Shareholders
October 31, 2008
Dear Shareholder:
Challenging developments in financial markets, as well as in the global economy particularly during the latter months of the annual reporting period, have dominated the news cycles. Commentators have described the decline as “unprecedented in our lifetime.” Unfortunately, I cannot contradict the pundits. Nearly across the board, markets are posting negative performance numbers in the double digits. As for our funds, while some performed well relative to their peer groups, most have lost value.
The causes for the prevailing negative market conditions have been well documented in the press and elsewhere. The failure of high-profile financial institutions and the extraordinary government intervention have left no asset class unaffected. While I can’t give you good news at this time, I can urge you to keep these events in perspective.
It’s important to remember that economic markets never stand still. They’re volatile by nature. Of course, that premise is easier to accept when markets are going up. However, we approach investing from a long-term perspective. Staying focused, adhering to a plan and remaining aware of your options will help you endure various market conditions.
Nationwide® and Nationwide Funds Groupsm continue to work with investors to help them keep a solid grasp on their long-term financial goals. Our approach is deliberate and our commitment is firm. We do not foresee a fast recovery from the ongoing economic and market turbulence. However, we believe that our underlying investment principles are sound.
In closing, we thank you for entrusting your assets to Nationwide Funds Group.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
This report and the holdings provided are for informational purposes only, and are not intended as an offer or recommendation with respect to the purchase or sale of any security, option, future or other derivatives in such securities. Portfolio composition is accurate as of the date of this report and subject to change at any time. There is no assurance that any specific securities mentioned in this report will remain in the fund’s portfolio. A more recent listing of each fund’s portfolio holdings can be found on the Trust’s internet site nationwidefunds.com.
The Nationwide Target Destination Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the Nationwide Target Destination Funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
There is no assurance that a diversified portfolio will produce better results than a nondiversified portfolio.
Investments in each Nationwide Target Destination Fund are subject to risks related to the Fund’s allocation strategy. In general, a Fund with a later target date is expected to be more volatile, and thus riskier, because of its greater allocation to equity securities than a Fund with an earlier target date. A Fund is expected to become less volatile as it approaches its target date and during the 20 years following. The Nationwide Retirement Income Fund is expected to be the least volatile of the Funds. Because a Fund’s allocation may not match a particular investor’s retirement goal and an investor may have different retirement needs than anticipated, there is no guarantee that an investor will have the desired level of retirement assets available. Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations. Each Fund’s underlying funds may be subject to specific risks such as those associated with small companies or international stocks.
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
2008 Annual Report 1
Message to Shareholders (Continued)
October 31, 2008
Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective as determined by Lipper Inc.
Dow Jones (DJ) Target Date Indexes: This series of unmanaged, portfolio-based, asset-class-weighted indexes consists of composites of subindexes that represent the three major asset classes – stocks, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target-date index, and Barclays Capital (formerly Lehman Brothers) subindexes represent the bond and cash components.
Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index]: An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more) that is generally representative of the bond market as a whole.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of the stocks of 400 medium-sized U.S. companies.
International investing involves additional risks, including currency fluctuations, differences in accounting standards, economic and political instability, illiquidity and higher trading costs, and differences in foreign regulations, all of which are magnified in emerging markets. Small-company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility. Funds that concentrate on specific sectors, such as commodities or REITs, are subject to greater volatility than that of other mutual funds. High-yield funds typically are subject to greater risk and price volatility than funds that invest in higher-rated debt securities.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency except as stated below. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the money market.
| |
| • | The U.S. Treasury Temporary Guarantee Program provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008. |
| |
| • | Any increase in the number of shares an investor holds after the close of business on September 19, 2008, will not be guaranteed. |
| |
| • | If a customer closes his or her account with a fund or broker-dealer, any future investment in the fund will not be guaranteed. |
| |
| • | If the number of shares an investor holds fluctuates during the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. |
| |
| • | The Program, which was set to expire on December 18, 2008, has been extended by the |
2 Annual Report 2008
| |
| United States Treasury and is set to expire on April 30, 2009. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Class A shares at NAV. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Sales charge and fee information:
Nationwide Destination 2010 Fund
Nationwide Destination 2015 Fund
Nationwide Destination 2020 Fund
Nationwide Destination 2025 Fund
Nationwide Destination 2030 Fund
Nationwide Destination 2035 Fund
Nationwide Destination 2040 Fund
Nationwide Destination 2045 Fund
Nationwide Destination 2050 Fund
Nationwide Retirement Income Fund
The Funds have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower.
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 1-800-848-0920 to request a prospectus, or download a prospectus at nationwidefunds.com. Please read it carefully before investing any money.
Day-to-day market activity will likely cause a Fund’s asset allocations to fluctuate. Under ordinary circumstances, the Adviser will periodically rebalance the assets of each Fund in order to conform its actual allocations to those stated in the then-current prospectus. For more information, refer to the Funds’ prospectus.
Asset allocation is the process of spreading assets across several different investment styles and asset classes. The objective is to reduce long-term risk and capture potential profits across various asset classes. Asset allocation does not ensure a profit nor protect against losses.
The Funds’ adviser or its employees may have a position in the securities named in this report. Except where otherwise indicated, the views and opinions expressed herein are those of Nationwide Funds Group as of the date noted, are subject to change at any time, and may not come to pass.
Nationwide Funds distributed by Nationwide Fund Distributors LLC, Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428.
Nationwide Funds Group (NFG) is the mutual fund arm of Nationwide Financial Services, Inc. (NYSE: NFS). Based in Conshohocken, Pa., a suburb of Philadelphia, NFG comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to the Nationwide Funds. NFS is an affiliate of Nationwide Mutual Insurance Company.
2008 Annual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the year ended October 31, 2008.
The economic conditions during the reporting period were driven by events that began to take shape in mid-year 2007 as the bursting of the U.S. housing bubble triggered a number of collateral impacts across the global economy. Specifically, substantial dislocations occurred in global financial markets. The financial imbalances and subprime mortgage default issues that became obvious to everyone in late 2007 mushroomed into a global financial crisis marked by diminishing liquidity and plunging asset values.
Financial services and cyclical stocks were the areas most aggressively pressured during the reporting period as the economy slowed and the residential housing market and the mortgages backing it soured. These problems included: (1) the failures of several prominent U.S. financial institutions; (2) the U.S. government’s takeover of Fannie Mae and Freddie Mac (the government-sponsored enterprises representing a large portion of the U.S. residential mortgage market); (3) the reorganization of Wall Street’s remaining investment banks (The Goldman Sachs Group, Inc. and Morgan Stanley) as bank holding companies; and (4) the need to pass a $700 billion Troubled Asset Relief Program (TARP) bill by the U.S. Congress.
In short, the reporting period was filled with events that have not happened in more than 50 years, and, in many cases, since the Great Depression. Worldwide recession fears, fueled by these financial problems, resulted in sizable double-digit declines in nearly all segments of the investment market as well as increased volatility throughout the reporting period, along with rapid changes in relative performance among economic sectors. This was especially true in commodities; prices both surged and fell sharply during the course of the reporting period.
Large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, fell 36% during the reporting period as credit markets deteriorated and market volatility reached record levels. Mid-cap U.S. equities, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 37%, and small-cap U.S. equities, as measured by the Russell 2000® Index, declined 34%.
In general, international stocks were even more negatively affected than U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost more than 46% during the reporting period, including a loss of more than 34% during the last three months of the period. Emerging market stocks, as measured by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, lost more than 56% during the reporting period, including a loss of more than 44% during the last three months of the period.
The reporting period was a time of general disappointment for fixed-income investors as well. The broad-based Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] gained a mere 0.31%. Continuing credit market woes, however, coupled with uncertainty about the extent of government intervention to help ease the liquidity crunch, served to drag down U.S. investment-grade corporate bonds by nearly 14% during the reporting period.
4 Annual Report 2008
| |
| Nationwide Destination 2010 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2010 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2010 Fund (Class A at NAV) registered -25.92% versus -13.18% for its benchmark, the Dow Jones (DJ) Target 2010 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2010 Funds (consisting of 168 funds as of October 31, 2008) was -25.81% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Short Term Bond ETF and the Nationwide Money Market Fund (with allocations within the Fund of approximately 8% and 2%, respectively) provided the most positive returns for the Fund, gaining 3.60% and 2.65 %, respectively, during the reporting period. As risk aversion in the U.S. bond market grew throughout the period, the Vanguard Short Term Bond ETF benefited from a large allocation to U.S. Treasury and Agency bonds (67% of the Fund at the end of the period) and high-credit-quality bonds (75% of the Fund rated AAA by Moody’s Investors Service at the end of the period).
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 18% and 5%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 5
Nationwide Destination 2010 Fund
(Continued)
Nationwide Target Destination 2010 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index | | | 25% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 13% | | | | -46.44% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 12% | | | | 0.03% | |
| |
| |
| Inflation-Protected Bonds | | iShares Lehman TIPS Bond Fund (ETF) | | | 12% | | | | -4.22% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 9% | | | | -36.63% | |
| |
| |
| Short-Term Bonds | | Vanguard Short Term Bond (ETF) | | | 8% | | | | 3.60% | |
| |
| |
| International Bonds | | Oppenheimer International Bond Fund | | | 5% | | | | -8.91% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 4% | | | | -34.45% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 4% | | | | -27.08% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 2% | | | | -56.62% | |
| |
| |
| High Yield Bonds | | T.Rowe Price Institutional High Yield Bond Fund | | | 2% | | | | -20.62% | |
| |
| |
| Money Market Investments | | Nationwide Money Market Fund | | | 2% | | | | 2.64% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 1% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 1% | | | | -54.97% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
6 Annual Report 2008
| |
| Fund Performance | Nationwide Destination 2010 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -25.92% | | | | -18.80% | | | | 1.32% | | | | 1.15% | |
| | | w/SC3 | | | -30.26% | | | | -22.90% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -26.48% | | | | -19.41% | | | | 1.82% | | | | 1.65% | |
| | | w/SC4 | | | -27.20% | | | | -19.41% | | | | | | | | | |
| |
| |
Class R12 | | | | | -26.37% | | | | -19.21% | | | | 1.72% | | | | 1.55% | |
| |
| |
Class R22 | | | | | -26.14% | | | | -19.07% | | | | 1.57% | | | | 1.40% | |
| |
| |
Institutional Service Class2 | | | | | -25.97% | | | | -18.83% | | | | 1.07% | | | | 0.90% | |
| |
| |
Institutional Class2 | | | | | -25.69% | | | | -18.55% | | | | 0.82% | | | | 0.65% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2010 Fund, the Dow Jones Target 2010 Index(a), the Lehman U.S. Aggregate Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Lehman U.S. Aggregate Index is an unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or |
2008 Annual Report 7
| |
| Fund Performance | Nationwide Destination 2010 Fund |
Continued
| | |
| | more) that is generally representative of the bond market as a whole. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
8 Annual Report 2008
| |
| Shareholder | Nationwide Destination 2010 Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2010 Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 765.16 | | | | 2.45 | | | | 0.55 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.36 | | | | 2.81 | | | | 0.55 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 762.09 | | | | 6.52 | | | | 1.47 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,017.73 | | | | 7.50 | | | | 1.47 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 764.37 | | | | 4.20 | | | | 0.95 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.38 | | | | 4.82 | | | | 0.95 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 763.82 | | | | 4.48 | | | | 1.01 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.06 | | | | 5.14 | | | | 1.01 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 765.53 | | | | 2.02 | | | | 0.46 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.85 | | | | 2.32 | | | | 0.46 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 766.32 | | | | 1.47 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.48 | | | | 1.68 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 9
| |
| Portfolio Summary | Nationwide Destination 2010 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 75.6% | |
| Exchange Traded Funds | | | 24.2% | |
| Other assets in excess of liabilities | | | 0.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 57.0% | |
| Fixed Income Funds | | | 40.6% | |
| Money Market Fund | | | 2.2% | |
| Other | | | 0.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 25.0% | |
| Nationwide Bond Index Fund, Institutional Class | | | 12.9% | |
| Nationwide International Index Fund, Institutional Class | | | 12.3% | |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 12.0% | |
| Vanguard Short-Term Bond Fund | | | 8.6% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 8.5% | |
| Oppenheimer International Bond Fund, Class Y | | | 5.2% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 3.8% | |
| Credit Suisse Commodity Return Strategy Fund | | | 3.6% | |
| Nationwide Money Market Fund, Institutional Class | | | 2.2% | |
| Other | | | 5.9% | |
| | | | | |
| | | | 100.0% | |
10 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Destination 2010 Fund
| | | | | | | | | |
| Mutual Funds 75.6% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 53.4% |
| Credit Suisse Commodity Return Strategy Fund | | | 37,279 | | | $ | 320,971 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 171,064 | | | | 1,086,260 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 75,699 | | | | 753,960 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 271,555 | | | | 2,207,743 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 40,434 | | | | 336,813 | |
| | | | | | | | | |
| | | | | | | | 4,705,747 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 20.0% |
| Nationwide Bond Index Fund, Institutional Class(a) | | | 110,394 | | | | 1,138,159 | |
| Oppenheimer International Bond Fund, Class Y | | | 82,138 | | | | 455,046 | |
| T. Rowe Price High Yield Bond Fund | | | 23,355 | | | | 171,893 | |
| | | | | | | | | |
| | | | | | | | 1,765,098 | |
| | | | | | | | | |
| |
| |
Money Market Fund 2.2%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 195,903 | | | | 195,903 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 6,666,748 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 24.2% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 3.6% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 2,738 | | | | 78,033 | |
| Vanguard Emerging Markets Fund | | | 6,402 | | | | 161,394 | |
| Vanguard REIT Fund | | | 1,843 | | | | 76,503 | |
| | | | | | | | | |
| | | | | | | | 315,930 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 20.6% |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 11,523 | | | | 1,061,268 | |
| Vanguard Short-Term Bond Fund | | | 10,048 | | | | 757,318 | |
| | | | | | | | | |
| | | | | | | | 1,818,586 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 2,134,516 | |
| | | | | |
| | | | | |
Total Investments (Cost $10,692,281) (b) — 99.8% | | | 8,801,264 | |
Other assets in excess of liabilities — 0.2% | | | | | | | 17,047 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 8,818,311 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 11
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2010 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $3,630,804) | | | $ | 3,082,427 | |
| Investments in affiliates, at value (cost $7,061,477 ) | | | | 5,718,837 | |
| | | | | | |
| Total Investments | | | | 8,801,264 | |
| | | | | | |
| Cash | | | | 80,307 | |
| Dividends receivable from affiliates | | | | 4,272 | |
| Dividends receivable from non-affiliates | | | | 1,578 | |
| Receivable for capital shares issued | | | | 80,220 | |
| Prepaid expenses and other assets | | | | 340 | |
| | | | | | |
| Total Assets | | | | 8,967,981 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 138,862 | |
| Payable for capital shares redeemed | | | | 5,719 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 2,169 | |
| Distribution fees | | | | 2,920 | |
| | | | | | |
| Total Liabilities | | | | 149,670 | |
| | | | | | |
Net Assets | | | $ | 8,818,311 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 10,896,308 | |
| Accumulated undistributed net investment income | | | | 13,769 | |
| Accumulated net realized losses from investment transactions | | | | (200,749 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (1,342,640 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (548,377 | ) |
| | | | | | |
Net Assets | | | $ | 8,818,311 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 388,803 | |
| Class C Shares | | | | 776 | |
| Class R1 | | | | 1,163,575 | |
| Class R2 | | | | 6,269,221 | |
| Institutional Service Class Shares | | | | 784 | |
| Institutional Class Shares | | | | 995,152 | |
| | | | | | |
| Total | | | $ | 8,818,311 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
12 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2010 Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 51,234 | |
| Class C Shares | | | | 102 | |
| Class R1 Shares | | | | 153,604 | |
| Class R2 Shares | | | | 828,320 | |
| Institutional Service Class Shares | | | | 103 | |
| Institutional Class Shares | | | | 131,110 | |
| | | | | | |
| Total | | | | 1,164,473 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.59 | |
| Class C Shares (a) | | | $ | 7.58 | (b) |
| Class R1 Shares | | | $ | 7.58 | |
| Class R2 Shares | | | $ | 7.57 | |
| Institutional Service Class Shares | | | $ | 7.58 | (b) |
| Institutional Class Shares | | | $ | 7.59 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 8.05 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares half less than one year. |
| |
| (b) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 13
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2010
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 75,368 | |
| Dividend income | | | | 83,115 | |
| Interest income | | | | 20 | |
| | | | | | |
| Total Income | | | | 158,503 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 19,728 | |
| Distribution fees Class A | | | | 592 | |
| Distribution fees Class C | | | | 11 | |
| Distribution fees Class R1 | | | | 3,342 | |
| Distribution fees Class R2 | | | | 13,872 | |
| Administrative servicing fees Class A | | | | 110 | |
| Administrative servicing fees Class R1 | | | | 163 | |
| Administrative servicing fees Class R2 | | | | 5,181 | |
| Administrative servicing fees Institutional Service Class | | | | 2 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 43,001 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (4,387 | ) |
| | | | | | |
| Net Expenses | | | | 38,614 | |
| | | | | | |
Net Investment Income | | | | 119,889 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 14,269 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 385 | |
| Net realized gains from investment transactions with affiliates | | | | 164,638 | |
| Net realized losses from investment transactions with non-affiliates | | | | (377,928 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (198,636 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (1,376,504 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (565,338 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,941,842 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (2,140,478 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (2,020,589 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
14 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2010 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 (a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 119,889 | | | | $ | 5,396 | |
| Net realized gains (losses) from investment transactions | | | | (198,636 | ) | | | | 3,303 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,941,842 | ) | | | | 50,825 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (2,020,589 | ) | | | | 59,524 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (5,614 | ) | | | | (3 | ) |
| Class C | | | | (18 | ) | | | | (3 | ) |
| Class R1 | | | | (11,486 | ) | | | | (3 | ) |
| Class R2 | | | | (60,713 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (26 | ) | | | | (4 | ) |
| Institutional Class | | | | (32,034 | ) | | | | (3,776 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (32 | ) | | | | – | |
| Class C | | | | (3 | ) | | | | – | |
| Class R1 | | | | (3 | ) | | | | – | |
| Class R2 | | | | (356 | ) | | | | – | |
| Institutional Service Class | | | | (3 | ) | | | | – | |
| Institutional Class | | | | (2,906 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (113,194 | ) | | | | (3,792 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 9,801,867 | | | | | 1,094,495 | |
| | | | | | | | | | | |
| Change in net assets | | | | 7,668,084 | | | | | 1,150,227 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,150,227 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 8,818,311 | | | | $ | 1,150,227 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 13,769 | | | | $ | 1,626 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 975,476 | | | | $ | 7,969 | |
| Dividends reinvested | | | | 5,646 | | | | | 3 | |
| Cost of shares redeemed | | | | (490,587 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 490,535 | | | | | 7,972 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 1,000 | |
| Dividends reinvested | | | | 21 | | | | | 3 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 21 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 15
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2010 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 (a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,661,505 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 11,488 | | | | | 3 | |
| Cost of shares redeemed | | | | (208,129 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 1,464,864 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 8,625,649 | | | | | 77,892 | |
| Dividends reinvested | | | | 61,069 | | | | | 3 | |
| Cost of shares redeemed | | | | (1,138,307 | ) | | | | (17 | ) |
| | | | | | | | | | | |
| Total Class R2 | | | | 7,548,411 | | | | | 77,878 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 1,000 | |
| Dividends reinvested | | | | 29 | | | | | 4 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 29 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 286,420 | | | | | 1,001,861 | |
| Dividends reinvested | | | | 34,940 | | | | | 3,776 | |
| Cost of shares redeemed | | | | (23,353 | ) | | | | (2 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 298,007 | | | | | 1,005,635 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 9,801,867 | | | | $ | 1,094,495 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 100,000 | | | | | 772 | |
| Reinvested | | | | 603 | | | | | – | |
| Redeemed | | | | (50,141 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 50,462 | | | | | 772 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 100 | |
| Reinvested | | | | 2 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 2 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 178,490 | | | | | 100 | |
| Reinvested | | | | 1,246 | | | | | – | |
| Redeemed | | | | (26,232 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 153,504 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
16 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2010 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 (a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 941,223 | | | | | 7,480 | |
| Reinvested | | | | 6,562 | | | | | – | |
| Redeemed | | | | (126,943 | ) | | | | (2 | ) |
| | | | | | | | | | | |
| Total R2 Shares | | | | 820,842 | | | | | 7,478 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 100 | |
| Reinvested | | | | 3 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 3 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 29,444 | | | | | 100,163 | |
| Reinvested | | | | 3,594 | | | | | 369 | |
| Redeemed | | | | (2,460 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 30,578 | | | | | 100,532 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 1,055,391 | | | | | 109,082 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 17
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2010 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .54 | | | | 0 | .25 | | | | (2 | .92) | | | | (2 | .67) | | | | (0 | .25) | | | | (0 | .03) | | | | (0 | .28) | | | $ | 7 | .59 | | | | (25 | .92%) | | | $ | 388,803 | | | | | 0 | .63% | | | | 2 | .73% | | | | 0 | .73% | | | | 42 | .69% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .54 | | | | 0 | .57 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .54 | | | | 5 | .74% | | | $ | 8,142 | | | | | 0 | .90% | | | | 1 | .48% | | | | 1 | .36% | | | | 6 | .28% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .53 | | | | 0 | .20 | | | | (2 | .94) | | | | (2 | .74) | | | | (0 | .18) | | | | (0 | .03) | | | | (0 | .21) | | | $ | 7 | .58 | | | | (26 | .48%) | | | $ | 776 | | | | | 1 | .42% | | | | 2 | .08% | | | | 1 | .46% | | | | 42 | .69% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .52 | | | | 0 | .56 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .53 | | | | 5 | .61% | | | $ | 1,056 | | | | | 1 | .42% | | | | 2 | .01% | | | | 1 | .42% | | | | 6 | .28% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .53 | | | | 0 | .22 | | | | (2 | .93) | | | | (2 | .71) | | | | (0 | .21) | | | | (0 | .03) | | | | (0 | .24) | | | $ | 7 | .58 | | | | (26 | .37%) | | | $ | 1,163,575 | | | | | 1 | .01% | | | | 2 | .38% | | | | 1 | .09% | | | | 42 | .69% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .52 | | | | 0 | .56 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .53 | | | | 5 | .61% | | | $ | 1,056 | | | | | 1 | .42% | | | | 2 | .01% | | | | 1 | .42% | | | | 6 | .28% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .53 | | | | 0 | .22 | | | | (2 | .91) | | | | (2 | .69) | | | | (0 | .24) | | | | (0 | .03) | | | | (0 | .27) | | | $ | 7 | .57 | | | | (26 | .14%) | | | $ | 6,269,221 | | | | | 1 | .02% | | | | 2 | .37% | | | | 1 | .10% | | | | 42 | .69% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | – | | | | | 0 | .56 | | | | 0 | .56 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .53 | | | | 5 | .64% | | | $ | 78,799 | | | | | 1 | .08% | | | | 0 | .05% | | | | 1 | .24% | | | | 6 | .28% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .54 | | | | 0 | .28 | | | | (2 | .95) | | | | (2 | .67) | | | | (0 | .26) | | | | (0 | .03) | | | | (0 | .29) | | | $ | 7 | .58 | | | | (25 | .97%) | | | $ | 784 | | | | | 0 | .59% | | | | 2 | .90% | | | | 0 | .59% | | | | 42 | .69% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .53 | | | | 0 | .58 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .54 | | | | 5 | .76% | | | $ | 1,058 | | | | | 0 | .71% | | | | 2 | .69% | | | | 0 | .71% | | | | 6 | .28% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .54 | | | | 0 | .31 | | | | (2 | .95) | | | | (2 | .64) | | | | (0 | .28) | | | | (0 | .03) | | | | (0 | .31) | | | $ | 7 | .59 | | | | (25 | .69%) | | | $ | 995,152 | | | | | 0 | .33% | | | | 3 | .17% | | | | 0 | .46% | | | | 42 | .69% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .53 | | | | 0 | .58 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .54 | | | | 5 | .79% | | | $ | 1,060,116 | | | | | 0 | .33% | | | | 3 | .02% | | | | 0 | .50% | | | | 6 | .28% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
18 Annual Report 2008
| |
| Nationwide Destination 2015 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2015 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2015 Fund (Class A at NAV) registered -27.16% versus -18.36% for its benchmark, the Dow Jones (DJ) Target 2015 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2015 Funds (consisting of 108 funds as of October 31, 2008) was -29.02% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Short Term Bond ETF and the Nationwide Money Market Fund (with allocations within the Fund of approximately 7% and 1%, respectively) provided the most positive returns for the Fund, gaining 3.60% and 2.65%, respectively, during the reporting period. As risk aversion in the U.S. bond market grew throughout the period, the Vanguard Short Term Bond ETF benefited from a large allocation to U.S. Treasury and Agency bonds (67% of the Fund at the end of the period) and high-credit-quality bonds (75% of the Fund rated AAA by Moody’s Investors Service at the end of the period).
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 25% and 15%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments and how each underlying fund performed during the reporting period. These allocations are subject to change at any time and without notice.
2008 Annual Report 19
Nationwide Destination 2015 Fund
(Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
Nationwide Target Destination 2015 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 25% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 15% | | | | -46.44% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 14% | | | | 0.03% | |
| |
| |
| Inflation-Protected Bonds | | iShares Lehman TIPS Bond Fund (ETF) | | | 11% | | | | -4.22% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 9% | | | | -36.63% | |
| |
| |
| Short-Term Bonds | | Vanguard Short Term Bond (ETF) | | | 7% | | | | 3.60% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 5% | | | | -34.45% | |
| |
| |
| International Bonds | | Oppenheimer International Bond Fund | | | 4% | | | | -8.92% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 4% | | | | -27.08% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 2% | | | | -56.62% | |
| |
| |
| High Yield Bonds | | T.Rowe Price Institutional High Yield Bond Fund | | | 1% | | | | -20.56% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 1% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 1% | | | | -54.97% | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
20 Annual Report 2008
| |
| Fund Performance | Nationwide Destination 2015 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -27.16% | | | | -19.84% | | | | 1.31% | | | | 1.14% | |
| | | w/SC3 | | | -31.43% | | | | -23.88% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -27.56% | | | | -20.29% | | | | 1.81% | | | | 1.64% | |
| | | w/SC4 | | | -28.27% | | | | -20.29% | | | | | | | | | |
| |
| |
Class R12 | | | | | -27.49% | | | | -20.22% | | | | 1.71% | | | | 1.54% | |
| |
| |
Class R22 | | | | | -27.43% | | | | -20.09% | | | | 1.56% | | | | 1.39% | |
| |
| |
Institutional Service Class2 | | | | | -27.15% | | | | -19.80% | | | | 1.06% | | | | 0.89% | |
| |
| |
Institutional Class2 | | | | | -26.80% | | | | -19.46% | | | | 0.81% | | | | 0.64% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations August 30, 2007 |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2015 Fund, Dow Jones Target 2015 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
2008 Annual Report 21
| |
| Fund Performance | Nationwide Destination 2015 Fund |
Continued
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
22 Annual Report 2008
| |
| Shareholder | Nationwide Destination 2015 Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2015 Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 757.82 | | | | 2.56 | | | | 0.58 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.22 | | | | 2.95 | | | | 0.58 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 755.05 | | | | 5.92 | | | | 1.34 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.39 | | | | 6.83 | | | | 1.34 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 755.53 | | | | 4.81 | | | | 1.09 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.66 | | | | 5.55 | | | | 1.09 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 755.81 | | | | 4.24 | | | | 0.96 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.30 | | | | 4.89 | | | | 0.96 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 756.96 | | | | 2.60 | | | | 0.59 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.17 | | | | 3.00 | | | | 0.59 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 758.56 | | | | 1.46 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.47 | | | | 1.68 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 23
| |
| Portfolio Summary | Nationwide Destination 2015 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 77.5% | |
| Exchange Traded Funds | | | 22.4% | |
| Other assets in excess of liabilities | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 59.4% | |
| Fixed Income Funds | | | 39.4% | |
| Money Market Fund | | | 1.1% | |
| Other | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 25.0% | |
| Nationwide Bond Index Fund, Institutional Class | | | 15.3% | |
| Nationwide International Index Fund, Institutional Class | | | 14.1% | |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 11.2% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 8.5% | |
| Vanguard Short-Term Bond Fund | | | 7.7% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 4.7% | |
| Oppenheimer International Bond Fund, Class Y | | | 4.2% | |
| Credit Suisse Commodity Return Strategy Fund | | | 3.6% | |
| Vanguard Emerging Markets Fund | | | 1.8% | |
| Other | | | 3.9% | |
| | | | | |
| | | | 100.0% | |
24 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Destination 2015 Fund
| | | | | | | | | |
| Mutual Funds 77.5% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 55.9% |
| Credit Suisse Commodity Return Strategy Fund | | | 83,821 | | | $ | 721,695 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 439,695 | | | | 2,792,065 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 168,709 | | | | 1,680,339 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 610,876 | | | | 4,966,425 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 112,614 | | | | 938,074 | |
| | | | | | | | | |
| | | | | | | | 11,098,598 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 20.5% |
| Nationwide Bond Index Fund, Institutional Class(a) | | | 294,177 | | | | 3,032,967 | |
| Oppenheimer International Bond Fund, Class Y | | | 149,642 | | | | 829,019 | |
| T. Rowe Price High Yield Bond Fund | | | 26,471 | | | | 194,824 | |
| | | | | | | | | |
| | | | | | | | 4,056,810 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.1%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 224,017 | | | | 224,017 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 15,379,425 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 22.4% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 3.5% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 6,114 | | | | 174,249 | |
| Vanguard Emerging Markets Fund | | | 14,284 | | | | 360,100 | |
| Vanguard REIT Fund | | | 4,082 | | | | 169,444 | |
| | | | | | | | | |
| | | | | | | | 703,793 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 18.9% |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 24,143 | | | | 2,223,570 | |
| Vanguard Short-Term Bond Fund | | | 20,198 | | | | 1,522,323 | |
| | | | | | | | | |
| | | | | | | | 3,745,893 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 4,449,686 | |
| | | | | |
| | | | | |
Total Investments (Cost $24,934,113) (b) — 99.9% | | | 19,829,111 | |
Other assets in excess of liabilities — 0.1% | | | | | | | 12,988 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 19,842,099 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 25
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2015 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $7,447,180) | | | $ | 6,195,225 | |
| Investments in affiliates, at value (cost $17,486,933 ) | | | | 13,633,886 | |
| | | | | | |
| Total Investments | | | | 19,829,111 | |
| | | | | | |
| Cash | | | | 207,992 | |
| Dividends receivable from affiliates | | | | 11,462 | |
| Dividends receivable from non-affiliates | | | | 3,168 | |
| Receivable for capital shares issued | | | | 158,563 | |
| | | | | | |
| Total Assets | | | | 20,210,296 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 274,224 | |
| Payable for capital shares redeemed | | | | 81,982 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 5,225 | |
| Distribution fees | | | | 5,266 | |
| Administrative servicing fees | | | | 1,500 | |
| | | | | | |
| Total Liabilities | | | | 368,197 | |
| | | | | | |
Net Assets | | | $ | 19,842,099 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 25,079,730 | |
| Accumulated undistributed net investment income | | | | 28,846 | |
| Accumulated net realized losses from investment transactions | | | | (161,475 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (3,853,047 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (1,251,955 | ) |
| | | | | | |
Net Assets | | | $ | 19,842,099 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 545,547 | |
| Class C Shares | | | | 5,118 | |
| Class R1 | | | | 1,265,457 | |
| Class R2 | | | | 11,194,278 | |
| Institutional Service Class Shares | | | | 5,392,911 | |
| Institutional Class Shares | | | | 1,438,788 | |
| | | | | | |
| Total | | | $ | 19,842,099 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
26 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2015 Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 72,680 | |
| Class C Shares | | | | 681 | |
| Class R1 Shares | | | | 169,006 | |
| Class R2 Shares | | | | 1,494,059 | |
| Institutional Service Class Shares | | | | 717,690 | |
| Institutional Class Shares | | | | 191,195 | |
| | | | | | |
| Total | | | | 2,645,311 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.51 | |
| Class C Shares (a) | | | $ | 7.51 | (b) |
| Class R1 Shares | | | $ | 7.49 | |
| Class R2 Shares | | | $ | 7.49 | |
| Institutional Service Class Shares | | | $ | 7.51 | |
| Institutional Class Shares | | | $ | 7.53 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.97 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares half less than one year. |
| |
| (b) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 27
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2015
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 171,293 | |
| Dividend income | | | | 145,496 | |
| | | | | | |
| Total Income | | | | 316,789 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 38,792 | |
| Distribution fees Class A | | | | 752 | |
| Distribution fees Class C | | | | 42 | |
| Distribution fees Class R1 | | | | 3,174 | |
| Distribution fees Class R2 | | | | 27,615 | |
| Administrative servicing fees Class A | | | | 132 | |
| Administrative servicing fees Class R1 | | | | 616 | |
| Administrative servicing fees Class R2 | | | | 8,076 | |
| Administrative servicing fees Institutional Service Class | | | | 4,412 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 83,611 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (7,881 | ) |
| | | | | | |
| Net Expenses | | | | 75,730 | |
| | | | | | |
Net Investment Income | | | | 241,059 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 19,523 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 328 | |
| Net realized gains from investment transactions with affiliates | | | | 128,206 | |
| Net realized losses from investment transactions with non-affiliates | | | | (306,688 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (158,631 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (3,892,318 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (1,267,431 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,159,749 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (5,318,380 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (5,077,321 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
28 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2015 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 (a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 241,059 | | | | $ | 5,196 | |
| Net realized gains (losses) from investment transactions | | | | (158,631 | ) | | | | 737 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,159,749 | ) | | | | 54,747 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (5,077,321 | ) | | | | 60,680 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (7,580 | ) | | | | (3 | ) |
| Class C | | | | (68 | ) | | | | (3 | ) |
| Class R1 | | | | (9,787 | ) | | | | (3 | ) |
| Class R2 | | | | (119,814 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (45,344 | ) | | | | (4 | ) |
| Institutional Class | | | | (33,859 | ) | | | | (3,811 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (29 | ) | | | | – | |
| Class C | | | | (2 | ) | | | | – | |
| Class R1 | | | | (2 | ) | | | | – | |
| Class R2 | | | | (165 | ) | | | | – | |
| Institutional Service Class | | | | (1 | ) | | | | – | |
| Institutional Class | | | | (539 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (217,190 | ) | | | | (3,827 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 24,075,930 | | | | | 1,003,827 | |
| | | | | | | | | | | |
| Change in net assets | | | | 18,781,419 | | | | | 1,060,680 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,060,680 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 19,842,099 | | | | $ | 1,060,680 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 28,846 | | | | $ | 1,373 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 890,118 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 7,609 | | | | | 3 | |
| Cost of shares redeemed | | | | (196,106 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 701,621 | | | | | 1,003 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 5,679 | | | | | 1,000 | |
| Dividends reinvested | | | | 70 | | | | | 3 | |
| Cost of shares redeemed | | | | (10 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 5,739 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 29
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2015 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 (a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,719,581 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 9,789 | | | | | 3 | |
| Cost of shares redeemed | | | | (155,492 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 1,573,878 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 15,640,395 | | | | | 1,000 | |
| Dividends reinvested | | | | 119,979 | | | | | 3 | |
| Cost of shares redeemed | | | | (1,515,279 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R2 | | | | 14,245,095 | | | | | 1,003 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 7,344,599 | | | | | 1,000 | |
| Dividends reinvested | | | | 45,345 | | | | | 4 | |
| Cost of shares redeemed | | | | (709,620 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 6,680,324 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 895,259 | | | | | 995,000 | |
| Dividends reinvested | | | | 34,398 | | | | | 3,811 | |
| Cost of shares redeemed | | | | (60,384 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 869,273 | | | | | 998,811 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 24,075,930 | | | | $ | 1,003,827 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 92,478 | | | | | 100 | |
| Reinvested | | | | 815 | | | | | – | |
| Redeemed | | | | (20,713 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 72,580 | | | | | 100 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 575 | | | | | 100 | |
| Reinvested | | | | 7 | | | | | – | |
| Redeemed | | | | (1 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 581 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 183,811 | | | | | 100 | |
| Reinvested | | | | 1,069 | | | | | – | |
| Redeemed | | | | (15,974 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 168,906 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
30 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2015 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007 (a) | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 1,650,905 | | | | | 100 | |
| Reinvested | | | | 12,942 | | | | | – | |
| Redeemed | | | | (169,888 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 1,493,959 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 793,403 | | | | | 100 | |
| Reinvested | | | | 4,923 | | | | | – | |
| Redeemed | | | | (80,736 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 717,590 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 93,972 | | | | | 99,502 | |
| Reinvested | | | | 3,581 | | | | | 372 | |
| Redeemed | | | | (6,232 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 91,321 | | | | | 99,874 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 2,544,937 | | | | | 100,374 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 31
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2015 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .56 | | | | 0 | .27 | | | | (3 | .08) | | | | (2 | .81) | | | | (0 | .23) | | | | (0 | .01) | | | | (0 | .24) | | | $ | 7 | .51 | | | | (27 | .16%) | | | $ | 545,547 | | | | | 0 | .62% | | | | 2 | .88% | | | | 0 | .72% | | | | 28 | .09% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .54 | | | | 0 | .59 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .56 | | | | 5 | .94% | | | $ | 1,061 | | | | | 1 | .06% | | | | 2 | .92% | | | | 1 | .77% | | | | 1 | .12% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .55 | | | | 0 | .19 | | | | (3 | .05) | | | | (2 | .86) | | | | (0 | .17) | | | | (0 | .01) | | | | (0 | .18) | | | $ | 7 | .51 | | | | (27 | .56%) | | | $ | 5,118 | | | | | 1 | .34% | | | | 2 | .01% | | | | 1 | .45% | | | | 28 | .09% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .55 | | | | 0 | .58 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .55 | �� | | | 5 | .81% | | | $ | 1,059 | | | | | 1 | .42% | | | | 1 | .86% | | | | 1 | .42% | | | | 1 | .12% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .55 | | | | 0 | .20 | | | | (3 | .05) | | | | (2 | .85) | | | | (0 | .20) | | | | (0 | .01) | | | | (0 | .21) | | | $ | 7 | .49 | | | | (27 | .49%) | | | $ | 1,265,457 | | | | | 1 | .11% | | | | 2 | .21% | | | | 1 | .18% | | | | 28 | .09% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .55 | | | | 0 | .58 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .55 | | | | 5 | .81% | | | $ | 1,059 | | | | | 1 | .42% | | | | 1 | .86% | | | | 1 | .42% | | | | 1 | .12% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .56 | | | | 0 | .22 | | | | (3 | .06) | | | | (2 | .84) | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 7 | .49 | | | | (27 | .43%) | | | $ | 11,194,278 | | | | | 0 | .98% | | | | 2 | .40% | | | | 1 | .06% | | | | 28 | .09% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .21 | | | | 0 | .38 | | | | 0 | .59 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .56 | | | | 5 | .94% | | | $ | 1,076 | | | | | 1 | .06% | | | | 2 | .23% | | | | 1 | .06% | | | | 1 | .12% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .56 | | | | 0 | .26 | | | | (3 | .07) | | | | (2 | .81) | | | | (0 | .23) | | | | (0 | .01) | | | | (0 | .24) | | | $ | 7 | .51 | | | | (27 | .15%) | | | $ | 5,392,911 | | | | | 0 | .59% | | | | 2 | .86% | | | | 0 | .65% | | | | 28 | .09% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .55 | | | | 0 | .60 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .56 | | | | 5 | .97% | | | $ | 1,060 | | | | | 0 | .71% | | | | 2 | .57% | | | | 0 | .71% | | | | 1 | .12% | | |
32 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2015 Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .56 | | | | 0 | .29 | | | | (3 | .06) | | | | (2 | .77) | | | | (0 | .25) | | | | (0 | .01) | | | | (0 | .26) | | | $ | 7 | .53 | | | | (26 | .80%) | | | $ | 1,438,788 | | | | | 0 | .33% | | | | 3 | .02% | | | | 0 | .45% | | | | 28 | .09% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .55 | | | | 0 | .60 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .56 | | | | 6 | .00% | | | $ | 1,055,365 | | | | | 0 | .33% | | | | 2 | .91% | | | | 0 | .50% | | | | 1 | .12% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 33
| |
| Nationwide Destination 2020 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2020 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2020 Fund (Class A at NAV) registered
-29.28% versus -22.88% for its benchmark, the Dow Jones (DJ) Target 2020 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2020 Funds (consisting of 144 funds as of October 31, 2008) was -32.57% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Short Term Bond ETF and the Nationwide Money Market Fund (with allocations within the Fund of approximately 8% and 2%, respectively) provided the most positive returns for the Fund, gaining 3.60% and 2.65%, respectively, during the reporting period. As risk aversion in the U.S. bond market grew throughout the period, the Vanguard Short Term Bond ETF benefited from a large allocation to U.S. Treasury and Agency bonds (67% of the Fund at the end of the period) and high-credit-quality bonds (75% of the Fund rated AAA by Moody’s Investors Service at the end of the period).
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 26% and 17%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were, Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
34 Annual Report 2008
Nationwide Target Destination 2020 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 26% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 17% | | | | -46.44% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 16% | | | | 0.03% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 10% | | | | -36.63% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 6% | | | | -34.45% | |
| |
| |
| Inflation-Protected Bonds | | iShares Lehman TIPS Bond Fund (ETF) | | | 9% | | | | -4.22% | |
| |
| |
| Short-Term Bonds | | Vanguard Short Term Bond Funds | | | 5% | | | | 3.60% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 4% | | | | -27.08% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 3% | | | | -56.62% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 2% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate | | | 1% | | | | -54.97% | |
| | | (ETF) | | | | | | | | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
2008 Annual Report 35
| |
| Fund Performance | Nationwide Destination 2020 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -29.28% | | | | -21.56% | | | | 1.32% | | | | 1.15% | |
| | | w/SC3 | | | -33.46% | | | | -25.52% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -29.87% | | | | -22.20% | | | | 1.82% | | | | 1.65% | |
| | | w/SC4 | | | -30.55% | | | | -22.20% | | | | | | | | | |
| |
| |
Class R12 | | | | | -29.50% | | | | -21.86% | | | | 1.72% | | | | 1.55% | |
| |
| |
Class R22 | | | | | -29.53% | | | | -21.81% | | | | 1.57% | | | | 1.40% | |
| |
| |
Institutional Service Class2 | | | | | -29.23% | | | | -21.51% | | | | 1.07% | | | | 0.90% | |
| |
| |
Institutional Class2 | | | | | -28.98% | | | | -21.25% | | | | 0.82% | | | | 0.65% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2020 Fund, Dow Jones Target 2020 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
36 Annual Report 2008
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 37
| |
| Shareholder | Nationwide Destination 2020 Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2020 Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 742.03 | | | | 2.74 | | | | 0.63 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.99 | | | | 3.19 | | | | 0.63 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 738.19 | | | | 5.80 | | | | 1.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.46 | | | | 6.76 | | | | 1.33 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 740.47 | | | | 4.27 | | | | 0.98 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.23 | | | | 4.97 | | | | 0.98 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 740.00 | | | | 4.34 | | | | 0.99 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.14 | | | | 5.06 | | | | 0.99 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 742.24 | | | | 2.56 | | | | 0.58 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.20 | | | | 2.97 | | | | 0.58 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 742.85 | | | | 1.43 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.50 | | | | 1.66 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
38 Annual Report 2008
| |
| Portfolio Summary | Nationwide Destination 2020 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 79.8% | |
| Exchange Traded Funds | | | 20.1% | |
| Other assets in excess of liabilities | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 66.5% | |
| Fixed Income Funds | | | 32.3% | |
| Money Market Fund | | | 1.1% | |
| Other | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 26.2% | |
| Nationwide Bond Index Fund, Institutional Class | | | 17.6% | |
| Nationwide International Index Fund, Institutional Class | | | 16.0% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 9.5% | |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 9.2% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 5.7% | |
| Vanguard Short-Term Bond Fund | | | 5.5% | |
| Credit Suisse Commodity Return Strategy Fund | | | 3.7% | |
| Vanguard Emerging Markets Fund | | | 2.8% | |
| Vanguard REIT Fund | | | 1.7% | |
| Other | | | 2.1% | |
| | | | | |
| | | | 100.0% | |
2008 Annual Report 39
Statement of Investments
October 31, 2008
Nationwide Destination 2020 Fund
| | | | | | | | | |
| Mutual Funds 79.8% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 61.1% |
| Credit Suisse Commodity Return Strategy Fund | | | 87,212 | | | $ | 750,892 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 518,378 | | | | 3,291,700 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 195,128 | | | | 1,943,470 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 661,176 | | | | 5,375,360 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 140,606 | | | | 1,171,246 | |
| | | | | | | | | |
| | | | | | | | 12,532,668 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 17.6%(a) |
| Nationwide Bond Index Fund, Institutional Class | | | 349,654 | | | | 3,604,928 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.1%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 232,941 | | | | 232,941 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 16,370,537 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 20.1% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 5.4% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 6,350 | | | | 180,975 | |
| Vanguard Emerging Markets Fund | | | 22,299 | | | | 562,158 | |
| Vanguard REIT Fund | | | 8,495 | | | | 352,627 | |
| | | | | | | | | |
| | | | | | | | 1,095,760 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 14.7% |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 20,507 | | | | 1,888,695 | |
| Vanguard Short-Term Bond Fund | | | 14,984 | | | | 1,129,344 | |
| | | | | | | | | |
| | | | | | | | 3,018,039 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 4,113,799 | |
| | | | | |
| | | | | |
Total Investments (Cost $26,194,017) (b) — 99.9% | | | 20,484,336 | |
Other assets in excess of liabilities — 0.1% | | | | | | | 20,661 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 20,504,997 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
40 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2020 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $6,109,944) | | | $ | 4,864,691 | |
| Investments in affiliates, at value (cost $20,084,073 ) | | | | 15,619,645 | |
| | | | | | |
| Total Investments | | | | 20,484,336 | |
| | | | | | |
| Cash | | | | 105,868 | |
| Dividends receivable from affiliates | | | | 13,599 | |
| Receivable for capital shares issued | | | | 114,066 | |
| | | | | | |
| Total Assets | | | | 20,717,869 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 200,990 | |
| Payable for capital shares redeemed | | | | 111 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 5,013 | |
| Distribution fees | | | | 5,555 | |
| Administrative servicing fees | | | | 1,203 | |
| | | | | | |
| Total Liabilities | | | | 212,872 | |
| | | | | | |
Net Assets | | | $ | 20,504,997 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 26,236,277 | |
| Accumulated undistributed net investment income | | | | 24,849 | |
| Accumulated net realized losses from investment transactions | | | | (46,448 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (4,464,428 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (1,245,253 | ) |
| | | | | | |
Net Assets | | | $ | 20,504,997 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 2,080,684 | |
| Class C Shares | | | | 262,633 | |
| Class R1 | | | | 1,731,253 | |
| Class R2 | | | | 10,139,899 | |
| Institutional Service Class Shares | | | | 4,003,810 | |
| Institutional Class Shares | | | | 2,286,718 | |
| | | | | | |
| Total | | | $ | 20,504,997 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 41
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2020 Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 284,009 | |
| Class C Shares | | | | 36,038 | |
| Class R1 Shares | | | | 236,274 | |
| Class R2 Shares | | | | 1,386,851 | |
| Institutional Service Class Shares | | | | 546,513 | |
| Institutional Class Shares | | | | 311,579 | |
| | | | | | |
| Total | | | | 2,801,264 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.33 | |
| Class C Shares (a) | | | $ | 7.29 | |
| Class R1 Shares | | | $ | 7.33 | |
| Class R2 Shares | | | $ | 7.31 | |
| Institutional Service Class Shares | | | $ | 7.33 | |
| Institutional Class Shares | | | $ | 7.34 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.78 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares half less than one year. |
The accompanying notes are an integral part of these financial statements.
42 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2020
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 216,618 | |
| Dividend income | | | | 116,549 | |
| Interest income | | | | 28 | |
| | | | | | |
| Total Income | | | | 333,195 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 44,792 | |
| Distribution fees Class A | | | | 3,829 | |
| Distribution fees Class C | | | | 304 | |
| Distribution fees Class R1 | | | | 4,546 | |
| Distribution fees Class R2 | | | | 26,989 | |
| Administrative servicing fees Class A | | | | 1,685 | |
| Administrative servicing fees Class R1 | | | | 388 | |
| Administrative servicing fees Class R2 | | | | 9,740 | |
| Administrative servicing fees Institutional Service Class | | | | 3,546 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 95,819 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (9,862 | ) |
| | | | | | |
| Net Expenses | | | | 85,957 | |
| | | | | | |
Net Investment Income | | | | 247,238 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 23,759 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 20 | |
| Net realized gains from investment transactions with affiliates | | | | 26,016 | |
| Net realized losses from investment transactions with non-affiliates | | | | (92,715 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (42,920 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (4,507,904 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (1,261,212 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,769,116 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (5,812,036 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (5,564,798 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 43
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2020 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 247,238 | | | | $ | 4,977 | |
| Net realized gains (losses) from investment transactions | | | | (42,920 | ) | | | | 1,251 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,769,116 | ) | | | | 59,435 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (5,564,798 | ) | | | | 65,663 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (30,452 | ) | | | | (3 | ) |
| Class C | | | | (817 | ) | | | | (3 | ) |
| Class R1 | | | | (13,184 | ) | | | | (3 | ) |
| Class R2 | | | | (102,759 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (36,442 | ) | | | | (4 | ) |
| Institutional Class | | | | (43,404 | ) | | | | (3,867 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (246 | ) | | | | – | |
| Class C | | | | (1 | ) | | | | – | |
| Class R1 | | | | (1 | ) | | | | – | |
| Class R2 | | | | (204 | ) | | | | – | |
| Institutional Service Class | | | | (1 | ) | | | | – | |
| Institutional Class | | | | (798 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (228,309 | ) | | | | (3,883 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 25,174,704 | | | | | 1,061,620 | |
| | | | | | | | | | | |
| Change in net assets | | | | 19,381,597 | | | | | 1,123,400 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,123,400 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 20,504,997 | | | | $ | 1,123,400 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 24,849 | | | | $ | 1,103 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 2,805,820 | | | | $ | 45,456 | |
| Dividends reinvested | | | | 30,675 | | | | | 3 | |
| Cost of shares redeemed | | | | (157,992 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 2,678,503 | | | | | 45,459 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 309,717 | | | | | 1,000 | |
| Dividends reinvested | | | | 818 | | | | | 3 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 310,535 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
44 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2020 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 2,452,484 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 13,185 | | | | | 3 | |
| Cost of shares redeemed | | | | (320,516 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 2,145,153 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 13,617,431 | | | | | 14,286 | |
| Dividends reinvested | | | | 102,962 | | | | | 3 | |
| Cost of shares redeemed | | | | (745,026 | ) | | | | (5 | ) |
| | | | | | | | | | | |
| Total Class R2 | | | | 12,975,367 | | | | | 14,284 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 5,182,334 | | | | | 1,000 | |
| Dividends reinvested | | | | 36,442 | | | | | 4 | |
| Cost of shares redeemed | | | | (167,925 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 5,050,851 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,024,673 | | | | | 995,000 | |
| Dividends reinvested | | | | 44,202 | | | | | 3,867 | |
| Cost of shares redeemed | | | | (54,580 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 2,014,295 | | | | | 998,867 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 25,174,704 | | | | $ | 1,061,620 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 293,724 | | | | | 4,390 | |
| Reinvested | | | | 3,287 | | | | | – | |
| Redeemed | | | | (17,392 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 279,619 | | | | | 4,390 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 35,846 | | | | | 100 | |
| Reinvested | | | | 92 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 35,938 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 267,817 | | | | | 100 | |
| Reinvested | | | | 1,445 | | | | | – | |
| Redeemed | | | | (33,088 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 236,174 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 45
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2020 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 1,453,341 | | | | | 1,368 | |
| Reinvested | | | | 11,159 | | | | | – | |
| Redeemed | | | | (79,017 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 1,385,483 | | | | | 1,368 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 564,187 | | | | | 100 | |
| Reinvested | | | | 3,999 | | | | | – | |
| Redeemed | | | | (21,773 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 546,413 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 213,028 | | | | | 99,501 | |
| Reinvested | | | | 4,670 | | | | | 377 | |
| Redeemed | | | | (5,997 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 211,701 | | | | | 99,878 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 2,695,328 | | | | | 105,936 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
46 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2020 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .60 | | | | 0 | .22 | | | | (3 | .27) | | | | (3 | .05) | | | | (0 | .21) | | | | (0 | .01) | | | | (0 | .22) | | | $ | 7 | .33 | | | | (29 | .28%) | | | $ | 2,080,684 | | | | | 0 | .69% | | | | 2 | .37% | | | | 0 | .80% | | | | 16 | .46% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .01 | | | | 0 | .62 | | | | 0 | .63 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .60 | | | | 6 | .35% | | | $ | 46,521 | | | | | 0 | .85% | | | | 0 | .36% | | | | 1 | .09% | | | | 1 | .99% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .59 | | | | 0 | .12 | | | | (3 | .24) | | | | (3 | .12) | | | | (0 | .17) | | | | (0 | .01) | | | | (0 | .18) | | | $ | 7 | .29 | | | | (29 | .87%) | | | $ | 262,633 | | | | | 1 | .33% | | | | 1 | .52% | | | | 1 | .34% | | | | 16 | .46% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .59 | | | | 0 | .62 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .59 | | | | 6 | .22% | | | $ | 1,062 | | | | | 1 | .41% | | | | 1 | .62% | | | | 1 | .41% | | | | 1 | .99% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .59 | | | | 0 | .19 | | | | (3 | .27) | | | | (3 | .08) | | | | (0 | .17) | | | | (0 | .01) | | | | (0 | .18) | | | $ | 7 | .33 | | | | (29 | .50%) | | | $ | 1,731,253 | | | | | 1 | .03% | | | | 2 | .11% | | | | 1 | .12% | | | | 16 | .46% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .59 | | | | 0 | .62 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .59 | | | | 6 | .22% | | | $ | 1,062 | | | | | 1 | .41% | | | | 1 | .62% | | | | 1 | .41% | | | | 1 | .99% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .60 | | | | 0 | .19 | | | | (3 | .27) | | | | (3 | .08) | | | | (0 | .20) | | | | (0 | .01) | | | | (0 | .21) | | | $ | 7 | .31 | | | | (29 | .53%) | | | $ | 10,139,899 | | | | | 1 | .01% | | | | 2 | .08% | | | | 1 | .10% | | | | 16 | .46% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .01 | | | | 0 | .62 | | | | 0 | .63 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .60 | | | | 6 | .35% | | | $ | 14,496 | | | | | 0 | .88% | | | | 0 | .47% | | | | 1 | .03% | | | | 1 | .99% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .60 | | | | 0 | .24 | | | | (3 | .28) | | | | (3 | .04) | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 7 | .33 | | | | (29 | .23%) | | | $ | 4,003,810 | | | | | 0 | .58% | | | | 2 | .66% | | | | 0 | .65% | | | | 16 | .46% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .60 | | | | 0 | .64 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .60 | | | | 6 | .38% | | | $ | 1,064 | | | | | 0 | .71% | | | | 2 | .33% | | | | 0 | .71% | | | | 1 | .99% | | |
2008 Annual Report 47
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2020 Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .60 | | | | 0 | .27 | | | | (3 | .28) | | | | (3 | .01) | | | | (0 | .24) | | | | (0 | .01) | | | | (0 | .25) | | | $ | 7 | .34 | | | | (28 | .98%) | | | $ | 2,286,718 | | | | | 0 | .33% | | | | 2 | .85% | | | | 0 | .43% | | | | 16 | .46% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .59 | | | | 0 | .64 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .60 | | | | 6 | .40% | | | $ | 1,059,195 | | | | | 0 | .33% | | | | 2 | .79% | | | | 0 | .50% | | | | 1 | .99% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
48 Annual Report 2008
| |
| Nationwide Destination 2025 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2025 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2025 Fund (Class A at NAV) registered
-31.43% versus -27.03% for its benchmark, the Dow Jones (DJ) Target 2025 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2025 Funds (consisting of 87 funds as of October 31, 2008) was -35.31% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Short Term Bond ETF and the Nationwide Money Market Fund (with allocations within the Fund of approximately 3% and 1%, respectively) provided the most positive relative returns for the Fund, gaining 3.60% and 265%, respectively, during the reporting period. As risk aversion in the U.S. bond market grew throughout the period, the Vanguard Short Term Bond ETF benefited from a large allocation to U.S. Treasury and Agency bonds (67% of the Fund at the end of the period) and high-credit-quality bonds (75% of the Fund rated AAA by Moody’s Investors Service at the end of the period).
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 28% and 18%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 49
Nationwide Destination 2025 Fund
(Continued)
Nationwide Target Destination 2025 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 28% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 18% | | | | -46.44% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 13% | | | | 0.03% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 12% | | | | -36.63% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 8% | | | | -34.45% | |
| |
| |
| Inflation-Protected Bonds | | iShares Lehman TIPS Bond Fund (ETF) | | | 7% | | | | -4.22% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 4% | | | | -27.08% | |
| |
| |
| Short-Term Bonds | | Vanguard Short Term Bond Funds | | | 3% | | | | 3.60% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 3% | | | | -56.62% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 2% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 1% | | | | -54.97% | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
50 Annual Report 2008
| |
| Fund Performance | Nationwide Destination 2025 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -31.43% | | | | -23.37% | | | | 1.30% | | | | 1.13% | |
| | | w/SC3 | | | -35.48% | | | | -27.23% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -31.83% | | | | -23.77% | | | | 1.80% | | | | 1.63% | |
| | | w/SC4 | | | -32.50% | | | | -23.77% | | | | | | | | | |
| |
| |
Class R12 | | | | | -31.76% | | | | -23.69% | | | | 1.70% | | | | 1.53% | |
| |
| |
Class R22 | | | | | -31.69% | | | | -23.55% | | | | 1.55% | | | | 1.38% | |
| |
| |
Institutional Service Class2 | | | | | -31.57% | | | | -23.42% | | | | 1.05% | | | | 0.88% | |
| |
| |
Institutional Class2 | | | | | -31.22% | | | | -23.07% | | | | 0.80% | | | | 0.63% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2025 Fund, Dow Jones Target 2025 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
2008 Annual Report 51
| |
| Fund Performance | Nationwide Destination 2025 Fund |
Continued
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
52 Annual Report 2008
| |
| Shareholder | Nationwide Destination 2025 Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2025 Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 725.34 | | | | 2.17 | | | | 0.50 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.62 | | | | 2.54 | | | | 0.50 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 723.77 | | | | 5.73 | | | | 1.32 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.49 | | | | 6.73 | | | | 1.32 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 724.79 | | | | 4.31 | | | | 0.99 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.14 | | | | 5.06 | | | | 0.99 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 724.17 | | | | 3.78 | | | | 0.87 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.75 | | | | 4.44 | | | | 0.87 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 742.93 | | | | 2.49 | | | | 0.57 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.25 | | | | 2.92 | | | | 0.57 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 726.62 | | | | 1.42 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.50 | | | | 1.66 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 53
| |
| Portfolio Summary | Nationwide Destination 2025 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 84.0% | |
| Exchange Traded Funds | | | 16.0% | |
| Other assets in excess of liabilities | | | 0.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 74.1% | |
| Fixed Income Funds | | | 24.8% | |
| Money Market Fund | | | 1.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 28.5% | |
| Nationwide International Index Fund, Institutional Class | | | 17.2% | |
| Nationwide Bond Index Fund, Institutional Class | | | 14.3% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 11.5% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 7.7% | |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 7.2% | |
| Credit Suisse Commodity Return Strategy Fund | | | 3.7% | |
| Vanguard Short-Term Bond Fund | | | 3.3% | |
| Vanguard Emerging Markets Fund | | | 2.8% | |
| Vanguard REIT Fund | | | 1.8% | |
| Other | | | 2.0% | |
| | | | | |
| | | | 100.0% | |
54 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Destination 2025 Fund
| | | | | | | | | |
| Mutual Funds 84.0% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 68.6% |
| Credit Suisse Commodity Return Strategy Fund | | | 77,175 | | | $ | 664,473 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 487,454 | | | | 3,095,333 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 208,371 | | | | 2,075,377 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 630,587 | | | | 5,126,673 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 166,772 | | | | 1,389,208 | |
| | | | | | | | | |
| | | | | | | | 12,351,064 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 14.3%(a) |
| Nationwide Bond Index Fund, Institutional Class | | | 248,558 | | | | 2,562,628 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.1%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 203,690 | | | | 203,690 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 15,117,382 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 16.0% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 5.5% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 5,693 | | | | 162,250 | |
| Vanguard Emerging Markets Fund | | | 20,036 | | | | 505,108 | |
| Vanguard REIT Fund | | | 7,651 | | | | 317,592 | |
| | | | | | | | | |
| | | | | | | | 984,950 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 10.5% |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 14,043 | | | | 1,293,360 | |
| Vanguard Short-Term Bond Fund | | | 7,891 | | | | 594,745 | |
| | | | | | | | | |
| | | | | | | | 1,888,105 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 2,873,055 | |
| | | | | |
| | | | | |
Total Investments (Cost $23,155,014) (b) — 100.0% | | | 17,990,437 | |
Other assets in excess of liabilities — 0.0% | | | | | | | 3,698 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 17,994,135 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 55
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2025 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $4,530,288) | | | $ | 3,537,529 | |
| Investments in affiliates, at value (cost $18,624,726 ) | | | | 14,452,908 | |
| | | | | | |
| Total Investments | | | | 17,990,437 | |
| | | | | | |
| Cash | | | | 82,266 | |
| Dividends receivable from affiliates | | | | 9,402 | |
| Receivable for capital shares issued | | | | 32,250 | |
| Prepaid expenses and other assets | | | | 2,547 | |
| | | | | | |
| Total Assets | | | | 18,116,902 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 113,044 | |
| Payable for capital shares redeemed | | | | 72 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 4,160 | |
| Distribution fees | | | | 5,491 | |
| | | | | | |
| Total Liabilities | | | | 122,767 | |
| | | | | | |
Net Assets | | | $ | 17,994,135 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 23,238,509 | |
| Accumulated undistributed net investment income | | | | 18,404 | |
| Accumulated net realized losses from investment transactions | | | | (98,201 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (4,171,818 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (992,759 | ) |
| | | | | | |
Net Assets | | | $ | 17,994,135 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 1,020,031 | |
| Class C Shares | | | | 92,946 | |
| Class R1 | | | | 2,129,817 | |
| Class R2 | | | | 10,901,731 | |
| Institutional Service Class Shares | | | | 2,675,193 | |
| Institutional Class Shares | | | | 1,174,417 | |
| | | | | | |
| Total | | | $ | 17,994,135 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 142,867 | |
| Class C Shares | | | | 13,043 | |
| Class R1 Shares | | | | 298,439 | |
| Class R2 Shares | | | | 1,528,853 | |
| Institutional Service Class Shares | | | | 374,953 | |
| Institutional Class Shares | | | | 164,248 | |
| | | | | | |
| Total | | | | 2,522,403 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 7.14 | |
| Class C Shares (a) | | | $ | 7.13 | |
| Class R1 Shares | | | $ | 7.14 | |
| Class R2 Shares | | | $ | 7.13 | |
| Institutional Service Class Shares | | | $ | 7.13 | |
| Institutional Class Shares | | | $ | 7.15 | |
| |
| (a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares half less than one year. |
The accompanying notes are an integral part of these financial statements.
56 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2025 Fund | |
| | | | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.58 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 57
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2025
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 192,257 | |
| Dividend income | | | | 84,503 | |
| Interest income | | | | 44 | |
| | | | | | |
| Total Income | | | | 276,804 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 41,113 | |
| Distribution fees Class A | | | | 1,203 | |
| Distribution fees Class C | | | | 238 | |
| Distribution fees Class R1 | | | | 7,444 | |
| Distribution fees Class R2 | | | | 29,786 | |
| Administrative servicing fees Class R1 | | | | 739 | |
| Administrative servicing fees Class R2 | | | | 5,367 | |
| Administrative servicing fees Institutional Service Class | | | | 2,133 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 88,023 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (9,267 | ) |
| | | | | | |
| Net Expenses | | | | 78,756 | |
| | | | | | |
Net Investment Income | | | | 198,048 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 37,179 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 21 | |
| Net realized gains from investment transactions with affiliates | | | | 62,118 | |
| Net realized losses from investment transactions with non-affiliates | | | | (191,573 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (92,255 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (4,218,048 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (1,010,658 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,228,706 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (5,320,961 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (5,122,913 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
58 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2025 Fund | |
| | | | | |
| | | | Year Ended
| | | | | |
| | | | October 31, 2008 | | | | Period Ended October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 198,048 | | | | $ | 4,585 | |
| Net realized gains(losses) from investment transactions | | | | (92,255 | ) | | | | 783 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,228,706 | ) | | | | 64,129 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (5,122,913 | ) | | | | 69,497 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (10,560 | ) | | | | (3 | ) |
| Class C | | | | (722 | ) | | | | (3 | ) |
| Class R1 | | | | (18,886 | ) | | | | (3 | ) |
| Class R2 | | | | (105,833 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (20,248 | ) | | | | (4 | ) |
| Institutional Class | | | | (30,121 | ) | | | | (3,834 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (70 | ) | | | | – | |
| Class C | | | | – | | | | | – | |
| Class R1 | | | | – | | | | | – | |
| Class R2 | | | | (342 | ) | | | | – | |
| Institutional Service Class | | | | – | | | | | – | |
| Institutional Class | | | | (370 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (187,152 | ) | | | | (3,850 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 22,221,627 | | | | | 1,016,926 | |
| | | | | | | | | | | |
| Change in net assets | | | | 16,911,562 | | | | | 1,082,573 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,082,573 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 17,994,135 | | | | $ | 1,082,573 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 18,404 | | | | $ | 740 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,348,474 | | | | $ | 14,076 | |
| Dividends reinvested | | | | 10,630 | | | | | 3 | |
| Cost of shares redeemed | | | | (91,667 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 1,267,437 | | | | | 14,079 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 116,977 | | | | | 1,000 | |
| Dividends reinvested | | | | 722 | | | | | 3 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 117,699 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 59
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2025 Fund | |
| | | | | |
| | | | Year Ended
| | | | | |
| | | | October 31, 2008 | | | | Period Ended October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 3,348,171 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 18,886 | | | | | 3 | |
| Cost of shares redeemed | | | | (558,069 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 2,808,988 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 14,740,275 | | | | | 1,000 | |
| Dividends reinvested | | | | 106,174 | | | | | 3 | |
| Cost of shares redeemed | | | | (822,484 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R2 | | | | 14,023,965 | | | | | 1,003 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 3,500,018 | | | | | 1,000 | |
| Dividends reinvested | | | | 20,248 | | | | | 4 | |
| Cost of shares redeemed | | | | (134,385 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 3,385,881 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 803,522 | | | | | 995,000 | |
| Dividends reinvested | | | | 30,491 | | | | | 3,834 | |
| Cost of shares redeemed | | | | (216,356 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 617,657 | | | | | 998,834 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 22,221,627 | | | | $ | 1,016,926 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 151,217 | | | | | 1,344 | |
| Reinvested | | | | 1,149 | | | | | – | |
| Redeemed | | | | (10,843 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 141,523 | | | | | 1,344 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 12,862 | | | | | 100 | |
| Reinvested | | | | 81 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 12,943 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 357,995 | | | | | 100 | |
| Reinvested | | | | 2,089 | | | | | – | |
| Redeemed | | | | (61,745 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 298,339 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
60 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2025 Fund | |
| | | | | |
| | | | Year Ended
| | | | | |
| | | | October 31, 2008 | | | | Period Ended October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 1,607,098 | | | | | 100 | |
| Reinvested | | | | 11,549 | | | | | – | |
| Redeemed | | | | (89,894 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 1,528,753 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 388,290 | | | | | 100 | |
| Reinvested | | | | 2,242 | | | | | – | |
| Redeemed | | | | (15,679 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 374,853 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 83,227 | | | | | 99,501 | |
| Reinvested | | | | 3,196 | | | | | 373 | |
| Redeemed | | | | (22,049 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 64,374 | | | | | 99,874 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 2,420,785 | | | | | 101,618 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 61
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2025 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .64 | | | | 0 | .21 | | | | (3 | .51) | | | | (3 | .30) | | | | (0 | .20) | | | | – | | | | | (0 | .20) | | | $ | 7 | .14 | | | | (31 | .43%) | | | $ | 1,020,031 | | | | | 0 | .58% | | | | 2 | .34% | | | | 0 | .67% | | | | 20 | .79% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .01 | | | | 0 | .66 | | | | 0 | .67 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .64 | | | | 6 | .74% | | | $ | 14,300 | | | | | 0 | .88% | | | | 0 | .37% | | | | 1 | .23% | | | | 0 | .96% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .64 | | | | 0 | .19 | | | | (3 | .54) | | | | (3 | .35) | | | | (0 | .16) | | | | – | | | | | (0 | .16) | | | $ | 7 | .13 | | | | (31 | .83%) | | | $ | 92,946 | | | | | 1 | .33% | | | | 2 | .27% | | | | 1 | .38% | | | | 20 | .79% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .64 | | | | 0 | .67 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .64 | | | | 6 | .72% | | | $ | 1,067 | | | | | 1 | .41% | | | | 1 | .50% | | | | 1 | .41% | | | | 0 | .96% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .64 | | | | 0 | .16 | | | | (3 | .50) | | | | (3 | .34) | | | | (0 | .16) | | | | – | | | | | (0 | .16) | | | $ | 7 | .14 | | | | (31 | .76%) | | | $ | 2,129,817 | | | | | 1 | .04% | | | | 1 | .78% | | | | 1 | .13% | | | | 20 | .79% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .64 | | | | 0 | .67 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .64 | | | | 6 | .72% | | | $ | 1,067 | | | | | 1 | .41% | | | | 1 | .50% | | | | 1 | .41% | | | | 0 | .96% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .65 | | | | 0 | .17 | | | | (3 | .50) | | | | (3 | .33) | | | | (0 | .19) | | | | – | | | | | (0 | .19) | | | $ | 7 | .13 | | | | (31 | .69%) | | | $ | 10,901,731 | | | | | 0 | .92% | | | | 1 | .91% | | | | 1 | .01% | | | | 20 | .79% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .65 | | | | 0 | .68 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .65 | | | | 6 | .84% | | | $ | 1,068 | | | | | 1 | .06% | | | | 1 | .86% | | | | 1 | .06% | | | | 0 | .96% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .65 | | | | 0 | .21 | | | | (3 | .52) | | | | (3 | .31) | | | | (0 | .21) | | | | – | | | | | (0 | .21) | | | $ | 7 | .13 | | | | (31 | .57%) | | | $ | 2,675,193 | | | | | 0 | .57% | | | | 2 | .39% | | | | 0 | .63% | | | | 20 | .79% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .65 | | | | 0 | .69 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .65 | | | | 6 | .87% | | | $ | 1,070 | | | | | 0 | .70% | | | | 2 | .21% | | | | 0 | .70% | | | | 0 | .96% | | |
62 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2025 Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .65 | | | | 0 | .23 | | | | (3 | .50) | | | | (3 | .27) | | | | (0 | .23) | | | | – | | | | | (0 | .23) | | | $ | 7 | .15 | | | | (31 | .22%) | | | $ | 1,174,417 | | | | | 0 | .33% | | | | 2 | .47% | | | | 0 | .45% | | | | 20 | .79% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .64 | | | | 0 | .69 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .65 | | | | 6 | .90% | | | $ | 1,064,001 | | | | | 0 | .33% | | | | 2 | .57% | | | | 0 | .50% | | | | 0 | .96% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 63
| |
| Nationwide Destination 2030 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2030 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2030 Fund (Class A at NAV) registered
-34.43% versus -30.54% for its benchmark, the Dow Jones (DJ) Target 2030 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2030 Funds (consisting of 141 funds as of October 31, 2008) was -37.32% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Money Market Fund and the Nationwide Bond Index Fund (with allocations within the Fund of approximately 1% and 11%, respectively) provided the only positive returns for the Fund, gaining 2.65% and 0.04%, respectively, during the reporting period. The strongest performers in the Barclays Capital U.S. Aggregate Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Index] during the reporting period were U.S. Treasury, Agency and Agency mortgage-backed securities, which posted gains of 7.76%, 4.68% and 4.62% respectively, for the period. The broad corporate bond sector, however, dropped 13.82% and undermined most of the gains posted by other U.S. bond market sectors.
What areas detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 30% and 21%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
64 Annual Report 2008
Nationwide Target Destination 2030 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 30% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 21% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 13% | | | | -36.63% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 11% | | | | 0.03% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 8% | | | | -34.45% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 5% | | | | -27.08% | |
| |
| |
| Inflation-Protected Bonds | | iShares Lehman TIPS Bond Fund (ETF) | | | 4% | | | | -4.22% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 4% | | | | -56.62% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 2% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 1% | | | | -54.97% | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
2008 Annual Report 65
| |
| Fund Performance | Nationwide Destination 2030 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -34.43% | | | | -25.76% | | | | 1.32% | | | | 1.15% | |
| | | w/SC3 | | | -38.27% | | | | -29.51% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -34.81% | | | | -26.15% | | | | 1.82% | | | | 1.65% | |
| | | w/SC4 | | | -35.46% | | | | -26.15% | | | | | | | | | |
| |
| |
Class R12 | | | | | -34.70% | | | | -26.04% | | | | 1.72% | | | | 1.55% | |
| |
| |
Class R22 | | | | | -34.60% | | | | -25.93% | | | | 1.57% | | | | 1.40% | |
| |
| |
Institutional Service Class2 | | | | | -34.46% | | | | -25.72% | | | | 1.07% | | | | 0.90% | |
| |
| |
Institutional Class2 | | | | | -34.22% | | | | -25.47% | | | | 0.82% | | | | 0.65% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2030 Fund, Dow Jones Target 2030 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
66 Annual Report 2008
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2008 Annual Report 67
| |
| Shareholder | Nationwide Destination 2030 Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2030 Fund | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 701.72 | | | | 2.15 | | | | 0.50 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.61 | | | | 2.56 | | | | 0.50 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 699.71 | | | | 5.66 | | | | 1.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.47 | | | | 6.75 | | | | 1.33 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 700.27 | | | | 5.09 | | | | 1.19 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.15 | | | | 6.06 | | | | 1.19 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 700.82 | | | | 4.24 | | | | 0.99 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.15 | | | | 5.05 | | | | 0.99 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 701.78 | | | | 2.39 | | | | 0.56 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.33 | | | | 2.84 | | | | 0.56 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 702.48 | | | | 1.40 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.50 | | | | 1.66 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
68 Annual Report 2008
| |
| Portfolio Summary | Nationwide Destination 2030 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 89.4% | |
| Exchange Traded Funds | | | 10.5% | |
| Other assets in excess of liabilities | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 82.5% | |
| Fixed Income Funds | | | 16.3% | |
| Money Market Fund | | | 1.1% | |
| Other | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 30.8% | |
| Nationwide International Index Fund, Institutional Class | | | 20.3% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 12.6% | |
| Nationwide Bond Index Fund, Institutional Class | | | 12.2% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 7.8% | |
| Credit Suisse Commodity Return Strategy Fund | | | 4.6% | |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 4.1% | |
| Vanguard Emerging Markets Fund | | | 3.8% | |
| Vanguard REIT Fund | | | 1.7% | |
| Nationwide Money Market Fund, Institutional Class | | | 1.1% | |
| Other | | | 1.0% | |
| | | | | |
| | | | 100.0% | |
2008 Annual Report 69
Statement of Investments
October 31, 2008
Nationwide Destination 2030 Fund
| | | | | | | | | |
| Mutual Funds 89.4% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 76.1% |
| Credit Suisse Commodity Return Strategy Fund | | | 94,855 | | | $ | 816,702 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 561,152 | | | | 3,563,318 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 222,218 | | | | 2,213,289 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 665,321 | | | | 5,409,057 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 164,331 | | | | 1,368,880 | |
| | | | | | | | | |
| | | | | | | | 13,371,246 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 12.2%(a) |
| Nationwide Bond Index Fund, Institutional Class | | | 207,071 | | | | 2,134,905 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.1%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 200,489 | | | | 200,489 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 15,706,640 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 10.5% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 6.4% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 5,560 | | | | 158,460 | |
| Vanguard Emerging Markets Fund | | | 26,024 | | | | 656,065 | |
| Vanguard REIT Fund | | | 7,256 | | | | 301,197 | |
| | | | | | | | | |
| | | | | | | | 1,115,722 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 4.1% |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 7,850 | | | | 722,985 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 1,838,707 | |
| | | | | |
| | | | | |
Total Investments (Cost $23,168,166) (b) — 99.9% | | | 17,545,347 | |
Other assets in excess of liabilities — 0.1% | | | | | | | 25,329 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 17,570,676 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
70 Annual Report 2008
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2030 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $3,708,514) | | | $ | 2,655,409 | |
| Investments in affiliates, at value (cost $19,459,652 ) | | | | 14,889,938 | |
| | | | | | |
| Total Investments | | | | 17,545,347 | |
| | | | | | |
| Cash | | | | 37,132 | |
| Dividends receivable from affiliates | | | | 7,885 | |
| Receivable for capital shares issued | | | | 141,905 | |
| | | | | | |
| Total Assets | | | | 17,732,269 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 151,860 | |
| Payable for capital shares redeemed | | | | 139 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 4,056 | |
| Distribution fees | | | | 5,105 | |
| Administrative servicing fees | | | | 433 | |
| | | | | | |
| Total Liabilities | | | | 161,593 | |
| | | | | | |
Net Assets | | | $ | 17,570,676 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 23,266,967 | |
| Accumulated undistributed net investment income | | | | 8,267 | |
| Accumulated net realized losses from investment transactions | | | | (81,739 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (4,569,714 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (1,053,105 | ) |
| | | | | | |
Net Assets | | | $ | 17,570,676 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 1,711,218 | |
| Class C Shares | | | | 33,926 | |
| Class R1 | | | | 1,666,828 | |
| Class R2 | | | | 10,381,376 | |
| Institutional Service Class Shares | | | | 2,175,279 | |
| Institutional Class Shares | | | | 1,602,049 | |
| | | | | | |
| Total | | | $ | 17,570,676 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 71
Statement of Assets and Liabilities (Continued)
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2030 Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 248,398 | |
| Class C Shares | | | | 4,934 | |
| Class R1 Shares | | | | 242,422 | |
| Class R2 Shares | | | | 1,509,847 | |
| Institutional Service Class Shares | | | | 315,729 | |
| Institutional Class Shares | | | | 232,152 | |
| | | | | | |
| Total | | | | 2,553,482 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 6.89 | |
| Class C Shares (a) | | | $ | 6.88 | |
| Class R1 Shares | | | $ | 6.88 | |
| Class R2 Shares | | | $ | 6.88 | |
| Institutional Service Class Shares | | | $ | 6.89 | |
| Institutional Class Shares | | | $ | 6.90 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.31 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C Shares, the redemption price per share is reduced by 1.00% for shares half less than one year. |
The accompanying notes are an integral part of these financial statements.
72 Annual Report 2008
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2030
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 192,056 | |
| Dividend income | | | | 51,616 | |
| Interest income | | | | 22 | |
| | | | | | |
| Total Income | | | | 243,694 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 38,506 | |
| Distribution fees Class A | | | | 2,675 | |
| Distribution fees Class C | | | | 130 | |
| Distribution fees Class R1 | | | | 4,485 | |
| Distribution fees Class R2 | | | | 26,192 | |
| Administrative servicing fees Class A | | | | 386 | |
| Administrative servicing fees Class R1 | | | | 1,474 | |
| Administrative servicing fees Class R2 | | | | 9,474 | |
| Administrative servicing fees Institutional Service Class | | | | 1,623 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 84,945 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (8,556 | ) |
| | | | | | |
| Net Expenses | | | | 76,389 | |
| | | | | | |
Net Investment Income | | | | 167,305 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 38,716 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 20 | |
| Net realized gains from investment transactions with affiliates | | | | 50,122 | |
| Net realized losses from investment transactions with non-affiliates | | | | (164,694 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (75,836 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (4,617,985 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (1,074,824 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,692,809 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (5,768,645 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (5,601,340 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 73
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2030 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 167,305 | | | | $ | 4,170 | |
| Net realized gains (losses) from investment transactions | | | | (75,836 | ) | | | | 4,612 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (5,692,809 | ) | | | | 69,990 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (5,601,340 | ) | | | | 78,772 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (20,739 | ) | | | | (3 | ) |
| Class C | | | | (200 | ) | | | | (3 | ) |
| Class R1 | | | | (12,436 | ) | | | | (3 | ) |
| Class R2 | | | | (85,994 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (15,159 | ) | | | | (4 | ) |
| Institutional Class | | | | (30,886 | ) | | | | (3,788 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (1,130 | ) | | | | – | |
| Class C | | | | (2 | ) | | | | – | |
| Class R1 | | | | (3 | ) | | | | – | |
| Class R2 | | | | (1,623 | ) | | | | – | |
| Institutional Service Class | | | | (2 | ) | | | | – | |
| Institutional Class | | | | (1,852 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (170,026 | ) | | | | (3,804 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 22,144,690 | | | | | 1,122,384 | |
| | | | | | | | | | | |
| Change in net assets | | | | 16,373,324 | | | | | 1,197,352 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,197,352 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 17,570,676 | | | | $ | 1,197,352 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 8,267 | | | | $ | 393 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 2,377,419 | | | | $ | 23,856 | |
| Dividends reinvested | | | | 21,869 | | | | | 3 | |
| Cost of shares redeemed | | | | (152,531 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 2,246,757 | | | | | 23,859 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 43,689 | | | | | 1,000 | |
| Dividends reinvested | | | | 202 | | | | | 3 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 43,891 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
74 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2030 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 2,340,018 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 12,439 | | | | | 3 | |
| Cost of shares redeemed | | | | (74,536 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 2,277,921 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 14,271,615 | | | | | 102,796 | |
| Dividends reinvested | | | | 87,615 | | | | | 3 | |
| Cost of shares redeemed | | | | (849,056 | ) | | | | (6,072 | ) |
| | | | | | | | | | | |
| Total Class R2 | | | | 13,510,174 | | | | | 96,727 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,860,737 | | | | | 1,000 | |
| Dividends reinvested | | | | 15,161 | | | | | 4 | |
| Cost of shares redeemed | | | | (63,464 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 2,812,434 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 1,359,081 | | | | | 995,000 | |
| Dividends reinvested | | | | 32,738 | | | | | 3,788 | |
| Cost of shares redeemed | | | | (138,306 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 1,253,513 | | | | | 998,788 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 22,144,690 | | | | $ | 1,122,384 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 260,030 | | | | | 2,288 | |
| Reinvested | | | | 2,349 | | | | | – | |
| Redeemed | | | | (16,269 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 246,110 | | | | | 2,288 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 4,812 | | | | | 100 | |
| Reinvested | | | | 22 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 4,834 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 251,911 | | | | | 100 | |
| Reinvested | | | | 1,399 | | | | | – | |
| Redeemed | | | | (10,988 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 242,322 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 75
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2030 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 1,593,338 | | | | | 9,704 | |
| Reinvested | | | | 9,612 | | | | | – | |
| Redeemed | | | | (102,223 | ) | | | | (584 | ) |
| | | | | | | | | | | |
| Total R2 Shares | | | | 1,500,727 | | | | | 9,120 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 320,897 | | | | | 100 | |
| Reinvested | | | | 1,702 | | | | | – | |
| Redeemed | | | | (6,970 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 315,629 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 143,988 | | | | | 99,502 | |
| Reinvested | | | | 3,478 | | | | | 367 | |
| Redeemed | | | | (15,183 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 132,283 | | | | | 99,869 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 2,441,905 | | | | | 111,577 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
76 Annual Report 2008
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2030 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .72 | | | | 0 | .18 | | | | (3 | .81) | | | | (3 | .63) | | | | (0 | .18) | | | | (0 | .02) | | | | (0 | .20) | | | $ | 6 | .89 | | | | (34 | .43%) | | | $ | 1,711,218 | | | | | 0 | .61% | | | | 2 | .04% | | | | 0 | .72% | | | | 18 | .91% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | – | | | | | 0 | .75 | | | | 0 | .75 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .72 | | | | 7 | .54% | | | $ | 24,528 | | | | | 0 | .88% | | | | 0 | .05% | | | | 1 | .19% | | | | 8 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .72 | | | | 0 | .11 | | | | (3 | .80) | | | | (3 | .69) | | | | (0 | .13) | | | | (0 | .02) | | | | (0 | .15) | | | $ | 6 | .88 | | | | (34 | .81%) | | | $ | 33,926 | | | | | 1 | .33% | | | | 1 | .22% | | | | 1 | .41% | | | | 18 | .91% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .73 | | | | 0 | .75 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .72 | | | | 7 | .52% | | | $ | 1,075 | | | | | 1 | .40% | | | | 1 | .36% | | | | 1 | .40% | | | | 8 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .72 | | | | 0 | .14 | | | | (3 | .81) | | | | (3 | .67) | | | | (0 | .15) | | | | (0 | .02) | | | | (0 | .17) | | | $ | 6 | .88 | | | | (34 | .70%) | | | $ | 1,666,828 | | | | | 1 | .19% | | | | 1 | .65% | | | | 1 | .26% | | | | 18 | .91% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .73 | | | | 0 | .75 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .72 | | | | 7 | .52% | | | $ | 1,075 | | | | | 1 | .40% | | | | 1 | .37% | | | | 1 | .40% | | | | 8 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .72 | | | | 0 | .15 | | | | (3 | .81) | | | | (3 | .66) | | | | (0 | .16) | | | | (0 | .02) | | | | (0 | .18) | | | $ | 6 | .88 | | | | (34 | .60%) | | | $ | 10,381,376 | | | | | 1 | .01% | | | | 1 | .63% | | | | 1 | .10% | | | | 18 | .91% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .76 | | | | 0 | .75 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .72 | | | | 7 | .54% | | | $ | 97,800 | | | | | 1 | .08% | | | | (0 | .51%) | | | | 1 | .24% | | | | 8 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .73 | | | | 0 | .19 | | | | (3 | .83) | | | | (3 | .64) | | | | (0 | .18) | | | | (0 | .02) | | | | (0 | .20) | | | $ | 6 | .89 | | | | (34 | .46%) | | | $ | 2,175,279 | | | | | 0 | .56% | | | | 2 | .25% | | | | 0 | .62% | | | | 18 | .91% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .73 | | | | 0 | .77 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .73 | | | | 7 | .67% | | | $ | 1,077 | | | | | 0 | .70% | | | | 2 | .07% | | | | 0 | .70% | | | | 8 | .45% | | |
2008 Annual Report 77
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2030 Fund (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .73 | | | | 0 | .21 | | | | (3 | .82) | | | | (3 | .61) | | | | (0 | .20) | | | | (0 | .02) | | | | (0 | .22) | | | $ | 6 | .90 | | | | (34 | .22%) | | | $ | 1,602,049 | | | | | 0 | .33% | | | | 2 | .26% | | | | 0 | .44% | | | | 18 | .91% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .73 | | | | 0 | .77 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .73 | | | | 7 | .70% | | | $ | 1,071,797 | | | | | 0 | .33% | | | | 2 | .34% | | | | 0 | .50% | | | | 8 | .45% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
78 Annual Report 2008
| |
| Nationwide Destination 2035 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2035 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2035 Fund (Class A at NAV) registered -36.39% versus -32.93% for its benchmark, the Dow Jones (DJ) Target 2035 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2035 Funds (consisting of 87 funds as of October 31, 2008) was -38.15% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Money Market Fund and the Nationwide Bond Index Fund (with allocations within the Fund of approximately 1% and 10%, respectively) provided the only positive returns for the Fund, gaining 2.65% and 0.04%, respectively, during the reporting period. The strongest performers in the Barclays Capital U.S. Aggregated Bond Index [formerly Lehman Brothers (LB) U.S. Aggregate Bond Index] during the reporting period were U.S. Treasury, Agency and Agency mortgage-backed securities, which posted gains of 7.76%, 4.68% and 4.62%, respectively, for the period. The broad corporate bond sector, however, dropped 13.82% and undermined most of the gains posted by other U.S. bond market sectors.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 30% and 23%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term, prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long-term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 79
Nationwide Destination 2035 Fund
(Continued)
Nationwide Target Destination 2035 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 30% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 23% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 13% | | | | -36.63% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 10% | | | | -34.45% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 10% | | | | 0.03% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 5% | | | | -27.08% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 4% | | | | -56.62% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 2% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 2% | | | | -54.97% | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
80 Annual Report 2008
| |
| Fund Performance | Nationwide Destination 2035 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -36.39% | | | | -27.43% | | | | 1.33% | | | | 1.16% | |
| | | w/SC3 | | | -40.15% | | | | -31.09% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -36.78% | | | | -27.88% | | | | 1.83% | | | | 1.66% | |
| | | w/SC4 | | | -37.40% | | | | -27.88% | | | | | | | | | |
| |
| |
Class R12 | | | | | -36.66% | | | | -27.76% | | | | 1.73% | | | | 1.56% | |
| |
| |
Class R22 | | | | | -36.51% | | | | -27.60% | | | | 1.58% | | | | 1.41% | |
| |
| |
Institutional Service Class2 | | | | | -36.36% | | | | -27.38% | | | | 1.08% | | | | 0.91% | |
| |
| |
Institutional Class2 | | | | | -36.13% | | | | -27.14% | | | | 0.83% | | | | 0.66% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2035 Fund, Dow Jones Target 2035 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
2008 Annual Report 81
| |
| Fund Performance | Nationwide Destination 2035 Fund |
Continued
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
82 Annual Report 2008
| |
| Shareholder | Nationwide Destination 2035 |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Fund
| | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2035 | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 689.18 | | | | 2.61 | | | | 0.61 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.05 | | | | 3.12 | | | | 0.61 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 686.47 | | | | 5.62 | | | | 1.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.47 | | | | 6.75 | | | | 1.33 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 687.29 | | | | 5.01 | | | | 1.18 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.20 | | | | 6.01 | | | | 1.18 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 688.56 | | | | 3.58 | | | | 0.84 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.90 | | | | 4.29 | | | | 0.84 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 689.73 | | | | 2.48 | | | | 0.58 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.20 | | | | 2.97 | | | | 0.58 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 690.33 | | | | 1.39 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.49 | | | | 1.66 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 83
| |
| Portfolio Summary | Nationwide Destination 2035 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 92.6% | |
| Exchange Traded Funds | | | 7.3% | |
| Other assets in excess of liabilities | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 87.5% | |
| Fixed Income Funds | | | 11.2% | |
| Money Market Fund | | | 1.2% | |
| Other | | | 0.1% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 31.0% | |
| Nationwide International Index Fund, Institutional Class | | | 22.2% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 12.6% | |
| Nationwide Bond Index Fund, Institutional Class | | | 11.2% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 9.7% | |
| Credit Suisse Commodity Return Strategy Fund | | | 4.7% | |
| Vanguard Emerging Markets Fund | | | 3.8% | |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 1.8% | |
| Vanguard REIT Fund | | | 1.8% | |
| Nationwide Money Market Fund, Institutional Class | | | 1.2% | |
| | | | | |
| | | | 100.0% | |
84 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Destination 2035 Fund
| | | | | | | | | |
| Mutual Funds 92.6% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 80.2% |
| Credit Suisse Commodity Return Strategy Fund | | | 50,883 | | | $ | 438,105 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 328,048 | | | | 2,083,102 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 118,641 | | | | 1,181,666 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 356,756 | | | | 2,900,423 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 109,610 | | | | 913,055 | |
| | | | | | | | | |
| | | | | | | | 7,516,351 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 11.2%(a) |
| Nationwide Bond Index Fund, Institutional Class | | | 101,954 | | | | 1,051,149 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.2%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 108,718 | | | | 108,718 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 8,676,218 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 7.3% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 7.3% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 5,947 | | | | 169,490 | |
| Vanguard Emerging Markets Fund | | | 13,952 | | | | 351,730 | |
| Vanguard REIT Fund | | | 3,985 | | | | 165,417 | |
| | | | | | | | | |
| | | | | | | | 686,637 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 686,637 | |
| | | | | |
| | | | | |
Total Investments (Cost $12,546,437) (b) — 99.9% | | | 9,362,855 | |
Other assets in excess of liabilities — 0.1% | | | | | | | 5,382 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 9,368,237 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 85
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2035 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $1,695,467) | | | $ | 1,124,742 | |
| Investments in affiliates, at value (cost $10,850,970 ) | | | | 8,238,113 | |
| | | | | | |
| Total Investments | | | | 9,362,855 | |
| | | | | | |
| Cash | | | | 3,771 | |
| Dividends receivable from affiliates | | | | 4,030 | |
| Receivable for capital shares issued | | | | 61,338 | |
| Prepaid expenses and other assets | | | | 1,113 | |
| | | | | | |
| Total Assets | | | | 9,433,107 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 58,282 | |
| Payable for capital shares redeemed | | | | 1,609 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 2,250 | |
| Distribution fees | | | | 2,729 | |
| | | | | | |
| Total Liabilities | | | | 64,870 | |
| | | | | | |
Net Assets | | | $ | 9,368,237 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 12,616,250 | |
| Accumulated undistributed net investment income | | | | 3,796 | |
| Accumulated net realized losses from investment transactions | | | | (68,227 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (2,612,857 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (570,725 | ) |
| | | | | | |
Net Assets | | | $ | 9,368,237 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 868,514 | |
| Class C Shares | | | | 40,087 | |
| Class R1 | | | | 544,925 | |
| Class R2 | | | | 5,597,892 | |
| Institutional Service Class Shares | | | | 1,169,345 | |
| Institutional Class Shares | | | | 1,147,474 | |
| | | | | | |
| Total | | | $ | 9,368,237 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 130,086 | |
| Class C Shares | | | | 6,029 | |
| Class R1 Shares | | | | 81,754 | |
| Class R2 Shares | | | | 839,837 | |
| Institutional Service Class Shares | | | | 175,114 | |
| Institutional Class Shares | | | | 171,587 | |
| | | | | | |
| Total | | | | 1,404,407 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 6.68 | |
| Class C Shares (a) | | | $ | 6.65 | |
| Class R1 Shares | | | $ | 6.67 | |
| Class R2 Shares | | | $ | 6.67 | |
| Institutional Service Class Shares | | | $ | 6.68 | |
| Institutional Class Shares | | | $ | 6.69 | |
| |
| (a) | For Class C, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
86 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2035 Fund | |
| | | | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 7.09 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 87
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2035
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 109,916 | |
| Dividend income | | | | 14,597 | |
| Interest income | | | | 8 | |
| | | | | | |
| Total Income | | | | 124,521 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 22,432 | |
| Distribution fees Class A | | | | 886 | |
| Distribution fees Class C | | | | 193 | |
| Distribution fees Class R1 | | | | 1,544 | |
| Distribution fees Class R2 | | | | 15,297 | |
| Administrative servicing fees Class A | | | | 257 | |
| Administrative servicing fees Class R1 | | | | 488 | |
| Administrative servicing fees Class R2 | | | | 2,156 | |
| Administrative servicing fees Institutional Service Class | | | | 929 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 44,182 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (5,198 | ) |
| | | | | | |
| Net Expenses | | | | 38,984 | |
| | | | | | |
Net Investment Income | | | | 85,537 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 23,342 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 1 | |
| Net realized gains from investment transactions with affiliates | | | | 55,824 | |
| Net realized losses from investment transactions with non-affiliates | | | | (138,189 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (59,022 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (2,667,607 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (592,221 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (3,259,828 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (3,318,850 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (3,233,313 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
88 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2035 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 85,537 | | | | $ | 4,084 | |
| Net realized gains (losses) from investment transactions | | | | (59,022 | ) | | | | 776 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (3,259,828 | ) | | | | 76,246 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (3,233,313 | ) | | | | 81,106 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (6,653 | ) | | | | (3 | ) |
| Class C | | | | (472 | ) | | | | (3 | ) |
| Class R1 | | | | (3,529 | ) | | | | (3 | ) |
| Class R2 | | | | (41,848 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (7,415 | ) | | | | (4 | ) |
| Institutional Class | | | | (31,261 | ) | | | | (3,850 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (35 | ) | | | | – | |
| Class C | | | | (8 | ) | | | | – | |
| Class R1 | | | | (1 | ) | | | | – | |
| Class R2 | | | | (74 | ) | | | | – | |
| Institutional Service Class | | | | (1 | ) | | | | – | |
| Institutional Class | | | | (657 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (91,954 | ) | | | | (3,866 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 11,586,478 | | | | | 1,029,786 | |
| | | | | | | | | | | |
| Change in net assets | | | | 8,261,211 | | | | | 1,107,026 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,107,026 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 9,368,237 | | | | $ | 1,107,026 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 3,796 | | | | $ | 224 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,192,479 | | | | $ | 26,920 | |
| Dividends reinvested | | | | 6,679 | | | | | 3 | |
| Cost of shares redeemed | | | | (94,523 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 1,104,635 | | | | | 26,923 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 84,725 | | | | | 1,000 | |
| Dividends reinvested | | | | 480 | | | | | 3 | |
| Cost of shares redeemed | | | | (28,579 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 56,626 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 89
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2035 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 752,124 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 3,529 | | | | | 3 | |
| Cost of shares redeemed | | | | (984 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 754,669 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 8,875,532 | | | | | 1,000 | |
| Dividends reinvested | | | | 41,922 | | | | | 3 | |
| Cost of shares redeemed | | | | (1,421,822 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R2 | | | | 7,495,632 | | | | | 1,003 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 1,560,645 | | | | | 1,000 | |
| Dividends reinvested | | | | 7,416 | | | | | 4 | |
| Cost of shares redeemed | | | | (57,656 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 1,510,405 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 671,408 | | | | | 995,000 | |
| Dividends reinvested | | | | 31,918 | | | | | 3,850 | |
| Cost of shares redeemed | | | | (38,815 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 664,511 | | | | | 998,850 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 11,586,478 | | | | $ | 1,029,786 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 139,835 | | | | | 2,590 | |
| Reinvested | | | | 748 | | | | | – | |
| Redeemed | | | | (13,087 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 127,496 | | | | | 2,590 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 9,076 | | | | | 100 | |
| Reinvested | | | | 52 | | | | | – | |
| Redeemed | | | | (3,199 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 5,929 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 81,368 | | | | | 100 | |
| Reinvested | | | | 403 | | | | | – | |
| Redeemed | | | | (117 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 81,654 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
90 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2035 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 983,879 | | | | | 100 | |
| Reinvested | | | | 4,725 | | | | | – | |
| Redeemed | | | | (148,867 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 839,737 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 181,344 | | | | | 100 | |
| Reinvested | | | | 850 | | | | | – | |
| Redeemed | | | | (7,180 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 175,014 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 72,671 | | | | | 99,501 | |
| Reinvested | | | | 3,354 | | | | | 373 | |
| Redeemed | | | | (4,312 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 71,713 | | | | | 99,874 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 1,301,543 | | | | | 102,864 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 91
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2035 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .76 | | | | 0 | .16 | | | | (4 | .00) | | | | (3 | .84) | | | | (0 | .23) | | | | (0 | .01) | | | | (0 | .24) | | | $ | 6 | .68 | | | | (36 | .39%) | | | $ | 868,514 | | | | | 0 | .65% | | | | 1 | .87% | | | | 0 | .73% | | | | 37 | .28% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | – | | | | | 0 | .79 | | | | 0 | .79 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .76 | | | | 7 | .95% | | | $ | 27,866 | | | | | 0 | .87% | | | | 0 | .10% | | | | 1 | .15% | | | | 0 | .85% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .75 | | | | 0 | .13 | | | | (4 | .01) | | | | (3 | .88) | | | | (0 | .21) | | | | (0 | .01) | | | | (0 | .22) | | | $ | 6 | .65 | | | | (36 | .78%) | | | $ | 40,087 | | | | | 1 | .33% | | | | 1 | .47% | | | | 1 | .40% | | | | 37 | .28% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .76 | | | | 0 | .78 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .75 | | | | 7 | .82% | | | $ | 1,078 | | | | | 1 | .40% | | | | 1 | .24% | | | | 1 | .42% | | | | 0 | .85% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .75 | | | | 0 | .11 | | | | (3 | .99) | | | | (3 | .88) | | | | (0 | .19) | | | | (0 | .01) | | | | (0 | .20) | | | $ | 6 | .67 | | | | (36 | .66%) | | | $ | 544,925 | | | | | 1 | .18% | | | | 1 | .34% | | | | 1 | .25% | | | | 37 | .28% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .76 | | | | 0 | .78 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .75 | | | | 7 | .82% | | | $ | 1,078 | | | | | 1 | .40% | | | | 1 | .24% | | | | 1 | .42% | | | | 0 | .85% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .75 | | | | 0 | .12 | | | | (3 | .97) | | | | (3 | .85) | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 6 | .67 | | | | (36 | .51%) | | | $ | 5,597,892 | | | | | 0 | .90% | | | | 1 | .40% | | | | 1 | .00% | | | | 37 | .28% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .75 | | | | 0 | .78 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .75 | | | | 7 | .85% | | | $ | 1,079 | | | | | 1 | .05% | | | | 1 | .80% | | | | 1 | .07% | | | | 0 | .85% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .76 | | | | 0 | .17 | | | | (4 | .01) | | | | (3 | .84) | | | | (0 | .23) | | | | (0 | .01) | | | | (0 | .24) | | | $ | 6 | .68 | | | | (36 | .36%) | | | $ | 1,169,345 | | | | | 0 | .58% | | | | 2 | .00% | | | | 0 | .64% | | | | 37 | .28% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .77 | | | | 0 | .80 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .76 | | | | 7 | .98% | | | $ | 1,080 | | | | | 0 | .70% | | | | 1 | .93% | | | | 0 | .72% | | | | 0 | .85% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .76 | | | | 0 | .19 | | | | (4 | .00) | | | | (3 | .81) | | | | (0 | .25) | | | | (0 | .01) | | | | (0 | .26) | | | $ | 6 | .69 | | | | (36 | .13%) | | | $ | 1,147,474 | | | | | 0 | .33% | | | | 2 | .04% | | | | 0 | .45% | | | | 37 | .28% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .76 | | | | 0 | .80 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .76 | | | | 8 | .00% | | | $ | 1,074,845 | | | | | 0 | .33% | | | | 2 | .28% | | | | 0 | .50% | | | | 0 | .85% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
92 Annual Report 2008
| |
| Nationwide Destination 2040 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2040 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2040 Fund (Class A at NAV) registered -38.60% versus -34.26% for its benchmark, the Dow Jones (DJ) Target 2040 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2040 Funds (consisting of 125 funds as of October 31, 2008) was -39.03% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Money Market Fund and the Nationwide Bond Index Fund (with allocations within the Fund of approximately 1% and 4%, respectively) provided the only positive returns for the Fund, gaining 2.65% and 0.04%, respectively, during the reporting period. The strongest performers in the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers (LB) U.S. Aggregate Bond Index) during the reporting period were U.S. Treasury, Agency and Agency mortgage-backed securities, which posted gains of 7.76%, 4.68% and 4.62%, respectively, for the period. The broad corporate bond sector, however, dropped 13.82% and undermined most of the gains posted by other U.S. bond market sectors.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 32% and 24%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 93
Nationwide Destination 2040 Fund
(Continued)
Nationwide Target Destination 2040 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 32% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 24% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 13% | | | | -36.63% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 12% | | | | -34.45% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 5% | | | | -56.62% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 5% | | | | -27.08% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 4% | | | | 0.03% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 2% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 2% | | | | -54.97% | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
94 Annual Report 2008
| |
| Fund Performance | Nationwide Destination 2040 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -38.60% | | | | -29.36% | | | | 1.32% | | | | 1.15% | |
| | | w/SC3 | | | -42.22% | | | | -32.92% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -38.99% | | | | -29.70% | | | | 1.82% | | | | 1.65% | |
| | | w/SC4 | | | -39.59% | | | | -29.70% | | | | | | | | | |
| |
| |
Class R12 | | | | | -38.97% | | | | -29.69% | | | | 1.72% | | | | 1.55% | |
| |
| |
Class R22 | | | | | -38.82% | | | | -29.52% | | | | 1.57% | | | | 1.40% | |
| |
| |
Institutional Service Class2 | | | | | -38.54% | | | | -29.23% | | | | 1.07% | | | | 0.90% | |
| |
| |
Institutional Class2 | | | | | -38.37% | | | | -28.99% | | | | 0.82% | | | | 0.65% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2040 Fund, Dow Jones Target 2040 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
2008 Annual Report 95
| |
| Fund Performance | Nationwide Destination 2040 Fund |
Continued
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
96 Annual Report 2008
| |
| Shareholder | Nationwide Destination 2040 |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Fund
| | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2040 | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 672.70 | | | | 2.24 | | | | 0.53 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.45 | | | | 2.72 | | | | 0.53 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 669.78 | | | | 5.57 | | | | 1.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.46 | | | | 6.76 | | | | 1.33 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 670.02 | | | | 5.02 | | | | 1.20 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.12 | | | | 6.09 | | | | 1.20 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 670.85 | | | | 4.24 | | | | 1.01 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.06 | | | | 5.14 | | | | 1.01 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 672.38 | | | | 2.44 | | | | 0.58 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.22 | | | | 2.95 | | | | 0.58 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 673.68 | | | | 1.37 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.49 | | | | 1.66 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 97
| |
| Portfolio Summary | Nationwide Destination 2040 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 91.6% | |
| Exchange Traded Funds | | | 8.2% | |
| Other assets in excess of liabilities | | | 0.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 94.1% | |
| Fixed Income Funds | | | 4.5% | |
| Money Market Fund | | | 1.2% | |
| Other | | | 0.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 33.2% | |
| Nationwide International Index Fund, Institutional Class | | | 23.4% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 12.8% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 11.8% | |
| Credit Suisse Commodity Return Strategy Fund | | | 4.7% | |
| Vanguard Emerging Markets Fund | | | 4.7% | |
| Nationwide Bond Index Fund, Institutional Class | | | 4.5% | |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 1.8% | |
| Vanguard REIT Fund | | | 1.7% | |
| Nationwide Money Market Fund, Institutional Class | | | 1.2% | |
| Other | | | 0.2% | |
| | | | | |
| | | | 100.0% | |
98 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Destination 2040 Fund
| | | | | | | | | |
| Mutual Funds 91.6% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 85.9% |
| Credit Suisse Commodity Return Strategy Fund | | | 38,549 | | | $ | 331,906 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 258,515 | | | | 1,641,572 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 89,748 | | | | 893,888 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 286,340 | | | | 2,327,943 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 99,604 | | | | 829,705 | |
| | | | | | | | | |
| | | | | | | | 6,025,014 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 4.5%(a) |
| Nationwide Bond Index Fund, Institutional Class | | | 30,465 | | | | 314,091 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.2%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 81,007 | | | | 81,007 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 6,420,112 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 8.2% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 8.2% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 4,422 | | | | 126,027 | |
| Vanguard Emerging Markets Fund | | | 13,054 | | | | 329,091 | |
| Vanguard REIT Fund | | | 2,980 | | | | 123,700 | |
| | | | | | | | | |
| | | | | | | | 578,818 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 578,818 | |
| | | | | |
| | | | | |
Total Investments (Cost $9,290,406) (b) — 99.8% | | | 6,998,930 | |
Other assets in excess of liabilities — 0.2% | | | | | | | 12,753 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 7,011,683 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 99
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2040 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $1,336,202) | | | $ | 910,724 | |
| Investments in affiliates, at value (cost $7,954,204 ) | | | | 6,088,206 | |
| | | | | | |
| Total Investments | | | | 6,998,930 | |
| | | | | | |
| Cash | | | | 8,752 | |
| Dividends receivable from affiliates | | | | 1,202 | |
| Receivable for capital shares issued | | | | 158,313 | |
| | | | | | |
| Total Assets | | | | 7,167,197 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 151,435 | |
| Payable for capital shares redeemed | | | | 180 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 1,576 | |
| Distribution fees | | | | 1,980 | |
| Administrative servicing fees | | | | 343 | |
| | | | | | |
| Total Liabilities | | | | 155,514 | |
| | | | | | |
Net Assets | | | $ | 7,011,683 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 9,394,758 | |
| Accumulated net realized losses from investment transactions | | | | (91,599 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (1,865,998 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (425,478 | ) |
| | | | | | |
Net Assets | | | $ | 7,011,683 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 717,177 | |
| Class C Shares | | | | 135,913 | |
| Class R1 | | | | 530,691 | |
| Class R2 | | | | 4,140,142 | |
| Institutional Service Class Shares | | | | 525,479 | |
| Institutional Class Shares | | | | 962,281 | |
| | | | | | |
| Total | | | $ | 7,011,683 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 110,674 | |
| Class C Shares | | | | 20,959 | |
| Class R1 Shares | | | | 82,004 | |
| Class R2 Shares | | | | 640,163 | |
| Institutional Service Class Shares | | | | 80,946 | |
| Institutional Class Shares | | | | 148,109 | |
| | | | | | |
| Total | | | | 1,082,855 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 6.48 | |
| Class C Shares (a) | | | $ | 6.48 | |
| Class R1 Shares | | | $ | 6.47 | |
| Class R2 Shares | | | $ | 6.47 | |
| Institutional Service Class Shares | | | $ | 6.49 | |
| Institutional Class Shares | | | $ | 6.50 | |
| |
| (a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares half less than one year. |
The accompanying notes are an integral part of these financial statements.
100 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2040 Fund | |
| | | | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 6.88 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 101
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2040
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 70,897 | |
| Dividend income | | | | 11,123 | |
| Interest income | | | | 6 | |
| | | | | | |
| Total Income | | | | 82,026 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 15,999 | |
| Distribution fees Class A | | | | 1,047 | |
| Distribution fees Class C | | | | 512 | |
| Distribution fees Class R1 | | | | 760 | |
| Distribution fees Class R2 | | | | 9,733 | |
| Administrative servicing fees Class A | | | | 172 | |
| Administrative servicing fees Class R1 | | | | 260 | |
| Administrative servicing fees Class R2 | | | | 3,761 | |
| Administrative servicing fees Institutional Service Class | | | | 263 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 32,507 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (3,725 | ) |
| | | | | | |
| Net Expenses | | | | 28,782 | |
| | | | | | |
Net Investment Income | | | | 53,244 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 28,048 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 1 | |
| Net realized gains from investment transactions with affiliates | | | | 56,203 | |
| Net realized losses from investment transactions with non-affiliates | | | | (163,776 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (79,524 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (1,922,837 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (449,380 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,372,217 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (2,451,741 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (2,398,497 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
102 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2040 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 53,244 | | | | $ | 3,777 | |
| Net realized gains (losses) from investment transactions | | | | (79,524 | ) | | | | 1,130 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (2,372,217 | ) | | | | 80,741 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (2,398,497 | ) | | | | 85,648 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (8,366 | ) | | | | (3 | ) |
| Class C | | | | (541 | ) | | | | (3 | ) |
| Class R1 | | | | (2,209 | ) | | | | (3 | ) |
| Class R2 | | | | (24,996 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (1,860 | ) | | | | (4 | ) |
| Institutional Class | | | | (27,351 | ) | | | | (3,859 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (161 | ) | | | | – | |
| Class C | | | | (1 | ) | | | | – | |
| Class R1 | | | | (1 | ) | | | | – | |
| Class R2 | | | | (85 | ) | | | | – | |
| Institutional Service Class | | | | (1 | ) | | | | – | |
| Institutional Class | | | | (788 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (66,360 | ) | | | | (3,875 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 8,390,134 | | | | | 1,004,633 | |
| | | | | | | | | | | |
| Change in net assets | | | | 5,925,277 | | | | | 1,086,406 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,086,406 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 7,011,683 | | | | $ | 1,086,406 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income (loss) at end of period | | | $ | — | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,009,387 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 8,527 | | | | | 3 | |
| Cost of shares redeemed | | | | (22,655 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 995,259 | | | | | 1,003 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 184,057 | | | | | 1,000 | |
| Dividends reinvested | | | | 542 | | | | | 3 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 184,599 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 103
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2040 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 687,483 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 2,210 | | | | | 3 | |
| Cost of shares redeemed | | | | (3,296 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 686,397 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 5,910,121 | | | | | 1,759 | |
| Dividends reinvested | | | | 25,080 | | | | | 3 | |
| Cost of shares redeemed | | | | (500,488 | ) | | | | (1 | ) |
| | | | | | | | | | | |
| Total Class R2 | | | | 5,434,713 | | | | | 1,761 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 643,385 | | | | | 1,000 | |
| Dividends reinvested | | | | 1,860 | | | | | 4 | |
| Cost of shares redeemed | | | | (120 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 645,125 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 422,300 | | | | | 995,000 | |
| Dividends reinvested | | | | 28,139 | | | | | 3,859 | |
| Cost of shares redeemed | | | | (6,398 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 444,041 | | | | | 998,859 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 8,390,134 | | | | $ | 1,004,633 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 112,385 | | | | | 100 | |
| Reinvested | | | | 930 | | | | | – | |
| Redeemed | | | | (2,741 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 110,574 | | | | | 100 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 20,796 | | | | | 100 | |
| Reinvested | | | | 63 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 20,859 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 82,062 | | | | | 100 | |
| Reinvested | | | | 262 | | | | | – | |
| Redeemed | | | | (420 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 81,904 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
104 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2040 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 695,929 | | | | | 172 | |
| Reinvested | | | | 2,832 | | | | | – | |
| Redeemed | | | | (58,770 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 639,991 | | | | | 172 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 80,640 | | | | | 100 | |
| Reinvested | | | | 220 | | | | | – | |
| Redeemed | | | | (14 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 80,846 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 45,998 | | | | | 99,501 | |
| Reinvested | | | | 2,953 | | | | | 373 | |
| Redeemed | | | | (716 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 48,235 | | | | | 99,874 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 982,409 | | | | | 100,446 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 105
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2040 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .80 | | | | 0 | .15 | | | | (4 | .24) | | | | (4 | .09) | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 6 | .48 | | | | (38 | .60%) | | | $ | 717,177 | | | | | 0 | .62% | | | | 1 | .72% | | | | 0 | .72% | | | | 23 | .61% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .81 | | | | 0 | .83 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .80 | | | | 8 | .35% | | | $ | 1,084 | | | | | 0 | .98% | | | | 1 | .11% | | | | 1 | .51% | | | | 1 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .81 | | | | 0 | .07 | | | | (4 | .23) | | | | (4 | .16) | | | | (0 | .16) | | | | (0 | .01) | | | | (0 | .17) | | | $ | 6 | .48 | | | | (38 | .99%) | | | $ | 135,913 | | | | | 1 | .33% | | | | 0 | .81% | | | | 1 | .37% | | | | 23 | .61% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .82 | | | | 0 | .84 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .81 | | | | 8 | .42% | | | $ | 1,084 | | | | | 1 | .40% | | | | 1 | .13% | | | | 1 | .45% | | | | 1 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .81 | | | | 0 | .12 | | | | (4 | .27) | | | | (4 | .15) | | | | (0 | .18) | | | | (0 | .01) | | | | (0 | .19) | | | $ | 6 | .47 | | | | (38 | .97%) | | | $ | 530,691 | | | | | 1 | .20% | | | | 1 | .47% | | | | 1 | .23% | | | | 23 | .61% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .82 | | | | 0 | .84 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .81 | | | | 8 | .42% | | | $ | 1,084 | | | | | 1 | .40% | | | | 1 | .13% | | | | 1 | .45% | | | | 1 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .81 | | | | 0 | .09 | | | | (4 | .21) | | | | (4 | .12) | | | | (0 | .21) | | | | (0 | .01) | | | | (0 | .22) | | | $ | 6 | .47 | | | | (38 | .82%) | | | $ | 4,140,142 | | | | | 1 | .02% | | | | 1 | .09% | | | | 1 | .11% | | | | 23 | .61% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .82 | | | | 0 | .84 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .81 | | | | 8 | .45% | | | $ | 1,854 | | | | | 1 | .07% | | | | 1 | .09% | | | | 1 | .19% | | | | 1 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .81 | | | | 0 | .13 | | | | (4 | .22) | | | | (4 | .09) | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 6 | .49 | | | | (38 | .54%) | | | $ | 525,479 | | | | | 0 | .58% | | | | 1 | .66% | | | | 0 | .61% | | | | 23 | .61% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .82 | | | | 0 | .85 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .81 | | | | 8 | .48% | | | $ | 1,085 | | | | | 0 | .70% | | | | 1 | .83% | | | | 0 | .75% | | | | 1 | .45% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .82 | | | | 0 | .17 | | | | (4 | .24) | | | | (4 | .07) | | | | (0 | .24) | | | | (0 | .01) | | | | (0 | .25) | | | $ | 6 | .50 | | | | (38 | .37%) | | | $ | 962,281 | | | | | 0 | .33% | | | | 1 | .88% | | | | 0 | .45% | | | | 23 | .61% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .82 | | | | 0 | .86 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .82 | | | | 8 | .61% | | | $ | 1,080,215 | | | | | 0 | .33% | | | | 2 | .10% | | | | 0 | .50% | | | | 1 | .45% | | |
| |
| (a) | Excludes sales charge. |
| |
| (b) | Not annualized for periods less than one year. |
| |
| (c) | Annualized for periods less than one year. |
| |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
106 Annual Report 2008
| |
| Nationwide Destination 2045 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2045 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2045 Fund (Class A at NAV) registered -39.25% versus -34.36% for its benchmark, the Dow Jones (DJ) Target 2045 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2045 Funds (consisting of 75 funds as of October 31, 2008) was -39.23% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Money Market Fund and the Nationwide Bond Index Fund (with allocations within the Fund of approximately 1% and 4%, respectively) provided the only positive returns for the Fund, gaining 2.65% and 0.04%, respectively, during the reporting period. The strongest performers in the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers (LB) U.S. Aggregate Bond Index) during the reporting period were U.S. Treasury, Agency and Agency mortgage-backed securities, which posted gains of 7.76%, 4.68% and 4.62%, respectively, for the period. The broad corporate bond sector, however, dropped 13.82% and undermined most of the gains posted by other U.S. bond market sectors.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 30% and 24%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced last year in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 107
Nationwide Destination 2045 Fund
(Continued)
Nationwide Target Destination 2045 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 30% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 24% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 13% | | | | -36.63% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 12% | | | | -34.45% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 6% | | | | -56.62% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 5% | | | | -27.08% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 4% | | | | 0.03% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 3% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 2% | | | | -54.97% | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
108 Annual Report 2008
| |
| Fund Performance | Nationwide Destination 2045 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -39.25% | | | | -29.60% | | | | 1.32% | | | | 1.15% | |
| | | w/SC3 | | | -42.81% | | | | -33.15% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -39.64% | | | | -30.06% | | | | 1.82% | | | | 1.65% | |
| | | w/SC4 | | | -40.24% | | | | -30.06% | | | | | | | | | |
| |
| |
Class R12 | | | | | -39.65% | | | | -30.08% | | | | 1.72% | | | | 1.55% | |
| |
| |
Class R22 | | | | | -39.42% | | | | -29.84% | | | | 1.57% | | | | 1.40% | |
| |
| |
Institutional Service Class2 | | | | | -39.26% | | | | -29.66% | | | | 1.07% | | | | 0.90% | |
| |
| |
Institutional Class2 | | | | | -39.09% | | | | -29.42% | | | | 0.82% | | | | 0.65% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2045 Fund, Dow Jones Target 2045 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
2008 Annual Report 109
| |
| Fund Performance | Nationwide Destination 2045 Fund |
Continued
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
110 Annual Report 2008
| |
| Shareholder | Nationwide Destination 2045 |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Fund
| | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2045 | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 670.18 | | | | 3.19 | | | | 0.76 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,021.32 | | | | 3.87 | | | | 0.76 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 668.45 | | | | 5.58 | | | | 1.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.45 | | | | 6.77 | | | | 1.33 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 668.42 | | | | 4.72 | | | | 1.13 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.48 | | | | 5.73 | | | | 1.13 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 669.36 | | | | 3.89 | | | | 0.93 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.47 | | | | 4.72 | | | | 0.93 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 670.33 | | | | 2.45 | | | | 0.58 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.20 | | | | 2.97 | | | | 0.58 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 670.94 | | | | 1.37 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.49 | | | | 1.67 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 111
| |
| Portfolio Summary | Nationwide Destination 2045 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 89.7% | |
| Exchange Traded Funds | | | 10.3% | |
| Other assets in excess of liabilities | | | 0.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 94.3% | |
| Fixed Income Funds | | | 4.5% | |
| Money Market Fund | | | 1.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 31.3% | |
| Nationwide International Index Fund, Institutional Class | | | 23.5% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 12.7% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 11.8% | |
| Vanguard Emerging Markets Fund | | | 5.7% | |
| Credit Suisse Commodity Return Strategy Fund | | | 4.7% | |
| Nationwide Bond Index Fund, Institutional Class | | | 4.5% | |
| Vanguard REIT Fund | | | 2.7% | |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 1.9% | |
| Nationwide Money Market Fund, Institutional Class | | | 1.2% | |
| | | | | |
| | | | 100.0% | |
112 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Destination 2045 Fund
| | | | | | | | | |
| Mutual Funds 89.7% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 84.0% |
| Credit Suisse Commodity Return Strategy Fund | | | 16,758 | | | $ | 144,286 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 112,884 | | | | 716,811 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 39,127 | | | | 389,701 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 117,641 | | | | 956,423 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 43,391 | | | | 361,451 | |
| | | | | | | | | |
| | | | | | | | 2,568,672 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 4.5%(a) |
| Nationwide Bond Index Fund, Institutional Class | | | 13,392 | | | | 138,067 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.2%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 35,682 | | | | 35,682 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 2,742,421 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 10.3% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 10.3% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 1,988 | | | | 56,658 | |
| Vanguard Emerging Markets Fund | | | 6,914 | | | | 174,302 | |
| Vanguard REIT Fund | | | 1,977 | | | | 82,065 | |
| | | | | | | | | |
| | | | | | | | 313,025 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 313,025 | |
| | | | | |
| | | | | |
Total Investments (Cost $4,226,217) (b) — 100.0% | | | 3,055,446 | |
Other assets in excess of liabilities — 0.0% | | | | | | | 794 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 3,056,240 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 113
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | Nationwide Destination 2045 Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $693,391) | | | $ | 457,311 | |
| Investments in affiliates, at value (cost $3,532,826 ) | | | | 2,598,135 | |
| | | | | | |
| Total Investments | | | | 3,055,446 | |
| | | | | | |
| Cash | | | | 1,166 | |
| Dividends receivable from affiliates | | | | 553 | |
| Receivable for capital shares issued | | | | 8,510 | |
| Prepaid expenses and other assets | | | | 4 | |
| | | | | | |
| Total Assets | | | | 3,065,679 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 4,335 | |
| Payable for capital shares redeemed | | | | 3,572 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 731 | |
| Distribution fees | | | | 801 | |
| | | | | | |
| Total Liabilities | | | | 9,439 | |
| | | | | | |
Net Assets | | | $ | 3,056,240 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 4,227,686 | |
| Accumulated undistributed net investment income | | | | 889 | |
| Accumulated net realized losses from investment transactions | | | | (1,564 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (934,691 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (236,080 | ) |
| | | | | | |
Net Assets | | | $ | 3,056,240 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 306,286 | |
| Class C Shares | | | | 4,982 | |
| Class R1 | | | | 58,896 | |
| Class R2 | | | | 1,821,560 | |
| Institutional Service Class Shares | | | | 147,351 | |
| Institutional Class Shares | | | | 717,165 | |
| | | | | | |
| Total | | | $ | 3,056,240 | |
| | | | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 47,297 | |
| Class C Shares | | | | 770 | |
| Class R1 Shares | | | | 9,113 | |
| Class R2 Shares | | | | 282,002 | |
| Institutional Service Class Shares | | | | 22,785 | |
| Institutional Class Shares | | | | 110,599 | |
| | | | | | |
| Total | | | | 472,566 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 6.48 | |
| Class C Shares (a) | | | $ | 6.47 | |
| Class R1 Shares | | | $ | 6.46 | |
| Class R2 Shares | | | $ | 6.46 | |
| Institutional Service Class Shares | | | $ | 6.47 | |
| Institutional Class Shares | | | $ | 6.48 | |
| |
| (a) | For Class C, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
114 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2045 Fund | |
| | | | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 6.88 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 115
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2045
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 37,240 | |
| Dividend income | | | | 7,538 | |
| Interest income | | | | 317 | |
| | | | | | |
| Total Income | | | | 45,095 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 8,698 | |
| Distribution fees Class A | | | | 282 | |
| Distribution fees Class C | | | | 31 | |
| Distribution fees Class R1 | | | | 69 | |
| Distribution fees Class R2 | | | | 4,468 | |
| Administrative servicing fees Class A | | | | 209 | |
| Administrative servicing fees Class R1 | | | | 18 | |
| Administrative servicing fees Class R2 | | | | 1,116 | |
| Administrative servicing fees Institutional Service Class | | | | 50 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 14,941 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (2,138 | ) |
| | | | | | |
| Net Expenses | | | | 12,803 | |
| | | | | | |
Net Investment Income | | | | 32,292 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 22,850 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 1 | |
| Net realized losses from investment transactions with affiliates | | | | (14,074 | ) |
| Net realized losses from investment transactions with non-affiliates | | | | (6,593 | ) |
| | | | | | |
| Net realized gains from affiliated and non-affiliated investments | | | | 2,184 | |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (993,535 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (263,288 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,256,823 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (1,254,639 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (1,222,347 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
116 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2045 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 32,292 | | | | $ | 3,618 | |
| Net realized gains from investment transactions | | | | 2,184 | | | | | 1,225 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,256,823 | ) | | | | 86,052 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (1,222,347 | ) | | | | 90,895 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (1,844 | ) | | | | (3 | ) |
| Class C | | | | (43 | ) | | | | (3 | ) |
| Class R1 | | | | (95 | ) | | | | (3 | ) |
| Class R2 | | | | (12,381 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (370 | ) | | | | (4 | ) |
| Institutional Class | | | | (20,428 | ) | | | | (3,911 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (2 | ) | | | | – | |
| Class C | | | | (1 | ) | | | | – | |
| Class R1 | | | | (1 | ) | | | | – | |
| Class R2 | | | | (61 | ) | | | | – | |
| Institutional Service Class | | | | (1 | ) | | | | – | |
| Institutional Class | | | | (854 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (36,081 | ) | | | | (3,927 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 3,218,036 | | | | | 1,009,664 | |
| | | | | | | | | | | |
| Change in net assets | | | | 1,959,608 | | | | | 1,096,632 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,096,632 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 3,056,240 | | | | $ | 1,096,632 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 889 | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 412,926 | | | | $ | 1,615 | |
| Dividends reinvested | | | | 1,846 | | | | | 3 | |
| Cost of shares redeemed | | | | (3,095 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 411,677 | | | | | 1,618 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 6,397 | | | | | 1,000 | |
| Dividends reinvested | | | | 44 | | | | | 3 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 6,441 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amount designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 117
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2045 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 77,048 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 96 | | | | | 3 | |
| Cost of shares redeemed | | | | (3,077 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 74,067 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,562,391 | | | | | 6,122 | |
| Dividends reinvested | | | | 12,442 | | | | | 3 | |
| Cost of shares redeemed | | | | (117,680 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R2 | | | | 2,457,153 | | | | | 6,125 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 191,393 | | | | | 1,000 | |
| Dividends reinvested | | | | 371 | | | | | 4 | |
| Cost of shares redeemed | | | | (20,814 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 170,950 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 89,304 | | | | | 995,000 | |
| Dividends reinvested | | | | 21,282 | | | | | 3,911 | |
| Cost of shares redeemed | | | | (12,838 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 97,748 | | | | | 998,911 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 3,218,036 | | | | $ | 1,009,664 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 47,312 | | | | | 157 | |
| Reinvested | | | | 214 | | | | | – | |
| Redeemed | | | | (386 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 47,140 | | | | | 157 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 665 | | | | | 100 | |
| Reinvested | | | | 5 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 670 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 9,476 | | | | | 100 | |
| Reinvested | | | | 11 | | | | | – | |
| Redeemed | | | | (474 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 9,013 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amount designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
118 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2045 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 292,840 | | | | | 572 | |
| Reinvested | | | | 1,415 | | | | | – | |
| Redeemed | | | | (12,825 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 281,430 | | | | | 572 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 24,967 | | | | | 100 | |
| Reinvested | | | | 44 | | | | | – | |
| Redeemed | | | | (2,326 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 22,685 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 10,020 | | | | | 99,501 | |
| Reinvested | | | | 2,233 | | | | | 377 | |
| Redeemed | | | | (1,532 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 10,721 | | | | | 99,878 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 371,659 | | | | | 100,907 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amount designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 119
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2045 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .87 | | | | 0 | .14 | | | | (4 | .35) | | | | (4 | .21) | | | | (0 | .17) | | | | (0 | .01) | | | | (0 | .18) | | | $ | 6 | .48 | | | | (39 | .25%) | | | $ | 306,286 | | | | | 0 | .76% | | | | 1 | .64% | | | | 0 | .83% | | | | 19 | .55% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .88 | | | | 0 | .90 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .87 | | | | 9 | .06% | | | $ | 1,708 | | | | | 0 | .85% | | | | 1 | .32% | | | | 1 | .26% | | | | 1 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .86 | | | | 0 | .12 | | | | (4 | .38) | | | | (4 | .26) | | | | (0 | .12) | | | | (0 | .01) | | | | (0 | .13) | | | $ | 6 | .47 | | | | (39 | .64%) | | | $ | 4,982 | | | | | 1 | .34% | | | | 1 | .35% | | | | 1 | .40% | | | | 19 | .55% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .87 | | | | 0 | .89 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .86 | | | | 8 | .93% | | | $ | 1,089 | | | | | 1 | .40% | | | | 0 | .90% | | | | 1 | .48% | | | | 1 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .86 | | | | 0 | .05 | | | | (4 | .31) | | | | (4 | .26) | | | | (0 | .13) | | | | (0 | .01) | | | | (0 | .14) | | | $ | 6 | .46 | | | | (39 | .65%) | | | $ | 58,896 | | | | | 1 | .14% | | | | 0 | .63% | | | | 1 | .18% | | | | 19 | .55% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .87 | | | | 0 | .89 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .86 | | | | 8 | .93% | | | $ | 1,089 | | | | | 1 | .40% | | | | 0 | .90% | | | | 1 | .48% | | | | 1 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .86 | | | | 0 | .11 | | | | (4 | .33) | | | | (4 | .22) | | | | (0 | .17) | | | | (0 | .01) | | | | (0 | .18) | | | $ | 6 | .46 | | | | (39 | .42%) | | | $ | 1,821,560 | | | | | 0 | .95% | | | | 1 | .32% | | | | 1 | .04% | | | | 19 | .55% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .87 | | | | 0 | .89 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .86 | | | | 8 | .96% | | | $ | 6,211 | | | | | 1 | .05% | | | | 1 | .25% | | | | 1 | .14% | | | | 1 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .86 | | | | 0 | .15 | | | | (4 | .35) | | | | (4 | .20) | | | | (0 | .18) | | | | (0 | .01) | | | | (0 | .19) | | | $ | 6 | .47 | | | | (39 | .26%) | | | $ | 147,351 | | | | | 0 | .59% | | | | 1 | .96% | | | | 0 | .60% | | | | 19 | .55% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .87 | | | | 0 | .90 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .86 | | | | 8 | .98% | | | $ | 1,090 | | | | | 0 | .70% | | | | 1 | .59% | | | | 0 | .79% | | | | 1 | .44% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .87 | | | | 0 | .17 | | | | (4 | .35) | | | | (4 | .18) | | | | (0 | .20) | | | | (0 | .01) | | | | (0 | .21) | | | $ | 6 | .48 | | | | (39 | .09%) | | | $ | 717,165 | | | | | 0 | .33% | | | | 1 | .88% | | | | 0 | .46% | | | | 19 | .55% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .87 | | | | 0 | .91 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .87 | | | | 9 | .11% | | | $ | 1,085,445 | | | | | 0 | .33% | | | | 2 | .01% | | | | 0 | .50% | | | | 1 | .44% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
120 Annual Report 2008
| |
| Nationwide Destination 2050 Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Destination 2050 Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Destination 2050 Fund (Class A at NAV) registered
-39.48% versus -34.36% for its benchmark, the Dow Jones (DJ) Target 2050 Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target 2050+ Funds (consisting of 75 funds as of October 31, 2008) was -39.92%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Money Market Fund and the Nationwide Bond Index Fund (with allocations within the Fund of approximately 1% and 4%, respectively) provided the only positive returns for the Fund, gaining 2.65% and 0.04%, respectively, during the reporting period. The strongest performers in the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers (LB) U.S. Aggregate Bond Index) during the reporting period were U.S. Treasury, Agency and Agency mortgage-backed securities, which posted gains of 7.76%, 4.68% and 4.62%, respectively, for the period. The broad corporate bond sector, however, dropped 13.82% and undermined most of the gains posted by other U.S. bond market sectors.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose allocations within the Fund are approximately 28% and 25%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with-23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not erode their capital further. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
2008 Annual Report 121
Nationwide Destination 2050 Fund
(Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
Nationwide Target Destination 2050 Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 28% | | | | -36.25% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 25% | | | | -46.44% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 13% | | | | -36.63% | |
| |
| |
| Small-Cap Stocks | | Nationwide Small Cap Index Fund | | | 12% | | | | -34.45% | |
| |
| |
| Emerging Market Stocks | | Vanguard Emerging Markets Fund (ETF) | | | 7% | | | | -56.62% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 5% | | | | -27.08% | |
| |
| |
| Intermediate-Term Bonds | | Nationwide Bond Index | | | 4% | | | | 0.03% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 3% | | | | -39.69% | |
| |
| |
| | | SPDRs DJ Wilshire International Real Estate | | | | | | | | |
| International REITS | | (ETF) | | | 2% | | | | -54.97% | |
| |
| |
| Money Market Investments | | Nationwide Money Market fund | | | 1% | | | | 2.64% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse (common shares) and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
122 Annual Report 2008
| |
| Fund Performance | Nationwide Destination 2050 Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -39.48% | | | | -29.73% | | | | 1.33% | | | | 1.16% | |
| | | w/SC3 | | | -43.02% | | | | -33.27% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -40.01% | | | | -30.32% | | | | 1.83% | | | | 1.66% | |
| | | w/SC4 | | | -40.60% | | | | -30.32% | | | | | | | | | |
| |
| |
Class R12 | | | | | -39.82% | | | | -30.14% | | | | 1.73% | | | | 1.56% | |
| |
| |
Class R22 | | | | | -39.79% | | | | -30.03% | | | | 1.58% | | | | 1.41% | |
| |
| |
Institutional Service Class2 | | | | | -39.50% | | | | -29.73% | | | | 1.08% | | | | 0.91% | |
| |
| |
Institutional Class2 | | | | | -39.33% | | | | -29.50% | | | | 0.83% | | | | 0.66% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Destination 2050 Fund, Dow Jones Target 2050 Index(a), the Dow Jones Wilshire 5000 Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Dow Jones Wilshire 5000 Index is an unmanaged, market capitalization-weighted index of all U.S.-headquartered |
2008 Annual Report 123
| |
| Fund Performance | Nationwide Destination 2050 Fund |
Continued
| | |
| | equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
124 Annual Report 2008
| |
| Shareholder | Nationwide Destination 2050 |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Fund
| | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Destination 2050 | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 667.84 | | | | 1.97 | | | | 0.47 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.78 | | | | 2.39 | | | | 0.47 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 663.83 | | | | 5.53 | | | | 1.32 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.49 | | | | 6.73 | | | | 1.32 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 666.01 | | | | 5.18 | | | | 1.24 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.92 | | | | 6.30 | | | | 1.24 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 665.75 | | | | 4.28 | | | | 1.02 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,019.99 | | | | 5.21 | | | | 1.02 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 667.09 | | | | 2.50 | | | | 0.60 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.13 | | | | 3.04 | | | | 0.60 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 668.34 | | | | 1.37 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.49 | | | | 1.66 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 125
| |
| Portfolio Summary | Nationwide Destination 2050 Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 88.7% | |
| Exchange Traded Funds | | | 11.3% | |
| Other assets in excess of liabilities | | | 0.0% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Equity Funds | | | 94.3% | |
| Fixed Income Funds | | | 4.5% | |
| Money Market Fund | | | 1.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| TopHoldings | | |
| |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 29.2% | |
| Nationwide International Index Fund, Institutional Class | | | 24.5% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 12.8% | |
| Nationwide Small Cap Index Fund, Institutional Class | | | 11.8% | |
| Vanguard Emerging Markets Fund | | | 6.7% | |
| Credit Suisse Commodity Return Strategy Fund | | | 4.7% | |
| Nationwide Bond Index Fund, Institutional Class | | | 4.5% | |
| Vanguard REIT Fund | | | 2.7% | |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 1.9% | |
| Nationwide Money Market Fund, Institutional Class | | | 1.2% | |
| | | | | |
| | | | 100.0% | |
126 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Destination 2050 Fund
| | | | | | | | | |
| Mutual Funds 88.7% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 83.0% |
| Credit Suisse Commodity Return Strategy Fund | | | 18,659 | | | $ | 160,657 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 130,510 | | | | 828,738 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 43,423 | | | | 432,491 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 121,817 | | | | 990,373 | |
| Nationwide Small Cap Index Fund, Institutional Class(a) | | | 48,116 | | | | 400,808 | |
| | | | | | | | | |
| | | | | | | | 2,813,067 | |
| | | | | | | | | |
| |
| |
Fixed Income Fund 4.5%(a) |
| Nationwide Bond Index Fund, Institutional Class | | | 14,822 | | | | 152,812 | |
| | | | | | | | | |
| |
| |
Money Market Fund 1.2%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 39,616 | | | | 39,616 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 3,005,495 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 11.3% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 11.3% |
| Vanguard Emerging Markets Fund | | | 9,004 | | | | 226,991 | |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 2,196 | | | | 62,586 | |
| Vanguard REIT Fund | | | 2,215 | | | | 91,945 | |
| | | | | | | | | |
| | | | | | | | 381,522 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 381,522 | |
| | | | | |
| | | | | |
Total Investments (Cost $4,621,980) (b) — 100.0% | | | 3,387,017 | |
Other assets in excess of liabilities — 0.0% | | | | | | | 1,628 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 3,388,645 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 127
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2050
| |
| | | Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $814,298) | | | $ | 542,179 | |
| Investments in affiliates, at value (cost $3,807,682 ) | | | | 2,844,838 | |
| | | | | | |
| Total Investments | | | | 3,387,017 | |
| | | | | | |
| Cash | | | | 2,599 | |
| Dividends receivable from affiliates | | | | 604 | |
| Receivable for capital shares issued | | | | 15,230 | |
| | | | | | |
| Total Assets | | | | 3,405,450 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 13,325 | |
| Payable for capital shares redeemed | | | | 1,496 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 792 | |
| Distribution fees | | | | 871 | |
| Administrative servicing fees | | | | 321 | |
| | | | | | |
| Total Liabilities | | | | 16,805 | |
| | | | | | |
Net Assets | | | $ | 3,388,645 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 4,685,524 | |
| Accumulated undistributed net investment income | | | | 1 | |
| Accumulated net realized losses from investment transactions | | | | (61,917 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (962,844 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (272,119 | ) |
| | | | | | |
Net Assets | | | $ | 3,388,645 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 200,917 | |
| Class C Shares | | | | 6,734 | |
| Class R1 | | | | 314,774 | |
| Class R2 | | | | 1,810,597 | |
| Institutional Service Class Shares | | | | 337,395 | |
| Institutional Class Shares | | | | 718,228 | |
| | | | | | |
| Total | | | $ | 3,388,645 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
128 Annual Report 2008
| | | | | | |
| | | | | |
| | | | Nationwide Destination 2050
| |
| | | | Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 31,318 | |
| Class C Shares | | | | 1,052 | |
| Class R1 Shares | | | | 49,222 | |
| Class R2 Shares | | | | 283,516 | |
| Institutional Service Class Shares | | | | 52,629 | |
| Institutional Class Shares | | | | 111,960 | |
| | | | | | |
| Total | | | | 529,697 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 6.42 | |
| Class C Shares (a) | | | $ | 6.40 | |
| Class R1 Shares | | | $ | 6.40 | (b) |
| Class R2 Shares | | | $ | 6.39 | |
| Institutional Service Class Shares | | | $ | 6.41 | |
| Institutional Class Shares | | | $ | 6.42 | |
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 6.81 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (b) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 129
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Destination 2050
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 37,540 | |
| Dividend income | | | | 7,953 | |
| Interest income | | | | 14 | |
| | | | | | |
| Total Income | | | | 45,507 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 9,134 | |
| Distribution fees Class A | | | | 379 | |
| Distribution fees Class C | | | | 55 | |
| Distribution fees Class R1 | | | | 729 | |
| Distribution fees Class R2 | | | | 3,988 | |
| Administrative servicing fees Class A | | | | 21 | |
| Administrative servicing fees Class R1 | | | | 293 | |
| Administrative servicing fees Class R2 | | | | 1,616 | |
| Administrative servicing fees Institutional Service Class | | | | 230 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 16,445 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (2,205 | ) |
| | | | | | |
| Net Expenses | | | | 14,240 | |
| | | | | | |
Net Investment Income | | | | 31,267 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 23,220 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 1 | |
| Net realized gains from investment transactions with affiliates | | | | 31,558 | |
| Net realized losses from investment transactions with non-affiliates | | | | (102,852 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (48,073 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (1,023,598 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (302,120 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,325,718 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (1,373,791 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (1,342,524 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
130 Annual Report 2008
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Destination 2050 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 31,267 | | | | $ | 3,574 | |
| Net realized gains (losses) from investment transactions | | | | (48,073 | ) | | | | 855 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (1,325,718 | ) | | | | 90,755 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (1,342,524 | ) | | | | 95,184 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (2,585 | ) | | | | (3 | ) |
| Class C | | | | (44 | ) | | | | (3 | ) |
| Class R1 | | | | (1,151 | ) | | | | (3 | ) |
| Class R2 | | | | (10,330 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (1,817 | ) | | | | (4 | ) |
| Institutional Class | | | | (29,198 | ) | | | | (3,874 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (26 | ) | | | | – | |
| Class C | | | | (1 | ) | | | | – | |
| Class R1 | | | | (1 | ) | | | | – | |
| Class R2 | | | | (9 | ) | | | | – | |
| Institutional Service Class | | | | (1 | ) | | | | – | |
| Institutional Class | | | | (509 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (45,672 | ) | | | | (3,890 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 3,614,617 | | | | | 1,070,930 | |
| | | | | | | | | | | |
| Change in net assets | | | | 2,226,421 | | | | | 1,162,224 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,162,224 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 3,388,645 | | | | $ | 1,162,224 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 1 | | | | $ | – | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 279,564 | | | | $ | 51,941 | |
| Dividends reinvested | | | | 2,611 | | | | | 3 | |
| Cost of shares redeemed | | | | (49,574 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 232,601 | | | | | 51,944 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 18,154 | | | | | 1,000 | |
| Dividends reinvested | | | | 44 | | | | | 3 | |
| Cost of shares redeemed | | | | (9,295 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 8,903 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 131
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Destination 2050 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 430,694 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 1,152 | | | | | 3 | |
| Cost of shares redeemed | | | | (1,703 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 430,143 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,831,852 | | | | | 13,054 | |
| Dividends reinvested | | | | 10,339 | | | | | 3 | |
| Cost of shares redeemed | | | | (456,335 | ) | | | | (1 | ) |
| | | | | | | | | | | |
| Total Class R2 | | | | 2,385,856 | | | | | 13,056 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 489,188 | | | | | 1,000 | |
| Dividends reinvested | | | | 1,818 | | | | | 4 | |
| Cost of shares redeemed | | | | (42,289 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 448,717 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 85,645 | | | | | 999,048 | |
| Dividends reinvested | | | | 29,707 | | | | | 3,874 | |
| Cost of shares redeemed | | | | (6,955 | ) | | | | (2 | ) |
| | | | | | | | | | | |
| Total Institutional Class | | | | 108,397 | | | | | 1,002,920 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 3,614,617 | | | | $ | 1,070,930 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 31,394 | | | | | 4,905 | |
| Reinvested | | | | 284 | | | | | – | |
| Redeemed | | | | (5,265 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 26,413 | | | | | 4,905 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | 1,895 | | | | | 100 | |
| Reinvested | | | | 5 | | | | | – | |
| Redeemed | | | | (948 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 952 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 49,235 | | | | | 100 | |
| Reinvested | | | | 138 | | | | | – | |
| Redeemed | | | | (251 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 49,122 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
132 Annual Report 2008
| | | | | | | | | | | |
| | | | Nationwide Destination 2050 Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 332,471 | | | | | 1,216 | |
| Reinvested | | | | 1,183 | | | | | – | |
| Redeemed | | | | (51,354 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 282,300 | | | | | 1,216 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 57,184 | | | | | 100 | |
| Reinvested | | | | 216 | | | | | – | |
| Redeemed | | | | (4,871 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 52,529 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 9,403 | | | | | 99,880 | |
| Reinvested | | | | 3,069 | | | | | 373 | |
| Redeemed | | | | (765 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 11,707 | | | | | 100,253 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 423,023 | | | | | 106,674 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 133
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2050 Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
| | | | |
| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Investment
| | | Expenses
| | | | | |
| | | | Value,
| | | Net
| | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Income
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Investment
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | (Loss) to
| | | Reimbursements)
| | | | | |
| | | | of | | | Income
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | (Loss) | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .89 | | | | 0 | .14 | | | | (4 | .35) | | | | (4 | .21) | | | | (0 | .25) | | | | (0 | .01) | | | | (0 | .26) | | | $ | 6 | .42 | | | | (39 | .48%) | | | $ | 200,917 | | | | | 0 | .59% | | | | 1 | .55% | | | | 0 | .70% | | | | 34 | .38% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | (0 | .01) | | | | 0 | .93 | | | | 0 | .92 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .89 | | | | 9 | .25% | | | $ | 53,443 | | | | | 0 | .86% | | | | (0 | .30%) | | | | 1 | .08% | | | | 0 | .82% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .88 | | | | 0 | .06 | | | | (4 | .34) | | | | (4 | .28) | | | | (0 | .19) | | | | (0 | .01) | | | | (0 | .20) | | | $ | 6 | .40 | | | | (40 | .01%) | | | $ | 6,734 | | | | | 1 | .34% | | | | 0 | .65% | | | | 1 | .43% | | | | 34 | .38% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .89 | | | | 0 | .91 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .88 | | | | 9 | .13% | | | $ | 1,092 | | | | | 1 | .39% | | | | 0 | .87% | | | | 1 | .49% | | | | 0 | .82% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .88 | | | | 0 | .06 | | | | (4 | .31) | | | | (4 | .25) | | | | (0 | .22) | | | | (0 | .01) | | | | (0 | .23) | | | $ | 6 | .40 | | | | (39 | .82%) | | | $ | 314,774 | | | | | 1 | .24% | | | | 0 | .72% | | | | 1 | .27% | | | | 34 | .38% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .02 | | | | 0 | .89 | | | | 0 | .91 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .88 | | | | 9 | .13% | | | $ | 1,092 | | | | | 1 | .39% | | | | 0 | .87% | | | | 1 | .49% | | | | 0 | .82% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .89 | | | | 0 | .09 | | | | (4 | .33) | | | | (4 | .24) | | | | (0 | .25) | | | | (0 | .01) | | | | (0 | .26) | | | $ | 6 | .39 | | | | (39 | .79%) | | | $ | 1,810,597 | | | | | 1 | .03% | | | | 1 | .02% | | | | 1 | .11% | | | | 34 | .38% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .01 | | | | 0 | .91 | | | | 0 | .92 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .89 | | | | 9 | .25% | | | $ | 13,240 | | | | | 1 | .06% | | | | 0 | .62% | | | | 1 | .17% | | | | 0 | .82% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .89 | | | | 0 | .12 | | | | (4 | .33) | | | | (4 | .21) | | | | (0 | .26) | | | | (0 | .01) | | | | (0 | .27) | | | $ | 6 | .41 | | | | (39 | .50%) | | | $ | 337,395 | | | | | 0 | .60% | | | | 1 | .47% | | | | 0 | .65% | | | | 34 | .38% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .03 | | | | 0 | .90 | | | | 0 | .93 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .89 | | | | 9 | .28% | | | $ | 1,093 | | | | | 0 | .70% | | | | 1 | .57% | | | | 0 | .79% | | | | 0 | .82% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .90 | | | | 0 | .18 | | | | (4 | .37) | | | | (4 | .19) | | | | (0 | .28) | | | | (0 | .01) | | | | (0 | .29) | | | $ | 6 | .42 | | | | (39 | .33%) | | | $ | 718,228 | | | | | 0 | .33% | | | | 1 | .93% | | | | 0 | .46% | | | | 34 | .38% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .90 | | | | 0 | .94 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .90 | | | | 9 | .41% | | | $ | 1,092,264 | | | | | 0 | .33% | | | | 1 | .98% | | | | 0 | .50% | | | | 0 | .82% | | |
| |
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
134 Annual Report 2008
| |
| Nationwide Retirement Income Fund | |
The Nationwide Target Destination Funds (“Target Funds”) were launched at the end of August 2007, and the period from November 1, 2007, through October 31, 2008, represents the Target Funds’ first full fiscal year. Information on the performance of the Nationwide Retirement Income Fund during the annual reporting period follows.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the annual period ended October 31, 2008, the Nationwide Retirement Income Fund (Class A at NAV) registered -14.50% versus -6.76% for its benchmark, the Dow Jones (DJ) Target Today Index. For broader comparison, the average return for the Fund’s Lipper Inc. peer category of Mixed-Asset Target Allocation Conservative Funds (consisting of 451 funds as of October 31, 2008) was -18.98%.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Short Term Bond ETF and the Nationwide Money Market Fund (with target allocations within the Fund of approximately 18% and 11%, respectively) provided the most positive returns for the Fund, gaining 3.60% and 2.65%, respectively, during the reporting period. As risk aversion in the U.S. bond market grew throughout the period, the Vanguard Short Term Bond ETF benefited from a large allocation to U.S. Treasury and Agency bonds (67% of the Fund at the end of the period) and high-credit-quality bonds (75% of the Fund rated AAA by Moody’s Investors Service at the end of the period).
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -36.25%, and the Nationwide International Index Fund, with -46.44% (whose target allocations within the Fund are approximately 18% and 5%, respectively) proved to be the largest negative contributors to the Fund as a whole during the reporting period. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded negative performance for the reporting period. Although each sector lost ground, the strongest performers among the sectors were consumer staples, with -11.85%; health care, with -23.96%; and utilities, with -29.02%. The weakest sector performers were financials, with -52.09%; information technology, with -41.21%; and materials, with -41.18%. Similarly, all 10 sectors and 21 countries represented in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index recorded negative returns for the reporting period. Although each sector lost ground, the strongest-performing sectors included health care, with -20.52%; utilities, with -30.84%; and consumer staples, with -31.86%. As for country allocations within the Fund, the highest returns during the reporting period (although significantly negative) were Switzerland, with -32.30%; Japan, with -37.50%; and France, with -46.29%.
What is your outlook for the near term?
We have experienced several months of unprecedented market declines with no apparent end in sight. Governments around the world have come to the rescue of some of the largest and best-known financial firms. October 2008 witnessed even steeper market declines and volatility at or near all-time high levels. The U.S. economy has slowed dramatically since 2007 and near-term prospects are not good. Many investors have run for cover in the hope that this latest wave of market declines – spawned by the many problems that surfaced in 2007 in the housing and mortgage markets – will not further erode their capital. Given the continuing crisis in the global equity and credit markets, the investment outlook for the near term is relatively bleak.
We believe that the ongoing market turbulence underscores the critical importance of investing for the long term in a broadly diversified solution such as the Nationwide Target Destination Funds. By combining underlying investments in up to 14 distinct asset classes that typically behave differently under various market conditions, it is possible for the Target Funds to achieve higher risk-adjusted returns than those that could be achieved with a less-diversified portfolio of investments over the long term.
The table on the next page lists the target allocation for each of the Fund’s underlying investments as of October 31, 2008, and how each underlying fund performed during the reporting period.
2008 Annual Report 135
Nationwide Retirement Income Fund
(Continued)
Nationwide Retirement Income Fund
Performance of Underlying Investments for the 12 Months Ended October 31, 2008
| | | | | | | | | | | |
| | | | | Target
| | 12-Month
|
| Asset Class | | Underlying Investment | | Allocation* | | Return |
| |
| Inflation-Protected Bonds | | iShares Lehman TIPS Bond Fund (ETF) | | | 24% | | | | -4.22% | |
| |
| |
| Large-Cap Stocks | | Nationwide S&P 500 Index Fund | | | 18% | | | | -36.25% | |
| |
| |
| Short-Term Bonds | | Vanguard Short Term Bond (ETF) | | | 18% | | | | 3.60% | |
| |
| |
| Money Market Investments | | Nationwide Money Market Fund | | | 11% | | | | 2.64% | |
| |
| |
| International Bonds | | Oppenheimer International Bond Fund | | | 8% | | | | -8.91% | |
| |
| |
| Intermediate Term Bonds | | Nationwide Bond Index | | | 7% | | | | 0.03% | |
| |
| |
| International Stocks | | Nationwide International Index Fund | | | 5% | | | | -46.44% | |
| |
| |
| Commodity Stocks | | Credit Suisse Commodity Strategy Return Fund | | | 3% | | | | -27.09% | |
| |
| |
| Mid-Cap Stocks | | Nationwide Mid Cap Market Index Fund | | | 2% | | | | -36.63% | |
| |
| |
| High-Yield Bonds | | T. Rowe Price Institutional High Yield Bond Fund | | | 2% | | | | -20.56% | |
| |
| |
| Domestic REITS | | Vanguard REIT (ETF) | | | 1% | | | | -39.69% | |
| |
| |
| International REITS | | SPDRs DJ Wilshire International Real Estate (ETF) | | | 1% | | | | -54.97% | |
| |
| |
| | |
| * | | Fund target allocations are as of October 31, 2008. |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for Credit Suisse – Common Shares – and exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown, please call 1-800-848-0920 or go to nationwidefunds.com.
Portfolio Manager:
Thomas R. Hickey, Jr., Nationwide Fund Advisors
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency except as stated below. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the money market.
| |
| • | The U.S. Treasury Temporary Guarantee Program provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008. |
| • | Any increase in the number of shares an investor holds after the close of business on September 19, 2008, will not be guaranteed. |
| • | If a customer closes his or her account with a fund or broker-dealer, any future investment in the fund will not be guaranteed. |
| • | If the number of shares an investor holds fluctuates during the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. |
| • | The Program, which was set to expire on December 18, 2008, has been extended by the United States Treasury and is set to expire on April 30, 2009. |
136 Annual Report 2008
| |
| Fund Performance | Nationwide Retirement Income Fund |
Average Annual Total Return
(For period ended October 31, 2008)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Gross
| | Net
|
| | | | | One
| | | | Expense
| | Expense
|
| | | | | Year | | Inception1 | | Ratio* | | Ratio* |
| |
| Class A | | w/o SC5 | | | -14.50% | | | | -9.80% | | | | 1.30% | | | | 1.13% | |
| | | w/SC3 | | | -19.53% | | | | -14.34% | | | | | | | | | |
| |
| |
| Class C | | w/o SC5 | | | -15.01% | | | | -10.35% | | | | 1.80% | | | | 1.63% | |
| | | w/SC4 | | | -15.84% | | | | -10.35% | | | | | | | | | |
| |
| |
Class R12 | | | | | -14.76% | | | | -10.12% | | | | 1.70% | | | | 1.53% | |
| |
| |
Class R22 | | | | | -14.67% | | | | -9.95% | | | | 1.55% | | | | 1.38% | |
| |
| |
Institutional Service Class2 | | | | | -14.30% | | | | -9.60% | | | | 1.05% | | | | 0.88% | |
| |
| |
Institutional Class2 | | | | | -14.11% | | | | -9.33% | | | | 0.80% | | | | 0.63% | |
| |
| |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| | |
| * | | As of October 31, 2007. The difference between gross and net operating expenses reflects contractual waivers in place through May 1, 2009. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
| |
| 1 | | Fund commenced operations on August 30, 2007. |
| |
| 2 | | Not subject to any sales charges. |
| |
| 3 | | A 5.75% front-end sales charge was deducted. |
| |
| 4 | | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. |
| |
| 5 | | These returns do not reflect the effects of sales charges (SC). |
Performance of a $10,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $10,000 invested in the Class A of the Nationwide Retirement Income Fund, the Dow Jones Target Today Index(a), the Lehman U.S. Aggregate Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| | |
| (a) | | The series of unmanaged portfolio-based, asset-class weighted indexes consists of composites of subindexes that represent the three major asset classes - stock, bonds and cash. The indexes measure the performance of balanced and multi-asset-class portfolios. These portfolios typically have five-year-interval target dates, and their allocations in stocks, bonds and cash are adjusted automatically to gradually reduce risk as the target dates approach. The indexes’ asset-class weightings are rebalanced monthly to match predetermined relative levels of potential risk, with a minimum of 4% weighting in each asset class. Dow Jones subindexes represent the stock component of each target date index, and Lehman Brothers subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. |
| |
| (b) | | The Lehman U.S. Aggregate Index is an unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or |
2008 Annual Report 137
| |
| Fund Performance | Nationwide Retirement Income Fund |
Continued
| | |
| | more) that is generally representative of the bond market as a whole. |
| |
| (c) | | The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
138 Annual Report 2008
| |
| Shareholder | Nationwide Retirement Income |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | |
| | | Fund
| | | | | | |
| | | Beginning
| | Ending
| | Expenses Paid
| | Expense Ratio
|
| | | Account Value ($)
| | Account Value ($)
| | During Period ($)
| | During Period (%)
|
| Nationwide Retirement Income | | 05/01/08 | | 10/31/08 | | 05/01/08 - 10/31/08a | | 05/01/08 - 10/31/08a |
| |
| Class A Shares | | | Actual | | | | 1,000.00 | | | | 847.31 | | | | 3.91 | | | | 0.84 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.90 | | | | 4.29 | | | | 0.84 | |
| |
| |
| Class C Shares | | | Actual | | | | 1,000.00 | | | | 845.04 | | | | 6.57 | | | | 1.42 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.02 | | | | 7.21 | | | | 1.42 | |
| |
| |
| Class R1 Shares | | | Actual | | | | 1,000.00 | | | | 846.73 | | | | 5.75 | | | | 1.24 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,018.91 | | | | 6.30 | | | | 1.24 | |
| |
| |
| Class R2 Shares | | | Actual | | | | 1,000.00 | | | | 847.62 | | | | 4.17 | | | | 0.90 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,020.62 | | | | 4.57 | | | | 0.90 | |
| |
| |
| Institutional Service Class Shares | | | Actual | | | | 1,000.00 | | | | 849.17 | | | | 2.73 | | | | 0.59 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,022.19 | | | | 2.99 | | | | 0.59 | |
| |
| |
| Institutional Class Shares | | | Actual | | | | 1,000.00 | | | | 849.68 | | | | 1.53 | | | | 0.33 | |
| | | | Hypothetical | b | | | 1,000.00 | | | | 1,023.48 | | | | 1.67 | | | | 0.33 | |
| |
| |
| | |
| (a) | | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with SEC guidelines. |
| |
| (b) | | Represents the hypothetical 5% return before expenses. |
2008 Annual Report 139
| |
| Portfolio Summary | Nationwide Retirement Income Fund |
October 31, 2008
| | | | | |
| Asset Allocation | | |
| |
| Mutual Funds | | | 55.5% | |
| Exchange Traded Funds | | | 44.3% | |
| Other assets in excess of liabilities | | | 0.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Industries | | |
| |
| Fixed Income Funds | | | 60.0% | |
| Equity Funds | | | 27.7% | |
| Money Market Fund | | | 12.1% | |
| Other | | | 0.2% | |
| | | | | |
| | | | 100.0% | |
| | | | | |
| Top Holdings | | |
| |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 23.6% | |
| Vanguard Short-Term Bond Fund | | | 19.1% | |
| Nationwide S&P 500 Index Fund, Institutional Class | | | 17.3% | |
| Nationwide Money Market Fund, Institutional Class | | | 12.1% | |
| Oppenheimer International Bond Fund, Class Y | | | 8.0% | |
| Nationwide Bond Index Fund, Institutional Class | | | 7.4% | |
| Nationwide International Index Fund, Institutional Class | | | 4.5% | |
| Credit Suisse Commodity Return Strategy Fund | | | 2.6% | |
| T. Rowe Price High Yield Bond Fund | | | 1.9% | |
| Nationwide Mid Cap Market Index Fund, Institutional Class | | | 1.8% | |
| Other | | | 1.7% | |
| | | | | |
| | | | 100.0% | |
140 Annual Report 2008
Statement of Investments
October 31, 2008
Nationwide Retirement Income Fund
| | | | | | | | | |
| Mutual Funds 55.5% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 26.1% |
| Credit Suisse Commodity Return Strategy Fund | | | 17,265 | | | $ | 148,648 | |
| Nationwide International Index Fund, Institutional Class(a) | | | 40,284 | | | | 255,800 | |
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | | | 10,279 | | | | 102,381 | |
| Nationwide S&P 500 Index Fund, Institutional Class(a) | | | 121,612 | | | | 988,708 | |
| | | | | | | | | |
| | | | | | | | 1,495,537 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 17.3% |
| Nationwide Bond Index Fund, Institutional Class(a) | | | 41,122 | | | | 423,970 | |
| Oppenheimer International Bond Fund, Class Y | | | 83,378 | | | | 461,917 | |
| T. Rowe Price High Yield Bond Fund | | | 14,661 | | | | 107,906 | |
| | | | | | | | | |
| | | | | | | | 993,793 | |
| | | | | | | | | |
| |
| |
Money Market Fund 12.1%(a) |
| Nationwide Money Market Fund, Institutional Class | | | 691,023 | | | | 691,023 | |
| | | | | | | | | |
| | | | | |
Total Mutual Funds | | | 3,180,353 | |
| | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Exchange Traded Funds 44.3% |
| | | | | | | | | |
| | | | Shares | | | | Value | |
| |
| |
| | | | | | | | | |
| | | | | | | | | |
Equity Funds 1.6% |
| SPDR Dow Jones Wilshire International Real Estate Fund | | | 1,676 | | | | 47,766 | |
| Vanguard REIT Fund | | | 994 | | | | 41,261 | |
| | | | | | | | | |
| | | | | | | | 89,027 | |
| | | | | | | | | |
| |
| |
Fixed Income Funds 42.7% |
| iShares Lehman U.S. Treasury Inflation Protected Securities Fund | | | 14,693 | | | | 1,353,225 | |
| Vanguard Short-Term Bond Fund | | | 14,539 | | | | 1,095,805 | |
| | | | | | | | | |
| | | | | | | | 2,449,030 | |
| | | | | | | | | |
| | | | | |
Total Exchange Traded Funds | | | 2,538,057 | |
| | | | | |
| | | | | |
Total Investments (Cost $6,640,649) (b) — 99.8% | | | 5,718,410 | |
Other assets in excess of liabilities — 0.2% | | | | | | | 12,261 | |
| | | | | | | | | |
| | | | | |
NET ASSETS — 100.0% | | $ | 5,730,671 | |
| | | | | |
| | |
| (a) | | Investment in affiliate. |
| |
| (b) | | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| | |
| REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2008 Annual Report 141
Statement of Assets and Liabilities
October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | Retirement Income Fund | |
| | | | |
Assets: | | | | | |
| Investments, at value (cost $3,707,071) | | | $ | 3,256,527 | |
| Investments in affiliates, at value (cost $2,933,578 ) | | | | 2,461,883 | |
| | | | | | |
| Total Investments | | | | 5,718,410 | |
| | | | | | |
| Cash | | | | 9,272 | |
| Dividends receivable from affiliates | | | | 2,664 | |
| Dividends receivable from non-affiliates | | | | 1,891 | |
| Receivable for capital shares issued | | | | 12,606 | |
| Receivable for investments sold | | | | 12,872 | |
| | | | | | |
| Total Assets | | | | 5,757,715 | |
| | | | | | |
Liabilities: | | | | | |
| Payable for investments purchased | | | | 22,833 | |
| Payable for capital shares redeemed | | | | 50 | |
| Accrued expenses and other payables: | | | | | |
| Investment advisory fees | | | | 1,568 | |
| Distribution fees | | | | 1,615 | |
| Administrative servicing fees | | | | 978 | |
| | | | | | |
| Total Liabilities | | | | 27,044 | |
| | | | | | |
Net Assets | | | $ | 5,730,671 | |
| | | | | | |
Represented by: | | | | | |
| Capital | | | $ | 6,727,943 | |
| Accumulated undistributed net investment income | | | | 17,243 | |
| Accumulated net realized losses from investment transactions | | | | (92,276 | ) |
| Net unrealized appreciation/(depreciation) from investments in affiliates | | | | (471,695 | ) |
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (450,544 | ) |
| | | | | | |
Net Assets | | | $ | 5,730,671 | |
| | | | | | |
Net Assets: | | | | | |
| Class A Shares | | | $ | 24,515 | |
| Class C Shares | | | | 880 | |
| Class R1 | | | | 1,620,940 | |
| Class R2 | | | | 1,583,732 | |
| Institutional Service Class Shares | | | | 1,606,839 | |
| Institutional Class Shares | | | | 893,765 | |
| | | | | | |
| Total | | | $ | 5,730,671 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
142 Annual Report
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Retirement Income Fund | |
| | | | |
Shares Outstanding (unlimited number of shares authorized): | | | | | |
| Class A Shares | | | | 2,863 | |
| Class C Shares | | | | 103 | |
| Class R1 Shares | | | | 189,623 | |
| Class R2 Shares | | | | 185,416 | |
| Institutional Service Class Shares | | | | 187,664 | |
| Institutional Class Shares | | | | 104,279 | |
| | | | | | |
| Total | | | | 669,948 | |
| | | | | | |
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | | | | | |
| Class A Shares | | | $ | 8.56 | |
| Class C Shares (a) | | | $ | 8.55 | (b) |
| Class R1 Shares | | | $ | 8.55 | |
| Class R2 Shares | | | $ | 8.54 | |
| Institutional Service Class Shares | | | $ | 8.56 | |
| Institutional Class Shares | | | $ | 8.57 | |
Maximum offering price per share (100%(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | | | | | |
| Class A Shares | | | $ | 9.08 | |
| | | | | | |
Maximum Sales Charge: | | | | | |
| Class A Shares | | | | 5.75 | % |
| | | | | | |
| | |
| (a) | | For Class C, the redemption price per share is reduced by 1.00% for shares held less than one year. |
| |
| (b) | | The NAV reported above represents the traded NAV at October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
Annual Report 143
Statement of Operations
For the Year Ended October 31, 2008
| | | | | | |
| | | | | |
| | | | Nationwide
| |
| | | | Retirement Income
| |
| | | Fund | |
| | | | |
INVESTMENT INCOME: | | | | | |
| Dividend income from affiliates | | | $ | 34,273 | |
| Dividend income | | | | 100,566 | |
| Interest income | | | | 22 | |
| | | | | | |
| Total Income | | | | 134,861 | |
| | | | | | |
Expenses: | | | | | |
| Investment advisory fees | | | | 13,187 | |
| Distribution fees Class A | | | | 38 | |
| Distribution fees Class C | | | | 11 | |
| Distribution fees Class R1 | | | | 3,332 | |
| Distribution fees Class R2 | | | | 5,344 | |
| Administrative servicing fees Class A | | | | 39 | |
| Administrative servicing fees Class R1 | | | | 1,331 | |
| Administrative servicing fees Class R2 | | | | 1,002 | |
| Administrative servicing fees Institutional Service Class | | | | 1,355 | |
| | | | | | |
| Total expenses before reimbursed/waived expenses | | | | 25,639 | |
| | | | | | |
| Investment advisory fees voluntarily waived | | | | (2,883 | ) |
| | | | | | |
| Net Expenses | | | | 22,756 | |
| | | | | | |
Net Investment Income | | | | 112,105 | |
| | | | | | |
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | | | | | |
| Net realized gain distributions from underlying affiliated funds | | | | 5,411 | |
| Net realized gain distributions from underlying non-affiliated funds | | | | 525 | |
| Net realized gains from investment transactions with affiliates | | | | 74,648 | |
| Net realized losses from investment transactions with non-affiliates | | | | (171,260 | ) |
| | | | | | |
| Net realized losses from affiliated and non-affiliated investments | | | | (90,676 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | | | | (488,532 | ) |
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | | | | (464,593 | ) |
| | | | | | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (953,125 | ) |
| | | | | | |
| Net realized/unrealized losses from affiliated and non-affiliated investments | | | | (1,043,801 | ) |
| | | | | | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | | | $ | (931,696 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
144 Annual Report
Statements of Changes in Net Assets
| | | | | | | | | | | |
| | | | Nationwide Retirement Income Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
Operations: | | | | | | | | | | |
| Net investment income | | | $ | 112,105 | | | | $ | 6,577 | |
| Net realized gains (losses) from investment transactions | | | | (90,676 | ) | | | | 527 | |
| Net change in unrealized appreciation/(depreciation) from investments | | | | (953,125 | ) | | | | 30,886 | |
| | | | | | | | | | | |
| Change in net assets resulting from operations | | | | (931,696 | ) | | | | 37,990 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Distributions to Shareholders From: | | | | | | | | | | |
| Net investment income: | | | | | | | | | | |
| Class A | | | | (423 | ) | | | | (3 | ) |
| Class C | | | | (25 | ) | | | | (3 | ) |
| Class R1 | | | | (16,255 | ) | | | | (3 | ) |
| Class R2 | | | | (27,914 | ) | | | | (3 | ) |
| Institutional Service Class | | | | (18,792 | ) | | | | (4 | ) |
| Institutional Class | | | | (35,788 | ) | | | | (3,846 | ) |
| Net realized gains: | | | | | | | | | | |
| Class A | | | | (1 | ) | | | | – | |
| Class C | | | | (1 | ) | | | | – | |
| Class R1 | | | | (1 | ) | | | | – | |
| Class R2 | | | | (57 | ) | | | | – | |
| Institutional Service Class | | | | (1 | ) | | | | – | |
| Institutional Class | | | | (468 | ) | | | | – | |
| | | | | | | | | | | |
| Change in net assets from shareholder distributions | | | | (99,726 | ) | | | | (3,862 | ) |
| | | | | | | | | | | |
| Change in net assets from capital transactions | | | | 5,724,103 | | | | | 1,003,862 | |
| | | | | | | | | | | |
| Change in net assets | | | | 4,692,681 | | | | | 1,037,990 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Assets: | | | | | | | | | | |
| Beginning of period | | | | 1,037,990 | | | | | – | |
| | | | | | | | | | | |
| End of period | | | $ | 5,730,671 | | | | $ | 1,037,990 | |
| | | | | | | | | | | |
| Accumulated undistributed net investment income at end of period | | | $ | 17,243 | | | | $ | 2,719 | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 27,463 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 424 | | | | | 3 | |
| Cost of shares redeemed | | | | (252 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A | | | | 27,635 | | | | | 1,003 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | – | | | | | 1,000 | |
| Dividends reinvested | | | | 26 | | | | | 3 | |
| Cost of shares redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C | | | | 26 | | | | | 1,003 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
Annual Report 145
Statements of Changes in Net Assets (Continued)
| | | | | | | | | | | |
| | | | Nationwide Retirement Income Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
CAPITAL TRANSACTIONS: (continued) | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | $ | 1,984,810 | | | | $ | 1,000 | |
| Dividends reinvested | | | | 16,256 | | | | | 3 | |
| Cost of shares redeemed | | | | (107,470 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R1 | | | | 1,893,596 | | | | | 1,003 | |
| | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 3,831,556 | | | | | 1,000 | |
| Dividends reinvested | | | | 27,971 | | | | | 3 | |
| Cost of shares redeemed | | | | (1,963,981 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class R2 | | | | 1,895,546 | | | | | 1,003 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 2,128,462 | | | | | 1,000 | |
| Dividends reinvested | | | | 18,792 | | | | | 4 | |
| Cost of shares redeemed | | | | (283,066 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class | | | | 1,864,188 | | | | | 1,004 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Proceeds from shares issued | | | | 6,859 | | | | | 995,000 | |
| Dividends reinvested | | | | 36,256 | | | | | 3,846 | |
| Cost of shares redeemed | | | | (3 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Class | | | | 43,112 | | | | | 998,846 | |
| | | | | | | | | | | |
| Change in net assets from capital transactions: | | | $ | 5,724,103 | | | | $ | 1,003,862 | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class A Shares | | | | | | | | | | |
| Issued | | | | 2,745 | | | | | 100 | |
| Reinvested | | | | 43 | | | | | – | |
| Redeemed | | | | (25 | ) | | | | – | |
| | | | | | | | | | | |
| Total Class A Shares | | | | 2,763 | | | | | 100 | |
| | | | | | | | | | | |
Class C Shares | | | | | | | | | | |
| Issued | | | | – | | | | | 100 | |
| Reinvested | | | | 3 | | | | | – | |
| Redeemed | | | | – | | | | | – | |
| | | | | | | | | | | |
| Total Class C Shares | | | | 3 | | | | | 100 | |
| | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | |
| Issued | | | | 199,374 | | | | | 100 | |
| Reinvested | | | | 1,687 | | | | | – | |
| Redeemed | | | | (11,538 | ) | | | | – | |
| | | | | | | | | | | |
| Total R1 Shares | | | | 189,523 | | | | | 100 | |
| | | | | | | | | | | |
| |
| (a) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007.
|
| |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
146 Annual Report
| | | | | | | | | | | |
| | | | Nationwide Retirement Income Fund | |
| | | | | |
| | | | Year Ended
| | | | Period Ended
| |
| | | | October 31, 2008 | | | | October 31, 2007(a) | |
| | | | | | | | | | | |
SHARE TRANSACTIONS: (continued) | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | |
| Issued | | | | 383,608 | | | | | 100 | |
| Reinvested | | | | 2,855 | | | | | – | |
| Redeemed | | | | (201,147 | ) | | | | – | |
| | | | | | | | | | | |
| Total R2 Shares | | | | 185,316 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | |
| Issued | | | | 214,637 | | | | | 100 | |
| Reinvested | | | | 1,939 | | | | | – | |
| Redeemed | | | | (29,012 | ) | | | | – | |
| | | | | | | | | | | |
| Total Institutional Service Class Shares | | | | 187,564 | | | | | 100 | |
| | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | |
| Issued | | | | 769 | | | | | 99,501 | |
| Reinvested | | | | 3,629 | | | | | 380 | |
| | | | | | | | | | | |
| Total Institutional Class Shares | | | | 4,398 | | | | | 99,881 | |
| | | | | | | | | | | |
| Total change in shares: | | | | 569,567 | | | | | 100,381 | |
| | | | | | | | | | | |
| | |
| (a) | | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| |
| - | | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
Annual Report 147
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Retirement Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Operations | | | Distributions | | | | | | | | | Ratios / Supplemental Data | | |
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| | | | | | | | | | Net Realized
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | | | |
| | | | Net Asset | | | | | | and
| | | | | | | | | | | | | | | | | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | | | |
| | | | Value,
| | | | | | Unrealized
| | | | | | | | | | | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | (Prior to
| | | | | |
| | | | Beginning
| | | Net
| | | Gains
| | | Total
| | | Net
| | | Net
| | | | | | Net Asset
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Reimbursements)
| | | | | |
| | | | of | | | Investment
| | | (Losses) from
| | | from
| | | Investment
| | | Realized
| | | Total
| | | Value, End
| | | Total
| | | at End
| | | to Average
| | | to Average
| | | to Average
| | | Portfolio
| | |
| | | | Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Distributions | | | of Period | | | Return (a)(b) | | | of Period | | | Net Assets (c) | | | Net Assets (c) | | | Net Assets (c)(d) | | | Turnover (e) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .33 | | | | 0 | .33 | | | | (1 | .79) | | | | (1 | .46) | | | | (0 | .31) | | | | – | | | | | (0 | .31) | | | $ | 8 | .56 | | | | (14 | .50%) | | | $ | 24,515 | | | | | 0 | .83% | | | | 3 | .30% | | | | 0 | .96% | | | | 74 | .26% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .06 | | | | 0 | .30 | | | | 0 | .36 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .33 | | | | 3 | .64% | | | $ | 1,037 | | | | | 1 | .07% | | | | 3 | .18% | | | | 1 | .79% | | | | 1 | .03% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .32 | | | | 0 | .30 | | | | (1 | .82) | | | | (1 | .52) | | | | (0 | .25) | | | | – | | | | | (0 | .25) | | | $ | 8 | .55 | | | | (15 | .01%) | | | $ | 880 | | | | | 1 | .38% | | | | 2 | .99% | | | | 1 | .41% | | | | 74 | .26% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .30 | | | | 0 | .35 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .32 | | | | 3 | .51% | | | $ | 1,036 | | | | | 1 | .43% | | | | 2 | .59% | | | | 1 | .43% | | | | 1 | .03% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R1 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .32 | | | | 0 | .27 | | | | (1 | .76) | | | | (1 | .49) | | | | (0 | .28) | | | | – | | | | | (0 | .28) | | | $ | 8 | .55 | | | | (14 | .76%) | | | $ | 1,620,940 | | | | | 1 | .24% | | | | 2 | .86% | | | | 1 | .27% | | | | 74 | .26% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .04 | | | | 0 | .30 | | | | 0 | .34 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .32 | | | | 3 | .51% | | | $ | 1,036 | | | | | 1 | .43% | | | | 2 | .59% | | | | 1 | .43% | | | | 1 | .03% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .33 | | | | 0 | .32 | | | | (1 | .80) | | | | (1 | .48) | | | | (0 | .31) | | | | – | | | | | (0 | .31) | | | $ | 8 | .54 | | | | (14 | .67%) | | | $ | 1,583,732 | | | | | 0 | .92% | | | | 3 | .29% | | | | 1 | .02% | | | | 74 | .26% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .05 | | | | 0 | .31 | | | | 0 | .36 | | | | (0 | .03) | | | | – | | | | | (0 | .03) | | | $ | 10 | .33 | | | | 3 | .64% | | | $ | 1,037 | | | | | 1 | .07% | | | | 2 | .95% | | | | 1 | .07% | | | | 1 | .03% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Service Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .33 | | | | 0 | .37 | | | | (1 | .81) | | | | (1 | .44) | | | | (0 | .33) | | | | – | | | | | (0 | .33) | | | $ | 8 | .56 | | | | (14 | .30%) | | | $ | 1,606,839 | | | | | 0 | .59% | | | | 3 | .90% | | | | 0 | .64% | | | | 74 | .26% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .06 | | | | 0 | .31 | | | | 0 | .37 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .33 | | | | 3 | .67% | | | $ | 1,037 | | | | | 0 | .72% | | | | 3 | .31% | | | | 0 | .72% | | | | 1 | .03% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended October 31, 2008 (f) | | | $ | 10 | .34 | | | | 0 | .41 | | | | (1 | .83) | | | | (1 | .42) | | | | (0 | .35) | | | | – | | | | | (0 | .35) | | | $ | 8 | .57 | | | | (14 | .11%) | | | $ | 893,765 | | | | | 0 | .33% | | | | 4 | .07% | | | | 0 | .46% | | | | 74 | .26% | | |
| Period Ended October 31, 2007 (f)(g) | | | $ | 10 | .00 | | | | 0 | .07 | | | | 0 | .31 | | | | 0 | .38 | | | | (0 | .04) | | | | – | | | | | (0 | .04) | | | $ | 10 | .34 | | | | 3 | .79% | | | $ | 1,032,807 | | | | | 0 | .33% | | | | 3 | .74% | | | | 0 | .50% | | | | 1 | .03% | | |
| |
| (a) | Excludes sales charge. |
| |
| (b) | Not annualized for periods less than one year. |
| |
| (c) | Annualized for periods less than one year. |
| |
| (d) | During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
|
| (e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
| (f) | Net investment income (loss) is based on average shares outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
| - | Amounts designated as “-” are zero or have been rounded to zero. |
The accompanying notes are an integral part of these financial statements.
148 Annual Report 2008
Notes to Financial Statements
October 31, 2008
1. Organization
Nationwide Mutual Funds (the “Trust”) is an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust dated October 28, 2004, as amended to date. The Trust, originally created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, was redomesticated as a Delaware statutory trust on February 28, 2005. The redomestication was a change in statutory status and did not affect the operations of the Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2008, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. The Trust operates thirty-six (36) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the ten (10) funds listed below (each, a “Fund”; collectively, the “Funds”):
| | |
| | - | Nationwide Destination 2010 Fund (“Destination 2010”) |
| | - | Nationwide Destination 2015 Fund (“Destination 2015”) |
| | - | Nationwide Destination 2020 Fund (“Destination 2020”) |
| | - | Nationwide Destination 2025 Fund (“Destination 2025”) |
| | - | Nationwide Destination 2030 Fund (“Destination 2030”) |
| | - | Nationwide Destination 2035 Fund (“Destination 2035”) |
| | - | Nationwide Destination 2040 Fund (“Destination 2040”) |
| | - | Nationwide Destination 2045 Fund (“Destination 2045”) |
| | - | Nationwide Destination 2050 Fund (“Destination 2050”) |
| | - | Nationwide Retirement Income Fund (“Retirement Income”) |
Each of the Funds is constructed as a “fund of funds,” which means that each of the Funds pursues its investment objective by allocating its investments primarily among other affiliated and unaffiliated mutual funds (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates and those differences could be material.
Shares of the Underlying Funds in which the Fund invests are valued at their respective net asset values (“NAV“s) as reported by the Underlying Funds. The securities in the Underlying Funds generally are valued as of the close of business of the regular session of trading on the New York Stock Exchange (usually at 4:00 p.m. Eastern time). The Underlying Funds generally value securities and assets at current market value.
| |
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the
2008 Annual Report 149
Notes to Financial Statements (Continued)
October 31, 2008
underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. The Funds may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty. As of October 31, 2008, the Funds did not hold any repurchase agreements.
| |
| (c) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
| |
| (d) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for all Funds. For all Funds, distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary in nature. Permanent differences (i.e., reclassification of market discounts, foreign gain/loss, and paydowns) are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the respective Funds. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, these excesses are reported as distributions of paid-in-capital.
It is the policy of each Fund to qualify or to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
The Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. If a tax position taken by a Fund is not sustained upon examination by a taxing authority, the Fund may incur taxes and penalties related to that position, and those amounts could be material. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable) and an increase in a deferred tax liability (or a reduction in a deferred tax asset). Adoption of FIN 48 was required no later than the last business day of
150 Annual Report 2008
the first financial statement reporting period for fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Accordingly, the Funds were required to implement FIN 48 in their NAV per share calculations on April 30, 2008. Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. Each Fund files U.S. federal income tax returns and, if applicable, returns in various state or foreign jurisdictions in which it invests. Each Fund’s taxable years 2004 to 2008 remain subject to examination by the Internal Revenue Service. The adoption of FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to each Fund’s NAV and financial statements.
| |
| (f) | Allocation of Expenses, Income, and Gains and Losses |
Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the Trust. For each Fund, the method for allocating income, fund level expenses, and realized and unrealized gains or losses is based on the fair value of shares outstanding relative to net assets. Under this method, each class of shares participates based on the total NAV of that class’s shares in proportion to the total net assets of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA” or the “Adviser”) manages the investment of the assets and supervises the daily business affairs of the Funds. NFA is a wholly-owned subsidiary of Nationwide Financial Services, Inc. (“NFS”), whose parent company is Nationwide Corporation. Under the terms of the Investment Advisory Agreement, each Fund pays NFA a unified management fee of 0.33% of the Fund’s average daily net assets. Prior to August 1, 2008, the unified management fee was 0.50%. Out of that fee, NFA pays substantially all of the expenses of managing and operating a Fund except Rule 12b-1 fees, administrative services fees, the cost of investment securities or other investment assets, taxes, interest, brokerage fees, short-sale dividend expenses, the cost of share certificates representing shares of the Trust, compensation and expenses of the non-interested Trustees and counsel to the non-interested Trustees, and expenses incurred by a Fund in connection with any merger or reorganization or any other expenses not incurred in the ordinary course of a Fund’s business.
Prior to August 1, 2008, NFA and the Funds entered into a written contract under which NFA has agreed to waive an amount equal to 0.15% of the amount payable to it as Management Fees at least through February 28, 2009. Effective August 1, 2008, this written contract was terminated.
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Funds’ principal underwriter, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. NFD is a wholly-owned subsidiary of NFS Distributors Inc. (“NFSDI”). These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed 0.25% for Class A shares, 1.00% for Class C shares, 0.65% for Class R1 shares, and 0.50% for Class R2 shares.
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A shares. These fees are deducted from and are not included in proceeds from sales of Class A shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A shares of the Funds. The contingent deferred sales charges (“CDSC”) of 0.50%, if applicable, will be imposed on redemptions of Class A shares made within 18 months of the purchase if no sales charges were paid on the original purchase and a finder’s fee was paid. Class C shares have a CDSC fee of 1% imposed on redemptions of Class C shares of the Funds made within one year of purchase. For the year ended October 31,
2008 Annual Report 151
Notes to Financial Statements (Continued)
October 31, 2008
2008, NFD received commissions of $14,717 from front-end sales charges of Class A shares and from CDSC fees from Class C shares of the Funds, of which $3,911 was re-allowed to affiliated broker-dealers of the Funds.
Under the terms of a Fund Administration and Transfer Agency Agreement, Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFSDI, provides various administrative and accounting services for the Funds, and serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. The Funds do not pay a fee for these services.
NFA and NFM have entered into agreements with Citi Fund Services Ohio, Inc. (“Citi”), pursuant to which Citi provides sub-administration and sub-transfer agency services, respectively, to the Funds.
NFA and Citi have agreed to designate certain sub-transfer agency agreements NFA enters into with respect to the Funds as “Qualifying Sub-TA Agreements.” With respect to Qualifying Sub-TA Agreements, Citi will credit to NFA an amount equal to the lesser of (i) the actual amount NFA is charged by the sub-transfer agent under the applicable Qualifying Sub-TA Agreement or (ii) $10 per investor account; however, the aggregate amount paid with regard to all Qualifying Sub-TA Agreements, regardless of whether option (i) or (ii) applies, shall not exceed $200,000 per annum. Citi will calculate and credit such amounts to NFA’s fees on a monthly basis. All amounts will be credited to each applicable Fund on a monthly basis.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, NFS and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquiries regarding the Funds; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Class R1, Class R2, and Institutional Service Class shares of each of the Funds.
For the year ended October 31, 2008, NFS received the following amounts in administrative services fees from each Fund:
| | | | | | | | | |
| | | Fund | | Amount | | |
| |
| | | Destination 2010 | | $ | 5,807 | | | |
| |
| |
| | | Destination 2015 | | | 11,739 | | | |
| |
| |
| | | Destination 2020 | | | 14,163 | | | |
| |
| |
| | | Destination 2025 | | | 10,783 | | | |
| |
| |
| | | Destination 2030 | | | 12,538 | | | |
| |
| |
| | | Destination 2035 | | | 4,947 | | | |
| |
| |
| | | Destination 2040 | | | 4,116 | | | |
| |
| |
| | | Destination 2045 | | | 1,400 | | | |
| |
| |
| | | Destination 2050 | | | 1,843 | | | |
| |
| |
| | | Retirement Income | | | 2,734 | | | |
| |
| |
152 Annual Report 2008
As of October 31, 2008, the Adviser or affiliates of the Adviser directly held the percentage indicated below of the shares outstanding of the applicable Fund:
| | | | | | | | | |
| | | | | % of Shares
| | |
| | | | | Outstanding
| | |
| | | Fund | | Owned | | |
| |
| | | Destination 2010 | | | 8.97% | | | |
| |
| |
| | | Destination 2015 | | | 3.91% | | | |
| |
| |
| | | Destination 2020 | | | 3.70% | | | |
| |
| |
| | | Destination 2025 | | | 4.08% | | | |
| |
| |
| | | Destination 2030 | | | 4.05% | | | |
| |
| |
| | | Destination 2035 | | | 7.39% | | | |
| |
| |
| | | Destination 2040 | | | 9.73% | | | |
| |
| |
| | | Destination 2045 | | | 21.74% | | | |
| |
| |
| | | Destination 2050 | | | 19.60% | | | |
| |
| |
| | | Retirement Income | | | 15.56% | | | |
| |
| |
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, by and among NFA, the Audit Committee of the Board of Trustees and the Trust, the Board of Trustees has agreed to reimburse NFA for certain costs related to the Funds’ portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the year ended October 31, 2008, the Funds’ portion of such costs amounted to $0.
4. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Funds’ custodian bank, permitting the Trust to borrow up to $100,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. The interest costs, if any, would be shown on the Statement of Operations. No compensating balances are required under the terms of the line of credit. The line of credit is renewed annually, expiring on July 23, 2009, with a commitment fee of 0.07% per year on $100,000,000. There are three (3) other lenders participating in this arrangement. Advances taken by the Funds under this arrangement would be primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. There were no borrowings under this line of credit during the year ended October 31, 2008.
The Trust’s custodian bank has agreed to reduce the bank’s fees (earnings credits) when the Funds of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those funds that use DDAs based on the number of open shareholder accounts in each Fund. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for the funds that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
2008 Annual Report 153
Notes to Financial Statements (Continued)
October 31, 2008
5. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2008, were as follows:
| | | | | | | | | | | | | |
| | | Fund | | Purchases | | Sales | | |
| |
| | | Destination 2010 | | $ | 11,826,953 | | | $ | 2,020,050 | | | |
| |
| |
| | | Destination 2015 | | | 26,776,046 | | | | 2,668,765 | | | |
| |
| |
| | | Destination 2020 | | | 26,982,599 | | | | 1,785,345 | | | |
| |
| |
| | | Destination 2025 | | | 24,320,477 | | | | 2,054,067 | | | |
| |
| |
| | | Destination 2030 | | | 23,913,934 | | | | 1,758,303 | | | |
| |
| |
| | | Destination 2035 | | | 13,568,008 | | | | 1,969,810 | | | |
| |
| |
| | | Destination 2040 | | | 9,293,300 | | | | 901,072 | | | |
| |
| |
| | | Destination 2045 | | | 3,635,437 | | | | 398,523 | | | |
| |
| |
| | | Destination 2050 | | | 4,369,557 | | | | 747,138 | | | |
| |
| |
| | | Retirement Income | | $ | 8,062,115 | | | $ | 2,330,820 | | | |
| |
| |
6. Indemnifications
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered into Indemnification Agreements with its Trustees and certain of its Officers. Trust Officers receive no compensation from the Trust for serving as its Officers. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum liability under these arrangements is unknown, as this would involve future claims that may be made against the Trust. Based on experience however, the Trust expects that risk of loss to be remote.
7. New Accounting Pronouncements
In September 2006, the FASB issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current accounting principles generally accepted in the United States of America from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of October 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about each Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on each Fund’s financial statements and related disclosures.
In September 2008, FASB Staff Position FAS 133-1 and FIN 45-4, “Disclosures about Credit Derivates and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (the “Amendment”) was issued and is effective for annual and
154 Annual Report 2008
interim reporting periods ending after November 15, 2008. The Amendment requires enhanced disclosures regarding a fund’s credit derivatives holdings and hybrid financial instruments containing embedded credit derivatives. Management is currently evaluating what impact the adoption of the Amendment will have on each Fund’s financial statement disclosure.
8. Other
At October 31, 2008, the Funds had individual shareholder accounts and/or omnibus shareholder accounts (comprised of a group of individual shareholders), which amounted to more than 10% of the total shares outstanding of the Funds as detailed below.
| | | | | | | | | | | | | |
| | | Fund | | % of Shares | | Number of Accounts | | |
| |
| | | Destination 2010 | | | 91% | | | | 1 | | | |
| |
| |
| | | Destination 2015 | | | 95% | | | | 2 | | | |
| |
| |
| | | Destination 2020 | | | 95% | | | | 2 | | | |
| |
| |
| | | Destination 2025 | | | 94% | | | | 2 | | | |
| |
| |
| | | Destination 2030 | | | 95% | | | | 2 | | | |
| |
| |
| | | Destination 2035 | | | 91% | | | | 2 | | | |
| |
| |
| | | Destination 2040 | | | 79% | | | | 1 | | | |
| |
| |
| | | Destination 2045 | | | 92% | | | | 2 | | | |
| |
| |
| | | Destination 2050 | | | 89% | | | | 2 | | | |
| |
| |
| | | Retirement Income | | | 100% | | | | 3 | | | |
| |
| |
Recent events in the financial sector have resulted in an unusually high degree of volatility in the financial markets and the NAV of many mutual funds, including these Funds. Such events during this period have included, but are not limited to, the seizure of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation by U.S. banking regulators, the bankruptcy filing of Lehman Brothers and sale of Merrill Lynch to Bank of America, and the government bailout of AIG. These companies represent financial institutions with which certain of the Funds conduct business and/or whose securities are or may be held by the Funds. The potential investment of each Fund’s investments in these issuers, and the financial sector in general, as reflected in each Fund’s schedule of investments, may expose investors to the negative (or positive) performance resulting from these and other events. U.S. Government Agency securities and collateral received by the Funds under various arrangements may include bonds issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
9. Federal Tax Information
The tax character of distributions paid during the fiscal year ended October 31, 2008, was as follows: (Total distributions paid may differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Destination 2010 | | $ | 113,194 | | | $ | — | | | $ | 113,194 | | | $ | — | | | $ | 113,194 | | | |
| |
| |
| Destination 2015 | | | 217,190 | | | | — | | | | 217,190 | | | | — | | | | 217,190 | | | |
| |
| |
| Destination 2020 | | | 228,309 | | | | — | | | | 228,309 | | | | — | | | | 228,309 | | | |
| |
| |
| Destination 2025 | | | 187,152 | | | | — | | | | 187,152 | | | | — | | | | 187,152 | | | |
| |
| |
2008 Annual Report 155
Notes to Financial Statements (Continued)
October 31, 2008
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Destination 2030 | | $ | 170,026 | | | $ | — | | | $ | 170,026 | | | $ | — | | | $ | 170,026 | | | |
| |
| |
| Destination 2035 | | | 91,954 | | | | — | | | | 91,954 | | | | — | | | | 91,954 | | | |
| |
| |
| Destination 2040 | | | 66,360 | | | | — | | | | 66,360 | | | | — | | | | 66,360 | | | |
| |
| |
| Destination 2045 | | | 36,081 | | | | — | | | | 36,081 | | | | — | | | | 36,081 | | | |
| |
| |
| Destination 2050 | | | 45,672 | | | | — | | | | 45,672 | | | | — | | | | 45,672 | | | |
| |
| |
| Retirement Income | | | 99,726 | | | | — | | | | 99,726 | | | | — | | | | 99,726 | | | |
| |
| |
The tax character of distributions paid during the fiscal year ended October 31, 2007, was as follows: (Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Distributions paid from
| | | | | | | | |
| | | | | Net
| | Total
| | Tax
| | Total
| | |
| | | Ordinary
| | Long-Term
| | Taxable
| | Exempt
| | Distributions
| | |
| Fund | | Income | | Capital Gains | | Distributions | | Distributions | | Paid | | |
| |
| Destination 2010 | | $ | 3,792 | | | $ | — | | | $ | 3,792 | | | $ | — | | | $ | 3,792 | | | |
| |
| |
| Destination 2015 | | | 3,827 | | | | — | | | | 3,827 | | | | — | | | | 3,827 | | | |
| |
| |
| Destination 2020 | | | 3,883 | | | | — | | | | 3,883 | | | | — | | | | 3,883 | | | |
| |
| |
| Destination 2025 | | | 3,850 | | | | — | | | | 3,850 | | | | — | | | | 3,850 | | | |
| |
| |
| Destination 2030 | | | 3,804 | | | | — | | | | 3,804 | | | | — | | | | 3,804 | | | |
| |
| |
| Destination 2035 | | | 3,866 | | | | — | | | | 3,866 | | | | — | | | | 3,866 | | | |
| |
| |
| Destination 2040 | | | 3,875 | | | | — | | | | 3,875 | | | | — | | | | 3,875 | | | |
| |
| |
| Destination 2045 | | | 3,927 | | | | — | | | | 3,927 | | | | — | | | | 3,927 | | | |
| |
| |
| Destination 2050 | | | 3,890 | | | | — | | | | 3,890 | | | | — | | | | 3,890 | | | |
| |
| |
| Retirement Income | | | 3,862 | | | | — | | | | 3,862 | | | | — | | | | 3,862 | | | |
| |
| |
As of October 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows: (Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Total
| | | | | | | | |
| | | Undistributed
| | Undistributed
| | | | Unrealized
| | Accumulated
| | | | | | | | |
| | | Ordinary
| | Long-Term
| | Accumulated
| | Appreciation
| | Earnings
| | | | | | | | |
| Fund | | Income | | Capital Gains | | Earnings | | (Depreciation)* | | (Deficit) | | | | | | | | |
| |
| Destination 2010 | | $ | 47,400 | | | $ | 12,971 | | | $ | 60,371 | | | $ | (2,138,368) | | | $ | (2,077,997) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2015 | | | 58,554 | | | | 17,008 | | | | 75,562 | | | | (5,313,193) | | | | (5,237,631) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2020 | | | 42,916 | | | | 20,747 | | | | 63,663 | | | | (5,794,943) | | | | (5,731,280) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2025 | | | 48,003 | | | | 31,495 | | | | 79,498 | | | | (5,323,872) | | | | (5,244,374) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2030 | | | 46,028 | | | | 32,844 | | | | 78,872 | | | | (5,775,163) | | | | (5,696,291) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2035 | | | 32,617 | | | | 14,139 | | | | 46,756 | | | | (3,294,769) | | | | (3,248,013) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2040 | | | 13,766 | | | | 18,485 | | | | 32,251 | | | | (2,415,326) | | | | (2,383,075) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2045 | | | 13,762 | | | | 19,103 | | | | 32,865 | | | | (1,204,311) | | | | (1,171,446) | | | | | | | | | | | | | | | |
| |
| |
| Destination 2050 | | | 14,192 | | | | 10,012 | | | | 24,204 | | | | (1,321,083) | | | | (1,296,879) | | | | | | | | | | | | | | | |
| |
| |
156 Annual Report 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Total
| | | | | | | | |
| | | Undistributed
| | Undistributed
| | | | Unrealized
| | Accumulated
| | | | | | | | |
| | | Ordinary
| | Long-Term
| | Accumulated
| | Appreciation
| | Earnings
| | | | | | | | |
| Fund | | Income | | Capital Gains | | Earnings | | (Depreciation)* | | (Deficit) | | | | | | | | |
| |
| Retirement Income | | $ | 48,670 | | | $ | 4,339 | | | $ | 53,009 | | | $ | (1,050,281) | | | $ | (997,272) | | | | | | | | | | | | | | | |
| |
| |
| | |
| * | | The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. |
As of October 31, 2008, the tax cost of securities and the breakdown of unrealized appreciation / (depreciation) for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net Unrealized
| | |
| | | Tax Cost
| | Unrealized
| | Unrealized
| | Appreciation
| | |
| Fund | | of Securities | | Appreciation | | Depreciation | | (Depreciation) | | |
| |
| Destination 2010 | | $ | 10,939,632 | | | $ | — | | | $ | (2,138,368) | | | $ | (2,138,368) | | | |
| |
| |
| Destination 2015 | | | 25,142,304 | | | | — | | | | (5,313,193) | | | | (5,313,193) | | | |
| |
| |
| Destination 2020 | | | 26,279,279 | | | | — | | | | (5,794,943) | | | | (5,794,943) | | | |
| |
| |
| Destination 2025 | | | 23,314,309 | | | | — | | | | (5,323,872) | | | | (5,323,872) | | | |
| |
| |
| Destination 2030 | | | 23,320,510 | | | | — | | | | (5,775,163) | | | | (5,775,163) | | | |
| |
| |
| Destination 2035 | | | 12,657,624 | | | | — | | | | (3,294,769) | | | | (3,294,769) | | | |
| |
| |
| Destination 2040 | | | 9,414,256 | | | | — | | | | (2,415,326) | | | | (2,415,326) | | | |
| |
| |
| Destination 2045 | | | 4,259,757 | | | | — | | | | (1,204,311) | | | | (1,204,311) | | | |
| |
| |
| Destination 2050 | | | 4,708,100 | | | | — | | | | (1,321,083) | | | | (1,321,083) | | | |
| |
| |
| Retirement Income | | | 6,768,691 | | | | — | | | | (1,050,281) | | | | (1,050,281) | | | |
| |
| |
As of October 31, 2008, for Federal income tax purposes, the Funds did not have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the treasury regulations.
2008 Annual Report 157
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nationwide Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nationwide Destination 2010 Fund, Nationwide Destination 2015 Fund, Nationwide Destination 2020 Fund, Nationwide Destination 2025 Fund, Nationwide Destination 2030 Fund, Nationwide Destination 2035 Fund, Nationwide Destination 2040 Fund, Nationwide Destination 2045 Fund, Nationwide Destination 2050 Fund and Nationwide Retirement Income Fund (ten series of Nationwide Mutual Funds, hereafter referred to as the “Funds”) at October 31, 2008, the results of each of their operations for the year then ended and the changes in each of their net assets and the financial highlights for the year then ended and for the period August 30, 2007 (commencement of operations) through October 31, 2007, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States.) Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the underlying funds’ transfer agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2008
158 Annual Report 2008
Supplemental Information
(Unaudited)
1) Other Federal Tax Information
For the year ended October 31, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.
For the year ended October 31, 2008, the following Funds paid qualified dividend income:
| | | | | | | | | |
| | | | | Qualified
| | |
| | | | | Dividend
| | |
| | | Fund | | Income | | |
| |
| | | Destination 2010 | | $ | 25,418 | | | |
| |
| |
| | | Destination 2015 | | | 63,750 | | | |
| |
| |
| | | Destination 2020 | | | 83,346 | | | |
| |
| |
| | | Destination 2025 | | | 76,706 | | | |
| |
| |
| | | Destination 2030 | | | 82,383 | | | |
| |
| |
| | | Destination 2035 | | | 45,017 | | | |
| |
| |
| | | Destination 2040 | | | 37,971 | | | |
| |
| |
| | | Destination 2045 | | | 17,903 | | | |
| |
| |
| | | Destination 2050 | | | 18,848 | | | |
| |
| |
| | | Retirement Income | | | 9,303 | | | |
| |
| |
For the taxable year ended October 31, 2008, the following percentage of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
| | | | | | | | | |
| | | | | Dividends
| | |
| | | | | Received
| | |
| | | Fund | | Deduction | | |
| |
| | | Destination 2010 | | | 17% | | | |
| |
| |
| | | Destination 2015 | | | 21% | | | |
| |
| |
| | | Destination 2020 | | | 25% | | | |
| |
| |
| | | Destination 2025 | | | 29% | | | |
| |
| |
| | | Destination 2030 | | | 33% | | | |
| |
| |
| | | Destination 2035 | | | 32% | | | |
| |
| |
| | | Destination 2040 | | | 37% | | | |
| |
| |
| | | Destination 2045 | | | 32% | | | |
| |
| |
| | | Destination 2050 | | | 25% | | | |
| |
| |
| | | Retirement Income | | | 9% | | | |
| |
| |
2008 Annual Report 159
Management Information
(Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
| |
| |
Charles E. Allen
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
since
July 2000 | | | Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management). | | | | 94 | | | | None |
| |
| |
Paula H.J. Cholmondeley
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
Since
July 2000 | | | Ms. Cholmondeley has served as Chief Executive Officer of Sorrel Group (management consulting group) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | | | | 94 | | | | Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology, Inc. (specialty chemicals) |
| |
| |
C. Brent DeVore3
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1940 | | | Trustee
since 1990 | | | Dr. DeVore is President of Otterbein College. | | | | 94 | | | | None |
| |
| |
Phyllis Kay Dryden
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1947 | | | Trustee
since
December 2004 | | | Ms. Dryden was a partner of Mitchell Madison Group LLC, a management consulting company from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | | | | 94 | | | | None |
| |
| |
Barbara L. Hennigar
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1935 | | | Trustee
Since
July 2000 | | | Retired. Ms. Hennigar was Executive Vice President of Oppenheimer Funds (an asset management company) from October 1992 until June 2000 and Chairman of Oppenheimer Funds Services from October 1999 to June 2000 and President & CEO from June 1992 to October 1999. | | | | 94 | | | | None |
| |
| |
Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | |
| | | | with the Trust
| | | | | | Complex
| | | Other
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Directorships
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Held by Trustee2 |
Barbara I. Jacobs
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Trustee
since
December 2004 | | | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 – 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association — College Retirement Equities Fund). | | | | 94 | | | | None |
| |
| |
Douglas F. Kridler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Trustee
since
September 1997 | | | Mr. Kridler has been a Board Member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of the Columbus Foundation (a Columbus, Ohio-based foundation which manages over 1,300 individual endowment funds) since February 2002. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts; Chairman of the Greater Columbus Convention and Visitors Bureau; and Board Member of Columbus Downtown Development Corporation. | | | | 94 | | | | None |
| |
| |
David C. Wetmore
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1948 | | | Trustee
Since
1995 and
Chairman
Since
February 2005 | | | Retired. Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology orientated investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr Wetmore served as the COO, CEO and Chairman of the board of several publicly-held software and services companies and as the managing partner of a “big 8” public accounting firm. | | | | 94 | | | | None |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 3 | | Mr. DeVore has served as President of Otterbein College since 1984. Mark Thresher, President and Chief Operating Officer of Nationwide Financial Services, Inc. (“NFS”) has served as a member of the Board of Trustees of Otterbein College since 2000, currently serving as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Funds’ investment adviser, and Nationwide Fund Distributors LLC (“NFD”), principal underwriter to the Trust, are wholly-owned subsidiaries of NFS. Mr. DeVore has announced his intention to retire as President of Otterbein College at the end of the 2008-2009 school year. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
| |
| |
Arden L. Shisler
c/o Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1941 | | | Trustee
Since February 20004 | | | Retired. Mr. Shisler is the former President and Chief Executive Officer of KeB Transport, Inc., a trucking firm (2000 through 2002). He served as a consultant to KeB from January 2003 through December 2004. Since 1992, Mr. Shisler has also been Chairman of the Board for Nationwide Mutual Insurance Company.2 | | | | 94 | | | | Director of Nationwide Financial Services, Inc., Chairman of Nationwide Mutual Insurance Company2 |
| |
| |
Michael S. Spangler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1966 | | | President and Chief
Executive Officer since June 20085 | | | Mr. Spangler is the President and Chief Executive Officer of Nationwide Funds Group, which includes NFA,2 Nationwide Fund Management LLC 2 and Nationwide Fund Distributors LLC 2, and is a Senior Vice President of Nationwide Financial Services, Inc.2 From May 2004 until May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. He was President of Touchstone Advisors, Inc., and Vice President and Director of Touchstone Investments Business Operations from July 2002 until May 2004. | | | | N/A | | | | N/A |
| |
| |
Stephen T. Grugeon
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Executive Vice President
and Chief Operating
Officer since June 20086 | | | Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. 2 Mr. Grugeon is also President of NWD Investments, which represents certain asset management operations of Nationwide Mutual Insurance Company and includes Nationwide SA Capital Trust. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006, and Chief Operating Officer of Corviant Corporation, a subsidiary of NWD Investments, from 1999 through 2003.2 | | | | N/A | | | | N/A |
| |
| |
Joseph Finelli
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1957 | | | Treasurer
Since
September 2007 | | | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting and Operations for Nationwide Funds Group.2 From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Dorothy Sanders
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1955 | | | Chief Compliance
Officer
since
October 2007 | | | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). From 2000 to November 2004, she was Vice President, Secretary and General Counsel of Fred Alger & Company, Incorporated. | | | | N/A | | | | N/A |
| |
| |
Eric E. Miller
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1953 | | | Secretary
Since
December 2002 | | | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments.2 | | | | N/A | | | | N/A |
| |
| |
Doff Meyer
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1950 | | | Vice President
and
Chief Marketing
Officer
since
January 2008 | | | Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007). 2 From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. From January 2003 until September 2004, Ms. Meyer was an independent marketing consultant. | | | | N/A | | | | N/A |
| |
| |
Management Information (Continued)
(Unaudited)
Trustees who are Interested Persons (as defined in the 1940 Act) and/or Officers of the Trust (Continued)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Number of
| | | |
| | | | | | | | | | Portfolios in the
| | | |
| | | | Position(s) Held
| | | | | | Nationwide Fund
| | | Other
|
| | | | with the Trust
| | | | | | Complex
| | | Directorships
|
Name, Address
| | | and Length of
| | | Principal Occupation(s)
| | | Overseen
| | | Held by
|
| and Year of Birth | | | Time Served1 | | | During Past Five Years | | | by Trustee | | | Trustee3 |
Michael Butler
Nationwide Funds Group
1200 River Road, Suite 1000
Conshohocken, PA 19428
1959 | | | Vice President
and Chief Distribution
Officer
since
January 2008 | | | Mr. Butler is Chief Distribution Officer of Nationwide Funds Group (since May 2007) and President of Nationwide Fund Distributors LLC (since January 2008). 2 From January 2006 through April 2007, Mr. Butler was Vice President – Mutual Fund Strategy of Nationwide Financial Services, Inc.2 and was Senior Vice President – Retirement Plan Sales of NFS Distributors, Inc.2 from 2000 until January 2006. | | | | N/A | | | | N/A |
| |
| | |
| 1 | | Length of time served includes time served with the Trust’s predecessors. |
| 2 | | This position is held with an affiliated person or principal underwriter of the Trust. |
| 3 | | Directorships held in (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
| 4 | | Mr. Shisler resigned as a Trustee of the Trust effective September 19, 2008. |
| 5 | | Prior to June 30, 2008, Mr. Grugeon served as the Trust’s acting President and Chief Executive Officer. Prior to February 2008, Mr. John H. Grady was the President and Chief Executive Officer. |
| 6 | | From February 2008 through June 2008, Mr. Grugeon also served as acting President and Chief Executive Officer of Nationwide Mutual Funds, Nationwide Variable Insurance Trust and Nationwide Funds Group. |
| |
| | Additional information regarding the Trustees and Officers may be found in the Trust’s Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920. |
Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Funds’ website at www.nationwidefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
1200 River Road, Suite 1000
Conshohocken, PA 19428
nationwidefunds.com
Nationwide, the Nationwide Framemark, Nationwide Funds and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds Group is a service mark of Nationwide Mutual Insurance Company
©2008 Nationwide Funds Group.
All rights reserved.
AR-TD 12/08
Item 2. Code of Ethics.
Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why the registrant has not done so.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (said code of ethics hereinafter referred to as the “Code of Ethics”). This Code of Ethics is included as Exhibit 12 (a)(1).
The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 11(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.
During the twelve-month period prior to the period covered by this report, the registrant’s Code of Ethics: (i) was amended, effective as of May 1, 2007, to reflect the “rebranding” change in the registrant’s name and in the names of certain affiliated service providers from a “Gartmore” brand name to a “Nationwide” brand name; and (ii) was revised, effective as of October 1, 2007, to reflect the changes in the “Covered Officers” under the Code of Ethics.
During the period covered by the report, with respect to the registrant’s Code of Ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, except as noted hereinbelow, there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the Code of Ethics definition enumerated in paragraph (b) of this Item 2.
During the period covered by the report, the registrant’s Code of Ethics: (1) was further revised, effective as of July 1, 2008, and as of November 1, 2008, to reflect the changes in the “Covered Officers” under the Code of Ethics (these revisions are not deemed to be material changes to the registrant’s Code of Ethics); and (2) was further amended, effective as of December 3, 2008, to clarify: (i) the role, responsibilities, and duties of “Covered Officers” and “Designated Persons” under the Code of Ethics; (ii) certain general principles and guiding principles set forth under the Code of Ethics; (iii) those conflict-of-interest situations that always should be discussed by a “Covered Officer” with an appropriate “Designated Person;” and (iv) the disclosure obligations of “Covered Officers.”
3
Item 3. Audit Committee Financial Expert.
| (a) | (1) | Disclose that the registrant’s board of directors has determined that the registrant either: |
| | (i) | | Has at least one audit committee financial expert serving on its audit committee; or |
| |
| | (ii) | | Does not have an audit committee financial expert serving on its audit committee. |
| | | (2) | If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is “independent.” In order to be considered “independent” for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: |
| | (i) | | Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or |
| |
| | (ii) | | Be an “interested person” of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. § 80a-2(a)(19)). |
| | | (3) | If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, the registrant must explain why the registrant does not have an audit committee financial expert. |
| | 3(a)(1) | | The registrant’s board of trustees has determined that the registrant has at least one audit committee financial expert serving on board’s audit committee. |
| |
| | 3(a)(2) | | The audit committee financial expert of the registrant’s board of trustees is Charles E. Allen, who, for purposes of this Item 3 of Form N-CSR, is an “independent” trustee of the registrant. |
Item 4. Principal Accountant Fees and Services.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
4
4(a) through 4(d): The information in the table below is provided for services rendered to the registrant by the registrant’s principal accountant, PricewaterhouseCoopers LLP (“PwC”), for the registrant’s fiscal years ended October 31, 2007, and October 31, 2008.
| | | | | | | | | |
| | | 2007 | | 2008 |
Audit Fees | | $ | 651,713 | | | $ | 467,580 | |
Audit-Related Fees | | $ | 14,000 | 1 | | $ | 0 | |
Tax Fees | | $ | 183,919 | 2 | | $ | 135,420 | |
All Other Fees | | $ | 0 | | | $ | 0 | |
| | | | | | | | | |
Total | | $ | 852,632 | | | $ | 603,000 | |
| | |
| 1 | | Includes fees related to the Financial Accounting Standards Board’s FIN 48, Accounting for Uncertainty in Income Taxes. |
| |
| 2 | | Relates to consents provided for registration statements. |
The information in the table below is provided with respect to non-audit services that directly relate to the registrant’s operations and financial reporting and that were rendered by PwC to the registrant’s investment adviser, Nationwide Fund Advisors (“NFA”), and any service provider to the registrant controlling, controlled by, or under common control with NFA that provided ongoing services to the registrant (hereinafter referred to collectively as the “Covered Services Provider”), for the registrant’s fiscal years ended October 31, 2007, and October 31, 2008.
| | | | | | | | | |
| | | 2007 | | 2008 |
Audit-Related Fees | | None | | None |
Tax Fees | | $ | 15,000 | 1 | | $ | 48,880 | 2 |
All Other Fees | | None | | None |
| | | | | | | | | |
Total | | $ | 15,000 | 1 | | $ | 48,880 | 2 |
| | |
| 1 | | Relates to expatriate tax compliance and advisory services to NWD Investments, Inc., for employees on international assignment including local tax return preparation in overseas locations. |
| |
| 2 | | Relates to tax fees in connection with the review of distributions for twenty-six funds of the registrant that merged into Aberdeen Funds in June 2008. |
(e) (1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
4(e)(1) Pre-Approval Policies and Procedures. The Audit Committee (the “Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the principal accountant to the registrant and (ii) all permissible non-audit services to be provided by the principal accountant to NFA and any Covered Services Provider if the engagement relates directly to the operations and financial reporting of the registrant. The Committee may delegate the Committee’s responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson shall report to the Committee, at the Committee’s next regularly-scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s).
5
The Committee also may establish detailed pre-approval policies and procedures for pre-approval of these services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to other persons (other than NFA or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services shall not be required so long as: (i) the aggregate amount of all said permissible non-audit services provided to the registrant, NFA, and any Covered Services Provider constitutes not more than five percent (5%) of the total amount of revenues paid by the registrant to the registrant’s principal accountant during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (iii) these services are promptly brought to the attention of the Committee and approved by the Committee (or the Committee’s delegate(s)) prior to the completion of the audit.
4(e)(2) The information in the table below sets forth the percentages of fees for services (other than audit, review, or attest services) rendered by PwC to the registrant for which the pre-approval requirement was waived pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X, for the registrant’s fiscal years ended October 31, 2007, and October 31, 2008:
| | | | | | | | | |
| | | 2007 | | 2008 |
Audit-Related Fees | | None | | None |
Tax Fees | | None | | None |
All Other Fees | | None | | None |
| | | | | | | | | |
Total | | None | | None |
The information in the table below sets forth the percentages of fees for services (other than audit, review, or attest services) rendered by PwC to NFA and any Covered Services Provider required to be approved pursuant to Rule 2-01(c)(7)(ii)of Regulation S-X, for the registrant’s fiscal years ended October 31, 2007, and October 31, 2008:
| | | | | | | | | |
| | | 2007 | | 2008 |
Audit-Related Fees | | | N/A | | | | N/A | |
Tax Fees | | | N/A | | | | N/A | |
All Other Fees | | | N/A | | | | N/A | |
| | | | | | | | | |
Total | | | N/A | | | | N/A | |
(f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
4(f) Not Applicable: The percentage of hours expended to audit the registrant’s financial statements for the fiscal-year ended October 31, 2008, that were attributed to work performed by persons other than PwC’s full-time, permanent employees was not over fifty percent (50%).
(g) Disclose the aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.
4(g) The aggregate fees billed by PwC for non-audit services rendered to the registrant and service affiliates for the fiscal-years ended October 31, 2007, and October 31, 2008, were $0 and $0, respectively.
6
(h) Disclose whether the registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
4(h) The registrant’s Audit Committee has considered whether the provision by PwC of non-audit services to NFA and Covered Services Providers, that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X because these services did not directly relate to the registrant’s operations and financial reporting, is compatible with maintaining PwC’s independence.
Item 5. Audit Committee of Listed Registrants.
| | (a) | | If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state. |
| |
| | | | Not Applicable: The registrant is not a listed issuer as defined in Rule 10A-3 under the Exchange Act. |
| |
| | (b) | | If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17CFR 240.10A-3(d)) regarding an exemption from the listing standards for all audit committees. |
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| | | | Not Applicable: The registrant is not a listed issuer as defined in Rule 10A-3 under the Exchange Act. |
Item 6. Investments.
| | (a) | | File Schedule I — Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in § 210.1212 of the Regulation S-X [17 CFR 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
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This schedule is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company’s investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. § 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company’s investment adviser, or any other third party, that the company uses, or that are used on the company’s behalf, to determine how to vote proxies relating to portfolio securities.
Not Applicable: The registrant is an open-end management investment company, not a closed-end management investment company.
Item 8. Portfolio Managers of Closed-End Management Investment Company.
If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR, provide the information specified in paragraphs (a) and (b) of this Item with respect to portfolio managers.
Not Applicable: The registrant is an open-end management investment company, not a closed-end management investment company.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
If the registrant is a closed-end management investment company, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR § 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. § 781).
Not Applicable: The registrant is an open-end management investment company, not a closed-end management investment company.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR § 240.14a-101), or this Item.
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The Independent Trustees and the Board of Trustees of the registrant adopted a formal, written “Policy Regarding Shareholder Submission of Trustee Candidates,” as well as a formal, written “Statement of Policy On Criteria For Selecting Trustees,” on June 9, 2005, and June 10, 2005, respectively. Neither this policy nor this statement of policy has been materially changed since the Board of Trustees adoption of the policy and the statement of policy, respectively. The Nominating and Fund Governance Committee of the Board of Trustees (the “NFGC”) and the Board of Trustees, however, on November 11, 2005, and January 12, 2006, respectively, approved amendments to this policy; these amendments to the policy, though, concern the criteria for selecting candidates for Trustees and the characteristics expected of candidates for Trustees, as set forth in the Exhibit A, “Statement of Policy On Criteria For Selecting Trustees,” to the policy and, arguably, may not be deemed to be material changes to the policy.
Item 11. Controls and Procedures.
(a) Disclose the conclusions of the registrant’s principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR § 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR § 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR § 240.13a-15(b) or 240.15d-15(b)).
The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within ninety (90) days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is: (i) accumulated and communicated to the investment company’s management, including the investment company’s certifying officers, to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR § 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.
The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR § 270.30a-2).
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Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR § 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to ten (10) or more persons.
Not Applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant incorporates it by reference.
Certifications pursuant to Rule 30a-2(b) are furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | | | |
| (Registrant) | | NATIONWIDE MUTUAL FUNDS | | |
| | | | | | | |
| By (Signature and Title) | | /s/ JOSEPH FINELLI | | |
| | | | | |
| | | Name: | | Joseph Finelli | | |
| | | Title: | | Principal Financial Officer | | |
| | | Date: | | January 9, 2009 | | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | | | | |
| By (Signature and Title) | | /s/ MICHAEL S. SPANGLER | | |
| | | | | |
| | | Name: | | Michael S. Spangler | | |
| | | Title: | | Principal Executive Officer | | |
| | | Date: | | January 9, 2009 | | |
| | | | | | | |
| By (Signature and Title) | | /s/ JOSEPH FINELLI | | |
| | | | | |
| | | Name: | | Joseph Finelli | | |
| | | Title: | | Principal Financial Officer | | |
| | | Date: | | January 9, 2009 | | |
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