UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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)
(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)
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, 2009
Date of reporting period: November 1, 2008 through April 30, 2009
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.
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).
Nationwide Mutual Funds
SemiannualReport
April 30, 2009 (Unaudited)
Equity Funds
Nationwide International Value Fund
Nationwide Large Cap Value 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
SemiannualReport
April 30, 2009 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Equity Funds | |||
| 5 | Nationwide International Value Fund | ||
| 20 | Nationwide Large Cap Value Fund | ||
| 33 | Nationwide U.S. Small Cap Value Fund | ||
| 54 | Nationwide Value Fund | ||
| 65 | Nationwide Value Opportunities Fund | ||
Fixed-Income Funds | |||
| 79 | Nationwide Bond Fund | ||
| 95 | Nationwide Enhanced Income Fund | ||
| 109 | Nationwide Government Bond Fund | ||
| 124 | Nationwide Short Duration Bond Fund | ||
| 138 | 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
April 30, 2009
Dear Shareholder,
The semiannual reporting period for the Nationwide Mutual Funds (NMF) has encompassed two extremely difficult quarters for stock mutual fund investing. Although the blue-chip indexes, including the Dow Jones Industrial Average (DJIA), sank to 12-year lows on March 9th of this year, the market has shown some signs of cautious rebounding. It may be too early to call this a recovery, but at the start of the second quarter of 2009, stock prices began to show signs of improvement.
Federal Reserve Board Chairman Ben Bernanke has talked about seeing “green shoots” in the financial system in the wake of the central bank’s unprecedented efforts to get credit flowing again. Chairman Bernanke has cited as evidence of economic improvement: the rise in consumer spending in the first quarter of the year; a slow, but steady rate of new and existing home purchases, and a modest revival of the credit markets.
Some of those “shoots” are, indeed, hopeful signs. The recession, however, is not fading as quickly as we all would wish. The much-anticipated government plan to remove toxic assets from banks’ balance sheets, as of this writing, has not been implemented. The results from the government’s stress testing of banks are just being disseminated, and the early news indicates that some banks may require more relief.
In the coming months, investors will be keeping an eye on Washington as much as on Wall Street. The damage to the economy remains severe; the latest government figures suggest that, at best, the pace of the negative news has slowed.
This has been a challenging time in the financial markets. At Nationwide® and Nationwide Funds Groupsm we continue to keep a long-term perspective. We remain committed to the underlying investment principles of our funds.
We thank you for entrusting your assets to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
President
Nationwide Mutual Funds
2009 Semiannual Report 1
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, nationwide.com/mutualfunds.
Small- and mid-sized company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility. A portfolio that targets its investments to companies of different sizes within a broad small-capitalization range 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.
The Nationwide Value Opportunities Fund may invest in real estate investment trusts (REITs) that are more volatile than other types of securities.
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/mutualfunds.
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.
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.
Barclays Capital (BARCAP) 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 or more) that is generally representative of the bond market as a whole.
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: 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. At times, it is possible for the longest T-Bill (and therefore the selected issue) to have slightly longer than one year remaining to maturity. In addition, in the event that the new 1-Year T-Bill has not settled by month-end, the prior T-Bill could be held for a second month and the maturity of the Index could be as short as 10 months at the next rebalancing.
Merrill Lynch (ML) 6-Month Treasury Bill (T-Bill) Index: 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. While the index will often hold the T-Bill issued at the most recent or prior 6-month auction, it is also possible for a seasoned 1-year T-Bill to be selected.
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 Europe, Australasia and Far East (MSCI EAFE®) Index: An
2 Semiannual Report 2009
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.
Morgan Stanley Capital International Emerging Markets (MSCI EMsm) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
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.
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 give 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.
Sales charge and fee information:
| • | Nationwide International Value Fund |
| • | Nationwide Large Cap Value Fund | |
| • | Nationwide U.S. Small Cap Value Fund | |
| • | Nationwide Value Fund | |
| • | 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.
| • | 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.
| • | Nationwide Enhanced Income Fund | |
| • | 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 nationwide.com/mutualfunds. Please read it carefully before investing any money.
The Funds’ adviser, one of its affiliated advisers, 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.
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. Investors’ shares, when redeemed, may be worth more or less than their original cost.
Based in Conshohocken, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors (NAI).
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 a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
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.
2009 Semiannual Report 3
Summary of Market Environment
The following is a summary from Nationwide Funds Group regarding market conditions during the reporting period.
The first half of the reporting period was filled with economic events that have not happened in the United States in more than 50 years, nor, in many cases, since the time of the Great Depression of the late 1920s and 1930s. A rebound in the markets began in mid-March and continued into April, evidence that market observers, as well as investors, are anticipating improvement in the economy during the latter half of 2009 and early 2010. Economic news during the reporting period was mixed, with signs of brightening frequently offset by events that indicated a deepening of the recession.
Some of the negative news included: (1) a 6.1% decrease in the annualized U.S. gross domestic product (GDP) for the first quarter of 2009, as reported by the U.S. Bureau of Economic Analysis; (2) a continuously rising jobless rate, which hit 8.9% in April 2009 according to the Department of Labor (DOL), representing the highest level in the jobless rate since 1983 (as companies continue laying off workers, the unemployment rate well may increase to 10% by the end of 2009); (3) a spate of new questions about the capital positions of some of the largest U.S. financial institutions; (4) persistently-low consumer confidence, resulting in depressed spending levels; and (5) the spreading of residential real estate market troubles to commercial real estate, causing even greater levels of stress in the financial system.
Toward the end of March and into April, some signs emerged that the worst of the economic news might be behind us: (1) indicators pointed to the possibility that price declines in the U.S. housing market were nearing an end; (2) President Obama’s administration announced the “Public-Private Investment Program” (PPIP) to help banks unload some of their illiquid assets; and (3) the U.S. Bureau of Economic Analysis reported in April that personal consumption rose by 2.2% in the first quarter of 2009, an indication that consumer confidence may be strengthening.
A broad look at index performance during the reporting period revealed that mid-capitalization U.S. equities beat their large- and small-cap counterparts by a significant margin. Specifically, large caps, as measured by the Standard & Poor’s 500® (S&P 500) Index, fell 8.5% during the reporting period amid continuing market volatility. Mid-caps, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 0.2%, and small caps, as measured by the Russell 2000® Index, declined 8.4%.
In general, the performance of international stocks experienced a significant upswing during the latter part of the reporting period, outpacing that of U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost 2.4% during the reporting period, despite a gain of more than 7.9% during the latter half of the period. Emerging market stocks, as measured by the MSCI Emerging Markets (MSCI EM) Indexsm, gained more than 16% during the reporting period, including a gain of more than 25% during the last three months of the reporting period.
The reporting period was positive overall for fixed-income investors. The broad-based fixed-income Barclays Capital (BARCAP) U.S. Aggregate Bond Index gained 7.7% during the reporting period.
4 Semiannual Report 2009
Nationwide International Value Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide International Value Fund (Class A at NAV) registered −4.44% versus −2.35% for its benchmark, the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index. For broader comparison, the average return for the Fund’s Lipper peer category of International Large-Cap Value Funds (consisting of 140 funds as of April 30, 2009) was −3.69% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
At the sector level, the Fund’s overweight to the energy, technology and financials sectors contributed to the Fund’s relative returns, as did an underweight to the consumer staples sector. Specific holdings that contributed to Fund performance during the reporting period included financials-sector firm Deutsche Bank AG, technology firms Ericsson Inc. and Sharp Corp., Swedish paper manufacturer Svenska Cellulosa Aktiebolaget SCA, and Nippon Mining Holdings, Inc. Deutsche Bank’s CEO indicated that the bank might return to profitability after a strong start to the year. Ericsson, the Swedish manufacturer of mobile telephonic equipment, gained due to positive momentum after reporting strong earnings in January. Ericsson benefited further from the recent decline in the Swedish krona. Japan-based Sharp fared well after the market reacted positively to signs that the liquid crystal display (LCD) cycle had bottomed and that Sharp had been aggressive in restructuring.
What areas of investment detracted from Fund performance?
The Fund’s overweight to the telecommunications sector and an underweight to the consumer cyclicals sector detracted from the Fund’s relative returns. Specific holdings that detracted from Fund performance included positions in financials-sector firms The Royal Bank of Scotland Group plc (RBS), ORIX Corp., and BNP Paribas. Also detracting from Fund performance were positions in Telefónica S.A. and Compagnie Générale des Établissements Michelin. RBS fell sharply in January after requiring additional capital and as investors questioned the adequacy of the U.K. government’s financial rescue package, fearing that additional capital would be required. We subsequently eliminated the Fund’s position in RBS after a research review concluded that the earnings outlook had worsened, raising the risk of full-scale nationalization. Tire-maker Michelin declined due to lower demand from car and truck makers.
What is your outlook for the near term?
Heightened investor anxiety has created significant market anomalies and a particularly fertile environment for value investing. The most attractive value stocks are now selling at a deep discount to the market, and the value opportunity is remarkably diverse, spanning most sectors. We continue to take advantage of investor overreaction to economic and industrial stresses, using our deep research capabilities to uncover investment opportunities arising from current market volatility. We believe the portfolio is well positioned to be resilient through a potentially-protracted economic downturn and to capture the long-term value opportunity when investor confidence improves and equity markets rebound.
Subadviser:
AllianceBernstein L.P.
Portfolio Managers:
Henry S. D’Auria; Sharon E. Fay; Eric Franco; and
Kevin F. Simms
Henry S. D’Auria; Sharon E. Fay; Eric Franco; and
Kevin F. Simms
2009 Semiannual Report 5
| Fund Performance | Nationwide International Value Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | -4.44% | -50.02% | -42.15% | ||||||||||
| w/SC3 | -9.90% | -52.89% | -44.62% | |||||||||||
| Class C | w/o SC2 | -4.85% | -50.33% | -42.50% | ||||||||||
| w/SC4 | -5.80% | -50.82% | -42.50% | |||||||||||
Institutional Service Class5 | -4.43% | -49.93% | -42.03% | |||||||||||
Institutional Class5 | -4.52% | -49.87% | -41.98% | |||||||||||
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 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. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 1.36% | 1.25% | ||||||||
| Class C | 2.11% | 2.00% | ||||||||
| Institutional Service Class | 1.30% | 1.19% | ||||||||
| Institutional Class | 1.11% | 1.00% | ||||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
6 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide International Value Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 955.56 | 6.20 | 1.28 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.45 | 6.42 | 1.28 | |||||||||||||||
| Class C | Actual | 1,000.00 | 951.52 | 9.73 | 2.01 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.83 | 10.09 | 2.01 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 955.68 | 5.97 | 1.23 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.69 | 6.18 | 1.23 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 954.77 | 4.85 | 1.00 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.84 | 5.02 | 1.00 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. |
2009 Semiannual Report 7
| Portfolio Summary | Nationwide International Value Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 98 | .5% | ||
| Repurchase Agreements | 2 | .2% | ||
| Preferred Stocks | 0 | .0% | ||
| Rights | 0 | .0% | ||
| Liabilities in excess of other assets | (0 | .7)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Commercial Banks | 16 | .2% | ||
| Oil, Gas & Consumable Fuels | 14 | .8% | ||
| Diversified Telecommunication Services | 8 | .4% | ||
| Pharmaceuticals | 7 | .0% | ||
| Insurance | 5 | .7% | ||
| Capital Markets | 3 | .7% | ||
| Wireless Telecommunication Services | 3 | .1% | ||
| Computers & Peripherals | 3 | .0% | ||
| Metals & Mining | 2 | .9% | ||
| Automobiles | 2 | .8% | ||
| Other Industries* | 32 | .4% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Royal Dutch Shell PLC, Class A | 2 | .7% | ||
| Vodafone Group PLC | 2 | .7% | ||
| BP PLC | 2 | .7% | ||
| Total SA | 2 | .3% | ||
| GlaxoSmithKline PLC | 2 | .0% | ||
| Credit Suisse Group AG | 2 | .0% | ||
| Telefonica SA | 1 | .9% | ||
| Sanofi-Aventis SA | 1 | .9% | ||
| E.ON AG | 1 | .9% | ||
| ENI SpA | 1 | .8% | ||
| Other Holdings* | 78 | .1% | ||
| 100 | .0% | |||
| Top Countries | ||||
| United Kingdom | 17 | .7% | ||
| Japan | 14 | .8% | ||
| Germany | 13 | .1% | ||
| France | 12 | .9% | ||
| Canada | 6 | .2% | ||
| Australia | 4 | .6% | ||
| Italy | 4 | .1% | ||
| Sweden | 4 | .0% | ||
| Switzerland | 3 | .7% | ||
| Netherlands | 2 | .7% | ||
| Other Countries* | 16 | .2% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings, industries and countries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
8 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide International Value Fund
| Common Stocks 98.5% | ||||||||
Shares | Market Value | |||||||
AUSTRALIA 4.6% (a) | ||||||||
Airline 0.6% | ||||||||
| Qantas Airways Ltd. | 455,836 | $ | 657,405 | |||||
Commercial Banks 2.1% | ||||||||
| Australia & New Zealand Banking Group Ltd. | 81,700 | 941,860 | ||||||
| Commonwealth Bank of Australia | 30,300 | 773,936 | ||||||
| National Australia Bank Ltd. | 27,100 | 405,149 | ||||||
| 2,120,945 | ||||||||
Containers & Packaging 0.6% | ||||||||
| Amcor Ltd. | 171,020 | 596,879 | ||||||
Metals & Mining 0.5% | ||||||||
| BHP Billiton Ltd. | 23,000 | 555,434 | ||||||
Real Estate Management & Development 0.5% | ||||||||
| Lend Lease Corp. Ltd. | 88,700 | 464,450 | ||||||
Transportation Infrastructure 0.3% | ||||||||
| Macquarie Infrastructure Group | 347,534 | 340,426 | ||||||
| 4,735,539 | ||||||||
BELGIUM 0.6% (a) | ||||||||
Food & Staples Retailing 0.6% | ||||||||
| Delhaize Group | 8,900 | 600,164 | ||||||
BRAZIL 0.4% | ||||||||
Commercial Banks 0.4% | ||||||||
| Itau Unibanco Banco Multiplo SA ADR | 29,613 | 406,580 | ||||||
CANADA 6.2% | ||||||||
Aerospace & Defense 0.5% | ||||||||
| Bombardier, Inc., Class B | 164,400 | 520,898 | ||||||
Auto Components 0.4% | ||||||||
| Magna International, Inc. | 11,900 | 408,670 | ||||||
Commercial Banks 1.0% | ||||||||
| National Bank of Canada | 13,300 | 486,626 | ||||||
| Toronto-Dominion Bank | 14,700 | 580,360 | ||||||
| 1,066,986 | ||||||||
Diversified Telecommunication Services 1.3% | ||||||||
| BCE, Inc. | 37,800 | 808,280 | ||||||
| Telus Corp. | 21,300 | 495,453 | ||||||
| 1,303,733 | ||||||||
Insurance 2.0% | ||||||||
| Fairfax Financial Holdings Ltd. | 2,728 | 721,674 | ||||||
| Industrial Alliance Insurance and Financial Services, Inc. | 22,000 | 441,107 | ||||||
| ING Canada, Inc. | 21,500 | 622,833 | ||||||
| Sun Life Financial, Inc. | 12,500 | 292,330 | ||||||
| 2,077,944 | ||||||||
Oil, Gas & Consumable Fuels 1.0% | ||||||||
| Petro-Canada | 33,600 | 1,060,667 | ||||||
| 6,438,898 | ||||||||
CHINA 1.0% (a) | ||||||||
Diversified Telecommunication Services 0.0% | ||||||||
| China Telecom Corp. Ltd., Class H | 6,000 | 2,954 | ||||||
Metals & Mining 0.3% | ||||||||
| Jiangxi Copper Co. Ltd. | 230,000 | 268,638 | ||||||
Oil, Gas & Consumable Fuels 0.7% | ||||||||
| China Petroleum & Chemical Corp., Class H | 996,000 | 774,159 | ||||||
| 1,045,751 | ||||||||
FINLAND 1.2% (a) | ||||||||
Communications Equipment 1.2% | ||||||||
| Nokia OYJ | 88,800 | 1,261,068 | ||||||
FRANCE 12.9% | ||||||||
Automobiles 1.1% (a) | ||||||||
| Renault SA | 35,100 | 1,125,294 | ||||||
Chemicals 0.3% (a) | ||||||||
| Arkema | 14,300 | 329,793 | ||||||
Commercial Banks 5.0% (a) | ||||||||
| BNP Paribas | 32,660 | 1,719,076 | ||||||
| Credit Agricole SA | 125,050 | 1,828,135 | ||||||
| Societe Generale | 32,235 | 1,647,224 | ||||||
| 5,194,435 | ||||||||
Diversified Telecommunication Services 1.3% (a) | ||||||||
| France Telecom SA | 63,600 | 1,411,698 | ||||||
Media 1.0% (a) | ||||||||
| Lagardere SCA | 32,700 | 1,026,387 | ||||||
Oil, Gas & Consumable Fuels 2.3% (a) | ||||||||
| Total SA | 47,300 | 2,366,318 | ||||||
Pharmaceuticals 1.9% | ||||||||
| Sanofi-Aventis SA | 33,950 | 1,965,805 | ||||||
| 13,419,730 | ||||||||
GERMANY 13.1% | ||||||||
Air Freight & Logistics 0.4% (a) | ||||||||
| Deutsche Post AG | 39,760 | 453,953 | ||||||
Airline 0.5% (a) | ||||||||
| Deutsche Lufthansa AG | 40,100 | 504,054 | ||||||
Capital Markets 1.7% (a) | ||||||||
| Deutsche Bank AG | 32,905 | 1,735,033 | ||||||
Chemicals 1.6% (a) | ||||||||
| BASF SE* | 44,500 | 1,683,172 | ||||||
Diversified Telecommunication Services 1.3% | ||||||||
| Deutsche Telekom AG | 113,300 | 1,382,676 | ||||||
Electric Utility 1.9% (a) | ||||||||
| E.ON AG | 57,960 | 1,945,199 | ||||||
Food Products 0.5% (a) | ||||||||
| Suedzucker AG | 27,000 | 521,069 | ||||||
2009 Semiannual Report 9
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
GERMANY (continued) | ||||||||
Health Care Providers & Services 0.3% (a) | ||||||||
| Celesio AG | 13,700 | $ | 305,972 | |||||
Insurance 3.0% | ||||||||
| Allianz SE | 17,170 | 1,581,579 | ||||||
| Muenchener Rueckversicherungs AG (a) | 11,060 | 1,507,038 | ||||||
| 3,088,617 | ||||||||
Multi-Utility 0.9% (a) | ||||||||
| RWE AG | 13,040 | 939,196 | ||||||
Pharmaceuticals 1.0% (a) | ||||||||
| Bayer AG* | 22,100 | 1,096,609 | ||||||
| 13,655,550 | ||||||||
HONG KONG 0.8% (a) | ||||||||
Diversified Financial Services 0.0% | ||||||||
| Guoco Group Ltd. | 2,000 | 12,287 | ||||||
Real Estate Management & Development 0.1% | ||||||||
| New World Development Ltd. | 113,000 | 147,802 | ||||||
Textiles, Apparel & Luxury Goods 0.7% | ||||||||
| Yue Yuen Industrial Holdings Ltd. | 322,000 | 715,649 | ||||||
| 875,738 | ||||||||
| �� | ||||||||
ISRAEL 0.0% | ||||||||
Wireless Telecommunication Services 0.0% | ||||||||
| Cellcom Israel Ltd. | 200 | 4,358 | ||||||
ITALY 4.1% (a) | ||||||||
Commercial Banks 0.7% | ||||||||
| Intesa Sanpaolo SpA | 243,400 | 775,316 | ||||||
Diversified Telecommunication Services 1.4% | ||||||||
| Telecom Italia SpA | 817,800 | 1,033,942 | ||||||
| Telecom Italia SpA — RSP | 433,300 | 387,034 | ||||||
| 1,420,976 | ||||||||
Multi-Utility 0.2% | ||||||||
| A2A SpA | 155,800 | 256,046 | ||||||
Oil, Gas & Consumable Fuels 1.8% | ||||||||
| ENI SpA | 85,700 | 1,838,758 | ||||||
| 4,291,096 | ||||||||
JAPAN 14.8% (a) | ||||||||
Automobiles 1.7% | ||||||||
| Honda Motor Co. Ltd. | 17,400 | 510,044 | ||||||
| Nissan Motor Co. Ltd. | 233,700 | 1,220,041 | ||||||
| 1,730,085 | ||||||||
Chemicals 0.7% | ||||||||
| Mitsubishi Chemical Holdings Corp. | 199,000 | 758,060 | ||||||
| Tosoh Corp. | 3,000 | 6,892 | ||||||
| 764,952 | ||||||||
Commercial Banks 1.3% | ||||||||
| Mitsubishi UFJ Financial Group, Inc. | 89,300 | 487,218 | ||||||
| Sumitomo Mitsui Financial Group, Inc. | 25,300 | 877,612 | ||||||
| 1,364,830 | ||||||||
Computers & Peripherals 2.3% | ||||||||
| Fujitsu Ltd. | 254,000 | 1,088,348 | ||||||
| Toshiba Corp. | 385,000 | 1,321,443 | ||||||
| 2,409,791 | ||||||||
Diversified Telecommunication Services 1.2% | ||||||||
| Nippon Telegraph & Telephone Corp. | 32,000 | 1,206,021 | ||||||
Electric Utility 0.4% | ||||||||
| Tokyo Electric Power Co., Inc. (The) | 17,900 | 419,402 | ||||||
Electrical Equipment 0.3% | ||||||||
| Furukawa Electric Co. Ltd. | 116,000 | 347,223 | ||||||
Electronic Equipment & Instruments 1.1% | ||||||||
| Hitachi High-Technologies Corp. | 22,200 | 310,771 | ||||||
| Hitachi Ltd. | 226,000 | 789,876 | ||||||
| 1,100,647 | ||||||||
Household Durables 1.3% | ||||||||
| Sharp Corp. | 127,000 | 1,337,548 | ||||||
Leisure Equipment & Products 0.4% | ||||||||
| Namco Bandai Holdings, Inc. | 43,700 | 434,914 | ||||||
Metals & Mining 0.7% | ||||||||
| JFE Holdings, Inc. | 17,000 | 464,418 | ||||||
| Yamato Kogyo Co. Ltd. | 10,800 | 245,361 | ||||||
| 709,779 | ||||||||
Office Electronics 0.3% | ||||||||
| Canon, Inc. | 10,800 | 323,263 | ||||||
Oil, Gas & Consumable Fuels 0.8% | ||||||||
| Nippon Mining Holdings, Inc. | 177,000 | 803,855 | ||||||
Trading Companies & Distributors 1.9% | ||||||||
| Mitsubishi Corp. | 62,100 | 955,879 | ||||||
| Mitsui & Co. Ltd. | 96,000 | 1,018,436 | ||||||
| 1,974,315 | ||||||||
Wireless Telecommunication Services 0.4% | ||||||||
| KDDI Corp. | 100 | 449,793 | ||||||
| 15,376,418 | ||||||||
LUXEMBOURG 0.8% (a) | ||||||||
Metals & Mining 0.8% | ||||||||
| ArcelorMittal | 35,100 | 822,065 | ||||||
NETHERLANDS 2.7% (a) | ||||||||
Diversified Financial Services 0.8% | ||||||||
| ING Groep NV CVA | 87,900 | 801,101 | ||||||
Food & Staples Retailing 1.3% | ||||||||
| Koninklijke Ahold NV | 120,500 | 1,320,005 | ||||||
10 Semiannual Report 2009
| Common Stocks (continued) | ||||||||
NETHERLANDS (continued) | ||||||||
Food & Staples Retailing (continued) | ||||||||
Industrial Conglomerate 0.6% | ||||||||
| Koninklijke Philips Electronics NV | 37,470 | $ | 675,964 | |||||
| 2,797,070 | ||||||||
NEW ZEALAND 0.0% (a) | ||||||||
Diversified Telecommunication Services 0.0% | ||||||||
| Telecom Corp. of New Zealand Ltd. | 13,903 | 22,227 | ||||||
NORWAY 1.3% (a) | ||||||||
Oil, Gas & Consumable Fuels 1.3% | ||||||||
| StatoilHydro ASA | 74,350 | 1,386,701 | ||||||
REPUBLIC OF KOREA 1.7% | ||||||||
Commercial Banks 0.7% | ||||||||
| KB Financial Group, Inc. ADR* | 20,900 | 666,292 | ||||||
Semiconductors & Semiconductor Equipment 1.0% (a)(b) | ||||||||
| Samsung Electronics Co. Ltd. GDR | 4,750 | 1,069,473 | ||||||
| 1,735,765 | ||||||||
RUSSIAN FEDERATION 1.5% | ||||||||
Metals & Mining 0.6% (a) | ||||||||
| JSC MMC Norilsk Nickel ADR | 74,297 | 610,312 | ||||||
Oil, Gas & Consumable Fuels 0.9% | ||||||||
| LUKOIL Holding ADR | 20,510 | 904,901 | ||||||
| 1,515,213 | ||||||||
SINGAPORE 0.3% (a) | ||||||||
Marine 0.3% | ||||||||
| Neptune Orient Lines Ltd. | 344,000 | 299,229 | ||||||
SOUTH AFRICA 1.1% (a) | ||||||||
Commercial Banks 0.8% | ||||||||
| ABSA Group Ltd. | 37,400 | 431,835 | ||||||
| Standard Bank Group Ltd. | 47,700 | 461,432 | ||||||
| 893,267 | ||||||||
Industrial Conglomerate 0.3% | ||||||||
| Bidvest Group Ltd. | 26,556 | 281,085 | ||||||
Metals & Mining 0.0% | ||||||||
| ArcelorMittal South Africa Ltd. | 600 | 5,599 | ||||||
| 1,179,951 | ||||||||
SPAIN 1.9% (a) | ||||||||
Diversified Telecommunication Services 1.9% | ||||||||
| Telefonica SA | 105,300 | 1,994,713 | ||||||
SWEDEN 4.0% (a) | ||||||||
Commercial Banks 1.1% | ||||||||
| Nordea Bank AB | 151,590 | 1,128,119 | ||||||
Communications Equipment 1.2% | ||||||||
| Telefonaktiebolaget LM Ericsson, B Shares | 148,000 | 1,257,699 | ||||||
Machinery 0.5% | ||||||||
| Volvo AB, B Shares | 82,600 | 538,833 | ||||||
Paper & Forest Products 1.2% | ||||||||
| Svenska Cellulosa AB, Class B | 132,500 | 1,278,152 | ||||||
| 4,202,803 | ||||||||
SWITZERLAND 3.7% | ||||||||
Capital Markets 2.0% | ||||||||
| Credit Suisse Group AG | 53,100 | 2,075,600 | ||||||
Pharmaceuticals 1.7% (a) | ||||||||
| Novartis AG | 46,620 | 1,765,030 | ||||||
| 3,840,630 | ||||||||
TAIWAN 1.5% | ||||||||
Computers & Peripherals 0.7% | ||||||||
| Compal Electronics, Inc. GDR | 172,529 | 729,798 | ||||||
Electronic Equipment & Instruments 0.8% | ||||||||
| AU Optronics Corp. ADR | 72,400 | 785,540 | ||||||
| 1,515,338 | ||||||||
THAILAND 0.6% | ||||||||
Oil, Gas & Consumable Fuels 0.6% | ||||||||
| PTT PCL | 73,400 | 391,664 | ||||||
| Thai Oil PCL | 297,700 | 269,774 | ||||||
| 661,438 | ||||||||
UNITED KINGDOM 17.7% (a) | ||||||||
Commercial Banks 3.1% | ||||||||
| Barclays PLC | 285,700 | 1,159,610 | ||||||
| HSBC Holdings PLC | 163,200 | 1,160,230 | ||||||
| Lloyds Banking Group PLC | 547,039 | 887,025 | ||||||
| 3,206,865 | ||||||||
Food Products 0.9% | ||||||||
| Associated British Foods PLC | 86,600 | 913,926 | ||||||
Hotels, Restaurants & Leisure 1.1% | ||||||||
| Thomas Cook Group PLC | 107,500 | 414,846 | ||||||
| TUI Travel PLC | 203,700 | 759,032 | ||||||
| 1,173,878 | ||||||||
Independent Power Producers & Energy Traders 0.3% | ||||||||
| Drax Group PLC | 34,600 | 262,303 | ||||||
Insurance 0.7% | ||||||||
| Aviva PLC | 157,300 | 723,991 | ||||||
Multi-Utility 1.1% | ||||||||
| Centrica PLC | 331,800 | 1,108,984 | ||||||
Oil, Gas & Consumable Fuels 5.4% | ||||||||
| BP PLC | 394,600 | 2,787,638 | ||||||
| Royal Dutch Shell PLC, Class A | 124,300 | 2,850,337 | ||||||
| 5,637,975 | ||||||||
Pharmaceuticals 2.4% | ||||||||
| AstraZeneca PLC | 13,000 | 455,059 | ||||||
| GlaxoSmithKline PLC | 135,100 | 2,080,331 | ||||||
| 2,535,390 | ||||||||
2009 Semiannual Report 11
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
UNITED KINGDOM (continued) | ||||||||
Wireless Telecommunication Services 2.7% | ||||||||
| Vodafone Group PLC | 1,519,300 | $ | 2,791,564 | |||||
| 18,354,876 | ||||||||
Total Common Stocks (cost $155,146,490) | 102,438,909 | |||||||
| Preferred Stocks 0.0% (a) | ||||||||
REPUBLIC OF KOREA 0.0% | ||||||||
Semiconductors & Semiconductor Equipment 0.0% | ||||||||
| Samsung Electronics Co. Ltd. GDR | 100 | $ | 12,515 | |||||
Total Preferred Stocks (cost $23,087) | 12,515 | |||||||
| Rights 0.0% (a) | ||||||||
BELGIUM 0.0% | ||||||||
Diversified Financial Services 0.0% | ||||||||
| Fortis, expiring 7/2/14 | 67,100 | 0 | ||||||
Total Rights (cost $ — ) | 0 | |||||||
| Repurchase Agreements 2.2% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $797,998, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $813,954 | $ | 797,994 | 797,994 | |||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $1,507,180, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $1,537,317 | $ | 1,507,173 | $ | 1,507,173 | ||||
Total Repurchase Agreements (cost $2,305,167) | 2,305,167 | |||||||
Total Investments (cost $157,474,744) (c) — 100.7% | 104,756,591 | |||||||
Liabilities in excess of other assets — (0.7)% | (775,833 | ) | ||||||
NET ASSETS — 100.0% | $ | 103,980,758 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | Fair Valued Security. | |
| (b) | Rule 144A, Section 4(2), or other security which is restricted as to resale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at April 30, 2009 was $1,069,473 which represents 1.03% of net assets. | |
| (c) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| AB | Stock Company | |
| ADR | American Depositary Receipt | |
| AG | Stock Corporation | |
| ASA | Stock Corporation | |
| AU | Australia | |
| CVA | Dutch Certificate | |
| GDR | Global Depositary Receipt | |
| Ltd | Limited | |
| NV | Public Traded Company | |
| OYJ | Public Traded Company | |
| PCL | Public Company Limited | |
| PLC | Public Limited Co. | |
| RSP | Savings Shares | |
| SA | Stock Company | |
| SCA | Limited partnership with share capital | |
| SE | Sweden | |
| SpA | Limited share company |
The accompanying notes are an integral part of these financial statements.
12 Semiannual Report 2009
At April 30, 2009, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows:
| Currency | Net Unrealized | |||||||||||||||||
| Delivery | Received/ | Contract | Market | Appreciation/ | ||||||||||||||
| Currency | Date | (Delivered) | Value | Value | (Depreciation) | |||||||||||||
Short Contracts: | ||||||||||||||||||
| Australia Dollar | 06/15/09 | (1,536,000 | ) | $ | (1,087,027 | ) | $ | (1,112,244 | ) | $ | (25,217 | ) | ||||||
| British Pound | 06/15/09 | (2,933,000 | ) | (4,253,114 | ) | (4,337,444 | ) | (84,330 | ) | |||||||||
| British Pound | 07/15/09 | (5,649,000 | ) | (8,205,335 | ) | (8,354,301 | ) | (148,966 | ) | |||||||||
| Canadian Dollar | 06/15/09 | (7,144,000 | ) | (5,716,148 | ) | (5,989,764 | ) | (273,616 | ) | |||||||||
| Canadian Dollar | 07/15/09 | (7,384,000 | ) | (6,005,309 | ) | (6,192,782 | ) | (187,473 | ) | |||||||||
| Euro | 06/15/09 | (5,964,000 | ) | (7,608,329 | ) | (7,888,164 | ) | (279,835 | ) | |||||||||
| Japanese Yen | 06/15/09 | (1,272,428,000 | ) | (12,946,832 | ) | (12,914,258 | ) | 32,574 | ||||||||||
| Norwegian Krone | 06/15/09 | (30,923,000 | ) | (4,625,284 | ) | (4,705,209 | ) | (79,925 | ) | |||||||||
| Swedish Krone | 06/15/09 | (35,040,000 | ) | (4,060,549 | ) | (4,358,236 | ) | (297,687 | ) | |||||||||
| Swedish Krone | 07/15/09 | (29,545,000 | ) | (3,523,680 | ) | (3,675,105 | ) | (151,425 | ) | |||||||||
| Swiss Franc | 06/15/09 | (1,778,000 | ) | (1,530,463 | ) | (1,559,418 | ) | (28,955 | ) | |||||||||
| Swiss Franc | 07/15/09 | (1,778,000 | ) | (1,532,825 | ) | (1,560,303 | ) | (27,478 | ) | |||||||||
| Total Short Contracts | $ | (61,094,895 | ) | $ | (62,647,228 | ) | $ | (1,552,333 | ) | |||||||||
Long Contracts: | ||||||||||||||||||
| Australia Dollar | 06/15/09 | 1,536,000 | $ | 1,069,517 | $ | 1,112,244 | $ | 42,727 | ||||||||||
| Australia Dollar | 07/15/09 | 7,477,000 | 5,243,800 | 5,404,790 | 160,990 | |||||||||||||
| British Pound | 06/15/09 | 2,933,000 | 4,263,321 | 4,337,444 | 74,123 | |||||||||||||
| Canadian Dollar | 06/15/09 | 7,144,000 | 5,780,923 | 5,989,765 | 208,842 | |||||||||||||
| Euro | 06/15/09 | 5,964,000 | 8,036,665 | 7,888,166 | (148,499 | ) | ||||||||||||
| Japanese Yen | 06/15/09 | 1,272,428,000 | 13,038,375 | 12,914,258 | (124,117 | ) | ||||||||||||
| Japanese Yen | 07/15/09 | 1,027,073,000 | 10,462,082 | 10,429,451 | (32,631 | ) | ||||||||||||
| Norwegian Krone | 06/15/09 | 30,923,000 | 4,559,137 | 4,705,209 | 146,072 | |||||||||||||
| Norwegian Krone | 07/15/09 | 24,078,000 | 3,573,994 | 3,660,044 | 86,050 | |||||||||||||
| Swedish Krone | 06/15/09 | 35,040,000 | 4,157,897 | 4,358,236 | 200,339 | |||||||||||||
| Swiss Franc | 06/15/09 | 1,778,000 | 1,531,966 | 1,559,417 | 27,451 | |||||||||||||
| Total Long Contracts | $ | 61,717,677 | $ | 62,359,024 | $ | 641,347 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 13
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| International | |||||
| Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $155,169,577) | $ | 102,451,424 | |||
| Repurchase agreements, at value and cost | 2,305,167 | ||||
| Total Investments | 104,756,591 | ||||
| Foreign currency, at value (cost $803,735) | 810,212 | ||||
| Unrealized appreciation on forward foreign currency contracts | 1,005,078 | ||||
| Interest and dividends receivable | 376,105 | ||||
| Receivable for capital shares issued | 4,358 | ||||
| Receivable for investments sold | 64,574 | ||||
| Reclaims receivable | 67,233 | ||||
| Prepaid expenses and other assets | 90,947 | ||||
| Total Assets | 107,175,098 | ||||
Liabilities: | |||||
| Unrealized depreciation on forward foreign currency contracts | 1,916,064 | ||||
| Payable for investments purchased | 1,170,843 | ||||
| Payable for capital shares redeemed | 28,927 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 48,696 | ||||
| Fund administration fees | 10,714 | ||||
| Distribution fees | 14 | ||||
| Trustee fees | 509 | ||||
| Compliance program costs (Note 3) | 1,364 | ||||
| Custodian fees | 7,259 | ||||
| Professional fees | 5,651 | ||||
| Other | 4,299 | ||||
| Total Liabilities | 3,194,340 | ||||
Net Assets | $ | 103,980,758 | |||
Represented by: | |||||
| Capital | $ | 192,013,764 | |||
| Accumulated undistributed net investment income | 5,746,543 | ||||
| Accumulated net realized losses from investment and foreign currency transactions | (40,158,626 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (52,718,153 | ) | |||
| Net unrealized appreciation/(depreciation) from foreign currency contracts | (910,986 | ) | |||
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 8,216 | ||||
Net Assets | $ | 103,980,758 | |||
Net Assets: | |||||
| Class A Shares | $ | 56,812 | |||
| Class C Shares | 4,712 | ||||
| Institutional Service Class Shares | 103,901,115 | ||||
| Institutional Class Shares | 18,119 | ||||
| Total | $ | 103,980,758 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 12,015 | ||||
| Class C Shares | 1,001 | ||||
| Institutional Service Class Shares | 21,938,038 | ||||
| Institutional Class Shares | 3,820 | ||||
| Total | 21,954,874 | ||||
The accompanying notes are an integral part of these financial statements.
14 Semiannual Report 2009
| Nationwide | |||||
| International | |||||
| Value Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 4.73 | |||
| Class C Shares (a) | $ | 4.71 | |||
| Institutional Service Class Shares | $ | 4.74 | |||
| Institutional Class Shares | $ | 4.74 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 5.02 | |||
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.
2009 Semiannual Report 15
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| International | |||||
| Value Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 2,901 | |||
| Dividend income | 1,842,138 | ||||
| Income from securities lending (Note 2) | 49,244 | ||||
| Foreign tax withholding | (164,155 | ) | |||
| Total Income | 1,730,128 | ||||
EXPENSES: | |||||
| Investment advisory fees | 423,158 | ||||
| Fund administration fees | 68,754 | ||||
| Distribution fees Class A | 49 | ||||
| Distribution fees Class C | 25 | ||||
| Administrative services fees Class A | 6 | ||||
| Administrative services fees Institutional Service Class | 114,573 | ||||
| Registration and filing fees | 36,102 | ||||
| Professional fees | 10,263 | ||||
| Printing fees | 3,985 | ||||
| Trustee fees | 4,001 | ||||
| Compliance program costs (Note 3) | 1,364 | ||||
| Custodian fees | 9,961 | ||||
| Other | 18,288 | ||||
| Total expenses before reimbursed/waived expenses | 690,529 | ||||
| Earnings credit (Note 5) | (861 | ) | |||
| Expenses reimbursed by adviser | (77,810 | ) | |||
| Net Expenses | 611,858 | ||||
NET INVESTMENT INCOME | 1,118,270 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (27,560,026 | ) | |||
| Realized losses on foreign currency transactions | (5,029,928 | ) | |||
| Net realized losses from investments and foreign currency transactions | (32,589,954 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 22,176,851 | ||||
| Net change in unrealized appreciation/(depreciation) from foreign currency contracts | 3,721,271 | ||||
| Net change in unrealized appreciation/(depreciation) from translations of assets and liabilities denominated in foreign currencies | 41,838 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and foreign currency | 25,939,960 | ||||
| Net realized/unrealized losses from investments and foreign currency transactions | (6,649,994 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (5,531,724 | ) | ||
The accompanying notes are an integral part of these financial statements.
16 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide International Value Fund | ||||||||||
| Six Months Ended | Period Ended | |||||||||
| April 30, 2009 | October 31, 2008 (a) | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 1,118,270 | $ | 687,492 | ||||||
| Net realized losses from investment and foreign currency transactions | (32,589,954 | ) | (10,746,150 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | 25,939,960 | (79,560,883 | ) | |||||||
| Change in net assets resulting from operations | (5,531,724 | ) | (89,619,541 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | – | (249 | ) | |||||||
| Class C | – | (7 | ) | |||||||
| Institutional Service Class | (3,964 | ) | (21,383 | ) | ||||||
| Institutional Class | (20 | ) | (24,752 | ) | ||||||
| Change in net assets from shareholder distributions | (3,984 | ) | (46,391 | ) | ||||||
| Change in net assets from capital transactions | (3,366,840 | ) | 202,549,238 | |||||||
| Change in net assets | (8,902,548 | ) | 112,883,306 | |||||||
Net Assets: | ||||||||||
| Beginning of period | 112,883,306 | – | ||||||||
| End of period | $ | 103,980,758 | $ | 112,883,306 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 5,746,543 | $ | 4,632,257 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 18,832 | $ | 100,580 | ||||||
| Dividends reinvested | – | 249 | ||||||||
| Cost of shares redeemed (b) | (7,029 | ) | (20,005 | ) | ||||||
| Total Class A | 11,803 | 80,824 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | – | 14,183 | ||||||||
| Dividends reinvested | – | 7 | ||||||||
| Cost of shares redeemed (b) | (1,649 | ) | (2,000 | ) | ||||||
| Total Class C | (1,649 | ) | 12,190 | |||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 2,876,457 | 216,913,134 | ||||||||
| Dividends reinvested | 3,941 | 21,383 | ||||||||
| Cost of shares redeemed(b) | (6,257,412 | ) | (15,112,050 | ) | ||||||
| Total Institutional Service Class | (3,377,014 | ) | 201,822,467 | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 17
Statements of Changes in Net Assets (Continued)
| Nationwide International Value Fund | ||||||||||
| Six Months Ended | Period Ended | |||||||||
| April 30, 2009 | October 31, 2008 (a) | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | $ | – | $ | 4,968,846 | ||||||
| Dividends reinvested | 20 | 24,751 | ||||||||
| Cost of shares redeemed | – | (4,359,840 | ) | |||||||
| Total Institutional Class | 20 | 633,757 | ||||||||
| Change in net assets from capital transactions: | $ | (3,366,840 | ) | $ | 202,549,238 | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 4,262 | 11,563 | ||||||||
| Reinvested | – | 28 | ||||||||
| Redeemed | (1,453 | ) | (2,385 | ) | ||||||
| Total Class A Shares | 2,809 | 9,206 | ||||||||
Class C Shares | ||||||||||
| Issued | – | 1,839 | ||||||||
| Reinvested | – | 1 | ||||||||
| Redeemed | (364 | ) | (475 | ) | ||||||
| Total Class C Shares | (364 | ) | 1,365 | |||||||
Institutional Service Class Shares | ||||||||||
| Issued | 636,963 | 24,845,599 | ||||||||
| Reinvested | 825 | 2,433 | ||||||||
| Redeemed | (1,446,537 | ) | (2,101,245 | ) | ||||||
| Total Institutional Service Class Shares | (808,749 | ) | 22,746,787 | |||||||
Institutional Class Shares | ||||||||||
| Issued | – | 497,000 | ||||||||
| Reinvested | 4 | 2,816 | ||||||||
| Redeemed | – | (496,000 | ) | |||||||
| Total Institutional Class Shares | 4 | 3,816 | ||||||||
| Total change in shares: | (806,300 | ) | 22,761,174 | |||||||
18 Semiannual Report 2009
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Return of | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | capital | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (g) | $ | 4 | .95 | 0 | .06 | (0 | .28) | (0 | .22) | – | – | – | – | $ | 4 | .73 | (4 | .44%) | $ | 56,812 | 1 | .28% | 2 | .62% | 1 | .44% | 25 | .79% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 10 | .00 | 0 | .13 | (5 | .14) | (5 | .01) | – | (0 | .04) | (0 | .04) | – | $ | 4 | .95 | (50 | .26%) | $ | 45,597 | 1 | .38% | 1 | .95% | 1 | .98% | 24 | .23% | ||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (g) | $ | 4 | .95 | 0 | .03 | (0 | .27) | (0 | .24) | – | – | – | – | $ | 4 | .71 | (4 | .85%) | $ | 4,712 | 2 | .01% | 1 | .32% | 2 | .16% | 25 | .79% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 10 | .00 | 0 | .13 | (5 | .17) | (5 | .04) | – | (0 | .01) | (0 | .01) | – | $ | 4 | .95 | (50 | .46%) | $ | 6,752 | 2 | .01% | 1 | .90% | 3 | .03% | 24 | .23% | ||||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (g) | $ | 4 | .96 | 0 | .05 | (0 | .27) | (0 | .22) | – | – | – | – | $ | 4 | .74 | (4 | .43%) | $ | 103,901,115 | 1 | .23% | 2 | .24% | 1 | .39% | 25 | .79% | ||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (g) | $ | 4 | .97 | 0 | .06 | (0 | .28) | (0 | .22) | (0 | .01) | – | (0 | .01) | – | $ | 4 | .74 | (4 | .52%) | $ | 18,119 | 1 | .00% | 2 | .51% | 1 | .15% | 25 | .79% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–“are zero or have been rounded to zero.
| (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 outstanding during the period. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 19
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 semiannual period ended April 30, 2009, the Nationwide Large Cap Value Fund (Class A at NAV) registered −14.91% versus −13.27% for its benchmark, the Russell 1000® Value Index. For broader comparison, the average return for the Fund’s Lipper peer category of Large-Cap Value Funds (consisting of 596 funds as of April 30, 2009) was −10.05% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s holdings in the financials sector provided the most positive relative returns for the Fund. The Fund’s financials shares registered −24.05% for the reporting period, which compares favorably to the benchmark sector return of −29.19% for the same period. Despite the carnage created in the financials sector, the Fund was able to find value within the banks and insurance industries areas. In banks, the value added to the Fund stemmed from opportunistic trades and positions in U.S. Bancorp and BB&T Corp., along with avoidance of the largest under performers. MetLife, Inc. and Aflac Inc. were the standout Fund holdings in the insurance industry area.
What areas of investment detracted from Fund performance?
The Fund’s investments in the consumer discretionary and materials sectors detracted most from Fund performance in a relative sense. Stock selection proved challenging in the volatile market environment during the period regarding two of the underlying industries — specialty retail and chemicals. The Fund did not hold The Home Depot, Inc., the nation’s largest home improvement retailer. Home Depot’s strong relative performance, along with its large position in the benchmark, ultimately explained the Fund’s under performance within specialty retail.
What is your outlook for the near term?
Although macroeconomic data points clearly are not universally positive, signs are emerging that certain sectors of the economy are close to stabilizing. The equity market historically has been a discounter of economic activity, so we believe that the potential economic-bottoming process bodes well for the stock market as the year unfolds. Given the fundamental outlook and the fact that stocks have returned to being judged on such fundamentals, our outlook for equities remains positive.
Subadviser:
NorthPointe Capital® LLC
NorthPointe Capital® LLC
Portfolio Managers:
Peter J. Cahill, CFA; Mary C. Champagne, CFA; and
Jeffrey C. Petherick, CFA
Peter J. Cahill, CFA; Mary C. Champagne, CFA; and
Jeffrey C. Petherick, CFA
20 Semiannual Report 2009
| Fund Performance | Nationwide Large Cap Value Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | -14.91% | -37.72% | -2.57% | -0.41% | |||||||||||||
| w/SC2 | -19.84% | -41.30% | -3.71% | -1.00% | ||||||||||||||
| Class B | w/o SC1 | -15.29% | -38.22% | -3.20% | -1.13% | |||||||||||||
| w/SC3 | -19.48% | -41.26% | -3.48% | -1.13% | ||||||||||||||
Class C4 | w/o SC1 | -15.28% | -38.17% | -3.19% | -1.10% | |||||||||||||
| w/SC5 | -16.12% | -38.78% | -3.19% | -1.10% | ||||||||||||||
Class R26,7,8 | -15.14% | -37.82% | -2.70% | -0.85% | ||||||||||||||
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 | 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 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. | |
| 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 R2 shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R2 shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R2 shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because the Class R2 shares will invest in the same portfolio of securities as Class B shares. | |
| 7 | Not subject to any sales charges. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 1.55% | 1.52% | ||||||||
| Class B | 2.18% | 2.15% | ||||||||
| Class C | 2.18% | 2.15% | ||||||||
| Class R2 | 1.88% | 1.85% | ||||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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) over a 10 year period ended 4/30/09. 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® Index. The Russell 1000 Value 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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 21
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Large Cap Value Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 850.93 | 6.65 | 1.45 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.60 | 7.28 | 1.45 | |||||||||||||||
| Class B | Actual | 1,000.00 | 847.10 | 9.85 | 2.15 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.13 | 10.79 | 2.15 | |||||||||||||||
| Class C | Actual | 1,000.00 | 847.18 | 9.85 | 2.15 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.13 | 10.80 | 2.15 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 848.64 | 7.60 | 1.66 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,024.79 | 8.33 | 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
22 Semiannual Report 2009
| Portfolio Summary | Nationwide Large Cap Value Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 98 | .2% | ||
| Repurchase Agreements | 1 | .3% | ||
| Other assets in excess of liabilities | 0 | .5% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Oil, Gas & Consumable Fuels | 14 | .8% | ||
| Pharmaceuticals | 8 | .9% | ||
| Diversified Telecommunication Services | 6 | .6% | ||
| Diversified Financial Services | 6 | .5% | ||
| Insurance | 4 | .8% | ||
| Commercial Banks | 4 | .7% | ||
| Media | 4 | .1% | ||
| Electric Utilities | 3 | .7% | ||
| Industrial Conglomerates | 3 | .3% | ||
| Capital Markets | 3 | .2% | ||
| Other Industries* | 39 | .4% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Exxon Mobil Corp. | 5 | .2% | ||
| Chevron Corp. | 4 | .7% | ||
| AT&T, Inc. | 3 | .6% | ||
| General Electric Co. | 3 | .3% | ||
| Johnson & Johnson | 3 | .3% | ||
| JPMorgan Chase & Co. | 3 | .1% | ||
| Procter & Gamble Co. (The) | 3 | .1% | ||
| Verizon Communications, Inc. | 3 | .0% | ||
| Pfizer, Inc. | 2 | .4% | ||
| Wells Fargo & Co. | 2 | .1% | ||
| Other Holdings* | 66 | .2% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 23
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Large Cap Value Fund
| Common Stocks 98.2% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 2.3% | ||||||||
| General Dynamics Corp. | 2,300 | $ | 118,841 | |||||
| ITT Corp. | 2,000 | 82,020 | ||||||
| Northrop Grumman Corp. | 1,800 | 87,030 | ||||||
| 287,891 | ||||||||
Air Freight & Logistics 0.7% | ||||||||
| FedEx Corp. | 1,600 | 89,536 | ||||||
Airline 0.6% | ||||||||
| Southwest Airlines Co. | 10,800 | 75,384 | ||||||
Beverages 1.3% | ||||||||
| PepsiCo, Inc. | 3,400 | 169,184 | ||||||
Biotechnology 1.3% | ||||||||
| Amgen, Inc.* | 3,500 | 169,645 | ||||||
Building Products 0.5% | ||||||||
| Armstrong World Industries, Inc.* | 3,200 | 58,176 | ||||||
Capital Markets 3.2% | ||||||||
| Bank of New York Mellon Corp. (The) | 3,500 | 89,180 | ||||||
| Goldman Sachs Group, Inc. (The) | 1,200 | 154,200 | ||||||
| Raymond James Financial, Inc. | 2,800 | 43,932 | ||||||
| State Street Corp. | 3,600 | 122,868 | ||||||
| 410,180 | ||||||||
Chemicals 1.7% | ||||||||
| Cytec Industries, Inc. | 2,700 | 53,622 | ||||||
| E.I. Du Pont de Nemours & Co. | 2,900 | 80,910 | ||||||
| Sigma-Aldrich Corp. | 1,800 | 78,912 | ||||||
| 213,444 | ||||||||
Commercial Banks 4.7% | ||||||||
| BB&T Corp. | 4,000 | 93,360 | ||||||
| U.S. Bancorp | 13,100 | 238,682 | ||||||
| Wells Fargo & Co. | 13,100 | 262,131 | ||||||
| 594,173 | ||||||||
Commercial Services & Supplies 1.1% | ||||||||
| Avery Dennison Corp. | 4,700 | 135,078 | ||||||
Computers & Peripherals 1.0% | ||||||||
| International Business Machines Corp. | 1,200 | 123,852 | ||||||
Containers & Packaging 0.7% | ||||||||
| AptarGroup, Inc. | 2,700 | 83,781 | ||||||
Diversified Financial Services 6.5% | ||||||||
| Bank of America Corp. | 12,918 | 115,358 | ||||||
| Citigroup, Inc. | 17,300 | 52,765 | ||||||
| CME Group, Inc. | 300 | 66,405 | ||||||
| IntercontinentalExchange, Inc.* | 800 | 70,080 | ||||||
| JPMorgan Chase & Co. | 11,928 | 393,624 | ||||||
| MSCI, Inc., Class A* | 3,600 | 75,564 | ||||||
| Nasdaq OMX Group, Inc. (The)* | 2,800 | 53,844 | ||||||
| 827,640 | ||||||||
Diversified Telecommunication Services 6.6% | ||||||||
| AT&T, Inc. | 18,052 | 462,492 | ||||||
| Verizon Communications, Inc. | 12,400 | 376,216 | ||||||
| 838,708 | ||||||||
Electric Utilities 3.7% | ||||||||
| American Electric Power Co., Inc. | 5,800 | 153,004 | ||||||
| FirstEnergy Corp. | 3,500 | 143,150 | ||||||
| FPL Group, Inc. | 1,200 | 64,548 | ||||||
| Southern Co. (The) | 3,900 | 112,632 | ||||||
| 473,334 | ||||||||
Electronic Equipment & Instruments 0.7% | ||||||||
| Avnet, Inc.* | 3,900 | 85,371 | ||||||
Energy Equipment & Services 1.3% | ||||||||
| ENSCO International, Inc. | 2,700 | 76,356 | ||||||
| National Oilwell Varco, Inc.* | 2,700 | 81,756 | ||||||
| 158,112 | ||||||||
Food & Staples Retailing 1.5% | ||||||||
| CVS Caremark Corp. | 3,500 | 111,230 | ||||||
| Wal-Mart Stores, Inc. | 1,600 | 80,640 | ||||||
| 191,870 | ||||||||
Food Products 2.6% | ||||||||
| Archer-Daniels-Midland Co. | 3,700 | 91,094 | ||||||
| Campbell Soup Co. | 4,000 | 102,880 | ||||||
| General Mills, Inc. | 2,600 | 131,794 | ||||||
| 325,768 | ||||||||
Health Care Providers & Services 2.6% | ||||||||
| CIGNA Corp. | 4,500 | 88,695 | ||||||
| McKesson Corp. | 1,700 | 62,900 | ||||||
| UnitedHealth Group, Inc. | 4,500 | 105,840 | ||||||
| WellPoint, Inc.* | 1,800 | 76,968 | ||||||
| 334,403 | ||||||||
Hotels, Restaurants & Leisure 0.6% | ||||||||
| Royal Caribbean Cruises Ltd. | 5,400 | 79,542 | ||||||
Household Durables 1.6% | ||||||||
| Snap-on, Inc. | 2,600 | 88,192 | ||||||
| Whirlpool Corp. | 2,500 | 112,900 | ||||||
| 201,092 | ||||||||
Household Products 3.1% | ||||||||
| Procter & Gamble Co. (The) | 7,800 | 385,632 | ||||||
24 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Industrial Conglomerate 3.3% | ||||||||
| General Electric Co. | 33,400 | $ | 422,510 | |||||
Insurance 4.8% | ||||||||
| Aflac, Inc. | 4,100 | 118,449 | ||||||
| Chubb Corp. | 2,700 | 105,165 | ||||||
| Fidelity National Financial, Inc., Class A | 6,700 | 121,471 | ||||||
| MetLife, Inc. | 2,100 | 62,475 | ||||||
| Progressive Corp. (The)* | 5,800 | 88,624 | ||||||
| Unum Group | 6,900 | 112,746 | ||||||
| 608,930 | ||||||||
Leisure Equipment & Products 0.8% | ||||||||
| Mattel, Inc. | 6,400 | 95,744 | ||||||
Media 4.1% | ||||||||
| Comcast Corp., Class A | 11,300 | 174,698 | ||||||
| Marvel Entertainment, Inc.* | 3,200 | 95,488 | ||||||
| McGraw-Hill Cos., Inc. (The) | 3,700 | 111,555 | ||||||
| Walt Disney Co. (The) | 6,100 | 133,590 | ||||||
| 515,331 | ||||||||
Multi-Utility 2.4% | ||||||||
| CMS Energy Corp. | 8,000 | 96,160 | ||||||
| Dominion Resources, Inc. | 4,200 | 126,672 | ||||||
| Sempra Energy | 1,700 | 78,234 | ||||||
| 301,066 | ||||||||
Multiline Retail 0.7% | ||||||||
| Family Dollar Stores, Inc. | 2,800 | 92,932 | ||||||
Natural Gas Utility 0.5% | ||||||||
| ONEOK, Inc. | 2,600 | 68,042 | ||||||
Oil, Gas & Consumable Fuels 14.8% | ||||||||
| Chevron Corp. | 8,900 | 588,290 | ||||||
| ConocoPhillips | 5,300 | 217,300 | ||||||
| Exxon Mobil Corp. | 9,900 | 660,033 | ||||||
| Marathon Oil Corp. | 4,700 | 139,590 | ||||||
| Occidental Petroleum Corp. | 2,200 | 123,838 | ||||||
| Valero Energy Corp. | 6,800 | 134,912 | ||||||
| 1,863,963 | ||||||||
Paper & Forest Products 1.2% | ||||||||
| MeadWestvaco Corp. | 9,700 | 151,902 | ||||||
Pharmaceuticals 8.9% | ||||||||
| Eli Lilly & Co. | 2,700 | 88,884 | ||||||
| Johnson & Johnson | 7,900 | 413,644 | ||||||
| Merck & Co., Inc. | 5,300 | 128,472 | ||||||
| Pfizer, Inc. | 23,000 | 307,280 | ||||||
| Wyeth | 4,300 | 182,320 | ||||||
| 1,120,600 | ||||||||
Real Estate Investment Trusts 2.8% | ||||||||
| Brandywine Realty Trust | 7,300 | 45,187 | ||||||
| Camden Property Trust | 3,000 | 81,390 | ||||||
| Plum Creek Timber Co., Inc. | 2,500 | 86,300 | ||||||
| Simon Property Group, Inc. | 2,800 | 144,480 | ||||||
| 357,357 | ||||||||
Semiconductors & Semiconductor Equipment 0.7% | ||||||||
| Intel Corp. | 5,400 | 85,212 | ||||||
Software 0.8% | ||||||||
| Symantec Corp.* | 6,100 | 105,225 | ||||||
Specialty Retail 1.8% | ||||||||
| Best Buy Co., Inc. | 1,500 | 57,570 | ||||||
| Lowe’s Cos., Inc. | 7,800 | 167,700 | ||||||
| 225,270 | ||||||||
Tobacco 0.7% | ||||||||
| Altria Group, Inc. | 5,500 | 89,815 | ||||||
Total Common Stocks (cost $14,398,456) | 12,415,695 | |||||||
| Repurchase Agreements 1.3% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $56,653, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $57,786 | $ | 56,653 | 56,653 | |||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $107,001, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $109,141 | 107,001 | 107,001 | ||||||
Total Repurchase Agreements (cost $163,654) | 163,654 | |||||||
Total Investments (cost $14,562,110) (a) — 99.5% | 12,579,349 | |||||||
Other assets in excess of liabilities — 0.5% | 59,064 | |||||||
NET ASSETS — 100.0% | $ | 12,638,413 | ||||||
2009 Semiannual Report 25
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Large Cap Value Fund (Continued)
| * | Denotes a non-income producing security. | |
| (a) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd | Limited |
The accompanying notes are an integral part of these financial statements.
26 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Large Cap | |||||
| Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $14,398,456) | $ | 12,415,695 | |||
| Repurchase agreements, at value and cost | 163,654 | ||||
| Total Investments | 12,579,349 | ||||
| Interest and dividends receivable | 29,665 | ||||
| Receivable for capital shares issued | 4,762 | ||||
| Receivable from adviser | 3,981 | ||||
| Prepaid expenses and other assets | 31,523 | ||||
| Total Assets | 12,649,280 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 185 | ||||
| Accrued expenses and other payables: | |||||
| Fund administration fees | 1,335 | ||||
| Distribution fees | 4,026 | ||||
| Trustee fees | 127 | ||||
| Compliance program costs (Note 3) | 271 | ||||
| Custodian fees | 1,074 | ||||
| Printing fees | 224 | ||||
| Professional fees | 767 | ||||
| Other | 2,858 | ||||
| Total Liabilities | 10,867 | ||||
Net Assets | $ | 12,638,413 | |||
Represented by: | |||||
| Capital | $ | 23,066,948 | |||
| Accumulated undistributed net investment income | 7,229 | ||||
| Accumulated net realized losses from investment transactions | (8,453,003 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (1,982,761 | ) | |||
Net Assets | $ | 12,638,413 | |||
Net Assets: | |||||
| Class A Shares | $ | 10,168,408 | |||
| Class B Shares | 616,448 | ||||
| Class C Shares | 1,812,310 | ||||
| Class R2 Shares (a) | 41,247 | ||||
| Total | $ | 12,638,413 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,493,966 | ||||
| Class B Shares | 92,479 | ||||
| Class C Shares | 273,478 | ||||
| Class R2 Shares (a) | 6,201 | ||||
| Total | 1,866,124 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 27
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Large Cap | |||||
| Value Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.81 | |||
| Class B Shares (b) | $ | 6.67 | (d) | ||
| Class C Shares (c) | $ | 6.63 | |||
| Class R2 Shares (a) | $ | 6.65 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.23 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. | |
| (d) | NAV shown differs from traded NAV at April 30, 2009 due to financial statement adjustments. |
The accompanying notes are an integral part of these financial statements.
28 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Large Cap | |||||
| Value Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 42 | |||
| Dividend income | 259,800 | ||||
| Income from securities lending (Note 2) | 74 | ||||
| Total Income | 259,916 | ||||
EXPENSES: | |||||
| Investment advisory fees | 50,973 | ||||
| Fund administration fees | 8,476 | ||||
| Distribution fees Class A | 13,762 | ||||
| Distribution fees Class B | 3,081 | ||||
| Distribution fees Class C | 9,642 | ||||
| Distribution fees Class R2 (a) | 96 | ||||
| Administrative services fees Class A | 2,876 | ||||
| Administrative services fees Class R2 (a) | 2 | ||||
| Registration and filing fees | 31,621 | ||||
| Professional fees | 1,417 | ||||
| Printing fees | 4,740 | ||||
| Trustee fees | 530 | ||||
| Compliance program costs (Note 3) | 140 | ||||
| Custodian fees | 1,866 | ||||
| Other | 12,942 | ||||
| Total expenses before reimbursed/waived expenses | 142,164 | ||||
| Earnings credit (Note 5) | (448 | ) | |||
| Expenses reimbursed by adviser | (34,573 | ) | |||
| Net Expenses | 107,143 | ||||
NET INVESTMENT INCOME | 152,773 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (6,020,908 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 2,923,890 | ||||
| Net realized/unrealized losses from investments | (3,097,018 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (2,944,245 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 29
Statements of Changes in Net Assets
| Nationwide Large Cap Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 152,773 | $ | 310,351 | ||||||
| Net realized losses from investment transactions | (6,020,908 | ) | (2,353,586 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 2,923,890 | (7,971,346 | ) | |||||||
| Change in net assets resulting from operations | (2,944,245 | ) | (10,014,581 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (145,444 | ) | (249,388 | ) | ||||||
| Class B | (7,310 | ) | (7,605 | ) | ||||||
| Class C | (22,120 | ) | (24,880 | ) | ||||||
| Class R2 (a) | (552 | ) | (1,633 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (3,004,510 | ) | |||||||
| Class B | – | (176,185 | ) | |||||||
| Class C | – | (673,857 | ) | |||||||
| Class R2 (a) | – | (17,357 | ) | |||||||
| Change in net assets from shareholder distributions | (175,426 | ) | (4,155,415 | ) | ||||||
| Change in net assets from capital transactions | (301,906 | ) | (8,273,011 | ) | ||||||
| Change in net assets | (3,421,577 | ) | (22,443,007 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 16,059,990 | 38,502,997 | ||||||||
| End of period | $ | 12,638,413 | $ | 16,059,990 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 7,229 | $ | 29,882 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 2,873,510 | $ | 3,276,935 | ||||||
| Dividends reinvested | 126,189 | 2,767,953 | ||||||||
| Cost of shares redeemed (b) | (3,054,699 | ) | (11,369,445 | ) | ||||||
| Total Class A | (55,000 | ) | (5,324,557 | ) | ||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 69,447 | 69,443 | ||||||||
| Dividends reinvested | 5,265 | 131,601 | ||||||||
| Cost of shares redeemed (b) | (105,782 | ) | (431,573 | ) | ||||||
| Total Class B | (31,070 | ) | (230,529 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 175,600 | 841,726 | ||||||||
| Dividends reinvested | 6,483 | 188,786 | ||||||||
| Cost of shares redeemed (b) | (431,192 | ) | (3,680,070 | ) | ||||||
| Total Class C | (249,109 | ) | (2,649,558 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
30 Semiannual Report 2009
| Nationwide Large Cap Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 32,721 | $ | 23,614 | ||||||
| Dividends reinvested | 552 | 18,990 | ||||||||
| Cost of shares redeemed (b) | – | (110,971 | ) | |||||||
| Total Class R2 | 33,273 | (68,367 | ) | |||||||
| Change in net assets from capital transactions: | $ | (301,906 | ) | $ | (8,273,011 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 408,488 | 301,855 | ||||||||
| Reinvested | 19,285 | 238,557 | ||||||||
| Redeemed | (509,152 | ) | (1,039,083 | ) | ||||||
| Total Class A Shares | (81,379 | ) | (498,671 | ) | ||||||
Class B Shares | ||||||||||
| Issued | 11,105 | 6,205 | ||||||||
| Reinvested | 826 | 11,531 | ||||||||
| Redeemed | (15,526 | ) | (40,254 | ) | ||||||
| Total Class B Shares | (3,595 | ) | (22,518 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 25,392 | 72,860 | ||||||||
| Reinvested | 1,025 | 16,623 | ||||||||
| Redeemed | (65,588 | ) | (331,146 | ) | ||||||
| Total Class C Shares | (39,171 | ) | (241,663 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 4,015 | 2,211 | ||||||||
| Reinvested | 87 | 1,674 | ||||||||
| Redeemed | – | (13,027 | ) | |||||||
| Total Class R2 Shares | 4,102 | (9,142 | ) | |||||||
| Total change in shares: | (120,043 | ) | (771,994 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 31
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 8 | .13 | 0 | .08 | (1 | .30) | (1 | .22) | (0 | .10) | – | (0 | .10) | – | $ | 6 | .81 | (14 | .91%) | $ | 10,168,408 | 1 | .45% | 2 | .38% | 1 | .96% | 58 | .21% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 14 | .03 | 0 | .16 | (4 | .40) | (4 | .24) | (0 | .14) | (1 | .52) | (1 | .66) | – | $ | 8 | .13 | (33 | .66%) | $ | 12,802,001 | 1 | .49% | 1 | .35% | 1 | .52% | 116 | .40% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 (f) | $ | 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 | .42% | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .97 | 0 | .06 | (1 | .28) | (1 | .22) | (0 | .08) | – | (0 | .08) | – | $ | 6 | .67 | (15 | .29%) | $ | 616,448 | 2 | .15% | 1 | .59% | 2 | .66% | 58 | .21% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 13 | .79 | 0 | .09 | (4 | .32) | (4 | .23) | (0 | .07) | (1 | .52) | (1 | .59) | – | $ | 7 | .97 | (34 | .08%) | $ | 765,344 | 2 | .15% | 0 | .72% | 2 | .19% | 116 | .40% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 (f) | $ | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .92 | 0 | .05 | (1 | .26) | (1 | .21) | (0 | .08) | – | (0 | .08) | – | $ | 6 | .63 | (15 | .28%) | $ | 1,812,310 | 2 | .15% | 1 | .64% | 2 | .66% | 58 | .21% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 13 | .72 | 0 | .08 | (4 | .30) | (4 | .22) | (0 | .06) | (1 | .52) | (1 | .58) | – | $ | 7 | .92 | (34 | .15%) | $ | 2,475,957 | 2 | .15% | 0 | .71% | 2 | .19% | 116 | .40% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 (f) | $ | 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 R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 7 | .95 | 0 | .07 | (1 | .28) | (1 | .21) | (0 | .09) | – | (0 | .09) | – | $ | 6 | .65 | (15 | .14%) | $ | 41,247 | 1 | .66% | 2 | .01% | 2 | .17% | 58 | .21% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 13 | .76 | 0 | .13 | (4 | .29) | (4 | .16) | (0 | .13) | (1 | .52) | (1 | .65) | – | $ | 7 | .95 | (33 | .73%) | $ | 16,688 | 1 | .65% | 1 | .22% | 1 | .72% | 116 | .40% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 (f) | $ | 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 | .70% | 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% | |||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are in integral part of these financial statements.
32 Semiannual 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 semiannual period ended April 30, 2009, the Nationwide U.S. Small Cap Value Fund (Class A at NAV) registered −8.27% versus −12.60% for its benchmark, the Russell 2000® Value Index. For broader comparison, the average return for the Fund’s Lipper peer category of Small-Cap Value Funds (consisting of 342 funds as of April 30, 2009) was −7.06% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s greater exposure than that of the benchmark index to deep-value stocks and, especially, the better performance of the Fund’s basket of those stocks had a large positive impact on the Fund’s relative performance. Composition differences within the various market capitalization segments, especially among mid-cap stocks, also had a strong positive impact on the Fund’s relative performance. The Fund’s greater allocation than that of the index to the consumer discretionary sector, which outperformed relative to all other sectors, and other allocation differences across industries had a positive impact on the Fund’s relative performance. Composition differences within those other sectors, especially in the financials sector, also had a strong positive impact on the Fund’s relative performance.
What areas of investment detracted from Fund performance?
Although a value fund, the Fund maintained greater exposure than that of the benchmark index to mid-cap stocks. This, as well as other differences in allocation across the market-cap segments had a negative impact on the Fund’s relative performance. The Fund also was hurt by the poor performance of its basket of growth-oriented stocks. With regard to industry holding differences in relation to the index, the Fund’s greater allocation than that of the index to the energy sector, the worst-performing sector during the reporting period, had a negative impact on the Fund’s relative performance.
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 involve macroeconomic forecasts or tactical allocations.
Subadviser:
Dimensional Fund Advisors LP
Dimensional Fund Advisors LP
Portfolio Manager:
Stephen A. Clark
Stephen A. Clark
2009 Semiannual Report 33
| Fund Performance | Nationwide U.S. Small Cap Value Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | -8.27% | -32.61% | -27.96% | ||||||||||
| w/SC3 | -13.59% | -36.49% | -31.03% | |||||||||||
| Class C | w/o SC2 | -8.50% | -31.28% | -27.04% | ||||||||||
| w/SC4 | -9.40% | -31.96% | -27.04% | |||||||||||
Institutional Service Class5 | -8.16% | -30.71% | -26.44% | |||||||||||
Institutional Class5 | -8.00% | -30.49% | -26.25% | |||||||||||
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. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 1.62% | 1.34% | ||||||||
| Class C | 2.37% | 2.09% | ||||||||
| Institutional Service Class | 1.55% | 1.27% | ||||||||
| Institutional Class | 1.37% | 1.09% | ||||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 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 2000 Value is an unmanaged index of approximately 2,000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies. | |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
34 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide U.S. Small Cap Value Fund | 11/01/08 | 04/30/09 | 11/1/08 - 04/30/09 a | 11/1/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 917.30 | 6.50 | 1.37 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.01 | 6.86 | 1.37 | |||||||||||||||
| Class C | Actual | 1,000.00 | 914.95 | 9.92 | 2.09 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.43 | 10.49 | 2.09 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 918.40 | 6.28 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.25 | 6.63 | 1.32 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 920.00 | 5.19 | 1.09 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.39 | 5.47 | 1.09 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. |
2009 Semiannual Report 35
| Portfolio Summary | Nationwide U.S. Small Cap Value Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 99 | .7% | ||
| Repurchase Agreements | 0 | .4% | ||
| Liabilities in excess of other assets | (0 | .1)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Insurance | 10 | .4% | ||
| Commercial Banks | 9 | .4% | ||
| Specialty Retail | 6 | .2% | ||
| Electronic Equipment & Instruments | 5 | .9% | ||
| Household Durables | 3 | .8% | ||
| Semiconductors & Semiconductor Equipment | 3 | .7% | ||
| Health Care Providers & Services | 3 | .5% | ||
| Communications Equipment | 3 | .2% | ||
| Oil, Gas & Consumable Fuels | 3 | .1% | ||
| Chemicals | 3 | .0% | ||
| Other Industries* | 47 | .8% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Watson Pharmaceuticals, Inc. | 0 | .8% | ||
| Mohawk Industries, Inc. | 0 | .8% | ||
| AutoNation, Inc. | 0 | .8% | ||
| CenturyTel, Inc. | 0 | .7% | ||
| Jarden Corp. | 0 | .7% | ||
| MeadWestvaco Corp. | 0 | .7% | ||
| First American Corp. | 0 | .6% | ||
| HCC Insurance Holdings, Inc. | 0 | .6% | ||
| Transatlantic Holdings, Inc. | 0 | .6% | ||
| Valspar Corp. | 0 | .6% | ||
| Other Holdings* | 93 | .1% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
36 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide U.S. Small Cap Value Fund
| Common Stocks 99.7% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 1.0% | ||||||||
| Allied Defense Group, Inc. (The) | 400 | $ | 1,612 | |||||
| Argon ST, Inc.* | 1,200 | 24,468 | ||||||
| Ceradyne, Inc.* | 2,600 | 44,824 | ||||||
| Ducommun, Inc. | 1,300 | 22,516 | ||||||
| Esterline Technologies Corp.* | 2,300 | 60,605 | ||||||
| Ladish Co., Inc.* | 2,000 | 15,140 | ||||||
| Limco-Piedmont, Inc.* | 1,500 | 3,705 | ||||||
| Sparton Corp. | 400 | 540 | ||||||
| Triumph Group, Inc. | 1,000 | 41,330 | ||||||
| 214,740 | ||||||||
Air Freight & Logistics 0.1% | ||||||||
| Atlas Air Worldwide Holdings, Inc.* | 500 | 13,275 | ||||||
| Park-Ohio Holdings Corp.* | 1,100 | 5,115 | ||||||
| 18,390 | ||||||||
Airlines 0.6% | ||||||||
| Alaska Air Group, Inc.* | 2,300 | 38,594 | ||||||
| JetBlue Airways Corp.* | 12,500 | 61,625 | ||||||
| SkyWest, Inc. | 3,200 | 38,528 | ||||||
| 138,747 | ||||||||
Auto Components 0.8% | ||||||||
| ArvinMeritor, Inc. | 400 | 496 | ||||||
| Drew Industries, Inc.* | 2,000 | 28,560 | ||||||
| Modine Manufacturing Co. | 2,900 | 11,078 | ||||||
| Shiloh Industries, Inc. | 1,577 | 3,943 | ||||||
| Spartan Motors, Inc. | 1,800 | 14,526 | ||||||
| Standard Motor Products, Inc. | 1,600 | 6,400 | ||||||
| Stoneridge, Inc.* | 1,400 | 3,234 | ||||||
| Superior Industries International, Inc. | 3,100 | 46,748 | ||||||
| Tenneco, Inc.* | 2,500 | 7,650 | ||||||
| TRW Automotive Holdings Corp.* | 5,700 | 49,134 | ||||||
| 171,769 | ||||||||
Beverages 0.6% | ||||||||
| Constellation Brands, Inc., Class A* | 8,400 | 97,356 | ||||||
| PepsiAmericas, Inc. | 1,200 | 29,484 | ||||||
| 126,840 | ||||||||
Biotechnology 0.3% | ||||||||
| Celera Corp.* | 6,100 | 49,349 | ||||||
| Lexicon Pharmaceuticals, Inc.* | 7,400 | 8,140 | ||||||
| MediciNova, Inc.* | 570 | 1,436 | ||||||
| Trimeris, Inc. | 1,600 | 3,216 | ||||||
| Vical, Inc. | 2,100 | 5,355 | ||||||
| 67,496 | ||||||||
Building Products 1.0% | ||||||||
| American Woodmark Corp. | 1,300 | 26,910 | ||||||
| Ameron International Corp. | 1,000 | 59,170 | ||||||
| Builders FirstSource, Inc.* | 456 | 1,509 | ||||||
| Gibraltar Industries, Inc. | 2,600 | 17,420 | ||||||
| Insteel Industries, Inc. | 2,300 | 17,135 | ||||||
| NCI Building Systems, Inc.* | 1,500 | 5,925 | ||||||
| Simpson Manufacturing Co., Inc. | 1,800 | 40,068 | ||||||
| Universal Forest Products, Inc. | 1,500 | 50,340 | ||||||
| US Home Systems, Inc.* | 700 | 1,449 | ||||||
| 219,926 | ||||||||
Capital Markets 1.3% | ||||||||
| Broadpoint Securities Group, Inc.* | 1,600 | 6,896 | ||||||
| Capital Southwest Corp. | 350 | 27,216 | ||||||
| Cowen Group, Inc.* | 1,600 | 9,232 | ||||||
| E*Trade Financial Corp.* | 35,800 | 51,194 | ||||||
| FirstCity Financial Corp.* | 1,000 | 3,150 | ||||||
| Harris & Harris Group, Inc.* | 2,900 | 14,036 | ||||||
| KBW, Inc.* | 1,000 | 24,190 | ||||||
| Knight Capital Group, Inc., Class A* | 4,800 | 74,352 | ||||||
| Penson Worldwide, Inc.* | 3,200 | 32,448 | ||||||
| Sanders Morris Harris Group, Inc. | 2,800 | 12,656 | ||||||
| SWS Group, Inc. | 1,400 | 17,906 | ||||||
| Thomas Weisel Partners Group, Inc.* | 3,048 | 13,777 | ||||||
| 287,053 | ||||||||
Chemicals 3.0% | ||||||||
| American Pacific Corp. | 600 | 4,254 | ||||||
| Arch Chemicals, Inc. | 1,000 | 24,180 | ||||||
| Ashland, Inc. | 3,400 | 74,664 | ||||||
| Cabot Corp. | 5,300 | 77,380 | ||||||
| Cytec Industries, Inc. | 2,600 | 51,636 | ||||||
| Ferro Corp. | 1,800 | 4,986 | ||||||
| GenTek, Inc.* | 600 | 11,454 | ||||||
| ICO, Inc.* | 3,200 | 7,904 | ||||||
| Kronos Worldwide, Inc. | 900 | 6,723 | ||||||
| Minerals Technologies, Inc. | 1,000 | 37,190 | ||||||
| OM Group, Inc.* | 1,800 | 50,148 | ||||||
| Penford Corp. | 1,000 | 4,470 | ||||||
| PolyOne Corp.* | 7,100 | 19,454 | ||||||
| Quaker Chemical Corp. | 1,000 | 11,700 | ||||||
| Rockwood Holdings, Inc.* | 700 | 8,610 | ||||||
| Sensient Technologies Corp. | 1,800 | 42,084 | ||||||
| Spartech Corp. | 3,200 | 12,576 | ||||||
| Valspar Corp. | 5,900 | 141,600 | ||||||
| Westlake Chemical Corp. | 5,000 | 93,500 | ||||||
| 684,513 | ||||||||
Commercial Banks 9.4% | ||||||||
| 1st Source Corp. | 1,400 | 27,496 | ||||||
| Amcore Financial, Inc. | 1,335 | 1,962 | ||||||
| Ameris Bancorp | 1,700 | 11,135 | ||||||
| AmeriServ Financial, Inc. | 1,800 | 3,186 | ||||||
| Appalachian Bancshares, Inc. | 400 | 484 | ||||||
| Bancorp, Inc.* | 1,600 | 8,656 | ||||||
| BancTrust Financial Group, Inc. | 1,900 | 12,502 | ||||||
| Bank of Florida Corp.* | 1,000 | 3,200 | ||||||
2009 Semiannual Report 37
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| Bank of Granite Corp. | 1,200 | $ | 2,520 | |||||
| Banner Corp. | 1,900 | 8,816 | ||||||
| Boston Private Financial Holdings, Inc. | 8,101 | 37,346 | ||||||
| Cadence Financial Corp. | 1,000 | 3,370 | ||||||
| Capital City Bank Group, Inc. | 1,500 | 22,560 | ||||||
| Capitol Bancorp Ltd. | 800 | 2,928 | ||||||
| Cardinal Financial Corp. | 1,900 | 14,915 | ||||||
| Cascade Financial Corp. | 747 | 2,428 | ||||||
| Cathay General Bancorp | 2,400 | 26,928 | ||||||
| Center Financial Corp. | 1,700 | 4,318 | ||||||
| Central Jersey Bancorp | 700 | 4,193 | ||||||
| Central Pacific Financial Corp. | 3,200 | 18,752 | ||||||
| Chemical Financial Corp. | 1,300 | 27,755 | ||||||
| Citizens Republic Bancorp, Inc.* | 16,000 | 26,880 | ||||||
| CoBiz Financial, Inc. | 1,300 | 7,631 | ||||||
| Colonial BancGroup, Inc. (The) | 1,200 | 912 | ||||||
| Columbia Banking System, Inc. | 1,600 | 15,840 | ||||||
| Comerica, Inc. | 2,014 | 42,254 | ||||||
| Community Bank System, Inc. | 1,200 | 19,740 | ||||||
| Community Trust Bancorp, Inc. | 800 | 24,208 | ||||||
| Crescent Financial Corp. | 300 | 1,182 | ||||||
| East West Bancorp, Inc. | 4,200 | 28,686 | ||||||
| Enterprise Financial Services Corp. | 963 | 9,486 | ||||||
| First Bancorp, North Carolina | 1,500 | 18,255 | ||||||
| First Bancorp, Puerto Rico | 100 | 551 | ||||||
| First Busey Corp. | 3,200 | 25,056 | ||||||
| First Community Bancshares, Inc. | 300 | 4,335 | ||||||
| First Financial Bancorp | 3,200 | 34,528 | ||||||
| First Horizon National Corp. | 11,601 | 133,528 | ||||||
| First Midwest Bancorp, Inc. | 2,300 | 20,378 | ||||||
| First Regional Bancorp | 500 | 625 | ||||||
| First Security Group, Inc. | 900 | 3,474 | ||||||
| First South Bancorp, Inc. | 700 | 8,092 | ||||||
| FirstMerit Corp. | 1,800 | 34,938 | ||||||
| FNB United Corp. | 1,000 | 3,190 | ||||||
| Fulton Financial Corp. | 9,400 | 62,134 | ||||||
| German American Bancorp, Inc. | 1,000 | 11,900 | ||||||
| Great Southern Bancorp, Inc. | 1,000 | 16,490 | ||||||
| Green Bankshares, Inc. | 1,710 | 14,535 | ||||||
| Guaranty Bancorp* | 5,200 | 11,544 | ||||||
| Hampton Roads Bankshares, Inc. | 670 | 4,991 | ||||||
| Harleysville National Corp. | 2,630 | 23,065 | ||||||
| Heartland Financial USA, Inc. | 1,400 | 20,692 | ||||||
| Heritage Commerce Corp. | 1,300 | 10,504 | ||||||
| IBERIABANK Corp. | 1,000 | 45,680 | ||||||
| Independent Bank Corp. | 1,100 | 1,980 | ||||||
| Independent Bank Corp. | 1,200 | 23,952 | ||||||
| Integra Bank Corp. | 900 | 1,944 | ||||||
| Lakeland Bancorp, Inc. | 1,828 | 15,556 | ||||||
| Macatawa Bank Corp. | 800 | 2,536 | ||||||
| MainSource Financial Group, Inc. | 1,600 | 13,856 | ||||||
| MB Financial, Inc. | 2,700 | 36,801 | ||||||
| MBT Financial Corp. | 700 | 1,764 | ||||||
| Mercantile Bank Corp. | 1,100 | 4,257 | ||||||
| Nara Bancorp, Inc. | 2,300 | 8,533 | ||||||
| National Penn Bancshares, Inc. | 6,100 | 49,349 | ||||||
| NewBridge Bancorp | 1,500 | 3,195 | ||||||
| North Valley Bancorp | 390 | 1,884 | ||||||
| Old National Bancorp | 3,500 | 47,705 | ||||||
| Old Second Bancorp, Inc. | 1,000 | 5,400 | ||||||
| Pacific Capital Bancorp NA | 1,800 | 12,492 | ||||||
| Pacific Mercantile Bancorp | 1,000 | 3,380 | ||||||
| PacWest Bancorp | 1,500 | 21,855 | ||||||
| Peoples Bancorp, Inc. | 1,000 | 16,570 | ||||||
| Pinnacle Financial Partners, Inc.* | 500 | 8,920 | ||||||
| Preferred Bank | 1,200 | 5,184 | ||||||
| PrivateBancorp, Inc. | 700 | 14,175 | ||||||
| Prosperity Bancshares, Inc. | 257 | 7,137 | ||||||
| Provident Bankshares Corp. | 4,000 | 35,160 | ||||||
| Renasant Corp. | 1,800 | 25,380 | ||||||
| S&T Bancorp, Inc. | 1,300 | 23,231 | ||||||
| Sandy Spring Bancorp, Inc. | 2,100 | 34,125 | ||||||
| SCBT Financial Corp. | 600 | 13,842 | ||||||
| Seacoast Banking Corp. of Florida | 1,800 | 7,596 | ||||||
| Simmons First National Corp., Class A | 800 | 20,744 | ||||||
| Smithtown Bancorp, Inc. | 700 | 9,380 | ||||||
| Somerset Hills Bancorp | 400 | 2,900 | ||||||
| South Financial Group, Inc. (The) | 9,300 | 15,438 | ||||||
| Southern Community Financial Corp. | 1,400 | 5,054 | ||||||
| Southwest Bancorp, Inc. | 1,700 | 11,645 | ||||||
| State Bancorp, Inc. | 1,000 | 8,240 | ||||||
| StellarOne Corp. | 2,000 | 25,740 | ||||||
| Sterling Bancshares, Inc. | 8,500 | 56,525 | ||||||
| Sterling Financial Corp. | 1,300 | 4,147 | ||||||
| Sun Bancorp, Inc.* | 364 | 2,397 | ||||||
| Superior Bancorp | 100 | 423 | ||||||
| Susquehanna Bancshares, Inc. | 3,700 | 29,822 | ||||||
| Synovus Financial Corp. | 16,200 | 52,326 | ||||||
| Taylor Capital Group, Inc. | 1,000 | 4,250 | ||||||
| Texas Capital Bancshares, Inc.* | 600 | 8,400 | ||||||
| TIB Financial Corp. | 1,144 | 3,569 | ||||||
| Trustmark Corp. | 300 | 6,522 | ||||||
| UCBH Holdings, Inc. | 10,900 | 13,952 | ||||||
| Umpqua Holdings Corp. | 4,700 | 45,073 | ||||||
| Union Bankshares Corp. | 1,500 | 25,635 | ||||||
| United Bankshares, Inc. | 200 | 5,188 | ||||||
| United Community Banks, Inc. | 1,821 | 11,745 | ||||||
| Univest Corp. of Pennsylvania | 1,100 | 22,957 | ||||||
| Virginia Commerce Bancorp | 2,435 | 7,792 | ||||||
| Washington Trust Bancorp, Inc. | 300 | 5,475 | ||||||
| Webster Financial Corp. | 3,500 | 18,305 | ||||||
| WesBanco, Inc. | 2,300 | 45,747 | ||||||
| Western Alliance Bancorp* | 4,500 | 29,295 | ||||||
| Whitney Holding Corp. | 8,069 | 96,505 | ||||||
| Wilshire Bancorp, Inc. | 1,600 | 6,464 | ||||||
| Wintrust Financial Corp. | 3,000 | 51,000 | ||||||
38 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| Yadkin Valley Financial Corp. | 900 | $ | 7,380 | |||||
| Zions Bancorporation | 6,400 | 69,952 | ||||||
| 2,108,500 | ||||||||
Commercial Services & Supplies 2.0% | ||||||||
| ABM Industries, Inc. | 2,700 | 47,304 | ||||||
| ATC Technology Corp.* | 1,200 | 19,068 | ||||||
| Bowne & Co., Inc. | 1,518 | 7,757 | ||||||
| Comfort Systems USA, Inc. | 2,200 | 23,738 | ||||||
| Cornell Cos., Inc.* | 800 | 14,544 | ||||||
| Ennis, Inc. | 3,000 | 27,000 | ||||||
| G&K Services, Inc. | 1,100 | 27,467 | ||||||
| Geo Group, Inc. (The)* | 1,000 | 16,630 | ||||||
| ICT Group, Inc.* | 700 | 4,956 | ||||||
| Intersections, Inc. | 1,600 | 5,264 | ||||||
| Kimball International, Inc., Class B | 1,630 | 8,948 | ||||||
| M&F Worldwide Corp.* | 900 | 14,355 | ||||||
| McGrath Rentcorp | 1,400 | 29,596 | ||||||
| Mobile Mini, Inc.* | 3,800 | 52,060 | ||||||
| North American Galvanizing & Coating, Inc. | 300 | 1,395 | ||||||
| RR Donnelley & Sons Co. | 1,300 | 15,145 | ||||||
| Schawk, Inc. | 2,400 | 17,256 | ||||||
| Steelcase, Inc. | 3,000 | 13,590 | ||||||
| Sunair Services Corp. | 1,100 | 2,299 | ||||||
| Superior Uniform Group, Inc. | 300 | 2,289 | ||||||
| SYKES Enterprises, Inc.* | 800 | 15,728 | ||||||
| United Stationers, Inc.* | 500 | 16,365 | ||||||
| Viad Corp. | 1,600 | 30,528 | ||||||
| Virco Manufacturing | 900 | 2,862 | ||||||
| Waste Services, Inc.* | 6,015 | 32,481 | ||||||
| WCA Waste Corp. | 114 | 234 | ||||||
| 448,859 | ||||||||
Communications Equipment 3.2% | ||||||||
| 3Com Corp.* | 6,300 | 25,515 | ||||||
| Arris Group, Inc.* | 9,300 | 99,231 | ||||||
| Avocent Corp.* | 3,400 | 49,096 | ||||||
| Aware, Inc. | 1,300 | 3,055 | ||||||
| Bel Fuse, Inc., Class B | 900 | 14,562 | ||||||
| CommScope, Inc.* | 800 | 20,080 | ||||||
| Communications Systems, Inc. | 700 | 5,852 | ||||||
| Digi International, Inc.* | 2,600 | 18,902 | ||||||
| EMS Technologies, Inc.* | 1,200 | 22,860 | ||||||
| Emulex Corp.* | 2,100 | 21,987 | ||||||
| Endwave Corp. | 800 | 2,208 | ||||||
| Extreme Networks* | 2,700 | 4,752 | ||||||
| Globecomm Systems, Inc.* | 2,300 | 15,640 | ||||||
| Harris Stratex Networks, Inc., Class A* | 3,000 | 12,060 | ||||||
| Ixia* | 1,600 | 9,216 | ||||||
| JDS Uniphase Corp.* | 2,400 | 11,064 | ||||||
| KVH Industries, Inc. | 1,000 | 5,500 | ||||||
| Loral Space & Communications, Inc.* | 2,100 | 49,035 | ||||||
| Network Equipment Technologies, Inc. | 1,500 | 5,895 | ||||||
| Occam Networks, Inc. | 2,100 | 5,775 | ||||||
| Oplink Communications, Inc.* | 1,810 | 19,982 | ||||||
| Opnext, Inc.* | 5,731 | 14,500 | ||||||
| Optical Cable Corp. | 300 | 825 | ||||||
| Orbcomm, Inc.* | 2,300 | 2,944 | ||||||
| PC-Tel, Inc. | 1,200 | 5,844 | ||||||
| Performance Technologies, Inc. | 1,121 | 3,105 | ||||||
| Plantronics, Inc. | 1,600 | 20,384 | ||||||
| SCM Microsystems, Inc. | 700 | 1,659 | ||||||
| Seachange International, Inc.* | 2,300 | 14,421 | ||||||
| Sycamore Networks, Inc.* | 22,200 | 65,490 | ||||||
| Symmetricom, Inc.* | 1,500 | 7,470 | ||||||
| Tekelec* | 1,000 | 15,500 | ||||||
| Tellabs, Inc.* | 22,200 | 116,328 | ||||||
| Tollgrade Communications, Inc. | 1,200 | 7,140 | ||||||
| UTStarcom, Inc.* | 12,400 | 14,508 | ||||||
| 712,385 | ||||||||
Computers & Peripherals 0.6% | ||||||||
| Actividentity Corp. | 2,500 | 5,375 | ||||||
| Adaptec, Inc.* | 10,700 | 30,602 | ||||||
| Avid Technology, Inc.* | 1,300 | 14,391 | ||||||
| Concurrent Computer Corp. | 500 | 2,365 | ||||||
| Electronics for Imaging, Inc.* | 4,000 | 39,280 | ||||||
| Imation Corp. | 2,900 | 29,000 | ||||||
| Intevac, Inc.* | 1,900 | 13,091 | ||||||
| Presstek, Inc.* | 2,000 | 3,860 | ||||||
| 137,964 | ||||||||
Construction & Engineering 0.9% | ||||||||
| Dycom Industries, Inc.* | 4,000 | 33,680 | ||||||
| EMCOR Group, Inc.* | 3,000 | 62,370 | ||||||
| Great Lakes Dredge & Dock Corp. | 4,900 | 19,404 | ||||||
| Insituform Technologies, Inc., Class A* | 2,400 | 36,792 | ||||||
| Integrated Electrical Services, Inc.* | 800 | 7,688 | ||||||
| Layne Christensen Co.* | 500 | 10,830 | ||||||
| Perini Corp.* | 200 | 3,460 | ||||||
| Pike Electric Corp.* | 1,800 | 18,684 | ||||||
| Sterling Construction Co., Inc.* | 500 | 9,385 | ||||||
| 202,293 | ||||||||
Construction Materials 0.1% | ||||||||
| Headwaters, Inc.* | 4,700 | 11,844 | ||||||
| U.S. Concrete, Inc.* | 3,500 | 6,930 | ||||||
| 18,774 | ||||||||
Consumer Finance 0.7% | ||||||||
| Advanta Corp. | 1,300 | 1,014 | ||||||
| Advanta Corp., Class B | 3,100 | 3,627 | ||||||
| AmeriCredit Corp.* | 8,800 | 89,496 | ||||||
| Cash America International, Inc. | 700 | 15,652 | ||||||
| CompuCredit Corp.* | 6,100 | 19,520 | ||||||
2009 Semiannual Report 39
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Consumer Finance (continued) | ||||||||
| Consumer Portfolio Services, Inc. | 1,500 | $ | 1,110 | |||||
| First Marblehead Corp. (The)* | 192 | 369 | ||||||
| Nelnet, Inc., Class A* | 3,300 | 19,899 | ||||||
| Rewards Network, Inc. | 1,400 | 5,222 | ||||||
| United PanAm Financial Corp. | 100 | 183 | ||||||
| 156,092 | ||||||||
Containers & Packaging 0.8% | ||||||||
| Bemis Co., Inc. | 3,600 | 86,544 | ||||||
| BWAY Holding Co.* | 1,400 | 13,048 | ||||||
| Graphic Packaging Holding Co.* | 15,800 | 27,176 | ||||||
| Myers Industries, Inc. | 2,800 | 28,084 | ||||||
| Rock-Tenn Co., Class A | 400 | 15,104 | ||||||
| Temple-Inland, Inc. | 1,000 | 11,940 | ||||||
| 181,896 | ||||||||
Distributors 0.1% | ||||||||
| Core-Mark Holding Co., Inc.* | 1,400 | 26,838 | ||||||
Diversified Consumer Services 0.6% | ||||||||
| Carriage Services, Inc. | 1,570 | 4,129 | ||||||
| Collectors Universe | 1,100 | 4,411 | ||||||
| Mac-Gray Corp. | 100 | 690 | ||||||
| Regis Corp. | 3,400 | 65,076 | ||||||
| Service Corp. International | 12,000 | 54,360 | ||||||
| Stewart Enterprises, Inc., Class A | 2,300 | 8,027 | ||||||
| 136,693 | ||||||||
Diversified Financial Services 0.9% | ||||||||
| Asset Acceptance Capital Corp.* | 1,700 | 14,093 | ||||||
| Compass Diversified Holdings | 597 | 5,337 | ||||||
| Encore Capital Group, Inc.* | 2,700 | 23,598 | ||||||
| Financial Federal Corp. | 1,000 | 24,610 | ||||||
| Marlin Business Services Corp. | 356 | 1,136 | ||||||
| Medallion Financial Corp. | 1,852 | 13,649 | ||||||
| NewStar Financial, Inc.* | 4,300 | 9,761 | ||||||
| PHH Corp.* | 4,100 | 68,798 | ||||||
| Pico Holdings, Inc.* | 500 | 15,000 | ||||||
| Portfolio Recovery Associates, Inc.* | 500 | 17,485 | ||||||
| 193,467 | ||||||||
Diversified Telecommunication Services 1.0% | ||||||||
| Arbinet-thexchange, Inc. | 1,400 | 2,646 | ||||||
| CenturyTel, Inc. | 6,000 | 162,900 | ||||||
| Consolidated Communications Holdings, Inc. | 1,600 | 18,000 | ||||||
| D&E Communications, Inc. | 1,000 | 5,600 | ||||||
| FairPoint Communications, Inc. | 600 | 624 | ||||||
| General Communication, Inc., Class A* | 4,400 | 33,704 | ||||||
| iBasis, Inc.* | 2,700 | 2,835 | ||||||
| 226,309 | ||||||||
Electrical Equipment 1.6% | ||||||||
| A.O. Smith Corp. | 1,700 | 52,853 | ||||||
| Baldor Electric Co. | 500 | 11,600 | ||||||
| Belden, Inc. | 3,400 | 54,808 | ||||||
| BTU International, Inc. | 700 | 2,618 | ||||||
| Coleman Cable, Inc.* | 1,200 | 2,988 | ||||||
| Encore Wire Corp. | 2,300 | 50,232 | ||||||
| EnerSys* | 2,400 | 40,920 | ||||||
| LSI Industries, Inc. | 1,600 | 8,976 | ||||||
| Magnetek, Inc. | 600 | 1,050 | ||||||
| PowerSecure International, Inc.* | 600 | 2,484 | ||||||
| Regal-Beloit Corp. | 1,700 | 69,071 | ||||||
| Thomas & Betts Corp. | 2,200 | 68,464 | ||||||
| 366,064 | ||||||||
Electronic Equipment & Instruments 5.9% | ||||||||
| Arrow Electronics, Inc. | 5,100 | 115,974 | ||||||
| Avnet, Inc.* | 4,800 | 105,072 | ||||||
| AVX Corp. | 9,300 | 93,093 | ||||||
| Benchmark Electronics, Inc.* | 5,200 | 63,076 | ||||||
| Brightpoint, Inc.* | 3,919 | 20,418 | ||||||
| Checkpoint Systems, Inc.* | 3,400 | 41,310 | ||||||
| Cognex Corp. | 2,300 | 32,361 | ||||||
| CPI International, Inc.* | 1,301 | 14,246 | ||||||
| CyberOptics Corp. | 400 | 1,860 | ||||||
| DDi Corp. | 1,100 | 3,740 | ||||||
| Electro Rent Corp. | 2,300 | 22,011 | ||||||
| FARO Technologies, Inc.* | 900 | 13,644 | ||||||
| Frequency Electronics, Inc. | 1,000 | 3,320 | ||||||
| Gerber Scientific, Inc.* | 1,400 | 5,530 | ||||||
| GTSI Corp. | 1,000 | 4,500 | ||||||
| ID Systems, Inc. | 729 | 2,865 | ||||||
| Ingram Micro, Inc., Class A | 9,300 | 135,036 | ||||||
| Intelli-Check — Mobilisa, Inc. | 1,000 | 1,290 | ||||||
| Jabil Circuit, Inc. | 7,600 | 61,560 | ||||||
| Keithley Instruments, Inc. | 1,200 | 4,152 | ||||||
| L-1 Identity Solutions, Inc.* | 5,900 | 43,188 | ||||||
| Lecroy Corp. | 1,000 | 3,250 | ||||||
| Littelfuse, Inc.* | 1,200 | 19,668 | ||||||
| LoJack Corp. | 1,300 | 4,446 | ||||||
| Mercury Computer Systems, Inc.* | 1,200 | 9,744 | ||||||
| Methode Electronics, Inc. | 4,500 | 27,090 | ||||||
| Multi-Fineline Electronix, Inc.* | 1,400 | 28,098 | ||||||
| Napco Security Technologies | 1,700 | 2,261 | ||||||
| Nu Horizons Electronics Corp. | 1,000 | 2,790 | ||||||
| OSI Systems, Inc.* | 1,500 | 28,125 | ||||||
| PAR Technology Corp. | 1,300 | 6,799 | ||||||
| Park Electrochemical Corp. | 500 | 10,300 | ||||||
| PC Connection, Inc.* | 300 | 1,485 | ||||||
| PC Mall, Inc.* | 1,300 | 8,320 | ||||||
| Perceptron, Inc. | 700 | 2,527 | ||||||
| Plexus Corp.* | 2,500 | 55,375 | ||||||
| RadiSys Corp.* | 2,700 | 19,359 | ||||||
| Richardson Electronics Ltd. | 1,400 | 5,012 | ||||||
40 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Electronic Equipment & Instruments (continued) | ||||||||
| Rogers Corp.* | 500 | $ | 12,725 | |||||
| ScanSource, Inc.* | 600 | 14,826 | ||||||
| Spectrum Control, Inc. | 1,400 | 9,898 | ||||||
| SYNNEX Corp.* | 2,500 | 53,825 | ||||||
| Tech Data Corp. | 3,600 | 103,644 | ||||||
| Technitrol, Inc. | 1,925 | 7,835 | ||||||
| TESSCO Technologies, Inc. | 400 | 3,660 | ||||||
| TTM Technologies, Inc.* | 4,200 | 31,164 | ||||||
| Vicon Industries, Inc. | 371 | 2,022 | ||||||
| Vishay Intertechnology, Inc. | 9,600 | 56,352 | ||||||
| X-Rite, Inc. | 1,600 | 2,752 | ||||||
| Zygo Corp.* | 1,600 | 8,032 | ||||||
| 1,329,630 | ||||||||
Energy Equipment & Services 2.0% | ||||||||
| Allis-Chalmers Energy, Inc.* | 3,000 | 5,790 | ||||||
| Bristow Group, Inc.* | 2,300 | 52,348 | ||||||
| Bronco Drilling Co., Inc.* | 1,400 | 7,686 | ||||||
| Cal Dive International, Inc.* | 1,400 | 11,088 | ||||||
| Dawson Geophysical Co.* | 100 | 1,966 | ||||||
| Exterran Holdings, Inc. | 500 | 10,325 | ||||||
| Geokinetics, Inc.* | 800 | 3,768 | ||||||
| Gulf Island Fabrication, Inc. | 1,000 | 12,940 | ||||||
| Gulfmark Offshore, Inc.* | 1,500 | 40,320 | ||||||
| Hornbeck Offshore Services, Inc.* | 1,400 | 32,522 | ||||||
| Mitcham Industries, Inc.* | 700 | 3,150 | ||||||
| Natural Gas Services Group, Inc.* | 1,400 | 13,972 | ||||||
| Newpark Resources* | 2,000 | 5,600 | ||||||
| OMNI Energy Services Corp. | 1,400 | 1,610 | ||||||
| Parker Drilling Co.* | 1,500 | 4,140 | ||||||
| Patterson-UTI Energy, Inc. | 579 | 7,359 | ||||||
| PHI, Inc., Non-Voting Shares* | 1,000 | 11,320 | ||||||
| Pioneer Drilling Co.* | 3,000 | 15,000 | ||||||
| Rowan Cos., Inc. | 3,000 | 46,830 | ||||||
| SEACOR Holdings, Inc. | 1,300 | 85,436 | ||||||
| Superior Well Services, Inc.* | 1,900 | 20,330 | ||||||
| Trico Marine Services, Inc.* | 1,000 | 3,880 | ||||||
| Union Drilling, Inc.* | 1,200 | 7,188 | ||||||
| Unit Corp. | 1,300 | 35,477 | ||||||
| 440,045 | ||||||||
Food & Staples Retailing 1.0% | ||||||||
| Andersons, Inc. (The) | 1,600 | 25,712 | ||||||
| Great Atlantic & Pacific Tea Co.* | 3,900 | 28,626 | ||||||
| Ruddick Corp. | 1,800 | 46,188 | ||||||
| Weis Markets, Inc. | 2,100 | 77,679 | ||||||
| Winn-Dixie Stores, Inc.* | 4,100 | 46,986 | ||||||
| 225,191 | ||||||||
Food Products 2.0% | ||||||||
| B&G Foods, Inc., Class A | 4,700 | 28,764 | ||||||
| Chiquita Brands International, Inc.* | 3,300 | 24,981 | ||||||
| Corn Products International, Inc. | 1,300 | 31,070 | ||||||
| Del Monte Foods Co. | 10,900 | 82,295 | ||||||
| Farmer Bros Co. | 1,300 | 25,675 | ||||||
| Hain Celestial Group, Inc. (The)* | 2,100 | 35,049 | ||||||
| Imperial Sugar Co. | 1,000 | 6,550 | ||||||
| J.M. Smucker Co. (The) | 600 | 23,640 | ||||||
| John B. Sanfilippo & Son, Inc. | 300 | 1,710 | ||||||
| Sanderson Farms, Inc. | 400 | 15,960 | ||||||
| Smart Balance, Inc.* | 4,700 | 33,041 | ||||||
| Smithfield Foods, Inc. | 7,700 | 66,528 | ||||||
| Tasty Baking Co. | 700 | 2,975 | ||||||
| TreeHouse Foods, Inc.* | 2,400 | 63,816 | ||||||
| 442,054 | ||||||||
Health Care Equipment & Supplies 2.0% | ||||||||
| Alphatec Holdings, Inc.* | 745 | 1,527 | ||||||
| Analogic Corp. | 500 | 18,200 | ||||||
| AngioDynamics, Inc.* | 2,400 | 30,408 | ||||||
| Anika Therapeutics, Inc. | 100 | 562 | ||||||
| Cantel Medical Corp.* | 1,000 | 14,130 | ||||||
| Cardiac Science Corp.* | 1,200 | 3,540 | ||||||
| CONMED Corp.* | 2,200 | 29,304 | ||||||
| Cooper Cos., Inc. (The) | 3,500 | 100,625 | ||||||
| ev3, Inc.* | 8,800 | 73,568 | ||||||
| Greatbatch, Inc.* | 1,700 | 35,768 | ||||||
| Healthtronics, Inc. | 3,450 | 5,037 | ||||||
| Hill-Rom Holdings, Inc. | 1,600 | 20,768 | ||||||
| Home Diagnostics, Inc. | 1,200 | 7,128 | ||||||
| Invacare Corp. | 2,100 | 32,319 | ||||||
| Inverness Medical Innovations, Inc. | 500 | 16,145 | ||||||
| Misonix, Inc. | 600 | 1,380 | ||||||
| Osteotech, Inc. | 1,400 | 5,348 | ||||||
| RTI Biologics, Inc.* | 4,100 | 14,514 | ||||||
| Spectranetics Corp.* | 600 | 2,340 | ||||||
| Theragenics Corp. | 3,000 | 3,720 | ||||||
| TomoTherapy, Inc.* | 5,200 | 13,416 | ||||||
| Young Innovations, Inc. | 700 | 10,850 | ||||||
| 440,597 | ||||||||
Health Care Providers & Services 3.5% | ||||||||
| Allion Healthcare, Inc. | 2,811 | 15,657 | ||||||
| American Dental Partners, Inc. | 1,500 | 10,417 | ||||||
| AMN Healthcare Services, Inc.* | 2,800 | 19,292 | ||||||
| Amsurg Corp.* | 1,300 | 26,702 | ||||||
| Assisted Living Concepts, Inc., Class A* | 1,160 | 23,003 | ||||||
| Bioscrip, Inc. | 2,500 | 7,950 | ||||||
| Brookdale Senior Living, Inc. | 3,000 | 30,930 | ||||||
| Capital Senior Living Corp.* | 2,400 | 9,480 | ||||||
| Community Health Systems, Inc. | 2,200 | 50,248 | ||||||
| Continucare Corp. | 6,000 | 11,880 | ||||||
| Dynacq Healthcare, Inc. | 256 | 896 | ||||||
| Emeritus Corp.* | 800 | 7,232 | ||||||
| Five Star Quality Care, Inc.* | 2,200 | 3,718 | ||||||
| Gentiva Health Services, Inc.* | 2,200 | 35,046 | ||||||
2009 Semiannual Report 41
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Health Care Providers & Services (continued) | ||||||||
| Hanger Orthopedic Group, Inc.* | 1,300 | $ | 18,083 | |||||
| HealthSpring, Inc.* | 4,500 | 41,535 | ||||||
| Healthways, Inc.* | 1,100 | 11,473 | ||||||
| Integramed America, Inc. | 1,000 | 6,930 | ||||||
| inVentiv Health, Inc.* | 2,800 | 31,052 | ||||||
| LCA-Vision, Inc. | 2,000 | 11,500 | ||||||
| LifePoint Hospitals, Inc. | 2,000 | 51,700 | ||||||
| MedCath Corp.* | 2,200 | 22,264 | ||||||
| Molina Healthcare, Inc.* | 1,500 | 32,475 | ||||||
| NightHawk Radiology Holdings, Inc.* | 3,300 | 11,781 | ||||||
| NovaMed, Inc. | 2,200 | 6,930 | ||||||
| Odyssey HealthCare, Inc.* | 1,800 | 18,648 | ||||||
| Omnicare, Inc. | 5,300 | 136,263 | ||||||
| PDI, Inc. | 800 | 2,568 | ||||||
| Providence Service Corp. (The)* | 1,000 | 9,820 | ||||||
| RehabCare Group, Inc.* | 1,800 | 30,060 | ||||||
| Res-Care, Inc.* | 2,200 | 35,244 | ||||||
| Skilled Healthcare Group, Inc., Class A* | 1,500 | 13,095 | ||||||
| Universal American Corp.* | 4,602 | 47,539 | ||||||
| 791,411 | ||||||||
Health Care Technology 0.1% | ||||||||
| AMICAS, Inc. | 3,800 | 8,208 | ||||||
| Vital Images, Inc.* | 1,300 | 13,169 | ||||||
| 21,377 | ||||||||
Hotels, Restaurants & Leisure 2.4% | ||||||||
| Bluegreen Corp.* | 1,500 | 2,865 | ||||||
| Bob Evans Farms, Inc. | 1,900 | 46,075 | ||||||
| California Pizza Kitchen, Inc.* | 1,400 | 21,994 | ||||||
| Churchill Downs, Inc. | 1,000 | 34,810 | ||||||
| DineEquity, Inc. | 1,400 | 44,856 | ||||||
| Dover Motorsports, Inc. | 1,000 | 1,590 | ||||||
| FortuNet, Inc. | 400 | 1,312 | ||||||
| Gaylord Entertainment Co.* | 1,200 | 16,728 | ||||||
| Isle of Capri Casinos, Inc.* | 1,700 | 18,258 | ||||||
| J Alexander’s Corp. | 500 | 2,000 | ||||||
| Luby’s, Inc.* | 3,100 | 16,616 | ||||||
| Marcus Corp. | 1,800 | 22,860 | ||||||
| McCormick & Schmick’s Seafood Restaurants, Inc. | 1,900 | 13,452 | ||||||
| Morton’s Restaurant Group, Inc. | 2,300 | 10,672 | ||||||
| MTR Gaming Group, Inc. | 2,160 | 4,450 | ||||||
| Multimedia Games, Inc. | 2,201 | 4,666 | ||||||
| Red Lion Hotels Corp. | 1,000 | 4,570 | ||||||
| Rubio’s Restaurants, Inc. | 1,000 | 5,350 | ||||||
| Ruby Tuesday, Inc.* | 5,200 | 39,936 | ||||||
| Speedway Motorsports, Inc. | 3,500 | 52,500 | ||||||
| Steak N Shake Co. (The)* | 2,600 | 30,056 | ||||||
| Vail Resorts, Inc.* | 1,000 | 29,200 | ||||||
| VCG Holding Corp. | 1,100 | 2,167 | ||||||
| Wyndham Worldwide Corp. | 10,000 | 116,800 | ||||||
| 543,783 | ||||||||
Household Durables 3.8% | ||||||||
| Acme United Corp. | 200 | 1,648 | ||||||
| Bassett Furniture Industries, Inc. | 1,000 | 2,260 | ||||||
| Blyth, Inc. | 451 | 19,880 | ||||||
| Brookfield Homes Corp. | 2,300 | 12,075 | ||||||
| Cavco Industries, Inc.* | 500 | 11,720 | ||||||
| Centex Corp. | 4,500 | 49,230 | ||||||
| Craftmade International, Inc. | 300 | 618 | ||||||
| CSS Industries, Inc. | 1,000 | 19,860 | ||||||
| Ethan Allen Interiors, Inc. | 800 | 10,760 | ||||||
| Furniture Brands International, Inc. | 3,700 | 11,692 | ||||||
| Helen of Troy Ltd.* | 2,700 | 43,065 | ||||||
| Hovnanian Enterprises, Inc., Class A* | 5,500 | 15,235 | ||||||
| Jarden Corp.* | 7,700 | 154,770 | ||||||
| KB Home | 1,000 | 18,070 | ||||||
La-Z-Boy, Inc. | 6,000 | 15,960 | ||||||
| Leggett & Platt, Inc. | 5,700 | 81,852 | ||||||
| Lennar Corp., Class A | 1,400 | 13,636 | ||||||
| Lifetime Brands, Inc. | 808 | 2,271 | ||||||
| M.D.C. Holdings, Inc. | 400 | 13,672 | ||||||
| M/I Homes, Inc. | 1,400 | 21,378 | ||||||
| Meritage Homes Corp.* | 2,700 | 56,187 | ||||||
| Mohawk Industries, Inc. | 3,900 | 184,509 | ||||||
| Orleans Homebuilders, Inc. | 1,500 | 3,150 | ||||||
| Palm Harbor Homes, Inc.* | 1,200 | 3,648 | ||||||
| Ryland Group, Inc. | 1,200 | 24,852 | ||||||
| Skyline Corp. | 800 | 16,584 | ||||||
| Standard Pacific Corp.* | 6,400 | 11,968 | ||||||
| Stanley Furniture Co., Inc. | 1,300 | 13,338 | ||||||
| Whirlpool Corp. | 400 | 18,064 | ||||||
| 851,952 | ||||||||
Household Products 0.3% | ||||||||
| Central Garden & Pet Co. | 2,100 | 20,202 | ||||||
| Central Garden & Pet Co., Class A* | 4,200 | 38,094 | ||||||
| 58,296 | ||||||||
Industrial Conglomerate 0.1% | ||||||||
| Standex International Corp. | 1,100 | 15,257 | ||||||
Information Technology Services 1.4% | ||||||||
| Acxiom Corp. | 1,500 | 14,475 | ||||||
| CACI International, Inc., Class A* | 1,600 | 63,280 | ||||||
| Convergys Corp.* | 6,900 | 69,759 | ||||||
| Edgewater Technology, Inc. | 400 | 956 | ||||||
| Euronet Worldwide, Inc.* | 1,800 | 29,124 | ||||||
| Gevity HR, Inc. | 1,100 | 4,356 | ||||||
| Hackett Group, Inc. (The)* | 1,600 | 3,600 | ||||||
| infoGROUP, Inc.* | 4,200 | 17,010 | ||||||
| Perot Systems Corp., Class A* | 6,700 | 94,202 | ||||||
| SRA International, Inc., Class A* | 900 | 13,851 | ||||||
| StarTek, Inc. | 1,500 | 6,180 | ||||||
| Techteam Global, Inc. | 1,000 | 5,190 | ||||||
| 321,983 | ||||||||
42 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Insurance 10.4% | ||||||||
| 21st Century Holding Co. | 900 | $ | 3,573 | |||||
| Affirmative Insurance Holdings, Inc. | 600 | 1,986 | ||||||
| American Equity Investment Life Holding Co. | 2,900 | 16,327 | ||||||
| American Financial Group, Inc. | 6,400 | 112,512 | ||||||
| Amerisafe, Inc.* | 1,700 | 26,112 | ||||||
| Argo Group International Holdings Ltd.* | 1,200 | 33,588 | ||||||
| Cincinnati Financial Corp. | 2,200 | 52,690 | ||||||
| CNA Surety Corp.* | 2,400 | 46,200 | ||||||
| Conseco, Inc. | 10,400 | 16,640 | ||||||
| Delphi Financial Group, Inc., Class A | 3,200 | 55,264 | ||||||
| Donegal Group, Inc., Class A | 1,800 | 26,352 | ||||||
| Eastern Insurance Holdings, Inc. | 1,000 | 8,070 | ||||||
| Endurance Specialty Holdings Ltd. | 1,100 | 28,776 | ||||||
| FBL Financial Group, Inc., Class A | 1,800 | 10,350 | ||||||
| Fidelity National Financial, Inc., Class A | 800 | 14,504 | ||||||
| First Acceptance Corp.* | 3,404 | 8,680 | ||||||
| First American Corp. | 5,200 | 146,016 | ||||||
| First Mercury Financial Corp.* | 1,800 | 23,796 | ||||||
| Flagstone Reinsurance Holdings Ltd. | 900 | 8,334 | ||||||
| FPIC Insurance Group, Inc.* | 1,000 | 30,540 | ||||||
| Hallmark Financial Services* | 2,700 | 18,144 | ||||||
| Hanover Insurance Group, Inc. (The) | 2,800 | 83,944 | ||||||
| HCC Insurance Holdings, Inc. | 6,100 | 145,912 | ||||||
| Hilltop Holdings, Inc.* | 4,800 | 54,384 | ||||||
| Independence Holding Co. | 1,400 | 7,238 | ||||||
| MBIA, Inc.* | 15,000 | 70,950 | ||||||
| Meadowbrook Insurance Group, Inc. | 3,845 | 22,878 | ||||||
| Mercer Insurance Group, Inc. | 500 | 7,310 | ||||||
| Mercury General Corp. | 2,400 | 81,072 | ||||||
| National Financial Partners Corp. | 2,500 | 17,650 | ||||||
| Navigators Group, Inc.* | 1,000 | 45,380 | ||||||
| NYMAGIC, Inc. | 192 | 2,264 | ||||||
| Odyssey Re Holdings Corp. | 3,400 | 130,186 | ||||||
| Old Republic International Corp. | 13,000 | 121,810 | ||||||
| OneBeacon Insurance Group Ltd. | 1,500 | 17,430 | ||||||
| PMA Capital Corp., Class A* | 900 | 3,375 | ||||||
| ProAssurance Corp.* | 2,500 | 109,850 | ||||||
| Protective Life Corp. | 3,800 | 32,566 | ||||||
| Reinsurance Group of America, Inc. | 3,300 | 104,907 | ||||||
| Safety Insurance Group, Inc. | 1,000 | 33,050 | ||||||
| SeaBright Insurance Holdings, Inc.* | 2,400 | 22,272 | ||||||
| Specialty Underwriters’ Alliance, Inc. | 700 | 2,513 | ||||||
| State Auto Financial Corp. | 2,200 | 35,706 | ||||||
| Stewart Information Services Corp. | 1,700 | 38,437 | ||||||
| Transatlantic Holdings, Inc. | 3,764 | 142,768 | ||||||
| United America Indemnity Ltd., Class A* | 673 | 3,412 | ||||||
| United Fire & Casualty Co. | 1,100 | 20,537 | ||||||
| Unitrin, Inc. | 7,900 | 134,300 | ||||||
| W.R. Berkley Corp. | 3,900 | 93,249 | ||||||
| White Mountains Insurance Group Ltd. | 100 | 19,132 | ||||||
| Zenith National Insurance Corp. | 1,500 | 34,185 | ||||||
| 2,327,121 | ||||||||
Internet & Catalog Retail 0.0% | ||||||||
1-800-FLOWERS.COM, Inc., Class A* | 1,500 | 4,380 | ||||||
| dELiA*s, Inc. | 1,700 | 3,655 | ||||||
| Hollywood Media Corp. | 2,600 | 2,496 | ||||||
| 10,531 | ||||||||
Internet Software & Services 1.5% | ||||||||
| IAC/InterActiveCorp. | 5,400 | 86,508 | ||||||
| Infospace, Inc.* | 3,400 | 22,542 | ||||||
| Internap Network Services Corp.* | 6,500 | 18,070 | ||||||
| Internet Brands, Inc., Class A* | 3,849 | 23,595 | ||||||
| Internet Capital Group, Inc.* | 3,800 | 20,634 | ||||||
| iPass, Inc. | 3,400 | 3,876 | ||||||
| Keynote Systems, Inc.* | 800 | 6,168 | ||||||
| Knot, Inc. (The)* | 1,800 | 16,326 | ||||||
| Looksmart Ltd. | 1,300 | 1,625 | ||||||
| Marchex, Inc., Class B | 2,000 | 9,040 | ||||||
| ModusLink Global Solutions, Inc.* | 3,800 | 14,060 | ||||||
| Perficient, Inc.* | 600 | 4,182 | ||||||
| RealNetworks, Inc.* | 10,800 | 26,568 | ||||||
| S1 Corp.* | 2,200 | 13,640 | ||||||
| SonicWALL, Inc.* | 4,775 | 25,928 | ||||||
| SupportSoft, Inc.* | 3,300 | 7,425 | ||||||
| TechTarget, Inc.* | 400 | 1,604 | ||||||
| TheStreet.com, Inc. | 3,700 | 7,881 | ||||||
| United Online, Inc. | 1,800 | 9,540 | ||||||
| Web.com Group, Inc.* | 2,400 | 9,984 | ||||||
| 329,196 | ||||||||
Leisure Equipment & Products 0.4% | ||||||||
| Aldila, Inc. | 200 | 816 | ||||||
| Arctic Cat, Inc. | 1,200 | 4,800 | ||||||
| Callaway Golf Co. | 2,700 | 20,385 | ||||||
| Cybex International, Inc. | 1,400 | 1,470 | ||||||
| Nautilus, Inc.* | 2,800 | 2,800 | ||||||
| RC2 Corp.* | 1,971 | 22,292 | ||||||
| Smith & Wesson Holding Corp.* | 2,687 | 19,266 | ||||||
| Sport Supply Group, Inc. | 1,000 | 6,020 | ||||||
| Steinway Musical Instruments* | 800 | 10,744 | ||||||
| 88,593 | ||||||||
Life Sciences Tools & Services 0.0% | ||||||||
| Cambrex Corp.* | 1,400 | 3,262 | ||||||
| Harvard Bioscience, Inc. | 2,000 | 5,800 | ||||||
| 9,062 | ||||||||
Machinery 2.8% | ||||||||
| Alamo Group, Inc. | 289 | 3,254 | ||||||
| Albany International Corp., Class A | 2,000 | 18,560 | ||||||
| American Railcar Industries, Inc. | 2,800 | 25,536 | ||||||
| Astec Industries, Inc.* | 500 | 15,410 | ||||||
| Barnes Group, Inc. | 1,500 | 21,240 | ||||||
| Briggs & Stratton Corp. | 2,300 | 34,224 | ||||||
| CIRCOR International, Inc. | 1,400 | 36,022 | ||||||
2009 Semiannual Report 43
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Machinery (continued) | ||||||||
| Columbus McKinnon Corp.* | 2,400 | $ | 31,104 | |||||
| EnPro Industries, Inc.* | 500 | 7,980 | ||||||
| Flanders Corp.* | 1,800 | 9,558 | ||||||
| FreightCar America, Inc. | 700 | 13,461 | ||||||
| Gardner Denver, Inc. | 2,000 | 53,240 | ||||||
| Gencor Industries, Inc. | 499 | 4,162 | ||||||
| Greenbrier Cos., Inc. | 1,200 | 10,212 | ||||||
| Hardinge, Inc. | 900 | 4,320 | ||||||
| Hurco Cos., Inc.* | 600 | 9,198 | ||||||
| Kadant, Inc.* | 600 | 7,404 | ||||||
| MFRI, Inc. | 400 | 2,036 | ||||||
| Miller Industries, Inc. | 1,500 | 12,000 | ||||||
| Mueller Industries, Inc. | 1,700 | 37,349 | ||||||
| Mueller Water Products, Inc., Class A | 8,800 | 36,872 | ||||||
| NACCO Industries, Inc., Class A | 600 | 22,950 | ||||||
| Oshkosh Corp. | 6,200 | 59,520 | ||||||
| Portec Rail Products, Inc. | 1,000 | 8,000 | ||||||
| Tecumseh Products Co., Class A* | 1,100 | 11,231 | ||||||
| Timken Co. | 5,500 | 88,440 | ||||||
| Wabash National Corp. | 3,000 | 3,750 | ||||||
| Watts Water Technologies, Inc., Class A | 2,300 | 51,198 | ||||||
| 638,231 | ||||||||
Marine 0.3% | ||||||||
| Alexander & Baldwin, Inc. | 2,400 | 63,936 | ||||||
Media 1.8% | ||||||||
| AH Belo Corp., Class A | 80 | 152 | ||||||
| Alloy, Inc. | 1,382 | 6,316 | ||||||
| Ballantyne of Omaha, Inc. | 825 | 1,939 | ||||||
| Belo Corp., Class A | 400 | 680 | ||||||
| Carmike Cinemas, Inc. | 1,200 | 4,896 | ||||||
| Cinemark Holdings, Inc. | 8,200 | 72,980 | ||||||
| E.W. Scripps Co. (The), Class A | 2,500 | 4,925 | ||||||
| Fisher Communications, Inc. | 1,000 | 12,060 | ||||||
| Hearst-Argyle Television, Inc. | 3,000 | 13,500 | ||||||
| Lakes Entertainment, Inc. | 1,900 | 5,966 | ||||||
| Liberty Media Corp. — Capital | 7,000 | 81,900 | ||||||
| Live Nation, Inc.* | 5,800 | 22,678 | ||||||
| Media General, Inc., Class A | 2,200 | 5,720 | ||||||
| Meredith Corp. | 4,600 | 115,368 | ||||||
| New Frontier Media, Inc. | 1,900 | 3,724 | ||||||
| Orchard Enterprises, Inc. | 500 | 1,125 | ||||||
| Outdoor Channel Holdings, Inc.* | 2,200 | 16,456 | ||||||
| Playboy Enterprises, Inc., Class B* | 1,500 | 4,515 | ||||||
| Saga Communications, Inc. | 400 | 3,724 | ||||||
| Sinclair Broadcast Group, Inc., Class A | 4,100 | 4,551 | ||||||
| Valassis Communications, Inc.* | 2,900 | 14,993 | ||||||
| 398,168 | ||||||||
Metals & Mining 1.4% | ||||||||
| AM Castle & Co. | 3,000 | 29,070 | ||||||
| Brush Engineered Materials, Inc.* | 500 | 8,460 | ||||||
| Friedman Industries | 300 | 1,611 | ||||||
| Horsehead Holding Corp.* | 3,600 | 25,704 | ||||||
| Kaiser Aluminum Corp. | 2,500 | 73,850 | ||||||
| RTI International Metals, Inc.* | 200 | 2,602 | ||||||
| Stillwater Mining Co.* | 5,928 | 26,735 | ||||||
| Synalloy Corp. | 400 | 2,412 | ||||||
| Universal Stainless & Alloy* | 900 | 12,060 | ||||||
| US Gold Corp. | 1,281 | 2,549 | ||||||
| Worthington Industries, Inc. | 9,451 | 140,820 | ||||||
| 325,873 | ||||||||
Multiline Retail 0.6% | ||||||||
| 99 Cents Only Stores* | 6,200 | 66,588 | ||||||
| Fred’s, Inc., Class A | 3,500 | 47,810 | ||||||
| Saks, Inc. | 5,700 | 29,697 | ||||||
| 144,095 | ||||||||
Oil, Gas & Consumable Fuels 3.1% | ||||||||
| Alon USA Energy, Inc. | 2,000 | 25,400 | ||||||
| Approach Resources, Inc.* | 600 | 4,260 | ||||||
| Brigham Exploration Co.* | 2,500 | 5,850 | ||||||
| Callon Petroleum Co.* | 1,300 | 2,288 | ||||||
| Cimarex Energy Co. | 3,200 | 86,080 | ||||||
| Comstock Resources, Inc.* | 1,800 | 62,028 | ||||||
| Delek US Holdings, Inc. | 3,500 | 35,945 | ||||||
| Encore Acquisition Co. | 900 | 26,271 | ||||||
| GeoMet, Inc.* | 3,500 | 3,290 | ||||||
| Gulfport Energy Corp.* | 600 | 1,782 | ||||||
| Harvest Natural Resources, Inc.* | 3,100 | 15,810 | ||||||
| HKN, Inc. | 1,000 | 1,700 | ||||||
| Mariner Energy, Inc. | 4,700 | 53,486 | ||||||
| Newfield Exploration Co. | 500 | 15,590 | ||||||
| Overseas Shipholding Group, Inc. | 1,800 | 51,678 | ||||||
| Penn Virginia Corp. | 1,600 | 22,512 | ||||||
| Petroleum Development Corp.* | 1,000 | 16,210 | ||||||
| Rosetta Resources, Inc.* | 1,300 | 9,165 | ||||||
| Stone Energy Corp.* | 2,094 | 9,025 | ||||||
| Swift Energy Co.* | 1,800 | 19,476 | ||||||
| Tesoro Corp. | 4,100 | 62,525 | ||||||
| Teton Energy Corp. | 1,500 | 555 | ||||||
| Toreador Resources Corp. | 2,000 | 7,400 | ||||||
| TXCO Resources, Inc.* | 1,900 | 893 | ||||||
| USEC, Inc.* | 8,800 | 54,472 | ||||||
| Western Refining, Inc.* | 3,000 | 37,770 | ||||||
| Whiting Petroleum Corp. | 2,300 | 75,348 | ||||||
| 706,809 | ||||||||
Paper & Forest Products 1.3% | ||||||||
| Buckeye Technologies, Inc.* | 3,900 | 20,085 | ||||||
| Glatfelter | 3,500 | 31,080 | ||||||
| Louisiana-Pacific Corp. | 7,900 | 32,153 | ||||||
| MeadWestvaco Corp. | 9,800 | 153,468 | ||||||
44 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Paper & Forest Products (continued) | ||||||||
| Schweitzer-Mauduit International, Inc. | 2,000 | $ | 45,940 | |||||
| Wausau Paper Corp. | 700 | 6,111 | ||||||
| 288,837 | ||||||||
Personal Products 0.3% | ||||||||
| CCA Industries, Inc. | 400 | 1,160 | ||||||
| Elizabeth Arden, Inc.* | 1,600 | 13,856 | ||||||
| Inter Parfums, Inc. | 1,700 | 13,192 | ||||||
| Mannatech, Inc. | 1,900 | 8,303 | ||||||
| Nutraceutical International Corp. | 1,400 | 11,508 | ||||||
| Parlux Fragrances, Inc. | 1,100 | 2,640 | ||||||
| Physicians Formula Holdings, Inc. | 1,300 | 3,185 | ||||||
| Prestige Brands Holdings, Inc.* | 3,800 | 24,548 | ||||||
| 78,392 | ||||||||
Pharmaceuticals 1.4% | ||||||||
| Hi-Tech Pharmacal Co., Inc. | 1,000 | 7,550 | ||||||
| King Pharmaceuticals, Inc.* | 9,906 | 78,059 | ||||||
| Lannett Co, Inc. | 1,100 | 5,940 | ||||||
| Medicis Pharmaceutical Corp., Class A | 1,100 | 17,677 | ||||||
| Par Pharmaceutical Cos., Inc.* | 2,200 | 23,606 | ||||||
| Watson Pharmaceuticals, Inc.* | 6,100 | 188,734 | ||||||
| 321,566 | ||||||||
Professional Services 0.9% | ||||||||
| Barrett Business Services, Inc. | 500 | 5,000 | ||||||
| CDI Corp. | 1,300 | 15,535 | ||||||
| CRA International, Inc.* | 600 | 14,004 | ||||||
| Franklin Covey Co. | 700 | 2,933 | ||||||
| GP Strategies Corp. | 1,877 | 7,508 | ||||||
| Heidrick & Struggles International, Inc. | 1,000 | 16,900 | ||||||
| Hudson Highland Group, Inc.* | 2,200 | 3,608 | ||||||
| Kelly Services, Inc., Class A | 3,206 | 36,420 | ||||||
| Kforce, Inc.* | 3,500 | 38,185 | ||||||
| Korn/Ferry International* | 352 | 3,728 | ||||||
| LECG Corp.* | 2,910 | 8,468 | ||||||
| National Technical Systems, Inc. | 400 | 1,260 | ||||||
| On Assignment, Inc.* | 2,700 | 9,504 | ||||||
| School Specialty, Inc.* | 1,100 | 20,647 | ||||||
| TrueBlue, Inc.* | 800 | 7,768 | ||||||
| Volt Information Sciences, Inc.* | 1,900 | 13,642 | ||||||
| 205,110 | ||||||||
Real Estate Management & Development 0.1% | ||||||||
| Avatar Holdings, Inc.* | 800 | 14,864 | ||||||
| Maui Land & Pineapple Co., Inc.* | 500 | 3,175 | ||||||
| ZipRealty, Inc. | 1,900 | 5,339 | ||||||
| 23,378 | ||||||||
Road & Rail 2.1% | ||||||||
| Amerco, Inc.* | 2,300 | 74,635 | ||||||
| Arkansas Best Corp. | 2,000 | 46,160 | ||||||
| Celadon Group, Inc.* | 1,900 | 12,996 | ||||||
| Hertz Global Holdings, Inc. | 9,100 | 61,880 | ||||||
| Marten Transport Ltd.* | 1,900 | 39,406 | ||||||
| Old Dominion Freight Line, Inc.* | 700 | 19,705 | ||||||
| PAM Transportation Services, Inc. | 572 | 3,043 | ||||||
| Ryder System, Inc. | 3,300 | 91,377 | ||||||
| USA Truck, Inc. | 1,300 | 18,278 | ||||||
| Werner Enterprises, Inc. | 5,400 | 88,290 | ||||||
| YRC Worldwide, Inc.* | 4,400 | 13,332 | ||||||
| 469,102 | ||||||||
Semiconductors & Semiconductor Equipment 3.7% | ||||||||
| Actel Corp.* | 2,500 | 30,925 | ||||||
| Advanced Analogic Technologies, Inc.* | 1,000 | 4,800 | ||||||
| Advanced Energy Industries, Inc.* | 1,362 | 11,482 | ||||||
| Amtech Systems, Inc. | 100 | 419 | ||||||
| Anadigics, Inc.* | 1,100 | 3,322 | ||||||
| AXT, Inc. | 2,200 | 1,870 | ||||||
| Cabot Microelectronics Corp.* | 900 | 25,929 | ||||||
| California Micro Devices Corp. | 800 | 2,248 | ||||||
| Cascade Microtech, Inc. | 1,000 | 3,300 | ||||||
| Ceva, Inc.* | 500 | 4,125 | ||||||
| Cirrus Logic, Inc.* | 4,800 | 22,320 | ||||||
| Cohu, Inc. | 2,600 | 25,376 | ||||||
| Cypress Semiconductor Corp. | 2,000 | 15,860 | ||||||
| DSP Group, Inc.* | 600 | 3,774 | ||||||
| Exar Corp.* | 2,100 | 12,915 | ||||||
| Fairchild Semiconductor International, Inc. | 9,500 | 58,520 | ||||||
| FEI Co.* | 700 | 12,026 | ||||||
| FormFactor, Inc.* | 500 | 8,715 | ||||||
| GSI Technology, Inc. | 1,200 | 3,708 | ||||||
| Ikanos Communications, Inc. | 1,600 | 2,352 | ||||||
| Integrated Device Technology, Inc. | 17,300 | 93,939 | ||||||
| Integrated Silicon Solution, Inc. | 2,500 | 5,600 | ||||||
| International Rectifier Corp. | 3,900 | 65,832 | ||||||
| Intersil Corp., Class A | 6,683 | 77,523 | ||||||
| IXYS Corp. | 1,400 | 13,356 | ||||||
| Kopin Corp.* | 3,700 | 10,175 | ||||||
| Lattice Semiconductor Corp.* | 6,200 | 10,788 | ||||||
| Mattson Technology, Inc.* | 2,800 | 3,220 | ||||||
| MIPS Technologies, Inc.* | 3,900 | 12,948 | ||||||
| Novellus Systems, Inc.* | 800 | 14,448 | ||||||
| OmniVision Technologies, Inc.* | 4,200 | 39,942 | ||||||
| PDF Solutions, Inc. | 1,600 | 2,864 | ||||||
| Pericom Semiconductor Corp.* | 1,000 | 8,910 | ||||||
| PLX Technology, Inc.* | 2,700 | 9,153 | ||||||
| Rudolph Technologies, Inc.* | 3,000 | 15,690 | ||||||
| Semitool, Inc.* | 1,800 | 8,550 | ||||||
| Silicon Image, Inc.* | 4,000 | 10,880 | ||||||
| Skyworks Solutions, Inc.* | 3,300 | 29,172 | ||||||
| Standard Microsystems Corp.* | 2,453 | 38,904 | ||||||
| TriQuint Semiconductor, Inc.* | 9,900 | 37,917 | ||||||
| Ultra Clean Holdings* | 1,200 | 2,184 | ||||||
2009 Semiannual Report 45
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
| Ultratech, Inc.* | 1,300 | $ | 17,576 | |||||
| Veeco Instruments, Inc.* | 1,700 | 12,308 | ||||||
| Virage Logic Corp. | 1,800 | 6,192 | ||||||
| Zoran Corp.* | 2,800 | 25,032 | ||||||
| 827,089 | ||||||||
Software 0.9% | ||||||||
| Bottomline Technologies, Inc.* | 700 | 5,495 | ||||||
| CallWave, Inc. | 700 | 595 | ||||||
| Catapult Communications Corp. | 400 | 2,956 | ||||||
| Dynamics Research Corp. | 1,100 | 9,075 | ||||||
| JDA Software Group, Inc.* | 1,200 | 16,932 | ||||||
| Kenexa Corp.* | 1,300 | 8,528 | ||||||
| Lawson Software, Inc.* | 3,400 | 18,326 | ||||||
| Macrovision Solutions Corp.* | 1,300 | 26,286 | ||||||
| Mentor Graphics Corp.* | 1,300 | 8,736 | ||||||
| MSC.Software Corp.* | 2,164 | 13,287 | ||||||
| Opnet Technologies, Inc.* | 500 | 4,300 | ||||||
| PLATO Learning, Inc. | 2,400 | 7,104 | ||||||
| Progress Software Corp.* | 600 | 12,714 | ||||||
| Smith Micro Software, Inc.* | 2,700 | 23,220 | ||||||
| Soapstone Networks, Inc. | 1,117 | 4,122 | ||||||
| SumTotal Systems, Inc. | 2,900 | 11,165 | ||||||
| TIBCO Software, Inc.* | 3,600 | 22,752 | ||||||
| 195,593 | ||||||||
Specialty Retail 6.2% | ||||||||
| Aaron Rents, Inc. | 1,000 | 33,560 | ||||||
| America’s Car-Mart, Inc.* | 900 | 14,598 | ||||||
| AnnTaylor Stores Corp. | 3,400 | 25,126 | ||||||
| AutoNation, Inc.* | 10,100 | 178,871 | ||||||
| Barnes & Noble, Inc. | 4,200 | 109,704 | ||||||
| Bebe Stores, Inc. | 2,300 | 21,160 | ||||||
| Blockbuster, Inc., Class A* | 10,900 | 8,720 | ||||||
| Brown Shoe Co., Inc. | 3,200 | 20,576 | ||||||
Build-A-Bear Workshop, Inc.* | 2,300 | 12,558 | ||||||
| Cabela’s, Inc.* | 5,400 | 69,174 | ||||||
| Charlotte Russe Holding, Inc.* | 1,800 | 22,590 | ||||||
| Christopher & Banks Corp. | 2,310 | 12,844 | ||||||
| Coldwater Creek, Inc.* | 4,900 | 16,905 | ||||||
| Collective Brands, Inc.* | 2,700 | 39,204 | ||||||
| Conn’s, Inc.* | 1,900 | 31,236 | ||||||
| Destination Maternity Corp. | 300 | 4,026 | ||||||
| Dress Barn, Inc.* | 1,500 | 22,710 | ||||||
| DSW, Inc., Class A* | 1,300 | 14,131 | ||||||
| Finish Line (The), Class A | 5,600 | 47,600 | ||||||
| Foot Locker, Inc. | 8,700 | 103,443 | ||||||
| Gander Mountain Co. | 800 | 3,120 | ||||||
| Genesco, Inc.* | 600 | 13,668 | ||||||
| Group 1 Automotive, Inc. | 2,600 | 55,380 | ||||||
| Haverty Furniture Cos., Inc. | 1,700 | 18,445 | ||||||
| HOT Topic, Inc.* | 4,300 | 52,632 | ||||||
| Jo-Ann Stores, Inc.* | 2,000 | 36,640 | ||||||
| Lithia Motors, Inc. | 500 | 1,460 | ||||||
| MarineMax, Inc.* | 1,300 | 5,915 | ||||||
| Men’s Wearhouse, Inc. (The) | 1,500 | 27,960 | ||||||
| New York & Co., Inc.* | 3,200 | 18,560 | ||||||
| Office Depot, Inc.* | 15,400 | 39,886 | ||||||
| OfficeMax, Inc. | 6,600 | 49,170 | ||||||
| Penske Auto Group, Inc. | 7,300 | 96,725 | ||||||
| PEP Boys-Manny Moe & Jack | 5,800 | 42,920 | ||||||
Rent-A-Center, Inc.* | 1,700 | 32,725 | ||||||
| Shoe Carnival, Inc.* | 1,423 | 16,592 | ||||||
| Stage Stores, Inc. | 2,200 | 26,950 | ||||||
| Stein Mart, Inc.* | 3,227 | 14,102 | ||||||
| Systemax, Inc.* | 1,000 | 16,860 | ||||||
| Talbots, Inc. | 1,400 | 3,304 | ||||||
| Tandy Leather Factory, Inc. | 200 | 550 | ||||||
| West Marine, Inc. | 1,600 | 9,200 | ||||||
| Zale Corp.* | 3,300 | 12,276 | ||||||
| 1,403,776 | ||||||||
Textiles, Apparel & Luxury Goods 1.5% | ||||||||
| Columbia Sportswear Co. | 2,700 | 82,944 | ||||||
| Culp, Inc. | 1,000 | 4,410 | ||||||
| Delta Apparel, Inc. | 158 | 946 | ||||||
| G-III Apparel Group Ltd.* | 1,800 | 14,436 | ||||||
| Heelys, Inc. | 2,200 | 4,026 | ||||||
| Iconix Brand Group, Inc.* | 3,300 | 47,058 | ||||||
| Jones Apparel Group, Inc. | 3,200 | 29,568 | ||||||
| K-Swiss, Inc., Class A | 2,300 | 23,092 | ||||||
| Kenneth Cole Productions, Inc., Class A | 1,000 | 6,920 | ||||||
| Lakeland Industries, Inc. | 200 | 1,498 | ||||||
| Lazare Kaplan International, Inc. | 300 | 402 | ||||||
| Liz Claiborne, Inc. | 2,600 | 12,324 | ||||||
| Movado Group, Inc. | 1,600 | 14,672 | ||||||
| Oxford Industries, Inc. | 1,400 | 13,636 | ||||||
| Perry Ellis International, Inc.* | 1,400 | 10,262 | ||||||
| Quiksilver, Inc.* | 3,200 | 5,280 | ||||||
| RG Barry Corp. | 400 | 2,408 | ||||||
| Rocky Brands, Inc. | 400 | 1,460 | ||||||
| Skechers U.S.A., Inc., Class A* | 2,600 | 30,420 | ||||||
| Timberland Co. (The) Class A* | 1,200 | 19,488 | ||||||
| Unifi, Inc.* | 5,800 | 5,220 | ||||||
| UniFirst Corp. | 500 | 18,645 | ||||||
| 349,115 | ||||||||
Thrifts & Mortgage Finance 2.1% | ||||||||
| Abington Bancorp, Inc. | 2,400 | 21,096 | ||||||
| American Bancorp of New Jersey | 1,000 | 10,080 | ||||||
| Atlantic Coast Federal Corp. | 1,200 | 2,532 | ||||||
| Bank Mutual Corp. | 1,100 | 11,297 | ||||||
| BankFinancial Corp. | 2,714 | 29,040 | ||||||
| Berkshire Hills Bancorp, Inc. | 1,300 | 29,328 | ||||||
| BofI Holding, Inc. | 700 | 4,424 | ||||||
| Dime Community Bancshares | 1,800 | 15,012 | ||||||
46 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Thrifts & Mortgage Finance (continued) | ||||||||
| Doral Financial Corp.* | 100 | $ | 475 | |||||
| ESSA Bancorp, Inc. | 1,500 | 20,460 | ||||||
| First Defiance Financial Corp. | 900 | 9,270 | ||||||
| First Financial Holdings, Inc. | 400 | 3,600 | ||||||
| First Financial Northwest, Inc. | 2,500 | 20,175 | ||||||
| First Place Financial Corp. | 367 | 2,085 | ||||||
| Flushing Financial Corp. | 1,100 | 10,131 | ||||||
| Home Federal Bancorp, Inc. | 2,300 | 23,207 | ||||||
| HopFed Bancorp, Inc. | 300 | 2,850 | ||||||
| Legacy Bancorp, Inc. | 700 | 7,413 | ||||||
| Louisiana Bancorp, Inc. | 600 | 8,280 | ||||||
| NewAlliance Bancshares, Inc. | 3,900 | 50,349 | ||||||
| Northeast Community Bancorp, Inc. | 200 | 1,450 | ||||||
| OceanFirst Financial Corp. | 1,000 | 12,150 | ||||||
| Provident Financial Services, Inc. | 2,000 | 21,340 | ||||||
| Radian Group, Inc. | 10,300 | 17,819 | ||||||
| Rainier Pacific Financial Group, Inc. | 200 | 250 | ||||||
| Riverview Bancorp, Inc. | 589 | 2,067 | ||||||
| Rome Bancorp, Inc. | 700 | 6,300 | ||||||
| SI Financial Group, Inc. | 1,100 | 4,400 | ||||||
| TierOne Corp. | 222 | 471 | ||||||
| United Community Financial Corp. | 763 | 1,579 | ||||||
| United Financial Bancorp, Inc. | 1,400 | 18,578 | ||||||
| United Western Bancorp, Inc. | 472 | 4,366 | ||||||
| Washington Federal, Inc. | 5,000 | 64,900 | ||||||
| Waterstone Financial, Inc.* | 1,700 | 4,845 | ||||||
| Westfield Financial, Inc. | 3,100 | 28,954 | ||||||
| 470,573 | ||||||||
Tobacco 0.4% | ||||||||
| Alliance One International, Inc.* | 4,900 | 18,375 | ||||||
| Universal Corp. | 2,100 | 63,336 | ||||||
| 81,711 | ||||||||
Trading Companies & Distributors 1.0% | ||||||||
| Applied Industrial Technologies, Inc. | 1,400 | 31,500 | ||||||
| BlueLinx Holdings, Inc. | 3,200 | 10,016 | ||||||
| Empire Resources, Inc. | 300 | 297 | ||||||
| GATX Corp. | 2,600 | 78,286 | ||||||
| H&E Equipment Services, Inc.* | 1,266 | 9,533 | ||||||
| Interline Brands, Inc.* | 4,100 | 53,136 | ||||||
| TAL International Group, Inc. | 800 | 7,664 | ||||||
| United Rentals, Inc. | 4,900 | 29,694 | ||||||
| 220,126 | ||||||||
Water Utility 0.1% | ||||||||
| Middlesex Water Co. | 800 | 11,280 | ||||||
| Pennichuck Corp. | 200 | 4,100 | ||||||
| SJW Corp. | 600 | 15,120 | ||||||
| 30,500 | ||||||||
Wireless Telecommunication Services 0.3% | ||||||||
| Telephone & Data Systems, Inc. Special Shares | 1,800 | 46,512 | ||||||
| U.S. Cellular Corp. | 800 | 27,200 | ||||||
| 73,712 | ||||||||
Total Common Stocks (cost $32,932,484) | 22,407,379 | |||||||
| Repurchase Agreements 0.4% | ||||||||
Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $28,362, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $28,929 | $ | 28,362 | 28,362 | |||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $53,568, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $54,639 | 53,568 | 53,568 | ||||||
Total Repurchase Agreements (cost $81,930) | 81,930 | |||||||
Total Investments (cost $33,014,414) (a) — 100.1% | 22,489,309 | |||||||
Liabilities in excess of other assets — (0.1)% | (17,534 | ) | ||||||
NET ASSETS — 100.0% | $ | 22,471,775 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd | Limited | |
| NA | National Association |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 47
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| U.S. Small Cap | |||||
| Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $32,932,484) | $ | 22,407,379 | |||
| Repurchase agreements, at value and cost | 81,930 | ||||
| Total Investments | 22,489,309 | ||||
| Interest and dividends receivable | 10,782 | ||||
| Receivable for capital shares issued | 2,528 | ||||
| Receivable for investments sold | 186 | ||||
| Prepaid expenses and other assets | 48,791 | ||||
| Total Assets | 22,551,596 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 65,495 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 8,387 | ||||
| Fund administration fees | 2,279 | ||||
| Distribution fees | 13 | ||||
| Trustee fees | 94 | ||||
| Compliance program costs (Note 3) | 268 | ||||
| Custodian fees | 317 | ||||
| Printing fees | 1,746 | ||||
| Professional fees | 650 | ||||
| Other | 572 | ||||
| Total Liabilities | 79,821 | ||||
Net Assets | $ | 22,471,775 | |||
Represented by: | |||||
| Capital | $ | 33,832,415 | |||
| Accumulated net investment loss | (9,878 | ) | |||
| Accumulated net realized losses from investment transactions | (825,657 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (10,525,105 | ) | |||
Net Assets | $ | 22,471,775 | |||
Net Assets: | |||||
| Class A Shares | $ | 9,181 | |||
| Class C Shares | 14,740 | ||||
| Institutional Service Class Shares | 22,419,337 | ||||
| Institutional Class Shares | 28,517 | ||||
| Total | $ | 22,471,775 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,427 | ||||
| Class C Shares | 2,298 | ||||
| Institutional Service Class Shares | 3,485,685 | ||||
| Institutional Class Shares | 4,428 | ||||
| Total | 3,493,838 | ||||
The accompanying notes are an integral part of these financial statements.
48 Semiannual Report 2009
| Nationwide | |||||
| U.S. Small Cap | |||||
| Value Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.43 | (a) | ||
| Class C Shares (b) | $ | 6.41 | |||
| Institutional Service Class Shares | $ | 6.43 | |||
| Institutional Class Shares | $ | 6.44 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 6.82 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | NAV shown differs from traded NAV at April 30, 2009 due to financial statement adjustments. | |
| (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.
2009 Semiannual Report 49
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| U.S. Small Cap | |||||
| Value Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 105 | |||
| Dividend income | 204,658 | ||||
| Total Income | 204,763 | ||||
EXPENSES: | |||||
| Investment advisory fees | 96,186 | ||||
| Fund administration fees | 12,622 | ||||
| Distribution fees Class A | 9 | ||||
| Distribution fees Class C | 69 | ||||
| Administrative services fees Class A | 1 | ||||
| Administrative services fees Institutional Service Class | 23,267 | ||||
| Registration and filing fees | 29,153 | ||||
| Professional fees | 2,273 | ||||
| Printing fees | 3,960 | ||||
| Trustee fees | 810 | ||||
| Compliance program costs (Note 3) | 268 | ||||
| Custodian fees | 582 | ||||
| Other | 9,479 | ||||
| Total expenses before reimbursed/waived expenses | 178,679 | ||||
| Earnings credit (Note 5) | (50 | ) | |||
| Expenses reimbursed by adviser | (44,909 | ) | |||
| Net Expenses | 133,720 | ||||
NET INVESTMENT INCOME | 71,043 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (825,655 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | (1,194,878 | ) | |||
| Net realized/ unrealized losses from investments | (2,020,533 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,949,490 | ) | ||
The accompanying notes are an integral part of these financial statements.
50 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide U.S. Small Cap Value Fund | ||||||||||
| Six Months Ended | Period Ended | |||||||||
| April 30, 2009 | October 31, 2008 (a) | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 71,043 | $ | 66,697 | ||||||
| Net realized gains (losses) from investment transactions | (825,655 | ) | 353,054 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments | (1,194,878 | ) | (9,330,227 | ) | ||||||
| Change in net assets resulting from operations | (1,949,490 | ) | (8,910,476 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (27 | ) | (12 | ) | ||||||
| Class C | – | (1 | ) | |||||||
| Institutional Service Class | (131,450 | ) | (17 | ) | ||||||
| Institutional Class | (208 | ) | (30,138 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (127 | ) | – | |||||||
| Class C | (233 | ) | – | |||||||
| Institutional Service Class | (352,250 | ) | – | |||||||
| Institutional Class | (446 | ) | – | |||||||
| Change in net assets from shareholder distributions | (484,741 | ) | (30,168 | ) | ||||||
| Change in net assets from capital transactions | 687,133 | 33,159,517 | ||||||||
| Change in net assets | (1,747,098 | ) | 24,218,873 | |||||||
Net Assets: | ||||||||||
| Beginning of period | 24,218,873 | – | ||||||||
| End of period | $ | 22,471,775 | $ | 24,218,873 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (9,878 | ) | $ | 50,764 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 2,507 | $ | 11,427 | ||||||
| Dividends reinvested | 154 | 12 | ||||||||
| Cost of shares redeemed | (842 | ) | – | |||||||
| Total Class A | 1,819 | 11,439 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 2,000 | 22,386 | ||||||||
| Dividends reinvested | 233 | 1 | ||||||||
| Cost of shares redeemed (b) | (1,275 | ) | – | |||||||
| Total Class C | 958 | 22,387 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 1,629,856 | 34,277,395 | ||||||||
| Dividends reinvested | 483,700 | 17 | ||||||||
| Cost of shares redeemed | (1,432,489 | ) | (1,882,273 | ) | ||||||
| Total Institutional Service Class | 681,067 | 32,395,139 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 51
Statements of Changes in Net Assets (Continued)
| Nationwide U.S. Small Cap Value Fund | ||||||||||
| Six Months Ended | Period Ended | |||||||||
| April 30, 2009 | October 31, 2008 (a) | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | $ | 32,234 | $ | 14,972,256 | ||||||
| Dividends reinvested | 654 | 30,138 | ||||||||
| Cost of shares redeemed | (29,599 | ) | (14,271,842 | ) | ||||||
| Total Institutional Class | 3,289 | 730,552 | ||||||||
| Change in net assets from capital transactions: | $ | 687,133 | $ | 33,159,517 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 403 | 1,142 | ||||||||
| Reinvested | 25 | 1 | ||||||||
| Redeemed | (144 | ) | – | |||||||
| Total Class A Shares | 284 | 1,143 | ||||||||
Class C Shares | ||||||||||
| Issued | 301 | 2,262 | ||||||||
| Reinvested | 37 | – | ||||||||
| Redeemed | (302 | ) | – | |||||||
| Total Class C Shares | 36 | 2,262 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 281,785 | 3,592,623 | ||||||||
| Reinvested | 77,547 | 2 | ||||||||
| Redeemed | (249,615 | ) | (216,657 | ) | ||||||
| Total Institutional Service Class Shares | 109,717 | 3,375,968 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 5,174 | 1,497,000 | ||||||||
| Reinvested | 105 | 3,323 | ||||||||
| Redeemed | (5,174 | ) | (1,496,000 | ) | ||||||
| Total Institutional Class Shares | 105 | 4,323 | ||||||||
| Total change in shares: | 110,142 | 3,383,696 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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.
52 Semiannual Report 2009
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (g) | $ | 7 | .15 | 0 | .02 | (0 | .62) | (0 | .60) | (0 | .02) | (0 | .10) | (0 | .12) | – | $ | 6 | .43 | (8 | .27%) | $ | 9,181 | 1 | .37% | 0 | .63% | 1 | .84% | 16 | .19% | |||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(g) | $ | 7 | .12 | – | (0 | .61) | (0 | .61) | – | (0 | .10) | (0 | .10) | – | $ | 6 | .41 | (8 | .50%) | $ | 14,740 | 2 | .09% | (0 | .07%) | 2 | .53% | 16 | .19% | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (g) | $ | 7 | .16 | 0 | .02 | (0 | .61) | (0 | .59) | (0 | .04) | (0 | .10) | (0 | .14) | – | $ | 6 | .43 | (8 | .16%) | $ | 22,419,337 | 1 | .32% | 0 | .70% | 1 | .76% | 16 | .19% | |||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (g) | $ | 7 | .17 | 0 | .03 | (0 | .61) | (0 | .58) | (0 | .05) | (0 | .10) | (0 | .15) | – | $ | 6 | .44 | (8 | .00%) | $ | 28,517 | 1 | .09% | 0 | .88% | 1 | .53% | 16 | .19% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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 outstanding during the periods. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 53
Nationwide Value Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Value Fund (Class A at NAV) registered −10.22% versus −7.39% for its benchmark, the Russell 1000® Index. For broader comparison, the average return for the Fund’s Lipper peer category of Large-Cap Core Funds (consisting of 959 funds as of April 30, 2009) was −7.13% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s holdings in the information technology and consumer discretionary sectors provided the most positive returns for the Fund. In the information technology sector, the Fund’s positions in network and communications device maker Juniper Networks, Inc. and semiconductor equipment and materials maker KLA-Tencor Corp. were the largest contributors to Fund performance. In the consumer discretionary sector, the Fund’s positions in department store operator Kohl’s Corp. and restaurant operator McDonald’s Corp. were the largest contributors to Fund performance.
What areas of investment detracted from Fund performance?
The Fund’s holdings in the materials, energy, and financials sectors hindered Fund performance. In the materials sector, the Fund’s positions in diversified chemical firm The Dow Chemical Co. as well as in paper and paper products company International Paper Co. were the largest detractors from Fund performance. In the energy sector, the Fund’s positions in oil and gas companies Apache Corp. and Devon Energy Corp. were the largest detractors from Fund performance. In the financials sector, the Fund’s positions in Bank of America Corp., Huntington Bancshares Inc. and Synovus Financial Corp. were the largest detractors from Fund performance.
What is your outlook for the near term?
The markets have moved higher from their early March lows. As the markets have risen, we have remained focused on the long term and sensitive to the relationship between price and our estimates of intrinsic value. While the markets have risen, we have trimmed positions within the Fund as discounts to intrinsic value have decreased. Conversely, we have added to positions within the Fund in areas in which discounts to intrinsic value have increased. Finally, we continue to be very positive on the Fund’s energy-related holdings. We remain concerned, however, about overcapacity in the banking sector and how the behavior of financially-constrained consumers will affect the retail sector.
Subadviser:
Diamond Hill Capital Management, Inc.
Diamond Hill Capital Management, Inc.
Portfolio Manager:
Charles S. Bath, CFA
Charles S. Bath, CFA
54 Semiannual Report 2009
| Fund Performance | Nationwide Value Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | -10.22% | -34.42% | -30.40% | ||||||||||
| w/SC3 | -15.35% | -38.21% | -33.83% | |||||||||||
| Class C | w/o SC2 | -10.58% | -34.91% | -30.90% | ||||||||||
| w/SC4 | -11.46% | -35.55% | -30.90% | |||||||||||
Class R25,6 | -10.35% | -34.58% | -30.54% | |||||||||||
Institutional Class5 | -10.08% | -34.21% | -30.15% | |||||||||||
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.
| * | 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. | |
| 6 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 5.66% | 1.20% | ||||||||
| Class C | 6.31% | 1.85% | ||||||||
| Class R2 | 5.86% | 1.40% | ||||||||
| Institutional Class | 5.31% | 0.85% | ||||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 (Russell 1000)(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 consists of the largest 1000 companies in the Russell® 3000 Index. | |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 55
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Value Fund | 11/01/08 | 04/30/09 | 11/1/08 - 04/30/09 a | 11/1/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 897.79 | 5.29 | 1.12 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.22 | 5.64 | 1.12 | |||||||||||||||
| Class C | Actual | 1,000.00 | 894.22 | 8.13 | 1.73 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.22 | 8.69 | 1.73 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 896.48 | 6.54 | 1.39 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.90 | 6.98 | 1.39 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 899.20 | 4.05 | 0.85 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.53 | 4.32 | 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
56 Semiannual Report 2009
| Portfolio Summary | Nationwide Value Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 90 | .1% | ||
| Repurchase Agreements | 5 | .5% | ||
| Other assets in excess of liabilities | 4 | .4% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Oil, Gas & Consumable Fuels | 20 | .3% | ||
| Pharmaceuticals | 8 | .6% | ||
| Machinery | 5 | .9% | ||
| Communications Equipment | 4 | .5% | ||
| Household Products | 4 | .4% | ||
| Food Products | 3 | .7% | ||
| Health Care Providers & Services | 3 | .7% | ||
| Health Care Equipment & Supplies | 3 | .5% | ||
| Semiconductors & Semiconductor Equipment | 3 | .3% | ||
| Aerospace & Defense | 3 | .3% | ||
| Other Industries* | 38 | .8% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Apache Corp. | 5 | .2% | ||
| Devon Energy Corp. | 4 | .0% | ||
| Anadarko Petroleum Corp. | 3 | .8% | ||
| Occidental Petroleum Corp. | 3 | .8% | ||
| Medtronic, Inc. | 3 | .3% | ||
| United Technologies Corp. | 3 | .3% | ||
| Procter & Gamble Co. (The) | 2 | .6% | ||
| Abbott Laboratories | 2 | .6% | ||
| Microsoft Corp. | 2 | .5% | ||
| Juniper Networks, Inc. | 2 | .5% | ||
| Other Holdings* | 66 | .4% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 57
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Value Fund
| Common Stocks 90.1% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 3.3% | ||||||||
| United Technologies Corp. | 970 | $ | 47,375 | |||||
Airline 1.3% | ||||||||
| Southwest Airlines Co. | 2,750 | 19,195 | ||||||
Beverages 0.9% | ||||||||
| PepsiCo, Inc. | 270 | 13,435 | ||||||
Capital Markets 1.3% | ||||||||
| Bank of New York Mellon Corp. (The) | 730 | 18,600 | ||||||
| �� | ||||||||
Commercial Banks 3.0% | ||||||||
| SunTrust Banks, Inc. | 970 | 14,007 | ||||||
| U.S. Bancorp | 665 | 12,116 | ||||||
| Wells Fargo & Co. | 900 | 18,009 | ||||||
| 44,132 | ||||||||
Commercial Services & Supplies 1.4% | ||||||||
| Avery Dennison Corp. | 720 | 20,693 | ||||||
Communications Equipment 4.5% | ||||||||
| Cisco Systems, Inc.* | 1,525 | 29,463 | ||||||
| Juniper Networks, Inc.* | 1,638 | 35,463 | ||||||
| 64,926 | ||||||||
Computers & Peripherals 1.5% | ||||||||
| Dell, Inc.* | 1,915 | 22,252 | ||||||
Construction & Engineering 0.9% | ||||||||
| Fluor Corp. | 355 | 13,444 | ||||||
Consumer Finance 1.6% | ||||||||
| American Express Co. | 945 | 23,833 | ||||||
Energy Equipment & Services 1.1% | ||||||||
| Transocean Ltd.* | 230 | 15,520 | ||||||
Food & Staples Retailing 2.0% | ||||||||
| SYSCO Corp. | 1,235 | 28,813 | ||||||
Food Products 3.7% | ||||||||
| ConAgra Foods, Inc. | 1,510 | 26,727 | ||||||
| General Mills, Inc. | 530 | 26,866 | ||||||
| 53,593 | ||||||||
Health Care Equipment & Supplies 3.5% | ||||||||
| Baxter International, Inc. | 40 | 1,940 | ||||||
| Medtronic, Inc. | 1,505 | 48,160 | ||||||
| 50,100 | ||||||||
Health Care Providers & Services 3.7% | ||||||||
| Cardinal Health, Inc. | 795 | 26,863 | ||||||
| UnitedHealth Group, Inc. | 1,125 | 26,460 | ||||||
| 53,323 | ||||||||
Hotels, Restaurants & Leisure 1.7% | ||||||||
| McDonald’s Corp. | 475 | 25,313 | ||||||
Household Durables 1.5% | ||||||||
| Black & Decker Corp. | 540 | 21,762 | ||||||
Household Products 4.4% | ||||||||
| Kimberly-Clark Corp. | 530 | 26,044 | ||||||
| Procter & Gamble Co. (The) | 780 | 38,563 | ||||||
| 64,607 | ||||||||
Information Technology Services 1.4% | ||||||||
| Alliance Data Systems Corp.* | 490 | 20,516 | ||||||
Insurance 2.3% | ||||||||
| Allstate Corp. (The) | 315 | 7,349 | ||||||
| Travelers Cos., Inc. (The) | 650 | 26,741 | ||||||
| 34,090 | ||||||||
Machinery 5.9% | ||||||||
| Dover Corp. | 870 | 26,779 | ||||||
| Illinois Tool Works, Inc. | 850 | 27,880 | ||||||
| Parker Hannifin Corp. | 690 | 31,291 | ||||||
| 85,950 | ||||||||
Metals & Mining 1.0% | ||||||||
| Freeport-McMoRan Copper & Gold, Inc.* | 340 | 14,501 | ||||||
Multi-Utility 2.3% | ||||||||
| Dominion Resources, Inc. | 1,120 | 33,779 | ||||||
Oil, Gas & Consumable Fuels 20.3% | ||||||||
| Anadarko Petroleum Corp. | 1,290 | 55,547 | ||||||
| Apache Corp. | 1,035 | 75,410 | ||||||
| Devon Energy Corp. | 1,105 | 57,294 | ||||||
| Occidental Petroleum Corp. | 972 | 54,714 | ||||||
| Southwestern Energy Co.* | 460 | 16,496 | ||||||
| XTO Energy, Inc. | 1,015 | 35,180 | ||||||
| 294,641 | ||||||||
Pharmaceuticals 8.6% | ||||||||
| Abbott Laboratories | 905 | 37,874 | ||||||
| Johnson & Johnson | 635 | 33,248 | ||||||
| Pfizer, Inc. | 2,000 | 26,720 | ||||||
| Schering-Plough Corp. | 1,185 | 27,279 | ||||||
| 125,121 | ||||||||
Semiconductors & Semiconductor Equipment 3.3% | ||||||||
| KLA-Tencor Corp. | 880 | 24,411 | ||||||
| Texas Instruments, Inc. | 1,275 | 23,027 | ||||||
| 47,438 | ||||||||
Software 2.5% | ||||||||
| Microsoft Corp. | 1,760 | 35,658 | ||||||
58 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Textiles, Apparel & Luxury Goods 1.2% | ||||||||
| Hanesbrands, Inc.* | 1,100 | $ | 18,106 | |||||
Total Common Stocks (cost $1,583,475) | 1,310,716 | |||||||
| Repurchase Agreements 5.5% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $27,663, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $28,216 | $ | 27,663 | 27,663 | |||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $52,247, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $53,292 | 52,247 | 52,247 | ||||||
Total Repurchase Agreements (cost $79,910) | 79,910 | |||||||
Total Investments (cost $1,663,385) (a) — 95.6% | 1,390,626 | |||||||
Other assets in excess of liabilities — 4.4% | 63,646 | |||||||
NET ASSETS — 100.0% | $ | 1,454,272 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd | Limited |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 59
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $1,583,475) | $ | 1,310,716 | |||
| Repurchase agreements, at value and cost | 79,910 | ||||
| Total Investments | 1,390,626 | ||||
| Interest and dividends receivable | 1,762 | ||||
| Receivable for capital shares issued | 2 | ||||
| Receivable for investments sold | 8,908 | ||||
| Receivable from adviser | 5,006 | ||||
| Prepaid expenses and other assets | 48,866 | ||||
| Total Assets | 1,455,170 | ||||
Liabilities: | |||||
| Accrued expenses and other payables: | |||||
| Fund administration fees | 145 | ||||
| Distribution fees | 191 | ||||
| Administrative services fees | 377 | ||||
| Trustee fees | 102 | ||||
| Compliance program costs (Note 3) | 15 | ||||
| Custodian fees | 9 | ||||
| Professional fees | 59 | ||||
| Total Liabilities | 898 | ||||
Net Assets | $ | 1,454,272 | |||
Represented by: | |||||
| Capital | $ | 1,987,630 | |||
| Accumulated undistributed net investment income | 1,261 | ||||
| Accumulated net realized losses from investment transactions | (261,860 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (272,759 | ) | |||
Net Assets | $ | 1,454,272 | |||
Net Assets: | |||||
| Class A Shares | $ | 748,951 | |||
| Class C Shares | 61,819 | ||||
| Class R2 Shares (a) | 6,520 | ||||
| Institutional Class Shares | 636,982 | ||||
| Total | $ | 1,454,272 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 116,445 | ||||
| Class C Shares | 9,642 | ||||
| Class R2 Shares (a) | 1,013 | ||||
| Institutional Class Shares | 98,895 | ||||
| Total | 225,995 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.43 | |||
| Class C Shares | $ | 6.41 | |||
| Class R2 Shares (a) | $ | 6.44 | |||
| Institutional Class Shares | $ | 6.44 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 6.82 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
60 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Value Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 86 | |||
| Dividend income | 15,106 | ||||
| Total Income | 15,192 | ||||
EXPENSES: | |||||
| Investment advisory fees | 3,989 | ||||
| Fund administration fees | 766 | ||||
| Distribution fees Class A | 702 | ||||
| Distribution fees Class C | 255 | ||||
| Distribution fees Class R2 (a) | 16 | ||||
| Administrative services fees Class A | 70 | ||||
| Administrative services fees Class R2 (a) | 1 | ||||
| Registration and filing fees | 30,617 | ||||
| Professional fees | 114 | ||||
| Printing fees | 576 | ||||
| Compliance program costs (Note 3) | 15 | ||||
| Custodian fees | 172 | ||||
| Other | 1,609 | ||||
| Total expenses before reimbursed/waived expenses | 38,902 | ||||
| Earnings credit (Note 5) | (64 | ) | |||
| Expenses reimbursed by adviser | (32,633 | ) | |||
| Net Expenses | 6,205 | ||||
NET INVESTMENT INCOME | 8,987 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (165,653 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 36,678 | ||||
| Net realized/ unrealized losses from investments | (128,975 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (119,988 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 61
Statements of Changes in Net Assets
| Nationwide Value Fund | ||||||||||
| Six Months Ended | Period Ended | |||||||||
| April 30, 2009 | October 31, 2008 (a) | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 8,987 | $ | 9,547 | ||||||
| Net realized losses from investment transactions | (165,653 | ) | (96,207 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 36,678 | (309,437 | ) | |||||||
| Change in net assets resulting from operations | (119,988 | ) | (396,097 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (7,660 | ) | (1,271 | ) | ||||||
| Class C | (702 | ) | – | |||||||
| Class R2 (b) | (78 | ) | (7 | ) | ||||||
| Institutional Class | (9,429 | ) | (3,953 | ) | ||||||
| Change in net assets from shareholder distributions | (17,869 | ) | (5,231 | ) | ||||||
| Change in net assets from capital transactions | 317,297 | 1,676,160 | ||||||||
| Change in net assets | 179,440 | 1,274,832 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 1,274,832 | – | ||||||||
| End of period | $ | 1,454,272 | $ | 1,274,832 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 1,261 | $ | 10,143 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 280,187 | $ | 654,176 | ||||||
| Dividends reinvested | 7,660 | 1,261 | ||||||||
| Cost of shares redeemed (c) | (10,107 | ) | (3,059 | ) | ||||||
| Total Class A | 277,740 | 652,378 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 29,370 | 39,998 | ||||||||
| Dividends reinvested | 702 | – | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class C | 30,072 | 39,998 | ||||||||
Class R2 Shares (b) | ||||||||||
| Proceeds from shares issued | – | 9,999 | ||||||||
| Dividends reinvested | 78 | 7 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class R2 | 78 | 10,006 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | For the period from February 27, 2008 (commencement of operations) through October 31, 2008. |
| (b) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (c) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
62 Semiannual Report 2009
| Nationwide Value Fund | ||||||||||
| Six Months Ended | Period Ended | |||||||||
| April 30, 2009 | October 31, 2008 (a) | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | $ | – | $ | 969,825 | ||||||
| Dividends reinvested | 9,407 | 3,953 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Class | 9,407 | 973,778 | ||||||||
| Change in net assets from capital transactions: | $ | 317,297 | $ | 1,676,160 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 45,038 | 72,064 | ||||||||
| Reinvested | 1,191 | 136 | ||||||||
| Redeemed | (1,624 | ) | (360 | ) | ||||||
| Total Class A Shares | 44,605 | 71,840 | ||||||||
Class C Shares | ||||||||||
| Issued | 4,437 | 5,098 | ||||||||
| Reinvested | 107 | – | ||||||||
| Redeemed | – | – | ||||||||
| Total Class C Shares | 4,544 | 5,098 | ||||||||
Class R2 Shares (b) | ||||||||||
| Issued | – | 1,000 | ||||||||
| Reinvested | 12 | 1 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class R2 Shares | 12 | 1,001 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | – | 97,001 | ||||||||
| Reinvested | 1,470 | 424 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Class Shares | 1,470 | 97,425 | ||||||||
| Total change in shares: | 50,631 | 175,364 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | For the period from February 27, 2008 (commencement of operations) through October 31, 2008. |
| (b) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 63
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (h) | $ | 7 | .26 | 0 | .04 | (0 | .78) | (0 | .74) | (0 | .09) | (0 | .09) | – | $ | 6 | .43 | (10 | .22%) | $ | 748,951 | 1 | .12% | 1 | .33% | 6 | .43% | 17 | .88% | ||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (h) | $ | 7 | .25 | 0 | .02 | (0 | .79) | (0 | .77) | (0 | .07) | (0 | .07) | – | $ | 6 | .41 | (10 | .58%) | $ | 61,819 | 1 | .73% | 0 | .58% | 7 | .14% | 17 | .88% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f) | $ | 10 | .00 | – | (2 | .75) | (2 | .75) | – | – | – | $ | 7 | .25 | (27 | .50%) | $ | 36,986 | 1 | .85% | 0 | .08% | 12 | .42% | 31 | .13% | |||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (h) | $ | 7 | .27 | 0 | .03 | (0 | .78) | (0 | .75) | (0 | .08) | (0 | .08) | – | $ | 6 | .44 | (10 | .35%) | $ | 6,520 | 1 | .39% | 1 | .10% | 6 | .70% | 17 | .88% | ||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (h) | $ | 7 | .27 | 0 | .05 | (0 | .78) | (0 | .73) | (0 | .10) | (0 | .10) | – | $ | 6 | .44 | (10 | .08%) | $ | 636,982 | 0 | .85% | 1 | .64% | 6 | .16% | 17 | .88% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | Per share calculations were performed using average shares outstanding during the period. |
The accompanying notes are in integral part of these financial statements.
64 Semiannual Report 2009
Nationwide Value Opportunities Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Value Opportunities Fund (Class A at NAV) registered −7.99% versus −8.40% for its benchmark, the Russell 2000® Index. For broader comparison, the average return for the Fund’s Lipper peer category of Small-Cap Core Funds (consisting of 794 funds as of April 30, 2009) was −5.21% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund benefited most from its investments in the financials sector. The Fund’s financials stocks registered −6.42% for the reporting period, which compared favorably to the benchmark sector return of −19.72% for the same period. Despite the carnage created in the real estate investment trust (REIT) sector, the Fund was able to find value in REITs. The Fund’s REIT holdings returned approximately 29.6% for the reporting period. On a stock-specific level, Ramco-Gershenson Properties Trust and LaSalle Hotel Properties were the standout performers for the Fund. Much of the performance can be attributed to a snapback in share prices after market conditions had caused overselling. In particular, LaSalle Hotel, which specializes in upscale and luxury full-service hotels, greatly benefited from strong quarterly earnings. LaSalle’s earnings were driven by aggressive expense reductions and exposure to the Washington, D.C., market during the time of the presidential inauguration.
What areas of investment detracted from Fund performance?
Relatively speaking, the information technology (IT) sector was the area that detracted most from Fund performance. ManTech International Corp., a leading provider of IT services to the U.S. federal government, witnessed weakness in its share price attributed to the surprise resignation of the firm’s well-regarded president. We believe that the sell-off in ManTech International was overdone, because the firm’s visibility remained above industry norms.
What is your outlook for the near term?
Although macroeconomic data points clearly are not universally positive, signs are emerging to indicate that certain sectors of the economy are close to stabilizing. Because the equity market historically has been a discounter of economic activity, we believe that the potential economic-bottoming process bodes well for the market as the year unfolds. In addition, small-capitalization stocks tend to outperform during economic recoveries, as was the case during the quarter ended March 31, 2009. Given the outlook for fundamentals and the fact that stocks have returned to being judged on such fundamentals, our outlook for equities remains positive.
Subadviser:
NorthPointe Capital® LLC
NorthPointe Capital® LLC
Portfolio Managers:
Peter J. Cahill, CFA; Mary C. Champagne, CFA; and
Jeffrey C. Petherick, CFA
Peter J. Cahill, CFA; Mary C. Champagne, CFA; and
Jeffrey C. Petherick, CFA
2009 Semiannual Report 65
| Fund Performance | Nationwide Value Opportunities Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Months** | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | -7.99% | -32.68% | -3.99% | 3.03% | |||||||||||||
| w/SC3 | -13.33% | -36.55% | -5.12% | 2.38% | ||||||||||||||
| Class B | w/o SC2 | -8.22% | -33.36% | -4.68% | 2.34% | |||||||||||||
| w/SC4 | -12.53% | -36.68% | -4.87% | 2.34% | ||||||||||||||
Class C5 | w/o SC2 | -8.32% | -33.17% | -4.63% | 2.35% | |||||||||||||
| w/SC6 | -9.24% | -33.83% | -4.63% | 2.35% | ||||||||||||||
Class R27,9,10 | -8.60% | -33.26% | -4.30% | 2.57% | ||||||||||||||
Institutional Class8,9 | -7.78% | -32.45% | -3.70% | 2.89% | ||||||||||||||
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.
| * | Not annualized. | |
| 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 R2 shares (12/30/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R2 shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R2 shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because the Class R2 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. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 1.76% | 1.40% | ||||||||
| Class B | 2.46% | 2.10% | ||||||||
| Class C | 2.46% | 2.10% | ||||||||
| Class R2 | 2.16% | 1.80% | ||||||||
| Institutional Class | 1.46% | 1.10% | ||||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 capitalizations of other U.S. companies. | |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
66 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Value Opportunities Fund | 11/01/08 | 04/30/09 | 11/1/08 - 04/30/09 a | 11/1/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 920.06 | 6.65 | 1.40 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.86 | 7.02 | 1.40 | |||||||||||||||
| Class B | Actual | 1,000.00 | 917.80 | 9.99 | 2.10 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.38 | 10.54 | 2.10 | |||||||||||||||
| Class C | Actual | 1,000.00 | 916.76 | 9.98 | 2.10 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.38 | 10.54 | 2.10 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 913.99 | 7.52 | 1.59 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.93 | 7.96 | 1.59 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 922.24 | 5.24 | 1.10 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.34 | 5.52 | 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 the SEC guidelines. | |
| b | Represent the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2008 Semiannual Report 67
| Portfolio Summary | Nationwide Value Opportunities Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 98 | .5% | ||
| Repurchase Agreements | 1 | .1% | ||
| Other assets in excess of liabilities | 0 | .4% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Real Estate Investment Trusts | 7 | .6% | ||
| Commercial Banks | 5 | .8% | ||
| Software | 5 | .1% | ||
| Insurance | 4 | .5% | ||
| Specialty Retail | 4 | .4% | ||
| Health Care Providers & Services | 3 | .7% | ||
| Biotechnology | 3 | .7% | ||
| Semiconductors & Semiconductor Equipment | 3 | .1% | ||
| Communications Equipment | 3 | .0% | ||
| Electric Utilities | 3 | .0% | ||
| Other Industries* | 56 | .1% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Health Management Associates, Inc., Class A | 2 | .6% | ||
| LaSalle Hotel Properties | 1 | .8% | ||
| WESCO International, Inc. | 1 | .7% | ||
| Bally Technologies, Inc. | 1 | .7% | ||
| Axsys Technologies, Inc. | 1 | .6% | ||
| Portfolio Recovery Associates, Inc. | 1 | .6% | ||
| Anaren, Inc. | 1 | .5% | ||
| BWAY Holding Co. | 1 | .5% | ||
| Sterling Bancorp | 1 | .4% | ||
| Tupperware Brands Corp. | 1 | .4% | ||
| Other Holdings* | 83 | .2% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
68 Semiannual Report 2008
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Value Opportunities Fund
| Common Stocks 98.5% | ||||||||
Shares | Market Value | |||||||
Aerospace & Defense 2.2% | ||||||||
| Axsys Technologies, Inc.* | 2,200 | $ | 92,202 | |||||
| TransDigm Group, Inc.* | 1,000 | 35,140 | ||||||
| 127,342 | ||||||||
Airlines 1.9% | ||||||||
| Allegiant Travel Co.* | 1,300 | 67,652 | ||||||
| Republic Airways Holdings, Inc.* | 6,100 | 43,676 | ||||||
| 111,328 | ||||||||
Biotechnology 3.7% | ||||||||
| Emergent Biosolutions, Inc.* | 3,200 | 34,272 | ||||||
| ImmunoGen, Inc.* | 9,700 | 67,415 | ||||||
| Myriad Genetics, Inc.* | 1,100 | 42,669 | ||||||
| Osiris Therapeutics, Inc.* | 1,900 | 24,073 | ||||||
| PDL BioPharma, Inc. | 6,800 | 48,620 | ||||||
| 217,049 | ||||||||
Building Products 1.4% | ||||||||
| AAON, Inc. | 1,900 | 37,012 | ||||||
| Armstrong World Industries, Inc.* | 2,300 | 41,814 | ||||||
| 78,826 | ||||||||
Capital Markets 1.9% | ||||||||
| BGC Partners, Inc., Class A | 10,500 | 27,195 | ||||||
| Hercules Technology Growth Capital, Inc. | 7,286 | 43,789 | ||||||
| Prospect Capital Corp. | 4,200 | 38,094 | ||||||
| 109,078 | ||||||||
Chemicals 1.4% | ||||||||
| Scotts Miracle-Gro Co. (The), Class A | 1,300 | 43,901 | ||||||
| Solutia, Inc.* | 10,500 | 39,480 | ||||||
| 83,381 | ||||||||
Commercial Banks 5.8% | ||||||||
| Bank of the Ozarks, Inc. | 2,300 | 57,109 | ||||||
| First Commonwealth Financial Corp. | 3,300 | 28,611 | ||||||
| Lakeland Bancorp, Inc. | 3,600 | 30,636 | ||||||
| MB Financial, Inc. | 2,000 | 27,260 | ||||||
| Sterling Bancorp | 7,300 | 83,512 | ||||||
| Suffolk Bancorp | 2,100 | 53,760 | ||||||
| Trustmark Corp. | 2,600 | 56,524 | ||||||
| 337,412 | ||||||||
Commercial Services & Supplies 2.1% | ||||||||
| ATC Technology Corp.* | 2,700 | 42,903 | ||||||
| Deluxe Corp. | 2,900 | 42,050 | ||||||
| Knoll, Inc. | 5,400 | 38,232 | ||||||
| 123,185 | ||||||||
Communications Equipment 3.0% | ||||||||
| Anaren, Inc.* | 6,600 | 85,866 | ||||||
| Avocent Corp.* | 2,700 | 38,988 | ||||||
| InterDigital, Inc.* | 2,000 | 52,640 | ||||||
| 177,494 | ||||||||
Computers & Peripherals 1.3% | ||||||||
| Synaptics, Inc.* | 2,400 | 77,952 | ||||||
Construction & Engineering 1.3% | ||||||||
| MasTec, Inc.* | 6,100 | 76,311 | ||||||
Containers & Packaging 2.8% | ||||||||
| BWAY Holding Co.* | 9,100 | 84,812 | ||||||
| Temple-Inland, Inc. | 6,400 | 76,416 | ||||||
| 161,228 | ||||||||
Diversified Financial Services 1.6% | ||||||||
| Portfolio Recovery Associates, Inc.* | 2,600 | 90,922 | ||||||
Diversified Telecommunication Services 0.8% | ||||||||
| Alaska Communications Systems Group, Inc. | 3,600 | 21,708 | ||||||
| NTELOS Holdings Corp. | 1,480 | 23,650 | ||||||
| 45,358 | ||||||||
Electric Utilities 3.0% | ||||||||
| Empire District Electric Co. (The) | 4,900 | 73,353 | ||||||
| IDACORP, Inc. | 2,500 | 59,925 | ||||||
| Westar Energy, Inc. | 2,200 | 38,566 | ||||||
| 171,844 | ||||||||
Electronic Equipment & Instruments 1.3% | ||||||||
| ScanSource, Inc.* | 3,100 | 76,601 | ||||||
Energy Equipment & Services 1.1% | ||||||||
| CARBO Ceramics, Inc. | 800 | 24,568 | ||||||
| Oil States International, Inc.* | 2,200 | 41,580 | ||||||
| �� | ||||||||
| 66,148 | ||||||||
Food & Staples Retailing 1.6% | ||||||||
| BJ’s Wholesale Club, Inc.* | 1,500 | 50,010 | ||||||
| Casey’s General Stores, Inc. | 1,700 | 45,237 | ||||||
| 95,247 | ||||||||
Food Products 2.2% | ||||||||
| Diamond Foods, Inc. | 2,500 | 65,475 | ||||||
| Omega Protein Corp.* | 8,100 | 25,839 | ||||||
| Ralcorp Holdings, Inc.* | 600 | 34,296 | ||||||
| 125,610 | ||||||||
2008 Semiannual Report 69
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Value Opportunities Fund (Continued)
Common Stocks (continued) | ||||||||
Shares | Market Value | |||||||
Health Care Equipment & Supplies 2.4% | ||||||||
| Cyberonics, Inc.* | 5,900 | $ | 78,116 | |||||
| Kinetic Concepts, Inc.* | 2,400 | 59,424 | ||||||
| 137,540 | ||||||||
Health Care Providers & Services 3.7% | ||||||||
| Gentiva Health Services, Inc.* | 1,200 | 19,116 | ||||||
| Health Management Associates, Inc., Class A* | 32,300 | 150,841 | ||||||
| HealthSpring, Inc.* | 5,200 | 47,996 | ||||||
| 217,953 | ||||||||
Health Care Technology 1.0% | ||||||||
| MedAssets, Inc.* | 3,500 | 60,340 | ||||||
Hotels, Restaurants & Leisure 2.8% | ||||||||
| Bally Technologies, Inc.* | 3,800 | 99,484 | ||||||
| WMS Industries, Inc.* | 2,000 | 64,220 | ||||||
| 163,704 | ||||||||
Household Durables 2.4% | ||||||||
| Jarden Corp.* | 2,900 | 58,290 | ||||||
| Tupperware Brands Corp. | 3,300 | 82,599 | ||||||
| 140,889 | ||||||||
Information Technology Services 1.0% | ||||||||
| ManTech International Corp., Class A* | 1,600 | 57,904 | ||||||
Insurance 4.5% | ||||||||
| Amerisafe, Inc.* | 4,050 | 62,208 | ||||||
| Amtrust Financial Services, Inc. | 8,000 | 73,040 | ||||||
| Navigators Group, Inc.* | 1,300 | 58,994 | ||||||
| Platinum Underwriters Holdings Ltd. | 2,300 | 66,171 | ||||||
| 260,413 | ||||||||
Internet & Catalog Retail 0.7% | ||||||||
| Netflix, Inc.* | 900 | 40,779 | ||||||
Internet Software & Services 2.9% | ||||||||
| j2 Global Communications, Inc.* | 2,400 | 57,576 | ||||||
| S1 Corp.* | 6,100 | 37,820 | ||||||
| Sohu.com, Inc.* | 1,400 | 73,010 | ||||||
| 168,406 | ||||||||
Leisure Equipment & Products 0.9% | ||||||||
| JAKKS Pacific, Inc.* | 4,300 | 54,395 | ||||||
Life Sciences Tools & Services 1.1% | ||||||||
| Kendle International, Inc.* | 2,900 | 25,810 | ||||||
| PAREXEL International Corp.* | 3,600 | 35,676 | ||||||
| 61,486 | ||||||||
Machinery 2.3% | ||||||||
| Briggs & Stratton Corp. | 2,400 | 35,712 | ||||||
| CIRCOR International, Inc. | 2,300 | 59,179 | ||||||
| ESCO Technologies, Inc.* | 1,000 | 41,580 | ||||||
| 136,471 | ||||||||
Media 0.9% | ||||||||
| RCN Corp.* | 7,600 | 31,160 | ||||||
| Sinclair Broadcast Group, Inc., Class A | 16,800 | 18,648 | ||||||
| 49,808 | ||||||||
Multi-Utility 1.2% | ||||||||
| CMS Energy Corp. | 3,500 | 42,070 | ||||||
| Vectren Corp. | 1,300 | 28,821 | ||||||
| 70,891 | ||||||||
Oil, Gas & Consumable Fuels 2.8% | ||||||||
| Natural Resource Partners LP | 2,300 | 52,693 | ||||||
| Southern Union Co. | 3,500 | 55,685 | ||||||
| Tesoro Corp. | 3,600 | 54,900 | ||||||
| 163,278 | ||||||||
Pharmaceuticals 2.0% | ||||||||
| Questcor Pharmaceuticals, Inc.* | 7,300 | 32,850 | ||||||
| Sepracor, Inc.* | 1,700 | 24,157 | ||||||
| Valeant Pharmaceuticals International* | 3,600 | 60,336 | ||||||
| 117,343 | ||||||||
Professional Services 2.0% | ||||||||
| Huron Consulting Group, Inc.* | 1,200 | 57,540 | ||||||
| On Assignment, Inc.* | 16,500 | 58,080 | ||||||
| 115,620 | ||||||||
Real Estate Investment Trusts 7.6% | ||||||||
| First Industrial Realty Trust, Inc. | 11,500 | 43,355 | ||||||
| Hersha Hospitality Trust | 13,800 | 50,370 | ||||||
| LaSalle Hotel Properties | 8,500 | 101,660 | ||||||
| Lexington Realty Trust | 14,893 | 57,338 | ||||||
| NorthStar Realty Finance Corp. | 12,745 | 40,402 | ||||||
| Pennsylvania Real Estate Investment Trust | 8,300 | 64,325 | ||||||
| Ramco-Gershenson Properties Trust | 7,500 | 82,500 | ||||||
| 439,950 | ||||||||
Semiconductors & Semiconductor Equipment 3.1% | ||||||||
| Ceva, Inc.* | 7,900 | 65,175 | ||||||
| FEI Co.* | 3,600 | 61,848 | ||||||
| Standard Microsystems Corp.* | 3,200 | 50,752 | ||||||
| 177,775 | ||||||||
Software 5.1% | ||||||||
| Concur Technologies, Inc.* | 2,400 | 64,968 | ||||||
| Interactive Intelligence, Inc.* | 7,000 | 77,000 | ||||||
| NetScout Systems, Inc.* | 5,900 | 53,041 | ||||||
| TeleCommunication Systems, Inc., Class A* | 6,600 | 64,746 | ||||||
70 Semiannual Report 2008
Common Stocks (continued) | ||||||||
Shares | Market Value | |||||||
Software (continued) | ||||||||
| Tyler Technologies, Inc.* | 2,300 | $ | 37,950 | |||||
| 297,705 | ||||||||
Specialty Retail 4.4% | ||||||||
| Aaron Rents, Inc. | 1,800 | 60,408 | ||||||
| Aeropostale, Inc.* | 2,200 | 74,734 | ||||||
| Buckle, Inc. (The) | 2,000 | 74,740 | ||||||
| Genesco, Inc.* | 2,100 | 47,838 | ||||||
| 257,720 | ||||||||
Textiles, Apparel & Luxury Goods 1.6% | ||||||||
| Deckers Outdoor Corp.* | 900 | 50,868 | ||||||
| Perry Ellis International, Inc.* | 5,500 | 40,315 | ||||||
| 91,183 | ||||||||
Trading Companies & Distributors 1.7% | ||||||||
| WESCO International, Inc.* | 3,900 | 101,400 | ||||||
Total Common Stocks (cost $6,270,852) | 5,735,269 | |||||||
| Repurchase Agreements 1.1% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $22,415, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $22,863 | $ | 22,415 | 22,415 | |||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $42,336, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $43,183 | 42,336 | 42,336 | ||||||
Total Repurchase Agreements (cost $64,751) | 64,751 | |||||||
Total Investments (cost $6,335,603) (a) — 99.6% | 5,800,020 | |||||||
Other assets in excess of liabilities — 0.4% | 23,239 | |||||||
NET ASSETS — 100.0% | $ | 5,823,259 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| LP | Limited Partnership | |
| Ltd | Limited |
The accompanying notes are an integral part of these financial statements.
2008 Semiannual Report 71
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide Value | |||||
| Opportunities Fund | |||||
Assets: | |||||
| Investments, at value (cost $6,270,852) | $ | 5,735,269 | |||
| Repurchase agreements, at value and cost | 64,751 | ||||
| Total Investments | 5,800,020 | ||||
| Interest and dividends receivable | 2,165 | ||||
| Receivable for capital shares issued | 934 | ||||
| Receivable from adviser | 6,453 | ||||
| Prepaid expenses and other assets | 24,708 | ||||
| Total Assets | 5,834,280 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 304 | ||||
| Accrued expenses and other payables: | |||||
| Fund administration fees | 597 | ||||
| Distribution fees | 1,481 | ||||
| Administrative services fees | 5,831 | ||||
| Trustee fees | 42 | ||||
| Compliance program costs (Note 3) | 107 | ||||
| Custodian fees | 343 | ||||
| Printing fees | 1,603 | ||||
| Professional fees | 335 | ||||
| Other | 378 | ||||
| Total Liabilities | 11,021 | ||||
Net Assets | $ | 5,823,259 | |||
Represented by: | |||||
| Capital | $ | 11,156,655 | |||
| Accumulated undistributed net investment income | 630 | ||||
| Accumulated net realized losses from investment transactions | (4,798,443 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (535,583 | ) | |||
Net Assets | $ | 5,823,259 | |||
Net Assets: | |||||
| Class A Shares | $ | 5,244,698 | |||
| Class B Shares | 373,777 | ||||
| Class C Shares | 203,167 | ||||
| Class R2 Shares (a) | 807 | ||||
| Institutional Class Shares | 810 | ||||
| Total | $ | 5,823,259 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 784,817 | ||||
| Class B Shares | 59,292 | ||||
| Class C Shares | 32,429 | ||||
| Class R2 Shares (a) | 126 | ||||
| Institutional Class Shares | 118 | ||||
| Total | 876,782 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
72 Semiannual Report 2008
| Nationwide Value | |||||
| Opportunities Fund | |||||
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 B Shares (b) | $ | 6.30 | (e) | ||
| Class C Shares (c) | $ | 6.26 | |||
| Class R2 Shares (a) | $ | 6.44 | (d) | ||
| Institutional Class Shares | $ | 6.89 | (d) | ||
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 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. | |
| (d) | The NAV reported above represents the traded NAV at April 30, 2009. | |
| (e) | NAV shown differs from traded NAV at April 30, 2009 due to financial statement adjustments. |
The accompanying notes are an integral part of these financial statements.
2008 Semiannual Report 73
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide Value | |||||
| Opportunities Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 31 | |||
| Dividend income | 71,807 | ||||
| Total Income | 71,838 | ||||
EXPENSES: | |||||
| Investment advisory fees | 19,487 | ||||
| Fund administration fees | 3,495 | ||||
| Distribution fees Class A | 6,253 | ||||
| Distribution fees Class B | 2,004 | ||||
| Distribution fees Class C | 815 | ||||
| Distribution fees Class R2 (a) | 2 | ||||
| Administrative services fees Class A | 1,193 | ||||
| Registration and filing fees | 48,398 | ||||
| Professional fees | 567 | ||||
| Printing fees | 6,483 | ||||
| Trustee fees | 218 | ||||
| Compliance program costs (Note 3) | 61 | ||||
| Custodian fees | 2,114 | ||||
| Other | 3,862 | ||||
| Total expenses before reimbursed/waived expenses | 94,952 | ||||
| Earnings credit (Note 5) | (629 | ) | |||
| Expenses reimbursed by adviser | (54,062 | ) | |||
| Net Expenses | 40,261 | ||||
NET INVESTMENT INCOME | 31,577 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (2,182,736 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 1,567,840 | ||||
| Net realized/unrealized losses from investments | (614,896 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (583,319 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
74 Semiannual Report 2008
Statements of Changes in Net Assets
| Nationwide Value Opportunities Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income/(loss) | $ | 31,577 | $ | (10,990 | ) | |||||
| Net realized losses from investment transactions | (2,182,736 | ) | (2,583,751 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,567,840 | (2,190,184 | ) | |||||||
| Change in net assets resulting from operations | (583,319 | ) | (4,784,925 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (29,010 | ) | (2,437 | ) | ||||||
| Class B | (1,234 | ) | (426 | ) | ||||||
| Class C | (694 | ) | (80 | ) | ||||||
| Class R2 (a) | (4 | ) | – | |||||||
| Institutional Class | (5 | ) | – | |||||||
| Net realized gains: | ||||||||||
| Class A | – | (1,642,424 | ) | |||||||
| Class B | – | (328,226 | ) | |||||||
| Class C | – | (76,783 | ) | |||||||
| Class R2 (a) | – | (224 | ) | |||||||
| Institutional Class | – | (211 | ) | |||||||
| Return of capital: | ||||||||||
| Class A | – | (13,171 | ) | |||||||
| Class B | – | (2,304 | ) | |||||||
| Class C | – | (431 | ) | |||||||
| Class R2 (a) | – | (2 | ) | |||||||
| Institutional Class | – | (2 | ) | |||||||
| Change in net assets from shareholder distributions | (30,947 | ) | (2,066,721 | ) | ||||||
| Change in net assets from capital transactions | (378,308 | ) | (67,867 | ) | ||||||
| Change in net assets | (992,574 | ) | (6,919,513 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 6,815,833 | 13,735,346 | ||||||||
| End of period | $ | 5,823,259 | $ | 6,815,833 | ||||||
| Accumulated undistributed net investment income/(loss) at end of period | $ | 630 | $ | – | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 314,950 | $ | 1,990,007 | ||||||
| Dividends reinvested | 28,228 | 1,610,135 | ||||||||
| Cost of shares redeemed (b) | (652,461 | ) | (2,772,699 | ) | ||||||
| Total Class A | (309,283 | ) | 827,443 | |||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 9,434 | 51,217 | ||||||||
| Dividends reinvested | 1,179 | 317,571 | ||||||||
| Cost of shares redeemed (b) | (106,983 | ) | (1,173,525 | ) | ||||||
| Total Class B | (96,370 | ) | (804,737 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2008 Semiannual Report 75
Statements of Changes in Net Assets (Continued)
| Nationwide Value Opportunities Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 39,161 | $ | 81,685 | ||||||
| Dividends reinvested | 449 | 35,013 | ||||||||
| Cost of shares redeemed (b) | (12,274 | ) | (207,711 | ) | ||||||
| Total Class C | 27,336 | (91,013 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 4 | 226 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class R2 | 4 | 226 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 5 | 214 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Class | 5 | 214 | ||||||||
| Change in net assets from capital transactions: | $ | (378,308 | ) | $ | (67,867 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 50,931 | 195,844 | ||||||||
| Reinvested | 5,316 | 145,932 | ||||||||
| Redeemed | (106,363 | ) | (275,909 | ) | ||||||
| Total Class A Shares | (50,116 | ) | 65,867 | |||||||
Class B Shares | ||||||||||
| Issued | 1,533 | 5,835 | ||||||||
| Reinvested | 236 | 30,373 | ||||||||
| Redeemed | (18,231 | ) | (122,715 | ) | ||||||
| Total Class B Shares | (16,462 | ) | (86,507 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 6,914 | 8,208 | ||||||||
| Reinvested | 90 | 3,365 | ||||||||
| Redeemed | (1,994 | ) | (21,936 | ) | ||||||
| Total Class C Shares | 5,010 | (10,363 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 1 | 21 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class R2 Shares | 1 | 21 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 1 | 19 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Class Shares | 1 | 19 | ||||||||
| Total change in shares: | (61,566 | ) | (30,963 | ) | ||||||
76 Semiannual Report 2008
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Value Opportunities Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Return | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | of | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .31 | 0 | .04 | (0 | .63) | (0 | .59) | (0 | .04) | – | – | (0 | .04) | – | $ | 6 | .68 | (7 | .99%) | $ | 5,244,698 | 1 | .40% | 1 | .18% | 3 | .34% | 64 | .63% | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 14 | .30 | (0 | .01) | (4 | .80) | (4 | .81) | – | (2 | .16) | (0 | .02) | (2 | .18) | – | $ | 7 | .31 | (38 | .76%) | $ | 6,103,841 | 1 | .42% | (0 | .05%) | 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 | – | 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 | – | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 6 | .89 | 0 | .02 | (0 | .59) | (0 | .57) | (0 | .02) | – | – | (0 | .02) | – | $ | 6 | .30 | (8 | .22%) | $ | 373,777 | 2 | .10% | 0 | .61% | 4 | .05% | 64 | .63% | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .68 | (0 | .05) | (4 | .57) | (4 | .62) | – | (2 | .16) | (0 | .01) | (2 | .17) | – | $ | 6 | .89 | (39 | .20%) | $ | 522,074 | 2 | .10% | (0 | .40%) | 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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 6 | .86 | 0 | .01 | (0 | .59) | (0 | .58) | (0 | .02) | – | – | (0 | .02) | – | $ | 6 | .26 | (8 | .32%) | $ | 203,167 | 2 | .10% | 0 | .31% | 4 | .04% | 64 | .63% | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .63 | (0 | .05) | (4 | .55) | (4 | .60) | – | (2 | .16) | (0 | .01) | (2 | .17) | – | $ | 6 | .86 | (39 | .20%) | $ | 188,157 | 2 | .09% | (0 | .53%) | 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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are in integral part of these financial statements.
2008 Semiannual Report 77
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Value Opportunities Fund (Continued)
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Return | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | of | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | capital | Distributions | Fees | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares(h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .09 | 0 | .03 | (0 | .65) | (0 | .62) | (0 | .03) | – | – | (0 | .03) | – | $ | 6 | .44 | (8 | .60%) | $ | 807 | 1 | .59% | 1 | .07% | 3 | .31% | 64 | .63% | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .97 | (0 | .04) | (4 | .66) | (4 | .70) | – | (2 | .16) | (0 | .02) | (2 | .18) | – | $ | 7 | .09 | (38 | .95%) | $ | 883 | 1 | .71% | (0 | .43%) | 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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .53 | 0 | .05 | (0 | .65) | (0 | .60) | (0 | .04) | – | – | (0 | .04) | – | $ | 6 | .89 | (7 | .78%) | $ | 810 | 1 | .10% | 1 | .55% | 2 | .82% | 64 | .63% | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 14 | .63 | 0 | .02 | (4 | .93) | (4 | .91) | – | (2 | .16) | (0 | .03) | (2 | .19) | – | $ | 7 | .53 | (38 | .58%) | $ | 878 | 1 | .08% | 0 | .20% | 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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–” are zero or have been rounded to zero. (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are in integral part of these financial statements.
78 Semiannual Report 2008
Nationwide Bond Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Bond Fund (Class A at NAV) returned 4.19% versus 7.74% for its benchmark, the Barclays Capital (BARCAP) 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 164 funds as of April 30, 2009) was 5.77% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s investment-grade corporate bonds were the best performers relative to the benchmark during the reporting period. The Fund’s holdings in high-yield automobile finance bonds also proved to be strong performers. The financial markets began pricing in a depression-type economic scenario in the fourth quarter of 2008, which began with the bankruptcy of Lehman Brothers Holdings Inc. As the massive global stimulus and worldwide support of the banking system took hold, the U.S. economy showed signs of recovery.
What areas of investment detracted from Fund performance?
The worst-performing securities in the Fund during the reporting period were collateralized mortgage obligations (CMO), which fell sharply in price due to concerns about the health of the U.S. housing market. The Fund’s preferred stocks in the financials sector also performed poorly during the reporting period.
What is your outlook for the near term?
The recent data flow suggests that the recession is in its latter stages. The recovery process could be slow and uneven, however, due in part to what is likely to be a drawn-out rebuilding of balance sheets and a gradual return to healthy credit conditions. Markets would remain volatile with an upward bias in this scenario. The apparent fragility of the financial system leaves the both the financial markets and the economy at large, predisposed to the downside over the near term.
Subadviser:
Nationwide Asset Management, LLC
Nationwide Asset Management, LLC
Portfolio Managers:
Gary S. Davis, CFA
Gary S. Davis, CFA
2009 Semiannual Report 79
| Fund Performance | Nationwide Bond Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC2 | 4.19% | -2.66% | 2.91% | 4.42% | |||||||||||||
| w/SC3 | -0.29% | -6.77% | 2.01% | 3.97% | ||||||||||||||
Class B4 | w/o SC2 | 3.83% | -3.37% | 2.22% | 3.76% | |||||||||||||
| w/SC5 | -1.17% | -7.99% | 1.88% | 3.76% | ||||||||||||||
Class C6 | w/o SC2 | 3.83% | -3.36% | 2.22% | 3.88% | |||||||||||||
| w/SC7 | 2.83% | -4.28% | 2.22% | 3.88% | ||||||||||||||
| Class D | w/o SC2 | 4.32% | -2.42% | 3.20% | 4.68% | |||||||||||||
| w/SC8 | -0.37% | -6.81% | 2.26% | 4.20% | ||||||||||||||
Class R21,9,10 | 3.90% | -3.05% | 2.67% | 4.36% | ||||||||||||||
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 | 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 R2 shares (10/1/03). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 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, which are no longer offered by the Fund. 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, which are no longer offered by the Fund. 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 shares within the first year after purchase. | |
| 8 | A 4.50% front-end sales charge was deducted. | |
| 9 | Not subject to any sales charges. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 1.12% | 1.09% | ||||||||
| Class B | 1.78% | 1.75% | ||||||||
| Class C | 1.78% | 1.75% | ||||||||
| Class D | 0.83% | 0.80% | ||||||||
| Class R2 | 1.48% | 1.45% | ||||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital U.S. Aggregate Bond Index(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 4/30/09. 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 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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
80 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Bond Fund | 11/01/08 | 04/30/09 | 11/1/08 - 04/30/09 a | 11/1/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,041.87 | 5.93 | 1.17 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.99 | 5.88 | 1.17 | |||||||||||||||
| Class B | Actual | 1,000.00 | 1,038.31 | 9.34 | 1.85 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1015.63 | 9.28 | 1.85 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,038.29 | 9.41 | 1.86 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.56 | 9.34 | 1.86 | |||||||||||||||
| Class D | Actual | 1,000.00 | 1,043.23 | 4.46 | 0.88 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.43 | 4.42 | 0.88 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 1,039.03 | 7.53 | 1.49 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.41 | 7.48 | 1.49 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 81
| Portfolio Summary | Nationwide Bond Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Corporate Bonds | 45 | .0% | ||
| Commercial Mortgage Backed Securities | 16 | .8% | ||
| U.S. Government Sponsored Mortgage-Backed Obligations | 10 | .4% | ||
| Collateralized Mortgage Obligations | 8 | .4% | ||
| Repurchase Agreements | 8 | .3% | ||
| U.S. Government Sponsored & Agency Obligations | 4 | .1% | ||
| Asset-Backed Securities | 3 | .5% | ||
| Yankee Dollars | 1 | .4% | ||
| Municipal Bonds | 1 | .1% | ||
| Other assets in excess of liabilities | 1 | .0% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Airlines | 5 | .0% | ||
| Diversified Financial Services | 4 | .3% | ||
| Telecommunications | 4 | .2% | ||
| Other ABS | 3 | .5% | ||
| Media | 2 | .7% | ||
| Pharmaceuticals | 2 | .7% | ||
| Banks | 2 | .6% | ||
| Beverages | 2 | .6% | ||
| Insurance | 2 | .6% | ||
| Mining | 2 | .6% | ||
| Other Industries* | 67 | .2% | ||
| 100 | .0% | |||
| Top Holdings | ||||
Fannie Mae Grantor Trust, Series 2000-T5, Class B, 7.30%, 05/25/10 | 3 | .9% | ||
| Fannie Mae Pool, Pool # AA6943, 4.50%, 05/01/39 | 3 | .7% | ||
| Freddie Mac Gold Pool, Pool # E01443, 3.50%, 07/01/18 | 3 | .0% | ||
Fannie Mae REMICS, Series 2003-33, Class LB, 5.50%, 05/25/23 | 2 | .6% | ||
| U.S. Treasury Inflation Index Notes, 2.13%, 01/15/19 | 2 | .6% | ||
| Fannie Mae Pool, Pool # 383661, 6.62%, 06/01/16 | 2 | .5% | ||
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3, 6.26%, 03/15/33 | 2 | .3% | ||
UAL Pass Through Trust Series 2001-1, Series 2001-1, 6.93%, 09/01/11 | 1 | .6% | ||
| National Rural Utilities Cooperative Finance Corp., 10.38%, 11/01/18 | 1 | .5% | ||
| Eaton Corp., 8.88%, 06/15/19 | 1 | .4% | ||
| Other Holdings* | 74 | .9% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
82 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Bond Fund
| Asset-Backed Securities 3.5% | ||||||||
| Principal Amount | Market Value | |||||||
Other ABS 3.5% | ||||||||
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2001-4, Class 1A6, 6.24%, 01/25/13 | $ | 708,533 | $ | 582,991 | ||||
Ford Credit Floorplan Master Owner Trust, Series 2006-3, Class A, 0.63%, 06/15/11 (a) | 1,100,000 | 1,050,071 | ||||||
Residential Asset Mortgage Products, Inc., Series 2002-RS1, Class AI5, 5.91%, 01/25/32 | 622,871 | 444,937 | ||||||
Structured Asset Securities Corp., Series 2004-6XS, Class A6, 4.63%, 03/25/34 | 886,780 | 721,473 | ||||||
Total Asset-Backed Securities (cost $3,299,881) | 2,799,472 | |||||||
| Collateralized Mortgage Obligations 8.4% | ||||||||
ABN Amro Mortgage Corp., Series 2003-8, Class A23, 5.50%, 06/25/33 | 1,000,000 | 869,975 | ||||||
American Home Mortgage Investment Trust, Series 2004-3, Class 6A1, 4.82%, 10/25/34 (b) | 913,224 | 766,572 | ||||||
Countrywide Alternative Loan Trust, Series 2007-2CB, Class 2A14, 5.75%, 03/25/37 | 999,161 | 552,654 | ||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-15, Class A7, 5.50%, 08/25/35 | 1,000,000 | 669,547 | ||||||
Fannie Mae REMICS, Series 2003-33, Class LB, 5.50%, 05/25/23 | 2,000,000 | 2,101,045 | ||||||
MASTR Alternative Loans Trust, Series 2005-6, Class 1A5, 5.50%, 12/25/35 | 1,000,000 | 397,947 | ||||||
Opteum Mortgage Acceptance Corp., Series 2005-5, Class 2AN, 5.68%, 12/25/35 | 979,086 | 405,631 | ||||||
Residential Funding Securities LLC, Series 2003-RM2, Class AI3, 4.50%, 05/25/33 | 1,000,000 | 963,604 | ||||||
Total Collateralized Mortgage Obligations (cost $8,817,687) | 6,726,975 | |||||||
| Commercial Mortgage Backed Securities 16.8% | ||||||||
| Principal Amount | Market Value | |||||||
Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A3, 5.84%, 04/10/49 (a) | 1,000,000 | 781,485 | ||||||
Commercial Mortgage Pass Through Certificates, Series 2001-J1A, Class B, 6.61%, 02/14/34 (c) | 1,000,000 | 1,014,959 | ||||||
Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A3, 5.69%, 09/15/40 | 1,000,000 | 811,182 | ||||||
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A2, 4.94%, 12/15/35 | 955,000 | 922,866 | ||||||
Enterprise Mortgage Acceptance Co. LLC, Series 1998-1, Class A3, 6.63%, 01/15/25 | 385,920 | 301,662 | ||||||
Fannie Mae Grantor Trust, Series 2000-T5, Class B, 7.30%, 05/25/10 | 3,000,000 | 3,152,363 | ||||||
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A3, 5.72%, 12/10/49 | 1,000,000 | 746,358 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3, 6.26%, 03/15/33 | 1,820,896 | 1,848,839 | ||||||
LB Commercial Conduit Mortgage Trust, Series 2007-C3, Class A3, 5.92%, 07/15/44 (a) | 1,000,000 | 768,182 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A3, 5.48%, 11/15/30 (a) | 1,000,000 | 948,071 | ||||||
Merrill Lynch Mortgage Investors, Inc., Series 1999-C1, Class A2, 7.56%, 11/15/31 | 1,118,758 | 1,122,156 | ||||||
Nomura Asset Securities Corp., Series 1998-D6, Class A1C, 6.69%, 03/15/30 | 1,000,000 | 1,013,653 | ||||||
Total Commercial Mortgage Backed Securities (cost $14,165,793) | 13,431,776 | |||||||
2009 Semiannual Report 83
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Fund (Continued)
| Corporate Bonds 45.0% | ||||||||
| Principal Amount | Market Value | |||||||
Aerospace & Defense 1.3% | ||||||||
| General Dynamics Corp., 5.25%, 02/01/14 | $ | 1,000,000 | $ | 1,061,330 | ||||
Airlines 5.0% | ||||||||
American Airlines Pass Through Trust 1999, Series 1999-1, Class A-2, 7.02%, 10/15/09 | 750,000 | 727,500 | ||||||
| Continental Airlines, Inc. Pass Through Certificate, Series 974B, 6.90%, 01/02/17 | 1,146,613 | 814,095 | ||||||
| Delta Air Lines, Inc. Pass Through Certificate, Series 01A2, 7.11%, 09/18/11 | 1,000,000 | 880,000 | ||||||
Northwest Airlines, Inc. Pass Through Certificate, Series 01-C, 7.63%, 04/01/10 | 358,005 | 311,464 | ||||||
UAL Pass Through Trust Series 2001-1, Series 2001-1, 6.93%, 09/01/11 (d) | 1,000,000 | 1,260,000 | ||||||
| 3,993,059 | ||||||||
Banks 2.6% | ||||||||
| Bank of America Corp., 8.00%, 12/31/49 (a) | 1,000,000 | 568,140 | ||||||
| GMAC LLC, 6.75%, 12/01/14 (c) | 307,000 | 227,180 | ||||||
| JPMorgan Chase & Co., 7.90%, 04/29/49 (a) | 1,000,000 | 760,750 | ||||||
| Rabobank Capital Funding Trust, 5.25%, 12/29/49 (a) (c) | 1,000,000 | 550,000 | ||||||
| 2,106,070 | ||||||||
Beverages 2.6% | ||||||||
| Anheuser-Busch InBev Worldwide, Inc., 7.75%, 01/15/19 | 1,000,000 | 1,046,970 | ||||||
| SABMiller PLC, 6.50%, 07/15/18 (c) | 1,000,000 | 981,613 | ||||||
| 2,028,583 | ||||||||
Communications 0.9% | ||||||||
| Qwest Corp., 6.88%, 09/15/33 | 1,000,000 | 707,500 | ||||||
Computers 1.2% | ||||||||
| Digital Equipment Corp., 7.75%, 04/01/23 | 825,000 | 941,274 | ||||||
Diversified Financial Services 4.3% | ||||||||
| Ford Motor Credit Co. LLC, 7.38%, 02/01/11 | 500,000 | 430,029 | ||||||
| HSBC Finance Corp., 6.38%, 10/15/11 | 1,000,000 | 987,329 | ||||||
| National Rural Utilities Cooperative Finance Corp., 10.38%, 11/01/18 | 1,000,000 | 1,172,299 | ||||||
| Textron Financial Corp., 5.13%, 11/01/10 | 1,000,000 | 860,758 | ||||||
| 3,450,415 | ||||||||
Health Care Providers & Services 1.3% | ||||||||
| Quest Diagnostics, Inc., 5.13%, 11/01/10 | 1,000,000 | 1,005,142 | ||||||
Healthcare-Products 1.3% | ||||||||
| Covidien International Finance SA, 6.00%, 10/15/17 | 1,000,000 | 1,024,961 | ||||||
Insurance 2.6% | ||||||||
| Liberty Mutual Group, Inc., 7.30%, 06/15/14 (c) | 1,000,000 | 783,857 | ||||||
| Oil Insurance Ltd., 7.56%, 12/29/49 (a) (c) | 1,000,000 | 327,210 | ||||||
| Principal Life Income Funding Trusts, 5.30%, 12/14/12 | 1,000,000 | 924,359 | ||||||
| 2,035,426 | ||||||||
Media 2.7% | ||||||||
| Comcast Cable Holdings LLC, 9.80%, 02/01/12 | 1,000,000 | 1,078,045 | ||||||
| Time Warner Cable, Inc., 8.25%, 02/14/14 | 1,000,000 | 1,096,807 | ||||||
| 2,174,852 | ||||||||
Mining 1.2% | ||||||||
| Rio Tinto Finance USA Ltd., 5.88%, 07/15/13 | 1,000,000 | 942,950 | ||||||
Miscellaneous Manufacturing 2.6% | ||||||||
| Eaton Corp., 8.88%, 06/15/19 | 1,000,000 | 1,136,470 | ||||||
| General Electric Co., 5.25%, 12/06/17 | 1,000,000 | 946,300 | ||||||
| 2,082,770 | ||||||||
Oil & Gas 2.6% | ||||||||
| ConocoPhillips, 5.75%, 02/01/19 | 1,000,000 | 1,020,832 | ||||||
| EOG Resources, Inc., 6.13%, 10/01/13 | 1,000,000 | 1,066,663 | ||||||
| 2,087,495 | ||||||||
84 Semiannual Report 2009
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Oil & Gas Services 1.1% | ||||||||
| Weatherford International, Inc., 6.35%, 06/15/17 | $ | 1,000,000 | $ | 884,805 | ||||
Paper & Forest Products 0.6% (c) | ||||||||
| Stora Enso OYJ, 7.25%, 04/15/36 | 1,000,000 | 460,000 | ||||||
Pharmaceuticals 2.7% | ||||||||
| Novartis Securities Investment Ltd., 5.13%, 02/10/19 | 1,000,000 | 1,023,926 | ||||||
| Pfizer, Inc., 7.20%, 03/15/39 | 1,000,000 | 1,098,738 | ||||||
| 2,122,664 | ||||||||
Pipelines 1.2% | ||||||||
| Energy Transfer Partners LP, 5.65%, 08/01/12 | 1,000,000 | 985,942 | ||||||
Real Estate Investment Trusts 0.8% | ||||||||
| Highwoods Realty LP, 5.85%, 03/15/17 | 1,000,000 | 666,203 | ||||||
Retail 0.9% (c) | ||||||||
| CVS Pass-Through Trust, 6.94%, 01/10/30 | 975,164 | 751,978 | ||||||
Telecommunications 4.2% | ||||||||
| Cisco Systems, Inc., 4.95%, 02/15/19 | 1,000,000 | 1,017,781 | ||||||
| FairPoint Communications, Inc., 13.13%, 04/01/18 (c) | 1,000,000 | 273,750 | ||||||
| Telecom Italia Capital SA, 5.25%, 11/15/13 | 1,000,000 | 948,210 | ||||||
| Verizon Wireless Capital LLC, 7.38%, 11/15/13 (c) | 1,000,000 | 1,112,634 | ||||||
| 3,352,375 | ||||||||
Transportation 1.3% | ||||||||
| Federal Express Corp. 1993 Pass Through Trust, Series B2, 7.63%, 01/01/15 | 1,000,000 | 1,044,370 | ||||||
Total Corporate Bonds (cost $39,408,561) | 35,910,164 | |||||||
| Preferred Stocks 0.0% (c) | ||||||||
Diversified Financial Services 0.0% | ||||||||
| Preferred Blocker, Inc., 7.00% | 76 | 22,800 | ||||||
Total Preferred Stocks (cost $36,693) | 22,800 | |||||||
| Municipal Bonds 1.1% | ||||||||
| Principal Amount | Market Value | |||||||
Iowa 0.8% | ||||||||
| Tobacco Settlement Authority of Iowa, 6.50%, 06/01/23 | 885,000 | 634,324 | ||||||
Louisiana 0.3% | ||||||||
| Tobacco Settlement Financing Corp., 6.36%, 05/15/25 | 254,033 | 241,268 | ||||||
Total Municipal Bonds (cost $1,138,641) | 875,592 | |||||||
| Yankee Dollar 1.4% | ||||||||
Mining 1.4% | ||||||||
| BHP Billiton Finance USA Ltd., 6.50%, 04/01/19 | 1,000,000 | 1,086,172 | ||||||
Total Yankee Dollars (cost $996,813) | 1,086,172 | |||||||
| U.S. Government Sponsored & Agency Obligations 4.1% | ||||||||
| Israel Government AID Bond, 5.67%, 05/15/24 (e) | 1,000,000 | 459,441 | ||||||
| U.S. Treasury Inflation Index Notes, 2.13%, 01/15/19 | 2,000,000 | 2,063,118 | ||||||
| U.S. Treasury Notes, 2.75%, 02/15/19 | 750,000 | 726,443 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $3,263,107) | 3,249,002 | |||||||
| U.S. Government Sponsored Mortgage-Backed Obligations 10.4% | ||||||||
| Fannie Mae Pool | ||||||||
| Pool # 383661, 6.62%, 06/01/16 | 1,795,196 | 1,999,806 | ||||||
| Pool # 386905, 5.00%, 04/01/19 | 925,619 | 942,307 | ||||||
| Pool # AA6943, 4.50%, 05/01/39 | 2,900,000 | 2,954,125 | ||||||
| Freddie Mac Gold Pool, Pool # E01443, 3.50%, 07/01/18 | 2,394,584 | 2,381,616 | ||||||
Total U.S. Government Sponsored Mortgage-Backed Obligations (cost $7,948,430) | 8,277,854 | |||||||
2009 Semiannual Report 85
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Fund (Continued)
| Repurchase Agreements 8.3% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $2,280,146, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $2,325,738 | $ | 2,280,135 | $ | 2,280,135 | ||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $4,306,516, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $4,392,628 | 4,306,498 | 4,306,498 | ||||||
Total Repurchase Agreements (cost $6,586,633) | 6,586,633 | |||||||
Total Investments (cost $85,662,239) (f) — 99.0% | 78,966,440 | |||||||
Other assets in excess of liabilities — 1.0% | 772,648 | |||||||
NET ASSETS — 100.0% | $ | 79,739,088 | ||||||
| (a) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. 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 April 30, 2009. | |
| (c) | Rule 144A, Section 4(2), or other security which is restricted as to resale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at April 30, 2009 was $6,505,981 which represents 8.16% of net assets. | |
| (d) | Security in default. | |
| (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. |
| LLC | Limited Liability Company | |
| LP | Limited Partnership | |
| Ltd | Limited | |
| OYJ | Public Traded Company | |
| PLC | Public Limited Company | |
| REMICS | Real Estate Mortgage Investment Conduits | |
| SA | Stock Company |
The accompanying notes are an integral part of these financial statements.
86 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Bond Fund | |||||
Assets: | |||||
| Investments, at value (cost $79,075,606) | $ | 72,379,807 | |||
| Repurchase agreements, at value and cost | 6,586,633 | ||||
| Total Investments | 78,966,440 | ||||
| Interest and dividends receivable | 866,586 | ||||
| Receivable for capital shares issued | 84,965 | ||||
| Receivable for investments sold | 2,967,693 | ||||
| Prepaid expenses and other assets | 50,356 | ||||
| Total Assets | 82,936,040 | ||||
Liabilities: | |||||
| Payable for investments purchased | 2,951,203 | ||||
| Distributions payable | 48,980 | ||||
| Payable for capital shares redeemed | 139,053 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 19,419 | ||||
| Fund administration fees | 8,366 | ||||
| Distribution fees | 5,441 | ||||
| Trustee fees | 411 | ||||
| Compliance program costs (Note 3) | 1,108 | ||||
| Custodian fees | 1,827 | ||||
| Printing fees | 8,155 | ||||
| Professional fees | 3,606 | ||||
| Other | 9,383 | ||||
| Total Liabilities | 3,196,952 | ||||
Net Assets | $ | 79,739,088 | |||
Represented by: | |||||
| Capital | $ | 86,186,601 | |||
| Accumulated undistributed net investment income | 27,921 | ||||
| Accumulated net realized gains from investment transactions | 220,365 | ||||
| Net unrealized appreciation/(depreciation) from investments | (6,695,799 | ) | |||
Net Assets | $ | 79,739,088 | |||
Net Assets: | |||||
| Class A Shares | $ | 14,289,136 | |||
| Class B Shares | 646,415 | ||||
| Class C Shares | 2,527,565 | ||||
| Class D Shares | 62,213,086 | ||||
| Class R2 Shares (a) | 62,886 | ||||
| Total | $ | 79,739,088 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,620,407 | ||||
| Class B Shares | 73,300 | ||||
| Class C Shares | 286,380 | ||||
| Class D Shares | 7,045,555 | ||||
| Class R2 Shares (a) | 7,127 | ||||
| Total | 9,032,769 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 87
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Bond Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 8.82 | |||
| Class B Shares (b) | $ | 8.82 | |||
| Class C Shares (c) | $ | 8.83 | |||
| Class D Shares | $ | 8.83 | |||
| Class R2 Shares (a) | $ | 8.82 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.21 | |||
| Class D Shares | $ | 9.25 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 4.25 | % | |||
| Class D Shares | 4.50 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (b) | For Class B Shares, the redemption price per share varies by 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.
88 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Bond Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 2,395,843 | |||
| Dividend income | 81,020 | ||||
| Income from securities lending (Note 2) | 188 | ||||
| Total Income | 2,477,051 | ||||
EXPENSES: | |||||
| Investment advisory fees | 194,298 | ||||
| Fund administration fees | 48,432 | ||||
| Distribution fees Class A | 16,583 | ||||
| Distribution fees Class B | 2,547 | ||||
| Distribution fees Class C | 12,136 | ||||
| Distribution fees Class R2 (a) | 157 | ||||
| Distribution fees Class X (b) | 1,591 | ||||
| Distribution fees Class Y (b) | 213 | ||||
| Administrative services fees Class A | 4,105 | ||||
| Administrative services fees Class D | 8,877 | ||||
| Administrative services fees Class R2 (a) | 38 | ||||
| Registration and filing fees | 42,073 | ||||
| Professional fees | 7,390 | ||||
| Printing fees | 18,478 | ||||
| Trustee fees | 2,869 | ||||
| Compliance program costs (Note 3) | 817 | ||||
| Custodian fees | 7,274 | ||||
| Other | 37,780 | ||||
| Total expenses before reimbursed/waived expenses | 405,658 | ||||
| Earnings credit (Note 5) | (1,909 | ) | |||
| Expenses reimbursed by adviser | (24,718 | ) | |||
| Net Expenses | 379,031 | ||||
NET INVESTMENT INCOME | 2,098,020 | ||||
REALIZED/UNREALIZED GAINS FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 202,263 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 982,360 | ||||
| Net realized/unrealized gains from investments | 1,184,623 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,282,643 | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (b) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 89
Statements of Changes in Net Assets
| Nationwide Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 2,098,020 | $ | 4,252,343 | ||||||
| Net realized gains from investment transactions | 202,263 | 1,224,885 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | 982,360 | (8,927,186 | ) | |||||||
| Change in net assets resulting from operations | 3,282,643 | (3,449,958 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (343,353 | ) | (593,004 | ) | ||||||
| Class B | (11,399 | ) | (18,932 | ) | ||||||
| Class C | (54,522 | ) | (75,130 | ) | ||||||
| Class D | (1,659,280 | ) | (3,506,711 | ) | ||||||
| Class R2 (a) | (1,523 | ) | (2,801 | ) | ||||||
| Class X (c) | (8,524 | ) | (46,411 | ) | ||||||
| Class Y (c) | (1,142 | ) | (5,203 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (8,540 | ) | – | |||||||
| Class B | (290 | ) | – | |||||||
| Class C | (1,613 | ) | – | |||||||
| Class D | (40,367 | ) | – | |||||||
| Class R2 (a) | (41 | ) | – | |||||||
| Class X (c) | (484 | ) | – | |||||||
| Class Y (c) | (65 | ) | – | |||||||
| Change in net assets from shareholder distributions | (2,131,143 | ) | (4,248,192 | ) | ||||||
| Change in net assets from capital transactions | (1,053,962 | ) | (3,288,055 | ) | ||||||
| Change in net assets | 97,538 | (10,986,205 | ) | |||||||
Net Assets: | ||||||||||
| Beginning of period | 79,641,550 | 90,627,755 | ||||||||
| End of period | $ | 79,739,088 | $ | 79,641,550 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 27,921 | $ | 9,644 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,821,372 | $ | 6,971,744 | ||||||
| Proceeds from shares issued in class consolidation (c) | 800,752 | – | ||||||||
| Dividends reinvested | 310,417 | 530,344 | ||||||||
| Cost of shares redeemed (b) | (1,718,295 | ) | (5,601,610 | ) | ||||||
| Total Class A | 1,214,246 | 1,900,478 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
| (c) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. The accompanying notes are an integral part of these financial statements. |
90 Semiannual Report 2009
| Nationwide Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | $ | 267,589 | $ | 292,868 | ||||||
| Dividends reinvested | 2,943 | 9,039 | ||||||||
| Cost of shares redeemed | (39,665 | ) | (222,535 | ) | ||||||
| Total Class B | 230,867 | 79,372 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 707,025 | 2,080,856 | ||||||||
| Dividends reinvested | 18,754 | 17,337 | ||||||||
| Cost of shares redeemed (b) | (504,668 | ) | (1,052,228 | ) | ||||||
| Total Class C | 221,111 | 1,045,965 | ||||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | 3,092,920 | 6,830,549 | ||||||||
| Dividends reinvested | 1,492,545 | 3,051,144 | ||||||||
| Cost of shares redeemed (b) | (6,394,663 | ) | (15,615,227 | ) | ||||||
| Total Class D | (1,809,198 | ) | (5,733,534 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 18,498 | 304,443 | ||||||||
| Dividends reinvested | 163 | 177 | ||||||||
| Cost of shares redeemed (b) | (23,972 | ) | (232,884 | ) | ||||||
| Total Class R2 | (5,311 | ) | 71,736 | |||||||
Class X Shares (c) | ||||||||||
| Proceeds from shares issued | 6,723 | 23,063 | ||||||||
| Dividends reinvested | 8,152 | 37,763 | ||||||||
| Cost of shares redeemed in class consolidation | (705,020 | ) | – | |||||||
| Cost of shares redeemed | (114,843 | ) | (678,135 | ) | ||||||
| Total Class X | (804,988 | ) | (617,309 | ) | ||||||
Class Y Shares (c) | ||||||||||
| Proceeds from shares issued | 4,794 | 651 | ||||||||
| Dividends reinvested | 789 | 3,895 | ||||||||
| Cost of shares redeemed in class consolidation | (95,732 | ) | – | |||||||
| Cost of shares redeemed (b) | (10,540 | ) | (39,309 | ) | ||||||
| Total Class Y | (100,689 | ) | (34,763 | ) | ||||||
| Change in net assets from capital transactions: | $ | (1,053,962 | ) | $ | (3,288,055 | ) | ||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
| (c) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. The accompanying notes are an integral part of these financial statements. |
2009 Semiannual Report 91
Statements of Changes in Net Assets (Continued)
| Nationwide Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 210,442 | 735,301 | ||||||||
| Issued in class consolidation (c) | 91,514 | – | ||||||||
| Reinvested | 35,703 | 56,521 | ||||||||
| Redeemed | (197,875 | ) | (590,285 | ) | ||||||
| Total Class A Shares | 139,784 | 201,537 | ||||||||
Class B Shares | ||||||||||
| Issued | 30,818 | 30,472 | ||||||||
| Reinvested | 339 | 959 | ||||||||
| Redeemed | (4,599 | ) | (23,711 | ) | ||||||
| Total Class B Shares | 26,558 | 7,720 | ||||||||
Class C Shares | ||||||||||
| Issued | 81,396 | 220,942 | ||||||||
| Reinvested | 2,154 | 1,855 | ||||||||
| Redeemed | (58,224 | ) | (111,872 | ) | ||||||
| Total Class C Shares | 25,326 | 110,925 | ||||||||
Class D Shares | ||||||||||
| Issued | 356,643 | 717,195 | ||||||||
| Reinvested | 171,397 | 323,958 | ||||||||
| Redeemed | (736,633 | ) | (1,655,300 | ) | ||||||
| Total Class D Shares | (208,593 | ) | (614,147 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 2,143 | 32,002 | ||||||||
| Reinvested | 19 | 20 | ||||||||
| Redeemed | (2,786 | ) | (24,422 | ) | ||||||
| Total Class R2 Shares | (624 | ) | 7,600 | |||||||
Class X Shares (c) | ||||||||||
| Issued | 773 | 2,438 | ||||||||
| Reinvested | 938 | 4,003 | ||||||||
| Redeemed in class consolidation | (80,572 | ) | – | |||||||
| Redeemed | (13,162 | ) | (71,246 | ) | ||||||
| Total Class X Shares | (92,023 | ) | (64,805 | ) | ||||||
Class Y Shares (c) | ||||||||||
| Issued | 551 | 94 | ||||||||
| Reinvested | 91 | 412 | ||||||||
| Redeemed in class consolidation | (10,928 | ) | – | |||||||
| Redeemed | (1,205 | ) | (4,181 | ) | ||||||
| Total Class Y Shares | (11,491 | ) | (3,675 | ) | ||||||
| Total change in shares: | (121,063 | ) | (354,845 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (c) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. The accompanying notes are an integral part of these financial statements. |
92 Semiannual Report 2009
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Fund
| Operations | Distributions | Ratio / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a) (b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c) (d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .69 | 0 | .22 | 0 | .14 | 0 | .36 | (0 | .22) | (0 | .01) | (0 | .23) | – | $ | 8 | .82 | 4 | .19% | $ | 14,289,136 | 1 | .17% | 5 | .22% | 1 | .24% | 36 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .10%(f) | 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% | 1 | .04%(f) | 17 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .69 | 0 | .19 | 0 | .14 | 0 | .33 | (0 | .19) | (0 | .01) | (0 | .20) | – | $ | 8 | .82 | 3 | .83% | $ | 646,415 | 1 | .85% | 4 | .57% | 1 | .92% | 36 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .78%(f) | 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% | 1 | .72%(f) | 17 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .70 | 0 | .19 | 0 | .14 | 0 | .33 | (0 | .19) | (0 | .01) | (0 | .20) | – | $ | 8 | .83 | 3 | .83% | $ | 2,527,565 | 1 | .86% | 4 | .53% | 1 | .93% | 36 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .78%(f) | 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% | 1 | .72%(f) | 17 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .70 | 0 | .23 | 0 | .14 | 0 | .37 | (0 | .23) | (0 | .01) | (0 | .24) | – | $ | 8 | .83 | 4 | .32% | $ | 62,213,086 | 0 | .88% | 5 | .51% | 0 | .95% | 36 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .83%(f) | 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% | 0 | .78%(f) | 17 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–“are zero or have been rounded to zero. (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 where no fee waivers/reimbursements during the period. (g) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 93
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Fund (Continued)
| Operations | Distributions | Ratio / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a) (b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c) (d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .70 | 0 | .21 | 0 | .13 | 0 | .34 | (0 | .21) | (0 | .01) | (0 | .22) | – | $ | 8 | .82 | 3 | .90% | $ | 62,886 | 1 | .49% | 4 | .90% | 1 | .55% | 36 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .14%(f) | 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% | 1 | .37%(f) | 17 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–“are zero or have been rounded to zero.
| (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 where no fee waivers/reimbursements during the period. |
| (g) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are in integral part of these financial statements.
94 Semiannual Report 2009
Nationwide Enhanced Income Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Enhanced Income Fund (Class A at NAV) returned 2.45% versus 1.02% 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 peer category of Ultra-Short Obligations Funds (consisting of 73 funds as of April 30, 2009) was −1.41% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
During the reporting period, shorter-maturity spread products (maturing in less than two years) generally outperformed Treasuries. Performance was driven by a combination of low Treasury yields, distressed valuations, and government programs such as TALF (Term ABS Loan Facility) and PPIP (Public-Private Investment Program) that are expected to improve liquidity and valuations in certain eligible securitized sectors by providing government financing for leveraged purchases. The U.S. Agency mortgage-backed securities (MBS) sector posted the strongest performance relative to Treasuries as the Federal Reserve Board expanded its purchase plan for Agency MBS by $750 billion in order to keep mortgage rates low. The asset-backed securities sector, which was the first to benefit from the TALF program, also performed well, as did U.S. Agency debentures. The Fund’s exposure to these sectors provided the most positive returns for the Fund during the reporting period in relation to the blended benchmark index.
What areas of investment detracted from Fund performance?
During the reporting period, the Fund’s allocations to commercial mortgage-backed securities (CMBS) were the biggest drag on Fund performance. The weakening economy and declining property values were two negatives for this (CMBS) sector. The Fund’s holdings, however, are AAA-rated deals issued primarily in 2005 or earlier, before underwriting standards in the sector weakened. As investors sought out higher yields in spread products, U.S. Treasuries were one of the lowest-returning sectors of the fixed-income markets during the reporting period. The Fund maintained a modest position in Treasuries, given the unattractively low yields in that sector. Although credit markets outperformed treasuries, the downward pressure on financials and the further eroding of credit ratings negatively affected them.
What is your outlook for the near term?
While the economy remains extremely weak, recent signs of stabilization have appeared, including better-than-expected retail sales and durable goods orders. A modest level of inventory accumulation should occur in 2009 after two years of liquidations. Much of the timing of the eventual economic recovery will depend on the success of the global monetary and fiscal stimulus programs that have been enacted. Until the housing and labor markets show signs of improvement, we expect short-term interest rates to remain low, because the Federal Reserve has demonstrated its commitment to its quantitative easing policy. Performance will be industry- and issuer-specific, based on credit fundamentals. Government policy will continue to be an important driver of the markets as we navigate through the rest of the year.
Subadviser:
Morley Capital Management, Inc.
Morley Capital Management, Inc.
Portfolio Managers:
Perpetua M. Phillips and
Paul Rocheleau
Perpetua M. Phillips and
Paul Rocheleau
2009 Semiannual Report 95
| Fund Performance | Nationwide Enhanced Income Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | 2.45% | 2.45% | 3.17% | 2.80% | |||||||||||||
| w/SC3 | 0.13% | 0.17% | 2.71% | 2.55% | ||||||||||||||
Class R24,5,6 | 2.22% | 2.18% | 2.99% | 2.70% | ||||||||||||||
Institutional Service Class4 | 2.53% | 2.60% | 3.31% | 2.95% | ||||||||||||||
Institutional Class4 | 2.61% | 2.73% | 3.49% | 3.15% | ||||||||||||||
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.
| * | Not annualized. | |
| 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 R2 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 R2 shares would have produced because Class R2 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 R2 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 R2 shares; if these fees were reflected, the performance for Class R2 shares would have been lower. | |
| 6 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 0.82% | 0.76% | ||||||||
| Class R2 | 1.21% | 1.15% | ||||||||
| Institutional Service Class | 0.51% | 0.45% | ||||||||
| Institutional Class | 0.51% | 0.45% | ||||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 (T-Bill) Index (b), the Merrill Lynch 1-Year Treasury Bill (T-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 (T-Bill) Index. | |
| (b) | The Merrill Lynch 6-Month Treasury Bill (T-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 (T-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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
96 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Enhanced Income Fund | 11/01/08 | 04/30/09 | 11/1/08 - 04/30/09 a | 11/1/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,020.54 | 4.01 | 0.80 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.83 | 4.01 | 0.80 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 1,017.47 | 4.82 | 0.96 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.02 | 4.83 | 0.96 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 1,022.38 | 2.99 | 0.60 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.84 | 2.99 | 0.60 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,023.85 | 2.27 | 0.45 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.55 | 2.27 | 0.45 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 97
| Portfolio Summary | Nationwide Enhanced Income Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| U.S. Government Sponsored & Agency Obligations | 26 | .0% | ||
| Corporate Bonds | 23 | .6% | ||
| Asset-Backed Securities | 19 | .1% | ||
| Collateralized Mortgage Obligations | 13 | .6% | ||
| Commercial Mortgage Backed Securities | 8 | .2% | ||
| Repurchase Agreements | 5 | .2% | ||
| Sovereign Bonds | 2 | .6% | ||
| Yankee Dollars | 0 | .6% | ||
| U.S. Government Sponsored Mortgage-Backed Obligations | 0 | .4% | ||
| Other assets in excess of liabilities | 0 | .7% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Other ABS | 7 | .5% | ||
| Credit Card ABS | 6 | .7% | ||
| Banks | 5 | .6% | ||
| Diversified Financial Services | 5 | .1% | ||
| Automobile ABS | 4 | .9% | ||
| Multi-National | 3 | .2% | ||
| Miscellaneous Manufacturing | 2 | .5% | ||
| Insurance | 1 | .7% | ||
| Healthcare-Products | 1 | .3% | ||
| Telecommunications | 1 | .3% | ||
| Other Industries* | 60 | .2% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| U.S. Treasury Notes, 4.00%, 09/30/09 | 4 | .4% | ||
| U.S. Treasury Notes, 3.25%, 12/31/09 | 3 | .4% | ||
| U.S. Treasury Notes, 2.13%, 01/31/10 | 2 | .8% | ||
| U.S. Treasury Notes, 2.00%, 02/28/10 | 2 | .2% | ||
| Honeywell International, Inc., 7.50%, 03/01/10 | 1 | .4% | ||
| Freddie Mac REMICS, Series 2614, Class TD, 3.50%, 05/15/16 | 1 | .4% | ||
| Johnson & Johnson, 6.63%, 09/01/09 | 1 | .3% | ||
Peco Energy Transition Trust, Series 2001-A, Class A1, 6.52%, 12/31/10 | 1 | .3% | ||
| Federal National Mortgage Association, 4.63%, 12/15/09 | 1 | .3% | ||
| BellSouth Corp., 4.20%, 09/15/09 | 1 | .3% | ||
| Other Holdings* | 79 | .2% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
98 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Enhanced Income Fund
| Asset-Backed Securities 19.1% | ||||||||
| Principal Amount | Market Value | |||||||
Automobile ABS 4.9% | ||||||||
Banc of America Securities Auto Trust, Series 2006-G1, Class A3, 5.18%, 06/18/10 | $ | 420,967 | $ | 422,290 | ||||
BMW Vehicle Owner Trust, Series 2006-A, Class A4, 5.07%, 08/25/11 | 2,000,000 | 2,032,274 | ||||||
Capital Auto Receivables Asset Trust, Series 2006-2, Class A3A, 4.98%, 05/15/11 | 1,010,390 | 1,022,489 | ||||||
| Daimler Chrysler Auto Trust | ||||||||
Series 2006-D, Class A3, 4.98%, 02/08/11 | 831,907 | 839,228 | ||||||
Series 2007-A, Class A2A, 4.94%, 03/08/11 | 408,746 | 411,932 | ||||||
Ford Credit Auto Owner Trust, Series 2007-B, Class A2A, 5.26%, 06/15/10 | 363,697 | 365,562 | ||||||
Household Automotive Trust, Series 2005-3, Class A3, 4.80%, 10/18/10 | 63,027 | 63,069 | ||||||
| USAA Auto Owner Trust | ||||||||
Series 2008-1, Class A2, 4.27%, 10/15/10 | 545,392 | 547,417 | ||||||
Series 2008-2, Class A2, 3.91%, 01/15/11 | 1,295,689 | 1,303,872 | ||||||
World Omni Auto Receivables Trust, Series 2008-B, Class A2, 4.13%, 03/15/11 | 2,000,000 | 2,016,968 | ||||||
| 9,025,101 | ||||||||
Credit Card ABS 6.7% | ||||||||
American Express Credit Account Master Trust, Series 2004-3, Class A, 4.35%, 12/15/11 | 2,000,000 | 1,993,749 | ||||||
BA Credit Card Trust, Series 2008-A9, Class A9, 4.07%, 07/16/12 | 2,000,000 | 2,028,781 | ||||||
Bank One Issuance Trust, Series 2004-A6, Class A6, 3.94%, 04/16/12 | 1,500,000 | 1,510,935 | ||||||
| Chase Issuance Trust | ||||||||
Series 2005-A10, Class A10, 4.65%, 12/17/12 | 1,230,000 | 1,259,639 | ||||||
Series 2006-A1, Class A, 0.49%, 04/15/13(b) | 1,997,000 | 1,932,287 | ||||||
Citibank Credit Card Issuance Trust, Series 2005-A7, Class A7, 4.75%, 10/22/12 | 2,000,000 | 2,044,135 | ||||||
MBNA Credit Card Master Note Trust, Series 2005-A3, Class A3, 4.10%, 10/15/12 | 1,440,000 | 1,463,028 | ||||||
| 12,232,554 | ||||||||
Other ABS 7.5% | ||||||||
Caterpillar Financial Asset Trust, Series 2008-A, Class A2A, 4.09%, 12/27/10 | 1,006,925 | 1,005,433 | ||||||
CenterPoint Energy Transition Bond Co. LLC, Series 2001-1, Class A3, 5.16%, 09/15/11 | 742,601 | 751,858 | ||||||
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2003-3, Class 1A4, 3.30%, 11/25/29 | 24,874 | 24,625 | ||||||
CIT Equipment Collateral, Series 2006-VT1, Class A4, 5.16%, 02/20/13 | 1,629,387 | 1,630,614 | ||||||
Countrywide Asset-Backed Certificates, Series 2005-7, Class AF2, 4.37%, 10/25/35 (b) | 3,405 | 3,386 | ||||||
CPL Transition Funding LLC, Series 2002-1, Class A3, 5.56%, 01/15/12 | 2,054,879 | 2,093,938 | ||||||
FPL Recovery Funding LLC, Series 2007-A, Class A1, 5.05%, 02/01/13 | 1,265,847 | 1,298,380 | ||||||
GE Equipment Midticket LLC, Series 2007-1 , Class A2A, 4.58%, 05/14/10 | 429,877 | 429,648 | ||||||
John Deere Owner Trust, Series 2008-A Class A2, 3.63%, 03/15/11 | 992,612 | 989,473 | ||||||
Oncor Electric Delivery Transition Bond Co., Series 2003-1, Class A2, 4.03%, 02/15/12 | 673,016 | 680,726 | ||||||
| Peco Energy Transition Trust | ||||||||
Series 2000-A, Class A4, 7.65%, 03/01/10 | 1,500,000 | 1,530,090 | ||||||
Series 2001-A, Class A1, 6.52%, 12/31/10 | 2,300,000 | 2,411,908 | ||||||
PG&E Energy Recovery Funding LLC, Series 2005-1, Class A2, 3.87%, 06/25/11 | 192,648 | 193,346 | ||||||
TXU Electric Delivery Transition Bond Co. LLC, Series 2004-1, Class A1, 3.52%, 11/15/11 | 739,343 | 741,317 | ||||||
| 13,784,742 | ||||||||
Total Asset-Backed Securities (cost $34,734,967) | 35,042,397 | |||||||
| Collateralized Mortgage Obligations 13.6% | ||||||||
| Fannie Mae REMICS | ||||||||
Series 2004-34, Class PL, 3.50%, 05/25/14 | 14,914 | 14,901 | ||||||
2009 Semiannual Report 99
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Enhanced Income Fund (Continued)
Collateralized Mortgage Obligations (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Series 2003-92, Class PC, 4.50%, 05/25/15 | $ | 1,632,308 | $ | 1,651,213 | ||||
Series 2005-91, Class PB, 4.50%, 06/25/16 | 1,454,449 | 1,477,559 | ||||||
Series 2002-82, Class XD, 5.00%, 07/25/16 | 1,652,997 | 1,687,221 | ||||||
Series 2004-61, Class AB, 5.00%, 03/25/17 | 1,471,786 | 1,492,145 | ||||||
Series 2003-57, Class NB, 3.00%, 06/25/18 | 293,774 | 295,296 | ||||||
Series 2003-75, Class NB, 3.25%, 08/25/18 | 231,876 | 232,997 | ||||||
Series 2004-96, Class EW, 4.50%, 06/25/24 | 1,599,008 | 1,623,419 | ||||||
Series 2003-14, Class AN, 3.50%, 03/25/33 | 261,929 | 263,820 | ||||||
| Freddie Mac REMICS | ||||||||
| Series 3483, Class FB, 0.59%, 08/15/11 (a) | 1,971,518 | 1,960,025 | ||||||
| Series 2651, Class VB, 5.50%, 03/15/14 | 987,748 | 996,408 | ||||||
| Series 2668, Class AD, 4.00%, 01/15/15 | 1,336,100 | 1,353,292 | ||||||
| Series 2614, Class TD, 3.50%, 05/15/16 | 2,488,082 | 2,518,107 | ||||||
| Series 2517, Class OD, 5.00%, 05/15/16 | 1,635,973 | 1,659,919 | ||||||
| Series 2628, Class PV, 3.75%, 10/15/16 | 1,137,222 | 1,148,406 | ||||||
| Series 2628, Class PX, 4.00%, 10/15/16 | 1,705,834 | 1,725,029 | ||||||
| Series 2611, Class KC, 3.50%, 01/15/17 | 301,495 | 304,191 | ||||||
| Series 2664, Class GA, 4.50%, 01/15/18 | 353,574 | 362,475 | ||||||
| Series 2613, Class PA, 3.25%, 05/15/18 | 399,137 | 400,450 | ||||||
| Series 2630, Class JA, 3.00%, 06/15/18 | 284,334 | 285,804 | ||||||
| Government National Mortgage Association | ||||||||
Series 2003-49, Class A, 2.21%, 10/16/17 | 2,105,678 | 2,103,725 | ||||||
Series 2004-103, Class A, 3.88%, 12/16/19 | 1,126,571 | 1,132,998 | ||||||
Residential Funding Mortgage Securities I, Series 2003-S11, Class A1, 2.50%, 06/25/18 | 222,408 | 220,269 | ||||||
Total Collateralized Mortgage Obligations (cost $24,717,563) | 24,909,669 | |||||||
| Commercial Mortgage Backed Securities 8.2% | ||||||||
| Principal Amount | Market Value | |||||||
Banc of America Commercial Mortgage, Inc., Series 2005-1, Class A3, 4.88%, 11/10/42 | 1,749,684 | 1,684,762 | ||||||
Bear Stearns Commercial Mortgage Securities, Series 2001-TOP2, Class A1, 6.08%, 02/15/35 | 117,926 | 118,916 | ||||||
Commercial Mortgage Asset Trust, Series 1999-C1, Class A3, 6.64%, 01/17/32 | 582,063 | 583,705 | ||||||
| GMAC Commercial Mortgage Securities, Inc. | ||||||||
Series 2003-C3, Class A2, 4.22%, 04/10/40 | 990,555 | 978,638 | ||||||
Series 2004-C3, Class A3, 4.21%, 12/10/41 | 1,962,922 | 1,936,230 | ||||||
Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A3, 4.34%, 06/10/36 | 440,273 | 439,604 | ||||||
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-CB16, Class A1, 5.34%, 05/12/45 | 1,251,338 | 1,246,574 | ||||||
| Morgan Stanley Capital I | ||||||||
Series 2004-IQ8, Class A3, 4.50%, 11/15/11 | 2,000,000 | 1,949,492 | ||||||
Series 2005-HQ5, Class A2, 4.81%, 01/14/42 | 1,729,731 | 1,747,531 | ||||||
Series 2005-IQ9, Class A1, 3.99%, 07/15/56 | 701,339 | 698,531 | ||||||
Nomura Asset Securities Corp., Series 1998-D6, Class A1B, 6.59%, 03/15/30 | 55,647 | 55,651 | ||||||
| Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2005-C16, Class A2, 4.38%, 10/15/41 | 2,133,468 | 2,094,442 | ||||||
Series 2005-C17, Class A2, 4.78%, 03/15/42 | 1,701,896 | 1,618,450 | ||||||
Total Commercial Mortgage Backed Securities (cost $15,312,726) | 15,152,526 | |||||||
| Corporate Bonds 23.6% | ||||||||
Aerospace & Defense 0.8% | ||||||||
| United Technologies Corp., 4.38%, 05/01/10 | 1,500,000 | 1,534,741 | ||||||
| 1,534,741 | ||||||||
100 Semiannual Report 2009
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Banks 5.6% | ||||||||
| HSBC Bank USA NA, 3.88%, 09/15/09 | $ | 2,000,000 | $ | 1,981,636 | ||||
| JPMorgan Chase & Co. | ||||||||
| 3.80%, 10/02/09 | 1,000,000 | 1,001,644 | ||||||
| 2.63%, 12/01/10 | 2,000,000 | 2,044,548 | ||||||
| Kreditanstalt fuer Wiederaufbau, 5.00%, 06/01/10 | 1,695,000 | 1,756,464 | ||||||
| Rabobank Nederland NV, 1.65%, 05/19/10 (a)(b) | 1,500,000 | 1,504,616 | ||||||
| Wells Fargo & Co., 4.20%, 01/15/10 | 2,000,000 | 2,027,264 | ||||||
| 10,316,172 | ||||||||
Computers 1.1% | ||||||||
| International Business Machines Corp., 4.25%, 09/15/09 | 2,000,000 | 2,020,370 | ||||||
| 2,020,370 | ||||||||
Diversified Financial Services 5.1% | ||||||||
| General Electric Capital Corp., 1.80%, 03/11/11 | 2,000,000 | 2,015,776 | ||||||
| Heller Financial, Inc., 7.38%, 11/01/09 | 1,500,000 | 1,528,612 | ||||||
| John Deere Capital Corp., 5.40%, 04/07/10 | 2,000,000 | 2,059,440 | ||||||
| Toyota Motor Credit Corp., 4.25%, 03/15/10 | 1,500,000 | 1,520,207 | ||||||
| Unilever Capital Corp., 7.13%, 11/01/10 | 2,000,000 | 2,147,320 | ||||||
| 9,271,355 | ||||||||
Healthcare-Products 1.3% | ||||||||
| Johnson & Johnson, 6.63%, 09/01/09 | 2,428,000 | 2,468,208 | ||||||
| 2,468,208 | ||||||||
Insurance 1.7% (b) | ||||||||
| Monumental Global Funding II, 3.90%, 06/15/09 | 2,100,000 | 2,098,154 | ||||||
| New York Life Global Funding, 4.63%, 08/16/10 | 1,000,000 | 997,131 | ||||||
| 3,095,285 | ||||||||
Machinery-Construction & Mining 1.1% | ||||||||
| Caterpillar, Inc., 7.25%, 09/15/09 | 2,000,000 | 2,034,136 | ||||||
| 2,034,136 | ||||||||
Miscellaneous Manufacturing 2.5% | ||||||||
| 3M Co., 5.13%, 11/06/09 | 2,000,000 | 2,044,958 | ||||||
| Honeywell International, Inc., 7.50%, 03/01/10 | 2,500,000 | 2,620,535 | ||||||
| 4,665,493 | ||||||||
Oil & Gas 0.9% | ||||||||
| Burlington Resources, Inc., 9.88%, 06/15/10 | 1,500,000 | 1,619,160 | ||||||
| 1,619,160 | ||||||||
Pharmaceuticals 1.1% (a) | ||||||||
| Pfizer, Inc., 3.17%, 03/15/11 | 2,000,000 | 2,051,830 | ||||||
| 2,051,830 | ||||||||
Retail 1.1% | ||||||||
| Wal-Mart Stores, Inc., 6.88%, 08/10/09 | 2,000,000 | 2,029,968 | ||||||
| 2,029,968 | ||||||||
Telecommunications 1.3% | ||||||||
| BellSouth Corp., 4.20%, 09/15/09 | 2,300,000 | 2,320,346 | ||||||
| 2,320,346 | ||||||||
Total Corporate Bonds (cost $43,191,652) | 43,427,064 | |||||||
| Sovereign Bonds 2.6% | ||||||||
Multi-National 2.6% | ||||||||
| African Development Bank, 1.48%, 03/23/11 (a) | 1,700,000 | 1,705,644 | ||||||
| Asian Development Bank, 4.13%, 09/15/10 | 1,000,000 | 1,038,323 | ||||||
| International Bank for Reconstruction & Development, 1.51%, 03/04/11 (a) | 2,000,000 | 1,998,490 | ||||||
Total Sovereign Bonds (cost $4,738,351) | 4,742,457 | |||||||
| Yankee Dollar 0.6% | ||||||||
Multi-National 0.6% | ||||||||
Inter-American Development Bank, 8.40%, 09/01/09 | 1,029,000 | 1,052,690 | ||||||
Total Yankee Dollar (cost $1,047,134) | 1,052,690 | |||||||
2009 Semiannual Report 101
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Enhanced Income Fund (Continued)
| U.S. Government Sponsored & Agency Obligations 26.0% | ||||||||
| Principal Amount | Market Value | |||||||
| Bank of New York Mellon Corp. (The), 1.42%, 02/05/10 (a) | $ | 1,500,000 | $ | 1,495,208 | ||||
| Citigroup Funding, Inc., 1.14%, 07/30/10 (a) | 2,000,000 | 2,009,836 | ||||||
| Federal Farm Credit Bank, 4.75%, 05/07/10 | 2,000,000 | 2,077,318 | ||||||
| Federal Home Loan Banks | ||||||||
| 5.38%, 07/17/09 | 2,000,000 | 2,021,870 | ||||||
| 2.75%, 06/18/10 | 2,000,000 | 2,039,638 | ||||||
| Federal Home Loan Mortgage Corp. | ||||||||
| 4.88%, 02/09/10 | 2,000,000 | 2,064,562 | ||||||
| 3.13%, 02/12/10 | 2,000,000 | 2,036,374 | ||||||
| 2.88%, 04/30/10 | 2,000,000 | 2,037,132 | ||||||
| Federal National Mortgage Association | ||||||||
| 4.63%, 12/15/09 | 2,300,000 | 2,358,321 | ||||||
| 4.13%, 05/15/10 | 2,000,000 | 2,060,502 | ||||||
| 4.38%, 06/21/10 | 2,000,000 | 2,075,376 | ||||||
| Morgan Stanley, 2.90%, 12/01/10 | 2,000,000 | 2,050,246 | ||||||
| U.S. Treasury Notes | ||||||||
| 4.00%, 09/30/09 | 8,000,000 | 8,124,376 | ||||||
| 3.25%, 12/31/09 | 6,000,000 | 6,114,846 | ||||||
| 2.13%, 01/31/10 | 5,000,000 | 5,063,670 | ||||||
| 2.00%, 02/28/10 | 4,000,000 | 4,051,092 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $47,187,482) | 47,680,367 | |||||||
| U.S. Government Sponsored Mortgage-Backed Obligations 0.4% | ||||||||
| Fannie Mae Pool | ||||||||
| Pool #253845, 6.00%, 06/01/16 | 69,908 | 73,796 | ||||||
| Pool #254089, 6.00%, 12/01/16 | 107,274 | 113,239 | ||||||
| Pool #545415, 6.00%, 01/01/17 | 95,749 | 101,074 | ||||||
| Pool #254195, 5.50%, 02/01/17 | 228,733 | 239,839 | ||||||
| Pool #625178, 5.50%, 02/01/17 | 198,484 | 208,121 | ||||||
| Freddie Mac Gold Pool | ||||||||
| Pool #E00678, 6.50%, 06/01/14 | 41,191 | 43,092 | ||||||
| Pool #E00991, 6.00%, 07/01/16 | 55,555 | 58,174 | ||||||
Total U.S. Government Sponsored Mortgage-Backed Obligations (cost $797,052) | 837,335 | |||||||
| Repurchase Agreements 5.2% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $3,286,532, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $3,352,246 | $ | 3,286,516 | $ | 3,286,516 | ||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $6,207,278, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $6,331,397 | 6,207,252 | 6,207,252 | ||||||
Total Repurchase Agreements (cost $9,493,768) | 9,493,768 | |||||||
Total Investments (cost $181,220,695) (c) — 99.3% | 182,338,273 | |||||||
Other assets in excess of liabilities — 0.7% | 1,221,044 | |||||||
NET ASSETS — 100.0% | $ | 183,559,317 | ||||||
| (a) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. The maturity date represents the actual maturity date. | |
| (b) | Rule 144A, Section 4(2), or other security which is restricted as to resale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at April 30, 2009 was $4,599,901 which represents 2.51% of net assets. | |
| (c) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| LLC | Limited Liability Co. | |
| NA | National Association | |
| NV | Public Traded Company | |
| REMICS | Real Estate Mortgage Investment Conduits |
The accompanying notes are an integral part of these financial statements.
102 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Enhanced | |||||
| Income Fund | |||||
Assets: | |||||
| Investments, at value (cost $171,726,927) | $ | 172,844,505 | |||
| Repurchase agreements, at value and cost | 9,493,768 | ||||
| Total Investments | 182,338,273 | ||||
| Cash | 6,372 | ||||
| Interest receivable | 1,288,554 | ||||
| Receivable for capital shares issued | 28,400 | ||||
| Prepaid expenses and other assets | 34,244 | ||||
| Total Assets | 183,695,843 | ||||
Liabilities: | |||||
| Distributions payable | 2,493 | ||||
| Payable for capital shares redeemed | 62,508 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 34,901 | ||||
| Fund administration fees | 19,264 | ||||
| Distribution fees | 779 | ||||
| Trustee fees | 754 | ||||
| Compliance program costs (Note 3) | 2,380 | ||||
| Custodian fees | 228 | ||||
| Printing fees | 609 | ||||
| Professional fees | 7,883 | ||||
| Other | 4,727 | ||||
| Total Liabilities | 136,526 | ||||
Net Assets | $ | 183,559,317 | |||
Represented by: | |||||
| Capital | $ | 189,557,994 | |||
| Accumulated undistributed net investment income | 132,838 | ||||
| Accumulated net realized losses from investment transactions | (7,249,093 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 1,117,578 | ||||
Net Assets | $ | 183,559,317 | |||
Net Assets: | |||||
| Class A Shares | $ | 3,755,710 | |||
| Class R2 Shares (a) | 3,343 | ||||
| Institutional Service Class Shares | 13,112 | ||||
| Institutional Class Shares | 179,787,152 | ||||
| Total | $ | 183,559,317 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 410,027 | ||||
| Class R2 Shares (a) | 365 | ||||
| Institutional Service Class Shares | 1,430 | ||||
| Institutional Class Shares | 19,633,057 | ||||
| Total | 20,044,879 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 103
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Enhanced | |||||
| Income Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 9.16 | |||
| Class R2 Shares (a) | $ | 9.16 | |||
| Institutional Service Class Shares | $ | 9.17 | |||
| Institutional Class Shares | $ | 9.16 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.37 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 2.25 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
104 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Enhanced | |||||
| Income Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 3,048,792 | |||
| Total Income | 3,048,792 | ||||
EXPENSES: | |||||
| Investment advisory fees | 304,792 | ||||
| Fund administration fees | 108,605 | ||||
| Distribution fees Class A | 3,479 | ||||
| Distribution fees Class R2 (a) | 5 | ||||
| Administrative services fees Class A | 1,382 | ||||
| Administrative services fees Institutional Service Class | 9 | ||||
| Registration and filing fees | 19,195 | ||||
| Professional fees | 16,254 | ||||
| Printing fees | 10,085 | ||||
| Trustee fees | 6,406 | ||||
| Compliance program costs (Note 3) | 1,788 | ||||
| Custodian fees | 4,469 | ||||
| Other | 14,332 | ||||
| Total expenses before reimbursed/waived expenses | 490,801 | ||||
| Earnings credit (Note 5) | (1,334 | ) | |||
| Expenses reimbursed by adviser | (91,149 | ) | |||
| Net Expenses | 398,318 | ||||
NET INVESTMENT INCOME | 2,650,474 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (1,134,645 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 3,029,720 | ||||
| Net realized/ unrealized gains from investments | 1,895,075 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 4,545,549 | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 105
Statements of Changes in Net Assets
| Nationwide Enhanced Income Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 2,650,474 | $ | 6,386,905 | ||||||
| Net realized losses from investment transactions | (1,134,645 | ) | (439,881 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 3,029,720 | (1,996,157 | ) | |||||||
| Change in net assets resulting from operations | 4,545,549 | 3,950,867 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (36,125 | ) | (59,456 | ) | ||||||
| Class R2 (a) | (20 | ) | (40 | ) | ||||||
| Institutional Service Class | (182 | ) | (519 | ) | ||||||
| Institutional Class | (2,560,535 | ) | (6,300,502 | ) | ||||||
| Change in net assets from shareholder distributions | (2,596,862 | ) | (6,360,517 | ) | ||||||
| Change in net assets from capital transactions | 10,191,684 | 9,037,417 | ||||||||
| Change in net assets | 12,140,371 | 6,627,767 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 171,418,946 | 164,791,179 | ||||||||
| End of period | $ | 183,559,317 | $ | 171,418,946 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 132,838 | $ | 79,226 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 2,935,982 | $ | 2,564,800 | ||||||
| Dividends reinvested | 25,862 | 37,974 | ||||||||
| Cost of shares redeemed | (1,394,810 | ) | (1,800,035 | ) | ||||||
| Total Class A | 1,567,034 | 802,739 | ||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 2,175 | – | ||||||||
| Dividends reinvested | 20 | 40 | ||||||||
| Cost of shares redeemed | (7 | ) | – | |||||||
| Total Class R2 | 2,188 | 40 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 182 | 519 | ||||||||
| Cost of shares redeemed | – | (987 | ) | |||||||
| Total Institutional Service Class | 182 | (468 | ) | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 28,966,964 | 34,628,229 | ||||||||
| Dividends reinvested | 2,560,535 | 6,300,466 | ||||||||
| Cost of shares redeemed | (22,905,219 | ) | (32,693,589 | ) | ||||||
| Total Institutional Class | 8,622,280 | 8,235,106 | ||||||||
| Change in net assets from capital transactions: | $ | 10,191,684 | $ | 9,037,417 | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
106 Semiannual Report 2009
| Nationwide Enhanced Income Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 322,038 | 279,027 | ||||||||
| Reinvested | 2,837 | 4,136 | ||||||||
| Redeemed | (153,033 | ) | (196,369 | ) | ||||||
| Total Class A Shares | 171,842 | 86,794 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 238 | – | ||||||||
| Reinvested | 3 | 4 | ||||||||
| Redeemed | (1 | ) | (2 | ) | ||||||
| Total Class R2 Shares | 240 | 2 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 20 | 57 | ||||||||
| Redeemed | – | (107 | ) | |||||||
| Total Institutional Service Class Shares | 20 | (50 | ) | |||||||
Institutional Class Shares | ||||||||||
| Issued | 3,179,486 | 3,766,128 | ||||||||
| Reinvested | 281,115 | 685,218 | ||||||||
| Redeemed | (2,511,537 | ) | (3,556,760 | ) | ||||||
| Total Institutional Class Shares | 949,064 | 894,586 | ||||||||
| Total change in shares: | 1,121,166 | 981,332 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 107
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Enhanced Income Fund
| Operations | Distributions | Ratio / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .06 | 0 | .13 | 0 | .09 | 0 | .22 | (0 | .12) | (0 | .12) | $ | 9 | .16 | 2 | .45% | $ | 3,755,710 | 0 | .80% | 2 | .66% | 0 | .90% | 34 | .97% | ||||||||||||||||||||||||||||||||||||||
| 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 R2 Shares(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .07 | 0 | .11 | 0 | .09 | 0 | .20 | (0 | .11) | (0 | .11) | $ | 9 | .16 | 2 | .22% | $ | 3,343 | 0 | .96% | 2 | .45% | 1 | .02% | 34 | .97% | ||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .07 | 0 | .14 | 0 | .09 | 0 | .23 | (0 | .13) | (0 | .13) | $ | 9 | .17 | 2 | .53% | $ | 13,112 | 0 | .60% | 2 | .90% | 0 | .71% | 34 | .97% | ||||||||||||||||||||||||||||||||||||||
| 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 (f) | $ | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .06 | 0 | .14 | 0 | .09 | 0 | .23 | (0 | .13) | (0 | .13) | $ | 9 | .16 | 2 | .61% | $ | 179,787,152 | 0 | .45% | 3 | .04% | 0 | .56% | 34 | .97% | ||||||||||||||||||||||||||||||||||||||
| 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) | 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 outstanding during the period. |
| (g) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
108 Semiannual Report 2009
Nationwide Government Bond Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Government Bond Fund (Class A at NAV) returned 7.22% versus 5.93% for its benchmark, the Merrill Lynch (ML) Government Master Index. For broader comparison, the average return for the Fund’s Lipper peer category of Intermediate U.S. Government Funds (consisting of 73 funds as of April 30, 2009) was 6.15% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund performed well due to its large allocation weighting to Agency mortgage-backed securities (MBS). Agency notes held by the Fund also performed well during the reporting period as the Federal Reserve Board began to target these sectors through various programs as a way to lower mortgage rates to aid the housing sector. Positive returns also were produced for the Fund by the general decline in interest rates during the reporting period.
What areas of investment detracted from Fund performance?
Although producing positive returns for the Fund, Treasury note performance was the worst-performing sector for the Fund during the reporting period. Early in the period Treasury notes were the best-performing sector, but as the credit markets began settling down in early 2009, the sector’s performance deteriorated. We held a negative view on the sector and kept Fund holdings to a minimum during the reporting period. With the exception of Treasury Inflation Protected Securities (TIPS), the Fund has a zero weighting in Treasuries as of the end of the period.
What is your outlook for the near term?
The recent data flow suggests that the recession is in its latter stages. The recovery process could be slow and uneven, however, due in part to what is likely to be a drawn-out rebuilding of balance sheets and a gradual return to healthy credit conditions. Markets would remain volatile with an upward bias in this scenario. The fragility of the financial system leaves the risks, both for the markets and the economy at large, skewed to the downside over the near term.
Subadviser:
Nationwide Asset Management, LLC
Nationwide Asset Management, LLC
Portfolio Managers:
Gary R. Hunt, CFA; David A. Magan, CFA; and
Srinath Sampath, CFA, ASA
Gary R. Hunt, CFA; David A. Magan, CFA; and
Srinath Sampath, CFA, ASA
2009 Semiannual Report 109
| Fund Performance | Nationwide Government Bond Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC2 | 7.22% | 6.29% | 5.02% | 5.55% | |||||||||||||
| w/SC3 | 2.71% | 1.76% | 4.12% | 5.09% | ||||||||||||||
Class B4 | w/o SC2 | 6.86% | 5.45% | 4.35% | 4.91% | |||||||||||||
| w/SC5 | 1.86% | 0.45% | 4.01% | 4.91% | ||||||||||||||
Class C6 | w/o SC2 | 6.86% | 5.46% | 4.35% | 5.01% | |||||||||||||
| w/SC7 | 5.86% | 4.46% | 4.35% | 5.01% | ||||||||||||||
| Class D | w/o SC2 | 7.38% | 6.50% | 5.30% | 5.81% | |||||||||||||
| w/SC8 | 2.57% | 1.68% | 4.34% | 5.33% | ||||||||||||||
Class R21,9,10 | 7.17% | 6.00% | 4.88% | 5.56% | ||||||||||||||
Institutional Class1 | 7.36% | 6.63% | 5.41% | 5.86% | ||||||||||||||
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.
| * | Not annualized. | |
| 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 R2 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 R2 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, which are no longer offered by the Fund. 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, which are no longer offered by the Fund. 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 shares within the first year after purchase. | |
| 8 | A 4.50% front-end sales charge was deducted. | |
| 9 | Not subject to any sales charges. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.11% | |||||
| Class B | 1.73% | |||||
| Class C | 1.73% | |||||
| Class D | 0.83% | |||||
| Class R2 | 1.43% | |||||
| Institutional Class | 0.73% | |||||
| * | Annualized data as of October 31, 2008. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Fund, the Merrill Lynch U.S. Treasury/Agency Master AAA Index (ML USTA)(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 4/30/09. 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 ML USTA gives a broad look at how U.S. government bonds have performed. | |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
110 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Government Bond Fund | 11/01/08 | 04/30/09 | 11/1/08 - 04/30/09 a | 11/1/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,072.22 | 5.55 | 1.08 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.44 | 5.42 | 1.08 | |||||||||||||||
| Class B | Actual | 1,000.00 | 1,068.63 | 9.08 | 1.77 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.02 | 8.89 | 1.77 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,068.63 | 9.08 | 1.77 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.02 | 8.89 | 1.77 | |||||||||||||||
| Class D | Actual | 1,000.00 | 1,073.76 | 4.02 | 0.78 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.92 | 3.92 | 0.78 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 1,071.66 | 7.04 | 1.37 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.00 | 6.88 | 1.37 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,073.59 | 4.11 | 0.80 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.83 | 4.02 | 0.80 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 111
| Portfolio Summary | Nationwide Government Bond Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| U.S. Government Sponsored & Agency Obligations | 37 | .9% | ||
| U.S. Government Mortgage Backed Agencies | 33 | .7% | ||
| Collateralized Mortgage Obligations | 28 | .1% | ||
| Other assets in excess of liabilities | 0 | .3% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Fannie Mae Pool, Pool #460669, 5.63%, 06/01/12 | 6 | .8% | ||
| Federal Home Loan Bank System, 5.31%, 12/28/12 | 6 | .5% | ||
| Freddie Mac REMICS, Series 2677, Class LE, 4.50%, 09/15/18 | 6 | .0% | ||
| Federal Home Loan Mortgage Corp., 2.13%, 03/23/12 | 5 | .9% | ||
Fannie Mae Grantor Trust, Series 2001-T11, Class B, 5.50%, 09/25/11 | 5 | .4% | ||
| U.S. Treasury Inflation Index Bond, 2.38%, 01/15/25 | 4 | .2% | ||
| Federal National Mortgage Association, 8.20%, 03/10/16 | 3 | .8% | ||
| Federal Home Loan Bank System, 8.02%, 02/13/15 | 3 | .7% | ||
| Federal Home Loan Mortgage Corp., 3.05%, 08/12/10 | 3 | .6% | ||
| Fannie Mae Pool, Pool #745769, 5.38%, 07/01/36 | 3 | .0% | ||
| Other Holdings | 51 | .1% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
112 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Government Bond Fund
| Collateralized Mortgage Obligations 28.1% | ||||||||
| Principal Amount | Market Value | |||||||
| Fannie Mae Grantor Trust | ||||||||
Series 2001-T2, Class B, 6.02%, 11/25/10 | $ | 3,127,000 | $ | 3,295,104 | ||||
Series 2001-T11, Class B, 5.50%, 09/25/11 | 8,585,000 | 9,125,147 | ||||||
| Fannie Mae REMICS | ||||||||
Series 2002-55, Class QD, 5.50%, 04/25/16 | 276,326 | 276,584 | ||||||
Series 1988-25, Class B, 9.25%, 10/25/18 | 9,888 | 10,796 | ||||||
Series 1990-7, Class B, 8.50%, 01/25/20 | 26,528 | 28,385 | ||||||
Series 1993-16, Class Z, 7.50%, 02/25/23 | 115,575 | 128,373 | ||||||
Series 1993-226, Class PK, 6.00%, 12/25/23 | 1,000,000 | 1,030,197 | ||||||
Series 2004-68, Class DY, 5.50%, 09/25/24 | 2,391,304 | 2,408,888 | ||||||
Series 2003-66, Class AP, 3.50%, 11/25/32 | 2,249,310 | 2,275,226 | ||||||
Series 1998-73, Class MZ, 6.30%, 10/17/38 | 4,250,741 | 4,247,376 | ||||||
| Fannie Mae-Aces | ||||||||
Series 2006-M2, Class A1F, 4.85%, 07/25/12 | 4,462,307 | 4,661,217 | ||||||
Series 1998-M4, Class D, 6.27%, 02/25/35 | 726,301 | 740,821 | ||||||
| Freddie Mac REMICS | ||||||||
| Series 2677, Class LE, 4.50%, 09/15/18 | 10,000,000 | 10,298,408 | ||||||
| Series 2960, Class BL, 5.00%, 02/15/23 | 3,916,728 | 4,091,006 | ||||||
| Series 1684, Class I, 6.50%, 03/15/24 | 1,940,979 | 2,090,834 | ||||||
| Series 2644, Class AY, 5.00%, 10/15/28 | 3,080,000 | 3,185,682 | ||||||
| Series 2296, Class H, 6.50%, 03/15/31 | 149,475 | 149,627 | ||||||
Total Collateralized Mortgage Obligations (cost $46,418,646) | 48,043,671 | |||||||
| U.S. Government Mortgage Backed Agencies 33.7% | ||||||||
| Fannie Mae Pool | ||||||||
| Pool #873942, 5.87%, 09/01/11 | 3,930,086 | 3,977,821 | ||||||
| Pool #460669, 5.63%, 06/01/12 | 10,880,343 | 11,602,575 | ||||||
| Pool #381570, 6.30%, 04/01/14 | 949,414 | 1,033,053 | ||||||
| Pool #381190, 7.90%, 08/01/15 | 1,476,739 | 1,696,432 | ||||||
| Pool #383142, 7.11%, 10/01/15 | 1,940,674 | 2,053,638 | ||||||
| Pool #380082, 6.35%, 03/01/16 | 3,739,926 | 4,005,545 | ||||||
| Pool #381995, 7.40%, 10/01/17 | 1,001,056 | 1,130,066 | ||||||
| Pool #385012, 6.84%, 04/01/20 | 4,247,036 | 4,789,390 | ||||||
| Pool #874740, 6.32%, 07/01/22 | 1,757,446 | 1,968,425 | ||||||
| Pool #874982, 6.81%, 11/01/25 | 1,727,709 | 2,007,830 | ||||||
| Pool #385258, 6.65%, 07/01/27 | 1,311,252 | 1,416,625 | ||||||
| Pool #386375, 4.79%, 08/01/28 | 1,757,827 | 1,699,752 | ||||||
| Pool #386113, 5.35%, 05/01/33 | 5,053,074 | 4,941,160 | ||||||
| Pool #387114, 5.62%, 09/01/34 | 1,178,570 | 1,239,297 | ||||||
| Pool #773298, 4.85%, 04/01/35(a) | 4,816,593 | 4,919,498 | ||||||
| Pool #813605, 5.36%, 07/01/36(a) | 3,926,853 | 4,024,252 | ||||||
| Pool #745769, 5.38%, 07/01/36(a) | 5,007,590 | 5,143,601 | ||||||
Total U.S. Government Mortgage Backed Agencies (cost $55,978,263) | 57,648,960 | |||||||
| U.S. Government Sponsored & Agency Obligations 37.9% | ||||||||
| Cal Dive I — Title XI, Inc., 4.93%, 02/01/27 | 4,497,538 | 4,519,576 | ||||||
| Federal Farm Credit Bank, 4.70%, 08/10/15 | 2,480,000 | 2,626,866 | ||||||
| Federal Home Loan Bank System | ||||||||
| 5.31%, 12/28/12 | 10,000,000 | 11,139,940 | ||||||
| 5.99%, 04/15/13 | 1,500,000 | 1,713,921 | ||||||
| 8.02%, 02/13/15 | 5,000,000 | 6,365,860 | ||||||
| 5.25%, 06/12/37 | 4,500,000 | 4,773,564 | ||||||
| Federal Home Loan Mortgage Corp. | ||||||||
| 3.05%, 08/12/10 | 6,000,000 | 6,147,924 | ||||||
| 2.13%, 03/23/12 | 10,000,000 | 10,103,900 | ||||||
| Federal National Mortgage Association | ||||||||
| 8.20%, 03/10/16 | 5,000,000 | 6,438,090 | ||||||
| 4.50%, 12/18/17 | 3,748,000 | 3,751,414 | ||||||
| U.S. Treasury Inflation Index Bond, 2.38%, 01/15/25 | 6,500,000 | 7,255,373 | ||||||
2009 Semiannual Report 113
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Government Bond Fund (Continued)
U.S. Government Sponsored & Agency Obligations (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Total U.S. Government Sponsored & Agency Obligations (cost $62,051,952) | $ | 64,836,428 | ||||||
Total Investments (cost $164,448,861) (b) — 99.7% | 170,529,059 | |||||||
Other assets in excess of liabilities — 0.3% | 544,020 | |||||||
NET ASSETS — 100.0% | $ | 171,073,079 | ||||||
| (a) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. | |
| (b) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| REMICS | Real Estate Mortgage Investment Conduits |
The accompanying notes are an integral part of these financial statements.
114 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Government Bond | |||||
| Fund | |||||
Assets: | |||||
| Investments, at value (cost $164,448,861) | $ | 170,529,059 | |||
| Interest receivable | 1,163,163 | ||||
| Receivable for capital shares issued | 92,682 | ||||
| Prepaid expenses and other assets | 107,581 | ||||
| Total Assets | 171,892,485 | ||||
Liabilities: | |||||
| Cash overdraft | 369,747 | ||||
| Distributions payable | 32,390 | ||||
| Payable for capital shares redeemed | 296,815 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 62,101 | ||||
| Fund administration fees | 18,285 | ||||
| Distribution fees | 15,204 | ||||
| Trustee fees | 459 | ||||
| Compliance program costs (Note 3) | 1,952 | ||||
| Custodian fees | 3,273 | ||||
| Printing fees | 7,793 | ||||
| Professional fees | 6,534 | ||||
| Other | 4,853 | ||||
| Total Liabilities | 819,406 | ||||
Net Assets | $ | 171,073,079 | |||
Represented by: | |||||
| Capital | $ | 164,418,127 | |||
| Accumulated net investment loss | (16,398 | ) | |||
| Accumulated net realized gains from investment transactions | 591,152 | ||||
| Net unrealized appreciation/(depreciation) from investments | 6,080,198 | ||||
Net Assets | $ | 171,073,079 | |||
Net Assets: | |||||
| Class A Shares | $ | 58,789,291 | |||
| Class B Shares | 1,286,468 | ||||
| Class C Shares | 2,184,865 | ||||
| Class D Shares | 107,739,736 | ||||
| Class R2 Shares (a) | 1,071,489 | ||||
| Institutional Class Shares | 1,230 | ||||
| Total | $ | 171,073,079 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 5,475,813 | ||||
| Class B Shares | 119,874 | ||||
| Class C Shares | 203,569 | ||||
| Class D Shares | 10,029,566 | ||||
| Class R2 Shares (a) | 99,712 | ||||
| Institutional Class Shares | 115 | ||||
| Total | 15,928,649 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 115
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Government Bond | |||||
| Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 10.74 | |||
| Class B Shares (b) | $ | 10.73 | |||
| Class C Shares (c) | $ | 10.73 | |||
| Class D Shares | $ | 10.74 | |||
| Class R2 Shares (a) | $ | 10.75 | |||
| Institutional Class Shares | $ | 10.74 | (d) | ||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 11.22 | |||
| Class D Shares | $ | 11.25 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 4.25 | % | |||
| Class D Shares | 4.50 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. | |
| (d) | The NAV reported above represents the traded NAV at April 30, 2009. |
The accompanying notes are an integral part of these financial statements.
116 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Government Bond | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 3,577,253 | |||
| Total Income | 3,577,253 | ||||
EXPENSES: | |||||
| Investment advisory fees | 388,111 | ||||
| Fund administration fees | 99,030 | ||||
| Distribution fees Class A | 63,263 | ||||
| Distribution fees Class B | 5,928 | ||||
| Distribution fees Class C | 11,852 | ||||
| Distribution fees Class R2 (a) | 1,694 | ||||
| Distribution fees Class X (b) | 2,373 | ||||
| Distribution fees Class Y (b) | 1,494 | ||||
| Administrative services fees Class A | 16,790 | ||||
| Administrative services fees Class D | 8,328 | ||||
| Administrative services fees Class R2 (a) | 347 | ||||
| Registration and filing fees | 46,274 | ||||
| Professional fees | 14,075 | ||||
| Printing fees | 19,382 | ||||
| Trustee fees | 5,559 | ||||
| Compliance program costs (Note 3) | 1,569 | ||||
| Custodian fees | 7,754 | ||||
| Other | 28,310 | ||||
| Total expenses before earnings credit | 722,133 | ||||
| Earnings credit (Note 5) | (1,560 | ) | |||
| Net Expenses | 720,573 | ||||
NET INVESTMENT INCOME | 2,856,680 | ||||
REALIZED/UNREALIZED GAINS FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 591,152 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 7,304,579 | ||||
| Net realized/ unrealized gains from investments | 7,895,731 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 10,752,411 | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (b) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 117
Statements of Changes in Net Assets
| Nationwide Government Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 2,856,680 | $ | 5,653,959 | ||||||
| Net realized gains from investment transactions | 591,152 | 1,144,077 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | 7,304,579 | (2,374,375 | ) | |||||||
| Change in net assets resulting from operations | 10,752,411 | 4,423,661 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (867,662 | ) | (1,493,865 | ) | ||||||
| Class B | (16,314 | ) | (22,033 | ) | ||||||
| Class C | (32,796 | ) | (100,944 | ) | ||||||
| Class D | (1,917,134 | ) | (3,837,331 | ) | ||||||
| Class R2 (a) | (10,668 | ) | (8,356 | ) | ||||||
| Class X (c) | (8,099 | ) | (46,968 | ) | ||||||
| Class Y (c) | (5,095 | ) | (24,004 | ) | ||||||
| Institutional Class | (22 | ) | (50 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (287,124 | ) | – | |||||||
| Class B | (7,144 | ) | – | |||||||
| Class C | (17,477 | ) | – | |||||||
| Class D | (614,665 | ) | – | |||||||
| Class R2 (a) | (3,422 | ) | – | |||||||
| Class X (c) | (6,714 | ) | – | |||||||
| Class Y (c) | (4,313 | ) | – | |||||||
| Institutional Class | (7 | ) | – | |||||||
| Change in net assets from shareholder distributions | (3,798,656 | ) | (5,533,551 | ) | ||||||
| Change in net assets from capital transactions | 20,143,680 | 25,129,088 | ||||||||
| Change in net assets | 27,097,435 | 24,019,198 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 143,975,644 | 119,956,446 | ||||||||
| End of period | $ | 171,073,079 | $ | 143,975,644 | ||||||
| Accumulated net investment loss at end of period | $ | (16,398 | ) | $ | (15,288 | ) | ||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 16,288,753 | $ | 29,272,028 | ||||||
| Proceeds from shares issued in class consolidation (c) | 1,837,026 | – | ||||||||
| Dividends reinvested | 1,123,510 | 1,446,933 | ||||||||
| Cost of shares redeemed (b) | (5,422,403 | ) | (18,581,160 | ) | ||||||
| Total Class A | 13,826,886 | 12,137,801 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
| (c) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. |
The accompanying notes are an integral part of these financial statements.
118 Semiannual Report 2009
| Nationwide Government Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | $ | 450,029 | $ | 875,701 | ||||||
| Dividends reinvested | 7,486 | 7,344 | ||||||||
| Cost of shares redeemed (b) | (276,074 | ) | (229,063 | ) | ||||||
| Total Class B | 181,441 | 653,982 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 1,874,920 | 5,315,054 | ||||||||
| Dividends reinvested | 10,538 | 42,607 | ||||||||
| Cost of shares redeemed | (2,227,114 | ) | (4,385,557 | ) | ||||||
| Total Class C | (341,656 | ) | 972,104 | |||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | 15,961,989 | 33,189,032 | ||||||||
| Dividends reinvested | 2,384,733 | 3,525,197 | ||||||||
| Cost of shares redeemed (b) | (10,462,456 | ) | (25,435,251 | ) | ||||||
| Total Class D | 7,884,266 | 11,278,978 | ||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 579,930 | 583,287 | ||||||||
| Dividends reinvested | 5,884 | 4,860 | ||||||||
| Cost of shares redeemed (b) | (111,399 | ) | (6,624 | ) | ||||||
| Total Class R2 | 474,415 | 581,523 | ||||||||
Class X Shares (c) | ||||||||||
| Proceeds from shares issued | 105,937 | 40,925 | ||||||||
| Dividends reinvested | 14,590 | 45,223 | ||||||||
| Cost of shares redeemed in class consolidation | (1,131,213 | ) | – | |||||||
| Cost of shares redeemed | (171,518 | ) | (466,723 | ) | ||||||
| Total Class X | (1,182,204 | ) | (380,575 | ) | ||||||
Class Y Shares (c) | ||||||||||
| Proceeds from shares issued | 2,151 | 9,705 | ||||||||
| Dividends reinvested | 8,065 | 20,171 | ||||||||
| Cost of shares redeemed in class consolidation | (705,813 | ) | – | |||||||
| Cost of shares redeemed | (3,900 | ) | (144,651 | ) | ||||||
| Total Class Y | (699,497 | ) | (114,775 | ) | ||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 29 | 50 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Class | 29 | 50 | ||||||||
| Change in net assets from capital transactions: | $ | 20,143,680 | $ | 25,129,088 | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
| (c) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 119
Statements of Changes in Net Assets (Continued)
| Nationwide Government Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,522,244 | 2,786,656 | ||||||||
| Issued in class consolidation (c) | 172,159 | – | ||||||||
| Reinvested | 104,774 | 138,223 | ||||||||
| Redeemed | (506,057 | ) | (1,780,973 | ) | ||||||
| Total Class A Shares | 1,293,120 | 1,143,906 | ||||||||
Class B Shares | ||||||||||
| Issued | 42,142 | 83,412 | ||||||||
| Reinvested | 697 | 702 | ||||||||
| Redeemed | (25,852 | ) | (21,874 | ) | ||||||
| Total Class B Shares | 16,987 | 62,240 | ||||||||
Class C Shares | ||||||||||
| Issued | 174,754 | 501,564 | ||||||||
| Reinvested | 983 | 4,043 | ||||||||
| Redeemed | (206,719 | ) | (418,502 | ) | ||||||
| Total Class C Shares | (30,982 | ) | 87,105 | |||||||
Class D Shares | ||||||||||
| Issued | 1,489,631 | 3,158,779 | ||||||||
| Reinvested | 222,302 | 336,599 | ||||||||
| Redeemed | (976,047 | ) | (2,431,327 | ) | ||||||
| Total Class D Shares | 735,886 | 1,064,051 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 53,819 | 55,702 | ||||||||
| Reinvested | 549 | 468 | ||||||||
| Redeemed | (10,378 | ) | (630 | ) | ||||||
| Total Class R2 Shares | 43,990 | 55,540 | ||||||||
Class X Shares (c) | ||||||||||
| Issued | 9,795 | 3,900 | ||||||||
| Reinvested | 1,363 | 4,319 | ||||||||
| Redeemed in class consolidation | (106,104 | ) | – | |||||||
| Redeemed | (16,220 | ) | (44,408 | ) | ||||||
| Total Class X Shares | (111,166 | ) | (36,189 | ) | ||||||
Class Y Shares (c) | ||||||||||
| Issued | 202 | 926 | ||||||||
| Reinvested | 753 | 1,927 | ||||||||
| Redeemed in class consolidation | (66,202 | ) | – | |||||||
| Redeemed | (368 | ) | (13,787 | ) | ||||||
| Total Class Y Shares | (65,615 | ) | (10,934 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (c) | Effective January 30, 2009, Class X and Class Y shares were converted to Class A shares. |
The accompanying notes are an integral part of these financial statements.
120 Semiannual Report 2009
| Nationwide Government Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 3 | 5 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Class Shares | 3 | 5 | ||||||||
| Total change in shares: | 1,882,223 | 2,365,724 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 121
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Government Bond Fund
| Operations | Distributions | Ratio / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Net | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 10 | .25 | 0 | .18 | 0 | .56 | 0 | .74 | (0 | .18) | (0 | .07) | (0 | .25) | – | $ | 10 | .74 | 7 | .22% | $ | 58,789,291 | 1 | .08% | 3 | .42% | 1 | .08% | 22 | .49% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .10%(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% | 1 | .07%(g) | 110 | .72% | |||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 10 | .24 | 0 | .15 | 0 | .56 | 0 | .71 | (0 | .15) | (0 | .07) | (0 | .22) | – | $ | 10 | .73 | 6 | .86% | $ | 1,286,468 | 1 | .77% | 2 | .76% | 1 | .77% | 22 | .49% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .71%(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% | 1 | .69%(g) | 110 | .72% | |||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 10 | .24 | 0 | .15 | 0 | .56 | 0 | .71 | (0 | .15) | (0 | .07) | (0 | .22) | – | $ | 10 | .73 | 6 | .86% | $ | 2,184,865 | 1 | .77% | 2 | .76% | 1 | .77% | 22 | .49% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .71%(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% | 1 | .69%(g) | 110 | .72% | |||||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–” are zero or have been rounded to zero. (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 outstanding during the period. (g) There were no fee reductions during the period. (h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
The accompanying notes are an integral part of these financial statements.
122 Semiannual Report 2009
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Government Bond Fund(Continued)
| Operations | Distributions | Ratio / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Net | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 10 | .25 | 0 | .20 | 0 | .56 | 0 | .76 | (0 | .20) | (0 | .07) | (0 | .27) | – | $ | 10 | .74 | 7 | .38% | $ | 107,739,736 | 0 | .78% | 3 | .72% | 0 | .78% | 22 | .49% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .81%(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% | 0 | .78%(g) | 110 | .72% | ||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 10 | .25 | 0 | .17 | 0 | .57 | 0 | .74 | (0 | .17) | (0 | .07) | (0 | .24) | – | $ | 10 | .75 | 7 | .17% | $ | 1,071,489 | 1 | .37% | 3 | .13% | 1 | .37% | 22 | .49% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .06%(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% | 1 | .37%(g) | 110 | .72% | |||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 10 | .25 | 0 | .20 | 0 | .56 | 0 | .76 | (0 | .20) | (0 | .07) | (0 | .27) | – | $ | 10 | .74 | 7 | .36% | $ | 1,230 | 0 | .80% | 3 | .69% | 0 | .80% | 22 | .49% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .72%(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% | 0 | .69%(g) | 110 | .72% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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 outstanding during the period. (g) There were no fee reductions during the period. (h) For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 123
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 semiannual period ended April 30, 2009, the Nationwide Short Duration Bond Fund (Class A at NAV) returned 3.03% versus 1.71% for its benchmark, the Merrill Lynch (ML) 1-3 Year Treasury Index. For broader comparison, the average return for the Fund’s Lipper peer category of Short Investment Grade Debt Funds (consisting of 268 funds as of April 30, 2009) was 1.01% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
During the reporting period, shorter-maturity spread products (maturing in less than three years) generally outperformed Treasuries. The Fund’s exposure to these sectors provided the most positive returns for the Fund during the reporting period in relation to the benchmark index. Fund performance was driven by a combination of low Treasury yields, distressed valuations and government programs such as TALF (Term ABS Loan Facility) and PPIP (Public-Private Investment Program) that are expected to improve liquidity and valuations in certain eligible securitized sectors by providing government financing for leveraged purchases. The U.S. Agency mortgage-backed securities (MBS) sector posted the strongest performance relative to Treasuries as the Federal Reserve Board expanded its purchase plan for Agency MBS by $750 billion in order to keep mortgage rates low. The asset-backed securities sector, which was the first to benefit from the TALF program, also performed well, as did U.S. Agency debentures.
What areas of investment detracted from Fund performance?
During the reporting period, the Fund’s allocations to commercial mortgage-backed securities (CMBS) were a drag on Fund performance. The weakening economy and declining property values were two negatives for this sector. The Fund’s holdings, however, are AAA-rated deals issued primarily in 2005 or earlier, before underwriting standards in the sector weakened. As investors sought out higher yields in spread products, U.S. Treasuries were one of the lowest-returning sectors of the fixed-income markets during the reporting period. The Fund maintained an approximate 25% to 30% position in U.S. Treasuries during the reporting period. Credit markets also were a slight drag on Fund performance as pressure on financials and continued ratings downgrades weighed on the sector. The Fund maintained a 10% to 15% position in U.S. credits.
What is your outlook for the near term?
While the economy remains extremely weak, recent signs of stabilization have appeared, including better-than-expected retail sales and durable goods orders. A modest level of inventory accumulation should occur in 2009 after two years of liquidations. Much of the timing of the eventual economic recovery will depend on the success of the global monetary and fiscal stimulus programs that have been enacted. Until the housing and labor markets show signs of improvement, we expect short-term interest rates to remain low, because the Federal Reserve has demonstrated its commitment to its quantitative easing policy. Spread sectors are poised to outperform in this low-yield environment as investors search for more attractive yield opportunities, but performance will be industry- and issuer-specific, based on credit fundamentals. Government policy will continue to be an important driver of the markets as we navigate through the rest of the year.
Subadviser:
Morley Capital Management, Inc.
Morley Capital Management, Inc.
Portfolio Managers:
Perpetua M. Phillips and Paul Rocheleau
Perpetua M. Phillips and Paul Rocheleau
124 Semiannual Report 2009
| Fund Performance | Nationwide Short Duration Bond Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | 3.03% | 2.32% | 3.22% | 3.83% | |||||||||||||
| w/SC3 | 0.68% | 0.04% | 2.75% | 3.59% | ||||||||||||||
Class C5 | w/o SC2 | 2.77% | 1.81% | 2.82% | 3.63% | |||||||||||||
| w/SC6 | 2.02% | 1.07% | 2.82% | 3.63% | ||||||||||||||
Institutional Class4 | 3.15% | 2.57% | 3.50% | 4.18% | ||||||||||||||
Service Class4 | 2.96% | 2.19% | 3.11% | 3.78% | ||||||||||||||
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 | These returns until the creation of Class A shares (7/16/03) include the performance of the Fund’s IRA Class shares, which are no longer offered by the Fund. 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. | |
| 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 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 Class C shares would have been lower. | |
| 6 | 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. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.79% | |||||
| Class C | 1.29% | |||||
| Institutional Class Shares | 0.54% | |||||
| Service Class Shares | 0.92% | |||||
| * | Annualized data as of October 31, 2008. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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) over a 10-year period ended 4/30/09. 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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 125
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Short Duration Bond Fund | 11/01/08 | 04/30/09 | 11/1/08 - 04/30/09 a | 11/1/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,030.26 | 3.78 | 0.75 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.08 | 3.77 | 0.75 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,027.70 | 6.35 | 1.26 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.53 | 6.34 | 1.26 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,031.49 | 2.62 | 0.52 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.22 | 2.61 | 0.52 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 1,029.56 | 4.56 | 0.91 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.30 | 4.55 | 0.91 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Represent the hypothetical 5% return before expenses. |
126 Semiannual Report 2009
| Portfolio Summary | Nationwide Short Duration Bond Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| U.S. Government Sponsored & Agency Obligations | 38 | .5% | ||
| Asset-Backed Securities | 19 | .2% | ||
| Corporate Bonds | 13 | .0% | ||
| Commercial Mortgage Backed Securities | 12 | .1% | ||
| Collateralized Mortgage Obligations | 10 | .4% | ||
| Repurchase Agreements | 5 | .4% | ||
| Yankee Dollars | 0 | .9% | ||
| Other assets in excess of liabilities | 0 | .5% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Automobile ABS | 11 | .0% | ||
| Diversified Financial Services | 5 | .0% | ||
| Other ABS | 4 | .2% | ||
| Banks | 3 | .7% | ||
| Home Equity ABS | 2 | .6% | ||
| Telecommunications | 1 | .5% | ||
| Credit Card Loans | 1 | .4% | ||
| Retail | 1 | .4% | ||
| Insurance | 1 | .3% | ||
| Pharmaceuticals | 1 | .0% | ||
| Other Industries* | 66 | .9% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| U.S. Treasury Notes, 4.50%, 05/15/10 | 12 | .8% | ||
| U.S. Treasury Notes, 4.75%, 02/15/10 | 9 | .9% | ||
| U.S. Treasury Notes, 2.00%, 09/30/10 | 4 | .2% | ||
| Federal Home Loan Mortgage Corp., 2.88%, 04/30/10 | 2 | .8% | ||
LB-UBS Commercial Mortgage Trust, Series 2005-C5, Class A2, 4.89%, 09/15/30 | 2 | .6% | ||
Fannie Mae REMICS, Series 2004-80, Class LG, 4.00%, 10/25/16 | 2 | .4% | ||
| Federal National Mortgage Association, 2.88%, 10/12/10 | 2 | .1% | ||
| Federal Home Loan Mortgage Corp., 2.88%, 11/23/10 | 2 | .1% | ||
| U.S. Treasury Notes, 1.38%, 02/15/12 | 2 | .1% | ||
CitiFinancial Mortgage Securities, Inc., Series 2003-4, Class AF4, 4.43%, 10/25/33 | 1 | .6% | ||
| Other Holdings* | 57 | .4% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 127
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Short Duration Bond Fund
| Asset-Backed Securities 19.2% | ||||||||
| Principal Amount | Market Value | |||||||
Automobile ABS 11.0% | ||||||||
AmeriCredit Automobile Receivables Trust, Series 2005-CF, Class A4, 4.63%, 06/06/12 | $ | 912,098 | $ | 907,716 | ||||
Capital Auto Receivables Asset Trust, Series 2008-1, Class A4A, 4.46%, 07/15/14 | 1,000,000 | 915,389 | ||||||
Daimler Chrysler Auto Trust, Series 2007-A, Class A4, 5.28%, 03/08/13 | 1,000,000 | 867,862 | ||||||
Honda Auto Receivables Owner Trust, Series 2006-3, Class A4, 5.11%, 04/15/12 | 1,140,000 | 1,163,550 | ||||||
Nissan Auto Receivables Owner Trust, Series 2008-A, Class A4, 4.28%, 06/16/14 | 700,000 | 704,142 | ||||||
USAA Auto Owner Trust, Series 2008-1, Class A4, 4.50%, 10/15/13 | 1,000,000 | 1,018,599 | ||||||
Volkswagen Auto Loan Enhanced Trust, Series 2008-1, Class A2, 3.71%, 04/20/11 | 685,767 | 688,114 | ||||||
| World Omni Auto Receivables Trust | ||||||||
Series 2008-B, Class A3A, 5.13%, 04/15/13 | 750,000 | 764,133 | ||||||
Series 2008-A, Class A4, 4.74%, 10/15/13 | 1,000,000 | 987,995 | ||||||
| 8,017,500 | ||||||||
Credit Card Loans 1.4% | ||||||||
Chase Issuance Trust, Series 2005-A7, Class A7, 4.55%, 03/15/13 | 1,000,000 | 1,021,950 | ||||||
Home Equity ABS 2.6% | ||||||||
CitiFinancial Mortgage Securities, Inc., Series 2003-4, Class AF4, 4.43%, 10/25/33 | 1,259,391 | 1,173,668 | ||||||
Residential Asset Securities Corp., Series 2003-KS10, Class AI4, 4.47%, 03/25/32 | 1,154,042 | 726,725 | ||||||
| 1,900,393 | ||||||||
Other ABS 4.2% | ||||||||
MBNA Practice Solutions Owner Trust, Series 2005-2, Class A4, 4.47%, 06/15/13 (a) | 979,710 | 983,091 | ||||||
Peco Energy Transition Trust, Series 2001-A, Class A1, 6.52%, 12/31/10 | 1,000,000 | 1,048,656 | ||||||
PG&E Energy Recovery Funding LLC, Series 2005-2, Class A2, 5.03%, 03/25/14 | 1,000,000 | 1,042,818 | ||||||
| 3,074,565 | ||||||||
Total Asset-Backed Securities (cost $14,602,952) | 14,014,408 | |||||||
| Collateralized Mortgage Obligations 10.4% | ||||||||
| Fannie Mae REMICS | ||||||||
Series 2004-79, Class VE, 4.50%, 08/25/10 | 580,706 | 589,695 | ||||||
Series 2004-9, Class YJ, 4.00%, 10/25/13 | 391,132 | 391,148 | ||||||
Series 2002-82, Class XD, 5.00%, 07/25/16 | 718,694 | 733,575 | ||||||
Series 2004-80, Class LG, 4.00%, 10/25/16 | 1,709,814 | 1,740,596 | ||||||
| Freddie Mac REMICS | ||||||||
| Series 2870, Class BC, 4.50%, 07/15/14 | 790,776 | 796,052 | ||||||
| Series 2676, Class CV, 4.00%, 05/15/16 | 873,889 | 892,302 | ||||||
| Series 2626, Class UN, 4.00%, 08/15/29 | 568,837 | 575,212 | ||||||
| Government National Mortgage Association | ||||||||
Series 2004-76, Class QA, 4.00%, 01/20/34 | 1,057,084 | 1,083,874 | ||||||
Series 2004-22, Class BK, 3.47%, 04/20/34 | 774,238 | 782,784 | ||||||
Total Collateralized Mortgage Obligations (cost $7,476,833) | 7,585,238 | |||||||
| Commercial Mortgage Backed Securities 12.1% | ||||||||
| Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2001-TOP4, Class A1, 5.06%, 11/15/16 | 431,201 | 433,255 | ||||||
Series 2001-TOP2, Class A1, 6.08%, 02/15/35 | 306,871 | 309,446 | ||||||
Series 2004-T14, Class A3, 4.80%, 01/12/41 | 700,418 | 672,902 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A1, 4.98%, 12/11/49 | 768,940 | 753,713 | ||||||
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A2, 5.51%, 04/10/38 (b) | 1,000,000 | 896,303 | ||||||
128 Semiannual Report 2009
Commercial Mortgage Backed Securities (continued) | ||||||||
| LB-UBS Commercial Mortgage Trust | ||||||||
Series 2005-C5, Class A2, 4.89%, 09/15/30 | $ | 2,000,000 | $ | 1,910,071 | ||||
Series 2007-C1, Class A1, 5.39%, 02/15/40 (b) | 649,354 | 655,686 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A1, 4.71%, 07/12/46 (b) | 956,287 | 945,564 | ||||||
Nomura Asset Securities Corp., Series 1998-D6, Class A1B, 6.59%, 03/15/30 | 50,983 | 50,987 | ||||||
| Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2005-C17, Class A2, 4.78%, 03/15/42 | 1,174,308 | 1,116,730 | ||||||
Series 2006-C27, Class A2, 5.62%, 07/15/45 | 1,300,000 | 1,139,056 | ||||||
Total Commercial Mortgage Backed Securities (cost $9,346,970) | 8,883,713 | |||||||
| Corporate Bonds 13.0% | ||||||||
Banks 3.7% | ||||||||
| JPMorgan Chase & Co., 2.63%, 12/01/10 | 750,000 | 766,706 | ||||||
| State Street Corp., 2.15%, 04/30/12 | 500,000 | 499,134 | ||||||
| US Bancorp, 2.25%, 03/13/12 | 500,000 | 501,992 | ||||||
| Wells Fargo & Co., Series E, 3.98%, 10/29/10 | 1,000,000 | 964,002 | ||||||
| 2,731,834 | ||||||||
Diversified Financial Services 4.1% | ||||||||
| General Electric Capital Corp., Series G, 2.20%, 06/08/12 | 1,000,000 | 1,006,259 | ||||||
| Merrill Lynch & Co., Inc., Series C, 4.25%, 02/08/10 | 1,000,000 | 987,957 | ||||||
| TIAA Global Markets, Inc., 4.88%, 01/12/11 (a) | 1,000,000 | 1,000,023 | ||||||
| 2,994,239 | ||||||||
Insurance 1.3% (a) | ||||||||
| Metropolitan Life Global Funding I, 4.63%, 08/19/10 | 1,000,000 | 972,258 | ||||||
Pharmaceuticals 1.0% | ||||||||
| Eli Lilly & Co., 3.55%, 03/06/12 | 200,000 | 205,384 | ||||||
| Pfizer, Inc., 3.17%, 03/15/11 (b) | 500,000 | 512,957 | ||||||
| 718,341 | ||||||||
Retail 1.4% | ||||||||
| Wal-Mart Stores, Inc., 4.13%, 02/15/11 | 1,000,000 | 1,042,197 | ||||||
Telecommunications 1.5% | ||||||||
| Cisco Systems, Inc., 5.25%, 02/22/11 | 1,000,000 | 1,063,191 | ||||||
Total Corporate Bonds (cost $9,518,113) | 9,522,060 | |||||||
| U.S. Government Sponsored & Agency Obligations 38.5% | ||||||||
| Federal Farm Credit Bank, 3.88%, 08/25/11 | 750,000 | 788,377 | ||||||
| Federal Home Loan Mortgage Corp. | ||||||||
| 2.88%, 04/30/10 | 2,000,000 | 2,037,132 | ||||||
| 2.88%, 11/23/10 | 1,500,000 | 1,540,230 | ||||||
| Federal National Mortgage Association | ||||||||
| 2.88%, 10/12/10 | 1,500,000 | 1,542,487 | ||||||
| 3.63%, 08/15/11 | 1,000,000 | 1,049,298 | ||||||
| U.S. Treasury Notes | ||||||||
| 4.75%, 02/15/10 | 7,000,000 | 7,237,342 | ||||||
| 4.50%, 05/15/10 | 9,000,000 | 9,370,197 | ||||||
| 2.00%, 09/30/10 | 3,000,000 | 3,056,835 | ||||||
| 1.38%, 02/15/12 | 1,500,000 | 1,504,101 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $27,356,951) | 28,125,999 | |||||||
| Yankee Dollar 0.9% | ||||||||
Diversified Financial Services 0.9% | ||||||||
| BP Capital Markets PLC, 3.13%, 03/10/12 | 650,000 | 659,691 | ||||||
Total Yankee Dollar (cost $649,963) | 659,691 | |||||||
2009 Semiannual Report 129
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Short Duration Bond Fund (Continued)
| Repurchase Agreements 5.4% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $1,360,732, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $1,387,940 | $ | 1,360,725 | $ | 1,360,725 | ||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $2,570,016, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $2,621,405 | 2,570,005 | 2,570,005 | ||||||
Total Repurchase Agreements (cost $3,930,730) | 3,930,730 | |||||||
Total Investments (cost $72,882,512) (c) — 99.5% | 72,721,839 | |||||||
Other assets in excess of liabilities — 0.5% | 339,816 | |||||||
NET ASSETS — 100.0% | $ | 73,061,655 | ||||||
| (a) | Rule 144A, Section 4(2), or other security which is restricted as to resale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at April 30, 2009 was $2,955,372 which represents 4.05% of net assets. | |
| (b) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. | |
| (c) | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| LLC | Limited Liability Company | |
| PLC | Public Limited Company | |
| REMICS | Real Estate Mortgage Investment Conduits |
The accompanying notes are an integral part of these financial statements.
130 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Short Duration | |||||
| Bond Fund | |||||
Assets: | |||||
| Investments, at value (cost $68,951,782) | $ | 68,791,109 | |||
| Repurchase agreements, at value and cost | 3,930,730 | ||||
| Total Investments | 72,721,839 | ||||
| Interest receivable | 487,447 | ||||
| Receivable for capital shares issued | 26,163 | ||||
| Prepaid expenses and other assets | 44,400 | ||||
| Total Assets | 73,279,849 | ||||
Liabilities: | |||||
| Distributions payable | 3,173 | ||||
| Payable for capital shares redeemed | 183,315 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 3,379 | ||||
| Fund administration fees | 7,757 | ||||
| Distribution fees | 14,967 | ||||
| Trustee fees | 384 | ||||
| Compliance program costs (Note 3) | 1,013 | ||||
| Custodian fees | 642 | ||||
| Printing fees | 164 | ||||
| Professional fees | 3,400 | ||||
| Total Liabilities | 218,194 | ||||
Net Assets | $ | 73,061,655 | |||
Represented by: | |||||
| Capital | $ | 76,452,101 | |||
| Accumulated net investment loss | (45,414 | ) | |||
| Accumulated net realized losses from investment transactions | (3,184,359 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (160,673 | ) | |||
Net Assets | $ | 73,061,655 | |||
Net Assets: | |||||
| Class A Shares | $ | 12,234,556 | |||
| Class C Shares | 469,163 | ||||
| Institutional Class Shares | 890,427 | ||||
| Service Class Shares | 59,467,509 | ||||
| Total | $ | 73,061,655 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,224,232 | ||||
| Class C Shares | 46,924 | ||||
| Institutional Class Shares | 89,043 | ||||
| Service Class Shares | 5,950,965 | ||||
| Total | 7,311,164 | ||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 131
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Short Duration | |||||
| Bond Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 9.99 | |||
| Class C Shares (a) | $ | 10.00 | |||
| Institutional Class Shares | $ | 10.00 | |||
| Service Class Shares | $ | 9.99 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.22 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 2.25 | % | |||
| (a) | For Class C Shares, the redemption price per share is reduced by 0.75% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
132 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Short Duration | |||||
| Bond Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 1,423,575 | |||
| Total Income | 1,423,575 | ||||
EXPENSES: | |||||
| Investment advisory fees | 126,824 | ||||
| Fund administration fees | 38,278 | ||||
| Distribution fees Class A | 8,005 | ||||
| Distribution fees Class C | 1,338 | ||||
| Distribution fees Service Class | 73,850 | ||||
| Distribution fees IRA Class (a) | 7,154 | ||||
| Administrative services fees Service Class | 40,251 | ||||
| Administrative services fees IRA Class (a) | 8,403 | ||||
| Registration and filing fees | 40,709 | ||||
| Professional fees | 6,946 | ||||
| Printing fees | 7,690 | ||||
| Trustee fees | 2,730 | ||||
| Compliance program costs (Note 3) | 767 | ||||
| Custodian fees | 2,974 | ||||
| Other | 17,821 | ||||
| Total expenses before waived/reimbursed expenses | 383,740 | ||||
| Earnings credit (Note 5) | (588 | ) | |||
| Investment advisory fees voluntarily waived | (23,071 | ) | |||
| Expenses reimbursed by adviser | (32,685 | ) | |||
| Net Expenses | 327,396 | ||||
NET INVESTMENT INCOME | 1,096,179 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (180,751 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 1,212,992 | ||||
| Net realized/ unrealized gains from investments | 1,032,241 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,128,420 | |||
| (a) | Effective January 30, 2009, IRA Class Shares were converted to Class A Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 133
Statements of Changes in Net Assets
| Nationwide Short Duration Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 1,096,179 | $ | 2,232,504 | ||||||
| Net realized gains (losses) from investment transactions | (180,751 | ) | 104,186 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,212,992 | (848,110 | ) | |||||||
| Change in net assets resulting from operations | 2,128,420 | 1,488,580 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (100,944 | ) | (22,696 | ) | ||||||
| Class C | (4,758 | ) | (6,029 | ) | ||||||
| Institutional Class | (14,473 | ) | (31,196 | ) | ||||||
| Service Class | (897,789 | ) | (1,964,756 | ) | ||||||
| IRA Class (b) | (84,133 | ) | (446,254 | ) | ||||||
| Change in net assets from shareholder distributions | (1,102,097 | ) | (2,470,931 | ) | ||||||
| Change in net assets from capital transactions | (2,828,704 | ) | 3,008,763 | |||||||
| Change in net assets | (1,802,381 | ) | 2,026,412 | |||||||
Net Assets: | ||||||||||
| Beginning of period | 74,864,036 | 72,837,624 | ||||||||
| End of period | $ | 73,061,655 | $ | 74,864,036 | ||||||
| Accumulated net investment loss at end of period | $ | (45,414 | ) | $ | (39,496 | ) | ||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 929,130 | $ | 570,042 | ||||||
| Proceeds from shares issued in class consolidation (b) | 11,191,304 | – | ||||||||
| Dividends reinvested | 92,083 | 18,949 | ||||||||
| Cost of shares redeemed (a) | (902,142 | ) | (537,285 | ) | ||||||
| Total Class A | 11,310,375 | 51,706 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 283,539 | 558,955 | ||||||||
| Dividends reinvested | 2,888 | 3,069 | ||||||||
| Cost of shares redeemed | (46,207 | ) | (371,888 | ) | ||||||
| Total Class C | 240,220 | 190,136 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 60,361 | 163,908 | ||||||||
| Dividends reinvested | 14,461 | 31,134 | ||||||||
| Cost of shares redeemed | (60,697 | ) | (162,609 | ) | ||||||
| Total Institutional Class | 14,125 | 32,433 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 8,183,969 | 20,538,574 | ||||||||
| Dividends reinvested | 896,232 | 1,955,134 | ||||||||
| Cost of shares redeemed (a) | (11,527,553 | ) | (16,766,290 | ) | ||||||
| Total Service Class | (2,447,352 | ) | 5,727,418 | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Includes redemption fees — see Note 4 to Financial Statements. |
| (b) | Effective January 30, 2009, IRA Class Shares were converted to Class A Shares. |
The accompanying notes are an integral part of these financial statements.
134 Semiannual Report 2009
| Nationwide Short Duration Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
IRA Class Shares(b) | ||||||||||
| Proceeds from shares issued | $ | 62,130 | $ | 279,021 | ||||||
| Dividends reinvested | 75,679 | 404,297 | ||||||||
| Cost of shares redeemed in class consolidation | (11,191,304 | ) | – | |||||||
| Cost of shares redeemed | (892,577 | ) | (3,676,248 | ) | ||||||
| Total IRA Class Shares | (11,946,072 | ) | (2,992,930 | ) | ||||||
| Change in net assets from capital transactions: | $ | (2,828,704 | ) | $ | 3,008,763 | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 93,976 | 56,521 | ||||||||
| Issued in class consolidation (b) | 1,127,054 | – | ||||||||
| Reinvested | 9,263 | 1,887 | ||||||||
| Redeemed | (90,870 | ) | (53,484 | ) | ||||||
| Total Class A Shares | 1,139,423 | 4,924 | ||||||||
Class C Shares | ||||||||||
| Issued | 28,672 | 55,244 | ||||||||
| Reinvested | 291 | 305 | ||||||||
| Redeemed | (4,649 | ) | (36,936 | ) | ||||||
| Total Class C Shares | 24,314 | 18,613 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 6,089 | 16,219 | ||||||||
| Reinvested | 1,458 | 3,095 | ||||||||
| Redeemed | (6,192 | ) | (16,215 | ) | ||||||
| Total Institutional Class Shares | 1,355 | 3,099 | ||||||||
Service Class Shares | ||||||||||
| Issued | 827,977 | 2,043,528 | ||||||||
| Reinvested | 90,479 | 194,491 | ||||||||
| Redeemed | (1,166,873 | ) | (1,670,134 | ) | ||||||
| Total Service Class Shares | (248,417 | ) | 567,885 | |||||||
IRA Class Shares (b) | ||||||||||
| Issued | 6,259 | 27,647 | ||||||||
| Reinvested | 7,668 | 40,180 | ||||||||
| Redeemed in class consolidation | (1,127,008 | ) | – | |||||||
| Redeemed | (90,828 | ) | (365,478 | ) | ||||||
| Total IRA Class Shares | (1,203,909 | ) | (297,651 | ) | ||||||
| Total change in shares: | (287,234 | ) | 296,870 | |||||||
2009 Semiannual Report 135
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Short Duration Bond Fund
| Operations | Distributions | Ratio / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Capital | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Reverse | Contributions | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Stock | from | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Split | Advisor | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .85 | 0 | .16 | 0 | .14 | 0 | .30 | (0 | .16) | – | (0 | .16) | – | – | – | $ | 9 | .99 | 3 | .03% | $ | 12,234,556 | 0 | .75% | 3 | .11% | 0 | .92% | 12 | .92% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 9 | .97 | 0 | .33 | (0 | .10) | 0 | .23 | (0 | .35) | – | (0 | .35) | – | – | – | $ | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .86 | 0 | .14 | 0 | .13 | 0 | .27 | (0 | .13) | – | (0 | .13) | – | – | – | $ | 10 | .00 | 2 | .77% | $ | 469,163 | 1 | .26% | 2 | .64% | 1 | .42% | 12 | .92% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .86 | 0 | .17 | 0 | .14 | 0 | .31 | (0 | .17) | – | (0 | .17) | – | – | – | $ | 10 | .00 | 3 | .15% | $ | 890,427 | 0 | .52% | 3 | .40% | 0 | .67% | 12 | .92% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–“are zero or have been rounded to zero.
| (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% |
The accompanying notes are an integral part of these financial statements.
136 Semiannual Report 2009
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Short Duration Bond Fund (Continued)
| Operations | Distributions | Ratio / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Capital | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Reverse | Contributions | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Stock | from | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Split | Advisor | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .85 | 0 | .15 | 0 | .14 | 0 | .29 | (0 | .15) | – | (0 | .15) | – | – | – | $ | 9 | .99 | 2 | .96% | $ | 59,467,509 | 0 | .91% | 3 | .02% | 1 | .06% | 12 | .92% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–“are zero or have been rounded to zero.
| (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% |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 137
Notes to Financial Statements
April 30, 2009 (Unaudited)
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”). The Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2009, the Trust operates thirty-two (32) 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 nine (9) series listed below (each, a “Fund”; collectively, the “Funds”):
| - | Nationwide International Value Fund (“International Value”) | |
| - | Nationwide Large Cap Value (“Large Cap Value”) | |
| - | 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.
| (a) | Security Valuation |
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 4:00 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 (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), 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.
138 Semiannual Report 2009
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 that hold 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 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 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.
The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157), effective with the beginning of the Funds’ current fiscal year. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques, giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are summarized below:
| • | Level 1 — quoted prices in active markets for identical assets | |
| • | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
| • | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities are not intended to indicate the risk associated with investing in those securities.
139 Semiannual Report 2009
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2009:
| Level 2 — Other | ||||||||||||||||||||||||||||||||||
| Significant Observable | Level 3 — Significant | |||||||||||||||||||||||||||||||||
| Level 1 — Quoted Prices | Inputs | Unobservable Inputs | Total | |||||||||||||||||||||||||||||||
| Investments | Other* | Investments | Other* | Investments | Other* | Investments | Other* | |||||||||||||||||||||||||||
| International Value | $ | 17,603,466 | $ | — | $ | 87,153,125 | $ | (910,986 | ) | $ | — | $ | — | $ | 104,756,591 | $ | (910,986 | ) | ||||||||||||||||
| Large Cap Value | 12,415,695 | — | 163,654 | — | — | — | 12,579,349 | — | ||||||||||||||||||||||||||
| U.S. Small Cap Value | 22,407,379 | — | 81,930 | — | — | — | 22,489,309 | — | ||||||||||||||||||||||||||
| Value | 1,310,716 | — | 79,910 | — | — | — | 1,390,626 | — | ||||||||||||||||||||||||||
| Value Opportunities | 5,735,269 | — | 64,751 | — | — | — | 5,800,020 | — | ||||||||||||||||||||||||||
| Bond | — | — | 78,966,440 | — | — | — | 78,966,440 | — | ||||||||||||||||||||||||||
| Enhanced Income | — | — | 182,338,273 | — | — | — | 182,338,273 | — | ||||||||||||||||||||||||||
| Government Bond | — | — | 170,529,059 | — | — | — | 170,529,059 | — | ||||||||||||||||||||||||||
| Short Duration Bond | — | — | 72,721,839 | — | — | �� | — | 72,721,839 | — | |||||||||||||||||||||||||
| * | Other financial instruments are derivative instruments not reflected in the Statement of Investments, such as futures, forwards and options, which are valued at the unrealized appreciation/depreciation on the instrument. | |
| Amounts designated as “—” are zero or have been rounded to zero. | ||
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with a member of the Federal Reserve System or 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 a 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. Funds that engage in foreign currency transactions translate foreign currency amounts 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.
| (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
2009 Semiannual Report 140
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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.
| (e) | Futures Contracts |
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, a Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the contract amount. 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.
| (g) | Securities Lending |
To generate additional income, each Fund may lend its 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 U.S. Government 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.
141 Semiannual Report 2009
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 April 30, 2009, the Funds did not have securities on loan.
| (h) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for International Value, Large Cap Value, U.S. Small Cap Value, Value, and Value Opportunities and are declared 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. Permanent differences 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. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as distributions of paid-in-capital.
| (i) | Federal Income Taxes |
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”) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing 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 such a tax position taken by a Fund is not sustained upon examination by a taxing authority, the filer 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). Each Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service.
Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to a Fund’s NAV and financial statements. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
| (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 series 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
2009 Semiannual Report 142
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 series. 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”), a holding company which is a direct wholly-owned subsidiary of 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 | ||||
| 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”) | ||||
| Enhanced Income | NFA | Morley Capital Management, Inc. (“Morley”) | ||||
| Government Bond | NFA | NWAM | ||||
| Short Duration Bond | NFA | Morley | ||||
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
143 Semiannual Report 2009
to the subadviser. For the six months ended April 30, 2009, the Funds paid investment advisory fees to NFA according to the schedule below:
| Fund | Fee Schedule | Total Fees | |||||||
| International Value | All Assets | 0.85 | % | ||||||
| Large Cap Value | Up to $100 million | 0.75 | % | ||||||
| On $100 million and more | 0.70 | % | |||||||
| 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 | Up to $500 million | 0.35 | % | ||||||
| Short Duration Bond | $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 | % | |||||||
| On $10 billion and more | 0.275 | % | |||||||
From such fees, pursuant to the subadvisory agreements, NFA paid the subadvisers $585,865, of which $197,297 was paid to affiliated subadvisers, for the six months ended April 30, 2009.
NFA and the Trust have entered into a written Expense Limitation Agreement with respect to the Funds (except Government Bond) that limits operating expenses (excluding any taxes, interest, brokerage commissions, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by a 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 February 28, 2010:
| Fund | Classes | Amount | ||||||||||
| International Value | All Classes | 1.00% | ||||||||||
| Large Cap Value | All Classes | 1.15% | ||||||||||
| U.S. Small Cap Value | All Classes | 1.09% | ||||||||||
| Value | All Classes | 0.85% | ||||||||||
| Value Opportunities | All Classes | 1.10% | ||||||||||
| Bond (a) | All Classes | 0.75% | ||||||||||
| Enhanced Income | All Classes | 0.45% | ||||||||||
| Short Duration Bond | All Classes | 0.55% | ||||||||||
| (a) | The Fund entered into an expense limitation agreement effective March 1, 2009. |
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
2009 Semiannual Report 144
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 April 30, 2009, 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:
| Fiscal Year | Fiscal Year | Six Months Ended | ||||||||||||
| 2007 | 2008 | April 30, 2009 | ||||||||||||
| Fund | Amount | Amount | Amount | |||||||||||
| International Value | $ | N/A | $ | 70,312 | (a) | $ | 77,810 | |||||||
| Large Cap Value | 638 | 7,575 | 34,154 | |||||||||||
| U.S. Small Cap Value | N/A | 50,475 | (a) | 44,909 | ||||||||||
| Value | N/A | 36,145 | (b) | 32,633 | ||||||||||
| Value Opportunities | 40,325 | 37,345 | 52,711 | |||||||||||
| Bond | — | — | 24,718 | |||||||||||
| Enhanced Income | — | $ | 115,330 | 91,149 | ||||||||||
| Short Duration Bond | — | — | 32,685 | |||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
| (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. (“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:
| Service | ||||||||||||||||||||||||||||||||||
| Class A | Class B | Class C | Class R2 | Class X | Class Y | Class | ||||||||||||||||||||||||||||
| Fund | Shares | Shares | Shares | Shares* | Shares** | Shares** | Shares | IRA 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 | ||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||
| * | Formerly Class R Shares. | |
| ** | This share class is no longer offered by the Funds. Effective January 30, 2009, all shares of this class were converted to Class A 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 and
145 Semiannual Report 2009
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. A CDSC, if applicable, will be imposed on redemptions of Class B 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 six months ended April 30, 2009, NFD received commissions of $63,539 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 $40,724 was re-allowed to affiliated broker-dealers of the Funds. Class X, Class Y, and IRA Class shares were converted to Class A shares effective January, 30, 2009.
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 series within the Trust in relation to the average daily net assets of each series 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 and 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 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
2009 Semiannual Report 146
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 R2 (formerly 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 Fund’s Class A, IRA Class and Service Class shares (IRA Class shares were converted to Class A shares effective January 30, 2009).
For the six months ended April 30, 2009, NFS received the following amounts in administrative services fees from each Fund:
| Fund | Amount | |||||||
| International Value | $ | 129,273 | ||||||
| Large Cap Value | 5,269 | |||||||
| U.S. Small Cap Value | 26,013 | |||||||
| Value | — | |||||||
| Value Opportunities | 1,090 | |||||||
| Bond | 20,082 | |||||||
| Enhanced Income | 444 | |||||||
| Government Bond | 81,158 | |||||||
| Short Duration Bond | 33,999 | |||||||
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFA and the Trust, the Trust 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 six months ended April 30, 2009, the Funds’ portion of such costs amounted to $6,789.
As of April 30, 2009, NFA or affiliates of NFA directly owned the percentage indicated below of the shares outstanding of the applicable Fund:
| % of Shares | ||||||||
| Outstanding | ||||||||
| Fund | Owned | |||||||
| International Value | 0.02% | |||||||
| Large Cap Value | 0.01% | |||||||
| U.S. Small Cap Value | 0.18% | |||||||
| Value | 45.14% | |||||||
| Value Opportunities | 0.03% | |||||||
4. Short-Term Trading Fees
The Funds (except Enhanced Income) assess a 2.00% short-term trading fee on all classes of shares that are purchased and are sold or exchanged within the minimum holding period: 30 calendar days from the date of purchase for Large Cap Value and Value; within 90 calendar days for International Value, U.S. Small Cap Value, and Value Opportunities, and within seven calendar days for Bond, Government Bond and Short Duration. The short-term trading fee is paid directly to the applicable Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the short-term trading fee applies, the shares that were held the longest will be redeemed first. This short-term trading fee is in addition to any
147 Semiannual Report 2009
applicable CDSC. The short-term trading 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 short-term trading fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.
For the six months ended April 30, 2009, the Funds had contributions to capital due to redemption fees in the amounts of:
| Institutional | ||||||||||||||||||||||||||||||||||
| Institutional | Service | Service | ||||||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class D | Class R2* | Class | Class | Class | ||||||||||||||||||||||||||
| Large Cap Value | $ | 382 | $ | 2 | $ | 7 | N/A | $ | — | N/A | N/A | N/A | ||||||||||||||||||||||
| U.S. Small Cap Value | $ | — | N/A | $ | 26 | N/A | N/A | $ | — | $ | — | N/A | ||||||||||||||||||||||
| Value | $ | 5 | N/A | $ | — | N/A | $ | — | N/A | N/A | N/A | |||||||||||||||||||||||
| Value Opportunities | $ | 69 | $ | 8 | $ | 101 | N/A | $ | — | $ | — | N/A | N/A | |||||||||||||||||||||
| Bond | $ | — | $ | — | $ | — | $ | 39 | $ | — | N/A | N/A | N/A | |||||||||||||||||||||
| Government Bond | $ | — | $ | — | $ | — | N/A | $ | — | $ | — | $ | — | N/A | ||||||||||||||||||||
| Short Duration Bond | $ | — | N/A | $ | — | N/A | N/A | N/A | N/A | $ | 8 | |||||||||||||||||||||||
For the year ended October 31, 2008, the Funds had contributions to capital due to redemption fees in the amounts of:
| Institutional | ||||||||||||||||||||||||||||||||||
| Institutional | Service | Service | ||||||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class D | Class R2* | Class | Class | Class | ||||||||||||||||||||||||||
| International Value(a) | $ | 398 | N/A | $ | 40 | N/A | N/A | $ | — | $ | — | N/A | ||||||||||||||||||||||
| Large Cap Value | $ | 39 | $ | 1 | $ | 105 | N/A | $ | 11 | N/A | N/A | N/A | ||||||||||||||||||||||
| U.S. Small Cap Value(a) | $ | — | N/A | $ | — | N/A | N/A | $ | — | $ | — | N/A | ||||||||||||||||||||||
| Value(b) | $ | — | N/A | $ | — | N/A | $ | — | N/A | N/A | N/A | |||||||||||||||||||||||
| Value Opportunities | $ | 30 | $ | 8 | $ | 22 | N/A | $ | — | $ | — | N/A | N/A | |||||||||||||||||||||
| Bond | $ | — | $ | — | $ | 34 | $ | 2 | $ | — | N/A | N/A | N/A | |||||||||||||||||||||
| Government Bond | $ | 20 | $ | 261 | $ | — | $ | 807 | $ | — | $ | — | $ | — | N/A | |||||||||||||||||||
| Short Duration Bond | $ | 696 | N/A | $ | — | N/A | N/A | N/A | N/A | $ | — | |||||||||||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
| (a) | The Fund commenced operations on December 21, 2007. | |
| (b) | The Fund commenced operations on February 28, 2008. | |
| * | Formerly Class R Shares. |
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 six months ended April 30, 2009.
2009 Semiannual Report 148
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those series that use DDAs based on the number of open shareholder accounts in each series. 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 series 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 six months ended April 30, 2009, were as follows:
| Fund | Purchases | Sales | ||||||||||
| International Value | $ | 25,615,485 | $ | 28,738,151 | ||||||||
| Large Cap Value | 8,067,085 | 8,545,300 | ||||||||||
| U.S. Small Cap Value | 3,914,391 | 3,366,513 | ||||||||||
| Value | 502,996 | 198,750 | ||||||||||
| Value Opportunities | 3,693,444 | 4,073,936 | ||||||||||
| Bond | 26,351,092 | 33,174,458 | ||||||||||
| Enhanced Income | 61,475,426 | 54,192,283 | ||||||||||
| Government Bond | 66,694,577 | 34,524,199 | ||||||||||
| Short Duration Bond | 9,007,157 | 11,930,330 | ||||||||||
Purchases and sales of U.S. Government Securities for the six months ended April 30, 2009, were as follows:
| Fund | Purchases | Sales | ||||||||||
| Bond | $ | 4,751,172 | $ | 11,362,411 | ||||||||
| Enhanced Income | 4,104,094 | — | ||||||||||
| Government Bond | 6,796,563 | 3,290,742 | ||||||||||
| Short Duration Bond | 1,503,281 | 3,141,406 | ||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
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
149 Semiannual Report 2009
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 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 Derivatives 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 has concluded that adoption of the Amendment did not impact each Fund’s financial statement disclosures.
In April 2009, the FASB issued FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 also provides guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the Funds’ financial statement disclosures.
10. Other
As of April 30, 2009, 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 | ||||||||||
| International Value | 91% | 1 | ||||||||||
| Large Cap Value | 72% | 3 | ||||||||||
| U.S. Small Cap Value | 91% | 1 | ||||||||||
| Value | 45% | 1 | ||||||||||
| Value Opportunities | 37% | 2 | ||||||||||
| Bond | 34% | 2 | ||||||||||
| Enhanced Income | 98% | 4 | ||||||||||
| Government Bond | 70% | 2 | ||||||||||
| Short Duration Bond | 60% | 1 | ||||||||||
2009 Semiannual Report 150
11. Federal Tax Information
As of April 30, 2009, the tax cost of securities and the breakdown of the unrealized appreciation/(depreciation) for each Fund were as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| International Value | $ | 158,680,762 | $ | 551,248 | $ | (54,475,419 | ) | $ | (53,924,171 | ) | ||||||||
| Large Cap Value | 15,583,530 | 618,913 | (3,623,094 | ) | (3,004,181 | ) | ||||||||||||
| U.S. Small Cap Value | 33,014,416 | 977,952 | (11,503,059 | ) | (10,525,107 | ) | ||||||||||||
| Value | 1,678,133 | 17,274 | (304,781 | ) | (287,507 | ) | ||||||||||||
| Value Opportunities | 6,335,664 | 810,191 | (1,345,835 | ) | (535,644 | ) | ||||||||||||
| Bond | 85,644,137 | 1,965,899 | (8,643,596 | ) | (6,677,697 | ) | ||||||||||||
| Enhanced Income | 181,224,855 | 1,421,872 | (308,454 | ) | 1,113,418 | |||||||||||||
| Government Bond | 164,448,861 | 6,508,849 | (428,651 | ) | 6,080,198 | |||||||||||||
| Short Duration Bond | 72,882,512 | 1,171,960 | (1,332,633 | ) | (160,673 | ) | ||||||||||||
12. Subsequent Event
On June 17, 2009, the Board of Trustees of Nationwide Mutual Funds (the “Board”) unanimously approved a Plan of Liquidation and Dissolution (the “Plan”) pursuant to which the Nationwide Value Opportunities Fund (the “Fund”) would cease operations and be liquidated. The Board’s decision to liquidate the Fund, and implementation of the Plan, are subject to approval of the Fund’s shareholders. Pending shareholder approval of the Plan, the Fund may set up a reserve account for expenses incurred in connection with the liquidation to ensure that all shareholders are treated fairly. Any such reserve account may affect the amount of redemption proceeds payable to a shareholder upon redemption.
2009 Semiannual Report 151
Supplemental Information
(Unaudited)
A. Renewal of Advisory (and Sub-advisory) Agreements
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
The Board has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
On December 2, 2008, the Trustees met in person with their independent legal counsel (“Independent Legal Counsel”), the Adviser, Trust counsel, and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the December 2, 2008 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
In preparation for the December 2, 2008 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2008) compared with performance groups and performance universes created by Lipper (and in some cases, customized peer groups created by the Adviser) of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2008) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2008, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) information from the Adviser describing, on a Fund-by-Fund basis, any fees paid to the Adviser for managing similar, non-affiliated institutional accounts, including the range of fee levels for such accounts, and (vii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
At the December 2, 2008 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds and those paid by non-affiliated institutional clients to the Adviser for managing similar accounts, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense
152 Semiannual Report 2009
caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
As part of the December 2, 2008 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions at the contract approval meeting of the Board of Trustees to be held on January 16, 2009.
At the January 16, 2009 meeting of the Board of Trustees of the Trust, the Board received and considered information provided by the Adviser in follow-up from the December 2, 2008 Board meeting and, after consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, concluded unanimously to renew the Advisory Agreement for the reasons set forth in the following section.
Nationwide International Value Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and AllianceBernstein L.P. (“AllianceBernstein”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the three-month period ended September 30, 2008 was in the fifth quintile of its Peer Universe, and below the performance of the MSCI EAFE Index, the Fund’s benchmark. The Trustees noted the fact that AllianceBernstein was employing a momentum style of management for the Fund, resulting in better performance during economic upswings, but greater losses during downswings. The Trustees also noted that, given the Fund’s short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the fourth quintile of its Peer Group, but that the Fund’s actual advisory fee was in the first quintile of its Peer Group. The Trustees also noted that total expenses were in the second quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees), and that such expense cap is a way for the Fund to stay competitive within its Peer Group. The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the Fund invests in a capacity-constrained asset class, which necessarily limits profitability.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Large Cap Value Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and NorthPointe Capital, LLC (“NorthPointe”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one- and five-year periods ended September 30, 2008, the Fund’s performance for Class A shares was in the first quintile of its Peer Group, while for the three-year period ended September 30, 2008, the Fund’s performance for Class A shares was in the second quintile of its Peer Group. The Trustees noted that, for each period, the Fund outperformed its benchmark, the Russell 1000 Value Index.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were above the median of its Peer Group, placing the Fund in the third and fourth quintiles of its Peer Group, respectively. The Trustees also noted that the Fund’s total expenses were in the fourth quintile of its Peer
2009 Semiannual Report 153
Supplemental Information (Continued)
(Unaudited)
Group. In this regard, the Trustees noted that total expenses (excluding 12b-1 and administrative services fees) were only two basis points above the median of its Peer Group. The Trustees noted that shareholders of the Fund receive the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the breakpoints included in the Fund’s proposed investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide U.S. Small Cap Value Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Dimensional Fund Advisors L.P. (“Dimensional”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for the three-month period ended September 30, 2008, the Fund’s performance for Class A shares was in the second quintile of its Peer Group, and below the performance of the Russell 2000 Value Index, the Fund’s benchmark. The Trustees considered market conditions affecting the Fund’s recent launch. The Trustees also noted that, given the Fund’s short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the third quintile and slightly above the median of its Peer Group, but that the Fund’s actual advisory fee was in the first quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the third quintile and slightly above the median of its Peer Group. In this regard, the relatively small asset size of the Fund compared to its Peer Group was discussed. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the Fund invests in a capacity-constrained asset class, which necessarily limits profitability.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Value Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Diamond Hill Capital Management, Inc. (“Diamond Hill”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for the three-month period ended September 30, 2008, the Fund’s performance for Class A shares was in the fourth quintile of its Peer Group and below the performance of the Russell 1000 Index, the Fund’s benchmark. The Trustees also noted that the Fund’s Class A shares outperformed its benchmark for the one-month period ended October 31, 2008. The Trustees considered market conditions affecting the Fund’s recent launch. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the second quintile of its Peer Group, while the Fund’s actual advisory fee and total expenses were in the first quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the
154 Semiannual Report 2009
profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the asset levels of the Fund were not currently so large as to warrant formal contractual breakpoints.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Value Opportunities Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and NorthPointe, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2008, the Fund’s performance for Class A shares was in the fifth, fifth, and fourth quintiles of its Peer Group, respectively. In this regard, it was noted that the Fund’s Peer Group was composed of small cap core funds. The Trustees also noted that for each period, the Fund’s underperformed its benchmark, the Russell 2000 Index. The Trustees noted that the Fund is on the watch list and under close review. The Trustees reviewed NorthPointe’s response to the close review questionnaire and as well as a performance analysis report that had been prepared by NFA regarding NorthPointe’s performance. The Trustees noted that NFA was considering various strategic options with respect to the Fund.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were in the first quintile of its Peer Group. The Trustees noted that the Fund’s total expenses were in the second quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Bond Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Nationwide Asset Management, LLC (“NWAM”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for each of the three- and five-year periods ended September 30, 2008 was in the first quintile of its Peer Group, while the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 placed it in the third quintile and slightly below the median of its Peer Group. For each period, the Trustees noted that the Fund underperformed its benchmark, the Barclays Capital U.S. Aggregate Government/Credit Bond Index.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the third quintile and slightly below the median of its Peer Group, while the Fund’s actual advisory fee for Class A shares was in the third quintile and slightly above the median of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the fourth quintile of its Peer Group. In this regard, the Trustees considered that NFA proposed putting an expense cap (excluding 12b-1 and administrative service fees) in place for the Fund, which brought the Fund close to the median of its Peer Group for total expenses (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that
2009 Semiannual Report 155
Supplemental Information (Continued)
(Unaudited)
the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Enhanced Income Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Morley Capital, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Institutional Class shares for each of the one-, three-, and five-year periods ended September 30, 2008 was in the first quintile of the Peer Group, but below the Fund’s benchmark, which is a 50%/50% blend of the Merrill Lynch 6-Month Treasury Bill Index and the Merrill Lynch 1-Year Treasury Note Index. The Trustees also noted that Morley Capital had recently replaced one of the Fund’s portfolio managers due to a portfolio manager departure.
The Trustees noted that the Fund’s contractual advisory fee for Institutional Class shares was in the third quintile and slightly above the median of its Peer Group, and that the Fund’s actual advisory fee was in the fifth quintile of its Peer Group, but only three basis points above the median of the Peer Group. The Trustees also noted that the Fund’s total expenses were in the fifth quintile of its Peer Group, but discussed the fact that the expenses were measured against a very narrow spread (i.e., 7 other ultra-short obligation funds). The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Government Bond Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and NWAM, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for each of the one- and three-year periods ended September 30, 2008 was in the second quintile of the Peer Group, and the Fund’s performance for Class A shares for the five-year period ended September 30, 2008 was in the first quintile of its Peer Group. The Trustees noted that for each period, the Fund underperformed its benchmark, the Merrill Lynch Government Master Index. The Trustees noted that NWAM had recently added new portfolio managers for the Fund, increasing the resources devoted to the Fund.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the second quintile of its Peer Group, but that the Fund’s actual advisory fee and total expenses were in the fifth quintile of its Peer Group. In this regard, the Trustees considered that total expenses (excluding 12b-1 and administrative service fees) were only slightly above the median of the Peer Group. The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to
156 Semiannual Report 2009
shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Short Duration Bond Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Morley Capital Management, Inc. (“Morley Capital”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for each of the one-, three-, and five-year periods ended September 30, 2008 was in the first quintile of the Peer Group. The Trustees noted that for each period, the Fund underperformed its benchmark, the Merrill Lynch 1-3 Year Treasury Index. The Trustees also noted that Morley Capital recently replaced one of the Fund’s portfolio managers due to a portfolio manager departure.
The Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class A shares were in the first quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
2009 Semiannual Report 157
Management Information
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | ||||||||||
| 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 (formerly Mitchell Madison Group), until 2001. Ms. Dryden was a managing partner at Mitchell Madison Group from 1996-2001. | 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 | ||||||||||
158 Semiannual Report 2009
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | Retired. 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, and served as Board Member of Columbus Downtown Development Corporation from June 2002 to June 2006. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts and Chairman of the Greater Columbus Convention and Visitors Bureau. | 94 | None | ||||||||||
2009 Semiannual Report 159
Management Information (Continued)
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 serves as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Fund’s 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 by calling 800-848-0920.
160 Semiannual Report 2009
| 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 S. Spangler Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1966 | President and Chief Executive Officer since June 2008 | 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 2008 | 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 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. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. 2 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.2From 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 | ||||||||||
2009 Semiannual Report 161
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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.2 She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide.2 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 | ||||||||||
| Lynnett Berger Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1965 | Vice President and Chief Investment Officer since April 2009 | Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Vice President of Economic Risk Lab (Operational Risk Group) of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007. | N/A | N/A | ||||||||||
162 Semiannual Report 2009
| 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 Butler4 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 and Director 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. Butler has announced his resignation effective June 30, 2009. |
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 and 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. This summary is available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
2009 Semiannual Report 163
P.O. Box 182205
Columbus, OH 43218-2205
nationwide.com/mutualfunds
Nationwide, Nationwide Financial,
the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
©2009 Nationwide Funds Group.
All rights reserved.
SAR-CORE 6/09
Nationwide Mutual Funds
SemiannualReport
April 30, 2009 (Unaudited)
Index Funds
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
SemiannualReport
April 30, 2009 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Index Funds | |||
| 5 | Nationwide Bond Index Fund | ||
| 39 | Nationwide International Index Fund | ||
| 72 | Nationwide Mid Cap Market Index Fund | ||
| 90 | Nationwide S&P 500 Index Fund | ||
| 110 | Nationwide Small Cap Index Fund | ||
| 143 | 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
April 30, 2009
Dear Shareholder,
The semiannual reporting period for the Nationwide Mutual Funds (NMF) has encompassed two extremely difficult quarters for stock mutual fund investing. Although the blue-chip indexes, including the Dow Jones Industrial Average (DJIA), sank to 12-year lows on March 9th of this year, the market has shown some signs of cautious rebounding. It may be too early to call this a recovery, but at the start of the second quarter of 2009, stock prices began to show signs of improvement.
Federal Reserve Board Chairman Ben Bernanke has talked about seeing “green shoots” in the financial system in the wake of the central bank’s unprecedented efforts to get credit flowing again. Chairman Bernanke has cited as evidence of economic improvement: the rise in consumer spending in the first quarter of the year; a slow, but steady rate of new and existing home purchases, and a modest revival of the credit markets.
Some of those “shoots” are, indeed, hopeful signs. The recession, however, is not fading as quickly as we all would wish. The much-anticipated government plan to remove toxic assets from banks’ balance sheets, as of this writing, has not been implemented. The results from the government’s stress testing of banks are just being disseminated, and the early news indicates that some banks may require more relief.
In the coming months, investors will be keeping an eye on Washington as much as on Wall Street. The damage to the economy remains severe; the latest government figures suggest that, at best, the pace of the negative news has slowed.
This has been a challenging time in the financial markets. At Nationwide® and Nationwide Funds Groupsm we continue to keep a long-term perspective. We remain committed to the underlying investment principles of our funds.
We thank you for entrusting your assets to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
President
Nationwide Mutual Funds
2009 Semiannual Report 1
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, nationwide.com/mutualfunds.
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, may be less liquid and have significant short-term price volatility.
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 nationwide.com/mutualfunds.
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.
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.
Barclays Capital (BARCAP) 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 or more) that is generally representative of the bond market as a whole.
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.
Morgan Stanley Capital International Emerging Markets (MSCI EMsm) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
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.
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
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.
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
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 nationwide.com/mutualfunds. 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.
2 Semiannual Report 2009
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.
Based in Conshohocken, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors (NIA).
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 a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
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.
2009 Semiannual Report 3
Summary of Market Environment
The following is a summary from Nationwide Funds Group regarding market conditions during the reporting period.
The first half of the reporting period was filled with economic events that have not happened in the United States in more than 50 years, nor, in many cases, since the time of the Great Depression of the late 1920s and 1930s. A rebound in the markets began in mid-March and continued into April, evidence that market observers, as well as investors, are anticipating improvement in the economy during the latter half of 2009 and early 2010. Economic news during the reporting period was mixed, with signs of brightening frequently offset by events that indicated a deepening of the recession.
Some of the negative news included: (1) a 6.1% decrease in the annualized U.S. gross domestic product (GDP) for the first quarter of 2009, as reported by the U.S. Bureau of Economic Analysis; (2) a continuously rising jobless rate, which hit 8.9% in April 2009 according to the Department of Labor (DOL), representing the highest level in the jobless rate since 1983 (as companies continue laying off workers, the unemployment rate well may increase to 10% by the end of 2009); (3) a spate of new questions about the capital positions of some of the largest U.S. financial institutions; (4) persistently-low consumer confidence, resulting in depressed spending levels; and (5) the spreading of residential real estate market troubles to commercial real estate, causing even greater levels of stress in the financial system.
Toward the end of March and into April, some signs emerged that the worst of the economic news might be behind us: (1) indicators pointed to the possibility that price declines in the U.S. housing market were nearing an end; (2) President Obama’s administration announced the “Public-Private Investment Program” (PPIP) to help banks unload some of their illiquid assets; and (3) the U.S. Bureau of Economic Analysis reported in April that personal consumption rose by 2.2% in the first quarter of 2009, an indication that consumer confidence may be strengthening.
A broad look at index performance during the reporting period revealed that mid-capitalization U.S. equities beat their large- and small-cap counterparts by a significant margin. Specifically, large caps, as measured by the Standard & Poor’s 500® (S&P 500) Index, fell 8.5% during the reporting period amid continuing market volatility. Mid-caps, as measured by the Standard & Poor’s MidCap 400® (S&P 400) Index, lost 0.2%, and small caps, as measured by the Russell 2000® Index, declined 8.4%.
In general, the performance of international stocks experienced a significant upswing during the latter part of the reporting period, outpacing that of U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost 2.4% during the reporting period, despite a gain of more than 7.9% during the latter half of the period. Emerging market stocks, as measured by the MSCI Emerging Markets (MSCI EM) Indexsm, gained more than 16% during the reporting period, including a gain of more than 25% during the last three months of the reporting period.
The reporting period was positive overall for fixed-income investors. The broad-based fixed-income Barclays Capital (BARCAP) U.S. Aggregate Bond Index gained 7.7% during the reporting period.
4 Semiannual Report 2009
| 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 (BARCAP) U.S. Aggregate Bond Index as closely as possible before the deduction of Fund expenses. For the semiannual period ended April 30, 2009, the Nationwide Bond Index Fund (Class A at NAV) returned 7.19% versus 7.74% for its benchmark, the BARCAP U.S. Aggregate Bond Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Intermediate Investment Grade Debt Funds (consisting of 605 funds as of April 30, 2009) was 5.87% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The BARCAP U.S. Aggregate Bond Index sectors that posted the strongest performance for the reporting period and in which the Fund was invested, were non-government-owned and/or backed debt, including corporate bonds, with a return of 12.78%, and asset-backed securities (ABS), with 7.93%, plus government-owned and/or backed Agency mortgages and debentures, with returns of 8.29% and 6.65%, respectively. The corporate markets rallied sharply after spread levels versus Treasuries hit historically high levels near the end of 2008, prompting investors to return to the asset class. The ABS market rallied after the creation of TALF (Term ABS Loan Facility), with spreads narrowing significantly from their highs in November 2008. Agency mortgages and debentures performed well after the creation of the Mortgage and Agency purchase programs as part of the initial quantitative easing program announced in November 2008.
What areas of investment detracted from Fund performance?
By contrast, the sectors that lagged within the benchmark index and in which the Fund was invested, were commercial mortgage-backed securities (CMBS) and Treasuries. The CMBS sector continued to be afflicted by liquidity issues and returned only 1.32% for the reporting period. This sector began to respond in a more positive fashion once the Public-Private Investment Program(PPIP) and TALF programs began to take effect by returning 14.39% from February 28, 2009, through the end of the reporting period.
What is your outlook for the near term?
Looking ahead, we expect to see continued volatility in the U.S. and global economies. While consumption looks to have temporarily stabilized, it remains to be seen whether the current bounce is sustainable. On the one hand, lower energy prices and an upcoming stimulus package are supportive. On the other hand, household wealth has been decimated by declines in equity and housing prices, and labor income is now declining at a marked pace. Overall, we expect the markets to remain volatile. The numerous government initiatives that have been implemented (quantitative easing, TALF) or will be implemented (PPIP), however, should continue to benefit the fixed-income markets over the longer term.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Managers:
Scott Amero; Curtis Arledge; Matthew Marra; and Andrew Phillips
Scott Amero; Curtis Arledge; Matthew Marra; and Andrew Phillips
2009 Semiannual Report 5
| Fund Performance | Nationwide Bond Index Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | 7.19% | 3.16% | 4.14% | 5.05% | |||||||||||||
| w/SC3 | 1.03% | -2.78% | 2.92% | 4.43% | ||||||||||||||
Class B4 | w/o SC2 | 6.85% | 2.40% | 3.49% | 4.56% | |||||||||||||
| w/SC5 | 1.85% | -2.54% | 3.14% | 4.56% | ||||||||||||||
Class C7 | w/o SC2 | 6.85% | 2.47% | 3.50% | 4.57% | |||||||||||||
| w/SC8 | 5.85% | 1.48% | 3.50% | 4.57% | ||||||||||||||
Institutional Class1,6 | 7.49% | 3.50% | 4.54% | 5.45% | ||||||||||||||
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.
| * | Not Annualized. | |
| 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. |
Expense Ratios
| Gross | Net | |||||
| Expense | Expense | |||||
| Ratio* | Ratio* | |||||
| Class A | 0.75% | 0.70% | ||||
| Class B | 1.37% | 1.32% | ||||
| Class C | 1.37% | 1.32% | ||||
| Institutional Class | 0.37% | 0.32% | ||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010 Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 versus performance of the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index)(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 04/30/09. 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 index comprised of U.S. government securities and corporate debt securities and is generally representative of the bond market as a whole. | |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor statistics the, CPI represents Changes in prices of a basket of goods and services purchased for consumption by urban households. |
6 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Bond Index Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,071.91 | 3.47 | 0.68 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.44 | 3.39 | 0.68 | |||||||||||||||
| Class B | Actual | 1,000.00 | 1,068.49 | 6.76 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.26 | 6.62 | 1.32 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,068.49 | 6.76 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.26 | 6.62 | 1.32 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,074.89 | 1.65 | 0.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,023.21 | 1.61 | 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 to Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
2009 Semiannual Report 7
| Portfolio Summary | Nationwide Bond Index Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| U.S. Government Mortgage Backed Agencies | 38 | .9% | ||
| U.S. Government Sponsored & Agency Obligations | 29 | .3% | ||
| Corporate Bonds | 20 | .0% | ||
| Repurchase Agreements | 19 | .8% | ||
| Commercial Mortgage Backed Securities | 4 | .0% | ||
| Sovereign Bonds | 2 | .5% | ||
| Asset-Backed Securities | 1 | .3% | ||
| Yankee Dollars | 0 | .8% | ||
| Municipal Bonds | 0 | .2% | ||
| Liabilities in excess of other assets | (16 | .8)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Banks | 7 | .2% | ||
| Diversified Financial Services | 4 | .7% | ||
| Electric | 1 | .6% | ||
| Oil & Gas | 1 | .0% | ||
| Media | 0 | .9% | ||
| Automobile | 0 | .8% | ||
| Pharmaceuticals | 0 | .8% | ||
| Retail | 0 | .8% | ||
| Insurance | 0 | .7% | ||
| Pipelines | 0 | .5% | ||
| Other Industries* | 81 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Fannie Mae Pool, Pool #995050, 6.00%, 09/01/37 | 5 | .8% | ||
| Federal National Mortgage Association TBA, 6.00%, 05/12/39 | 4 | .0% | ||
| Federal Home Loan Mortgage Corp. TBA, 5.00%, 05/12/39 | 4 | .0% | ||
| Fannie Mae Pool, Pool #555421, 5.00%, 05/01/33 | 3 | .5% | ||
| Federal National Mortgage Association TBA, 5.50%, 05/12/39 | 2 | .6% | ||
| U.S. Treasury Notes, 4.50%, 09/30/11 | 2 | .1% | ||
| U.S. Treasury Notes, 2.75%, 02/28/13 | 1 | .8% | ||
| U.S. Treasury Notes, 4.25%, 11/15/17 | 1 | .7% | ||
| Federal Home Loan Mortgage Corp., 2.75%, 04/11/11 | 1 | .7% | ||
| Federal Home Loan Mortgage Corp. TBA, 4.50%, 05/01/19 | 1 | .6% | ||
| Other Holdings* | 71 | .2% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
8 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund
| Asset-Backed Securities 1.3% | ||||||||
| Principal Amount | Market Value | |||||||
Automobile ABS 0.8% | ||||||||
Honda Auto Receivables Owner Trust, Series 2006-3, Class A3, 5.12%, 10/15/10 | $ | 1,828,203 | $ | 1,843,683 | ||||
USAA Auto Owner Trust, Series 2008-3, Class A3, 4.28%, 10/15/12 | 4,750,000 | 4,853,491 | ||||||
| 6,697,174 | ||||||||
Credit Card ABS 0.4% (a) | ||||||||
Citibank Credit Card Issuance Trust, Series 2006-A4, Class A4, 5.45%, 05/10/13 | 2,820,000 | 2,906,348 | ||||||
Home Equity ABS 0.1% (a) | ||||||||
Aegis Asset Backed Securities Trust, Series 2006-1, Class A1, 0.52%, 01/25/37 | 1,252,772 | 1,162,850 | ||||||
Total Asset-Backed Securities (cost $10,749,934) | 10,766,372 | |||||||
| Commercial Mortgage Backed Securities 4.0% | ||||||||
Banks 1.8% | ||||||||
Banc of America Commercial Mortgage, Inc., Series 2006-6, Class A4, 5.36%, 10/10/45 | 2,830,000 | 2,211,678 | ||||||
First Union National Bank Commercial Mortgage, Series 2000-C2, Class A2, 7.20%, 10/15/32 | 3,174,073 | 3,224,816 | ||||||
| JPMorgan Chase Commercial Mortgage Securities Corp. | ||||||||
Series 2001-CIBC, Class B, 6.45%, 03/15/33 | 2,604,000 | 2,554,743 | ||||||
Series 2001-CIB3, Class C, 7.09%, 11/15/35 (b)(c) | 1,292,000 | 1,236,565 | ||||||
Series 2005-LDP4, Class AM, 5.00%, 10/15/42 (b) | 1,546,000 | 926,274 | ||||||
Series 2006-LDP7, Class A4, 6.07%, 04/15/45 (b) | 2,321,000 | 1,951,571 | ||||||
Series 2007-LD12, Class A2, 5.83%, 02/15/51 | 1,525,000 | 1,326,427 | ||||||
Wachovia Bank Commercial Mortgage Trust, Series 2002-C1, Class C, 6.55%, 04/15/34 | 1,189,000 | 1,199,581 | ||||||
| 14,631,655 | ||||||||
Diversified Financial Services 2.2% | ||||||||
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class AJ, 4.75%, 06/11/41 | 1,384,000 | 608,514 | ||||||
CS First Boston Mortgage Securities Corp., Series 2001-CK1, Class C, 6.73%, 12/18/35 | 2,078,000 | 2,003,424 | ||||||
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 6.11%, 07/10/38 (b) | 6,120,000 | 5,116,085 | ||||||
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A5, 5.28%, 08/10/38 (b) | 2,133,000 | 1,854,443 | ||||||
| LB-UBS Commercial Mortgage Trust | ||||||||
Series 2003-C8, Class A4, 5.12%, 11/15/32 | 2,161,000 | 1,991,092 | ||||||
Series 2007-C1, Class A2, 5.32%, 02/15/40 | 1,535,000 | 1,362,106 | ||||||
Morgan Stanley Capital I, Series 2005-T19, Class A2, 4.73%, 06/12/47 | 2,153,000 | 2,082,867 | ||||||
Commercial Mortgage Pass Through Certificates, Series 2005-LP5, Class A4, 4.98%, 05/10/43 | 4,180,000 | 3,586,654 | ||||||
| 18,605,185 | ||||||||
Total Commercial Mortgage Backed Securities (cost $37,683,978) | 33,236,840 | |||||||
| Corporate Bonds 20.0% | ||||||||
Advertising 0.0% | ||||||||
| Omnicom Group, Inc., 5.90%, 04/15/16 | 123,000 | 108,571 | ||||||
Aerospace & Defense 0.3% | ||||||||
| General Dynamics Corp., 4.25%, 05/15/13 | 175,000 | 178,964 | ||||||
| Goodrich Corp. | ||||||||
| 6.29%, 07/01/16 | 171,000 | 170,110 | ||||||
| 6.80%, 07/01/36 | 129,000 | 117,195 | ||||||
| Lockheed Martin Corp. | ||||||||
| 7.65%, 05/01/16 | 123,000 | 139,534 | ||||||
| Series B, 6.15%, 09/01/36 | 196,000 | 195,979 | ||||||
| McDonnell Douglas Corp., 9.75%, 04/01/12 | 325,000 | 371,107 | ||||||
| Northrop Grumman Systems Corp. | ||||||||
| 7.13%, 02/15/11 | 274,000 | 291,658 | ||||||
| 7.75%, 02/15/31 | 82,000 | 94,898 | ||||||
2009 Semiannual Report 9
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Aerospace & Defense (continued) | ||||||||
| Raytheon Co. | ||||||||
| 6.40%, 12/15/18 | $ | 144,000 | $ | 155,012 | ||||
| 7.00%, 11/01/28 | 92,000 | 94,976 | ||||||
| Rockwell Collins, Inc., 4.75%, 12/01/13 | 205,000 | 204,078 | ||||||
| United Technologies Corp. | ||||||||
| 6.35%, 03/01/11 | 127,000 | 135,666 | ||||||
| 4.88%, 05/01/15 | 460,000 | 474,062 | ||||||
| 2,623,239 | ||||||||
Agriculture 0.0% | ||||||||
| Archer-Daniels-Midland Co. | ||||||||
| 5.94%, 10/01/32 | 140,000 | 132,147 | ||||||
| 5.38%, 09/15/35 | 103,000 | 90,816 | ||||||
| Bunge Ltd. Finance Corp., 5.10%, 07/15/15 | 62,000 | 53,906 | ||||||
| 276,869 | ||||||||
Airlines 0.1% | ||||||||
| Continental Airlines, Inc. | ||||||||
Series 00-1, 7.92%, 05/01/10 | 250,000 | 238,750 | ||||||
Series 02-1, 6.56%, 08/15/13 | 162,000 | 139,320 | ||||||
| Qantas Airways Ltd., 6.05%, 04/15/16 (b) | 123,000 | 102,353 | ||||||
| Southwest Airlines Co., 5.13%, 03/01/17 | 103,000 | 85,409 | ||||||
| 565,832 | ||||||||
Auto Manufacturers 0.2% | ||||||||
| Daimler Finance North America LLC | ||||||||
| 5.88%, 03/15/11 | 1,213,000 | 1,198,725 | ||||||
| 7.30%, 01/15/12 | 271,000 | 274,131 | ||||||
| 6.50%, 11/15/13 | 338,000 | 328,479 | ||||||
| 1,801,335 | ||||||||
Auto Parts & Equipment 0.0% | ||||||||
| Johnson Controls, Inc. | ||||||||
| 5.25%, 01/15/11 (c) | 123,000 | 121,045 | ||||||
| 4.88%, 09/15/13 | 123,000 | 115,771 | ||||||
| 236,816 | ||||||||
Banks 5.3% | ||||||||
| Bank of America Corp. | ||||||||
| 6.60%, 05/15/10 | 82,000 | 79,424 | ||||||
| 4.50%, 08/01/10 | 144,000 | 142,022 | ||||||
| 4.38%, 12/01/10 | 410,000 | 398,322 | ||||||
| 5.38%, 08/15/11 | 267,000 | 260,601 | ||||||
| Series L, 2.10%, 04/30/12 | 1,675,000 | 1,685,641 | ||||||
| 4.88%, 09/15/12 | 201,000 | 182,213 | ||||||
| 4.88%, 01/15/13 | 451,000 | 404,954 | ||||||
| 4.75%, 08/01/15 | 431,000 | 354,857 | ||||||
| 5.25%, 12/01/15 | 513,000 | 382,000 | ||||||
| 5.63%, 10/14/16 | 440,000 | 365,353 | ||||||
| Bank of America NA | ||||||||
| 6.00%, 06/15/16 | 205,000 | 175,781 | ||||||
| 5.30%, 03/15/17 | 500,000 | 374,964 | ||||||
| Bank of New York Mellon Corp. (The), 5.13%, 08/27/13 | 300,000 | 310,907 | ||||||
| Bank of Tokyo-Mitsubishi UFJ Ltd., 7.40%, 06/15/11 | 246,000 | 241,379 | ||||||
| Bank One Corp. | ||||||||
| 7.88%, 08/01/10 | 41,000 | 42,557 | ||||||
| 5.25%, 01/30/13 | 103,000 | 98,030 | ||||||
| 8.00%, 04/29/27 | 202,000 | 194,025 | ||||||
| BB&T Corp., 4.75%, 10/01/12 | 164,000 | 157,896 | ||||||
| Capital One Financial Corp., 5.25%, 02/21/17 | 211,000 | 153,236 | ||||||
| Charter One Bank NA, 6.38%, 05/15/12 | 500,000 | 447,137 | ||||||
| Citigroup, Inc. | ||||||||
| 4.63%, 08/03/10 | 226,000 | 219,642 | ||||||
| 6.50%, 01/18/11 | 92,000 | 88,957 | ||||||
| 5.13%, 02/14/11 | 62,000 | 58,092 | ||||||
| 6.00%, 02/21/12 | 103,000 | 94,659 | ||||||
| 5.25%, 02/27/12 | 850,000 | 769,057 | ||||||
| 5.63%, 08/27/12 | 205,000 | 158,121 | ||||||
| 5.30%, 01/07/16 (c) | 1,321,000 | 1,066,204 | ||||||
| 5.85%, 08/02/16 | 287,000 | 238,253 | ||||||
| 6.63%, 06/15/32 | 232,000 | 130,584 | ||||||
| 5.88%, 02/22/33 | 82,000 | 47,668 | ||||||
| 5.88%, 05/29/37 | 200,000 | 151,493 | ||||||
| Comerica, Inc., 4.80%, 05/01/15 | 123,000 | 86,251 | ||||||
| Deutsche Bank AG, 4.88%, 05/20/13 (c) | 1,000,000 | 993,054 | ||||||
| Deutsche Bank Financial LLC, 5.38%, 03/02/15 | 123,000 | 107,424 | ||||||
| Eksportfinans AS, 5.50%, 05/25/16 | 267,000 | 276,548 | ||||||
| Goldman Sachs Group, Inc. (The) | ||||||||
| 6.60%, 01/15/12 | 72,000 | 75,452 | ||||||
| 5.25%, 10/15/13 | 605,000 | 600,678 | ||||||
| 5.13%, 01/15/15 | 461,000 | 436,847 | ||||||
| 5.35%, 01/15/16 | 453,000 | 417,509 | ||||||
| 5.63%, 01/15/17 | 1,350,000 | 1,156,531 | ||||||
| 6.13%, 02/15/33 | 450,000 | 392,040 | ||||||
| 6.75%, 10/01/37 | 700,000 | 533,582 | ||||||
| HBOS PLC, 5.46%, 11/29/49 (a)(b) | 246,000 | 108,247 | ||||||
10 Semiannual Report 2009
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Banks (continued) | ||||||||
| HSBC Bank USA NA | ||||||||
| 4.63%, 04/01/14 | $ | 410,000 | $ | 398,438 | ||||
| 5.88%, 11/01/34 | 498,000 | 436,872 | ||||||
| 5.63%, 08/15/35 | 250,000 | 211,203 | ||||||
| HSBC Holdings PLC, 6.50%, 05/02/36 | 500,000 | 432,716 | ||||||
| JPMorgan Chase & Co. | ||||||||
| 4.50%, 11/15/10 (c) | 328,000 | 333,310 | ||||||
| 2.63%, 12/01/10 | 4,880,000 | 4,988,697 | ||||||
| 4.60%, 01/17/11 | 410,000 | 415,041 | ||||||
| 6.63%, 03/15/12 | 447,000 | 465,624 | ||||||
| 4.75%, 03/01/15 | 176,000 | 168,976 | ||||||
| 5.15%, 10/01/15 | 349,000 | 311,450 | ||||||
| 6.30%, 04/23/19 | 2,100,000 | 2,066,490 | ||||||
| JPMorgan Chase Bank NA | ||||||||
| 5.88%, 06/13/16 | 308,000 | 285,323 | ||||||
| 6.00%, 10/01/17 | 750,000 | 699,731 | ||||||
| KeyBank NA | ||||||||
| 5.70%, 08/15/12 | 185,000 | 170,703 | ||||||
| 5.80%, 07/01/14 | 103,000 | 87,303 | ||||||
| Korea Development Bank, 5.75%, 09/10/13 | 82,000 | 79,422 | ||||||
| Kreditanstalt fuer Wiederaufbau | ||||||||
| 3.50%, 03/10/14 | 2,085,000 | 2,141,991 | ||||||
| 4.13%, 10/15/14 | 492,000 | 510,819 | ||||||
| 4.38%, 07/21/15 | 1,005,000 | 1,013,159 | ||||||
| Landwirtschaftliche Rentenbank | ||||||||
| 4.88%, 02/14/11 (c) | 115,000 | 121,096 | ||||||
| 5.13%, 02/01/17 | 600,000 | 624,873 | ||||||
| Manufacturers & Traders Trust Co., 2.71%, 04/01/13 (a)(b) | 300,000 | 228,229 | ||||||
| Marshall & Ilsley Bank, 5.25%, 09/04/12 | 113,000 | 73,215 | ||||||
| Mellon Funding Corp. | ||||||||
| 6.40%, 05/14/11 | 185,000 | 190,353 | ||||||
| 5.00%, 12/01/14 | 185,000 | 174,475 | ||||||
| Morgan Stanley | ||||||||
| 5.05%, 01/21/11 | 720,000 | 716,178 | ||||||
| 6.60%, 04/01/12 | 349,000 | 355,073 | ||||||
| 5.30%, 03/01/13 | 461,000 | 448,636 | ||||||
| 4.75%, 04/01/14 | 410,000 | 346,577 | ||||||
| 5.45%, 01/09/17 | 1,345,000 | 1,202,353 | ||||||
| 7.25%, 04/01/32 | 226,000 | 208,302 | ||||||
| National City Corp., 4.90%, 01/15/15 | 246,000 | 220,706 | ||||||
| Oesterreichische Kontrollbank AG | ||||||||
| 4.50%, 03/09/15 | 164,000 | 163,791 | ||||||
| 4.88%, 02/16/16 (c) | 250,000 | 252,874 | ||||||
| PNC Funding Corp., 5.25%, 11/15/15 | 246,000 | 210,497 | ||||||
| Regions Bank, 3.25%, 12/09/11, FDIC Backed | 2,440,000 | 2,523,238 | ||||||
| Regions Financial Corp., 6.38%, 05/15/12 | 892,000 | 785,201 | ||||||
| Royal Bank of Scotland Group PLC, 5.00%, 11/12/13 | 164,000 | 109,583 | ||||||
| Santander Central Hispano Issuances Ltd., 7.63%, 09/14/10 | 41,000 | 42,726 | ||||||
| Sovereign Bank, 5.13%, 03/15/13 | 200,000 | 163,087 | ||||||
| St. George Bank Ltd., 5.30%, 10/15/15 (b) | 164,000 | 150,341 | ||||||
| State Street Bank & Trust Co., 5.30%, 01/15/16 | 200,000 | 179,440 | ||||||
| SunTrust Bank | ||||||||
| 5.20%, 01/17/17 | 123,000 | 93,358 | ||||||
| 5.45%, 12/01/17 | 127,000 | 96,332 | ||||||
| Synovus Financial Corp., 4.88%, 02/15/13 | 62,000 | 48,593 | ||||||
| UBS AG/Stamford Branch | ||||||||
| 5.88%, 07/15/16 | 679,000 | 511,514 | ||||||
| 5.88%, 12/20/17 | 250,000 | 219,280 | ||||||
| Union Planters Corp., 4.38%, 12/01/10 | 62,000 | 58,641 | ||||||
| UnionBanCal Corp., 5.25%, 12/16/13 | 144,000 | 118,324 | ||||||
| US Bancorp, Series P, 4.50%, 07/29/10 | 205,000 | 208,999 | ||||||
| US Bank NA | ||||||||
| 6.38%, 08/01/11 | 249,000 | 260,558 | ||||||
| 4.95%, 10/30/14 | 185,000 | 183,814 | ||||||
| 4.80%, 04/15/15 | 92,000 | 89,419 | ||||||
| Wachovia Bank NA | ||||||||
| 5.60%, 03/15/16 | 492,000 | 427,960 | ||||||
| 6.60%, 01/15/38 | 975,000 | 767,129 | ||||||
| Wachovia Corp. | ||||||||
| 5.30%, 10/15/11 | 935,000 | 940,919 | ||||||
| 4.88%, 02/15/14 | 127,000 | 111,108 | ||||||
| 5.50%, 08/01/35 | 338,000 | 209,303 | ||||||
| Wells Fargo & Co. | ||||||||
| 4.63%, 08/09/10 | 255,000 | 257,075 | ||||||
| 5.13%, 09/15/16 | 144,000 | 126,329 | ||||||
| 5.38%, 02/07/35 | 318,000 | 246,564 | ||||||
| 44,341,523 | ||||||||
Beverages 0.4% | ||||||||
| Anheuser-Busch Cos., Inc. | ||||||||
| 4.38%, 01/15/13 | 21,000 | 20,383 | ||||||
| 5.00%, 03/01/19 | 164,000 | 142,337 | ||||||
| 5.75%, 04/01/36 | 151,000 | 113,400 | ||||||
| 6.00%, 11/01/41 | 103,000 | 75,164 | ||||||
| Bottling Group LLC, 4.63%, 11/15/12 | 287,000 | 297,774 | ||||||
2009 Semiannual Report 11
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Beverages (continued) | ||||||||
Coca-Cola Bottling Co. Consolidated, 5.00%, 11/15/12 | $ | 62,000 | $ | 62,010 | ||||
Coca-Cola Enterprises, Inc. | ||||||||
| 8.50%, 02/01/12 | 146,000 | 163,667 | ||||||
| 7.38%, 03/03/14 | 328,000 | 374,746 | ||||||
| 6.95%, 11/15/26 | 103,000 | 107,804 | ||||||
| Diageo Capital PLC, 5.50%, 09/30/16 | 300,000 | 300,662 | ||||||
| Diageo Finance BV, 5.30%, 10/28/15 | 451,000 | 454,251 | ||||||
| Miller Brewing Co., 5.50%, 08/15/13 (b) | 103,000 | 98,862 | ||||||
| Pepsi Bottling Group, Inc., 7.00%, 03/01/29 | 144,000 | 157,024 | ||||||
| PepsiAmericas, Inc., 4.88%, 01/15/15 | 208,000 | 202,813 | ||||||
| PepsiCo, Inc., 7.90%, 11/01/18 | 500,000 | 603,436 | ||||||
| 3,174,333 | ||||||||
Biotechnology 0.0% | ||||||||
| Genentech, Inc., 5.25%, 07/15/35 | 62,000 | 52,303 | ||||||
Building Materials 0.1% | ||||||||
| CRH America, Inc., 6.00%, 09/30/16 | 465,000 | 363,075 | ||||||
| Hanson Australia Funding Ltd., 5.25%, 03/15/13 | 185,000 | 108,225 | ||||||
| Lafarge SA, 6.50%, 07/15/16 | 185,000 | 137,308 | ||||||
| Masco Corp. | ||||||||
| 5.88%, 07/15/12 | 148,000 | 125,737 | ||||||
| 4.80%, 06/15/15 | 246,000 | 179,653 | ||||||
| 6.13%, 10/03/16 | 315,000 | 220,331 | ||||||
| 1,134,329 | ||||||||
Chemicals 0.2% | ||||||||
| Albemarle Corp., 5.10%, 02/01/15 | 82,000 | 68,042 | ||||||
| Cytec Industries, Inc., 6.00%, 10/01/15 | 113,000 | 86,720 | ||||||
| Dow Chemical Co. (The), 6.00%, 10/01/12 | 310,000 | 301,904 | ||||||
| E.I. du Pont de Nemours & Co., 5.25%, 12/15/16 | 515,000 | 519,233 | ||||||
| Lubrizol Corp. | ||||||||
| 5.50%, 10/01/14 | 196,000 | 180,099 | ||||||
| 6.50%, 10/01/34 | 103,000 | 79,088 | ||||||
| Praxair, Inc., 3.95%, 06/01/13 | 123,000 | 122,394 | ||||||
| Rohm & Haas Co., 7.85%, 07/15/29 | 82,000 | 54,886 | ||||||
| 1,412,366 | ||||||||
Commercial Services 0.1% | ||||||||
| RR Donnelley & Sons Co. | ||||||||
| 4.95%, 04/01/14 | 82,000 | 62,785 | ||||||
| 6.13%, 01/15/17 | 400,000 | 301,237 | ||||||
| Science Applications International Corp., 5.50%, 07/01/33 | 123,000 | 87,867 | ||||||
| 451,889 | ||||||||
Computers 0.3% | ||||||||
| Dell, Inc., 7.10%, 04/15/28 | 144,000 | 130,162 | ||||||
| Hewlett-Packard Co. | ||||||||
| 6.50%, 07/01/12 | 208,000 | 227,292 | ||||||
| 5.50%, 03/01/18 | 835,000 | 875,352 | ||||||
| International Business Machines Corp. | ||||||||
| 4.75%, 11/29/12 | 359,000 | 381,317 | ||||||
| 5.88%, 11/29/32 | 732,000 | 711,514 | ||||||
| 2,325,637 | ||||||||
Containers & Packaging 0.0% | ||||||||
| Newell Rubbermaid, Inc., 4.00%, 05/01/10 | 62,000 | 59,947 | ||||||
Cosmetics/Personal Care 0.1% | ||||||||
| Procter & Gamble Co. (The) | ||||||||
| 4.85%, 12/15/15 | 123,000 | 130,656 | ||||||
| 5.80%, 08/15/34 | 405,000 | 415,843 | ||||||
| 546,499 | ||||||||
Diversified Financial Services 2.4% | ||||||||
| American Express Co., 4.88%, 07/15/13 | 837,000 | 778,067 | ||||||
| American General Finance Corp., Series H, 5.38%, 10/01/12 | 572,000 | 251,994 | ||||||
| Associates Corp. of North America, 6.95%, 11/01/18 | 236,000 | 197,474 | ||||||
| AXA Financial, Inc. | ||||||||
| 7.75%, 08/01/10 | 185,000 | 182,842 | ||||||
| 7.00%, 04/01/28 | 92,000 | 66,299 | ||||||
| Bear Stearns Cos. LLC (The) | ||||||||
| 4.55%, 06/23/10 | 1,943,000 | 1,978,254 | ||||||
| 5.70%, 11/15/14 | 256,000 | 251,243 | ||||||
| 5.30%, 10/30/15 | 123,000 | 113,938 | ||||||
| 4.65%, 07/02/18 | 246,000 | 210,183 | ||||||
| Boeing Capital Corp., 6.10%, 03/01/11 | 35,000 | 37,010 | ||||||
12 Semiannual Report 2009
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Diversified Financial Services (continued) | ||||||||
| BP Capital Markets America, Inc., 4.20%, 06/15/18 | $ | 103,000 | $ | 81,984 | ||||
| BSKYB Finance UK PLC, 5.63%, 10/15/15 (b) | 103,000 | 93,639 | ||||||
| Capital One Bank USA NA | ||||||||
| 5.75%, 09/15/10 | 164,000 | 163,365 | ||||||
| 5.13%, 02/15/14 | 410,000 | 344,267 | ||||||
| Caterpillar Financial Services Corp. | ||||||||
| 5.05%, 12/01/10 | 260,000 | 266,976 | ||||||
| 5.50%, 03/15/16 | 205,000 | 188,387 | ||||||
| CIT Group Funding Co. of Canada, 5.20%, 06/01/15 | 123,000 | 67,809 | ||||||
| CIT Group, Inc. | ||||||||
| 4.75%, 12/15/10 | 139,000 | 102,902 | ||||||
| 5.13%, 09/30/14 | 53,000 | 29,272 | ||||||
| 5.40%, 01/30/16 | 38,000 | 19,985 | ||||||
| 5.85%, 09/15/16 | 174,000 | 93,306 | ||||||
| 12.00%, 12/18/18 (b) | 469,000 | 192,290 | ||||||
| 6.00%, 04/01/36 | 44,000 | 19,872 | ||||||
| Countrywide Home Loans, Inc., Series L, 4.00%, 03/22/11 | 494,000 | 463,173 | ||||||
| Credit Suisse USA, Inc. | ||||||||
| 6.13%, 11/15/11 | 185,000 | 193,861 | ||||||
| 6.50%, 01/15/12 | 246,000 | 257,781 | ||||||
| 5.13%, 01/15/14 | 119,000 | 117,866 | ||||||
| 5.85%, 08/16/16 | 300,000 | 301,687 | ||||||
| 7.13%, 07/15/32 | 395,000 | 395,963 | ||||||
| FIA Card Services NA, 7.13%, 11/15/12 (b) | 140,000 | 127,581 | ||||||
| General Electric Capital Corp. | ||||||||
| 1.80%, 03/11/11 | 4,170,000 | 4,202,893 | ||||||
| 5.50%, 04/28/11 | 287,000 | 295,581 | ||||||
| Series A, 5.88%, 02/15/12 | 41,000 | 41,779 | ||||||
| Series A, 6.00%, 06/15/12 | 182,000 | 185,635 | ||||||
| Series A, 4.88%, 03/04/15 | 431,000 | 402,414 | ||||||
| Series A, 5.00%, 01/08/16 | 205,000 | 181,035 | ||||||
| 5.40%, 02/15/17 | 415,000 | 361,780 | ||||||
| Series A, 5.63%, 09/15/17 | 1,150,000 | 1,010,268 | ||||||
| Series A, 6.75%, 03/15/32 | 867,000 | 675,656 | ||||||
| 6.15%, 08/07/37 | 750,000 | 533,846 | ||||||
| HSBC Finance Corp. | ||||||||
| 4.75%, 04/15/10 (c) | 246,000 | 245,388 | ||||||
| 7.00%, 05/15/12 | 264,000 | 255,714 | ||||||
| 5.25%, 04/15/15 | 185,000 | 160,575 | ||||||
| International Lease Finance Corp., 5.00%, 04/15/10 | 410,000 | 367,520 | ||||||
| Jefferies Group, Inc., 6.25%, 01/15/36 | 123,000 | 62,889 | ||||||
| MBNA Corp., 5.00%, 05/04/10 | 226,000 | 216,645 | ||||||
| National Rural Utilities Cooperative Finance Corp. | ||||||||
| 4.75%, 03/01/14 | 226,000 | 225,110 | ||||||
| 5.45%, 04/10/17 | 400,000 | 386,894 | ||||||
| Series C, 8.00%, 03/01/32 | 111,000 | 108,125 | ||||||
| Nissan Motor Acceptance Corp., 4.63%, 03/08/10 (b) | 113,000 | 107,483 | ||||||
| Principal Life Global Funding I (b) | ||||||||
| 6.25%, 02/15/12 | 150,000 | 145,995 | ||||||
| 5.25%, 01/15/13 | 615,000 | 569,478 | ||||||
| SLM Corp., Series A, 5.38%, 05/15/14 | 759,000 | 476,411 | ||||||
| TIAA Global Markets, Inc., 4.95%, 07/15/13 (b) | 600,000 | 584,196 | ||||||
| UFJ Finance Aruba AEC, 6.75%, 07/15/13 | 246,000 | 250,157 | ||||||
| Unilever Capital Corp. | ||||||||
| 7.13%, 11/01/10 | 76,000 | 81,598 | ||||||
| 5.90%, 11/15/32 | 144,000 | 138,651 | ||||||
| 19,862,986 | ||||||||
Electric 1.6% | ||||||||
| Alabama Power Co., 5.70%, 02/15/33 | 226,000 | 211,964 | ||||||
| American Electric Power Co., Inc., 5.25%, 06/01/15 | 133,000 | 129,136 | ||||||
| Appalachian Power Co., Series L, 5.80%, 10/01/35 | 144,000 | 108,722 | ||||||
| Arizona Public Service Co., 5.50%, 09/01/35 | 150,000 | 89,447 | ||||||
| Baltimore Gas & Electric Co., 5.90%, 10/01/16 | 615,000 | 584,053 | ||||||
| Commonwealth Edison Co. | ||||||||
| Series 98, 6.15%, 03/15/12 | 82,000 | 84,498 | ||||||
| 6.15%, 09/15/17 | 750,000 | 739,168 | ||||||
| Consolidated Edison Co. of New York, Inc. | ||||||||
Series 02-B, 4.88%, 02/01/13 | 86,000 | 89,369 | ||||||
Series 05-C, 5.38%, 12/15/15 | 123,000 | 123,338 | ||||||
Series 03-A, 5.88%, 04/01/33 | 82,000 | 74,876 | ||||||
| Consumers Energy Co., Series F, 4.00%, 05/15/10 | 167,000 | 167,541 | ||||||
| Dominion Resources, Inc. | ||||||||
| Series C, 5.70%, 09/17/12 | 113,000 | 117,755 | ||||||
2009 Semiannual Report 13
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Electric (continued) | ||||||||
| Series E, 6.30%, 03/15/33 | $ | 308,000 | $ | 286,424 | ||||
| Series B, 5.95%, 06/15/35 | 174,000 | 153,116 | ||||||
| DTE Energy Co., 6.35%, 06/01/16 | 287,000 | 246,815 | ||||||
| Duke Energy Carolinas LLC, 6.25%, 01/15/12 | 970,000 | 1,038,193 | ||||||
| Duke Energy Ohio, Inc. | ||||||||
| 5.70%, 09/15/12 | 29,000 | 29,537 | ||||||
| Series A, 5.40%, 06/15/33 | 51,000 | 40,552 | ||||||
| Entergy Gulf States, Inc., 5.25%, 08/01/15 | 123,000 | 111,391 | ||||||
| Entergy Mississippi, Inc., 5.15%, 02/01/13 | 201,000 | 194,382 | ||||||
| Exelon Corp. | ||||||||
| 4.90%, 06/15/15 | 287,000 | 253,191 | ||||||
| 5.63%, 06/15/35 | 414,000 | 284,977 | ||||||
| FirstEnergy Corp., Series C, 7.38%, 11/15/31 | 287,000 | 244,678 | ||||||
| Florida Power & Light Co. | ||||||||
| 4.85%, 02/01/13 | 103,000 | 106,039 | ||||||
| 5.85%, 02/01/33 | 70,000 | 69,531 | ||||||
| 5.95%, 10/01/33 | 53,000 | 53,323 | ||||||
| 5.40%, 09/01/35 | 90,000 | 83,993 | ||||||
| 5.65%, 02/01/37 | 200,000 | 193,141 | ||||||
| Florida Power Corp., 5.90%, 03/01/33 | 247,000 | 242,271 | ||||||
| Georgia Power Co., Series K, 5.13%, 11/15/12 | 74,000 | 77,106 | ||||||
| Metropolitan Edison Co., 4.88%, 04/01/14 | 164,000 | 154,979 | ||||||
| MidAmerican Energy Co., 5.80%, 10/15/36 | 200,000 | 177,482 | ||||||
| MidAmerican Energy Holdings Co. | ||||||||
| 5.88%, 10/01/12 | 441,000 | 455,835 | ||||||
| 5.75%, 04/01/18 | 750,000 | 746,138 | ||||||
| New York State Electric & Gas Corp., 5.75%, 05/01/23 | 41,000 | 32,150 | ||||||
| Ohio Power Co., Series G, 6.60%, 02/15/33 | 164,000 | 140,457 | ||||||
| Oncor Electric Delivery Co. | ||||||||
| 6.38%, 05/01/12 | 383,000 | 389,580 | ||||||
| 6.38%, 01/15/15 | 308,000 | 305,564 | ||||||
| Pacific Gas & Electric Co. | ||||||||
| 4.80%, 03/01/14 | 328,000 | 337,343 | ||||||
| 5.80%, 03/01/37 | 150,000 | 145,517 | ||||||
| PacifiCorp, 5.25%, 06/15/35 | 123,000 | 110,128 | ||||||
| Pepco Holdings, Inc. | ||||||||
| 6.45%, 08/15/12 | 74,000 | 73,902 | ||||||
| 7.45%, 08/15/32 | 82,000 | 65,994 | ||||||
| Progress Energy, Inc. | ||||||||
| 7.10%, 03/01/11 | 85,000 | 89,695 | ||||||
| 7.75%, 03/01/31 | 164,000 | 172,856 | ||||||
| PSEG Power LLC | ||||||||
| 6.95%, 06/01/12 | 51,000 | 52,207 | ||||||
| 5.50%, 12/01/15 | 287,000 | 265,694 | ||||||
| Public Service Co. of Colorado, Series 15, 5.50%, 04/01/14 | 174,000 | 183,998 | ||||||
| Public Service Electric & Gas Co., Series B, 5.13%, 09/01/12 | 135,000 | 139,287 | ||||||
| Puget Sound Energy, Inc., 5.48%, 06/01/35 | 103,000 | 75,200 | ||||||
| SCANA Corp. | ||||||||
| 6.88%, 05/15/11 | 359,000 | 377,297 | ||||||
| 6.25%, 02/01/12 | 103,000 | 104,691 | ||||||
| Scottish Power Ltd., 5.81%, 03/15/25 | 82,000 | 61,226 | ||||||
| Southern California Edison Co. | ||||||||
| 6.00%, 01/15/34 | 123,000 | 124,544 | ||||||
| 5.55%, 01/15/36 | 164,000 | 154,181 | ||||||
| Southern Power Co., Series B, 6.25%, 07/15/12 | 174,000 | 180,120 | ||||||
| SPI Electricity & Gas Australia Holdings Pty Ltd., 6.15%, 11/15/13 (b) | 131,000 | 130,532 | ||||||
| Virginia Electric and Power Co. | ||||||||
| Series A, 5.40%, 01/15/16 | 103,000 | 105,170 | ||||||
| Series B, 5.95%, 09/15/17 | 750,000 | 794,261 | ||||||
| Westar Energy, Inc., 6.00%, 07/01/14 | 185,000 | 185,461 | ||||||
| Wisconsin Electric Power Co., 5.63%, 05/15/33 | 41,000 | 37,824 | ||||||
| Xcel Energy, Inc. | ||||||||
| 5.61%, 04/01/17 | 173,000 | 164,911 | ||||||
| 6.50%, 07/01/36 | 123,000 | 115,527 | ||||||
| 12,878,278 | ||||||||
Electrical Components & Equipment 0.0% | ||||||||
| Emerson Electric Co., 6.00%, 08/15/32 | 57,000 | 56,500 | ||||||
Environmental Control 0.0% | ||||||||
| Waste Management, Inc. | ||||||||
| 7.38%, 08/01/10 | 103,000 | 105,238 | ||||||
| 6.38%, 11/15/12 | 144,000 | 146,721 | ||||||
| 7.00%, 07/15/28 | 113,000 | 96,602 | ||||||
| 348,561 | ||||||||
14 Semiannual Report 2009
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Food 0.4% | ||||||||
| Cadbury Schweppes US Finance LLC, 5.13%, 10/01/13 (b) | $ | 123,000 | $ | 120,085 | ||||
| Campbell Soup Co., 4.88%, 10/01/13 | 164,000 | 175,618 | ||||||
| ConAgra Foods, Inc. | ||||||||
| 6.75%, 09/15/11 | 62,000 | 65,395 | ||||||
| 7.00%, 10/01/28 | 154,000 | 149,231 | ||||||
| General Mills, Inc., 6.00%, 02/15/12 | 185,000 | 195,149 | ||||||
| H.J. Heinz Finance Co. | ||||||||
| 6.00%, 03/15/12 | 150,000 | 158,151 | ||||||
| 6.75%, 03/15/32 | 62,000 | 57,903 | ||||||
| Kellogg Co., Series B, 7.45%, 04/01/31 | 103,000 | 116,297 | ||||||
| Kraft Foods, Inc. | ||||||||
| 5.63%, 11/01/11 | 326,000 | 342,758 | ||||||
| 6.00%, 02/11/13 | 200,000 | 210,337 | ||||||
| 6.50%, 11/01/31 | 131,000 | 122,095 | ||||||
| 6.88%, 02/01/38 | 300,000 | 294,612 | ||||||
| Kroger Co. (The) | ||||||||
| 6.20%, 06/15/12 | 164,000 | 171,864 | ||||||
| 7.50%, 04/01/31 | 178,000 | 194,220 | ||||||
| Safeway, Inc. | ||||||||
| 6.50%, 03/01/11 | 89,000 | 93,340 | ||||||
| 5.80%, 08/15/12 | 144,000 | 149,274 | ||||||
| 5.63%, 08/15/14 | 123,000 | 126,574 | ||||||
| Sara Lee Corp., 6.25%, 09/15/11 | 174,000 | 182,103 | ||||||
| SYSCO Corp., 5.38%, 09/21/35 | 74,000 | 61,932 | ||||||
| W.M. Wrigley Jr. Co., 4.65%, 07/15/15 | 150,000 | 132,750 | ||||||
| 3,119,688 | ||||||||
Forest Products & Paper 0.1% | ||||||||
| Celulosa Arauco y Constitucion SA, 5.13%, 07/09/13 | 123,000 | 119,103 | ||||||
| International Paper Co. | ||||||||
| 5.85%, 10/30/12 | 30,000 | 26,976 | ||||||
| 5.30%, 04/01/15 | 144,000 | 112,183 | ||||||
| Inversiones CMPC SA, 4.88%, 06/18/13 (b) | 123,000 | 120,543 | ||||||
| Westvaco Corp., 7.95%, 02/15/31 | 82,000 | 60,932 | ||||||
| Weyerhaeuser Co., 6.75%, 03/15/12 | 443,000 | 442,100 | ||||||
| 881,837 | ||||||||
Gas 0.1% | ||||||||
| AGL Capital Corp., 4.45%, 04/15/13 | 123,000 | 108,765 | ||||||
| Atmos Energy Corp. | ||||||||
| 5.13%, 01/15/13 | 92,000 | 88,650 | ||||||
| 4.95%, 10/15/14 | 185,000 | 172,493 | ||||||
| Southern California Gas Co., 4.80%, 10/01/12 | 267,000 | 272,526 | ||||||
| 642,434 | ||||||||
Hand/Machine Tools 0.0% | ||||||||
| Black & Decker Corp., 4.75%, 11/01/14 | 160,000 | 146,714 | ||||||
| Stanley Works (The), 4.90%, 11/01/12 | 92,000 | 91,891 | ||||||
| 238,605 | ||||||||
Health Care Equipment & Supplies 0.3% | ||||||||
| Baxter International, Inc. | ||||||||
| 4.63%, 03/15/15 | 53,000 | 53,537 | ||||||
| 5.38%, 06/01/18 | 835,000 | 850,263 | ||||||
| Covidien International Finance SA, 6.00%, 10/15/17 | 940,000 | 963,463 | ||||||
| Johnson & Johnson, 4.95%, 05/15/33 | 537,000 | 501,259 | ||||||
| Medtronic, Inc., Series B, 4.38%, 09/15/10 | 129,000 | 132,876 | ||||||
| 2,501,398 | ||||||||
Health Care Providers & Services 0.3% | ||||||||
| Aetna, Inc., 6.00%, 06/15/16 | 650,000 | 624,862 | ||||||
| Quest Diagnostics, Inc., 5.45%, 11/01/15 | 376,000 | 350,613 | ||||||
| UnitedHealth Group, Inc. | ||||||||
| 5.38%, 03/15/16 | 205,000 | 184,386 | ||||||
| 5.80%, 03/15/36 | 417,000 | 308,997 | ||||||
| WellPoint, Inc. | ||||||||
| 5.00%, 12/15/14 | 598,000 | 579,519 | ||||||
| 5.25%, 01/15/16 | 226,000 | 206,770 | ||||||
| 5.95%, 12/15/34 | 82,000 | 64,534 | ||||||
| 2,319,681 | ||||||||
Holding Companies-Diversified 0.1% | ||||||||
| EnCana Holdings Finance Corp., 5.80%, 05/01/14 | 791,000 | 822,131 | ||||||
Home Builders 0.0% | ||||||||
| MDC Holdings, Inc., 5.50%, 05/15/13 | 103,000 | 92,673 | ||||||
| Toll Brothers Finance Corp., 6.88%, 11/15/12 | 62,000 | 59,974 | ||||||
| 152,647 | ||||||||
2009 Semiannual Report 15
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Household Products/Wares 0.2% | ||||||||
| Fortune Brands, Inc., 5.38%, 01/15/16 | $ | 585,000 | $ | 510,800 | ||||
| Kimberly-Clark Corp. | ||||||||
| 5.63%, 02/15/12 | 205,000 | 219,260 | ||||||
| 4.88%, 08/15/15 | 710,000 | 717,537 | ||||||
| 1,447,597 | ||||||||
Insurance 0.7% | ||||||||
| ACE INA Holdings, Inc., 5.88%, 06/15/14 | 390,000 | 387,492 | ||||||
| AIG Life Holdings US, Inc., 7.50%, 07/15/25 | 103,000 | 31,727 | ||||||
| AIG SunAmerica Global Financing X, 6.90%, 03/15/32 (b) | 287,000 | 136,952 | ||||||
| Allstate Corp. (The) | ||||||||
| 6.13%, 02/15/12 | 176,000 | 174,242 | ||||||
| 7.50%, 06/15/13 | 425,000 | 434,266 | ||||||
| 6.13%, 12/15/32 | 82,000 | 62,096 | ||||||
| 5.55%, 05/09/35 | 62,000 | 40,904 | ||||||
| 5.95%, 04/01/36 | 82,000 | 56,509 | ||||||
| American International Group, Inc. | ||||||||
| 5.05%, 10/01/15 | 103,000 | 37,444 | ||||||
| 5.60%, 10/18/16 | 290,000 | 100,845 | ||||||
| 6.25%, 05/01/36 | 164,000 | 56,030 | ||||||
| Berkshire Hathaway Finance Corp., 4.85%, 01/15/15 | 246,000 | 253,822 | ||||||
| Chubb Corp., 6.00%, 05/11/37 | 225,000 | 194,346 | ||||||
| Genworth Financial, Inc. | ||||||||
| 5.75%, 06/15/14 | 62,000 | 22,953 | ||||||
| 6.50%, 06/15/34 | 144,000 | 38,507 | ||||||
| Hartford Financial Services Group, Inc. | ||||||||
| 4.75%, 03/01/14 | 82,000 | 59,358 | ||||||
| 6.10%, 10/01/41 | 41,000 | 21,483 | ||||||
| Infinity Property & Casualty Corp., Series B, 5.50%, 02/18/14 | 82,000 | 72,513 | ||||||
| Lincoln National Corp., 6.15%, 04/07/36 | 410,000 | 229,644 | ||||||
| Marsh & McLennan Cos., Inc. | ||||||||
| 6.25%, 03/15/12 | 72,000 | 68,400 | ||||||
| 5.75%, 09/15/15 | 327,000 | 289,780 | ||||||
| MetLife, Inc. | ||||||||
| 6.13%, 12/01/11 | 445,000 | 440,963 | ||||||
| 5.50%, 06/15/14 | 185,000 | 179,092 | ||||||
| 5.70%, 06/15/35 | 336,000 | 240,463 | ||||||
| Nationwide Mutual Insurance Co., 5.81%, 12/15/24 (a)(b)(h) | 205,000 | 95,687 | ||||||
| NLV Financial Corp., 7.50%, 08/15/33 (b) | 51,000 | 39,271 | ||||||
| Progressive Corp. (The), 6.25%, 12/01/32 | 113,000 | 92,843 | ||||||
| Prudential Financial, Inc. | ||||||||
| 5.10%, 12/14/11 | 515,000 | 450,177 | ||||||
| Series B, 5.10%, 09/20/14 | 205,000 | 162,257 | ||||||
| Series B, 5.75%, 07/15/33 | 103,000 | 53,419 | ||||||
| RLI Corp., 5.95%, 01/15/14 | 82,000 | 84,448 | ||||||
| Travelers Cos, Inc. (The), 5.75%, 12/15/17 | 340,000 | 336,204 | ||||||
| Travelers Property Casualty Corp., 6.38%, 03/15/33 | 133,000 | 123,573 | ||||||
| W.R. Berkley Corp., 5.13%, 09/30/10 | 72,000 | 67,960 | ||||||
| Western & Southern Financial Group, Inc., 5.75%, 07/15/33 (b) | 103,000 | 68,383 | ||||||
| Willis North America, Inc., 5.63%, 07/15/15 | 123,000 | 87,699 | ||||||
| XL Capital Ltd., 5.25%, 09/15/14 | 541,000 | 386,883 | ||||||
| 5,678,635 | ||||||||
Machinery 0.1% | ||||||||
| Caterpillar, Inc. | ||||||||
| 7.30%, 05/01/31 | 70,000 | 68,502 | ||||||
| 6.05%, 08/15/36 | 123,000 | 104,265 | ||||||
| Deere & Co. | ||||||||
| 6.95%, 04/25/14 | 400,000 | 441,536 | ||||||
| 8.10%, 05/15/30 | 400,000 | 435,478 | ||||||
| 1,049,781 | ||||||||
Media 0.9% | ||||||||
| CBS Corp. | ||||||||
| 5.63%, 08/15/12 | 310,000 | 297,939 | ||||||
| 7.88%, 07/30/30 | 55,000 | 38,740 | ||||||
| 5.50%, 05/15/33 | 82,000 | 51,077 | ||||||
| Comcast Cable Communications Holdings, Inc. | ||||||||
| 8.38%, 03/15/13 | 164,000 | 180,837 | ||||||
| 9.46%, 11/15/22 | 82,000 | 95,292 | ||||||
| Comcast Cable Holdings LLC, 9.80%, 02/01/12 | 213,000 | 229,624 | ||||||
| Comcast Corp. | ||||||||
| 5.90%, 03/15/16 | 287,000 | 286,592 | ||||||
| 6.50%, 01/15/17 | 507,000 | 521,627 | ||||||
| 7.05%, 03/15/33 | 205,000 | 201,447 | ||||||
| 6.50%, 11/15/35 | 70,000 | 65,390 | ||||||
| Cox Communications, Inc. | ||||||||
| 5.45%, 12/15/14 | 246,000 | 229,516 | ||||||
| 5.50%, 10/01/15 | 667,000 | 610,593 | ||||||
| Gannett Co., Inc., 6.38%, 04/01/12 | 164,000 | 125,625 | ||||||
16 Semiannual Report 2009
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Media (continued) | ||||||||
| Historic TW, Inc., 6.88%, 06/15/18 | $ | 122,000 | $ | 116,062 | ||||
| News America Holdings, Inc. | ||||||||
| 9.25%, 02/01/13 | 82,000 | 87,696 | ||||||
| 8.00%, 10/17/16 | 82,000 | 83,541 | ||||||
| News America, Inc. | ||||||||
| 5.30%, 12/15/14 | 433,000 | 431,955 | ||||||
| 7.28%, 06/30/28 | 53,000 | 43,289 | ||||||
| 6.20%, 12/15/34 | 170,000 | 128,117 | ||||||
| Time Warner Cable, Inc., 6.20%, 07/01/13 | 500,000 | 522,395 | ||||||
| Time Warner, Inc. | ||||||||
| 6.88%, 05/01/12 | 384,000 | 403,857 | ||||||
| 7.63%, 04/15/31 | 773,000 | 698,973 | ||||||
| 7.70%, 05/01/32 | 648,000 | 589,842 | ||||||
| Viacom, Inc. | ||||||||
| 6.25%, 04/30/16 | 351,000 | 325,244 | ||||||
| 6.88%, 04/30/36 | 226,000 | 184,298 | ||||||
| Walt Disney Co. (The) | ||||||||
| Series B, 6.38%, 03/01/12 | 97,000 | 104,513 | ||||||
| Series B, 6.20%, 06/20/14 | 687,000 | 760,479 | ||||||
| 7,414,560 | ||||||||
Mining 0.2% | ||||||||
| Alcoa, Inc., 5.87%, 02/23/22 | 335,000 | 220,597 | ||||||
| Barrick Gold Finance Co., 4.88%, 11/15/14 | 160,000 | 149,462 | ||||||
| BHP Billiton Finance USA Ltd., 5.25%, 12/15/15 | 225,000 | 224,797 | ||||||
| Newmont Mining Corp., 5.88%, 04/01/35 | 164,000 | 118,703 | ||||||
| Placer Dome, Inc., 6.38%, 03/01/33 | 96,000 | 79,919 | ||||||
| Rio Tinto Alcan, Inc. | ||||||||
| 5.00%, 06/01/15 | 205,000 | 164,824 | ||||||
| 5.75%, 06/01/35 | 144,000 | 93,663 | ||||||
| Vale Overseas Ltd., 6.88%, 11/21/36 | 556,000 | 452,849 | ||||||
| 1,504,814 | ||||||||
Miscellaneous Manufacturing 0.2% | ||||||||
| 3M Co., 5.70%, 03/15/37 | 235,000 | 225,226 | ||||||
| Dover Corp., 4.88%, 10/15/15 | 156,000 | 152,055 | ||||||
| General Electric Co., 5.00%, 02/01/13 | 946,000 | 970,988 | ||||||
| Honeywell International, Inc. | ||||||||
| 6.13%, 11/01/11 | 103,000 | 112,029 | ||||||
| 5.40%, 03/15/16 | 440,000 | 453,697 | ||||||
| 1,913,995 | ||||||||
Office/Business Equipment 0.0% | ||||||||
| Pitney Bowes, Inc. | ||||||||
| 4.75%, 01/15/16 | 205,000 | 193,788 | ||||||
| 4.75%, 05/15/18 | 62,000 | 57,186 | ||||||
| 250,974 | ||||||||
Oil & Gas 0.7% | ||||||||
| Anadarko Finance Co. | ||||||||
| 6.75%, 05/01/11 | 82,000 | 84,495 | ||||||
| 7.50%, 05/01/31 | 207,000 | 163,572 | ||||||
| Anadarko Petroleum Corp., 6.45%, 09/15/36 | 269,000 | 203,935 | ||||||
| Apache Corp. | ||||||||
| 6.25%, 04/15/12 | 160,000 | 170,373 | ||||||
| 7.63%, 07/01/19 | 41,000 | 47,291 | ||||||
| Apache Finance Canada Corp., 4.38%, 05/15/15 | 238,000 | 228,234 | ||||||
| Canadian Natural Resources Ltd., 6.25%, 03/15/38 | 660,000 | 536,678 | ||||||
| Conoco Funding Co., 6.35%, 10/15/11 | 408,000 | 446,770 | ||||||
| ConocoPhillips | ||||||||
| 4.75%, 10/15/12 | 270,000 | 282,329 | ||||||
| 5.90%, 10/15/32 | 123,000 | 113,482 | ||||||
| ConocoPhillips Australia Funding Co., 5.50%, 04/15/13 | 226,000 | 241,056 | ||||||
| Devon Energy Corp., 7.95%, 04/15/32 | 250,000 | 273,875 | ||||||
| Devon Financing Corp. ULC, 6.88%, 09/30/11 | 297,000 | 315,763 | ||||||
| Halliburton Co., 5.50%, 10/15/10 | 228,000 | 237,508 | ||||||
| Hess Corp., 7.30%, 08/15/31 | 196,000 | 177,121 | ||||||
| Marathon Oil Corp., 6.80%, 03/15/32 | 82,000 | 71,352 | ||||||
| Motiva Enterprises LLC, 5.20%, 09/15/12 (b) | 51,000 | 52,736 | ||||||
| Murphy Oil Corp., 6.38%, 05/01/12 | 41,000 | 41,114 | ||||||
| Nabors Industries, Inc., 5.38%, 08/15/12 | 29,000 | 26,681 | ||||||
| Occidental Petroleum Corp. | ||||||||
| 6.75%, 01/15/12 | 185,000 | 197,530 | ||||||
| 7.00%, 11/01/13 | 250,000 | 282,292 | ||||||
| Pemex Project Funding Master Trust | ||||||||
| 9.13%, 10/13/10 | 97,000 | 103,790 | ||||||
| 6.63%, 06/15/35 | 226,000 | 182,746 | ||||||
| PTT PCL, 5.88%, 08/03/35 (b) | 123,000 | 95,006 | ||||||
2009 Semiannual Report 17
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Oil & Gas (continued) | ||||||||
| Transocean Ltd., 7.50%, 04/15/31 | $ | 123,000 | $ | 113,126 | ||||
| Valero Energy Corp. | ||||||||
| 6.88%, 04/15/12 | 260,000 | 265,976 | ||||||
| 7.50%, 04/15/32 | 82,000 | 67,433 | ||||||
| 6.63%, 06/15/37 | 320,000 | 253,363 | ||||||
| XTO Energy, Inc. | ||||||||
| 5.30%, 06/30/15 | 195,000 | 188,959 | ||||||
| 5.65%, 04/01/16 | 82,000 | 79,633 | ||||||
| 6.50%, 12/15/18 | 140,000 | 142,286 | ||||||
| 6.38%, 06/15/38 | 390,000 | 366,726 | ||||||
| 6,053,231 | ||||||||
Pharmaceuticals 0.8% | ||||||||
| Abbott Laboratories, 5.88%, 05/15/16 | 334,000 | 358,138 | ||||||
| AstraZeneca PLC | ||||||||
| 5.40%, 06/01/14 | 155,000 | 166,924 | ||||||
| 5.90%, 09/15/17 | 300,000 | 315,649 | ||||||
| Bristol-Myers Squibb Co., 5.25%, 08/15/13 | 825,000 | 862,815 | ||||||
| Eli Lilly & Co. | ||||||||
| 6.00%, 03/15/12 | 205,000 | 223,159 | ||||||
| 5.20%, 03/15/17 | 800,000 | 825,149 | ||||||
| 7.13%, 06/01/25 | 82,000 | 89,658 | ||||||
| GlaxoSmithKline Capital, Inc. | ||||||||
| 5.65%, 05/15/18 | 940,000 | 975,639 | ||||||
| 5.38%, 04/15/34 | 139,000 | 123,887 | ||||||
| Merck & Co., Inc. | ||||||||
| 4.75%, 03/01/15 | 396,000 | 406,123 | ||||||
| 6.40%, 03/01/28 | 51,000 | 51,012 | ||||||
| 5.95%, 12/01/28 | 113,000 | 106,775 | ||||||
| Pfizer, Inc., 4.65%, 03/01/18 | 185,000 | 182,097 | ||||||
| Pharmacia Corp., 6.60%, 12/01/28 | 123,000 | 121,004 | ||||||
| Schering-Plough Corp., 5.30%, 12/01/13 | 800,000 | 848,199 | ||||||
| Teva Pharmaceutical Finance LLC, 6.15%, 02/01/36 | 98,000 | 94,120 | ||||||
| Wyeth | ||||||||
| 5.50%, 02/01/14 | 472,000 | 506,681 | ||||||
| 5.50%, 02/15/16 | 241,000 | 247,165 | ||||||
| 6.50%, 02/01/34 | 144,000 | 145,758 | ||||||
| 6,649,952 | ||||||||
Pipelines 0.4% | ||||||||
| Boardwalk Pipelines LP, 5.20%, 06/01/18 | 62,000 | 47,854 | ||||||
| CenterPoint Energy Resources Corp., 7.88%, 04/01/13 | 246,000 | 257,988 | ||||||
| Colonial Pipeline Co., 7.63%, 04/15/32 (b) | 150,000 | 159,779 | ||||||
| Consolidated Natural Gas Co., Series A, 5.00%, 12/01/14 | 396,000 | 395,204 | ||||||
| Enterprise Products Operating LLC, Series B, 5.60%, 10/15/14 | 656,000 | 608,984 | ||||||
| Kinder Morgan Energy Partners LP | ||||||||
| 7.50%, 11/01/10 | 144,000 | 149,726 | ||||||
| 6.75%, 03/15/11 | 64,000 | 65,685 | ||||||
| 5.00%, 12/15/13 | 1,000,000 | 946,692 | ||||||
| 5.80%, 03/15/35 | 144,000 | 108,963 | ||||||
| Plains All American Pipeline LP, 5.63%, 12/15/13 | 230,000 | 207,612 | ||||||
| Spectra Energy Capital LLC, 6.75%, 02/15/32 | 123,000 | 100,951 | ||||||
| Texas Eastern Transmission LP, 7.30%, 12/01/10 | 500,000 | 521,072 | ||||||
| Texas Gas Transmission LLC, 4.60%, 06/01/15 | 123,000 | 102,482 | ||||||
| 3,672,992 | ||||||||
Real Estate 0.0% | ||||||||
| Colonial Realty LP, 6.25%, 06/15/14 | 320,000 | 228,609 | ||||||
| Westfield Capital Corp. Ltd., 5.13%, 11/15/14 (b) | 107,000 | 92,558 | ||||||
| 321,167 | ||||||||
Real Estate Investment Trusts 0.4% | ||||||||
| AvalonBay Communities, Inc., 6.63%, 09/15/11 | 62,000 | 59,461 | ||||||
| Boston Properties LP, 5.00%, 06/01/15 | 360,000 | 282,313 | ||||||
| Brandywine Operating Partnership LP, 5.63%, 12/15/10 | 125,000 | 111,416 | ||||||
| Camden Property Trust, 5.00%, 06/15/15 | 103,000 | 76,854 | ||||||
| Developers Diversified Realty Corp., 5.38%, 10/15/12 | 205,000 | 92,671 | ||||||
| ERP Operating LP | ||||||||
| 5.25%, 09/15/14 | 278,000 | 239,752 | ||||||
| 5.38%, 08/01/16 | 205,000 | 169,698 | ||||||
| HCP, Inc. | ||||||||
| 6.45%, 06/25/12 | 39,000 | 35,722 | ||||||
| 6.00%, 01/30/17 | 328,000 | 267,608 | ||||||
| Health Care REIT, Inc., 6.00%, 11/15/13 | 123,000 | 102,072 | ||||||
| Hospitality Properties Trust, 6.75%, 02/15/13 | 525,000 | 420,846 | ||||||
| HRPT Properties Trust, 5.75%, 02/15/14 | 123,000 | 98,133 | ||||||
18 Semiannual Report 2009
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Real Estate Investment Trusts (continued) | ||||||||
| iStar Financial, Inc., 5.65%, 09/15/11 | $ | 176,000 | $ | 80,960 | ||||
| Liberty Property LP, 7.25%, 03/15/11 | 27,000 | 24,362 | ||||||
| Simon Property Group LP | ||||||||
| 4.60%, 06/15/10 | 164,000 | 159,966 | ||||||
| 5.10%, 06/15/15 | 294,000 | 248,831 | ||||||
| 6.10%, 05/01/16 | 287,000 | 248,098 | ||||||
| Vornado Realty LP, 5.60%, 02/15/11 | 144,000 | 135,242 | ||||||
| Washington Real Estate Investment Trust, 5.25%, 01/15/14 | 82,000 | 61,373 | ||||||
| 2,915,378 | ||||||||
Retail 0.8% | ||||||||
| Costco Wholesale Corp., 5.50%, 03/15/17 | 475,000 | 495,949 | ||||||
| CVS Caremark Corp., 6.25%, 06/01/27 | 460,000 | 433,876 | ||||||
| Home Depot, Inc. | ||||||||
| 5.25%, 12/16/13 | 200,000 | 198,054 | ||||||
| 5.40%, 03/01/16 | 410,000 | 393,817 | ||||||
| JC Penney Corp., Inc., 5.75%, 02/15/18 | 600,000 | 522,095 | ||||||
| Limited Brands, Inc., 6.13%, 12/01/12 (c) | 103,000 | 90,718 | ||||||
| Lowe’s Cos., Inc., 6.50%, 03/15/29 | 164,000 | 152,787 | ||||||
| Macy’s Retail Holdings, Inc. | ||||||||
| 6.63%, 04/01/11 | 289,000 | 275,540 | ||||||
| 5.75%, 07/15/14 (c) | 308,000 | 261,827 | ||||||
| 6.90%, 04/01/29 | 353,000 | 235,548 | ||||||
| McDonald’s Corp., Series I, 5.35%, 03/01/18 | 240,000 | 248,164 | ||||||
| Target Corp. | ||||||||
| 10.00%, 01/01/11 | 46,000 | 50,789 | ||||||
| 7.00%, 07/15/31 | 121,000 | 110,320 | ||||||
| 6.35%, 11/01/32 | 217,000 | 185,814 | ||||||
| Wal-Mart Stores, Inc. | ||||||||
| 4.13%, 07/01/10 | 287,000 | 294,822 | ||||||
| 4.13%, 02/15/11 | 267,000 | 278,267 | ||||||
| 5.00%, 04/05/12 | 1,300,000 | 1,391,543 | ||||||
| 7.55%, 02/15/30 | 82,000 | 94,558 | ||||||
| 5.25%, 09/01/35 | 492,000 | 450,710 | ||||||
| Yum! Brands, Inc., 8.88%, 04/15/11 | 82,000 | 88,034 | ||||||
| 6,253,232 | ||||||||
Savings&Loans 0.0% | ||||||||
| Golden West Financial Corp., 4.75%, 10/01/12 | 109,000 | 102,074 | ||||||
Software 0.1% | ||||||||
| Oracle Corp., 5.25%, 01/15/16 | 548,000 | 561,805 | ||||||
Telecommunications 1.7% | ||||||||
| America Movil SAB de CV | ||||||||
| 5.75%, 01/15/15 | 155,000 | 150,374 | ||||||
| 6.38%, 03/01/35 | 123,000 | 99,243 | ||||||
| Ameritech Capital Funding Corp., 6.45%, 01/15/18 | 62,000 | 60,360 | ||||||
| AT&T Mobility LLC, 7.13%, 12/15/31 | 287,000 | 286,107 | ||||||
| AT&T, Inc. | ||||||||
| 5.30%, 11/15/10 | 267,000 | 277,218 | ||||||
| 6.25%, 03/15/11 | 330,000 | 347,876 | ||||||
| 5.88%, 08/15/12 | 295,000 | 313,295 | ||||||
| 5.10%, 09/15/14 | 597,000 | 620,460 | ||||||
| 5.63%, 06/15/16 | 205,000 | 208,600 | ||||||
| 6.15%, 09/15/34 | 814,000 | 727,752 | ||||||
| BellSouth Corp. | ||||||||
| 6.00%, 10/15/11 | 583,000 | 620,723 | ||||||
| 5.20%, 09/15/14 | 349,000 | 361,495 | ||||||
| 6.55%, 06/15/34 | 123,000 | 112,412 | ||||||
| British Telecommunications PLC, 9.13%, 12/15/30 | 391,000 | 375,907 | ||||||
| Cisco Systems, Inc. | ||||||||
| 5.25%, 02/22/11 | 205,000 | 217,954 | ||||||
| 5.50%, 02/22/16 | 325,000 | 343,909 | ||||||
| 4.95%, 02/15/19 | 835,000 | 849,847 | ||||||
| Deutsche Telekom International Finance BV | ||||||||
| 5.25%, 07/22/13 | 513,000 | 525,782 | ||||||
| 5.75%, 03/23/16 | 273,000 | 271,848 | ||||||
| 8.25%, 06/15/30 | 256,000 | 295,561 | ||||||
| Embarq Corp. | ||||||||
| 6.74%, 06/01/13 | 433,000 | 417,845 | ||||||
| 7.08%, 06/01/16 | 92,000 | 88,320 | ||||||
| France Telecom SA | ||||||||
| 7.75%, 03/01/11 | 167,000 | 180,877 | ||||||
| 8.50%, 03/01/31 | 283,000 | 360,163 | ||||||
| GTE Corp. | ||||||||
| 6.84%, 04/15/18 | 144,000 | 144,622 | ||||||
| 6.94%, 04/15/28 | 103,000 | 91,502 | ||||||
| KONINKLIJKE KPN NV, 8.00%, 10/01/10 | 215,000 | 225,498 | ||||||
| Motorola, Inc. | ||||||||
| 7.63%, 11/15/10 | 111,000 | 111,596 | ||||||
| 7.50%, 05/15/25 | 144,000 | 102,882 | ||||||
| New Cingular Wireless Services, Inc. | ||||||||
| 8.13%, 05/01/12 | 31,000 | 34,255 | ||||||
| 8.75%, 03/01/31 | 224,000 | 256,401 | ||||||
| Rogers Communications, Inc., 7.25%, 12/15/12 | 540,000 | 569,785 | ||||||
2009 Semiannual Report 19
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Telecommunications (continued) | ||||||||
| Telecom Italia Capital SA | ||||||||
| 6.20%, 07/18/11 | $ | 144,000 | $ | 145,086 | ||||
| 4.95%, 09/30/14 | 205,000 | 189,463 | ||||||
| 5.25%, 10/01/15 | 730,000 | 648,488 | ||||||
| 6.00%, 09/30/34 | 160,000 | 113,532 | ||||||
| Telefonos de Mexico SAB de CV, 5.50%, 01/27/15 | 164,000 | 160,749 | ||||||
| Verizon Communications, Inc. | ||||||||
| 4.90%, 09/15/15 | 410,000 | 403,951 | ||||||
| 5.85%, 09/15/35 | 82,000 | 71,139 | ||||||
| Verizon Global Funding Corp. | ||||||||
| 6.88%, 06/15/12 | 205,000 | 221,191 | ||||||
| 7.38%, 09/01/12 | 363,000 | 397,289 | ||||||
| 4.38%, 06/01/13 | 256,000 | 261,586 | ||||||
| 7.75%, 12/01/30 | 810,000 | 853,590 | ||||||
| Vodafone Group PLC | ||||||||
| 5.00%, 12/16/13 | 461,000 | 479,420 | ||||||
| 7.88%, 02/15/30 | 144,000 | 157,633 | ||||||
| 6.15%, 02/27/37 | 75,000 | 72,551 | ||||||
| 13,826,137 | ||||||||
Tobacco 0.2% | ||||||||
| Altria Group, Inc. | ||||||||
| 9.70%, 11/10/18 | 600,000 | 701,125 | ||||||
| 10.20%, 02/06/39 | 420,000 | 462,390 | ||||||
| Philip Morris International, Inc. | ||||||||
| 5.65%, 05/16/18 | 300,000 | 303,588 | ||||||
| 6.38%, 05/16/38 | 150,000 | 150,094 | ||||||
| 1,617,197 | ||||||||
Transportation 0.2% | ||||||||
| Burlington Northern Santa Fe Corp., 7.95%, 08/15/30 | 144,000 | 158,150 | ||||||
| CSX Corp. | ||||||||
| 6.75%, 03/15/11 | 92,000 | 94,620 | ||||||
| 5.50%, 08/01/13 | 308,000 | 299,592 | ||||||
| Norfolk Southern Corp. | ||||||||
| 6.75%, 02/15/11 | 371,000 | 390,949 | ||||||
| 5.59%, 05/17/25 | 59,000 | 50,313 | ||||||
| 7.25%, 02/15/31 | 87,000 | 87,006 | ||||||
| Union Pacific Corp. | ||||||||
| 5.38%, 06/01/33 | 43,000 | 33,486 | ||||||
| 6.25%, 05/01/34 | 164,000 | 144,342 | ||||||
| United Parcel Service of America, Inc. | ||||||||
| 8.38%, 04/01/20 | 82,000 | 97,634 | ||||||
| 8.38%, 04/01/30 (d) | 123,000 | 142,723 | ||||||
| 1,498,815 | ||||||||
Trucking & Leasing 0.0% (b) | ||||||||
| TTX Co., 4.90%, 03/01/15 | 154,000 | 133,648 | ||||||
Utility 0.0% | ||||||||
| Ohio Power Co., 6.00%, 06/01/16 | 349,000 | 338,750 | ||||||
Total Corporate Bonds (cost $178,777,607) | 166,140,968 | |||||||
| Municipal Bonds 0.2% | ||||||||
CALIFORNIA 0.0% | ||||||||
| State of California, 7.55%, 04/01/39 | 420,000 | 437,913 | ||||||
ILLINOIS 0.1% | ||||||||
| State of Illinois, 5.10%, 06/01/33 | 695,000 | 573,299 | ||||||
NEW YORK 0.0% | ||||||||
| Metropolitan Transportation Authority, 7.34%, 11/15/39 | 105,000 | 112,124 | ||||||
TEXAS 0.1% (e) | ||||||||
| City of Dallas, Texas, 5.50%, 02/15/24 | 492,000 | 492,177 | ||||||
Total Municipal Bonds (cost $1,672,105) | 1,615,513 | |||||||
| Sovereign Bonds 2.5% | ||||||||
BRAZIL 0.4% | ||||||||
| Brazilian Government International Bond, 8.00%, 01/15/18 | 2,845,000 | 3,072,600 | ||||||
CANADA 0.3% | ||||||||
| Province of British Columbia Canada, 4.30%, 05/30/13 | 111,000 | 114,803 | ||||||
| Province of Manitoba Canada, 5.00%, 02/15/12 | 275,000 | 289,985 | ||||||
| Province of Nova Scotia Canada, 5.13%, 01/26/17 | 615,000 | 642,908 | ||||||
| Province of Ontario Canada | ||||||||
| 4.38%, 02/15/13 | 297,000 | 307,801 | ||||||
| 4.50%, 02/03/15 | 463,000 | 470,612 | ||||||
| 4.75%, 01/19/16 | 205,000 | 210,024 | ||||||
| Province of Quebec Canada | ||||||||
| 4.60%, 05/26/15 | 246,000 | 248,273 | ||||||
| Series PD, 7.50%, 09/15/29 | 402,000 | 477,499 | ||||||
| 2,761,905 | ||||||||
20 Semiannual Report 2009
Sovereign Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
CHILE 0.0% | ||||||||
| Chile Government International Bond, 5.50%, 01/15/13 | $ | 123,000 | $ | 130,491 | ||||
CHINA 0.0% | ||||||||
| China Government International Bond, 4.75%, 10/29/13 | 205,000 | 214,757 | ||||||
ITALY 0.3% | ||||||||
| Italian Republic | ||||||||
| 4.38%, 06/15/13 | 390,000 | 397,094 | ||||||
| 4.50%, 01/21/15 | 652,000 | 657,714 | ||||||
| 4.75%, 01/25/16 | 287,000 | 284,151 | ||||||
| 6.88%, 09/27/23 | 174,000 | 191,143 | ||||||
| 5.38%, 06/15/33 | 584,000 | 537,612 | ||||||
| 2,067,714 | ||||||||
LUXEMBOURG 0.3% | ||||||||
| European Investment Bank | ||||||||
| 4.63%, 05/15/14 | 630,000 | 667,148 | ||||||
| 4.63%, 10/20/15 | 1,675,000 | 1,764,144 | ||||||
| 5.13%, 09/13/16 | 250,000 | 266,624 | ||||||
| 2,697,916 | ||||||||
MEXICO 0.2% | ||||||||
| Mexico Government International Bond | ||||||||
| 6.38%, 01/16/13 | 545,000 | 579,062 | ||||||
| 6.75%, 09/27/34 | 1,123,000 | 1,090,433 | ||||||
| 1,669,495 | ||||||||
POLAND 0.0% | ||||||||
| Poland Government International Bond, 5.00%, 10/19/15 | 156,000 | 149,898 | ||||||
REPUBLIC OF KOREA 0.1% | ||||||||
| Export-Import Bank of Korea, 5.13%, 02/14/11 | 246,000 | 246,187 | ||||||
| Republic of Korea, 4.25%, 06/01/13 (c) | 492,000 | 480,466 | ||||||
| 726,653 | ||||||||
SOUTH AFRICA 0.0% | ||||||||
| South Africa Government International Bond, 6.50%, 06/02/14 | 144,000 | 150,120 | ||||||
SPAIN 0.2% | ||||||||
| Telefonica Emisiones SAU, 6.42%, 06/20/16 | 1,080,000 | 1,129,872 | ||||||
SWEDEN 0.5% | ||||||||
| Svensk Exportkredit AB, Series A, 4.88%, 09/29/11 | 4,101,000 | 4,316,122 | ||||||
UNITED STATES 0.2% | ||||||||
Inter-American Development Bank | ||||||||
| 5.00%, 04/05/11 | 250,000 | 265,217 | ||||||
| 5.13%, 09/13/16 | 65,000 | 69,523 | ||||||
| International Bank for Reconstruction & Development, 7.63%, 01/19/23 | 677,000 | 883,956 | ||||||
| 1,218,696 | ||||||||
VENEZUELA 0.0% | ||||||||
| Corp Andina de Fomento, 6.88%, 03/15/12 | 164,000 | 164,275 | ||||||
Total Sovereign Bonds (cost $19,889,952) | 20,470,514 | |||||||
| U.S. Government Mortgage Backed Agencies 38.9% | ||||||||
| Fannie Mae Pool | ||||||||
| Pool #560868, 7.50%, 02/01/31 | 2,669 | 2,906 | ||||||
| Pool #607212, 7.50%, 10/01/31 | 62,910 | 68,508 | ||||||
| Pool #607559, 6.50%, 11/01/31 | 1,704 | 1,828 | ||||||
| Pool #607632, 6.50%, 11/01/31 | 309 | 332 | ||||||
| Pool #661664, 7.50%, 09/01/32 | 55,032 | 59,649 | ||||||
| Pool #254548, 5.50%, 12/01/32 | 77,752 | 80,943 | ||||||
| Pool #656559, 6.50%, 02/01/33 | 166,059 | 177,919 | ||||||
| Pool #694846, 6.50%, 04/01/33 | 25,566 | 27,121 | ||||||
| Pool #555421, 5.00%, 05/01/33 | 27,737,850 | 28,646,354 | ||||||
| Pool #254767, 5.50%, 06/01/33 | 8,770,172 | 9,094,422 | ||||||
| Pool #750229, 6.50%, 10/01/33 | 143,459 | 152,180 | ||||||
| Pool #725027, 5.00%, 11/01/33 | 3,179,216 | 3,283,346 | ||||||
| Pool #725424, 5.50%, 04/01/34 | 10,825,193 | 11,225,422 | ||||||
| Pool #725425, 5.50%, 04/01/34 | 1,999,636 | 2,073,567 | ||||||
| Pool #788027, 6.50%, 09/01/34 | 143,545 | 152,989 | ||||||
2009 Semiannual Report 21
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #804847, 4.50%, 01/01/35 | $ | 215,813 | $ | 220,246 | ||||
| Pool #735141, 5.50%, 01/01/35 | 5,577,481 | 5,783,692 | ||||||
| Pool #256023, 6.00%, 12/01/35 | 4,276,537 | 4,474,742 | ||||||
| Pool #845425, 6.00%, 02/01/36 | 1,521,429 | 1,593,368 | ||||||
| Pool #894441, 5.83%, 08/01/36 (a) | 5,593,578 | 5,787,862 | ||||||
| Pool #897166, 6.50%, 10/01/36 | 1,880,730 | 1,995,073 | ||||||
| Pool #906185, 5.96%, 01/01/37 (a) | 3,773,674 | 3,949,039 | ||||||
| Pool #888637, 6.00%, 09/01/37 | 238,370 | 249,455 | ||||||
| Pool #995050, 6.00%, 09/01/37 | 46,085,440 | 48,221,362 | ||||||
| Pool #955760, 6.00%, 10/01/37 | 8,098,711 | 8,475,327 | ||||||
| Pool #955194, 7.00%, 11/01/37 | 3,694,005 | 3,955,650 | ||||||
| Pool #929329, 6.00%, 04/01/38 | 405,354 | 424,182 | ||||||
| Pool #965124, 6.50%, 09/01/38 | 6,095,523 | 6,466,725 | ||||||
| Pool #990653, 6.50%, 09/01/38 | 302,662 | 321,093 | ||||||
| Federal Home Loan Mortgage Corp. TBA | ||||||||
| 5.00%, 05/12/39 | 31,900,000 | 32,787,203 | ||||||
| Federal National Mortgage Association TBA | ||||||||
| 6.00%, 05/17/16 | 900,000 | 944,437 | ||||||
| 5.00%, 05/01/24 | 7,500,000 | 7,741,410 | ||||||
| 4.00%, 05/18/24 | 3,400,000 | 3,444,625 | ||||||
| 5.50%, 05/18/24 | 600,000 | 628,156 | ||||||
| 6.00%, 05/12/39 | 3,500,000 | 3,377,702 | ||||||
| 6.50%, 06/11/39 | 300,000 | 316,687 | ||||||
| Freddie Mac Gold Pool | ||||||||
| Pool #G10399, 6.50%, 07/01/09 | 1 | 1 | ||||||
| Pool #E00394, 7.50%, 09/01/10 | 6,837 | 7,102 | ||||||
| Pool #M80898, 4.50%, 02/01/11 | 224,985 | 234,906 | ||||||
| Pool #M80904, 4.50%, 03/01/11 | 144,558 | 149,784 | ||||||
| Pool #M80917, 4.50%, 05/01/11 | 35,593 | 37,162 | ||||||
| Pool #M80926, 4.50%, 07/01/11 | 135,893 | 141,987 | ||||||
| Pool #M80934, 4.50%, 08/01/11 | 173,072 | 179,329 | ||||||
| Pool #G10940, 6.50%, 11/01/11 | 3,710 | 3,823 | ||||||
| Pool #G11130, 6.00%, 12/01/11 | 29,897 | 31,069 | ||||||
| Pool #M80981, 4.50%, 07/01/12 | 73,099 | 75,674 | ||||||
| Pool #E00507, 7.50%, 09/01/12 | 1,191 | 1,253 | ||||||
| Pool #G10749, 6.00%, 10/01/12 | 28,275 | 29,697 | ||||||
| Pool #M81009, 4.50%, 02/01/13 | 97,671 | 101,202 | ||||||
| Pool #E69050, 6.00%, 02/01/13 | 19,171 | 20,154 | ||||||
| Pool #E72896, 7.00%, 10/01/13 | 9,484 | 9,989 | ||||||
| Pool #G11612, 6.00%, 04/01/14 | 15,563 | 16,158 | ||||||
| Pool #E00677, 6.00%, 06/01/14 | 48,780 | 50,886 | ||||||
| Pool #E00802, 7.50%, 02/01/15 | 25,092 | 26,591 | ||||||
| Pool #G11001, 6.50%, 03/01/15 | 17,377 | 18,377 | ||||||
| Pool #G11003, 7.50%, 04/01/15 | 1,340 | 1,419 | ||||||
| Pool #G11164, 7.00%, 05/01/15 | 4,381 | 4,639 | ||||||
| Pool #E81396, 7.00%, 10/01/15 | 919 | 974 | ||||||
| Pool #E81394, 7.50%, 10/01/15 | 7,931 | 8,416 | ||||||
| Pool #E84097, 6.50%, 12/01/15 | 2,752 | 2,909 | ||||||
| Pool #E00938, 7.00%, 01/01/16 | 12,441 | 13,189 | ||||||
| Pool #E82132, 7.00%, 01/01/16 | 2,607 | 2,764 | ||||||
| Pool #E82815, 6.00%, 03/01/16 | 9,004 | 9,482 | ||||||
| Pool #G11972, 6.00%, 04/01/16 | 140,488 | 147,949 | ||||||
| Pool #E83231, 6.00%, 04/01/16 | 2,520 | 2,659 | ||||||
| Pool #E83233, 6.00%, 04/01/16 | 6,550 | 6,910 | ||||||
| Pool #E83046, 7.00%, 04/01/16 | 1,355 | 1,437 | ||||||
| Pool #E00975, 6.00%, 05/01/16 | 34,994 | 36,638 | ||||||
22 Semiannual Report 2009
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #E83355, 6.00%, 05/01/16 | $ | 9,111 | $ | 9,612 | ||||
| Pool #E83636, 6.00%, 05/01/16 | 16,042 | 16,924 | ||||||
| Pool #E83933, 6.50%, 05/01/16 | 711 | 751 | ||||||
| Pool #E00985, 6.00%, 06/01/16 | 19,373 | 20,285 | ||||||
| Pool #E00987, 6.50%, 06/01/16 | 17,513 | 18,433 | ||||||
| Pool #E84236, 6.50%, 06/01/16 | 4,566 | 4,825 | ||||||
| Pool #E00996, 6.50%, 07/01/16 | 2,130 | 2,242 | ||||||
| Pool #E84912, 6.50%, 08/01/16 | 10,462 | 11,057 | ||||||
| Pool #E85117, 6.50%, 08/01/16 | 5,803 | 6,133 | ||||||
| Pool #E85387, 6.00%, 09/01/16 | 22,309 | 23,535 | ||||||
| Pool #E85800, 6.50%, 10/01/16 | 3,987 | 4,214 | ||||||
| Pool #E86183, 6.00%, 11/01/16 | 3,085 | 3,255 | ||||||
| Pool #G11207, 7.00%, 11/01/16 | 11,003 | 11,667 | ||||||
| Pool #E01083, 7.00%, 11/01/16 | 3,972 | 4,207 | ||||||
| Pool #E86746, 5.50%, 12/01/16 | 46,628 | 48,513 | ||||||
| Pool #E86533, 6.00%, 12/01/16 | 5,982 | 6,311 | ||||||
| Pool #E01095, 6.00%, 01/01/17 | 8,102 | 8,487 | ||||||
| Pool #E87584, 6.00%, 01/01/17 | 6,294 | 6,640 | ||||||
| Pool #E86995, 6.50%, 01/01/17 | 19,113 | 20,201 | ||||||
| Pool #E87291, 6.50%, 01/01/17 | 25,847 | 27,317 | ||||||
| Pool #E87446, 6.50%, 01/01/17 | 3,901 | 4,120 | ||||||
| Pool #E88076, 6.00%, 02/01/17 | 7,014 | 7,395 | ||||||
| Pool #E01127, 6.50%, 02/01/17 | 12,849 | 13,534 | ||||||
| Pool #E88055, 6.50%, 02/01/17 | 41,245 | 43,553 | ||||||
| Pool #E88106, 6.50%, 02/01/17 | 25,590 | 27,022 | ||||||
| Pool #E01137, 6.00%, 03/01/17 | 12,179 | 12,759 | ||||||
| Pool #E88134, 6.00%, 03/01/17 | 2,185 | 2,304 | ||||||
| Pool #E88474, 6.00%, 03/01/17 | 12,039 | 12,694 | ||||||
| Pool #E88768, 6.00%, 03/01/17 | 28,962 | 30,554 | ||||||
| Pool #E01138, 6.50%, 03/01/17 | 6,710 | 7,069 | ||||||
| Pool #E01139, 6.00%, 04/01/17 | 55,762 | 58,424 | ||||||
| Pool #E88729, 6.00%, 04/01/17 | 8,853 | 9,334 | ||||||
| Pool #E89149, 6.00%, 04/01/17 | 15,589 | 16,437 | ||||||
| Pool #E89151, 6.00%, 04/01/17 | 10,036 | 10,581 | ||||||
| Pool #E89217, 6.00%, 04/01/17 | 8,819 | 9,298 | ||||||
| Pool #E89222, 6.00%, 04/01/17 | 50,839 | 53,602 | ||||||
| Pool #E89347, 6.00%, 04/01/17 | 3,090 | 3,258 | ||||||
| Pool #E89496, 6.00%, 04/01/17 | 12,250 | 12,915 | ||||||
| Pool #E89203, 6.50%, 04/01/17 | 5,514 | 5,822 | ||||||
| Pool #G11409, 6.00%, 05/01/17 | 73,981 | 78,048 | ||||||
| Pool #E01140, 6.00%, 05/01/17 | 47,926 | 50,217 | ||||||
| Pool #E89788, 6.00%, 05/01/17 | 7,605 | 8,019 | ||||||
| Pool #E89530, 6.00%, 05/01/17 | 32,991 | 34,784 | ||||||
| Pool #E89746, 6.00%, 05/01/17 | 78,885 | 83,173 | ||||||
| Pool #E89909, 6.00%, 05/01/17 | 12,742 | 13,435 | ||||||
| Pool #E01156, 6.50%, 05/01/17 | 19,280 | 20,317 | ||||||
| Pool #E89924, 6.50%, 05/01/17 | 39,208 | 41,402 | ||||||
| Pool #E01157, 6.00%, 06/01/17 | 34,005 | 35,632 | ||||||
| Pool #B15071, 6.00%, 06/01/17 | 159,280 | 168,037 | ||||||
| Pool #E90194, 6.00%, 06/01/17 | 9,626 | 10,150 | ||||||
| Pool #E90227, 6.00%, 06/01/17 | 7,846 | 8,273 | ||||||
| Pool #E90313, 6.00%, 06/01/17 | 4,104 | 4,327 | ||||||
2009 Semiannual Report 23
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #E90591, 5.50%, 07/01/17 | $ | 49,854 | $ | 52,150 | ||||
| Pool #E90594, 6.00%, 07/01/17 | 31,299 | 33,000 | ||||||
| Pool #E90667, 6.00%, 07/01/17 | 8,953 | 9,440 | ||||||
| Pool #E90645, 6.00%, 07/01/17 | 50,749 | 53,508 | ||||||
| Pool #E01186, 5.50%, 08/01/17 | 109,342 | 114,306 | ||||||
| Pool #E01205, 6.50%, 08/01/17 | 14,070 | 14,827 | ||||||
| Pool #G11295, 5.50%, 09/01/17 | 71,748 | 75,053 | ||||||
| Pool #G11458, 6.00%, 09/01/17 | 22,733 | 23,919 | ||||||
| Pool #G11434, 6.50%, 01/01/18 | 19,755 | 20,879 | ||||||
| Pool #E01311, 5.50%, 02/01/18 | 1,183,348 | 1,236,599 | ||||||
| Pool #G11399, 5.50%, 04/01/18 | 103,246 | 108,130 | ||||||
| Pool #B10210, 5.50%, 10/01/18 | 223,058 | 232,913 | ||||||
| Pool #B10653, 5.50%, 11/01/18 | 161,506 | 168,641 | ||||||
| Pool #B11548, 5.50%, 12/01/18 | 73,177 | 76,136 | ||||||
| Pool #G11531, 5.50%, 02/01/19 | 47,389 | 49,482 | ||||||
| Pool #E01604, 5.50%, 03/01/19 | 89,524 | 93,143 | ||||||
| Pool #B12908, 5.50%, 03/01/19 | 86,345 | 89,998 | ||||||
| Pool #B13600, 5.50%, 04/01/19 | 59,424 | 61,938 | ||||||
| Pool #B13430, 5.50%, 04/01/19 | 66,655 | 69,475 | ||||||
| Pool #B15396, 5.50%, 06/01/19 | 106,967 | 111,493 | ||||||
| Pool #G18007, 6.00%, 07/01/19 | 41,851 | 43,924 | ||||||
| Pool #G18006, 5.50%, 08/01/19 | 83,955 | 87,507 | ||||||
| Pool #B16087, 6.00%, 08/01/19 | 83,862 | 88,014 | ||||||
| Pool #G18022, 5.50%, 11/01/19 | 175,556 | 182,983 | ||||||
| Pool #B14288, 5.50%, 12/01/19 | 94,354 | 98,346 | ||||||
| Pool #B18437, 5.50%, 05/01/20 | 82,003 | 85,395 | ||||||
| Pool #G18062, 6.00%, 06/01/20 | 82,497 | 86,582 | ||||||
| Pool #J02325, 5.50%, 07/01/20 | 140,804 | 146,629 | ||||||
| Pool #J00718, 5.00%, 12/01/20 | 793,323 | 822,918 | ||||||
| Pool #J00935, 5.00%, 12/01/20 | 81,313 | 84,347 | ||||||
| Pool #J00854, 5.00%, 01/01/21 | 467,157 | 484,584 | ||||||
| Pool #J00871, 5.00%, 01/01/21 | 179,717 | 186,421 | ||||||
| Pool #J01049, 5.00%, 01/01/21 | 1,719,230 | 1,783,365 | ||||||
| Pool #G18096, 5.50%, 01/01/21 | 67,451 | 70,178 | ||||||
| Pool #J00855, 5.50%, 01/01/21 | 188,594 | 196,395 | ||||||
| Pool #J01189, 5.00%, 02/01/21 | 112,724 | 116,788 | ||||||
| Pool #J01279, 5.50%, 02/01/21 | 158,502 | 164,960 | ||||||
| Pool #J01256, 5.00%, 03/01/21 | 100,138 | 103,748 | ||||||
| Pool #J01414, 5.00%, 03/01/21 | 80,972 | 83,891 | ||||||
| Pool #J01576, 5.00%, 04/01/21 | 469,642 | 486,575 | ||||||
| Pool #J01570, 5.50%, 04/01/21 | 104,240 | 108,454 | ||||||
| Pool #J01633, 5.50%, 04/01/21 | 474,072 | 493,386 | ||||||
| Pool #J01757, 5.00%, 05/01/21 | 190,009 | 196,859 | ||||||
| Pool #J01771, 5.00%, 05/01/21 | 138,513 | 143,507 | ||||||
| Pool #J01833, 5.00%, 05/01/21 | 83,813 | 86,835 | ||||||
| Pool #J01879, 5.00%, 05/01/21 | 167,878 | 173,931 | ||||||
| Pool #J06015, 5.00%, 05/01/21 | 158,059 | 163,758 | ||||||
| Pool #G18122, 5.00%, 06/01/21 | 143,280 | 148,446 | ||||||
| Pool #G18123, 5.50%, 06/01/21 | 244,161 | 254,109 | ||||||
| Pool #J01980, 6.00%, 06/01/21 | 104,596 | 109,775 | ||||||
| Pool #J03074, 5.00%, 07/01/21 | 130,968 | 135,690 | ||||||
| Pool #J03028, 5.50%, 07/01/21 | 95,269 | 99,151 | ||||||
24 Semiannual Report 2009
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #G12245, 6.00%, 07/01/21 | $ | 88,906 | $ | 93,308 | ||||
| Pool #G12310, 5.50%, 08/01/21 | 70,672 | 73,552 | ||||||
| Pool #G12348, 6.00%, 08/01/21 | 171,987 | 180,502 | ||||||
| Pool #G12412, 5.50%, 11/01/21 | 93,320 | 97,122 | ||||||
| Pool #C00351, 8.00%, 07/01/24 | 1,557 | 1,709 | ||||||
| Pool #D60780, 8.00%, 06/01/25 | 3,495 | 3,847 | ||||||
| Pool #D64617, 8.00%, 10/01/25 | 19,310 | 21,181 | ||||||
| Pool #D82854, 7.00%, 10/01/27 | 3,703 | 4,001 | ||||||
| Pool #C00566, 7.50%, 12/01/27 | 6,366 | 6,980 | ||||||
| Pool #C00678, 7.00%, 11/01/28 | 9,062 | 9,753 | ||||||
| Pool #C18271, 7.00%, 11/01/28 | 5,074 | 5,460 | ||||||
| Pool #C00836, 7.00%, 07/01/29 | 3,525 | 3,791 | ||||||
| Pool #A16201, 7.00%, 08/01/29 | 16,303 | 17,533 | ||||||
| Pool #C31282, 7.00%, 09/01/29 | 761 | 818 | ||||||
| Pool #C31285, 7.00%, 09/01/29 | 9,050 | 9,733 | ||||||
| Pool #A18212, 7.00%, 11/01/29 | 162,904 | 175,196 | ||||||
| Pool #C32914, 8.00%, 11/01/29 | 4,119 | 4,519 | ||||||
| Pool #C37436, 8.00%, 01/01/30 | 5,234 | 5,743 | ||||||
| Pool #C36306, 7.00%, 02/01/30 | 4,899 | 5,264 | ||||||
| Pool #C36429, 7.00%, 02/01/30 | 4,377 | 4,703 | ||||||
| Pool #C00921, 7.50%, 02/01/30 | 4,893 | 5,331 | ||||||
| Pool #G01108, 7.00%, 04/01/30 | 3,009 | 3,236 | ||||||
| Pool #C37703, 7.50%, 04/01/30 | 3,405 | 3,710 | ||||||
| Pool #C41561, 8.00%, 08/01/30 | 3,090 | 3,386 | ||||||
| Pool #C01051, 8.00%, 09/01/30 | 8,764 | 9,602 | ||||||
| Pool #C43550, 7.00%, 10/01/30 | 7,857 | 8,443 | ||||||
| Pool #C44017, 7.50%, 10/01/30 | 706 | 769 | ||||||
| Pool #C43967, 8.00%, 10/01/30 | 35,271 | 38,645 | ||||||
| Pool #C44978, 7.00%, 11/01/30 | 1,533 | 1,648 | ||||||
| Pool #C44957, 8.00%, 11/01/30 | 5,287 | 5,792 | ||||||
| Pool #C01106, 7.00%, 12/01/30 | 46,103 | 49,539 | ||||||
| Pool #C01103, 7.50%, 12/01/30 | 4,050 | 4,413 | ||||||
| Pool #C01116, 7.50%, 01/01/31 | 3,874 | 4,221 | ||||||
| Pool #C46932, 7.50%, 01/01/31 | 6,776 | 7,384 | ||||||
| Pool #C47287, 7.50%, 02/01/31 | 5,403 | 5,887 | ||||||
| Pool #G01217, 7.00%, 03/01/31 | 40,937 | 43,988 | ||||||
| Pool #C48851, 7.00%, 03/01/31 | 6,776 | 7,269 | ||||||
| Pool #C48206, 7.50%, 03/01/31 | 10,874 | 11,849 | ||||||
| Pool #C53324, 7.00%, 06/01/31 | 8,971 | 9,623 | ||||||
| Pool #C01209, 8.00%, 06/01/31 | 2,052 | 2,248 | ||||||
| Pool #C54792, 7.00%, 07/01/31 | 49,502 | 53,098 | ||||||
| Pool #C55071, 7.50%, 07/01/31 | 606 | 659 | ||||||
| Pool #G01309, 7.00%, 08/01/31 | 10,399 | 11,154 | ||||||
| Pool #C01222, 7.00%, 09/01/31 | 7,745 | 8,307 | ||||||
| Pool #G01311, 7.00%, 09/01/31 | 63,834 | 68,592 | ||||||
| Pool #G01315, 7.00%, 09/01/31 | 2,413 | 2,593 | ||||||
| Pool #C58647, 7.00%, 10/01/31 | 2,341 | 2,511 | ||||||
| Pool #C58694, 7.00%, 10/01/31 | 15,789 | 16,935 | ||||||
| Pool #C60012, 7.00%, 11/01/31 | 1,998 | 2,143 | ||||||
| Pool #C61298, 8.00%, 11/01/31 | 5,141 | 5,609 | ||||||
| Pool #C61105, 7.00%, 12/01/31 | 7,613 | 8,165 | ||||||
| Pool #C01305, 7.50%, 12/01/31 | 4,427 | 4,818 | ||||||
2009 Semiannual Report 25
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #C62218, 7.00%, 01/01/32 | $ | 9,983 | $ | 10,708 | ||||
| Pool #C63171, 7.00%, 01/01/32 | 24,813 | 26,615 | ||||||
| Pool #C64121, 7.50%, 02/01/32 | 5,675 | 6,175 | ||||||
| Pool #C01345, 7.00%, 04/01/32 | 33,649 | 36,068 | ||||||
| Pool #G01391, 7.00%, 04/01/32 | 102,182 | 109,798 | ||||||
| Pool #C66744, 7.00%, 04/01/32 | 1,788 | 1,917 | ||||||
| Pool #C65717, 7.50%, 04/01/32 | 7,730 | 8,385 | ||||||
| Pool #C01370, 8.00%, 04/01/32 | 7,252 | 7,913 | ||||||
| Pool #C66916, 7.00%, 05/01/32 | 25,772 | 27,625 | ||||||
| Pool #C67259, 7.00%, 05/01/32 | 2,916 | 3,125 | ||||||
| Pool #C67235, 7.00%, 05/01/32 | 60,746 | 65,113 | ||||||
| Pool #C01381, 8.00%, 05/01/32 | 41,587 | 45,371 | ||||||
| Pool #C68290, 7.00%, 06/01/32 | 9,493 | 10,175 | ||||||
| Pool #C68300, 7.00%, 06/01/32 | 47,673 | 51,100 | ||||||
| Pool #C68307, 8.00%, 06/01/32 | 2,682 | 2,926 | ||||||
| Pool #G01449, 7.00%, 07/01/32 | 72,592 | 78,002 | ||||||
| Pool #C68988, 7.50%, 07/01/32 | 3,167 | 3,435 | ||||||
| Pool #C69908, 7.00%, 08/01/32 | 43,714 | 46,857 | ||||||
| Pool #C70211, 7.00%, 08/01/32 | 41,808 | 44,813 | ||||||
| Pool #C71089, 7.50%, 09/01/32 | 11,415 | 12,383 | ||||||
| Pool #C72160, 7.50%, 10/01/32 | 3,042 | 3,300 | ||||||
| Pool #C77531, 6.50%, 02/01/33 | 68,911 | 73,768 | ||||||
| Pool #G01536, 7.00%, 03/01/33 | 54,080 | 57,655 | ||||||
| Pool #A10212, 6.50%, 06/01/33 | 18,046 | 19,284 | ||||||
| Pool #A16419, 6.50%, 11/01/33 | 33,385 | 35,676 | ||||||
| Pool #A17177, 6.50%, 12/01/33 | 20,075 | 21,452 | ||||||
| Pool #A16522, 6.50%, 12/01/33 | 236,028 | 252,222 | ||||||
| Pool #A17262, 6.50%, 12/01/33 | 49,443 | 52,836 | ||||||
| Pool #C01806, 7.00%, 01/01/34 | 46,591 | 49,672 | ||||||
| Pool #C01851, 6.50%, 04/01/34 | 143,273 | 152,655 | ||||||
| Pool #A21356, 6.50%, 04/01/34 | 153,933 | 164,013 | ||||||
| Pool #A22067, 6.50%, 05/01/34 | 202,213 | 215,455 | ||||||
| Pool #A24301, 6.50%, 05/01/34 | 112,116 | 119,458 | ||||||
| Pool #A24988, 6.50%, 07/01/34 | 104,392 | 111,228 | ||||||
| Pool #G01741, 6.50%, 10/01/34 | 102,914 | 110,168 | ||||||
| Pool #G08023, 6.50%, 11/01/34 | 161,622 | 172,206 | ||||||
| Pool #A33137, 6.50%, 01/01/35 | 42,504 | 45,287 | ||||||
| Pool #G08064, 6.50%, 04/01/35 | 100,155 | 106,338 | ||||||
| Pool #A31989, 6.50%, 04/01/35 | 58,799 | 62,429 | ||||||
| Pool #A38817, 6.50%, 05/01/35 | 8,577 | 9,095 | ||||||
| Pool #G01947, 7.00%, 05/01/35 | 84,785 | 90,880 | ||||||
| Pool #G01837, 5.00%, 07/01/35 | 11,449,094 | 11,790,099 | ||||||
| Pool #G08073, 5.50%, 08/01/35 | 1,457,033 | 1,510,714 | ||||||
| Pool #A47036, 4.50%, 09/01/35 | 225,737 | 229,803 | ||||||
| Pool #A47055, 4.50%, 09/01/35 | 2,778,870 | 2,828,922 | ||||||
| Pool #A37533, 4.50%, 09/01/35 | 170,064 | 173,127 | ||||||
| Pool #A37135, 5.50%, 09/01/35 | 2,482,970 | 2,574,449 | ||||||
| Pool #A46935, 6.50%, 09/01/35 | 51,390 | 54,562 | ||||||
| Pool #G01890, 4.50%, 10/01/35 | 452,258 | 460,404 | ||||||
| Pool #G02045, 4.50%, 10/01/35 | 163,713 | 166,662 | ||||||
| Pool #A38255, 5.50%, 10/01/35 | 2,170,750 | 2,250,726 | ||||||
| Pool #A38531, 5.50%, 10/01/35 | 2,627,886 | 2,724,704 | ||||||
26 Semiannual Report 2009
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #A38667, 5.50%, 10/01/35 | $ | 1,847,717 | $ | 1,915,791 | ||||
| Pool #G08088, 6.50%, 10/01/35 | 549,861 | 583,806 | ||||||
| Pool #G08109, 4.50%, 11/01/35 | 239,435 | 243,748 | ||||||
| Pool #G08095, 5.50%, 11/01/35 | 428,710 | 444,505 | ||||||
| Pool #A39759, 5.50%, 11/01/35 | 150,282 | 155,819 | ||||||
| Pool #A47682, 6.50%, 11/01/35 | 367,149 | 389,815 | ||||||
| Pool #A40141, 6.50%, 11/01/35 | 88,300 | 93,751 | ||||||
| Pool #A40376, 5.50%, 12/01/35 | 136,135 | 141,151 | ||||||
| Pool #G02220, 4.50%, 01/01/36 | 143,107 | 145,684 | ||||||
| Pool #A42298, 4.50%, 01/01/36 | 289,832 | 295,052 | ||||||
| Pool #G08105, 5.50%, 01/01/36 | 5,079,334 | 5,266,471 | ||||||
| Pool #A41326, 5.50%, 01/01/36 | 713,860 | 740,161 | ||||||
| Pool #A41354, 5.50%, 01/01/36 | 4,839,654 | 5,017,960 | ||||||
| Pool #A42305, 5.50%, 01/01/36 | 994,144 | 1,029,684 | ||||||
| Pool #A42332, 5.50%, 01/01/36 | 232,744 | 241,319 | ||||||
| Pool #G02037, 6.50%, 01/01/36 | 96,483 | 102,439 | ||||||
| Pool #A41548, 7.00%, 01/01/36 | 153,370 | 163,519 | ||||||
| Pool #G08111, 5.50%, 02/01/36 | 3,608,850 | 3,737,862 | ||||||
| Pool #A43672, 6.50%, 02/01/36 | 45,835 | 48,614 | ||||||
| Pool #A48303, 7.00%, 02/01/36 | 72,685 | 77,488 | ||||||
| Pool #G08116, 5.50%, 03/01/36 | 720,755 | 746,521 | ||||||
| Pool #A43884, 5.50%, 03/01/36 | 1,799,343 | 1,865,635 | ||||||
| Pool #A43885, 5.50%, 03/01/36 | 1,503,411 | 1,557,157 | ||||||
| Pool #A43886, 5.50%, 03/01/36 | 2,458,653 | 2,546,547 | ||||||
| Pool #A48378, 5.50%, 03/01/36 | 1,211,521 | 1,254,832 | ||||||
| Pool #A48379, 5.50%, 03/01/36 | 4,634,625 | 4,800,308 | ||||||
| Pool #A43452, 5.50%, 03/01/36 | 125,557 | 130,045 | ||||||
| Pool #A43757, 5.50%, 03/01/36 | 1,128,086 | 1,168,413 | ||||||
| Pool #A43861, 5.50%, 03/01/36 | 2,781,676 | 2,881,118 | ||||||
| Pool #A48700, 4.50%, 05/01/36 | 109,884 | 111,828 | ||||||
| Pool #A48911, 5.50%, 05/01/36 | 394,627 | 408,734 | ||||||
| Pool #A48976, 5.50%, 05/01/36 | 3,614,409 | 3,743,621 | ||||||
| Pool #A48735, 5.50%, 05/01/36 | 295,596 | 306,164 | ||||||
| Pool #A49960, 7.00%, 06/01/36 | 25,247 | 26,915 | ||||||
| Pool #A53632, 6.00%, 10/01/36 | 565,787 | 591,656 | ||||||
| Pool #A53039, 6.50%, 10/01/36 | 305,945 | 324,498 | ||||||
| Pool #A53219, 6.50%, 10/01/36 | 248,092 | 263,137 | ||||||
| Pool #G02366, 6.50%, 10/01/36 | 427,834 | 456,703 | ||||||
| Pool #G02461, 6.50%, 11/01/36 | 9,874 | 10,541 | ||||||
| Pool #A75145, 6.50%, 04/01/38 | 2,031,367 | 2,154,437 | ||||||
| Pool #A82053, 6.50%, 09/01/38 | 2,352,596 | 2,495,127 | ||||||
| Pool #A82676, 6.50%, 10/01/38 | 830,512 | 880,829 | ||||||
| Pool #A82735, 6.50%, 10/01/38 | 2,206,256 | 2,339,922 | ||||||
| Freddie Mac Non Gold Pool (a) | ||||||||
| Pool #1J1593, 5.74%, 04/01/37 | 6,292,568 | 6,579,408 | ||||||
| Pool #1J1594, 5.86%, 04/01/37 | 7,306,744 | 7,627,384 | ||||||
| Pool #1G1945, 5.73%, 05/01/37 | 168,211 | 175,737 | ||||||
| Ginnie Mae I Pool | ||||||||
| Pool #279461, 9.00%, 11/15/19 | 1,847 | 1,997 | ||||||
| Pool #376510, 7.00%, 05/15/24 | 5,048 | 5,400 | ||||||
| Pool #457801, 7.00%, 08/15/28 | 8,620 | 9,246 | ||||||
| Pool #486936, 6.50%, 02/15/29 | 5,765 | 6,152 | ||||||
| Pool #502969, 6.00%, 03/15/29 | 20,560 | 21,658 | ||||||
2009 Semiannual Report 27
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #487053, 7.00%, 03/15/29 | $ | 8,086 | $ | 8,687 | ||||
| Pool #781014, 6.00%, 04/15/29 | 17,158 | 17,997 | ||||||
| Pool #509099, 7.00%, 06/15/29 | 3,347 | 3,596 | ||||||
| Pool #470643, 7.00%, 07/15/29 | 13,268 | 14,254 | ||||||
| Pool #434505, 7.50%, 08/15/29 | 1,346 | 1,456 | ||||||
| Pool #416538, 7.00%, 10/15/29 | 1,240 | 1,332 | ||||||
| Pool #524269, 8.00%, 11/15/29 | 7,370 | 8,209 | ||||||
| Pool #781124, 7.00%, 12/15/29 | 31,612 | 33,936 | ||||||
| Pool #525561, 8.00%, 01/15/30 | 2,789 | 3,108 | ||||||
| Pool #507396, 7.50%, 09/15/30 | 71,745 | 77,412 | ||||||
| Pool #531352, 7.50%, 09/15/30 | 6,934 | 7,482 | ||||||
| Pool #536334, 7.50%, 10/15/30 | 844 | 910 | ||||||
| Pool #540659, 7.00%, 01/15/31 | 814 | 875 | ||||||
| Pool #486019, 7.50%, 01/15/31 | 3,194 | 3,447 | ||||||
| Pool #535388, 7.50%, 01/15/31 | 2,943 | 3,176 | ||||||
| Pool #537406, 7.50%, 02/15/31 | 1,919 | 2,070 | ||||||
| Pool #528589, 6.50%, 03/15/31 | 63,573 | 67,843 | ||||||
| Pool #508473, 7.50%, 04/15/31 | 10,938 | 11,804 | ||||||
| Pool #544470, 8.00%, 04/15/31 | 3,076 | 3,419 | ||||||
| Pool #781287, 7.00%, 05/15/31 | 17,944 | 19,284 | ||||||
| Pool #549742, 7.00%, 07/15/31 | 4,961 | 5,332 | ||||||
| Pool #781319, 7.00%, 07/15/31 | 5,690 | 6,115 | ||||||
| Pool #485879, 7.00%, 08/15/31 | 18,202 | 19,565 | ||||||
| Pool #572554, 6.50%, 09/15/31 | 127,308 | 135,859 | ||||||
| Pool #555125, 7.00%, 09/15/31 | 3,585 | 3,854 | ||||||
| Pool #781328, 7.00%, 09/15/31 | 16,776 | 18,027 | ||||||
| Pool #550991, 6.50%, 10/15/31 | 7,377 | 7,872 | ||||||
| Pool #571267, 7.00%, 10/15/31 | 2,233 | 2,400 | ||||||
| Pool #547948, 6.50%, 11/15/31 | 6,813 | 7,271 | ||||||
| Pool #574837, 7.50%, 11/15/31 | 2,307 | 2,490 | ||||||
| Pool #555171, 6.50%, 12/15/31 | 2,856 | 3,048 | ||||||
| Pool #781380, 7.50%, 12/15/31 | 5,071 | 5,367 | ||||||
| Pool #781481, 7.50%, 01/15/32 | 26,786 | 28,915 | ||||||
| Pool #580972, 6.50%, 02/15/32 | 4,942 | 5,268 | ||||||
| Pool #781401, 7.50%, 02/15/32 | 14,696 | 15,858 | ||||||
| Pool #781916, 6.50%, 03/15/32 | 333,587 | 356,323 | ||||||
| Pool #552474, 7.00%, 03/15/32 | 11,198 | 11,956 | ||||||
| Pool #781478, 7.50%, 03/15/32 | 8,803 | 9,608 | ||||||
| Pool #781429, 8.00%, 03/15/32 | 13,624 | 15,182 | ||||||
| Pool #781431, 7.00%, 04/15/32 | 63,278 | 67,976 | ||||||
| Pool #568715, 7.00%, 05/15/32 | 57,881 | 61,801 | ||||||
| Pool #552616, 7.00%, 06/15/32 | 56,845 | 60,695 | ||||||
| Pool #570022, 7.00%, 07/15/32 | 87,655 | 93,592 | ||||||
| Pool #583645, 8.00%, 07/15/32 | 9,082 | 10,094 | ||||||
| Pool #595077, 6.00%, 10/15/32 | 52,459 | 55,310 | ||||||
| Pool #596657, 7.00%, 10/15/32 | 4,928 | 5,262 | ||||||
| Pool #552903, 6.50%, 11/15/32 | 304,144 | 324,192 | ||||||
| Pool #552952, 6.00%, 12/15/32 | 43,042 | 45,381 | ||||||
| Pool #602102, 6.00%, 02/15/33 | 64,587 | 67,856 | ||||||
| Pool #588192, 6.00%, 02/15/33 | 24,853 | 26,111 | ||||||
| Pool #603520, 6.00%, 03/15/33 | 60,016 | 63,054 | ||||||
| Pool #553144, 5.50%, 04/15/33 | 190,664 | 199,001 | ||||||
28 Semiannual Report 2009
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Pool #604243, 6.00%, 04/15/33 | $ | 108,591 | $ | 114,086 | ||||
| Pool #631924, 6.00%, 05/15/33 | 102,162 | 107,332 | ||||||
| Pool #611526, 6.00%, 05/15/33 | 49,064 | 51,547 | ||||||
| Pool #553320, 6.00%, 06/15/33 | 97,804 | 102,753 | ||||||
| Pool #572733, 6.00%, 07/15/33 | 20,204 | 21,227 | ||||||
| Pool #573916, 6.00%, 11/15/33 | 87,203 | 91,615 | ||||||
| Pool #604788, 6.50%, 11/15/33 | 184,324 | 194,400 | ||||||
| Pool #781688, 6.00%, 12/15/33 | 200,876 | 210,034 | ||||||
| Pool #781690, 6.00%, 12/15/33 | 87,976 | 92,003 | ||||||
| Pool #604875, 6.00%, 12/15/33 | 211,490 | 222,192 | ||||||
| Pool #781699, 7.00%, 12/15/33 | 33,902 | 36,439 | ||||||
| Pool #621856, 6.00%, 01/15/34 | 82,324 | 86,362 | ||||||
| Pool #564799, 6.00%, 03/15/34 | 475,821 | 499,156 | ||||||
| Pool #630038, 6.50%, 08/15/34 | 196,135 | 206,735 | ||||||
| Pool #781804, 6.00%, 09/15/34 | 303,844 | 317,337 | ||||||
| Pool #781847, 6.00%, 12/15/34 | 264,608 | 276,342 | ||||||
| Pool #486921, 5.50%, 02/15/35 | 121,394 | 126,247 | ||||||
| Pool #781902, 6.00%, 02/15/35 | 257,369 | 268,772 | ||||||
| Pool #646799, 4.50%, 07/15/35 | 115,488 | 118,016 | ||||||
| Pool #645035, 5.00%, 07/15/35 | 107,041 | 111,106 | ||||||
| Pool #641779, 5.00%, 09/15/35 | 2,690,023 | 2,792,203 | ||||||
| Pool #649454, 5.50%, 09/15/35 | 1,103,615 | 1,149,632 | ||||||
| Pool #649510, 5.50%, 10/15/35 | 1,694,393 | 1,765,045 | ||||||
| Pool #649513, 5.50%, 10/15/35 | 2,322,751 | 2,419,603 | ||||||
| Pool #602461, 5.00%, 12/15/35 | 118,100 | 122,586 | ||||||
| Pool #648439, 5.00%, 01/15/36 | 249,118 | 258,386 | ||||||
| Pool #650712, 5.00%, 01/15/36 | 352,310 | 365,417 | ||||||
| Pool #652207, 5.50%, 03/15/36 | 2,009,224 | 2,090,178 | ||||||
| Pool #652539, 5.00%, 05/15/36 | 152,384 | 158,053 | ||||||
| Pool #655519, 5.00%, 05/15/36 | 308,468 | 319,944 | ||||||
| Pool #653598, 5.50%, 05/15/36 | 489,050 | 508,754 | ||||||
| Pool #606308, 5.50%, 05/15/36 | 328,211 | 341,435 | ||||||
| Pool #606314, 5.50%, 05/15/36 | 161,912 | 168,436 | ||||||
| Pool #655457, 6.00%, 05/15/36 | 141,156 | 147,461 | ||||||
| Pool #635306, 6.00%, 06/15/36 | 680,985 | 711,188 | ||||||
| Pool #656666, 6.00%, 06/15/36 | 617,066 | 644,434 | ||||||
| Pool #657912, 6.50%, 08/15/36 | 127,604 | 134,400 | ||||||
| Government National Mortgage Association TBA, 4.50%, 05/19/39 | 900,000 | 917,719 | ||||||
Total U.S. Government Mortgage Backed Agencies (cost $409,206,154) | 323,993,481 | |||||||
| U.S. Government Sponsored & Agency Obligations 29.3% | ||||||||
| Federal Home Loan Banks | ||||||||
| 3.63%, 10/18/13 | 3,500,000 | 3,663,891 | ||||||
| 5.25%, 06/05/17 | 4,900,000 | 5,346,356 | ||||||
| Federal Home Loan Mortgage Corp. | ||||||||
| 2.75%, 04/11/11 (c) | 13,765,000 | 14,147,309 | ||||||
| 3.88%, 06/29/11 | 3,160,000 | 3,326,930 | ||||||
| 5.13%, 07/15/12 | 4,234,000 | 4,668,142 | ||||||
| 4.88%, 11/15/13 | 5,292,000 | 5,859,943 | ||||||
| 5.00%, 12/14/18 | 1,225,000 | 1,159,612 | ||||||
| 6.75%, 09/15/29 | 388,000 | 493,083 | ||||||
| 6.25%, 07/15/32 | 865,000 | 1,052,834 | ||||||
| Federal National Mortgage Association | ||||||||
| 5.13%, 04/15/11 | 3,334,000 | 3,573,131 | ||||||
| 5.38%, 11/15/11 | 2,434,000 | 2,664,887 | ||||||
| 4.63%, 10/15/14 | 1,236,000 | 1,359,888 | ||||||
| 5.00%, 04/15/15 | 1,132,000 | 1,263,493 | ||||||
| 4.38%, 10/15/15 | 82,000 | 88,232 | ||||||
| 5.38%, 06/12/17 (c) | 5,505,000 | 6,201,113 | ||||||
| 6.25%, 05/15/29 (c) | 750,000 | 901,970 | ||||||
2009 Semiannual Report 29
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Sponsored & Agency Obligations (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Financing Corp. (FICO), 9.80%, 11/30/17 | $ | 12,000 | $ | 17,512 | ||||
| Tennessee Valley Authority | ||||||||
| Series E, 6.25%, 12/15/17 | 35,000 | 40,621 | ||||||
| 4.50%, 04/01/18 | 3,365,000 | 3,460,916 | ||||||
| U.S. Treasury Bonds | ||||||||
| 8.13%, 08/15/19 | 1,500,000 | 2,102,578 | ||||||
| 8.50%, 02/15/20 | 1,700,000 | 2,450,655 | ||||||
| 8.00%, 11/15/21 | 2,655,000 | 3,767,610 | ||||||
| 6.25%, 08/15/23 | 8,774,000 | 10,970,237 | ||||||
| 6.88%, 08/15/25 | 1,833,000 | 2,479,992 | ||||||
| 6.38%, 08/15/27 | 7,215,000 | 9,342,299 | ||||||
| 5.38%, 02/15/31 | 2,093,000 | 2,465,160 | ||||||
| 4.50%, 02/15/36 | 2,610,000 | 2,785,768 | ||||||
| 5.00%, 05/15/37 | 215,000 | 248,191 | ||||||
| 4.50%, 05/15/38 | 3,370,000 | 3,626,437 | ||||||
| 3.50%, 02/15/39 | 2,430,000 | 2,201,799 | ||||||
| U.S. Treasury Notes | ||||||||
| 2.13%, 04/30/10 | 10,000,000 | 10,163,280 | ||||||
| 2.00%, 09/30/10 | 4,000,000 | 4,075,780 | ||||||
| 1.25%, 11/30/10 | 5,125,000 | 5,163,642 | ||||||
| 4.25%, 01/15/11 | 5,500,000 | 5,827,206 | ||||||
| 0.88%, 03/31/11 (c) | 3,760,000 | 3,760,000 | ||||||
| 0.88%, 04/30/11 (c) | 4,420,000 | 4,416,199 | ||||||
| 4.50%, 09/30/11 | 16,030,000 | 17,304,882 | ||||||
| 4.63%, 02/29/12 | 7,134,000 | 7,793,895 | ||||||
| 4.75%, 05/31/12 | 3,535,000 | 3,892,367 | ||||||
| 4.25%, 09/30/12 | 2,585,000 | 2,820,680 | ||||||
| 3.88%, 10/31/12 (c) | 3,365,000 | 3,634,725 | ||||||
| 3.63%, 12/31/12 | 2,960,000 | 3,177,143 | ||||||
| 2.75%, 02/28/13 | 13,955,000 | 14,542,631 | ||||||
| 1.50%, 12/31/13 | 7,000,000 | 6,870,934 | ||||||
| 1.88%, 02/28/14 | 4,000,000 | 3,979,680 | ||||||
| 1.75%, 03/31/14 (c) | 3,345,000 | 3,307,369 | ||||||
| 4.00%, 02/15/15 | 1,400,000 | 1,531,577 | ||||||
| 4.13%, 05/15/15 | 1,533,000 | 1,691,091 | ||||||
| 4.88%, 08/15/16 | 1,833,000 | 2,097,066 | ||||||
| 4.63%, 02/15/17 | 3,060,000 | 3,445,848 | ||||||
| 4.50%, 05/15/17 | 3,595,000 | 4,012,919 | ||||||
| 8.75%, 05/15/17 | 2,469,000 | 3,465,281 | ||||||
| 4.25%, 11/15/17 | 13,020,000 | 14,280,297 | ||||||
| 4.00%, 08/15/18 | 4,425,000 | 4,747,193 | ||||||
| 2.75%, 02/15/19 (c) | 6,305,000 | 6,106,960 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $234,153,344) | 243,839,234 | |||||||
| Yankee Dollars 0.8% | ||||||||
| Principal Amount | Market Value | |||||||
Banks 0.1% | ||||||||
Inter-American Development Bank, 6.80%, 10/15/25 | 287,000 | 346,978 | ||||||
| National Australia Bank Ltd., Series A, 8.60%, 05/19/10 | 123,000 | 126,763 | ||||||
| Westpac Banking Corp., 4.63%, 06/01/18 | 103,000 | 94,414 | ||||||
| 568,155 | ||||||||
Chemicals 0.0% | ||||||||
| Potash Corp. of Saskatchewan, Inc. | ||||||||
| 7.75%, 05/31/11 | 29,000 | 30,998 | ||||||
| 4.88%, 03/01/13 | 115,000 | 116,569 | ||||||
| 147,567 | ||||||||
Diversified Financial Services 0.1% | ||||||||
| ConocoPhillips Canada Funding Co. I, 5.63%, 10/15/16 | 760,000 | 784,487 | ||||||
Electric 0.0% | ||||||||
| Hydro Quebec | ||||||||
| 8.40%, 01/15/22 | 153,000 | 190,355 | ||||||
| 8.88%, 03/01/26 | 109,000 | 149,732 | ||||||
| 340,087 | ||||||||
Insurance 0.0% | ||||||||
| Montpelier Re Holdings Ltd., 6.13%, 08/15/13 | 51,000 | 35,824 | ||||||
Mining 0.1% | ||||||||
| BHP Billiton Finance USA Ltd., 6.42%, 03/01/26 | 55,000 | 53,986 | ||||||
| Rio Tinto Alcan, Inc. | ||||||||
| 6.45%, 03/15/11 | 31,000 | 30,169 | ||||||
| 4.50%, 05/15/13 | 158,000 | 139,817 | ||||||
| Vale Inco Ltd., 7.75%, 05/15/12 | 123,000 | 125,388 | ||||||
| Xstrata Canada Corp., 6.20%, 06/15/35 | 123,000 | 79,176 | ||||||
| 428,536 | ||||||||
Oil & Gas 0.3% | ||||||||
| Burlington Resources Finance Co. | ||||||||
| 6.40%, 08/15/11 | 86,000 | 92,707 | ||||||
| 6.50%, 12/01/11 | 144,000 | 156,839 | ||||||
| Canadian Natural Resources Ltd., 4.90%, 12/01/14 | 195,000 | 183,716 | ||||||
| EnCana Corp. | ||||||||
| 4.75%, 10/15/13 | 236,000 | 233,751 | ||||||
| 6.50%, 08/15/34 | 250,000 | 233,790 | ||||||
| Nexen, Inc. | ||||||||
| 5.05%, 11/20/13 | 105,000 | 98,499 | ||||||
30 Semiannual Report 2009
Yankee Dollars (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Oil & Gas (continued) | ||||||||
| 5.20%, 03/10/15 | $ | 250,000 | $ | 214,386 | ||||
| 5.88%, 03/10/35 | 92,000 | 63,653 | ||||||
| 6.40%, 05/15/37 | 250,000 | 181,900 | ||||||
| Petro-Canada, 5.95%, 05/15/35 | 189,000 | 137,840 | ||||||
| StatoilHydro ASA, 6.80%, 01/15/28 | 425,000 | 433,906 | ||||||
| Talisman Energy, Inc. | ||||||||
| 7.25%, 10/15/27 | 92,000 | 75,077 | ||||||
| 5.75%, 05/15/35 | 250,000 | 155,049 | ||||||
| Weatherford International Ltd., 5.50%, 02/15/16 | 51,000 | 42,747 | ||||||
| 2,303,860 | ||||||||
Pharmaceuticals 0.0% | ||||||||
| AstraZeneca PLC, 6.45%, 09/15/37 | 140,000 | 150,691 | ||||||
Pipelines 0.1% | ||||||||
| Enbridge, Inc., 5.60%, 04/01/17 | 750,000 | 652,963 | ||||||
| TransCanada Pipelines Ltd., 5.85%, 03/15/36 | 500,000 | 430,640 | ||||||
| 1,083,603 | ||||||||
Transportation 0.1% | ||||||||
| Canadian National Railway Co. | ||||||||
| 4.40%, 03/15/13 | 515,000 | 522,630 | ||||||
| 6.90%, 07/15/28 | 168,000 | 184,024 | ||||||
| 6.20%, 06/01/36 | 164,000 | 161,831 | ||||||
| 868,485 | ||||||||
Total Yankee Dollars (cost $7,229,244) | 6,711,295 | |||||||
| Repurchase Agreements 19.8% | ||||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $49,944,618, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $50,943,255 | 49,944,368 | 49,944,368 | ||||||
| Morgan Stanley, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $20,859,949, collateralized by U.S. Government Agency Mortgages ranging 5.00% — 7.50%, maturing 07/01/19 — 11/01/47; total market value of $21,277,059 (f) | 20,859,862 | 20,859,862 | ||||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $94,330,471, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $96,216,680 | 94,330,078 | 94,330,078 | ||||||
Total Repurchase Agreements (cost $165,134,308) | 165,134,308 | |||||||
Total Investments (cost $970,480,177) (g) — 116.8% | 971,908,525 | |||||||
Liabilities in excess of other assets — (16.8)% | (140,050,887 | ) | ||||||
NET ASSETS — 100.0% | $ | 831,857,638 | ||||||
| (a) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. The maturity date represents the actual maturity date. | |
| (b) | Rule 144A, Section 4(2), or other security which is restricted as to resale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at April 30, 2009 was $4,990,439 which represents 0.60% of net assets. | |
| (c) | The security or a partial position of this security is on loan at April 30, 2009. The total value of securities on loan at April 30, 2009 was $36,161,649. | |
| (d) | 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 April 30, 2009. | |
| (e) | 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 April 30, 2009. | |
| (f) | The security was purchased with cash collateral held from securities on loan (See Note 2). The total value of this security as of April 30, 2009 was $20,859,862. |
2009 Semiannual Report 31
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Bond Index Fund (Continued)
| (g) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| (h) | Investment in affiliate |
| AG | Stock Corporation | |
| AS | Stock Corporation | |
| ASA | Stock Corporation | |
| FICO | Fair Isaac Corporation | |
| LLC | Limited Liability Company | |
| LP | Limited Partnership | |
| Ltd | Limited | |
| NA | National Association | |
| NV | Public Traded Company | |
| PCL | Public Company Limited | |
| PLC | Public Limited Company | |
| REIT | Real Estate Investment Trust | |
| SA | Stock Company | |
| TBA | To Be Announced | |
| UK | United Kingdom | |
| ULC | Unlimited Liability Company |
The accompanying notes are an integral part of these financial statements.
32 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide Bond | |||||
| Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $805,345,869)* | $ | 806,774,217 | |||
| Repurchase agreements, at value and cost | 165,134,308 | ||||
| Total Investments | 971,908,525 | ||||
| Interest receivable | 3,215,184 | ||||
| Receivable for capital shares issued | 3,332,181 | ||||
| Receivable for investments sold | 140,878,320 | ||||
| Prepaid expenses and other assets | 35,686 | ||||
| Total Assets | 1,119,369,896 | ||||
Liabilities: | |||||
| Cash overdraft | 504 | ||||
| Payable for investments purchased | 263,257,889 | ||||
| Distributions payable | 2,985,300 | ||||
| Payable for capital shares redeemed | 134,631 | ||||
| Payable upon return of securities loaned (Note 2) | 20,859,862 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 61,721 | ||||
| Fund administration fees | 87,788 | ||||
| Distribution fees | 22,672 | ||||
| Trustee fees | 5,035 | ||||
| Compliance program costs (Note 3) | 13,188 | ||||
| Custodian fees | 13,401 | ||||
| Printing fees | 248 | ||||
| Professional fees | 44,097 | ||||
| Other | 25,922 | ||||
| Total Liabilities | 287,512,258 | ||||
Net Assets | $ | 831,857,638 | |||
Represented by: | |||||
| Capital | $ | 838,831,114 | |||
| Accumulated undistributed net investment income | 1,934,424 | ||||
| Accumulated net realized losses from investment transactions | (10,336,248 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 1,428,348 | ||||
Net Assets | $ | 831,857,638 | |||
Net Assets: | |||||
| Class A Shares | $ | 108,648,264 | |||
| Class B Shares | 550,425 | ||||
| Class C Shares | 185,286 | ||||
| Institutional Class Shares | 722,473,663 | ||||
| Total | $ | 831,857,638 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 10,016,448 | ||||
| Class B Shares | 50,758 | ||||
| Class C Shares | 17,082 | ||||
| Institutional Class Shares | 66,677,477 | ||||
| Total | 76,761,765 | ||||
| * | Includes value of securities on loan of $36,161,649 (Note 2). |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 33
Statement of Assets and Liabilities(Continued)
| Nationwide Bond | |||||
| Index Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 10.85 | |||
| Class B Shares (a) | $ | 10.84 | |||
| Class C Shares (b) | $ | 10.85 | |||
| Institutional Class Shares | $ | 10.84 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 11.51 | |||
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.
34 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide Bond | |||||
| Index Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 20,865,445 | |||
| Income from securities lending (Note 2) | 1,972 | ||||
| Total Income | 20,867,417 | ||||
EXPENSES: | |||||
| Investment advisory fees | 944,023 | ||||
| Fund administration fees | 534,891 | ||||
| Distribution fees Class A | 128,087 | ||||
| Distribution fees Class B | 2,490 | ||||
| Distribution fees Class C | 854 | ||||
| Administrative services fees Class A | 54,500 | ||||
| Registration and filing fees | 29,861 | ||||
| Professional fees | 84,813 | ||||
| Printing fees | 25,743 | ||||
| Trustee fees | 33,224 | ||||
| Compliance program costs (Note 3) | 9,301 | ||||
| Custodian fees | 18,568 | ||||
| Other | 118,833 | ||||
| Total expenses before earnings credit and expenses reimbursed | 1,985,188 | ||||
| Earnings credit (Note 5) | (2,039 | ) | |||
| Expenses reimbursed by adviser | (425,158 | ) | |||
| Net Expenses | 1,557,991 | ||||
NET INVESTMENT INCOME | 19,309,426 | ||||
REALIZED/UNREALIZED GAINS FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 87,616 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 45,258,346 | ||||
| Net realized/ unrealized gains from investments | 45,345,962 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 64,655,388 | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 35
Statements of Changes in Net Assets
| Nationwide Bond Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 19,309,426 | $ | 46,636,692 | ||||||
| Net realized gains from investment transactions | 87,616 | 761,099 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | 45,258,346 | (42,918,960 | ) | |||||||
| Change in net assets resulting from operations | 64,655,388 | 4,478,831 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (2,108,935 | ) | (3,625,235 | ) | ||||||
| Class B | (8,601 | ) | (10,633 | ) | ||||||
| Class C | (2,965 | ) | (5,488 | ) | ||||||
| Institutional Class | (16,920,712 | ) | (42,907,686 | ) | ||||||
| Change in net assets from shareholder distributions | (19,041,213 | ) | (46,549,042 | ) | ||||||
| Change in net assets from capital transactions | (85,352,418 | ) | (200,685,497 | ) | ||||||
| Change in net assets | (39,738,243 | ) | (242,755,708 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 871,595,881 | 1,114,351,589 | ||||||||
| End of period | $ | 831,857,638 | $ | 871,595,881 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 1,934,424 | $ | 1,666,211 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 25,621,103 | $ | 58,816,595 | ||||||
| Dividends reinvested | 1,984,338 | 3,371,787 | ||||||||
| Cost of shares redeemed (a) | (18,217,257 | ) | (29,167,456 | ) | ||||||
| Total Class A | 9,388,184 | 33,020,926 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 201,046 | 182,200 | ||||||||
| Dividends reinvested | 3,653 | 7,899 | ||||||||
| Cost of shares redeemed (a) | (45,973 | ) | (53,959 | ) | ||||||
| Total Class B | 158,726 | 136,140 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 17,379 | 222,346 | ||||||||
| Dividends reinvested | 179 | 471 | ||||||||
| Cost of shares redeemed | (20 | ) | (117,132 | ) | ||||||
| Total Class C | 17,538 | 105,685 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 55,449,192 | 106,935,656 | ||||||||
| Dividends reinvested | 16,920,712 | 42,907,686 | ||||||||
| Cost of shares redeemed (a) | (167,286,770 | ) | (383,791,590 | ) | ||||||
| Total Institutional Class | (94,916,866 | ) | (233,948,248 | ) | ||||||
| Change in net assets from capital transactions: | $ | (85,352,418 | ) | $ | (200,685,497 | ) | ||||
| (a) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
36 Semiannual Report 2009
| Nationwide Bond Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,369,385 | 5,401,773 | ||||||||
| Reinvested | 183,521 | 311,445 | ||||||||
| Redeemed | (1,691,396 | ) | (2,675,279 | ) | ||||||
| Total Class A Shares | 861,510 | 3,037,939 | ||||||||
Class B Shares | ||||||||||
| Issued | 18,731 | 16,806 | ||||||||
| Reinvested | 338 | 727 | ||||||||
| Redeemed | (4,296 | ) | (4,917 | ) | ||||||
| Total Class B Shares | 14,773 | 12,616 | ||||||||
Class C Shares | ||||||||||
| Issued | 1,612 | 20,453 | ||||||||
| Reinvested | 16 | 44 | ||||||||
| Redeemed | (2 | ) | (10,847 | ) | ||||||
| Total Class C Shares | 1,626 | 9,650 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 5,136,040 | 9,838,186 | ||||||||
| Reinvested | 1,566,302 | 3,955,515 | ||||||||
| Redeemed | (15,310,861 | ) | (35,444,042 | ) | ||||||
| Total Institutional Class Shares | (8,608,519 | ) | (21,650,341 | ) | ||||||
| Total change in shares: | (7,730,610 | ) | (18,590,136 | ) | ||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 37
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| �� | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 10 | .33 | 0 | .22 | 0 | .52 | 0 | .74 | (0 | .22) | – | (0 | .22) | – | $ | 10 | .85 | 7 | .19% | $ | 108,648,264 | 0 | .68% | 4 | .17% | 0 | .78% | 51 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 10 | .32 | 0 | .19 | 0 | .52 | 0 | .71 | (0 | .19) | – | (0 | .19) | – | $ | 10 | .84 | 6 | .85% | $ | 550,425 | 1 | .32% | 3 | .51% | 1 | .42% | 51 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 10 | .33 | 0 | .19 | 0 | .52 | 0 | .71 | (0 | .19) | – | (0 | .19) | – | $ | 10 | .85 | 6 | .85% | $ | 185,286 | 1 | .32% | 3 | .53% | 1 | .42% | 51 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 10 | .31 | 0 | .24 | 0 | .53 | 0 | .77 | (0 | .24) | – | (0 | .24) | – | $ | 10 | .84 | 7 | .49% | $ | 722,473,663 | 0 | .32% | 4 | .54% | 0 | .42% | 51 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero
| (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 outstanding during the period. |
| (g) | For the period from March 29, 2006 (commencement of operations) through October 31, 2006. |
The accompanying notes are an integral part of these financial statements.
38 Semiannual Report 2009
| 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 semiannual period ended April 30, 2009, the Nationwide International Index Fund (Class A at NAV) registered −4.46% versus −2.35% for its benchmark, the MSCI EAFE Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of International Large-Cap Core Funds (consisting of 329 funds as of April 30, 2009) was −3.83% for the same time period.
Volatility in the financial markets can cause some variance between the performance of the Nationwide International Index Fund and its benchmark, the MSCI EAFE Index. In our opinion, this is mainly because the Fund uses a different pricing methodology than that of its benchmark. The Fund employs ”fair value” methodology to price its foreign securities, while the benchmark relies on the security closing prices on the primary foreign securities markets or exchanges. As a result, this difference can cause variance in the performance figures calculated for the Fund and benchmark.
What areas of investment provided the most positive relative returns for the Fund?
The sectors and countries represented in the MSCI EAFE Index posted mixed results for the Fund for the reporting period. Four of the 10 sectors within the benchmark index recorded positive returns. Materials led the way, advancing 8.99%, followed by industrials, with 7.13%, information technology, with 4.48%, and consumer discretionary, with 2.51%. The strongest performers for the Fund among individual stocks within the index were Boliden AB, Lee & Man Paper Manufacturing Ltd., Shun Tak Holdings Ltd., Paladin Energy Ltd., and Fortis SA/NV.
What areas of investment detracted from Fund performance?
By contrast, the health-care sector posted the weakest results in the MSCI EAFE Index for the Fund, registering −13.04% for the reporting period. Other laggards included utilities, with −9.38%, consumer staples, with −7.55%, and financials, with −6.51%. Among individual stocks within the benchmark index, Hutchison Telecommunications International Ltd., Allied Irish Banks, p.l.c., Hypo Real Estate Holding AG, Boart Longyear Ltd., and Bank of Ireland posted the lowest returns. Lagging the return of the benchmark index were the equity markets in Ireland, with −18.96%, Switzerland, with −10.34%, Austria, with −8.87%, and the United Kingdom, with −8.61%. Regarding country allocation, the leading regions during the reporting period were Hong Kong, with 20.03%, Sweden, with 19.20%, and Singapore, with 11.00%.
What is your outlook for the near term?
Increasingly, signs are pointing to a slowdown in the recession’s downside momentum. It is important to remember that this does not mean that the economy is set to recover. We do believe, however, that the period of peak weakness may be behind us. Reflation policy finally appears to be taking hold, and credit markets are beginning to thaw. Leading economic indicators also are starting to look better.
When the economy does begin to pick up, an event that we believe will occur in late 2009 or 2010, the recovery is likely to be subpar. Corporate earnings and financial markets most likely will continue to experience some volatility. Market breadth and volume have been strong since the current rally began, which suggests to us that upward momentum has increased to the point that it has become more difficult to derail the markets. In addition, signs of economic improvement, which provides a stronger fundamental base for the markets, have accompanied this current rally (unlike previous failed attempts).
We are not convinced that we are at the beginning of a new secular bull market, because a number of downside risks and a high degree of uncertainty remain. We do continue to believe, however, that stock prices will be higher one year from now than they are today.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Manager:
Debra L. Jelilian
Debra L. Jelilian
2008 Semiannual Report 39
| Fund Performance | Nationwide International Index Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | -4.46% | -43.29% | 0.12% | -2.74% | |||||||||||||
| w/SC3 | -10.01% | -46.55% | -1.05% | -3.36% | ||||||||||||||
| Class B | w/o SC2 | 4.56% | -43.72% | -0.54% | -3.40% | |||||||||||||
| w/SC4 | -8.78% | -46.17% | -0.83% | -3.40% | ||||||||||||||
Class C5 | w/o SC2 | -4.67% | -43.61% | -0.75% | -3.51% | |||||||||||||
| w/SC7 | -5.51% | -44.10% | -0.75% | -3.51% | ||||||||||||||
Class R26,8,9 | -4.33% | -43.28% | 0.11% | -2.75% | ||||||||||||||
Institutional Class6 | -4.35% | -43.10% | 0.49% | -2.38% | ||||||||||||||
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 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 R2 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 R2 shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R2 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 R2 shares would have been lower. | |
| 9 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||
| Expense | Expense | |||||
| Ratio* | Ratio* | |||||
| Class A | 0.82% | 0.77% | ||||
| Class B | 1.42% | 1.37% | ||||
| Class C | 1.42% | 1.37% | ||||
| Class R2 | 1.12% | 1.07% | ||||
| Institutional Class | 0.42% | 0.37% | ||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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® Index is an unmanaged free float-adjusted, market capitalization-weighted index that is designed to measure stocks of developed markets outside of the United States and Canada. The Index gives a broad look at how the stock prices of these companies have performed. |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents change in prices of a basket of goods and services purchased for consumption by urban households. |
40 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide International Index Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 955.38 | 3.75 | 0.77 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.96 | 3.88 | 0.77 | |||||||||||||||
| Class B | Actual | 1,000.00 | 952.56 | 6.63 | 1.37 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.00 | 6.88 | 1.37 | |||||||||||||||
| Class C | Actual | 1,000.00 | 953.29 | 6.64 | 1.37 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.00 | 6.88 | 1.37 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 956.72 | 4.08 | 0.87 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.63 | 4.22 | 0.87 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 956.52 | 1.79 | 0.37 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.96 | 1.86 | 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 to Securities and Exchange Act guidelines. | |
| b | Represents the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 41
| Portfolio Summary | Nationwide International Index Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 95 | .5% | ||
| Repurchase Agreements | 14 | .0% | ||
| Preferred Stocks | 0 | .3% | ||
| Exchange Traded Funds | 0 | .2% | ||
| Liabilities in excess of other assets | (10 | .0)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Commercial Banks | 12 | .4% | ||
| Oil, Gas & Consumable Fuels | 8 | .0% | ||
| Pharmaceuticals | 7 | .0% | ||
| Metals & Mining | 4 | .6% | ||
| Insurance | 4 | .3% | ||
| Diversified Telecommunication Services | 4 | .2% | ||
| Automobiles | 3 | .7% | ||
| Electric Utilities | 3 | .7% | ||
| Food Products | 3 | .3% | ||
| Chemicals | 2 | .9% | ||
| Other Industries* | 45 | .9% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| BP PLC | 1 | .7% | ||
| Nestle SA | 1 | .7% | ||
| HSBC Holdings PLC | 1 | .6% | ||
| Toyota Motor Corp | 1 | .4% | ||
| Total SA | 1 | .4% | ||
| Vodafone Group PLC | 1 | .2% | ||
| Novartis AG | 1 | .2% | ||
| Roche Holding AG | 1 | .1% | ||
| BHP Billiton Ltd. | 1 | .1% | ||
| Royal Dutch Shell PLC, A Shares | 1 | .0% | ||
| Other Holdings* | 86 | .6% | ||
| 100 | .0% | |||
| Top Countries | ||||
| Japan | 22 | .8% | ||
| United Kingdom | 18 | .5% | ||
| France | 9 | .9% | ||
| Germany | 7 | .9% | ||
| Switzerland | 7 | .6% | ||
| Australia | 6 | .4% | ||
| Spain | 4 | .2% | ||
| Netherlands | 3 | .4% | ||
| Italy | 3 | .4% | ||
| Hong Kong | 2 | .3% | ||
| Other Countries* | 13 | .6% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings, top industries, and top countries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
42 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide International Index Fund
| Common Stocks 95.5% | ||||||||
| Shares | Market Value | |||||||
AUSTRALIA 6.4% (a) | ||||||||
Air Freight & Logistics 0.0% | ||||||||
| Toll Holdings Ltd. | 115,009 | $ | 491,963 | |||||
Airline 0.0% | ||||||||
| Qantas Airways Ltd. | 179,424 | 258,764 | ||||||
Beverages 0.2% | ||||||||
Coca-Cola Amatil Ltd. | 100,322 | 665,762 | ||||||
| Foster’s Group Ltd. | 332,464 | 1,270,781 | ||||||
| Lion Nathan Ltd. | 41,062 | 349,508 | ||||||
| 2,286,051 | ||||||||
Biotechnology 0.2% | ||||||||
| CSL Ltd. | 103,677 | 2,582,741 | ||||||
Capital Markets 0.1% | ||||||||
| Macquarie Group Ltd. (b) | 48,716 | 1,178,140 | ||||||
| Perpetual Ltd. | 3,903 | 91,062 | ||||||
| 1,269,202 | ||||||||
Chemicals 0.1% | ||||||||
| Incitec Pivot Ltd. | 295,426 | 448,895 | ||||||
| Nufarm Ltd. | 15,435 | 148,148 | ||||||
| Orica Ltd. | 57,835 | 704,251 | ||||||
| 1,301,294 | ||||||||
Commercial Banks 1.7% | ||||||||
| Australia & New Zealand Banking Group Ltd. | 349,949 | 4,034,308 | ||||||
| Bendigo and Adelaide Bank Ltd. | 46,300 | 230,472 | ||||||
| Commonwealth Bank of Australia | 251,925 | 6,434,778 | ||||||
| National Australia Bank Ltd. | 320,247 | 4,787,736 | ||||||
| Westpac Banking Corp. | 477,833 | 6,659,461 | ||||||
| 22,146,755 | ||||||||
Commercial Services & Supplies 0.1% | ||||||||
| Brambles Ltd. | 240,105 | 1,030,007 | ||||||
Construction & Engineering 0.0% (b) | ||||||||
| Leighton Holdings Ltd. | 24,535 | 373,952 | ||||||
Construction Materials 0.0% (b) | ||||||||
| Boral Ltd. | 105,513 | 313,238 | ||||||
Containers & Packaging 0.0% | ||||||||
| Amcor Ltd. | 137,252 | 479,025 | ||||||
Diversified Financial Services 0.1% | ||||||||
| ASX Ltd. | 29,948 | 709,712 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Telstra Corp. Ltd. | 725,084 | 1,751,140 | ||||||
Electric Utility 0.0% | ||||||||
| SP AusNet | 170,043 | 123,361 | ||||||
Energy Equipment & Services 0.0% | ||||||||
| WorleyParsons Ltd. | 26,466 | 348,973 | ||||||
Food & Staples Retailing 0.6% | ||||||||
| Metcash Ltd. | 127,729 | 385,641 | ||||||
| Wesfarmers Ltd. | 173,243 | 2,845,352 | ||||||
| Wesfarmers Ltd. PPS | 26,759 | 439,619 | ||||||
| Woolworths Ltd. | 210,077 | 4,073,927 | ||||||
| 7,744,539 | ||||||||
Food Products 0.0% | ||||||||
| Goodman Fielder Ltd. | 150,467 | 125,298 | ||||||
Health Care Equipment & Supplies 0.0% | ||||||||
| Cochlear Ltd. | 10,363 | 373,683 | ||||||
Health Care Providers & Services 0.1% | ||||||||
| Sonic Healthcare Ltd. | 63,458 | 538,079 | ||||||
Hotels, Restaurants & Leisure 0.1% | ||||||||
| Aristocrat Leisure Ltd. | 58,082 | 152,067 | ||||||
| Crown Ltd. | 85,388 | 425,019 | ||||||
| TABCorp Holdings Ltd. | 83,193 | 449,032 | ||||||
| Tatts Group Ltd. | 159,428 | 319,576 | ||||||
| 1,345,694 | ||||||||
Industrial Conglomerate 0.0% | ||||||||
| CSR Ltd. | 202,298 | 196,803 | ||||||
Information Technology Services 0.0% | ||||||||
| Computershare Ltd. | 74,223 | 491,860 | ||||||
Insurance 0.5% | ||||||||
| AMP Ltd. | 341,457 | 1,284,903 | ||||||
| AXA Asia Pacific Holdings Ltd. | 156,492 | 442,824 | ||||||
| Insurance Australia Group Ltd. | 354,569 | 893,269 | ||||||
| QBE Insurance Group Ltd. | 169,617 | 2,681,547 | ||||||
| Suncorp-Metway Ltd. | 226,396 | 965,655 | ||||||
| 6,268,198 | ||||||||
Media 0.0% (b) | ||||||||
| Fairfax Media Ltd. | 350,367 | 301,258 | ||||||
Metals & Mining 1.5% | ||||||||
| Alumina Ltd. | 206,983 | 224,056 | ||||||
| BHP Billiton Ltd. | 573,909 | 13,859,510 | ||||||
| BlueScope Steel Ltd. | 145,340 | 245,790 | ||||||
| Fortescue Metals Group Ltd.* | 210,671 | 358,165 | ||||||
| Newcrest Mining Ltd. | 82,574 | 1,782,858 | ||||||
| OneSteel Ltd. | 194,446 | 313,792 | ||||||
| OZ Minerals Ltd. | 475,393 | 256,433 | ||||||
| Rio Tinto Ltd. | 49,085 | 2,284,937 | ||||||
| Sims Metal Management Ltd. | 25,717 | 373,382 | ||||||
| 19,698,923 | ||||||||
Multi-Utility 0.1% | ||||||||
| AGL Energy Ltd. | 74,018 | 814,091 | ||||||
Multiline Retail 0.0% | ||||||||
| Harvey Norman Holdings Ltd. | 57,604 | 124,348 | ||||||
Oil, Gas & Consumable Fuels 0.4% | ||||||||
| Caltex Australia Ltd. | 14,655 | 104,612 | ||||||
| Origin Energy Ltd. | 152,196 | 1,798,837 | ||||||
2009 Semiannual Report 43
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
AUSTRALIA (continued) | ||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| Santos Ltd. | 100,918 | $ | 1,189,092 | |||||
| Woodside Petroleum Ltd. | 84,193 | 2,314,000 | ||||||
| 5,406,541 | ||||||||
Real Estate Investment Trusts 0.4% | ||||||||
| CFS Retail Property Trust | 285,336 | 341,032 | ||||||
| Dexus Property Group | 758,601 | 401,052 | ||||||
| Goodman Group | 442,482 | 118,394 | ||||||
| GPT Group | 734,732 | 250,171 | ||||||
| Macquarie Office Trust | 190,927 | 26,932 | ||||||
| Mirvac Group | 197,476 | 149,773 | ||||||
| Stockland | 278,398 | 634,933 | ||||||
| Westfield Group | 346,140 | 2,700,944 | ||||||
| 4,623,231 | ||||||||
Real Estate Management & Development 0.0% | ||||||||
| Lend Lease Corp. Ltd. | 66,298 | 347,149 | ||||||
Textiles, Apparel & Luxury Goods 0.0% | ||||||||
| Billabong International Ltd. | 29,397 | 223,003 | ||||||
Transportation Infrastructure 0.1% | ||||||||
| Macquarie Airports | 112,290 | 147,960 | ||||||
| Macquarie Infrastructure Group | 402,168 | 393,943 | ||||||
| Transurban Group | 201,144 | 651,701 | ||||||
| 1,193,604 | ||||||||
| 85,282,480 | ||||||||
AUSTRIA 0.3% (a) | ||||||||
Building Products 0.0% (b) | ||||||||
| Wienerberger AG | 11,282 | 132,748 | ||||||
Commercial Banks 0.1% | ||||||||
| Erste Group Bank AG | 32,083 | 669,325 | ||||||
| Raiffeisen International Bank Holding AG (b) | 10,084 | 347,570 | ||||||
| 1,016,895 | ||||||||
Construction & Engineering 0.0% | ||||||||
| Strabag SE | 7,961 | 184,083 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Telekom Austria AG | 62,249 | 818,670 | ||||||
Electric Utility 0.0% | ||||||||
| Verbund — Oesterreichische Elektrizitaetswirtschafts AG, Class A | 14,094 | 578,645 | ||||||
Insurance 0.0% | ||||||||
| Vienna Insurance Group | 4,535 | 176,766 | ||||||
Metals & Mining 0.0% | ||||||||
| Voestalpine AG | 19,205 | 367,386 | ||||||
Oil, Gas & Consumable Fuels 0.1% | ||||||||
| OMV AG | 28,493 | 882,576 | ||||||
| 4,157,769 | ||||||||
BELGIUM 0.9% (a) | ||||||||
Beverages 0.3% (b) | ||||||||
| Anheuser-Busch Inbev NV | 125,437 | 3,839,296 | ||||||
Chemicals 0.1% | ||||||||
| Solvay SA | 10,665 | 914,030 | ||||||
| Umicore (b) | 22,740 | 445,595 | ||||||
| 1,359,625 | ||||||||
Commercial Banks 0.1% | ||||||||
| Dexia SA (b) | 90,713 | 439,889 | ||||||
| KBC Groep NV | 28,754 | 631,954 | ||||||
| 1,071,843 | ||||||||
Diversified Financial Services 0.2% | ||||||||
| Fortis | 388,375 | 954,520 | ||||||
| Groupe Bruxelles Lambert SA | 13,795 | 994,334 | ||||||
| Nationale A Portefeuille (b) | 6,148 | 296,294 | ||||||
| 2,245,148 | ||||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Belgacom SA | 30,230 | 878,578 | ||||||
Food & Staples Retailing 0.1% | ||||||||
| Colruyt SA | 2,862 | 650,416 | ||||||
| Delhaize Group | 17,863 | 1,204,576 | ||||||
| 1,854,992 | ||||||||
Pharmaceuticals 0.0% | ||||||||
| UCB SA* | 18,411 | 501,023 | ||||||
Wireless Telecommunication Services 0.0% | ||||||||
| Mobistar SA | 5,682 | 339,964 | ||||||
| 12,090,469 | ||||||||
BERMUDA 0.1% (a)(b) | ||||||||
Energy Equipment & Services 0.1% | ||||||||
| Seadrill Ltd. | 50,212 | 536,289 | ||||||
CHINA 0.0% (a) | ||||||||
Communications Equipment 0.0% | ||||||||
| Foxconn International Holdings Ltd.* | 363,604 | 224,085 | ||||||
DENMARK 0.9% (a) | ||||||||
Beverages 0.1% | ||||||||
| Carlsberg AS, Class B | 12,857 | 618,271 | ||||||
Chemicals 0.0% | ||||||||
| Novozymes AS, B Shares | 7,905 | 533,081 | ||||||
44 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
DENMARK (continued) | ||||||||
Commercial Banks 0.1% | ||||||||
| Danske Bank AS* | 77,720 | $ | 852,597 | |||||
| Jyske Bank AS* | 7,575 | 194,083 | ||||||
| 1,046,680 | ||||||||
Construction & Engineering 0.0% (b) | ||||||||
| FLSmidth & Co. AS* | 8,763 | 280,272 | ||||||
Electrical Equipment 0.2% | ||||||||
| Vestas Wind Systems AS* | 32,903 | 2,136,162 | ||||||
Food Products 0.0% | ||||||||
| Danisco AS | 9,657 | 316,324 | ||||||
Health Care Equipment & Supplies 0.0% | ||||||||
| Coloplast AS, Class B | 3,350 | 228,738 | ||||||
| William Demant Holding* | 2,534 | 119,864 | ||||||
| 348,602 | ||||||||
Insurance 0.1% | ||||||||
| Topdanmark AS* | 2,958 | 349,739 | ||||||
| TrygVesta AS | 4,699 | 257,226 | ||||||
| 606,965 | ||||||||
Marine 0.1% (b) | ||||||||
| A P Moller — Maersk AS, Class A | 94 | 537,073 | ||||||
| A P Moller — Maersk AS, Class B | 188 | 1,092,224 | ||||||
| 1,629,297 | ||||||||
Pharmaceuticals 0.3% | ||||||||
| Novo Nordisk AS, Class B | 79,186 | 3,768,407 | ||||||
Road & Rail 0.0% | ||||||||
| DSV AS | 36,375 | 410,859 | ||||||
| 11,694,920 | ||||||||
FINLAND 1.3% (a) | ||||||||
Auto Components 0.0% (b) | ||||||||
| Nokian Renkaat OYJ | 18,930 | 298,896 | ||||||
Communications Equipment 0.7% (b) | ||||||||
| Nokia OYJ | 653,155 | 9,275,592 | ||||||
Diversified Financial Services 0.0% (b) | ||||||||
| Pohjola Bank PLC | 25,227 | 186,688 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Elisa OYJ | 25,993 | 344,085 | ||||||
Electric Utility 0.1% (b) | ||||||||
| Fortum OYJ | 78,772 | 1,588,597 | ||||||
Food & Staples Retailing 0.0% (b) | ||||||||
| Kesko OYJ, B Shares | 13,136 | 341,521 | ||||||
Insurance 0.1% | ||||||||
| Sampo OYJ, A Shares | 75,006 | 1,398,991 | ||||||
Machinery 0.1% | ||||||||
| Kone OYJ, Class B | 27,728 | 757,306 | ||||||
| Metso OYJ | 23,256 | 356,069 | ||||||
| Wartsila OYJ (b) | 15,243 | 502,484 | ||||||
| 1,615,859 | ||||||||
Media 0.0% (b) | ||||||||
| Sanoma OYJ | 8,770 | 115,518 | ||||||
Metals & Mining 0.1% | ||||||||
| Outokumpu OYJ | 21,677 | 322,886 | ||||||
| Rautaruukki OYJ (b) | 15,996 | 297,584 | ||||||
| 620,470 | ||||||||
Oil, Gas & Consumable Fuels 0.0% (b) | ||||||||
| Neste Oil OYJ | 23,524 | 304,242 | ||||||
Paper & Forest Products 0.1% | ||||||||
| Stora Enso OYJ, R Shares* | 105,948 | 604,641 | ||||||
| UPM-Kymmene OYJ (b) | 94,008 | 841,133 | ||||||
| 1,445,774 | ||||||||
Pharmaceuticals 0.0% (b) | ||||||||
| Orion OYJ, Class B | 10,919 | 158,107 | ||||||
| 17,694,340 | ||||||||
FRANCE 9.9% | ||||||||
Aerospace & Defense 0.1% (a) | ||||||||
| Safran SA | 32,141 | 383,547 | ||||||
| Thales SA | 16,544 | 686,215 | ||||||
| Zodiac Aerospace | 9,030 | 263,685 | ||||||
| 1,333,447 | ||||||||
Airline 0.0% (a) | ||||||||
| Air France-KLM | 23,095 | 256,377 | ||||||
Auto Components 0.1% (a) | ||||||||
| Compagnie Generale des Etablissements Michelin, Class B | 25,898 | 1,325,467 | ||||||
| Valeo SA | 15,071 | 310,512 | ||||||
| 1,635,979 | ||||||||
Automobiles 0.1% (a) | ||||||||
| Peugeot SA | 27,390 | 632,410 | ||||||
| Renault SA | 32,269 | 1,034,533 | ||||||
| 1,666,943 | ||||||||
Beverages 0.2% (a)(b) | ||||||||
| Pernod-Ricard SA | 34,425 | 2,033,066 | ||||||
Building Products 0.2% (a) | ||||||||
| Cie de Saint-Gobain | 63,597 | 2,281,195 | ||||||
Chemicals 0.3% (a) | ||||||||
| Air Liquide SA | 42,550 | 3,461,686 | ||||||
Commercial Banks 1.1% (a) | ||||||||
| BNP Paribas | 140,673 | 7,404,396 | ||||||
| Credit Agricole SA | 153,076 | 2,237,854 | ||||||
2009 Semiannual Report 45
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
FRANCE (continued) | ||||||||
Commercial Banks (continued) | ||||||||
| Natixis | 174,338 | $ | 394,665 | |||||
| Societe Generale | 79,330 | 4,053,799 | ||||||
| 14,090,714 | ||||||||
Commercial Services & Supplies 0.0% (a) | ||||||||
| Societe BIC SA | 3,030 | 162,634 | ||||||
Communications Equipment 0.1% (a) | ||||||||
| Alcatel-Lucent* | 414,637 | 1,048,283 | ||||||
Construction & Engineering 0.4% (a) | ||||||||
| Bouygues SA (b) | 42,619 | 1,817,833 | ||||||
| Eiffage SA (b) | 5,829 | 300,706 | ||||||
| Vinci SA | 72,215 | 3,234,752 | ||||||
| 5,353,291 | ||||||||
Construction Materials 0.2% (a) | ||||||||
| Imerys SA | 3,868 | 160,041 | ||||||
| Lafarge SA (b) | 33,050 | 1,864,670 | ||||||
| 2,024,711 | ||||||||
Diversified Financial Services 0.0% (a) | ||||||||
| Eurazeo | 3,976 | 162,402 | ||||||
Diversified Telecommunication Services 0.5% (a) | ||||||||
| France Telecom SA | 313,665 | 6,962,267 | ||||||
| Iliad SA | 2,775 | 291,420 | ||||||
| 7,253,687 | ||||||||
Electric Utility 0.1% (a) | ||||||||
| EDF SA | 34,136 | 1,580,956 | ||||||
Electrical Equipment 0.4% (a) | ||||||||
| Alstom SA | 36,835 | 2,295,838 | ||||||
| Legrand SA | 14,732 | 295,690 | ||||||
| Schneider Electric SA* (b) | 38,230 | 2,908,784 | ||||||
| 5,500,312 | ||||||||
Energy Equipment & Services 0.1% (a) | ||||||||
| Cie Generale de Geophysique-Veritas* | 25,384 | 366,668 | ||||||
| Technip SA | 18,574 | 797,816 | ||||||
| 1,164,484 | ||||||||
Food & Staples Retailing 0.4% (a) | ||||||||
| Carrefour SA* (b) | 109,147 | 4,424,883 | ||||||
| Casino Guichard Perrachon SA | 7,886 | 491,876 | ||||||
| 4,916,759 | ||||||||
Food Products 0.3% (a)(b) | ||||||||
| Danone | 74,885 | 3,561,465 | ||||||
Health Care Equipment & Supplies 0.1% (a) | ||||||||
| BioMerieux | 2,212 | 165,661 | ||||||
| Cie Generale d’Optique Essilor International SA | 35,827 | 1,543,335 | ||||||
| 1,708,996 | ||||||||
Hotels, Restaurants & Leisure 0.2% (a) | ||||||||
| Accor SA | 33,978 | 1,437,437 | ||||||
| Sodexo | 16,943 | 813,776 | ||||||
| 2,251,213 | ||||||||
Industrial Conglomerate 0.0% (a)(b) | ||||||||
| Wendel | 4,358 | 159,794 | ||||||
Information Technology Services 0.1% (a) | ||||||||
| Atos Origin SA | 13,040 | 401,942 | ||||||
| Cap Gemini SA* (b) | 24,772 | 925,837 | ||||||
| 1,327,779 | ||||||||
Insurance 0.4% (a) | ||||||||
| AXA SA* | 265,589 | 4,461,639 | ||||||
| CNP Assurances | 6,231 | 491,209 | ||||||
| SCOR SE | 31,539 | 661,819 | ||||||
| 5,614,667 | ||||||||
Machinery 0.1% (a) | ||||||||
| Vallourec SA | 9,442 | 1,031,863 | ||||||
Media 0.6% (a) | ||||||||
| Eutelsat Communications | 14,841 | 321,312 | ||||||
| JC Decaux SA (b) | 6,800 | 96,686 | ||||||
| Lagardere SCA (b) | 21,292 | 668,313 | ||||||
M6-Metropole Television | 6,353 | 118,726 | ||||||
| PagesJaunes Groupe | 28,208 | 306,367 | ||||||
| Publicis Groupe | 23,988 | 733,074 | ||||||
| Societe Television Francaise 1 (b) | 25,405 | 237,881 | ||||||
| Vivendi | 200,872 | 5,400,405 | ||||||
| 7,882,764 | ||||||||
Metals & Mining 0.0% (a)(b) | ||||||||
| Eramet | 892 | 191,506 | ||||||
Multi-Utility 0.7% (a) | ||||||||
| GDF Suez | 187,110 | 6,718,854 | ||||||
| Suez Environnement SA* | 45,959 | 700,461 | ||||||
| Veolia Environnement | 67,167 | 1,839,656 | ||||||
| 9,258,971 | ||||||||
Multiline Retail 0.1% (a) | ||||||||
| PPR | 13,569 | 1,039,398 | ||||||
Office Electronics 0.0% (a) | ||||||||
| Neopost SA | 5,286 | 447,560 | ||||||
Oil, Gas & Consumable Fuels 1.4% (a) | ||||||||
| Total SA | 365,736 | 18,296,989 | ||||||
Personal Products 0.2% (a)(b) | ||||||||
| L’Oreal SA | 41,482 | 2,967,120 | ||||||
Pharmaceuticals 0.8% | ||||||||
| Ipsen SA (a) | 4,045 | 165,588 | ||||||
| Sanofi-Aventis SA (b) | 180,498 | 10,451,367 | ||||||
| 10,616,955 | ||||||||
46 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
FRANCE (continued) | ||||||||
Professional Services 0.0% (a)(b) | ||||||||
| Bureau Veritas SA | 6,265 | $ | 254,922 | |||||
| �� | ||||||||
Real Estate Investment Trusts 0.2% (a) | ||||||||
| Gecina SA | 2,687 | 147,036 | ||||||
| ICADE (b) | 3,600 | 278,448 | ||||||
| Klepierre (b) | 13,281 | 295,209 | ||||||
| Unibail-Rodamco (b) | 14,528 | 2,166,154 | ||||||
| 2,886,847 | ||||||||
Software 0.0% (a) | ||||||||
| Dassault Systemes SA | 11,079 | 454,670 | ||||||
Textiles, Apparel & Luxury Goods 0.4% (a) | ||||||||
| Christian Dior SA | 9,329 | 625,015 | ||||||
| Hermes International (b) | 9,462 | 1,254,699 | ||||||
| LVMH Moet Hennessy Louis Vuitton SA (b) | 42,117 | 3,179,280 | ||||||
| 5,058,994 | ||||||||
Transportation Infrastructure 0.0% (a) | ||||||||
| Aeroports de Paris | 4,976 | 286,457 | ||||||
| Societe Des Autoroutes Paris-Rhin-Rhone | 2,657 | 171,083 | ||||||
| 457,540 | ||||||||
| 131,396,939 | ||||||||
GERMANY 7.6% | ||||||||
Air Freight & Logistics 0.1% (a) | ||||||||
| Deutsche Post AG | 147,243 | 1,681,120 | ||||||
Airline 0.1% (a)(b) | ||||||||
| Deutsche Lufthansa AG | 41,495 | 521,589 | ||||||
Automobiles 0.9% (a) | ||||||||
| Bayerische Motoren Werke AG (b) | 58,730 | 2,028,419 | ||||||
| Daimler AG (b) | 154,930 | 5,523,719 | ||||||
| Volkswagen AG | 15,052 | 4,770,705 | ||||||
| 12,322,843 | ||||||||
Capital Markets 0.4% (a) | ||||||||
| Deutsche Bank AG | 92,991 | 4,903,282 | ||||||
Chemicals 0.7% (a) | ||||||||
| BASF SE* (b) | 158,436 | 5,992,696 | ||||||
| K+S AG | 26,350 | 1,576,183 | ||||||
| Linde AG (b) | 23,930 | 1,907,746 | ||||||
| Wacker Chemie AG | 2,681 | 272,211 | ||||||
| 9,748,836 | ||||||||
Commercial Banks 0.1% (a)(b) | ||||||||
| Commerzbank AG | 126,662 | 846,861 | ||||||
| Deutsche Postbank AG | 14,195 | 294,858 | ||||||
| 1,141,719 | ||||||||
Construction & Engineering 0.0% (a) | ||||||||
| Hochtief AG | 7,975 | 382,201 | ||||||
Construction Materials 0.0% (a) | ||||||||
| HeidelbergCement AG | 3,959 | 166,297 | ||||||
Diversified Financial Services 0.2% (a) | ||||||||
| Deutsche Boerse AG | 33,603 | 2,446,560 | ||||||
Diversified Telecommunication Services 0.5% (b) | ||||||||
| Deutsche Telekom AG | 481,397 | 5,874,811 | ||||||
Electric Utility 0.8% (a)(b) | ||||||||
| E.ON AG | 326,553 | 10,959,466 | ||||||
Electrical Equipment 0.1% (a)(b) | ||||||||
| Q-Cells SE* | 11,273 | 235,565 | ||||||
| Solarworld AG | 15,142 | 419,564 | ||||||
| 655,129 | ||||||||
Food & Staples Retailing 0.1% (a) | ||||||||
| Metro AG | 19,942 | 848,146 | ||||||
Food Products 0.0% (a) | ||||||||
| Suedzucker AG | 10,710 | 206,691 | ||||||
Health Care Equipment & Supplies 0.0% (a) | ||||||||
| Fresenius SE | 4,202 | 176,393 | ||||||
Health Care Providers & Services 0.1% (a) | ||||||||
| Celesio AG | 14,561 | 325,201 | ||||||
| Fresenius Medical Care AG & Co. KGaA (b) | 33,850 | 1,311,175 | ||||||
| 1,636,376 | ||||||||
Hotels, Restaurants & Leisure 0.0% (a)(b) | ||||||||
| TUI AG | 36,634 | 398,375 | ||||||
Household Products 0.0% (a) | ||||||||
| Henkel AG & Co. KGaA | 20,725 | 510,918 | ||||||
Industrial Conglomerate 0.8% (a) | ||||||||
| Siemens AG | 149,132 | 9,934,908 | ||||||
Insurance 0.9% | ||||||||
| Allianz SE (b) | 77,752 | 7,161,964 | ||||||
| Hannover Rueckversicherung AG (a) | 11,027 | 356,229 | ||||||
| Muenchener Rueckversicherungs AG (a)(b) | 35,514 | 4,839,146 | ||||||
| 12,357,339 | ||||||||
Internet Software & Services 0.0% (a)(b) | ||||||||
| United Internet AG | 19,578 | 200,467 | ||||||
Machinery 0.1% (a) | ||||||||
| GEA Group AG | 23,555 | 305,091 | ||||||
| MAN AG (b) | 18,880 | 1,157,875 | ||||||
| 1,462,966 | ||||||||
Metals & Mining 0.1% (a) | ||||||||
| Salzgitter AG | 6,887 | 485,815 | ||||||
| ThyssenKrupp AG | 63,927 | 1,366,578 | ||||||
| 1,852,393 | ||||||||
2009 Semiannual Report 47
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
GERMANY (continued) | ||||||||
Multi-Utility 0.4% (a)(b) | ||||||||
| RWE AG | 76,391 | $ | 5,502,003 | |||||
Personal Products 0.1% (a) | ||||||||
| Beiersdorf AG | 15,053 | 616,941 | ||||||
Pharmaceuticals 0.6% (a) | ||||||||
| Bayer AG* | 130,999 | 6,500,212 | ||||||
| Merck KGaA | 11,345 | 1,014,551 | ||||||
| 7,514,763 | ||||||||
Software 0.4% (a) | ||||||||
| SAP AG | 147,400 | 5,607,520 | ||||||
Textiles, Apparel & Luxury Goods 0.1% (a) | ||||||||
| Adidas AG (b) | 35,096 | 1,324,873 | ||||||
| Puma AG Rudolf Dassler Sport* | 1,380 | 295,139 | ||||||
| 1,620,012 | ||||||||
Transportation Infrastructure 0.0% (a) | ||||||||
| Fraport AG Frankfurt Airport Services Worldwide | 5,672 | 230,458 | ||||||
| Hamburger Hafen und Logistik AG | 3,912 | 139,130 | ||||||
| 369,588 | ||||||||
| 101,619,652 | ||||||||
GREECE 0.5% (a) | ||||||||
Beverages 0.0% | ||||||||
| Coca Cola Hellenic Bottling Co. SA | 24,575 | 392,943 | ||||||
Capital Markets 0.0% | ||||||||
| Marfin Investment Group SA | 106,920 | 458,389 | ||||||
Commercial Banks 0.3% | ||||||||
| Alpha Bank AE* | 67,699 | 659,313 | ||||||
| EFG Eurobank Ergasias SA | 55,164 | 432,973 | ||||||
| National Bank of Greece SA | 88,392 | 1,837,899 | ||||||
| Piraeus Bank SA | 55,042 | 504,626 | ||||||
| 3,434,811 | ||||||||
Construction Materials 0.0% | ||||||||
| Titan Cement Co. SA | 7,253 | 184,874 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Hellenic Telecommunications Organization SA | 49,113 | 747,615 | ||||||
Electric Utility 0.0% | ||||||||
| Public Power Corp. SA | 20,757 | 400,063 | ||||||
Hotels, Restaurants & Leisure 0.1% | ||||||||
| OPAP SA | 38,627 | 1,191,463 | ||||||
Oil, Gas & Consumable Fuels 0.0% | ||||||||
| Hellenic Petroleum SA | 14,352 | 139,067 | ||||||
| 6,949,225 | ||||||||
HONG KONG 2.3% | ||||||||
Airline 0.0% (a) | ||||||||
| Cathay Pacific Airways Ltd. | 203,000 | 234,820 | ||||||
Commercial Banks 0.3% (a) | ||||||||
| Bank of East Asia Ltd. | 283,550 | 673,046 | ||||||
| BOC Hong Kong Holdings Ltd. | 667,100 | 942,230 | ||||||
| Hang Seng Bank Ltd. | 136,200 | 1,509,651 | ||||||
| Wing Hang Bank Ltd. | 29,000 | 171,257 | ||||||
| 3,296,184 | ||||||||
Distributors 0.1% (a) | ||||||||
| Li & Fung Ltd. | 421,600 | 1,184,487 | ||||||
Diversified Financial Services 0.2% (a) | ||||||||
| Hong Kong Exchanges and Clearing Ltd. | 181,000 | 2,084,894 | ||||||
Electric Utilities 0.3% (a) | ||||||||
| Cheung Kong Infrastructure Holdings Ltd. | 77,500 | 298,968 | ||||||
| CLP Holdings Ltd. | 362,500 | 2,446,341 | ||||||
| HongKong Electric Holdings | 247,300 | 1,459,982 | ||||||
| 4,205,291 | ||||||||
Electronic Equipment & Instruments 0.0% (a) | ||||||||
| Kingboard Chemical Holdings Ltd. | 77,048 | 186,781 | ||||||
Hotels, Restaurants & Leisure 0.0% (a) | ||||||||
| Genting International PLC* (b) | 507,276 | 207,724 | ||||||
| Shangri-La Asia Ltd. | 184,000 | 270,557 | ||||||
| 478,281 | ||||||||
Industrial Conglomerates 0.2% (a) | ||||||||
| Hutchison Whampoa Ltd. | 378,500 | 2,229,424 | ||||||
| NWS Holdings Ltd. | 125,000 | 250,383 | ||||||
| 2,479,807 | ||||||||
Marine 0.0% (a) | ||||||||
| Orient Overseas International Ltd. | 34,438 | 98,648 | ||||||
| Pacific Basin Shipping Ltd. | 313,615 | 155,078 | ||||||
| 253,726 | ||||||||
Media 0.0% (a) | ||||||||
| Television Broadcasts Ltd. | 32,000 | 113,069 | ||||||
Multiline Retail 0.0% (a) | ||||||||
| Lifestyle International Holdings Ltd. | 69,193 | 66,110 | ||||||
Natural Gas Utility 0.1% (a) | ||||||||
| Hong Kong & China Gas Co. Ltd. | 714,336 | 1,328,628 | ||||||
Oil, Gas & Consumable Fuels 0.0% (a)(b) | ||||||||
| Mongolia Energy Co. Ltd.* | 482,460 | 137,351 | ||||||
Real Estate Investment Trusts 0.1% (a) | ||||||||
| Link REIT (The) | 390,051 | 758,267 | ||||||
Real Estate Management & Development 0.9% (a) | ||||||||
| Cheung Kong Holdings Ltd. | 247,000 | 2,548,035 | ||||||
| Chinese Estates Holdings Ltd. | 150,000 | 186,171 | ||||||
48 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
HONG KONG (continued) | ||||||||
Real Estate Management & Development (continued) | ||||||||
| Hang Lung Group Ltd. | 138,000 | $ | 505,429 | |||||
| Hang Lung Properties Ltd. | 376,000 | 1,056,105 | ||||||
| Henderson Land Development Co. Ltd. | 192,800 | 898,094 | ||||||
| Hopewell Holdings Ltd. | 90,569 | 233,156 | ||||||
| Hysan Development Co. Ltd. | 59,673 | 108,377 | ||||||
| Kerry Properties Ltd. | 110,500 | 333,681 | ||||||
| New World Development Ltd. | 434,679 | 568,551 | ||||||
| Sino Land Co. | 304,000 | 387,214 | ||||||
| Sun Hung Kai Properties Ltd. | 249,700 | 2,581,421 | ||||||
| Swire Pacific Ltd., Class A | 146,000 | 1,141,302 | ||||||
| Wharf Holdings Ltd. | 248,337 | 817,114 | ||||||
| Wheelock & Co. Ltd. | 142,000 | 305,702 | ||||||
| 11,670,352 | ||||||||
Road & Rail 0.0% (a) | ||||||||
| MTR Corp. | 241,714 | 611,845 | ||||||
Semiconductors & Semiconductor Equipment 0.0% (a)(b) | ||||||||
| ASM Pacific Technology Ltd. | 27,300 | 122,060 | ||||||
Specialty Retail 0.1% (a) | ||||||||
| Esprit Holdings Ltd. | 188,300 | 1,153,798 | ||||||
Telecommunications 0.0% | ||||||||
| Hutchison Telecommunications Hong Kong Holdings Ltd.* | 230,642 | 21,726 | ||||||
Textiles, Apparel & Luxury Goods 0.0% (a) | ||||||||
| Yue Yuen Industrial Holdings Ltd. | 114,500 | 254,478 | ||||||
Trading Companies & Distributors 0.0% (a) | ||||||||
| Noble Group Ltd. | 303,363 | 262,956 | ||||||
Transportation Infrastructure 0.0% (a) | ||||||||
| Hong Kong Aircraft Engineering Co. Ltd. | 6,800 | 63,766 | ||||||
Wireless Telecommunication Services 0.0% (a) | ||||||||
| Hutchison Telecommunications International Ltd. | 230,642 | 42,558 | ||||||
| 31,011,235 | ||||||||
IRELAND 0.4% (a) | ||||||||
Airline 0.0% | ||||||||
| Ryanair Holdings PLC* | 42,663 | 184,240 | ||||||
Commercial Banks 0.0% | ||||||||
| Anglo Irish Bank Corp. Ltd. | 122,522 | 0 | ||||||
Construction Materials 0.3% | ||||||||
| CRH PLC | 121,963 | 3,165,566 | ||||||
Food Products 0.0% | ||||||||
| Kerry Group PLC, Class A | 23,908 | 491,472 | ||||||
Pharmaceuticals 0.0% | ||||||||
| Elan Corp. PLC* | 76,306 | 454,009 | ||||||
Professional Services 0.1% | ||||||||
| Experian PLC | 176,431 | 1,161,378 | ||||||
| 5,456,665 | ||||||||
ITALY 3.4% | ||||||||
Aerospace & Defense 0.1% (a) | ||||||||
| Finmeccanica SpA | 72,119 | 1,015,792 | ||||||
Auto Components 0.0% (a) | ||||||||
| Pirelli & C SpA | 582,934 | 226,744 | ||||||
Automobiles 0.1% (a)(b) | ||||||||
| Fiat SpA* | 126,252 | 1,234,093 | ||||||
Capital Markets 0.1% (a) | ||||||||
| Mediobanca SpA | 87,980 | 1,014,910 | ||||||
Commercial Banks 1.0% (a) | ||||||||
| Banca Carige SpA | 126,043 | 461,627 | ||||||
| Banca Monte dei Paschi di Siena SpA | 419,969 | 671,905 | ||||||
| Banca Popolare di Milano Scarl | 73,951 | 429,875 | ||||||
| Banco Popolare SC | 114,950 | 755,056 | ||||||
| Intesa Sanpaolo SpA | 1,307,317 | 4,164,271 | ||||||
| Intesa Sanpaolo SpA — RSP | 152,066 | 337,659 | ||||||
| UniCredit SpA (b) | 2,083,566 | 5,072,625 | ||||||
| Unione di Banche Italiane SCPA | 107,687 | 1,484,590 | ||||||
| 13,377,608 | ||||||||
Construction Materials 0.0% (a) | ||||||||
| Italcementi SpA | 5,588 | 67,259 | ||||||
| Italcementi SpA — RSP | 15,698 | 99,493 | ||||||
| 166,752 | ||||||||
Diversified Financial Services 0.0% (b) | ||||||||
| EXOR SpA* | 12,779 | 163,473 | ||||||
Diversified Telecommunication Services 0.2% (a) | ||||||||
| Telecom Italia SpA | 1,722,456 | 2,177,695 | ||||||
| Telecom Italia SpA — RSP (b) | 1,029,882 | 919,917 | ||||||
| 3,097,612 | ||||||||
Electric Utilities 0.4% (a) | ||||||||
| Enel SpA | 742,191 | 4,022,399 | ||||||
| Terna Rete Elettrica Nazionale SpA | 216,986 | 696,699 | ||||||
| 4,719,098 | ||||||||
Electrical Equipment 0.0% (a) | ||||||||
| Prysmian SpA | 20,029 | 243,500 | ||||||
Energy Equipment & Services 0.1% (a) | ||||||||
| Saipem SpA | 47,078 | 1,006,100 | ||||||
Food Products 0.1% (a)(b) | ||||||||
| Parmalat SpA | 298,441 | 592,646 | ||||||
2009 Semiannual Report 49
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
ITALY (continued) | ||||||||
Hotels, Restaurants & Leisure 0.0% (a) | ||||||||
| Autogrill SpA | 25,378 | $ | 192,834 | |||||
| Lottomatica SpA* | 7,956 | 163,521 | ||||||
| 356,355 | ||||||||
Insurance 0.4% (a) | ||||||||
| Alleanza Assicurazioni SpA | 80,138 | 536,878 | ||||||
| Assicurazioni Generali SpA (b) | 180,407 | 3,669,950 | ||||||
| Fondiaria-Sai SpA | 14,812 | 246,285 | ||||||
| Mediolanum SpA (b) | 41,088 | 187,753 | ||||||
| Unipol Gruppo Finanziario SpA | 99,995 | 124,249 | ||||||
| 4,765,115 | ||||||||
Media 0.1% (a)(b) | ||||||||
| Mediaset SpA | 137,848 | 774,248 | ||||||
Multi-Utility 0.0% (a) | ||||||||
| A2A SpA | 198,697 | 326,544 | ||||||
| ACEA SpA | 14,531 | 180,219 | ||||||
| 506,763 | ||||||||
Natural Gas Utility 0.0% (a) | ||||||||
| Snam Rete Gas SpA | 140,055 | 554,588 | ||||||
Oil, Gas & Consumable Fuels 0.7% (a) | ||||||||
| ENI SpA | 446,576 | 9,581,623 | ||||||
| Saras SpA | 38,683 | 113,259 | ||||||
| 9,694,882 | ||||||||
Textiles, Apparel & Luxury Goods 0.0% (a)(b) | ||||||||
| Bulgari SpA | 23,800 | 121,186 | ||||||
| Luxottica Group SpA | 23,710 | 435,028 | ||||||
| 556,214 | ||||||||
Transportation Infrastructure 0.1% (a) | ||||||||
| Atlantia SpA | 45,677 | 805,661 | ||||||
| 44,872,154 | ||||||||
JAPAN 22.8% (a) | ||||||||
Air Freight & Logistics 0.1% | ||||||||
| Yamato Holdings Co. Ltd. | 68,000 | 757,967 | ||||||
Airlines 0.1% (b) | ||||||||
| All Nippon Airways Co. Ltd. | 107,000 | 390,777 | ||||||
| Japan Airlines Corp.* | 166,000 | 324,002 | ||||||
| 714,779 | ||||||||
Auto Components 0.5% | ||||||||
| Aisin Seiki Co. Ltd. | 32,100 | 659,352 | ||||||
| Bridgestone Corp. | 105,000 | 1,565,431 | ||||||
| Denso Corp. | 84,100 | 1,988,432 | ||||||
| NGK Spark Plug Co. Ltd. | 34,000 | 328,106 | ||||||
| NHK Spring Co. Ltd. | 38,000 | 175,696 | ||||||
| NOK Corp. | 14,600 | 169,988 | ||||||
| Stanley Electric Co. Ltd. | 23,500 | 333,786 | ||||||
| Sumitomo Rubber Industries, Inc. | 32,900 | 226,812 | ||||||
| Toyoda Gosei Co. Ltd. | 8,200 | 161,326 | ||||||
| Toyota Boshoku Corp. | 8,300 | 105,266 | ||||||
| Toyota Industries Corp. | 27,900 | 743,626 | ||||||
| 6,457,821 | ||||||||
Automobiles 2.5% | ||||||||
| Daihatsu Motor Co. Ltd. | 29,000 | 262,189 | ||||||
| Fuji Heavy Industries Ltd. | 100,000 | 402,786 | ||||||
| Honda Motor Co. Ltd. | 282,900 | 8,292,612 | ||||||
| Isuzu Motors Ltd. | 205,000 | 342,297 | ||||||
| Mazda Motor Corp. | 160,000 | 398,516 | ||||||
| Mitsubishi Motors Corp.* (b) | 596,000 | 913,506 | ||||||
| Nissan Motor Co. Ltd. | 388,800 | 2,029,748 | ||||||
| Suzuki Motor Corp. | 60,900 | 1,148,860 | ||||||
| Toyota Motor Corp. | 470,600 | 18,629,545 | ||||||
| Yamaha Motor Co. Ltd. | 37,700 | 398,608 | ||||||
| 32,818,667 | ||||||||
Beverages 0.2% | ||||||||
| Asahi Breweries Ltd. | 67,200 | 843,467 | ||||||
Coca-Cola West Co. Ltd. | 10,800 | 177,584 | ||||||
| Ito En Ltd. (b) | 9,700 | 118,798 | ||||||
| Kirin Holdings Co. Ltd. | 130,000 | 1,430,680 | ||||||
| Sapporo Holdings Ltd. | 52,000 | 216,687 | ||||||
| 2,787,216 | ||||||||
Building Products 0.3% | ||||||||
| Asahi Glass Co. Ltd. | 174,600 | 1,043,482 | ||||||
| Daikin Industries Ltd. | 45,800 | 1,232,398 | ||||||
| JS Group Corp. | 41,800 | 508,764 | ||||||
| Nippon Sheet Glass Co. Ltd. | 100,000 | 283,387 | ||||||
| TOTO Ltd. (b) | 53,200 | 265,393 | ||||||
| 3,333,424 | ||||||||
Capital Markets 0.3% | ||||||||
| Daiwa Securities Group, Inc. | 231,500 | 1,213,039 | ||||||
| JAFCO Co. Ltd. | 3,700 | 82,697 | ||||||
| Matsui Securities Co. Ltd. | 12,900 | 91,465 | ||||||
| Nomura Holdings, Inc. | 428,300 | 2,585,123 | ||||||
| SBI Holdings, Inc. | 3,018 | 360,641 | ||||||
| Shinko Securities Co. Ltd. | 58,700 | 136,898 | ||||||
| 4,469,863 | ||||||||
Chemicals 1.0% | ||||||||
| Asahi Kasei Corp. | 208,200 | 837,144 | ||||||
| Daicel Chemical Industries Ltd. | 30,000 | 126,078 | ||||||
| Denki Kagaku Kogyo K.K. | 48,000 | 106,559 | ||||||
| DIC Corp. | 69,000 | 112,693 | ||||||
| Hitachi Chemical Co. Ltd. | 12,600 | 169,073 | ||||||
| JSR Corp. | 31,300 | 381,449 | ||||||
| Kaneka Corp. | 43,500 | 252,302 | ||||||
| Kansai Paint Co. Ltd. | 30,000 | 160,246 | ||||||
| Kuraray Co. Ltd. | 63,500 | 546,476 | ||||||
| Mitsubishi Chemical Holdings Corp. | 213,500 | 813,295 | ||||||
50 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Chemicals (continued) | ||||||||
| Mitsubishi Gas Chemical Co., Inc. | 51,000 | $ | 238,375 | |||||
| Mitsubishi Rayon Co. Ltd. (b) | 110,100 | 229,263 | ||||||
| Mitsui Chemicals, Inc. | 116,100 | 346,804 | ||||||
| Nissan Chemical Industries Ltd. | 32,000 | 266,942 | ||||||
| Nitto Denko Corp. | 28,710 | 668,816 | ||||||
| Shin-Etsu Chemical Co. Ltd. | 70,800 | 3,441,776 | ||||||
| Showa Denko KK | 232,000 | 349,578 | ||||||
| Sumitomo Chemical Co. Ltd. | 262,200 | 1,032,229 | ||||||
| Taiyo Nippon Sanso Corp. | 37,000 | 259,098 | ||||||
| Teijin Ltd. | 166,800 | 427,791 | ||||||
| Tokuyama Corp. | 38,000 | 226,647 | ||||||
| Toray Industries, Inc. | 231,300 | 1,020,621 | ||||||
| Tosoh Corp. | 108,000 | 248,116 | ||||||
| UBE Industries Ltd. | 187,000 | 352,685 | ||||||
| 12,614,056 | ||||||||
Commercial Banks 2.1% | ||||||||
| 77 Bank Ltd. (The) | 45,300 | 232,185 | ||||||
| Aozora Bank Ltd.* | 97,000 | 122,902 | ||||||
| Bank of Kyoto Ltd. (The) | 51,000 | 409,439 | ||||||
| Bank of Yokohama Ltd. (The) | 214,000 | 907,648 | ||||||
| Chiba Bank Ltd. (The) | 132,300 | 656,273 | ||||||
| Chugoku Bank Ltd. (The) | 25,000 | 314,987 | ||||||
| Chuo Mitsui Trust Holdings, Inc. | 172,400 | 567,071 | ||||||
| Fukuoka Financial Group, Inc. | 128,600 | 396,371 | ||||||
| Gunma Bank Ltd. (The) | 75,000 | 373,774 | ||||||
| Hachijuni Bank Ltd. (The) | 60,000 | 353,569 | ||||||
| Hiroshima Bank Ltd. (The) | 65,000 | 246,482 | ||||||
| Hokuhoku Financial Group, Inc. | 168,900 | 298,007 | ||||||
| Iyo Bank Ltd. (The) | 40,000 | 399,129 | ||||||
| Joyo Bank Ltd. (The) | 103,000 | 475,946 | ||||||
| Mitsubishi UFJ Financial Group, Inc. | 1,880,184 | 10,258,236 | ||||||
| Mizuho Financial Group, Inc. (b) | 1,622,994 | 3,423,092 | ||||||
| Mizuho Trust & Banking Co. Ltd.* (b) | 230,000 | 239,165 | ||||||
| Nishi-Nippon City Bank Ltd. (The) | 102,000 | 205,668 | ||||||
| Resona Holdings, Inc. (b) | 87,800 | 1,180,010 | ||||||
| Sapporo Hokuyo Holdings, Inc.* | 34,000 | 98,257 | ||||||
| Seven Bank Ltd. | 81 | 191,328 | ||||||
| Shinsei Bank Ltd. | 261,000 | 341,499 | ||||||
| Shizuoka Bank Ltd. (The) | 105,000 | 946,206 | ||||||
| Sumitomo Mitsui Financial Group, Inc. | 114,247 | 3,963,024 | ||||||
| Sumitomo Trust & Banking Co. Ltd. (The) | 244,000 | 1,021,267 | ||||||
| Suruga Bank Ltd. | 38,000 | 325,870 | ||||||
| Yamaguchi Financial Group, Inc. | 32,000 | 309,231 | ||||||
| 28,256,636 | ||||||||
Commercial Services & Supplies 0.2% | ||||||||
| Dai Nippon Printing Co. Ltd. | 102,700 | 1,087,384 | ||||||
| Secom Co. Ltd. | 36,300 | 1,340,827 | ||||||
| Toppan Printing Co. Ltd. | 93,000 | 704,864 | ||||||
| 3,133,075 | ||||||||
Computers & Peripherals 0.4% | ||||||||
| Fujitsu Ltd. | 321,100 | 1,375,861 | ||||||
| Mitsumi Electric Co. Ltd. | 16,600 | 275,761 | ||||||
| NEC Corp.* | 335,000 | 1,113,992 | ||||||
| Seiko Epson Corp. | 20,200 | 285,349 | ||||||
| Toshiba Corp. (b) | 531,700 | 1,824,964 | ||||||
| 4,875,927 | ||||||||
Construction & Engineering 0.2% | ||||||||
| JGC Corp. | 39,000 | 511,480 | ||||||
| Kajima Corp. | 153,800 | 443,796 | ||||||
| Kinden Corp. | 25,000 | 208,622 | ||||||
| Obayashi Corp. | 107,500 | 527,901 | ||||||
| Shimizu Corp. | 95,000 | 455,127 | ||||||
| Taisei Corp. | 183,000 | 397,935 | ||||||
| 2,544,861 | ||||||||
Construction Materials 0.0% | ||||||||
| Taiheiyo Cement Corp. | 115,000 | 201,938 | ||||||
Consumer Finance 0.1% | ||||||||
| Acom Co. Ltd. (b) | 7,940 | 190,616 | ||||||
| Aeon Credit Service Co. Ltd. | 17,000 | 193,910 | ||||||
| Credit Saison Co. Ltd. | 30,500 | 342,709 | ||||||
| ORIX Corp. | 16,040 | 751,363 | ||||||
| Promise Co. Ltd. (b) | 11,000 | 145,381 | ||||||
| Takefuji Corp. (b) | 20,330 | 109,302 | ||||||
| 1,733,281 | ||||||||
Containers & Packaging 0.0% | ||||||||
| Toyo Seikan Kaisha Ltd. | 27,100 | 448,871 | ||||||
Distributors 0.0% | ||||||||
| Canon Marketing Japan, Inc. | 10,300 | 124,573 | ||||||
Diversified Consumer Services 0.0% | ||||||||
| Benesse Corp. | 13,200 | 505,259 | ||||||
Diversified Financial Services 0.0% | ||||||||
| Mitsubishi UFJ Lease & Finance Co. Ltd. | 7,890 | 182,535 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| Nippon Telegraph & Telephone Corp. | 85,600 | 3,226,105 | ||||||
Electric Utilities 1.2% | ||||||||
| Chubu Electric Power Co., Inc. | 113,900 | 2,504,608 | ||||||
| Chugoku Electric Power Co., Inc. (The) | 46,200 | 931,119 | ||||||
| Hokkaido Electric Power Co., Inc. | 33,900 | 623,886 | ||||||
| Hokuriku Electric Power Co. | 27,200 | 614,341 | ||||||
| Kansai Electric Power Co., Inc. (The) | 131,000 | 2,668,119 | ||||||
2009 Semiannual Report 51
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Electric Utilities (continued) | ||||||||
| Kyushu Electric Power Co., Inc. | 65,200 | $ | 1,345,829 | |||||
| Shikoku Electric Power Co., Inc. | 31,600 | 866,355 | ||||||
| Tohoku Electric Power Co., Inc. | 73,400 | 1,531,232 | ||||||
| Tokyo Electric Power Co., Inc. (The) | 208,700 | 4,889,900 | ||||||
| 15,975,389 | ||||||||
Electrical Equipment 0.3% | ||||||||
| Fuji Electric Holdings Co. Ltd. | 60,200 | 103,549 | ||||||
| Furukawa Electric Co. Ltd. | 117,300 | 351,114 | ||||||
| Mitsubishi Electric Corp. | 321,600 | 1,713,132 | ||||||
| Panasonic Electric Works Co. Ltd. | 63,284 | 515,050 | ||||||
| Sumitomo Electric Industries Ltd. | 125,200 | 1,219,939 | ||||||
| Ushio, Inc. | 14,700 | 190,771 | ||||||
| 4,093,555 | ||||||||
Electronic Equipment & Instruments 1.2% | ||||||||
| Alps Electric Co. Ltd. | 38,000 | 203,257 | ||||||
| Citizen Holdings Co. Ltd. | 65,500 | 299,725 | ||||||
| FUJIFILM Holdings Corp. | 84,200 | 2,166,758 | ||||||
| Hirose Electric Co. Ltd. | 5,600 | 583,416 | ||||||
| Hitachi High-Technologies Corp. | 7,800 | 109,190 | ||||||
| Hitachi Ltd. | 559,800 | 1,956,516 | ||||||
| HOYA Corp. | 71,200 | 1,235,443 | ||||||
| Ibiden Co. Ltd. | 23,600 | 690,265 | ||||||
| Keyence Corp. | 7,208 | 1,273,166 | ||||||
| Kyocera Corp. | 28,000 | 2,175,045 | ||||||
| Mabuchi Motor Co. Ltd. | 4,100 | 185,765 | ||||||
| Murata Manufacturing Co. Ltd. | 36,900 | 1,495,809 | ||||||
| Nidec Corp. | 18,900 | 1,050,286 | ||||||
| Nippon Electric Glass Co. Ltd. | 61,000 | 496,485 | ||||||
| Omron Corp. | 29,800 | 445,485 | ||||||
| Shimadzu Corp. | 38,000 | 232,329 | ||||||
| TDK Corp. | 21,500 | 980,704 | ||||||
| Yaskawa Electric Corp. (b) | 30,000 | 139,639 | ||||||
| Yokogawa Electric Corp. | 44,700 | 230,725 | ||||||
| 15,950,008 | ||||||||
Food & Staples Retailing 0.4% | ||||||||
| AEON Co. Ltd. | 106,000 | 830,129 | ||||||
| FamilyMart Co. Ltd. | 10,500 | 288,992 | ||||||
| Lawson, Inc. | 12,500 | 486,238 | ||||||
| Seven & I Holdings Co. Ltd. | 140,400 | 3,173,211 | ||||||
| UNY Co. Ltd. | 22,000 | 161,676 | ||||||
| 4,940,246 | ||||||||
Food Products 0.2% | ||||||||
| Ajinomoto Co., Inc. | 111,000 | 815,143 | ||||||
| Kikkoman Corp. | 32,000 | 285,297 | ||||||
| MEIJI Holdings Co. Ltd.* | 6,552 | 200,015 | ||||||
| Nippon Meat Packers, Inc. | 34,000 | 350,126 | ||||||
| Nisshin Seifun Group, Inc. | 28,900 | 297,619 | ||||||
| Nissin Foods Holdings Co. Ltd. | 11,700 | 318,034 | ||||||
| Toyo Suisan Kaisha Ltd. | 15,400 | 301,149 | ||||||
| Yakult Honsha Co. Ltd. | 14,900 | 256,593 | ||||||
| Yamazaki Baking Co. Ltd. | 15,100 | 154,803 | ||||||
| 2,978,779 | ||||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Olympus Corp. (b) | 40,000 | 655,627 | ||||||
| Terumo Corp. | 29,400 | 1,112,574 | ||||||
| 1,768,201 | ||||||||
Health Care Providers & Services 0.0% | ||||||||
| Alfresa Holdings Corp. | 3,900 | 151,311 | ||||||
| Mediceo Paltac Holdings Co. Ltd. | 18,200 | 184,173 | ||||||
| Suzuken Co. Ltd. | 9,800 | 242,162 | ||||||
| 577,646 | ||||||||
Hotels, Restaurants & Leisure 0.0% (b) | ||||||||
| Oriental Land Co. Ltd. | 9,100 | 573,782 | ||||||
Household Durables 1.0% | ||||||||
| Casio Computer Co. Ltd. | 42,100 | 322,653 | ||||||
| Haseko Corp.* | 245,000 | 154,403 | ||||||
| Makita Corp. | 21,000 | 485,024 | ||||||
| Panasonic Corp. | 306,502 | 4,492,565 | ||||||
| Sanyo Electric Co. Ltd.* (b) | 297,200 | 491,951 | ||||||
| Sekisui Chemical Co. Ltd. | 57,000 | 299,338 | ||||||
| Sekisui House Ltd. | 78,300 | 675,892 | ||||||
| Sharp Corp. (b) | 172,900 | 1,820,960 | ||||||
| Sony Corp. | 172,300 | 4,477,952 | ||||||
| 13,220,738 | ||||||||
Household Products 0.2% | ||||||||
| Kao Corp. | 88,200 | 1,649,959 | ||||||
| Unicharm Corp. | 7,300 | 508,132 | ||||||
| 2,158,091 | ||||||||
Independent Power Producers & Energy Traders 0.1% | ||||||||
| Electric Power Development Co. Ltd. | 22,000 | 641,743 | ||||||
Industrial Conglomerate 0.1% | ||||||||
| Hankyu Hanshin Holdings, Inc. | 198,000 | 925,561 | ||||||
Information Technology Services 0.1% | ||||||||
| Itochu Techno-Solutions Corp. | 2,900 | 65,960 | ||||||
| Nomura Research Institute Ltd. | 21,700 | 385,998 | ||||||
| NTT Data Corp. | 221 | 581,128 | ||||||
| Obic Co. Ltd. | 940 | 127,632 | ||||||
| Otsuka Corp. | 1,500 | 55,800 | ||||||
| 1,216,518 | ||||||||
Insurance 0.6% | ||||||||
| Aioi Insurance Co. Ltd. | 69,000 | 302,931 | ||||||
| Mitsui Sumitomo Insurance Group Holdings, Inc. | 64,980 | 1,773,245 | ||||||
| Nipponkoa Insurance Co. Ltd. | 114,000 | 618,262 | ||||||
| Nissay Dowa General Insurance Co. Ltd. | 15,000 | 64,697 | ||||||
52 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Insurance (continued) | ||||||||
| Sompo Japan Insurance, Inc. | 145,800 | $ | 878,848 | |||||
| Sony Financial Holdings, Inc. | 146 | 459,442 | ||||||
| T&D Holdings, Inc. | 39,500 | 1,181,190 | ||||||
| Tokio Marine Holdings, Inc. | 116,700 | 3,078,388 | ||||||
| 8,357,003 | ||||||||
Internet & Catalog Retail 0.1% (b) | ||||||||
| Dena Co. Ltd. | 53 | 189,989 | ||||||
| Rakuten, Inc. | 1,120 | 569,910 | ||||||
| 759,899 | ||||||||
Internet Software & Services 0.0% | ||||||||
| Yahoo! Japan Corp. | 2,467 | 615,973 | ||||||
Leisure Equipment & Products 0.2% | ||||||||
| Namco Bandai Holdings, Inc. | 36,749 | 365,736 | ||||||
| Nikon Corp. | 57,000 | 755,588 | ||||||
| Sankyo Co. Ltd. | 8,900 | 451,570 | ||||||
| Sega Sammy Holdings, Inc. | 31,900 | 288,826 | ||||||
| Shimano, Inc. | 9,100 | 269,275 | ||||||
| Yamaha Corp. | 31,600 | 361,153 | ||||||
| 2,492,148 | ||||||||
Machinery 1.0% | ||||||||
| Amada Co. Ltd. | 47,000 | 291,101 | ||||||
| Fanuc Ltd. | 33,000 | 2,381,836 | ||||||
| Hino Motors Ltd. | 61,000 | 175,493 | ||||||
| Hitachi Construction Machinery Co. Ltd. (b) | 19,200 | 262,381 | ||||||
| IHI Corp.* | 171,000 | 259,831 | ||||||
| Japan Steel Works Ltd. (The) | 62,000 | 671,632 | ||||||
| JTEKT Corp. | 25,300 | 244,070 | ||||||
| Kawasaki Heavy Industries Ltd. | 275,200 | 589,988 | ||||||
| Komatsu Ltd. | 154,800 | 1,931,728 | ||||||
| Kubota Corp. | 190,100 | 1,142,815 | ||||||
| Kurita Water Industries Ltd. | 19,900 | 484,848 | ||||||
| Minebea Co. Ltd. | 78,000 | 302,368 | ||||||
| Mitsubishi Heavy Industries Ltd. | 550,200 | 1,801,361 | ||||||
| Mitsui Engineering & Shipbuilding Co. Ltd. | 121,000 | 247,858 | ||||||
| NGK Insulators Ltd. | 44,000 | 674,932 | ||||||
| NSK Ltd. | 66,400 | 295,613 | ||||||
| NTN Corp. | 59,600 | 198,536 | ||||||
| SMC Corp. | 10,000 | 981,166 | ||||||
| Sumitomo Heavy Industries Ltd. | 92,000 | 382,663 | ||||||
| THK Co. Ltd. | 24,600 | 341,239 | ||||||
| 13,661,459 | ||||||||
Marine 0.2% | ||||||||
| Kawasaki Kisen Kaisha Ltd. | 102,000 | 384,396 | ||||||
| Mitsui OSK Lines Ltd. | 199,000 | 1,137,414 | ||||||
| Nippon Yusen KK | 193,400 | 792,389 | ||||||
| 2,314,199 | ||||||||
Media 0.1% | ||||||||
| Dentsu, Inc. (b) | 33,200 | 615,827 | ||||||
| Fuji Media Holdings, Inc. | 116 | 129,351 | ||||||
| Hakuhodo DY Holdings, Inc. | 2,450 | 112,420 | ||||||
| Jupiter Telecommunications Co. Ltd. | 333 | 234,368 | ||||||
| Toho Co. Ltd. | 14,900 | 196,847 | ||||||
| Tokyo Broadcasting System, HD | 4,800 | 67,462 | ||||||
| 1,356,275 | ||||||||
Metals & Mining 0.8% | ||||||||
| Daido Steel Co. Ltd. | 64,000 | 213,239 | ||||||
| Dowa Holdings Co. Ltd. | 59,800 | 237,805 | ||||||
| Hitachi Metals Ltd. | 25,000 | 197,190 | ||||||
| JFE Holdings, Inc. | 89,900 | 2,455,954 | ||||||
| Kobe Steel Ltd. | 444,000 | 730,251 | ||||||
| Maruichi Steel Tube Ltd. (b) | 5,600 | 113,284 | ||||||
| Mitsubishi Materials Corp. | 191,000 | 552,988 | ||||||
| Mitsui Mining & Smelting Co. Ltd. | 116,100 | 229,885 | ||||||
| Nippon Steel Corp. | 876,000 | 2,945,810 | ||||||
| Nisshin Steel Co. Ltd. | 127,900 | 246,821 | ||||||
| OSAKA Titanium Technologies Co. (b) | 4,500 | 136,090 | ||||||
| Sumitomo Metal Industries Ltd. | 664,000 | 1,555,757 | ||||||
| Sumitomo Metal Mining Co. Ltd. | 96,000 | 1,072,294 | ||||||
| Tokyo Steel Manufacturing Co. Ltd. | 13,300 | 136,250 | ||||||
| Yamato Kogyo Co. Ltd. | 4,700 | 106,777 | ||||||
| 10,930,395 | ||||||||
Multiline Retail 0.1% | ||||||||
| Isetan Mitsukoshi Holdings Ltd. | 59,978 | 504,293 | ||||||
| J. Front Retailing Co. Ltd. | 69,200 | 284,301 | ||||||
| Marui Group Co. Ltd. | 54,600 | 302,072 | ||||||
| Takashimaya Co. Ltd. | 57,000 | 355,901 | ||||||
| 1,446,567 | ||||||||
Natural Gas Utility 0.2% | ||||||||
| Osaka Gas Co. Ltd. | 335,900 | 1,064,658 | ||||||
| TOHO GAS Co. Ltd. | 73,000 | 310,821 | ||||||
| Tokyo Gas Co. Ltd. | 398,400 | 1,510,720 | ||||||
| 2,886,199 | ||||||||
Office Electronics 0.6% | ||||||||
| Brother Industries Ltd. | 37,500 | 304,855 | ||||||
| Canon, Inc. | 182,600 | 5,465,543 | ||||||
| Konica Minolta Holdings, Inc. | 84,400 | 697,332 | ||||||
| Ricoh Co. Ltd. | 116,200 | 1,436,974 | ||||||
| 7,904,704 | ||||||||
Oil, Gas & Consumable Fuels 0.3% | ||||||||
| Cosmo Oil Co. Ltd. | 71,000 | 201,808 | ||||||
| Idemitsu Kosan Co. Ltd. | 3,900 | 288,112 | ||||||
| INPEX Corp. | 136 | 865,633 | ||||||
| Japan Petroleum Exploration Co. | 5,100 | 201,351 | ||||||
2009 Semiannual Report 53
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| Nippon Mining Holdings, Inc. | 158,900 | $ | 721,652 | |||||
| Nippon Oil Corp. | 227,400 | 1,183,560 | ||||||
| Showa Shell Sekiyu KK | 38,700 | 340,486 | ||||||
| TonenGeneral Sekiyu KK | 41,000 | 390,033 | ||||||
| 4,192,635 | ||||||||
Paper & Forest Products 0.1% | ||||||||
| Nippon Paper Group, Inc. | 16,400 | 465,563 | ||||||
| OJI Paper Co. Ltd. | 149,000 | 641,598 | ||||||
| 1,107,161 | ||||||||
Personal Products 0.1% | ||||||||
| Shiseido Co. Ltd. | 56,700 | 995,651 | ||||||
Pharmaceuticals 1.2% | ||||||||
| Astellas Pharma, Inc. | 82,400 | 2,679,952 | ||||||
| Chugai Pharmaceutical Co. Ltd. | 39,200 | 728,169 | ||||||
| Daiichi Sankyo Co. Ltd. | 116,400 | 1,946,712 | ||||||
| Dainippon Sumitomo Pharma Co. Ltd. | 23,000 | 182,587 | ||||||
| Eisai Co. Ltd. | 43,600 | 1,170,268 | ||||||
| Hisamitsu Pharmaceutical Co., Inc. | 10,100 | 285,151 | ||||||
| Kyowa Hakko Kirin Co. Ltd. | 43,000 | 380,362 | ||||||
| Mitsubishi Tanabe Pharma Corp. | 38,000 | 362,786 | ||||||
| Ono Pharmaceutical Co. Ltd. | 16,100 | 683,210 | ||||||
| Santen Pharmaceutical Co. Ltd. | 13,300 | 375,700 | ||||||
| Shionogi & Co. Ltd. | 51,400 | 884,474 | ||||||
| Taisho Pharmaceutical Co. Ltd. | 19,900 | 364,164 | ||||||
| Takeda Pharmaceutical Co. Ltd. | 140,300 | 4,976,714 | ||||||
| Tsumura & Co. | 10,800 | 295,827 | ||||||
| 15,316,076 | ||||||||
Real Estate Investment Trusts 0.2% | ||||||||
| Japan Prime Realty Investment Corp. | 114 | 196,409 | ||||||
| Japan Real Estate Investment Corp. | 70 | 495,374 | ||||||
| Japan Retail Fund Investment Corp. | 77 | 269,330 | ||||||
| Nippon Building Fund, Inc. | 93 | 755,752 | ||||||
| Nomura Real Estate Office Fund, Inc. | 55 | 285,039 | ||||||
| 2,001,904 | ||||||||
Real Estate Management & Development 0.6% | ||||||||
| Aeon Mall Co. Ltd. | 8,000 | 104,745 | ||||||
| Daito Trust Construction Co. Ltd. | 13,300 | 554,698 | ||||||
| Daiwa House Industry Co. Ltd. | 89,000 | 777,437 | ||||||
| Leopalace21 Corp. | 20,575 | 150,748 | ||||||
| Mitsubishi Estate Co. Ltd. | 199,600 | 2,609,531 | ||||||
| Mitsui Fudosan Co. Ltd. | 144,700 | 1,821,051 | ||||||
| Nomura Real Estate Holdings, Inc. (b) | 5,100 | 83,504 | ||||||
| NTT Urban Development Corp. | 130 | 105,410 | ||||||
| Sumitomo Realty & Development Co. Ltd. | 65,000 | 779,853 | ||||||
| Tokyo Tatemono Co. Ltd. | 46,000 | 156,255 | ||||||
| Tokyu Land Corp. | 79,000 | 264,424 | ||||||
| 7,407,656 | ||||||||
Road & Rail 0.8% | ||||||||
| Central Japan Railway Co. | 270 | 1,600,704 | ||||||
| East Japan Railway Co. | 58,275 | 3,284,424 | ||||||
| Keihin Electric Express Railway Co. Ltd. | 63,000 | 483,826 | ||||||
| Keio Corp. | 86,400 | 490,606 | ||||||
| Keisei Electric Railway Co. Ltd. | 58,000 | 275,829 | ||||||
| Kintetsu Corp. (b) | 280,500 | 1,219,818 | ||||||
| Nippon Express Co. Ltd. | 143,500 | 511,866 | ||||||
| Odakyu Electric Railway Co. Ltd. | 103,100 | 839,846 | ||||||
| Tobu Railway Co. Ltd. (b) | 125,000 | 652,280 | ||||||
| Tokyu Corp. | 189,900 | 810,194 | ||||||
| West Japan Railway Co. | 294 | 901,782 | ||||||
| 11,071,175 | ||||||||
Semiconductors & Semiconductor Equipment 0.3% | ||||||||
| Advantest Corp. | 26,400 | 418,034 | ||||||
| Elpida Memory, Inc.* (b) | 19,000 | 203,527 | ||||||
| NEC Electronics Corp.* | 5,200 | 54,828 | ||||||
| Rohm Co. Ltd. | 17,600 | 1,079,602 | ||||||
| Shinko Electric Industries Co. Ltd. | 16,400 | 161,741 | ||||||
| Sumco Corp. | 22,800 | 335,050 | ||||||
| Tokyo Electron Ltd. | 29,800 | 1,363,018 | ||||||
| 3,615,800 | ||||||||
Software 0.4% | ||||||||
| Konami Corp. | 18,000 | 267,200 | ||||||
| Nintendo Co. Ltd. | 17,000 | 4,571,566 | ||||||
| Oracle Corp. Japan (b) | 4,600 | 162,802 | ||||||
| Square Enix Holdings Co. Ltd. | 11,700 | 210,589 | ||||||
| Trend Micro, Inc. | 18,000 | 548,226 | ||||||
| 5,760,383 | ||||||||
Specialty Retail 0.2% | ||||||||
| ABC-Mart, Inc. | 3,000 | 61,478 | ||||||
| Fast Retailing Co. Ltd. | 8,300 | 872,499 | ||||||
| Hikari Tsushin, Inc. | 3,200 | 65,504 | ||||||
| Nitori Co. Ltd. | 7,100 | 399,586 | ||||||
| Shimamura Co. Ltd. | 3,000 | 207,917 | ||||||
| USS Co. Ltd. | 5,000 | 226,626 | ||||||
| Yamada Denki Co. Ltd. | 15,050 | 693,367 | ||||||
| 2,526,977 | ||||||||
Textiles, Apparel & Luxury Goods 0.0% | ||||||||
| Asics Corp. | 19,000 | 123,539 | ||||||
| Nisshinbo Holdings, Inc. | 23,100 | 243,690 | ||||||
| Onward Holdings Co. Ltd. | 28,400 | 171,844 | ||||||
| 539,073 | ||||||||
54 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Tobacco 0.1% | ||||||||
| Japan Tobacco, Inc. | 746 | $ | 1,874,625 | |||||
Trading Companies & Distributors 0.9% | ||||||||
| ITOCHU Corp. | 261,000 | 1,399,777 | ||||||
| Marubeni Corp. | 286,000 | 1,039,889 | ||||||
| Mitsubishi Corp. | 230,400 | 3,546,449 | ||||||
| Mitsui & Co. Ltd. | 298,000 | 3,161,397 | ||||||
| Sojitz Corp. | 191,067 | 296,165 | ||||||
| Sumitomo Corp. | 194,000 | 1,689,022 | ||||||
| Toyota Tsusho Corp. | 31,500 | 372,081 | ||||||
| 11,504,780 | ||||||||
Transportation Infrastructure 0.0% | ||||||||
| Kamigumi Co. Ltd. | 33,000 | 211,999 | ||||||
| Mitsubishi Logistics Corp. | 23,400 | 223,197 | ||||||
| 435,196 | ||||||||
Wireless Telecommunication Services 0.6% | ||||||||
| KDDI Corp. | 501 | 2,253,464 | ||||||
| NTT DoCoMo, Inc. | 2,678 | 3,737,611 | ||||||
| Softbank Corp. | 130,000 | 2,057,015 | ||||||
| 8,048,090 | ||||||||
| 303,329,114 | ||||||||
LUXEMBOURG 0.5% (a) | ||||||||
Energy Equipment & Services 0.1% (b) | ||||||||
| Tenaris SA | 83,748 | 1,053,219 | ||||||
Media 0.1% | ||||||||
| SES SA | 48,464 | 874,722 | ||||||
Metals & Mining 0.3% | ||||||||
| ArcelorMittal | 150,000 | 3,513,098 | ||||||
Wireless Telecommunication Services 0.0% | ||||||||
| Millicom International Cellular SA — SDR | 11,290 | 555,696 | ||||||
| 5,996,735 | ||||||||
NETHERLANDS 3.4% (a) | ||||||||
Aerospace & Defense 0.1% (b) | ||||||||
| European Aeronautic Defence and Space Co. NV | 55,581 | 802,108 | ||||||
Air Freight & Logistics 0.1% | ||||||||
| TNT NV | 65,035 | 1,198,377 | ||||||
Beverages 0.1% | ||||||||
| Heineken Holding NV | 18,745 | 442,534 | ||||||
| Heineken NV (b) | 43,065 | 1,279,523 | ||||||
| 1,722,057 | ||||||||
Chemicals 0.2% | ||||||||
| Akzo Nobel NV (b) | 42,142 | 1,762,107 | ||||||
| Koninklijke DSM NV | 24,500 | 759,679 | ||||||
| 2,521,786 | ||||||||
Construction & Engineering 0.0% | ||||||||
| Koninklijke Boskalis Westminster NV | 9,630 | 224,500 | ||||||
Construction Materials 0.0% | ||||||||
| James Hardie Industries NV CDI | 65,970 | 220,457 | ||||||
Diversified Financial Services 0.2% | ||||||||
| ING Groep NV CVA | 337,251 | 3,073,629 | ||||||
| SNS Reaal | 20,410 | 114,868 | ||||||
| 3,188,497 | ||||||||
Diversified Telecommunication Services 0.3% | ||||||||
| Koninklijke KPN NV | 308,713 | 3,710,859 | ||||||
Energy Equipment & Services 0.1% | ||||||||
| Fugro NV CVA | 10,981 | 393,080 | ||||||
| SBM Offshore NV | 26,863 | 432,902 | ||||||
| 825,982 | ||||||||
Food & Staples Retailing 0.2% (b) | ||||||||
| Koninklijke Ahold NV | 211,461 | 2,316,428 | ||||||
Food Products 0.4% | ||||||||
| Unilever NV CVA | 280,552 | 5,550,523 | ||||||
Industrial Conglomerate 0.2% (b) | ||||||||
| Koninklijke Philips Electronics NV | 167,704 | 3,025,403 | ||||||
Insurance 0.1% | ||||||||
| Aegon NV | 246,488 | 1,239,543 | ||||||
Life Sciences Tools & Services 0.1% | ||||||||
| QIAGEN NV* | 33,687 | 554,612 | ||||||
Media 0.2% | ||||||||
| Reed Elsevier NV (b) | 109,258 | 1,200,200 | ||||||
| Wolters Kluwer NV | 48,785 | 802,660 | ||||||
| 2,002,860 | ||||||||
Oil, Gas & Consumable Fuels 1.0% | ||||||||
| Royal Dutch Shell PLC, A Shares | 599,634 | 13,800,888 | ||||||
Professional Services 0.0% | ||||||||
| Randstad Holding NV | 17,341 | 397,825 | ||||||
Real Estate Investment Trusts 0.0% | ||||||||
| Corio NV | 7,486 | 332,203 | ||||||
Semiconductors & Semiconductor Equipment 0.1% | ||||||||
| ASML Holding NV | 76,796 | 1,611,238 | ||||||
| 45,246,146 | ||||||||
NEW ZEALAND 0.1% (a) | ||||||||
Construction Materials 0.0% | ||||||||
| Fletcher Building Ltd. | 70,946 | 267,812 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Telecom Corp. of New Zealand Ltd. | 333,469 | 532,737 | ||||||
2009 Semiannual Report 55
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
NEW ZEALAND (continued) | ||||||||
Electric Utility 0.0% | ||||||||
| Contact Energy Ltd. | 33,428 | $ | 107,646 | |||||
Hotels, Restaurants & Leisure 0.0% | ||||||||
| Sky City Entertainment Group Ltd. | 106,546 | 164,815 | ||||||
Transportation Infrastructure 0.0% | ||||||||
| Auckland International Airport Ltd. | 125,454 | 117,577 | ||||||
| 1,190,587 | ||||||||
NORWAY 0.7% (a) | ||||||||
Chemicals 0.1% | ||||||||
| Yara International ASA | 33,814 | 906,895 | ||||||
Commercial Banks 0.1% | ||||||||
| DnB NOR ASA | 132,189 | 823,373 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Telenor ASA | 150,054 | 933,877 | ||||||
Electrical Equipment 0.0% (b) | ||||||||
| Renewable Energy Corp. AS* | 27,264 | 246,467 | ||||||
Energy Equipment & Services 0.0% | ||||||||
| Aker Solutions ASA | 31,880 | 192,882 | ||||||
Industrial Conglomerate 0.1% | ||||||||
| Orkla ASA | 146,991 | 1,053,086 | ||||||
Metals & Mining 0.0% (b) | ||||||||
| Norsk Hydro ASA | 124,403 | 548,926 | ||||||
Oil, Gas & Consumable Fuels 0.3% | ||||||||
| StatoilHydro ASA | 226,856 | 4,231,089 | ||||||
| 8,936,595 | ||||||||
PORTUGAL 0.3% (a) | ||||||||
Commercial Banks 0.1% | ||||||||
| Banco Comercial Portugues SA | 437,665 | 408,367 | ||||||
| Banco Espirito Santo SA | 90,710 | 443,898 | ||||||
| 852,265 | ||||||||
Construction Materials 0.0% (b) | ||||||||
| Cimpor Cimentos de Portugal SGPS SA | 41,410 | 246,984 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Portugal Telecom SGPS SA | 110,137 | 839,661 | ||||||
Electric Utility 0.1% (b) | ||||||||
| Energias de Portugal SA | 312,592 | 1,136,732 | ||||||
Food & Staples Retailing 0.0% | ||||||||
| Jeronimo Martins SGPS SA | 38,744 | 218,498 | ||||||
Media 0.0% | ||||||||
| Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA | 30,919 | 169,008 | ||||||
Oil, Gas & Consumable Fuels 0.0% | ||||||||
| Galp Energia SGPS SA, B Shares | 32,199 | 426,927 | ||||||
Transportation Infrastructure 0.0% | ||||||||
| BRISA | 42,254 | 287,939 | ||||||
| 4,178,014 | ||||||||
SINGAPORE 1.1% (a) | ||||||||
Aerospace & Defense 0.0% | ||||||||
| Singapore Technologies Engineering Ltd. | 232,000 | 400,477 | ||||||
Airline 0.1% | ||||||||
| Singapore Airlines Ltd. | 91,613 | 659,245 | ||||||
Commercial Banks 0.4% | ||||||||
| DBS Group Holdings Ltd. | 299,050 | 1,902,189 | ||||||
| Oversea-Chinese Banking Corp. Ltd. | 445,600 | 1,757,149 | ||||||
| United Overseas Bank Ltd. | 216,500 | 1,669,617 | ||||||
| 5,328,955 | ||||||||
Distributors 0.0% | ||||||||
| Jardine Cycle & Carriage Ltd. | 18,604 | 178,034 | ||||||
Diversified Financial Services 0.1% | ||||||||
| Singapore Exchange Ltd. | 153,900 | 645,901 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| Singapore Telecommunications Ltd. | 1,360,003 | 2,338,130 | ||||||
Food & Staples Retailing 0.0% | ||||||||
| Olam International Ltd. | 205,500 | 242,478 | ||||||
Food Products 0.1% | ||||||||
| Golden Agri-Resources Ltd. | 893,360 | 220,567 | ||||||
| Wilmar International Ltd. | 142,158 | 339,857 | ||||||
| 560,424 | ||||||||
Health Care Providers & Services 0.0% | ||||||||
| Parkway Holdings Ltd. | 210,646 | 170,456 | ||||||
Industrial Conglomerates 0.1% | ||||||||
| Fraser and Neave Ltd. | 167,369 | 294,345 | ||||||
| Keppel Corp. Ltd. | 229,000 | 914,738 | ||||||
| SembCorp Industries Ltd. | 138,243 | 253,027 | ||||||
| 1,462,110 | ||||||||
Machinery 0.0% | ||||||||
| Cosco Corp. Singapore Ltd. (b) | 164,066 | 111,912 | ||||||
| SembCorp Marine Ltd. | 151,200 | 212,985 | ||||||
| 324,897 | ||||||||
Marine 0.0% (b) | ||||||||
| Neptune Orient Lines Ltd. | 91,800 | 79,852 | ||||||
Media 0.0% (b) | ||||||||
| Singapore Press Holdings Ltd. | 278,500 | 544,751 | ||||||
56 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
SINGAPORE (continued) | ||||||||
Real Estate Investment Trusts 0.0% | ||||||||
| Ascendas Real Estate Investment Trust | 152,306 | $ | 136,902 | |||||
| CapitaMall Trust | 406,800 | 340,592 | ||||||
| 477,494 | ||||||||
Real Estate Management & Development 0.1% | ||||||||
| CapitaLand Ltd. | 455,345 | 840,430 | ||||||
| City Developments Ltd. | 94,099 | 407,468 | ||||||
| UOL Group Ltd.* | 134,120 | 199,827 | ||||||
| 1,447,725 | ||||||||
Road & Rail 0.0% | ||||||||
| ComfortDelgro Corp. Ltd. | 280,620 | 267,670 | ||||||
| 15,128,599 | ||||||||
SPAIN 4.2% | ||||||||
Airline 0.0% (a) | ||||||||
| Iberia Lineas Aereas de Espana | 92,810 | 173,232 | ||||||
Biotechnology 0.0% (a) | ||||||||
| Grifols SA | 22,670 | 397,745 | ||||||
Commercial Banks 1.7% | ||||||||
| Banco Bilbao Vizcaya Argentaria SA (a)(b) | 621,239 | 6,731,719 | ||||||
| Banco de Sabadell SA (a)(b) | 164,575 | 949,552 | ||||||
| Banco de Valencia SA (a) | 27,899 | 255,109 | ||||||
| Banco Popular Espanol SA (a)(b) | 141,429 | 1,165,469 | ||||||
| Banco Santander SA | 1,403,494 | 13,497,991 | ||||||
| Bankinter SA (a)(b) | 43,964 | 519,590 | ||||||
| 23,119,430 | ||||||||
Construction & Engineering 0.2% (a) | ||||||||
| ACS Actividades de Construccion y Servicios SA | 32,855 | 1,642,957 | ||||||
| Fomento de Construcciones y Contratas SA (b) | 7,593 | 271,310 | ||||||
| Grupo Ferrovial SA (b) | 10,827 | 313,913 | ||||||
| Sacyr Vallehermoso SA (b) | 13,066 | 134,297 | ||||||
| 2,362,477 | ||||||||
Diversified Financial Services 0.1% (a) | ||||||||
| Criteria CaixaCorp. SA | 143,853 | 540,282 | ||||||
Diversified Telecommunication Services 1.0% (a) | ||||||||
| Telefonica SA | 727,568 | 13,782,424 | ||||||
Electric Utilities 0.5% (a) | ||||||||
| Acciona SA | 5,173 | 528,800 | ||||||
| Iberdrola SA | 601,745 | 4,737,882 | ||||||
| Red Electrica Corp. SA | 19,439 | 813,443 | ||||||
| 6,080,125 | ||||||||
Electrical Equipment 0.1% (a) | ||||||||
| Gamesa Corp. Tecnologica SA | 33,007 | 622,891 | ||||||
Independent Power Producers & Energy Traders 0.1% (a) | ||||||||
| EDP Renovaveis SA* | 37,892 | 308,909 | ||||||
| Iberdrola Renovables SA* | 152,396 | 618,754 | ||||||
| 927,663 | ||||||||
Information Technology Services 0.0% (a)(b) | ||||||||
| Indra Sistemas SA | 19,239 | 380,453 | ||||||
Insurance 0.0% (a) | ||||||||
| Mapfre SA | 122,899 | 350,254 | ||||||
Machinery 0.0% (a)(b) | ||||||||
| Zardoya Otis SA | 18,684 | 382,902 | ||||||
Media 0.0% (a)(b) | ||||||||
| Gestevision Telecinco SA | 19,699 | 185,692 | ||||||
Metals & Mining 0.0% (a) | ||||||||
| Acerinox SA | 28,129 | 428,360 | ||||||
Natural Gas Utility 0.1% (a) | ||||||||
| Enagas | 32,516 | 565,230 | ||||||
| Gas Natural SDG SA (b) | 40,476 | 641,710 | ||||||
| 1,206,940 | ||||||||
Oil, Gas & Consumable Fuels 0.2% (a) | ||||||||
| Repsol YPF SA | 126,180 | 2,398,012 | ||||||
Specialty Retail 0.1% (a)(b) | ||||||||
| Inditex SA | 38,838 | 1,655,704 | ||||||
Transportation Infrastructure 0.1% (a)(b) | ||||||||
| Abertis Infraestructuras SA | 47,945 | 858,030 | ||||||
| Cintra Concesiones de Infraestructuras de Transporte SA* | 45,283 | 247,422 | ||||||
| 1,105,452 | ||||||||
| 56,100,038 | ||||||||
SWEDEN 2.2% (a) | ||||||||
Building Products 0.0% (b) | ||||||||
| Assa Abloy AB, Class B | 53,848 | 634,264 | ||||||
Commercial Banks 0.5% | ||||||||
| Nordea Bank AB (b) | 539,934 | 4,018,140 | ||||||
| Skandinaviska Enskilda Banken AB, Class A* | 255,872 | 993,802 | ||||||
| Svenska Handelsbanken AB, A Shares (b) | 77,082 | 1,343,448 | ||||||
| Swedbank AB, A Shares (b) | 63,000 | 354,937 | ||||||
| 6,710,327 | ||||||||
Commercial Services & Supplies 0.0% | ||||||||
| Securitas AB, B Shares* | 54,485 | 451,671 | ||||||
Communications Equipment 0.3% (b) | ||||||||
| Telefonaktiebolaget LM Ericsson, B Shares | 501,124 | 4,258,535 | ||||||
2009 Semiannual Report 57
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
SWEDEN (continued) | ||||||||
Construction & Engineering 0.1% | ||||||||
| Skanska AB, B Shares | 65,056 | $ | 702,032 | |||||
Diversified Financial Services 0.1% | ||||||||
| Investor AB, B Shares | 74,800 | 1,081,193 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| Tele2 AB, B Shares | 50,799 | 479,026 | ||||||
| TeliaSonera AB (b) | 363,999 | 1,708,689 | ||||||
| 2,187,715 | ||||||||
Health Care Equipment & Supplies 0.0% (b) | ||||||||
| Getinge AB, B Shares | 33,471 | 388,991 | ||||||
Household Durables 0.1% | ||||||||
| Electrolux AB, Series B* (b) | 44,322 | 499,647 | ||||||
| Husqvarna AB, B Shares* | 69,664 | 342,652 | ||||||
| 842,299 | ||||||||
Machinery 0.5% | ||||||||
| Alfa Laval AB (b) | 62,689 | 555,565 | ||||||
| Atlas Copco AB, A Shares (b) | 113,764 | 1,058,086 | ||||||
| Atlas Copco AB, B Shares (b) | 67,264 | 557,073 | ||||||
| Sandvik AB (b) | 171,048 | 1,123,896 | ||||||
| Scania AB, B Shares | 54,482 | 577,957 | ||||||
| SKF AB, B Shares (b) | 66,713 | 731,892 | ||||||
| Volvo AB, A Shares | 62,102 | 406,935 | ||||||
| Volvo AB, B Shares (b) | 179,682 | 1,172,137 | ||||||
| 6,183,541 | ||||||||
Media 0.0% (b) | ||||||||
| Modern Times Group AB, B Shares | 8,062 | 218,205 | ||||||
Metals & Mining 0.0% | ||||||||
| Ssab Svenskt Stal AB, Series A | 31,433 | 299,579 | ||||||
| Ssab Svenskt Stal AB, Series B | 8,917 | 80,005 | ||||||
| 379,584 | ||||||||
Oil, Gas & Consumable Fuels 0.0% | ||||||||
| Lundin Petroleum AB* | 32,091 | 208,782 | ||||||
Paper & Forest Products 0.1% (b) | ||||||||
| Holmen AB, Class B | 7,619 | 168,119 | ||||||
| Svenska Cellulosa AB, Class B | 93,791 | 904,749 | ||||||
| 1,072,868 | ||||||||
Specialty Retail 0.3% (b) | ||||||||
| Hennes & Mauritz AB, B Shares | 84,865 | 3,779,988 | ||||||
Tobacco 0.0% (b) | ||||||||
| Swedish Match AB | 45,828 | 654,285 | ||||||
| 29,754,280 | ||||||||
SWITZERLAND 7.6% | ||||||||
Biotechnology 0.1% (a) | ||||||||
| Actelion Ltd.* | 17,627 | 803,327 | ||||||
Building Products 0.1% (a) | ||||||||
| Geberit AG | 7,357 | 784,314 | ||||||
Capital Markets 1.2% | ||||||||
| Credit Suisse Group AG (b) | 188,675 | 7,375,026 | ||||||
| EFG International AG (a)(b) | 6,184 | 74,838 | ||||||
| Julius Baer Holding AG (a) | 37,746 | 1,238,626 | ||||||
| UBS AG* (a) | 517,921 | 7,116,600 | ||||||
| 15,805,090 | ||||||||
Chemicals 0.3% (a)(b) | ||||||||
| Givaudan SA | 1,218 | 771,374 | ||||||
| Syngenta AG | 17,144 | 3,661,204 | ||||||
| 4,432,578 | ||||||||
Computers & Peripherals 0.0% (a) | ||||||||
| Logitech International SA* | 29,434 | 393,483 | ||||||
Construction Materials 0.1% (a) | ||||||||
| Holcim Ltd. | 35,211 | 1,786,534 | ||||||
Diversified Financial Services 0.0% (a) | ||||||||
| Pargesa Holding SA | 4,636 | 293,348 | ||||||
Diversified Telecommunication Services 0.1% (a)(b) | ||||||||
| Swisscom AG | 4,289 | 1,118,729 | ||||||
Electric Utility 0.0% (a) | ||||||||
| BKW FMB Energie AG | 1,904 | 132,442 | ||||||
Electrical Equipment 0.4% (a) | ||||||||
| ABB Ltd. | 388,655 | 5,503,621 | ||||||
Food Products 1.7% (a) | ||||||||
| Aryzta AG* | 14,400 | 417,200 | ||||||
| Lindt & Spruengli AG | 100 | 160,104 | ||||||
| Lindt & Spruengli AG (b) | 16 | 306,212 | ||||||
| Nestle SA | 675,175 | 22,015,250 | ||||||
| 22,898,766 | ||||||||
Health Care Equipment & Supplies 0.1% (a) | ||||||||
| Nobel Biocare Holding AG (b) | 21,384 | 436,072 | ||||||
| Sonova Holding AG | 8,314 | 540,344 | ||||||
| Straumann Holding AG (b) | 1,000 | 182,920 | ||||||
| 1,159,336 | ||||||||
Insurance 0.5% (a) | ||||||||
| Baloise Holding AG | 9,033 | 663,331 | ||||||
| Swiss Life Holding AG | 6,323 | 489,331 | ||||||
| Swiss Reinsurance | 59,706 | 1,417,682 | ||||||
| Zurich Financial Services AG | 25,126 | 4,670,610 | ||||||
| 7,240,954 | ||||||||
Life Sciences Tools & Services 0.1% (a)(b) | ||||||||
| Lonza Group AG* | 8,502 | 780,197 | ||||||
Machinery 0.1% (a) | ||||||||
| Schindler Holding AG | 8,332 | 436,927 | ||||||
| Sulzer AG | 5,209 | 283,198 | ||||||
| 720,125 | ||||||||
Marine 0.1% (a) | ||||||||
| Kuehne + Nagel International AG | 9,774 | 734,816 | ||||||
58 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
SWITZERLAND (continued) | ||||||||
Pharmaceuticals 2.3% (a) | ||||||||
| Novartis AG | 419,543 | $ | 15,883,866 | |||||
| Roche Holding AG | 123,886 | 15,627,329 | ||||||
| 31,511,195 | ||||||||
Professional Services 0.1% (a) | ||||||||
| Adecco SA | 22,125 | 871,075 | ||||||
| SGS SA (b) | 841 | 943,401 | ||||||
| 1,814,476 | ||||||||
Semiconductors & Semiconductor Equipment 0.1% (a) | ||||||||
| STMicroelectronics NV | 123,089 | 811,091 | ||||||
Textiles, Apparel & Luxury Goods 0.2% (a) | ||||||||
| Compagnie Financiere Richemont SA | 92,884 | 1,663,283 | ||||||
| Swatch Group AG (The) BRS | 5,557 | 773,403 | ||||||
| Swatch Group AG (The) REG | 6,449 | 185,008 | ||||||
| 2,621,694 | ||||||||
| 101,346,116 | ||||||||
UNITED KINGDOM 18.5% (a) | ||||||||
Aerospace & Defense 0.4% | ||||||||
| BAE Systems PLC | 602,690 | 3,169,321 | ||||||
| Cobham PLC | 198,852 | 514,996 | ||||||
| Meggitt PLC | 134,757 | 357,004 | ||||||
| Rolls-Royce Group PLC | 314,958 | 1,560,881 | ||||||
| 5,602,202 | ||||||||
Airline 0.0% | ||||||||
| British Airways PLC | 90,070 | 194,976 | ||||||
Beverages 0.6% | ||||||||
| Diageo PLC | 426,595 | 5,087,608 | ||||||
| SABMiller PLC | 153,423 | 2,571,794 | ||||||
| 7,659,402 | ||||||||
Capital Markets 0.2% | ||||||||
| 3i Group PLC | 67,961 | 319,570 | ||||||
| ICAP PLC | 84,272 | 460,520 | ||||||
| Investec PLC | 51,267 | 245,487 | ||||||
| Man Group PLC | 291,126 | 1,075,745 | ||||||
| 2,101,322 | ||||||||
Chemicals 0.1% | ||||||||
| Johnson Matthey PLC | 36,641 | 646,830 | ||||||
Commercial Banks 2.7% | ||||||||
| Barclays PLC | 1,428,724 | 5,798,959 | ||||||
| HSBC Holdings PLC | 2,917,851 | 20,743,751 | ||||||
| Lloyds Banking Group PLC | 1,678,995 | 2,722,493 | ||||||
| Royal Bank of Scotland Group PLC* | 2,927,891 | 1,786,352 | ||||||
| Standard Chartered PLC | 322,734 | 4,990,923 | ||||||
| 36,042,478 | ||||||||
Commercial Services & Supplies 0.1% | ||||||||
| G4S PLC | 209,444 | 580,593 | ||||||
| Serco Group PLC | 80,793 | 435,756 | ||||||
| 1,016,349 | ||||||||
Construction & Engineering 0.0% | ||||||||
| Balfour Beatty PLC | 82,042 | 405,009 | ||||||
Containers & Packaging 0.0% | ||||||||
| Rexam PLC | 108,877 | 504,167 | ||||||
Diversified Financial Services 0.0% | ||||||||
| London Stock Exchange Group PLC | 30,384 | 332,877 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| BT Group PLC | 1,281,121 | 1,764,994 | ||||||
| Cable & Wireless PLC | 430,268 | 947,248 | ||||||
| 2,712,242 | ||||||||
Electric Utility 0.2% | ||||||||
| Scottish & Southern Energy PLC | 156,686 | 2,552,626 | ||||||
Energy Equipment & Services 0.0% | ||||||||
| AMEC PLC | 54,746 | 498,193 | ||||||
Food & Staples Retailing 0.7% | ||||||||
| J Sainsbury PLC | 170,226 | 824,664 | ||||||
| Tesco PLC | 1,339,651 | 6,635,676 | ||||||
| WM Morrison Supermarkets PLC | 391,946 | 1,419,312 | ||||||
| 8,879,652 | ||||||||
Food Products 0.5% | ||||||||
| Associated British Foods PLC | 58,885 | 621,438 | ||||||
| Cadbury PLC | 233,097 | 1,742,405 | ||||||
| Tate & Lyle PLC | 81,699 | 331,033 | ||||||
| Unilever PLC | 218,983 | 4,262,624 | ||||||
| 6,957,500 | ||||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Smith & Nephew PLC | 152,125 | 1,069,966 | ||||||
Hotels, Restaurants & Leisure 0.3% | ||||||||
| Carnival PLC | 27,925 | 767,126 | ||||||
| Compass Group PLC | 316,835 | 1,506,079 | ||||||
| Intercontinental Hotels Group PLC | 45,489 | 432,051 | ||||||
| Ladbrokes PLC | 119,578 | 412,928 | ||||||
| Thomas Cook Group PLC | 76,717 | 296,054 | ||||||
| TUI Travel PLC | 93,102 | 346,919 | ||||||
| Whitbread PLC | 28,034 | 387,657 | ||||||
| 4,148,814 | ||||||||
Household Durables 0.0% | ||||||||
| Berkeley Group Holdings PLC* | 9,117 | 131,069 | ||||||
Household Products 0.3% | ||||||||
| Reckitt Benckiser Group PLC | 102,111 | 4,007,143 | ||||||
2009 Semiannual Report 59
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
UNITED KINGDOM (continued) | ||||||||
Independent Power Producers & Energy Traders 0.1% | ||||||||
| Drax Group PLC | 55,054 | $ | 417,366 | |||||
| International Power PLC | 249,972 | 913,235 | ||||||
| 1,330,601 | ||||||||
Industrial Conglomerates 0.1% | ||||||||
| Smiths Group PLC | 64,267 | 690,414 | ||||||
| Tomkins PLC | 151,866 | 387,586 | ||||||
| 1,078,000 | ||||||||
Information Technology Services 0.0% | ||||||||
| Logica PLC | 236,462 | 266,669 | ||||||
Insurance 0.7% | ||||||||
| Admiral Group PLC | 24,949 | 333,540 | ||||||
| Aviva PLC | 456,044 | 2,098,993 | ||||||
| Friends Provident PLC | 363,418 | 341,848 | ||||||
| Legal & General Group PLC | 1,018,359 | 864,911 | ||||||
| Old Mutual PLC | 869,892 | 866,404 | ||||||
| Prudential PLC | 427,374 | 2,455,647 | ||||||
| RSA Insurance Group PLC | 572,463 | 1,101,005 | ||||||
| Standard Life PLC | 360,491 | 1,001,995 | ||||||
| 9,064,343 | ||||||||
Internet & Catalog Retail 0.1% | ||||||||
| Home Retail Group PLC | 153,748 | 565,582 | ||||||
Machinery 0.1% | ||||||||
| IMI PLC | 43,571 | 228,365 | ||||||
| Invensys PLC* | 126,108 | 368,172 | ||||||
| 596,537 | ||||||||
Media 0.5% | ||||||||
| British Sky Broadcasting Group PLC | 194,984 | 1,387,663 | ||||||
| Daily Mail & General Trust, Class A | 34,990 | 169,833 | ||||||
| ITV PLC | 560,647 | 263,159 | ||||||
| Pearson PLC | 139,088 | 1,434,755 | ||||||
| Reed Elsevier PLC | 189,524 | 1,404,349 | ||||||
| Thomson Reuters PLC | 31,339 | 805,833 | ||||||
| United Business Media Ltd. | 48,671 | 329,510 | ||||||
| WPP PLC | 191,141 | 1,307,370 | ||||||
| 7,102,472 | ||||||||
Metals & Mining 1.8% | ||||||||
| Anglo American PLC | 224,553 | 4,830,501 | ||||||
| Antofagasta PLC | 68,550 | 588,116 | ||||||
| BHP Billiton PLC | 375,929 | 7,799,989 | ||||||
| Eurasian Natural Resources Corp. | 52,685 | 458,618 | ||||||
| Kazakhmys PLC | 32,271 | 250,635 | ||||||
| Lonmin PLC | 23,139 | 485,730 | ||||||
| Rio Tinto PLC | 169,988 | 6,904,703 | ||||||
| Vedanta Resources PLC | 22,688 | 354,774 | ||||||
| Xstrata PLC | 323,938 | 2,855,004 | ||||||
| 24,528,070 | ||||||||
Multi-Utility 0.6% | ||||||||
| Centrica PLC | 871,873 | 2,914,085 | ||||||
| National Grid PLC | 414,627 | 3,443,840 | ||||||
| United Utilities Group PLC | 117,965 | 881,911 | ||||||
| 7,239,836 | ||||||||
Multiline Retail 0.2% | ||||||||
| Marks & Spencer Group PLC | 271,119 | 1,342,776 | ||||||
| Next PLC | 34,315 | 820,504 | ||||||
| 2,163,280 | ||||||||
Oil, Gas & Consumable Fuels 3.6% | ||||||||
| BG Group PLC | 571,418 | 9,121,503 | ||||||
| BP PLC | 3,185,588 | 22,504,475 | ||||||
| Cairn Energy PLC* | 23,791 | 745,687 | ||||||
| Frontline Ltd. | 9,000 | 178,146 | ||||||
| Imperial Tobacco Group PLC | 173,438 | 3,955,977 | ||||||
| Royal Dutch Shell PLC, B Shares | 456,572 | 10,329,285 | ||||||
| Tullow Oil PLC | 136,678 | 1,612,968 | ||||||
| 48,448,041 | ||||||||
Pharmaceuticals 1.8% | ||||||||
| AstraZeneca PLC | 246,407 | 8,625,373 | ||||||
| GlaxoSmithKline PLC | 884,389 | 13,618,221 | ||||||
| Shire PLC | 96,504 | 1,206,288 | ||||||
| 23,449,882 | ||||||||
Professional Services 0.1% | ||||||||
| Capita Group PLC (The) | 102,065 | 1,028,767 | ||||||
| Hays PLC | 248,348 | 329,566 | ||||||
| 1,358,333 | ||||||||
Real Estate Investment Trusts 0.2% | ||||||||
| British Land Co. PLC | 147,788 | 932,245 | ||||||
| Hammerson PLC | 116,506 | 539,653 | ||||||
| Land Securities Group PLC | 130,874 | 1,078,934 | ||||||
| Liberty International PLC | 40,859 | 239,415 | ||||||
| Segro PLC | 962,403 | 337,405 | ||||||
| 3,127,652 | ||||||||
Road & Rail 0.0% | ||||||||
| Firstgroup PLC | 81,880 | 400,455 | ||||||
| Stagecoach Group PLC | 68,356 | 131,497 | ||||||
| 531,952 | ||||||||
Software 0.1% | ||||||||
| Autonomy Corp. PLC* | 36,705 | 769,802 | ||||||
| Sage Group PLC (The) | 228,659 | 622,488 | ||||||
| 1,392,290 | ||||||||
Specialty Retail 0.1% | ||||||||
| Carphone Warehouse Group PLC | 53,270 | 116,621 | ||||||
| Kingfisher PLC | 408,405 | 1,111,424 | ||||||
| 1,228,045 | ||||||||
Textiles, Apparel & Luxury Goods 0.0% | ||||||||
| Burberry Group PLC | 78,375 | 466,368 | ||||||
60 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
UNITED KINGDOM (continued) | ||||||||
Tobacco 0.6% | ||||||||
| British American Tobacco PLC | 322,521 | $ | 7,775,777 | |||||
Trading Companies & Distributors 0.1% | ||||||||
| Bunzl PLC | 59,826 | 482,233 | ||||||
| Wolseley PLC* | 51,164 | 917,332 | ||||||
| 1,399,565 | ||||||||
Water Utility 0.1% | ||||||||
| Severn Trent PLC | 39,056 | 600,733 | ||||||
Wireless Telecommunication Services 1.2% | ||||||||
| Vodafone Group PLC | 8,928,929 | 16,406,026 | ||||||
| 245,582,871 | ||||||||
UNITED STATES 0.1% | ||||||||
Capital Markets 0.0% (a) | ||||||||
| Schroders PLC | 14,441 | 174,845 | ||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Synthes, Inc. | 10,596 | 1,072,392 | ||||||
| 1,247,237 | ||||||||
Total Common Stocks (cost $1,699,657,687) | 1,271,022,554 | |||||||
| Preferred Stocks 0.3% (a) | ||||||||
GERMANY 0.3% | ||||||||
Automobiles 0.1% | ||||||||
| Bayerische Motoren Werke AG | 8,063 | 170,929 | ||||||
| Porsche Automobil Holding SE | 15,682 | 1,117,269 | ||||||
| Volkswagen AG (b) | 17,965 | 1,126,252 | ||||||
| 2,414,450 | ||||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Fresenius SE | 13,768 | 707,419 | ||||||
Household Products 0.1% | ||||||||
| Henkel AG & Co. KGaA | 31,816 | 859,377 | ||||||
Multi-Utility 0.0% | ||||||||
| RWE AG | 6,674 | 410,946 | ||||||
| 4,392,192 | ||||||||
ITALY 0.0% | ||||||||
Insurance 0.0% | ||||||||
| Unipol Gruppo Finanziario SpA | 104,302 | 86,667 | ||||||
Total Preferred Stocks (cost $6,066,645) | 4,478,859 | |||||||
| Exchange Traded Fund 0.2% | ||||||||
| Shares | Market Value | |||||||
UNITED STATES 0.2% | ||||||||
| iShares MSCI EAFE Index Fund | $ | 48,360 | 2,027,251 | |||||
| Rights 0.0% | ||||||||
AUSTRALIA 0.0% (a) | ||||||||
Metals & Mining 0.0% | ||||||||
| OneSteel Ltd., expiring 5/7/09* | 53,938 | 0 | ||||||
Real Estate Investment Trusts 0.0% | ||||||||
| Dexus Property Group, expiring 5/21/09* | 166,486 | 0 | ||||||
| 0 | ||||||||
BELGIUM 0.0% | ||||||||
Beverages 0.0% (a) | ||||||||
| Anheuser-Busch InBev NV, expiring 12/31/49* | 47,992 | 127 | ||||||
Diversified Financial Services 0.0% (a) | ||||||||
| Fortis, expiring 7/2/14* | 368,527 | 0 | ||||||
| 127 | ||||||||
ITALY 0.0% | ||||||||
Natural Gas Utility 0.0% | ||||||||
| Snam Rete Gas SpA, expiring 5/18/09* | 140,055 | 107,461 | ||||||
SPAIN 0.0% | ||||||||
Commercial Banks 0.0% | ||||||||
| Banco de Valencia SA, expiring 5/12/09* | 27,899 | 4,798 | ||||||
UNITED KINGDOM 0.0% (a) | ||||||||
Real Estate Investment Trusts 0.0% | ||||||||
| Liberty International PLC, expiring 5/22/09* | 10,631 | 13,316 | ||||||
Total Rights (cost $113,788) | 125,702 | |||||||
| Warrants 0.0% (a) | ||||||||
JAPAN 0.0% | ||||||||
Metals & Mining 0.0% | ||||||||
| Dowa Holdings Co. Ltd., expiring 01/29/10* | 67,800 | 0 | ||||||
Total Warrants (cost $ — ) | 0 | |||||||
2009 Semiannual Report 61
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide International Index Fund (Continued)
| Repurchase Agreements 14.0% | ||||||||
| Principal Amount | Market Value | |||||||
| Barclays Capital, 0.16%, dated 04/30/09, due 05/01/09, repurchase price $50,000,222, collateralized by Treasury Notes ranging 0.00% — 1.38%, maturing 07/30/09 — 02/15/12; total market value of $51,000,000 (c) | $ | 50,000,000 | $ | 50,000,000 | ||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $7,412,015, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $7,560,218 | 7,411,978 | 7,411,978 | ||||||
| Morgan Stanley, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $115,320,138, collateralized by U.S. Government Agency Mortgages ranging 5.00% — 7.50%, maturing 07/01/19 — 11/01/47; total market value of $117,626,051 (c) | 115,319,658 | 115,319,658 | ||||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $13,999,083, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $14,279,006 | 13,999,025 | 13,999,025 | ||||||
Total Repurchase Agreements (cost $186,730,661) | 186,730,661 | |||||||
Total Investments (cost $1,895,249,449) (d) — 110.0% | 1,464,385,027 | |||||||
Liabilities in excess of other assets — (10.0)% | (132,879,080 | ) | ||||||
NET ASSETS — 100.0% | $ | 1,331,505,947 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | Fair Valued Security. | |
| (b) | The security or a partial position of this security is on loan at April 30, 2009. The total value of securities on loan at April 30, 2009 was $161,098,217. | |
| (c) | The security was purchased with cash collateral held from securities on loan (See Note 2). The total value of this security as of April 30, 2009 was $165,319,658. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| (e) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. The maturity date represents the actual maturity date. |
| AB | Stock Company | |
| AE | Limited Company | |
| AG | Stock Corporation | |
| AS | Stock Corporation | |
| ASA | Stock Corporation | |
| BR | Bearer Shares | |
| CVA | Dutch Certificate | |
| KGaA | Limited partnership with shares | |
| KK | Joint Stock Company | |
| LTD | Limited | |
| NV | Public Traded Company | |
| OYJ | Public Traded Company | |
| PLC | Public Limited Company | |
| PPS | Price Protected Shares | |
| REG | Registered Shares | |
| REIT | Real Estate Investment Trust | |
| RSP | Savings Shares | |
| SA | Stock Company | |
| SC | Partnership with full liability | |
| SCA | Limited partnership with share capital | |
| SCPA | Italian consortium joint-stock company | |
| SDR | Swedish Depositary Receipts | |
| SGPS | Holding Enterprise | |
| SpA | Limited share company |
62 Semiannual Report 2009
At April 30, 2009, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows:
| Net | ||||||||||||||||||
| Currency | Unrealized | |||||||||||||||||
| Delivery | Received/ | Contract | Market | Appreciation/ | ||||||||||||||
| Currency | Date | (Delivered) | Value | Value | (Depreciation) | |||||||||||||
Short Contracts: | ||||||||||||||||||
| Australia Dollar | 5/14/09 | (2,990,000 | ) | $ | (1,986,148 | ) | $ | (2,169,946 | ) | $ | (183,798 | ) | ||||||
| British Pound | 5/14/09 | (2,716,000 | ) | (3,853,420 | ) | (4,016,599 | ) | (163,179 | ) | |||||||||
| Euro | 5/14/09 | (4,614,000 | ) | (6,021,060 | ) | (6,103,520 | ) | (82,460 | ) | |||||||||
| Hong Kong Dollar | 5/14/09 | (570,000 | ) | (73,536 | ) | (73,560 | ) | (24 | ) | |||||||||
| Japanese Yen | 5/14/09 | (607,599,000 | ) | (6,188,797 | ) | (6,163,601 | ) | 25,196 | ||||||||||
| Swedish Krone | 5/14/09 | (14,588,000 | ) | (1,775,603 | ) | (1,814,331 | ) | (38,728 | ) | |||||||||
| Swiss Franc | 5/14/09 | (745,000 | ) | (637,383 | ) | (653,070 | ) | (15,687 | ) | |||||||||
| Total Short Contracts | $ | (20,535,947 | ) | $ | (20,994,627 | ) | $ | (458,680 | ) | |||||||||
Long Contracts: | ||||||||||||||||||
| Australia Dollar | 5/14/09 | 5,774,100 | $ | 3,969,667 | $ | 4,190,464 | $ | 220,797 | ||||||||||
| British Pound | 5/14/09 | 8,677,900 | 12,705,004 | 12,833,447 | 128,443 | |||||||||||||
| Danish Kroner | 5/14/09 | 400,000 | 69,869 | 71,042 | 1,173 | |||||||||||||
| Euro | 5/14/09 | 9,440,100 | 12,417,149 | 12,487,610 | 70,461 | |||||||||||||
| Hong Kong Dollar | 5/14/09 | 1,532,000 | 197,711 | 197,709 | (2 | ) | ||||||||||||
| Japanese Yen | 5/14/09 | 1,269,286,000 | 13,341,916 | 12,875,881 | (466,035 | ) | ||||||||||||
| Swedish Krone | 5/14/09 | 23,008,000 | 2,837,008 | 2,865,629 | 28,621 | |||||||||||||
| Swiss Franc | 5/14/09 | 1,424,000 | 1,240,315 | 1,248,282 | 7,967 | |||||||||||||
| Total Long Contracts | $ | 46,778,639 | $ | 46,770,064 | $ | (8,575 | ) | |||||||||||
At April 30, 2009, the Fund’s open futures contracts were as follows:
| Net | ||||||||||||||||
| Notional Value | Unrealized | |||||||||||||||
| Number of | Covered by | Appreciation/ | ||||||||||||||
| Contracts | Long Contracts* | Expiration | Contracts | (Depreciation) | ||||||||||||
| Australia | 70 | SPI 200 Index | 06/30/09 | $ | 4,788,007 | $ | 213,560 | |||||||||
| Europe | 10 | CAC40 10 Euro | 06/22/09 | 406,128 | 48,572 | |||||||||||
| Europe | 2 | DAX Index | 06/22/09 | 317,395 | 44,398 | |||||||||||
| Europe | 2 | IBEX 35 INDX | 05/18/09 | 235,356 | 2,150 | |||||||||||
| Europe | 633 | DJ Euro STOXX 50 | 06/20/09 | 12,657,530 | 1,363,397 | |||||||||||
| Europe | 3 | S&P/MIB IDEM Index | 06/19/09 | 371,369 | 73,212 | |||||||||||
| Hong Kong | 4 | Hang Seng Index | 05/31/09 | 397,094 | 14,138 | |||||||||||
| Japan | 185 | Topix Index | 06/30/09 | 15,779,412 | 1,377,337 | |||||||||||
| Sweden | 253 | OMXS30 Index | 04/17/09 | 2,389,820 | 107,483 | |||||||||||
| United Kingdom | 222 | FTSE 100 Index | 06/20/09 | 13,812,210 | 1,061,773 | |||||||||||
| $ | 51,154,321 | $ | 4,306,020 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 63
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide International Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $1,708,518,788)* | $ | 1,277,654,366 | |||
| Repurchase agreements, at value and cost | 186,730,661 | ||||
| Total Investments | 1,464,385,027 | ||||
| Deposits with broker for futures | 4,795,850 | ||||
| Foreign currency, at value (cost $19,920,776) | 20,067,456 | ||||
| Unrealized appreciation on forward foreign currency contracts | 657,698 | ||||
| Interest and dividends receivable | 6,597,209 | ||||
| Receivable for capital shares issued | 521,157 | ||||
| Reclaims receivable | 1,116,763 | ||||
| Receivable for variation margin on futures contracts | 1,059,435 | ||||
| Prepaid expenses and other assets | 55,447 | ||||
| Total Assets | 1,499,256,042 | ||||
Liabilities: | |||||
| Cash overdraft | 500,000 | ||||
| Unrealized depreciation on forward foreign currency contracts | 1,124,953 | ||||
| Payable for capital shares redeemed | 217,948 | ||||
| Payable upon return of securities loaned (Note 2) | 165,319,658 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 162,438 | ||||
| Fund administration fees | 136,091 | ||||
| Distribution fees | 53,716 | ||||
| Trustee fees | 9,055 | ||||
| Compliance program costs (Note 3) | 20,572 | ||||
| Custodian fees | 43,981 | ||||
| Printing fees | 519 | ||||
| Professional fees | 62,399 | ||||
| Other | 98,765 | ||||
| Total Liabilities | 167,750,095 | ||||
Net Assets | $ | 1,331,505,947 | |||
Represented by: | |||||
| Capital | $ | 1,787,940,246 | |||
| Accumulated undistributed net investment income | 9,889,739 | ||||
| Accumulated net realized losses from investment, futures and foreign currency transactions | (39,352,292 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (430,864,422 | ) | |||
| Net unrealized appreciation/(depreciation) from futures | 4,306,020 | ||||
| Net unrealized appreciation/(depreciation) from foreign currency contracts | (467,255 | ) | |||
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 53,911 | ||||
Net Assets | $ | 1,331,505,947 | |||
Net Assets: | |||||
| Class A Shares | $ | 269,601,610 | |||
| Class B Shares | 323,381 | ||||
| Class C Shares | 486,772 | ||||
| Class R2 Shares (a) | 5,765 | ||||
| Institutional Class Shares | 1,061,088,419 | ||||
| Total | $ | 1,331,505,947 | |||
| * | Includes value of securities on loan of $161,098,217 (Note 2). |
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
64 Semiannual Report 2009
| Nationwide International Index Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 50,462,852 | ||||
| Class B Shares | 61,849 | ||||
| Class C Shares | 95,119 | ||||
| Class R2 Shares (a) | 1,081 | ||||
| Institutional Class Shares | 197,823,724 | ||||
| Total | 248,444,625 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 5.34 | |||
| Class B Shares (b) | $ | 5.23 | (e) | ||
| Class C Shares (c) | $ | 5.12 | |||
| Class R2 Shares (a) | $ | 5.34 | (d) | ||
| Institutional Class Shares | $ | 5.36 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 5.67 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. |
| (d) | The NAV reported above represents the traded NAV at April 30, 2009. |
| (e) | NAV shown differs from traded NAV at April 30, 2009 due to financial statement adjustments. The accompanying notes are an integral part of these financial statements. |
2009 Semiannual Report 65
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| International Index | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 19,160 | |||
| Dividend income | 23,847,664 | ||||
| Income from securities lending (Note 2) | 762,756 | ||||
| Foreign tax withholding | (2,186,546 | ) | |||
| Total Income | 22,443,034 | ||||
EXPENSES: | |||||
| Investment advisory fees | 1,607,495 | ||||
| Fund administration fees | 742,096 | ||||
| Distribution fees Class A | 304,888 | ||||
| Distribution fees Class B | 1,569 | ||||
| Distribution fees Class C | 2,775 | ||||
| Distribution fees Class R2 (a) | 14 | ||||
| Administrative services fees Class A | 187,931 | ||||
| Registration and filing fees | 25,428 | ||||
| Professional fees | 116,704 | ||||
| Printing fees | 33,829 | ||||
| Trustee fees | 43,765 | ||||
| Compliance program costs (Note 3) | 12,505 | ||||
| Custodian fees | 39,999 | ||||
| Other | 173,328 | ||||
| Total expenses before earnings credit and expenses reimbursed | 3,292,326 | ||||
| Earnings credit (Note 5) | (409 | ) | |||
| Expenses reimbursed by adviser | (589,856 | ) | |||
| Net Expenses | 2,702,061 | ||||
NET INVESTMENT INCOME | 19,740,973 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (26,442,531 | ) | |||
| Net realized losses from futures transactions | (5,016,949 | ) | |||
| Net realized gains from foreign currency transactions | 511,103 | ||||
| Net realized losses from investment, futures and foreign currency transactions | (30,948,377 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | (46,346,879 | ) | |||
| Net change in unrealized appreciation/(depreciation) from futures | 4,838,856 | ||||
| Net change in unrealized appreciation/(depreciation) from foreign currency contracts | (46,670 | ) | |||
| Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 308,859 | ||||
| Net change in unrealized appreciation/(depreciation) from investments, futures, foreign currency contracts and translation of assets and liabilities denominated in foreign currencies. | (41,245,834 | ) | |||
| Net realized/ unrealized losses from investments, futures and foreign currency transactions | (72,194,211 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (52,453,238 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
66 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide International Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 19,740,973 | $ | 64,297,419 | ||||||
| Net realized gains (losses) from investment, futures and foreign currency transactions | (30,948,377 | ) | 128,242,943 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments, futures, foreign currency contracts and translation of assets and liabilities denominated in foreign currencies | (41,245,834 | ) | (1,332,266,109 | ) | ||||||
| Change in net assets resulting from operations | (52,453,238 | ) | (1,139,725,747 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (4,323,353 | ) | (8,067,405 | ) | ||||||
| Class B | (5,384 | ) | (15,885 | ) | ||||||
| Class C | (9,847 | ) | (37,988 | ) | ||||||
| Class R2 (a) | (94 | ) | (83 | ) | ||||||
| Institutional Class | (17,218,348 | ) | (66,046,009 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (26,595,913 | ) | (5,912,646 | ) | ||||||
| Class B | (37,073 | ) | (18,506 | ) | ||||||
| Class C | (68,840 | ) | (45,457 | ) | ||||||
| Class R2 (a) | (593 | ) | (30 | ) | ||||||
| Institutional Class | (100,838,802 | ) | (59,206,432 | ) | ||||||
| Change in net assets from shareholder distributions | (149,098,247 | ) | (139,350,441 | ) | ||||||
| Change in net assets from capital transactions | 244,574,786 | (92,847,795 | ) | |||||||
| Change in net assets | 43,023,301 | (1,371,923,983 | ) | |||||||
Net Assets: | ||||||||||
| Beginning of period | 1,288,482,646 | 2,660,406,629 | ||||||||
| End of period | $ | 1,331,505,947 | $ | 1,288,482,646 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 9,889,739 | $ | 11,705,792 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 35,093,164 | $ | 270,373,904 | ||||||
| Dividends reinvested | 30,729,215 | 13,862,259 | ||||||||
| Cost of shares redeemed (b) | (10,362,401 | ) | (59,576,624 | ) | ||||||
| Total Class A | 55,459,978 | 224,659,539 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 23,777 | 21,163 | ||||||||
| Dividends reinvested | 34,536 | 28,362 | ||||||||
| Cost of shares redeemed | (33,738 | ) | (41,457 | ) | ||||||
| Total Class B | 24,575 | 8,068 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 67
Statements of Changes in Net Assets (Continued)
| Nationwide International Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 53,659 | $ | 259,018 | ||||||
| Dividends reinvested | 40,126 | 51,518 | ||||||||
| Cost of shares redeemed (b) | (202,961 | ) | (429,039 | ) | ||||||
| Total Class C | (109,176 | ) | (118,503 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 14 | 8,000 | ||||||||
| Dividends reinvested | 687 | 113 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class R2 | 701 | 8,113 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 127,916,474 | 272,570,136 | ||||||||
| Dividends reinvested | 118,054,448 | 125,250,333 | ||||||||
| Cost of shares redeemed (b) | (56,772,214 | ) | (715,225,481 | ) | ||||||
| Total Institutional Class | 189,198,708 | (317,405,012 | ) | |||||||
| Change in net assets from capital transactions: | $ | 244,574,786 | $ | (92,847,795 | ) | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 6,426,074 | 26,530,083 | ||||||||
| Reinvested | 5,638,388 | 1,330,513 | ||||||||
| Redeemed | (2,038,982 | ) | (5,910,974 | ) | ||||||
| Total Class A Shares | 10,025,480 | 21,949,622 | ||||||||
Class B Shares | ||||||||||
| Issued | 4,370 | 2,117 | ||||||||
| Reinvested | 6,467 | 2,685 | ||||||||
| Redeemed | (6,302 | ) | (5,104 | ) | ||||||
| Total Class B Shares | 4,535 | (302 | ) | |||||||
Class C Shares | ||||||||||
| Issued | 9,695 | 25,543 | ||||||||
| Reinvested | 7,672 | 4,950 | ||||||||
| Redeemed | (40,904 | ) | (48,673 | ) | ||||||
| Total Class C Shares | (23,537 | ) | (18,180 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | – | 850 | ||||||||
| Reinvested | 127 | 12 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class R2 Shares | 127 | 862 | ||||||||
Amounts designated as “-” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
68 Semiannual Report 2009
| Nationwide International Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 25,074,864 | 29,672,868 | ||||||||
| Reinvested | 21,621,694 | 11,716,850 | ||||||||
| Redeemed | (11,284,076 | ) | (70,889,053 | ) | ||||||
| Total Institutional Class Shares | 35,412,482 | (29,499,335 | ) | |||||||
| Total change in shares: | 45,419,087 | (7,567,333 | ) | |||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 69
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .33 | 0 | .08 | (0 | .35) | (0 | .27) | (0 | .10) | (0 | .62) | (0 | .72) | – | $ | 5 | .34 | (4 | .46%) | $ | 269,601,610 | 0 | .77% | 2 | .98% | 0 | .87% | 1 | .68% | |||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 6 | .21 | 0 | .06 | (0 | .33) | (0 | .27) | (0 | .09) | (0 | .62) | (0 | .71) | – | $ | 5 | .23 | (4 | .56%) | $ | 323,381 | 1 | .37% | 2 | .49% | 1 | .47% | 1 | .68% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 12 | .39 | 0 | .23 | (5 | .81) | (5 | .58) | (0 | .27) | (0 | .32) | (0 | .59) | – | $ | 6 | .22 | (46 | .95%) | $ | 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 6 | .10 | 0 | .05 | (0 | .32) | (0 | .27) | (0 | .09) | (0 | .62) | (0 | .71) | – | $ | 5 | .12 | (4 | .67%) | $ | 486,772 | 1 | .37% | 2 | .15% | 1 | .47% | 1 | .68% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–” are zero or have been rounded to zero (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 outstanding during the period.
(g) For the period from February 14, 2005 (commencement of operations) through October 31, 2005.
(h) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares.
(i) For the period from March 9, 2007 (commencement of operations) through October 31, 2007.
The accompanying notes are an integral part of these financial statements.
70 Semiannual Report 2009
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (h) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .32 | 0 | .07 | (0 | .33) | (0 | .26) | (0 | .10) | (0 | .62) | (0 | .72) | – | $ | 5 | .34 | (4 | .33%) | $ | 5,765 | 0 | .87% | 2 | .85% | 0 | .94% | 1 | .68% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 12 | .60 | 0 | .20 | (5 | .83) | (5 | .63) | (0 | .32) | (0 | .32) | (0 | .64) | – | $ | 6 | .33 | (46 | .67%) | $ | 6,038 | 0 | .85% | 2 | .20% | 0 | .88% | 12 | .76% | |||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(i) | $ | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .35 | 0 | .09 | (0 | .35) | (0 | .26) | (0 | .11) | (0 | .62) | (0 | .73) | – | $ | 5 | .36 | (4 | .35%) | $ | 1,061,088,419 | 0 | .37% | 3 | .40% | 0 | .47% | 1 | .68% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero
| (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 February 14, 2005 (commencement of operations) through October 31, 2005. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (i) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 71
| 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 semiannual period ended April 30, 2009, the Nationwide Mid Cap Market Index Fund (Class A at NAV) registered −0.55% versus −0.18% for its benchmark, the S&P 400 MidCap Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mid-Cap Core Funds (consisting of 392 funds as of April 30, 2009) was −1.87% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The sectors represented in the S&P MidCap 400 Index posted mixed results for the Fund for the reporting period. Six of the 10 sectors within the benchmark index recorded positive returns. Consumer discretionary led the way, advancing 12.28%, followed by information technology, with 10.28%, telecommunications services, with 4.89%, and materials, with 4.62%. The strongest performers among individual stocks within the index were Palm, Inc.; Chico’s FAS, Inc.; Health Management Associates, Inc.; Temple-Inland Inc.; and Fidelity National Financial, Inc.
What areas of investment detracted from Fund performance?
By contrast, the financials sector posted the weakest results for the Fund within the benchmark index, registering −13.29% for the reporting period. Other laggards included energy, with −7.15%, utilities, with −4.75%, and health-care, with −3.10%. Among individual stocks within the index, the lowest returns were posted by The Colonial BancGroup, Inc.; Webster Financial Corp.; Synovus Financial Corp.; Apollo Investment Corp.; Patriot Coal Corp.; and SVB Financial Group.
What is your outlook for the near term?
Increasingly, signs are pointing to a slowdown in the recession’s downside momentum. It is important to remember that this does not mean that the economy is set to recover. We do believe, however, that the period of peak weakness may be behind us. Reflation policy finally appears to be taking hold, and credit markets are beginning to thaw. Leading economic indicators also are starting to look better.
When the economy does begin to pick up, an event that we believe will occur in late 2009 or 2010, the recovery is likely to be subpar. Corporate earnings and financial markets most likely will continue to experience some volatility. Market breadth and volume have been strong since the current rally began, which suggests to us that upward momentum has increased to the point that it has become more difficult to derail the markets. In addition, signs of economic improvement, which provides a stronger fundamental base for the markets, have accompanied this current rally (unlike previous failed attempts).
We are not convinced that we are at the beginning of a new secular bull market, because a number of downside risks and a high degree of uncertainty remain. We do continue to believe, however, that stock prices will be higher one year from now than they are today.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Manager:
Debra L. Jelilian
Debra L. Jelilian
72 Semiannual Report 2009
| Fund Performance | Nationwide Mid Cap Market Index Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | -0.55% | -32.27% | -0.14% | 3.19% | |||||||||||||
| w/SC3 | -6.24% | -36.18% | -1.31% | 2.53% | ||||||||||||||
Class B4 | w/o SC2 | -0.87% | -32.78% | -0.76% | 2.61% | |||||||||||||
| w/SC5 | -5.52% | -35.93% | -1.06% | 2.61% | ||||||||||||||
Class C6 | w/o SC2 | -0.85% | -32.74% | -0.75% | 2.61% | |||||||||||||
| w/SC7 | -1.78% | -33.37% | -0.75% | 2.61% | ||||||||||||||
Class R28,9,10 | -0.70% | -32.31% | -0.15% | 3.18% | ||||||||||||||
Institutional Class8 | -0.41% | -32.06% | 0.26% | 3.62% | ||||||||||||||
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 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 R2 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 R2 shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R2 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 R2 shares would have been lower. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||
| Expense | Expense | |||||
| Ratio* | Ratio* | |||||
| Class A | 0.77% | 0.72% | ||||
| Class B | 1.37% | 1.32% | ||||
| Class C | 1.37% | 1.32% | ||||
| Class R2 | 1.07% | 1.02% | ||||
| Institutional Class | 0.37% | 0.32% | ||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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.
| (a) | The S&P MidCap 400 Index is an unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies. | |
| (b) | Calculated by the U.S Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 73
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 994.49 | 3.21 | 0.65 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.57 | 3.26 | 0.65 | |||||||||||||||
| Class B | Actual | 1,000.00 | 991.34 | 6.52 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.25 | 6.63 | 1.32 | |||||||||||||||
| Class C | Actual | 1,000.00 | 991.47 | 6.52 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.25 | 6.63 | 1.32 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 993.02 | 4.55 | 0.92 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.23 | 4.62 | 0.92 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 995.89 | 1.58 | 0.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,023.21 | 1.61 | 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 to Securities and Exchange Commissions guidelines. | |
| b | Represents the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
74 Semiannual Report 2009
| Portfolio Summary | Nationwide Mid Cap Market Index Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 96 | .7% | ||
| Repurchase Agreements | 8 | .9% | ||
| Liabilities in excess of other assets | (5 | .6)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Real Estate Investment Trusts | 5.8% | |||
| Specialty Retail | 4.8% | |||
| Insurance | 4.7% | |||
| Machinery | 4.5% | |||
| Health Care Equipment & Supplies | 3.9% | |||
| Chemicals | 3.7% | |||
| Commercial Banks | 3.5% | |||
| Information Technology Services | 3.4% | |||
| Energy Equipment & Services | 3.2% | |||
| Oil, Gas & Consumable Fuels | 3.1% | |||
| Other Industries* | 59.4% | |||
| 100.0% | ||||
| Top Holdings | ||||
| Vertex Pharmaceuticals, Inc | 0.7% | |||
| Western Digital Corp. | 0.7% | |||
| Ross Stores, Inc. | 0.7% | |||
| Everest Re Group Ltd | 0.6% | |||
| Quanta Services, Inc. | 0.6% | |||
| FMC Technologies, Inc. | 0.6% | |||
| Fidelity National Financial, Inc., Class A | 0.6% | |||
| Advance Auto Parts, Inc. | 0.6% | |||
| Newfield Exploration Co. | 0.6% | |||
| Roper Industries, Inc. | 0.6% | |||
| Other Holdings* | 93.7% | |||
| 100.0% | ||||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 75
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Mid Cap Market Index Fund
| Common Stocks 96.7% | ||||||||
Shares | Market Value | |||||||
Aerospace & Defense 0.5% | ||||||||
| Alliant Techsystems, Inc.* | 28,500 | $ | 2,270,025 | |||||
| BE Aerospace, Inc. | 87,444 | 943,521 | ||||||
| 3,213,546 | ||||||||
Airlines 0.3% | ||||||||
| AirTran Holdings, Inc.* | 103,060 | 716,267 | ||||||
| Alaska Air Group, Inc.* | 31,600 | 530,248 | ||||||
| JetBlue Airways Corp.* | 159,725 | 787,444 | ||||||
| 2,033,959 | ||||||||
Auto Components 0.7% | ||||||||
| BorgWarner, Inc. | 100,440 | 2,907,738 | ||||||
| Gentex Corp. | 119,680 | 1,600,122 | ||||||
| 4,507,860 | ||||||||
Automobiles 0.1% | ||||||||
| Thor Industries, Inc. | 31,200 | 717,288 | ||||||
Beverages 0.6% | ||||||||
| Hansen Natural Corp.* | 62,900 | 2,563,804 | ||||||
| PepsiAmericas, Inc. | 50,400 | 1,238,328 | ||||||
| 3,802,132 | ||||||||
Biotechnology 1.2% | ||||||||
| OSI Pharmaceuticals, Inc.* | 50,400 | 1,691,928 | ||||||
| United Therapeutics Corp.* | 20,200 | 1,268,762 | ||||||
| Vertex Pharmaceuticals, Inc. | 150,290 | 4,631,938 | ||||||
| 7,592,628 | ||||||||
Building Products 0.2% | ||||||||
| Lennox International, Inc. | 40,700 | 1,297,923 | ||||||
Capital Markets 1.9% | ||||||||
| Affiliated Managers Group, Inc.* | 35,681 | 2,028,465 | ||||||
| Apollo Investment Corp. | 123,506 | 592,829 | ||||||
| Eaton Vance Corp. | 101,600 | 2,780,792 | ||||||
| Jefferies Group, Inc. | 106,400 | 2,082,248 | ||||||
| Raymond James Financial, Inc. (a) | 84,880 | 1,331,767 | ||||||
| SEI Investments Co. | 116,380 | 1,632,811 | ||||||
| Waddell & Reed Financial, Inc., Class A | 73,800 | 1,653,858 | ||||||
| 12,102,770 | ||||||||
Chemicals 3.7% | ||||||||
| Airgas, Inc. | 70,700 | 3,048,584 | ||||||
| Albemarle Corp. | 79,400 | 2,129,508 | ||||||
| Ashland, Inc. | 57,600 | 1,264,896 | ||||||
| Cabot Corp. | 57,500 | 839,500 | ||||||
| Cytec Industries, Inc. | 41,000 | 814,260 | ||||||
| FMC Corp. | 63,020 | 3,070,965 | ||||||
| Lubrizol Corp. | 58,980 | 2,549,116 | ||||||
| Minerals Technologies, Inc. | 16,440 | 611,404 | ||||||
| Olin Corp. | 67,460 | 849,996 | ||||||
| RPM International, Inc. | 111,600 | 1,542,312 | ||||||
| Scotts Miracle-Gro Co. (The), Class A | 38,220 | 1,290,689 | ||||||
| Sensient Technologies Corp. | 42,280 | 988,506 | ||||||
| Terra Industries, Inc. | 87,550 | 2,320,075 | ||||||
| Valspar Corp. | 87,000 | 2,088,000 | ||||||
| 23,407,811 | ||||||||
Commercial Banks 3.5% | ||||||||
| Associated Banc-Corp. | 111,221 | 1,720,589 | ||||||
| BancorpSouth, Inc. | 62,900 | 1,462,425 | ||||||
| Bank of Hawaii Corp. | 41,500 | 1,458,310 | ||||||
| Cathay General Bancorp (a) | 43,200 | 484,704 | ||||||
| City National Corp. (a) | 35,200 | 1,288,320 | ||||||
| Colonial BancGroup, Inc. (The) (a) | 178,080 | 135,341 | ||||||
| Commerce Bancshares, Inc. | 57,385 | 1,899,443 | ||||||
| Cullen/Frost Bankers, Inc. | 51,630 | 2,431,257 | ||||||
| FirstMerit Corp. | 70,680 | 1,371,899 | ||||||
| Fulton Financial Corp. | 152,400 | 1,007,364 | ||||||
| International Bancshares Corp. (a) | 44,000 | 594,440 | ||||||
| PacWest Bancorp | 21,540 | 313,838 | ||||||
| SVB Financial Group* | 28,599 | 593,715 | ||||||
| Synovus Financial Corp. | 244,000 | 788,120 | ||||||
| TCF Financial Corp. (a) | 97,700 | 1,359,007 | ||||||
| Trustmark Corp. (a) | 42,400 | 921,776 | ||||||
| Valley National Bancorp (a) | 117,400 | 1,698,778 | ||||||
| Webster Financial Corp. | 45,900 | 240,057 | ||||||
| Westamerica Bancorporation (a) | 25,120 | 1,347,185 | ||||||
| Wilmington Trust Corp. | 59,900 | 869,149 | ||||||
| 21,985,717 | ||||||||
Commercial Services & Supplies 1.6% | ||||||||
| Brink’s Co. (The) | 35,180 | 997,353 | ||||||
| Clean Harbors, Inc.* | 17,600 | 881,760 | ||||||
| Copart, Inc.* | 55,000 | 1,726,450 | ||||||
| Corrections Corp. of America | 104,330 | 1,474,183 | ||||||
| Deluxe Corp. | 45,473 | 659,358 | ||||||
| Herman Miller, Inc. | 47,200 | 701,864 | ||||||
| HNI Corp. | 38,970 | 604,035 | ||||||
| Mine Safety Appliances Co. | 26,100 | 643,365 | ||||||
| Rollins, Inc. | 34,147 | 614,646 | ||||||
| Waste Connections, Inc.* | 69,400 | 1,789,132 | ||||||
| 10,092,146 | ||||||||
Communications Equipment 1.6% | ||||||||
| 3Com Corp.* | 336,105 | 1,361,225 | ||||||
| ADC Telecommunications, Inc.* | 83,925 | 617,688 | ||||||
| ADTRAN, Inc. | 47,459 | 1,003,758 | ||||||
| Avocent Corp.* | 39,406 | 569,023 | ||||||
| CommScope, Inc.* | 61,909 | 1,553,916 | ||||||
| F5 Networks, Inc.* | 69,024 | 1,882,284 | ||||||
| Palm, Inc.* (a) | 114,800 | 1,204,252 | ||||||
| Plantronics, Inc. | 43,000 | 547,820 | ||||||
76 Semiannual Report 2009
Common Stocks (continued) | ||||||||
Shares | Market Value | |||||||
Communications Equipment (continued) | ||||||||
| Polycom, Inc.* | 72,702 | $ | 1,355,165 | |||||
| 10,095,131 | ||||||||
Computers & Peripherals 1.2% | ||||||||
| Diebold, Inc. | 58,133 | 1,536,455 | ||||||
| Imation Corp. | 26,533 | 265,330 | ||||||
| NCR Corp.* | 137,460 | 1,395,219 | ||||||
| Western Digital Corp.* | 193,500 | 4,551,120 | ||||||
| 7,748,124 | ||||||||
Construction & Engineering 2.4% | ||||||||
| Aecom Technology Corp.* | 79,200 | 2,037,816 | ||||||
| Dycom Industries, Inc.* | 34,700 | 292,174 | ||||||
| Granite Construction, Inc. | 28,560 | 1,126,692 | ||||||
| KBR, Inc. | 140,710 | 2,197,890 | ||||||
| Quanta Services, Inc.* | 169,510 | 3,852,962 | ||||||
| Shaw Group, Inc. (The)* | 72,665 | 2,436,458 | ||||||
| URS Corp. | 73,900 | 3,256,034 | ||||||
| 15,200,026 | ||||||||
Construction Materials 0.5% | ||||||||
| Martin Marietta Materials, Inc. | 35,964 | 3,022,055 | ||||||
Consumer Finance 0.2% (a) | ||||||||
| AmeriCredit Corp.* | 114,320 | 1,162,634 | ||||||
Containers & Packaging 1.2% | ||||||||
| AptarGroup, Inc. | 58,900 | 1,827,667 | ||||||
| Greif, Inc., Class A | 29,700 | 1,344,519 | ||||||
| Packaging Corp. of America | 89,060 | 1,413,382 | ||||||
| Sonoco Products Co. | 86,700 | 2,116,347 | ||||||
| Temple-Inland, Inc. | 92,510 | 1,104,570 | ||||||
| 7,806,485 | ||||||||
Distributors 0.3% | ||||||||
| LKQ Corp. | 121,700 | 2,066,466 | ||||||
Diversified Consumer Services 2.3% | ||||||||
| Brink’s Home Security Holdings, Inc. | 35,780 | 951,032 | ||||||
| Career Education Corp. | 63,549 | 1,400,620 | ||||||
| Corinthian Colleges, Inc.* | 74,980 | 1,154,692 | ||||||
| DeVry, Inc. | 53,500 | 2,276,960 | ||||||
| ITT Educational Services, Inc. | 27,340 | 2,755,052 | ||||||
| Matthews International Corp., Class A | 26,910 | 842,821 | ||||||
| Regis Corp. | 38,020 | 727,703 | ||||||
| Service Corp. International | 224,700 | 1,017,891 | ||||||
| Sotheby’s (a) | 58,200 | 675,702 | ||||||
| Strayer Education, Inc. | 12,240 | 2,318,379 | ||||||
| 14,120,852 | ||||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Cincinnati Bell, Inc.* | 188,800 | 526,752 | ||||||
Electric Utilities 1.7% | ||||||||
| Cleco Corp. | 53,700 | 1,132,533 | ||||||
| DPL, Inc. | 100,857 | 2,262,223 | ||||||
| Great Plains Energy, Inc. | 103,658 | 1,499,931 | ||||||
| Hawaiian Electric Industries, Inc. | 78,800 | 1,224,552 | ||||||
| IDACORP, Inc. | 40,100 | 961,197 | ||||||
| NV Energy, Inc. | 203,620 | 2,087,105 | ||||||
| Westar Energy, Inc. | 94,350 | 1,653,955 | ||||||
| 10,821,496 | ||||||||
Electrical Equipment 1.7% | ||||||||
| Ametek, Inc. | 92,850 | 2,990,699 | ||||||
| Hubbell, Inc., Class B | 49,000 | 1,626,800 | ||||||
| Roper Industries, Inc. | 78,050 | 3,558,299 | ||||||
| Thomas & Betts Corp. | 46,348 | 1,442,350 | ||||||
| Woodward Governor Co. | 47,800 | 954,088 | ||||||
| 10,572,236 | ||||||||
Electronic Equipment & Instruments 2.3% | ||||||||
| Arrow Electronics, Inc. | 103,733 | 2,358,888 | ||||||
| Avnet, Inc.* | 130,478 | 2,856,164 | ||||||
| Ingram Micro, Inc., Class A | 140,400 | 2,038,608 | ||||||
| Itron, Inc. | 32,000 | 1,472,000 | ||||||
| National Instruments Corp. | 48,530 | 1,069,601 | ||||||
| Tech Data Corp. | 43,443 | 1,250,724 | ||||||
| Trimble Navigation Ltd. | 103,500 | 2,219,040 | ||||||
| Vishay Intertechnology, Inc. | 164,030 | 962,856 | ||||||
| 14,227,881 | ||||||||
Energy Equipment & Services 3.2% | ||||||||
| Exterran Holdings, Inc. | 53,585 | 1,106,530 | ||||||
| FMC Technologies, Inc. | 109,324 | 3,742,161 | ||||||
| Helix Energy Solutions Group, Inc. | 82,100 | 746,289 | ||||||
| Helmerich & Payne, Inc. | 91,600 | 2,823,112 | ||||||
| Oceaneering International, Inc. | 47,300 | 2,155,461 | ||||||
| Patterson-UTI Energy, Inc. | 133,140 | 1,692,209 | ||||||
| Pride International, Inc. | 150,928 | 3,426,066 | ||||||
| Superior Energy Services, Inc. | 67,890 | 1,304,167 | ||||||
| Tidewater, Inc. | 44,777 | 1,936,605 | ||||||
| Unit Corp. | 41,100 | 1,121,619 | ||||||
| 20,054,219 | ||||||||
Food & Staples Retailing 0.4% | ||||||||
| BJ’s Wholesale Club, Inc.* | 47,157 | 1,572,214 | ||||||
| Ruddick Corp. | 34,400 | 882,704 | ||||||
| 2,454,918 | ||||||||
Food Products 1.3% | ||||||||
| Corn Products International, Inc. | 64,990 | 1,553,261 | ||||||
| Flowers Foods, Inc. | 68,800 | 1,589,280 | ||||||
| Lancaster Colony Corp. | 17,300 | 757,740 | ||||||
| Ralcorp Holdings, Inc.* | 49,200 | 2,812,272 | ||||||
2009 Semiannual Report 77
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Mid Cap Market Index Fund (Continued)
Common Stocks (continued) | ||||||||
Shares | Market Value | |||||||
Food Products (continued) | ||||||||
| Smithfield Foods, Inc. | 103,310 | $ | 892,598 | |||||
| Tootsie Roll Industries, Inc. | 21,933 | 534,069 | ||||||
| 8,139,220 | ||||||||
Health Care Equipment & Supplies 3.9% | ||||||||
| Beckman Coulter, Inc. | 54,960 | 2,888,697 | ||||||
| Edwards Lifesciences Corp. | 48,600 | 3,080,268 | ||||||
| Gen-Probe, Inc. | 45,500 | 2,191,280 | ||||||
| Hill-Rom Holdings, Inc. | 54,965 | 713,446 | ||||||
| Hologic, Inc. | 222,898 | 3,312,264 | ||||||
| IDEXX Laboratories, Inc. (a) | 51,400 | 2,020,020 | ||||||
| Immucor, Inc.* | 60,700 | 988,803 | ||||||
| Kinetic Concepts, Inc.* | 47,800 | 1,183,528 | ||||||
| Masimo Corp.* | 41,900 | 1,210,910 | ||||||
| ResMed, Inc. | 65,700 | 2,526,165 | ||||||
| STERIS Corp. | 50,780 | 1,223,798 | ||||||
| Teleflex, Inc. | 34,420 | 1,479,372 | ||||||
| Thoratec Corp.* | 49,000 | 1,423,940 | ||||||
| 24,242,491 | ||||||||
Health Care Providers & Services 3.1% | ||||||||
| Community Health Systems, Inc. | 79,577 | 1,817,539 | ||||||
| Health Management Associates, Inc., Class A * | 214,600 | 1,002,182 | ||||||
| Health Net, Inc. | 90,142 | 1,301,650 | ||||||
| Henry Schein, Inc. | 77,674 | 3,187,741 | ||||||
| Kindred Healthcare, Inc.* | 26,420 | 343,988 | ||||||
| LifePoint Hospitals, Inc. | 45,256 | 1,169,868 | ||||||
| Lincare Holdings, Inc. | 64,663 | 1,560,318 | ||||||
| Omnicare, Inc. | 90,600 | 2,329,326 | ||||||
| Owens & Minor, Inc. | 36,000 | 1,248,480 | ||||||
| Psychiatric Solutions, Inc.* | 48,600 | 942,354 | ||||||
| Universal Health Services, Inc., Class B | 43,055 | 2,169,972 | ||||||
| VCA Antech, Inc. | 73,627 | 1,842,148 | ||||||
| WellCare Health Plans, Inc. | 36,650 | 550,116 | ||||||
| 19,465,682 | ||||||||
Health Care Technology 0.5% (a) | ||||||||
| Cerner Corp. | 58,640 | 3,154,832 | ||||||
Hotels, Restaurants & Leisure 1.8% | ||||||||
| Bob Evans Farms, Inc. | 27,029 | 655,453 | ||||||
| Boyd Gaming Corp. | 50,200 | 461,338 | ||||||
| Brinker International, Inc. | 88,630 | 1,570,524 | ||||||
| Cheesecake Factory, Inc. (The)* | 51,950 | 902,371 | ||||||
| Chipotle Mexican Grill, Inc., Class A (a) | 28,630 | 2,321,607 | ||||||
| International Speedway Corp., Class A | 24,400 | 577,792 | ||||||
| Life Time Fitness, Inc.* (a) | 30,770 | 577,245 | ||||||
| Panera Bread Co., Class A (a) | 26,900 | 1,506,669 | ||||||
| Scientific Games Corp., Class A | 56,500 | 988,185 | ||||||
| Wendy’s/Arby’s Group, Inc., Class A | 363,375 | 1,816,875 | ||||||
| 11,378,059 | ||||||||
Household Durables 1.7% | ||||||||
| American Greetings Corp., Class A | 39,914 | 313,325 | ||||||
| Blyth, Inc. | 4,460 | 196,597 | ||||||
| M.D.C. Holdings, Inc. | 32,100 | 1,097,178 | ||||||
| Mohawk Industries, Inc. | 48,840 | 2,310,620 | ||||||
| NVR, Inc. | 4,944 | 2,498,549 | ||||||
| Ryland Group, Inc. | 37,267 | 771,800 | ||||||
| Toll Brothers, Inc.* | 112,818 | 2,285,693 | ||||||
| Tupperware Brands Corp. | 54,433 | 1,362,458 | ||||||
| 10,836,220 | ||||||||
Household Products 1.0% | ||||||||
| Church & Dwight Co., Inc. | 61,000 | 3,319,010 | ||||||
| Energizer Holdings, Inc. | 50,678 | 2,903,849 | ||||||
| 6,222,859 | ||||||||
Industrial Conglomerate 0.2% | ||||||||
| Carlisle Cos., Inc. | 52,980 | 1,205,295 | ||||||
Information Technology Services 3.4% | ||||||||
| Acxiom Corp. | 59,784 | 576,916 | ||||||
| Alliance Data Systems Corp.* (a) | 51,600 | 2,160,492 | ||||||
| Broadridge Financial Solutions, Inc. | 122,010 | 2,360,893 | ||||||
| DST Systems, Inc. | 35,460 | 1,282,588 | ||||||
| Gartner, Inc.* | 52,080 | 703,601 | ||||||
| Global Payments, Inc.* | 69,870 | 2,240,032 | ||||||
| Hewitt Associates, Inc., Class A | 72,600 | 2,276,736 | ||||||
| Lender Processing Services, Inc. | 72,900 | 2,089,314 | ||||||
| Mantech International Corp., Class A* | 18,200 | 658,658 | ||||||
| Metavante Technologies, Inc. | 78,130 | 1,843,087 | ||||||
| NeuStar, Inc., Class A | 64,550 | 1,227,096 | ||||||
| SAIC, Inc. | 176,200 | 3,189,220 | ||||||
| SRA International, Inc., Class A* | 37,000 | 569,430 | ||||||
| 21,178,063 | ||||||||
Insurance 4.7% | ||||||||
| American Financial Group, Inc. | 65,300 | 1,147,974 | ||||||
| Arthur J. Gallagher & Co. | 83,500 | 1,877,080 | ||||||
| Brown & Brown, Inc. | 100,920 | 1,963,903 | ||||||
| Everest Re Group Ltd. | 53,400 | 3,985,776 | ||||||
| Fidelity National Financial, Inc., Class A | 201,453 | 3,652,343 | ||||||
| First American Corp. | 80,853 | 2,270,352 | ||||||
| Hanover Insurance Group, Inc. (The) | 44,500 | 1,334,110 | ||||||
| HCC Insurance Holdings, Inc. | 98,790 | 2,363,057 | ||||||
| Horace Mann Educators Corp. | 34,400 | 302,032 | ||||||
| Mercury General Corp. | 31,000 | 1,047,180 | ||||||
| Old Republic International Corp. | 203,587 | 1,907,610 | ||||||
| Protective Life Corp. | 60,700 | 520,199 | ||||||
| Reinsurance Group of America, Inc. | 63,100 | 2,005,949 | ||||||
| StanCorp Financial Group, Inc. | 42,600 | 1,168,518 | ||||||
| Unitrin, Inc. | 42,800 | 727,600 | ||||||
| W.R. Berkley Corp. | 120,766 | 2,887,515 | ||||||
| 29,161,198 | ||||||||
78 Semiannual Report 2009
Common Stocks (continued) | ||||||||
Shares | Market Value | |||||||
Internet & Catalog Retail 0.8% (a) | ||||||||
| Netflix, Inc.* | 36,030 | $ | 1,632,519 | |||||
| priceline.com, Inc. | 35,600 | 3,456,404 | ||||||
| 5,088,923 | ||||||||
Internet Software & Services 0.3% | ||||||||
| Digital River, Inc.* | 32,170 | 1,235,971 | ||||||
| ValueClick, Inc.* | 75,350 | 798,710 | ||||||
| 2,034,681 | ||||||||
Leisure Equipment & Products 0.1% | ||||||||
| Callaway Golf Co. | 56,800 | 428,840 | ||||||
Life Sciences Tools & Services 1.9% | ||||||||
| Affymetrix, Inc.* | 61,710 | 289,420 | ||||||
| Bio-Rad Laboratories, Inc., Class A* | 16,800 | 1,170,792 | ||||||
| Charles River Laboratories International, Inc. | 58,082 | 1,605,967 | ||||||
| Covance, Inc. | 54,880 | 2,155,687 | ||||||
| Mettler-Toledo International, Inc. | 29,200 | 1,799,596 | ||||||
| Pharmaceutical Product Development, Inc. | 102,400 | 2,008,064 | ||||||
| Techne Corp. | 32,635 | 1,867,375 | ||||||
| Varian, Inc.* | 25,460 | 840,689 | ||||||
| 11,737,590 | ||||||||
Machinery 4.5% | ||||||||
| AGCO Corp. | 79,800 | 1,939,140 | ||||||
| Bucyrus International, Inc. | 65,100 | 1,413,321 | ||||||
| Crane Co. | 42,666 | 985,158 | ||||||
| Donaldson Co., Inc. | 67,080 | 2,212,969 | ||||||
| Federal Signal Corp. | 41,700 | 324,009 | ||||||
| Graco, Inc. | 51,770 | 1,221,254 | ||||||
| Harsco Corp. | 69,800 | 1,922,990 | ||||||
| IDEX Corp. | 69,880 | 1,764,470 | ||||||
| Joy Global, Inc. | 88,832 | 2,265,216 | ||||||
| Kennametal, Inc. | 63,600 | 1,300,620 | ||||||
| Lincoln Electric Holdings, Inc. | 37,000 | 1,647,610 | ||||||
| Nordson Corp. | 30,000 | 1,088,400 | ||||||
| Oshkosh Corp. | 64,600 | 620,160 | ||||||
| Pentair, Inc. | 85,460 | 2,276,655 | ||||||
| SPX Corp. | 43,120 | 1,990,850 | ||||||
| Terex Corp. | 82,600 | 1,139,880 | ||||||
| Timken Co. | 73,900 | 1,188,312 | ||||||
| Trinity Industries, Inc. | 69,050 | 1,008,821 | ||||||
| Wabtec Corp. | 41,680 | 1,589,675 | ||||||
| 27,899,510 | ||||||||
Marine 0.2% | ||||||||
| Alexander & Baldwin, Inc. | 36,401 | 969,723 | ||||||
Media 1.0% | ||||||||
| DreamWorks Animation SKG, Inc., Class A | 66,800 | 1,603,868 | ||||||
Harte-Hanks, Inc. | 33,440 | 276,215 | ||||||
| John Wiley & Sons, Inc., Class A | 37,700 | 1,278,030 | ||||||
| Lamar Advertising Co., Class A (a) | 66,000 | 1,115,400 | ||||||
| Marvel Entertainment, Inc.* | 42,500 | 1,268,200 | ||||||
| Scholastic Corp. | 23,255 | 458,821 | ||||||
| 6,000,534 | ||||||||
Metals & Mining 1.4% | ||||||||
| Carpenter Technology Corp. | 38,260 | 790,834 | ||||||
| Cliffs Natural Resources, Inc. | 98,680 | 2,275,561 | ||||||
| Commercial Metals Co. | 97,700 | 1,453,776 | ||||||
| Reliance Steel & Aluminum Co. | 55,500 | 1,955,265 | ||||||
| Steel Dynamics, Inc. | 140,700 | 1,751,715 | ||||||
| Worthington Industries, Inc. | 52,087 | 776,096 | ||||||
| 9,003,247 | ||||||||
Multi-Utility 2.1% | ||||||||
| Alliant Energy Corp. | 96,100 | 2,148,796 | ||||||
| Black Hills Corp. | 33,600 | 667,968 | ||||||
| MDU Resources Group, Inc. | 159,725 | 2,806,369 | ||||||
| NSTAR | 92,820 | 2,915,476 | ||||||
| OGE Energy Corp. | 81,600 | 2,097,936 | ||||||
| PNM Resources, Inc. | 75,050 | 639,426 | ||||||
| Vectren Corp. | 70,460 | 1,562,098 | ||||||
| 12,838,069 | ||||||||
Multiline Retail 0.7% | ||||||||
| 99 Cents Only Stores* | 41,233 | 442,842 | ||||||
| Dollar Tree, Inc. | 78,828 | 3,337,578 | ||||||
| Saks, Inc. | 124,900 | 650,729 | ||||||
| 4,431,149 | ||||||||
Natural Gas Utility 2.0% | ||||||||
| AGL Resources, Inc. | 67,540 | 2,105,222 | ||||||
| Energen Corp. | 62,300 | 2,250,276 | ||||||
| National Fuel Gas Co. | 69,100 | 2,260,261 | ||||||
| ONEOK, Inc. | 91,456 | 2,393,403 | ||||||
| UGI Corp. | 93,900 | 2,154,066 | ||||||
| WGL Holdings, Inc. | 43,600 | 1,357,704 | ||||||
| 12,520,932 | ||||||||
Office Electronics 0.2% | ||||||||
| Zebra Technologies Corp., Class A | 52,642 | 1,118,643 | ||||||
Oil, Gas & Consumable Fuels 3.1% | ||||||||
| Arch Coal, Inc. | 124,194 | 1,734,990 | ||||||
| Bill Barrett Corp.* | 32,200 | 836,556 | ||||||
| Cimarex Energy Co. | 72,430 | 1,948,367 | ||||||
| Comstock Resources, Inc.* | 40,400 | 1,392,184 | ||||||
| Encore Acquisition Co. | 45,010 | 1,313,842 | ||||||
| Forest Oil Corp. | 84,360 | 1,349,760 | ||||||
| Frontier Oil Corp. | 90,330 | 1,148,094 | ||||||
| Mariner Energy, Inc. | 78,100 | 888,778 | ||||||
| Newfield Exploration Co. | 115,484 | 3,600,791 | ||||||
2009 Semiannual Report 79
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Mid Cap Market Index Fund (Continued)
Common Stocks (continued) | ||||||||
Shares | Market Value | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| Overseas Shipholding Group, Inc. | 20,830 | $ | 598,029 | |||||
| Patriot Coal Corp. (a) | 55,700 | 350,910 | ||||||
| Plains Exploration & Production Co. | 105,318 | 1,987,351 | ||||||
| Quicksilver Resources, Inc. (a) | 98,222 | 798,545 | ||||||
| Southern Union Co. | 107,800 | 1,715,098 | ||||||
| 19,663,295 | ||||||||
Paper & Forest Products 0.1% | ||||||||
| Louisiana-Pacific Corp. | 80,060 | 325,844 | ||||||
Personal Products 0.5% | ||||||||
| Alberto-Culver Co. | 74,160 | 1,653,026 | ||||||
| NBTY, Inc. | 48,200 | 1,248,862 | ||||||
| 2,901,888 | ||||||||
Pharmaceuticals 1.1% | ||||||||
| Endo Pharmaceuticals Holdings, Inc. | 101,500 | 1,678,810 | ||||||
| Medicis Pharmaceutical Corp., Class A | 49,300 | 792,251 | ||||||
| Perrigo Co. | 67,500 | 1,749,600 | ||||||
| Sepracor, Inc.* | 94,932 | 1,348,984 | ||||||
| Valeant Pharmaceuticals International* (a) | 71,400 | 1,196,664 | ||||||
| 6,766,309 | ||||||||
Professional Services 1.6% | ||||||||
| Corporate Executive Board Co. (The) | 29,900 | 516,672 | ||||||
| FTI Consulting, Inc.* | 44,300 | 2,431,184 | ||||||
| Kelly Services, Inc., Class A | 21,675 | 246,228 | ||||||
| Korn/Ferry International* | 39,400 | 417,246 | ||||||
| Manpower, Inc. | 68,160 | 2,937,014 | ||||||
| MPS Group, Inc.* | 81,140 | 652,366 | ||||||
| Navigant Consulting, Inc.* | 41,120 | 604,875 | ||||||
| Watson Wyatt Worldwide, Inc., Class A | 37,000 | 1,962,850 | ||||||
| 9,768,435 | ||||||||
Real Estate Investment Trusts 5.8% | ||||||||
| Alexandria Real Estate Equities, Inc. (a) | 33,980 | 1,239,590 | ||||||
| AMB Property Corp. | 120,367 | 2,297,806 | ||||||
| BRE Properties, Inc. Class A | 44,500 | 1,093,365 | ||||||
| Camden Property Trust | 46,400 | 1,258,832 | ||||||
| Corporate Office Properties Trust SBI MD | 46,200 | 1,411,872 | ||||||
| Cousins Properties, Inc. (a) | 38,920 | 328,874 | ||||||
| Duke Realty Corp. | 184,960 | 1,807,059 | ||||||
| Equity One, Inc. (a) | 31,700 | 471,696 | ||||||
| Essex Property Trust, Inc. | 23,300 | 1,479,317 | ||||||
| Federal Realty Investment Trust | 51,400 | 2,837,280 | ||||||
| Highwoods Properties, Inc. | 55,260 | 1,325,688 | ||||||
| Hospitality Properties Trust | 81,720 | 1,000,253 | ||||||
| Liberty Property Trust | 87,696 | 2,134,521 | ||||||
| Macerich Co. (The) (a) | 66,900 | 1,172,757 | ||||||
| Mack-Cali Realty Corp. | 57,750 | 1,551,165 | ||||||
| Nationwide Health Properties, Inc. | 88,480 | 2,184,571 | ||||||
| Omega Healthcare Investors, Inc. | 71,600 | 1,125,552 | ||||||
| Potlatch Corp. | 34,556 | 1,016,292 | ||||||
| Rayonier, Inc. | 68,680 | 2,652,422 | ||||||
| Realty Income Corp. (a) | 90,700 | 2,025,331 | ||||||
| Regency Centers Corp. | 69,200 | 2,591,540 | ||||||
| SL Green Realty Corp. | 49,800 | 879,468 | ||||||
| UDR, Inc. | 129,318 | 1,302,232 | ||||||
| Weingarten Realty Investors (a) | 90,300 | 1,403,262 | ||||||
| 36,590,745 | ||||||||
Real Estate Management & Development 0.2% | ||||||||
| Jones Lang LaSalle, Inc. | 30,060 | 970,036 | ||||||
Road & Rail 1.0% | ||||||||
| Con-way, Inc. | 40,140 | 994,669 | ||||||
| J.B. Hunt Transport Services, Inc. | 71,300 | 2,004,956 | ||||||
| Kansas City Southern | 79,600 | 1,213,900 | ||||||
| Landstar System, Inc. | 44,400 | 1,581,084 | ||||||
| Werner Enterprises, Inc. | 37,348 | 610,640 | ||||||
| YRC Worldwide, Inc.* (a) | 51,462 | 155,930 | ||||||
| 6,561,179 | ||||||||
Semiconductors & Semiconductor Equipment 2.1% | ||||||||
| Atmel Corp. | 387,400 | 1,487,616 | ||||||
| Cree, Inc. (a) | 76,925 | 2,106,976 | ||||||
| Fairchild Semiconductor International, Inc. | 109,120 | 672,179 | ||||||
| Integrated Device Technology, Inc. | 143,087 | 776,963 | ||||||
| International Rectifier Corp. | 62,800 | 1,060,064 | ||||||
| Intersil Corp., Class A | 105,802 | 1,227,303 | ||||||
| Lam Research Corp. | 109,115 | 3,042,126 | ||||||
| RF Micro Devices, Inc.* | 231,525 | 488,518 | ||||||
| Semtech Corp.* | 52,530 | 757,483 | ||||||
| Silicon Laboratories, Inc. | 38,940 | 1,295,144 | ||||||
| 12,914,372 | ||||||||
Software 2.7% | ||||||||
| ACI Worldwide, Inc.* | 30,700 | 530,189 | ||||||
| Advent Software, Inc.* (a) | 13,669 | 454,358 | ||||||
| ANSYS, Inc. | 77,800 | 2,148,836 | ||||||
| Cadence Design Systems, Inc. | 228,791 | 1,276,654 | ||||||
| FactSet Research Systems, Inc. (a) | 36,500 | 1,956,035 | ||||||
| Fair Isaac Corp. | 42,607 | 716,650 | ||||||
| Jack Henry & Associates, Inc. | 73,000 | 1,315,460 | ||||||
| Macrovision Solutions Corp.* | 71,120 | 1,438,046 | ||||||
| Mentor Graphics Corp.* | 81,200 | 545,664 | ||||||
| Parametric Technology Corp.* | 100,460 | 1,120,129 | ||||||
| Sybase, Inc.* | 71,174 | 2,417,069 | ||||||
| Synopsys, Inc. | 124,681 | 2,715,552 | ||||||
| Wind River Systems, Inc.* | 59,700 | 437,601 | ||||||
| 17,072,243 | ||||||||
Specialty Retail 4.8% | ||||||||
| Advance Auto Parts, Inc. | 82,600 | 3,613,750 | ||||||
| Aeropostale, Inc.* | 57,759 | 1,962,073 | ||||||
| American Eagle Outfitters, Inc. | 179,261 | 2,656,648 | ||||||
80 Semiannual Report 2009
Common Stocks (continued) | ||||||||
Shares | Market Value | |||||||
Specialty Retail (continued) | ||||||||
| AnnTaylor Stores Corp. | 49,689 | $ | 367,202 | |||||
| Barnes & Noble, Inc. | 32,173 | 840,359 | ||||||
| CarMax, Inc. (a) | 191,600 | 2,444,816 | ||||||
| Chico’s FAS, Inc.* | 154,043 | 1,176,888 | ||||||
| Coldwater Creek, Inc.* | 39,900 | 137,655 | ||||||
| Collective Brands, Inc.* | 55,395 | 804,335 | ||||||
| Dick’s Sporting Goods, Inc. | 73,960 | 1,405,240 | ||||||
| Foot Locker, Inc. | 134,700 | 1,601,583 | ||||||
| Guess?, Inc. | 52,400 | 1,364,496 | ||||||
| J Crew Group, Inc.* (a) | 45,100 | 776,171 | ||||||
| PetSmart, Inc. | 110,476 | 2,527,691 | ||||||
Rent-A-Center, Inc.* | 57,347 | 1,103,930 | ||||||
| Ross Stores, Inc. | 112,454 | 4,266,505 | ||||||
| Urban Outfitters, Inc.* | 98,916 | 1,927,873 | ||||||
| Williams-Sonoma, Inc. | 75,340 | 1,054,760 | ||||||
| 30,031,975 | ||||||||
Textiles, Apparel & Luxury Goods 0.8% | ||||||||
| Hanesbrands, Inc.* | 81,382 | 1,339,548 | ||||||
| Phillips-Van Heusen Corp. | 44,780 | 1,299,963 | ||||||
| Timberland Co. (The) Class A* | 40,500 | 657,720 | ||||||
| Under Armour, Inc., Class A* (a) | 31,700 | 746,218 | ||||||
| Warnaco Group, Inc. (The)* | 40,520 | 1,168,597 | ||||||
| 5,212,046 | ||||||||
Thrifts & Mortgage Finance 1.3% | ||||||||
| Astoria Financial Corp. | 70,820 | 584,973 | ||||||
| First Niagara Financial Group, Inc. | 128,100 | 1,734,474 | ||||||
| New York Community Bancorp, Inc. (a) | 299,864 | 3,391,462 | ||||||
| NewAlliance Bancshares, Inc. | 92,900 | 1,199,339 | ||||||
| Washington Federal, Inc. | 76,512 | 993,126 | ||||||
| 7,903,374 | ||||||||
Tobacco 0.1% | ||||||||
| Universal Corp. | 21,740 | 655,678 | ||||||
Trading Companies & Distributors 0.5% | ||||||||
| GATX Corp. | 42,300 | 1,273,653 | ||||||
| MSC Industrial Direct Co., Class A | 39,000 | 1,593,150 | ||||||
| United Rentals, Inc. | 52,715 | 319,453 | ||||||
| 3,186,256 | ||||||||
Water Utility 0.3% | ||||||||
| Aqua America, Inc. | 117,726 | 2,160,272 | ||||||
Wireless Telecommunication Services 0.5% | ||||||||
| Syniverse Holdings, Inc.* | 45,200 | 569,520 | ||||||
| Telephone & Data Systems, Inc. | 75,700 | 2,170,319 | ||||||
| Telephone & Data Systems, Inc. Special Shares | 12,100 | 312,664 | ||||||
| 3,052,503 | ||||||||
Total Common Stocks (cost $840,650,739) | 605,425,265 | |||||||
| Repurchase Agreements 8.9% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $6,271,999, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $6,397,407 | $ | 6,271,968 | 6,271,968 | |||||
| Morgan Stanley, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $37,777,344, collateralized by U.S. Government Agency Mortgages ranging 5.00% — 7.50%, maturing 07/01/19 — 11/01/47; total market value of $38,532,731 (b) | 37,777,187 | 37,777,187 | ||||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $11,845,933, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $12,082,802 | 11,845,884 | 11,845,884 | ||||||
Total Repurchase Agreements (cost $55,895,039) | 55,895,039 | |||||||
Total Investments (cost $896,545,778) (c) — 105.6% | 661,320,304 | |||||||
Liabilities in excess of other assets — (5.6)% | (34,856,552 | ) | ||||||
NET ASSETS — 100.0% | $ | 626,463,752 | ||||||
2009 Semiannual Report 81
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Mid Cap Market Index Fund (Continued)
| * | Denotes a non-income producing security. | |
| (a) | The security or a partial position of this security is on loan at April 30, 2009. The total value of securities on loan at April 30, 2009 was $36,786,102. | |
| (b) | The security was purchased with cash collateral held from securities on loan (See Note 2). The total value of this security as of April 30, 2009 was $37,777,187. | |
| (c) | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| Ltd | Limited |
At April 30, 2009, the Fund’s open futures contracts were as follows:
| Market Value | Net Unrealized | |||||||||||||
| Number of | Covered by | Appreciation/ | ||||||||||||
| Contracts | Long Contracts | Expiration | Contracts | (Depreciation) | ||||||||||
| 374 | S&P Mid 400 Emini | 06/19/09 | $ | 20,944,000 | $ | 2,522,896 | ||||||||
The accompanying notes are an integral part of these financial statements.
82 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide Mid Cap | |||||
| Market Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $840,650,739)* | $ | 605,425,265 | |||
| Repurchase agreements, at value and cost | 55,895,039 | ||||
| Total Investments | 661,320,304 | ||||
| Deposits with broker for futures | 2,496,200 | ||||
| Interest and dividends receivable | 397,854 | ||||
| Receivable for capital shares issued | 248,671 | ||||
| Receivable for variation margin on futures contract | 16,624 | ||||
| Prepaid expenses and other assets | 29,782 | ||||
| Total Assets | 664,509,435 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 109,048 | ||||
| Payable upon return of securities loaned (Note 2) | 37,777,187 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 32,737 | ||||
| Fund administration fees | 63,016 | ||||
| Distribution fees | 25,362 | ||||
| Trustee fees | 2,404 | ||||
| Compliance program costs (Note 3) | 8,400 | ||||
| Custodian fees | 1,562 | ||||
| Professional fees | 25,947 | ||||
| Other | 20 | ||||
| Total Liabilities | 38,045,683 | ||||
Net Assets | $ | 626,463,752 | |||
Represented by: | |||||
| Capital | $ | 885,726,664 | |||
| Accumulated net investment loss | (36,169 | ) | |||
| Accumulated net realized losses from investment and futures transactions | (26,524,165 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (235,225,474 | ) | |||
| Net unrealized appreciation/(depreciation) from futures | 2,522,896 | ||||
Net Assets | $ | 626,463,752 | |||
Net Assets: | |||||
| Class A Shares | $ | 124,912,772 | |||
| Class B Shares | 512,029 | ||||
| Class C Shares | 852,291 | ||||
| Class R2 Shares (a) | 686 | ||||
| Institutional Class Shares | 500,185,974 | ||||
| Total | $ | 626,463,752 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 13,584,152 | ||||
| Class B Shares | 56,672 | ||||
| Class C Shares | 94,940 | ||||
| Class R2 Shares (a) | 75 | ||||
| Institutional Class Shares | 53,980,855 | ||||
| Total | 67,716,694 | ||||
| * | Includes value of securities on loan of $36,786,102 (Note 2). |
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 83
Statement of Assets and Liabilities (Continued)
| Nationwide Mid Cap | |||||
| Market Index Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 9.20 | |||
| Class B Shares (b) | $ | 9.03 | |||
| Class C Shares (c) | $ | 8.98 | |||
| Class R2 Shares (a) | $ | 9.18 | (d) | ||
| Institutional 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 | $ | 9.76 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. | |
| (d) | The NAV reported above represents the traded NAV at April 30, 2009. |
The accompanying notes are an integral part of these financial statements.
84 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide Mid Cap | |||||
| Market Index Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 7,345 | |||
| Dividend income | 4,933,610 | ||||
| Income from securities lending (Note 2) | 94,837 | ||||
| Total Income | 5,035,792 | ||||
EXPENSES: | |||||
| Investment advisory fees | 582,351 | ||||
| Fund administration fees | 330,391 | ||||
| Distribution fees Class A | 136,075 | ||||
| Distribution fees Class B | 2,452 | ||||
| Distribution fees Class C | 3,895 | ||||
| Distribution fees Class R2 (a) | 2 | ||||
| Administrative services fees Class A | 45,935 | ||||
| Registration and filing fees | 43,567 | ||||
| Professional fees | 48,517 | ||||
| Printing fees | 16,686 | ||||
| Trustee fees | 18,483 | ||||
| Compliance program costs (Note 3) | 5,391 | ||||
| Custodian fees | 6,799 | ||||
| Other | 43,455 | ||||
| Total expenses before earnings credit and expenses reimbursed | 1,283,999 | ||||
| Earnings credit (Note 5) | (2,272 | ) | |||
| Expenses reimbursed by adviser | (247,298 | ) | |||
| Net Expenses | 1,034,429 | ||||
NET INVESTMENT INCOME | 4,001,363 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (20,926,677 | ) | |||
| Net realized losses from futures transactions | (3,593,272 | ) | |||
| Net realized losses from investment and futures transactions | (24,519,949 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 19,356,420 | ||||
| Net change in unrealized appreciation/(depreciation) from futures | 4,399,149 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 23,755,569 | ||||
| Net realized/unrealized losses from investments and futures | (764,380 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,236,983 | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 85
Statements of Changes in Net Assets
| Nationwide Mid Cap Market Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 4,001,363 | $ | 7,829,684 | ||||||
| Net realized gains (losses) from investment and futures transactions | (24,519,949 | ) | 31,513,557 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 23,755,569 | (367,491,161 | ) | |||||||
| Change in net assets resulting from operations | 3,236,983 | (328,147,920 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (838,323 | ) | (1,036,665 | ) | ||||||
| Class B | (2,428 | ) | (1,002 | ) | ||||||
| Class C | (4,034 | ) | (1,655 | ) | ||||||
| Class R2 (a) | (5 | ) | (5 | ) | ||||||
| Institutional Class | (4,133,827 | ) | (5,954,461 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (6,382,649 | ) | (8,307,848 | ) | ||||||
| Class B | (30,189 | ) | (38,273 | ) | ||||||
| Class C | (49,014 | ) | (53,796 | ) | ||||||
| Class R2 (a) | (36 | ) | (42 | ) | ||||||
| Institutional Class | (22,882,577 | ) | (25,633,488 | ) | ||||||
| Change in net assets from shareholder distributions | (34,323,082 | ) | (41,027,235 | ) | ||||||
| Change in net assets from capital transactions | 93,060,318 | (12,455,845 | ) | |||||||
| Change in net assets | 61,974,219 | (381,631,000 | ) | |||||||
Net Assets: | ||||||||||
| Beginning of period | 564,489,533 | 946,120,533 | ||||||||
| End of period | $ | 626,463,752 | $ | 564,489,533 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (36,169 | ) | $ | 941,085 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 12,918,784 | $ | 20,631,612 | ||||||
| Dividends reinvested | 7,098,133 | 9,165,065 | ||||||||
| Cost of shares redeemed (b) | (11,380,129 | ) | (39,773,394 | ) | ||||||
| Total Class A | 8,636,788 | (9,976,717 | ) | |||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 9,471 | 41,801 | ||||||||
| Dividends reinvested | 26,836 | 34,376 | ||||||||
| Cost of shares redeemed | (59,200 | ) | (102,705 | ) | ||||||
| Total Class B | (22,893 | ) | (26,528 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 108,118 | 374,648 | ||||||||
| Dividends reinvested | 33,606 | 32,405 | ||||||||
| Cost of shares redeemed | (76,649 | ) | (225,347 | ) | ||||||
| Total Class C | 65,075 | 181,706 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
86 Semiannual Report 2009
| Nationwide Mid Cap Market Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | – | $ | – | ||||||
| Dividends reinvested | 41 | 48 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class R2 | 41 | 48 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 83,905,310 | 122,549,070 | ||||||||
| Dividends reinvested | 27,016,364 | 31,587,862 | ||||||||
| Cost of shares redeemed | (26,540,367 | ) | (156,771,286 | ) | ||||||
| Total Institutional Class | 84,381,307 | (2,634,354 | ) | |||||||
| Change in net assets from capital transactions: | $ | 93,060,318 | $ | (12,455,845 | ) | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,573,538 | 1,494,978 | ||||||||
| Reinvested | 834,201 | 612,377 | ||||||||
| Redeemed | (1,382,182 | ) | (2,896,769 | ) | ||||||
| Total Class A Shares | 1,025,557 | (789,414 | ) | |||||||
Class B Shares | ||||||||||
| Issued | 1,134 | 3,018 | ||||||||
| Reinvested | 3,202 | 2,319 | ||||||||
| Redeemed | (7,035 | ) | (7,827 | ) | ||||||
| Total Class B Shares | (2,699 | ) | (2,490 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 12,804 | 27,053 | ||||||||
| Reinvested | 4,034 | 2,200 | ||||||||
| Redeemed | (10,107 | ) | (17,492 | ) | ||||||
| Total Class C Shares | 6,731 | 11,761 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 5 | 3 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class R2 Shares | 5 | 3 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 10,035,183 | 8,935,502 | ||||||||
| Reinvested | 3,161,470 | 2,103,014 | ||||||||
| Redeemed | (3,317,432 | ) | (10,781,477 | ) | ||||||
| Total Institutional Class Shares | 9,879,221 | 257,039 | ||||||||
| Total change in shares: | 10,908,815 | (523,101 | ) | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .88 | 0 | .05 | (0 | .15) | (0 | .10) | (0 | .07) | (0 | .51) | (0 | .58) | – | $ | 9 | .20 | (0 | .55%) | $ | 124,912,772 | 0 | .65% | 1 | .27% | 0 | .75% | 12 | .94% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 16 | .40 | 0 | .10 | (5 | .91) | (5 | .81) | (0 | .08) | (0 | .63) | (0 | .71) | – | $ | 9 | .88 | (36 | .87%) | $ | 124,032,623 | 0 | .69% | 0 | .71% | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .71 | 0 | .02 | (0 | .15) | (0 | .13) | (0 | .04) | (0 | .51) | (0 | .55) | – | $ | 9 | .03 | (0 | .87%) | $ | 512,029 | 1 | .32% | 0 | .65% | 1 | .41% | 12 | .94% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 16 | .18 | 0 | .03 | (5 | .84) | (5 | .81) | (0 | .02) | (0 | .63) | (0 | .65) | – | $ | 9 | .72 | (37 | .29%) | $ | 576,888 | 1 | .32% | 0 | .08% | 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% | ||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .66 | 0 | .02 | (0 | .15) | (0 | .13) | (0 | .04) | (0 | .51) | (0 | .55) | – | $ | 8 | .98 | (0 | .85%) | $ | 852,291 | 1 | .32% | 0 | .63% | 1 | .41% | 12 | .94% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 16 | .09 | 0 | .01 | (5 | .79) | (5 | .78) | (0 | .02) | (0 | .63) | (0 | .65) | – | $ | 9 | .66 | (37 | .31%) | $ | 852,181 | 1 | .32% | 0 | .05% | 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 R2 Shares (f) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .88 | 0 | .04 | (0 | .16) | (0 | .12) | (0 | .07) | (0 | .51) | (0 | .58) | – | $ | 9 | .18 | (0 | .70%) | $ | 686 | 0 | .92% | 1 | .02% | 1 | .08% | 12 | .94% | |||||||||||||||||||||||||||||||||||||||||||
| 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 | .74% | 0 | .69% | 29 | .96% | |||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (g) | $ | 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% | |||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–”are zero or have been rounded to zero. (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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. (g) For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
88 Semiannual Report 2009
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .96 | 0 | .07 | (0 | .16) | (0 | .09) | (0 | .09) | (0 | .51) | (0 | .60) | – | $ | 9 | .27 | (0 | .41%) | $ | 500,185,974 | 0 | .32% | 1 | .57% | 0 | .41% | 12 | .94% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 16 | .53 | 0 | .15 | (5 | .96) | (5 | .81) | (0 | .14) | (0 | .63) | (0 | .77) | – | $ | 9 | .95 | (36 | .69%) | $ | 439,027,150 | 0 | .32% | 1 | .09% | 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% | |||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (g) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual 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 semiannual period ended April 30, 2009, the Nationwide S&P 500 Index Fund (Class A at NAV) registered −8.80% versus −8.53% for its benchmark, the S&P 500 Index. For broader comparison, the average return for the Fund’s Lipper peer category of S&P 500 Index Objective Funds (consisting of 179 funds as of April 30, 2009) was −8.69% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The sectors represented in the S&P 500 Index posted mixed results for the reporting period. Four of the 10 sectors within the benchmark index recorded positive returns. Information technology led the way, advancing 5.61%, followed by consumer discretionary, with 4.10%, telecommunications services, with 3.44%, and materials, with 0.22%. The strongest performers among individual stocks within the index were Ford Motor Co.; AutoNation, Inc.; Sun Microsystems, Inc.; Whole Foods Market, Inc.; and D.R. Horton, Inc.
What areas of investment detracted from Fund performance?
By contrast, the financials sector within the benchmark index posted the weakest results, registering −29.13% for the reporting period. Other laggards included industrials, with −12.56%, energy, with −10.30%, consumer staples, with −9.60%, utilities, with −9.44%, and health care, with −9.10%. Among individual stocks within the index, Citigroup Inc., Zions Bancorp, Huntington Bancshares Inc., Marshall & Ilsley Corp. and General Motors Corp. posted the lowest returns.
What is your outlook for the near term?
Increasingly, signs are pointing to a slowdown in the recession’s downside momentum. It is important to remember that this does not mean that the economy is set to recover. We do believe, however, that the period of peak weakness may be behind us. Reflation policy finally appears to be taking hold, and credit markets are beginning to thaw. Leading economic indicators also are starting to look better.
When the economy does begin to pick up, an event that we believe will occur in late 2009 or 2010, the recovery is likely to be subpar. Corporate earnings and financial markets most likely will continue to experience some volatility. Market breadth and volume have been strong since the current rally began, which suggests to us that upward momentum has increased to the point that it has become more difficult to derail the markets. In addition, signs of economic improvement, which provides a stronger fundamental base for the markets, have accompanied this current rally (unlike previous failed attempts).
We are not convinced that we are at the beginning of a new secular bull market, because a number of downside risks and a high degree of uncertainty remain. We do continue to believe, however, that stock prices will be higher one year from now than they are today.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Manager:
Debra L. Jelilian
Debra L. Jelilian
90 Semiannual Report 2009
| Fund Performance | Nationwide S&P 500 Index Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | -8.80% | -35.66% | -3.17% | -2.97% | |||||||||||||
| w/SC3 | -14.00% | -39.38% | -4.31% | -3.54% | ||||||||||||||
Class B1 | w/o SC2 | -9.08% | -36.08% | -3.87% | -3.59% | |||||||||||||
| w/SC4 | -13.58% | -39.23% | -4.23% | -3.59% | ||||||||||||||
Class C5 | w/o SC2 | -8.98% | -36.08% | -3.86% | -3.59% | |||||||||||||
| w/SC6 | -9.88% | -36.71% | -3.86% | -3.59% | ||||||||||||||
Class R28,9,10 | -8.78% | -35.77% | -3.26% | -3.01% | ||||||||||||||
Institutional Service Class1,8 | -8.75% | -35.61% | -3.16% | -2.97% | ||||||||||||||
Institutional Class7,8 | -8.64% | -35.48% | -2.90% | -2.69% | ||||||||||||||
Service Class1,8 | -8.78% | -35.78% | -3.31% | -3.13% | ||||||||||||||
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 | These returns for the period prior to the creation of a particular class include the performance of the Fund’s Local Fund Shares which are no longer offered by the Fund. 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 which are no longer offered by the Fund 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 which are no longer offered by the Fund. 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 R2 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 which are no longer offered by the Fund. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R2 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 R2 shares would have been lower. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||
| Expense | Expense | |||||
| Ratio* | Ratio* | |||||
| Class A | 0.52% | 0.48% | ||||
| Class B | 1.27% | 1.23% | ||||
| Class C | 1.27% | 1.23% | ||||
| Class R2 | 0.97% | 0.93% | ||||
| Institutional Service Class | 0.52% | 0.48% | ||||
| Institutional Class | 0.27% | 0.23% | ||||
| Service Class | 0.67% | 0.63% | ||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 S&P 500 Index Fund, the S&P 500® Index(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 04/30/09. 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 Index is an unmanaged 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. | |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 91
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide S&P 500 Index Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 912.04 | 2.27 | 0.48 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.42 | 2.41 | 0.48 | |||||||||||||||
| Class B | Actual | 1,000.00 | 909.20 | 5.82 | 1.23 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.70 | 6.17 | 1.23 | |||||||||||||||
| Class C | Actual | 1,000.00 | 910.17 | 5.83 | 1.23 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.70 | 6.18 | 1.23 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 912.21 | 3.57 | 0.75 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.06 | 3.78 | 0.75 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 912.51 | 2.20 | 0.46 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.50 | 2.33 | 0.46 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 913.63 | 1.09 | 0.23 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,023.65 | 1.15 | 0.23 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 912.19 | 3.08 | 0.65 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.57 | 3.26 | 0.65 | |||||||||||||||
| 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 to Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
92 Semiannual Report 2009
| Portfolio Summary | Nationwide S&P 500 Index Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 94 | .7% | ||
| Repurchase Agreements | 6 | .3% | ||
| Liabilities in excess of other assets | (1 | .0)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Oil, Gas & Consumable Fuels | 10 | .2% | ||
| Pharmaceuticals | 6 | .8% | ||
| Computers & Peripherals | 5 | .1% | ||
| Software | 3 | .8% | ||
| Diversified Telecommunication Services | 3 | .2% | ||
| Food & Staples Retailing | 3 | .2% | ||
| Diversified Financial Services | 3 | .0% | ||
| Communications Equipment | 3 | .0% | ||
| Aerospace & Defense | 2 | .7% | ||
| Capital Markets | 2 | .5% | ||
| Other Industries* | 56 | .5% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Exxon Mobil Corp. | 4 | .1% | ||
| Microsoft Corp. | 1 | .9% | ||
| AT&T, Inc. | 1 | .9% | ||
| Procter & Gamble Co. (The) | 1 | .8% | ||
| Johnson & Johnson | 1 | .8% | ||
| International Business Machines Corp. | 1 | .7% | ||
| General Electric Co. | 1 | .7% | ||
| Chevron Corp. | 1 | .7% | ||
| JPMorgan Chase & Co. | 1 | .6% | ||
| Cisco Systems, Inc. | 1 | .4% | ||
| Other Holdings* | 80 | .4% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 93
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide S&P 500 Index Fund
| Common Stocks 94.7% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 2.7% | ||||||||
| Boeing Co. | 153,671 | $ | 6,154,524 | |||||
| General Dynamics Corp. | 81,762 | 4,224,642 | ||||||
| Goodrich Corp. | 26,251 | 1,162,394 | ||||||
| Honeywell International, Inc. | 155,669 | 4,858,429 | ||||||
| ITT Corp. | 38,560 | 1,581,346 | ||||||
| L-3 Communications Holdings, Inc. | 25,138 | 1,914,259 | ||||||
| Lockheed Martin Corp. | 70,322 | 5,522,387 | ||||||
| Northrop Grumman Corp. | 69,276 | 3,349,495 | ||||||
| Precision Castparts Corp. | 29,600 | 2,215,856 | ||||||
| Raytheon Co. | 86,187 | 3,898,238 | ||||||
| Rockwell Collins, Inc. | 33,241 | 1,274,792 | ||||||
| United Technologies Corp. | 199,456 | 9,741,431 | ||||||
| 45,897,793 | ||||||||
Air Freight & Logistics 1.1% | ||||||||
| CH Robinson Worldwide, Inc. | 36,100 | 1,919,076 | ||||||
| Expeditors International of Washington, Inc. | 44,900 | 1,558,479 | ||||||
| FedEx Corp. | 65,902 | 3,687,876 | ||||||
| United Parcel Service, Inc., Class B | 210,716 | 11,028,875 | ||||||
| 18,194,306 | ||||||||
Airline 0.1% | ||||||||
| Southwest Airlines Co. | 155,176 | 1,083,128 | ||||||
Auto Components 0.2% | ||||||||
| Goodyear Tire & Rubber Co. (The)* | 50,921 | 559,622 | ||||||
| Johnson Controls, Inc. | 125,858 | 2,392,560 | ||||||
| 2,952,182 | ||||||||
Automobiles 0.3% | ||||||||
| Ford Motor Co.* | 600,500 | 3,590,990 | ||||||
| General Motors Corp. (a) | 132,256 | 253,932 | ||||||
| Harley-Davidson, Inc. (a) | 49,527 | 1,097,518 | ||||||
| 4,942,440 | ||||||||
Beverages 2.4% | ||||||||
| Brown-Forman Corp., Class B | 21,163 | 984,080 | ||||||
Coca-Cola Co. (The) | 421,217 | 18,133,392 | ||||||
Coca-Cola Enterprises, Inc. | 66,557 | 1,135,462 | ||||||
| Constellation Brands, Inc., Class A* | 40,900 | 474,031 | ||||||
| Dr Pepper Snapple Group, Inc.* | 53,300 | 1,103,843 | ||||||
| Molson Coors Brewing Co., Class B | 31,740 | 1,214,055 | ||||||
| Pepsi Bottling Group, Inc. | 28,421 | 888,725 | ||||||
| PepsiCo, Inc. | 329,374 | 16,389,650 | ||||||
| 40,323,238 | ||||||||
Biotechnology 1.8% | ||||||||
| Amgen, Inc.* | 218,848 | 10,607,563 | ||||||
| Biogen Idec, Inc.* | 62,972 | 3,044,066 | ||||||
| Celgene Corp.* | 97,300 | 4,156,656 | ||||||
| Cephalon, Inc.* | 14,600 | 957,906 | ||||||
| Genzyme Corp.* | 57,451 | 3,063,862 | ||||||
| Gilead Sciences, Inc.* | 192,800 | 8,830,240 | ||||||
| 30,660,293 | ||||||||
Building Products 0.0% | ||||||||
| Masco Corp. | 77,327 | 685,117 | ||||||
Capital Markets 2.5% | ||||||||
| Ameriprise Financial, Inc. | 46,351 | 1,221,349 | ||||||
| Bank of New York Mellon Corp. (The) | 243,211 | 6,197,016 | ||||||
| Charles Schwab Corp. (The) | 198,487 | 3,668,040 | ||||||
| E*Trade Financial Corp.* (a) | 130,122 | 186,074 | ||||||
| Federated Investors, Inc., Class B | 18,911 | 432,684 | ||||||
| Franklin Resources, Inc. | 32,071 | 1,939,654 | ||||||
| Goldman Sachs Group, Inc. (The) | 107,332 | 13,792,162 | ||||||
| Invesco Ltd. | 80,800 | 1,189,376 | ||||||
| Janus Capital Group, Inc. | 35,231 | 353,367 | ||||||
| Legg Mason, Inc. | 30,300 | 608,121 | ||||||
| Morgan Stanley | 227,442 | 5,376,729 | ||||||
| Northern Trust Corp. | 50,836 | 2,763,445 | ||||||
| State Street Corp. | 91,477 | 3,122,110 | ||||||
| T. Rowe Price Group, Inc. | 54,182 | 2,087,091 | ||||||
| 42,937,218 | ||||||||
Chemicals 1.9% | ||||||||
| Air Products & Chemicals, Inc. | 44,366 | 2,923,719 | ||||||
| CF Industries Holdings, Inc. | 10,100 | 727,705 | ||||||
| Dow Chemical Co. (The) | 195,590 | 3,129,440 | ||||||
| E.I. Du Pont de Nemours & Co. | 191,050 | 5,330,295 | ||||||
| Eastman Chemical Co. | 15,260 | 605,517 | ||||||
| Ecolab, Inc. | 35,511 | 1,368,949 | ||||||
| International Flavors & Fragrances, Inc. | 14,840 | 463,008 | ||||||
| Monsanto Co. | 115,980 | 9,845,542 | ||||||
| PPG Industries, Inc. | 34,806 | 1,533,204 | ||||||
| Praxair, Inc. | 65,032 | 4,852,038 | ||||||
| Sigma-Aldrich Corp. | 26,350 | 1,155,184 | ||||||
| 31,934,601 | ||||||||
Commercial Banks 2.2% | ||||||||
| BB&T Corp.(a) | 118,473 | 2,765,160 | ||||||
| Comerica, Inc. | 32,426 | 680,297 | ||||||
| Fifth Third Bancorp | 126,804 | 519,896 | ||||||
| First Horizon National Corp. | 44,754 | 515,119 | ||||||
| Huntington Bancshares, Inc. (a) | 83,420 | 232,742 | ||||||
| KeyCorp | 104,772 | 644,348 | ||||||
| M&T Bank Corp. (a) | 16,461 | 863,379 | ||||||
| Marshall & Ilsley Corp. | 54,666 | 315,969 | ||||||
| PNC Financial Services Group, Inc. | 90,655 | 3,599,004 | ||||||
| Regions Financial Corp. (a) | 145,285 | 652,330 | ||||||
| SunTrust Banks, Inc. | 75,526 | 1,090,595 | ||||||
| U.S. Bancorp | 371,503 | 6,768,785 | ||||||
94 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| Wells Fargo & Co. | 896,835 | $ | 17,945,668 | |||||
| Zions Bancorporation (a) | 25,320 | 276,748 | ||||||
| 36,870,040 | ||||||||
Commercial Services & Supplies 0.5% | ||||||||
| Avery Dennison Corp. | 21,216 | 609,748 | ||||||
| Cintas Corp. | 27,601 | 708,241 | ||||||
| Iron Mountain, Inc.* | 37,700 | 1,074,073 | ||||||
| Pitney Bowes, Inc. | 43,296 | 1,062,484 | ||||||
| Republic Services, Inc. | 67,399 | 1,415,379 | ||||||
| RR Donnelley & Sons Co. | 43,106 | 502,185 | ||||||
| Stericycle, Inc.* | 18,000 | 847,440 | ||||||
| Waste Management, Inc. | 104,113 | 2,776,694 | ||||||
| 8,996,244 | ||||||||
Communications Equipment 3.0% | ||||||||
| Ciena Corp.* | 20,658 | 246,863 | ||||||
| Cisco Systems, Inc.* | 1,235,309 | 23,866,170 | ||||||
| Corning, Inc. | 329,122 | 4,811,764 | ||||||
| Harris Corp. | 28,300 | 865,414 | ||||||
| JDS Uniphase Corp.* | 44,194 | 203,734 | ||||||
| Juniper Networks, Inc.* | 110,700 | 2,396,655 | ||||||
| Motorola, Inc. | 475,428 | 2,629,117 | ||||||
| QUALCOMM, Inc. | 349,078 | 14,772,981 | ||||||
| Tellabs, Inc.* | 81,752 | 428,380 | ||||||
| 50,221,078 | ||||||||
Computers & Peripherals 5.1% | ||||||||
| Apple, Inc.* | 188,474 | 23,715,684 | ||||||
| Dell, Inc.* | 366,358 | 4,257,080 | ||||||
| EMC Corp.* | 427,887 | 5,361,424 | ||||||
| Hewlett-Packard Co. | 507,190 | 18,248,696 | ||||||
| International Business Machines Corp. | 283,910 | 29,302,351 | ||||||
| Lexmark International, Inc., Class A* | 17,901 | 351,218 | ||||||
| NetApp, Inc.* | 70,084 | 1,282,537 | ||||||
| QLogic Corp.* | 27,290 | 386,972 | ||||||
| SanDisk Corp.* | 47,900 | 752,988 | ||||||
| Seagate Technology* (b) | 5,600 | 0 | ||||||
| Sun Microsystems, Inc.* | 155,220 | 1,421,815 | ||||||
| Teradata Corp.* | 36,300 | 606,936 | ||||||
| 85,687,701 | ||||||||
Construction & Engineering 0.1% | ||||||||
| Fluor Corp. | 38,470 | 1,456,859 | ||||||
| Jacobs Engineering Group, Inc.* | 26,100 | 992,844 | ||||||
| 2,449,703 | ||||||||
Construction Materials 0.1% | ||||||||
| Vulcan Materials Co. | 23,376 | 1,111,529 | ||||||
Consumer Finance 0.5% | ||||||||
| American Express Co. | 247,857 | 6,250,953 | ||||||
| Capital One Financial Corp. | 82,986 | 1,389,186 | ||||||
| Discover Financial Services | 100,721 | 818,862 | ||||||
| SLM Corp.* | 98,022 | 473,446 | ||||||
| 8,932,447 | ||||||||
Containers & Packaging 0.2% | ||||||||
| Ball Corp. | 20,030 | 755,531 | ||||||
| Bemis Co., Inc. | 20,996 | 504,744 | ||||||
| Owens-Illinois, Inc.* | 35,100 | 856,089 | ||||||
| Pactiv Corp.* | 27,936 | 610,681 | ||||||
| Sealed Air Corp. | 30,294 | 577,404 | ||||||
| 3,304,449 | ||||||||
Distributors 0.1% | ||||||||
| Genuine Parts Co. | 33,516 | 1,138,203 | ||||||
Diversified Consumer Services 0.1% | ||||||||
| Apollo Group, Inc., Class A* | 22,626 | 1,424,307 | ||||||
| H&R Block, Inc. | 71,072 | 1,076,030 | ||||||
| 2,500,337 | ||||||||
Diversified Financial Services 3.0% | ||||||||
| Bank of America Corp. | 1,354,648 | 12,097,007 | ||||||
| CIT Group, Inc. | 76,000 | 168,720 | ||||||
| Citigroup, Inc. (a) | 1,142,588 | 3,484,893 | ||||||
| CME Group, Inc. | 14,048 | 3,109,525 | ||||||
| IntercontinentalExchange, Inc.* | 15,400 | 1,349,040 | ||||||
| JPMorgan Chase & Co. | 795,309 | 26,245,197 | ||||||
| Leucadia National Corp.* | 35,200 | 747,296 | ||||||
| Moody’s Corp. | 40,802 | 1,204,475 | ||||||
| Nasdaq OMX Group, Inc. (The)* | 29,100 | 559,593 | ||||||
| NYSE Euronext | 55,600 | 1,288,252 | ||||||
| 50,253,998 | ||||||||
Diversified Telecommunication Services 3.2% | ||||||||
| AT&T, Inc. | 1,247,113 | 31,951,035 | ||||||
| CenturyTel, Inc. | 21,776 | 591,218 | ||||||
| Embarq Corp. | 28,635 | 1,046,896 | ||||||
| Frontier Communications Corp. | 66,736 | 474,493 | ||||||
| Qwest Communications International, Inc. (a) | 307,530 | 1,196,292 | ||||||
| Verizon Communications, Inc. | 601,180 | 18,239,801 | ||||||
| Windstream Corp. | 94,682 | 785,861 | ||||||
| 54,285,596 | ||||||||
Electric Utilities 2.2% | ||||||||
| Allegheny Energy, Inc. | 35,496 | 920,056 | ||||||
| American Electric Power Co., Inc. | 98,897 | 2,608,903 | ||||||
| Duke Energy Corp. | 271,281 | 3,746,391 | ||||||
| Edison International | 69,032 | 1,968,102 | ||||||
| Entergy Corp. | 40,076 | 2,595,723 | ||||||
| Exelon Corp. | 139,298 | 6,425,817 | ||||||
| FirstEnergy Corp. | 63,900 | 2,613,510 | ||||||
2009 Semiannual Report 95
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide S&P 500 Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Electric Utilities (continued) | ||||||||
| FPL Group, Inc. | 86,532 | $ | 4,654,556 | |||||
| Northeast Utilities | 33,695 | 708,269 | ||||||
| Pepco Holdings, Inc. | 42,600 | 509,070 | ||||||
| Pinnacle West Capital Corp. | 21,925 | 600,307 | ||||||
| PPL Corp. | 78,662 | 2,352,780 | ||||||
| Progress Energy, Inc. | 58,251 | 1,987,524 | ||||||
| Southern Co. (The) | 164,649 | 4,755,063 | ||||||
| 36,446,071 | ||||||||
Electrical Equipment 0.4% | ||||||||
| Cooper Industries Ltd., Class A | 36,360 | 1,192,244 | ||||||
| Emerson Electric Co. | 160,864 | 5,475,811 | ||||||
| Rockwell Automation, Inc. | 29,676 | 937,465 | ||||||
| 7,605,520 | ||||||||
Electronic Equipment & Instruments 0.3% | ||||||||
| Agilent Technologies, Inc.* | 73,476 | 1,341,672 | ||||||
| Amphenol Corp., Class A | 36,900 | 1,248,696 | ||||||
| FLIR Systems, Inc.* | 31,400 | 696,452 | ||||||
| Jabil Circuit, Inc. | 36,641 | 296,792 | ||||||
| Molex, Inc. | 27,821 | 463,776 | ||||||
| Tyco Electronics Ltd. | 95,975 | 1,673,804 | ||||||
| 5,721,192 | ||||||||
Energy Equipment & Services 1.6% | ||||||||
| Baker Hughes, Inc. | 65,447 | 2,328,604 | ||||||
| BJ Services Co. | 61,892 | 859,680 | ||||||
| Cameron International Corp.* | 46,100 | 1,179,238 | ||||||
| Diamond Offshore Drilling, Inc. | 15,000 | 1,086,150 | ||||||
| ENSCO International, Inc. | 30,100 | 851,228 | ||||||
| Halliburton Co. | 189,924 | 3,840,263 | ||||||
| Nabors Industries Ltd.* | 59,954 | 911,900 | ||||||
| National Oilwell Varco, Inc.* | 88,388 | 2,676,389 | ||||||
| Rowan Cos., Inc. | 24,586 | 383,787 | ||||||
| Schlumberger Ltd. | 253,136 | 12,401,133 | ||||||
| Smith International, Inc. | 46,500 | 1,202,025 | ||||||
| 27,720,397 | ||||||||
Food & Staples Retailing 3.2% | ||||||||
| Costco Wholesale Corp. | 91,757 | 4,459,390 | ||||||
| CVS Caremark Corp. | 308,099 | 9,791,386 | ||||||
| Kroger Co. (The) | 138,109 | 2,985,917 | ||||||
| Safeway, Inc. | 89,982 | 1,777,144 | ||||||
| SUPERVALU, Inc. | 44,479 | 727,232 | ||||||
| SYSCO Corp. | 125,633 | 2,931,018 | ||||||
| Wal-Mart Stores, Inc. | 473,182 | 23,848,373 | ||||||
| Walgreen Co. | 208,825 | 6,563,370 | ||||||
| Whole Foods Market, Inc. (a) | 29,900 | 619,827 | ||||||
| 53,703,657 | ||||||||
Food Products 1.6% | ||||||||
| Archer-Daniels-Midland Co. | 135,843 | 3,344,455 | ||||||
| Campbell Soup Co. | 43,232 | 1,111,927 | ||||||
| ConAgra Foods, Inc. | 93,828 | 1,660,755 | ||||||
| Dean Foods Co.* | 32,700 | 676,890 | ||||||
| General Mills, Inc. | 70,062 | 3,551,443 | ||||||
| H.J. Heinz Co. | 66,657 | 2,294,334 | ||||||
| Hershey Co. (The) | 34,722 | 1,254,853 | ||||||
| Hormel Foods Corp. | 15,200 | 475,608 | ||||||
| J.M. Smucker Co. (The) | 24,900 | 981,060 | ||||||
| Kellogg Co. | 53,442 | 2,250,442 | ||||||
| Kraft Foods, Inc., Class A | 311,067 | 7,278,968 | ||||||
| McCormick & Co., Inc., Non-Voting Shares | 24,946 | 734,660 | ||||||
| Sara Lee Corp. | 148,299 | 1,233,848 | ||||||
| Tyson Foods, Inc., Class A | 63,500 | 669,290 | ||||||
| 27,518,533 | ||||||||
Health Care Equipment & Supplies 2.1% | ||||||||
| Baxter International, Inc. | 130,073 | 6,308,540 | ||||||
| Becton, Dickinson & Co. | 50,986 | 3,083,633 | ||||||
| Boston Scientific Corp.* | 317,918 | 2,673,690 | ||||||
| C.R. Bard, Inc. | 21,086 | 1,510,390 | ||||||
| Covidien Ltd. | 105,575 | 3,481,864 | ||||||
| DENTSPLY International, Inc. | 31,300 | 895,806 | ||||||
| Hospira, Inc.* | 31,846 | 1,046,778 | ||||||
| Intuitive Surgical, Inc.* (a) | 8,304 | 1,193,534 | ||||||
| Medtronic, Inc. | 236,706 | 7,574,592 | ||||||
| St. Jude Medical, Inc.* | 73,322 | 2,457,753 | ||||||
| Stryker Corp. | 50,777 | 1,965,578 | ||||||
| Varian Medical Systems, Inc.* | 26,100 | 870,957 | ||||||
| Zimmer Holdings, Inc.* | 47,246 | 2,078,352 | ||||||
| 35,141,467 | ||||||||
Health Care Providers & Services 2.0% | ||||||||
| Aetna, Inc. | 96,684 | 2,128,015 | ||||||
| AmerisourceBergen Corp. | 32,752 | 1,101,777 | ||||||
| Cardinal Health, Inc. | 75,397 | 2,547,665 | ||||||
| CIGNA Corp. | 57,683 | 1,136,932 | ||||||
| Coventry Health Care, Inc.* | 30,100 | 478,891 | ||||||
| DaVita, Inc.* | 21,800 | 1,010,866 | ||||||
| Express Scripts, Inc.* | 52,440 | 3,354,587 | ||||||
| Humana, Inc.* | 35,761 | 1,029,201 | ||||||
| Laboratory Corp. of America Holdings* | 22,700 | 1,456,205 | ||||||
| McKesson Corp. | 57,947 | 2,144,039 | ||||||
| Medco Health Solutions, Inc.* | 104,452 | 4,548,885 | ||||||
| Patterson Cos., Inc.* | 20,600 | 421,476 | ||||||
| Quest Diagnostics, Inc. | 33,272 | 1,707,852 | ||||||
| Tenet Healthcare Corp.* | 85,987 | 193,471 | ||||||
| UnitedHealth Group, Inc. | 257,318 | 6,052,119 | ||||||
| WellPoint, Inc.* | 106,302 | 4,545,473 | ||||||
| 33,857,454 | ||||||||
Health Care Technology 0.0% | ||||||||
| IMS Health, Inc. | 36,074 | 453,089 | ||||||
96 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Hotels, Restaurants & Leisure 1.5% | ||||||||
| Carnival Corp. | 92,663 | $ | 2,490,781 | |||||
| Darden Restaurants, Inc. | 29,176 | 1,078,637 | ||||||
| International Game Technology | 61,832 | 763,625 | ||||||
| Marriott International, Inc., Class A | 62,262 | 1,466,893 | ||||||
| McDonald’s Corp. | 235,741 | 12,562,638 | ||||||
| Starbucks Corp.* | 155,524 | 2,248,877 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 39,224 | 818,212 | ||||||
| Wyndham Worldwide Corp. | 40,029 | 467,539 | ||||||
| Wynn Resorts Ltd.* (a) | 12,900 | 506,067 | ||||||
| Yum! Brands, Inc. | 97,362 | 3,247,023 | ||||||
| 25,650,292 | ||||||||
Household Durables 0.4% | ||||||||
| Black & Decker Corp. | 12,765 | 514,430 | ||||||
| Centex Corp. | 27,581 | 301,736 | ||||||
| D.R. Horton, Inc. | 58,400 | 762,120 | ||||||
| Fortune Brands, Inc. | 31,786 | 1,249,508 | ||||||
| Harman International Industries, Inc. | 11,700 | 212,823 | ||||||
| KB Home | 16,030 | 289,662 | ||||||
| Leggett & Platt, Inc. | 33,501 | 481,074 | ||||||
| Lennar Corp., Class A | 31,067 | 302,593 | ||||||
| Newell Rubbermaid, Inc. | 58,242 | 608,629 | ||||||
| Pulte Homes, Inc. | 44,882 | 516,592 | ||||||
| Snap-on, Inc. | 10,870 | 368,710 | ||||||
| Stanley Works (The) | 16,580 | 630,537 | ||||||
| Whirlpool Corp. | 15,917 | 718,812 | ||||||
| 6,957,226 | ||||||||
Household Products 2.5% | ||||||||
| Clorox Co. | 29,486 | 1,652,690 | ||||||
| Colgate-Palmolive Co. | 106,108 | 6,260,372 | ||||||
| Kimberly-Clark Corp. | 87,587 | 4,304,025 | ||||||
| Procter & Gamble Co. (The) | 620,203 | 30,662,837 | ||||||
| 42,879,924 | ||||||||
Independent Power Producers & Energy Traders 0.1% | ||||||||
| AES Corp. (The)* | 141,193 | 998,235 | ||||||
| Constellation Energy Group, Inc. | 40,286 | 970,087 | ||||||
| Dynegy, Inc., Class A* | 114,003 | 202,925 | ||||||
| 2,171,247 | ||||||||
Industrial Conglomerates 2.2% | ||||||||
| 3M Co. | 146,889 | 8,460,806 | ||||||
| General Electric Co. | 2,234,832 | 28,270,625 | ||||||
| Textron, Inc. | 52,792 | 566,458 | ||||||
| 37,297,889 | ||||||||
Information Technology Services 1.0% | ||||||||
| Affiliated Computer Services, Inc., Class A* | 20,441 | 988,936 | ||||||
| Automatic Data Processing, Inc. | 106,878 | 3,762,106 | ||||||
| Cognizant Technology Solutions Corp., Class A* | 61,800 | 1,532,022 | ||||||
| Computer Sciences Corp.* | 31,781 | 1,174,626 | ||||||
| Convergys Corp.* | 25,382 | 256,612 | ||||||
| Fidelity National Information Services, Inc. | 39,900 | 712,215 | ||||||
| Fiserv, Inc.* | 33,666 | 1,256,415 | ||||||
| MasterCard, Inc., Class A | 15,336 | 2,813,389 | ||||||
| Paychex, Inc. | 68,052 | 1,838,084 | ||||||
| Total System Services, Inc. | 38,600 | 481,342 | ||||||
| Western Union Co. (The) | 150,352 | 2,518,396 | ||||||
| 17,334,143 | ||||||||
Insurance 2.2% | ||||||||
| Aflac, Inc. | 99,013 | 2,860,486 | ||||||
| Allstate Corp. (The) | 113,514 | 2,648,282 | ||||||
| American International Group, Inc. (a) | 572,666 | 790,279 | ||||||
| Aon Corp. | 57,927 | 2,444,519 | ||||||
| Assurant, Inc. | 24,700 | 603,668 | ||||||
| Chubb Corp. | 74,562 | 2,904,190 | ||||||
| Cincinnati Financial Corp. | 34,089 | 816,432 | ||||||
| Genworth Financial, Inc., Class A | 97,500 | 230,100 | ||||||
| Hartford Financial Services Group, Inc. | 69,771 | 800,273 | ||||||
| Lincoln National Corp. | 54,256 | 609,837 | ||||||
| Loews Corp. | 76,513 | 1,904,409 | ||||||
| Marsh & McLennan Cos., Inc. | 109,093 | 2,300,771 | ||||||
| MBIA, Inc.* (a) | 39,876 | 188,614 | ||||||
| MetLife, Inc. | 173,179 | 5,152,075 | ||||||
| Principal Financial Group, Inc. | 55,007 | 898,814 | ||||||
| Progressive Corp. (The)* | 143,300 | 2,189,624 | ||||||
| Prudential Financial, Inc. | 89,743 | 2,591,778 | ||||||
| Torchmark Corp. | 17,931 | 525,916 | ||||||
| Travelers Cos., Inc. (The) | 123,815 | 5,093,749 | ||||||
| Unum Group | 70,149 | 1,146,235 | ||||||
| XL Capital Ltd., Class A | 69,746 | 663,284 | ||||||
| 37,363,335 | ||||||||
Internet & Catalog Retail 0.4% | ||||||||
| Amazon.com, Inc.* | 68,000 | 5,475,360 | ||||||
| Expedia, Inc.* | 44,000 | 598,840 | ||||||
| 6,074,200 | ||||||||
Internet Software & Services 1.8% | ||||||||
| Akamai Technologies, Inc.* | 36,100 | 794,922 | ||||||
| eBay, Inc.* | 228,176 | 3,758,059 | ||||||
| Google, Inc., Class A* | 50,710 | 20,079,638 | ||||||
| VeriSign, Inc.* | 40,800 | 839,664 | ||||||
| Yahoo!, Inc.* | 295,148 | 4,217,665 | ||||||
| 29,689,948 | ||||||||
2009 Semiannual Report 97
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide S&P 500 Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Leisure Equipment & Products 0.1% | ||||||||
| Eastman Kodak Co. | 57,546 | $ | 175,515 | |||||
| Hasbro, Inc. | 26,521 | 707,050 | ||||||
| Mattel, Inc. | 75,223 | 1,125,336 | ||||||
| 2,007,901 | ||||||||
Life Sciences Tools & Services 0.4% | ||||||||
| Life Technologies Corp.* | 36,802 | 1,372,715 | ||||||
| Millipore Corp.* | 11,625 | 687,037 | ||||||
| PerkinElmer, Inc. | 24,796 | 361,278 | ||||||
| Thermo Fisher Scientific, Inc.* | 88,576 | 3,107,246 | ||||||
| Waters Corp.* | 20,671 | 913,038 | ||||||
| 6,441,314 | ||||||||
Machinery 1.5% | ||||||||
| Caterpillar, Inc. | 127,364 | 4,531,611 | ||||||
| Cummins, Inc. | 42,700 | 1,451,800 | ||||||
| Danaher Corp. | 53,947 | 3,152,663 | ||||||
| Deere & Co. | 89,492 | 3,692,440 | ||||||
| Dover Corp. | 39,056 | 1,202,144 | ||||||
| Eaton Corp. | 35,036 | 1,534,577 | ||||||
| Flowserve Corp. | 11,900 | 808,010 | ||||||
| Illinois Tool Works, Inc. | 82,594 | 2,709,083 | ||||||
| Ingersoll-Rand Co. Ltd., Class A | 67,568 | 1,470,955 | ||||||
| Manitowoc Co., Inc. (The) | 27,600 | 164,220 | ||||||
| PACCAR, Inc. | 76,791 | 2,721,473 | ||||||
| Pall Corp. | 24,791 | 654,730 | ||||||
| Parker Hannifin Corp. | 34,034 | 1,543,442 | ||||||
| 25,637,148 | ||||||||
Media 2.5% | ||||||||
| CBS Corp., Class B, Non-Voting | 142,837 | 1,005,573 | ||||||
| Comcast Corp., Class A | 609,662 | 9,425,375 | ||||||
| DIRECTV Group, Inc. (The)* (a) | 114,100 | 2,821,693 | ||||||
| Gannett Co., Inc. (a) | 48,076 | 187,977 | ||||||
| Interpublic Group of Cos., Inc.* | 100,278 | 627,740 | ||||||
| McGraw-Hill Cos., Inc. (The) | 66,602 | 2,008,050 | ||||||
| Meredith Corp. | 8,035 | 201,518 | ||||||
| New York Times Co. (The), Class A (a) | 27,206 | 146,368 | ||||||
| News Corp., Class A | 486,900 | 4,021,794 | ||||||
| Omnicom Group, Inc. | 65,882 | 2,073,307 | ||||||
| Scripps Networks Interactive, Inc., Class A | 17,900 | 491,176 | ||||||
| Time Warner Cable, Inc. | 78,991 | 2,545,880 | ||||||
| Time Warner, Inc. | 250,947 | 5,478,173 | ||||||
| Viacom, Inc., Class B* | 128,737 | 2,476,900 | ||||||
| Walt Disney Co. (The) | 392,940 | 8,605,386 | ||||||
| Washington Post Co. (The), Class B | 1,243 | 520,307 | ||||||
| 42,637,217 | ||||||||
Metals & Mining 0.8% | ||||||||
| AK Steel Holding Corp. | 24,800 | 322,648 | ||||||
| Alcoa, Inc. | 201,126 | 1,824,213 | ||||||
| Allegheny Technologies, Inc. | 20,675 | 676,693 | ||||||
| Freeport-McMoRan Copper & Gold, Inc.* | 87,114 | 3,715,412 | ||||||
| Newmont Mining Corp. | 103,532 | 4,166,128 | ||||||
| Nucor Corp. | 66,460 | 2,704,257 | ||||||
| Titanium Metals Corp. (a) | 18,000 | 122,220 | ||||||
| United States Steel Corp. (a) | 30,331 | 805,288 | ||||||
| 14,336,859 | ||||||||
Multi-Utility 1.3% | ||||||||
| Ameren Corp. | 44,356 | 1,021,075 | ||||||
| CenterPoint Energy, Inc. | 72,342 | 769,719 | ||||||
| CMS Energy Corp. | 49,156 | 590,855 | ||||||
| Consolidated Edison, Inc. | 57,426 | 2,132,227 | ||||||
| Dominion Resources, Inc. | 121,888 | 3,676,142 | ||||||
| DTE Energy Co. | 34,191 | 1,011,028 | ||||||
| Integrys Energy Group, Inc. | 16,609 | 438,644 | ||||||
| NiSource, Inc. | 59,658 | 655,641 | ||||||
| PG&E Corp. | 77,472 | 2,875,761 | ||||||
| Public Service Enterprise Group, Inc. | 107,122 | 3,196,520 | ||||||
| SCANA Corp. | 24,700 | 746,434 | ||||||
| Sempra Energy | 51,081 | 2,350,748 | ||||||
| TECO Energy, Inc. | 46,181 | 489,057 | ||||||
| Wisconsin Energy Corp. | 24,600 | 983,016 | ||||||
| Xcel Energy, Inc. | 94,187 | 1,736,808 | ||||||
| 22,673,675 | ||||||||
Multiline Retail 0.9% | ||||||||
| Big Lots, Inc.* | 17,851 | 493,402 | ||||||
| Family Dollar Stores, Inc. | 29,606 | 982,623 | ||||||
| J.C. Penney Co., Inc. | 47,081 | 1,444,916 | ||||||
| Kohl’s Corp.* | 64,497 | 2,924,939 | ||||||
| Macy’s, Inc. | 89,152 | 1,219,599 | ||||||
| Nordstrom, Inc. (a) | 33,792 | 764,713 | ||||||
| Sears Holdings Corp.* (a) | 11,761 | 734,710 | ||||||
| Target Corp. | 159,390 | 6,576,431 | ||||||
| 15,141,333 | ||||||||
Natural Gas Utility 0.1% | ||||||||
| EQT Corp. | 27,500 | 924,825 | ||||||
| Nicor, Inc. | 9,505 | 305,491 | ||||||
| Questar Corp. | 36,400 | 1,081,808 | ||||||
| 2,312,124 | ||||||||
Office Electronics 0.1% | ||||||||
| Xerox Corp. | 181,654 | 1,109,906 | ||||||
Oil, Gas & Consumable Fuels 10.2% | ||||||||
| Anadarko Petroleum Corp. | 97,376 | 4,193,010 | ||||||
| Apache Corp. | 70,824 | 5,160,237 | ||||||
| Cabot Oil & Gas Corp. | 21,900 | 661,161 | ||||||
| Chesapeake Energy Corp. | 119,000 | 2,345,490 | ||||||
98 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| Chevron Corp. | 424,143 | $ | 28,035,852 | |||||
| ConocoPhillips | 313,256 | 12,843,496 | ||||||
| CONSOL Energy, Inc. | 38,300 | 1,198,024 | ||||||
| Denbury Resources, Inc.* | 55,000 | 895,400 | ||||||
| Devon Energy Corp. | 93,908 | 4,869,130 | ||||||
| El Paso Corp. | 147,213 | 1,015,770 | ||||||
| EOG Resources, Inc. | 52,882 | 3,356,949 | ||||||
| Exxon Mobil Corp. | 1,045,761 | 69,720,886 | ||||||
| Hess Corp. | 60,060 | 3,290,687 | ||||||
| Marathon Oil Corp. | 149,824 | 4,449,773 | ||||||
| Massey Energy Co. | 18,900 | 300,699 | ||||||
| Murphy Oil Corp. | 40,400 | 1,927,484 | ||||||
| Noble Energy, Inc. | 36,600 | 2,077,050 | ||||||
| Occidental Petroleum Corp. | 171,454 | 9,651,146 | ||||||
| Peabody Energy Corp. | 56,600 | 1,493,674 | ||||||
| Pioneer Natural Resources Co. | 24,700 | 571,064 | ||||||
| Range Resources Corp. | 33,100 | 1,323,007 | ||||||
| Southwestern Energy Co.* | 72,800 | 2,610,608 | ||||||
| Spectra Energy Corp. | 131,840 | 1,911,680 | ||||||
| Sunoco, Inc. | 24,820 | 657,978 | ||||||
| Tesoro Corp. | 29,400 | 448,350 | ||||||
| Valero Energy Corp. | 109,284 | 2,168,195 | ||||||
| Williams Cos., Inc. (The) | 122,738 | 1,730,606 | ||||||
| XTO Energy, Inc. | 122,723 | 4,253,579 | ||||||
| 173,160,985 | ||||||||
Paper & Forest Products 0.2% | ||||||||
| International Paper Co. | 90,558 | 1,146,465 | ||||||
| MeadWestvaco Corp. | 34,247 | 536,308 | ||||||
| Weyerhaeuser Co. | 44,701 | 1,576,157 | ||||||
| 3,258,930 | ||||||||
Personal Products 0.2% | ||||||||
| Avon Products, Inc. | 90,317 | 2,055,615 | ||||||
| Estee Lauder Cos., Inc. (The), Class A | 24,300 | 726,570 | ||||||
| 2,782,185 | ||||||||
Pharmaceuticals 6.8% | ||||||||
| Abbott Laboratories | 327,063 | 13,687,587 | ||||||
| Allergan, Inc. | 65,132 | 3,039,059 | ||||||
| Bristol-Myers Squibb Co. | 418,940 | 8,043,648 | ||||||
| Eli Lilly & Co. | 213,991 | 7,044,584 | ||||||
| Forest Laboratories, Inc.* | 63,232 | 1,371,502 | ||||||
| Johnson & Johnson | 585,325 | 30,647,617 | ||||||
| King Pharmaceuticals, Inc.* | 51,823 | 408,365 | ||||||
| Merck & Co., Inc. | 446,076 | 10,812,882 | ||||||
| Mylan, Inc.* (a) | 64,551 | 855,301 | ||||||
| Pfizer, Inc. | 1,427,534 | 19,071,854 | ||||||
| Schering-Plough Corp. | 344,127 | 7,921,803 | ||||||
| Watson Pharmaceuticals, Inc.* | 22,006 | 680,866 | ||||||
| Wyeth | 281,772 | 11,947,133 | ||||||
| 115,532,201 | ||||||||
Professional Services 0.2% | ||||||||
| Dun & Bradstreet Corp. | 11,300 | 919,820 | ||||||
| Equifax, Inc. | 26,551 | 774,227 | ||||||
| Monster Worldwide, Inc.* | 24,031 | 331,628 | ||||||
| Robert Half International, Inc. | 32,606 | 783,196 | ||||||
| 2,808,871 | ||||||||
Real Estate Investment Trusts 1.0% | ||||||||
| Apartment Investment & Management Co., Class A | 26,716 | 195,027 | ||||||
| AvalonBay Communities, Inc. | 17,096 | 971,224 | ||||||
| Boston Properties, Inc. | 25,700 | 1,270,094 | ||||||
| Equity Residential | 57,811 | 1,323,294 | ||||||
| HCP, Inc. | 53,800 | 1,180,910 | ||||||
| Health Care REIT, Inc. | 23,700 | 807,459 | ||||||
| Host Hotels & Resorts, Inc. | 126,200 | 970,478 | ||||||
| Kimco Realty Corp. | 65,400 | 786,108 | ||||||
| Plum Creek Timber Co., Inc. | 35,061 | 1,210,306 | ||||||
| ProLogis | 92,151 | 839,495 | ||||||
| Public Storage | 26,600 | 1,778,476 | ||||||
| Simon Property Group, Inc. | 53,322 | 2,751,415 | ||||||
| Ventas, Inc. | 31,000 | 887,840 | ||||||
| Vornado Realty Trust | 32,980 | 1,612,392 | ||||||
| 16,584,518 | ||||||||
Real Estate Management & Development 0.0% | ||||||||
| CB Richard Ellis Group, Inc., Class A* | 47,100 | 353,250 | ||||||
Road & Rail 0.9% | ||||||||
| Burlington Northern Santa Fe Corp. | 58,952 | 3,978,081 | ||||||
| CSX Corp. | 84,512 | 2,500,710 | ||||||
| Norfolk Southern Corp. | 77,637 | 2,770,088 | ||||||
| Ryder System, Inc. | 12,105 | 335,187 | ||||||
| Union Pacific Corp. | 106,532 | 5,234,983 | ||||||
| 14,819,049 | ||||||||
Semiconductors & Semiconductor Equipment 2.4% | ||||||||
| Advanced Micro Devices, Inc.* | 128,242 | 462,954 | ||||||
| Altera Corp. | 62,482 | 1,019,081 | ||||||
| Analog Devices, Inc. | 61,757 | 1,314,189 | ||||||
| Applied Materials, Inc. | 281,519 | 3,437,347 | ||||||
| Broadcom Corp., Class A* | 91,996 | 2,133,387 | ||||||
| Intel Corp. | 1,177,138 | 18,575,238 | ||||||
| KLA-Tencor Corp. | 36,021 | 999,223 | ||||||
| Linear Technology Corp. | 47,467 | 1,033,831 | ||||||
| LSI Corp.* | 126,782 | 486,843 | ||||||
| MEMC Electronic Materials, Inc.* | 47,400 | 767,880 | ||||||
| Microchip Technology, Inc. | 38,600 | 887,800 | ||||||
| Micron Technology, Inc.* | 160,568 | 783,572 | ||||||
| National Semiconductor Corp. | 42,777 | 529,151 | ||||||
| Novellus Systems, Inc.* | 20,821 | 376,027 | ||||||
| NVIDIA Corp.* | 113,733 | 1,305,655 | ||||||
| Teradyne, Inc.* | 35,801 | 212,658 | ||||||
2009 Semiannual Report 99
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide S&P 500 Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
| Texas Instruments, Inc. | 271,859 | $ | 4,909,773 | |||||
| Xilinx, Inc. | 58,122 | 1,188,014 | ||||||
| 40,422,623 | ||||||||
Software 3.8% | ||||||||
| Adobe Systems, Inc.* | 111,342 | 3,045,204 | ||||||
| Autodesk, Inc.* | 47,962 | 956,362 | ||||||
| BMC Software, Inc.* | 39,356 | 1,364,473 | ||||||
| CA, Inc. | 83,538 | 1,441,031 | ||||||
| Citrix Systems, Inc.* | 38,171 | 1,089,019 | ||||||
| Compuware Corp.* | 53,107 | 397,240 | ||||||
| Electronic Arts, Inc.* | 68,207 | 1,388,012 | ||||||
| Intuit, Inc.* | 68,062 | 1,574,274 | ||||||
| McAfee, Inc.* | 32,700 | 1,227,558 | ||||||
| Microsoft Corp. | 1,617,989 | 32,780,457 | ||||||
| Novell, Inc.* | 67,372 | 253,319 | ||||||
| Oracle Corp. | 811,638 | 15,697,079 | ||||||
| Salesforce.com, Inc.* | 22,400 | 958,944 | ||||||
| Symantec Corp.* | 175,374 | 3,025,201 | ||||||
| 65,198,173 | ||||||||
Specialty Retail 2.1% | ||||||||
| Abercrombie & Fitch Co., Class A | 18,500 | 500,610 | ||||||
| AutoNation, Inc.* (a) | 26,080 | 461,877 | ||||||
| AutoZone, Inc.* | 8,110 | 1,349,423 | ||||||
| Bed Bath & Beyond, Inc.* | 55,002 | 1,673,161 | ||||||
| Best Buy Co., Inc. | 71,815 | 2,756,260 | ||||||
| GameStop Corp., Class A* | 34,700 | 1,046,552 | ||||||
| Gap, Inc. (The) | 98,740 | 1,534,419 | ||||||
| Home Depot, Inc. | 358,867 | 9,445,379 | ||||||
| Lowe’s Cos., Inc. | 310,198 | 6,669,257 | ||||||
| Ltd. Brands, Inc. | 59,328 | 677,526 | ||||||
| O’Reilly Automotive, Inc.* | 29,600 | 1,149,960 | ||||||
| Office Depot, Inc.* | 53,662 | 138,984 | ||||||
| RadioShack Corp. | 29,071 | 409,320 | ||||||
| Sherwin-Williams Co. (The) | 20,886 | 1,182,983 | ||||||
| Staples, Inc. | 151,072 | 3,115,105 | ||||||
| Tiffany & Co. | 26,086 | 754,929 | ||||||
| TJX Cos., Inc. | 88,168 | 2,466,059 | ||||||
| 35,331,804 | ||||||||
Textiles, Apparel & Luxury Goods 0.5% | ||||||||
| Coach, Inc.* | 68,600 | 1,680,700 | ||||||
| Nike, Inc., Class B | 82,272 | 4,316,812 | ||||||
| Polo Ralph Lauren Corp. | 12,000 | 646,080 | ||||||
| VF Corp. | 18,506 | 1,096,850 | ||||||
| 7,740,442 | ||||||||
Thrifts & Mortgage Finance 0.2% | ||||||||
| Hudson City Bancorp, Inc. | 110,700 | 1,390,392 | ||||||
| People’s United Financial, Inc. | 73,800 | 1,152,756 | ||||||
| 2,543,148 | ||||||||
Tobacco 1.5% | ||||||||
| Altria Group, Inc. | 437,343 | 7,141,811 | ||||||
| Lorillard, Inc. | 35,600 | 2,247,428 | ||||||
| Philip Morris International, Inc. | 424,143 | 15,353,977 | ||||||
| Reynolds American, Inc. | 35,490 | 1,347,910 | ||||||
| 26,091,126 | ||||||||
Trading Companies & Distributors 0.1% | ||||||||
| Fastenal Co. (a) | 27,400 | 1,051,064 | ||||||
| W.W. Grainger, Inc. | 13,625 | 1,142,865 | ||||||
| 2,193,929 | ||||||||
Wireless Telecommunication Services 0.3% | ||||||||
| American Tower Corp., Class A* | 84,100 | 2,671,016 | ||||||
| Sprint Nextel Corp.* | 599,414 | 2,613,445 | ||||||
| 5,284,461 | ||||||||
Total Common Stocks (cost $2,196,803,723) | 1,605,350,397 | |||||||
| Repurchase Agreements 6.3% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $30,213,769, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $30,817,890 (b) | $ | 30,213,618 | 30,213,618 | |||||
| Morgan Stanley, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $18,647,604, collateralized by U.S. Government Agency Mortgages ranging 5.00% — 7.50%, maturing 07/01/19 — 11/01/47; total market value of $19,020,477 (c) | 18,647,526 | 18,647,526 | ||||||
100 Semiannual Report 2009
Repurchase Agreements (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $57,064,789, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $58,205,842 | $ | 57,064,551 | $ | 57,064,551 | ||||
Total Repurchase Agreements (cost $105,925,695) | 105,925,695 | |||||||
Total Investments (cost $2,302,729,418) (d) — 101.0% | 1,711,276,092 | |||||||
Liabilities in excess of other assets — (1.0)% | (16,421,795 | ) | ||||||
NET ASSETS — 100.0% | $ | 1,694,854,297 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a partial position of this security is on loan at April 30, 2009. The total value of securities on loan at April 30, 2009 was $17,921,387. | |
| (b) | Fair Valued Security. | |
| (c) | The security was purchased with cash collateral held from securities on loan (See Note 2). The total value of this security as of April 30, 2009 was $18,647,526. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd | Limited | |
| REIT | Real Estate Investment Trust |
At April 30, 2009, the Fund’s open futures contracts were as follows:
| Market Value | Net Unrealized | |||||||||||||
| Number of | Covered by | Appreciation/ | ||||||||||||
| Contracts | Long Contracts | Expiration | Contracts | (Depreciation) | ||||||||||
| 410 | S&P 500 | 06/19/09 | $ | 89,175,000 | $ | 10,441,538 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 101
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide S&P 500 | |||||
| Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $2,196,803,723)* | $ | 1,605,350,397 | |||
| Repurchase agreements, at value and cost | 105,925,695 | ||||
| Total Investments | 1,711,276,092 | ||||
| Interest and dividends receivable | 2,487,576 | ||||
| Receivable for capital shares issued | 604,127 | ||||
| Receivable from adviser | 16,728 | ||||
| Receivable for variation margin on futures contracts | 89,692 | ||||
| Prepaid expenses and other assets | 167,739 | ||||
| Total Assets | 1,714,641,954 | ||||
Liabilities: | |||||
| Payable for investments purchased | 323,617 | ||||
| Payable for capital shares redeemed | 421,894 | ||||
| Payable upon return of securities loaned (Note 2) | 18,647,526 | ||||
| Accrued expenses and other payables: | |||||
| Fund administration fees | 174,927 | ||||
| Distribution fees | 63,992 | ||||
| Trustee fees | 9,763 | ||||
| Compliance program costs (Note 3) | 25,100 | ||||
| Custodian fees | 38,247 | ||||
| Printing fees | 12,316 | ||||
| Professional fees | 70,275 | ||||
| Total Liabilities | 19,787,657 | ||||
Net Assets | $ | 1,694,854,297 | |||
Represented by: | |||||
| Capital | $ | 2,344,268,150 | |||
| Accumulated undistributed net investment income | 2,594,326 | ||||
| Accumulated net realized losses from investment and futures transactions | (70,996,391 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (591,453,326 | ) | |||
| Net unrealized appreciation/(depreciation) from futures | 10,441,538 | ||||
Net Assets | $ | 1,694,854,297 | |||
Net Assets: | |||||
| Class A Shares | $ | 71,316,715 | |||
| Class B Shares | 8,768,477 | ||||
| Class C Shares | 2,571,970 | ||||
| Class R2 Shares (a) | 302,115 | ||||
| Institutional Service Class Shares | 59,348,761 | ||||
| Institutional Class Shares | 1,212,081,040 | ||||
| Service Class Shares | 340,465,219 | ||||
| Total | $ | 1,694,854,297 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 9,791,604 | ||||
| Class B Shares | 1,209,694 | ||||
| Class C Shares | 356,819 | ||||
| Class R2 Shares (a) | 41,525 | ||||
| Institutional Service Class Shares | 8,115,883 | ||||
| Institutional Class Shares | 165,567,270 | ||||
| Service Class Shares | 46,738,800 | ||||
| Total | 231,821,595 | ||||
| * | Includes value of securities on loan of $17,921,387 (Note 2). |
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
102 Semiannual Report 2009
| Nationwide S&P 500 | |||||
| Index Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 7.28 | |||
| Class B Shares (b) | $ | 7.25 | |||
| Class C Shares (c) | $ | 7.21 | |||
| Class R2 Shares (a) | $ | 7.28 | |||
| Institutional Service Class Shares | $ | 7.31 | |||
| Institutional Class Shares | $ | 7.32 | |||
| Service Class Shares | $ | 7.28 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.72 | |||
Maximum sales charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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.
2009 Semiannual Report 103
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide S&P 500 | |||||
| Index Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 16,628 | |||
| Dividend income | 22,479,137 | ||||
| Income from securities lending (Note 2) | 203,711 | ||||
| Total Income | 22,699,476 | ||||
EXPENSES: | |||||
| Investment advisory fees | 996,613 | ||||
| Distribution fees Local Fund Class | 17 | ||||
| Fund administration fees | 960,234 | ||||
| Distribution fees Class A | 77,469 | ||||
| Distribution fees Class B | 39,195 | ||||
| Distribution fees Class C | 10,939 | ||||
| Distribution fees Class R2 (a) | 605 | ||||
| Distribution fees Service Class | 244,560 | ||||
| Administrative services fees Class R2 (a) | 30 | ||||
| Administrative services fees Institutional Service Class | 63,821 | ||||
| Administrative services fees Service Class | 438,778 | ||||
| Registration and filing fees | 49,745 | ||||
| Professional fees | 156,507 | ||||
| Printing fees | 53,517 | ||||
| Trustee fees | 57,950 | ||||
| Compliance program costs (Note 3) | 16,538 | ||||
| Custodian fees | 49,534 | ||||
| Other | 120,380 | ||||
| Total expenses before earnings credit and expenses reimbursed | 3,336,432 | ||||
| Earnings credit (Note 5) | (3,474 | ) | |||
| Expenses reimbursed by adviser | (689,641 | ) | |||
| Net Expenses | 2,643,317 | ||||
NET INVESTMENT INCOME | 20,056,159 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (11,408,808 | ) | |||
| Net realized losses from futures transactions | (14,087,873 | ) | |||
| Net realized losses from investment and futures transactions | (25,496,681 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | (149,808,155 | ) | |||
| Net change in unrealized appreciation/(depreciation) from futures | 13,782,737 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | (136,025,418 | ) | |||
| Net realized/ unrealized losses from investments and futures | (161,522,099 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (141,465,940 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
104 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide S&P 500 Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 20,056,159 | $ | 41,246,030 | ||||||
| Net realized losses from investment and futures transactions | (25,496,681 | ) | (11,392,248 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | (136,025,418 | ) | (988,517,590 | ) | ||||||
| Change in net assets resulting from operations | (141,465,940 | ) | (958,663,808 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (829,412 | ) | (1,362,509 | ) | ||||||
| Class B | (73,399 | ) | (103,029 | ) | ||||||
| Class C | (21,764 | ) | (25,993 | ) | ||||||
| Class R2 (a) | (2,984 | ) | (2,973 | ) | ||||||
| Institutional Service Class | (740,489 | ) | (1,377,208 | ) | ||||||
| Local Fund Class (b) | (737 | ) | (2,566 | ) | ||||||
| Institutional Class | (15,656,052 | ) | (28,813,725 | ) | ||||||
| Service Class | (4,018,806 | ) | (8,117,001 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (1,246,235 | ) | |||||||
| Class B | – | (169,165 | ) | |||||||
| Class C | – | (41,591 | ) | |||||||
| Class R2 (a) | – | (3,095 | ) | |||||||
| Institutional Service Class | – | (1,383,994 | ) | |||||||
| Local Fund Class (b) | – | (2,280 | ) | |||||||
| Institutional Class | – | (23,761,476 | ) | |||||||
| Service Class | – | (9,213,280 | ) | |||||||
| Change in net assets from shareholder distributions | (21,343,643 | ) | (75,626,120 | ) | ||||||
| Change in net assets from capital transactions | 152,720,204 | 38,913,732 | ||||||||
| Change in net assets | (10,089,379 | ) | (995,376,196 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 1,704,943,676 | 2,700,319,872 | ||||||||
| End of period | $ | 1,694,854,297 | $ | 1,704,943,676 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 2,594,326 | $ | 3,881,810 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 20,908,224 | $ | 34,549,043 | ||||||
| Dividends reinvested | 743,709 | 2,296,921 | ||||||||
| Cost of shares redeemed | (9,634,857 | ) | (18,792,722 | ) | ||||||
| Total Class A | 12,017,076 | 18,053,242 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 1,968,104 | 3,616,798 | ||||||||
| Dividends reinvested | 19,201 | 89,841 | ||||||||
| Cost of shares redeemed | (1,113,695 | ) | (1,899,648 | ) | ||||||
| Total Class B | 873,610 | 1,806,991 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Effective January 30, 2009, Local Shares were liquidated. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 105
Statements of Changes in Net Assets (Continued)
| Nationwide S&P 500 Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 646,466 | $ | 1,309,599 | ||||||
| Dividends reinvested | 6,730 | 24,030 | ||||||||
| Cost of shares redeemed | (190,686 | ) | (954,832 | ) | ||||||
| Total Class C | 462,510 | 378,797 | ||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 132,056 | 138,624 | ||||||||
| Dividends reinvested | 2,984 | 6,067 | ||||||||
| Cost of shares redeemed | (31,884 | ) | (62,556 | ) | ||||||
| Total Class R2 | 103,156 | 82,135 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 9,296,114 | 9,866,611 | ||||||||
| Dividends reinvested | 740,489 | 2,761,185 | ||||||||
| Cost of shares redeemed | (6,642,660 | ) | (12,396,189 | ) | ||||||
| Total Institutional Service Class | 3,393,943 | 231,607 | ||||||||
Local Fund Shares (b) | ||||||||||
| Proceeds from shares issued | 2 | 502 | ||||||||
| Dividends reinvested | 698 | 4,599 | ||||||||
| Cost of shares redeemed | (88,653 | ) | – | |||||||
| Total Local Class | (87,953 | ) | 5,101 | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 168,116,706 | 365,062,461 | ||||||||
| Dividends reinvested | 15,614,400 | 52,373,108 | ||||||||
| Cost of shares redeemed | (47,234,446 | ) | (352,934,526 | ) | ||||||
| Total Institutional Class | 136,496,660 | 64,501,043 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 22,088,342 | 40,235,869 | ||||||||
| Dividends reinvested | 4,018,760 | 17,330,218 | ||||||||
| Cost of shares redeemed (c) | (26,645,900 | ) | (103,711,271 | ) | ||||||
| Total Service Class | (538,798 | ) | (46,145,184 | ) | ||||||
| Change in net assets from capital transactions: | 152,720,204 | 38,913,732 | ||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,963,830 | 3,181,707 | ||||||||
| Reinvested | 107,418 | 195,918 | ||||||||
| Redeemed | (1,365,224 | ) | (1,750,553 | ) | ||||||
| Total Class A Shares | 1,706,024 | 1,627,072 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Effective January 30, 2009, Local Class shares were liquidated. |
| (c) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
106 Semiannual Report 2009
| Nationwide S&P 500 Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class B Shares | ||||||||||
| Issued | 278,651 | 338,059 | ||||||||
| Reinvested | 2,762 | 7,571 | ||||||||
| Redeemed | (160,571 | ) | (178,064 | ) | ||||||
| Total Class B Shares | 120,842 | 167,566 | ||||||||
Class C Shares | ||||||||||
| Issued | 94,132 | 122,274 | ||||||||
| Reinvested | 978 | 2,034 | ||||||||
| Redeemed | (27,090 | ) | (82,342 | ) | ||||||
| Total Class C Shares | 68,020 | 41,966 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 18,765 | 13,708 | ||||||||
| Reinvested | 433 | 517 | ||||||||
| Redeemed | (4,620 | ) | (5,247 | ) | ||||||
| Total Class R2 Shares | 14,578 | 8,978 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 1,386,557 | 969,875 | ||||||||
| Reinvested | 106,404 | 233,631 | ||||||||
| Redeemed | (948,033 | ) | (1,121,178 | ) | ||||||
| Total Institutional Service Class Shares | 544,928 | 82,328 | ||||||||
Local Fund Shares (b) | ||||||||||
| Issued | – | 44 | ||||||||
| Reinvested | 94 | 390 | ||||||||
| Redeemed | (12,781 | ) | – | |||||||
| Total Local Class Shares | (12,687 | ) | 434 | |||||||
Institutional Class Shares | ||||||||||
| Issued | 24,102,307 | 33,135,124 | ||||||||
| Reinvested | 2,246,425 | 4,455,874 | ||||||||
| Redeemed | (7,000,429 | ) | (30,453,631 | ) | ||||||
| Total Institutional Class Shares | 19,348,303 | 7,137,367 | ||||||||
Service Class Shares | ||||||||||
| Issued | 3,165,267 | 3,785,208 | ||||||||
| Reinvested | 578,685 | 1,465,964 | ||||||||
| Redeemed | (3,808,355 | ) | (9,216,829 | ) | ||||||
| Total Service Class Shares | (64,403 | ) | (3,965,657 | ) | ||||||
| Total change in shares: | 21,725,605 | 5,100,054 | ||||||||
2009 Semiannual Report 107
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Net Assets | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | at End | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | of | to Average | to Average | to Average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .09 | 0 | .08 | (0 | .80) | (0 | .72) | (0 | .09) | – | (0 | .09) | – | $ | 7 | .28 | (8 | .80%) | $ | 71,316,715 | 0 | .48% | 2 | .44% | 0 | .57% | 2 | .18% | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | .71% | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .05 | 0 | .06 | (0 | .79) | (0 | .73) | (0 | .07) | – | (0 | .07) | – | $ | 7 | .25 | (9 | .08%) | $ | 8,768,477 | 1 | .23% | 1 | .71% | 1 | .32% | 2 | .18% | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | .96% | 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% | |||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .00 | 0 | .06 | (0 | .78) | (0 | .72) | (0 | .07) | – | (0 | .07) | – | $ | 7 | .21 | (8 | .98%) | $ | 2,571,970 | 1 | .23% | 1 | .68% | 1 | .32% | 2 | .18% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .00 | 0 | .10 | (4 | .81) | (4 | .71) | (0 | .10) | (0 | .19) | (0 | .29) | – | $ | 8 | .00 | (36 | .95%) | $ | 2,311,273 | 1 | .23% | 0 | .96% | 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 R2 Shares (f) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .08 | 0 | .07 | (0 | .78) | (0 | .71) | (0 | .09) | – | (0 | .09) | – | $ | 7 | .28 | (8 | .78%) | $ | 302,115 | 0 | .75% | 2 | .17% | 0 | .84% | 2 | .18% | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | .42% | 0 | .80% | 10 | .51% | ||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (g) | $ | 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% | |||||||||||||||||||||||||||||||||||||||||||||||
| Amount designated as “–” are zero or have been rounded to zero. (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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. (g) For the period from January 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
108 Semiannual Report 2009
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Net Assets | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | at End | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | of | to Average | to Average | to Average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .12 | 0 | .08 | (0 | .80) | (0 | .72) | (0 | .09) | – | (0 | .09) | – | $ | 7 | .31 | (8 | .75%) | $ | 59,348,761 | 0 | .46% | 2 | .47% | 0 | .55% | 2 | .18% | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | .74% | 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% | |||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .13 | 0 | .09 | (0 | .80) | (0 | .71) | (0 | .10) | – | (0 | .10) | – | $ | 7 | .32 | (8 | .64%) | $ | 1,212,081,040 | 0 | .23% | 2 | .70% | 0 | .32% | 2 | .18% | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .08 | 0 | .08 | (0 | .79) | (0 | .71) | (0 | .09) | – | (0 | .09) | – | $ | 7 | .28 | (8 | .78%) | $ | 340,465,219 | 0 | .65% | 2 | .36% | 0 | .74% | 2 | .18% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .13 | 0 | .17 | (4 | .86) | (4 | .69) | (0 | .17) | (0 | .19) | (0 | .36) | – | $ | 8 | .08 | (36 | .60%) | $ | 378,392,267 | 0 | .64% | 1 | .53% | 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% | |||||||||||||||||||||||||||||||||||||||||||||||
Amount designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (g) | For the period from January 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 109
| 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 semiannual period ended April 30, 2009, the Nationwide Small Cap Index Fund (Class A at NAV) registered −8.68% versus −8.40% for its benchmark, the Russell 2000® Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Small-Cap Core Funds (consisting of 794 funds as of April 30, 2009) was −5.21% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The sectors represented in the Russell 2000 Index posted mixed results for the reporting period. Three of the 10 sectors within the benchmark index recorded positive returns. Consumer discretionary led the way, advancing 7.55%, followed by information technology, with 6.31%, and telecommunications services, with 3.56%. The strongest performers among individual stocks within the index were Myriad Genetics, Inc.; Ralcorp Holdings, Inc.; Alexion Pharmaceuticals, Inc.; Sybase, Inc.; and Aéropostale, Inc.
What areas of investment detracted from Fund performance?
By contrast, the energy sector within the benchmark index posted the weakest results, registering −26.38% for the reporting period. Other laggards included financials, with −19.72%, utilities, with −11.35%, industrials, with −10.98%, and health care, with −10.45%. Among individual stocks within the index, FX Real Estate And Entertainment Inc.; The Aristotle Corp.; Jazz Pharmaceuticals, Inc.; HSW International, Inc.; and GreenHunter Energy, Inc. posted the lowest returns.
What is your outlook for the near term?
Increasingly, signs are pointing to a slowdown in the recession’s downside momentum. It is important to remember that this does not mean that the economy is set to recover. We do believe, however, that the period of peak weakness may be behind us. Reflation policy finally appears to be taking hold, and credit markets are beginning to thaw. Leading economic indicators also are starting to look better.
When the economy does begin to pick up, an event that we believe will occur in late 2009 or 2010, the recovery is likely to be subpar. Corporate earnings and financial markets most likely will continue to experience some volatility. Market breadth and volume have been strong since the current rally began, which suggests to us that upward momentum has increased to the point that it has become more difficult to derail the markets. In addition, signs of economic improvement, which provides a stronger fundamental base for the markets, have accompanied this current rally (unlike previous failed attempts).
We are not convinced that we are at the beginning of a new secular bull market, because a number of downside risks and a high degree of uncertainty remain. We do continue to believe, however, that stock prices will be higher one year from now than they are today.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Manager:
Debra L. Jelilian
Debra L. Jelilian
110 Semiannual Report 2009
| Fund Performance | Nationwide Small Cap Index Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | -8.68% | -31.13% | -2.10% | 1.77% | |||||||||||||
| w/SC3 | -13.90% | -35.09% | -3.25% | 1.18% | ||||||||||||||
Class B4 | w/o SC2 | -8.73% | -31.50% | -2.67% | 1.30% | |||||||||||||
| w/SC5 | -13.21% | -34.86% | -2.98% | 1.30% | ||||||||||||||
Class C6 | w/o SC2 | -8.83% | -31.47% | -2.64% | 1.33% | |||||||||||||
| w/SC7 | -9.72% | -32.14% | -2.64% | 1.33% | ||||||||||||||
Class R28,9,10 | -8.67% | -31.10% | -2.11% | 1.77% | ||||||||||||||
Institutional Class1,8 | -8.37% | -30.82% | -1.70% | 2.19% | ||||||||||||||
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 | 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 R2 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 R2 shares would have produced because both classes invest in the same portfolio of securities. The performance of Class R2 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 R2 shares would have been lower. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||
| Expense | Expense | |||||
| Ratio* | Ratio* | |||||
| Class A | 0.76% | 0.70% | ||||
| Class B | 1.36% | 1.30% | ||||
| �� | ||||||
| Class C | 1.36% | 1.30% | ||||
| Class R2 | 1.06% | 1.00% | ||||
| Institutional Class | 0.36% | 0.30% | ||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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, versus performance of the Russell 2000® Index and the Consumer Price Index (CPI)(b) over a 10-year period ended 04/30/09. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
| (a) | The Russell 2000® Index is an unmanaged index of approximately 2000 Small-Capitalization U.S. Companies that gives a broad look at how the stock prices of those Companies have performed. | |
| (b) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in price of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 111
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Small Cap Index Fund | 11/01/088 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 913.16 | 3.23 | 0.68 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.42 | 3.41 | 0.68 | |||||||||||||||
| Class B | Actual | 1,000.00 | 912.71 | 6.17 | 1.30 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.35 | 6.53 | 1.30 | |||||||||||||||
| Class C | Actual | 1,000.00 | 911.72 | 6.16 | 1.30 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.35 | 6.53 | 1.30 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 913.33 | 4.41 | 0.93 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.18 | 4.67 | 0.93 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 916.31 | 1.43 | 0.30 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,023.31 | 1.51 | 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 to Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
112 Semiannual Report 2009
| Portfolio Summary | Nationwide Small Cap Index Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 95 | .1% | ||
| Repurchase Agreements | 10 | .6% | ||
| Liabilities in excess of other assets | (5 | .7)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Commercial Banks | 5 | .9% | ||
| Real Estate Investment Trusts | 5 | .4% | ||
| Software | 4 | .6% | ||
| Biotechnology | 4 | .4% | ||
| Insurance | 3 | .6% | ||
| Specialty Retail | 3 | .5% | ||
| Semiconductors & Semiconductor Equipment | 3 | .3% | ||
| Health Care Equipment & Supplies | 3 | .2% | ||
| Communications Equipment | 3 | .1% | ||
| Oil, Gas & Consumable Fuels | 3 | .0% | ||
| Other Industries* | 60 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Myriad Genetics, Inc. | 0 | .5% | ||
| Ralcorp Holdings, Inc. | 0 | .4% | ||
| Alexion Pharmaceuticals, Inc. | 0 | .4% | ||
| Sybase, Inc. | 0 | .4% | ||
| Realty Income Corp. | 0 | .3% | ||
| Aeropostale, Inc. | 0 | .3% | ||
| Watson Wyatt Worldwide, Inc., Class A | 0 | .3% | ||
| ITC Holdings Corp. | 0 | .3% | ||
| Dendreon Corp. | 0 | .3% | ||
| Waste Connections, Inc. | 0 | .3% | ||
| Other Holdings* | 96 | .5% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 113
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund
| Common Stocks 95.1% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 1.8% | ||||||||
| AAR Corp.* | 16,268 | $ | 245,159 | |||||
| Aerovironment, Inc.* | 4,600 | 108,836 | ||||||
| American Science & Engineering, Inc. | 3,830 | 230,796 | ||||||
| Applied Signal Technology, Inc. | 5,300 | 104,728 | ||||||
| Argon ST, Inc.* | 5,540 | 112,961 | ||||||
| Ascent Solar Technologies, Inc.* (a) | 3,700 | 16,724 | ||||||
| Axsys Technologies, Inc.* | 3,900 | 163,449 | ||||||
| Ceradyne, Inc.* | 11,040 | 190,330 | ||||||
| Cubic Corp. | 6,546 | 187,936 | ||||||
| Curtiss-Wright Corp. | 18,748 | 599,373 | ||||||
| Ducommun, Inc. | 4,500 | 77,940 | ||||||
| Dyncorp International, Inc., Class A* | 10,400 | 158,600 | ||||||
| Esterline Technologies Corp.* | 11,861 | 312,537 | ||||||
| Gencorp, Inc.* | 24,074 | 57,778 | ||||||
| HEICO Corp. | 9,348 | 268,381 | ||||||
| Herley Industries, Inc.* | 5,700 | 58,938 | ||||||
| Hexcel Corp.* | 40,275 | 386,237 | ||||||
| Ladish Co., Inc.* | 6,700 | 50,719 | ||||||
| LMI Aerospace, Inc.* | 3,600 | 23,724 | ||||||
| Moog, Inc., Class A* | 17,863 | 478,371 | ||||||
| Orbital Sciences Corp.* | 24,522 | 379,110 | ||||||
| Stanley, Inc.* | 3,700 | 95,386 | ||||||
| Taser International, Inc.* | 26,316 | 126,317 | ||||||
| Teledyne Technologies, Inc.* | 14,863 | 474,575 | ||||||
| TransDigm Group, Inc.* | 13,500 | 474,390 | ||||||
| Triumph Group, Inc. | 6,905 | 285,384 | ||||||
| 5,668,679 | ||||||||
Air Freight & Logistics 0.3% | ||||||||
| Atlas Air Worldwide Holdings, Inc.* | 5,600 | 148,680 | ||||||
| Dynamex, Inc.* | 3,660 | 53,838 | ||||||
| Forward Air Corp. | 12,091 | 201,557 | ||||||
| HUB Group, Inc., Class A* | 15,515 | 356,845 | ||||||
| Pacer International, Inc. | 14,624 | 62,006 | ||||||
| Park-Ohio Holdings Corp.* | 3,600 | 16,740 | ||||||
| 839,666 | ||||||||
Airlines 0.7% | ||||||||
| AirTran Holdings, Inc.* | 49,119 | 341,377 | ||||||
| Alaska Air Group, Inc.* | 15,088 | 253,177 | ||||||
| Allegiant Travel Co.* (a) | 5,700 | 296,628 | ||||||
| Hawaiian Holdings, Inc.* | 18,200 | 90,818 | ||||||
| JetBlue Airways Corp.* | 72,600 | 357,918 | ||||||
| Republic Airways Holdings, Inc.* | 14,700 | 105,252 | ||||||
| SkyWest, Inc. | 24,458 | 294,474 | ||||||
| UAL Corp.* (a) | 58,100 | 285,852 | ||||||
| US Airways Group, Inc.* | 47,900 | 181,541 | ||||||
| 2,207,037 | ||||||||
Auto Components 0.4% | ||||||||
| American Axle & Manufacturing Holdings, Inc. | 21,345 | 21,345 | ||||||
| Amerigon, Inc.* | 9,400 | 53,110 | ||||||
| ArvinMeritor, Inc. | 31,179 | 38,662 | ||||||
| Cooper Tire & Rubber Co. | 24,768 | 204,831 | ||||||
| Dana Holding Corp.* | 33,200 | 26,228 | ||||||
| Dorman Products, Inc.* | 4,500 | 48,150 | ||||||
| Drew Industries, Inc.* | 8,298 | 118,496 | ||||||
| Exide Technologies* | 31,700 | 172,131 | ||||||
| Fuel Systems Solutions, Inc.* (a) | 5,100 | 77,877 | ||||||
| Hayes Lemmerz International, Inc.* | 32,800 | 5,543 | ||||||
| Lear Corp.* | 26,390 | 21,112 | ||||||
| Modine Manufacturing Co. | 14,140 | 54,015 | ||||||
| QUANTUM Fuel Systems Technologies Worldwide, Inc.* (a) | 28,400 | 20,448 | ||||||
| Raser Technologies, Inc.* (a) | 21,700 | 84,847 | ||||||
| Spartan Motors, Inc. | 13,700 | 110,559 | ||||||
| Stoneridge, Inc.* | 6,300 | 14,553 | ||||||
| Superior Industries International, Inc. | 9,685 | 146,050 | ||||||
| Tenneco, Inc.* | 19,770 | 60,496 | ||||||
| Wonder Auto Technology, Inc.* | 6,200 | 41,726 | ||||||
| 1,320,179 | ||||||||
Automobiles 0.0% | ||||||||
| Winnebago Industries | 12,253 | 107,949 | ||||||
Beverages 0.1% | ||||||||
| Boston Beer Co., Inc., Class A* | 3,555 | 94,563 | ||||||
Coca-Cola Bottling Co. Consolidated | 1,700 | 88,604 | ||||||
| National Beverage Corp.* | 4,332 | 45,616 | ||||||
| 228,783 | ||||||||
Biotechnology 4.4% | ||||||||
| Acadia Pharmaceuticals, Inc.* | 14,200 | 14,058 | ||||||
| Acorda Therapeutics, Inc.* | 15,500 | 307,365 | ||||||
| Affymax, Inc.* | 4,900 | 86,926 | ||||||
| Alexion Pharmaceuticals, Inc.* | 34,238 | 1,144,234 | ||||||
| Alkermes, Inc.* | 40,057 | 306,436 | ||||||
| Allos Therapeutics, Inc.* | 22,300 | 136,699 | ||||||
| Alnylam Pharmaceuticals, Inc.* (a) | 14,900 | 273,713 | ||||||
| Amicus Therapeutics, Inc.* | 2,000 | 17,900 | ||||||
| Arena Pharmaceuticals, Inc.* | 31,100 | 87,391 | ||||||
| ARIAD Pharmaceuticals, Inc.* | 36,414 | 54,621 | ||||||
| Arqule, Inc.* | 16,600 | 73,870 | ||||||
| Array BioPharma, Inc.* | 19,500 | 57,135 | ||||||
| Celera Corp.* | 33,573 | 271,606 | ||||||
| Cell Genesys, Inc.* | 29,817 | 16,698 | ||||||
| Celldex Therapeutics, Inc.* | 6,100 | 52,826 | ||||||
| Cepheid, Inc.* (a) | 23,890 | 231,733 | ||||||
| Cougar Biotechnology, Inc.* | 6,100 | 213,012 | ||||||
| Cubist Pharmaceuticals, Inc.* | 23,620 | 392,092 | ||||||
| Cytokinetics, Inc.* | 17,000 | 31,620 | ||||||
| Cytori Therapeutics, Inc.* | 11,900 | 21,301 | ||||||
| Dendreon Corp.* (a) | 41,278 | 875,094 | ||||||
| Dyax Corp.* | 23,500 | 46,060 | ||||||
| Emergent Biosolutions, Inc.* | 5,700 | 61,047 | ||||||
114 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Biotechnology (continued) | ||||||||
| Enzon Pharmaceuticals, Inc.* | 18,805 | $ | 108,129 | |||||
| Facet Biotech Corp.* | 9,860 | 92,191 | ||||||
| Genomic Health, Inc.* | 5,900 | 132,750 | ||||||
| Geron Corp.* (a) | 36,217 | 186,155 | ||||||
| GTx, Inc.* (a) | 7,800 | 76,674 | ||||||
| Halozyme Therapeutics, Inc.* | 24,900 | 157,368 | ||||||
| Human Genome Sciences, Inc.* | 58,365 | 127,819 | ||||||
| Idenix Pharmaceuticals, Inc.* | 10,315 | 38,165 | ||||||
| Idera Pharmaceuticals, Inc.* | 8,500 | 51,085 | ||||||
| ImmunoGen, Inc.* | 21,300 | 148,035 | ||||||
| Immunomedics, Inc.* | 26,900 | 31,204 | ||||||
| Incyte Corp Ltd.* | 32,129 | 75,824 | ||||||
| InterMune, Inc.* | 14,683 | 198,808 | ||||||
| Isis Pharmaceuticals, Inc.* | 37,880 | 593,958 | ||||||
| Lexicon Pharmaceuticals, Inc.* | 33,000 | 36,300 | ||||||
| Ligand Pharmaceuticals, Inc., Class B* | 42,900 | 128,271 | ||||||
| MannKind Corp.* (a) | 21,700 | 88,753 | ||||||
| Marshall Edwards, Inc.* | 4,500 | 2,475 | ||||||
| Martek Biosciences Corp. | 13,805 | 251,527 | ||||||
| Maxygen, Inc.* | 10,409 | 60,893 | ||||||
| Medarex, Inc.* | 53,542 | 316,969 | ||||||
| Medivation, Inc.* (a) | 10,400 | 201,032 | ||||||
| Metabolix, Inc.* | 8,000 | 63,200 | ||||||
| Molecular Insight Pharmaceuticals, Inc.* (a) | 8,000 | 29,760 | ||||||
| Momenta Pharmaceuticals, Inc.* | 11,100 | 124,320 | ||||||
| Myriad Genetics, Inc.* | 37,388 | 1,450,281 | ||||||
| Nabi Biopharmaceuticals* | 21,251 | 73,103 | ||||||
| Nanosphere, Inc.* | 6,100 | 21,350 | ||||||
| Neurocrine Biosciences, Inc.* | 16,235 | 53,575 | ||||||
| Novavax, Inc.* (a) | 25,100 | 61,244 | ||||||
| NPS Pharmaceuticals, Inc.* | 19,900 | 68,854 | ||||||
| Onyx Pharmaceuticals, Inc.* | 23,340 | 604,506 | ||||||
| Opko Health, Inc.* (a) | 19,800 | 23,364 | ||||||
| Orexigen Therapeutics, Inc.* | 8,500 | 24,140 | ||||||
| OSI Pharmaceuticals, Inc.* | 24,000 | 805,680 | ||||||
| Osiris Therapeutics, Inc.* (a) | 6,100 | 77,287 | ||||||
| PDL BioPharma, Inc. | 50,000 | 357,500 | ||||||
| Pharmasset, Inc.* | 8,600 | 77,400 | ||||||
| Progenics Pharmaceuticals, Inc.* | 11,200 | 61,376 | ||||||
| Protalix BioTherapeutics, Inc.* | 4,450 | 12,994 | ||||||
| Regeneron Pharmaceuticals, Inc.* | 25,977 | 344,455 | ||||||
| Repligen Corp.* | 12,800 | 54,400 | ||||||
| Rexahn Pharmaceuticals, Inc.* | 8,400 | 5,460 | ||||||
| Rigel Pharmaceuticals, Inc.* | 15,374 | 102,083 | ||||||
| Sangamo BioSciences, Inc.* (a) | 15,400 | 65,450 | ||||||
| Savient Pharmaceuticals, Inc.* | 23,552 | 124,355 | ||||||
| Seattle Genetics, Inc.* | 27,400 | 252,902 | ||||||
| Synta Pharmaceuticals Corp.* (a) | 7,700 | 25,025 | ||||||
| Targacept, Inc.* | 7,500 | 26,925 | ||||||
| Theravance, Inc.* (a) | 21,700 | 310,961 | ||||||
| United Therapeutics Corp.* | 11,112 | 697,945 | ||||||
| XOMA Ltd.* | 48,600 | 26,244 | ||||||
| Zymogenetics, Inc.* | 15,754 | 55,139 | ||||||
| 13,959,100 | ||||||||
Building Products 0.6% | ||||||||
| AAON, Inc. | 5,650 | 110,062 | ||||||
| American Woodmark Corp. | 4,435 | 91,804 | ||||||
| Ameron International Corp. | 3,800 | 224,846 | ||||||
| Apogee Enterprises, Inc. | 12,150 | 162,810 | ||||||
| Builders FirstSource, Inc.* (a) | 6,700 | 22,177 | ||||||
| China Architectural Engineering, Inc.* (a) | 8,000 | 12,400 | ||||||
| Gibraltar Industries, Inc. | 11,378 | 76,233 | ||||||
| Griffon Corp.* | 22,524 | 195,283 | ||||||
| Insteel Industries, Inc. | 7,200 | 53,640 | ||||||
| NCI Building Systems, Inc.* | 8,394 | 33,156 | ||||||
| Quanex Building Products Corp. | 15,575 | 159,644 | ||||||
| Simpson Manufacturing Co., Inc. | 15,618 | 347,657 | ||||||
| Trex Co., Inc.* (a) | 6,400 | 70,080 | ||||||
| Universal Forest Products, Inc. | 7,006 | 235,121 | ||||||
| 1,794,913 | ||||||||
Capital Markets 1.8% | ||||||||
| Apollo Investment Corp. | 59,682 | 286,474 | ||||||
| Ares Capital Corp. | 40,749 | 239,197 | ||||||
| BGC Partners, Inc., Class A | 14,211 | 36,807 | ||||||
| BlackRock Kelso Capital Corp.* | 5,586 | 32,566 | ||||||
| Broadpoint Securities Group, Inc.* | 10,500 | 45,255 | ||||||
| Calamos Asset Management, Inc., Class A | 8,500 | 96,985 | ||||||
| Capital Southwest Corp. | 1,315 | 102,254 | ||||||
| Cohen & Steers, Inc. (a) | 7,050 | 103,776 | ||||||
| Diamond Hill Investment Group, Inc. | 800 | 32,048 | ||||||
| Epoch Holding Corp. | 4,600 | 33,902 | ||||||
| Evercore Partners, Inc., Class A | 4,200 | 79,296 | ||||||
| FBR Capital Markets Corp.* | 10,900 | 45,235 | ||||||
| FCStone Group, Inc.* | 9,700 | 29,973 | ||||||
| GAMCO Investors, Inc., Class A | 3,168 | 158,875 | ||||||
| GFI Group, Inc. | 27,840 | 113,587 | ||||||
| Gladstone Capital Corp. | 8,928 | 59,907 | ||||||
| Gladstone Investment Corp. | 9,100 | 33,124 | ||||||
| Greenhill & Co., Inc. | 7,600 | 589,228 | ||||||
| Harris & Harris Group, Inc.* (a) | 10,700 | 51,788 | ||||||
| Hercules Technology Growth Capital, Inc. | 14,639 | 87,980 | ||||||
| International Assets Holding Corp.* | 1,800 | 21,744 | ||||||
| KBW, Inc.* (a) | 11,500 | 278,185 | ||||||
| Knight Capital Group, Inc., Class A* | 38,475 | 595,978 | ||||||
| Kohlberg Capital Corp. | 7,400 | 26,344 | ||||||
| LaBranche & Co., Inc.* | 20,906 | 87,387 | ||||||
| Ladenburg Thalmann Financial Services, Inc.* | 30,900 | 22,248 | ||||||
| MCG Capital Corp. | 32,098 | 56,492 | ||||||
2009 Semiannual Report 115
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Capital Markets (continued) | ||||||||
| MVC Capital, Inc. | 10,200 | $ | 87,312 | |||||
| NGP Capital Resources Co. | 9,163 | 64,324 | ||||||
| optionsXpress Holdings, Inc. | 17,800 | 292,988 | ||||||
| Patriot Capital Funding, Inc. | 8,900 | 20,114 | ||||||
| PennantPark Investment Corp. | 8,719 | 47,867 | ||||||
| Penson Worldwide, Inc.* | 6,900 | 69,966 | ||||||
| Piper Jaffray Cos.* | 8,279 | 287,033 | ||||||
| Prospect Capital Corp. | 12,500 | 113,375 | ||||||
| Pzena Investment Management, Inc., Class A | 2,300 | 10,925 | ||||||
| Riskmetrics Group, Inc.* | 9,000 | 156,510 | ||||||
| Sanders Morris Harris Group, Inc. | 7,953 | 35,948 | ||||||
| Stifel Financial Corp.* | 11,349 | 558,711 | ||||||
| SWS Group, Inc. | 10,225 | 130,778 | ||||||
| Teton Advisors, Inc.* (b) | 46 | 0 | ||||||
| thinkorswim Group, Inc.* | 20,790 | 197,505 | ||||||
| Thomas Weisel Partners Group, Inc.* | 8,230 | 37,200 | ||||||
| TradeStation Group, Inc.* | 13,500 | 109,485 | ||||||
| US Global Investors, Inc., Class A | 5,300 | 29,256 | ||||||
| Virtus Investment Partners, Inc.* | 2,483 | 28,182 | ||||||
| Westwood Holdings Group, Inc. | 2,200 | 86,834 | ||||||
| 5,710,948 | ||||||||
Chemicals 1.7% | ||||||||
| A. Schulman, Inc. | 11,408 | 178,991 | ||||||
| American Vanguard Corp. | 7,933 | 101,463 | ||||||
| Arch Chemicals, Inc. | 10,450 | 252,681 | ||||||
| Balchem Corp. | 7,565 | 188,293 | ||||||
| Calgon Carbon Corp.* | 22,648 | 384,563 | ||||||
| Ferro Corp. | 18,617 | 51,569 | ||||||
| Flotek Industries, Inc.* (a) | 10,600 | 21,942 | ||||||
| GenTek, Inc.* | 3,700 | 70,633 | ||||||
| H.B. Fuller Co. | 20,300 | 358,498 | ||||||
| ICO, Inc.* | 11,500 | 28,405 | ||||||
| Innophos Holdings, Inc. | 4,300 | 63,769 | ||||||
| Innospec, Inc. | 9,944 | 78,160 | ||||||
| Koppers Holdings, Inc. | 8,800 | 166,848 | ||||||
| Landec Corp.* | 9,800 | 66,248 | ||||||
| LSB Industries, Inc.* | 7,300 | 87,454 | ||||||
| Minerals Technologies, Inc. | 7,935 | 295,103 | ||||||
| NewMarket Corp. | 5,675 | 357,525 | ||||||
| NL Industries, Inc. | 2,828 | 34,247 | ||||||
| Olin Corp. | 30,898 | 389,315 | ||||||
| OM Group, Inc.* | 12,800 | 356,608 | ||||||
| Penford Corp. | 4,800 | 21,456 | ||||||
| PolyOne Corp.* | 39,288 | 107,649 | ||||||
| Quaker Chemical Corp. | 4,600 | 53,820 | ||||||
| Rockwood Holdings, Inc.* | 17,500 | 215,250 | ||||||
| Sensient Technologies Corp. | 20,154 | 471,200 | ||||||
| ShengdaTech, Inc.* (a) | 12,800 | 46,336 | ||||||
| Solutia, Inc.* | 39,200 | 147,392 | ||||||
| Spartech Corp. | 12,988 | 51,043 | ||||||
| Stepan Co. | 2,700 | 106,839 | ||||||
| W.R. Grace & Co.* | 30,300 | 267,549 | ||||||
| Westlake Chemical Corp. (a) | 8,100 | 151,470 | ||||||
| Zep, Inc. | 8,775 | 118,726 | ||||||
| Zoltek Cos., Inc.* (a) | 11,600 | 91,292 | ||||||
| 5,382,337 | ||||||||
Commercial Banks 5.9% | ||||||||
| 1st Source Corp. | 6,140 | 120,590 | ||||||
| Amcore Financial, Inc. | 8,701 | 12,790 | ||||||
| Ameris Bancorp | 5,628 | 36,863 | ||||||
| Ames National Corp. | 2,600 | 56,368 | ||||||
| Arrow Financial Corp. | 3,800 | 100,624 | ||||||
| Bancfirst Corp. | 3,100 | 132,370 | ||||||
| Banco Latinoamericano de Exportaciones SA | 11,500 | 141,450 | ||||||
| BancTrust Financial Group, Inc. (a) | 7,300 | 48,034 | ||||||
| Bank of the Ozarks, Inc. | 5,216 | 129,513 | ||||||
| Banner Corp. (a) | 6,387 | 29,636 | ||||||
| Boston Private Financial Holdings, Inc. | 22,965 | 105,869 | ||||||
| Bryn Mawr Bank Corp. | 2,900 | 56,927 | ||||||
| Camden National Corp. | 3,200 | 92,800 | ||||||
| Capital City Bank Group, Inc. (a) | 4,937 | 74,253 | ||||||
| Capitol Bancorp Ltd. (a) | 6,085 | 22,271 | ||||||
| Cardinal Financial Corp. | 9,900 | 77,715 | ||||||
| Cascade Bancorp (a) | 9,618 | 15,966 | ||||||
| Cathay General Bancorp (a) | 20,713 | 232,400 | ||||||
| Centerstate Banks of Florida, Inc. | 3,800 | 45,638 | ||||||
| Central Pacific Financial Corp. | 12,105 | 70,935 | ||||||
| Chemical Financial Corp. | 9,971 | 212,881 | ||||||
| Citizens & Northern Corp. | 3,700 | 73,371 | ||||||
| Citizens Republic Bancorp, Inc.* | 53,101 | 89,210 | ||||||
| City Bank (a) | 5,855 | 18,326 | ||||||
| City Holding Co. | 6,762 | 199,411 | ||||||
| CoBiz Financial, Inc. (a) | 7,974 | 46,807 | ||||||
| Colonial BancGroup, Inc. (The)(a) | 75,100 | 57,076 | ||||||
| Columbia Banking System, Inc. | 7,609 | 75,329 | ||||||
| Community Bank System, Inc. | 13,709 | 225,513 | ||||||
| Community Trust Bancorp, Inc. | 6,311 | 190,971 | ||||||
| CVB Financial Corp. (a) | 27,840 | 167,318 | ||||||
| East West Bancorp, Inc. | 26,700 | 182,361 | ||||||
| Encore Bancshares, Inc.* | 2,600 | 23,764 | ||||||
| Enterprise Financial Services Corp. | 4,600 | 45,310 | ||||||
| Farmers Capital Bank Corp. | 2,600 | 55,172 | ||||||
| Financial Institutions, Inc. | 4,700 | 69,795 | ||||||
| First Bancorp, Inc. | 3,600 | 62,820 | ||||||
| First Bancorp, North Carolina | 5,864 | 71,365 | ||||||
| First Bancorp, Puerto Rico | 29,910 | 164,804 | ||||||
| First Busey Corp. (a) | 10,650 | 83,390 | ||||||
| First Commonwealth Financial Corp. | 35,666 | 309,224 | ||||||
| First Community Bancshares, Inc. | 4,020 | 58,089 | ||||||
| First Financial Bancorp | 15,746 | 169,899 | ||||||
| First Financial Bankshares, Inc. | 8,674 | 427,455 | ||||||
| First Financial Corp. | 4,594 | 170,437 | ||||||
116 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| First Merchants Corp. | 9,255 | $ | 112,541 | |||||
| First Midwest Bancorp, Inc. | 20,352 | 180,319 | ||||||
| First South Bancorp, Inc. (a) | 3,360 | 38,842 | ||||||
| FirstMerit Corp. | 33,900 | 657,999 | ||||||
| FNB Corp. | 36,123 | 271,645 | ||||||
| Frontier Financial Corp. (a) | 20,114 | 28,562 | ||||||
| Glacier Bancorp, Inc. | 25,463 | 390,093 | ||||||
| Green Bankshares, Inc. (a) | 5,540 | 47,090 | ||||||
| Guaranty Bancorp* | 22,300 | 49,506 | ||||||
| Hancock Holding Co. | 10,792 | 408,693 | ||||||
| Hanmi Financial Corp. | 15,928 | 24,688 | ||||||
| Harleysville National Corp. | 17,975 | 157,641 | ||||||
| Heartland Financial USA, Inc. (a) | 5,350 | 79,073 | ||||||
| Heritage Commerce Corp. | 4,300 | 34,744 | ||||||
| Home Bancshares, Inc. | 5,556 | 122,510 | ||||||
| IBERIABANK Corp. | 6,725 | 307,198 | ||||||
| Independent Bank Corp. | 8,710 | 173,852 | ||||||
| Integra Bank Corp. | 8,898 | 19,220 | ||||||
| International Bancshares Corp. (a) | 21,420 | 289,384 | ||||||
| Investors Bancorp, Inc.* | 18,500 | 169,460 | ||||||
| Lakeland Bancorp, Inc. | 8,236 | 70,088 | ||||||
| Lakeland Financial Corp. | 5,000 | 93,850 | ||||||
| MainSource Financial Group, Inc. | 8,537 | 73,930 | ||||||
| MB Financial, Inc. | 14,581 | 198,739 | ||||||
| Midwest Banc Holdings, Inc. (a) | 9,340 | 15,131 | ||||||
| Nara Bancorp, Inc. | 9,654 | 35,816 | ||||||
| National Penn Bancshares, Inc. | 33,371 | 269,971 | ||||||
| NBT Bancorp, Inc. | 13,574 | 321,432 | ||||||
| Northfield Bancorp, Inc. | 8,000 | 90,400 | ||||||
| Old National Bancorp | 27,840 | 379,459 | ||||||
| Old Second Bancorp, Inc. (a) | 5,784 | 31,234 | ||||||
| Oriental Financial Group, Inc. | 10,304 | 95,724 | ||||||
| Pacific Capital Bancorp NA | 19,411 | 134,712 | ||||||
| Pacific Continental Corp. | 4,400 | 50,512 | ||||||
| PacWest Bancorp | 11,717 | 170,717 | ||||||
| Park National Corp. | 4,641 | 310,715 | ||||||
| Peapack Gladstone Financial Corp. | 3,400 | 64,464 | ||||||
| Pennsylvania Commerce Bancorp, Inc.* | 2,100 | 46,410 | ||||||
| Peoples Bancorp, Inc. | 4,335 | 71,831 | ||||||
| Pinnacle Financial Partners, Inc.* | 10,000 | 178,400 | ||||||
| PremierWest Bancorp | 8,505 | 32,404 | ||||||
| PrivateBancorp, Inc. | 9,002 | 182,291 | ||||||
| Prosperity Bancshares, Inc. | 15,770 | 437,933 | ||||||
| Provident Bankshares Corp. | 12,523 | 110,077 | ||||||
| Renasant Corp. | 8,793 | 123,981 | ||||||
| Republic Bancorp, Inc., Class A | 3,868 | 86,024 | ||||||
| S&T Bancorp, Inc. (a) | 10,001 | 178,718 | ||||||
| Sandy Spring Bancorp, Inc. | 6,956 | 113,035 | ||||||
| Santander BanCorp. | 1,842 | 12,341 | ||||||
| SCBT Financial Corp. | 4,728 | 109,075 | ||||||
| Seacoast Banking Corp. of Florida (a) | 6,125 | 25,848 | ||||||
| Shore Bancshares, Inc. | 3,500 | 67,865 | ||||||
| Sierra Bancorp | 3,200 | 38,432 | ||||||
| Signature Bank* | 14,813 | 402,765 | ||||||
| Simmons First National Corp., Class A | 5,843 | 151,509 | ||||||
| Smithtown Bancorp, Inc. (a) | 3,700 | 49,580 | ||||||
| South Financial Group, Inc. (The) | 35,900 | 59,594 | ||||||
| Southside Bancshares, Inc. | 5,187 | 110,483 | ||||||
| Southwest Bancorp, Inc. | 6,000 | 41,100 | ||||||
| State Bancorp, Inc. | 5,900 | 48,616 | ||||||
| StellarOne Corp. | 9,300 | 119,691 | ||||||
| Sterling Bancorp | 7,626 | 87,241 | ||||||
| Sterling Bancshares, Inc. | 30,742 | 204,434 | ||||||
| Sterling Financial Corp. (a) | 22,524 | 71,852 | ||||||
| Suffolk Bancorp | 3,983 | 101,965 | ||||||
| Sun Bancorp, Inc.* | 6,491 | 42,711 | ||||||
| Susquehanna Bancshares, Inc. | 36,033 | 290,426 | ||||||
| SVB Financial Group* | 12,545 | 260,434 | ||||||
| SY Bancorp, Inc. | 5,530 | 139,467 | ||||||
| Texas Capital Bancshares, Inc.* | 11,620 | 162,680 | ||||||
| Tompkins Financial Corp. | 2,462 | 103,773 | ||||||
| TowneBank | 8,700 | 149,901 | ||||||
| Trico Bancshares | 5,824 | 93,184 | ||||||
| Trustmark Corp. (a) | 20,820 | 452,627 | ||||||
| UCBH Holdings, Inc. (a) | 49,475 | 63,328 | ||||||
| UMB Financial Corp. | 13,070 | 598,214 | ||||||
| Umpqua Holdings Corp. (a) | 25,278 | 242,416 | ||||||
| Union Bankshares Corp. | 5,495 | 93,910 | ||||||
| United Bankshares, Inc. (a) | 15,865 | 411,538 | ||||||
| United Community Banks, Inc. (a) | 17,299 | 111,579 | ||||||
| United Security Bancshares | 3,590 | 25,988 | ||||||
| Univest Corp. of Pennsylvania | 5,280 | 110,194 | ||||||
| W Holding Co., Inc. (a) | 975 | 22,591 | ||||||
| Washington Trust Bancorp, Inc. | 5,740 | 104,755 | ||||||
| WesBanco, Inc. | 11,200 | 222,768 | ||||||
| West Bancorporation, Inc. | 7,200 | 63,360 | ||||||
| West Coast Bancorp | 6,800 | 19,176 | ||||||
| Westamerica Bancorporation (a) | 11,912 | 638,841 | ||||||
| Western Alliance Bancorp* | 9,100 | 59,241 | ||||||
| Wilshire Bancorp, Inc. | 7,896 | 31,900 | ||||||
| Wintrust Financial Corp. | 9,897 | 168,249 | ||||||
| Yadkin Valley Financial Corp. (a) | 5,400 | 44,280 | ||||||
| 18,814,090 | ||||||||
Commercial Services & Supplies 2.6% | ||||||||
| ABM Industries, Inc. | 18,378 | 321,983 | ||||||
| ACCO Brands Corp.* | 23,100 | 48,279 | ||||||
| American Ecology Corp. | 6,800 | 112,336 | ||||||
| American Reprographics Co.* | 15,400 | 99,330 | ||||||
| AMREP Corp.* | 700 | 13,013 | ||||||
| ATC Technology Corp.* | 8,736 | 138,815 | ||||||
| Bowne & Co., Inc. | 11,506 | 58,796 | ||||||
| Casella Waste Systems, Inc., Class A* | 9,737 | 20,058 | ||||||
| Cenveo, Inc.* | 20,250 | 95,580 | ||||||
| Clean Harbors, Inc.* | 8,300 | 415,830 | ||||||
2009 Semiannual Report 117
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Services & Supplies (continued) | ||||||||
| Comfort Systems USA, Inc. | 16,875 | $ | 182,081 | |||||
| Consolidated Graphics, Inc.* | 4,214 | 81,836 | ||||||
| Cornell Cos., Inc.* | 4,700 | 85,446 | ||||||
| Courier Corp. | 4,350 | 68,208 | ||||||
| Deluxe Corp. | 21,600 | 313,200 | ||||||
| EnergySolutions, Inc. | 14,000 | 135,800 | ||||||
| EnerNOC, Inc.* | 4,100 | 71,627 | ||||||
| Ennis, Inc. | 10,800 | 97,200 | ||||||
| Fuel Tech, Inc.* (a) | 8,000 | 104,880 | ||||||
| G&K Services, Inc. | 8,022 | 200,309 | ||||||
| Geo Group, Inc. (The)* | 21,344 | 354,951 | ||||||
| GeoEye, Inc.* | 7,600 | 189,164 | ||||||
| Healthcare Services Group, Inc. | 17,450 | 312,006 | ||||||
| Herman Miller, Inc. | 23,600 | 350,932 | ||||||
| HNI Corp. | 18,700 | 289,850 | ||||||
| ICT Group, Inc.* | 3,700 | 26,196 | ||||||
| Innerworkings, Inc.* | 13,000 | 65,650 | ||||||
| Interface, Inc., Class A | 22,455 | 130,014 | ||||||
| Kimball International, Inc., Class B | 13,148 | 72,182 | ||||||
| Knoll, Inc. | 20,400 | 144,432 | ||||||
| M&F Worldwide Corp.* | 4,900 | 78,155 | ||||||
| McGrath Rentcorp | 9,906 | 209,413 | ||||||
| Metalico, Inc.* (a) | 10,400 | 23,920 | ||||||
| Mine Safety Appliances Co. | 12,987 | 320,130 | ||||||
| Mobile Mini, Inc.* | 14,529 | 199,047 | ||||||
| Multi-Color Corp. | 4,450 | 52,821 | ||||||
| PRG-Schultz International, Inc.* | 6,200 | 18,352 | ||||||
| Protection One, Inc.* | 1,500 | 4,605 | ||||||
| Rollins, Inc. | 17,491 | 314,838 | ||||||
| Schawk, Inc. | 6,145 | 44,183 | ||||||
| Standard Parking Corp.* | 3,400 | 51,816 | ||||||
| Standard Register Co. (The) | 6,051 | 31,586 | ||||||
| SYKES Enterprises, Inc.* | 13,867 | 272,625 | ||||||
| Team, Inc.* | 7,800 | 112,086 | ||||||
| TETRA Tech, Inc.* | 24,707 | 606,804 | ||||||
| United Stationers, Inc.* | 9,801 | 320,787 | ||||||
| Viad Corp. | 8,685 | 165,710 | ||||||
| Waste Connections, Inc.* | 32,634 | 841,304 | ||||||
| Waste Services, Inc.* | 9,999 | 53,995 | ||||||
| 8,322,161 | ||||||||
Communications Equipment 3.1% | ||||||||
| 3Com Corp.* | 169,090 | 684,815 | ||||||
| Acme Packet, Inc.* | 10,500 | 80,955 | ||||||
| ADTRAN, Inc. | 23,605 | 499,246 | ||||||
| Airvana, Inc.* | 8,600 | 48,934 | ||||||
| Anaren, Inc.* | 5,993 | 77,969 | ||||||
| Arris Group, Inc.* | 51,375 | 548,171 | ||||||
| Aruba Networks, Inc.* | 22,000 | 103,180 | ||||||
| Avocent Corp.* | 18,800 | 271,472 | ||||||
| Bel Fuse, Inc., Class B | 4,949 | 80,075 | ||||||
| BigBand Networks, Inc.* | 13,800 | 80,868 | ||||||
| Black Box Corp. | 7,377 | 201,908 | ||||||
| Blue Coat Systems, Inc.* | 13,890 | 184,181 | ||||||
| Cogo Group, Inc.* | 9,800 | 80,164 | ||||||
| Comtech Telecommunications Corp.* | 11,770 | 393,942 | ||||||
| DG FastChannel, Inc.* | 7,500 | 174,975 | ||||||
| Digi International, Inc.* | 10,900 | 79,243 | ||||||
| EMS Technologies, Inc.* | 6,600 | 125,730 | ||||||
| Emulex Corp.* | 35,440 | 371,057 | ||||||
| Extreme Networks* | 37,262 | 65,581 | ||||||
| Finisar Corp.* | 127,623 | 84,231 | ||||||
| Globecomm Systems, Inc.* | 8,400 | 57,120 | ||||||
| Harmonic, Inc.* | 39,484 | 289,418 | ||||||
| Harris Stratex Networks, Inc., Class A* | 10,750 | 43,215 | ||||||
| Hughes Communications, Inc.* | 3,000 | 57,510 | ||||||
| Infinera Corp.* | 38,900 | 328,316 | ||||||
| InterDigital, Inc.* | 19,050 | 501,396 | ||||||
| Ixia* | 17,936 | 103,311 | ||||||
| Loral Space & Communications, Inc.* | 4,900 | 114,415 | ||||||
| MRV Communications, Inc.* | 46,495 | 21,388 | ||||||
| Netgear, Inc.* | 14,830 | 237,428 | ||||||
| Nextwave Wireless, Inc.* | 17,000 | 3,230 | ||||||
| Oclaro, Inc.* | 67,529 | 66,854 | ||||||
| Oplink Communications, Inc.* | 8,456 | 93,354 | ||||||
| Opnext, Inc.* | 11,500 | 29,095 | ||||||
| Orbcomm, Inc.* (a) | 13,200 | 16,896 | ||||||
| Palm, Inc.* (a) | 56,585 | 593,577 | ||||||
| ParkerVision, Inc.* (a) | 9,600 | 26,880 | ||||||
| PC-Tel, Inc. | 8,000 | 38,960 | ||||||
| Plantronics, Inc. | 20,541 | 261,692 | ||||||
| Polycom, Inc.* | 36,700 | 684,088 | ||||||
| Powerwave Technologies, Inc.* | 45,305 | 38,509 | ||||||
| Riverbed Technology, Inc.* | 23,500 | 430,520 | ||||||
| Seachange International, Inc.* | 13,000 | 81,510 | ||||||
| ShoreTel, Inc.* | 17,800 | 88,822 | ||||||
| Sonus Networks, Inc.* | 85,650 | 148,175 | ||||||
| Starent Networks Corp.* | 12,500 | 246,625 | ||||||
| Sycamore Networks, Inc.* | 80,318 | 236,938 | ||||||
| Symmetricom, Inc.* | 18,885 | 94,047 | ||||||
| Tekelec* | 27,410 | 424,855 | ||||||
| UTStarcom, Inc.* | 45,425 | 53,147 | ||||||
| ViaSat, Inc.* | 10,623 | 244,223 | ||||||
| 9,892,211 | ||||||||
Computers & Peripherals 0.9% | ||||||||
| 3PAR, Inc.* | 11,200 | 85,792 | ||||||
| Adaptec, Inc.* | 50,830 | 145,374 | ||||||
| Avid Technology, Inc.* | 12,700 | 140,589 | ||||||
| Compellent Technologies, Inc.* | 5,800 | 64,728 | ||||||
| Cray, Inc.* | 13,900 | 58,380 | ||||||
| Data Domain, Inc.* (a) | 14,600 | 242,068 | ||||||
| Electronics for Imaging, Inc.* | 22,333 | 219,310 | ||||||
| Hutchinson Technology, Inc.* | 9,996 | 19,192 | ||||||
| Hypercom Corp.* | 22,030 | 23,792 | ||||||
| Imation Corp. | 12,600 | 126,000 | ||||||
118 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Computers & Peripherals (continued) | ||||||||
| Immersion Corp.* | 12,300 | $ | 51,291 | |||||
| Intermec, Inc.* | 25,791 | 311,555 | ||||||
| Intevac, Inc.* | 9,200 | 63,388 | ||||||
| Isilon Systems, Inc.* | 10,500 | 26,985 | ||||||
| Netezza Corp.* | 16,600 | 134,294 | ||||||
| Novatel Wireless, Inc.* | 13,304 | 91,133 | ||||||
| Presstek, Inc.* | 11,400 | 22,002 | ||||||
| Quantum Corp.* | 78,202 | 82,112 | ||||||
| Rackable Systems, Inc.* | 12,545 | 57,205 | ||||||
| Rimage Corp.* | 4,000 | 58,880 | ||||||
| STEC, Inc.* | 12,900 | 123,840 | ||||||
| Stratasys, Inc.* | 8,700 | 81,432 | ||||||
| Super Micro Computer, Inc.* | 9,700 | 50,634 | ||||||
| Synaptics, Inc.* (a) | 14,235 | 462,353 | ||||||
| 2,742,329 | ||||||||
Construction & Engineering 0.9% | ||||||||
| Dycom Industries, Inc.* | 16,896 | 142,264 | ||||||
| EMCOR Group, Inc.* | 28,420 | 590,852 | ||||||
| Furmanite Corp.* | 15,400 | 60,984 | ||||||
| Granite Construction, Inc. | 13,905 | 548,552 | ||||||
| Great Lakes Dredge & Dock Corp. | 16,400 | 64,944 | ||||||
| Insituform Technologies, Inc., Class A* | 15,482 | 237,339 | ||||||
| Integrated Electrical Services, Inc.* | 3,200 | 30,752 | ||||||
| Layne Christensen Co.* | 8,040 | 174,146 | ||||||
| MasTec, Inc.* | 20,246 | 253,278 | ||||||
| Michael Baker Corp.* | 3,100 | 104,160 | ||||||
| Northwest Pipe Co.* | 3,800 | 144,134 | ||||||
| Orion Marine Group, Inc.* | 8,900 | 133,322 | ||||||
| Perini Corp.* | 20,383 | 352,626 | ||||||
| Pike Electric Corp.* | 7,100 | 73,698 | ||||||
| Sterling Construction Co., Inc.* | 4,900 | 91,973 | ||||||
| 3,003,024 | ||||||||
Construction Materials 0.1% | ||||||||
| Headwaters, Inc.* | 17,744 | 44,715 | ||||||
| Texas Industries, Inc. (a) | 9,758 | 312,061 | ||||||
| U.S. Concrete, Inc.* | 16,500 | 32,670 | ||||||
| United States Lime & Minerals, Inc.* | 700 | 27,125 | ||||||
| 416,571 | ||||||||
Consumer Finance 0.4% | ||||||||
| Advance America Cash Advance Centers, Inc. | 17,780 | 71,120 | ||||||
| Advanta Corp., Class B | 14,432 | 16,886 | ||||||
| Cardtronics, Inc.* | 5,500 | 13,475 | ||||||
| Cash America International, Inc. | 12,254 | 274,000 | ||||||
| CompuCredit Corp.* (a) | 6,951 | 22,243 | ||||||
| Credit Acceptance Corp.* (a) | 2,368 | 54,440 | ||||||
| Dollar Financial Corp.* | 10,200 | 103,020 | ||||||
| EZCORP, Inc., Class A* | 18,900 | 234,171 | ||||||
| First Cash Financial Services, Inc.* | 8,305 | 136,534 | ||||||
| First Marblehead Corp. (The)* | 29,300 | 56,256 | ||||||
| Nelnet, Inc., Class A* | 7,400 | 44,622 | ||||||
| World Acceptance Corp.* | 6,834 | 202,833 | ||||||
| 1,229,600 | ||||||||
Containers & Packaging 0.4% | ||||||||
| AEP Industries, Inc.* | 2,200 | 44,726 | ||||||
| Boise, Inc.* | 11,600 | 9,976 | ||||||
| BWAY Holding Co.* | 3,000 | 27,960 | ||||||
| Graphic Packaging Holding Co.* | 55,200 | 94,944 | ||||||
| Myers Industries, Inc. | 11,900 | 119,357 | ||||||
| Rock-Tenn Co., Class A | 16,033 | 605,406 | ||||||
| Silgan Holdings, Inc. | 10,596 | 492,608 | ||||||
| 1,394,977 | ||||||||
Distributors 0.0% | ||||||||
| Audiovox Corp., Class A* | 7,388 | 41,077 | ||||||
| Core-Mark Holding Co., Inc.* | 4,000 | 76,680 | ||||||
| 117,757 | ||||||||
Diversified Consumer Services 1.1% | ||||||||
| American Public Education, Inc.* | 4,600 | 165,600 | ||||||
| Capella Education Co.* | 6,000 | 308,280 | ||||||
| Coinstar, Inc.* | 12,138 | 431,991 | ||||||
| Corinthian Colleges, Inc.* | 35,700 | 549,780 | ||||||
| Grand Canyon Education, Inc.* | 4,400 | 71,940 | ||||||
| Jackson Hewitt Tax Service, Inc. | 12,000 | 58,680 | ||||||
| K12, Inc.* | 2,700 | 47,466 | ||||||
| Learning Tree International, Inc.* | 3,700 | 30,414 | ||||||
| Lincoln Educational Services Corp.* | 1,800 | 29,862 | ||||||
| Matthews International Corp., Class A | 13,132 | 411,294 | ||||||
| Pre-Paid Legal Services, Inc.* (a) | 3,350 | 123,381 | ||||||
| Princeton Review, Inc.* | 5,500 | 23,870 | ||||||
| Regis Corp. | 17,875 | 342,128 | ||||||
| Sotheby’s (a) | 28,298 | 328,540 | ||||||
| Steiner Leisure Ltd.* | 6,300 | 199,332 | ||||||
| Stewart Enterprises, Inc., Class A | 35,172 | 122,750 | ||||||
| Universal Technical Institute, Inc.* | 9,068 | 129,128 | ||||||
| 3,374,436 | ||||||||
Diversified Financial Services 0.6% | ||||||||
| Ampal American Israel, Class A* | 8,200 | 19,188 | ||||||
| Asset Acceptance Capital Corp.* | 6,345 | 52,600 | ||||||
| Compass Diversified Holdings | 10,000 | 89,400 | ||||||
| Encore Capital Group, Inc.* | 5,700 | 49,818 | ||||||
| Fifth Street Finance Corp. | 4,200 | 31,500 | ||||||
| Financial Federal Corp. | 10,723 | 263,893 | ||||||
| Interactive Brokers Group, Inc., Class A* | 16,600 | 244,850 | ||||||
| Life Partners Holdings, Inc. (a) | 3,100 | 58,032 | ||||||
| MarketAxess Holdings, Inc.* | 12,700 | 121,793 | ||||||
| Medallion Financial Corp. | 6,100 | 44,957 | ||||||
| NewStar Financial, Inc.* | 10,200 | 23,154 | ||||||
| PHH Corp.* | 22,720 | 381,242 | ||||||
2009 Semiannual Report 119
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Diversified Financial Services (continued) | ||||||||
| Pico Holdings, Inc.* | 6,800 | $ | 204,000 | |||||
| Portfolio Recovery Associates, Inc.* (a) | 6,422 | 224,577 | ||||||
| Primus Guaranty Ltd.* | 8,900 | 18,156 | ||||||
| Resource America, Inc., Class A | 4,105 | 20,361 | ||||||
| 1,847,521 | ||||||||
Diversified Telecommunication Services 0.9% | ||||||||
| Alaska Communications Systems Group, Inc. | 18,200 | 109,746 | ||||||
Atlantic Tele-Network, Inc. | 3,900 | 86,112 | ||||||
| Cbeyond, Inc.* | 10,075 | 205,329 | ||||||
| Cincinnati Bell, Inc.* | 96,679 | 269,734 | ||||||
| Cogent Communications Group, Inc.* | 18,700 | 157,828 | ||||||
| Consolidated Communications Holdings, Inc. | 9,798 | 110,228 | ||||||
| FairPoint Communications, Inc. | 36,568 | 38,031 | ||||||
| General Communication, Inc., Class A* | 19,048 | 145,908 | ||||||
| Global Crossing Ltd.* | 11,000 | 79,860 | ||||||
| Globalstar, Inc.* | 16,100 | 10,465 | ||||||
| iBasis, Inc.* | 10,200 | 10,710 | ||||||
| IDT Corp., Class B* | 7,878 | 10,714 | ||||||
| Iowa Telecommunications Services, Inc. | 13,500 | 177,930 | ||||||
| Neutral Tandem, Inc.* | 7,000 | 200,200 | ||||||
| NTELOS Holdings Corp. | 12,560 | 200,709 | ||||||
| PAETEC Holding Corp.* | 52,100 | 159,947 | ||||||
| Premiere Global Services, Inc.* | 25,975 | 273,776 | ||||||
| Shenandoah Telecommunications Co. | 9,683 | 190,077 | ||||||
| tw telecom, Inc.* | 61,664 | 566,692 | ||||||
| Vonage Holdings Corp.* | 16,600 | 6,308 | ||||||
| 3,010,304 | ||||||||
Electric Utilities 1.5% | ||||||||
| Allete, Inc. | 11,660 | 303,626 | ||||||
| Central Vermont Public Service Corp. | 4,900 | 84,084 | ||||||
| Cleco Corp. | 25,232 | 532,143 | ||||||
| El Paso Electric Co.* | 18,831 | 259,868 | ||||||
| Empire District Electric Co. (The) | 14,176 | 212,215 | ||||||
| IDACORP, Inc. | 18,214 | 436,590 | ||||||
| ITC Holdings Corp. | 20,700 | 901,071 | ||||||
| MGE Energy, Inc. | 9,323 | 286,030 | ||||||
| Portland General Electric Co. | 30,500 | 557,235 | ||||||
| UIL Holdings Corp. | 10,613 | 245,054 | ||||||
| UniSource Energy Corp. | 14,464 | 380,692 | ||||||
| Westar Energy, Inc. | 42,900 | 752,037 | ||||||
| �� | ||||||||
| 4,950,645 | ||||||||
Electrical Equipment 2.0% | ||||||||
| A.O. Smith Corp. | 8,409 | 261,436 | ||||||
| Acuity Brands, Inc. | 16,551 | 475,676 | ||||||
| Advanced Battery Technologies, Inc.* | 18,200 | 50,050 | ||||||
| Akeena Solar, Inc.* (a) | 8,800 | 9,768 | ||||||
| American Superconductor Corp.* (a) | 17,636 | 453,245 | ||||||
| AZZ, Inc.* | 5,100 | 157,743 | ||||||
| Baldor Electric Co. | 19,379 | 449,593 | ||||||
| Beacon Power Corp.* | 30,700 | 26,095 | ||||||
| Belden, Inc. | 19,552 | 315,178 | ||||||
| Brady Corp., Class A | 21,089 | 444,345 | ||||||
| Capstone Turbine Corp.* (a) | 51,700 | 41,360 | ||||||
| China BAK Battery, Inc.* | 13,700 | 29,181 | ||||||
| Coleman Cable, Inc.* | 3,400 | 8,466 | ||||||
| Encore Wire Corp. | 7,646 | 166,989 | ||||||
| Ener1, Inc.* (a) | 17,000 | 100,130 | ||||||
| Energy Conversion Devices, Inc.* (a) | 18,885 | 347,106 | ||||||
| EnerSys* | 11,585 | 197,524 | ||||||
| Evergreen Solar, Inc.* (a) | 60,310 | 146,553 | ||||||
| Franklin Electric Co., Inc. | 9,591 | 227,211 | ||||||
| FuelCell Energy, Inc.* | 29,443 | 93,629 | ||||||
| Fushi Copperweld, Inc.* | 6,100 | 30,988 | ||||||
| GrafTech International Ltd.* | 50,116 | 440,520 | ||||||
| GT Solar International, Inc.* | 12,800 | 90,752 | ||||||
| Harbin Electric, Inc.* | 3,000 | 23,940 | ||||||
| II-VI, Inc.* | 10,284 | 246,507 | ||||||
| LaBarge, Inc.* | 5,000 | 41,250 | ||||||
| LSI Industries, Inc. | 7,975 | 44,740 | ||||||
| Medis Technologies Ltd.* | 12,177 | 4,384 | ||||||
| Microvision, Inc.* (a) | 29,700 | 55,242 | ||||||
| Orion Energy Systems, Inc.* | 3,700 | 15,725 | ||||||
| Plug Power, Inc.* | 39,000 | 38,610 | ||||||
| Polypore International, Inc.* | 6,500 | 49,010 | ||||||
| Powell Industries, Inc.* | 3,069 | 110,453 | ||||||
| Power-One, Inc.* | 30,800 | 37,268 | ||||||
| PowerSecure International, Inc.* | 7,100 | 29,394 | ||||||
| Preformed Line Products Co. | 1,100 | 40,810 | ||||||
| Regal-Beloit Corp. | 13,536 | 549,968 | ||||||
| Ultralife Corp.* | 5,300 | 37,895 | ||||||
| Valence Technology, Inc.* (a) | 23,100 | 51,744 | ||||||
| Vicor Corp. | 7,988 | 42,895 | ||||||
| Woodward Governor Co. | 24,600 | 491,016 | ||||||
| 6,474,389 | ||||||||
Electronic Equipment & Instruments 1.9% | ||||||||
| Agilysys, Inc. | 9,785 | 59,004 | ||||||
| Anixter International, Inc.* | 12,485 | 496,653 | ||||||
| Benchmark Electronics, Inc.* | 28,265 | 342,854 | ||||||
| Brightpoint, Inc.* | 20,960 | 109,202 | ||||||
| Checkpoint Systems, Inc.* | 16,708 | 203,002 | ||||||
| China Security & Surveillance Technology, Inc.* (a) | 13,200 | 89,496 | ||||||
| Cogent, Inc.* | 17,200 | 195,048 | ||||||
| Cognex Corp. | 16,579 | 233,267 | ||||||
| Coherent, Inc.* | 9,900 | 188,100 | ||||||
| Comverge, Inc.* (a) | 9,400 | 72,098 | ||||||
| CPI International, Inc.* | 4,000 | 43,800 | ||||||
| CTS Corp. | 14,237 | 86,419 | ||||||
120 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Electronic Equipment & Instruments (continued) | ||||||||
| Daktronics, Inc. | 13,772 | $ | 124,499 | |||||
| DTS, Inc.* | 7,512 | 200,195 | ||||||
| Echelon Corp.* (a) | �� | 12,487 | 99,396 | |||||
| Electro Rent Corp. | 8,600 | 82,302 | ||||||
| Electro Scientific Industries, Inc.* | 11,454 | 98,504 | ||||||
| Elixir Gaming Technologies, Inc.* | 25,900 | 2,849 | ||||||
| FARO Technologies, Inc.* | 7,000 | 106,120 | ||||||
| Gerber Scientific, Inc.* | 9,800 | 38,710 | ||||||
| ICx Technologies, Inc.* | 5,700 | 21,318 | ||||||
| Insight Enterprises, Inc.* | 19,762 | 113,039 | ||||||
| IPG Photonics Corp.* | 8,100 | 90,477 | ||||||
| L-1 Identity Solutions, Inc.* | 30,348 | 222,147 | ||||||
| Littelfuse, Inc.* | 9,166 | 150,231 | ||||||
| Maxwell Technologies, Inc.* | 8,500 | 87,040 | ||||||
| Measurement Specialties, Inc.* | 6,131 | 41,629 | ||||||
| Mercury Computer Systems, Inc.* | 9,353 | 75,946 | ||||||
| Methode Electronics, Inc. | 16,000 | 96,320 | ||||||
| MTS Systems Corp. | 7,356 | 155,432 | ||||||
| Multi-Fineline Electronix, Inc.* | 3,700 | 74,259 | ||||||
| Newport Corp.* | 15,145 | 75,574 | ||||||
| OSI Systems, Inc.* | 6,576 | 123,300 | ||||||
| Park Electrochemical Corp. | 8,563 | 176,398 | ||||||
| PC Connection, Inc.* | 4,000 | 19,800 | ||||||
| PC Mall, Inc.* | 4,600 | 29,440 | ||||||
| Plexus Corp.* | 16,704 | 369,994 | ||||||
| RadiSys Corp.* | 9,460 | 67,828 | ||||||
| Rofin-Sinar Technologies, Inc.* | 12,484 | 266,034 | ||||||
| Rogers Corp.* | 7,053 | 179,499 | ||||||
| Sanmina-SCI Corp.* | 184,600 | 103,376 | ||||||
| ScanSource, Inc.* | 11,020 | 272,304 | ||||||
| Smart Modular Technologies WWH, Inc.* | 18,900 | 46,494 | ||||||
| SYNNEX Corp.* | 7,300 | 157,169 | ||||||
| Technitrol, Inc. | 17,331 | 70,537 | ||||||
| TTM Technologies, Inc.* | 17,971 | 133,345 | ||||||
| Universal Display Corp.* (a) | 12,200 | 137,738 | ||||||
| Zygo Corp.* | 4,900 | 24,598 | ||||||
| 6,252,784 | ||||||||
Energy Equipment & Services 1.2% | ||||||||
| Allis-Chalmers Energy, Inc.* | 12,000 | 23,160 | ||||||
| Basic Energy Services, Inc.* | 17,300 | 176,460 | ||||||
| Bolt Technology Corp.* | 3,600 | 36,612 | ||||||
| Bristow Group, Inc.* | 10,200 | 232,152 | ||||||
| Bronco Drilling Co., Inc.* | 11,100 | 60,939 | ||||||
| Cal Dive International, Inc.* | 18,612 | 147,407 | ||||||
| CARBO Ceramics, Inc.(a) | 8,599 | 264,075 | ||||||
| Complete Production Services, Inc.* | 20,200 | 134,936 | ||||||
| Dawson Geophysical Co.* | 3,300 | 64,878 | ||||||
| Dril-Quip, Inc.* | 12,996 | 446,803 | ||||||
| ENGlobal Corp.* | 11,200 | 64,624 | ||||||
| Geokinetics, Inc.* | 1,700 | 8,007 | ||||||
| Gulf Island Fabrication, Inc. | 5,187 | 67,120 | ||||||
| Gulfmark Offshore, Inc.* | 9,440 | 253,747 | ||||||
| Hornbeck Offshore Services, Inc.* | 9,710 | 225,563 | ||||||
| ION Geophysical Corp.* | 37,686 | 94,215 | ||||||
| Lufkin Industries, Inc. | 6,164 | 215,124 | ||||||
| Matrix Service Co.* | 10,900 | 104,422 | ||||||
| Mitcham Industries, Inc.* | 4,100 | 18,450 | ||||||
| NATCO Group, Inc., Class A* | 8,400 | 202,104 | ||||||
| Natural Gas Services Group, Inc.* | 5,100 | 50,898 | ||||||
| Newpark Resources* | 37,784 | 105,795 | ||||||
| OYO Geospace Corp.* | 1,700 | 27,030 | ||||||
| Parker Drilling Co.* | 47,512 | 131,133 | ||||||
| PHI, Inc., Non-Voting Shares* | 5,800 | 65,656 | ||||||
| Pioneer Drilling Co.* | 20,945 | 104,725 | ||||||
| RPC, Inc. | 12,251 | 131,086 | ||||||
| SulphCo, Inc.* (a) | 16,300 | 14,670 | ||||||
| Superior Well Services, Inc.* | 7,000 | 74,900 | ||||||
| T-3 Energy Services, Inc.* | 5,300 | 71,179 | ||||||
| Trico Marine Services, Inc.* (a) | 5,500 | 21,340 | ||||||
| Union Drilling, Inc.* | 5,800 | 34,742 | ||||||
| Willbros Group, Inc.* | 16,300 | 186,798 | ||||||
| 3,860,750 | ||||||||
Food & Staples Retailing 0.9% | ||||||||
| Andersons, Inc. (The) | 7,630 | 122,614 | ||||||
| Arden Group, Inc., Class A | 368 | 43,056 | ||||||
| Casey’s General Stores, Inc. | 21,280 | 566,261 | ||||||
| Great Atlantic & Pacific Tea Co.* | 14,856 | 109,043 | ||||||
| Ingles Markets, Inc., Class A | 5,152 | 80,423 | ||||||
| Nash Finch Co. | 5,335 | 156,262 | ||||||
| Pantry, Inc. (The)* | 9,375 | 221,437 | ||||||
| PriceSmart, Inc. | 6,100 | 108,885 | ||||||
| Ruddick Corp. | 16,989 | 435,938 | ||||||
| Spartan Stores, Inc. | 9,200 | 149,684 | ||||||
| Susser Holdings Corp.* | 3,300 | 47,685 | ||||||
| United Natural Foods, Inc.* | 17,972 | 409,402 | ||||||
| Village Super Market, Inc., Class A | 2,600 | 80,548 | ||||||
| Weis Markets, Inc. | 4,683 | 173,224 | ||||||
| Winn-Dixie Stores, Inc.* | 22,700 | 260,142 | ||||||
| 2,964,604 | ||||||||
Food Products 2.0% | ||||||||
| AgFeed Industries, Inc.* | 10,000 | 36,600 | ||||||
| Alico, Inc. (a) | 1,400 | 37,142 | ||||||
| American Dairy, Inc.* | 3,000 | 47,430 | ||||||
| B&G Foods, Inc., Class A | 8,300 | 50,796 | ||||||
| Cal-Maine Foods, Inc. (a) | 5,500 | 145,585 | ||||||
| Calavo Growers, Inc. | 4,300 | 61,103 | ||||||
| Chiquita Brands International, Inc.* | 18,175 | 137,585 | ||||||
| Darling International, Inc.* | 34,200 | 195,624 | ||||||
| Diamond Foods, Inc. | 6,700 | 175,473 | ||||||
| Farmer Bros Co. | 2,700 | 53,325 | ||||||
| Flowers Foods, Inc. | 32,394 | 748,301 | ||||||
| Fresh Del Monte Produce, Inc.* | 17,600 | 255,552 | ||||||
2009 Semiannual Report 121
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Food Products (continued) | ||||||||
| Green Mountain Coffee Roasters, Inc.* (a) | 7,200 | $ | 520,632 | |||||
| Griffin Land & Nurseries, Inc. | 1,300 | 40,469 | ||||||
| Hain Celestial Group, Inc. (The)* | 16,993 | 283,613 | ||||||
| HQ Sustainable Maritime Industries, Inc.* | 2,900 | 27,057 | ||||||
| Imperial Sugar Co. | 5,000 | 32,750 | ||||||
| J&J Snack Foods Corp. | 5,984 | 231,940 | ||||||
| Lancaster Colony Corp. | 8,502 | 372,387 | ||||||
| Lance, Inc. | 11,316 | 262,078 | ||||||
| Lifeway Foods, Inc.* | 2,000 | 18,040 | ||||||
| Omega Protein Corp.* | 7,900 | 25,201 | ||||||
| Ralcorp Holdings, Inc.* | 23,223 | 1,327,427 | ||||||
| Reddy Ice Holdings, Inc. | 7,815 | 17,584 | ||||||
| Sanderson Farms, Inc. | 8,459 | 337,514 | ||||||
| Smart Balance, Inc.* | 26,300 | 184,889 | ||||||
| Synutra International, Inc.* (a) | 4,300 | 36,292 | ||||||
| Tootsie Roll Industries, Inc. | 10,276 | 250,221 | ||||||
| TreeHouse Foods, Inc.* | 13,120 | 348,861 | ||||||
| Zhongpin, Inc.* | 7,800 | 68,250 | ||||||
| 6,329,721 | ||||||||
Health Care Equipment & Supplies 3.2% | ||||||||
| Abaxis, Inc.* | 9,100 | 137,592 | ||||||
| ABIOMED, Inc.* | 14,311 | 95,454 | ||||||
| Accuray, Inc.* | 15,200 | 91,960 | ||||||
| Align Technology, Inc.* | 25,392 | 315,115 | ||||||
| Alphatec Holdings, Inc.* | 10,700 | 21,935 | ||||||
| American Medical Systems Holdings, Inc.* | 30,516 | 377,483 | ||||||
| Analogic Corp. | 5,584 | 203,258 | ||||||
| AngioDynamics, Inc.* | 10,200 | 129,234 | ||||||
| Atrion Corp. | 500 | 44,780 | ||||||
| Cantel Medical Corp.* | 5,300 | 74,889 | ||||||
| Cardiac Science Corp.* | 8,000 | 23,600 | ||||||
| Conceptus, Inc.* | 12,700 | 171,958 | ||||||
| CONMED Corp.* | 12,029 | 160,226 | ||||||
| CryoLife, Inc.* | 11,700 | 63,531 | ||||||
| Cyberonics, Inc.* | 9,939 | 131,592 | ||||||
| Cynosure, Inc., Class A* | 4,100 | 25,092 | ||||||
| DexCom, Inc.* | 17,600 | 78,848 | ||||||
| ev3, Inc.* | 29,548 | 247,021 | ||||||
| Exactech, Inc.* | 3,200 | 42,400 | ||||||
| Greatbatch, Inc.* | 9,620 | 202,405 | ||||||
| Haemonetics Corp.* | 10,815 | 558,378 | ||||||
| Hansen Medical, Inc.* | 11,000 | 59,070 | ||||||
| I-Flow Corp.* | 9,169 | 45,845 | ||||||
| ICU Medical, Inc.* | 4,950 | 186,120 | ||||||
| Immucor, Inc.* | 29,346 | 478,046 | ||||||
| Insulet Corp.* | 8,100 | 46,575 | ||||||
| Integra LifeSciences Holdings Corp.* | 7,480 | 193,134 | ||||||
| Invacare Corp. | 13,449 | 206,980 | ||||||
| IRIS International, Inc.* | 7,500 | 83,775 | ||||||
| Kensey Nash Corp.* | 3,082 | 64,537 | ||||||
| Masimo Corp.* | 19,300 | 557,770 | ||||||
| Medical Action Industries, Inc.* | 6,000 | 58,200 | ||||||
| Meridian Bioscience, Inc. | 16,875 | 293,288 | ||||||
| Merit Medical Systems, Inc.* | 11,632 | 180,412 | ||||||
| Micrus Endovascular Corp.* | 6,400 | 44,288 | ||||||
| Natus Medical, Inc.* | 11,600 | 101,848 | ||||||
| Neogen Corp.* | 6,100 | 138,287 | ||||||
| NuVasive, Inc.* | 14,900 | 564,710 | ||||||
| NxStage Medical, Inc.* | 10,700 | 23,968 | ||||||
| OraSure Technologies, Inc.* | 19,773 | 71,578 | ||||||
| Orthofix International NV* | 7,200 | 122,760 | ||||||
| Orthovita, Inc.* | 27,200 | 79,968 | ||||||
| Palomar Medical Technologies, Inc.* | 7,735 | 66,598 | ||||||
| Quidel Corp.* | 11,800 | 137,352 | ||||||
| RTI Biologics, Inc.* | 22,700 | 80,358 | ||||||
| Sirona Dental Systems, Inc.* | 7,100 | 116,156 | ||||||
| Somanetics Corp.* | 5,100 | 82,671 | ||||||
| SonoSite, Inc.* | 7,090 | 127,904 | ||||||
| Spectranetics Corp.* | 13,400 | 52,260 | ||||||
| Stereotaxis, Inc.* (a) | 12,600 | 42,084 | ||||||
| STERIS Corp. | 23,990 | 578,159 | ||||||
| SurModics, Inc.* | 6,458 | 140,139 | ||||||
| Symmetry Medical, Inc.* | 14,900 | 108,174 | ||||||
| Synovis Life Technologies, Inc.* | 4,800 | 72,864 | ||||||
| Thoratec Corp.* | 22,867 | 664,515 | ||||||
| TomoTherapy, Inc.* | 17,300 | 44,634 | ||||||
| TranS1, Inc.* | 5,200 | 37,856 | ||||||
| Vision-Sciences, Inc.* | 7,100 | 8,449 | ||||||
| VNUS Medical Technologies, Inc.* | 5,500 | 121,825 | ||||||
| Volcano Corp.* | 19,800 | 261,162 | ||||||
| West Pharmaceutical Services, Inc. | 13,592 | 443,779 | ||||||
| Wright Medical Group, Inc.* | 15,652 | 215,215 | ||||||
| Zoll Medical Corp.* | 8,812 | 141,697 | ||||||
| 10,341,761 | ||||||||
Health Care Providers & Services 2.9% | ||||||||
| Air Methods Corp.* | 4,500 | 119,475 | ||||||
| Alliance HealthCare Services, Inc.* | 10,800 | 84,996 | ||||||
| Almost Family, Inc.* | 2,700 | 66,690 | ||||||
| Amedisys, Inc.* (a) | 10,955 | 367,431 | ||||||
| AMERIGROUP Corp.* | 22,400 | 669,088 | ||||||
| AMN Healthcare Services, Inc.* | 14,266 | 98,293 | ||||||
| Amsurg Corp.* | 13,178 | 270,676 | ||||||
| Assisted Living Concepts, Inc., Class A* | 4,600 | 91,218 | ||||||
| Bio-Reference Labs, Inc.* | 4,900 | 125,783 | ||||||
| BMP Sunstone Corp.* | 9,600 | 37,440 | ||||||
| Capital Senior Living Corp.* | 9,300 | 36,735 | ||||||
| CardioNet, Inc.* | 1,900 | 39,425 | ||||||
| Catalyst Health Solutions, Inc.* | 13,853 | 312,385 | ||||||
| Centene Corp.* | 18,234 | 334,959 | ||||||
| Chemed Corp. | 9,345 | 395,574 | ||||||
122 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Health Care Providers & Services (continued) | ||||||||
| Chindex International, Inc.* | 4,700 | $ | 38,493 | |||||
| CorVel Corp.* | 3,350 | 75,375 | ||||||
| Cross Country Healthcare, Inc.* | 12,885 | 113,517 | ||||||
| Emergency Medical Services Corp., Class A* | 3,900 | 135,876 | ||||||
| Emeritus Corp.* | 8,300 | 75,032 | ||||||
| Ensign Group, Inc. (The) | 3,200 | 49,600 | ||||||
| Five Star Quality Care, Inc.* | 13,300 | 22,477 | ||||||
| Genoptix, Inc.* | 3,500 | 101,780 | ||||||
| Gentiva Health Services, Inc.* | 10,649 | 169,639 | ||||||
| Hanger Orthopedic Group, Inc.* | 12,900 | 179,439 | ||||||
| HealthSouth Corp.* | 36,900 | 345,753 | ||||||
| HealthSpring, Inc.* | 20,800 | 191,984 | ||||||
| Healthways, Inc.* | 14,746 | 153,801 | ||||||
| HMS Holdings Corp.* | 10,500 | 314,790 | ||||||
| inVentiv Health, Inc.* | 13,900 | 154,151 | ||||||
| IPC The Hospitalist Co., Inc.* | 2,500 | 45,825 | ||||||
| Kindred Healthcare, Inc.* | 11,721 | 152,607 | ||||||
| Landauer, Inc. | 3,937 | 208,582 | ||||||
| LHC Group, Inc.* | 6,200 | 141,484 | ||||||
| Magellan Health Services, Inc.* | 15,760 | 465,866 | ||||||
| MedCath Corp.* | 6,675 | 67,551 | ||||||
| Molina Healthcare, Inc.* | 5,734 | 124,141 | ||||||
| MWI Veterinary Supply, Inc.* | 4,300 | 133,644 | ||||||
| National HealthCare Corp. | 3,500 | 138,950 | ||||||
| National Research Corp. | 500 | 12,605 | ||||||
| NightHawk Radiology Holdings, Inc.* | 9,600 | 34,272 | ||||||
| Odyssey HealthCare, Inc.* | 13,723 | 142,170 | ||||||
| Owens & Minor, Inc. | 16,692 | 578,879 | ||||||
| PharMerica Corp.* | 12,809 | 233,764 | ||||||
| Providence Service Corp. (The)* | 5,175 | 50,818 | ||||||
| PSS World Medical, Inc.* | 25,991 | 377,389 | ||||||
| Psychiatric Solutions, Inc.* | 22,644 | 439,067 | ||||||
| RadNet, Inc.* (a) | 8,900 | 13,706 | ||||||
| RehabCare Group, Inc.* | 7,560 | 126,252 | ||||||
| Res-Care, Inc.* | 10,445 | 167,329 | ||||||
| Skilled Healthcare Group, Inc., Class A* | 7,400 | 64,602 | ||||||
| Sun Healthcare Group, Inc.* | 18,100 | 153,307 | ||||||
| Sunrise Senior Living, Inc.* | 18,473 | 47,106 | ||||||
| Triple-S Management Corp., Class B* (a) | 5,800 | 74,356 | ||||||
| U.S. Physical Therapy, Inc.* | 4,900 | 57,232 | ||||||
| Universal American Corp.* | 16,490 | 170,342 | ||||||
| Virtual Radiologic Corp.* (a) | 2,700 | 24,732 | ||||||
| 9,418,453 | ||||||||
Health Care Technology 0.6% | ||||||||
| Allscripts-Misys Healthcare Solutions, Inc. | 61,194 | 760,030 | ||||||
| athenahealth, Inc.* | 8,700 | 276,660 | ||||||
| Computer Programs & Systems, Inc. | 3,860 | 135,061 | ||||||
| Eclipsys Corp.* | 22,837 | 301,448 | ||||||
| MedAssets, Inc.* | 7,700 | 132,748 | ||||||
| Omnicell, Inc.* | 13,100 | 115,280 | ||||||
| Phase Forward, Inc.* | 18,000 | 256,680 | ||||||
| Vital Images, Inc.* | 6,465 | 65,491 | ||||||
| 2,043,398 | ||||||||
Hotels, Restaurants & Leisure 3.0% | ||||||||
| AFC Enterprises, Inc.* | 10,375 | 64,429 | ||||||
| Ambassadors Group, Inc. | 8,000 | 97,600 | ||||||
| Ameristar Casinos, Inc. | 10,692 | 219,400 | ||||||
| Bally Technologies, Inc.* | 22,957 | 601,014 | ||||||
| BJ’s Restaurants, Inc.* | 7,300 | 120,377 | ||||||
| Bluegreen Corp.* | 5,000 | 9,550 | ||||||
| Bob Evans Farms, Inc. | 13,059 | 316,681 | ||||||
| Buffalo Wild Wings, Inc.* (a) | 7,430 | 290,067 | ||||||
| California Pizza Kitchen, Inc.* | 8,620 | 135,420 | ||||||
| CEC Entertainment, Inc.* | 8,448 | 257,326 | ||||||
| Cheesecake Factory, Inc. (The)* | 25,000 | 434,250 | ||||||
| Churchill Downs, Inc. | 4,000 | 139,240 | ||||||
| CKE Restaurants, Inc. | 21,997 | 210,511 | ||||||
| Cracker Barrel Old Country Store, Inc. | 9,300 | 303,273 | ||||||
| Denny’s Corp.* | 40,000 | 107,200 | ||||||
| DineEquity, Inc.(a) | 7,360 | 235,814 | ||||||
| Domino’s Pizza, Inc.* | 16,460 | 155,382 | ||||||
| Dover Downs Gaming & Entertainment, Inc. | 5,843 | 24,950 | ||||||
| Dover Motorsports, Inc. | 6,300 | 10,017 | ||||||
| Einstein Noah Restaurant Group, Inc.* | 2,100 | 22,659 | ||||||
| Gaylord Entertainment Co.* (a) | 17,136 | 238,876 | ||||||
| Great Wolf Resorts, Inc.* | 11,600 | 42,804 | ||||||
| Isle of Capri Casinos, Inc.* | 6,651 | 71,432 | ||||||
| Jack in the Box, Inc.* | 24,640 | 605,898 | ||||||
| Krispy Kreme Doughnuts, Inc.* | 23,863 | 94,020 | ||||||
| Landry’s Restaurants, Inc.* | 5,014 | 45,828 | ||||||
| Life Time Fitness, Inc.* (a) | 14,600 | 273,896 | ||||||
| Lodgian, Inc.* | 6,720 | 17,270 | ||||||
| Luby’s, Inc.* | 8,900 | 47,704 | ||||||
| Marcus Corp. | 8,534 | 108,382 | ||||||
| Monarch Casino & Resort, Inc.* | 4,930 | 50,385 | ||||||
| Morgans Hotel Group Co.* (a) | 10,900 | 46,761 | ||||||
| O’Charleys, Inc. | 7,725 | 53,843 | ||||||
| P.F. Chang’s China Bistro, Inc.* | 10,185 | 307,383 | ||||||
| Papa John’s International, Inc.* | 9,224 | 244,805 | ||||||
| Peet’s Coffee & Tea, Inc.* | 5,682 | 155,005 | ||||||
| Pinnacle Entertainment, Inc.* | 25,196 | 314,446 | ||||||
| Red Robin Gourmet Burgers, Inc.* | 6,459 | 158,568 | ||||||
| Rick’s Cabaret International, Inc.* | 3,000 | 17,880 | ||||||
| Riviera Holdings Corp.* | 4,300 | 6,493 | ||||||
| Ruby Tuesday, Inc.* | 21,860 | 167,885 | ||||||
| Ruth’s Hospitality Group, Inc.* | 8,800 | 31,856 | ||||||
| Shuffle Master, Inc.* | 22,265 | 84,830 | ||||||
| Sonic Corp.* | 25,110 | 274,201 | ||||||
| Speedway Motorsports, Inc. | 5,745 | 86,175 | ||||||
2009 Semiannual Report 123
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
| Steak N Shake Co. (The)* | 12,072 | $ | 139,552 | |||||
| Texas Roadhouse, Inc., Class A* | 20,775 | 236,420 | ||||||
| Town Sports International Holdings, Inc.* | 7,300 | 25,185 | ||||||
| Vail Resorts, Inc.* (a) | 12,408 | 362,314 | ||||||
| Wendy’s/Arby’s Group, Inc., Class A | 166,244 | 831,220 | ||||||
| WMS Industries, Inc.* | 17,977 | 577,241 | ||||||
| 9,473,718 | ||||||||
Household Durables 1.0% | ||||||||
| American Greetings Corp., Class A | 19,100 | 149,935 | ||||||
| Beazer Homes USA, Inc.* (a) | 16,800 | 42,336 | ||||||
| Blyth, Inc. | 2,530 | 111,522 | ||||||
| Brookfield Homes Corp. (a) | 4,047 | 21,247 | ||||||
| Cavco Industries, Inc.* | 2,700 | 63,288 | ||||||
| Champion Enterprises, Inc.* | 26,784 | 15,535 | ||||||
| CSS Industries, Inc. | 3,105 | 61,665 | ||||||
| Ethan Allen Interiors, Inc. | 10,400 | 139,880 | ||||||
| Furniture Brands International, Inc. | 17,735 | 56,043 | ||||||
| Helen of Troy Ltd.* | 12,700 | 202,565 | ||||||
| Hooker Furniture Corp. | 3,875 | 45,415 | ||||||
| Hovnanian Enterprises, Inc., Class A* (a) | 19,700 | 54,569 | ||||||
| iRobot Corp.* | 7,600 | 87,172 | ||||||
La-Z-Boy, Inc. | 21,900 | 58,254 | ||||||
| M/I Homes, Inc. | 5,992 | 91,498 | ||||||
| Meritage Homes Corp.* | 12,900 | 268,449 | ||||||
| National Presto Industries, Inc. | 1,681 | 119,788 | ||||||
| Palm Harbor Homes, Inc.* | 4,341 | 13,197 | ||||||
| Russ Berrie & Co., Inc.* | 7,357 | 14,052 | ||||||
| Ryland Group, Inc. | 17,800 | 368,638 | ||||||
| Sealy Corp.* | 18,800 | 66,552 | ||||||
| Skyline Corp. | 2,918 | 60,490 | ||||||
| Standard Pacific Corp.* | 41,300 | 77,231 | ||||||
| Tempur-Pedic International, Inc. (a) | 31,300 | 402,518 | ||||||
| Tupperware Brands Corp. | 26,038 | 651,731 | ||||||
| Universal Electronics, Inc.* | 5,956 | 111,615 | ||||||
| 3,355,185 | ||||||||
Household Products 0.1% | ||||||||
| Central Garden & Pet Co., Class A* | 26,312 | 238,650 | ||||||
| WD-40 Co. | 6,927 | 187,444 | ||||||
| 426,094 | ||||||||
Independent Power Producers & Energy Traders 0.1% | ||||||||
| Ormat Technologies, Inc. | 7,530 | 265,056 | ||||||
| Synthesis Energy Systems, Inc.* | 8,900 | 6,586 | ||||||
| U.S. Geothermal, Inc.* | 25,600 | 22,272 | ||||||
| 293,914 | ||||||||
Industrial Conglomerates 0.3% | ||||||||
| Otter Tail Corp. | 14,840 | 329,151 | ||||||
| Raven Industries, Inc. | 6,680 | 159,652 | ||||||
| Seaboard Corp. | 146 | 136,510 | ||||||
| Standex International Corp. | 5,254 | 72,873 | ||||||
| Tredegar Corp. | 10,106 | 177,664 | ||||||
| United Capital Corp.* | 700 | 12,572 | ||||||
| 888,422 | ||||||||
Information Technology Services 1.8% | ||||||||
| Acxiom Corp. | 25,700 | 248,005 | ||||||
| CACI International, Inc., Class A* | 12,200 | 482,510 | ||||||
| Cass Information Systems, Inc. | 2,770 | 93,432 | ||||||
| China Information Security Technology, Inc.* | 8,600 | 26,144 | ||||||
| CIBER, Inc.* | 25,654 | 82,862 | ||||||
| CSG Systems International, Inc.* | 14,687 | 212,962 | ||||||
| CyberSource Corp.* | 28,946 | 422,901 | ||||||
| Euronet Worldwide, Inc.* | 19,808 | 320,494 | ||||||
| ExlService Holdings, Inc.* | 6,000 | 55,860 | ||||||
| Forrester Research, Inc.* | 6,481 | 164,682 | ||||||
| Gartner, Inc.* | 24,826 | 335,399 | ||||||
| Gevity HR, Inc. | 10,253 | 40,602 | ||||||
| Global Cash Access Holdings, Inc.* | 16,900 | 102,583 | ||||||
| Hackett Group, Inc. (The)* | 16,900 | 38,025 | ||||||
| Heartland Payment Systems, Inc. | 10,300 | 82,812 | ||||||
| iGate Corp. | 9,100 | 34,489 | ||||||
| infoGROUP, Inc.* | 14,000 | 56,700 | ||||||
| Integral Systems, Inc.* | 7,102 | 47,086 | ||||||
| Mantech International Corp., Class A* | 8,596 | 311,089 | ||||||
| MAXIMUS, Inc. | 7,422 | 299,329 | ||||||
| NCI, Inc., Class A* | 2,500 | 60,900 | ||||||
| Ness Technologies, Inc.* | 16,575 | 61,162 | ||||||
| Online Resources Corp.* | 11,900 | 51,051 | ||||||
| Perot Systems Corp., Class A* | 34,948 | 491,369 | ||||||
| RightNow Technologies, Inc.* | 11,400 | 86,070 | ||||||
| Safeguard Scientifics, Inc.* | 34,600 | 31,486 | ||||||
| Sapient Corp.* | 36,862 | 189,102 | ||||||
| SRA International, Inc., Class A* | 17,900 | 275,481 | ||||||
| Syntel, Inc. | 5,440 | 150,797 | ||||||
| TeleTech Holdings, Inc.* | 15,311 | 203,177 | ||||||
| TNS, Inc.* | 10,300 | 173,555 | ||||||
| VeriFone Holdings, Inc.* | 28,700 | 215,537 | ||||||
| Virtusa Corp.* | 3,700 | 23,643 | ||||||
| Wright Express Corp.* | 16,275 | 372,372 | ||||||
| 5,843,668 | ||||||||
Insurance 3.6% | ||||||||
| AMBAC Financial Group, Inc. | 117,400 | 106,834 | ||||||
| American Equity Investment Life Holding Co. | 22,985 | 129,406 | ||||||
| American Physicians Capital, Inc. | 3,375 | 140,603 | ||||||
| American Safety Insurance Holdings Ltd.* | 4,400 | 50,072 | ||||||
| Amerisafe, Inc.* | 7,700 | 118,272 | ||||||
| Amtrust Financial Services, Inc. | 6,700 | 61,171 | ||||||
124 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Insurance (continued) | ||||||||
| Argo Group International Holdings Ltd.* | 12,862 | $ | 360,007 | |||||
| Aspen Insurance Holdings Ltd. | 35,600 | 839,448 | ||||||
| Assured Guaranty Ltd. | 23,400 | 226,044 | ||||||
| Baldwin & Lyons, Inc., Class B | 3,581 | 71,799 | ||||||
| Citizens, Inc.* (a) | 15,500 | 111,755 | ||||||
| CNA Surety Corp.* | 7,000 | 134,750 | ||||||
| Crawford & Co., Class B* | 9,920 | 59,024 | ||||||
| Delphi Financial Group, Inc., Class A | 17,359 | 299,790 | ||||||
| Donegal Group, Inc., Class A | 4,788 | 70,096 | ||||||
| eHealth, Inc.* | 10,500 | 201,495 | ||||||
| EMC Insurance Group, Inc. | 2,370 | 53,704 | ||||||
| Employers Holdings, Inc. | 20,760 | 173,138 | ||||||
| Enstar Group Ltd.* | 2,200 | 156,948 | ||||||
| Enstar Group Ltd.* | 100 | 7,134 | ||||||
| FBL Financial Group, Inc., Class A | 5,447 | 31,320 | ||||||
| First Acceptance Corp.* | 7,200 | 18,360 | ||||||
| First Mercury Financial Corp.* | 6,100 | 80,642 | ||||||
| Flagstone Reinsurance Holdings Ltd. | 12,700 | 117,602 | ||||||
| FPIC Insurance Group, Inc.* | 3,450 | 105,363 | ||||||
| Greenlight Capital Re Ltd., Class A* | 12,100 | 187,308 | ||||||
| Hallmark Financial Services* | 2,400 | 16,128 | ||||||
| Harleysville Group, Inc. | 5,458 | 157,845 | ||||||
| Hilltop Holdings, Inc.* | 18,962 | 214,840 | ||||||
| Horace Mann Educators Corp. | 17,059 | 149,778 | ||||||
| Independence Holding Co. | 1,120 | 5,790 | ||||||
| Infinity Property & Casualty Corp. | 5,985 | 210,912 | ||||||
| IPC Holdings Ltd. | 23,500 | 611,940 | ||||||
| Kansas City Life Insurance Co. | 1,800 | 39,654 | ||||||
| Maiden Holdings Ltd. | 20,700 | 93,357 | ||||||
| Max Capital Group Ltd. | 23,100 | 382,305 | ||||||
| Meadowbrook Insurance Group, Inc. | 23,335 | 138,843 | ||||||
| Montpelier Re Holdings Ltd. | 37,400 | 466,004 | ||||||
| National Financial Partners Corp. | 16,701 | 117,909 | ||||||
| National Interstate Corp. | 2,500 | 40,375 | ||||||
| National Western Life Insurance Co., Class A | 952 | 108,423 | ||||||
| Navigators Group, Inc.* | 5,492 | 249,227 | ||||||
| NYMAGIC, Inc. | 1,900 | 22,401 | ||||||
| Odyssey Re Holdings Corp. | 8,760 | 335,421 | ||||||
| Phoenix Cos, Inc. (The) | 48,376 | 75,467 | ||||||
| Platinum Underwriters Holdings Ltd. | 21,600 | 621,432 | ||||||
| PMA Capital Corp., Class A* | 13,123 | 49,211 | ||||||
| Presidential Life Corp. | 9,181 | 98,145 | ||||||
| ProAssurance Corp.* | 13,017 | 571,967 | ||||||
| RLI Corp. | 7,814 | 375,307 | ||||||
| Safety Insurance Group, Inc. | 6,805 | 224,905 | ||||||
| SeaBright Insurance Holdings, Inc.* | 8,900 | 82,592 | ||||||
| Selective Insurance Group | 22,368 | 330,152 | ||||||
| State Auto Financial Corp. | 6,000 | 97,380 | ||||||
| Stewart Information Services Corp. | 7,202 | 162,837 | ||||||
| Tower Group, Inc. | 15,105 | 410,705 | ||||||
| United America Indemnity Ltd., Class A* | 14,450 | 73,261 | ||||||
| United Fire & Casualty Co. | 9,517 | 177,682 | ||||||
| Validus Holdings Ltd. | 27,000 | 604,800 | ||||||
| Zenith National Insurance Corp. | 15,652 | 356,709 | ||||||
| 11,585,789 | ||||||||
Internet & Catalog Retail 0.5% | ||||||||
1-800-FLOWERS.COM, Inc., Class A* | 11,146 | 32,546 | ||||||
| Bidz.com, Inc.* | 2,100 | 8,652 | ||||||
| Blue Nile, Inc.* (a) | 5,603 | 238,464 | ||||||
| Drugstore.com, Inc.* | 35,400 | 54,870 | ||||||
| Gaiam, Inc., Class A* | 7,600 | 44,232 | ||||||
| Netflix, Inc.* (a) | 16,280 | 737,647 | ||||||
| NutriSystem, Inc. (a) | 12,500 | 171,750 | ||||||
| Orbitz Worldwide, Inc.* | 15,000 | 28,500 | ||||||
| Overstock.com, Inc.* (a) | 6,500 | 87,620 | ||||||
| PetMed Express, Inc.* | 10,000 | 162,600 | ||||||
| Shutterfly, Inc.* | 8,300 | 106,323 | ||||||
| Stamps.com, Inc.* | 5,616 | 52,566 | ||||||
| 1,725,770 | ||||||||
Internet Software & Services 2.2% | ||||||||
| Art Technology Group, Inc.* | 54,100 | 169,874 | ||||||
| AsiaInfo Holdings, Inc.* | 14,500 | 242,875 | ||||||
| Bankrate, Inc.* (a) | 5,355 | 133,875 | ||||||
| Chordiant Software, Inc.* | 12,740 | 40,768 | ||||||
| comScore, Inc.* | 7,600 | 96,976 | ||||||
| Constant Contact, Inc.* | 8,500 | 135,405 | ||||||
| DealerTrack Holdings, Inc.* | 16,700 | 253,506 | ||||||
| Dice Holdings, Inc.* | 6,500 | 25,610 | ||||||
| Digital River, Inc.* | 15,588 | 598,891 | ||||||
| DivX, Inc.* | 11,400 | 58,482 | ||||||
| EarthLink, Inc.* | 45,985 | 348,566 | ||||||
| GSI Commerce, Inc.* | 9,823 | 139,585 | ||||||
| HSW International, Inc.* | 7,900 | 1,817 | ||||||
| Infospace, Inc.* | 14,509 | 96,195 | ||||||
| Internap Network Services Corp.* | 21,250 | 59,075 | ||||||
| Internet Brands, Inc., Class A* | 9,200 | 56,396 | ||||||
| Internet Capital Group, Inc.* | 15,900 | 86,337 | ||||||
| j2 Global Communications, Inc.* | 18,580 | 445,734 | ||||||
| Keynote Systems, Inc.* | 5,700 | 43,947 | ||||||
| Knot, Inc. (The)* | 12,500 | 113,375 | ||||||
| Limelight Networks, Inc.* | 12,200 | 59,780 | ||||||
| Liquidity Services, Inc.* | 6,235 | 46,950 | ||||||
| LoopNet, Inc.* | 12,300 | 105,657 | ||||||
| Marchex, Inc., Class B | 9,800 | 44,296 | ||||||
| MercadoLibre, Inc.* (a) | 10,700 | 292,431 | ||||||
| ModusLink Global Solutions, Inc.* | 19,524 | 72,239 | ||||||
| Move, Inc.* | 54,039 | 110,780 | ||||||
| NIC, Inc. | 16,400 | 88,560 | ||||||
| Omniture, Inc.* | 27,691 | 341,153 | ||||||
| Perficient, Inc.* | 13,500 | 94,095 | ||||||
2009 Semiannual Report 125
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Internet Software & Services (continued) | ||||||||
| Rackspace Hosting, Inc.* | 7,300 | $ | 67,087 | |||||
| RealNetworks, Inc.* | 36,028 | 88,629 | ||||||
| S1 Corp.* | 19,678 | 122,004 | ||||||
| SAVVIS, Inc.* | 15,830 | 180,145 | ||||||
| SonicWALL, Inc.* | 22,451 | 121,909 | ||||||
| SupportSoft, Inc.* | 19,600 | 44,100 | ||||||
| Switch & Data Facilities Co., Inc.* | 8,600 | 99,502 | ||||||
| TechTarget, Inc.* | 5,800 | 23,258 | ||||||
| Terremark Worldwide, Inc.* | 21,690 | 84,374 | ||||||
| TheStreet.com, Inc. | 7,800 | 16,614 | ||||||
| United Online, Inc. | 32,363 | 171,524 | ||||||
| ValueClick, Inc.* | 36,334 | 385,140 | ||||||
| Vignette Corp.* | 10,431 | 86,160 | ||||||
| VistaPrint Ltd.* | 18,500 | 635,475 | ||||||
| Vocus, Inc.* | 6,800 | 115,600 | ||||||
| Web.com Group, Inc.* | 11,700 | 48,672 | ||||||
| Websense, Inc.* | 18,950 | 337,878 | ||||||
| 7,031,301 | ||||||||
Leisure Equipment & Products 0.5% | ||||||||
| Brunswick Corp. | 36,800 | 220,064 | ||||||
| Callaway Golf Co. | 27,869 | 210,411 | ||||||
| JAKKS Pacific, Inc.* | 11,537 | 145,943 | ||||||
| Leapfrog Enterprises, Inc.* | 14,140 | 25,311 | ||||||
| Marine Products Corp. | 4,226 | 19,651 | ||||||
| Nautilus, Inc.* | 9,630 | 9,630 | ||||||
| Polaris Industries, Inc. (a) | 13,800 | 461,610 | ||||||
| Pool Corp. | 20,100 | 358,986 | ||||||
| RC2 Corp.* | 7,365 | 83,298 | ||||||
| Smith & Wesson Holding Corp.* | 15,800 | 113,286 | ||||||
| Steinway Musical Instruments* | 2,900 | 38,947 | ||||||
| 1,687,137 | ||||||||
Life Sciences Tools & Services 1.1% | ||||||||
| Accelrys, Inc.* | 11,000 | 49,500 | ||||||
| Affymetrix, Inc.* | 29,200 | 136,948 | ||||||
| Albany Molecular Research, Inc.* | 9,885 | 96,478 | ||||||
| AMAG Pharmaceuticals, Inc.* | 7,160 | 321,126 | ||||||
| Bio-Rad Laboratories, Inc., Class A* | 7,915 | 551,596 | ||||||
| Bruker Corp.* | 21,213 | 139,582 | ||||||
| Caliper Life Sciences, Inc.* | 19,800 | 28,512 | ||||||
| Cambrex Corp.* | 12,424 | 28,948 | ||||||
| Clinical Data, Inc.* (a) | 4,800 | 61,488 | ||||||
| Dionex Corp.* | 7,645 | 481,635 | ||||||
| Enzo Biochem, Inc.* | 13,564 | 55,612 | ||||||
| eResearchTechnology, Inc.* | 18,189 | 92,218 | ||||||
| Exelixis, Inc.* | 44,140 | 217,610 | ||||||
| Kendle International, Inc.* | 5,500 | 48,950 | ||||||
| Life Sciences Research, Inc.* | 3,900 | 26,364 | ||||||
| Luminex Corp.* | 17,260 | 283,237 | ||||||
| Nektar Therapeutics* | 38,795 | 217,252 | ||||||
| PAREXEL International Corp.* | 23,802 | 235,878 | ||||||
| Sequenom, Inc.* (a) | 25,400 | 91,948 | ||||||
| Varian, Inc.* | 12,369 | 408,424 | ||||||
| 3,573,306 | ||||||||
Machinery 2.9% | ||||||||
| 3D Systems Corp.* | 7,300 | 51,173 | ||||||
| Actuant Corp., Class A | 23,460 | 287,620 | ||||||
| Alamo Group, Inc. | 2,600 | 29,276 | ||||||
| Albany International Corp., Class A | 12,467 | 115,694 | ||||||
| Altra Holdings, Inc.* | 11,200 | 61,264 | ||||||
| American Railcar Industries, Inc. | 4,000 | 36,480 | ||||||
| Ampco-Pittsburgh Corp. | 3,500 | 85,260 | ||||||
| Astec Industries, Inc.* | 7,559 | 232,968 | ||||||
| Badger Meter, Inc. | 6,100 | 237,656 | ||||||
| Barnes Group, Inc. | 20,114 | 284,814 | ||||||
| Blount International, Inc.* | 16,100 | 103,040 | ||||||
| Briggs & Stratton Corp.(a) | 20,780 | 309,206 | ||||||
| Cascade Corp. | 3,846 | 92,958 | ||||||
| Chart Industries, Inc.* | 11,900 | 164,577 | ||||||
| China Fire & Security Group, Inc.* (a) | 5,800 | 63,858 | ||||||
| CIRCOR International, Inc. | 7,085 | 182,297 | ||||||
| Clarcor, Inc. | 21,194 | 658,710 | ||||||
| Colfax Corp.* | 9,100 | 78,533 | ||||||
| Columbus McKinnon Corp.* | 8,000 | 103,680 | ||||||
| Commercial Vehicle Group, Inc.* | 8,300 | 7,968 | ||||||
| Dynamic Materials Corp. | 5,330 | 85,493 | ||||||
| Energy Recovery, Inc.* | 6,300 | 49,644 | ||||||
| EnPro Industries, Inc.* | 8,500 | 135,660 | ||||||
| ESCO Technologies, Inc.* | 10,853 | 451,268 | ||||||
| Federal Signal Corp. | 20,143 | 156,511 | ||||||
| Flanders Corp.* | 6,600 | 35,046 | ||||||
| Flow International Corp.* | 16,000 | 29,120 | ||||||
| Force Protection, Inc.* | 27,900 | 212,598 | ||||||
| FreightCar America, Inc. | 5,030 | 96,727 | ||||||
| Gorman-Rupp Co. (The) | 5,997 | 127,736 | ||||||
| Graham Corp. | 3,300 | 41,250 | ||||||
| Greenbrier Cos., Inc. | 6,990 | 59,485 | ||||||
| Hurco Cos., Inc.* | 2,700 | 41,391 | ||||||
| K-Tron International, Inc.* | 1,000 | 80,420 | ||||||
| Kadant, Inc.* | 5,403 | 66,673 | ||||||
| Kaydon Corp. | 14,348 | 458,562 | ||||||
| Key Technology, Inc.* | 2,100 | 22,134 | ||||||
| LB Foster Co., Class A* | 4,300 | 140,825 | ||||||
| Lindsay Corp.(a) | 5,028 | 195,639 | ||||||
| Lydall, Inc.* | 7,100 | 30,459 | ||||||
| Met-Pro Corp. | 6,400 | 65,216 | ||||||
| Middleby Corp.* | 7,592 | 332,302 | ||||||
| Mueller Industries, Inc. | 15,525 | 341,084 | ||||||
| Mueller Water Products, Inc., Class A | 48,370 | 202,670 | ||||||
| NACCO Industries, Inc., Class A | 2,522 | 96,466 | ||||||
| NN, Inc. | 7,000 | 9,170 | ||||||
| Nordson Corp. | 14,097 | 511,439 | ||||||
| Omega Flex, Inc. | 1,000 | 15,460 | ||||||
126 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Machinery (continued) | ||||||||
| PMFG, Inc.* | 5,300 | $ | 31,906 | |||||
| RBC Bearings, Inc.* | 9,200 | 170,200 | ||||||
| Robbins & Myers, Inc. | 11,746 | 222,587 | ||||||
| Sauer-Danfoss, Inc. | 4,838 | 20,078 | ||||||
| Sun Hydraulics Corp. | 4,750 | 85,975 | ||||||
| Tecumseh Products Co., Class A* | 6,901 | 70,459 | ||||||
| Tennant Co. | 7,024 | 104,447 | ||||||
| Thermadyne Holdings Corp.* | 5,800 | 18,560 | ||||||
| Titan International, Inc. | 14,450 | 87,423 | ||||||
| Trimas Corp.* | 6,300 | 15,750 | ||||||
| Twin Disc, Inc. | 3,600 | 24,552 | ||||||
| Wabash National Corp. | 13,140 | 16,425 | ||||||
| Wabtec Corp. | 19,878 | 758,147 | ||||||
| Watts Water Technologies, Inc., Class A | 12,230 | 272,240 | ||||||
| Xerium Technologies, Inc.* | 7,200 | 5,976 | ||||||
| 9,182,205 | ||||||||
Marine 0.2% | ||||||||
| American Commercial Lines, Inc.* | 15,100 | 75,198 | ||||||
| Eagle Bulk Shipping, Inc. (a) | 19,700 | 128,444 | ||||||
| Genco Shipping & Trading Ltd. (a) | 10,200 | 194,820 | ||||||
| Horizon Lines, Inc., Class A (a) | 12,700 | 67,564 | ||||||
| International Shipholding Corp. | 2,200 | 46,200 | ||||||
| TBS International Ltd., Class A* (a) | 4,500 | 35,685 | ||||||
| Ultrapetrol Bahamas Ltd.* | 9,800 | 36,456 | ||||||
| 584,367 | ||||||||
Media 1.0% | ||||||||
| AH Belo Corp., Class A | 8,500 | 16,150 | ||||||
| Arbitron, Inc. | 11,453 | 238,452 | ||||||
| Belo Corp., Class A | 36,700 | 62,390 | ||||||
| Cinemark Holdings, Inc. | 12,600 | 112,140 | ||||||
| CKX, Inc.* | 21,600 | 116,424 | ||||||
| Cox Radio, Inc., Class A* | 9,790 | 46,992 | ||||||
| Crown Media Holdings, Inc., Class A* | 4,458 | 13,775 | ||||||
| Cumulus Media, Inc., Class A* | 11,094 | 13,646 | ||||||
| Dolan Media Co.* | 10,700 | 127,437 | ||||||
| Entercom Communications Corp., Class A | 11,100 | 18,426 | ||||||
| Entravision Communications Corp., Class A* | 22,073 | 11,257 | ||||||
| Fisher Communications, Inc. | 2,800 | 33,768 | ||||||
| Global Sources Ltd.* | 7,703 | 34,279 | ||||||
| Global Traffic Network, Inc.* | 4,900 | 23,520 | ||||||
| Gray Television, Inc. | 16,458 | 11,192 | ||||||
Harte-Hanks, Inc. | 15,500 | 128,030 | ||||||
| Interactive Data Corp. | 15,400 | 346,192 | ||||||
| Journal Communications, Inc., Class A | 17,420 | 27,001 | ||||||
| Knology, Inc.* | 12,000 | 85,200 | ||||||
| Lee Enterprises, Inc. (a) | 15,500 | 5,890 | ||||||
| Lin TV Corp., Class A* | 11,600 | 18,560 | ||||||
| Live Nation, Inc.* | 31,900 | 124,729 | ||||||
| Martha Stewart Living Omnimedia, Class A* | 10,808 | 39,125 | ||||||
| Marvel Entertainment, Inc.* | 20,050 | 598,292 | ||||||
| McClatchy Co. (The) | 21,400 | 11,342 | ||||||
| Media General, Inc., Class A (a) | 9,800 | 25,480 | ||||||
| Mediacom Communications Corp., Class A* | 16,941 | 96,394 | ||||||
| National CineMedia, Inc. | 17,620 | 256,019 | ||||||
| Outdoor Channel Holdings, Inc.* | 6,300 | 47,124 | ||||||
| Playboy Enterprises, Inc., Class B* | 9,134 | 27,493 | ||||||
| Primedia, Inc. | 10,466 | 40,817 | ||||||
| RCN Corp.* | 15,930 | 65,313 | ||||||
| RHI Entertainment, Inc.* | 5,600 | 18,088 | ||||||
| Scholastic Corp. | 10,122 | 199,707 | ||||||
| Sinclair Broadcast Group, Inc., Class A | 20,735 | 23,016 | ||||||
| Valassis Communications, Inc.* | 20,400 | 105,468 | ||||||
| Value Line, Inc. | 200 | 5,610 | ||||||
| World Wrestling Entertainment, Inc., Class A | 8,969 | 95,968 | ||||||
| 3,270,706 | ||||||||
Metals & Mining 1.1% | ||||||||
| Allied Nevada Gold Corp.* | 18,400 | 99,360 | ||||||
| AM Castle & Co. | 7,000 | 67,830 | ||||||
| AMCOL International Corp. | 11,450 | 221,901 | ||||||
| Brush Engineered Materials, Inc.* | 8,536 | 144,429 | ||||||
| China Direct, Inc.* | 2,400 | 2,880 | ||||||
| China Precision Steel, Inc.* (a) | 7,300 | 11,388 | ||||||
| Coeur d’Alene Mines Corp.* | 274,355 | 378,610 | ||||||
| Compass Minerals International, Inc. | 13,560 | 653,863 | ||||||
| General Moly, Inc.* (a) | 26,700 | 40,584 | ||||||
| General Steel Holdings, Inc.* (a) | 5,000 | 29,100 | ||||||
| Haynes International, Inc.* | 5,000 | 112,900 | ||||||
| Hecla Mining Co.* | 91,238 | 225,358 | ||||||
| Horsehead Holding Corp.* | 14,700 | 104,958 | ||||||
| Kaiser Aluminum Corp. | 6,600 | 194,964 | ||||||
| Olympic Steel, Inc. | 3,800 | 69,692 | ||||||
| Royal Gold, Inc. | 14,175 | 512,568 | ||||||
| RTI International Metals, Inc.* | 9,710 | 126,327 | ||||||
| Stillwater Mining Co.* | 16,635 | 75,024 | ||||||
| Sutor Technology Group Ltd.* | 3,300 | 7,425 | ||||||
| Universal Stainless & Alloy* | 2,700 | 36,180 | ||||||
| Worthington Industries, Inc. | 26,975 | 401,927 | ||||||
| 3,517,268 | ||||||||
Multi-Utility 0.5% | ||||||||
| Avista Corp. | 22,276 | 335,254 | ||||||
| Black Hills Corp. | 16,080 | 319,670 | ||||||
| CH Energy Group, Inc. | 6,663 | 296,104 | ||||||
| NorthWestern Corp. | 15,100 | 315,892 | ||||||
| PNM Resources, Inc. | 36,300 | 309,276 | ||||||
| 1,576,196 | ||||||||
2009 Semiannual Report 127
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Multiline Retail 0.2% | ||||||||
| 99 Cents Only Stores* | 19,716 | $ | 211,750 | |||||
| Dillard’s, Inc., Class A (a) | 24,000 | 185,040 | ||||||
| Fred’s, Inc., Class A | 16,760 | 228,942 | ||||||
| Retail Ventures, Inc.* | 11,905 | 30,953 | ||||||
| Tuesday Morning Corp.* | 12,942 | 44,132 | ||||||
| 700,817 | ||||||||
Natural Gas Utility 1.3% | ||||||||
| Chesapeake Utilities Corp. | 2,800 | 82,012 | ||||||
| Laclede Group, Inc. (The) | 9,200 | 319,056 | ||||||
| New Jersey Resources Corp. | 17,237 | 567,442 | ||||||
| Nicor, Inc. | 18,387 | 590,958 | ||||||
| Northwest Natural Gas Co. | 11,116 | 454,645 | ||||||
| Piedmont Natural Gas Co., Inc. | 30,800 | 752,136 | ||||||
| South Jersey Industries, Inc. | 12,504 | 434,014 | ||||||
| Southwest Gas Corp. | 18,186 | 367,539 | ||||||
| WGL Holdings, Inc. | 20,195 | 628,872 | ||||||
| 4,196,674 | ||||||||
Oil, Gas & Consumable Fuels 3.0% | ||||||||
| Abraxas Petroleum Corp.* | 17,500 | 15,400 | ||||||
| Alon USA Energy, Inc.(a) | 4,600 | 58,420 | ||||||
| American Oil & Gas, Inc.* | 14,200 | 9,514 | ||||||
| APCO Argentina, Inc. | 1,600 | 30,512 | ||||||
| Approach Resources, Inc.* | 3,800 | 26,980 | ||||||
| Arena Resources, Inc.* | 15,900 | 455,853 | ||||||
| Atlas America, Inc. | 14,497 | 225,573 | ||||||
| ATP Oil & Gas Corp.* (a) | 11,700 | 83,772 | ||||||
| Berry Petroleum Co., Class A | 17,880 | 294,662 | ||||||
| Bill Barrett Corp.* | 15,400 | 400,092 | ||||||
| BMB Munai, Inc.* | 16,500 | 13,200 | ||||||
| BPZ Resources, Inc.* (a) | 30,000 | 163,500 | ||||||
| Brigham Exploration Co.* | 20,402 | 47,741 | ||||||
| Callon Petroleum Co.* | 8,800 | 15,488 | ||||||
| Cano Petroleum, Inc.* | 17,700 | 11,328 | ||||||
| Carrizo Oil & Gas, Inc.* | 11,540 | 142,288 | ||||||
| Cheniere Energy, Inc.* (a) | 22,000 | 86,680 | ||||||
| Clayton Williams Energy, Inc.* | 2,300 | 69,069 | ||||||
| Clean Energy Fuels Corp.* (a) | 10,400 | 87,984 | ||||||
| Comstock Resources, Inc.* | 19,131 | 659,254 | ||||||
| Concho Resources, Inc.* | 23,200 | 636,144 | ||||||
| Contango Oil & Gas Co.* | 5,500 | 208,395 | ||||||
| Crosstex Energy, Inc. | 17,100 | 33,687 | ||||||
| CVR Energy, Inc.* | 9,700 | 71,392 | ||||||
| Delek US Holdings, Inc. | 5,600 | 57,512 | ||||||
| Delta Petroleum Corp.* (a) | 26,380 | 77,557 | ||||||
| DHT Maritime, Inc. | 17,900 | 75,359 | ||||||
| Double Eagle Petroleum Co.* | 3,400 | 15,504 | ||||||
| Endeavour International Corp.* | 40,300 | 64,077 | ||||||
| Energy XXI Bermuda Ltd. | 43,200 | 22,464 | ||||||
| Evergreen Energy, Inc.* | 53,660 | 59,080 | ||||||
| EXCO Resources, Inc.* | 62,600 | 737,428 | ||||||
| FX Energy, Inc.* (a) | 16,600 | 62,416 | ||||||
| Gasco Energy, Inc.* | 34,600 | 17,300 | ||||||
| General Maritime Corp. | 20,324 | 201,817 | ||||||
| GeoGlobal Resources, Inc.* (a) | 15,700 | 22,137 | ||||||
| GeoMet, Inc.* | 7,800 | 7,332 | ||||||
| GeoResources, Inc.* | 2,600 | 18,460 | ||||||
| GMX Resources, Inc.* (a) | 7,100 | 77,674 | ||||||
| Golar LNG Ltd.(a) | 14,900 | 80,311 | ||||||
| Goodrich Petroleum Corp.* | 9,495 | 217,720 | ||||||
| Gran Tierra Energy, Inc.* | 92,800 | 230,144 | ||||||
| GreenHunter Energy, Inc.* (a) | 1,200 | 1,800 | ||||||
| Gulfport Energy Corp.* | 11,200 | 33,264 | ||||||
| Harvest Natural Resources, Inc.* | 13,965 | 71,222 | ||||||
| Houston American Energy Corp. | 6,200 | 12,772 | ||||||
| International Coal Group, Inc.* (a) | 53,500 | 106,465 | ||||||
| James River Coal Co.* | 11,500 | 163,760 | ||||||
| Knightsbridge Tankers Ltd. | 7,200 | 95,256 | ||||||
| McMoRan Exploration Co.* | 25,207 | 138,386 | ||||||
| Meridian Resource Corp.* | 28,800 | 7,776 | ||||||
| National Coal Corp.* | 11,600 | 14,268 | ||||||
| Nordic American Tanker Shipping (a) | 15,900 | 516,273 | ||||||
| Northern Oil & Gas, Inc.* | 9,000 | 51,390 | ||||||
| Oilsands Quest, Inc.* | 76,000 | 57,000 | ||||||
| Pacific Ethanol, Inc.* | 17,300 | 6,401 | ||||||
| Panhandle Oil and Gas, Inc. | 3,000 | 51,450 | ||||||
| Parallel Petroleum Corp.* | 17,665 | 23,495 | ||||||
| Penn Virginia Corp. | 17,480 | 245,944 | ||||||
| Petrocorp, Inc.* (c) | 1,500 | 0 | ||||||
| Petroleum Development Corp.* | 6,256 | 101,410 | ||||||
| PetroQuest Energy, Inc.* | 18,300 | 55,083 | ||||||
| PrimeEnergy Corp.* | 400 | 16,996 | ||||||
| Quest Resource Corp.* | 9,500 | 4,180 | ||||||
| RAM Energy Resources, Inc.* | 17,300 | 12,975 | ||||||
| Rentech, Inc.* | 60,200 | 35,518 | ||||||
| Rex Energy Corp.* | 7,700 | 29,337 | ||||||
| Rosetta Resources, Inc.* | 21,605 | 152,315 | ||||||
| Ship Finance International Ltd. (a) | 17,700 | 152,751 | ||||||
| Stone Energy Corp.* | 13,349 | 57,534 | ||||||
| Swift Energy Co.* | 12,820 | 138,712 | ||||||
| Teekay Tankers Ltd., Class A | 5,500 | 66,330 | ||||||
| Toreador Resources Corp. (a) | 7,000 | 25,900 | ||||||
| Tri-Valley Corp.* | 9,500 | 11,875 | ||||||
| TXCO Resources, Inc.* | 14,600 | 6,862 | ||||||
| Uranium Resources, Inc.* | 17,000 | 24,990 | ||||||
| USEC, Inc.* (a) | 46,613 | 288,535 | ||||||
| VAALCO Energy, Inc.* | 24,200 | 115,434 | ||||||
| Venoco, Inc.* | 8,600 | 37,582 | ||||||
| Warren Resources, Inc.* | 23,940 | 38,304 | ||||||
| Western Refining, Inc.* (a) | 12,500 | 157,375 | ||||||
| Westmoreland Coal Co.* | 4,200 | 35,700 | ||||||
| World Fuel Services Corp. | 12,020 | 458,323 | ||||||
| 9,512,163 | ||||||||
128 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Paper & Forest Products 0.3% | ||||||||
| Buckeye Technologies, Inc.* | 16,590 | $ | 85,439 | |||||
| Clearwater Paper Corp.* | 4,811 | 73,223 | ||||||
| Deltic Timber Corp. | 4,456 | 187,776 | ||||||
| Glatfelter | 19,010 | 168,809 | ||||||
| KapStone Paper and Packaging Corp.* | 7,700 | 21,945 | ||||||
| Louisiana-Pacific Corp. | 43,500 | 177,045 | ||||||
| Mercer International, Inc.* | 12,620 | 7,193 | ||||||
| Neenah Paper, Inc. | 6,200 | 31,062 | ||||||
| Schweitzer-Mauduit International, Inc. | 6,542 | 150,270 | ||||||
| Verso Paper Corp. | 5,300 | 5,565 | ||||||
| Wausau Paper Corp. | 18,547 | 161,915 | ||||||
| 1,070,242 | ||||||||
Personal Products 0.4% | ||||||||
| American Oriental Bioengineering, Inc.* | 26,000 | 110,240 | ||||||
| Chattem, Inc.* | 7,226 | 396,780 | ||||||
| China Sky One Medical, Inc.* | 3,000 | 42,330 | ||||||
| Elizabeth Arden, Inc.* | 10,307 | 89,259 | ||||||
| Inter Parfums, Inc. | 5,950 | 46,172 | ||||||
| Mannatech, Inc. (a) | 6,500 | 28,405 | ||||||
| Nu Skin Enterprises, Inc., Class A | 20,798 | 266,630 | ||||||
| Prestige Brands Holdings, Inc.* | 14,200 | 91,732 | ||||||
| Schiff Nutrition International, Inc.* | 4,100 | 19,680 | ||||||
| USANA Health Sciences, Inc.* (a) | 2,810 | 67,187 | ||||||
| 1,158,415 | ||||||||
Pharmaceuticals 1.2% | ||||||||
| Acura Pharmaceuticals, Inc.* (a) | 3,400 | 23,596 | ||||||
| Adolor Corp.* | 19,500 | 43,875 | ||||||
| Akorn, Inc.* | 23,400 | 19,656 | ||||||
| Alexza Pharmaceuticals, Inc.* | 9,800 | 16,268 | ||||||
| Ardea Biosciences, Inc.* (a) | 5,900 | 72,806 | ||||||
| Auxilium Pharmaceuticals, Inc.* | 17,300 | 396,170 | ||||||
| Biodel, Inc.* | 5,000 | 24,000 | ||||||
| BioForm Medical, Inc.* | 9,600 | 10,752 | ||||||
| BioMimetic Therapeutics, Inc.* | 5,500 | 47,355 | ||||||
| Cadence Pharmaceuticals, Inc.* | 10,200 | 103,224 | ||||||
| Caraco Pharmaceutical Laboratories Ltd.* | 4,600 | 20,608 | ||||||
| Columbia Laboratories, Inc.* | 21,300 | 29,607 | ||||||
| Cypress Bioscience, Inc.* | 15,820 | 113,904 | ||||||
| Depomed, Inc.* | 21,600 | 44,928 | ||||||
| Discovery Laboratories, Inc.* | 43,300 | 37,671 | ||||||
| Durect Corp.* | 33,500 | 81,740 | ||||||
| Inspire Pharmaceuticals, Inc.* | 17,800 | 79,922 | ||||||
| Javelin Pharmaceuticals, Inc.* (a) | 22,400 | 30,016 | ||||||
| Jazz Pharmaceuticals, Inc.* | 2,000 | 1,100 | ||||||
| KV Pharmaceutical Co., Class A* (a) | 14,023 | 19,632 | ||||||
| MAP Pharmaceuticals, Inc.* | 3,200 | 9,024 | ||||||
| Medicines Co. (The)* | 21,879 | 218,353 | ||||||
| Medicis Pharmaceutical Corp., Class A | 23,660 | 380,216 | ||||||
| MiddleBrook Pharmaceuticals, Inc.* (a) | 14,900 | 21,009 | ||||||
| Noven Pharmaceuticals, Inc.* | 10,400 | 107,328 | ||||||
| Obagi Medical Products, Inc.* | 7,400 | 44,474 | ||||||
| Optimer Pharmaceuticals, Inc.* (a) | 11,400 | 159,258 | ||||||
| Pain Therapeutics, Inc.* | 14,510 | 68,778 | ||||||
| Par Pharmaceutical Cos., Inc.* | 14,495 | 155,531 | ||||||
| Pozen, Inc.* | 11,005 | 84,298 | ||||||
| Questcor Pharmaceuticals, Inc.* | 20,700 | 93,150 | ||||||
| Salix Pharmaceuticals Ltd.* | 20,070 | 220,770 | ||||||
| Sucampo Pharmaceuticals, Inc., Class A* | 3,800 | 24,700 | ||||||
| Valeant Pharmaceuticals International* | 26,700 | 447,492 | ||||||
| ViroPharma, Inc.* | 33,100 | 186,353 | ||||||
| Vivus, Inc.* | 29,000 | 116,290 | ||||||
| XenoPort, Inc.* | 11,400 | 155,838 | ||||||
| 3,709,692 | ||||||||
Professional Services 1.6% | ||||||||
| Administaff, Inc. | 9,019 | 240,447 | ||||||
| Advisory Board Co. (The)* | 6,700 | 124,888 | ||||||
| CBIZ, Inc.* | 18,843 | 148,106 | ||||||
| CDI Corp. | 5,221 | 62,391 | ||||||
| COMSYS IT Partners, Inc.* | 6,090 | 32,155 | ||||||
| CoStar Group, Inc.* | 8,165 | 302,513 | ||||||
| CRA International, Inc.* | 4,631 | 108,088 | ||||||
| Duff & Phelps Corp., Class A* | 4,400 | 82,984 | ||||||
| Exponent, Inc.* | 5,700 | 159,030 | ||||||
| First Advantage Corp., Class A* | 4,236 | 60,744 | ||||||
| Heidrick & Struggles International, Inc. | 7,255 | 122,610 | ||||||
| Hill International, Inc.* | 10,000 | 40,400 | ||||||
| Hudson Highland Group, Inc.* | 10,850 | 17,794 | ||||||
| Huron Consulting Group, Inc.* | 8,700 | 417,165 | ||||||
| ICF International, Inc.* | 2,800 | 77,028 | ||||||
| Kelly Services, Inc., Class A | 11,040 | 125,414 | ||||||
| Kforce, Inc.* | 12,875 | 140,466 | ||||||
| Korn/Ferry International* | 19,479 | 206,283 | ||||||
| LECG Corp.* | 10,900 | 31,719 | ||||||
| MPS Group, Inc.* | 39,626 | 318,593 | ||||||
| Navigant Consulting, Inc.* | 20,269 | 298,157 | ||||||
| Odyssey Marine Exploration, Inc.* (a) | 21,500 | 74,820 | ||||||
| On Assignment, Inc.* | 15,000 | 52,800 | ||||||
| Resources Connection, Inc.* | 19,055 | 372,525 | ||||||
| School Specialty, Inc.* | 7,908 | 148,433 | ||||||
| Spherion Corp.* | 21,767 | 78,144 | ||||||
| TrueBlue, Inc.* | 18,669 | 181,276 | ||||||
| Volt Information Sciences, Inc.* | 5,057 | 36,309 | ||||||
| VSE Corp. | 1,600 | 47,824 | ||||||
| Watson Wyatt Worldwide, Inc., Class A | 17,485 | 927,579 | ||||||
| 5,036,685 | ||||||||
2009 Semiannual Report 129
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Real Estate Investment Trusts 5.4% | ||||||||
| Acadia Realty Trust | 15,519 | $ | 225,025 | |||||
| Agree Realty Corp. | 3,300 | 52,668 | ||||||
| Alexander’s, Inc. | 800 | 174,464 | ||||||
| American Campus Communities, Inc. | 17,804 | 385,991 | ||||||
| American Capital Agency Corp. | 4,200 | 78,750 | ||||||
| Anthracite Capital, Inc. (a) | 24,151 | 9,660 | ||||||
| Anworth Mortgage Asset Corp. | 41,600 | 267,488 | ||||||
| Arbor Realty Trust, Inc. (a) | 6,030 | 16,944 | ||||||
| Ashford Hospitality Trust, Inc. | 36,410 | 109,958 | ||||||
| Associated Estates Realty Corp. | 6,600 | 36,630 | ||||||
| BioMed Realty Trust, Inc. | 33,703 | 384,551 | ||||||
| Capital Trust, Inc., Class A | 7,368 | 12,526 | ||||||
| CapLease, Inc. | 19,000 | 56,430 | ||||||
| Capstead Mortgage Corp. | 26,500 | 301,835 | ||||||
| Care Investment Trust, Inc. | 5,500 | 28,050 | ||||||
| Cedar Shopping Centers, Inc. | 16,300 | 58,517 | ||||||
| Chimera Investment Corp. | 57,200 | 201,916 | ||||||
| Cogdell Spencer, Inc. | 5,100 | 31,620 | ||||||
| Colonial Properties Trust | 20,000 | 144,800 | ||||||
| Corporate Office Properties Trust SBI MD | 17,980 | 549,469 | ||||||
| Cousins Properties, Inc. (a) | 18,302 | 154,652 | ||||||
| DCT Industrial Trust, Inc. | 72,070 | 318,549 | ||||||
| DiamondRock Hospitality Co. | 43,460 | 282,055 | ||||||
| DuPont Fabros Technology, Inc. | 5,600 | 47,544 | ||||||
| EastGroup Properties, Inc. | 10,410 | 349,880 | ||||||
| Education Realty Trust, Inc. | 12,100 | 56,749 | ||||||
| Entertainment Properties Trust | 14,614 | 337,730 | ||||||
| Equity Lifestyle Properties, Inc. | 8,536 | 338,623 | ||||||
| Equity One, Inc. (a) | 14,025 | 208,692 | ||||||
| Extra Space Storage, Inc. | 35,940 | 255,533 | ||||||
| FelCor Lodging Trust, Inc. | 26,600 | 52,668 | ||||||
| First Industrial Realty Trust, Inc. (a) | 18,802 | 70,884 | ||||||
| First Potomac Realty Trust | 11,500 | 112,585 | ||||||
| Franklin Street Properties Corp. | 24,800 | 331,080 | ||||||
| Friedman Billings Ramsey Group, Inc., Class A* | 45,800 | 12,366 | ||||||
| Getty Realty Corp. | 7,335 | 143,913 | ||||||
| Glimcher Realty Trust | 16,178 | 39,636 | ||||||
| Gramercy Capital Corp. | 17,208 | 37,169 | ||||||
| Hatteras Financial Corp. | 6,500 | 156,455 | ||||||
| Healthcare Realty Trust, Inc. | 24,700 | 414,713 | ||||||
| Hersha Hospitality Trust | 20,400 | 74,460 | ||||||
| Highwoods Properties, Inc. | 26,664 | 639,669 | ||||||
| Home Properties, Inc. | 13,290 | 484,288 | ||||||
| Inland Real Estate Corp. | 24,070 | 211,335 | ||||||
| Investors Real Estate Trust | 23,597 | 218,272 | ||||||
| Kite Realty Group Trust | 10,069 | 35,242 | ||||||
| LaSalle Hotel Properties | 16,886 | 201,957 | ||||||
| Lexington Realty Trust | 35,502 | 136,683 | ||||||
| LTC Properties, Inc. | 9,740 | 175,417 | ||||||
| Maguire Properties, Inc.* | 15,810 | 17,233 | ||||||
| Medical Properties Trust, Inc. | 33,510 | 178,943 | ||||||
| MFA Financial, Inc. | 93,374 | 549,973 | ||||||
Mid-America Apartment Communities, Inc. | 11,792 | 436,186 | ||||||
| Mission West Properties, Inc. | 8,100 | 55,161 | ||||||
| Monmouth Real Estate Investment Corp., Class A | 8,200 | 50,184 | ||||||
| National Health Investors, Inc. | 9,337 | 250,418 | ||||||
| National Retail Properties, Inc. | 32,840 | 582,582 | ||||||
| Newcastle Investment Corp. | 17,997 | 11,158 | ||||||
| NorthStar Realty Finance Corp. (a) | 23,823 | 75,519 | ||||||
| Omega Healthcare Investors, Inc. | 34,400 | 540,768 | ||||||
| One Liberty Properties, Inc. | 3,660 | 14,933 | ||||||
| Parkway Properties, Inc. | 8,182 | 113,484 | ||||||
| Pennsylvania Real Estate Investment Trust (a) | 14,867 | 115,219 | ||||||
| Post Properties, Inc. | 18,576 | 237,030 | ||||||
| Potlatch Corp. | 16,541 | 486,471 | ||||||
| PS Business Parks, Inc. | 6,345 | 277,594 | ||||||
| RAIT Financial Trust | 26,343 | 38,988 | ||||||
| Ramco-Gershenson Properties Trust | 6,639 | 73,029 | ||||||
| Realty Income Corp. (a) | 42,300 | 944,559 | ||||||
| Redwood Trust, Inc. | 25,220 | 410,329 | ||||||
| Resource Capital Corp. | 9,100 | 28,665 | ||||||
| Saul Centers, Inc. | 4,045 | 128,793 | ||||||
| Senior Housing Properties Trust | 49,397 | 809,617 | ||||||
| Sovran Self Storage, Inc. | 9,201 | 207,391 | ||||||
| Strategic Hotels & Resorts, Inc. | 30,732 | 25,815 | ||||||
| Sun Communities, Inc. | 6,910 | 101,231 | ||||||
| Sunstone Hotel Investors, Inc. | 22,800 | 120,612 | ||||||
| Tanger Factory Outlet Centers (a) | 13,197 | 439,724 | ||||||
| U-Store-It Trust | 21,010 | 72,064 | ||||||
| Universal Health Realty Income Trust | 4,973 | 159,235 | ||||||
| Urstadt Biddle Properties, Inc., Class A | 8,680 | 133,325 | ||||||
| Washington Real Estate Investment Trust | 21,984 | 468,919 | ||||||
| Winthrop Realty Trust | 4,760 | 41,888 | ||||||
| 17,223,131 | ||||||||
Real Estate Management & Development 0.2% | ||||||||
| Avatar Holdings, Inc.* | 2,592 | 48,159 | ||||||
| Consolidated-Tomoka Land Co. | 2,280 | 79,321 | ||||||
| Forestar Group, Inc.* | 14,100 | 181,326 | ||||||
| FX Real Estate and Entertainment, Inc.* | 2,440 | 293 | ||||||
| Grubb & Ellis Co. | 13,200 | 12,276 | ||||||
| Maui Land & Pineapple Co., Inc.* (a) | 1,937 | 12,300 | ||||||
| Stratus Properties, Inc.* | 2,500 | 22,575 | ||||||
| Tejon Ranch Co.* | 4,643 | 107,718 | ||||||
| Thomas Properties Group, Inc. | 10,000 | 20,100 | ||||||
| 484,068 | ||||||||
Road & Rail 0.8% | ||||||||
| Amerco, Inc.* | 3,904 | 126,685 | ||||||
| Arkansas Best Corp. | 9,525 | 219,837 | ||||||
130 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Road & Rail (continued) | ||||||||
| Celadon Group, Inc.* | 9,000 | $ | 61,560 | |||||
| Dollar Thrifty Automotive Group, Inc.* (a) | 9,400 | 35,344 | ||||||
| Genesee & Wyoming, Inc., Class A* | 12,880 | 386,400 | ||||||
| Heartland Express, Inc. | 22,846 | 341,548 | ||||||
| Knight Transportation, Inc. | 24,020 | 424,673 | ||||||
| Marten Transport Ltd.* | 6,445 | 133,669 | ||||||
| Old Dominion Freight Line, Inc.* | 11,579 | 325,949 | ||||||
| Patriot Transportation Holding, Inc.* | 600 | 41,424 | ||||||
| Saia, Inc.* | 5,655 | 73,854 | ||||||
| Universal Truckload Services, Inc. | 2,400 | 29,568 | ||||||
| Werner Enterprises, Inc. | 17,862 | 292,044 | ||||||
| YRC Worldwide, Inc.* (a) | 24,000 | 72,720 | ||||||
| 2,565,275 | ||||||||
Semiconductors & Semiconductor Equipment 3.3% | ||||||||
| Actel Corp.* | 10,609 | 131,233 | ||||||
| Advanced Analogic Technologies, Inc.* | 18,800 | 90,240 | ||||||
| Advanced Energy Industries, Inc.* | 13,745 | 115,870 | ||||||
| Amkor Technology, Inc.* | 45,800 | 197,398 | ||||||
| Anadigics, Inc.* | 26,400 | 79,728 | ||||||
| Applied Micro Circuits Corp.* | 27,217 | 148,333 | ||||||
| Atheros Communications, Inc.* | 24,865 | 428,175 | ||||||
| ATMI, Inc.* | 13,457 | 212,486 | ||||||
| AuthenTec, Inc.* | 10,800 | 20,088 | ||||||
| Axcelis Technologies, Inc.* | 33,133 | 15,573 | ||||||
| Brooks Automation, Inc.* | 26,678 | 165,937 | ||||||
| Cabot Microelectronics Corp.* | 9,832 | 283,260 | ||||||
| Cavium Networks, Inc.* | 12,700 | 159,766 | ||||||
| Ceva, Inc.* | 8,300 | 68,475 | ||||||
| Cirrus Logic, Inc.* | 27,297 | 126,931 | ||||||
| Cohu, Inc. | 9,745 | 95,111 | ||||||
| Cymer, Inc.* | 12,738 | 361,887 | ||||||
| Diodes, Inc.* | 12,140 | 180,643 | ||||||
| DSP Group, Inc.* | 9,748 | 61,315 | ||||||
| EMCORE Corp.* (a) | 32,600 | 40,424 | ||||||
| Entegris, Inc.* | 46,754 | 69,196 | ||||||
| Entropic Communications, Inc.* | 400 | 732 | ||||||
| Exar Corp.* | 15,764 | 96,949 | ||||||
| FEI Co.* | 15,268 | 262,304 | ||||||
| FormFactor, Inc.* | 20,437 | 356,217 | ||||||
| Hittite Microwave Corp.* | 8,200 | 304,712 | ||||||
| IXYS Corp. | 10,002 | 95,419 | ||||||
| Kopin Corp.* | 29,100 | 80,025 | ||||||
| Kulicke & Soffa Industries, Inc.* | 25,668 | 102,672 | ||||||
| Lattice Semiconductor Corp.* | 48,575 | 84,520 | ||||||
| LTX-Credence Corp.* | 47,873 | 23,458 | ||||||
| Mattson Technology, Inc.* | 18,674 | 21,475 | ||||||
| Micrel, Inc. | 19,958 | 149,685 | ||||||
| Microsemi Corp.* | 33,708 | 452,361 | ||||||
| Microtune, Inc.* | 22,350 | 46,712 | ||||||
| MIPS Technologies, Inc.* | 18,674 | 61,998 | ||||||
| MKS Instruments, Inc.* | 20,923 | 327,445 | ||||||
| Monolithic Power Systems, Inc.* | 11,000 | 203,500 | ||||||
| NetLogic Microsystems, Inc.* | 7,200 | 234,648 | ||||||
| NVE Corp.* | 1,900 | 72,276 | ||||||
| OmniVision Technologies, Inc.* | 21,428 | 203,780 | ||||||
| Pericom Semiconductor Corp.* | 9,300 | 82,863 | ||||||
| Photronics, Inc.* | 17,892 | 29,880 | ||||||
| PLX Technology, Inc.* | 11,700 | 39,663 | ||||||
| PMC ��� Sierra, Inc.* | 91,600 | 725,472 | ||||||
| Power Integrations, Inc. | 11,800 | 251,340 | ||||||
| RF Micro Devices, Inc.* | 110,560 | 233,282 | ||||||
| Rubicon Technology, Inc.* | 5,600 | 47,488 | ||||||
| Rudolph Technologies, Inc.* | 13,287 | 69,491 | ||||||
| Semitool, Inc.* | 9,618 | 45,686 | ||||||
| Semtech Corp.* | 25,935 | 373,983 | ||||||
| Sigma Designs, Inc.* | 11,200 | 144,704 | ||||||
| Silicon Image, Inc.* | 30,906 | 84,064 | ||||||
| Silicon Storage Technology, Inc.* | 32,984 | 61,020 | ||||||
| SiRF Technology Holdings, Inc.* (a) | 25,075 | 69,709 | ||||||
| Skyworks Solutions, Inc.* | 68,337 | 604,099 | ||||||
| Spansion, Inc., Class A* | 43,700 | 6,992 | ||||||
| Standard Microsystems Corp.* | 9,461 | 150,051 | ||||||
| Supertex, Inc.* | 4,580 | 117,798 | ||||||
| Techwell, Inc.* | 6,300 | 46,431 | ||||||
| Tessera Technologies, Inc.* | 20,328 | 285,405 | ||||||
| Trident Microsystems, Inc.* | 25,873 | 35,446 | ||||||
| TriQuint Semiconductor, Inc.* | 60,239 | 230,715 | ||||||
| Ultra Clean Holdings* | 8,300 | 15,106 | ||||||
| Ultratech, Inc.* | 9,850 | 133,172 | ||||||
| Veeco Instruments, Inc.* | 13,442 | 97,320 | ||||||
| Volterra Semiconductor Corp.* | 10,400 | 119,496 | ||||||
| Zoran Corp.* | 21,759 | 194,525 | ||||||
| 10,528,158 | ||||||||
Software 4.6% | ||||||||
| ACI Worldwide, Inc.* | 14,396 | 248,619 | ||||||
| Actuate Corp.* | 21,100 | 78,070 | ||||||
| Advent Software, Inc.* (a) | 6,793 | 225,799 | ||||||
| American Software, Inc., Class A | 9,300 | 51,615 | ||||||
| ArcSight, Inc.* | 2,800 | 42,280 | ||||||
| Ariba, Inc.* | 35,875 | 344,759 | ||||||
| Blackbaud, Inc. | 18,794 | 286,045 | ||||||
| Blackboard, Inc.* | 13,000 | 442,390 | ||||||
| Bottomline Technologies, Inc.* | 9,100 | 71,435 | ||||||
| Callidus Software, Inc.* | 12,500 | 40,375 | ||||||
| Commvault Systems, Inc.* | 17,900 | 222,855 | ||||||
| Concur Technologies, Inc.* | 18,100 | 489,967 | ||||||
| Deltek, Inc.* | 5,400 | 22,248 | ||||||
| DemandTec, Inc.* | 8,400 | 60,648 | ||||||
| Digimarc Corp.* | 2,742 | 27,310 | ||||||
| Double-Take Software, Inc.* | 7,100 | 57,652 | ||||||
| Ebix, Inc.* | 2,700 | 75,060 | ||||||
| Entrust, Inc.* | 25,300 | 49,335 | ||||||
2009 Semiannual Report 131
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Software (continued) | ||||||||
| Epicor Software Corp.* | 24,989 | $ | 137,939 | |||||
| EPIQ Systems, Inc.* | 14,875 | 230,116 | ||||||
| Fair Isaac Corp. | 20,400 | 343,128 | ||||||
| FalconStor Software, Inc.* | 15,699 | 58,086 | ||||||
| Guidance Software, Inc.* | 3,900 | 14,352 | ||||||
| i2 Technologies, Inc.* | 6,600 | 58,872 | ||||||
| Informatica Corp.* | 37,153 | 590,733 | ||||||
| Interactive Intelligence, Inc.* | 5,400 | 59,400 | ||||||
| Jack Henry & Associates, Inc. | 30,335 | 546,637 | ||||||
| JDA Software Group, Inc.* | 10,829 | 152,797 | ||||||
| Kenexa Corp.* | 9,500 | 62,320 | ||||||
| Lawson Software, Inc.* | 49,540 | 267,021 | ||||||
| Macrovision Solutions Corp.* | 34,019 | 687,864 | ||||||
| Magma Design Automation, Inc.* | 18,198 | 32,392 | ||||||
| Manhattan Associates, Inc.* | 10,340 | 171,851 | ||||||
| Mentor Graphics Corp.* | 38,100 | 256,032 | ||||||
| MICROS Systems, Inc.* | 34,168 | 716,845 | ||||||
| MicroStrategy, Inc., Class A* | 3,786 | 147,313 | ||||||
| Monotype Imaging Holdings, Inc.* | 6,400 | 23,744 | ||||||
| MSC.Software Corp.* | 18,900 | 116,046 | ||||||
| Net 1 UEPS Technologies, Inc.* | 20,900 | 344,850 | ||||||
| NetScout Systems, Inc.* | 12,400 | 111,476 | ||||||
| NetSuite, Inc.* (a) | 3,000 | 41,970 | ||||||
| OpenTV Corp., Class A* | 35,700 | 52,479 | ||||||
| Opnet Technologies, Inc.* | 5,400 | 46,440 | ||||||
| Parametric Technology Corp.* | 47,595 | 530,684 | ||||||
| Pegasystems, Inc. | 6,100 | 106,567 | ||||||
| Phoenix Technologies Ltd.* | 12,400 | 35,340 | ||||||
| Progress Software Corp.* | 17,435 | 369,448 | ||||||
| PROS Holdings, Inc.* | 5,300 | 34,238 | ||||||
| QAD, Inc. | 5,200 | 13,832 | ||||||
| Quality Systems, Inc. | 7,354 | 394,321 | ||||||
| Quest Software, Inc.* | 27,162 | 394,664 | ||||||
| Radiant Systems, Inc.* | 11,635 | 85,750 | ||||||
| Renaissance Learning, Inc. | 3,965 | 38,064 | ||||||
| Smith Micro Software, Inc.* | 12,500 | 107,500 | ||||||
| Solera Holdings, Inc.* | 23,200 | 529,424 | ||||||
| Sonic Solutions, Inc.* | 9,600 | 21,120 | ||||||
| Sourcefire, Inc.* | 8,300 | 89,889 | ||||||
| SPSS, Inc.* | 7,473 | 230,916 | ||||||
| SuccessFactors, Inc.* | 10,200 | 88,842 | ||||||
| Sybase, Inc.* | 32,600 | 1,107,096 | ||||||
| Symyx Technologies* | 14,159 | 68,530 | ||||||
| Synchronoss Technologies, Inc.* | 8,500 | 112,880 | ||||||
| Take-Two Interactive Software, Inc. | 32,300 | 293,284 | ||||||
| Taleo Corp., Class A* | 10,900 | 130,909 | ||||||
| TeleCommunication Systems, Inc., Class A* | 14,200 | 139,302 | ||||||
| THQ, Inc.* | 28,041 | 95,900 | ||||||
| TIBCO Software, Inc.* | 73,360 | 463,635 | ||||||
| TiVo, Inc.* | 42,779 | 320,843 | ||||||
| Tyler Technologies, Inc.* | 15,600 | 257,400 | ||||||
| Ultimate Software Group, Inc.* | 10,300 | 192,919 | ||||||
| Unica Corp.* | 5,800 | 27,782 | ||||||
| VASCO Data Security International, Inc.* | 11,300 | 78,196 | ||||||
| Wind River Systems, Inc.* | 28,546 | 209,242 | ||||||
| 14,675,682 | ||||||||
Specialty Retail 3.5% | ||||||||
| Aaron Rents, Inc. | 19,001 | 637,674 | ||||||
| Aeropostale, Inc.* | 27,599 | 937,538 | ||||||
| America’s Car-Mart, Inc.* | 4,200 | 68,124 | ||||||
| Asbury Automotive Group, Inc. | 13,460 | 130,158 | ||||||
| Bebe Stores, Inc. | 16,100 | 148,120 | ||||||
| Big 5 Sporting Goods Corp. | 9,200 | 75,716 | ||||||
| Blockbuster, Inc., Class A* (a) | 72,680 | 58,144 | ||||||
| Borders Group, Inc.* | 21,400 | 58,422 | ||||||
| Brown Shoe Co., Inc. | 17,854 | 114,801 | ||||||
| Buckle, Inc. (The)(a) | 9,757 | 364,619 | ||||||
Build-A-Bear Workshop, Inc.* | 7,000 | 38,220 | ||||||
| Cabela’s, Inc.* | 16,505 | 211,429 | ||||||
| Cache, Inc.* | 4,900 | 22,295 | ||||||
| Casual Male Retail Group, Inc.* | 12,106 | 15,375 | ||||||
| Cato Corp. (The), Class A | 11,591 | 222,779 | ||||||
| Charlotte Russe Holding, Inc.* | 8,836 | 110,892 | ||||||
| Charming Shoppes, Inc.* | 47,710 | 166,508 | ||||||
| Chico’s FAS, Inc.* | 74,000 | 565,360 | ||||||
| Children’s Place Retail Stores, Inc. (The)* | 9,811 | 279,025 | ||||||
| Christopher & Banks Corp. | 14,839 | 82,505 | ||||||
| Citi Trends, Inc.* | 6,000 | 147,360 | ||||||
| Coldwater Creek, Inc.* | 24,000 | 82,800 | ||||||
| Collective Brands, Inc.* | 26,814 | 389,339 | ||||||
| Conn’s, Inc.* (a) | 4,100 | 67,404 | ||||||
| Dress Barn, Inc.* | 18,929 | 286,585 | ||||||
| DSW, Inc., Class A* (a) | 5,665 | 61,579 | ||||||
| Finish Line (The), Class A | 17,956 | 152,626 | ||||||
| Genesco, Inc.* | 8,020 | 182,696 | ||||||
| Group 1 Automotive, Inc. | 9,763 | 207,952 | ||||||
| Gymboree Corp.* | 11,902 | 409,429 | ||||||
| Haverty Furniture Cos., Inc. | 7,475 | 81,104 | ||||||
| hhgregg, Inc.* | 5,300 | 87,980 | ||||||
| Hibbett Sports, Inc.* | 11,959 | 249,345 | ||||||
| HOT Topic, Inc.* | 18,338 | 224,457 | ||||||
| J Crew Group, Inc.* (a) | 17,490 | 301,003 | ||||||
| Jo-Ann Stores, Inc.* | 10,683 | 195,713 | ||||||
| JOS. A. Bank Clothiers, Inc.* | 7,655 | 309,568 | ||||||
| Lumber Liquidators, Inc.* | 3,900 | 58,344 | ||||||
| MarineMax, Inc.* | 7,100 | 32,305 | ||||||
| Men’s Wearhouse, Inc. (The) | 21,600 | 402,624 | ||||||
| Midas, Inc.* | 5,700 | 57,000 | ||||||
| Monro Muffler, Inc. | 6,875 | 171,669 | ||||||
| New York & Co., Inc.* | 9,800 | 56,840 | ||||||
| Pacific Sunwear of California* | 27,760 | 112,428 | ||||||
| PEP Boys-Manny Moe & Jack | 17,783 | 131,594 | ||||||
132 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Specialty Retail (continued) | ||||||||
| Pier 1 Imports, Inc.* | 31,700 | $ | 59,279 | |||||
Rent-A-Center, Inc.* | 27,150 | 522,637 | ||||||
| REX Stores Corp.* | 3,400 | 40,460 | ||||||
| Sally Beauty Holdings, Inc.* | 39,600 | 293,040 | ||||||
| Shoe Carnival, Inc.* | 3,700 | 43,142 | ||||||
| Sonic Automotive, Inc., Class A (a) | 11,152 | 57,544 | ||||||
| Stage Stores, Inc. | 16,101 | 197,237 | ||||||
| Stein Mart, Inc.* | 10,733 | 46,903 | ||||||
| Syms Corp.* | 2,700 | 15,282 | ||||||
| Systemax, Inc.* | 4,600 | 77,556 | ||||||
| Talbots, Inc.(a) | 10,400 | 24,544 | ||||||
| Tractor Supply Co.* | 13,500 | 545,130 | ||||||
| Tween Brands, Inc.* | 10,607 | 30,972 | ||||||
| Ulta Salon, Cosmetics & Fragrance, Inc.* | 8,600 | 75,250 | ||||||
| Wet Seal, Inc. (The), Class A* | 38,705 | 147,466 | ||||||
| Zale Corp.* | 13,602 | 50,599 | ||||||
| Zumiez, Inc.* | 8,300 | 100,098 | ||||||
| 11,094,587 | ||||||||
Textiles, Apparel & Luxury Goods 1.6% | ||||||||
| American Apparel, Inc.* | 14,300 | 96,525 | ||||||
| Carter’s, Inc.* | 23,708 | 506,877 | ||||||
| Cherokee, Inc. | 3,200 | 58,464 | ||||||
| Columbia Sportswear Co.(a) | 5,200 | 159,744 | ||||||
| CROCS, Inc.* | 35,200 | 79,200 | ||||||
| Deckers Outdoor Corp.* | 5,478 | 309,617 | ||||||
| FGX International Holdings Ltd.* | 5,600 | 64,512 | ||||||
| Fossil, Inc.* | 19,045 | 383,947 | ||||||
| Fuqi International, Inc.* | 3,700 | 23,236 | ||||||
| G-III Apparel Group Ltd.* | 5,600 | 44,912 | ||||||
| Iconix Brand Group, Inc.* | 24,200 | 345,092 | ||||||
| K-Swiss, Inc., Class A | 10,881 | 109,245 | ||||||
| Kenneth Cole Productions, Inc., Class A | 3,870 | 26,781 | ||||||
| Lululemon Athletica, Inc.* (a) | 8,200 | 114,390 | ||||||
| Maidenform Brands, Inc.* | 9,500 | 121,125 | ||||||
| Movado Group, Inc. | 6,737 | 61,778 | ||||||
| Oxford Industries, Inc. | 6,057 | 58,995 | ||||||
| Perry Ellis International, Inc.* | 5,182 | 37,984 | ||||||
| Quiksilver, Inc.* | 53,100 | 87,615 | ||||||
| Skechers U.S.A., Inc., Class A* | 13,785 | 161,285 | ||||||
| Steven Madden Ltd.* | 7,398 | 217,649 | ||||||
| Timberland Co. (The) Class A* | 20,100 | 326,424 | ||||||
| True Religion Apparel, Inc.* | 7,200 | 113,472 | ||||||
| Under Armour, Inc., Class A* (a) | 13,830 | 325,558 | ||||||
| Unifi, Inc.* | 18,800 | 16,920 | ||||||
| UniFirst Corp. | 6,043 | 225,344 | ||||||
| Volcom, Inc.* | 7,700 | 103,873 | ||||||
| Warnaco Group, Inc. (The)* | 18,623 | 537,087 | ||||||
| Weyco Group, Inc. | 2,700 | 74,115 | ||||||
| Wolverine World Wide, Inc. | 20,846 | 434,222 | ||||||
| 5,225,988 | ||||||||
Thrifts & Mortgage Finance 1.5% | ||||||||
| Abington Bancorp, Inc. | 10,100 | 88,779 | ||||||
| Anchor Bancorp Wisconsin, Inc. | 8,317 | 13,557 | ||||||
| Bank Mutual Corp. | 20,260 | 208,070 | ||||||
| BankFinancial Corp. | 8,300 | 88,810 | ||||||
| Beneficial Mutual Bancorp, Inc.* | 13,500 | 135,810 | ||||||
| Berkshire Hills Bancorp, Inc. | 4,940 | 111,446 | ||||||
| Brookline Bancorp, Inc. | 24,485 | 242,891 | ||||||
| Brooklyn Federal Bancorp, Inc. | 1,700 | 21,114 | ||||||
| Clifton Savings Bancorp, Inc. | 4,400 | 48,312 | ||||||
| Corus Bankshares, Inc.* | 14,240 | 2,990 | ||||||
| Danvers Bancorp, Inc. | 7,500 | 108,825 | ||||||
| Dime Community Bancshares | 9,964 | 83,100 | ||||||
| Doral Financial Corp.* (a) | 2,200 | 10,450 | ||||||
| ESSA Bancorp, Inc. | 6,400 | 87,296 | ||||||
| Federal Agricultural Mortgage Corp., Class C | 4,100 | 12,956 | ||||||
| First Financial Holdings, Inc. | 4,900 | 44,100 | ||||||
| First Financial Northwest, Inc.(a) | 9,400 | 75,858 | ||||||
| First Niagara Financial Group, Inc. | 61,390 | 831,221 | ||||||
| First Place Financial Corp. | 7,235 | 41,095 | ||||||
| Flagstar Bancorp, Inc.* (a) | 28,195 | 40,883 | ||||||
| Flushing Financial Corp. | 9,050 | 83,351 | ||||||
| Fox Chase Bancorp, Inc.* | 2,700 | 25,596 | ||||||
| Guaranty Financial Group, Inc.* | 37,200 | 21,948 | ||||||
| Home Federal Bancorp, Inc. | 2,900 | 29,261 | ||||||
| Kearny Financial Corp. | 7,300 | 81,395 | ||||||
| Meridian Interstate Bancorp, Inc.* | 4,400 | 35,112 | ||||||
| NASB Financial, Inc. | 1,400 | 30,884 | ||||||
| NewAlliance Bancshares, Inc. | 45,520 | 587,663 | ||||||
| Northwest Bancorp, Inc. | 7,190 | 126,400 | ||||||
| OceanFirst Financial Corp. | 3,700 | 44,955 | ||||||
| Ocwen Financial Corp.* | 14,960 | 166,355 | ||||||
| Oritani Financial Corp.* | 5,000 | 70,950 | ||||||
| PMI Group, Inc. (The) | 33,300 | 20,979 | ||||||
| Provident Financial Services, Inc. | 25,106 | 267,881 | ||||||
| Provident New York Bancorp | 16,875 | 142,931 | ||||||
| Radian Group, Inc. | 34,000 | 58,820 | ||||||
| Rockville Financial, Inc. | 3,700 | 34,817 | ||||||
| Roma Financial Corp. | 3,700 | 48,137 | ||||||
| Trustco Bank Corp. | 31,808 | 190,848 | ||||||
| United Community Financial Corp. | 11,699 | 24,217 | ||||||
| United Financial Bancorp, Inc. | 7,300 | 96,871 | ||||||
| ViewPoint Financial Group | 4,600 | 71,576 | ||||||
| Waterstone Financial, Inc.* | 2,660 | 7,581 | ||||||
| Westfield Financial, Inc. | 13,028 | 121,683 | ||||||
| WSFS Financial Corp. | 2,609 | 70,730 | ||||||
| 4,758,504 | ||||||||
Tobacco 0.2% | ||||||||
| Alliance One International, Inc.* | 37,311 | 139,916 | ||||||
| Star Scientific, Inc.* (a) | 30,800 | 151,536 | ||||||
2009 Semiannual Report 133
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Tobacco (continued) | ||||||||
| Universal Corp. | 10,032 | $ | 302,565 | |||||
| Vector Group Ltd. | 13,889 | 187,224 | ||||||
| 781,241 | ||||||||
Trading Companies & Distributors 0.7% | ||||||||
| Aceto Corp. | 10,000 | 71,500 | ||||||
| Aircastle Ltd. | 19,600 | 129,360 | ||||||
| Applied Industrial Technologies, Inc. | 17,712 | 398,520 | ||||||
| Beacon Roofing Supply, Inc.* | 18,570 | 295,263 | ||||||
| DXP Enterprises, Inc.* | 3,000 | 39,840 | ||||||
| H&E Equipment Services, Inc.* | 6,900 | 51,957 | ||||||
| Houston Wire & Cable Co. | 7,500 | 72,300 | ||||||
| Interline Brands, Inc.* | 13,600 | 176,256 | ||||||
| Kaman Corp. | 10,608 | 179,381 | ||||||
| Lawson Products, Inc. | 1,724 | 19,792 | ||||||
| RSC Holdings, Inc.* (a) | 20,000 | 143,000 | ||||||
| Rush Enterprises, Inc., Class A* | 14,150 | 186,214 | ||||||
| TAL International Group, Inc. | 6,100 | 58,438 | ||||||
| Textainer Group Holdings Ltd. | 4,000 | 35,440 | ||||||
| Titan Machinery, Inc.* | 3,000 | 30,390 | ||||||
| Watsco, Inc. | 9,833 | 422,327 | ||||||
| 2,309,978 | ||||||||
Transportation Infrastructure 0.0% | ||||||||
| CAI International, Inc.* | 3,200 | 11,712 | ||||||
Water Utility 0.3% | ||||||||
| American States Water Co. | 7,246 | 250,204 | ||||||
| Cadiz, Inc.* | 4,900 | 29,645 | ||||||
| California Water Service Group | 8,197 | 319,929 | ||||||
| Connecticut Water Service, Inc. | 3,500 | 72,590 | ||||||
| Consolidated Water Co., Inc. | 6,100 | 81,801 | ||||||
| Middlesex Water Co. | 5,600 | 78,960 | ||||||
| SJW Corp. | 5,545 | 139,734 | ||||||
| Southwest Water Co. | 10,325 | 59,266 | ||||||
| 1,032,129 | ||||||||
Wireless Telecommunication Services 0.2% | ||||||||
| Centennial Communications Corp.* | 27,100 | 224,117 | ||||||
| FiberTower Corp.* | 35,180 | 13,713 | ||||||
| ICO Global Communications Holdings Ltd.* | 32,800 | 18,040 | ||||||
| iPCS, Inc.* | 7,200 | 104,544 | ||||||
| Syniverse Holdings, Inc.* | 21,500 | 270,900 | ||||||
| TerreStar Corp.* | 17,900 | 9,129 | ||||||
| USA Mobility, Inc. | 9,124 | 101,459 | ||||||
| Virgin Mobile USA, Inc., Class A* | 12,000 | 24,600 | ||||||
| 766,502 | ||||||||
Total Common Stocks (cost $450,224,672) | 304,877,766 | |||||||
| Exchange Traded Funds 0.0% | ||||||||
| Shares | Market Value | |||||||
Capital Markets 0.0% | ||||||||
| Kayne Anderson Energy Development Co. | 4,300 | 46,913 | ||||||
Total Exchange Traded Funds (cost $96,908) | 46,913 | |||||||
| Rights 0.0% (c) | ||||||||
Software 0.0% | ||||||||
| Deltek, Inc.* | 5,400 | 0 | ||||||
Total Rights (cost $ — ) | 0 | |||||||
| Warrants 0.0% | ||||||||
Hotels, Restaurants & Leisure 0.0% | ||||||||
| Krispy Kreme Doughnuts, Inc.* | 301 | 4 | ||||||
Oil, Gas & Consumable Fuels 0.0% (c) | ||||||||
| GreenHunter Energy, Inc.* | 120 | 0 | ||||||
Total Warrants (cost $ — ) | 4 | |||||||
| Repurchase Agreements 10.6% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $4,753,769, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $4,848,820 | $ | 4,753,745 | 4,753,745 | |||||
| Morgan Stanley, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $20,270,161, collateralized by U.S. Government Agency Mortgages ranging 5.00% — 7.50%, maturing 07/01/19 — 11/01/47; total market value of $20,675,479 (d) | 20,270,077 | 20,270,077 | ||||||
134 Semiannual Report 2009
Repurchase Agreements (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $8,978,449, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $9,157,980 | $ | 8,978,412 | $ | 8,978,412 | ||||
Total Repurchase Agreements (cost $34,002,234) | 34,002,234 | |||||||
Total Investments (cost $484,323,814) (e) — 105.7% | 338,926,917 | |||||||
Liabilities in excess of other assets — (5.7)% | (18,400,240 | ) | ||||||
NET ASSETS — 100.0% | $ | 320,526,677 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a partial position of this security is on loan at April 30, 2009. The total value of securities on loan at April 30, 2009 was $19,637,132. | |
| (b) | Rule 144A, Section 4(2), or other security which is restricted as to resale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at April 30, 2009 was 0 which represents 0.00 of net assets. | |
| (c) | Fair Valued 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 April 30, 2009 was $20,270,077. | |
| (e) | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. | |
| (f) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. |
| Ltd | Limited | |
| NA | National Association | |
| NV | Public Traded Company | |
| SA | Stock Company |
At April 30, 2009, the Fund’s open futures contracts were as follows:
| Market Value | Net Unrealized | |||||||||||||
| Number of | Long | Covered by | Appreciation/ | |||||||||||
| Contracts | Contracts | Expiration | Contracts | (Depreciation) | ||||||||||
| 317 | Russell 2000 Mini | 06/19/09 | $ | 15,428,390 | $ | 1,832,351 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 135
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide Small | |||||
| Cap Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $450,321,580)* | $ | 304,924,683 | |||
| Repurchase agreements, at value and cost | 34,002,234 | ||||
| Total Investments | 338,926,917 | ||||
| Cash | 390 | ||||
| Deposits with broker for futures | 1,596,000 | ||||
| Interest and dividends receivable | 278,748 | ||||
| Receivable for capital shares issued | 213,857 | ||||
| Receivable for investments sold | 748,298 | ||||
| Prepaid expenses and other assets | 32,388 | ||||
| Total Assets | 341,796,598 | ||||
Liabilities: | |||||
| Payable for investments purchased | 750,579 | ||||
| Payable for capital shares redeemed | 95,170 | ||||
| Payable upon return of securities loaned (Note 2) | 20,270,077 | ||||
| Payable for variation margin on futures contracts | 66,570 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 7,950 | ||||
| Fund administration fees | 32,188 | ||||
| Distribution fees | 20,401 | ||||
| Trustee fees | 1,083 | ||||
| Compliance program costs (Note 3) | 4,278 | ||||
| Custodian fees | 5,809 | ||||
| Printing fees | 1,478 | ||||
| Professional fees | 14,338 | ||||
| Total Liabilities | 21,269,921 | ||||
Net Assets | $ | 320,526,677 | |||
Represented by: | |||||
| Capital | $ | 475,260,982 | |||
| Accumulated undistributed net investment income | 60,559 | ||||
| Accumulated net realized losses from investment and futures transactions | (11,230,318 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (145,396,897 | ) | |||
| Net unrealized appreciation/(depreciation) from futures | 1,832,351 | ||||
Net Assets | $ | 320,526,677 | |||
Net Assets: | |||||
| Class A Shares | $ | 102,647,539 | |||
| Class B Shares | 202,870 | ||||
| Class C Shares | 511,386 | ||||
| Class R2 Shares (a) | 630 | ||||
| Institutional Class Shares | 217,164,252 | ||||
| Total | $ | 320,526,677 | |||
| * | Includes value of securities on loan of $19,637,132 (Note 2). |
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
136 Semiannual Report 2009
| Nationwide Small | |||||
| Cap Index Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 13,918,443 | ||||
| Class B Shares | 27,797 | ||||
| Class C Shares | 70,278 | ||||
| Class R2 Shares (a) | 86 | ||||
| Institutional Class Shares | 29,165,315 | ||||
| Total | 43,181,919 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 7.37 | |||
| Class B Shares (b) | $ | 7.30 | |||
| Class C Shares (c) | $ | 7.28 | |||
| Class R2 Shares (a) | $ | 7.36 | (d) | ||
| Institutional Class Shares | $ | 7.45 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.82 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. | |
| (d) | The NAV reported above represents the traded NAV at April 30, 2009. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 137
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide Small | |||||
| Cap Index Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 24,325 | |||
| Dividend income | 1,876,113 | ||||
| Income from securities lending (Note 2) | 81,154 | ||||
| Foreign tax withholding | (182 | ) | |||
| Total Income | 1,981,410 | ||||
EXPENSES: | |||||
| Investment advisory fees | 265,620 | ||||
| Fund administration fees | 165,733 | ||||
| Distribution fees Class A | 109,504 | ||||
| Distribution fees Class B | 1,086 | ||||
| Distribution fees Class C | 2,126 | ||||
| Distribution fees Class R2 (a) | 2 | ||||
| Administrative services fees Class A | 56,956 | ||||
| Registration and filing fees | 37,077 | ||||
| Professional fees | 24,495 | ||||
| Printing fees | 11,996 | ||||
| Trustee fees | 9,549 | ||||
| Compliance program costs (Note 3) | 2,823 | ||||
| Custodian fees | 8,639 | ||||
| Other | 36,999 | ||||
| Total expenses before earnings credit and expenses reimbursed | 732,605 | ||||
| Earnings credit (Note 5) | (2,591 | ) | |||
| Expenses reimbursed by adviser | (163,863 | ) | |||
| Net Expenses | 566,151 | ||||
NET INVESTMENT INCOME | 1,415,259 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (5,998,596 | ) | |||
| Net realized losses from futures transactions | (6,183,567 | ) | |||
| Net realized losses from investments and futures transactions | (12,182,163 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | (13,805,035 | ) | |||
| Net change in unrealized appreciation/(depreciation) from futures | 4,955,984 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | (8,849,051 | ) | |||
| Net realized/unrealized losses from investments and futures | (21,031,214 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (19,615,955 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
138 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Small Cap Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 1,415,259 | $ | 3,718,806 | ||||||
| Net realized gains (losses) from investment and futures transactions | (12,182,163 | ) | 8,021,216 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | (8,849,051 | ) | (165,931,044 | ) | ||||||
| Change in net assets resulting from operations | (19,615,955 | ) | (154,191,022 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (516,854 | ) | (567,435 | ) | ||||||
| Class B | (570 | ) | (308 | ) | ||||||
| Class C | (1,059 | ) | (260 | ) | ||||||
| Class R2 (a) | (4 | ) | (4 | ) | ||||||
| Institutional Class | (1,429,520 | ) | (2,418,812 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (1,504,529 | ) | (3,375,848 | ) | ||||||
| Class B | (3,982 | ) | (13,116 | ) | ||||||
| Class C | (5,683 | ) | (21,384 | ) | ||||||
| Class R2 (a) | (10 | ) | (31 | ) | ||||||
| Institutional Class | (2,803,164 | ) | (8,641,752 | ) | ||||||
| Change in net assets from shareholder distributions | (6,265,375 | ) | (15,038,950 | ) | ||||||
| Change in net assets from capital transactions | 57,988,914 | 12,051,436 | ||||||||
| Change in net assets | 32,107,584 | (157,178,535 | ) | |||||||
Net Assets: | ||||||||||
| Beginning of period | 288,419,093 | 445,597,629 | ||||||||
| End of period | $ | 320,526,677 | $ | 288,419,093 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 60,559 | $ | 593,307 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 19,328,415 | $ | 53,368,760 | ||||||
| Dividends reinvested | 1,969,020 | 3,829,930 | ||||||||
| Cost of shares redeemed (b) | (5,615,998 | ) | (32,807,583 | ) | ||||||
| Total Class A | 15,681,437 | 24,391,107 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 1,061 | 39,627 | ||||||||
| Dividends reinvested | 3,944 | 12,389 | ||||||||
| Cost of shares redeemed | (48,107 | ) | (39,671 | ) | ||||||
| Total Class B | (43,102 | ) | 12,345 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 226,526 | 266,109 | ||||||||
| Dividends reinvested | 3,968 | 11,055 | ||||||||
| Cost of shares redeemed | (74,327 | ) | (254,095 | ) | ||||||
| Total Class C | 156,167 | 23,069 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 139
Statements of Changes in Net Assets (Continued)
| Nationwide Small Cap Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | – | $ | – | ||||||
| Dividends reinvested | 14 | 35 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class R2 | 14 | 35 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 47,386,947 | 57,244,248 | ||||||||
| Dividends reinvested | 4,232,657 | 11,060,523 | ||||||||
| Cost of shares redeemed (b) | (9,425,206 | ) | (80,679,891 | ) | ||||||
| Total Institutional Class | 42,194,398 | (12,375,120 | ) | |||||||
| Change in net assets from capital transactions: | $ | 57,988,914 | $ | 12,051,436 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,870,031 | 4,809,026 | ||||||||
| Reinvested | 273,766 | 322,044 | ||||||||
| Redeemed | (840,424 | ) | (3,006,040 | ) | ||||||
| Total Class A Shares | 2,303,373 | 2,125,030 | ||||||||
Class B Shares | ||||||||||
| Issued | 153 | 3,385 | ||||||||
| Reinvested | 546 | 1,043 | ||||||||
| Redeemed | (8,077 | ) | (3,842 | ) | ||||||
| Total Class B Shares | (7,378 | ) | 586 | |||||||
Class C Shares | ||||||||||
| Issued | 31,584 | 24,827 | ||||||||
| Reinvested | 556 | 930 | ||||||||
| Redeemed | (11,576 | ) | (25,488 | ) | ||||||
| Total Class C Shares | 20,564 | 269 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 2 | 4 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class R2 Shares | 2 | 4 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 6,970,050 | 5,161,621 | ||||||||
| Reinvested | 588,974 | 924,436 | ||||||||
| Redeemed | (1,435,284 | ) | (7,279,613 | ) | ||||||
| Total Institutional Class Shares | 6,123,740 | (1,193,556 | ) | |||||||
| Total change in shares: | 8,440,301 | 932,333 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
140 Semiannual Report 2009
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End of | Total | at End of | to Average | to Average | to Average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | Fees | Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .25 | 0 | .03 | (0 | .75) | (0 | .72) | (0 | .04) | (0 | .12) | (0 | .16) | – – | $ | 7 | .37 | (8 | .68%) | $ | 102,647,539 | 0 | .68% | 0 | .85% | 0 | .80% | 3 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .09 | 0 | .07 | (4 | .47) | (4 | .40) | (0 | .06) | (0 | .38) | (0 | .44) | – | $ | 8 | .25 | (34 | .65%) | $ | 95,789,525 | 0 | .65% | 0 | .75% | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .15 | 0 | .02 | (0 | .73) | (0 | .71) | (0 | .02) | (0 | .12) | (0 | .14) | – | $ | 7 | .30 | (8 | .73%) | $ | 202,870 | 1 | .30% | 0 | .53% | 1 | .42% | 3 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 12 | .98 | 0 | .02 | (4 | .45) | (4 | .43) | (0 | .01) | (0 | .38) | (0 | .39) | – | $ | 8 | .16 | (35 | .08%) | $ | 286,977 | 1 | .30% | 0 | .10% | 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% | |||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .14 | 0 | .01 | (0 | .73) | (0 | .72) | (0 | .02) | (0 | .12) | (0 | .14) | – | $ | 7 | .28 | (8 | .83%) | $ | 511,386 | 1 | .30% | 0 | .18% | 1 | .42% | 3 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 12 | .94 | – | (4 | .42) | (4 | .42) | – | (0 | .38) | (0 | .38) | – | $ | 8 | .14 | (35 | .06%) | $ | 404,580 | 1 | .30% | 0 | .13% | 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 R2 Shares (f) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .24 | 0 | .02 | (0 | .74) | (0 | .72) | (0 | .04) | (0 | .12) | (0 | .16) | – | $ | 7 | .36 | (8 | .67%) | $ | 630 | 0 | .93% | 0 | .60% | 1 | .05% | 3 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .08 | 0 | .07 | (4 | .48) | (4 | .41) | (0 | .05) | (0 | .38) | (0 | .43) | – | $ | 8 | .24 | (34 | .72%) | $ | 690 | 0 | .71% | 0 | .67% | 0 | .79% | 37 | .88% | ||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (g) | $ | 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% | ||||||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–” are zero or have been rounded to zero. (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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. (g) For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 141
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Financial Highlights (Continued)
| Operations | Distributions | Ratios / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End of | Total | at End of | to Average | to Average | to Average | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | Fees | Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .33 | 0 | .04 | (0 | .74) | (0 | .70) | (0 | .06) | (0 | .12) | (0 | .18) | – | $ | 7 | .45 | (8 | .37%) | $ | 217,164,252 | 0 | .30% | 1 | .17% | 0 | .42% | 3 | .21% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 13 | .22 | 0 | .12 | (4 | .53) | (4 | .41) | (0 | .10) | (0 | .38) | (0 | .48) | – | $ | 8 | .33 | (34 | .45%) | $ | 191,937,321 | 0 | .30% | 1 | .13% | 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (g) | For the period from March 9, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
142 Semiannual Report 2009
Notes to Financial Statements
April 30, 2009 (Unaudited)
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”). The Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2009, the Trust operates thirty-two (32) 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) series 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.
| (a) | Security Valuation |
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 4:00 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 (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), 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
2009 Semiannual Report 143
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 that hold 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 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 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.
The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157), effective with the beginning of the Funds’ current fiscal year. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques, giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are summarized below:
| • | Level 1 — quoted prices in active markets for identical assets | |
| • | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
| • | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities are not intended to indicate the risk associated with investing in those securities.
144 Semiannual Report 2009
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2009:
| Level 2 — Other Significant | Level 3 — Significant | |||||||||||||||||||||||||||||||||
| Level 1 — Quoted Prices | Observable Inputs | Unobservable Inputs | Total | |||||||||||||||||||||||||||||||
| Investments | Other* | Investments | Other* | Investments | Other* | Investments | Other* | |||||||||||||||||||||||||||
| Bond Index | $ | — | $ | — | $ | 1,065,530,676 | $ | — | $ | — | $ | — | $ | 1,065,530,676 | $ | — | ||||||||||||||||||
| International Index | 47,758,261 | 4,306,019 | 1,416,626,766 | (467,255 | ) | — | — | 1,464,385,027 | 3,838,765 | |||||||||||||||||||||||||
| Mid Cap Market Index | 605,425,265 | 2,522,896 | 55,895,039 | — | — | — | 661,320,304 | 2,522,896 | ||||||||||||||||||||||||||
| S&P 500 Index | 1,605,350,397 | 10,441,538 | 105,925,695 | — | — | — | 1,711,276,092 | 10,441,538 | ||||||||||||||||||||||||||
| Small Cap Index | 304,924,683 | 1,832,351 | 34,002,234 | — | — | — | 338,926,917 | 1,832,351 | ||||||||||||||||||||||||||
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| International Index | ||||||||||||
| Investments in | Other Financial | |||||||||||
| Securities | Instruments* | |||||||||||
| Balance as of 1/31/2009 | $ | 166,083 | $ | — | ||||||||
| Accrued Accretion/ (Amortization) | — | — | ||||||||||
| Change in Unrealized Appreciation/(Depreciation) | — | — | ||||||||||
| Net Purchase/(Sales) | — | — | ||||||||||
| Transfers In/(Out) of Level 3 | (166,083 | ) | — | |||||||||
| Balance as of 4/30/2009 | $ | — | $ | — | ||||||||
| * | Other financial instruments are derivative instruments not reflected in the Statement of Investments, such as futures, forwards and options, which are valued at the unrealized appreciation/depreciation on the instrument. | |
| Amounts designated as “—” are zero or have been rounded to zero. | ||
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with a member of the Federal Reserve System or 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 a 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.
2009 Semiannual Report 145
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
| (c) | Foreign Currency Transactions |
The accounting records of the Funds are maintained in U.S. dollars. International Index, which may engage in foreign currency transactions, translates foreign currency amounts 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. A Fund does 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.
| (d) | Forward Foreign Currency Contracts |
International Index and S&P 500 Index 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.
| (e) | Futures Contracts |
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, a Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the contract amount. 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 |
Bond Index may enter into mortgage “dollar rolls” in which the 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 Fund’s Statement of Investments. 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
146 Semiannual Report 2009
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.
| (h) | Securities Lending |
To generate additional income, each Fund may lend its 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 U.S. Government 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 April 30, 2009, the Funds had securities with the following values on loan:
| Value of | Value of | |||||||||||
| Fund | Loaned Securities | Collateral | ||||||||||
| Bond Index | $ | 36,161,649 | $ | 36,894,544 | * | |||||||
| International Index | 161,098,217 | 168,867,069 | ** | |||||||||
| Mid Cap Market Index | 36,786,102 | 37,777,187 | ||||||||||
| S&P 500 Index | 17,921,387 | 18,647,526 | ||||||||||
| Small Cap Index | 19,637,132 | 20,270,077 | ||||||||||
| * | Includes $16,034,682 of collateral in the form of U.S. Government Sponsored and Agency Obligations securities, interest rates ranging from 0.0% to 7.0% and maturity dates ranging from 5/15/09 to 7/1/47. | |
| ** | Includes $3,547,411 of collateral in the form of U.S. Government securities, interest rates ranging from 0.85% to 5.35% and maturity dates ranging from 4/15/10 to 2/15/31. |
| (i) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly. 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.
2009 Semiannual Report 147
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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. Permanent differences 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. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as distributions of paid-in-capital.
| (j) | Federal Income Taxes |
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”) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing 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 such a tax position taken by a Fund is not sustained upon examination by a taxing authority, the filer 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). Each Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service.
Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Fund’s current financial statements FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to a Fund’s NAV and financial statements. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
| (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 series 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 series. 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”) 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”), a holding company which is a direct wholly-owned subsidiary of Nationwide Corporation. NFA provides investment management evaluation services in initially
148 Semiannual Report 2009
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 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 six months ended April 30, 2009, the Funds paid investment advisory fees to NFA according to the schedule below:
| Fund | Fee Schedule | Total 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 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 $1,441,724 for the six months ended April 30, 2009.
NFA and the Trust have entered into a written Expense Limitation Agreement with respect to the Funds that limits operating expenses (excluding any taxes, interest, brokerage commissions, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by a 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 February 28, 2010:
| 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 for this Fund, the expense ratio for Class A, Class B, Class C, and Institutional Class shares 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
2009 Semiannual Report 149
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 April 30, 2009, 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:
| Fiscal Year | Fiscal Year | Six Months Ended | ||||||||||||
| 2007 | 2008 | April 30, 2009 | ||||||||||||
| Fund | Amount | Amount | Amount | |||||||||||
| Bond Index | $ | 439,605 | $ | 527,490 | $ | 425,158 | ||||||||
| International Index | 386,490 | 1,015,839 | 590,137 | |||||||||||
| Mid Cap Market Index | 319,532 | 404,937 | 247,298 | |||||||||||
| S&P 500 Index | 375,580 | 947,881 | 689,641 | |||||||||||
| Small Cap Index | 164,560 | 217,602 | 163,863 | |||||||||||
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 R2 | Service Class | ||||||||||||||||||
| Fund | Shares | Shares | Shares | Shares* | Shares | |||||||||||||||||
| Bond Index | 0.25% | 1.00% | 1.00% | 0.50% | N/A | |||||||||||||||||
| International Index | 0.25% | 1.00% | 1.00% | 0.50% | N/A | |||||||||||||||||
| Mid Cap Market Index | 0.25% | 1.00% | 1.00% | 0.50% | N/A | |||||||||||||||||
| S&P 500 Index | 0.25% | 1.00% | 1.00% | 0.50% | 0.15% | |||||||||||||||||
| Small Cap Index | 0.25% | 1.00% | 1.00% | 0.50% | N/A | |||||||||||||||||
| * | Formerly Class R 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. 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. A 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 six months ended April 30, 2009, NFD received commissions of $55,990 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 $13,193 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
150 Semiannual Report 2009
to the fee schedule below. The fees are then allocated proportionately among all series within the Trust in relation to the average daily net assets of each series 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 and 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 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 each share class of S&P 500 Index and 0.25% of the average daily net assets of Class A and Class R2 (formerly Class R) shares of Bond Index, International Index, Mid Cap Market Index, and Small Cap Index.
For the six months ended April 30, 2009, NFS received the following amounts in administrative services fees from each Fund:
| Fund | Amount | |||||||
| Bond Index | $ | 68,515 | ||||||
| International Index | 181,573 | |||||||
| Mid Cap Market Index | 78,635 | |||||||
| S&P 500 Index | 487,364 | |||||||
| Small Cap Index | 62,292 | |||||||
2009 Semiannual Report 151
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFA and the Trust, the Trust 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 six months ended April 30, 2009, the Funds’ portion of such costs amounted to $46,558.
4. Short-Term Trading Fees
The Funds assess a 2.00% short-term trading fee on all classes of shares that are purchased and are sold or exchanged within seven calendar days of purchase. The short-term trading fee is paid directly to the applicable Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the short-term trading fee applies, the shares that were held the longest will be redeemed first. This short-term trading fee is in addition to any CDSCs that may be applicable at the time of sale. The short-term trading 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 short-term trading fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.
For the six months ended April 30, 2009, the Funds had contributions to capital due to redemption fees in the amounts of:
| Institutional | Service | Institutional | ||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class R2* | Service Class | Class | Class | |||||||||||||||||||||||
| Bond Index | $ | 2 | $ | 506 | $ | — | N/A | N/A | N/A | $ | 11 | |||||||||||||||||||
| International Index | $ | 41 | $ | — | $ | 2 | $ | — | N/A | N/A | $ | — | ||||||||||||||||||
| Mid Cap Market Index | $ | 79 | $ | — | $ | — | $ | — | N/A | N/A | $ | — | ||||||||||||||||||
| S&P 500 Index | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | 15 | ||||||||||||||||
| Small Cap Index | $ | 60 | $ | — | $ | — | $ | — | N/A | N/A | $ | — | ||||||||||||||||||
For the year ended October 31, 2008, the Funds had contributions to capital due to redemption fees in the amounts of:
| Institutional | Service | Institutional | ||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class R2* | Service Class | Class | Class | |||||||||||||||||||||||
| Bond Index | $ | 646 | $ | — | $ | — | N/A | N/A | N/A | $ | — | |||||||||||||||||||
| International Index | $ | 9 | $ | — | $ | — | $ | — | N/A | N/A | $ | 8 | ||||||||||||||||||
| Mid Cap Market Index | $ | 220 | $ | — | $ | — | $ | — | N/A | N/A | $ | — | ||||||||||||||||||
| S&P 500 Index | $ | 1,135 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 236 | ||||||||||||||||
| Small Cap Index | $ | 97 | $ | — | $ | — | $ | — | N/A | N/A | $ | 444 | ||||||||||||||||||
| * | Formerly Class R Shares. |
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
152 Semiannual Report 2009
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 six months ended April 30, 2009.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those series that use DDAs based on the number of open shareholder accounts in each series. 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 series 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 six months ended April 30, 2009 were as follows:
| Fund | Purchases | Sales | ||||||||||
| Bond Index | $ | 396,340,761 | $ | 519,618,264 | ||||||||
| International Index | 101,235,388 | 20,048,696 | ||||||||||
| Mid Cap Market Index | 128,749,061 | 68,541,996 | ||||||||||
| S&P 500 Index | 125,145,254 | 33,430,701 | ||||||||||
| Small Cap Index | 59,944,112 | 7,987,067 | ||||||||||
Purchases and sales of U.S. Government securities for the six months ended April 30, 2009, were as follows:
| Fund | Purchases | Sales | ||||||||||
| Bond Index | $ | 94,603,733 | $ | 113,825,365 | ||||||||
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.
2009 Semiannual Report 153
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
9. New Accounting Pronouncements
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 Derivatives 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 has concluded that adoption of the Amendment did not impact each Fund’s financial statement disclosures.
In April 2009, the FASB issued FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 also provides guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the Funds’ financial statement disclosures.
10. Other
As of April 30, 2009, 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 | 89% | 5 | ||||||||||
| International Index | 70% | 4 | ||||||||||
| Mid Cap Market Index | 78% | 4 | ||||||||||
| S&P 500 Index | 76% | 4 | ||||||||||
| Small Cap Index | 85% | 4 | ||||||||||
11. Federal Tax Information
As of April 30, 2009, the tax cost of securities and the breakdown of the unrealized appreciation/(depreciation) for each Fund were as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| Bond Index | $ | 1,066,851,037 | $ | 20,349,560 | $ | (21,275,624 | ) | $ | (926,064 | ) | ||||||||
| International Index | 1,905,711,632 | 53,202,368 | (494,528,973 | ) | (441,326,605 | ) | ||||||||||||
| Mid Cap Market Index | 900,795,975 | 14,477,126 | (253,952,797 | ) | (239,475,671 | ) | ||||||||||||
| S&P 500 Index | 2,337,385,928 | 42,726,373 | (668,836,209 | ) | (626,109,836 | ) | ||||||||||||
| Small Cap Index | 487,565,322 | 7,099,249 | (155,737,654 | ) | (148,638,405 | ) | ||||||||||||
154 Semiannual Report 2009
Supplemental Information
(Unaudited)
A. Renewal of Advisory (and Sub-advisory) Agreements
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
The Board has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
On December 2, 2008, the Trustees met in person with their independent legal counsel (“Independent Legal Counsel”), the Adviser, Trust counsel, and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the December 2, 2008 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
In preparation for the December 2, 2008 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2008) compared with performance groups and performance universes created by Lipper (and in some cases, customized peer groups created by the Adviser) of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2008) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2008, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) information from the Adviser describing, on a Fund-by-Fund basis, any fees paid to the Adviser for managing similar, non-affiliated institutional accounts, including the range of fee levels for such accounts, and (vii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
At the December 2, 2008 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds and those paid by non-affiliated institutional clients to the Adviser for managing similar accounts, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio
2009 Semiannual Report 155
Supplemental Information (Continued)
(Unaudited)
transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
As part of the December 2, 2008 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions at the contract approval meeting of the Board of Trustees to be held on January 16, 2009.
At the January 16, 2009 meeting of the Board of Trustees of the Trust, the Board received and considered information provided by the Adviser in follow-up from the December 2, 2008 Board meeting and, after consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, concluded unanimously to renew the Advisory Agreement for the reasons set forth in the following section.
Nationwide Bond Index Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Institutional Class shares for each of the one-, three-, and five-year periods ended September 30, 2008 was in the first quintile of its Peer Universe, but slightly below the performance of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s benchmark, which, because of the effect of expenses, was expected. The Trustees noted that the Fund had achieved its objective of closely tracking the performance of the Barclays Capital U.S. Aggregate Bond Index.
The Trustees noted that the Fund’s actual advisory fee for Institutional Class shares was in the third quintile and slightly above the median of its Peer Universe. The Trustees noted, however, that the Fund’s total expenses were in the second quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide International Index Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2008, the Fund’s performance for Institutional Class shares was in the first, first, and second quintiles of its Peer Group, respectively. The Trustees also noted that for each of the one- and three-year periods ended September 30, 2008, the Fund outperformed its benchmark, the MSCI EAFE Index, but underperformed the benchmark for the five-year period ended September 30, 2008, which, because of the effect of expenses, was expected. The Trustees noted that the Fund had achieved its objective of closely tracking the performance of the MSCI EAFE Index.
The Trustees noted that the Fund’s contractual advisory fee for Institutional Class shares was in the third quintile and at the median of its Peer Group, while the actual advisory fee was in the second quintile of its Peer
156 Semiannual Report 2009
Group. The Trustees also noted that the Fund’s total expenses were in the first quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the advisory fee schedule includes breakpoints, and that the first breakpoint has been reached. The Trustees concluded that the shareholders of the Fund have appropriately benefited from economies of scale under the proposed advisory fee schedule, in light of such breakpoints.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide Mid Cap Market Index Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2008, the Fund’s performance for Institutional Class shares was in the second quintile of its Peer Universe. The Trustees also considered that, for each period, the Fund slightly underperformed its benchmark, the S&P MidCap 400® Index, which, because of the effect of expenses, was to be expected. The Trustees noted that the Fund had achieved its objective of closely tracking the performance of the S&P MidCap 400® Index.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Institutional Class shares were in the fifth quintile of its Peer Group, but that the Fund’s advisory fee was being measured against a very small Peer Group (i.e., 6 other funds) and that the Fund’s actual advisory fee was in the fourth quintile of its Peer Universe. The Trustees also noted that the Fund’s total expenses were in the second quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide S&P 500 Index Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, LLC (“BlackRock Investment Management”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for the one-year period ended September 30, 2008, the Fund’s performance for Institutional Class shares was in the fifth quintile of its Peer Group, but that for each of the three- and five-year periods ended September 30, 2008, the Fund’s performance for Institutional Class shares placed it in the second quintile of its Peer Group. The Trustees considered that, for each period, the Fund slightly underperformed its benchmark, the S&P 500® Index, which, because of the effect of expenses, was to be expected. The Trustees noted that the Fund had achieved its objective of closely tracking the performance of the S&P 500® Index.
The Trustees noted that the Fund’s contractual advisory fee for Institutional Class shares was in the fourth quintile of its Peer Group, but that the Fund’s actual advisory fee was in the second quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the first quintile of its Peer Group. The Trustees
2009 Semiannual Report 157
Supplemental Information (Continued)
(Unaudited)
noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the advisory fee schedule includes breakpoints, and that the first breakpoint has been reached. The Trustees concluded that the shareholders of the Fund have appropriately benefited from economies of scale under the proposed advisory fee schedule, in light of such breakpoints.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide Small Cap Index Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one- and three-year periods ended September 30, 2008, the Fund’s performance for Institutional Class shares was in the second quintile of its Peer Universe. With respect to the five-year period ended September 30, 2008, the Fund’s performance for Institutional Class shares was in the third quintile and above the median of its Peer Universe. In this regard, the Trustees noted that the Fund’s Peer Universe is not limited to index or index-based funds, but rather, includes all retail and institutional small cap core funds, regardless of asset size or primary channel of distribution. The Trustees also noted that, for each period, the Fund’s performance was slightly below that of the Russell 2000 Index, the Fund’s benchmark, which, because of the effect of expenses, was to be expected. The Trustees noted that the Fund had achieved its objective of closely tracking the performance of the Russell 2000 Index.
The Trustees noted that the Fund’s contractual advisory fee for Institutional Class shares was in the third quintile of its Peer Group, slightly above the median, and that the actual advisory fee was in the second quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the first quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the proposed investment advisory fee schedule for the Fund contains breakpoints that are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
158 Semiannual Report 2009
Management Information
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | ||||||||||
| 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 (formerly Mitchell Madison Group), until 2001. Ms. Dryden was a managing partner at Mitchell Madison Group from 1996-2001. | 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 | ||||||||||
2009 Semiannual Report 161
Management Information (Continued)
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | Retired. 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, and served as Board Member of Columbus Downtown Development Corporation from June 2002 to June 2006. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts and Chairman of the Greater Columbus Convention and Visitors Bureau. | 94 | None | ||||||||||
162 Semiannual Report 2009
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 serves as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Fund’s 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 by calling 800-848-0920.
2009 Semiannual Report 163
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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 S. Spangler Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1966 | President and Chief Executive Officer since June 2008 | 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 2008 | 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 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. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. 2 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.2From 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 | ||||||||||
164 Semiannual Report 2009
| 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.2 She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide.2 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 | ||||||||||
| Lynnett Berger Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1965 | Vice President and Chief Investment Officer since April 2009 | Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007. | N/A | N/A | ||||||||||
2009 Semiannual Report 165
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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 Butler4 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 and Director 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. Butler has announced his resignation effective June 30, 2009. |
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 and 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. This summary is available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
166 Semiannual Report 2009
P.O. Box 182205
Columbus, OH 43218-2205
nationwide.com/mutualfunds
Nationwide, Nationwide Financial, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
©2009 Nationwide Funds Group.
All rights reserved.
SAR-IDX 6/09
Nationwide Mutual Funds
SemiannualReport
April 30, 2009 (Unaudited)
Investor Destinations Funds
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
SemiannualReport
April 30, 2009 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Investor Destinations Funds | |||
| 6 | Nationwide Investor Destinations Aggressive Fund | ||
| 20 | Nationwide Investor Destinations Moderately Aggressive Fund | ||
| 34 | Nationwide Investor Destinations Moderate Fund | ||
| 48 | Nationwide Investor Destinations Moderately Conservative Fund | ||
| 62 | Nationwide Investor Destinations Conservative Fund | ||
| 76 | 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
April 30, 2009
Dear Shareholder,
The semiannual reporting period for the Nationwide Mutual Funds (NMF) has encompassed two extremely difficult quarters for stock mutual fund investing. Although the blue-chip indexes, including the Dow Jones Industrial Average (DJIA), sank to 12-year lows on March 9th of this year, the market has shown some signs of cautious rebounding. It may be too early to call this a recovery, but at the start of the second quarter of 2009, stock prices began to show signs of improvement.
Federal Reserve Board Chairman Ben Bernanke has talked about seeing “green shoots” in the financial system in the wake of the central bank’s unprecedented efforts to get credit flowing again. Chairman Bernanke has cited as evidence of economic improvement: the rise in consumer spending in the first quarter of the year; a slow, but steady rate of new and existing home purchases, and a modest revival of the credit markets.
Some of those “shoots” are, indeed, hopeful signs. The recession, however, is not fading as quickly as we all would wish. The much-anticipated government plan to remove toxic assets from banks’ balance sheets, as of this writing, has not been implemented. The results from the government’s stress testing of banks are just being disseminated, and the early news indicates that some banks may require more relief.
In the coming months, investors will be keeping an eye on Washington as much as on Wall Street. The damage to the economy remains severe; the latest government figures suggest that, at best, the pace of the negative news has slowed.
This has been a challenging time in the financial markets. At Nationwide® and Nationwide Funds Groupsm we continue to keep a long-term perspective. We remain committed to the underlying investment principles of our funds.
We thank you for entrusting your assets to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
President
Nationwide Mutual Funds
2009 Semiannual Report 1
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: nationwide.com/mutualfunds.
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. Remember, though, asset allocation does not ensure a profit nor protect against losses, including possible loss of principal.
Day-to-day market activity will likely cause a Fund’s asset allocations to fluctuate from the stated target. 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. The asset class target allocations are subject to change at any time and without notice. For more information, refer to the Funds’ prospectus.
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved.
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 instruments. Please see the Funds’ prospectus for information about the specific risks of this type of an investment.
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.
Note that diversification does not ensure a profit nor protect against loss in a declining market. Investing in alternative asset classes involves special risk.
The Nationwide Investor Destinations Aggressive Fund benchmark consists of 95% Standard & Poor’s 500® (S&P 500) Index and 5% Barclays Capital (BARCAP) U.S. Aggregate Bond Index.
The Nationwide Investor Destinations Moderately Aggressive Fund benchmark consists of 80% Standard & Poor’s 500® (S&P 500) Index, 15% Barclays Capital (BARCAP) U.S. Aggregate Bond Index and 5% Citigroup 3-Month Treasury Bill (T-Bill) Index.
The Nationwide Investor Destinations Moderate Fund benchmark consists of 60% Standard & Poor’s 500® (S&P 500) Index, 25% Barclays Capital (BARCAP) U.S. Aggregate Bond 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 (BARCAP) U.S. Aggregate Bond 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 (BARCAP) U.S. Aggregate Bond Index and 20% Standard & Poor’s 500® (S&P 500) Index.
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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
Nationwide Investor Destinations Conservative Fund
Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. Investors may be able to reduce or eliminate front-end sales charges on Class A shares, based on investment size. Please consult the Fund’s prospectus for more details.
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. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower.
2 Semiannual Report 2009
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.
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.
Barclays Capital (BARCAP) 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 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 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.
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.
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 nationwide.com/mutualfunds. Please read it carefully before investing any money.
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.
The Funds’ adviser or its employees may have a position in the securities named in this report.
Investing in mutual funds involves risk, including the possible loss of principal. Investors’ shares, when redeemed, may be worth more or less than their original cost.
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 Treasury Department has extended the U.S. Department of the Treasury’s Temporary Guarantee Program (the “Program”) for Money Market Funds until September 18, 2009. The Board of Trustees of Nationwide Mutual Funds approved the continued participation of the Nationwide Money Market Fund in the Program on April 8, 2009.
Here are some reminders about the Program:
| • | Only shareholders who held shares in the Nationwide Money Market Fund on September 19, 2008, are eligible for protection under the Program. |
| • | The Program currently in place provides a guarantee to these shareholders based on the number of shares invested in the Funds at the close of business on September 19, 2008. |
| • | Any increase in the number of shares an eligible shareholder holds after the close of business on September 19, 2008, will not be guaranteed by the Program. |
| • | 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 is not part of the U.S. Treasury Department’s Troubled Asset Relief Program (TARP). The Program is intended to provide relief for investors in the event the per-share value of any of the money market funds falls below $0.995 and a fund liquidates its holdings. The Program will provide coverage to a fund’s shareholders of record at the close of business on September 19, 2008, up to $1.00 per share for the lesser of either the number of shares the investor held in that fund or the number of shares the investor held the date the per-share value fell below $0.995. This is commonly referred to as “breaking the buck.” |
| • | The U.S. Treasury Department, through the Exchange Stabilization Fund (“ESF”), is providing this guarantee. In the event that a participating fund breaks the buck and liquidates, a guarantee payment should be made to investors through |
2009 Semiannual Report 3
| their fund within approximately 30 days, subject to possible extensions at the discretion of the Treasury. Payments to investors under the Program will depend on the availability of assets in the ESF, which currently totals approximately $50 billion. The U.S. Department of the Treasury and the Secretary of the Treasury have the authority to use assets from the ESF for purposes other than those of the Program. |
| • | Participation in each period of the Program requires a payment to the U.S. Department of the Treasury in the amount of 0.015% based on the net asset value of the Fund as of September 19, 2008. Each Fund individually bears this expense without regard to any expense limitation currently in effect for the Fund. |
Based in Conshohocken, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors (NIA).
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 a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
Nationwide Funds distributed by Nationwide Fund Distributors LLC, Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428.
4 Semiannual Report 2009
Summary of Market Environment
The following is a summary from Nationwide Funds Group regarding market conditions during the reporting period.
The first half of the reporting period was filled with economic events that have not happened in the United States in more than 50 years, nor, in many cases, since the time of the Great Depression of the late 1920s and 1930s. A rebound in the markets began in mid-March and continued into April, evidence that market observers, as well as investors, are anticipating improvement in the economy during the latter half of 2009 and early 2010. Economic news during the reporting period was mixed, with signs of brightening frequently offset by events that indicated a deepening of the recession.
Some of the negative news included: (1) a 6.1% decrease in the annualized U.S. gross domestic product (GDP) for the first quarter of 2009, as reported by the U.S. Bureau of Economic Analysis; (2) a continuously rising jobless rate, which hit 8.9% in April 2009 according to the Department of Labor (DOL), representing the highest level in the jobless rate since 1983 (as companies continue laying off workers, the unemployment rate well may increase to 10% by the end of 2009); (3) a spate of new questions about the capital positions of some of the largest U.S. financial institutions; (4) persistently-low consumer confidence, resulting in depressed spending levels; and (5) the spreading of residential real estate market troubles to commercial real estate, causing even greater levels of stress in the financial system.
Toward the end of March and into April, some signs emerged that the worst of the economic news might be behind us: (1) indicators pointed to the possibility that price declines in the U.S. housing market were nearing an end; (2) President Obama’s administration announced the “Public-Private Investment Program” (PPIP) to help banks unload some of their illiquid assets; and (3) the U.S. Bureau of Economic Analysis reported in April that personal consumption rose by 2.2% in the first quarter of 2009, an indication that consumer confidence may be strengthening.
A broad look at index performance during the reporting period revealed that mid-capitalization U.S. equities beat their large- and small-cap counterparts by a significant margin. Specifically, large caps, as measured by the Standard & Poor’s 500® (S&P 500) Index, fell 8.5% during the reporting period amid continuing market volatility. Mid-caps, as measured by the Standard & Poor’s MidCap 400 (S&P 400) Index, lost 0.2%, and small caps, as measured by the Russell 2000® Index, declined 8.4%.
In general, the performance of international stocks experienced a significant upswing during the latter part of the reporting period, outpacing that of U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost 2.4% during the reporting period, despite a gain of more than 7.9% during the latter half of the period. Emerging market stocks, as measured by the MSCI Emerging Markets (MSCI EM) Indexsm, gained more than 16% during the reporting period, including a gain of more than 25% during the last three months of the reporting period.
The reporting period was positive overall for fixed-income investors. The broad-based fixed-income Barclays Capital (BARCAP) U.S. Aggregate Bond Index gained 7.7% during the reporting period.
2009 Semiannual Report 5
| 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 semiannual period ended April 30, 2009, the Nationwide Investor Destinations Aggressive Fund (Class A at NAV) registered −5.37% versus −7.58% for its composite benchmark, which consists of 95% Standard & Poor’s 500® (S&P 500) Index and 5% Barclays Capital (BARCAP) U.S. Aggregate Bond Index. For broader comparison, the average return for the Fund’s Lipper peer category of Global Multi-Cap Core Funds (consisting of 136 funds as of April 30, 2009) was −3.88%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund (with an allocation of approximately 5%) provided the only positive return among the overall portfolio’s underlying investments during the reporting period, gaining 7.49%. The sectors that posted the strongest performance during the reporting period were non-government-owned and/or backed debt, including corporate bonds, with 12.78%, and asset-backed securities, with 7.93%, as well as government-owned and/or backed Agency mortgages and debentures, which posted returns of 8.29% and 6.65%, respectively.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with −8.64%, and the Nationwide International Index Fund, with −4.35%, (with allocations of approximately 40% and 30%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the S&P 500 Index recorded positive returns; the information technology sector led the way with a gain of 5.61%. By contrast, the financials sector within the S&P 500 Index posted the weakest results, with −29.13% for the reporting period. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with −13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is a cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
6 Semiannual Report 2009
The table below lists the target allocations (as of April 30, 2009) 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.
Nationwide Investor Destinations Aggressive Fund
Performance of Underlying Investments for the Six Months Ended April 30, 2009
Performance of Underlying Investments for the Six Months Ended April 30, 2009
| Asset Class | Underlying Investment | Target Allocation | Six-Month Return | |||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 40% | -8.64% | |||||||
| International Stocks | Nationwide International Index Fund | 30% | -4.35% | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 15% | -0.41% | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 10% | -8.37% | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 5% | 7.49% | |||||||
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 7
| Fund Performance | Nationwide Investor Destinations Aggressive Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | -5.37% | -35.39% | -1.22% | -2.21% | |||||||||||||
| w/SC3 | -10.83% | -39.09% | -2.38% | -2.85% | ||||||||||||||
| Class B | w/o SC2 | -5.78% | -35.85% | -1.94% | -2.90% | |||||||||||||
| w/SC4 | -10.08% | -38.77% | -2.25% | -2.90% | ||||||||||||||
Class C5 | w/o SC2 | -5.64% | -35.82% | -1.92% | -2.90% | |||||||||||||
| w/SC6 | -6.51% | -36.40% | -1.92% | -2.90% | ||||||||||||||
Class R27,8,10 | -5.56% | -35.57% | -1.43% | -2.60% | ||||||||||||||
Institutional Class7,9 | -5.30% | -35.19% | -0.94% | -2.07% | ||||||||||||||
Service Class7 | -5.46% | -35.43% | -1.35% | -2.29% | ||||||||||||||
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 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 R2 shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R2 shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R2 shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because Class R2 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. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.80% | |||||
| Class B | 1.50% | |||||
| Class C | 1.50% | |||||
| Class R2 | 1.13% | |||||
| Institutional Class | 0.50% | |||||
| Service Class | 0.91% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 versus performance of the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index) (a), S&P 500® Index (b), the Aggressive Fund Composite Index(c), and the Consumer Price Index (CPI) (d) since inception. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. One cannot invest directly in a market index.
| (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) that is generally representative of the bond market as a whole. | |
| (b) | The S&P 500 Index is 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. | |
| (c) | The Aggressive Fund 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 Fund Composite is a combination of the S&P 500 Index (95%) and the Barclays Capital U.S. Aggregate Bond Index (5%). | |
| (d) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
8 Semiannual Report 2009
| Shareholder | Nationwide Investor Destinations Aggressive 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Investor Destinations Aggressive Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 946.34 | 2.67 | 0.55 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.05 | 2.78 | 0.55 | |||||||||||||||
| Class B | Actual | 1,000.00 | 942.23 | 5.94 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.68 | 6.19 | 1.23 | |||||||||||||||
| Class C | Actual | 1,000.00 | 943.57 | 5.95 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.68 | 6.19 | 1.23 | |||||||||||||||
Class R2d | Actual | 1,000.00 | 944.43 | 4.40 | 0.91 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.27 | 4.58 | 0.91 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 947.01 | 1.16 | 0.24 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.60 | 1.20 | 0.24 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 945.38 | 2.84 | 0.59 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.87 | 2.96 | 0.59 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represent the hypothetical 5% return before expenses. | |
| d | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 9
| Portfolio Summary | Nationwide Investor Destinations Aggressive Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 95 | .3% | ||
| Fixed Income Funds | 4 | .7% | ||
| Liabilities in excess of other assets | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 39 | .5% | ||
| Nationwide International Index Fund, Institutional Class | 30 | .1% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 15 | .4% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 10 | .3% | ||
| Nationwide Bond Index Fund, Institutional Class | 4 | .7% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
10 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Investor Destinations Aggressive Fund
| Mutual Funds 100.0% (a) | ||||||||
| Shares | Market Value | |||||||
Equity Funds 95.3% | ||||||||
| Nationwide International Index Fund, Institutional Class | 39,543,406 | $ | 211,952,654 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 11,721,017 | 108,653,823 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class | 37,942,548 | 277,739,453 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class | 9,747,153 | 72,616,288 | ||||||
| 670,962,218 | ||||||||
Fixed Income Fund 4.7% | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 3,065,557 | 33,230,640 | ||||||
Total Investments (cost $1,052,568,097) (b) — 100.0% | 704,192,858 | |||||||
Liabilities in excess of other assets — 0.0% | (197,664 | ) | ||||||
NET ASSETS — 100.0% | $ | 703,995,194 | ||||||
| (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.
2009 Semiannual Report 11
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Aggressive Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $1,052,568,097) | $ | 704,192,858 | |||
| Cash | 230 | ||||
| Dividends receivable from affiliates | 121,451 | ||||
| Receivable for capital shares issued | 486,555 | ||||
| Prepaid expenses and other assets | 32,849 | ||||
| Total Assets | 704,833,943 | ||||
Liabilities: | |||||
| Payable for investments purchased | 16,357 | ||||
| Payable for capital shares redeemed | 491,276 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 72,132 | ||||
| Distribution fees | 184,513 | ||||
| Trustee fees | 4,412 | ||||
| Compliance program costs (Note 3) | 10,812 | ||||
| Custodian fees | 18,362 | ||||
| Printing fees | 5,661 | ||||
| Professional fees | 35,224 | ||||
| Total Liabilities | 838,749 | ||||
Net Assets | $ | 703,995,194 | |||
Represented by: | |||||
| Capital | $ | 1,042,825,232 | |||
| Accumulated net investment loss | (354,297 | ) | |||
| Accumulated net realized gains from investment transactions | 9,899,498 | ||||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (348,375,239 | ) | |||
Net Assets | $ | 703,995,194 | |||
Net Assets: | |||||
| Class A Shares | $ | 33,868,671 | |||
| Class B Shares | 10,754,859 | ||||
| Class C Shares | 60,332,650 | ||||
| Class R2 Shares (a) | 46,015,202 | ||||
| Institutional Class Shares | 27,935,661 | ||||
| Service Class Shares | 525,088,151 | ||||
| Total | $ | 703,995,194 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 5,587,536 | ||||
| Class B Shares | 1,800,257 | ||||
| Class C Shares | 10,124,762 | ||||
| Class R2 Shares (a) | 7,681,040 | ||||
| Institutional Class Shares | 4,569,716 | ||||
| Service Class Shares | 86,435,640 | ||||
| Total | 116,198,951 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
12 Semiannual Report 2009
| Nationwide | |||||
| Investor Destinations | |||||
| Aggressive Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.06 | |||
| Class B Shares (b) | $ | 5.97 | |||
| Class C Shares (c) | $ | 5.96 | |||
| Class R2 Shares (a) | $ | 5.99 | |||
| Institutional Class Shares | $ | 6.11 | |||
| Service 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 | $ | 6.43 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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.
2009 Semiannual Report 13
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Aggressive Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 9,642,868 | |||
| Total Income | 9,642,868 | ||||
EXPENSES: | |||||
| Investment advisory fees | 420,614 | ||||
| Distribution fees Class A | 42,634 | ||||
| Distribution fees Class B | 51,991 | ||||
| Distribution fees Class C | 290,876 | ||||
| Distribution fees Class R2 (a) | 93,895 | ||||
| Distribution fees Service Class | 603,912 | ||||
| Administrative services fees Class A | 11,911 | ||||
| Administrative services fees Class R2 (a) | 33,565 | ||||
| Administrative services fees Service Class | 253,577 | ||||
| Registration and filing fees | 47,918 | ||||
| Professional fees | 64,304 | ||||
| Printing fees | 26,027 | ||||
| Trustee fees | 24,580 | ||||
| Compliance program costs (Note 3) | 7,145 | ||||
| Custodian fees | 29,203 | ||||
| Other | 141,442 | ||||
| Total expenses before earnings credit | 2,143,594 | ||||
| Earning credit (Note 4) | (3,080 | ) | |||
| Net Expenses | 2,140,514 | ||||
NET INVESTMENT INCOME | 7,502,354 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 27,099,699 | ||||
| Net realized losses from investment transactions with affiliates | (14,980,436 | ) | |||
| Net realized gains from affiliated investments | 12,119,263 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | (58,743,632 | ) | |||
| Net realized/unrealized losses from affiliated investments | (46,624,369 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (39,122,015 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
14 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Investor Destinations Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 7,502,354 | $ | 16,946,159 | ||||||
| Net realized gains from investment transactions | 12,119,263 | 57,583,630 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | (58,743,632 | ) | (527,246,654 | ) | ||||||
| Change in net assets resulting from operations | (39,122,015 | ) | (452,716,865 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (418,273 | ) | (1,562,467 | ) | ||||||
| Class B | (94,084 | ) | (292,187 | ) | ||||||
| Class C | (513,577 | ) | (1,675,049 | ) | ||||||
| Class R2 (a) | (394,742 | ) | (745,951 | ) | ||||||
| Institutional Class | (324,661 | ) | (871,085 | ) | ||||||
| Service Class | (6,111,314 | ) | (16,113,602 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (2,776,469 | ) | (2,780,369 | ) | ||||||
| Class B | (861,874 | ) | (707,644 | ) | ||||||
| Class C | (4,746,056 | ) | (4,059,419 | ) | ||||||
| Class R2 (a) | (2,841,497 | ) | (1,076,571 | ) | ||||||
| Institutional Class | (1,826,127 | ) | (1,226,204 | ) | ||||||
| Service Class | (38,778,254 | ) | (27,644,364 | ) | ||||||
| Change in net assets from shareholder distributions | (59,686,928 | ) | (58,754,912 | ) | ||||||
| Change in net assets from capital transactions | 79,373,852 | 16,736,685 | ||||||||
| Change in net assets | (19,435,091 | ) | (494,735,092 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 723,430,285 | 1,218,165,377 | ||||||||
| End of period | $ | 703,995,194 | $ | 723,430,285 | ||||||
| Accumulated net investment income (loss) at end of period | $ | (354,297 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 4,972,512 | $ | 14,691,880 | ||||||
| Dividends reinvested | 2,197,538 | 2,941,567 | ||||||||
| Cost of shares redeemed | (9,125,073 | ) | (32,654,807 | ) | ||||||
| Total Class A | (1,955,023 | ) | (15,021,360 | ) | ||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 557,803 | 1,755,554 | ||||||||
| Dividends reinvested | 614,768 | 646,969 | ||||||||
| Cost of shares redeemed | (889,130 | ) | (3,171,393 | ) | ||||||
| Total Class B | 283,441 | (768,870 | ) | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 15
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 8,265,822 | 17,475,451 | ||||||||
| Dividends reinvested | 1,710,087 | 1,687,986 | ||||||||
| Cost of shares redeemed | (9,760,031 | ) | (24,918,281 | ) | ||||||
| Total Class C | 215,878 | (5,754,844 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 13,336,923 | 31,843,428 | ||||||||
| Dividends reinvested | 2,937,124 | 1,534,572 | ||||||||
| Cost of shares redeemed | (1,755,128 | ) | (5,758,580 | ) | ||||||
| Total Class R2 | 14,518,919 | 27,619,420 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 5,552,417 | 14,720,387 | ||||||||
| Dividends reinvested | 2,150,788 | 2,097,279 | ||||||||
| Cost of shares redeemed | (1,842,401 | ) | (9,037,065 | ) | ||||||
| Total Institutional Class | 5,860,804 | 7,780,601 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 44,880,528 | 98,466,004 | ||||||||
| Dividends reinvested | 44,888,786 | 43,744,423 | ||||||||
| Cost of shares redeemed | (29,319,481 | ) | (139,328,689 | ) | ||||||
| Total Service Class | 60,449,833 | 2,881,738 | ||||||||
| Change in net assets from capital transactions: | $ | 79,373,852 | $ | 16,736,685 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 845,508 | 1,480,463 | ||||||||
| Reinvested | 368,996 | 274,406 | ||||||||
| Redeemed | (1,608,420 | ) | (3,287,261 | ) | ||||||
| Total Class A Shares | (393,916 | ) | (1,532,392 | ) | ||||||
Class B Shares | ||||||||||
| Issued | 95,454 | 172,759 | ||||||||
| Reinvested | 104,485 | 60,654 | ||||||||
| Redeemed | (156,246 | ) | (332,772 | ) | ||||||
| Total Class B Shares | 43,693 | (99,359 | ) | |||||||
Class C Shares | ||||||||||
| Issued | 1,429,215 | 1,748,711 | ||||||||
| Reinvested | 291,634 | 158,812 | ||||||||
| Redeemed | (1,667,354 | ) | (2,628,088 | ) | ||||||
| Total Class C Shares | 53,495 | (720,565 | ) | |||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
16 Semiannual Report 2009
| Nationwide Investor Destinations Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 2,260,120 | 3,212,498 | ||||||||
| Reinvested | 498,890 | 146,606 | ||||||||
| Redeemed | (296,451 | ) | (598,867 | ) | ||||||
| Total Class R2 Shares | 2,462,559 | 2,760,237 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 938,772 | 1,420,005 | ||||||||
| Reinvested | 358,517 | 195,846 | ||||||||
| Redeemed | (309,793 | ) | (903,945 | ) | ||||||
| Total Institutional Class Shares | 987,496 | 711,906 | ||||||||
Service Class Shares | ||||||||||
| Issued | 7,631,311 | 9,923,310 | ||||||||
| Reinvested | 7,523,965 | 4,084,791 | ||||||||
| Redeemed | (5,163,613 | ) | (13,708,879 | ) | ||||||
| Total Service Class Shares | 9,991,663 | 299,222 | ||||||||
| Total change in shares: | 13,144,990 | 1,419,049 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .02 | 0 | .07 | (0 | .46) | (0 | .39) | (0 | .07) | (0 | .50) | (0 | .57) | $ | 6 | .06 | (5 | .37%) | $ | 33,868,671 | 0 | .55% | 2 | .42% | 0 | .55% | 6 | .37% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .49%(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% | 0 | .47%(f) | 2 | .12% | ||||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 6 | .93 | 0 | .05 | (0 | .46) | (0 | .41) | (0 | .05) | (0 | .50) | (0 | .55) | $ | 5 | .97 | (5 | .78%) | $ | 10,754,859 | 1 | .23% | 1 | .77% | 1 | .23% | 6 | .37% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .21%(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% | 1 | .20%(f) | 2 | .12% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | �� | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 6 | .91 | 0 | .05 | (0 | .45) | (0 | .40) | (0 | .05) | (0 | .50) | (0 | .55) | $ | 5 | .96 | (5 | .64%) | $ | 60,332,650 | 1 | .23% | 1 | .86% | 1 | .23% | 6 | .37% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .21%(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% | 1 | .20%(f) | 2 | .12% | ||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 6 | .95 | 0 | .06 | (0 | .46) | (0 | .40) | (0 | .06) | (0 | .50) | (0 | .56) | $ | 5 | .99 | (5 | .56%) | $ | 46,015,202 | 0 | .91% | 2 | .00% | 0 | .91% | 6 | .37% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .63%(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% | 0 | .63%(f) | 2 | .12% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | For the period from December 29, 2004 (commencement of operation) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
18 Semiannual Report 2009
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .08 | 0 | .08 | (0 | .47) | (0 | .39) | (0 | .08) | (0 | .50) | (0 | .58) | $ | 6 | .11 | (5 | .30%) | $ | 27,935,661 | 0 | .24% | 2 | .62% | 0 | .24% | 6 | .37% | |||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 9 | .31 | 0 | .09 | 0 | .25 | 0 | .34 | (0 | .12) | – | (0 | .12) | $ | 9 | .53 | 3 | .66% | $ | 1,036 | 0 | .24% | 1 | .39% | 0 | .24%(f) | 6 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .04 | 0 | .08 | (0 | .48) | (0 | .40) | (0 | .08) | (0 | .49) | (0 | .57) | $ | 6 | .07 | (5 | .46%) | $ | 525,088,151 | 0 | .59% | 2 | .39% | 0 | .59% | 6 | .37% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .62%(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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | For the period from December 29, 2004 (commencement of operation) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 19
| 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 semiannual period ended April 30, 2009, the Nationwide Investor Destinations Moderately Aggressive Fund (Class A at NAV) registered −2.97% versus −5.24% for its composite benchmark, which consists of 80% Standard & Poor’s 500® (S&P 500) Index, 15% Barclays Capital (BARCAP) 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 peer category of Mixed-Asset Target Allocation Growth Funds (consisting of 703 funds as of April 30, 2009) was −1.74%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund and Nationwide Fixed Contract (with an allocation of approximately 15% and 5%, respectively) proved to be the major positive contributors to the overall portfolio reported gains of 7.49% and 1.96% during the reporting period. The sectors that posted the strongest performance during the reporting period were non-government-owned and/or backed debt, including corporate bonds, with 12.78%, and asset-backed securities, with 7.93%, as well as government-owned and/or backed Agency mortgages and debentures, which posted returns of 8.29% and 6.65%, respectively.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with −8.64%, and the Nationwide International Index Fund, with −4.35%, (with allocations of approximately 35% and 25%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the S&P 500 Index recorded positive returns; the information technology sector led the way with a gain of 5.61%. By contrast, the financials sector within the S&P 500 Index posted the weakest results, with −29.13% for the reporting period. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with −13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a steadier economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
20 Semiannual Report 2009
The table below lists the target allocations (as of April 30, 2009) for each of the Fund’s underlying investments and how each underlying fund performed during the reporting period.
Nationwide Investor Destinations Moderately Aggressive Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Asset Class | Underlying Investment | Target Allocation | Six-Month Return | |||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 35% | -8.64% | |||||||
| International Stocks | Nationwide International Index Fund | 25% | -4.35% | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 15% | -0.41% | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 15% | 7.49% | |||||||
| Short-Term Bonds | Nationwide Fixed Contract | 5% | 1.96% | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 5% | -8.37% | |||||||
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
Performance shown is for Institutional Class shares for each underlying investment except the Nationwide Fixed Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 21
| Fund Performance | Nationwide Investor Destinations Moderately Aggressive Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | -2.97% | -29.80% | -0.20% | -0.89% | |||||||||||||
| w/SC3 | -8.56% | -33.86% | -1.38% | -1.54% | ||||||||||||||
| Class B | w/o SC2 | -3.27% | -30.32% | -0.89% | -1.61% | |||||||||||||
| w/SC4 | -7.68% | -33.48% | -1.21% | -1.61% | ||||||||||||||
Class C5 | w/o SC2 | -3.27% | -30.32% | -0.89% | -1.58% | |||||||||||||
| w/SC6 | -4.15% | -30.95% | -0.89% | -1.58% | ||||||||||||||
Class R27,8,10 | -3.17% | -30.07% | -0.43% | -1.32% | ||||||||||||||
Institutional Class7,9 | -2.83% | -29.60% | 0.06% | -0.78% | ||||||||||||||
Service Class7 | -2.98% | -29.88% | -0.29% | -0.97% | ||||||||||||||
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 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 R2 shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R2 shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R2 shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because the Class R2 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. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.78% | |||||
| Class B | 1.50% | |||||
| Class C | 1.50% | |||||
| Class R2 | 1.14% | |||||
| Institutional Class | 0.50% | |||||
| Service Class | 0.91% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 versus performance of the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index) (a), S&P 500® Index (b), the Citigroup 3-Month T-Bill Index (c), the Moderately Aggressive Fund Composite Index (d), and the Consumer Price Index (CPI) (e) since inception. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. One cannot invest directly in a market index.
| (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) that is generally representative of the bond market as a whole. | |
| (b) | The S&P 500 Index is 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. | |
| (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 Fund Composite Index is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderately Aggressive Fund Composite is a combination of the S&P 500 Index (80%), the Barclays Capital U.S. Aggregate Bond Index (15%) and the Citigroup 3-Month T-Bill Index (5%). | |
| (e) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
22 Semiannual Report 2009
| Shareholder | Nationwide Investor Destinations Moderately Aggressive 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Investor Destinations Moderately Aggressive Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 970.29 | 2.45 | 0.50 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.31 | 2.52 | 0.50 | |||||||||||||||
| Class B | Actual | 1,000.00 | 967.32 | 5.95 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.74 | 6.13 | 1.22 | |||||||||||||||
| Class C | Actual | 1,000.00 | 967.34 | 5.95 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.74 | 6.13 | 1.22 | |||||||||||||||
Class R2d | Actual | 1,000.00 | 968.32 | 4.20 | 0.86 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.53 | 4.32 | 0.86 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 971.70 | 1.08 | 0.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.70 | 1.11 | 0.22 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 970.15 | 2.88 | 0.59 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.87 | 2.96 | 0.59 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represent the hypothetical 5% return before expenses. | |
| d | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 23
| Portfolio Summary | Nationwide Investor Destinations Moderately Aggressive Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 80 | .9% | ||
| Fixed Income Funds | 17 | .2% | ||
| Fixed Contract | 1 | .9% | ||
| Money Market Fund | 0 | .0% | ||
| Other assets in excess of liabilities | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 34 | .8% | ||
| Nationwide International Index Fund, Institutional Class | 25 | .3% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 15 | .6% | ||
| Nationwide Bond Index Fund, Institutional Class | 14 | .3% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 5 | .2% | ||
| Nationwide Enhanced Income Fund, Institutional Class | 2 | .9% | ||
| Nationwide Fixed Contract, 3.75%, 01/01/99 | 1 | .9% | ||
| Nationwide Money Market Fund, Institutional Class | 0 | .0% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
24 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Investor Destinations Moderately Aggressive Fund
| Mutual Funds 98.1% (a) | ||||||||
| Shares | Market Value | |||||||
Equity Funds 80.9% | ||||||||
| Nationwide International Index Fund, Institutional Class | 57,020,629 | $ | 305,630,572 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 20,307,937 | 188,254,578 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class | 57,414,624 | 420,275,050 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class | 8,442,877 | 62,899,432 | ||||||
| 977,059,632 | ||||||||
Fixed Income Funds 17.2% | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 15,897,429 | 172,328,135 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class | 3,801,639 | 34,823,011 | ||||||
| 207,151,146 | ||||||||
Money Market Fund 0.0% (b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 4,808 | 4,808 | ||||||
Total Mutual Funds (cost $1,653,907,998) | 1,184,215,586 | |||||||
| Fixed Contract 1.9% (a)(c)(d) | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.75% | $ | 22,635,930 | 22,635,930 | |||||
Total Fixed Contract (cost $22,635,930) | 22,635,930 | |||||||
Total Investments (cost $1,676,543,928) (d) — 100.0% | 1,206,851,516 | |||||||
Other assets in excess of liabilities — 0.0% | 174,227 | |||||||
NET ASSETS — 100.0% | $ | 1,207,025,743 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 25
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations Moderately | |||||
| Aggressive Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $1,676,543,928) | $ | 1,206,851,516 | |||
| Interest and dividends receivable from affiliates | 710,347 | ||||
| Receivable for capital shares issued | 537,938 | ||||
| Prepaid expenses and other assets | 63,861 | ||||
| Total Assets | 1,208,163,662 | ||||
Liabilities: | |||||
| Payable for investments purchased | 390,049 | ||||
| Payable for capital shares redeemed | 176,948 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 124,408 | ||||
| Distribution fees | 330,691 | ||||
| Trustee fees | 7,181 | ||||
| Compliance program costs (Note 3) | 18,076 | ||||
| Custodian fees | 30,676 | ||||
| Printing fees | 587 | ||||
| Professional fees | 59,303 | ||||
| Total Liabilities | 1,137,919 | ||||
Net Assets | $ | 1,207,025,743 | |||
Represented by: | |||||
| Capital | $ | 1,659,586,787 | |||
| Accumulated undistributed net investment income | 115,956 | ||||
| Accumulated net realized gains from investment transactions | 17,015,412 | ||||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (469,692,412 | ) | |||
Net Assets | $ | 1,207,025,743 | |||
Net Assets: | |||||
| Class A Shares | $ | 65,465,301 | |||
| Class B Shares | 22,422,585 | ||||
| Class C Shares | 115,952,136 | ||||
| Class R2 Shares (a) | 99,990,854 | ||||
| Institutional Class Shares | 56,897,954 | ||||
| Service Class Shares | 846,296,913 | ||||
| Total | $ | 1,207,025,743 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 9,640,028 | ||||
| Class B Shares | 3,357,476 | ||||
| Class C Shares | 17,357,181 | ||||
| Class R2 Shares (a) | 14,973,498 | ||||
| Institutional Class Shares | 8,383,848 | ||||
| Service Class Shares | 124,835,173 | ||||
| Total | 178,547,204 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
26 Semiannual Report 2009
| Nationwide | |||||
| Investor Destinations Moderately | |||||
| Aggressive Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.79 | |||
| Class B Shares (b) | $ | 6.68 | |||
| Class C Shares (c) | $ | 6.68 | |||
| Class R2 Shares (a) | $ | 6.68 | |||
| Institutional Class Shares | $ | 6.79 | |||
| Service Class Shares | $ | 6.78 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.20 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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.
2009 Semiannual Report 27
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Moderately | |||||
| Aggressive Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 17,159,442 | |||
| Interest income from affiliates | 562,294 | ||||
| Total Income | 17,721,736 | ||||
EXPENSES: | |||||
| Investment advisory fees | 731,604 | ||||
| Distribution fees Class A | 77,953 | ||||
| Distribution fees Class B | 111,892 | ||||
| Distribution fees Class C | 571,180 | ||||
| Distribution fees Class R2 (a) | 210,707 | ||||
| Distribution fees Service Class | 990,201 | ||||
| Administrative services fees Class A | 9,490 | ||||
| Administrative services fees Class R2 (a) | 56,623 | ||||
| Administrative services fees Service Class | 421,424 | ||||
| Registration and filing fees | 52,276 | ||||
| Professional fees | 110,843 | ||||
| Printing fees | 34,666 | ||||
| Trustee fees | 42,580 | ||||
| Compliance program costs (Note 3) | 12,341 | ||||
| Custodian fees | 44,862 | ||||
| Other | 219,790 | ||||
| Total expenses before earnings credit | 3,698,432 | ||||
| Earning credit (Note 4) | (4,367 | ) | |||
| Net Expenses | 3,694,065 | ||||
NET INVESTMENT INCOME | 14,027,671 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 38,297,125 | ||||
| Net realized losses from investment transactions with affiliates | (17,700,864 | ) | |||
| Net realized gains from affiliated investments | 20,596,261 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | (72,908,297 | ) | |||
| Net realized/unrealized losses from affiliated investments | (52,312,036 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (38,284,365 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
28 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Investor Destinations | ||||||||||
| Moderately Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 14,027,671 | $ | 32,490,811 | ||||||
| Net realized gains from investment transactions | 20,596,261 | 95,483,792 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | (72,908,297 | ) | (739,797,320 | ) | ||||||
| Change in net assets resulting from operations | (38,284,365 | ) | (611,822,717 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (846,866 | ) | (2,331,952 | ) | ||||||
| Class B | (217,151 | ) | (675,565 | ) | ||||||
| Class C | (1,108,326 | ) | (3,462,127 | ) | ||||||
| Class R2 (a) | (992,835 | ) | (1,768,068 | ) | ||||||
| Institutional Class | (732,166 | ) | (1,874,682 | ) | ||||||
| Service Class | (10,605,589 | ) | (27,200,516 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (5,117,352 | ) | (2,564,384 | ) | ||||||
| Class B | (1,878,322 | ) | (1,054,241 | ) | ||||||
| Class C | (9,553,996 | ) | (5,436,823 | ) | ||||||
| Class R2 (a) | (6,600,125 | ) | (1,624,440 | ) | ||||||
| Institutional Class | (3,933,422 | ) | (1,748,195 | ) | ||||||
| Service Class | (64,503,068 | ) | (31,244,256 | ) | ||||||
| Change in net assets from shareholder distributions | (106,089,218 | ) | (80,985,249 | ) | ||||||
| Change in net assets from capital transactions | 124,033,958 | 22,152,655 | ||||||||
| Change in net assets | (20,339,625 | ) | (670,655,311 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 1,227,365,368 | 1,898,020,679 | ||||||||
| End of period | $ | 1,207,025,743 | $ | 1,227,365,368 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 115,956 | $ | 591,218 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 14,177,794 | $ | 18,073,799 | ||||||
| Dividends reinvested | 3,457,248 | 2,865,325 | ||||||||
| Cost of shares redeemed | (10,228,112 | ) | (26,821,733 | ) | ||||||
| Total Class A | 7,406,930 | (5,882,609 | ) | |||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 1,035,528 | 2,380,286 | ||||||||
| Dividends reinvested | 1,458,196 | 1,180,772 | ||||||||
| Cost of shares redeemed | (3,061,827 | ) | (6,110,838 | ) | ||||||
| Total Class B | (568,103 | ) | (2,549,780 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 14,993,674 | 25,560,789 | ||||||||
| Dividends reinvested | 3,084,905 | 2,325,384 | ||||||||
| Cost of shares redeemed | (18,241,623 | ) | (45,407,616 | ) | ||||||
| Total Class C | (163,044 | ) | (17,521,443 | ) | ||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 29
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations | ||||||||||
| Moderately Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 22,177,107 | $ | 66,531,114 | ||||||
| Dividends reinvested | 7,231,680 | 3,135,494 | ||||||||
| Cost of shares redeemed | (2,900,161 | ) | (7,171,591 | ) | ||||||
| Total Class R2 | 26,508,626 | 62,495,017 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 8,779,232 | 21,256,138 | ||||||||
| Dividends reinvested | 4,665,588 | 3,622,871 | ||||||||
| Cost of shares redeemed | (3,817,698 | ) | (8,679,307 | ) | ||||||
| Total Institutional Class | 9,627,122 | 16,199,702 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 54,352,448 | 126,570,824 | ||||||||
| Dividends reinvested | 75,108,657 | 58,444,538 | ||||||||
| Cost of shares redeemed | (48,238,678 | ) | (215,603,594 | ) | ||||||
| Total Service Class | 81,222,427 | (30,588,232 | ) | |||||||
| Change in net assets from capital transactions: | $ | 124,033,958 | $ | 22,152,655 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,104,080 | 1,753,054 | ||||||||
| Reinvested | 519,014 | 263,859 | ||||||||
| Redeemed | (1,577,444 | ) | (2,646,374 | ) | ||||||
| Total Class A Shares | 1,045,650 | (629,461 | ) | |||||||
Class B Shares | ||||||||||
| Issued | 159,414 | 232,408 | ||||||||
| Reinvested | 222,270 | 109,284 | ||||||||
| Redeemed | (476,680 | ) | (630,768 | ) | ||||||
| Total Class B Shares | (94,996 | ) | (289,076 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 2,280,627 | 2,463,899 | ||||||||
| Reinvested | 470,267 | 215,282 | ||||||||
| Redeemed | (2,828,832 | ) | (4,624,457 | ) | ||||||
| Total Class C Shares | (77,938 | ) | (1,945,276 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 3,404,893 | 6,518,747 | ||||||||
| Reinvested | 1,103,437 | 296,008 | ||||||||
| Redeemed | (456,002 | ) | (729,728 | ) | ||||||
| Total Class R2 Shares | 4,052,328 | 6,085,027 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
30 Semiannual Report 2009
| Nationwide Investor Destinations | ||||||||||
| Moderately Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 1,348,570 | 2,016,911 | ||||||||
| Reinvested | 701,923 | 335,351 | ||||||||
| Redeemed | (589,285 | ) | (881,390 | ) | ||||||
| Total Institutional Class Shares | 1,461,208 | 1,470,872 | ||||||||
Service Class Shares | ||||||||||
| Issued | 8,234,844 | 12,221,881 | ||||||||
| Reinvested | 11,289,162 | 5,385,691 | ||||||||
| Redeemed | (7,578,394 | ) | (20,391,321 | ) | ||||||
| Total Service Class Shares | 11,945,612 | (2,783,749 | ) | |||||||
| Total change in shares: | 18,331,864 | 1,908,337 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 31
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .69 | 0 | .09 | (0 | .33) | (0 | .24) | (0 | .10) | (0 | .56) | (0 | .66) | $ | 6 | .79 | (2 | .97%) | $ | 65,465,301 | 0 | .50% | 2 | .67% | 0 | .50% | 9 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .49%(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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .57 | 0 | .07 | (0 | .33) | (0 | .26) | (0 | .07) | (0 | .56) | (0 | .63) | $ | 6 | .68 | (3 | .27%) | $ | 22,422,585 | 1 | .22% | 1 | .95% | 1 | .22% | 9 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .21%(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% | ||||||||||||||||||||||||||||||||||||||||||
| �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .57 | 0 | .07 | (0 | .33) | (0 | .26) | (0 | .07) | (0 | .56) | (0 | .63) | $ | 6 | .68 | (3 | .27%) | $ | 115,952,136 | 1 | .22% | 1 | .95% | 1 | .22% | 9 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .21%(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 R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .58 | 0 | .08 | (0 | .33) | (0 | .25) | (0 | .09) | (0 | .56) | (0 | .65) | $ | 6 | .68 | (3 | .17%) | $ | 99,990,854 | 0 | .86% | 2 | .27% | 0 | .86% | 9 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .61%(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% | 0 | .62%(f) | 2 | .74% | ||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–” are zero or have been rounded to zero. (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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. (h) For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
32 Semiannual Report 2009
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .69 | 0 | .10 | (0 | .33) | (0 | .23) | (0 | .11) | (0 | .56) | (0 | .67) | $ | 6 | .79 | (2 | .83%) | $ | 56,897,954 | 0 | .22% | 2 | .84% | 0 | .22% | 9 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 9 | .67 | 0 | .12 | 0 | .20 | 0 | .32 | (0 | .14) | – | (0 | .14) | $ | 9 | .85 | 3 | .37% | $ | 1,033 | 0 | .24% | 1 | .73% | 0 | .24%(f) | 5 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 7 | .68 | 0 | .09 | (0 | .33) | (0 | .24) | (0 | .10) | (0 | .56) | (0 | .66) | $ | 6 | .78 | (2 | .98%) | $ | 846,296,913 | 0 | .59% | 2 | .58% | 0 | .59% | 9 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .61%(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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 33
| 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 semiannual period ended April 30, 2009, the Nationwide Investor Destinations Moderate Fund (Class A at NAV) registered −0.92% versus −2.57% for its composite benchmark, which consists of 60% Standard & Poor’s 500® (S&P 500) Index, 25% Barclays Capital (BARCAP) 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 peer category of Mixed-Asset Target Allocation Growth Funds (consisting of 703 funds as of April 30, 2009) was −1.74%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund (with an allocation of approximately 25%) gained 7.49% during the reporting period. The sectors that posted the strongest performance during the reporting period were non-government-owned and/or backed debt, including corporate bonds, with 12.78%, and asset-backed securities, with 7.93%, as well as government-owned and/or backed Agency mortgages and debentures, which posted returns of 8.29% and 6.65%, respectively. The Nationwide Enhanced Income Fund (with an allocation of approximately 5%) gained 2.61% during the reporting period; it also benefited from allocations to the sectors mentioned above while maintaining its high-quality portfolio of primarily corporate bonds.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with −8.64%, and the Nationwide International Index Fund, with −4.35%, (with allocations of approximately 30% and 15%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the S&P 500 Index recorded positive returns; the information technology sector led the way with a gain of 5.61%. By contrast, the financials sector within the S&P 500 Index posted the weakest results, with −29.13% for the reporting period. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with −13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
34 Semiannual Report 2009
The table below lists the target allocations (as of April 30, 2009) 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.
Nationwide Investor Destinations Moderate Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Asset Class | Underlying Investment | Target Allocation | Six-Month Return | |||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 30% | -8.64% | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 25% | 7.49% | |||||||
| International Stocks | Nationwide International Index Fund | 15% | -4.35% | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 10% | -0.41% | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 5% | -8.37% | |||||||
| Short-Term Bonds | Nationwide Fixed Contract | 5% | 1.96% | |||||||
| Short-Term Bonds | Nationwide Enhanced Income Fund | 5% | 2.61% | |||||||
| Money Market Investments | Nationwide Money Market Fund | 5% | 0.20% | |||||||
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
Performance shown is for Institutional Class shares for each underlying investment, except for the Nationwide Fixed Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 35
| Fund Performance | Nationwide Investor Destinations Moderate Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | -0.92% | -21.78% | 0.78% | 0.53% | |||||||||||||
| w/SC3 | -6.66% | -26.28% | -0.40% | -0.13% | ||||||||||||||
| Class B | w/o SC2 | -1.32% | -22.41% | 0.05% | -0.20% | |||||||||||||
| w/SC4 | -5.77% | -25.88% | -0.27% | -0.20% | ||||||||||||||
Class C5 | w/o SC2 | -1.33% | -22.41% | 0.05% | -0.21% | |||||||||||||
| w/SC6 | -2.22% | -23.10% | 0.05% | -0.21% | ||||||||||||||
Class R27,8,10 | -1.10% | -22.14% | 0.51% | 0.08% | ||||||||||||||
Institutional Class7,9 | -0.78% | -21.56% | 1.04% | 0.65% | ||||||||||||||
Service Class7 | -0.97% | -21.89% | 0.66% | 0.44% | ||||||||||||||
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 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 R2 shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R2 shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R2 shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because the Class R2 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. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.77% | |||||
| Class B | 1.49% | |||||
| Class C | 1.49% | |||||
| Class R2 | 1.14% | |||||
| Institutional Class | 0.49% | |||||
| Service Class | 0.90% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 versus performance of the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index) (a), S&P 500® Index (b), the Citigroup 3-Month T-Bill Index (c), the Moderate Fund Composite Index (d), and the Consumer Price Index (CPI) (e) since inception. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. One cannot invest directly in a market index.
| (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) that is generally representative of the bond market as a whole. | |
| (b) | The S&P 500 Index is 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. | |
| (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 Fund Composite Index is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderate Fund Composite is a combination of the S&P 500 Index (60%), the Barclays Capital U.S. Aggregate Bond Index (25%) and the Citigroup 3-Month T-Bill Index (15%). | |
| (e) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
36 Semiannual Report 2009
| Shareholder | Nationwide Investor Destinations Moderate 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Investor Destinations Moderate Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 990.83 | 2.36 | 0.48 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.42 | 2.40 | 0.48 | |||||||||||||||
| Class B | Actual | 1,000.00 | 986.81 | 6.00 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.76 | 6.11 | 1.22 | |||||||||||||||
| Class C | Actual | 1,000.00 | 986.66 | 5.99 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.76 | 6.11 | 1.22 | |||||||||||||||
Class R2d | Actual | 1,000.00 | 988.96 | 4.52 | 0.92 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.25 | 4.60 | 0.92 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 992.17 | 1.07 | 0.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.72 | 1.09 | 0.22 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 990.27 | 2.86 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represent the hypothetical 5% return before expenses. | |
| d | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 37
| Portfolio Summary | Nationwide Investor Destinations Moderate Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 61 | .4% | ||
| Fixed Income Funds | 30 | .3% | ||
| Fixed Contract | 6 | .3% | ||
| Money Market Fund | 1 | .9% | ||
| Other assets in excess of liabilities | 0 | .1% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .2% | ||
| Nationwide Bond Index Fund, Institutional Class | 24 | .1% | ||
| Nationwide International Index Fund, Institutional Class | 15 | .4% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 10 | .6% | ||
| Nationwide Fixed Contract | 6 | .3% | ||
| Nationwide Enhanced Income Fund, Institutional Class | 6 | .2% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 5 | .3% | ||
| Nationwide Money Market Fund, Institutional Class | 1 | .9% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
38 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Investor Destinations Moderate Fund
| Mutual Funds 93.6% (a) | ||||||||
| Shares | Market Value | |||||||
Equity Funds 61.4% | ||||||||
| Nationwide International Index Fund, Institutional Class | 30,933,495 | $ | 165,803,535 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 12,260,474 | 113,654,590 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class | 44,499,542 | 325,736,647 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class | 7,597,635 | 56,602,378 | ||||||
| 661,797,150 | ||||||||
Fixed Income Funds 30.3% | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 23,958,732 | 259,712,656 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class | 7,279,868 | 66,683,590 | ||||||
| 326,396,246 | ||||||||
Money Market Fund 1.9%(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 21,216,242 | 21,216,242 | ||||||
Total Mutual Funds (cost $1,299,804,740) | 1,009,409,638 | |||||||
| Fixed Contract 6.3% (a)(c) | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.75% | $ | 67,625,068 | 67,625,068 | |||||
Total Fixed Contract (cost $67,625,068) | 67,625,068 | |||||||
Total Investments (cost $1,367,429,808) (d) — 99.9% | 1,077,034,706 | |||||||
Other assets in excess of liabilities — 0.1% | 634,452 | |||||||
NET ASSETS — 100.0% | $ | 1,077,669,158 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 39
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Moderate Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $1,367,429,808) | $ | 1,077,034,706 | |||
| Cash | 33 | ||||
| Interest and dividends receivable from affiliates | 1,107,720 | ||||
| Receivable for capital shares issued | 516,146 | ||||
| Receivable for investments sold | 279,310 | ||||
| Prepaid expenses and other assets | 87,849 | ||||
| Total Assets | 1,079,025,764 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 839,493 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 112,019 | ||||
| Distribution fees | 308,363 | ||||
| Trustee fees | 6,094 | ||||
| Compliance program costs (Note 3) | 16,340 | ||||
| Custodian fees | 22,600 | ||||
| Professional fees | 51,697 | ||||
| Total Liabilities | 1,356,606 | ||||
Net Assets | $ | 1,077,669,158 | |||
Represented by: | |||||
| Capital | $ | 1,364,789,225 | |||
| Accumulated undistributed net investment income | 875,900 | ||||
| Accumulated net realized gains from investment transactions | 2,399,135 | ||||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (290,395,102 | ) | |||
Net Assets | $ | 1,077,669,158 | |||
Net Assets: | |||||
| Class A Shares | $ | 60,592,480 | |||
| Class B Shares | 21,455,816 | ||||
| Class C Shares | 124,700,313 | ||||
| Class R2 Shares (a) | 94,461,731 | ||||
| Institutional Class Shares | 69,174,751 | ||||
| Service Class Shares | 707,284,067 | ||||
| Total | $ | 1,077,669,158 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 8,208,967 | ||||
| Class B Shares | 2,926,313 | ||||
| Class C Shares | 17,070,593 | ||||
| Class R2 Shares (a) | 12,993,091 | ||||
| Institutional Class Shares | 9,375,737 | ||||
| Service Class Shares | 95,931,363 | ||||
| Total | 146,506,064 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
40 Semiannual Report 2009
| Nationwide | |||||
| Investor Destinations | |||||
| Moderate Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 7.38 | |||
| Class B Shares (b) | $ | 7.33 | |||
| Class C Shares (c) | $ | 7.30 | |||
| Class R2 Shares (a) | $ | 7.27 | |||
| Institutional Class Shares | $ | 7.38 | |||
| Service Class Shares | $ | 7.37 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.83 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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.
2009 Semiannual Report 41
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Moderate Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 15,274,844 | |||
| Interest income from affiliates | 1,347,988 | ||||
| Total Income | 16,622,832 | ||||
EXPENSES: | |||||
| Investment advisory fees | 662,616 | ||||
| Distribution fees Class A | 74,974 | ||||
| Distribution fees Class B | 109,488 | ||||
| Distribution fees Class C | 610,947 | ||||
| Distribution fees Class R2 (a) | 199,490 | ||||
| Distribution fees Service Class | 840,692 | ||||
| Administrative services fees Class A | 3,314 | ||||
| Administrative services fees Class R2 (a) | 79,920 | ||||
| Administrative services fees Service Class | 332,615 | ||||
| Registration and filing fees | 45,670 | ||||
| Professional fees | 99,261 | ||||
| Printing fees | 26,189 | ||||
| Trustee fees | 38,295 | ||||
| Compliance program costs (Note 3) | 10,744 | ||||
| Custodian fees | 35,855 | ||||
| Other | 193,223 | ||||
| Total expenses before earnings credit | 3,363,293 | ||||
| Earning credit (Note 4) | (2,959 | ) | |||
| Net Expenses | 3,360,334 | ||||
NET INVESTMENT INCOME | 13,262,498 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 20,197,760 | ||||
| Net realized losses from investment transactions with affiliates | (13,601,226 | ) | |||
| Net realized gains from affiliated investments | 6,596,534 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | (31,645,329 | ) | |||
| Net realized/unrealized losses from affiliated investments | (25,048,795 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (11,786,297 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
42 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Investor Destinations Moderate Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 13,262,498 | $ | 31,633,799 | ||||||
| Net realized gains from investment transactions | 6,596,534 | 95,372,446 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | (31,645,329 | ) | (505,577,722 | ) | ||||||
| Change in net assets resulting from operations | (11,786,297 | ) | (378,571,477 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (869,528 | ) | (2,430,240 | ) | ||||||
| Class B | (228,657 | ) | (667,805 | ) | ||||||
| Class C | (1,262,190 | ) | (3,710,811 | ) | ||||||
| Class R2 (a) | (1,279,314 | ) | (1,869,423 | ) | ||||||
| Institutional Class | (980,512 | ) | (2,621,457 | ) | ||||||
| Service Class | (9,277,245 | ) | (23,920,035 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (5,646,662 | ) | (2,160,229 | ) | ||||||
| Class B | (2,071,873 | ) | (919,537 | ) | ||||||
| Class C | (11,252,124 | ) | (5,113,446 | ) | ||||||
| Class R2 (a) | (6,907,952 | ) | (1,492,012 | ) | ||||||
| Institutional Class | (5,702,093 | ) | (2,046,104 | ) | ||||||
| Service Class | (61,743,122 | ) | (23,366,415 | ) | ||||||
| Change in net assets from shareholder distributions | (107,221,272 | ) | (70,317,514 | ) | ||||||
| Change in net assets from capital transactions | 109,227,208 | (311,248,570 | ) | |||||||
| Change in net assets | (9,780,361 | ) | (760,137,561 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 1,087,449,519 | 1,847,587,080 | ||||||||
| End of period | $ | 1,077,669,158 | $ | 1,087,449,519 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 875,900 | $ | 1,510,848 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 9,617,582 | $ | 21,028,709 | ||||||
| Dividends reinvested | 4,101,311 | 2,847,298 | ||||||||
| Cost of shares redeemed | (10,581,922 | ) | (21,914,515 | ) | ||||||
| Total Class A | 3,136,971 | 1,961,492 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 1,211,566 | 2,264,500 | ||||||||
| Dividends reinvested | 1,252,021 | 841,398 | ||||||||
| Cost of shares redeemed | (2,986,821 | ) | (6,236,670 | ) | ||||||
| Total Class B | (523,234 | ) | (3,130,772 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 21,772,234 | 26,891,187 | ||||||||
| Dividends reinvested | 3,638,642 | 2,139,413 | ||||||||
| Cost of shares redeemed | (22,804,022 | ) | (46,384,378 | ) | ||||||
| Total Class C | 2,606,854 | (17,353,778 | ) | |||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 43
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations Moderate Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 24,804,979 | $ | 56,759,821 | ||||||
| Dividends reinvested | 7,435,180 | 2,849,602 | ||||||||
| Cost of shares redeemed | (4,417,816 | ) | (13,214,979 | ) | ||||||
| Total Class R2 | 27,822,343 | 46,394,444 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 8,777,315 | 21,079,808 | ||||||||
| Dividends reinvested | 6,682,605 | 4,667,546 | ||||||||
| Cost of shares redeemed | (5,001,444 | ) | (14,834,827 | ) | ||||||
| Total Institutional Class | 10,458,476 | 10,912,527 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 43,578,803 | 119,090,449 | ||||||||
| Dividends reinvested | 71,020,185 | 47,286,361 | ||||||||
| Cost of shares redeemed | (48,873,190 | ) | (516,409,293 | ) | ||||||
| Total Service Class | 65,725,798 | (350,032,483 | ) | |||||||
| Change in net assets from capital transactions: | $ | 109,227,208 | $ | (311,248,570 | ) | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,302,984 | 2,024,167 | ||||||||
| Reinvested | 564,673 | 266,624 | ||||||||
| Redeemed | (1,472,275 | ) | (2,153,091 | ) | ||||||
| Total Class A Shares | 395,382 | 137,700 | ||||||||
Class B Shares | ||||||||||
| Issued | 167,766 | 218,557 | ||||||||
| Reinvested | 173,426 | 78,724 | ||||||||
| Redeemed | (420,600 | ) | (621,389 | ) | ||||||
| Total Class B Shares | (79,408 | ) | (324,108 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 3,026,549 | 2,602,605 | ||||||||
| Reinvested | 505,573 | 200,997 | ||||||||
| Redeemed | (3,131,443 | ) | (4,613,819 | ) | ||||||
| Total Class C Shares | 400,679 | (1,810,217 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Issued | 3,443,063 | 5,504,333 | ||||||||
| Reinvested | 1,039,214 | 270,963 | ||||||||
| Redeemed | (617,895 | ) | (1,317,194 | ) | ||||||
| Total Class R2 Shares | 3,864,382 | 4,458,102 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
44 Semiannual Report 2009
| Nationwide Investor Destinations Moderate Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 1,215,204 | 1,999,547 | ||||||||
| Reinvested | 921,761 | 437,901 | ||||||||
| Redeemed | (697,160 | ) | (1,462,547 | ) | ||||||
| Total Institutional Class Shares | 1,439,805 | 974,901 | ||||||||
Service Class Shares | ||||||||||
| Issued | 6,020,371 | 11,447,823 | ||||||||
| Reinvested | 9,790,707 | 4,430,273 | ||||||||
| Redeemed | (6,874,654 | ) | (46,950,349 | ) | ||||||
| Total Service Class Shares | 8,936,424 | (31,072,253 | ) | |||||||
| Total change in shares: | 14,957,264 | (27,635,875 | ) | |||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 45
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 | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .29 | 0 | .11 | (0 | .20) | (0 | .09) | (0 | .11) | (0 | .71) | (0 | .82) | $ | 7 | .38 | (0 | .92%) | $ | 60,592,480 | 0 | .48% | 2 | .81% | 0 | .48% | 11 | .63% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .48%(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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .24 | 0 | .08 | (0 | .20) | (0 | .12) | (0 | .08) | (0 | .71) | (0 | .79) | $ | 7 | .33 | (1 | .32%) | $ | 21,455,816 | 1 | .22% | 2 | .07% | 1 | .22% | 11 | .63% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .20%(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% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .21 | 0 | .08 | (0 | .20) | (0 | .12) | (0 | .08) | (0 | .71) | (0 | .79) | $ | 7 | .30 | (1 | .33%) | $ | 124,700,313 | 1 | .22% | 2 | .07% | 1 | .22% | 11 | .63% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .20%(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 R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .21 | 0 | .09 | (0 | .20) | (0 | .11) | (0 | .12) | (0 | .71) | (0 | .83) | $ | 7 | .27 | (1 | .10%) | $ | 94,461,731 | 0 | .92% | 2 | .30% | 0 | .92% | 11 | .63% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .61%(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% | 0 | .62%(f) | 5 | .64% | ||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–” are zero or have been rounded to zero. (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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. (h) For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
46 Semiannual Report 2009
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 | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .29 | 0 | .12 | (0 | .20) | (0 | .08) | (0 | .12) | (0 | .71) | (0 | .83) | $ | 7 | .38 | (0 | .78%) | $ | 69,174,751 | 0 | .22% | 3 | .01% | 0 | .22% | 11 | .63% | |||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 10 | .02 | 0 | .18 | 0 | .09 | 0 | .27 | (0 | .17) | – | (0 | .17) | $ | 10 | .12 | 2 | .71% | $ | 1,027 | 0 | .23% | 2 | .45% | 0 | .23%(f) | 5 | .91% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .28 | 0 | .10 | (0 | .20) | (0 | .10) | (0 | .10) | (0 | .71) | (0 | .81) | $ | 7 | .37 | (0 | .97%) | $ | 707,284,067 | 0 | .58% | 2 | .70% | 0 | .58% | 11 | .63% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .60%(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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 47
| Nationwide Investor Destinations Moderately Conservative Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Investor Destinations Moderately Conservative Fund (Class A at NAV) returned 1.45% versus −0.10% for its composite benchmark, which consists of 40% Standard & Poor’s 500® Index, 35% Barclays Capital (BARCAP) 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 peer category of Mixed-Asset Target Allocation Moderate Funds (consisting of 534 funds as of April 30, 2009) was −0.62%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund (with an allocation of approximately 35%) gained 7.49% during the reporting period. The sectors that posted the strongest performance during the reporting period were non-government-owned and/or backed debt, including corporate bonds, with 12.78%, and asset-backed securities, with 7.93%, as well as government-owned and/or backed Agency mortgages and debentures, which posted returns of 8.29% and 6.65%, respectively. The Nationwide Enhanced Income Fund (with an allocation of approximately 7.5%) gained 2.61% during the reporting period; it also benefited from allocations to the sectors mentioned above while maintaining its high-quality portfolio of primarily corporate bonds.
What areas detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with −8.64%, and the Nationwide International Index Fund, with −4.35%, (with allocations of approximately 20% and 10%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the S&P 500 Index recorded positive returns; the information technology sector led the way with a gain of 5.61%. By contrast, the financials sector within the S&P 500 Index posted the weakest results, with −29.13% for the reporting period. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with −13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is a cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a steadier economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
48 Semiannual Report 2009
The table below lists the target allocations (as of April 30, 2009) 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.
Nationwide Investor Destinations Moderately Conservative Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Asset Class | Underlying Investment | Target Allocation | Six-Month Return | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 35% | 7.49% | |||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 20% | -8.64% | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 10% | -0.41% | |||||||
| International Stocks | Nationwide International Index Fund | 10% | -4.35% | |||||||
| Money Market Investments | Nationwide Money Market Fund | 10% | 0.20% | |||||||
| Short-Term Bonds | Nationwide Fixed Contract | 7.5% | 1.96% | |||||||
| Short-Term Bonds | Nationwide Enhanced Income Fund | 7.5% | 2.61% | |||||||
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
Performance shown is for Institutional Class shares for each underlying investment except the Nationwide Fixed Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 49
| Fund Performance | Nationwide Investor Destinations Moderately Conservative Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Month* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | 1.45% | -14.02% | 1.88% | 1.84% | |||||||||||||
| w/SC3 | -4.41% | -18.96% | 0.68% | 1.18% | ||||||||||||||
| Class B | w/o SC2 | 1.07% | -14.67% | 1.16% | 1.16% | |||||||||||||
| w/SC4 | -3.79% | -18.73% | 0.83% | 1.16% | ||||||||||||||
Class C5 | w/o SC2 | 1.09% | -14.61% | 1.17% | 1.16% | |||||||||||||
| w/SC6 | 0.12% | -15.42% | 1.17% | 1.16% | ||||||||||||||
Class R27,8,10 | 1.27% | -14.38% | 1.66% | 1.47% | ||||||||||||||
Institutional Class7,9 | 1.58% | -13.79% | 2.15% | 2.00% | ||||||||||||||
Service Class7 | 1.31% | -14.12% | 1.76% | 1.78% | ||||||||||||||
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 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 R2 shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R2 shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R2 shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because the Class R2 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. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.79% | |||||
| Class B | 1.50% | |||||
| Class C | 1.50% | |||||
| Class R2 | 1.16% | |||||
| Institutional Class | 0.50% | |||||
| Service Class | 0.90% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 versus performance of the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index) (a), S&P 500® Index (b), the Citigroup 3-Month T-Bill Index (c), the Moderately Conservative Fund Composite Index (d), and the Consumer Price Index (CPI) (e) since inception. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. One cannot invest directly in a market index.
| (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) that is generally representative of the bond market as a whole. | |
| (b) | The S&P 500 Index is 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. | |
| (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 Fund Composite Index is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderately Conservative Fund Composite is a combination of the S&P 500 Index (40%), the Barclays Capital U.S. Aggregate Bond Index (35%) and the Citigroup 3-Month T-Bill Index (25%). | |
| (e) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
50 Semiannual Report 2009
| Shareholder | Nationwide Investor Destinations Moderately Conservative 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Investor Destinations Moderately Conservative Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,014.52 | 2.47 | 0.49 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.34 | 2.48 | 0.49 | |||||||||||||||
| Class B | Actual | 1,000.00 | 1,010.71 | 6.08 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.74 | 6.12 | 1.22 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,010.94 | 6.08 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.74 | 6.12 | 1.22 | |||||||||||||||
Class R2d | Actual | 1,000.00 | 1,012.67 | 4.47 | 0.90 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.36 | 4.49 | 0.90 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,015.77 | 1.08 | 0.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.72 | 1.08 | 0.22 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 1,013.14 | 2.88 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.93 | 2.90 | 0.58 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represent the hypothetical 5% return before expenses. | |
| d | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 51
| Portfolio Summary | Nationwide Investor Destinations Moderately Conservative Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Fixed Income Funds | 44 | .3% | ||
| Equity Funds | 41 | .5% | ||
| Fixed Contract | 8 | .1% | ||
| Money Market Fund | 6 | .0% | ||
| Other assets in excess of liabilities | 0 | .1% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide Bond Index Fund, Institutional Class | 34 | .2% | ||
| Nationwide S&P 500 Index Fund, Institutional Class | 20 | .4% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 10 | .7% | ||
| Nationwide International Index Fund, Institutional Class | 10 | .4% | ||
| Nationwide Enhanced Income Fund, Institutional Class | 10 | .2% | ||
| Nationwide Fixed Contract, | 8 | .1% | ||
| Nationwide Money Market Fund, Institutional Class | 6 | .0% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
52 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Investor Destinations Moderately Conservative Fund
| Mutual Funds 91.8% (a) | ||||||||
| Shares | Market Value | |||||||
Equity Funds 41.5% | ||||||||
| Nationwide International Index Fund, Institutional Class | 6,875,324 | $ | 36,851,739 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 4,070,314 | 37,731,815 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class | 9,870,548 | 72,252,409 | ||||||
| 146,835,963 | ||||||||
Fixed Income Funds 44.3% | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 11,130,764 | 120,657,478 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class | 3,950,694 | 36,188,359 | ||||||
| 156,845,837 | ||||||||
Money Market Fund 6.0% (b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 21,375,418 | 21,375,418 | ||||||
Total Mutual Funds (cost $384,162,592) | 325,057,218 | |||||||
| Fixed Contract 8.1% (a)(c) | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.75% | $ | 28,526,973 | 28,526,973 | |||||
Total Fixed Contract (cost $28,526,973) | 28,526,973 | |||||||
Total Investments (cost $412,689,565) (d) — 99.9% | 353,584,191 | |||||||
Other assets in excess of liabilities — 0.1% | 421,568 | |||||||
NET ASSETS — 100.0% | $ | 354,005,759 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 53
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Moderately | |||||
| Conservative Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $412,689,565) | $ | 353,584,191 | |||
| Interest and dividends receivable from affiliates | 525,255 | ||||
| Receivable for capital shares issued | 260,528 | ||||
| Prepaid expenses and other assets | 65,786 | ||||
| Total Assets | 354,435,760 | ||||
Liabilities: | |||||
| Payable for investments purchased | 109,333 | ||||
| Payable for capital shares redeemed | 154,327 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 36,974 | ||||
| Distribution fees | 101,021 | ||||
| Trustee fees | 1,603 | ||||
| Compliance program costs (Note 3) | 4,780 | ||||
| Custodian fees | 6,107 | ||||
| Professional fees | 15,856 | ||||
| Total Liabilities | 430,001 | ||||
Net Assets | $ | 354,005,759 | |||
Represented by: | |||||
| Capital | $ | 413,543,426 | |||
| Accumulated undistributed net investment income | 511,710 | ||||
| Accumulated net realized losses from investment transactions | (944,003 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (59,105,374 | ) | |||
Net Assets | $ | 354,005,759 | |||
Net Assets: | |||||
| Class A Shares | $ | 23,580,672 | |||
| Class B Shares | 5,547,423 | ||||
| Class C Shares | 34,619,884 | ||||
| Class R2 Shares (a) | 42,381,269 | ||||
| Institutional Class Shares | 12,303,708 | ||||
| Service Class Shares | 235,572,803 | ||||
| Total | $ | 354,005,759 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 2,806,918 | ||||
| Class B Shares | 660,463 | ||||
| Class C Shares | 4,136,679 | ||||
| Class R2 Shares (a) | 5,038,339 | ||||
| Institutional Class Shares | 1,453,834 | ||||
| Service Class Shares | 27,930,746 | ||||
| Total | 42,026,979 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
54 Semiannual Report 2009
| Nationwide | |||||
| Investor Destinations | |||||
| Moderately | |||||
| Conservative Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 8.40 | |||
| Class B Shares (b) | $ | 8.40 | |||
| Class C Shares (c) | $ | 8.37 | |||
| Class R2 Shares (a) | $ | 8.41 | |||
| Institutional Class Shares | $ | 8.46 | |||
| Service Class Shares | $ | 8.43 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 8.91 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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.
2009 Semiannual Report 55
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Moderately | |||||
| Conservative Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 5,030,659 | |||
| Interest income from affiliates | 510,680 | ||||
| Total Income | 5,541,339 | ||||
EXPENSES: | |||||
| Investment advisory fees | 216,256 | ||||
| Distribution fees Class A | 28,980 | ||||
| Distribution fees Class B | 27,060 | ||||
| Distribution fees Class C | 161,613 | ||||
| Distribution fees Class R2 (a) | 84,750 | ||||
| Distribution fees Service Class | 282,814 | ||||
| Administrative services fees Class A | 3,336 | ||||
| Administrative services fees Class R2 (a) | 30,686 | ||||
| Administrative services fees Service Class | 126,051 | ||||
| Registration and filing fees | 35,072 | ||||
| Professional fees | 31,496 | ||||
| Printing fees | 11,780 | ||||
| Trustee fees | 12,268 | ||||
| Compliance program costs (Note 3) | 3,533 | ||||
| Custodian fees | 10,014 | ||||
| Other | 39,570 | ||||
| Total expenses before earnings credit | 1,105,279 | ||||
| Earning credit (Note 4) | (775 | ) | |||
| Net Expenses | 1,104,504 | ||||
NET INVESTMENT INCOME | 4,436,835 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 4,477,569 | ||||
| Net realized losses from investment transactions with affiliates | (2,988,263 | ) | |||
| Net realized gains from affiliated investments | 1,489,306 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | (1,137,213 | ) | |||
| Net realized/unrealized gains from affiliated investments | 352,093 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 4,788,928 | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
56 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Investor Destinations | ||||||||||
| Moderately Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 4,436,835 | $ | 10,585,926 | ||||||
| Net realized gains from investment transactions | 1,489,306 | 8,471,793 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | (1,137,213 | ) | (89,266,683 | ) | ||||||
| Change in net assets resulting from operations | 4,788,928 | (70,208,964 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (345,647 | ) | (848,551 | ) | ||||||
| Class B | (59,532 | ) | (164,433 | ) | ||||||
| Class C | (365,875 | ) | (931,779 | ) | ||||||
| Class R2 (a) | (429,489 | ) | (722,476 | ) | ||||||
| Institutional Class | (183,268 | ) | (484,092 | ) | ||||||
| Service Class | (3,310,508 | ) | (7,974,834 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (662,773 | ) | (685,073 | ) | ||||||
| Class B | (151,799 | ) | (178,112 | ) | ||||||
| Class C | (912,450 | ) | (1,045,495 | ) | ||||||
| Class R2 (a) | (868,064 | ) | (510,786 | ) | ||||||
| Institutional Class | (310,498 | ) | (345,628 | ) | ||||||
| Service Class | (6,366,471 | ) | (6,497,505 | ) | ||||||
| Change in net assets from shareholder distributions | (13,966,374 | ) | (20,388,764 | ) | ||||||
| Change in net assets from capital transactions | 26,296,264 | 16,071,822 | ||||||||
| Change in net assets | 17,118,818 | (74,525,906 | ) | |||||||
Net Assets: | ||||||||||
| Beginning of period | 336,886,941 | 411,412,847 | ||||||||
| End of period | $ | 354,005,759 | $ | 336,886,941 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 511,710 | $ | 769,194 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 3,647,183 | $ | 7,539,671 | ||||||
| Dividends reinvested | 717,648 | 1,139,017 | ||||||||
| Cost of shares redeemed | (3,210,777 | ) | (8,363,411 | ) | ||||||
| Total Class A | 1,154,054 | 315,277 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 790,607 | 855,894 | ||||||||
| Dividends reinvested | 126,226 | 184,724 | ||||||||
| Cost of shares redeemed | (916,575 | ) | (1,509,949 | ) | ||||||
| Total Class B | 258 | (469,331 | ) | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 7,716,919 | 8,208,188 | ||||||||
| Dividends reinvested | 410,283 | 573,501 | ||||||||
| Cost of shares redeemed | (4,625,775 | ) | (12,981,807 | ) | ||||||
| Total Class C | 3,501,427 | (4,200,118 | ) | |||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 57
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations | ||||||||||
| Moderately Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 13,388,653 | $ | 22,348,282 | ||||||
| Dividends reinvested | 1,236,781 | 1,153,632 | ||||||||
| Cost of shares redeemed | (1,379,527 | ) | (5,096,074 | ) | ||||||
| Total Class R2 | 13,245,907 | 18,405,840 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 2,606,678 | 4,568,456 | ||||||||
| Dividends reinvested | 493,766 | 829,717 | ||||||||
| Cost of shares redeemed | (2,414,262 | ) | (4,071,816 | ) | ||||||
| Total Institutional Class | 686,182 | 1,326,357 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 22,265,252 | 60,955,574 | ||||||||
| Dividends reinvested | 9,676,951 | 14,472,312 | ||||||||
| Cost of shares redeemed | (24,233,767 | ) | (74,734,089 | ) | ||||||
| Total Service Class | 7,708,436 | 693,797 | ||||||||
| Change in net assets from capital transactions: | $ | 26,296,264 | $ | 16,071,822 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 444,696 | 744,885 | ||||||||
| Reinvested | 86,916 | 110,766 | ||||||||
| Redeemed | (397,123 | ) | (829,249 | ) | ||||||
| Total Class A Shares | 134,489 | 26,402 | ||||||||
Class B Shares | ||||||||||
| Issued | 96,084 | 88,533 | ||||||||
| Reinvested | 15,255 | 17,892 | ||||||||
| Redeemed | (110,955 | ) | (151,518 | ) | ||||||
| Total Class B Shares | 384 | (45,093 | ) | |||||||
Class C Shares | ||||||||||
| Issued | 934,336 | 833,664 | ||||||||
| Reinvested | 49,790 | 55,734 | ||||||||
| Redeemed | (568,970 | ) | (1,288,070 | ) | ||||||
| Total Class C Shares | 415,156 | (398,672 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Issued | 1,627,926 | 2,202,753 | ||||||||
| Reinvested | 149,476 | 112,504 | ||||||||
| Redeemed | (168,266 | ) | (511,947 | ) | ||||||
| Total Class R2 Shares | 1,609,136 | 1,803,310 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
58 Semiannual Report 2009
| Nationwide Investor Destinations | ||||||||||
| Moderately Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 316,469 | 442,453 | ||||||||
| Reinvested | 59,412 | 80,259 | ||||||||
| Redeemed | (293,228 | ) | (406,300 | ) | ||||||
| Total Institutional Class Shares | 82,653 | 116,412 | ||||||||
Service Class Shares | ||||||||||
| Issued | 2,710,243 | 5,983,972 | ||||||||
| Reinvested | 1,166,289 | 1,402,625 | ||||||||
| Redeemed | (2,963,638 | ) | (7,340,798 | ) | ||||||
| Total Service Class Shares | 912,894 | 45,799 | ||||||||
| Total change in shares: | 3,154,712 | 1,548,158 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 59
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| And | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .64 | 0 | .11 | 0 | .01 | 0 | .12 | (0 | .12) | (0 | .24) | (0 | .36) | $ | 8 | .40 | 1 | .45% | $ | 23,580,672 | 0 | .49% | 2 | .85% | 0 | .49% | 12 | .31% | |||||||||||||||||||||||||||||||||||||||||
| 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% | $ | 29,097,499 | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .64 | 0 | .09 | – | 0 | .09 | (0 | .09) | (0 | .24) | (0 | .33) | $ | 8 | .40 | 1 | .07% | $ | 5,547,423 | 1 | .22% | 2 | .12% | 1 | .22% | 12 | .31% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .21%(f) | 6 | .66% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .61 | 0 | .08 | 0 | .01 | 0 | .09 | (0 | .09) | (0 | .24) | (0 | .33) | $ | 8 | .37 | 1 | .09% | $ | 34,619,884 | 1 | .22% | 2 | .12% | 1 | .22% | 12 | .31% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .22%(f) | 6 | .66% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
(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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares.
(h) For the period from December 29, 2004 (commencement of operations) through October 31, 2005.
The accompanying notes are in integral part of these financial statements.
60 Semiannual Report 2009
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| And | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .65 | 0 | .10 | – | 0 | .10 | (0 | .11) | (0 | .23) | (0 | .34) | $ | 8 | .41 | 1 | .27% | $ | 42,381,269 | 0 | .90% | 2 | .39% | 0 | .90% | 12 | .31% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .60%(f) | 6 | .66% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .70 | 0 | .13 | – | 0 | .13 | (0 | .13) | (0 | .24) | (0 | .37) | $ | 8 | .46 | 1 | .58% | $ | 12,303,708 | 0 | .22% | 3 | .08% | 0 | .22% | 12 | .31% | ||||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 10 | .17 | 0 | .23 | 0 | .04 | 0 | .27 | (0 | .20) | – | (0 | .20) | $ | 10 | .24 | 3 | .70% | $ | 1,027 | 0 | .29% | 3 | .17% | 0 | .29%(f) | 8 | .37% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 8 | .68 | 0 | .11 | – | 0 | .11 | (0 | .12) | (0 | .24) | (0 | .36) | $ | 8 | .43 | 1 | .31% | $ | 235,572,803 | 0 | .58% | 2 | .76% | 0 | .58% | 12 | .31% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 61
| 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 semiannual period ended April 30, 2009, the Nationwide Investor Destinations Conservative Fund (Class A at NAV) returned 2.82% versus 1.42% for its composite benchmark, which consists of 45% Citigroup 3-Month Treasury Bill (T-Bill) Index, 35% Barclays Capital (BARCAP) U.S. Aggregate Bond Index and 20% Standard & Poor’s 500® (S&P 500) Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target Allocation Conservative Funds (consisting of 451 funds as of April 30, 2009) was 1.72%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund (with an allocation of approximately 40%) gained 7.49% during the reporting period. The sectors that posted the strongest performance during the reporting period were non-government-owned and/or backed debt, including corporate bonds, with 12.78%, and asset-backed securities, with 7.93%, as well as government-owned and/or backed Agency mortgages and debentures, which posted returns of 8.29% and 6.65%, respectively. The Nationwide Enhanced Income Fund (with an allocation of approximately 12.5%) gained 2.61% during the reporting period; it also benefited from allocations to the sectors mentioned above while maintaining its high-quality portfolio of primarily corporate bonds.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with −8.64%, and the Nationwide International Index Fund, with −4.35%, (with allocations of approximately 10% and 5%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the S&P 500 Index recorded positive returns; the information technology sector led the way with a gain of 5.61%. By contrast, the financials sector within the S&P 500 Index posted the weakest results, with −29.13% for the reporting period. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with −13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
62 Semiannual Report 2009
The table below lists the target allocations (as of April 30, 2009) 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.
Nationwide Investor Destinations Conservative Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Asset Class | Underlying Investment | Target Allocation | Six-Month Return | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 40% | 7.49% | |||||||
| Money Market Investments | Nationwide Money Market Fund | 15% | 0.20% | |||||||
| Short-Term Bonds | Nationwide Fixed Contract | 12.5% | 1.96% | |||||||
| Short-Term Bonds | Nationwide Enhanced Income Fund | 12.5% | 2.61% | |||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 10% | -8.64% | |||||||
| International Stocks | Nationwide International Index Fund | 5% | -4.35% | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 5% | -0.41% | |||||||
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
Performance shown is for Institutional Class shares for each underlying investment except the Nationwide Fixed Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 63
| Fund Performance | Nationwide Investor Destinations Conservative Fund |
Average Annual Total Return
(For periods ended April 30, 2009)
(For periods ended April 30, 2009)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | Inception1 | |||||||||||||||
| Class A | w/o SC2 | 2.82% | -5.87% | 2.71% | 2.89% | |||||||||||||
| w/SC3 | -3.05% | -11.31% | 1.50% | 2.22% | ||||||||||||||
| Class B | w/o SC2 | 2.52% | -6.56% | 2.00% | 2.18% | |||||||||||||
| w/SC4 | -2.48% | -11.07% | 1.65% | 2.18% | ||||||||||||||
Class C5 | w/o SC2 | 2.46% | -6.56% | 2.00% | 2.17% | |||||||||||||
| w/SC6 | 1.46% | -7.46% | 2.00% | 2.17% | ||||||||||||||
Class R27,8,10 | 2.66% | -6.16% | 2.52% | 2.50% | ||||||||||||||
Institutional Class7,9 | 2.94% | -5.70% | 3.00% | 3.05% | ||||||||||||||
Service Class7 | 2.91% | -5.92% | 2.62% | 2.83% | ||||||||||||||
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 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 R2 shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R2 shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R2 shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R2 shares would have produced because the Class R2 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. | |
| 10 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.78% | |||||
| Class B | 1.51% | |||||
| Class C | 1.51% | |||||
| Class R2 | 1.14% | |||||
| Institutional Class | 0.51% | |||||
| Service Class | 0.91% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “ Shareholder Expense Example” section of the report. |
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 versus performance of the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index) (a), S&P 500® Index (b), the Citigroup 3-Month T-Bill Index (c), the Conservative Fund Composite Index (d), and the Consumer Price Index (CPI) (e) since inception. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. One cannot invest directly in a market index.
| (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) that is generally representative of the bond market as a whole. | |
| (b) | The S&P 500 Index is 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. | |
| (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 Fund Composite Index is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Conservative Fund Composite is a combination of the S&P 500 Index (20%), the Barclays Capital U.S. Aggregate Bond Index (35%) and the Citigroup 3-Month T-Bill Index (45%). | |
| (e) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
64 Semiannual Report 2009
| Shareholder | Nationwide Investor Destinations Conservative 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Investor Destinations Conservative Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,028.17 | 2.52 | 0.50 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.31 | 2.51 | 0.50 | |||||||||||||||
| Class B | Actual | 1,000.00 | 1,025.24 | 6.11 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.76 | 6.11 | 1.22 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,024.59 | 6.11 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.76 | 6.11 | 1.22 | |||||||||||||||
Class R2d | Actual | 1,000.00 | 1,026.61 | 4.32 | 0.86 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.53 | 4.32 | 0.86 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,029.37 | 1.10 | 0.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.71 | 1.09 | 0.22 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 1,029.05 | 2.93 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.91 | 2.92 | 0.58 | |||||||||||||||
| 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 the Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represent the hypothetical 5% return before expenses. | |
| d | Effective February 28, 2009. Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 65
| Portfolio Summary | Nationwide Investor Destinations Conservative Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Fixed Income Funds | 55.2% | |||
| Equity Funds | 21.1% | |||
| Fixed Contract | 11.9% | |||
| Money Market Fund | 11.7% | |||
| Other assets in excess of liabilities | 0.1% | |||
| 100.0% | ||||
| Top Holdings | ||||
| Nationwide Bond Index Fund, Institutional Class | 39.5% | |||
| Nationwide Enhanced Income Fund, Institutional Class | 15.7% | |||
| Nationwide Fixed Contract | 11.9% | |||
| Nationwide Money Market Fund, Institutional Class | 11.7% | |||
| Nationwide S&P 500 Index Fund, Institutional Class | 10.5% | |||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 5.4% | |||
| Nationwide International Index Fund, Institutional Class | 5.3% | |||
| 100.0% | ||||
The accompanying notes are an integral part of these financial statements.
66 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Investor Destinations Conservative Fund
| Mutual Funds 88.0% (a) | ||||||||
| Shares | Market Value | |||||||
Equity Funds 21.1% | ||||||||
| Nationwide International Index Fund, Institutional Class | 2,605,024 | $ | 13,962,927 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 1,549,324 | 14,362,229 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class | 3,738,954 | 27,369,143 | ||||||
| 55,694,299 | ||||||||
Fixed Income Funds 55.2% | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 9,642,494 | 104,524,636 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class | 4,555,744 | 41,730,614 | ||||||
| 146,255,250 | ||||||||
Money Market Fund 11.7% (b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 31,023,447 | 31,023,447 | ||||||
Total Mutual Funds (cost $251,779,350) | 232,972,996 | |||||||
| Fixed Contract 11.9% (a)(c) | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.75% | $ | 31,631,415 | 31,631,415 | |||||
Total Fixed Contract (cost $31,631,415) | 31,631,415 | |||||||
Total Investments (cost $283,410,765) (d) — 99.9% | 264,604,411 | |||||||
Other assets in excess of liabilities — 0.1% | 277,931 | |||||||
NET ASSETS — 100.0% | $ | 264,882,342 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 67
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor | |||||
| Destinations Conservative Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $283,410,765) | $ | 264,604,411 | |||
| Interest and dividends receivable from affiliates | 478,701 | ||||
| Receivable for capital shares issued | 235,292 | ||||
| Receivable for investments sold | 129,415 | ||||
| Prepaid expenses and other assets | 68,055 | ||||
| Total Assets | 265,515,874 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 512,120 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 27,932 | ||||
| Distribution fees | 76,774 | ||||
| Trustee fees | 997 | ||||
| Compliance program costs (Note 3) | 3,310 | ||||
| Custodian fees | 1,344 | ||||
| Professional fees | 11,055 | ||||
| Total Liabilities | 633,532 | ||||
Net Assets | $ | 264,882,342 | |||
Represented by: | |||||
| Capital | $ | 284,479,558 | |||
| Accumulated undistributed net investment income | 526,235 | ||||
| Accumulated net realized losses from investment transactions | (1,317,097 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (18,806,354 | ) | |||
Net Assets | $ | 264,882,342 | |||
Net Assets: | |||||
| Class A Shares | $ | 14,440,349 | |||
| Class B Shares | 2,952,342 | ||||
| Class C Shares | 27,556,768 | ||||
| Class R2 Shares (a) | 30,014,073 | ||||
| Institutional Class Shares | 6,595,669 | ||||
| Service Class Shares | 183,323,141 | ||||
| Total | $ | 264,882,342 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,560,931 | ||||
| Class B Shares | 318,470 | ||||
| Class C Shares | 2,988,935 | ||||
| Class R2 Shares (a) | 3,252,666 | ||||
| Institutional Class Shares | 710,420 | ||||
| Service Class Shares | 19,786,293 | ||||
| Total | 28,617,715 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
68 Semiannual Report 2009
| Nationwide | |||||
| Investor | |||||
| Destinations Conservative Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 9.25 | |||
| Class B Shares (b) | $ | 9.27 | |||
| Class C Shares (c) | $ | 9.22 | |||
| Class R2 Shares (a) | $ | 9.23 | |||
| Institutional Class Shares | $ | 9.28 | |||
| 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 | $ | 9.81 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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.
2009 Semiannual Report 69
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Investor | |||||
| Destinations | |||||
| Conservative Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 3,556,171 | |||
| Interest income from affiliates | 529,668 | ||||
| Total Income | 4,085,839 | ||||
EXPENSES: | |||||
| Investment advisory fees | 160,220 | ||||
| Distribution fees Class A | 15,975 | ||||
| Distribution fees Class B | 15,360 | ||||
| Distribution fees Class C | 122,685 | ||||
| Distribution fees Class R2 (a) | 62,527 | ||||
| Distribution fees Service Class | 218,742 | ||||
| Administrative services fees Class A | 2,118 | ||||
| Administrative services fees Class R2 (a) | 16,816 | ||||
| Administrative services fees Service Class | 100,044 | ||||
| Registration and filing fees | 32,344 | ||||
| Professional fees | 22,739 | ||||
| Printing fees | 9,683 | ||||
| Trustee fees | 8,930 | ||||
| Compliance program costs (Note 3) | 2,547 | ||||
| Custodian fees | 4,472 | ||||
| Other | 28,349 | ||||
| Total expenses before earnings credit | 823,551 | ||||
| Earning credit (Note 4) | (376 | ) | |||
| Net Expenses | 823,175 | ||||
NET INVESTMENT INCOME | 3,262,664 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 1,560,934 | ||||
| Net realized losses from investment transactions with affiliates | (1,184,684 | ) | |||
| Net realized gains from affiliated investments | 376,250 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 3,591,663 | ||||
| Net realized/unrealized gains from affiliated investments | 3,967,913 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 7,230,577 | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
70 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Investor Destinations Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 3,262,664 | $ | 7,364,552 | ||||||
| Net realized gains from investment transactions | 376,250 | 3,182,190 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | 3,591,663 | (31,865,536 | ) | |||||||
| Change in net assets resulting from operations | 7,230,577 | (21,318,794 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (189,170 | ) | (369,927 | ) | ||||||
| Class B | (32,831 | ) | (83,681 | ) | ||||||
| Class C | (268,895 | ) | (559,736 | ) | ||||||
| Class R2 (a) | (324,407 | ) | (432,658 | ) | ||||||
| Institutional Class | (96,522 | ) | (216,410 | ) | ||||||
| Service Class | (2,522,753 | ) | (5,880,099 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (180,146 | ) | (130,464 | ) | ||||||
| Class B | (45,532 | ) | (45,046 | ) | ||||||
| Class C | (341,251 | ) | (276,498 | ) | ||||||
| Class R2 (a) | (335,130 | ) | (125,912 | ) | ||||||
| Institutional Class | (85,686 | ) | (66,977 | ) | ||||||
| Service Class | (2,516,657 | ) | (2,213,528 | ) | ||||||
| Change in net assets from shareholder distributions | (6,938,980 | ) | (10,400,936 | ) | ||||||
| Change in net assets from capital transactions | 24,597,824 | 23,565,491 | ||||||||
| Change in net assets | 24,889,421 | (8,154,239 | ) | |||||||
Net Assets: | ||||||||||
| Beginning of period | 239,992,921 | 248,147,160 | ||||||||
| End of period | $ | 264,882,342 | $ | 239,992,921 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 526,235 | $ | 698,149 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 5,648,294 | $ | 7,646,399 | ||||||
| Dividends reinvested | 193,780 | 344,099 | ||||||||
| Cost of shares redeemed | (3,133,908 | ) | (14,936,001 | ) | ||||||
| Total Class A | 2,708,166 | (6,945,503 | ) | |||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 370,684 | 1,201,415 | ||||||||
| Dividends reinvested | 43,024 | 67,118 | ||||||||
| Cost of shares redeemed | (717,244 | ) | (1,262,507 | ) | ||||||
| Total Class B | (303,536 | ) | 6,026 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 8,172,605 | 12,739,577 | ||||||||
| Dividends reinvested | 189,652 | 241,474 | ||||||||
| Cost of shares redeemed | (4,702,084 | ) | (7,446,586 | ) | ||||||
| Total Class C | 3,660,173 | 5,534,465 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 71
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 11,567,040 | $ | 17,904,729 | ||||||
| Dividends reinvested | 626,498 | 507,200 | ||||||||
| Cost of shares redeemed | (2,486,167 | ) | (3,936,978 | ) | ||||||
| Total Class R2 | 9,707,371 | 14,474,951 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,640,209 | 2,846,847 | ||||||||
| Dividends reinvested | 182,208 | 283,385 | ||||||||
| Cost of shares redeemed | (938,876 | ) | (1,710,580 | ) | ||||||
| Total Institutional Class | 883,541 | 1,419,652 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 22,949,766 | 53,252,940 | ||||||||
| Dividends reinvested | 5,039,411 | 8,093,573 | ||||||||
| Cost of shares redeemed | (20,047,068 | ) | (52,270,613 | ) | ||||||
| Total Service Class | 7,942,109 | 9,075,900 | ||||||||
| Change in net assets from capital transactions: | $ | 24,597,824 | $ | 23,565,491 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 620,480 | 760,798 | ||||||||
| Reinvested | 21,200 | 33,924 | ||||||||
| Redeemed | (342,864 | ) | (1,436,187 | ) | ||||||
| Total Class A Shares | 298,816 | (641,465 | ) | |||||||
Class B Shares | ||||||||||
| Issued | 41,104 | 121,510 | ||||||||
| Reinvested | 4,687 | 6,589 | ||||||||
| Redeemed | (79,086 | ) | (127,388 | ) | ||||||
| Total Class B Shares | (33,295 | ) | 711 | |||||||
Class C Shares | ||||||||||
| Issued | 904,697 | 1,280,608 | ||||||||
| Reinvested | 20,789 | 23,848 | ||||||||
| Redeemed | (517,921 | ) | (750,845 | ) | ||||||
| Total Class C Shares | 407,565 | 553,611 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 1,267,522 | 1,783,463 | ||||||||
| Reinvested | 68,694 | 50,233 | ||||||||
| Redeemed | (274,016 | ) | (391,654 | ) | ||||||
| Total Class R2 Shares | 1,062,200 | 1,442,042 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
72 Semiannual Report 2009
| Nationwide Investor Destinations Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 178,976 | 283,419 | ||||||||
| Reinvested | 19,874 | 27,835 | ||||||||
| Redeemed | (102,769 | ) | (169,544 | ) | ||||||
| Total Institutional Class Shares | 96,081 | 141,710 | ||||||||
Service Class Shares | ||||||||||
| Issued | 2,525,162 | 5,272,418 | ||||||||
| Reinvested | 550,100 | 796,011 | ||||||||
| Redeemed | (2,194,837 | ) | (5,134,722 | ) | ||||||
| Total Service Class Shares | 880,425 | 933,707 | ||||||||
| Total change in shares: | 2,711,792 | 2,430,316 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 73
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .26 | 0 | .12 | 0 | .14 | 0 | .26 | (0 | .14) | (0 | .13) | (0 | .27) | $ | 9 | .25 | 2 | .82% | $ | 14,440,349 | 0 | .50% | 2 | .81% | 0 | .50% | 10 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .27 | 0 | .10 | 0 | .13 | 0 | .23 | (0 | .10) | (0 | .13) | (0 | .23) | $ | 9 | .27 | 2 | .52% | $ | 2,952,342 | 1 | .22% | 2 | .09% | 1 | .22% | 10 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .23%(f) | 11 | .67% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .23 | 0 | .09 | 0 | .13 | 0 | .22 | (0 | .10) | (0 | .13) | (0 | .23) | $ | 9 | .22 | 2 | .46% | $ | 27,556,768 | 1 | .22% | 2 | .09% | 1 | .22% | 10 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .24%(f) | 11 | .67% | ||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .24 | 0 | .10 | 0 | .14 | 0 | .24 | (0 | .12) | (0 | .13) | (0 | .25) | $ | 9 | .23 | 2 | .66% | $ | 30,014,073 | 0 | .86% | 2 | .45% | 0 | .86% | 10 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .62%(f) | 11 | .67% | ||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–” are zero or have been rounded to zero. (a) | Excludes sales charge. (b) Not annualized for periods less than one year, if any. (c) Annualized for periods less than one year, if any. (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) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. (h) For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
74 Semiannual Report 2009
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .29 | 0 | .13 | 0 | .13 | 0 | .26 | (0 | .14) | (0 | .13) | (0 | .27) | $ | 9 | .28 | 2 | .94% | $ | 6,595,669 | 0 | .22% | 3 | .09% | 0 | .22% | 10 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 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% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 9 | .27 | 0 | .12 | 0 | .14 | 0 | .26 | (0 | .13) | (0 | .13) | (0 | .26) | $ | 9 | .27 | 2 | .91% | $ | 183,323,141 | 0 | .58% | 2 | .73% | 0 | .58% | 10 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Excludes sales charge. |
| (b) | Not annualized for periods less than one year, if any. |
| (c) | Annualized for periods less than one year, if any. |
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | For the period from December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 75
Notes to Financial Statements
April 30, 2009 (Unaudited)
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”). The Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2009, the Trust operates thirty-two (32) 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) series 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”).
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.
| (a) | Security Valuation |
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset values (“NAV”s) as reported by the Underlying Funds.
The following are the Valuation policies of the Underlying Funds:
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 4:00 p.m. Eastern time). Equity securities are valued at the last quoted sale price or, if there is no last quoted 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
76 Semiannual Report 2009
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 (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), 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.
Each of the Funds (except Investor Destinations Aggressive) currently invests in the Nationwide Fixed Contract. The Nationwide Fixed Contract is a fixed interest contract issued and guaranteed by Nationwide Life. This contract has a stable principal value and pays the Funds 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 six months ended April 30, 2009, the rate ranged from 3.75% to 4.00%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Funds receive no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets underlying the contract. Although under certain market conditions a Fund’s performance may be hurt by its investment in the Nationwide Fixed Contract, Nationwide Fund Advisors (“NFA”) believes that the relatively stable nature of the Nationwide Fixed 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.
The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157), effective with the beginning of the Funds’ current fiscal year. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques, giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are summarized below:
| • | Level 1 — quoted prices in active markets for identical assets | |
| • | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
| • | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities are not intended to indicate the risk associated with investing in those securities.
2009 Semiannual Report 77
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2009:
| Level 2 — Other Significant | Level 3 — Significant | |||||||||||||||||||||||||||||||||
| Level 1 — Quoted Prices | Observable Inputs | Unobservable Inputs | Total | |||||||||||||||||||||||||||||||
| Investments | Other* | Investments | Other* | Investments | Other* | Investments | Other* | |||||||||||||||||||||||||||
| Investor Destinations Aggressive | $ | 704,192,858 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 704,192,858 | $ | — | ||||||||||||||||||
| Investor Destinations Moderately Aggressive | 1,184,215,586 | — | 22,635,930 | — | — | — | 1,206,851,516 | — | ||||||||||||||||||||||||||
| Investor Destinations Moderate | 1,009,409,638 | — | 67,625,068 | — | — | — | 1,077,034,706 | — | ||||||||||||||||||||||||||
| Investor Destinations Moderately Conservative | 325,057,218 | — | 28,526,973 | — | — | — | 353,584,191 | — | ||||||||||||||||||||||||||
| Investor Destinations Conservative | 232,972,996 | — | 31,631,415 | — | — | — | 264,604,411 | — | ||||||||||||||||||||||||||
| * | Other financial instruments are derivative instruments not reflected in the Statement of Investments, such as futures, forwards, and options, which are valued at the unrealized appreciation/depreciation on the instrument. | |
| Amounts designated as “—” are zero or have been rounded to zero. | ||
The following policies (b) through (f) represent the accounting policies applicable to the Underlying Funds:
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with a member of the Federal Reserve System or 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 a 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 April 30, 2009 the funds did not hold any repurchase agreement.
| (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, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. Both fluctuations are included in 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 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
78 Semiannual Report 2009
currency. If it does so, the Funds would be exposed to risk that the counterparty to the contract is unable to meet the terms of the contract and to the risk of unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. Forward foreign currency contracts are adjusted daily by the 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.
| (e) | Futures Contracts |
Certain funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging its existing portfolio securities or securities that the Fund intends 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 the Fund’s positions may not exceed 5% of the Fund’s NAV after taking into account unrealized profits and unrealized losses on such contracts.
Upon entering into a futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets, known as an “initial margin deposit,” equal to a certain percentage of the contract amount. 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, the Funds may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts 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 |
The Funds may enter into mortgage dollar rolls in which the Funds 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 may be implemented in the “to be announced” (“TBA”) market and are referred to as TBAs on the Statement of Investments of the Fund. During the roll period, the Funds 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. Mortgage dollar roll investments entail risks related to the potential inability of counterparties to complete the transaction, which may be heightened because of the delayed payment date. Income is generated as consideration for entering into mortgage dollar rolls 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.
2009 Semiannual Report 79
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
| (h) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly. 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. Permanent differences 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. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as distributions of paid-in-capital.
| (i) | Federal Income Taxes |
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 Funds from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
The Financial Accounting Standards Board (“FASB”) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing 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 such a tax position taken by a Fund is not sustained upon examination by a taxing authority, the filer 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). Each Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service.
Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to a Fund’s NAV and financial statements. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change the next twelve months.
| (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 series 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 series. 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, NFA manages the investment of the assets and supervises the daily business affairs of the Funds. NFA is a wholly-owned subsidiary of Nationwide Financial
80 Semiannual Report 2009
Services, Inc. (“NFS”), a holding company which is a direct wholly-owned subsidiary of is Nationwide Corporation.
Each Fund pays NFA an investment advisory fee of 0.13% based on the Fund’s average daily net assets.
NFA and the Funds have entered into a written Expense Limitation Agreement with respect to the Funds that limits operating expenses (excluding any taxes, interest, brokerage commissions, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by a 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 February 28, 2010:
| 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 Class A, Class B, and Service Class shares 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 Agreement, reimbursement of amounts previously waived or assumed by NFA is not permitted. As of April 30, 2009, 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 0.25% of Class A shares, 1.00% of Class B shares, 1.00% of Class C shares, 0.50% of Class R2 shares (formerly Class R shares), and 0.25% of Service Class shares. Institutional Service Class shares do not pay a distribution fee.
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 six months ended April 30, 2009, NFD received commissions of $257,869 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 $33,479 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
2009 Semiannual Report 81
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 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 R2 (formerly Class R), and Service Class shares of each of the Funds.
For the six months ended April 30, 2009, NFS received the following amounts in administrative services fees from each Fund:
| Fund | Amount | |||||||
| Investor Destinations Aggressive | $ | 393,711 | ||||||
| Investor Destinations Moderately Aggressive | 662,979 | |||||||
| Investor Destinations Moderate | 564,234 | |||||||
| Investor Destinations Moderately Conservative | 194,599 | |||||||
| Investor Destinations Conservative | 147,940 | |||||||
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFA and the Trust, the Trust 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 six months ended April 30, 2009, the Funds’ portion of such costs amounted to $36,310.
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 six months ended April 30, 2009.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those series that use DDAs based on the number of open shareholder accounts in each series. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft
82 Semiannual Report 2009
charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for the series 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.
5. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the six months ended April 30, 2009, were as follows:
| Fund | Purchases | Sales | ||||||||||
| Investor Destinations Aggressive | $ | 96,355,462 | $ | 42,375,614 | ||||||||
| Investor Destinations Moderately Aggressive | 187,589,520 | 105,759,950 | ||||||||||
| Investor Destinations Moderate | 154,760,806 | 112,523,848 | ||||||||||
| Investor Destinations Moderately Conservative | 57,764,048 | 38,122,654 | ||||||||||
| Investor Destinations Conservative | 41,164,083 | 23,785,535 | ||||||||||
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 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 Derivatives 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 has concluded that the adoption of the Amendment did not impact each Fund’s financial statement disclosures.
In April 2009, the FASB issued FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 also provides guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the Funds’ financial statement disclosures.
2009 Semiannual Report 83
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
8. Other
As of April 30, 2009, 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.
| Number of | ||||||||||||
| Fund | % of Shares | Accounts | ||||||||||
| Investor Destination Aggressive | 83% | 2 | ||||||||||
| Investor Destination Moderately Aggressive | 82% | 2 | ||||||||||
| Investor Destination Moderate | 90% | 3 | ||||||||||
| Investor Destination Moderately Conservative | 81% | 2 | ||||||||||
| Investor Destination Conservative | 82% | 2 | ||||||||||
9. Federal Tax Information
As of April 30, 2009, the tax cost of securities and the breakdown of the unrealized appreciation/(depreciation) for each Fund were as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| Investor Destinations Aggressive | 1,068,823,691 | 284,926 | (364,915,759 | ) | (364,630,833 | ) | ||||||||||||
| Investor Destinations Moderately Aggressive | 1,697,428,874 | 1,704,188 | (492,281,546 | ) | (490,577,358 | ) | ||||||||||||
| Investor Destinations Moderate | 1,385,046,783 | 2,183,683 | (310,195,760 | ) | (308,012,077 | ) | ||||||||||||
| Investor Destinations Moderately Conservative | 418,081,256 | 755,209 | (65,252,274 | ) | (64,497,065 | ) | ||||||||||||
| Investor Destinations Conservative | 286,324,700 | 950,008 | (22,670,297 | ) | (21,720,289 | ) | ||||||||||||
84 Semiannual Report 2009
Supplemental Information
(Unaudited)
A. Renewal of Advisory (and Sub-advisory) Agreements
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
The Board has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
On December 2, 2008, the Trustees met in person with their independent legal counsel (“Independent Legal Counsel”), the Adviser, Trust counsel, and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the December 2, 2008 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
In preparation for the December 2, 2008 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2008) compared with performance groups and performance universes created by Lipper (and in some cases, customized peer groups created by the Adviser) of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2008) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2008, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) information from the Adviser describing, on a Fund-by-Fund basis, any fees paid to the Adviser for managing similar, non-affiliated institutional accounts, including the range of fee levels for such accounts, and (vii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
At the December 2, 2008 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds and those paid by non-affiliated institutional clients to the Adviser for managing similar accounts, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio
2009 Semiannual Report 85
Supplemental Information
(Unaudited) (Continued)
transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
As part of the December 2, 2008 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions at the contract approval meeting of the Board of Trustees to be held on January 16, 2009.
At the January 16, 2009 meeting of the Board of Trustees of the Trust, the Board received and considered information provided by the Adviser in follow-up from the December 2, 2008 Board meeting and, after consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, concluded unanimously to renew the Advisory Agreement for the reasons set forth in the following section.
Nationwide Investor Destinations Aggressive Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and qualify of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that, for the one-year period ended September 30, 2008, the Fund’s performance for Class A shares was in the fifth quintile of its Peer Group and below the Fund’s benchmark, which is a 95%/5% blend of the S&P 500® Index and the Barclays Capital U.S. Aggregate Bond Index. With respect to the thee-year period ended September 30, 2008, the Fund outperformed the benchmark, but ranked in the fourth quintile of its Peer Group. The Trustees noted, however, that, for the five-year period ended September 30, 2008, the Fund’s performance for Class A shares was in the first quintile of its Peer Universe and above the Fund’s benchmark.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fourth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also took into account supplemental comparative information regarding the Fund’s advisory fees. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide Investor Destinations Moderately Aggressive Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one- and three-year periods ended September 30, 2008, the Fund’s performance for Class A shares was in the second and first quintiles of its Peer Group, respectively. The Trustees noted that, with respect to the five-year period ended September 30, 2008, the Fund’s performance for Class A shares placed it in the first quintile of its Peer Universe. The Trustees noted that, for the one-year period ended September 30, 2008, the Fund underperformed its benchmark, which is an 80%/15%/5% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index, but that the Fund outperformed the benchmark for the three- and five-year periods ended September 30, 2008.
86 Semiannual Report 2009
The Trustees noted that the Fund’s actual advisory fee was in the fourth quintile of its Peer Group, but that the Fund’s contractual advisory fee and total expenses for Class A shares was in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees took into account supplemental comparative information regarding the Fund’s advisory fees. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide Investor Destinations Moderate Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-, three-, and five-year periods ended September 30, 2008 was in the second quintile of its Peer Group. The Trustees noted that, with respect to the one- and three-year periods ended September 30, 2008, the Fund underpeformed its benchmark, which is a 60%/25%/15% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index, but that the Fund outperformed the benchmark for the five-year period ended September 30, 2008. The Trustees considered that the Fund’s benchmark is more conservative than the Fund, and noted that, during a market downturn, the Fund will underperform the benchmark, while during a market upturn, the Fund will outperform the benchmark.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares was in the second and fourth quintiles of its Peer Group, respectively, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees took into account supplemental comparative information regarding the Fund’s advisory fees. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide Investor Destinations Moderately Conservative Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one- and three-year periods ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, which is a 40%/35%/25% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index. For the five-year period ended September 30, 2008, the Trustees noted that the Fund was in the second quintile of its Peer Universe and above the Fund’s benchmark.
2009 Semiannual Report 87
Supplemental Information
(Unaudited) (Continued)
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the second quintile of its Peer Group, and that the Fund’s actual advisory fee was in the fourth quintile of its Peer Group. The Trustees noted, however, that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees took into account supplemental comparative information regarding the Fund’s advisory fees. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
Nationwide Investor Destinations Conservative Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one- and three-year periods ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, which is a 20%/35%/45% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index. For the five-year period ended September 30, 2008, the Trustees noted that the Fund was in the second quintile of its Peer Universe, but underperformed the Fund’s benchmark. The Trustees noted that the Fund has been attracting assets and has an overall four-star Morningstar rating as of September 30, 2008.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees took into account supplemental comparative information regarding the Fund’s advisory fees. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded the Advisory and Sub-Advisory Agreements with respect to the Fund should be renewed.
88 Semiannual Report 2009
Management Information
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | ||||||||||
| 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 (formerly Mitchell Madison Group), until 2001. Ms. Dryden was a managing partner at Mitchell Madison Group from 1996-2001. | 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 | ||||||||||
2009 Semiannual Report 89
Management Information (Continued)
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | Retired. 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, and served as Board Member of Columbus Downtown Development Corporation from June 2002 to June 2006. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts and Chairman of the Greater Columbus Convention and Visitors Bureau. | 94 | None | ||||||||||
90 Semiannual Report 2009
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 serves as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Fund’s 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 by calling 800-848-0920.
2009 Semiannual Report 91
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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 S. Spangler Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1966 | President and Chief Executive Officer since June 2008 | 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 2008 | 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 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. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. 2 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.2From 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 | ||||||||||
92 Semiannual Report 2009
| 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.2 She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide.2 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 | ||||||||||
| Lynnett Berger Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1965 | Vice President and Chief Investment Officer since April 2009 | Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Vice President of Economic Risk Lab (Operational Risk Group) of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007. | N/A | N/A | ||||||||||
2009 Semiannual Report 93
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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 Butler4 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 and Director 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. Butler has announced his resignation effective June 30, 2009. |
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 and 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. This summary is available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
94 Semiannual Report 2009
P.O. Box 182205
Columbus, OH 43218-2205
nationwide.com/mutualfunds
Nationwide, Nationwide Financial,
the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
©2009 Nationwide Funds Group.
All rights reserved.
SAR-ID 6/09
Nationwide Mutual Funds
SemiannualReport
April 30, 2009 (Unaudited)
Equity Funds
Nationwide Growth Fund
Nationwide Fund
Fixed-Income Fund
Nationwide Money Market Fund
SemiannualReport
April 30, 2009 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Equity Funds | |||
| 5 | Nationwide Growth Fund | ||
| 20 | Nationwide Fund | ||
Fixed Income Fund | |||
| 35 | Nationwide Money Market Fund | ||
| 48 | 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
April 30, 2009
Dear Shareholder,
The semiannual reporting period for the Nationwide Mutual Funds (NMF) has encompassed two extremely difficult quarters for stock mutual fund investing. Although the blue-chip indexes, including the Dow Jones Industrial Average (DJIA), sank to 12-year lows on March 9th of this year, the market has shown some signs of cautious rebounding. It may be too early to call this a recovery, but at the start of the second quarter of 2009, stock prices began to show signs of improvement.
Federal Reserve Board Chairman Ben Bernanke has talked about seeing “green shoots” in the financial system in the wake of the central bank’s unprecedented efforts to get credit flowing again. Chairman Bernanke has cited as evidence of economic improvement: the rise in consumer spending in the first quarter of the year; a slow, but steady rate of new and existing home purchases, and a modest revival of the credit markets.
Some of those “shoots” are, indeed, hopeful signs. The recession, however, is not fading as quickly as we all would wish. The much-anticipated government plan to remove toxic assets from banks’ balance sheets, as of this writing, has not been implemented. The results from the government’s stress testing of banks are just being disseminated, and the early news indicates that some banks may require more relief.
In the coming months, investors will be keeping an eye on Washington as much as on Wall Street. The damage to the economy remains severe; the latest government figures suggest that, at best, the pace of the negative news has slowed.
This has been a challenging time in the financial markets. At Nationwide® and Nationwide Funds Groupsm we continue to keep a long-term perspective. We remain committed to the underlying investment principles of our funds.
We thank you for entrusting your assets to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
President
Nationwide Mutual Funds
2009 Semiannual Report 1
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, nationwide.com/mutualfunds.
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 fund.
The Treasury Department has extended the U.S. Department of the Treasury’s Temporary Guarantee Program (the “Program”) for Money Market Funds until September 18, 2009. The Board of Trustees of Nationwide Mutual Funds approved the continued participation of the Nationwide Money Market Fund in the Program on April 8, 2009.
Here are some reminders about the program:
| • | Only shareholders who held shares in the Nationwide Money Market Fund on September 19, 2008 are eligible for protection under the Program. |
| • | The Program currently in place provides a guarantee to these shareholders based on the number of shares invested in the Funds at the close of business on September 19, 2008. |
| • | Any increase in the number of shares an eligible shareholder holds after the close of business on September 19, 2008, will not be guaranteed by the Program. |
| • | 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 is not part of the U.S. Treasury Department’s Troubled Assets Relief Program (TARP). The Program is intended to provide relief for investors in the event the per share value of any of the money market funds falls below $0.995 and a fund liquidates its holdings. The Program will provide coverage to a fund’s shareholders of record at the close of business on September 19, 2008 up to $1.00 per share for the lesser of either the number of shares the investor held in that fund or the number of shares the investor held the date the per share value fell below $0.995. This is commonly referred to as “breaking the buck.” |
| • | The U.S. Treasury Department, through the Exchange Stabilization Fund (“ESF”), is providing this guarantee. In the event that a participating fund breaks the buck and liquidates, a guarantee payment should be made to investors through their fund within approximately 30 days, subject to possible extensions at the discretion of the Treasury. Payments to investors under the Program will depend on the availability of assets in the ESF, which currently totals approximately $50 billion. The U.S. Department of the Treasury and the Secretary of the Treasury have the authority to use assets from the ESF for purposes other than those of the Program. |
| • | Participation in each period of the Program requires a payment to the U.S. Department of the Treasury in the amount of 0.015% based on the net asset value of the Fund as of September 19, 2008. Each Fund individually bears this expense without regard to any expense limitation currently in effect for the Fund. |
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 nationwide.com/mutualfunds.
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.
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.
2 Semiannual Report 2009
Barclays Capital (BARCAP) 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 or more) that is generally representative of the bond market as a whole.
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.
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.
Morgan Stanley Capital International Emerging Markets (MSCI EMsm) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
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.
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.
| • | Nationwide Money Market Fund |
The Fund has no sales charge or 12b-1 fee.
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 nationwide.com/mutualfunds. 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.
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.
Based in Conshohocken, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors (NIA).
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 a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
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. or Federated Investment Management Company.
2009 Semiannual Report 3
Summary of Market Environment
The following is a summary from Nationwide Funds Group regarding market conditions during the reporting period.
The first half of the reporting period was filled with economic events that have not happened in the United States in more than 50 years, nor, in many cases, since the time of the Great Depression of the late 1920s and 1930s. A rebound in the markets began in mid-March and continued into April, evidence that market observers, as well as investors, are anticipating improvement in the economy during the latter half of 2009 and early 2010. Economic news during the reporting period was mixed, with signs of brightening frequently offset by events that indicated a deepening of the recession.
Some of the negative news included: (1) a 6.1% decrease in the annualized U.S. gross domestic product (GDP) for the first quarter of 2009, as reported by the U.S. Bureau of Economic Analysis; (2) a continuously rising jobless rate, which hit 8.9% in April 2009 according to the Department of Labor (DOL), representing the highest level in the jobless rate since 1983 (as companies continue laying off workers, the unemployment rate well may increase to 10% by the end of 2009;) (3) a spate of new questions about the capital positions of some of the largest U.S. financial institutions (4) persistently-low consumer confidence, resulting in depressed spending levels; and (5) the spreading of residential real estate market troubles to commercial real estate, causing even greater levels of stress in the financial system.
Toward the end of March and into April, some signs emerged that the worst of the economic news might be behind us: (1) indicators pointed to the possibility that price declines in the U.S. housing market were nearing an end; (2) President Obama’s administration announced the “Public-Private Investment Program” (PPIP) to help banks unload some of their illiquid assets and; (3) the U.S. Bureau of Economic Analysis reported in April that personal consumption rose by 2.2% in the first quarter of 2009, an indication that consumer confidence may be strengthening.
A broad look at index performance during the reporting period revealed that mid-capitalization U.S. equities beat their large- and small-cap counterparts by a significant margin. Specifically, large caps, as measured by the Standard & Poor’s 500® (S&P 500) Index, fell 8.5% during the reporting period amid continuing market volatility. Mid-caps, as measured by the Standard & Poor’s MidCap 400® (S&P 400) Index, lost 0.2%, and small caps, as measured by the Russell 2000® Index, declined 8.4%.
In general, the performance of international stocks experienced a significant upswing during the latter part of the reporting period, outpacing that of U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost 2.4% during the reporting period, despite a gain of more than 7.9% during the latter half of the period. Emerging market stocks, as measured by the MSCI Emerging Markets (MSCI EM) Indexsm, gained more than 17% during the reporting period, including a gain of more than 25% during the last three months of the reporting period.
The reporting period was positive overall for fixed-income investors. The broad-based fixed-income Barclays Capital (BARCAP) U.S. Aggregate Bond Index gained 7.7% during the reporting period.
4 Semiannual Report 2009
Nationwide Growth Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Growth Fund (Class A at NAV) returned 0.70% versus −1.52% for its benchmark, the Russell 1000® Growth Index. For broader comparison, the average return for the Fund’s Lipper peer category of Large-Cap Growth Funds (consisting of 879 funds as of April 30, 2009) was −2.35% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Security selection in the information technology (IT), health-care and consumer discretionary sectors provided the most positive relative returns for the Fund during the reporting period. The Fund’s holding in semiconductor manufacturer Marvell Technology Group Ltd. enhanced Fund performance in the IT sector; the company benefited from a very favorable inventory position relative to end-user demand. As new products are launched, we believe the company will expand its profit margins and grow earnings faster than its peers and faster than many investors expect. Within the health-care sector, the Fund’s holding in biotechnology firm Biogen Idec Inc. was a positive contributor to Fund performance. Our decision not to own Celgene Corp., whose stock price fell as fundamentals for one of its key products deteriorated, also helped the Fund. The Fund’s position in Darden Restaurants, Inc., a casual-dining restaurant chain, also enhanced Fund performance during the period. The stock performed well as the company reduced expenses, realized cost savings from acquisitions and achieved better-than-expected sales from its Olive Garden and Red Lobster restaurant chains.
What areas of investment detracted from Fund performance?
Overall, stock selection did not significantly hinder Fund performance in any sector during the reporting period. Among individual holdings, the Fund’s underweight in computers and peripherals manufacturer International Business Machines Corp. (IBM) contributed negatively to the Fund. IBM reported record profits for 2008, an increase of 24% over the previous year. The Fund’s position in Baxter International, Inc., a provider of health-care equipment and supplies, also hampered performance; the company’s stock price was hindered by declining sales as well as continued uncertainty as to the direction and magnitude of health-care policy initiatives coming from Washington, D.C.
What is your outlook for the near term?
Our near-term outlook suggests a continued difficult environment for the economy, given rising unemployment and continuing deleveraging across the economy. Though recovery will take time, we are seeing signs of improvement as the cumulative effect of numerous government and Federal Reserve Board policy initiatives begin to take hold. Several encouraging developments have emerged recently. For example, the latest data on housing activity exceeded expectations, and new car sales were up. Consumers, who comprise two-thirds of the U.S. gross domestic product (GDP), have begun to save again; the savings rate rose from -1% to nearly 3% in the fourth quarter of 2008. The more recent equity market rally has been sharp and quick but rather concentrated, although it does appear that panic has subsided within the global financial markets. The rate of economic deceleration appears to be moderating, which has led equity markets to begin discounting future growth. While we remain cautious in the near term, we continue to invest in companies we believe will survive and prosper across the business cycle.
Subadviser:
Aberdeen Asset Management Inc.
Aberdeen Asset Management Inc.
Portfolio Managers:
Christopher Baggini, CFA; and Douglas Burtnick, CFA
Christopher Baggini, CFA; and Douglas Burtnick, CFA
2009 Semiannual Report 5
| Fund Performance | Nationwide Growth Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 0.70% | -29.17% | -0.91% | -6.63% | |||||||||||||
| w/SC2 | -5.13% | -33.22% | -2.08% | -7.18% | ||||||||||||||
| Class B | w/o SC1 | 0.39% | -29.70% | -1.53% | -7.52% | |||||||||||||
| w/SC3 | -4.61% | -33.22% | -1.93% | -7.52% | ||||||||||||||
Class C4 | w/o SC1 | 0.39% | -29.70% | -1.55% | -7.19% | |||||||||||||
| w/SC5 | -0.61% | -30.40% | -1.55% | -7.19% | ||||||||||||||
| Class D | w/o SC1 | 0.85% | -28.95% | -0.57% | -6.35% | |||||||||||||
| w/SC6 | -3.76% | -32.15% | -1.48% | -6.78% | ||||||||||||||
Class R24,7,8 | 0.53% | -29.40% | -1.09% | -6.63% | ||||||||||||||
Institutional Service Class4,7 | 0.69% | -29.03% | -0.60% | -6.35% | ||||||||||||||
Institutional Class4,7 | 0.86% | -28.98% | -0.60% | -6.37% | ||||||||||||||
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.
| * | Not annualized. | |
| 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 R2 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 R2 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 R2 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.10% | |||||
| Class B | 1.81% | |||||
| Class C | 1.81% | |||||
| Class D | 0.82% | |||||
| Class R2 | 1.51% | |||||
| Institutional Service Class | 0.81% | |||||
| Institutional Class | 0.81% | |||||
| * | Annualized data as of October 31, 2008. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 04/30/09. 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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
6 Semiannual Report 2009
| Shareholder | Nationwide 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Growth Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,007.03 | 7.27 | 1.46 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.55 | 7.33 | 1.46 | |||||||||||||||
| Class B | Actual | 1,000.00 | 1,003.89 | 10.68 | 2.15 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.13 | 10.79 | 2.15 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,003.89 | 10.68 | 2.15 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.13 | 10.79 | 2.15 | |||||||||||||||
| Class D | Actual | 1,000.00 | 1,008.53 | 5.78 | 1.16 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.04 | 5.82 | 1.16 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 1,005.25 | 7.71 | 1.55 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.11 | 7.78 | 1.55 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 1,006.87 | 6.33 | 1.27 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.49 | 6.38 | 1.27 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,008.61 | 6.30 | 1.27 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.52 | 6.35 | 1.27 | |||||||||||||||
| 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 Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
2009 Semiannual Report 7
| Portfolio Summary | Nationwide Growth Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 98 | .9% | ||
| Repurchase Agreements | 2 | .0% | ||
| Liabilities in excess of other assets | (0 | .9)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Computers & Peripherals | 8 | .0% | ||
| Communications Equipment | 7 | .0% | ||
| Software | 6 | .3% | ||
| Semiconductors & Semiconductor Equipment | 5 | .4% | ||
| Hotels, Restaurants & Leisure | 5 | .0% | ||
| Specialty Retail | 4 | .5% | ||
| Chemicals | 4 | .2% | ||
| Oil, Gas & Consumable Fuels | 4 | .1% | ||
| Food & Staples Retailing | 3 | .9% | ||
| Pharmaceuticals | 3 | .9% | ||
| Other Industries* | 47 | .7% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Google, Inc., Class A | 3 | .3% | ||
| Hewlett-Packard Co. | 3 | .0% | ||
| Oracle Corp. | 2 | .7% | ||
| QUALCOMM, Inc. | 2 | .5% | ||
| Apple, Inc. | 2 | .5% | ||
| Cisco Systems, Inc. | 2 | .4% | ||
| Wal-Mart Stores, Inc. | 2 | .0% | ||
| Intel Corp. | 2 | .0% | ||
| Microsoft Corp. | 2 | .0% | ||
| Baxter International, Inc. | 2 | .0% | ||
| Other Holdings* | 75 | .6% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
8 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Growth Fund
| Common Stocks 98.9% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 3.6% | ||||||||
| Alliant Techsystems, Inc.* | 4,050 | $ | 322,583 | |||||
| Boeing Co. | 3,880 | 155,394 | ||||||
| Honeywell International, Inc. | 38,000 | 1,185,980 | ||||||
| Precision Castparts Corp. | 11,050 | 827,203 | ||||||
| Raytheon Co. | 29,150 | 1,318,454 | ||||||
| United Technologies Corp. | 8,860 | 432,722 | ||||||
| 4,242,336 | ||||||||
Air Freight & Logistics 1.4% | ||||||||
| CH Robinson Worldwide, Inc. | 12,000 | 637,920 | ||||||
| United Parcel Service, Inc., Class B | 18,400 | 963,056 | ||||||
| 1,600,976 | ||||||||
Airline 0.7% | ||||||||
| Southwest Airlines Co. | 119,200 | �� | 832,016 | |||||
Beverages 2.2% | ||||||||
Coca-Cola Co. (The) | 9,420 | 405,531 | ||||||
| PepsiCo, Inc. | 42,990 | 2,139,182 | ||||||
| 2,544,713 | ||||||||
Biotechnology 2.3% | ||||||||
| Cephalon, Inc.* | 14,960 | 981,526 | ||||||
| Gilead Sciences, Inc.* | 37,990 | 1,739,942 | ||||||
| 2,721,468 | ||||||||
Capital Markets 2.1% | ||||||||
| Charles Schwab Corp. (The) | 35,600 | 657,888 | ||||||
| Goldman Sachs Group, Inc. (The) | 7,130 | 916,205 | ||||||
| Northern Trust Corp. | 6,700 | 364,212 | ||||||
| State Street Corp. | 16,290 | 555,978 | ||||||
| 2,494,283 | ||||||||
Chemicals 4.2% | ||||||||
| Air Products & Chemicals, Inc. | 7,000 | 461,300 | ||||||
| FMC Corp. | 9,750 | 475,117 | ||||||
| Monsanto Co. | 19,777 | 1,678,870 | ||||||
| Praxair, Inc. | 17,800 | 1,328,058 | ||||||
| Valspar Corp. | 37,350 | 896,400 | ||||||
| 4,839,745 | ||||||||
Communications Equipment 7.0% | ||||||||
| Cisco Systems, Inc.* | 141,340 | 2,730,689 | ||||||
| Corning, Inc. | 35,100 | 513,162 | ||||||
| Juniper Networks, Inc.* | 46,100 | 998,065 | ||||||
| QUALCOMM, Inc. | 68,420 | 2,895,534 | ||||||
| Research In Motion Ltd.* | 13,900 | 966,050 | ||||||
| 8,103,500 | ||||||||
Computers & Peripherals 8.0% | ||||||||
| Apple, Inc.* | 22,740 | 2,861,374 | ||||||
| Dell, Inc.* | 34,900 | 405,538 | ||||||
| EMC Corp.* | 97,550 | 1,222,301 | ||||||
| Hewlett-Packard Co. | 96,640 | 3,477,107 | ||||||
| International Business Machines Corp. | 4,950 | 510,890 | ||||||
| NetApp, Inc.* | 31,200 | 570,960 | ||||||
| Western Digital Corp.* | 8,600 | 202,272 | ||||||
| 9,250,442 | ||||||||
Diversified Financial Services 1.1% | ||||||||
| JPMorgan Chase & Co. | 37,200 | 1,227,600 | ||||||
Electric Utility 0.2% | ||||||||
| DPL, Inc. | 8,750 | 196,263 | ||||||
Electrical Equipment 2.0% | ||||||||
| Ametek, Inc. | 25,095 | 808,310 | ||||||
| Emerson Electric Co. | 44,800 | 1,524,992 | ||||||
| 2,333,302 | ||||||||
Electronic Equipment & Instruments 0.2% | ||||||||
| FLIR Systems, Inc.* | 8,900 | 197,402 | ||||||
Energy Equipment & Services 3.2% | ||||||||
| Cameron International Corp.* | 29,100 | 744,378 | ||||||
| Schlumberger Ltd. | 37,320 | 1,828,307 | ||||||
| Transocean Ltd.* | 17,114 | 1,154,853 | ||||||
| 3,727,538 | ||||||||
Food & Staples Retailing 3.9% | ||||||||
| CVS Caremark Corp. | 57,069 | 1,813,653 | ||||||
| Wal-Mart Stores, Inc. | 47,160 | 2,376,864 | ||||||
| Walgreen Co. | 11,300 | 355,159 | ||||||
| 4,545,676 | ||||||||
Health Care Equipment & Supplies 3.1% | ||||||||
| Baxter International, Inc. | 46,350 | 2,247,975 | ||||||
| Medtronic, Inc. | 11,800 | 377,600 | ||||||
| St. Jude Medical, Inc.* | 27,850 | 933,532 | ||||||
| 3,559,107 | ||||||||
Health Care Providers & Services 2.3% | ||||||||
| Aetna, Inc. | 32,060 | 705,641 | ||||||
| Express Scripts, Inc.* | 4,650 | 297,461 | ||||||
| Medco Health Solutions, Inc.* | 19,600 | 853,580 | ||||||
| Quest Diagnostics, Inc. | 16,550 | 849,511 | ||||||
| 2,706,193 | ||||||||
Hotels, Restaurants & Leisure 5.0% | ||||||||
| Darden Restaurants, Inc. | 44,700 | 1,652,559 | ||||||
| International Game Technology | 23,100 | 285,285 | ||||||
| Marriott International, Inc., Class A | 11,300 | 266,228 | ||||||
| McDonald’s Corp. | 30,070 | 1,602,430 | ||||||
2009 Semiannual Report 9
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Growth Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 52,900 | $ | 1,103,494 | |||||
| WMS Industries, Inc.* | 26,950 | 865,365 | ||||||
| 5,775,361 | ||||||||
Household Durables 0.2% | ||||||||
| Garmin Ltd. | 7,300 | 183,887 | ||||||
Household Products 1.4% | ||||||||
| Colgate-Palmolive Co. | 21,400 | 1,262,600 | ||||||
| Procter & Gamble Co. (The) | 8,530 | 421,723 | ||||||
| 1,684,323 | ||||||||
Industrial Conglomerate 0.4% | ||||||||
| 3M Co. | 7,450 | 429,120 | ||||||
Information Technology Services 1.7% | ||||||||
| Cognizant Technology Solutions Corp., Class A * | 20,020 | 496,296 | ||||||
| Visa, Inc., Class A | 22,960 | 1,491,481 | ||||||
| 1,987,777 | ||||||||
Insurance 0.8% | ||||||||
| Aflac, Inc. | 10,000 | 288,900 | ||||||
| MetLife, Inc. | 20,290 | 603,627 | ||||||
| 892,527 | ||||||||
Internet & Catalog Retail 0.3% | ||||||||
| Amazon.com, Inc.* | 3,700 | 297,924 | ||||||
Internet Software & Services 3.3% | ||||||||
| Google, Inc., Class A* | 9,570 | 3,789,433 | ||||||
Leisure Equipment & Products 0.2% | ||||||||
| Hasbro, Inc. | 10,500 | 279,930 | ||||||
Life Sciences Tools & Services 0.9% | ||||||||
| Thermo Fisher Scientific, Inc.* | 28,650 | 1,005,042 | ||||||
Machinery 2.6% | ||||||||
| Deere & Co. | 29,550 | 1,219,233 | ||||||
| Graco, Inc. | 11,200 | 264,208 | ||||||
| PACCAR, Inc. | 18,000 | 637,920 | ||||||
| SPX Corp. | 20,450 | 944,176 | ||||||
| 3,065,537 | ||||||||
Media 1.0% | ||||||||
| Comcast Corp., Class A | 77,500 | 1,198,150 | ||||||
Metals & Mining 0.6% | ||||||||
| Nucor Corp. | 17,200 | 699,868 | ||||||
Multiline Retail 2.8% | ||||||||
| Kohl’s Corp.* | 21,700 | 984,095 | ||||||
| Macy’s, Inc. | 44,400 | 607,392 | ||||||
| Nordstrom, Inc. | 11,500 | 260,245 | ||||||
| Target Corp. | 35,150 | 1,450,289 | ||||||
| 3,302,021 | ||||||||
Natural Gas Utility 0.1% | ||||||||
| Questar Corp. | 5,400 | 160,488 | ||||||
Oil, Gas & Consumable Fuels 4.1% | ||||||||
| Cabot Oil & Gas Corp. | 29,600 | 893,624 | ||||||
| EOG Resources, Inc. | 23,500 | 1,491,780 | ||||||
| Hess Corp. | 26,900 | 1,473,851 | ||||||
| Occidental Petroleum Corp. | 7,800 | 439,062 | ||||||
| Peabody Energy Corp. | 8,600 | 226,954 | ||||||
| Williams Cos., Inc. (The) | 19,730 | 278,193 | ||||||
| 4,803,464 | ||||||||
Pharmaceuticals 3.9% | ||||||||
| Abbott Laboratories | 45,600 | 1,908,360 | ||||||
| Allergan, Inc. | 14,900 | 695,234 | ||||||
| Bristol-Myers Squibb Co. | 73,900 | 1,418,880 | ||||||
| Schering-Plough Corp. | 21,000 | 483,420 | ||||||
| 4,505,894 | ||||||||
Professional Services 1.3% | ||||||||
| Manpower, Inc. | 13,500 | 581,715 | ||||||
| Watson Wyatt Worldwide, Inc., Class A | 16,650 | 883,282 | ||||||
| 1,464,997 | ||||||||
Real Estate Investment Trusts 0.3% | ||||||||
| Plum Creek Timber Co., Inc. | 9,800 | 338,296 | ||||||
Road & Rail 1.5% | ||||||||
| Burlington Northern Santa Fe Corp. | 3,000 | 202,440 | ||||||
| Canadian National Railway Co. | 17,850 | 721,497 | ||||||
| Ryder System, Inc. | 4,800 | 132,912 | ||||||
| Union Pacific Corp. | 14,400 | 707,616 | ||||||
| 1,764,465 | ||||||||
Semiconductors & Semiconductor Equipment 5.4% | ||||||||
| Altera Corp. | 67,350 | 1,098,479 | ||||||
| Intel Corp. | 150,230 | 2,370,629 | ||||||
| Marvell Technology Group Ltd.* | 108,650 | 1,192,977 | ||||||
| Microchip Technology, Inc. | 24,700 | 568,100 | ||||||
| NVIDIA Corp.* | 41,100 | 471,828 | ||||||
| Texas Instruments, Inc. | 30,250 | 546,315 | ||||||
| 6,248,328 | ||||||||
Software 6.3% | ||||||||
| Intuit, Inc.* | 10,000 | 231,300 | ||||||
| McAfee, Inc.* | 44,500 | 1,670,530 | ||||||
| Microsoft Corp. | 112,720 | 2,283,707 | ||||||
| Oracle Corp. | 160,190 | 3,098,075 | ||||||
| 7,283,612 | ||||||||
10 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Specialty Retail 4.5% | ||||||||
| Advance Auto Parts, Inc. | 13,150 | $ | 575,313 | |||||
| GameStop Corp., Class A* | 35,840 | 1,080,934 | ||||||
| Lowe’s Cos., Inc. | 99,600 | 2,141,400 | ||||||
| Staples, Inc. | 28,800 | 593,856 | ||||||
| Urban Outfitters, Inc.* | 45,200 | 880,948 | ||||||
| 5,272,451 | ||||||||
Textiles, Apparel & Luxury Goods 1.0% | ||||||||
| Coach, Inc.* | 48,400 | 1,185,800 | ||||||
Tobacco 1.0% | ||||||||
| Philip Morris International, Inc. | 30,900 | 1,118,580 | ||||||
Trading Companies & Distributors 0.8% | ||||||||
| W.W. Grainger, Inc. | 10,520 | 882,418 | ||||||
Total Common Stocks (cost $119,148,275) | 114,742,253 | |||||||
| Repurchase Agreements 2.0% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $791,646, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $807,475 | $ | 791,642 | 791,642 | |||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $1,495,182, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $1,525,080 | 1,495,175 | 1,495,175 | ||||||
Total Repurchase Agreements (cost $2,286,817) | 2,286,817 | |||||||
Total Investments (cost $121,435,092) (a) — 100.9% | 117,029,070 | |||||||
Liabilities in excess of other assets — (0.9)% | (1,001,809 | ) | ||||||
NET ASSETS — 100.0% | $ | 116,027,261 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd | Limited |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 11
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Growth Fund | |||||
Assets: | |||||
| Investments, at value (cost $119,148,275) | $ | 114,742,253 | |||
| Repurchase agreements, at value and cost | 2,286,817 | ||||
| Total Investments | 117,029,070 | ||||
| Interest and dividends receivable | 122,208 | ||||
| Receivable for capital shares issued | 16,980 | ||||
| Receivable for investments sold | 2,217,598 | ||||
| Prepaid expenses and other assets | 55,708 | ||||
| Total Assets | 119,441,564 | ||||
Liabilities: | |||||
| Payable for investments purchased | 3,209,091 | ||||
| Payable for capital shares redeemed | 45,005 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 55,600 | ||||
| Fund administration fees | 12,033 | ||||
| Distribution fees | 3,771 | ||||
| Administrative services fees | 15,447 | ||||
| Trustee fees | 739 | ||||
| Compliance program costs (Note 3) | 1,817 | ||||
| Custodian fees | 5,010 | ||||
| Printing fees | 56,314 | ||||
| Professional fees | 6,569 | ||||
| Other | 2,907 | ||||
| Total Liabilities | 3,414,303 | ||||
Net Assets | $ | 116,027,261 | |||
Represented by: | |||||
| Capital | $ | 375,577,379 | |||
| Accumulated undistributed net investment income | 133,697 | ||||
| Accumulated net realized losses from investment transactions | (255,277,793 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (4,406,022 | ) | |||
Net Assets | $ | 116,027,261 | |||
Net Assets: | |||||
| Class A Shares | $ | 9,345,969 | |||
| Class B Shares | 1,763,902 | ||||
| Class C Shares | 623,883 | ||||
| Class D Shares | 104,227,316 | ||||
| Class R2 Shares (a) | 64,325 | ||||
| Institutional Service Class Shares | 931 | ||||
| Institutional Class Shares | 935 | ||||
| Total | $ | 116,027,261 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,630,406 | ||||
| Class B Shares | 341,804 | ||||
| Class C Shares | 120,915 | ||||
| Class D Shares | 17,726,210 | ||||
| Class R2 Shares (a) | 11,200 | ||||
| Institutional Service Class Shares | 158 | ||||
| Institutional Class Shares | 159 | ||||
| Total | 19,830,852 | ||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
12 Semiannual Report 2009
| Nationwide | |||||
| Growth Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 5.73 | |||
| Class B Shares (b) | $ | 5.16 | |||
| Class C Shares (c) | $ | 5.16 | |||
| Class D Shares | $ | 5.88 | |||
| Class R2 Shares (a) | $ | 5.74 | |||
| Institutional Service Class Shares | $ | 5.88 | (d) | ||
| Institutional Class Shares | $ | 5.87 | (d) | ||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 6.08 | |||
| Class D Shares | $ | 6.16 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| Class D Shares | 4.50 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. | |
| (d) | The NAV reported above represents the traded NAV at April 30, 2009. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 13
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Growth Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 508 | |||
| Dividend income | 863,724 | ||||
| Foreign tax withholding | (496 | ) | |||
| Total Income | 863,736 | ||||
EXPENSES: | |||||
| Investment advisory fees | 324,179 | ||||
| Fund administration fees | 67,404 | ||||
| Distribution fees Class A | 10,977 | ||||
| Distribution fees Class B | 8,543 | ||||
| Distribution fees Class C | 5,065 | ||||
| Distribution fees Class R2 (a) | 5 | ||||
| Administrative services fees Class A | 2,515 | ||||
| Administrative services fees Class D | 1,790 | ||||
| Registration and filing fees | 52,802 | ||||
| Professional fees | 10,259 | ||||
| Printing fees | 55,258 | ||||
| Trustee fees | 4,047 | ||||
| Compliance program costs (Note 3) | 1,162 | ||||
| Custodian fees | 32,938 | ||||
| Other | 76,395 | ||||
| Total expenses before earnings credit | 653,339 | ||||
| Earnings credit (Note 5) | (9,915 | ) | |||
| Net Expenses | 643,424 | ||||
NET INVESTMENT INCOME | 220,312 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (24,203,762 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 24,231,447 | ||||
| Net realized/unrealized gains from investments | 27,685 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 247,997 | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
14 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Growth Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 220,312 | $ | 439,605 | ||||||
| Net realized losses from investment transactions | (24,203,762 | ) | (20,074,972 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 24,231,447 | (56,754,191 | ) | |||||||
| Change in net assets resulting from operations | 247,997 | (76,389,558 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | – | (24,178 | ) | |||||||
| Class B | – | (683 | ) | |||||||
| Class C | – | – | ||||||||
| Class D | (166,801 | ) | (339,208 | ) | ||||||
| Class R2 (a) | – | (1 | ) | |||||||
| Institutional Service Class | (1 | ) | (3 | ) | ||||||
| Institutional Class | (2 | ) | (3 | ) | ||||||
| Change in net assets from shareholder distributions | (166,804 | ) | (364,076 | ) | ||||||
| Change in net assets from capital transactions | (5,041,765 | ) | (20,385,421 | ) | ||||||
| Change in net assets | (4,960,572 | ) | (97,139,055 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 120,987,833 | 218,126,888 | ||||||||
| End of period | $ | 116,027,261 | $ | 120,987,833 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 133,697 | $ | 80,189 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 677,447 | $ | 5,286,231 | ||||||
| Dividends reinvested | – | 19,422 | ||||||||
| Cost of shares redeemed (b) | (1,282,915 | ) | (6,938,623 | ) | ||||||
| Total Class A | (605,468 | ) | (1,632,970 | ) | ||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 99,960 | 287,221 | ||||||||
| Dividends reinvested | – | 633 | ||||||||
| Cost of shares redeemed (b) | (352,812 | ) | (1,118,646 | ) | ||||||
| Total Class B | (252,852 | ) | (830,792 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 2,002,949 | 768,162 | ||||||||
| Dividends reinvested | – | – | ||||||||
| Cost of shares redeemed (b) | (1,935,701 | ) | (2,129,882 | ) | ||||||
| Total Class C | 67,248 | (1,361,720 | ) | |||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 15
Statements of Changes in Net Assets (Continued)
| Nationwide Growth Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | $ | 1,519,492 | $ | 5,182,808 | ||||||
| Dividends reinvested | 161,801 | 328,100 | ||||||||
| Cost of shares redeemed (b) | (5,994,359 | ) | (22,070,854 | ) | ||||||
| Total Class D | (4,313,066 | ) | (16,559,946 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 63,703 | – | ||||||||
| Dividends reinvested | – | 1 | ||||||||
| Cost of shares redeemed (b) | (1,333 | ) | – | |||||||
| Total Class R2 | 62,370 | 1 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 1 | 3 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Service Class | 1 | 3 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 2 | 3 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Class | 2 | 3 | ||||||||
| Change in net assets from capital transactions: | $ | (5,041,765 | ) | $ | (20,385,421 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 130,324 | 639,018 | ||||||||
| Reinvested | – | 2,550 | ||||||||
| Redeemed | (248,374 | ) | (888,876 | ) | ||||||
| Total Class A Shares | (118,050 | ) | (247,308 | ) | ||||||
Class B Shares | ||||||||||
| Issued | 20,725 | 40,064 | ||||||||
| Reinvested | – | 91 | ||||||||
| Redeemed | (75,459 | ) | (160,261 | ) | ||||||
| Total Class B Shares | (54,734 | ) | (120,106 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 419,785 | 99,100 | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | (420,099 | ) | (308,471 | ) | ||||||
| Total Class C Shares | (314 | ) | (209,371 | ) | ||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
16 Semiannual Report 2009
| Nationwide Growth Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class D Shares | ||||||||||
| Issued | 282,740 | 645,162 | ||||||||
| Reinvested | 29,689 | 42,007 | ||||||||
| Redeemed | (1,137,620 | ) | (2,754,933 | ) | ||||||
| Total Class D Shares | (825,191 | ) | (2,067,764 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 11,259 | – | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | (233 | ) | – | |||||||
| Total Class R2 Shares | 11,026 | – | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Service Class | – | – | ||||||||
Institutional Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Class | – | – | ||||||||
| Total change in shares: | (987,263 | ) | (2,644,549 | ) | ||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The Accompanying Notes are an integral part of these Financial Statements.
2009 Semiannual 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Investment | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Income | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net Asset | Net Assets | Expenses | (Loss) to | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Total | Redemption | Value, End | Total | at End | to Average | Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Distributions | fees | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 5 | .69 | – | 0 | .04 | 0 | .04 | – | – | – | $ | 5 | .73 | 0 | .70% | $ | 9,345,969 | 1 | .46% | 0 | .16% | 1 | .46% | 68 | .28% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | – | 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%) | 1 | .34% (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%) | 1 | .19% (g) | 286 | .06% | ||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 5 | .14 | (0 | .01) | 0 | .03 | 0 | .02 | – | – | – | $ | 5 | .16 | 0 | .39% | $ | 1,763,902 | 2 | .15% | (0 | .53%) | 2 | .15% | 68 | .28% | ||||||||||||||||||||||||||||||||||||||||||||
| 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%) | 1 | .98% (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%) | 1 | .84% (g) | 286 | .06% | ||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 5 | .14 | (0 | .01) | 0 | .03 | 0 | .02 | – | – | – | $ | 5 | .16 | 0 | .39% | $ | 623,883 | 2 | .15% | (0 | .61%) | 2 | .15% | 68 | .28% | ||||||||||||||||||||||||||||||||||||||||||||
| 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%) | 2 | .03% (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%) | 1 | .84% (g) | 286 | .06% | ||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 5 | .84 | 0 | .01 | 0 | .04 | 0 | .05 | (0 | .01) | (0 | .01) | – | $ | 5 | .88 | 0 | .85% | $ | 104,227,316 | 1 | .16% | 0 | .46% | 1 | .16% | 68 | .28% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .99% (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%) | 0 | .85% (g) | 286 | .06% | |||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | There were no fee reductions during the period. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (i) | For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
The accompanying notes are an integral part of these financial statements.
18 Semiannual Report 2009
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Investment | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Income | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net Asset | Net Assets | Expenses | (Loss) to | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Total | Redemption | Value, End | Total | at End | to Average | Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Distributions | fees | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 5 | .71 | (0 | .03) | 0 | .06 | 0 | .03 | – | – | – | $ | 5 | .74 | 0 | .53% | $ | 64,325 | 1 | .55% | (1 | .26%) | 1 | .55% | 68 | .28% | ||||||||||||||||||||||||||||||||||||||||||||
| 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%) | 1 | .29% (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%) | 1 | .29% (g) | 286 | .06% | ||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 5 | .85 | 0 | .01 | 0 | .03 | 0 | .04 | (0 | .01) | (0 | .01) | – | $ | 5 | .88 | 0 | .69% | $ | 931 | 1 | .27% | 0 | .30% | 1 | .27% | 68 | .28% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .04% (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% | 0 | .84% (g) | 286 | .06% | ||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended April 30, 2009 (Unaudited) (f) | $ | 5 | .83 | 0 | .01 | 0 | .04 | 0 | .05 | (0 | .01) | (0 | .01) | – | $ | 5 | .87 | 0 | .86% | $ | 935 | 1 | .27% | 0 | .30% | 1 | .27% | 68 | .28% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .04%(g) | 281 | .51% | |||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2004 (i) | $ | 6 | .34 | – | (0 | .17) | (0 | .17) | – | – | – | $ | 6 | .17 | (2 | .68%) | $ | 973 | 0 | .80% | (0 | .06%) | 0 | .80%(g) | 286 | .06% | |||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | There were no fee reductions during the period. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (i) | For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 19
Nationwide Fund
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Fund (Class A at NAV) registered −8.20% versus −8.53% for its benchmark, the Standard & Poor’s 500® (S&P 500) Index. For broader comparison, the average return for the Fund’s Lipper peer category of Large-Cap Core Funds (consisting of 959 funds as of April 30, 2009) was −7.13% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Stock selection in the financials and industrials sectors contributed the most to Fund performance during the reporting period. The Fund’s holding in The Goldman Sachs Group, Inc. enhanced performance; the company’s strong capital base and balance sheet allowed the company to outperform versus its peers, despite the unprecedented disruptions that have occurred in the global financial markets. The Fund’s limited exposure to Bank of America Corp. also helped performance; the company continued to struggle with significant credit losses and capital adequacy issues in the wake of its Merrill Lynch acquisition. Offshore technology services provider and Fund-holding Cognizant Technology Solutions Corp. announced earnings results and guidance that exceeded consensus expectations, and benefited from improving investor sentiment toward technology companies. Automotive components supplier BorgWarner Inc. also added to Fund performance. BorgWarner’s shares were trading at what we thought was an attractive valuation on negative sentiment around the auto industry. As one of the highest-quality auto supply companies, BorgWarner saw its shares gain ground as investors began to look more favourably on government-induced industry restructuring trends and the improving macroeconomic environment.
What areas of investment detracted from Fund performance?
Fund performance was hampered by security selection in the materials sector, most notably the Fund’s holding in The Dow Chemical Co. Dow Chemical’s stock price fell sharply on concerns that the cyclical downturn would lead to reduced demand for its products and that its acquisition of Rohm and Haas Co. was poorly timed and overpriced. The two companies did complete the merger under revised terms, but we had since exited the position in the stock. Within the financials sector, the Fund’s exposure to Zions Bancorp also was a detractor. Zions Bancorp’s stock price declined amid continued negative investor sentiment for banks, asset-quality erosion on its balance sheet, and the increasing risk of further credit losses.
What is your outlook for the near term?
Our near-term outlook suggests a continued difficult environment for the economy, given rising unemployment and continuing deleveraging across the economy. Though recovery will take time, we are seeing signs of improvement as the cumulative effect of numerous government and Federal Reserve Board policy initiatives begin to take hold. Several encouraging developments have emerged recently. For example, the latest data on housing activity exceeded expectations, and new car sales were up. Consumers, who comprise two-thirds of the U.S. gross domestic product (GDP), have begun to save again; the savings rate rose from −1% to nearly 3% in the fourth quarter of 2008. The more recent equity market rally has been sharp and quick, but rather concentrated, although it does appear that panic has subsided within the global financial markets. The rate of economic deceleration appears to be moderating, which has led equity markets to begin discounting future growth. While we remain cautious in the near term, we continue to invest in companies we believe will survive and prosper across the business cycle.
Subadviser:
Aberdeen Asset Management Inc.
Aberdeen Asset Management Inc.
Portfolio Managers:
(Fundamental Sleeve)
Paul Atkinson, Francis Radano III, CFA and Shahreza Yusof
(Quantitive Sleeve)
Joseph A. Cerniglia, CFA and Jarrett Fisher, CFA
(Fundamental Sleeve)
Paul Atkinson, Francis Radano III, CFA and Shahreza Yusof
(Quantitive Sleeve)
Joseph A. Cerniglia, CFA and Jarrett Fisher, CFA
20 Semiannual Report 2009
| Fund Performance | Nationwide Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | -8.20% | -39.64% | -3.60% | -3.31% | |||||||||||||
| w/SC2 | -13.47% | -43.12% | -4.73% | -3.88% | ||||||||||||||
| Class B | w/o SC1 | -8.57% | -40.10% | -4.28% | -4.03% | |||||||||||||
| w/SC3 | -13.10% | -43.06% | -4.52% | -4.03% | ||||||||||||||
Class C4 | w/o SC1 | -8.44% | -40.00% | -4.26% | -3.83% | |||||||||||||
| w/SC5 | -9.35% | -40.60% | -4.26% | -3.83% | ||||||||||||||
| Class D | w/o SC1 | -8.10% | -39.52% | -3.38% | -3.09% | |||||||||||||
| w/SC6 | -12.26% | -42.25% | -4.26% | -3.54% | ||||||||||||||
Class R24,7,8 | -8.38% | -39.81% | -3.77% | 1.43% | ||||||||||||||
Institutional Class4,7 | -7.97% | -39.38% | -3.28% | -3.04% | ||||||||||||||
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 | 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), Class R2 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, Class R2 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 R2 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.04% | |||||
| Class B | 1.73% | |||||
| Class C | 1.73% | |||||
| Class D | 0.78% | |||||
| Class R2 | 1.43% | |||||
| Institutional Class | 0.73% | |||||
| * | Annualized data as of October 31, 2008. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 04/30/09. 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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 21
| Shareholder | Nationwide 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Fund | 11/01/2008 | 04/30/2009 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Class A | Actual | 1,000.00 | 917.96 | 5.59 | 1.18 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.96 | 5.90 | 1.18 | |||||||||||||||
| Class B | Actual | 1,000.00 | 914.25 | 8.91 | 1.88 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.49 | 9.42 | 1.88 | |||||||||||||||
| Class C | Actual | 1,000.00 | 915.57 | 8.91 | 1.88 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.49 | 9.42 | 1.88 | |||||||||||||||
| Class D | Actual | 1,000.00 | 919.04 | 4.43 | 0.93 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.18 | 4.67 | 0.93 | |||||||||||||||
Class R2c | Actual | 1,000.00 | 916.16 | 6.56 | 1.38 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.95 | 6.93 | 1.38 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 920.32 | 3.61 | 0.76 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.03 | 3.81 | 0.76 | |||||||||||||||
| 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 Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. | |
| c | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
22 Semiannual Report 2009
| Portfolio Summary | Nationwide Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 97 | .9% | ||
| Repurchase Agreements | 3 | .3% | ||
| Liabilities in excess of other assets | (1 | .2)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Oil, Gas & Consumable Fuels | 10 | .0% | ||
| Pharmaceuticals | 5 | .8% | ||
| Communications Equipment | 4 | .7% | ||
| Software | 4 | .7% | ||
| Aerospace & Defense | 4 | .1% | ||
| Computers & Peripherals | 4 | .1% | ||
| Specialty Retail | 3 | .9% | ||
| Food & Staples Retailing | 3 | .8% | ||
| Health Care Providers & Services | 3 | .3% | ||
| Capital Markets | 3 | .2% | ||
| Other Industries* | 52 | .4% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Exxon Mobil Corp. | 3 | .5% | ||
| Procter & Gamble Co. (The) | 2 | .7% | ||
| Microsoft Corp. | 2 | .5% | ||
| QUALCOMM, Inc. | 2 | .4% | ||
| Johnson & Johnson | 2 | .4% | ||
| JPMorgan Chase & Co. | 2 | .2% | ||
| United Technologies Corp. | 2 | .2% | ||
| Oracle Corp. | 2 | .2% | ||
| Philip Morris International, Inc. | 2 | .1% | ||
| Schlumberger Ltd. | 2 | .1% | ||
| Other Holdings* | 75 | .7% | ||
| 100 | .0% | |||
| * | For purposes of listing top holdings and top industries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 23
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Fund
| Common Stocks 97.9% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 4.1% | ||||||||
| Boeing Co. | 44,600 | $ | 1,786,230 | |||||
| Honeywell International, Inc. | 55,200 | 1,722,792 | ||||||
| ITT Corp. | 155,800 | 6,389,358 | ||||||
| Lockheed Martin Corp. | 20,000 | 1,570,600 | ||||||
| United Technologies Corp. | 268,900 | 13,133,076 | ||||||
| 24,602,056 | ||||||||
Air Freight & Logistics 0.2% | ||||||||
| FedEx Corp. | 24,600 | 1,376,616 | ||||||
Auto Components 0.9% | ||||||||
| BorgWarner, Inc. | 179,500 | 5,196,525 | ||||||
Beverages 2.1% | ||||||||
Coca-Cola Co. (The) | 62,400 | 2,686,320 | ||||||
| PepsiCo, Inc. | 197,300 | 9,817,648 | ||||||
| 12,503,968 | ||||||||
Biotechnology 1.9% | ||||||||
| Amgen, Inc.* | 39,500 | 1,914,565 | ||||||
| Gilead Sciences, Inc.* | 202,500 | 9,274,500 | ||||||
| 11,189,065 | ||||||||
Capital Markets 3.2% | ||||||||
| Franklin Resources, Inc. | 28,600 | 1,729,728 | ||||||
| Goldman Sachs Group, Inc. (The) | 65,710 | 8,443,735 | ||||||
| Morgan Stanley | 86,700 | 2,049,588 | ||||||
| State Street Corp. | 152,300 | 5,197,999 | ||||||
| T. Rowe Price Group, Inc. | 41,600 | 1,602,432 | ||||||
| 19,023,482 | ||||||||
Chemicals 1.1% | ||||||||
| E.I. Du Pont de Nemours & Co. | 70,200 | 1,958,580 | ||||||
| Monsanto Co. | 29,800 | 2,529,722 | ||||||
| Praxair, Inc. | 26,700 | 1,992,087 | ||||||
| 6,480,389 | ||||||||
Commercial Banks 2.5% | ||||||||
| Bank of Hawaii Corp. | 47,900 | 1,683,206 | ||||||
| Royal Bank of Canada | 164,100 | 5,818,466 | ||||||
| Wells Fargo & Co. | 375,000 | 7,503,750 | ||||||
| 15,005,422 | ||||||||
Communications Equipment 4.7% | ||||||||
| Cisco Systems, Inc.* | 610,136 | 11,787,828 | ||||||
| Corning, Inc. | 131,000 | 1,915,220 | ||||||
| QUALCOMM, Inc. | 343,400 | 14,532,688 | ||||||
| 28,235,736 | ||||||||
Computers & Peripherals 4.1% | ||||||||
| Apple, Inc.* | 31,400 | 3,951,062 | ||||||
| Dell, Inc.* | 168,700 | 1,960,294 | ||||||
| EMC Corp.* | 665,300 | 8,336,209 | ||||||
| Hewlett-Packard Co. | 115,000 | 4,137,700 | ||||||
| International Business Machines Corp. | 59,411 | 6,131,809 | ||||||
| 24,517,074 | ||||||||
Consumer Finance 0.5% | ||||||||
| Capital One Financial Corp. | 195,800 | 3,277,692 | ||||||
Distributors 0.2% | ||||||||
| Genuine Parts Co. | 43,600 | 1,480,656 | ||||||
Diversified Financial Services 2.7% | ||||||||
| Bank of America Corp. | 357,684 | 3,194,118 | ||||||
| JPMorgan Chase & Co. | 399,630 | 13,187,790 | ||||||
| 16,381,908 | ||||||||
Diversified Telecommunication Services 2.4% | ||||||||
| AT&T, Inc. | 180,100 | 4,614,162 | ||||||
| TELUS Corp. | 220,019 | 5,375,988 | ||||||
| Verizon Communications, Inc. | 136,100 | 4,129,274 | ||||||
| 14,119,424 | ||||||||
Electric Utilities 1.7% | ||||||||
| Edison International | 30,100 | 858,151 | ||||||
| Great Plains Energy, Inc. | 26,500 | 383,455 | ||||||
| Northeast Utilities | 72,060 | 1,514,701 | ||||||
| PPL Corp. | 257,100 | 7,689,861 | ||||||
| 10,446,168 | ||||||||
Electrical Equipment 1.2% | ||||||||
| Emerson Electric Co. | 214,900 | 7,315,196 | ||||||
Energy Equipment & Services 3.1% | ||||||||
| ENSCO International, Inc. | 148,400 | 4,196,752 | ||||||
| Halliburton Co. | 95,700 | 1,935,054 | ||||||
| Schlumberger Ltd. | 255,700 | 12,526,743 | ||||||
| 18,658,549 | ||||||||
Food & Staples Retailing 3.8% | ||||||||
| Costco Wholesale Corp. | 31,600 | 1,535,760 | ||||||
| CVS Caremark Corp. | 212,960 | 6,767,869 | ||||||
| Kroger Co. (The) | 49,800 | 1,076,676 | ||||||
| Safeway, Inc. | 69,600 | 1,374,600 | ||||||
| SYSCO Corp. | 297,600 | 6,943,008 | ||||||
| Wal-Mart Stores, Inc. | 95,200 | 4,798,080 | ||||||
| 22,495,993 | ||||||||
Food Products 1.7% | ||||||||
| Archer-Daniels-Midland Co. | 47,400 | 1,166,988 | ||||||
| Kraft Foods, Inc., Class A | 373,200 | 8,732,880 | ||||||
| 9,899,868 | ||||||||
24 Semiannual Report 2009
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Health Care Equipment & Supplies 1.3% | ||||||||
| Baxter International, Inc. | 43,900 | $ | 2,129,150 | |||||
| Medtronic, Inc. | 47,100 | 1,507,200 | ||||||
| St. Jude Medical, Inc.* | 116,216 | 3,895,560 | ||||||
| 7,531,910 | ||||||||
Health Care Providers & Services 3.3% | ||||||||
| Aetna, Inc. | 330,557 | 7,275,560 | ||||||
| Express Scripts, Inc.* | 31,300 | 2,002,261 | ||||||
| McKesson Corp. | 36,000 | 1,332,000 | ||||||
| Quest Diagnostics, Inc. | 152,400 | 7,822,692 | ||||||
| UnitedHealth Group, Inc. | 66,600 | 1,566,432 | ||||||
| 19,998,945 | ||||||||
Hotels, Restaurants & Leisure 0.8% | ||||||||
| McDonald’s Corp. | 35,600 | 1,897,124 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 95,100 | 1,983,786 | ||||||
| Yum! Brands, Inc. | 19,300 | 643,655 | ||||||
| 4,524,565 | ||||||||
Household Durables 1.9% | ||||||||
| Black & Decker Corp. | 54,500 | 2,196,350 | ||||||
| Stanley Works (The) | 104,200 | 3,962,726 | ||||||
| Toll Brothers, Inc.* | 258,400 | 5,235,184 | ||||||
| 11,394,260 | ||||||||
Household Products 2.8% | ||||||||
| Clorox Co. | 14,800 | 829,540 | ||||||
| Procter & Gamble Co. (The) | 320,010 | 15,821,294 | ||||||
| 16,650,834 | ||||||||
Independent Power Producers & Energy Traders 0.2% | ||||||||
| AES Corp. (The)* | 187,400 | 1,324,918 | ||||||
Industrial Conglomerates 2.6% | ||||||||
| 3M Co. | 178,200 | 10,264,320 | ||||||
| General Electric Co. | 402,950 | 5,097,318 | ||||||
| 15,361,638 | ||||||||
Information Technology Services 2.6% | ||||||||
| Alliance Data Systems Corp.* (a) | 175,500 | 7,348,185 | ||||||
| Cognizant Technology Solutions Corp., Class A* | 343,800 | 8,522,802 | ||||||
| 15,870,987 | ||||||||
Insurance 1.8% | ||||||||
| Aflac, Inc. | 129,700 | 3,747,033 | ||||||
| MetLife, Inc. | 229,375 | 6,823,906 | ||||||
| 10,570,939 | ||||||||
Internet Software & Services 0.5% | ||||||||
| Google, Inc., Class A* | 7,950 | 3,147,962 | ||||||
Leisure Equipment & Products 0.2% | ||||||||
| Mattel, Inc. | 100,200 | 1,498,992 | ||||||
Machinery 3.0% | ||||||||
| Caterpillar, Inc. | 49,300 | 1,754,094 | ||||||
| Cummins, Inc. | 63,200 | 2,148,800 | ||||||
| Deere & Co. | 151,567 | 6,253,654 | ||||||
| Eaton Corp. | 34,800 | 1,524,240 | ||||||
| PACCAR, Inc. | 175,100 | 6,205,544 | ||||||
| 17,886,332 | ||||||||
Media 1.9% | ||||||||
| Comcast Corp., Class A | 425,600 | 6,579,776 | ||||||
| Omnicom Group, Inc. | 63,500 | 1,998,345 | ||||||
| Walt Disney Co. (The) | 115,230 | 2,523,537 | ||||||
| 11,101,658 | ||||||||
Metals & Mining 0.3% | ||||||||
| Nucor Corp. | 38,000 | 1,546,220 | ||||||
Multi-Utility 0.5% | ||||||||
| CenterPoint Energy, Inc. | 123,200 | 1,310,848 | ||||||
| DTE Energy Co. | 35,400 | 1,046,778 | ||||||
| PG&E Corp. | 21,500 | 798,080 | ||||||
| 3,155,706 | ||||||||
Multiline Retail 0.3% | ||||||||
| J.C. Penney Co., Inc. | 64,700 | 1,985,643 | ||||||
Natural Gas Utility 0.1% | ||||||||
| Questar Corp. | 14,200 | 422,024 | ||||||
| UGI Corp. | 20,000 | 458,800 | ||||||
| 880,824 | ||||||||
Oil, Gas & Consumable Fuels 10.0% | ||||||||
| Apache Corp. | 169,600 | 12,357,056 | ||||||
| Chevron Corp. | 67,382 | 4,453,950 | ||||||
| ConocoPhillips | 49,086 | 2,012,526 | ||||||
| EOG Resources, Inc. | 124,600 | 7,909,608 | ||||||
| Exxon Mobil Corp. | 315,833 | 21,056,586 | ||||||
| Hess Corp. | 129,540 | 7,097,497 | ||||||
| Murphy Oil Corp. | 33,800 | 1,612,598 | ||||||
| Occidental Petroleum Corp. | 40,700 | 2,291,003 | ||||||
| Sunoco, Inc. | 39,900 | 1,057,749 | ||||||
| 59,848,573 | ||||||||
Pharmaceuticals 5.8% | ||||||||
| Abbott Laboratories | 51,600 | 2,159,460 | ||||||
| Bristol-Myers Squibb Co. | 107,500 | 2,064,000 | ||||||
| Johnson & Johnson | 276,510 | 14,478,064 | ||||||
| Merck & Co., Inc. | 98,900 | 2,397,336 | ||||||
| Pfizer, Inc. | 730,442 | 9,758,705 | ||||||
2009 Semiannual Report 25
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Pharmaceuticals (continued) | ||||||||
| Schering-Plough Corp. | 58,300 | $ | 1,342,066 | |||||
| Wyeth | 60,400 | 2,560,960 | ||||||
| 34,760,591 | ||||||||
Professional Services 0.6% | ||||||||
| FTI Consulting, Inc.* | 63,200 | 3,468,416 | ||||||
Real Estate Investment Trusts 0.6% | ||||||||
| Plum Creek Timber Co., Inc. | 68,400 | 2,361,168 | ||||||
| Rayonier, Inc. | 31,200 | 1,204,944 | ||||||
| 3,566,112 | ||||||||
Road & Rail 1.3% | ||||||||
| Canadian National Railway Co. | 153,100 | 6,188,302 | ||||||
| CSX Corp. | 48,700 | 1,441,033 | ||||||
| 7,629,335 | ||||||||
Semiconductors & Semiconductor Equipment 2.7% | ||||||||
| Intel Corp. | 665,215 | 10,497,093 | ||||||
| NVIDIA Corp.* | 309,100 | 3,548,468 | ||||||
| Texas Instruments, Inc. | 123,400 | 2,228,604 | ||||||
| 16,274,165 | ||||||||
Software 4.7% | ||||||||
| Microsoft Corp. | 748,300 | 15,160,558 | ||||||
| Oracle Corp. | 667,900 | 12,917,186 | ||||||
| 28,077,744 | ||||||||
Specialty Retail 3.9% | ||||||||
| Best Buy Co., Inc. | 44,000 | 1,688,720 | ||||||
| Lowe’s Cos., Inc. | 106,900 | 2,298,350 | ||||||
| Staples, Inc. | 302,325 | 6,233,941 | ||||||
| TJX Cos., Inc. | 270,900 | 7,577,073 | ||||||
| Urban Outfitters, Inc.* | 282,700 | 5,509,823 | ||||||
| 23,307,907 | ||||||||
Tobacco 2.1% | ||||||||
| Philip Morris International, Inc. | 347,900 | 12,593,980 | ||||||
Total Common Stocks (cost $629,592,644) | 586,164,943 | |||||||
| Repurchase Agreements 3.3% | ||||||||
| Principal Amount | Market Value | |||||||
| CS First Boston, 0.18%, dated 04/30/09, due 05/01/09, repurchase price $4,269,801, collateralized by U.S. Government Agency Mortgage 5.50%, maturing 04/01/39; total market value of $4,355,176 | $ | 4,269,780 | 4,269,780 | |||||
| Morgan Stanley, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $7,127,524, collateralized by U.S. Government Agency Mortgages ranging 5.00% — 7.50%, maturing 07/01/19 — 11/01/47; total market value of $7,270,044 (b) | 7,127,494 | 7,127,494 | ||||||
| UBS Securities, 0.15%, dated 04/30/09, due 05/01/09, repurchase price $8,064,381, collateralized by U.S. Government Agency Securities ranging from 0.00% — 6.25%, maturing 05/06/09 — 04/23/29; total market value of $8,225,634 | 8,064,333 | 8,064,333 | ||||||
Total Repurchase Agreements (cost $19,461,607) | 19,461,607 | |||||||
Total Investments (cost $649,054,251) (c) — 101.2% | 605,626,550 | |||||||
Liabilities in excess of other assets — (1.2)% | (7,182,163 | ) | ||||||
NET ASSETS — 100.0% | $ | 598,444,387 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a partial position of this security is on loan at April 30, 2009. The total value of securities on loan at April 30, 2009 was $6,957,434. | |
| (b) | The security was purchased with cash collateral held from securities on loan (See Note 2). The total value of this security as of April 30, 2009 was $7,127,494. | |
| (c) | See notes to financial statements for tax unrealized appreciation / (depreciation) of securities. |
| Ltd | Limited |
The accompanying notes are an integral part of these financial statements.
26 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide Fund | |||||
Assets: | |||||
| Investments, at value (cost $629,592,644)* | $ | 586,164,943 | |||
| Repurchase agreements, at value and cost | 19,461,607 | ||||
| Total Investments | 605,626,550 | ||||
| Interest and dividends receivable | 674,316 | ||||
| Receivable for capital shares issued | 76,221 | ||||
| Receivable for investments sold | 4,969,236 | ||||
| Prepaid expenses and other assets | 61,911 | ||||
| Total Assets | 611,408,234 | ||||
Liabilities: | |||||
| Payable for investments purchased | 4,692,218 | ||||
| Payable for capital shares redeemed | 366,256 | ||||
| Payable upon return of securities loaned (Note 2) | 7,127,494 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 282,104 | ||||
| Fund administration fees | 62,714 | ||||
| Distribution fees | 15,350 | ||||
| Administrative services fees | 203,431 | ||||
| Trustee fees | 5,082 | ||||
| Compliance program costs (Note 3) | 10,793 | ||||
| Custodian fees | 25,174 | ||||
| Printing fees | 133,585 | ||||
| Professional fees | 39,615 | ||||
| Other | 31 | ||||
| Total Liabilities | 12,963,847 | ||||
Net Assets | $ | 598,444,387 | |||
Represented by: | |||||
| Capital | $ | 1,103,992,862 | |||
| Accumulated undistributed net investment income | 567,833 | ||||
| Accumulated net realized losses from investment and foreign currency transactions | (462,690,918 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (43,427,701 | ) | |||
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 2,311 | ||||
Net Assets | $ | 598,444,387 | |||
Net Assets: | |||||
| Class A Shares | $ | 52,399,707 | |||
| Class B Shares | 5,581,517 | ||||
| Class C Shares | 464,087 | ||||
| Class D Shares | 539,992,372 | ||||
| Class R2 Shares (a) | 5,880 | ||||
| Institutional Class Shares | 824 | ||||
| Total | $ | 598,444,387 | |||
| * | Includes value of securities on loan of $6,957,434 (Note 2). |
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 27
Statement of Assets and Liabilities (Continued)
| Nationwide Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 5,410,349 | ||||
| Class B Shares | 603,973 | ||||
| Class C Shares | 50,291 | ||||
| Class D Shares | 56,537,174 | ||||
| Class R2 Shares (a) | 614 | ||||
| Institutional Class Shares | 86 | ||||
| Total | 62,602,487 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 9.69 | |||
| Class B Shares (b) | $ | 9.24 | |||
| Class C Shares (c) | $ | 9.23 | |||
| Class D Shares | $ | 9.55 | |||
| Class R2 Shares (a) | $ | 9.57 | (d) | ||
| Institutional Class Shares | $ | 9.58 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.28 | |||
| Class D Shares | $ | 10.00 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| Class D Shares | 4.50 | % | |||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| (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. | |
| (d) | The NAV reported above represents the traded NAV at April 30, 2009. |
The accompanying notes are an integral part of these financial statements.
28 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 4,327 | |||
| Dividend income | 8,383,824 | ||||
| Income from securities lending (Note 2) | 31,014 | ||||
| Foreign tax withholding | (46,763 | ) | |||
| Total Income | 8,372,402 | ||||
EXPENSES: | |||||
| Investment advisory fees | 1,727,477 | ||||
| Fund administration fees | 367,867 | ||||
| Distribution fees Class A | 63,860 | ||||
| Distribution fees Class B | 29,091 | ||||
| Distribution fees Class C | 2,234 | ||||
| Distribution fees Class R2 (a) | 13 | ||||
| Administrative services fees Class A | 12,463 | ||||
| Administrative services fees Class D | 118,046 | ||||
| Registration and filing fees | 39,564 | ||||
| Professional fees | 58,893 | ||||
| Printing fees | 116,630 | ||||
| Trustee fees | 23,167 | ||||
| Compliance program costs (Note 3) | 6,684 | ||||
| Custodian fees | 88,853 | ||||
| Other | 180,854 | ||||
| Total expenses before earnings credit | 2,835,696 | ||||
| Earnings credit (Note 5) | (22,819 | ) | |||
| Net Expenses | 2,812,877 | ||||
NET INVESTMENT INCOME | 5,559,525 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (196,094,814 | ) | |||
| Net realized losses from foreign currency transactions | (46,432 | ) | |||
| Net realized losses from investments and foreign currency transactions | (196,141,246 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 130,206,798 | ||||
| Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 2,311 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 130,209,109 | ||||
| Net realized/unrealized losses from investments and foreign currency transactions | (65,932,137 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (60,372,612 | ) | ||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 29
Statements of Changes in Net Assets
| Nationwide Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 5,559,525 | $ | 14,228,720 | ||||||
| Net realized losses from investment and foreign currency transactions | (196,141,246 | ) | (250,578,165 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | 130,209,109 | (255,356,694 | ) | |||||||
| Change in net assets resulting from operations | (60,372,612 | ) | (491,706,139 | ) | ||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (661,353 | ) | (850,752 | ) | ||||||
| Class B | (56,983 | ) | (25,191 | ) | ||||||
| Class C | (4,617 | ) | (1,249 | ) | ||||||
| Class D | (7,780,016 | ) | (10,468,230 | ) | ||||||
| Class R2 (a) | (64 | ) | (59 | ) | ||||||
| Institutional Class | (11 | ) | (15 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (18,804,898 | ) | |||||||
| Class B | – | (2,650,192 | ) | |||||||
| Class C | – | (131,964 | ) | |||||||
| Class D | – | (180,715,061 | ) | |||||||
| Class R2 (a) | – | (3,453 | ) | |||||||
| Institutional Class | – | (231 | ) | |||||||
| Change in net assets from shareholder distributions | (8,503,044 | ) | (213,651,295 | ) | ||||||
| Change in net assets from capital transactions | (34,476,128 | ) | 95,420,536 | |||||||
| Change in net assets | (103,351,784 | ) | (609,936,898 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 701,796,171 | 1,311,733,069 | ||||||||
| End of period | $ | 598,444,387 | $ | 701,796,171 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 567,833 | $ | 3,511,352 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 2,257,253 | $ | 7,010,979 | ||||||
| Dividends reinvested | 643,497 | 17,083,583 | ||||||||
| Cost of shares redeemed (b) | (6,537,994 | ) | (21,957,162 | ) | ||||||
| Total Class A | (3,637,244 | ) | 2,137,400 | |||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 294,761 | 1,160,482 | ||||||||
| Dividends reinvested | 56,568 | 2,647,950 | ||||||||
| Cost of shares redeemed (b) | (1,354,774 | ) | (5,208,296 | ) | ||||||
| Total Class B | (1,003,445 | ) | (1,399,864 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
30 Semiannual Report 2009
| Nationwide Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 112,539 | $ | 142,838 | ||||||
| Dividends reinvested | 2,075 | 68,668 | ||||||||
| Cost of shares redeemed | (47,111 | ) | (138,977 | ) | ||||||
| Total Class C | 67,503 | 72,529 | ||||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | 15,579,005 | 46,862,714 | ||||||||
| Dividends reinvested | 7,396,327 | 182,248,043 | ||||||||
| Cost of shares redeemed (b) | (52,879,259 | ) | (134,492,011 | ) | ||||||
| Total Class D | (29,903,927 | ) | 94,618,746 | |||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 910 | 9,748 | ||||||||
| Dividends reinvested | 64 | 270 | ||||||||
| Cost of shares redeemed | – | (18,538 | ) | |||||||
| Total Class R2 | 974 | (8,520 | ) | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 11 | 245 | ||||||||
| Cost of shares redeemed (b) | – | – | ||||||||
| Total Institutional Class | 11 | 245 | ||||||||
| Change in net assets from capital transactions: | $ | (34,476,128 | ) | $ | 95,420,536 | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 245,313 | 444,486 | ||||||||
| Reinvested | 68,510 | 987,920 | ||||||||
| Redeemed | (710,802 | ) | (1,446,262 | ) | ||||||
| Total Class A Shares | (396,979 | ) | (13,856 | ) | ||||||
Class B Shares | ||||||||||
| Issued | 33,676 | 74,662 | ||||||||
| Reinvested | 6,221 | 159,723 | ||||||||
| Redeemed | (155,254 | ) | (346,246 | ) | ||||||
| Total Class B Shares | (115,357 | ) | (111,861 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 11,836 | 8,778 | ||||||||
| Reinvested | 229 | 4,150 | ||||||||
| Redeemed | (5,187 | ) | (9,287 | ) | ||||||
| Total Class C Shares | 6,878 | 3,641 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (b) | Includes redemption fees — see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 31
Statements of Changes in Net Assets (Continued)
| Nationwide Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class D Shares | ||||||||||
| Issued | 1,735,333 | 2,800,775 | ||||||||
| Reinvested | 801,098 | 10,698,113 | ||||||||
| Redeemed | (5,938,548 | ) | (8,816,267 | ) | ||||||
| Total Class D Shares | (3,402,117 | ) | 4,682,621 | |||||||
Class R2 Shares (a) | ||||||||||
| Issued | 93 | 616 | ||||||||
| Reinvested | 7 | 16 | ||||||||
| Redeemed | – | (1,174 | ) | |||||||
| Total Class R2 Shares | 100 | (542 | ) | |||||||
Institutional Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 1 | 14 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Class Shares | 1 | 14 | ||||||||
| Total change in shares: | (3,907,474 | ) | 4,560,017 | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
32 Semiannual Report 2009
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Investment | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Income | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | fees | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 10 | .69 | 0 | .08 | (0 | .96) | (0 | .88) | (0 | .12) | – | (0 | .12) | – | $ | 9 | .69 | (8 | .20%) | $ | 52,399,707 | 1 | .18% | 1 | .67% | 1 | .18% | 112 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .14% (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% | 1 | .10% (g) | 144 | .61% | ||||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 10 | .20 | 0 | .04 | (0 | .92) | (0 | .88) | (0 | .08) | – | (0 | .08) | – | $ | 9 | .24 | (8 | .57%) | $ | 5,581,517 | 1 | .88% | 1 | .00% | 1 | .88% | 112 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .79% (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%) | 1 | .76% (g) | 144 | .61% | ||||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 10 | .18 | 0 | .04 | (0 | .90) | (0 | .86) | (0 | .09) | – | (0 | .09) | – | $ | 9 | .23 | (8 | .44%) | $ | 464,087 | 1 | .88% | 0 | .91% | 1 | .88% | 112 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .79% (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%) | 1 | .76% (g) | 144 | .61% | ||||||||||||||||||||||||||||||||||||||||||||||
| Amounts designated as “–“ are zero or have been rounded to zero. (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 outstanding during the period. (g) There were no fee reductions during the period. (h) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. (i) For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 33
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Investment | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Income | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | fees | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 10 | .54 | 0 | .09 | (0 | .95) | (0 | .86) | (0 | .13) | – | (0 | .13) | – | $ | 9 | .55 | (8 | .10%) | $ | 539,992,372 | 0 | .93% | 1 | .92% | 0 | .93% | 112 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .85% (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% | 0 | .82% (g) | 144 | .61% | ||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (h) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited)(f) | $ | 10 | .57 | 0 | .06 | (0 | .95) | (0 | .89) | (0 | .11) | – | (0 | .11) | – | $ | 9 | .57 | (8 | .38%) | $ | 5,880 | 1 | .38% | 1 | .40% | 1 | .38% | 112 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .96% (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% | 1 | .27% (g) | 144 | .61% | ||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended April 30, 2009 (Unaudited)(f) | $ | 10 | .56 | 0 | .09 | (0 | .94) | (0 | .85) | (0 | .13) | – | (0 | .13) | – | $ | 9 | .58 | (7 | .97%) | $ | 824 | 0 | .76% | 2 | .06% | 0 | .76% | 112 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .81% (g) | 145 | .66% | |||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2004 (i) | $ | 19 | .00 | 0 | .03 | (0 | .17) | (0 | .14) | (0 | .03) | – | (0 | .03) | – | $ | 18 | .83 | (0 | .74%) | $ | 341,271 | 0 | .78% | 0 | .54% | 0 | .78% (g) | 144 | .61% | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–“ are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | There were no fee reductions during the period. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (i) | For the period from June 29, 2004 (commencement of operations) through October 31, 2004. |
The accompanying notes are an integral part of these financial statements.
34 Semiannual Report 2009
Nationwide Money Market Fund
Nationwide Asset Management, LLC resigned from this area of asset management, effective April 1, 2009. As a result, Nationwide Funds hired Federated Investment Management Co. (Federated) as subadviser for the Nationwide Money Market Fund, effective April 2, 2009. Therefore, there are two commentaries for this Fund covering the semiannual period ended April 30, 2009, reflecting the views of the two subadvisers for the stated periods.
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period from November 1, 2008, through April 30, 2009, the Nationwide Money Market Fund (Prime Shares) returned 0.19% versus 0.69% for its benchmark, the iMoneyNet First Tier Retail Index. For broader comparison, the average return for the Fund’s Lipper peer category of Money Market Funds (consisting of 321 funds as of April 30, 2009) was 0.30% for the same time period.
Commentary from Nationwide Asset Management, LLC (NWAM) for the period November 1, 2008, through April 1, 2009
How did the Fund perform during the period covered in NWAM’s commentary?
For the period from November 1, 2008, through April 1, 2009, the Nationwide Money Market Fund (Prime Shares) returned 0.19% versus 0.62% for its benchmark, the iMoneyNet First Tier Retail Index.
What areas of investment provided the most positive relative returns for the Fund?
Floating-rate securities and callable securities posted higher returns than other areas of investment during the reporting period. The rate for floating-rate securities is based on either LIBOR (London Interbank Offered Rate) or the federal funds rate. The rate for callable securities is locked in for a specified time and then can be called (paid back) at set intervals. Agency callable bonds were particularly attractive due to their return combined with the government’s backing.
What areas of investment detracted from Fund performance?
Lower-yielding securities included those that were bought with a shorter weighted average maturity. The return for those securities is closely correlated to the federal funds rate, which was set at a range of 0.00% to 0.25% as of the end of the reporting period.
Subadviser: Nationwide Asset Management, LLC
Commentary from Federated Investment Management Co. (Federated) from April 2, 2009, through April 30, 2009
How did the Fund perform during the reporting period covered in Federated’s commentary?
For the period from April 2, 2009, through April 30, 2009, the Nationwide Money Market Fund (Prime Shares) returned 0.00% versus 0.07% for its benchmark, the iMoneyNet First Tier Retail Index.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s bank commercial paper holdings provided the most positive returns for the Fund during the reporting period. Bank commercial paper produced the highest yields during the period, and asset-backed commercial paper benefited from various Federal Reserve Board support initiatives. Returns along the three- to six-month portion of the yield curve (a plotted graph line of the yields [or interest rates] on long-term and short-term maturity bonds) were the most attractive.
What areas of investment detracted from Fund performance?
The Fund’s holdings in repurchase agreements detracted the most from Fund performance during the reporting period. Overnight repo rates mirrored federal funds activity, in some instances dipping below 20 basis points.
What is your outlook for the near term?
We believe that the U.S. economy could emerge from recession somewhat earlier than had been previously believed. To be sure, the current economic data is not good, but has seen some recent improvement. Scattered indications suggest that the deepest part of the recession has passed. In our view, however, the onset of a new monetary tightening cycle is not yet in sight, and we believe that cash yields will remain well below historical norms throughout the near future. We will remain vigilant in monitoring changes to the still-fluid credit environment and are prepared to move quickly in an effort to protect principal and capitalize on opportunities.
2009 Semiannual Report 35
Subadviser: Federated Investment Management Co.
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 fund.
The Treasury Department has extended the U.S. Department of the Treasury’s Temporary Guarantee Program (the “Program”) for Money Market Funds until September 18, 2009. The Board of Trustees of Nationwide Mutual Funds approved the continued participation of the Nationwide Money Market Fund in the Program on April 8, 2009.
Here are some reminders about the Program:
| • | Only shareholders who held shares in the Nationwide Money Market Fund on September 19, 2008, are eligible for protection under the Program. |
| • | The Program currently in place provides a guarantee to these shareholders based on the number of shares invested in the Funds at the close of business on September 19, 2008. |
| • | Any increase in the number of shares an eligible shareholder holds after the close of business on September 19, 2008, will not be guaranteed by the Program. |
| �� | 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 is not part of the U.S. Treasury Department’s Troubled Asset Relief |
Program (TARP). The Program is intended to provide relief for investors in the event the per-share value of any of the money market funds falls below $0.995 and a fund liquidates its holdings. The Program will provide coverage to a fund’s shareholders of record at the close of business on September 19, 2008, up to $1.00 per share for the lesser of either the number of shares the investor held in that fund or the number of shares the investor held the date the per-share value fell below $0.995. This is commonly referred to as “breaking the buck.”
| • | The U.S. Treasury Department, through the Exchange Stabilization Fund (“ESF”), is providing this guarantee. In the event that a participating fund breaks the buck and liquidates, a guarantee payment should be made to investors through their fund within approximately 30 days, subject to possible extensions at the discretion of the Treasury. Payments to investors under the Program will depend on the availability of assets in the ESF, which currently totals approximately $50 billion. The U.S. Department of the Treasury and the Secretary of the Treasury have the authority to use assets from the ESF for purposes other than those of the Program. |
| • | Participation in each period of the Program requires a payment to the U.S. Department of the Treasury in the amount of 0.015% based on the net asset value of the Fund as of September 19, 2008. Each participating fund individually bears this expense without regard to any expense limitation currently in effect for the participating fund. |
2009 Semiannual Report 36
| Fund Performance | Nationwide Money Market Fund |
Average Annual Total Return
For periods ended April 30, 2009
For periods ended April 30, 2009
| Six | ||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||
Institutional Class1 | 0.20% | 1.15% | 3.03% | 2.97% | ||||||||||||
Service Class1 | 0.15% | 1.06% | 2.84% | 2.80% | ||||||||||||
| Prime | 0.19% | 1.13% | 2.97% | 2.92% | ||||||||||||
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.
| * | Not annualized | |
| 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. |
Expense Ratios
| Gross | Net | |||||||
| Expense | Expense | |||||||
| Ratio* | Ratio* | |||||||
| Institutional Class | 0.64% | 0.64% | ||||||
| Service Class | 0.83% | 0.75% | ||||||
| Prime | 0.55% | 0.55% | ||||||
| * | Annualized data as of October 31, 2008. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2010. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Index(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 04/30/09. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees or expenses. Investors cannot invest directly in market indexes.
| (a) | The iMoneyNet-First Tier Retail Index 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) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
37 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Money Market Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a | 11/01/08 - 04/30/09 a | ||||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,002.05 | 2.97 | 0.60 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.82 | 3.01 | 0.60 | |||||||||||||||
| Service Class | Actual | 1,000.00 | 1,001.55 | 3.47 | 0.70 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.33 | 3.51 | 0.70 | |||||||||||||||
| Prime | Actual | 1,000.00 | 1,001.95 | 3.07 | 0.62 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.73 | 3.11 | 0.62 | |||||||||||||||
| 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 Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
2009 Semiannual Report 38
| Portfolio Summary | Nationwide Money Market Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Commercial Paper | 74 | .9% | ||
| Money Market Funds | 8 | .6% | ||
| Government Mortgage Backed Agencies | 7 | .5% | ||
| Certificates of Deposit | 7 | .2% | ||
| U.S. Government Sponsored & Agency Obligations | 1 | .8% | ||
| Corporate Bonds | 1 | .1% | ||
| Liabilities in excess of other assets | (1 | .1)% | ||
| 100 | .0% | |||
| Top Industries | ||||
| Diversified Financial Services | 51 | .9% | ||
| Banks-Foreign | 13 | .6% | ||
| Food-Diversified | 3 | .1% | ||
| Beverages | 2 | .9% | ||
| Computers & Peripherals | 2 | .5% | ||
| Oil & Gas | 2 | .4% | ||
| Transportation | 2 | .0% | ||
| Sovereign | 1 | .2% | ||
| Miscellaneous Manufacturing | 1 | .1% | ||
| Industrial Machinery & Equipment | 1 | .1% | ||
| Other Industries | 18 | .2% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Landesbank Baden-Wuerttemberg, 1.15%, 07/14/09 | 4 | .9% | ||
| Grampian Funding LLC, 0.50%, 05/01/09 | 4 | .7% | ||
| Blackrock Liquidity Funds Tempfund Portfolio | 4 | .3% | ||
| Blackrock Liquidity Funds Tempcash Portfolio | 4 | .3% | ||
| Fairway Finance Co. LLC, 0.35%, 05/08/09 | 3 | .9% | ||
| General Electric Capital Corp., 0.55%, 06/26/09 | 3 | .9% | ||
| Clipper Receivables Co. LLC, 1.30%, 07/10/09 | 3 | .9% | ||
| Alpine Securitization Corp., 0.60%, 07/06/09 | 2 | .9% | ||
| Salisbury Receivables Co., 0.35%, 05/12/09 | 2 | .7% | ||
| Sheffield Receivables Corp., 0.33%, 06/01/09 | 2 | .1% | ||
| Other Holdings | 62 | .4% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
39 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Money Market Fund
| Certificates of Deposit 7.2% | ||||||||
| Principal Amount | Market Value | |||||||
Banks — Foreign 7.2% | ||||||||
| Banco Bilbao Vizcaya | ||||||||
| 0.97%, 07/06/09 | $ | 50,000,000 | $ | 50,000,457 | ||||
| 1.06%, 11/02/09 | 25,000,000 | 25,001,278 | ||||||
| Bank of Tokyo — Mitsubishi | ||||||||
| 1.05%, 07/15/09 | 40,000,000 | 40,000,000 | ||||||
| 0.95%, 07/20/09 | 25,000,000 | 25,000,000 | ||||||
| Barclays Bank PLC, 1.12%, 07/14/09 | 45,000,000 | 45,000,000 | ||||||
Total Certificates of Deposit (cost $185,001,735) | 185,001,735 | |||||||
| Commercial Paper 74.9% (a) | ||||||||
Banks — Foreign 6.3% | ||||||||
| BNP Paribas Finance, Inc. | ||||||||
| 0.66%, 05/11/09 | 20,000,000 | 19,996,333 | ||||||
| 0.86%, 06/16/09 | 11,500,000 | 11,487,363 | ||||||
| DnB NOR Bank ASA, 0.82%, 05/26/09 (b) | 5,000,000 | 4,997,153 | ||||||
| Landesbank Baden-Wuerttemberg, 1.15%, 07/14/09 | 125,000,000 | 124,704,514 | ||||||
| 161,185,363 | ||||||||
Beverages 2.9% (b) | ||||||||
| Brown-Forman Corp., 0.31%, 06/02/09 | 18,181,000 | 18,175,990 | ||||||
Coca-Cola Co. (The) | ||||||||
| 0.35%, 05/04/09 | 10,000,000 | 9,999,708 | ||||||
| 0.40%, 05/05/09 | 20,000,000 | 19,999,111 | ||||||
| 0.20%, 05/19/09 | 15,000,000 | 14,998,500 | ||||||
| 0.23%, 06/22/09 | 10,000,000 | 9,996,678 | ||||||
| 73,169,987 | ||||||||
Computers & Peripherals 2.5% (b) | ||||||||
| Hewlett-Packard Co., 0.40%, 06/04/09 | 15,000,000 | 14,993,861 | ||||||
| International Business Machines Corp. | ||||||||
| 0.20%, 06/08/09 | 25,000,000 | 24,994,722 | ||||||
| 0.28%, 06/15/09 | 25,000,000 | 24,991,250 | ||||||
| 64,979,833 | ||||||||
Diversified Financial Services 51.0% | ||||||||
| Alpine Securitization Corp. | ||||||||
| 0.40%, 05/14/09 | 40,000,000 | 39,994,222 | ||||||
| 0.60%, 07/06/09 | 75,000,000 | 74,917,500 | ||||||
| Caterpillar Financial Services Corp. | ||||||||
| 0.33%, 05/11/09 | 30,000,000 | 29,997,250 | ||||||
| 0.46%, 06/01/09 | 4,400,000 | 4,398,257 | ||||||
| Chariot Funding LLC, 0.30%, 05/26/09 | 25,000,000 | 24,994,792 | ||||||
| Clipper Receivables Co. LLC, 1.30%, 07/10/09 | 100,000,000 | 99,747,222 | ||||||
| Danske Corp. | ||||||||
| 0.74%, 05/01/09 | 10,000,000 | 10,000,000 | ||||||
| 0.99%, 05/19/09 | 8,000,000 | 7,996,040 | ||||||
| 0.62%, 05/28/09 | 10,150,000 | 10,145,280 | ||||||
| 0.60%, 06/01/09 | 5,000,000 | 4,997,417 | ||||||
| 0.85%, 06/19/09 | 10,000,000 | 9,988,431 | ||||||
| Edison Asset Securitization LLC | ||||||||
| 0.40%, 06/15/09 | 45,343,000 | 45,320,328 | ||||||
| 0.55%, 07/15/09 | 50,000,000 | 49,942,708 | ||||||
| Enterprise Funding Group LLC | ||||||||
| 0.42%, 06/08/09 | 25,000,000 | 24,988,917 | ||||||
| 0.45%, 07/07/09 | 45,000,000 | 44,962,312 | ||||||
| Fairway Finance Co. LLC | ||||||||
| 0.35%, 05/08/09 | 100,000,000 | 99,993,194 | ||||||
| 0.32%, 05/14/09 | 25,000,000 | 24,997,111 | ||||||
| Falcon Asset Securitization Corp. | ||||||||
| 0.40%, 07/23/09 | 43,300,000 | 43,260,068 | ||||||
| 0.40%, 07/27/09 | 50,000,000 | 49,951,667 | ||||||
| FCAR Owners Trust 1, Series I, 1.75%, 06/15/09 | 25,000,000 | 24,945,312 | ||||||
| General Electric Capital Corp. | ||||||||
| 0.40%, 06/22/09 | 25,000,000 | 24,985,556 | ||||||
| 0.55%, 06/26/09 | 100,000,000 | 99,914,444 | ||||||
| 0.53%, 07/20/09 | 25,000,000 | 24,970,556 | ||||||
| Grampian Funding LLC, | ||||||||
| 0.50%, 05/01/09 | 121,230,000 | 121,230,000 | ||||||
| ING US Funding LLC | ||||||||
| 0.45%, 05/15/09 | 2,000,000 | 1,999,650 | ||||||
| 0.64%, 06/01/09 | 12,000,000 | 11,993,387 | ||||||
| John Deere Bank SA, | ||||||||
| 0.45%, 05/11/09 | 5,500,000 | 5,499,313 | ||||||
| National Rural Utilities Cooperative Finance Corp. | ||||||||
| 0.48%, 05/26/09 | 12,500,000 | 12,495,833 | ||||||
| 0.25%, 06/01/09 | 10,000,000 | 9,997,847 | ||||||
| Rabobank USA Financial Corp. | ||||||||
| 0.68%, 05/04/09 | 12,500,000 | 12,499,292 | ||||||
| 0.36%, 06/02/09 | 12,000,000 | 11,996,160 | ||||||
| Salisbury Receivables Co. | ||||||||
| 0.35%, 05/12/09 | 70,000,000 | 69,992,514 | ||||||
| 0.35%, 06/01/09 | 25,000,000 | 24,992,465 | ||||||
| 0.47%, 07/01/09 | 33,000,000 | 32,973,719 | ||||||
| Sheffield Receivables Corp. | ||||||||
| 0.32%, 05/15/09 | 26,000,000 | 25,996,764 | ||||||
| 0.33%, 06/01/09 | 55,000,000 | 54,984,371 | ||||||
| 0.50%, 07/06/09 | 20,000,000 | 19,981,667 | ||||||
| Toyota Motor Credit Corp., 0.24%, 05/01/09 | 12,000,000 | 12,000,000 | ||||||
| 1,304,041,566 | ||||||||
2009 Semiannual Report 40
Statement of Investments (Continued)
April 30, 2009 (Unaudited)
Nationwide Money Market Fund (Continued)
Commercial Paper (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Food-Diversified 3.1% | ||||||||
| Campbell Soup Co., 0.28%, 05/04/09 (b) | $ | 12,500,000 | $ | 12,499,709 | ||||
| Nestle Capital Corp. | ||||||||
| 0.29%, 06/05/09 (b) | 25,000,000 | 24,992,952 | ||||||
| 0.21%, 06/22/09 | 20,000,000 | 19,993,933 | ||||||
| 0.51%, 08/24/09 | 10,000,000 | 9,983,708 | ||||||
| 0.70%, 10/09/09 (b) | 12,500,000 | 12,460,868 | ||||||
| 79,931,170 | ||||||||
Industrial Machinery & Equipment 1.1% (b) | ||||||||
| Emerson Electric Co. | ||||||||
| 0.34%, 05/11/09 | 15,000,000 | 14,998,584 | ||||||
| 0.32%, 05/20/09 | 13,167,000 | 13,164,776 | ||||||
| 28,163,360 | ||||||||
Machinery-Diversified 0.4% (b) | ||||||||
| Deere & Co., 0.35%, 06/24/09 | 9,569,000 | 9,563,976 | ||||||
Miscellaneous Manufacturing 1.2% (b) | ||||||||
| Illinois Tool Works, Inc. | ||||||||
| 0.40%, 05/04/09 | 16,000,000 | 15,999,467 | ||||||
| 0.43%, 05/08/09 | 7,321,000 | 7,320,388 | ||||||
| Parker Hannifin Corp., 0.45%, 05/04/09 | 6,000,000 | 5,999,775 | ||||||
| 29,319,630 | ||||||||
Oil & Gas 2.5% (b) | ||||||||
| BP Capital Markets PLC | ||||||||
| 0.23%, 05/01/09 | 12,549,000 | 12,549,000 | ||||||
| 0.41%, 06/09/09 | 8,000,000 | 7,996,447 | ||||||
| 0.43%, 07/07/09 | 5,000,000 | 4,995,999 | ||||||
| 0.45%, 07/09/09 | 5,000,000 | 4,995,687 | ||||||
| ConocoPhillips Qatar Funding Ltd. | ||||||||
| 0.65%, 05/05/09 | 12,000,000 | 11,999,133 | ||||||
| 0.65%, 05/14/09 | 20,000,000 | 19,995,306 | ||||||
| 62,531,572 | ||||||||
Pharmaceutical Preparations 0.2% (b) | ||||||||
| Pfizer, Inc., 0.18%, 05/06/09 | 6,000,000 | 5,999,850 | ||||||
Sovereign 1.2% | ||||||||
| Province of British Columbia Canada | ||||||||
| 0.55%, 07/13/09 | 3,067,000 | 3,063,579 | ||||||
| 0.61%, 08/24/09 | 28,000,000 | 27,945,439 | ||||||
| 31,009,018 | ||||||||
Telecommunications 0.5% (b) | ||||||||
| Nokia OYJ | ||||||||
| 0.70%, 05/18/09 | 5,000,000 | 4,998,347 | ||||||
| 1.00%, 06/02/09 | 8,000,000 | 7,992,889 | ||||||
| 12,991,236 | ||||||||
Transportation 2.0% (b) | ||||||||
| United Parcel Service, Inc. | ||||||||
| 0.30%, 05/01/09 | 25,000,000 | 25,000,000 | ||||||
| 0.25%, 05/05/09 | 15,000,000 | 14,999,583 | ||||||
| 0.27%, 06/01/09 | 10,000,000 | 9,997,675 | ||||||
| 49,997,258 | ||||||||
Total Commercial Paper (cost $1,912,883,819) | 1,912,883,819 | |||||||
| Corporate Bonds 1.1% (c) | ||||||||
Diversified Financial Services 0.9% | ||||||||
| American Honda Finance Corp., 1.40%, 08/26/09 (b) | 15,000,000 | 15,000,000 | ||||||
| General Electric Capital Corp., 1.30%, 05/10/10 | 7,044,000 | 6,837,758 | ||||||
| 21,837,758 | ||||||||
Household Products 0.2% | ||||||||
| Procter & Gamble International Funding SCA, 1.49%, 02/08/10 | 6,000,000 | 6,000,000 | ||||||
Total Corporate Bonds (cost $27,837,758) | 27,837,758 | |||||||
| Government Mortgage Backed Agencies 7.5% | ||||||||
| Federal Farm Credit Bank (c) | ||||||||
| 1.15%, 06/02/09 | 20,000,000 | 20,000,000 | ||||||
| Series 1, 1.10%, 11/20/09 | 15,000,000 | 15,000,000 | ||||||
| Federal Home Loan Banks | ||||||||
| 0.10%, 05/01/09 (a) | 10,000,000 | 10,000,000 | ||||||
| 0.18%, 05/08/09 (a) | 15,000,000 | 14,999,475 | ||||||
| 0.30%, 08/19/09 (a) | 5,000,000 | 4,995,417 | ||||||
| 1.38%, 11/05/09 (c) | 20,000,000 | 20,000,000 | ||||||
| Federal Home Loan Mortgage Corp. | ||||||||
| 1.75%, 05/11/09 (a) | 5,000,000 | 4,997,569 | ||||||
| 0.24%, 06/22/09 (a) | 12,460,000 | 12,455,681 | ||||||
| 4.13%, 11/30/09 | 20,000,000 | 20,366,432 | ||||||
| 1.25%, 12/23/09 | 20,000,000 | 20,000,000 | ||||||
| Federal National Mortgage Assoc. (a) | ||||||||
| 0.25%, 05/04/09 | 22,000,000 | 21,999,542 | ||||||
41 Semiannual Report 2009
Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| 1.65%, 05/13/09 | $ | 5,000,000 | $ | 4,997,250 | ||||
| 0.42%, 05/20/09 | 1,000,000 | 999,778 | ||||||
| 0.22%, 06/17/09 | 19,800,000 | 19,794,313 | ||||||
Total Government Mortgage Backed Agencies (cost $190,605,457) | 190,605,457 | |||||||
| U.S. Government Sponsored & Agency Obligations 1.8% | ||||||||
| Federal Home Loan Banks, Series 1, 1.05%, 02/23/10 | 20,000,000 | 19,983,407 | ||||||
| Federal Home Loan Mortgage Corp., 1.25%, 03/09/10, MTN | 26,000,000 | 26,000,000 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $45,983,407) | 45,983,407 | |||||||
| Mutual Funds 8.6% (c) | ||||||||
Money Market Funds 8.6% | ||||||||
| Blackrock Liquidity Funds Tempcash Portfolio, 0.76% | 110,000,000 | 110,000,000 | ||||||
| Blackrock Liquidity Funds Tempfund Portfolio, 0.63% | 110,613,000 | 110,613,000 | ||||||
Total Mutual Funds (cost $220,613,000) | 220,613,000 | |||||||
Total Investments (cost $2,582,925,176) (d) — 101.1% | 2,582,925,176 | |||||||
Liabilities in excess of other assets — (1.1)% | (28,196,112 | ) | ||||||
NET ASSETS — 100.0% | $ | 2,554,729,064 | ||||||
| (a) | The rate reflected in the Statement of Investments is the discount rate at the time of purchase. | |
| (b) | Rule 144A, Section 4(2), or other security which is restricted as to resale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at April 30, 2009 was $406,667,384 which represents 15.92% of net assets. | |
| (c) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2009. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| ASA | Stock Corporation | |
| LLC | Limited Liability Co. | |
| Ltd | Limited | |
| MTN | Medium Term Note | |
| OYJ | Public Traded Company | |
| PLC | Public Limited Co. | |
| SA | Stock Company | |
| SCA | Limited partnership with share capital |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 42
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide Money | |||||
| Market Fund | |||||
Assets: | |||||
| Investments, at value (cost $2,582,925,176) | $ | 2,582,925,176 | |||
| Cash | 1,409,735 | ||||
| Interest and dividends receivable | 972,190 | ||||
| Receivable for capital shares issued | 1,887,932 | ||||
| Prepaid expenses and other assets | 454,953 | ||||
| Total Assets | 2,587,649,986 | ||||
Liabilities: | |||||
| Payable for investments purchased | 25,001,278 | ||||
| Distributions payable | 14,241 | ||||
| Payable for capital shares redeemed | 6,620,727 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 750,751 | ||||
| Fund administration fees | 232,543 | ||||
| Trustee fees | 11,824 | ||||
| Compliance program costs (Note 3) | 33,652 | ||||
| Custodian fees | 33,889 | ||||
| Professional fees | 126,896 | ||||
| Other | 95,121 | ||||
| Total Liabilities | 32,920,922 | ||||
Net Assets | $ | 2,554,729,064 | |||
Represented by: | |||||
| Capital | $ | 2,556,370,757 | |||
| Accumulated undistributed net investment income | 477 | ||||
| Accumulated net realized losses from investment transactions | (1,642,170 | ) | |||
Net Assets | $ | 2,554,729,064 | |||
Net Assets: | |||||
| Institutional Class Shares | $ | 1,881,208,987 | |||
| Service Class Shares | 11,342,232 | ||||
| Prime Shares | 662,177,845 | ||||
| Total | $ | 2,554,729,064 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Institutional Class Shares | 1,882,457,625 | ||||
| Service Class Shares | 11,348,918 | ||||
| Prime Shares | 662,832,204 | ||||
| Total | 2,556,638,747 | ||||
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.
43 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide Money | |||||
| Market Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 12,992,592 | |||
| Dividend income | 176,926 | ||||
| Total Income | 13,169,518 | ||||
EXPENSES: | |||||
| Investment advisory fees | 4,981,427 | ||||
| Fund administration fees | 1,578,759 | ||||
| Distribution fees Service Class | 8,763 | ||||
| Administrative services fees Service Class | 10,426 | ||||
| Administrative services fees Prime Class | 207,517 | ||||
| Registration and filing fees | 25,801 | ||||
| Professional fees | 240,957 | ||||
| Printing fees | 58,859 | ||||
| Trustee fees | 97,506 | ||||
| Compliance program costs (Note 3) | 27,617 | ||||
| Custodian fees | 99,556 | ||||
| Other | 993,137 | ||||
| Total expenses before reimbursed/waived expenses | 8,330,325 | ||||
| Earnings credit (Note 5) | (17,981 | ) | |||
| Investment advisory fees voluntarily waived (Note 3) | (288,743 | ) | |||
| Expenses reimbursed by adviser | (189 | ) | |||
| Distribution fees voluntarily waived — Service Class (Note 3) | (6,236 | ) | |||
| Administrative services fees voluntarily waived — Service Class (Note 3) | (6,910 | ) | |||
| Administrative services fees voluntarily waived — Prime Class (Note 3) | (142,207 | ) | |||
| Net Expenses | 7,868,059 | ||||
NET INVESTMENT INCOME | 5,301,459 | ||||
REALIZED/UNREALIZED GAINS FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 7,072 | ||||
| Net realized/unrealized gains from investments | 7,072 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 5,308,531 | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 44
Statements of Changes in Net Assets
| Nationwide Money Market Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 5,301,459 | $ | 59,782,374 | ||||||
| Net realized gains (losses) from investment transactions | 7,072 | (1,634,055 | ) | |||||||
| Change in net assets resulting from operations | 5,308,531 | 58,148,319 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Institutional Class | (4,004,107 | ) | (44,205,350 | ) | ||||||
| Service Class | (18,532 | ) | (249,109 | ) | ||||||
| Prime Class | (1,278,859 | ) | (15,333,057 | ) | ||||||
| Change in net assets from shareholder distributions | (5,301,498 | ) | (59,787,516 | ) | ||||||
| Change in net assets from capital transactions | (66,988,440 | ) | 648,053,627 | |||||||
| Change in net assets | (66,981,407 | ) | 646,414,430 | |||||||
Net Assets: | ||||||||||
| Beginning of period | 2,621,710,471 | 1,975,296,041 | ||||||||
| End of period | $ | 2,554,729,064 | $ | 2,621,710,471 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 477 | $ | 516 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | $ | 259,371,316 | $ | 929,736,576 | ||||||
| Dividends reinvested | 4,004,044 | 44,205,350 | ||||||||
| Cost of shares redeemed | (332,220,560 | ) | (487,651,922 | ) | ||||||
| Total Institutional Class | (68,845,200 | ) | 486,290,004 | |||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 2,583,740 | 7,533,395 | ||||||||
| Dividends reinvested | 18,532 | 248,129 | ||||||||
| Cost of shares redeemed | (3,742,663 | ) | (4,257,287 | ) | ||||||
| Total Service Class | (1,140,391 | ) | 3,524,237 | |||||||
Prime Shares | ||||||||||
| Proceeds from shares issued | 186,053,005 | 520,543,492 | ||||||||
| Dividends reinvested | 1,260,162 | 15,022,900 | ||||||||
| Cost of shares redeemed | (184,316,016 | ) | (377,327,006 | ) | ||||||
| Total Prime Service | 2,997,151 | 158,239,386 | ||||||||
| Change in net assets from capital transactions: | $ | (66,988,440 | ) | $ | 648,053,627 | |||||
SHARE TRANSACTIONS: | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 259,371,316 | 929,736,576 | ||||||||
| Reinvested | 4,004,044 | 44,205,350 | ||||||||
| Redeemed | (332,220,560 | ) | (487,651,922 | ) | ||||||
| Total Institutional Class Shares | (68,845,200 | ) | 486,290,004 | |||||||
The accompanying notes are an integral part of these financial statements.
45 Semiannual Report 2009
| Nationwide Money Market Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Service Class Shares | ||||||||||
| Issued | 2,583,740 | 7,533,395 | ||||||||
| Reinvested | 18,532 | 248,129 | ||||||||
| Redeemed | (3,742,663 | ) | (4,257,287 | ) | ||||||
| Total Service Class Shares | (1,140,391 | ) | 3,524,237 | |||||||
Prime Shares | ||||||||||
| Issued | 186,053,005 | 520,543,492 | ||||||||
| Reinvested | 1,260,162 | 15,022,900 | ||||||||
| Redeemed | (184,316,016 | ) | (377,327,006 | ) | ||||||
| Total Prime Shares | 2,997,151 | 158,239,386 | ||||||||
| Total change in shares: | (66,988,440 | ) | 648,053,627 | |||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 46
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Money Market Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Capital | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Net | Contributions | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | Total from | Investment | Total | from | Value, End | Total | at End | to Average | to Average | to Average | ||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Operations | Income | Distributions | Adviser | of Period | Return (a) | of Period | Net Assets (b) | Net Assets (b) | Net Assets (b)(c) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .20% | $ | 1,881,208,987 | 0 | .60% | 0 | .41% | 0 | .62% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 1 | .00 | 0 | .03 | 0 | .03 | (0 | .03) | (0 | .03) | – | (f) | $ | 1 | .00 | 2 | .73% (d) | $ | 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% | 0 | .54% (e) | ||||||||||||||||||||||||||||||||||||
| 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% | 0 | .55% (e) | ||||||||||||||||||||||||||||||||||||
| 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% | 0 | .54% (e) | ||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .15% | $ | 11,342,232 | 0 | .70% | 0 | .31% | 0 | .95% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 1 | .00 | 0 | .03 | 0 | .03 | (0 | .03) | (0 | .03) | – | (f) | $ | 1 | .00 | 2 | .57% (d) | $ | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .19% | $ | 662,177,845 | 0 | .62% | 0 | .39% | 0 | .68% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 1 | .00 | 0 | .03 | 0 | .03 | (0 | .03) | (0 | .03) | – | (f) | $ | 1 | .00 | 2 | .65% (d) | $ | 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% | 0 | .59% (e) | ||||||||||||||||||||||||||||||||||||
| 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% | 0 | .60% (e) | ||||||||||||||||||||||||||||||||||||
| 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% | 0 | .60% (e) | ||||||||||||||||||||||||||||||||||||
Amounts designated as “ – “ are zero or have been rounded to zero.
| (a) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | 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. |
| (d) | Includes payment from the Investment adviser which increased the total return by 0.26%. |
| (e) | There were no fee reductions during the period. |
| (f) | The amount is less than $0.005 per share. |
The accompanying notes are an integral part of these financial statements.
47 Semiannual Report 2009
Notes to Financial Statements
April 30, 2009 (Unaudited)
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”). The Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2009, the Trust operates thirty-two (32) 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) series 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.
| (a) | Security Valuation |
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 4:00 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 (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), 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
48 Semiannual Report 2009
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 that hold 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 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 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.
The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157), effective with the beginning of the Funds’ current fiscal year. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques, giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are summarized below:
| • | Level 1 — quoted prices in active markets for identical assets | |
| • | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
| • | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities are not intended to indicate the risk associated with investing in those securities.
49 Semiannual Report 2009
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2009:
| Level 2 — Other | ||||||||||||||||||||||||||||||||||
| Level 1 — | Significant | Level 3 — Significant | ||||||||||||||||||||||||||||||||
| Quoted Prices | Observable Inputs | Unobservable Inputs | Total | |||||||||||||||||||||||||||||||
| Investments | Other* | Investments | Other* | Investments | Other* | Investments | Other* | |||||||||||||||||||||||||||
| Growth | $ | 114,742,253 | $ | — | $ | 2,286,817 | $ | — | $ | — | $ | — | $ | 117,029,070 | $ | — | ||||||||||||||||||
| Nationwide | 586,164,943 | — | 19,461,607 | — | — | — | 605,626,550 | — | ||||||||||||||||||||||||||
| Money Market | — | — | 2,582,925,176 | — | — | — | 2,582,925,176 | — | ||||||||||||||||||||||||||
| * | Other financial instruments are derivative instruments not reflected in the Statement of Investments, such as futures, forwards, and options, which are valued at the unrealized appreciation/depreciation on the instrument. | |
| Amounts designated as “—” are zero or have been rounded to zero. | ||
| (b) | Repurchase Agreements |
The Funds may enter into repurchase agreements with a member of the Federal Reserve System or 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 a 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) | Futures Contracts |
Growth and Nationwide 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, a Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the contract amount. 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 six months ended April 30, 2009.
50 Semiannual Report 2009
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
| (d) | 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.
| (e) | Securities Lending |
To generate additional income, each Fund, with the exception of Money Market, may lend its 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 U.S. Government 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 April 30, 2009, Nationwide had securities with the following values on loan:
| Value of | Value of | |||||||||||
| Fund | Loaned Securities | Collateral | ||||||||||
| Nationwide | $ | 6,957,434 | $ | 7,127,494 | ||||||||
| (f) | 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. Permanent differences 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. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as distributions of paid-in-capital.
| (g) | Federal Income Taxes |
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.
51 Semiannual Report 2009
The Financial Accounting Standards Board (“FASB”) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing 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 such a tax position taken by a Fund is not sustained upon examination by a taxing authority, the filer 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). Each Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service.
Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. FIN 48 requires ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to a Fund’s NAV and financial statements. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
| (h) | 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 series 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 series. 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”), a holding company which is a direct wholly-owned subsidiary of 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 | Subadviser | |||||
| Growth | Aberdeen Asset Management, Inc. (“Aberdeen”) | |||||
| Nationwide | Aberdeen | |||||
| Money Market | Nationwide Asset Management, LLC (“NWAM”) (a) Federated Investment Management Company (“Federated”) (b) | |||||
| (a) | NWAM, an affiliate of NFA, was subadviser to Money Market through April 1, 2009. | |
| (b) | Federated became subadviser to Money Market effective April 2, 2009. |
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
2009 Semiannual Report 52
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
to the subadviser. For the six months ended April 30, 2009, the Funds paid investment advisory fees to NFA according to the schedule below:
| Fund | Fee Schedule | Total Fees | ||||||||||
| Growth and Nationwide | 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 | % | |||||||||
| On $ | 5 billion and more | 0.50 | % | |||||||||
| Money Market | Up to $ | 1 billion | 0.40 | % | ||||||||
| $ | 1 billion up to $2 billion | 0.38 | % | |||||||||
| $ | 2 billion up to $5 billion | 0.36 | % | |||||||||
| On $ | 5 billion and more | 0.34 | % | |||||||||
From such fees, pursuant to the subadvisory agreements, NFA paid the subadvisers $1,639,056, of which $503,485 was paid to affiliated subadvisers, for the six months ended April 30, 2009.
NFA and Money Market have entered into a written Expense Limitation Agreement with respect to the Funds that limits operating expenses (excluding any taxes, interest, brokerage commissions, Rule 12b-1 fees, short sale dividend expenses, administrative service fees, other expenditures which are capitalized in accordance with GAAP and expenses incurred by a 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 February 28, 2010:
| Fund | Classes | Amount | ||||||||||
| Money Market | Institutional Class | 0.59 | % | |||||||||
| Service Class (a) | 0.59 | % | ||||||||||
| Prime | 0.59 | % | ||||||||||
| (a) | Effective February 28, 2010, the Fund Operating Expenses of this class of Money Market will be limited to 0.75%, including the class’s Rule 12b-1 fees and fees paid pursuant to the Fund’s Administrative Service Plan. |
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 April 30, 2009, 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 R2 | 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% | |||||||||||||||||
| * | Formerly Class R Shares. |
53 Semiannual Report 2009
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. A 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 six months ended April 30, 2009, NFD received commissions of $85,412 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 $81,400 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 series within the Trust in relation to the average daily net assets of each series 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 and 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 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
2009 Semiannual Report 54
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 R2 (formerly Class R), Prime Shares, Service Class and Institutional Services Classes of shares, as applicable, of each of the Funds.
For the six months ended April 30, 2009, NFS received the following amounts in administrative services fees from each Fund:
| Fund | Amount | |||||||
| Growth | $ | 5,423 | ||||||
| Nationwide | 161,045 | |||||||
| Money Market | 219,525 | |||||||
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFA and the Trust, the Trust 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 six months ended April 30, 2009, the Funds’ portion of such costs amounted to $35,463.
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.
During the six month period ending April 30, 2009, NFA voluntarily waived investment advisory fees payable by the Nationwide Money Market Fund in an amount equal to $288,743. During the same period, NFD voluntarily waived Rule 12b-1 fees payable by Service Class shares of the Nationwide Money Market Fund in an amount equal to $5,009. Nationwide Financial Services, Inc. (“NFS”), the parent company of NFA, NFD and NFM, waived an amount equal to $149,117 in fees payable to it by Prime shares and Service Class shares of the Nationwide Money Market Fund during the same period pursuant to the Trust’s Administrative Services Plan. Each of these fee waivers was agreed to voluntarily, and neither NFA, NFD nor NFS shall be entitled to reimbursement by the Nationwide Money Market Fund of any of the amounts waived. Such waivers may be discontinued at any time, and neither of NFA, NFD nor NFS represents that any of these voluntary waivers will be continued or repeated.
4. Short-Term Trading Fees
The Funds (except Money Market) assess a 2.00% short-term trading fee on all classes of shares that are purchased and are sold or exchanged within 30 calendar days of purchase. The short-term trading fee is paid directly to the applicable Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the short-term trading fee applies, the shares that were held the longest will be redeemed first. This short-term trading fee is in addition to any CDSCs that may be applicable at the time of sale. The short-term trading 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 short-term trading fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.
55 Semiannual Report 2009
For the six months ended April 30, 2009, the Funds had contributions to capital due to redemption fees in the amounts of:
| Institutional | Institutional | |||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class D | Class R2* | Service Class | Class | |||||||||||||||||||||||
| Growth | $ | 424 | $ | 6 | $ | 520 | $ | 208 | $ | — | $ | — | $ | — | ||||||||||||||||
| Nationwide | 233 | 42 | — | 1,013 | — | N/A | 8 | |||||||||||||||||||||||
For the year ended October 31, 2008, the Funds had contributions to capital due to redemption fees in the amounts of:
| Institutional | Institutional | |||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class D | Class R2* | Service Class | Class | |||||||||||||||||||||||
| Growth | $ | 1,134 | $ | 16 | $ | 36 | $ | 3,216 | $ | — | $ | — | $ | — | ||||||||||||||||
| Nationwide | 1,340 | 99 | — | 2,627 | — | N/A | — | |||||||||||||||||||||||
| * | Formerly Class R Shares. |
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 six months ended April 30, 2009.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those series that use DDAs based on the number of open shareholder accounts in each series. 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 series 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 six months ended April 30, 2009, were as follows:
| Fund | Purchases | Sales | ||||||||||
| Growth | $ | 74,868,975 | $ | 79,825,306 | ||||||||
| Nationwide | 665,548,605 | 699,092,626 | ||||||||||
| Purchases and sales of U.S. Government Securities for the six months ended April 30, 2009, were as follows: | ||||||||||||
| Fund | Purchases | Sales | ||||||||||
| Money Market | $ | 237,866,613 | $ | — | ||||||||
2009 Semiannual Report 56
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 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 Derivatives 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 has concluded that adoption of the Amendment did not impact each Fund’s financial statement disclosures.
In April 2009, the FASB issued FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 also provides guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the Funds’ financial statement disclosures.
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 September 18, 2009.
On December 3, 2008, the Board approved the extension until April 30, 2009, of the participation of Money Market in the Program. Money Market paid the required premium of $363,628, equivalent to 0.015% of Money Market’s NAV as of September 19, 2008, to participate in the Program extension. On April 8, 2009, the Board approved the extension until September 18, 2009, of the participation of Money Market in the Program. Money Market paid the required premium of $363,628, equivalent to 0.015% of Money Market’s NAV as of
57 Semiannual Report 2009
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
September 19, 2008, to participate in the Program extension. During the six months ended April 30, 2009, Money Market paid total premiums equivalent to 0.030% of Money Market’s NAV as of September 19, 2008.
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 expired on January 12, 2009. On October 22, 2008, the Board approved a new valuation methodology, pursuant to which the new amortized cost valuation was first applied to the assets of Money Market on October 22, 2008, in accordance with this no-action relief. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight line) basis to the maturity of the security.
As of April 30, 2009, 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 | 31% | 1 | ||||||||||
| Money Market | 89% | 2 | ||||||||||
10. Federal Tax Information
As of April 30, 2009, the tax cost of securities and the breakdown of the unrealized appreciation/(depreciation) for each Fund were as follows:
| Net Unrealized | ||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation | |||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||
| Growth | $ | 131,524,133 | $ | 6,843,107 | $ | (21,338,170 | ) | $ | (14,495,063 | ) | ||||||
| Nationwide | 678,414,165 | 33,903,826 | (106,691,441 | ) | (72,787,615 | ) | ||||||||||
| Money Market | 2,582,925,176 | — | — | — | ||||||||||||
58 Semiannual Report 2009
Supplemental Information
April 30, 2009 (Unaudited)
A. Renewal of Advisory (and Sub-advisory) Agreements
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
The Board has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
On December 2, 2008, the Trustees met in person with their independent legal counsel (“Independent Legal Counsel”), the Adviser, Trust counsel, and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the December 2, 2008 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
In preparation for the December 2, 2008 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2008) compared with performance groups and performance universes created by Lipper (and in some cases, customized peer groups created by the Adviser) of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2008) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2008, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) information from the Adviser describing, on a Fund-by-Fund basis, any fees paid to the Adviser for managing similar, non-affiliated institutional accounts, including the range of fee levels for such accounts, and (vii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
At the December 2, 2008 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds and those paid by non-affiliated institutional clients to the Adviser for managing similar accounts, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense
2009 Semiannual Report 59
caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
As part of the December 2, 2008 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions at the contract approval meeting of the Board of Trustees to be held on January 16, 2009.
At the January 16, 2009 meeting of the Board of Trustees of the Trust, the Board received and considered information provided by the Adviser in follow-up from the December 2, 2008 Board meeting and, after consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, concluded unanimously to renew the Advisory Agreement for the reasons set forth in the following section.
Nationwide Growth Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Aberdeen, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for the one-year period ended September 30, 2008, the Fund’s performance for Class A shares was in the third quintile of its Peer Group, slightly above the median, but below the Fund’s benchmark, the Russell 1000 Growth Index. For the three- and five-year periods ended September 30, 2008, the Trustees noted that the Fund’s Class A shares were in the second quintile of the Fund’s Peer Group and outperformed the benchmark.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the first quintile of its Peer Group, and that, although the Fund’s actual advisory fee was in the third quintile of its Peer Group, it was slightly below the median of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the second quintile of its Peer Group. The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the breakpoints included in the Fund’s proposed investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Aberdeen, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2008, the Fund’s performance for Class A shares placed it in the fourth quintile of the Peer Group, and below the performance of the Fund’s benchmark, the S&P 500® Index. In this regard, the Trustees noted that Aberdeen had replaced the lead portfolio manager for the Fund’s fundamental sleeves with Shahreza Yusof, Paul Atkinson, and Francis Radano, III (the “Aberdeen Equity Team”) effective October 28, 2008. The Trustees reviewed the qualifications and experience of the members of the Aberdeen Equity Team as well as the Aberdeen Equity Team’s historical performance track record managing investment strategies similar to the Fund. The Trustees considered the Aberdeen Equity Team’s overall track record with respect to this type of fund.
2009 Semiannual Report 60
Supplemental Information (Continued)
April 30, 2009 (Unaudited)
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the second quintile of its Peer Group, and that the Fund’s actual advisory fee was in the third quintile and slightly below the median of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the second quintile of its Peer Group. The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that advisory fee schedule included breakpoints, and that the first breakpoint has been reached. The Trustees concluded that the shareholders of the Fund have appropriately benefited from economies of scale under the proposed advisory fee schedule, in light of such breakpoints.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Money Market Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and NWAM, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Prime shares was in the fifth quintile of its Peer Group for the one-year period ended September 30, 2008, in the fourth quintile of its Peer Group for the three-year period ended September 30, 2008, and in the third quintile and slightly above the median of the Peer Group for the five-year period ended September 30, 2008. The Trustees noted that for each period, the Fund underperformed the iMoneyNet First Tier Retail Index, the Fund’s benchmark. In this regard, the Trustees noted that the Fund’s underperformance was attributable to the conservative positioning of the Fund’s portfolio in response to the 2008 credit crisis.
The Trustees noted that the Fund’s contractual advisory fee for Prime shares was in the third quintile and slightly above the median of its Peer Group, and that the Fund’s actual advisory fee was in the fourth quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the fourth quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees also noted that current market conditions had increased the time and resources that NFA and NWAM dedicated to supporting the Money Market Funds. The Trustees also considered recent non-contractual support provided by NWAM and its affiliates to the Money Market Funds, including the purchase of certain SIVs from the Money Market Funds’ portfolio and a contribution of $1.6 million related to certain Morgan Stanley commercial paper. The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that advisory fee schedule included breakpoints, and that the second breakpoint has been reached. The Trustees concluded that the shareholders of the Fund have appropriately benefited from economies of scale under the proposed advisory fee schedule, in light of such breakpoints.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
61 Semiannual Report 2009
Management Information
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | ||||||||||
| 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 (formerly Mitchell Madison Group), until 2001. Ms. Dryden was a managing partner at Mitchell Madison Group from 1996-2001. | 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 | ||||||||||
62 Semiannual Report 2009
Management Information (Continued)
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | Retired. 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, and served as Board Member of Columbus Downtown Development Corporation from June 2002 to June 2006. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts and Chairman of the Greater Columbus Convention and Visitors Bureau. | 94 | None | ||||||||||
63 Semiannual Report 2009
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 serves as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Fund’s 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 by calling 800-848-0920.
2009 Semiannual Report 64
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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 S. Spangler Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1966 | President and Chief Executive Officer since June 2008 | 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 2008 | 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 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. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. 2 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.2From 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 | ||||||||||
65 Semiannual Report 2009
| 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.2 She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide.2 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 | ||||||||||
| Lynnett Berger Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1965 | Vice President and Chief Investment Officer since April 2009 | Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Vice President of Economic Risk Lab (Operational Risk Group) of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007. | N/A | N/A | ||||||||||
2009 Semiannual Report 66
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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 Butler4 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 and Director 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. Butler has announced his resignation effective June 30, 2009. |
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 and 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. This summary is available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
67 Semiannual Report 2009
P.O. Box 182205
Columbus, OH 43218-2205
nationwide.com/mutualfunds
Nationwide, Nationwide Financial,
the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
©2009 Nationwide Funds Group.
All rights reserved.
SAR-CORE2 6/09
Nationwide Mutual Funds
SemiannualReport
April 30, 2009 (Unaudited)
Target Destination Funds
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
SemiannualReport
April 30, 2009 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Target Destination Funds | |||
| 6 | Nationwide Destination 2010 Fund | ||
| 19 | Nationwide Destination 2015 Fund | ||
| 32 | Nationwide Destination 2020 Fund | ||
| 45 | Nationwide Destination 2025 Fund | ||
| 58 | Nationwide Destination 2030 Fund | ||
| 71 | Nationwide Destination 2035 Fund | ||
| 83 | Nationwide Destination 2040 Fund | ||
| 96 | Nationwide Destination 2045 Fund | ||
| 109 | Nationwide Destination 2050 Fund | ||
| 122 | Nationwide Retirement Income Fund | ||
| 135 | 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
April 30, 2009
Dear Shareholder,
The semiannual reporting period for the Nationwide Mutual Funds (NMF) has encompassed two extremely difficult quarters for stock mutual fund investing. Although the blue-chip indexes, including the Dow Jones Industrial Average (DJIA), sank to 12-year lows on March 9th of this year, the market has shown some signs of cautious rebounding. It may be too early to call this a recovery, but at the start of the second quarter of 2009, stock prices began to show signs of improvement.
Federal Reserve Board Chairman Ben Bernanke has talked about seeing “green shoots” in the financial system in the wake of the central bank’s unprecedented efforts to get credit flowing again. Chairman Bernanke has cited as evidence of economic improvement: the rise in consumer spending in the first quarter of the year; a slow, but steady rate of new and existing home purchases, and a modest revival of the credit markets.
Some of those “shoots” are, indeed, hopeful signs. The recession, however, is not fading as quickly as we all would wish. The much-anticipated government plan to remove toxic assets from banks’ balance sheets, as of this writing, has not been implemented. The results from the government’s stress testing of banks are just being disseminated, and the early news indicates that some banks may require more relief.
In the coming months, investors will be keeping an eye on Washington as much as on Wall Street. The damage to the economy remains severe; the latest government figures suggest that, at best, the pace of the negative news has slowed.
This has been a challenging time in the financial markets. At Nationwide® and Nationwide Funds Groupsm we continue to keep a long-term perspective. We remain committed to the underlying investment principles of our funds.
We thank you for entrusting your assets to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President
Nationwide Mutual Funds
President
Nationwide Mutual Funds
2009 Semiannual Report 1
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: nationwide.com/mutualfunds.
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. Remember, though, asset allocation does not ensure a profit nor protect against losses, including possible loss of principal.
Day-to-day market activity will likely cause a Fund’s asset allocations to fluctuate from the stated target. 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. The asset class target allocations are subject to change at any time and without notice. For more information, refer to the Funds’ prospectus.
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved.
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 instruments. Please see the Funds’ prospectus for information about the specific risks of this type of investment.
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. 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 at its target date through the next 20 years is expected to be less volatile than a fund in its “pre-target-date” stage. The Nationwide Retirement Income Fund is expected to be the least volatile of the Funds due to the Retirement Income Fund’s further reduced exposure to equity securities.
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. Also, an investor may have different retirement needs than the allocation model anticipates.
There is no assurance that a diversified portfolio will produce better results than a nondiversified portfolio.
Note that diversification does not ensure a profit nor protect against loss in a declining market. Investing in alternative asset classes involves special risk.
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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
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
Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. Investors may be able to reduce or eliminate front-end sales charges on Class A shares, based on investment size. Please consult the Fund’s prospectus for more details.
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. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower.
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.
2 Semiannual Report 2009
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.
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 subindexes represent the bond and cash components.
Dow Jones (DJ) Wilshire 5000 Composite Index: An unmanaged, market capitalization-weighted index of all U.S.-headquartered equity securities with available pricing data that is representative of the performance of the broad U.S. equity market.
Barclays Capital (BARCAP) 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 or more) that is generally representative of the bond market as a whole.
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.
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.
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 nationwide.com/mutualfunds. Please read it carefully before investing any money.
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.
The Funds’ adviser or its employees may have a position in the securities named in this report.
Investing in mutual fund involves risk, including the possible loss of principal. Investors’ shares, when redeemed, may be worth more or less than their original cost.
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 Treasury Department has extended the U.S. Department of the Treasury’s Temporary Guarantee Program (the “Program”) for Money Market Funds until September 18, 2009. The Board of Trustees of Nationwide Mutual Funds approved the continued participation of the Nationwide Money Market Fund in the Program on April 8, 2009.
Here are some reminders about the Program:
| • | Only shareholders who held shares in the Nationwide Money Market Fund on September 19, 2008, are eligible for protection under the Program. |
| • | The Program currently in place provides a guarantee to these shareholders based on the number of shares invested in the Funds at the close of business on September 19, 2008. |
| • | Any increase in the number of shares an eligible shareholder holds after the close of business on September 19, 2008, will not be guaranteed by the Program. |
| • | 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 is not part of the U.S. Treasury Department’s Troubled Asset Relief Program (TARP). The Program is intended to provide relief for investors in the event the per-share value of any of the money market funds falls below $0.995 and a fund liquidates its holdings. The Program will provide coverage to a fund’s shareholders of record at the close of business on September 19, |
2009 Semiannual Report 3
| 2008, up to $1.00 per share for the lesser of either the number of shares the investor held in that fund or the number of shares the investor held the date the per-share value fell below $0.995. This is commonly referred to as “breaking the buck.” |
| • | The U.S. Treasury Department, through the Exchange Stabilization Fund (“ESF”), is providing this guarantee. In the event that a participating fund breaks the buck and liquidates, a guarantee payment should be made to investors through their fund within approximately 30 days, subject to possible extensions at the discretion of the Treasury. Payments to investors under the Program will depend on the availability of assets in the ESF, which currently totals approximately $50 billion. |
| The U.S. Department of the Treasury and the Secretary of the Treasury have the authority to use assets from the ESF for purposes other than those of the Program. | |
| • | Participation in each period of the Program requires a payment to the U.S. Department of the Treasury in the amount of 0.015% based on the net asset value of the Fund as of September 19, 2008. Each Fund individually bears this expense without regard to any expense limitation currently in effect for the Fund. |
Based in Conshohocken, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors (NIA).
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 a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
Nationwide Funds distributed by Nationwide Fund Distributors LLC, Member FINRA. 1200 River Road, Suite 1000, Conshohocken, Pa. 19428.
4 Semiannual Report 2009
Summary of Market Environment
The following is a summary from Nationwide Funds Group regarding market conditions during the reporting period.
The first half of the reporting period was filled with economic events that have not happened in the United States in more than 50 years, nor, in many cases, since the time of the Great Depression of the late 1920s and 1930s. A rebound in the markets began in mid-March and continued into April, evidence that market observers, as well as investors, are anticipating improvement in the economy during the latter half of 2009 and early 2010. Economic news during the reporting period was mixed, with signs of brightening frequently offset by events that indicated a deepening of the recession.
Some of the negative news included: (1) a 6.1% decrease in the annualized U.S. gross domestic product (GDP) for the first quarter of 2009, as reported by the U.S. Bureau of Economic Analysis; (2) a continuously rising jobless rate, which hit 8.9% in April 2009 according to the Department of Labor (DOL), representing the highest level in the jobless rate since 1983 (as companies continue laying off workers, the unemployment rate well may increase to 10% by the end of 2009); (3) a spate of new questions about the capital positions of some of the largest U.S. financial institutions; (4) persistently-low consumer confidence, resulting in depressed spending levels; and (5) the spreading of residential real estate market troubles to commercial real estate, causing even greater levels of stress in the financial system.
Toward the end of March and into April, some signs emerged that the worst of the economic news might be behind us: (1) indicators pointed to the possibility that price declines in the U.S. housing market were nearing an end; (2) President Obama’s administration announced the “Public-Private Investment Program” (PPIP) to help banks unload some of their illiquid assets; and (3) the U.S. Bureau of Economic Analysis reported in April that personal consumption rose by 2.2% in the first quarter of 2009, an indication that consumer confidence may be strengthening.
A broad look at index performance during the reporting period revealed that mid-capitalization U.S. equities beat their large- and small-cap counterparts by a significant margin. Specifically, large caps, as measured by the Standard & Poor’s 500® (S&P 500) Index, fell 8.5% during the reporting period amid continuing market volatility. Mid-caps, as measured by the Standard & Poor’s MidCap 400® (S&P 400) Index, lost 0.2%, and small caps, as measured by the Russell 2000® Index, declined 8.4%.
In general, the performance of international stocks experienced a significant upswing during the latter part of the reporting period, outpacing that of U.S. equities. International developed market stocks, as measured by the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, lost 2.4% during the reporting period, despite a gain of more than 7.9% during the latter half of the period. Emerging market stocks, as measured by the MSCI Emerging Markets (MSCI EM) Indexsm, gained more than 16% during the reporting period, including a gain of more than 25% during the last three months of the reporting period.
The reporting period was positive overall for fixed-income investors. The broad-based fixed-income Barclays Capital (BARCAP) U.S. Aggregate Bond Index gained 7.7% during the reporting period.
2009 Semiannual Report 5
| Nationwide Destination 2010 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2010 Fund (Class A at NAV) registered -1.34% versus 5.34% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2010 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2010 Funds (consisting of 194 funds as of April 30, 2009) was 0.03%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund and iShares Barclays TIPS Bond ETF (with allocations of approximately 15% and 14%, respectively) provided the most positive relative returns for the overall portfolio, gaining 7.49% and 9.44%, respectively, during the reporting period. Concerns over the potential inflationary impact of U.S. government economic stimulus actions drove up the values of inflation-protected securities, as reflected in the strong performance of the iShares Barclays TIPS Bond Fund ETF. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 23% and 10%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
6 Semiannual Report 2009
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2010 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 23 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 10 | % | -4.35 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 15 | % | 7.49 | % | |||||||
| Inflation-Protected Bonds | iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund* | 14 | % | 9.44 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 7 | % | -0.41 | % | |||||||
| Short-Term Bonds | Vanguard Short-Term Bond Fund* | 9 | % | 5.02 | % | |||||||
| International Bonds | Oppenheimer International Bond Fund | 6 | % | 8.13 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 3 | % | -8.37 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 3 | % | -15.23 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 1 | % | 15.97 | % | |||||||
| High-Yield Bonds | T. Rowe Price High Yield Bond Fund | 2 | % | 10.36 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 5 | % | 0.20 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 1 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 1 | % | -9.83 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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
nationwide.com/mutualfunds.
nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 7
| Fund Performance | Nationwide Destination 2010 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -1.34% | -24.51% | -14.29% | ||||||||||
| w/SC3 | -6.98% | -28.83% | -17.28% | |||||||||||
| Class C | w/o SC5 | -1.73% | -25.11% | -14.94% | ||||||||||
| w/SC4 | -2.70% | -25.84% | -14.94% | |||||||||||
Class R12 | -1.48% | -24.80% | -14.74% | |||||||||||
Class R22 | -1.52% | -24.78% | -14.58% | |||||||||||
Institutional Service Class2 | -1.16% | -24.34% | -14.22% | |||||||||||
Institutional Class2 | -1.16% | -24.26% | -14.01% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.01% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.43% | |||||
| Class R2 | 1.34% | |||||
| Institutional Service Class | 0.84% | |||||
| Institutional Class | 0.66% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 Barclays Capital subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. | |
| (b) | The Barclays Capital 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 more) that is generally representative of the bond market as a whole. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
8 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2010 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 986.59 | 3.70 | 0.75 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.07 | 3.77 | 0.75 | |||||||||||||||
| Class C | Actual | 1,000.00 | 982.69 | 6.48 | 1.32 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.26 | 6.61 | 1.32 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 985.18 | 5.30 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.45 | 5.41 | 1.08 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 984.84 | 5.27 | 1.07 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.49 | 5.37 | 1.07 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 988.40 | 1.62 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.65 | 0.33 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 988.40 | 1.62 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
2009 Semiannual Report 9
| Portfolio Summary | Nationwide Destination 2010 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 51 | .9% | ||
| Fixed Income Funds | 43 | .4% | ||
| Money Market Fund | 4 | .7% | ||
| Other assets in excess of liabilities | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 23 | .9% | ||
| Nationwide Bond Index Fund, Institutional Class | 14 | .2% | ||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 12 | .9% | ||
| Nationwide International Index Fund, Institutional Class | 10 | .7% | ||
| Vanguard Short-Term Bond Fund | 8 | .5% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 7 | .6% | ||
| Oppenheimer International Bond Fund, Class Y | 5 | .8% | ||
| Nationwide Money Market Fund, Institutional Class | 4 | .7% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 3 | .3% | ||
| Credit Suisse Commodity Return Strategy Fund | 2 | .9% | ||
| Other Holdings | 5 | .5% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
10 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2010 Fund
| Mutual Funds 75.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 48.4% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 60,953 | $ | 441,912 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 303,877 | 1,628,779 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 125,357 | 1,162,059 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 497,267 | 3,639,992 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 67,152 | 500,280 | ||||||
| 7,373,022 | ||||||||
Fixed Income Funds 22.0% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 199,158 | 2,158,875 | ||||||
| Oppenheimer International Bond Fund, Class Y | 154,071 | 882,825 | ||||||
| T. Rowe Price High Yield Bond Fund | 39,642 | 308,019 | ||||||
| 3,349,719 | ||||||||
Money Market Fund 4.7% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 716,551 | 716,551 | ||||||
Total Mutual Funds (cost $12,178,291) | 11,439,292 | |||||||
| Exchange Traded Funds 24.9% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 3.5% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 6,691 | 166,806 | ||||||
| Vanguard Emerging Markets Fund | 6,140 | 169,894 | ||||||
| Vanguard REIT Fund | 6,190 | 196,409 | ||||||
| 533,109 | ||||||||
Fixed Income Funds 21.4% | ||||||||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 19,530 | 1,961,593 | ||||||
| Vanguard Short-Term Bond Fund | 16,428 | 1,297,812 | ||||||
| 3,259,405 | ||||||||
Total Exchange Traded Funds (cost $3,824,808) | 3,792,514 | |||||||
Total Investments (cost $16,003,099) (c) — 100.0% | 15,231,806 | |||||||
Other assets in excess of liabilities — 0.0% | 4,962 | |||||||
NET ASSETS — 100.0% | $ | 15,236,768 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
2009 Semiannual Report 11
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2010 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $5,522,486) | $ | 5,425,270 | |||
| Investments in affiliates, at value (cost $10,480,613) | 9,806,536 | ||||
| Total Investments | 15,231,806 | ||||
| Cash | 66,950 | ||||
| Dividends receivable from affiliates | 7,547 | ||||
| Dividends receivable from non-affiliates | 3,248 | ||||
| Receivable for capital shares issued | 12,582 | ||||
| Other assets | 806 | ||||
| Total Assets | 15,322,939 | ||||
Liabilities: | |||||
| Payable for investments purchased | 72,014 | ||||
| Payable for capital shares redeemed | 5,455 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 3,852 | ||||
| Distribution fees | 4,850 | ||||
| Total Liabilities | 86,171 | ||||
Net Assets | $ | 15,236,768 | |||
Represented by: | |||||
| Capital | $ | 17,348,614 | |||
| Accumulated undistributed net investment income | 13,850 | ||||
| Accumulated net realized losses from investment transactions | (1,354,403 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (674,077 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (97,216 | ) | |||
Net Assets | $ | 15,236,768 | |||
Net Assets: | |||||
| Class A Shares | $ | 2,365,553 | |||
| Class C Shares | 26,107 | ||||
| Class R1 | 1,701,495 | ||||
| Class R2 | 9,367,485 | ||||
| Institutional Service Class Shares | 774 | ||||
| Institutional Class Shares | 1,775,354 | ||||
| Total | $ | 15,236,768 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 321,789 | ||||
| Class C Shares | 3,558 | ||||
| Class R1 Shares | 231,816 | ||||
| Class R2 Shares | 1,276,903 | ||||
| Institutional Service Class Shares | 105 | ||||
| Institutional Class Shares | 241,259 | ||||
| Total | 2,075,430 | ||||
The accompanying notes are an integral part of these financial statements.
12 Semiannual Report 2009
| Nationwide | |||||
| Destination 2010 | |||||
| Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 7.35 | |||
| Class C Shares (a) | $ | 7.34 | |||
| Class R1 Shares | $ | 7.34 | |||
| Class R2 Shares | $ | 7.34 | |||
| Institutional Service Class Shares | $ | 7.35 | (b) | ||
| Institutional Class Shares | $ | 7.36 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.80 | |||
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. | |
| (b) | The NAV reported above represents the traded NAV at April 30, 2009. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 13
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2010 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 104,666 | |||
| Dividend income from non-affiliates | 71,751 | ||||
| Total Income | 176,417 | ||||
EXPENSES: | |||||
| Investment advisory fees | 18,219 | ||||
| Distribution fees Class A | 1,281 | ||||
| Distribution fees Class C | 56 | ||||
| Distribution fees Class R1 | 4,120 | ||||
| Distribution fees Class R2 | 17,822 | ||||
| Administrative services fees Class A | 912 | ||||
| Administrative services fees Class R1 | 644 | ||||
| Administrative services fees Class R2 | 8,689 | ||||
| Net Expenses | 51,743 | ||||
NET INVESTMENT INCOME | 124,674 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 168,532 | ||||
| Net realized gain distributions from underlying non-affiliated funds | 3,958 | ||||
| Net realized losses from investment transactions with affiliates | (966,243 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (313,299 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (1,107,052 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 668,563 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 451,161 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,119,724 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 12,672 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 137,346 | |||
The accompanying notes are an integral part of these financial statements.
14 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Destination 2010 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 124,674 | $ | 119,889 | ||||||
| Net realized losses from investment transactions | (1,107,052 | ) | (198,636 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,119,724 | (1,941,842 | ) | |||||||
| Change in net assets resulting from operations | 137,346 | (2,020,589 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (12,979 | ) | (5,614 | ) | ||||||
| Class C | (95 | ) | (18 | ) | ||||||
| Class R1 | (13,586 | ) | (11,486 | ) | ||||||
| Class R2 | (76,204 | ) | (60,713 | ) | ||||||
| Institutional Service Class | (11 | ) | (26 | ) | ||||||
| Institutional Class | (21,718 | ) | (32,034 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (2,080 | ) | (32 | ) | ||||||
| Class C | (4 | ) | (3 | ) | ||||||
| Class R1 | (5,819 | ) | (3 | ) | ||||||
| Class R2 | (32,152 | ) | (356 | ) | ||||||
| Institutional Service Class | (4 | ) | (3 | ) | ||||||
| Institutional Class | (6,543 | ) | (2,906 | ) | ||||||
| Change in net assets from shareholder distributions | (171,195 | ) | (113,194 | ) | ||||||
| Change in net assets from capital transactions | 6,452,306 | 9,801,867 | ||||||||
| Change in net assets | 6,418,457 | 7,668,084 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 8,818,311 | 1,150,227 | ||||||||
| End of period | $ | 15,236,768 | $ | 8,818,311 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 13,850 | $ | 13,769 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 2,029,890 | $ | 975,476 | ||||||
| Dividends reinvested | 15,059 | 5,646 | ||||||||
| Cost of shares redeemed | (187,026 | ) | (490,587 | ) | ||||||
| Total Class A | 1,857,923 | 490,535 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 23,962 | – | ||||||||
| Dividends reinvested | 99 | 21 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class C | 24,061 | 21 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 962,857 | 1,661,505 | ||||||||
| Dividends reinvested | 19,405 | 11,488 | ||||||||
| Cost of shares redeemed | (406,587 | ) | (208,129 | ) | ||||||
| Total Class R1 | 575,675 | 1,464,864 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 15
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2010 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 3,910,454 | $ | 8,625,649 | ||||||
| Dividends reinvested | 108,356 | 61,069 | ||||||||
| Cost of shares redeemed | (831,015 | ) | (1,138,307 | ) | ||||||
| Total Class R2 | 3,187,795 | 7,548,411 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 15 | 29 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Service Class | 15 | 29 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,289,510 | 286,420 | ||||||||
| Dividends reinvested | 28,261 | 34,940 | ||||||||
| Cost of shares redeemed | (510,934 | ) | (23,353 | ) | ||||||
| Total Institutional Class | 806,837 | 298,007 | ||||||||
| Change in net assets from capital transactions: | $ | 6,452,306 | $ | 9,801,867 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 295,177 | 100,000 | ||||||||
| Reinvested | 2,112 | 603 | ||||||||
| Redeemed | (26,734 | ) | (50,141 | ) | ||||||
| Total Class A Shares | 270,555 | 50,462 | ||||||||
Class C Shares | ||||||||||
| Issued | 3,442 | – | ||||||||
| Reinvested | 14 | 2 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class C Shares | 3,456 | 2 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 132,520 | 178,490 | ||||||||
| Reinvested | 2,671 | 1,246 | ||||||||
| Redeemed | (56,979 | ) | (26,232 | ) | ||||||
| Total R1 Shares | 78,212 | 153,504 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 551,035 | 941,223 | ||||||||
| Reinvested | 14,958 | 6,562 | ||||||||
| Redeemed | (117,410 | ) | (126,943 | ) | ||||||
| Total R2 Shares | 448,583 | 820,842 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
16 Semiannual Report 2009
| Nationwide Destination 2010 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 2 | 3 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Service Class Shares | 2 | 3 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 176,531 | 29,444 | ||||||||
| Reinvested | 3,897 | 3,594 | ||||||||
| Redeemed | (70,279 | ) | (2,460 | ) | ||||||
| Total Institutional Class Shares | 110,149 | 30,578 | ||||||||
| Total change in shares: | 910,957 | 1,055,391 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 17
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2010 Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Total | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Return | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .59 | 0 | .08 | (0 | .18) | (0 | .10) | (0 | .10) | (0 | .04) | (0 | .14) | $ | 7 | .35 | (1 | .34%) | $ | 2,365,553 | 0 | .75% | 2 | .24% | 0 | .75% | 23 | .44% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .58 | 0 | .04 | (0 | .17) | (0 | .13) | (0 | .07) | (0 | .04) | (0 | .11) | $ | 7 | .34 | (1 | .73%) | $ | 26,107 | 1 | .32% | 1 | .27% | 1 | .32% | 23 | .44% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .58 | 0 | .07 | (0 | .19) | (0 | .12) | (0 | .08) | (0 | .04) | (0 | .12) | $ | 7 | .34 | (1 | .48%) | $ | 1,701,495 | 1 | .08% | 2 | .11% | 1 | .08% | 23 | .44% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .57 | 0 | .08 | (0 | .19) | (0 | .11) | (0 | .08) | (0 | .04) | (0 | .12) | $ | 7 | .34 | (1 | .52%) | $ | 9,367,485 | 1 | .07% | 2 | .16% | 1 | .07% | 23 | .44% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .58 | 0 | .10 | (0 | .19) | (0 | .09) | (0 | .10) | (0 | .04) | (0 | .14) | $ | 7 | .35 | (1 | .16%) | $ | 774 | 0 | .33% | 2 | .78% | 0 | .33% | 23 | .44% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .59 | 0 | .10 | (0 | .19) | (0 | .09) | (0 | .10) | (0 | .04) | (0 | .14) | $ | 7 | .36 | (1 | .16%) | $ | 1,775,354 | 0 | .33% | 2 | .78% | 0 | .33% | 23 | .44% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
18 Semiannual Report 2009
| Nationwide Destination 2015 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2015 Fund (Class A at NAV) registered -1.16% versus 3.96% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2015 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2015 Funds (consisting of 137 funds as of April 30, 2009) was -1.07%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund and the iShares Barclays TIPS Bond ETF (with allocations of approximately 16% and 13%, respectively) provided the most positive relative returns for the Fund, gaining 7.49% and 9.44% respectively, during the reporting period. Concerns over the potential inflationary impact of U.S. government economic stimulus actions drove up the values of inflation-protected securities, as reflected in the strong performance of the iShares Barclays TIPS Bond Fund ETF. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 24% and 13%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
2009 Semiannual Report 19
Nationwide Destination 2015 Fund
(Continued)
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2015 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 24 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 13 | % | -4.35 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 16 | % | 7.49 | % | |||||||
| Inflation-Protected Bonds | iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund* | 13 | % | 9.44 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 8 | % | -0.41 | % | |||||||
| Short-Term Bonds | Vanguard Short -Term Bond Fund* | 8 | % | 5.02 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 4 | % | -8.37 | % | |||||||
| International Bonds | Oppenheimer International Bond Fund | 4 | % | 8.13 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 4 | % | -15.23 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 2 | % | 15.97 | % | |||||||
| High-Yield Bonds | T. Rowe Price High Yield Bond Fund | 1 | % | 10.36 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 1 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 1 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
20 Semiannual Report 2009
| Fund Performance | Nationwide Destination 2015 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -1.16% | -25.10% | -14.96% | ||||||||||
| w/SC3 | -6.86% | -29.40% | -17.92% | |||||||||||
| Class C | w/o SC5 | -1.38% | -25.54% | -15.41% | ||||||||||
| w/SC4 | -2.35% | -26.27% | -15.41% | |||||||||||
Class R12 | -1.34% | -25.46% | -15.34% | |||||||||||
Class R22 | -1.17% | -25.30% | -15.16% | |||||||||||
Institutional Service Class2 | -0.98% | -25.05% | -14.85% | |||||||||||
Institutional Class2 | -0.83% | -24.87% | -14.58% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.99% | |||||
| Class C | 1.65% | |||||
| Class R1 | 1.44% | |||||
| Class R2 | 1.29% | |||||
| Institutional Service Class | 0.82% | |||||
| Institutional Class | 0.65% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 21
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2015 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 988.40 | 3.95 | 0.80 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.83 | 4.02 | 0.80 | |||||||||||||||
| Class C | Actual | 1,000.00 | 986.22 | 6.46 | 1.31 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.29 | 6.59 | 1.31 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 986.56 | 5.79 | 1.18 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.96 | 5.91 | 1.18 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 988.30 | 5.16 | 1.05 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.60 | 5.26 | 1.05 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 990.15 | 3.00 | 0.61 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.78 | 3.05 | 0.61 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 991.75 | 1.62 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.17 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
22 Semiannual Report 2009
| Portfolio Summary | Nationwide Destination 2015 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 60 | .0% | ||
| Fixed Income Funds | 39 | .0% | ||
| Money Market Fund | 0 | .9% | ||
| Other assets in excess of liabilities | 0 | .1% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 24 | .7% | ||
| Nationwide Bond Index Fund, Institutional Class | 15 | .0% | ||
| Nationwide International Index Fund, Institutional Class | 13 | .8% | ||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 11 | .8% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 8 | .7% | ||
| Vanguard Short-Term Bond Fund | 7 | .4% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 4 | .4% | ||
| Credit Suisse Commodity Return Strategy Fund | 3 | .8% | ||
| Oppenheimer International Bond Fund, Class Y | 3 | .8% | ||
| Vanguard Emerging Markets Fund | 2 | .2% | ||
| Other Holdings | 4 | .4% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 23
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2015 Fund
| Mutual Funds 76.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 55.4% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 233,456 | $ | 1,692,558 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 1,138,046 | 6,099,927 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 412,512 | 3,823,985 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 1,492,760 | 10,927,001 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 257,862 | 1,921,072 | ||||||
| 24,464,543 | ||||||||
Fixed Income Funds 19.8% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 609,439 | 6,606,321 | ||||||
| Oppenheimer International Bond Fund, Class Y | 294,977 | 1,690,220 | ||||||
| T. Rowe Price High Yield Bond Fund | 56,909 | 442,186 | ||||||
| 8,738,727 | ||||||||
Money Market Fund 0.9% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 411,044 | 411,044 | ||||||
Total Mutual Funds (cost $35,455,814) | 33,614,314 | |||||||
| Exchange Traded Funds 23.8% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 4.6% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 19,211 | 478,930 | ||||||
| Vanguard Emerging Markets Fund | 34,796 | 962,805 | ||||||
| Vanguard REIT Fund | 18,280 | 580,025 | ||||||
| 2,021,760 | ||||||||
Fixed Income Funds 19.2% | ||||||||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 51,777 | 5,200,482 | ||||||
| Vanguard Short-Term Bond Fund | 41,718 | 3,295,722 | ||||||
| 8,496,204 | ||||||||
Total Exchange Traded Funds (cost $10,558,025) | 10,517,964 | |||||||
Total Investments (cost $46,013,839) (c) — 99.9% | 44,132,278 | |||||||
Other assets in excess of liabilities — 0.1% | 51,616 | |||||||
NET ASSETS — 100.0% | $ | 44,183,894 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
24 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2015 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $14,748,869) | $ | 14,342,928 | |||
| Investments in affiliates, at value (cost $31,264,970) | 29,789,350 | ||||
| Total Investments | 44,132,278 | ||||
| Cash | 27,945 | ||||
| Dividends receivable from affiliates | 23,482 | ||||
| Dividends receivable from non-affiliates | 6,324 | ||||
| Receivable for capital shares issued | 192,724 | ||||
| Receivable for investments sold | 2,719 | ||||
| Total Assets | 44,385,472 | ||||
Liabilities: | |||||
| Payable for investments purchased | 173,850 | ||||
| Payable for capital shares redeemed | 1,561 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 11,342 | ||||
| Distribution fees | 10,919 | ||||
| Administrative services fees | 3,906 | ||||
| Total Liabilities | 201,578 | ||||
Net Assets | $ | 44,183,894 | |||
Represented by: | |||||
| Capital | $ | 48,586,860 | |||
| Accumulated undistributed net investment income | 39,264 | ||||
| Accumulated net realized losses from investment transactions | (2,560,669 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (1,475,620 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (405,941 | ) | |||
Net Assets | $ | 44,183,894 | |||
Net Assets: | |||||
| Class A Shares | $ | 13,402,599 | |||
| Class C Shares | 170,618 | ||||
| Class R1 | 2,610,321 | ||||
| Class R2 | 17,972,022 | ||||
| Institutional Service Class Shares | 8,295,681 | ||||
| Institutional Class Shares | 1,732,653 | ||||
| Total | $ | 44,183,894 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,832,626 | ||||
| Class C Shares | 23,305 | ||||
| Class R1 Shares | 357,533 | ||||
| Class R2 Shares | 2,459,447 | ||||
| Institutional Service Class Shares | 1,131,781 | ||||
| Institutional Class Shares | 236,155 | ||||
| Total | 6,040,847 | ||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 25
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Destination 2015 | |||||
| Fund | |||||
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 C Shares (a) | $ | 7.32 | |||
| Class R1 Shares | $ | 7.30 | |||
| 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 | $ | 7.76 | |||
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.
26 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2015 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 291,032 | |||
| Dividend income from non-affiliates | 152,956 | ||||
| Total Income | 443,988 | ||||
EXPENSES: | |||||
| Investment advisory fees | 46,964 | ||||
| Distribution fees Class A | 6,146 | ||||
| Distribution fees Class C | 264 | ||||
| Distribution fees Class R1 | 5,951 | ||||
| Distribution fees Class R2 | 34,397 | ||||
| Administrative services fees Class A | 5,636 | ||||
| Administrative services fees Class R1 | 1,849 | ||||
| Administrative services fees Class R2 | 15,254 | ||||
| Administrative services fees Institutional Service Class | 9,154 | ||||
| Net Expenses | 125,615 | ||||
NET INVESTMENT INCOME | 318,373 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 432,527 | ||||
| Net realized gain distributions from underlying non-affiliated funds | 6,699 | ||||
| Net realized losses from investment transactions with affiliates | (2,398,736 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (392,969 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (2,352,479 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 2,377,427 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 846,014 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 3,223,441 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 870,962 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,189,335 | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 27
Statements of Changes in Net Assets
| Nationwide Destination 2015 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 318,373 | $ | 241,059 | ||||||
| Net realized losses from investment transactions | (2,352,479 | ) | (158,631 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 3,223,441 | (5,159,749 | ) | |||||||
| Change in net assets resulting from operations | 1,189,335 | (5,077,321 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (52,132 | ) | (7,580 | ) | ||||||
| Class C | (293 | ) | (68 | ) | ||||||
| Class R1 | (16,488 | ) | (9,787 | ) | ||||||
| Class R2 | (139,096 | ) | (119,814 | ) | ||||||
| Institutional Service Class | (80,879 | ) | (45,344 | ) | ||||||
| Institutional Class | (19,067 | ) | (33,859 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (1,221 | ) | (29 | ) | ||||||
| Class C | (11 | ) | (2 | ) | ||||||
| Class R1 | (3,163 | ) | (2 | ) | ||||||
| Class R2 | (26,357 | ) | (165 | ) | ||||||
| Institutional Service Class | (13,080 | ) | (1 | ) | ||||||
| Institutional Class | (2,883 | ) | (539 | ) | ||||||
| Change in net assets from shareholder distributions | (354,670 | ) | (217,190 | ) | ||||||
| Change in net assets from capital transactions | 23,507,130 | 24,075,930 | ||||||||
| Change in net assets | 24,341,795 | 18,781,419 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 19,842,099 | 1,060,680 | ||||||||
| End of period | $ | 44,183,894 | $ | 19,842,099 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 39,264 | $ | 28,846 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 12,728,191 | $ | 890,118 | ||||||
| Dividends reinvested | 53,353 | 7,609 | ||||||||
| Cost of shares redeemed | (950,855 | ) | (196,106 | ) | ||||||
| Total Class A | 11,830,689 | 701,621 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 160,474 | 5,679 | ||||||||
| Dividends reinvested | 304 | 70 | ||||||||
| Cost of shares redeemed | (10 | ) | (10 | ) | ||||||
| Total Class C | 160,768 | 5,739 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,769,585 | 1,719,581 | ||||||||
| Dividends reinvested | 19,651 | 9,789 | ||||||||
| Cost of shares redeemed | (414,804 | ) | (155,492 | ) | ||||||
| Total Class R1 | 1,374,432 | 1,573,878 | ||||||||
The accompanying notes are an integral part of these financial statements.
28 Semiannual Report 2009
| Nationwide Destination 2015 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 7,989,213 | $ | 15,640,395 | ||||||
| Dividends reinvested | 165,453 | 119,979 | ||||||||
| Cost of shares redeemed | (1,266,888 | ) | (1,515,279 | ) | ||||||
| Total Class R2 | 6,887,778 | 14,245,095 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 3,798,094 | 7,344,599 | ||||||||
| Dividends reinvested | 93,959 | 45,345 | ||||||||
| Cost of shares redeemed | (961,822 | ) | (709,620 | ) | ||||||
| Total Institutional Service Class | 2,930,231 | 6,680,324 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,305,651 | 895,259 | ||||||||
| Dividends reinvested | 13,959 | 34,398 | ||||||||
| Cost of shares redeemed | (996,378 | ) | (60,384 | ) | ||||||
| Total Institutional Class | 323,232 | 869,273 | ||||||||
| Change in net assets from capital transactions: | $ | 23,507,130 | $ | 24,075,930 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,891,907 | 92,478 | ||||||||
| Reinvested | 7,682 | 815 | ||||||||
| Redeemed | (139,643 | ) | (20,713 | ) | ||||||
| Total Class A Shares | 1,759,946 | 72,580 | ||||||||
Class C Shares | ||||||||||
| Issued | 22,581 | 575 | ||||||||
| Reinvested | 44 | 7 | ||||||||
| Redeemed | (1 | ) | (1 | ) | ||||||
| Total Class C Shares | 22,624 | 581 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 246,861 | 183,811 | ||||||||
| Reinvested | 2,743 | 1,069 | ||||||||
| Redeemed | (61,077 | ) | (15,974 | ) | ||||||
| Total R1 Shares | 188,527 | 168,906 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,122,709 | 1,650,905 | ||||||||
| Reinvested | 23,065 | 12,942 | ||||||||
| Redeemed | (180,386 | ) | (169,888 | ) | ||||||
| Total R2 Shares | 965,388 | 1,493,959 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 539,799 | 793,403 | ||||||||
| Reinvested | 13,093 | 4,923 | ||||||||
| Redeemed | (138,801 | ) | (80,736 | ) | ||||||
| Total Institutional Service Class Shares | 414,091 | 717,590 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 29
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2015 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 180,660 | 93,972 | ||||||||
| Reinvested | 1,960 | 3,581 | ||||||||
| Redeemed | (137,660 | ) | (6,232 | ) | ||||||
| Total Institutional Class Shares | 44,960 | 91,321 | ||||||||
| Total change in shares: | 3,395,536 | 2,544,937 | ||||||||
The accompanying notes are an integral part of these financial statements.
30 Semiannual Report 2009
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2015 Fund
| Operations | Distributions | Ratio/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .51 | 0 | .07 | (0 | .16) | (0 | .09) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 7 | .31 | (1 | .16%) | $ | 13,402,599 | 0 | .80% | 2 | .01% | 0 | .80% | 20 | .46% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .51 | 0 | .04 | (0 | .15) | (0 | .11) | (0 | .06) | (0 | .02) | (0 | .08) | $ | 7 | .32 | (1 | .38%) | $ | 170,618 | 1 | .31% | 1 | .04% | 1 | .31% | 20 | .46% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .49 | 0 | .06 | (0 | .16) | (0 | .10) | (0 | .07) | (0 | .02) | (0 | .09) | $ | 7 | .30 | (1 | .34%) | $ | 2,610,321 | 1 | .18% | 1 | .86% | 1 | .18% | 20 | .46% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .49 | 0 | .07 | (0 | .16) | (0 | .09) | (0 | .07) | (0 | .02) | (0 | .09) | $ | 7 | .31 | (1 | .17%) | $ | 17,972,022 | 1 | .05% | 2 | .11% | 1 | .05% | 20 | .46% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 11 | .57% | 1 | .06% | 1 | .12% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .51 | 0 | .09 | (0 | .17) | (0 | .08) | (0 | .08) | (0 | .02) | (0 | .10) | $ | 7 | .33 | (0 | .98%) | $ | 8,295,681 | 0 | .61% | 2 | .62% | 0 | .61% | 20 | .46% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .53 | 0 | .10 | (0 | .17) | (0 | .07) | (0 | .10) | (0 | .02) | (0 | .12) | $ | 7 | .34 | (0 | .83%) | $ | 1,732,653 | 0 | .33% | 2 | .77% | 0 | .33% | 20 | .46% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 31
| Nationwide Destination 2020 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2020 Fund (Class A at NAV) registered -1.76% versus 2.22% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2020 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2020 Funds (consisting of 182 funds as of April 30, 2009) was -1.30%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund and the iShares Barclays TIPS Bond ETF (with allocations of approximately 17% and 10%, respectively) provided the most positive relative returns for the overall portfolio, gaining 7.49% and 9.44%, respectively, during the reporting period. Concerns over the potential inflationary impact of U.S. government economic stimulus actions drove up the values of inflation-protected securities, as reflected in the strong performance of the iShares Barclays TIPS Bond Fund ETF. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 26% and 16%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
32 Semiannual Report 2009
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2020 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 26 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 16 | % | -4.35 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 17 | % | 7.49 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 9 | % | -0.41 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 6 | % | -8.37 | % | |||||||
| Inflation-Protected Bonds | iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund* | 10 | % | 9.44 | % | |||||||
| Short-Term Bonds | Vanguard Short-Term Bond Fund* | 5 | % | 5.02 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 4 | % | -15.23 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 3 | % | 15.97 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 2 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 1 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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
nationwide.com/mutualfunds.
nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 33
| Fund Performance | Nationwide Destination 2020 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -1.76% | -27.10% | -16.56% | ||||||||||
| w/SC3 | -7.44% | -31.30% | -19.46% | |||||||||||
| Class C | w/o SC5 | -1.98% | -27.64% | -17.15% | ||||||||||
| w/SC4 | -2.95% | -28.35% | -17.15% | |||||||||||
Class R12 | -1.79% | -27.28% | -16.80% | |||||||||||
Class R22 | -1.82% | -27.35% | -16.77% | |||||||||||
Institutional Service Class2 | -1.63% | -26.99% | -16.45% | |||||||||||
Institutional Class2 | -1.48% | -26.82% | -16.19% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.99% | |||||
| Class C | 1.64% | |||||
| Class R1 | 1.41% | |||||
| Class R2 | 1.31% | |||||
| Institutional Service Class | 0.82% | |||||
| Institutional Class | 0.64% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
34 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2020 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 982.42 | 3.48 | 0.71 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.28 | 3.56 | 0.71 | |||||||||||||||
| Class C | Actual | 1,000.00 | 980.24 | 6.51 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.22 | 6.66 | 1.33 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 982.09 | 5.50 | 1.12 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.25 | 5.61 | 1.12 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 981.81 | 5.20 | 1.06 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.55 | 5.31 | 1.06 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 983.70 | 2.81 | 0.57 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.96 | 2.87 | 0.57 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 985.20 | 1.62 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.17 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
2009 Semiannual Report 35
| Portfolio Summary | Nationwide Destination 2020 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 69 | .7% | ||
| Fixed Income Funds | 29 | .3% | ||
| Money Market Fund | 0 | .9% | ||
| Other assets in excess of liabilities | 0 | .1% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 26 | .4% | ||
| Nationwide International Index Fund, Institutional Class | 16 | .7% | ||
| Nationwide Bond Index Fund, Institutional Class | 15 | .7% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 9 | .6% | ||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 9 | .0% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 6 | .4% | ||
| Vanguard Short-Term Bond Fund | 4 | .6% | ||
| Credit Suisse Commodity Return Strategy Fund | 3 | .8% | ||
| Vanguard Emerging Markets Fund | 3 | .2% | ||
| Vanguard REIT Fund | 2 | .5% | ||
| Other Holdings | 2 | .1% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
36 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2020 Fund
| Mutual Funds 79.5% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 62.9% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 206,298 | $ | 1,495,664 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 1,236,591 | 6,628,125 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 409,975 | 3,800,466 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 1,429,230 | 10,461,961 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 341,600 | 2,544,921 | ||||||
| 24,931,137 | ||||||||
Fixed Income Fund 15.7% (a) | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 573,865 | 6,220,702 | ||||||
Money Market Fund 0.9% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 364,169 | 364,169 | ||||||
Total Mutual Funds (cost $35,543,917) | 31,516,008 | |||||||
| Exchange Traded Funds 20.4% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 6.8% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 16,965 | 422,937 | ||||||
| Vanguard Emerging Markets Fund | 46,607 | 1,289,616 | ||||||
| Vanguard REIT Fund | 31,677 | 1,005,111 | ||||||
| 2,717,664 | ||||||||
Fixed Income Funds 13.6% | ||||||||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 35,377 | 3,553,266 | ||||||
| Vanguard Short-Term Bond Fund | 23,147 | 1,828,613 | ||||||
| 5,381,879 | ||||||||
Total Exchange Traded Funds (cost $8,427,602) | 8,099,543 | |||||||
Total Investments (cost $43,971,519) (c) — 99.9% | 39,615,551 | |||||||
Other assets in excess of liabilities — 0.1% | 22,602 | |||||||
NET ASSETS — 100.0% | $ | 39,638,153 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
2009 Semiannual Report 37
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2020 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $10,344,961) | $ | 9,595,207 | |||
| Investments in affiliates, at value (cost $33,626,558) | 30,020,344 | ||||
| Total Investments | 39,615,551 | ||||
| Cash | 40,216 | ||||
| Dividends receivable from affiliates | 22,121 | ||||
| Receivable for capital shares issued | 106,214 | ||||
| Total Assets | 39,784,102 | ||||
Liabilities: | |||||
| Payable for investments purchased | 118,930 | ||||
| Payable for capital shares redeemed | 6,416 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 9,752 | ||||
| Distribution fees | 10,382 | ||||
| Administrative services fees | 469 | ||||
| Total Liabilities | 145,949 | ||||
Net Assets | $ | 39,638,153 | |||
Represented by: | |||||
| Capital | $ | 45,120,529 | |||
| Accumulated undistributed net investment income | 28,477 | ||||
| Accumulated net realized losses from investment transactions | (1,154,885 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (3,606,214 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (749,754 | ) | |||
Net Assets | $ | 39,638,153 | |||
Net Assets: | |||||
| Class A Shares | $ | 2,990,555 | |||
| Class C Shares | 343,510 | ||||
| Class R1 | 3,364,912 | ||||
| Class R2 | 20,825,268 | ||||
| Institutional Service Class Shares | 9,211,211 | ||||
| Institutional Class Shares | 2,902,697 | ||||
| Total | $ | 39,638,153 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 421,270 | ||||
| Class C Shares | 48,584 | ||||
| Class R1 Shares | 473,562 | ||||
| Class R2 Shares | 2,936,343 | ||||
| Institutional Service Class Shares | 1,295,853 | ||||
| Institutional Class Shares | 407,623 | ||||
| Total | 5,583,235 | ||||
The accompanying notes are an integral part of these financial statements.
38 Semiannual Report 2009
| Nationwide | |||||
| Destination 2020 | |||||
| Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 7.10 | |||
| Class C Shares (a) | $ | 7.07 | |||
| Class R1 Shares | $ | 7.11 | |||
| Class R2 Shares | $ | 7.09 | |||
| Institutional Service Class Shares | $ | 7.11 | |||
| Institutional Class Shares | $ | 7.12 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.53 | |||
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.
2009 Semiannual Report 39
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2020 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 306,707 | |||
| Dividend income from non-affiliates | 102,234 | ||||
| Total Income | 408,941 | ||||
EXPENSES: | |||||
| Investment advisory fees | 45,375 | ||||
| Distribution fees Class A | 2,816 | ||||
| Distribution fees Class C | 1,468 | ||||
| Distribution fees Class R1 | 7,704 | ||||
| Distribution fees Class R2 | 34,083 | ||||
| Administrative services fees Class A | 1,478 | ||||
| Administrative services fees Class R1 | 1,701 | ||||
| Administrative services fees Class R2 | 15,845 | ||||
| Administrative services fees Institutional Service Class | 7,505 | ||||
| Net Expenses | 117,975 | ||||
NET INVESTMENT INCOME | 290,966 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 501,113 | ||||
| Net realized losses from investment transactions with affiliates | (1,331,378 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (239,360 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (1,069,625 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 858,214 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 495,499 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,353,713 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 284,088 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 575,054 | |||
The accompanying notes are an integral part of these financial statements.
40 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Destination 2020 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 290,966 | $ | 247,238 | ||||||
| Net realized losses from investment transactions | (1,069,625 | ) | (42,920 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,353,713 | (5,769,116 | ) | |||||||
| Change in net assets resulting from operations | 575,054 | (5,564,798 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (26,193 | ) | (30,452 | ) | ||||||
| Class C | (2,397 | ) | (817 | ) | ||||||
| Class R1 | (22,017 | ) | (13,184 | ) | ||||||
| Class R2 | (129,907 | ) | (102,759 | ) | ||||||
| Institutional Service Class | (71,215 | ) | (36,442 | ) | ||||||
| Institutional Class | (35,609 | ) | (43,404 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (3,403 | ) | (246 | ) | ||||||
| Class C | (439 | ) | (1 | ) | ||||||
| Class R1 | (3,226 | ) | (1 | ) | ||||||
| Class R2 | (19,129 | ) | (204 | ) | ||||||
| Institutional Service Class | (8,597 | ) | (1 | ) | ||||||
| Institutional Class | (4,018 | ) | (798 | ) | ||||||
| Change in net assets from shareholder distributions | (326,150 | ) | (228,309 | ) | ||||||
| Change in net assets from capital transactions | 18,884,252 | 25,174,704 | ||||||||
| Change in net assets | 19,133,156 | 19,381,597 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 20,504,997 | 1,123,400 | ||||||||
| End of period | $ | 39,638,153 | $ | 20,504,997 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 28,477 | $ | 24,849 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,232,922 | $ | 2,805,820 | ||||||
| Dividends reinvested | 29,596 | 30,675 | ||||||||
| Cost of shares redeemed | (332,483 | ) | (157,992 | ) | ||||||
| Total Class A | 930,035 | 2,678,503 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 130,973 | 309,717 | ||||||||
| Dividends reinvested | 2,836 | 818 | ||||||||
| Cost of shares redeemed | (48,547 | ) | – | |||||||
| Total Class C | 85,262 | 310,535 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,968,978 | 2,452,484 | ||||||||
| Dividends reinvested | 25,243 | 13,185 | ||||||||
| Cost of shares redeemed | (348,334 | ) | (320,516 | ) | ||||||
| Total Class R1 | 1,645,887 | 2,145,153 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 41
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2020 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 10,905,303 | $ | 13,617,431 | ||||||
| Dividends reinvested | 149,036 | 102,962 | ||||||||
| Cost of shares redeemed | (564,698 | ) | (745,026 | ) | ||||||
| Total Class R2 | 10,489,641 | 12,975,367 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 5,730,107 | 5,182,334 | ||||||||
| Dividends reinvested | 79,812 | 36,442 | ||||||||
| Cost of shares redeemed | (749,458 | ) | (167,925 | ) | ||||||
| Total Institutional Service Class | 5,060,461 | 5,050,851 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,567,544 | 2,024,673 | ||||||||
| Dividends reinvested | 39,627 | 44,202 | ||||||||
| Cost of shares redeemed | (934,205 | ) | (54,580 | ) | ||||||
| Total Institutional Class | 672,966 | 2,014,295 | ||||||||
| Change in net assets from capital transactions: | $ | 18,884,252 | $ | 25,174,704 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 182,916 | 293,724 | ||||||||
| Reinvested | 4,289 | 3,287 | ||||||||
| Redeemed | (49,944 | ) | (17,392 | ) | ||||||
| Total Class A Shares | 137,261 | 279,619 | ||||||||
Class C Shares | ||||||||||
| Issued | 19,422 | 35,846 | ||||||||
| Reinvested | 409 | 92 | ||||||||
| Redeemed | (7,285 | ) | – | |||||||
| Total Class C Shares | 12,546 | 35,938 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 285,629 | 267,817 | ||||||||
| Reinvested | 3,648 | 1,445 | ||||||||
| Redeemed | (51,989 | ) | (33,088 | ) | ||||||
| Total R1 Shares | 237,288 | 236,174 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,613,021 | 1,453,341 | ||||||||
| Reinvested | 21,611 | 11,159 | ||||||||
| Redeemed | (85,140 | ) | (79,017 | ) | ||||||
| Total R2 Shares | 1,549,492 | 1,385,483 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 850,860 | 564,187 | ||||||||
| Reinvested | 11,596 | 3,999 | ||||||||
| Redeemed | (113,116 | ) | (21,773 | ) | ||||||
| Total Institutional Service Class Shares | 749,340 | 546,413 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
42 Semiannual Report 2009
| Nationwide Destination 2020 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 224,713 | 213,028 | ||||||||
| Reinvested | 5,738 | 4,670 | ||||||||
| Redeemed | (134,407 | ) | (5,997 | ) | ||||||
| Total Institutional Class Shares | 96,044 | 211,701 | ||||||||
| Total change in shares: | 2,781,971 | 2,695,328 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 43
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2020 Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .33 | 0 | .08 | (0 | .21) | (0 | .13) | (0 | .09) | (0 | .01) | (0 | .10) | $ | 7 | .10 | (1 | .76%) | $ | 2,990,555 | 0 | .71% | 2 | .28% | 0 | .71% | 14 | .48% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .29 | 0 | .06 | (0 | .21) | (0 | .15) | (0 | .06) | (0 | .01) | (0 | .07) | $ | 7 | .07 | (1 | .98%) | $ | 343,510 | 1 | .33% | 1 | .66% | 1 | .33% | 14 | .48% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .33 | 0 | .06 | (0 | .19) | (0 | .13) | (0 | .08) | (0 | .01) | (0 | .09) | $ | 7 | .11 | (1 | .79%) | $ | 3,364,912 | 1 | .12% | 1 | .78% | 1 | .12% | 14 | .48% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .31 | 0 | .06 | (0 | .20) | (0 | .14) | (0 | .07) | (0 | .01) | (0 | .08) | $ | 7 | .09 | (1 | .82%) | $ | 20,825,268 | 1 | .06% | 1 | .91% | 1 | .06% | 14 | .48% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .33 | 0 | .08 | (0 | .20) | (0 | .12) | (0 | .09) | (0 | .01) | (0 | .10) | $ | 7 | .11 | (1 | .63%) | $ | 9,211,211 | 0 | .57% | 2 | .41% | 0 | .57% | 14 | .48% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .34 | 0 | .09 | (0 | .20) | (0 | .11) | (0 | .10) | (0 | .01) | (0 | .11) | $ | 7 | .12 | (1 | .48%) | $ | 2,902,697 | 0 | .33% | 2 | .60% | 0 | .33% | 14 | .48% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
44 Semiannual Report 2009
| Nationwide Destination 2025 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2025 Fund (Class A at NAV) registered -2.48% versus 0.45% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2025 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2025 Funds (consisting of 116 funds as of April 30, 2009) was -2.63%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund and the iShares Barclays TIPS Bond ETF (with allocations of approximately 13% and 7%, respectively) provided the most positive relative returns for the overall portfolio, gaining 7.49% and 9.44%, respectively, during the reporting period. Concerns over the potential inflationary impact of U.S. government economic stimulus actions drove up the values of inflation-protected securities, as reflected in the strong performance of the iShares Barclays TIPS Bond Fund ETF. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 29% and 18%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
2009 Semiannual Report 45
Nationwide Destination 2025 Fund
(Continued)
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2025 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 29 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 18 | % | -4.35 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 13 | % | 7.49 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 11 | % | -0.41 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 8 | % | -8.37 | % | |||||||
| Inflation-Protected Bonds | iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund* | 7 | % | 9.44 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 4 | % | -15.23 | % | |||||||
| Short-Term Bonds | Vanguard Short-Term Bond Fund* | 3 | % | 5.02 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 3 | % | 15.97 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 2 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 1 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
46 Semiannual Report 2009
| Fund Performance | Nationwide Destination 2025 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -2.48% | -29.26% | -18.27% | ||||||||||
| w/SC3 | -8.14% | -33.35% | -21.12% | |||||||||||
| Class C | w/o SC5 | -2.73% | -29.60% | -18.70% | ||||||||||
| w/SC4 | -3.69% | -30.29% | -18.70% | |||||||||||
Class R12 | -2.75% | -29.51% | -18.65% | |||||||||||
Class R22 | -2.56% | -29.44% | -18.45% | |||||||||||
Institutional Service Class2 | -2.29% | -29.17% | -18.21% | |||||||||||
Institutional Class2 | -2.30% | -29.01% | -17.96% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.96% | |||||
| Class C | 1.64% | |||||
| Class R1 | 1.41% | |||||
| Class R2 | 1.27% | |||||
| Institutional Service Class | 0.82% | |||||
| Institutional Class | 0.64% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 47
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2025 Fund | 11/01/2008 | 04/30/2009 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 975.23 | 3.52 | 0.72 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.23 | 3.61 | 0.72 | |||||||||||||||
| Class C | Actual | 1,000.00 | 972.68 | 6.47 | 1.32 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.24 | 6.64 | 1.32 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 972.55 | 5.45 | 1.11 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.27 | 5.59 | 1.11 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 974.36 | 4.79 | 0.98 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.94 | 4.92 | 0.98 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 977.12 | 2.73 | 0.56 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.04 | 2.79 | 0.56 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 976.97 | 1.61 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.17 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
48 Semiannual Report 2009
| Portfolio Summary | Nationwide Destination 2025 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 78 | .1% | ||
| Fixed Income Funds | 20 | .8% | ||
| Money Market Fund | 0 | .9% | ||
| Other assets in excess of liabilities | 0 | .2% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 29 | .1% | ||
| Nationwide International Index Fund, Institutional Class | 18 | .6% | ||
| Nationwide Bond Index Fund, Institutional Class | 11 | .9% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class, 0.03% | 11 | .6% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 8 | .4% | ||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 6 | .2% | ||
| Credit Suisse Commodity Return Strategy Fund | 3 | .7% | ||
| Vanguard Emerging Markets Fund | 3 | .2% | ||
| Vanguard Short-Term Bond Fund | 2 | .7% | ||
| Vanguard REIT Fund | 2 | .5% | ||
| Other Holdings | 2 | .1% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 49
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2025 Fund
| Mutual Funds 84.2% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 71.4% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 189,088 | $ | 1,370,884 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 1,274,983 | 6,833,910 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 459,183 | 4,256,625 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 1,461,106 | 10,695,294 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 417,393 | 3,109,579 | ||||||
| 26,266,292 | ||||||||
Fixed Income Fund 11.9% (a) | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 402,298 | 4,360,915 | ||||||
Money Market Fund 0.9% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 333,768 | 333,768 | ||||||
Total Mutual Funds (cost $34,899,460) | 30,960,975 | |||||||
| Exchange Traded Funds 15.6% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 6.7% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 15,397 | 383,847 | ||||||
| Vanguard Emerging Markets Fund | 42,284 | 1,169,998 | ||||||
| Vanguard REIT Fund | 28,795 | 913,666 | ||||||
| 2,467,511 | ||||||||
Fixed Income Funds 8.9% | ||||||||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 22,448 | 2,254,677 | ||||||
| Vanguard Short-Term Bond Fund | 12,592 | 994,768 | ||||||
| 3,249,445 | ||||||||
Total Exchange Traded Funds (cost $5,954,513) | 5,716,956 | |||||||
Total Investments (cost $40,853,973) (c) — 99.8% | 36,677,931 | |||||||
Other assets in excess of liabilities — 0.2% | 76,937 | |||||||
NET ASSETS — 100.0% | $ | 36,754,868 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
50 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2025 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $7,685,308) | $ | 7,087,840 | |||
| Investments in affiliates, at value (cost $33,168,665) | 29,590,091 | ||||
| Total Investments | 36,677,931 | ||||
| Cash | 30,383 | ||||
| Dividends receivable from affiliates | 15,427 | ||||
| Receivable for capital shares issued | 451,629 | ||||
| Other assets | 8,709 | ||||
| Total Assets | 37,184,079 | ||||
Liabilities: | |||||
| Payable for investments purchased | 409,679 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 8,962 | ||||
| Distribution fees | 10,570 | ||||
| Total Liabilities | 429,211 | ||||
Net Assets | $ | 36,754,868 | |||
Represented by: | |||||
| Capital | $ | 41,561,498 | |||
| Accumulated undistributed net investment income | 11,763 | ||||
| Accumulated net realized losses from investment transactions | (642,351 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (3,578,574 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (597,468 | ) | |||
Net Assets | $ | 36,754,868 | |||
Net Assets: | |||||
| Class A Shares | $ | 4,649,401 | |||
| Class C Shares | 224,806 | ||||
| Class R1 | 3,892,100 | ||||
| Class R2 | 20,129,044 | ||||
| Institutional Service Class Shares | 5,685,596 | ||||
| Institutional Class Shares | 2,173,921 | ||||
| Total | $ | 36,754,868 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 679,089 | ||||
| Class C Shares | 32,829 | ||||
| Class R1 Shares | 567,821 | ||||
| Class R2 Shares | 2,939,772 | ||||
| Institutional Service Class Shares | 829,067 | ||||
| Institutional Class Shares | 316,328 | ||||
| Total | 5,364,906 | ||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 51
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Destination 2025 | |||||
| Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.85 | |||
| Class C Shares (a) | $ | 6.85 | |||
| Class R1 Shares | $ | 6.85 | |||
| Class R2 Shares | $ | 6.85 | |||
| Institutional Service Class Shares | $ | 6.86 | |||
| Institutional Class Shares | $ | 6.87 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.27 | |||
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.
52 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2025 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 278,498 | |||
| Dividend income from non-affiliates | 80,984 | ||||
| Total Income | 359,482 | ||||
EXPENSES: | |||||
| Investment advisory fees | 40,348 | ||||
| Distribution fees Class A | 2,706 | ||||
| Distribution fees Class C | 602 | ||||
| Distribution fees Class R1 | 9,481 | ||||
| Distribution fees Class R2 | 33,752 | ||||
| Administrative services fees Class A | 1,563 | ||||
| Administrative services fees Class R1 | 2,026 | ||||
| Administrative services fees Class R2 | 10,363 | ||||
| Administrative services fees Institutional Service Class | 4,323 | ||||
| Net Expenses | 105,164 | ||||
NET INVESTMENT INCOME | 254,318 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 503,825 | ||||
| Net realized losses from investment transactions with affiliates | (804,263 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (182,622 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (483,060 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 593,244 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 395,291 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 988,535 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 505,475 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 759,793 | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 53
Statements of Changes in Net Assets
| Nationwide Destination 2025 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 254,318 | $ | 198,048 | ||||||
| Net realized losses from investment transactions | (483,060 | ) | (92,255 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 988,535 | (5,228,706 | ) | |||||||
| Change in net assets resulting from operations | 759,793 | (5,122,913 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (24,229 | ) | (10,560 | ) | ||||||
| Class C | (1,039 | ) | (722 | ) | ||||||
| Class R1 | (29,282 | ) | (18,886 | ) | ||||||
| Class R2 | (139,399 | ) | (105,833 | ) | ||||||
| Institutional Service Class | (44,583 | ) | (20,248 | ) | ||||||
| Institutional Class | (22,427 | ) | (30,121 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (3,322 | ) | (70 | ) | ||||||
| Class C | (269 | ) | – | |||||||
| Class R1 | (7,920 | ) | – | |||||||
| Class R2 | (35,807 | ) | (342 | ) | ||||||
| Institutional Service Class | (9,791 | ) | – | |||||||
| Institutional Class | (3,981 | ) | (370 | ) | ||||||
| Change in net assets from shareholder distributions | (322,049 | ) | (187,152 | ) | ||||||
| Change in net assets from capital transactions | 18,322,989 | 22,221,627 | ||||||||
| Change in net assets | 18,760,733 | 16,911,562 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 17,994,135 | 1,082,573 | ||||||||
| End of period | $ | 36,754,868 | $ | 17,994,135 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 11,763 | $ | 18,404 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 3,421,214 | $ | 1,348,474 | ||||||
| Dividends reinvested | 27,551 | 10,630 | ||||||||
| Cost of shares redeemed | (139,493 | ) | (91,667 | ) | ||||||
| Total Class A | 3,309,272 | 1,267,437 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 123,792 | 116,977 | ||||||||
| Dividends reinvested | 1,308 | 722 | ||||||||
| Cost of shares redeemed | (3,600 | ) | – | |||||||
| Total Class C | 121,500 | 117,699 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,911,701 | 3,348,171 | ||||||||
| Dividends reinvested | 37,202 | 18,886 | ||||||||
| Cost of shares redeemed | (188,083 | ) | (558,069 | ) | ||||||
| Total Class R1 | 1,760,820 | 2,808,988 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
54 Semiannual Report 2009
| Nationwide Destination 2025 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 9,554,605 | $ | 14,740,275 | ||||||
| Dividends reinvested | 175,206 | 106,174 | ||||||||
| Cost of shares redeemed | (593,217 | ) | (822,484 | ) | ||||||
| Total Class R2 | 9,136,594 | 14,023,965 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 3,185,032 | 3,500,018 | ||||||||
| Dividends reinvested | 54,374 | 20,248 | ||||||||
| Cost of shares redeemed | (280,809 | ) | (134,385 | ) | ||||||
| Total Institutional Service Class | 2,958,597 | 3,385,881 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,847,454 | 803,522 | ||||||||
| Dividends reinvested | 26,408 | 30,491 | ||||||||
| Cost of shares redeemed | (837,656 | ) | (216,356 | ) | ||||||
| Total Institutional Class | 1,036,206 | 617,657 | ||||||||
| Change in net assets from capital transactions: | $ | 18,322,989 | $ | 22,221,627 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 554,781 | 151,217 | ||||||||
| Reinvested | 4,220 | 1,149 | ||||||||
| Redeemed | (22,779 | ) | (10,843 | ) | ||||||
| Total Class A Shares | 536,222 | 141,523 | ||||||||
Class C Shares | ||||||||||
| Issued | 20,138 | 12,862 | ||||||||
| Reinvested | 198 | 81 | ||||||||
| Redeemed | (550 | ) | – | |||||||
| Total Class C Shares | 19,786 | 12,943 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 292,593 | 357,995 | ||||||||
| Reinvested | 5,592 | 2,089 | ||||||||
| Redeemed | (28,803 | ) | (61,745 | ) | ||||||
| Total R1 Shares | 269,382 | 298,339 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,474,166 | 1,607,098 | ||||||||
| Reinvested | 26,398 | 11,549 | ||||||||
| Redeemed | (89,645 | ) | (89,894 | ) | ||||||
| Total R2 Shares | 1,410,919 | 1,528,753 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 55
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2025 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 492,737 | 388,290 | ||||||||
| Reinvested | 8,219 | 2,242 | ||||||||
| Redeemed | (46,842 | ) | (15,679 | ) | ||||||
| Total Institutional Service Class Shares | 454,114 | 374,853 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 273,779 | 83,227 | ||||||||
| Reinvested | 4,004 | 3,196 | ||||||||
| Redeemed | (125,703 | ) | (22,049 | ) | ||||||
| Total Institutional Class Shares | 152,080 | 64,374 | ||||||||
| Total change in shares: | 2,842,503 | 2,420,785 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
56 Semiannual Report 2009
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2025 Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .14 | 0 | .07 | (0 | .25) | (0 | .18) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 6 | .85 | (2 | .48%) | $ | 4,649,401 | 0 | .72% | 2 | .08% | 0 | .72% | 10 | .83% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .13 | 0 | .05 | (0 | .25) | (0 | .20) | (0 | .06) | (0 | .02) | (0 | .08) | $ | 6 | .85 | (2 | .73%) | $ | 224,806 | 1 | .32% | 1 | .68% | 1 | .32% | 10 | .83% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .14 | 0 | .06 | (0 | .26) | (0 | .20) | (0 | .07) | (0 | .02) | (0 | .09) | $ | 6 | .85 | (2 | .75%) | $ | 3,892,100 | 1 | .11% | 1 | .90% | 1 | .11% | 10 | .83% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .13 | 0 | .06 | (0 | .25) | (0 | .19) | (0 | .07) | (0 | .02) | (0 | .09) | $ | 6 | .85 | (2 | .56%) | $ | 20,129,044 | 0 | .98% | 1 | .98% | 0 | .98% | 10 | .83% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .13 | 0 | .08 | (0 | .25) | (0 | .17) | (0 | .08) | (0 | .02) | (0 | .10) | $ | 6 | .86 | (2 | .29%) | $ | 5,685,596 | 0 | .56% | 2 | .39% | 0 | .56% | 10 | .83% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 7 | .15 | 0 | .07 | (0 | .24) | (0 | .17) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 6 | .87 | (2 | .30%) | $ | 2,173,921 | 0 | .33% | 2 | .33% | 0 | .33% | 10 | .83% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 57
| Nationwide Destination 2030 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2030 Fund (Class A at NAV) registered -3.38% versus -1.27% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2030 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2030 Funds (consisting of 175 funds as of April 30, 2009) was -3.32%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund and the Vanguard Emerging Markets ETF (with allocations of approximately 11% and 4%, respectively) provided the most positive relative returns for the overall portfolio, gaining 7.49% and 15.97%, respectively, during the reporting period. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period. After posting some of the worst returns in recent quarters, emerging market equities began to rebound strongly during the first quarter of 2009 and closed the period with double-digit gains.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 31% and 20%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
58 Semiannual Report 2009
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2030 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 31 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 20 | % | -4.35 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 12 | % | -0.41 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 11 | % | 7.49 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 9 | % | -8.37 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | -15.23 | % | |||||||
| Inflation-Protected Bonds | iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund* | 4 | % | 9.44 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 4 | % | 15.97 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 2 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 1 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 59
| Fund Performance | Nationwide Destination 2030 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -3.38% | -32.20% | -20.51% | ||||||||||
| w/SC3 | -8.93% | -36.07% | -23.28% | |||||||||||
| Class C | w/o SC5 | -3.68% | -32.60% | -20.95% | ||||||||||
| w/SC4 | -4.63% | -33.26% | -20.95% | |||||||||||
Class R12 | -3.69% | -32.55% | -20.87% | |||||||||||
Class R22 | -3.57% | -32.42% | -20.73% | |||||||||||
Institutional Service Class2 | -3.34% | -32.16% | -20.46% | |||||||||||
Institutional Class2 | -3.23% | -32.02% | -20.22% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.00% | |||||
| Class C | 1.65% | |||||
| Class R1 | 1.46% | |||||
| Class R2 | 1.32% | |||||
| Institutional Service Class | 0.83% | |||||
| Institutional Class | 0.65% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
60 Semiannual Report 2009
| 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2030 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 966.19 | 3.73 | 0.77 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.00 | 3.85 | 0.77 | |||||||||||||||
| Class C | Actual | 1,000.00 | 963.23 | 6.43 | 1.32 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.24 | 6.63 | 1.32 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 963.14 | 5.93 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.75 | 6.12 | 1.22 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 964.32 | 5.17 | 1.06 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.54 | 5.32 | 1.06 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 966.62 | 2.68 | 0.55 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.07 | 2.76 | 0.55 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 967.72 | 1.60 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.17 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
2009 Semiannual Report 61
| Portfolio Summary | Nationwide Destination 2030 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 85 | .7% | ||
| Fixed Income Funds | 13 | .4% | ||
| Money Market Fund | 0 | .9% | ||
| Other assets in excess of liabilities | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .8% | ||
| Nationwide International Index Fund, Institutional Class | 20 | .5% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 12 | .5% | ||
| Nationwide Bond Index Fund, Institutional Class | 9 | .9% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 9 | .5% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .6% | ||
| Vanguard Emerging Markets Fund | 4 | .3% | ||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 3 | .5% | ||
| Vanguard REIT Fund | 2 | .5% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 1 | .0% | ||
| Other Holdings | 0 | .9% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
62 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2030 Fund
| Mutual Funds 88.7% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 77.9% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 297,902 | $ | 2,159,790 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 1,790,437 | 9,596,742 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 633,268 | 5,870,398 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 1,971,849 | 14,433,937 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 593,783 | 4,423,681 | ||||||
| 36,484,548 | ||||||||
Fixed Income Fund 9.9% (a) | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 428,287 | 4,642,635 | ||||||
Money Market Fund 0.9% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 419,884 | 419,884 | ||||||
Total Mutual Funds (cost $44,412,884) | 41,547,067 | |||||||
| Exchange Traded Funds 11.3% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 7.8% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 19,724 | 491,719 | ||||||
| Vanguard Emerging Markets Fund | 72,159 | 1,996,639 | ||||||
| Vanguard REIT Fund | 36,998 | 1,173,947 | ||||||
| 3,662,305 | ||||||||
Fixed Income Fund 3.5% | ||||||||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 16,320 | 1,639,181 | ||||||
Total Exchange Traded Funds (cost $5,218,609) | 5,301,486 | |||||||
Total Investments (cost $49,631,493) (c) — 100.0% | 46,848,553 | |||||||
Other assets in excess of liabilities — 0.0% | 295 | |||||||
NET ASSETS — 100.0% | $ | 46,848,848 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
2009 Semiannual Report 63
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2030 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $7,731,322) | $ | 7,461,276 | |||
| Investments in affiliates, at value (cost $41,900,171) | 39,387,277 | ||||
| Total Investments | 46,848,553 | ||||
| Dividends receivable from affiliates | 16,957 | ||||
| Receivable for capital shares issued | 76,835 | ||||
| Receivable for investments sold | 12,936 | ||||
| Total Assets | 46,955,281 | ||||
Liabilities: | |||||
| Cash overdraft | 3,171 | ||||
| Payable for investments purchased | 72,395 | ||||
| Payable for capital shares redeemed | 4,976 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 11,867 | ||||
| Distribution fees | 11,901 | ||||
| Administrative services fees | 2,123 | ||||
| Total Liabilities | 106,433 | ||||
Net Assets | $ | 46,848,848 | |||
Represented by: | |||||
| Capital | $ | 50,735,404 | |||
| Accumulated undistributed net investment income | 5,298 | ||||
| Accumulated net realized losses from investment transactions | (1,108,914 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (2,512,894 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (270,046 | ) | |||
Net Assets | $ | 46,848,848 | |||
Net Assets: | |||||
| Class A Shares | $ | 17,557,214 | |||
| Class C Shares | 111,960 | ||||
| Class R1 | 3,285,874 | ||||
| Class R2 | 17,199,370 | ||||
| Institutional Service Class Shares | 5,242,949 | ||||
| Institutional Class Shares | 3,451,481 | ||||
| Total | $ | 46,848,848 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 2,684,606 | ||||
| Class C Shares | 17,117 | ||||
| Class R1 Shares | 502,370 | ||||
| Class R2 Shares | 2,631,083 | ||||
| Institutional Service Class Shares | 800,172 | ||||
| Institutional Class Shares | 525,890 | ||||
| Total | 7,161,238 | ||||
The accompanying notes are an integral part of these financial statements.
64 Semiannual Report 2009
| Nationwide | |||||
| Destination 2030 | |||||
| Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.54 | |||
| Class C Shares (a) | $ | 6.54 | |||
| Class R1 Shares | $ | 6.54 | |||
| Class R2 Shares | $ | 6.54 | |||
| Institutional Service Class Shares | $ | 6.55 | |||
| Institutional Class Shares | $ | 6.56 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 6.94 | |||
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.
2009 Semiannual Report 65
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2030 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 318,428 | |||
| Dividend income from non-affiliates | 81,032 | ||||
| Total Income | 399,460 | ||||
EXPENSES: | |||||
| Investment advisory fees | 45,723 | ||||
| Distribution fees Class A | 8,529 | ||||
| Distribution fees Class C | 324 | ||||
| Distribution fees Class R1 | 7,251 | ||||
| Distribution fees Class R2 | 31,027 | ||||
| Administrative services fees Class A | 6,625 | ||||
| Administrative services fees Class R1 | 2,731 | ||||
| Administrative services fees Class R2 | 14,597 | ||||
| Administrative services fees Institutional Service Class | 3,610 | ||||
| Net Expenses | 120,417 | ||||
NET INVESTMENT INCOME | 279,043 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 555,720 | ||||
| Net realized losses from investment transactions with affiliates | (1,162,486 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (349,806 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (956,572 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 2,056,820 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 783,059 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 2,839,879 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 1,883,307 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,162,350 | |||
The accompanying notes are an integral part of these financial statements.
66 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Destination 2030 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 279,043 | $ | 167,305 | ||||||
| Net realized losses from investment transactions | (956,572 | ) | (75,836 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 2,839,879 | (5,692,809 | ) | |||||||
| Change in net assets resulting from operations | 2,162,350 | (5,601,340 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (68,151 | ) | (20,739 | ) | ||||||
| Class C | (432 | ) | (200 | ) | ||||||
| Class R1 | (18,436 | ) | (12,436 | ) | ||||||
| Class R2 | (125,033 | ) | (85,994 | ) | ||||||
| Institutional Service Class | (38,630 | ) | (15,159 | ) | ||||||
| Institutional Class | (31,330 | ) | (30,886 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (6,444 | ) | (1,130 | ) | ||||||
| Class C | (116 | ) | (2 | ) | ||||||
| Class R1 | (6,618 | ) | (3 | ) | ||||||
| Class R2 | (41,468 | ) | (1,623 | ) | ||||||
| Institutional Service Class | (9,684 | ) | (2 | ) | ||||||
| Institutional Class | (6,273 | ) | (1,852 | ) | ||||||
| Change in net assets from shareholder distributions | (352,615 | ) | (170,026 | ) | ||||||
| Change in net assets from capital transactions | 27,468,437 | 22,144,690 | ||||||||
| Change in net assets | 29,278,172 | 16,373,324 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 17,570,676 | 1,197,352 | ||||||||
| End of period | $ | 46,848,848 | $ | 17,570,676 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 5,298 | $ | 8,267 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 14,470,615 | $ | 2,377,419 | ||||||
| Dividends reinvested | 74,595 | 21,869 | ||||||||
| Cost of shares redeemed | (496,322 | ) | (152,531 | ) | ||||||
| Total Class A | 14,048,888 | 2,246,757 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 73,555 | 43,689 | ||||||||
| Dividends reinvested | 548 | 202 | ||||||||
| Cost of shares redeemed | (698 | ) | – | |||||||
| Total Class C | 73,405 | 43,891 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,654,900 | 2,340,018 | ||||||||
| Dividends reinvested | 25,054 | 12,439 | ||||||||
| Cost of shares redeemed | (70,926 | ) | (74,536 | ) | ||||||
| Total Class R1 | 1,609,028 | 2,277,921 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 67
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2030 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 7,311,397 | $ | 14,271,615 | ||||||
| Dividends reinvested | 166,501 | 87,615 | ||||||||
| Cost of shares redeemed | (624,673 | ) | (849,056 | ) | ||||||
| Total Class R2 | 6,853,225 | 13,510,174 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 3,047,946 | 2,860,737 | ||||||||
| Dividends reinvested | 48,314 | 15,161 | ||||||||
| Cost of shares redeemed | (137,166 | ) | (63,464 | ) | ||||||
| Total Institutional Service Class | 2,959,094 | 2,812,434 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 3,234,670 | 1,359,081 | ||||||||
| Dividends reinvested | 37,603 | 32,738 | ||||||||
| Cost of shares redeemed | (1,347,476 | ) | (138,306 | ) | ||||||
| Total Institutional Class | 1,924,797 | 1,253,513 | ||||||||
| Change in net assets from capital transactions: | $ | 27,468,437 | $ | 22,144,690 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,508,565 | 260,030 | ||||||||
| Reinvested | 12,183 | 2,349 | ||||||||
| Redeemed | (84,540 | ) | (16,269 | ) | ||||||
| Total Class A Shares | 2,436,208 | 246,110 | ||||||||
Class C Shares | ||||||||||
| Issued | 12,202 | 4,812 | ||||||||
| Reinvested | 88 | 22 | ||||||||
| Redeemed | (107 | ) | – | |||||||
| Total Class C Shares | 12,183 | 4,834 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 268,055 | 251,911 | ||||||||
| Reinvested | 3,966 | 1,399 | ||||||||
| Redeemed | (12,073 | ) | (10,988 | ) | ||||||
| Total R1 Shares | 259,948 | 242,322 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,200,238 | 1,593,338 | ||||||||
| Reinvested | 26,325 | 9,612 | ||||||||
| Redeemed | (105,327 | ) | (102,223 | ) | ||||||
| Total R2 Shares | 1,121,236 | 1,500,727 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
68 Semiannual Report 2009
| Nationwide Destination 2030 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 498,923 | 320,897 | ||||||||
| Reinvested | 7,671 | 1,702 | ||||||||
| Redeemed | (22,151 | ) | (6,970 | ) | ||||||
| Total Institutional Service Class Shares | 484,443 | 315,629 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 502,761 | 143,988 | ||||||||
| Reinvested | 6,001 | 3,478 | ||||||||
| Redeemed | (215,024 | ) | (15,183 | ) | ||||||
| Total Institutional Class Shares | 293,738 | 132,283 | ||||||||
| Total change in shares: | 4,607,756 | 2,441,905 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 69
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2030 Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Investment | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Income | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | (Loss) | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .89 | 0 | .05 | (0 | .29) | (0 | .24) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 6 | .54 | (3 | .38%) | $ | 17,557,214 | 0 | .77% | 1 | .81% | 0 | .77% | 9 | .25% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .88 | 0 | .04 | (0 | .30) | (0 | .26) | (0 | .06) | (0 | .02) | (0 | .08) | $ | 6 | .54 | (3 | .68%) | $ | 111,960 | 1 | .32% | 1 | .28% | 1 | .32% | 9 | .25% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .88 | 0 | .05 | (0 | .31) | (0 | .26) | (0 | .06) | (0 | .02) | (0 | .08) | $ | 6 | .54 | (3 | .69%) | $ | 3,285,874 | 1 | .22% | 1 | .70% | 1 | .22% | 9 | .25% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .88 | 0 | .06 | (0 | .31) | (0 | .25) | (0 | .07) | (0 | .02) | (0 | .09) | $ | 6 | .54 | (3 | .57%) | $ | 17,199,370 | 1 | .06% | 2 | .01% | 1 | .06% | 9 | .25% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .89 | 0 | .07 | (0 | .30) | (0 | .23) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 6 | .55 | (3 | .34%) | $ | 5,242,949 | 0 | .55% | 2 | .41% | 0 | .55% | 9 | .25% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .90 | 0 | .07 | (0 | .30) | (0 | .23) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 6 | .56 | (3 | .23%) | $ | 3,451,481 | 0 | .33% | 2 | .20% | 0 | .33% | 9 | .25% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
70 Semiannual Report 2009
| Nationwide Destination 2035 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2035 Fund (Class A at NAV) registered -4.34% versus -2.59% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2035 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2035 Funds (consisting of 111 funds as of April 30, 2009) was -3.52%.
What areas of investment provided the most positive relative returns for the Fund?
The Nationwide Bond Index Fund and the Vanguard Emerging Markets Stock Index (ETF) (with allocations of approximately 10% and 4%, respectively) provided the most positive relative returns for the overall portfolio, gaining 7.49% and 15.97%, respectively, during the reporting period. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period. After posting some of the worst returns in recent quarters, emerging market equities began to rebound strongly in the first quarter of 2009 and closed the reporting period with double-digit gains.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 31% and 22%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
2009 Semiannual Report 71
Nationwide Destination 2035 Fund
(Continued)
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2035 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 31 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 22 | % | -4.35 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | -0.41 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 10 | % | -8.37 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 10 | % | 7.49 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | -15.23 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 4 | % | 15.97 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 2 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 2 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
72 Semiannual Report 2009
| Fund Performance | Nationwide Destination 2035 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -4.34% | -34.07% | -22.23% | ||||||||||
| w/SC3 | -9.87% | -37.89% | -24.94% | |||||||||||
| Class C | w/o SC5 | -4.62% | -34.52% | -22.71% | ||||||||||
| w/SC4 | -5.56% | -35.17% | -22.71% | |||||||||||
Class R12 | -4.68% | -34.49% | -22.65% | |||||||||||
Class R22 | -4.57% | -34.29% | -22.48% | |||||||||||
Institutional Service Class2 | -4.33% | -34.02% | -22.20% | |||||||||||
Institutional Class2 | -4.18% | -33.85% | -21.94% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.02% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.47% | |||||
| Class R2 | 1.28% | |||||
| Institutional Service Class | 0.84% | |||||
| Institutional Class | 0.66% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 73
| Shareholder | Nationwide Destination 2035 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2035 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 956.59 | 3.50 | 0.72 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.21 | 3.63 | 0.72 | |||||||||||||||
| Class C | Actual | 1,000.00 | 953.80 | 6.42 | 1.32 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.23 | 6.65 | 1.32 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 953.17 | 6.02 | 1.24 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.63 | 6.24 | 1.24 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 954.33 | 4.65 | 0.96 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.03 | 4.82 | 0.96 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 956.68 | 2.93 | 0.60 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.80 | 3.03 | 0.60 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 958.17 | 1.59 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.17 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
74 Semiannual Report 2009
| Portfolio Summary | Nationwide Destination 2035 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 90 | .1% | ||
| Fixed Income Funds | 9 | .0% | ||
| Money Market Fund | 0 | .9% | ||
| Other assets in excess of liabilities | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .6% | ||
| Nationwide International Index Fund, Institutional Class | 22 | .3% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .4% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 10 | .4% | ||
| Nationwide Bond Index Fund, Institutional Class | 9 | .0% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .6% | ||
| Vanguard Emerging Markets Fund | 4 | .2% | ||
| Vanguard REIT Fund | 2 | .5% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .1% | ||
| Nationwide Money Market Fund, Institutional Class | 0 | .9% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 75
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2035 Fund
| Mutual Funds 91.2% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 81.3% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 114,195 | $ | 827,912 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 751,157 | 4,026,204 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 261,561 | 2,424,667 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 753,195 | 5,513,385 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 251,492 | 1,873,613 | ||||||
| 14,665,781 | ||||||||
Fixed Income Fund 9.0% (a) | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 149,452 | 1,620,057 | ||||||
Money Market Fund 0.9% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 161,197 | 161,197 | ||||||
Total Mutual Funds (cost $19,403,466) | 16,447,035 | |||||||
| Exchange Traded Funds 8.8% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 8.8% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 15,000 | 373,950 | ||||||
| Vanguard Emerging Markets Fund | 27,532 | 761,811 | ||||||
| Vanguard REIT Fund | 13,900 | 441,047 | ||||||
Total Exchange Traded Funds (cost $1,825,345) | 1,576,808 | |||||||
Total Investments (cost $21,228,811) (c) — 100.0% | 18,023,843 | |||||||
Other assets in excess of liabilities — 0.0% | 3,914 | |||||||
NET ASSETS — 100.0% | $ | 18,027,757 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
76 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2035 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $2,905,492) | $ | 2,404,720 | |||
| Investments in affiliates, at value (cost $18,323,319) | 15,619,123 | ||||
| Total Investments | 18,023,843 | ||||
| Cash | 38,156 | ||||
| Dividends receivable from affiliates | 5,623 | ||||
| Receivable for capital shares issued | 72,100 | ||||
| Other assets | 4,147 | ||||
| Total Assets | 18,143,869 | ||||
Liabilities: | |||||
| Payable for investments purchased | 74,964 | ||||
| Payable for capital shares redeemed | 32,182 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 4,270 | ||||
| Distribution fees | 4,696 | ||||
| Total Liabilities | 116,112 | ||||
Net Assets | $ | 18,027,757 | |||
Represented by: | |||||
| Capital | $ | 21,308,038 | |||
| Accumulated net investment loss | (759 | ) | |||
| Accumulated net realized losses from investment transactions | (74,554 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (2,704,196 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (500,772 | ) | |||
Net Assets | $ | 18,027,757 | |||
Net Assets: | |||||
| Class A Shares | $ | 1,074,518 | |||
| Class C Shares | 78,440 | ||||
| Class R1 | 551,262 | ||||
| Class R2 | 11,172,674 | ||||
| Institutional Service Class Shares | 2,486,664 | ||||
| Institutional Class Shares | 2,664,199 | ||||
| Total | $ | 18,027,757 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 171,186 | ||||
| Class C Shares | 12,547 | ||||
| Class R1 Shares | 87,900 | ||||
| Class R2 Shares | 1,783,727 | ||||
| Institutional Service Class Shares | 395,979 | ||||
| Institutional Class Shares | 423,468 | ||||
| Total | 2,874,807 | ||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 77
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Destination 2035 | |||||
| Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.28 | |||
| Class C Shares (a) | $ | 6.25 | |||
| Class R1 Shares | $ | 6.27 | |||
| Class R2 Shares | $ | 6.26 | |||
| Institutional Service Class Shares | $ | 6.28 | |||
| Institutional Class Shares | $ | 6.29 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 6.66 | |||
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.
78 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2035 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 146,056 | |||
| Dividend income from non-affiliates | 38,886 | ||||
| Total Income | 184,942 | ||||
EXPENSES: | |||||
| Investment advisory fees | 19,899 | ||||
| Distribution fees Class A | 1,032 | ||||
| Distribution fees Class C | 292 | ||||
| Distribution fees Class R1 | 1,684 | ||||
| Distribution fees Class R2 | 17,945 | ||||
| Administrative services fees Class A | 597 | ||||
| Administrative services fees Class R1 | 687 | ||||
| Administrative services fees Class R2 | 4,844 | ||||
| Administrative services fees Institutional Service Class | 2,283 | ||||
| Net Expenses | 49,263 | ||||
NET INVESTMENT INCOME | 135,679 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 318,299 | ||||
| Net realized losses from investment transactions with affiliates | (213,762 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (67,904 | ) | |||
| Net realized gains from affiliated and non-affiliated investments | 36,633 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | (91,339 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 69,953 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | (21,386 | ) | |||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 15,247 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 150,926 | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 79
Statements of Changes in Net Assets
| Nationwide Destination 2035 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 135,679 | $ | 85,537 | ||||||
| Net realized gains (losses) from investment transactions | 36,633 | (59,022 | ) | |||||||
| Net change in unrealized appreciation/(depreciation) from investments | (21,386 | ) | (3,259,828 | ) | ||||||
| Change in net assets resulting from operations | 150,926 | (3,233,313 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (10,333 | ) | (6,653 | ) | ||||||
| Class C | (623 | ) | (472 | ) | ||||||
| Class R1 | (5,005 | ) | (3,529 | ) | ||||||
| Class R2 | (82,267 | ) | (41,848 | ) | ||||||
| Institutional Service Class | (21,201 | ) | (7,415 | ) | ||||||
| Institutional Class | (20,805 | ) | (31,261 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (3,236 | ) | (35 | ) | ||||||
| Class C | (250 | ) | (8 | ) | ||||||
| Class R1 | (2,262 | ) | (1 | ) | ||||||
| Class R2 | (26,150 | ) | (74 | ) | ||||||
| Institutional Service Class | (6,368 | ) | (1 | ) | ||||||
| Institutional Class | (4,694 | ) | (657 | ) | ||||||
| Change in net assets from shareholder distributions | (183,194 | ) | (91,954 | ) | ||||||
| Change in net assets from capital transactions | 8,691,788 | 11,586,478 | ||||||||
| Change in net assets | 8,659,520 | 8,261,211 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 9,368,237 | 1,107,026 | ||||||||
| End of period | $ | 18,027,757 | $ | 9,368,237 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (759 | ) | $ | 3,796 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 318,552 | $ | 1,192,479 | ||||||
| Dividends reinvested | 13,569 | 6,679 | ||||||||
| Cost of shares redeemed | (95,896 | ) | (94,523 | ) | ||||||
| Total Class A | 236,225 | 1,104,635 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 36,105 | 84,725 | ||||||||
| Dividends reinvested | 873 | 480 | ||||||||
| Cost of shares redeemed | (730 | ) | (28,579 | ) | ||||||
| Total Class C | 36,248 | 56,626 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 106,904 | 752,124 | ||||||||
| Dividends reinvested | 7,267 | 3,529 | ||||||||
| Cost of shares redeemed | (76,786 | ) | (984 | ) | ||||||
| Total Class R1 | 37,385 | 754,669 | ||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | 5,467,003 | 8,875,532 | ||||||||
| Dividends reinvested | 108,417 | 41,922 | ||||||||
| Cost of shares redeemed | (72,008 | ) | (1,421,822 | ) | ||||||
| Total Class R2 | 5,503,412 | 7,495,632 | ||||||||
The accompanying notes are an integral part of these financial statements.
80 Semiannual Report 2009
| Nationwide Destination 2035 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | $ | 1,317,956 | $ | 1,560,645 | ||||||
| Dividends reinvested | 27,569 | 7,416 | ||||||||
| Cost of shares redeemed | (37,507 | ) | (57,656 | ) | ||||||
| Total Institutional Service Class | 1,308,018 | 1,510,405 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,685,466 | 671,408 | ||||||||
| Dividends reinvested | 25,499 | 31,918 | ||||||||
| Cost of shares redeemed | (140,465 | ) | (38,815 | ) | ||||||
| Total Institutional Class | 1,570,500 | 664,511 | ||||||||
| Change in net assets from capital transactions: | $ | 8,691,788 | $ | 11,586,478 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 54,945 | 139,835 | ||||||||
| Reinvested | 2,242 | 748 | ||||||||
| Redeemed | (16,087 | ) | (13,087 | ) | ||||||
| Total Class A Shares | 41,100 | 127,496 | ||||||||
Class C Shares | ||||||||||
| Issued | 6,480 | 9,076 | ||||||||
| Reinvested | 144 | 52 | ||||||||
| Redeemed | (106 | ) | (3,199 | ) | ||||||
| Total Class C Shares | 6,518 | 5,929 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 17,986 | 81,368 | ||||||||
| Reinvested | 1,195 | 403 | ||||||||
| Redeemed | (13,035 | ) | (117 | ) | ||||||
| Total R1 Shares | 6,146 | 81,654 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 937,783 | 983,879 | ||||||||
| Reinvested | 17,943 | 4,725 | ||||||||
| Redeemed | (11,836 | ) | (148,867 | ) | ||||||
| Total R2 Shares | 943,890 | 839,737 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 222,505 | 181,344 | ||||||||
| Reinvested | 4,567 | 850 | ||||||||
| Redeemed | (6,207 | ) | (7,180 | ) | ||||||
| Total Institutional Service Class Shares | 220,865 | 175,014 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 271,888 | 72,671 | ||||||||
| Reinvested | 4,251 | 3,354 | ||||||||
| Redeemed | (24,258 | ) | (4,312 | ) | ||||||
| Total Institutional Class Shares | 251,881 | 71,713 | ||||||||
| Total change in shares: | 1,470,400 | 1,301,543 | ||||||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 81
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2035 Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .68 | 0 | .07 | (0 | .36) | (0 | .29) | (0 | .08) | (0 | .03) | (0 | .11) | $ | 6 | .28 | (4 | .34%) | $ | 1,074,518 | 0 | .72% | 2 | .46% | 0 | .72% | 5 | .88% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .65 | 0 | .06 | (0 | .37) | (0 | .31) | (0 | .06) | (0 | .03) | (0 | .09) | $ | 6 | .25 | (4 | .62%) | $ | 78,440 | 1 | .32% | 2 | .16% | 1 | .32% | 5 | .88% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .67 | 0 | .06 | (0 | .38) | (0 | .32) | (0 | .05) | (0 | .03) | (0 | .08) | $ | 6 | .27 | (4 | .68%) | $ | 551,262 | 1 | .24% | 2 | .08% | 1 | .24% | 5 | .88% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .67 | 0 | .06 | (0 | .37) | (0 | .31) | (0 | .07) | (0 | .03) | (0 | .10) | $ | 6 | .26 | (4 | .57%) | $ | 11,172,674 | 0 | .96% | 2 | .14% | 0 | .96% | 5 | .88% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .68 | 0 | .08 | (0 | .37) | (0 | .29) | (0 | .08) | (0 | .03) | (0 | .11) | $ | 6 | .28 | (4 | .33%) | $ | 2,486,664 | 0 | .60% | 2 | .56% | 0 | .60% | 5 | .88% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .69 | 0 | .07 | (0 | .35) | (0 | .28) | (0 | .09) | (0 | .03) | (0 | .12) | $ | 6 | .29 | (4 | .18%) | $ | 2,664,199 | 0 | .33% | 2 | .28% | 0 | .33% | 5 | .88% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
82 Semiannual Report 2009
| Nationwide Destination 2040 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2040 Fund (Class A at NAV) registered -5.24% versus -3.31% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2040 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2040 Funds (consisting of 170 funds as of April 30, 2009) was -4.01%.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Emerging Markets Stock Index ETF and the Nationwide Bond Index Fund (with allocations of approximately 5% each) provided the most positive relative returns for the overall portfolio, gaining 15.97% and 7.49%, respectively, during the reporting period. After posting some of the worst returns in recent quarters, emerging market equities began to rebound strongly in the first quarter of 2009 and closed the reporting period with double-digit gains. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 32% and 23%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
2009 Semiannual Report 83
Nationwide Destination 2040 Fund
Continued
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2040 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 32 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 23 | % | -4.35 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | -0.41 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 12 | % | -8.37 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 5 | % | 15.97 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | -15.23 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 5 | % | 7.49 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 2 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 2 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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
nationwide.com/mutualfunds.
nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
84 Semiannual Report 2009
| Fund Performance | Nationwide Destination 2040 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -5.24% | -36.26% | -24.13% | ||||||||||
| w/SC3 | -10.75% | -39.91% | -26.77% | |||||||||||
| Class C | w/o SC5 | -5.50% | -36.71% | -24.51% | ||||||||||
| w/SC4 | -6.43% | -37.33% | -24.51% | |||||||||||
Class R12 | -5.51% | -36.69% | -24.50% | |||||||||||
Class R22 | -5.50% | -36.60% | -24.37% | |||||||||||
Institutional Service Class2 | -5.11% | -36.20% | -23.96% | |||||||||||
Institutional Class2 | -5.15% | -36.10% | -23.81% | |||||||||||
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.
| * | Not annualized. | |
| 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). |
Expense Ratios
| �� | Expense | |||||
| Ratio* | ||||||
| Class A | 1.01% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.45% | |||||
| Class R2 | 1.33% | |||||
| Institutional Service Class | 0.82% | |||||
| Institutional Class | 0.66% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 85
| Shareholder | Nationwide Destination 2040 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2040 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 947.55 | 3.20 | 0.66 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.51 | 3.32 | 0.66 | |||||||||||||||
| Class C | Actual | 1,000.00 | 945.01 | 6.40 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.22 | 6.66 | 1.33 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 944.92 | 5.62 | 1.17 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.01 | 5.85 | 1.17 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 945.01 | 5.10 | 1.06 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.55 | 5.31 | 1.06 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 948.91 | 2.63 | 0.54 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.09 | 2.73 | 0.54 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 948.45 | 1.59 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.17 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
86 Semiannual Report 2009
| Portfolio Summary | Nationwide Destination 2040 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 94 | .6% | ||
| Fixed Income Funds | 4 | .5% | ||
| Money Market Fund | 0 | .9% | ||
| Other assets in excess of liabilities | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 31 | .4% | ||
| Nationwide International Index Fund, Institutional Class | 23 | .2% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .4% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 12 | .4% | ||
| Vanguard Emerging Markets Fund | 5 | .2% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .5% | ||
| Nationwide Bond Index Fund, Institutional Class | 4 | .5% | ||
| Vanguard REIT Fund | 2 | .4% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .1% | ||
| Nationwide Money Market Fund, Institutional Class | 0 | .9% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 87
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2040 Fund
| Mutual Funds 90.3% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 84.9% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 95,403 | $ | 691,674 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 657,117 | 3,522,145 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 218,847 | 2,028,712 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 650,229 | 4,759,674 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 252,504 | 1,881,152 | ||||||
| 12,883,357 | ||||||||
Fixed Income Fund 4.5% (a) | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 62,364 | 676,023 | ||||||
Money Market Fund 0.9% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 134,619 | 134,619 | ||||||
Total Mutual Funds (cost $15,655,368) | 13,693,999 | |||||||
| Exchange Traded Funds 9.7% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 9.7% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 12,517 | $ | 312,049 | |||||
| Vanguard Emerging Markets Fund | 28,711 | 794,433 | ||||||
| Vanguard REIT Fund | 11,644 | 369,464 | ||||||
Total Exchange Traded Funds (cost $1,536,606) | 1,475,946 | |||||||
Total Investments (cost $17,191,974) (c) — 100.0% | 15,169,945 | |||||||
Other assets in excess of liabilities — 0.0% | 1,630 | |||||||
NET ASSETS — 100.0% | $ | 15,171,575 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
88 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2040 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $2,377,509) | $ | 2,167,620 | |||
| Investments in affiliates, at value (cost $14,814,465) | 13,002,325 | ||||
| Total Investments | 15,169,945 | ||||
| Cash | 8,123 | ||||
| Dividends receivable from affiliates | 2,378 | ||||
| Receivable for capital shares issued | 85,245 | ||||
| Total Assets | 15,265,691 | ||||
Liabilities: | |||||
| Payable for investments purchased | 81,551 | ||||
| Payable for capital shares redeemed | 4,473 | ||||
| Accrued expenses and other payables | |||||
| Investment advisory fees | 3,661 | ||||
| Distribution fees | 4,393 | ||||
| Administrative services fees | 38 | ||||
| Total Liabilities | 94,116 | ||||
Net Assets | $ | 15,171,575 | |||
Represented by: | |||||
| Capital | $ | 17,572,411 | |||
| Accumulated net investment loss | (3,847 | ) | |||
| Accumulated net realized losses from investment transactions | (374,960 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (1,812,140 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (209,889 | ) | |||
Net Assets | $ | 15,171,575 | |||
Net Assets: | |||||
| Class A Shares | $ | 1,123,684 | |||
| Class C Shares | 157,825 | ||||
| Class R1 | 1,759,215 | ||||
| Class R2 | 8,398,587 | ||||
| Institutional Service Class Shares | 1,355,138 | ||||
| Institutional Class Shares | 2,377,126 | ||||
| Total | $ | 15,171,575 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 186,295 | ||||
| Class C Shares | 26,119 | ||||
| Class R1 Shares | 292,035 | ||||
| Class R2 Shares | 1,394,539 | ||||
| Institutional Service Class Shares | 224,074 | ||||
| Institutional Class Shares | 392,860 | ||||
| Total | 2,515,922 | ||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 89
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Destination 2040 | |||||
| Fund | |||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.03 | |||
| Class C Shares (a) | $ | 6.04 | |||
| Class R1 Shares | $ | 6.02 | |||
| Class R2 Shares | $ | 6.02 | |||
| Institutional Service Class Shares | $ | 6.05 | |||
| Institutional Class Shares | $ | 6.05 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 6.40 | |||
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.
90 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2040 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 111,503 | |||
| Dividend income from non-affiliates | 36,740 | ||||
| Total Income | 148,243 | ||||
EXPENSES: | |||||
| Investment advisory fees | 16,412 | ||||
| Distribution fees Class A | 1,017 | ||||
| Distribution fees Class C | 687 | ||||
| Distribution fees Class R1 | 3,742 | ||||
| Distribution fees Class R2 | 13,430 | ||||
| Administrative services fees Class A | 346 | ||||
| Administrative services fees Class R1 | 1,109 | ||||
| Administrative services fees Class R2 | 6,235 | ||||
| Administrative services fees Institutional Service Class | 896 | ||||
| Net Expenses | 43,874 | ||||
NET INVESTMENT INCOME | 104,369 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 266,929 | ||||
| Net realized losses from investment transactions with affiliates | (335,609 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (182,430 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (251,110 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 53,858 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 215,589 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 269,447 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 18,337 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 122,706 | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 91
Statements of Changes in Net Assets
| Nationwide Destination 2040 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 104,369 | $ | 53,244 | ||||||
| Net realized losses from investment transactions | (251,110 | ) | (79,524 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 269,447 | (2,372,217 | ) | |||||||
| Change in net assets resulting from operations | 122,706 | (2,398,497 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (10,639 | ) | (8,366 | ) | ||||||
| Class C | (1,367 | ) | (541 | ) | ||||||
| Class R1 | (11,378 | ) | (2,209 | ) | ||||||
| Class R2 | (54,915 | ) | (24,996 | ) | ||||||
| Institutional Service Class | (10,407 | ) | (1,860 | ) | ||||||
| Institutional Class | (19,510 | ) | (27,351 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (2,922 | ) | (161 | ) | ||||||
| Class C | (582 | ) | (1 | ) | ||||||
| Class R1 | (3,696 | ) | (1 | ) | ||||||
| Class R2 | (17,866 | ) | (85 | ) | ||||||
| Institutional Service Class | (2,766 | ) | (1 | ) | ||||||
| Institutional Class | (4,419 | ) | (788 | ) | ||||||
| Change in net assets from shareholder distributions | (140,467 | ) | (66,360 | ) | ||||||
| Change in net assets from capital transactions | 8,177,653 | 8,390,134 | ||||||||
| Change in net assets | 8,159,892 | 5,925,277 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 7,011,683 | 1,086,406 | ||||||||
| End of period | $ | 15,171,575 | $ | 7,011,683 | ||||||
| Accumulated net investment income (loss) at end of period | $ | (3,847 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 492,786 | $ | 1,009,387 | ||||||
| Dividends reinvested | 13,561 | 8,527 | ||||||||
| Cost of shares redeemed | (85,895 | ) | (22,655 | ) | ||||||
| Total Class A | 420,452 | 995,259 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 42,459 | 184,057 | ||||||||
| Dividends reinvested | 1,949 | 542 | ||||||||
| Cost of shares redeemed | (14,930 | ) | – | |||||||
| Total Class C | 29,478 | 184,599 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,235,584 | 687,483 | ||||||||
| Dividends reinvested | 15,074 | 2,210 | ||||||||
| Cost of shares redeemed | (23,184 | ) | (3,296 | ) | ||||||
| Total Class R1 | 1,227,474 | 686,397 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
92 Semiannual Report 2009
| Nationwide Destination 2040 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 4,289,824 | $ | 5,910,121 | ||||||
| Dividends reinvested | 72,781 | 25,080 | ||||||||
| Cost of shares redeemed | (135,166 | ) | (500,488 | ) | ||||||
| Total Class R2 | 4,227,439 | 5,434,713 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 849,689 | 643,385 | ||||||||
| Dividends reinvested | 13,173 | 1,860 | ||||||||
| Cost of shares redeemed | (52,168 | ) | (120 | ) | ||||||
| Total Institutional Service Class | 810,694 | 645,125 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,548,944 | 422,300 | ||||||||
| Dividends reinvested | 23,929 | 28,139 | ||||||||
| Cost of shares redeemed | (110,757 | ) | (6,398 | ) | ||||||
| Total Institutional Class | 1,462,116 | 444,041 | ||||||||
| Change in net assets from capital transactions: | $ | 8,177,653 | $ | 8,390,134 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 87,466 | 112,385 | ||||||||
| Reinvested | 2,330 | 930 | ||||||||
| Redeemed | (14,175 | ) | (2,741 | ) | ||||||
| Total Class A Shares | 75,621 | 110,574 | ||||||||
Class C Shares | ||||||||||
| Issued | 7,379 | 20,796 | ||||||||
| Reinvested | 332 | 63 | ||||||||
| Redeemed | (2,551 | ) | – | |||||||
| Total Class C Shares | 5,160 | 20,859 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 211,597 | 82,062 | ||||||||
| Reinvested | 2,598 | 262 | ||||||||
| Redeemed | (4,164 | ) | (420 | ) | ||||||
| Total R1 Shares | 210,031 | 81,904 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 766,832 | 695,929 | ||||||||
| Reinvested | 12,552 | 2,832 | ||||||||
| Redeemed | (25,008 | ) | (58,770 | ) | ||||||
| Total R2 Shares | 754,376 | 639,991 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 93
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2040 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 150,293 | 80,640 | ||||||||
| Reinvested | 2,272 | 220 | ||||||||
| Redeemed | (9,437 | ) | (14 | ) | ||||||
| Total Institutional Service Class Shares | 143,128 | 80,846 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 260,658 | 45,998 | ||||||||
| Reinvested | 4,141 | 2,953 | ||||||||
| Redeemed | (20,048 | ) | (716 | ) | ||||||
| Total Institutional Class Shares | 244,751 | 48,235 | ||||||||
| Total change in shares: | 1,433,067 | 982,409 | ||||||||
Amounts designated as “ – “ are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
94 Semiannual Report 2009
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2040 Fund
| Operations | Distributions | Ratio/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .48 | 0 | .07 | (0 | .41) | (0 | .34) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 6 | .03 | (5 | .24%) | $ | 1,123,684 | 0 | .66% | 2 | .37% | 0 | .66% | 7 | .01% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .48 | 0 | .05 | (0 | .41) | (0 | .36) | (0 | .06) | (0 | .02) | (0 | .08) | $ | 6 | .04 | (5 | .50%) | $ | 157,825 | 1 | .33% | 1 | .69% | 1 | .33% | 7 | .01% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .47 | 0 | .05 | (0 | .41) | (0 | .36) | (0 | .07) | (0 | .02) | (0 | .09) | $ | 6 | .02 | (5 | .51%) | $ | 1,759,215 | 1 | .17% | 1 | .84% | 1 | .17% | 7 | .01% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .47 | 0 | .06 | (0 | .42) | (0 | .36) | (0 | .07) | (0 | .02) | (0 | .09) | $ | 6 | .02 | (5 | .50%) | $ | 8,398,587 | 1 | .06% | 1 | .97% | 1 | .06% | 7 | .01% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .49 | 0 | .07 | (0 | .41) | (0 | .34) | (0 | .08) | (0 | .02) | (0 | .10) | $ | 6 | .05 | (5 | .11%) | $ | 1,355,138 | 0 | .54% | 2 | .50% | 0 | .54% | 7 | .01% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .50 | 0 | .07 | (0 | .41) | (0 | .34) | (0 | .09) | (0 | .02) | (0 | .11) | $ | 6 | .05 | (5 | .15%) | $ | 2,377,126 | 0 | .33% | 2 | .34% | 0 | .33% | 7 | .01% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 95
| Nationwide Destination 2045 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2045 Fund (Class A at NAV) registered -5.56% versus -3.41% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2045 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2045 Funds (consisting of 102 funds as of April 30, 2009) was -3.72%.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Emerging Markets Stock Index (ETF) and the Nationwide Bond Index Fund (with allocations of approximately 6% and 4%, respectively) provided the most positive relative returns for the overall portfolio, gaining 15.97% and 7.49%, respectively, during the reporting period. After posting some of the worst returns in recent quarters, emerging market equities began to rebound strongly in the first quarter of 2009 and closed the reporting period with double-digit gains. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 31% and 23%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
96 Semiannual Report 2009
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2045 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 31 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 23 | % | -4.35 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | -0.41 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 12 | % | -8.37 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 6 | % | 15.97 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | -15.23 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 4 | % | 7.49 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 3 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Fund* | 2 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 97
| Fund Performance | Nationwide Destination 2045 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -5.56% | -36.71% | -24.46% | ||||||||||
| w/SC3 | -11.05% | -40.32% | -27.09% | |||||||||||
| Class C | w/o SC5 | -5.59% | -36.89% | -24.82% | ||||||||||
| w/SC4 | -6.52% | -37.51% | -24.82% | |||||||||||
Class R12 | -5.56% | -36.87% | -24.82% | |||||||||||
Class R22 | -5.64% | -36.84% | -24.67% | |||||||||||
Institutional Service Class2 | -5.46% | -36.63% | -24.45% | |||||||||||
Institutional Class2 | -5.18% | -36.38% | -24.14% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.05% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.43% | |||||
| Class R2 | 1.29% | |||||
| Institutional Service Class | 0.80% | |||||
| Institutional Class | 0.66% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
98 Semiannual Report 2009
| Shareholder | Nationwide Destination 2045 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 Shareholders Expenses
Expense Analysis of a $1,000 Investment
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2045 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 944.38 | 3.85 | 0.80 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.83 | 4.01 | 0.80 | |||||||||||||||
| Class C | Actual | 1,000.00 | 944.07 | 6.36 | 1.32 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.25 | 6.63 | 1.32 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 944.43 | 5.72 | 1.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.91 | 5.96 | 1.19 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 943.62 | 4.96 | 1.03 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.69 | 5.17 | 1.03 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 945.42 | 2.70 | 0.56 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.02 | 2.81 | 0.56 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 948.23 | 1.57 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.18 | 1.63 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
2009 Semiannual Report 99
| Portfolio Summary | Nationwide Destination 2045 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 95 | .6% | ||
| Fixed Income Funds | 3 | .5% | ||
| Money Market Fund | 0 | .9% | ||
| Liabilities in excess of other assets | (0 | .0)% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .3% | ||
| Nationwide International Index Fund, Institutional Class | 23 | .1% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .3% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 12 | .4% | ||
| Vanguard Emerging Markets Fund | 6 | .3% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .5% | ||
| Vanguard REIT Fund | 3 | .6% | ||
| Nationwide Bond Index Fund, Institutional Class | 3 | .5% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .1% | ||
| Nationwide Money Market Fund, Institutional Class | 0 | .9% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
100 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2045 Fund
| Mutual Funds 88.0% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 83.6% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 37,576 | $ | 272,427 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 258,931 | 1,387,871 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 86,270 | 799,727 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 248,289 | 1,817,477 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 99,538 | 741,556 | ||||||
| 5,019,058 | ||||||||
Fixed Income Fund 3.5%(a) | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 19,674 | 213,261 | ||||||
Money Market Fund 0.9%(a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 53,053 | 53,053 | ||||||
Total Mutual Funds (cost $5,670,106) | 5,285,372 | |||||||
| Exchange Traded Funds 12.0% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 12.0% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 4,955 | 123,528 | ||||||
| Vanguard Emerging Markets Fund | 13,639 | 377,391 | ||||||
| Vanguard REIT Fund | 6,906 | 219,128 | ||||||
Total Exchange Traded Funds (cost $760,102) | 720,047 | |||||||
Total Investments (cost $6,430,208) (c) — 100.0% | 6,005,419 | |||||||
Liabilities in excess of other assets — 0.0% | (2,132 | ) | ||||||
NET ASSETS — 100.0% | $ | 6,003,287 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
2009 Semiannual Report 101
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide Destination 2045 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $1,089,871) | $ | 992,474 | |||
| Investments in affiliates, at value (cost $5,340,337) | 5,012,945 | ||||
| Total Investments | 6,005,419 | ||||
| Cash | 4,732 | ||||
| Dividends receivable from affiliates | 754 | ||||
| Receivable for capital shares issued | 4,228 | ||||
| Receivable for investments sold | 4,066 | ||||
| Other assets | 199 | ||||
| Total Assets | 6,019,398 | ||||
Liabilities: | |||||
| Payable for investments purchased | 4,685 | ||||
| Payable for capital shares redeemed | 8,306 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 1,447 | ||||
| Distribution fees | 1,673 | ||||
| Total Liabilities | 16,111 | ||||
Net Assets | $ | 6,003,287 | |||
Represented by: | |||||
| Capital | $ | 7,215,572 | |||
| Accumulated net investment loss | (1,104 | ) | |||
| Accumulated net realized losses from investment transactions | (786,392 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (327,392 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (97,397 | ) | |||
Net Assets | $ | 6,003,287 | |||
Net Assets: | |||||
| Class A Shares | $ | 588,848 | |||
| Class C Shares | 49,509 | ||||
| Class R1 | 93,137 | ||||
| Class R2 | 3,904,737 | ||||
| Institutional Service Class Shares | 288,278 | ||||
| Institutional Class Shares | 1,078,778 | ||||
| Total | $ | 6,003,287 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 98,431 | ||||
| Class C Shares | 8,284 | ||||
| Class R1 Shares | 15,606 | ||||
| Class R2 Shares | 654,794 | ||||
| Institutional Service Class Shares | 48,248 | ||||
| Institutional Class Shares | 180,076 | ||||
| Total | 1,005,439 | ||||
The accompanying notes are an integral part of these financial statements.
102 Semiannual Report 2009
| Nationwide Destination 2045 | |||||
| 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 | |||
| Class C Shares (a) | $ | 5.98 | |||
| Class R1 Shares | $ | 5.97 | |||
| Class R2 Shares | $ | 5.96 | |||
| Institutional Service Class Shares | $ | 5.97 | |||
| Institutional Class Shares | $ | 5.99 | |||
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) | 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.
2009 Semiannual Report 103
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2045 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 43,158 | |||
| Dividend income from non-affiliates | 17,576 | ||||
| Total Income | 60,734 | ||||
EXPENSES: | |||||
| Investment advisory fees | 6,501 | ||||
| Distribution fees Class A | 483 | ||||
| Distribution fees Class C | 121 | ||||
| Distribution fees Class R1 | 212 | ||||
| Distribution fees Class R2 | 6,043 | ||||
| Administrative services fees Class A | 436 | ||||
| Administrative services fees Class R1 | 70 | ||||
| Administrative services fees Class R2 | 2,433 | ||||
| Administrative services fees Institutional Service Class | 231 | ||||
| Net Expenses | 16,530 | ||||
NET INVESTMENT INCOME | 44,204 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 108,744 | ||||
| Net realized losses from investment transactions with affiliates | (738,712 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (122,884 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (752,852 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 607,299 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 138,683 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 745,982 | ||||
| Net realized/unrealized losses from affiliated and non-affiliated investments | (6,870 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 37,334 | |||
The accompanying notes are an integral part of these financial statements.
104 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Destination 2045 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 44,204 | $ | 32,292 | ||||||
| Net realized gains (losses) from investment transactions | (752,852 | ) | 2,184 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments | 745,982 | (1,256,823 | ) | |||||||
| Change in net assets resulting from operations | 37,334 | (1,222,347 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (4,529 | ) | (1,844 | ) | ||||||
| Class C | (139 | ) | (43 | ) | ||||||
| Class R1 | (732 | ) | (95 | ) | ||||||
| Class R2 | (26,830 | ) | (12,381 | ) | ||||||
| Institutional Service Class | (2,631 | ) | (370 | ) | ||||||
| Institutional Class | (11,336 | ) | (20,428 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (3,117 | ) | (2 | ) | ||||||
| Class C | (46 | ) | (1 | ) | ||||||
| Class R1 | (603 | ) | (1 | ) | ||||||
| Class R2 | (19,905 | ) | (61 | ) | ||||||
| Institutional Service Class | (1,679 | ) | (1 | ) | ||||||
| Institutional Class | (6,626 | ) | (854 | ) | ||||||
| Change in net assets from shareholder distributions | (78,173 | ) | (36,081 | ) | ||||||
| Change in net assets from capital transactions | 2,987,886 | 3,218,036 | ||||||||
| Change in net assets | 2,947,047 | 1,959,608 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 3,056,240 | 1,096,632 | ||||||||
| End of period | $ | 6,003,287 | $ | 3,056,240 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (1,104 | ) | $ | 889 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 293,824 | $ | 412,926 | ||||||
| Dividends reinvested | 7,646 | 1,846 | ||||||||
| Cost of shares redeemed | (18,125 | ) | (3,095 | ) | ||||||
| Total Class A | 283,345 | 411,677 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 40,366 | 6,397 | ||||||||
| Dividends reinvested | 185 | 44 | ||||||||
| Cost of shares redeemed | (20 | ) | – | |||||||
| Total Class C | 40,531 | 6,441 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 34,232 | 77,048 | ||||||||
| Dividends reinvested | 1,335 | 96 | ||||||||
| Cost of shares redeemed | (77 | ) | (3,077 | ) | ||||||
| Total Class R1 | 35,490 | 74,067 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 105
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2045 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 2,307,359 | $ | 2,562,391 | ||||||
| Dividends reinvested | 46,735 | 12,442 | ||||||||
| Cost of shares redeemed | (282,263 | ) | (117,680 | ) | ||||||
| Total Class R2 | 2,071,831 | 2,457,153 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 224,355 | 191,393 | ||||||||
| Dividends reinvested | 4,310 | 371 | ||||||||
| Cost of shares redeemed | (86,009 | ) | (20,814 | ) | ||||||
| Total Institutional Service Class | 142,656 | 170,950 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 480,986 | 89,304 | ||||||||
| Dividends reinvested | 17,962 | 21,282 | ||||||||
| Cost of shares redeemed | (84,915 | ) | (12,838 | ) | ||||||
| Total Institutional Class | 414,033 | 97,748 | ||||||||
| Change in net assets from capital transactions: | $ | 2,987,886 | $ | 3,218,036 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 52,925 | 47,312 | ||||||||
| Reinvested | 1,324 | 214 | ||||||||
| Redeemed | (3,115 | ) | (386 | ) | ||||||
| Total Class A Shares | 51,134 | 47,140 | ||||||||
Class C Shares | ||||||||||
| Issued | 7,484 | 665 | ||||||||
| Reinvested | 33 | 5 | ||||||||
| Redeemed | (3 | ) | – | |||||||
| Total Class C Shares | 7,514 | 670 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 6,276 | 9,476 | ||||||||
| Reinvested | 230 | 11 | ||||||||
| Redeemed | (13 | ) | (474 | ) | ||||||
| Total R1 Shares | 6,493 | 9,013 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 422,404 | 292,840 | ||||||||
| Reinvested | 8,084 | 1,415 | ||||||||
| Redeemed | (57,696 | ) | (12,825 | ) | ||||||
| Total R2 Shares | 372,792 | 281,430 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 40,063 | 24,967 | ||||||||
| Reinvested | 748 | 44 | ||||||||
| Redeemed | (15,348 | ) | (2,326 | ) | ||||||
| Total Institutional Service Class Shares | 25,463 | 22,685 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
106 Semiannual Report 2009
| Nationwide Destination 2045 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 82,189 | 10,020 | ||||||||
| Reinvested | 3,110 | 2,233 | ||||||||
| Redeemed | (15,822 | ) | (1,532 | ) | ||||||
| Total Institutional Class Shares | 69,477 | 10,721 | ||||||||
| Total change in shares: | 532,873 | 371,659 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 107
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2045 Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .48 | 0 | .06 | (0 | .42) | (0 | .36) | (0 | .08) | (0 | .06) | (0 | .14) | $ | 5 | .98 | (5 | .56%) | $ | 588,848 | 0 | .80% | 2 | .29% | 0 | .80% | 20 | .49% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .47 | 0 | .02 | (0 | .39) | (0 | .37) | (0 | .06) | (0 | .06) | (0 | .12) | $ | 5 | .98 | (5 | .59%) | $ | 49,509 | 1 | .32% | 0 | .75% | 1 | .32% | 20 | .49% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .46 | 0 | .06 | (0 | .42) | (0 | .36) | (0 | .07) | (0 | .06) | (0 | .13) | $ | 5 | .97 | (5 | .56%) | $ | 93,137 | 1 | .19% | 2 | .12% | 1 | .19% | 20 | .49% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .46 | 0 | .06 | (0 | .43) | (0 | .37) | (0 | .07) | (0 | .06) | (0 | .13) | $ | 5 | .96 | (5 | .64%) | $ | 3,904,737 | 1 | .03% | 2 | .06% | 1 | .03% | 20 | .49% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .47 | 0 | .08 | (0 | .44) | (0 | .36) | (0 | .08) | (0 | .06) | (0 | .14) | $ | 5 | .97 | (5 | .46%) | $ | 288,278 | 0 | .56% | 2 | .75% | 0 | .56% | 20 | .49% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .48 | 0 | .07 | (0 | .41) | (0 | .34) | (0 | .09) | (0 | .06) | (0 | .15) | $ | 5 | .99 | (5 | .18%) | $ | 1,078,778 | 0 | .33% | 2 | .63% | 0 | .33% | 20 | .49% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
108 Semiannual Report 2009
| Nationwide Destination 2050 Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Destination 2050 Fund (Class A at NAV) registered -4.54% versus -3.41% for its composite benchmark, the Dow Jones (DJ) U.S. Target 2050 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target 2050+ Funds (consisting of 137 funds as of April 30, 2009) was -3.95%.
What areas of investment provided the most positive relative returns for the Fund?
The Vanguard Emerging Markets Stock Index (ETF) and the Nationwide Bond Index Fund (with allocations of approximately 6% and 4%, respectively) provided the most positive returns for the overall portfolio, gaining 15.97% and 7.49%, respectively. After posting some of the worst returns in recent quarters, emerging market equities began to rebound strongly in the first quarter of 2009 and closed the reporting period with double-digit gains. The broad fixed-income market investments that make up the portfolio of the Nationwide Bond Index Fund showed strength amid the generally risk-averse market environment that prevailed during the reporting period.
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, -4.35%, (with allocations of approximately 29% and 25%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
2009 Semiannual Report 109
Nationwide Destination 2050 Fund
Continued
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Destination 2050 Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Target | Six-Month | |||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 29 | % | -8.64 | % | |||||||
| International Stocks | Nationwide International Index Fund | 25 | % | -4.35 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | -0.41 | % | |||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 12 | % | -8.37 | % | |||||||
| Emerging Market Stocks | Vanguard Emerging Markets Fund* | 6 | % | 15.97 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | -15.23 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 4 | % | 7.49 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 3 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 2 | % | -9.83 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.20 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
110 Semiannual Report 2009
| Fund Performance | Nationwide Destination 2050 Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | -4.54% | -36.25% | -24.07% | ||||||||||
| w/SC3 | -10.01% | -39.91% | -26.71% | |||||||||||
| Class C | w/o SC5 | -5.10% | -37.00% | -24.78% | ||||||||||
| w/SC4 | -6.03% | -37.62% | -24.78% | |||||||||||
Class R12 | -4.98% | -36.72% | -24.59% | |||||||||||
Class R22 | -4.95% | -36.72% | -24.50% | |||||||||||
Institutional Service Class2 | -4.60% | -36.36% | -24.10% | |||||||||||
Institutional Class2 | -4.60% | -36.24% | -23.92% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 0.98% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.50% | |||||
| Class R2 | 1.34% | |||||
| Institutional Service Class | 0.82% | |||||
| Institutional Class | 0.66% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 equity securities with available pricing data that is representative of the performance of the broad U.S. equity market. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
2009 Semiannual Report 111
| Shareholder | Nationwide Destination 2050 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2050 Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 954.60 | 3.86 | 0.80 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.84 | 4.00 | 0.80 | |||||||||||||||
| Class C | Actual | 1,000.00 | 949.04 | 6.41 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.22 | 6.66 | 1.33 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 950.15 | 6.43 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.20 | 6.68 | 1.33 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 950.48 | 5.17 | 1.07 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.50 | 5.36 | 1.07 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 954.00 | 2.82 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.91 | 2.92 | 0.58 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 954.00 | 1.59 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.17 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
112 Semiannual Report 2009
| Portfolio Summary | Nationwide Destination 2050 Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 95 | .7% | ||
| Fixed Income Funds | 3 | .5% | ||
| Money Market Fund | 0 | .9% | ||
| Liabilities in excess of other assets | (0 | .1)% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 28 | .3% | ||
| Nationwide International Index Fund, Institutional Class | 25 | .1% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .3% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 12 | .3% | ||
| Vanguard Emerging Markets Fund | 6 | .3% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .5% | ||
| Vanguard REIT Fund | 3 | .7% | ||
| Nationwide Bond Index Fund, Institutional Class | 3 | .5% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .1% | ||
| Nationwide Money Market Fund, Institutional Class | 0 | .9% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 113
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Destination 2050 Fund
| Mutual Funds 88.0% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 83.6% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 80,678 | $ | 584,918 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 606,013 | 3,248,229 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 185,781 | 1,722,190 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 499,489 | 3,656,261 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 214,403 | 1,597,303 | ||||||
| 10,808,901 | ||||||||
Fixed Income Fund 3.5% (a) | ||||||||
| Nationwide Bond Index Fund, Institutional Class | 42,161 | 457,021 | ||||||
Money Market Fund 0.9% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 113,694 | 113,694 | ||||||
Total Mutual Funds (cost $11,301,840) | 11,379,616 | |||||||
| Exchange Traded Funds 12.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 12.1% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 10,741 | 267,773 | ||||||
| Vanguard Emerging Markets Fund | 29,448 | 814,826 | ||||||
| Vanguard REIT Fund | 15,107 | 479,345 | ||||||
Total Exchange Traded Funds (cost $1,337,413) | 1,561,944 | |||||||
Total Investments (cost $12,639,253) (c) — 100.1% | 12,941,560 | |||||||
Liabilities in excess of other assets — (0.1)% | (10,640 | ) | ||||||
NET ASSETS — 100.0% | $ | 12,930,920 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
114 Semiannual Report 2009
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2050 | |||||
| Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $1,945,044) | $ | 2,146,862 | |||
| Investments in affiliates, at value (cost $10,694,209) | 10,794,698 | ||||
| Total Investments | 12,941,560 | ||||
| Dividends receivable from affiliates | 1,672 | ||||
| Receivable for capital shares issued | 19,007 | ||||
| Receivable for investments sold | 39,210 | ||||
| Total Assets | 13,001,449 | ||||
Liabilities: | |||||
| Cash overdraft | 6,186 | ||||
| Payable for investments purchased | 444 | ||||
| Payable for capital shares redeemed | 55,849 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 3,288 | ||||
| Distribution fees | 2,926 | ||||
| Administrative services fees | 1,836 | ||||
| Total Liabilities | 70,529 | ||||
Net Assets | $ | 12,930,920 | |||
Represented by: | |||||
| Capital | $ | 13,268,398 | |||
| Accumulated net investment loss | (2,303 | ) | |||
| Accumulated net realized losses from investment transactions | (637,482 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 100,489 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 201,818 | ||||
Net Assets | $ | 12,930,920 | |||
Net Assets: | |||||
| Class A Shares | $ | 7,743,052 | |||
| Class C Shares | 7,383 | ||||
| Class R1 | 355,116 | ||||
| Class R2 | 3,111,271 | ||||
| Institutional Service Class Shares | 797,625 | ||||
| Institutional Class Shares | 916,473 | ||||
| Total | $ | 12,930,920 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,295,486 | ||||
| Class C Shares | 1,238 | ||||
| Class R1 Shares | 59,529 | ||||
| Class R2 Shares | 522,673 | ||||
| Institutional Service Class Shares | 133,447 | ||||
| Institutional Class Shares | 153,211 | ||||
| Total | 2,165,584 | ||||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 115
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Destination 2050 | |||||
| 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 | |||
| Class C Shares (a) | $ | 5.96 | |||
| Class R1 Shares | $ | 5.97 | |||
| Class R2 Shares | $ | 5.95 | |||
| Institutional Service Class Shares | $ | 5.98 | |||
| Institutional Class Shares | $ | 5.98 | |||
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) | 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.
116 Semiannual Report 2009
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Destination 2050 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 64,545 | |||
| Dividend income from non-affiliates | 26,426 | ||||
| Total Income | 90,971 | ||||
EXPENSES: | |||||
| Investment advisory fees | 10,615 | ||||
| Distribution fees Class A | 3,351 | ||||
| Distribution fees Class C | 34 | ||||
| Distribution fees Class R1 | 978 | ||||
| Distribution fees Class R2 | 5,419 | ||||
| Administrative services fees Class A | 3,050 | ||||
| Administrative services fees Class R1 | 533 | ||||
| Administrative services fees Class R2 | 2,636 | ||||
| Administrative services fees Institutional Service Class | 662 | ||||
| Net Expenses | 27,278 | ||||
NET INVESTMENT INCOME | 63,693 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 122,350 | ||||
| Net realized losses from investment transactions with affiliates | (455,406 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (218,306 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (551,362 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 1,063,333 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 473,937 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,537,270 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 985,908 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,049,601 | |||
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 117
Statements of Changes in Net Assets
| Nationwide Destination 2050 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 63,693 | $ | 31,267 | ||||||
| Net realized losses from investment transactions | (551,362 | ) | (48,073 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,537,270 | (1,325,718 | ) | |||||||
| Change in net assets resulting from operations | 1,049,601 | (1,342,524 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (16,965 | ) | (2,585 | ) | ||||||
| Class C | (74 | ) | (44 | ) | ||||||
| Class R1 | (3,454 | ) | (1,151 | ) | ||||||
| Class R2 | (26,541 | ) | (10,330 | ) | ||||||
| Institutional Service Class | (6,904 | ) | (1,817 | ) | ||||||
| Institutional Class | (12,059 | ) | (29,198 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (1,324 | ) | (26 | ) | ||||||
| Class C | (42 | ) | (1 | ) | ||||||
| Class R1 | (2,060 | ) | (1 | ) | ||||||
| Class R2 | (13,102 | ) | (9 | ) | ||||||
| Institutional Service Class | (2,929 | ) | (1 | ) | ||||||
| Institutional Class | (4,746 | ) | (509 | ) | ||||||
| Change in net assets from shareholder distributions | (90,200 | ) | (45,672 | ) | ||||||
| Change in net assets from capital transactions | 8,582,874 | 3,614,617 | ||||||||
| Change in net assets | 9,542,275 | 2,226,421 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 3,388,645 | 1,162,224 | ||||||||
| End of period | $ | 12,930,920 | $ | 3,388,645 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (2,303 | ) | $ | 1 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 6,902,426 | $ | 279,564 | ||||||
| Dividends reinvested | 18,289 | 2,611 | ||||||||
| Cost of shares redeemed | (427,931 | ) | (49,574 | ) | ||||||
| Total Class A | 6,492,784 | 232,601 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 1,406 | 18,154 | ||||||||
| Dividends reinvested | 116 | 44 | ||||||||
| Cost of shares redeemed | – | (9,295 | ) | |||||||
| Total Class C | 1,522 | 8,903 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 52,978 | 430,694 | ||||||||
| Dividends reinvested | 5,514 | 1,152 | ||||||||
| Cost of shares redeemed | (2,412 | ) | (1,703 | ) | ||||||
| Total Class R1 | 56,080 | 430,143 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
118 Semiannual Report 2009
| Nationwide Destination 2050 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 1,288,409 | $ | 2,831,852 | ||||||
| Dividends reinvested | 39,643 | 10,339 | ||||||||
| Cost of shares redeemed | (3,371 | ) | (456,335 | ) | ||||||
| Total Class R2 | 1,324,681 | 2,385,856 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 604,865 | 489,188 | ||||||||
| Dividends reinvested | 9,833 | 1,818 | ||||||||
| Cost of shares redeemed | (144,013 | ) | (42,289 | ) | ||||||
| Total Institutional Service Class | 470,685 | 448,717 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 228,952 | 85,645 | ||||||||
| Dividends reinvested | 16,805 | 29,707 | ||||||||
| Cost of shares redeemed | (8,635 | ) | (6,955 | ) | ||||||
| Total Institutional Class | 237,122 | 108,397 | ||||||||
| Change in net assets from capital transactions: | $ | 8,582,874 | $ | 3,614,617 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,336,658 | 31,394 | ||||||||
| Reinvested | 3,335 | 284 | ||||||||
| Redeemed | (75,825 | ) | (5,265 | ) | ||||||
| Total Class A Shares | 1,264,168 | 26,413 | ||||||||
Class C Shares | ||||||||||
| Issued | 166 | 1,895 | ||||||||
| Reinvested | 20 | 5 | ||||||||
| Redeemed | – | (948 | ) | |||||||
| Total Class C Shares | 186 | 952 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 9,783 | 49,235 | ||||||||
| Reinvested | 952 | 138 | ||||||||
| Redeemed | (428 | ) | (251 | ) | ||||||
| Total R1 Shares | 10,307 | 49,122 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 232,905 | 332,471 | ||||||||
| Reinvested | 6,878 | 1,183 | ||||||||
| Redeemed | (626 | ) | (51,354 | ) | ||||||
| Total R2 Shares | 239,157 | 282,300 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 108,264 | 57,184 | ||||||||
| Reinvested | 1,708 | 216 | ||||||||
| Redeemed | (29,154 | ) | (4,871 | ) | ||||||
| Total Institutional Service Class Shares | 80,818 | 52,529 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 119
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2050 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 39,933 | 9,403 | ||||||||
| Reinvested | 2,918 | 3,069 | ||||||||
| Redeemed | (1,600 | ) | (765 | ) | ||||||
| Total Institutional Class Shares | 41,251 | 11,707 | ||||||||
| Total change in shares: | 1,635,887 | 423,023 | ||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
120 Semiannual Report 2009
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2050 Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Investment | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Income | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | (Loss) to | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .42 | 0 | .04 | (0 | .34) | (0 | .30) | (0 | .10) | (0 | .04) | (0 | .14) | $ | 5 | .98 | (4 | .54%) | $ | 7,743,052 | 0 | .80% | 1 | .42% | 0 | .80% | 12 | .18% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .40 | 0 | .05 | (0 | .38) | (0 | .33) | (0 | .07) | (0 | .04) | (0 | .11) | $ | 5 | .96 | (5 | .10%) | $ | 7,383 | 1 | .33% | 1 | .96% | 1 | .33% | 12 | .18% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .40 | 0 | .06 | (0 | .38) | (0 | .32) | (0 | .07) | (0 | .04) | (0 | .11) | $ | 5 | .97 | (4 | .98%) | $ | 355,116 | 1 | .33% | 2 | .19% | 1 | .33% | 12 | .18% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .39 | 0 | .06 | (0 | .38) | (0 | .32) | (0 | .08) | (0 | .04) | (0 | .12) | $ | 5 | .95 | (4 | .95%) | $ | 3,111,271 | 1 | .07% | 2 | .22% | 1 | .07% | 12 | .18% | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .41 | 0 | .06 | (0 | .36) | (0 | .30) | (0 | .09) | (0 | .04) | (0 | .13) | $ | 5 | .98 | (4 | .60%) | $ | 797,625 | 0 | .58% | 2 | .08% | 0 | .58% | 12 | .18% | |||||||||||||||||||||||||||||||||||||||||
| 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 4(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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 6 | .42 | 0 | .08 | (0 | .38) | (0 | .30) | (0 | .10) | (0 | .04) | (0 | .14) | $ | 5 | .98 | (4 | .60%) | $ | 916,473 | 0 | .33% | 3 | .01% | 0 | .33% | 12 | .18% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
2009 Semiannual Report 121
| Nationwide Retirement Income Fund |
How did the Fund perform during the reporting period in relation to its benchmark and its peer group?
For the semiannual period ended April 30, 2009, the Nationwide Retirement Income Fund (Class A at NAV) returned 2.58% versus 6.78% for its composite benchmark, the Dow Jones (DJ) U.S. Target Today Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mixed-Asset Target Allocation Conservative Funds (consisting of 451 funds as of April 30, 2009) was 1.72%.
What areas of investment provided the most positive relative returns for the Fund?
The iShares Barclays TIPS Bond ETF and the Vanguard Short-Term Bond Index ETF (with allocations of approximately 24% and 18%, respectively) provided the most positive relative returns for the overall portfolio, gaining 9.44% and 5.02%, respectively, during the reporting period. Concerns over the potential inflationary impact of U.S. government economic stimulus actions drove up the values of inflation-protected securities, as reflected in the strong performance of the iShares Barclays TIPS Bond ETF. As risk aversion in the U.S. markets dominated the reporting period, the Vanguard Short-Term Bond Index ETF benefited from its large allocation to U.S. Treasury and government Agency bonds (more than 70% of the portfolio at the end of the period) and high credit quality (approximately 75% of the portfolio was rated Aaa by Moody’s Investors Service at the end of the reporting period).
What areas of investment detracted from Fund performance?
The declines posted by the Nationwide S&P 500 Index Fund, with -8.64%, and the Nationwide International Index Fund, with -4.35%, (with allocations of approximately 18% and 5%, respectively) proved to be the largest negative contributions to the overall portfolio during the reporting period. Four of the 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns, with the information technology sector leading the way with a gain of 5.61%. Coincidentally, four of the 10 sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index also recorded positive returns; the materials sector was the best performer, with 8.99%. By contrast, the health-care sector within the MSCI EAFE Index posted the weakest results, with -13.04% for the reporting period.
What is your outlook for the near term?
The unprecedented decline in equity markets has begun to abate; we have seen some significant gains from the middle of March 2009 onward. This is a cause for optimism, although overall financial conditions are still tenuous. This optimism, however, should be tempered with caution, because the rebound in the financial markets does not signal an end to the U.S. recession. The road back to a less volatile economic picture still lies mostly ahead of us. The market environment suggests that long-term investing and portfolio diversification may provide shareholders with a positive option for the near future.
122 Semiannual Report 2009
The table below lists the target allocation (as of April 30, 2009) 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.
Nationwide Retirement Income Fund
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
Performance of Underlying Investments for the Six-Months Ended April 30, 2009
| Six-Month | ||||||||||||
| Asset Class | Underlying Investment | Allocation | Return | |||||||||
| Inflation-Protected Bonds | iShares Barclays U.S. Treasury Inflation Protection Securities Bond Index* | 24 | % | 9.44 | % | |||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 18 | % | -8.64 | % | |||||||
| Short-Term Bonds | Vanguard Short Term Bond Fund* | 18 | % | 5.02 | % | |||||||
| Money Market Investments | Nationwide Money Market Fund | 11 | % | 0.20 | % | |||||||
| International Bonds | Oppenheimer International Bond Fund | 8 | % | 8.13 | % | |||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 7 | % | 7.49 | % | |||||||
| International Stocks | Nationwide International Index Fund | 5 | % | -4.35 | % | |||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 3 | % | -15.23 | % | |||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 2 | % | -0.41 | % | |||||||
| High-Yield Bonds | T. Rowe Price High Yield Bond Fund | 2 | % | 10.36 | % | |||||||
| Domestic REITs | Vanguard REIT Fund* | 1 | % | -19.78 | % | |||||||
| International REITs | SPDR Dow Jones Wilshire International Real Estate Fund* | 1 | % | -9.83 | % | |||||||
| * | Exchange Traded Fund |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. 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 nationwide.com/mutualfunds.
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.
Portfolio Manager:
Thomas R. Hickey Jr.
Thomas R. Hickey Jr.
2009 Semiannual Report 123
| Fund Performance | Nationwide Retirement Income Fund |
Average Annual Total Return
For period ended April 30, 2009
For period ended April 30, 2009
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC5 | 2.58% | -13.08% | -5.55% | ||||||||||
| w/SC3 | -3.29% | -18.12% | -8.84% | |||||||||||
| Class C | w/o SC5 | 2.38% | -13.48% | -6.06% | ||||||||||
| w/SC4 | 1.38% | -14.33% | -6.06% | |||||||||||
Class R12 | 2.30% | -13.38% | -5.94% | |||||||||||
Class R22 | 2.46% | -13.15% | -5.72% | |||||||||||
Institutional Service Class2 | 2.69% | -12.80% | -5.35% | |||||||||||
Institutional Class2 | 2.87% | -12.59% | -5.04% | |||||||||||
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 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). |
Expense Ratios
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.03% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.48% | |||||
| Class R2 | 1.25% | |||||
| Institutional Service Class | 0.84% | |||||
| Institutional Class | 0.66% | |||||
| * | Annualized data as of October 31, 2008. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. Annualized expense ratios for the six-month period ending April 30, 2009 appear in the “Shareholder Expense Example” section of the report. |
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 Barclays Capital 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 Barclays Capital subindexes represent the bond and cash components. No fees or expenses are reflected. Individuals cannot invest directly in an index. | |
| (b) | The Barclays Capital 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 more) that is generally representative of the bond market as a whole. | |
| (c) | Calculated by the U.S. Department of Labor’s Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. |
124 Semiannual Report 2009
| Shareholder | Nationwide Retirement 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
April 30, 2009
Expense Analysis of a $1,000 Investment
April 30, 2009
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Retirement Income Fund | 11/01/08 | 04/30/09 | 11/01/08 - 04/30/09 a,b | 11/01/08 - 04/30/09 a,b | ||||||||||||||||
| Class A | Actual | 1,000.00 | 1,025.81 | 2.97 | 0.59 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.86 | 2.97 | 0.59 | |||||||||||||||
| Class C | Actual | 1,000.00 | 1,023.83 | 6.26 | 1.25 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.61 | 6.26 | 1.25 | |||||||||||||||
| Class R1 | Actual | 1,000.00 | 1,023.03 | 6.51 | 1.30 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.36 | 6.52 | 1.30 | |||||||||||||||
| Class R2 | Actual | 1,000.00 | 1,024.64 | 4.92 | 0.98 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.94 | 4.92 | 0.98 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 1,026.88 | 3.20 | 0.64 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.64 | 3.19 | 0.64 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,028.72 | 1.65 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.65 | 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 Securities and Exchange Commission guidelines. | |
| b | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds’ expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. | |
| c | Represents the hypothetical 5% return before expenses. |
2009 Semiannual Report 125
| Portfolio Summary | Nationwide Retirement Income Fund |
April 30, 2009 (Unaudited)
| Asset Allocation | ||||
| Fixed Income Funds | 56 | .9% | ||
| Equity Funds | 32 | .5% | ||
| Money Market Fund | 10 | .6% | ||
| Other assets in excess of liabilities | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings | ||||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 22 | .6% | ||
| Nationwide S&P 500 Index Fund, Institutional Class | 19 | .2% | ||
| Vanguard Short-Term Bond Fund | 17 | .5% | ||
| Nationwide Money Market Fund, Institutional Class | 10 | .6% | ||
| Oppenheimer International Bond Fund, Class Y | 7 | .9% | ||
| Nationwide Bond Index Fund, Institutional Class | 6 | .8% | ||
| Nationwide International Index Fund, Institutional Class | 5 | .5% | ||
| Credit Suisse Commodity Return Strategy Fund | 3 | .0% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 2 | .3% | ||
| T. Rowe Price High Yield Bond Fund | 2 | .1% | ||
| Other | 2 | .5% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
126 Semiannual Report 2009
Statement of Investments
April 30, 2009 (Unaudited)
Nationwide Retirement Income Fund
| Mutual Funds 57.4% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 30.0% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 39,968 | $ | 289,770 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 99,882 | 535,365 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 23,551 | 218,318 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 255,662 | 1,871,442 | ||||||
| 2,914,895 | ||||||||
Fixed Income Funds 16.8% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 60,957 | 660,770 | ||||||
| Oppenheimer International Bond Fund, Class Y | 134,790 | 772,349 | ||||||
| T. Rowe Price High Yield Bond Fund | 26,017 | 202,152 | ||||||
| 1,635,271 | ||||||||
Money Market Fund 10.6% (a)(b) | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.01% | 1,033,163 | 1,033,163 | ||||||
Total Mutual Funds (cost $5,844,966) | 5,583,329 | |||||||
| Exchange Traded Funds 42.6% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 2.5% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 4,405 | 109,817 | ||||||
| Vanguard REIT Fund | 4,086 | 129,649 | ||||||
| 239,466 | ||||||||
Fixed Income Funds 40.1% | ||||||||
| iShares Barclay U.S. Treasury Inflation Protected Securities Bond Fund | 21,944 | 2,204,055 | ||||||
| Vanguard Short-Term Bond Fund | 21,545 | 1,702,055 | ||||||
| 3,906,110 | ||||||||
Total Exchange Traded Funds (cost $4,180,512) | 4,145,576 | |||||||
Total Investments (cost $10,025,478) (c) — 100.0% | 9,728,905 | |||||||
Other assets in excess of liabilities — 0.0% | 809 | |||||||
NET ASSETS — 100.0% | $ | 9,729,714 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2009. | |
| (c) | 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.
2009 Semiannual Report 127
Statement of Assets and Liabilities
April 30, 2009 (Unaudited)
| Nationwide | |||||
| Retirement | |||||
| Income Fund | |||||
Assets: | |||||
| Investments in non-affiliates, at value (cost $5,523,735) | $ | 5,409,847 | |||
| Investments in affiliates, at value (cost $4,501,743) | 4,319,058 | ||||
| Total Investments | 9,728,905 | ||||
| Dividends receivable from affiliates | 2,366 | ||||
| Dividends receivable from non-affiliates | 2,902 | ||||
| Receivable for capital shares issued | 4,263 | ||||
| Receivable for investments sold | 35,547 | ||||
| Total Assets | 9,773,983 | ||||
Liabilities: | |||||
| Cash overdraft | 34,136 | ||||
| Payable for investments purchased | 2,932 | ||||
| Payable for capital shares redeemed | 1,785 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 2,479 | ||||
| Distribution fees | 2,068 | ||||
| Administrative services fees | 869 | ||||
| Total Liabilities | 44,269 | ||||
Net Assets | $ | 9,729,714 | |||
Represented by: | |||||
| Capital | $ | 10,497,989 | |||
| Accumulated undistributed net investment income | 14,147 | ||||
| Accumulated net realized losses from investment transactions | (485,849 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (182,685 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | (113,888 | ) | |||
Net Assets | $ | 9,729,714 | |||
Net Assets: | |||||
| Class A Shares | $ | 1,182,101 | |||
| Class C Shares | 901 | ||||
| Class R1 | 1,704,395 | ||||
| Class R2 | 2,581,701 | ||||
| Institutional Service Class Shares | 1,699,801 | ||||
| Institutional Class Shares | 2,560,815 | ||||
| Total | $ | 9,729,714 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 136,740 | ||||
| Class C Shares | 104 | ||||
| Class R1 Shares | 197,458 | ||||
| Class R2 Shares | 299,703 | ||||
| Institutional Service Class Shares | 196,727 | ||||
| Institutional Class Shares | 296,153 | ||||
| Total | 1,126,885 | ||||
The accompanying notes are an integral part of these financial statements.
128 Semiannual Report 2009
| Nationwide | |||||
| Retirement | |||||
| Income Fund | |||||
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 C Shares (a) | $ | 8.63 | (b) | ||
| Class R1 Shares | $ | 8.63 | |||
| Class R2 Shares | $ | 8.61 | |||
| Institutional Service Class Shares | $ | 8.64 | |||
| Institutional Class Shares | $ | 8.65 | |||
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 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 April 30, 2009. |
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 129
Statement of Operations
For the Six Months Ended April 30, 2009 (Unaudited)
| Nationwide | |||||
| Retirement | |||||
| Income Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 36,341 | |||
| Dividend income from non-affiliates | 61,587 | ||||
| Total Income | 97,928 | ||||
EXPENSES: | |||||
| Investment advisory fees | 11,579 | ||||
| Distribution fees Class A | 538 | ||||
| Distribution fees Class C | 4 | ||||
| Distribution fees Class R1 | 4,905 | ||||
| Distribution fees Class R2 | 5,036 | ||||
| Administrative services fees Class A | 39 | ||||
| Administrative services fees Class R1 | 2,419 | ||||
| Administrative services fees Class R2 | 1,543 | ||||
| Administrative services fees Institutional Service Class | 2,560 | ||||
| Net Expenses | 28,623 | ||||
NET INVESTMENT INCOME | 69,305 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying affiliated funds | 31,194 | ||||
| Net realized gain distributions from underlying non-affiliated funds | 3,645 | ||||
| Net realized losses from investment transactions with affiliates | (270,522 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (122,125 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (357,808 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 289,010 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 336,656 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 625,666 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 267,858 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 337,163 | |||
The accompanying notes are an integral part of these financial statements.
130 Semiannual Report 2009
Statements of Changes in Net Assets
| Nationwide Retirement Income Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 69,305 | $ | 112,105 | ||||||
| Net realized losses from investment transactions | (357,808 | ) | (90,676 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | 625,666 | (953,125 | ) | |||||||
| Change in net assets resulting from operations | 337,163 | (931,696 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (4,565 | ) | (423 | ) | ||||||
| Class C | (7 | ) | (25 | ) | ||||||
| Class R1 | (11,280 | ) | (16,255 | ) | ||||||
| Class R2 | (18,648 | ) | (27,914 | ) | ||||||
| Institutional Service Class | (19,688 | ) | (18,792 | ) | ||||||
| Institutional Class | (18,213 | ) | (35,788 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (151 | ) | (1 | ) | ||||||
| Class C | (6 | ) | (1 | ) | ||||||
| Class R1 | (9,224 | ) | (1 | ) | ||||||
| Class R2 | (9,939 | ) | (57 | ) | ||||||
| Institutional Service Class | (10,981 | ) | (1 | ) | ||||||
| Institutional Class | (5,464 | ) | (468 | ) | ||||||
| Change in net assets from shareholder distributions | (108,166 | ) | (99,726 | ) | ||||||
| Change in net assets from capital transactions | 3,770,046 | 5,724,103 | ||||||||
| Change in net assets | 3,999,043 | 4,692,681 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 5,730,671 | 1,037,990 | ||||||||
| End of period | $ | 9,729,714 | $ | 5,730,671 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 14,147 | $ | 17,243 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,126,801 | $ | 27,463 | ||||||
| Dividends reinvested | 4,716 | 424 | ||||||||
| Cost of shares redeemed | (17,795 | ) | (252 | ) | ||||||
| Total Class A | 1,113,722 | 27,635 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 13 | 26 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class C | 13 | 26 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 262,724 | 1,984,810 | ||||||||
| Dividends reinvested | 20,504 | 16,256 | ||||||||
| Cost of shares redeemed | (214,509 | ) | (107,470 | ) | ||||||
| Total Class R1 | 68,719 | 1,893,596 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 131
Statements of Changes in Net Assets (Continued)
| Nationwide Retirement Income Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 1,712,361 | $ | 3,831,556 | ||||||
| Dividends reinvested | 28,587 | 27,971 | ||||||||
| Cost of shares redeemed | (777,484 | ) | (1,963,981 | ) | ||||||
| Total Class R2 | 963,464 | 1,895,546 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 765,786 | 2,128,462 | ||||||||
| Dividends reinvested | 30,669 | 18,792 | ||||||||
| Cost of shares redeemed | (713,872 | ) | (283,066 | ) | ||||||
| Total Institutional Service Class | 82,583 | 1,864,188 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,573,644 | 6,859 | ||||||||
| Dividends reinvested | 23,677 | 36,256 | ||||||||
| Cost of shares redeemed | (55,776 | ) | (3 | ) | ||||||
| Total Institutional Class | 1,541,545 | 43,112 | ||||||||
| Change in net assets from capital transactions: | $ | 3,770,046 | $ | 5,724,103 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 135,452 | 2,745 | ||||||||
| Reinvested | 560 | 43 | ||||||||
| Redeemed | (2,135 | ) | (25 | ) | ||||||
| Total Class A Shares | 133,877 | 2,763 | ||||||||
Class C Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 1 | 3 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class C Shares | 1 | 3 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 30,726 | 199,374 | ||||||||
| Reinvested | 2,388 | 1,687 | ||||||||
| Redeemed | (25,279 | ) | (11,538 | ) | ||||||
| Total R1 Shares | 7,835 | 189,523 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 202,332 | 383,608 | ||||||||
| Reinvested | 3,341 | 2,855 | ||||||||
| Redeemed | (91,386 | ) | (201,147 | ) | ||||||
| Total R2 Shares | 114,287 | 185,316 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 91,221 | 214,637 | ||||||||
| Reinvested | 3,573 | 1,939 | ||||||||
| Redeemed | (85,731 | ) | (29,012 | ) | ||||||
| Total Institutional Service Class Shares | 9,063 | 187,564 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
132 Semiannual Report 2009
| Nationwide Retirement Income Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2009 | October 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 195,697 | 769 | ||||||||
| Reinvested | 2,774 | 3,629 | ||||||||
| Redeemed | (6,597 | ) | – | |||||||
| Total Institutional Class Shares | 191,874 | 4,398 | ||||||||
| Total change in shares: | 456,937 | 569,567 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2009 Semiannual Report 133
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Retirement Income Fund
| Operations | Distributions | Ratio / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 8 | .56 | 0 | .08 | 0 | .14 | 0 | .22 | (0 | .09) | (0 | .05) | (0 | .14) | $ | 8 | .64 | 2 | .58% | $ | 1,182,101 | 0 | .59% | 2 | .03% | 0 | .59% | 27 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
| Year 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 8 | .55 | 0 | .07 | 0 | .13 | 0 | .20 | (0 | .07) | (0 | .05) | (0 | .12) | $ | 8 | .63 | 2 | .38% | $ | 901 | 1 | .33% | 1 | .51% | 1 | .33% | 27 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
| Year 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 8 | .55 | 0 | .06 | 0 | .14 | 0 | .20 | (0 | .07) | (0 | .05) | (0 | .12) | $ | 8 | .63 | 2 | .30% | $ | 1,704,395 | 1 | .30% | 1 | .53% | 1 | .30% | 27 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
| Year 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 8 | .54 | 0 | .07 | 0 | .14 | 0 | .21 | (0 | .09) | (0 | .05) | (0 | .14) | $ | 8 | .61 | 2 | .46% | $ | 2,581,701 | 0 | .98% | 1 | .71% | 0 | .98% | 27 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
| Year 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 8 | .56 | 0 | .10 | 0 | .13 | 0 | .23 | (0 | .10) | (0 | .05) | (0 | .15) | $ | 8 | .64 | 2 | .69% | $ | 1,699,801 | 0 | .64% | 2 | .26% | 0 | .64% | 27 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
| Year 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2009 (Unaudited) (f) | $ | 8 | .57 | 0 | .10 | 0 | .14 | 0 | .24 | (0 | .11) | (0 | .05) | (0 | .16) | $ | 8 | .65 | 2 | .87% | $ | 2,560,815 | 0 | .33% | 2 | .43% | 0 | .33% | 27 | .78% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
| Year 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% | ||||||||||||||||||||||||||||||||||||||||||
Amounts designated as “ – ” are zero or have been rounded to zero.
| (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 outstanding during the period. |
| (g) | For the period from August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are in integral part of these financial statements.
134 Semiannual Report 2009
Notes to Financial Statements
April 30, 2009 (Unaudited)
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”). The Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2009, the Trust operates thirty-two (32) 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) series 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 Fund 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.
| (a) | Security Valuation |
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset values (“NAV”s) as reported by the Underlying Funds.
The following are the Valuation policies of the Underlying Funds:
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 4:00 p.m. Eastern time). Equity securities are valued at the last quoted sale price or, if there is no last quoted 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.
2009 Semiannual Report 135
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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 (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), 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.
The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157), effective with the beginning of the Funds’ current fiscal year. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques, giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are summarized below:
| • | Level 1 — quoted prices in active markets for identical assets | |
| • | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
| • | Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities are not intended to indicate the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2009:
| Level 2 — Other Significant | Level 3 — Significant | |||||||||||||||||||||||||||||||||
| Level 1 — Quoted Prices | Observable Inputs | Unobservable Inputs | Total | |||||||||||||||||||||||||||||||
| Investments | Other* | Investments | Other* | Investments | Other* | Investments | Other* | |||||||||||||||||||||||||||
| Destination 2010 | $ | 15,231,806 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 15,231,806 | $ | — | ||||||||||||||||||
| Destination 2015 | 44,132,278 | — | — | — | — | — | 44,132,278 | — | ||||||||||||||||||||||||||
| Destination 2020 | 39,615,551 | — | — | — | — | — | 39,615,551 | — | ||||||||||||||||||||||||||
| Destination 2025 | 36,677,931 | — | — | — | — | — | 36,677,931 | — | ||||||||||||||||||||||||||
| Destination 2030 | 46,848,553 | — | — | — | — | — | 46,848,553 | — | ||||||||||||||||||||||||||
| Destination 2035 | 18,023,843 | — | — | — | — | — | 18,023,843 | — | ||||||||||||||||||||||||||
| Destination 2040 | 15,169,945 | — | — | — | — | — | 15,169,945 | — | ||||||||||||||||||||||||||
| Destination 2045 | 6,005,419 | — | — | — | — | — | 6,005,419 | — | ||||||||||||||||||||||||||
| Destination 2050 | 12,941,560 | — | — | — | — | — | 12,941,560 | — | ||||||||||||||||||||||||||
| Retirement Income | 9,728,905 | — | — | — | — | — | 9,728,905 | — | ||||||||||||||||||||||||||
| * | Other financial instruments are derivative instruments not reflected in the Statement of Investments, such as futures, forwards, and options, which are valued at the unrealized appreciation/depreciation on the instrument. | |
| Amounts designated as “–” are zero or have been rounded to zero. |
136 Semiannual Report 2009
The following policies, (b) through (f), represent the accounting policies applicable to the Underlying Funds:
| (b) | Repurchase Agreements |
Certain Funds may enter into repurchase agreements with a member of the Federal Reserve System or 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 a 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 April 30, 2009, the Funds did not hold any repurchase agreements.
| (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, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. Both fluctuations are included in 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 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. If it does so, the Fund would be exposed to risk that the counterparty to the contract is unable to meet the terms of the contract and to the risk of unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. Forward foreign currency contracts are adjusted daily by the 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.
| (e) | Futures Contracts |
Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging its existing portfolio securities or securities that the Fund intends 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 the Fund’s positions may not exceed 5% of the Fund’s NAV after taking into account unrealized profits and unrealized losses on such contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets, known as an “initial margin deposit,” equal to a certain percentage of the contract amount. 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
2009 Semiannual Report 137
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
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, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts 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 the 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 may be implemented in the “to be announced” (“TBA”) market and are referred to as TBAs on the Statement of Investments of the Fund. 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. Mortgage dollar roll investments entail risks related to the potential inability of counterparties to complete the transaction, which may be heightened because of the delayed payment date. Income is generated as consideration for entering into mortgage dollar rolls 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.
| (h) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly. 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. Permanent differences 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. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as distributions of paid-in-capital.
| (i) | Federal Income Taxes |
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”) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing 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
138 Semiannual Report 2009
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). Each Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. Each Fund’s taxable years 2005 to 2008 remain subject to examination by the Internal Revenue Service.
Management has evaluated the implications of FIN 48 and has concluded that there is no impact to the Funds’ current financial statements. 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. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
| (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 series 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 series. 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”), a holding company which is a direct wholly-owned subsidiary of 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 the unified management 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 commissions, 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 and other non-routine expenses not incurred in the ordinary course of a Fund’s business.
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. A contingent deferred sales charge (“CDSC”) of 0.50%, if applicable, will be imposed on a redemption of Class A shares made within 18 months of 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
2009 Semiannual Report 139
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
Class C shares of the Funds made within one year of purchase. For the six months ended April 30, 2009, NFD received commissions of $10,009 from front-end sales charges of Class A shares and from CDSC fees from Class C shares, of which $5,118 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 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 six months ended April 30, 2009, NFS received the following amounts in administrative services fees from each Fund:
| Fund | Amount | |||||||
| Destination 2010 | $ | 10,711 | ||||||
| Destination 2015 | 29,487 | |||||||
| Destination 2020 | 27,262 | |||||||
| Destination 2025 | 24,438 | |||||||
| Destination 2030 | 25,873 | |||||||
| Destination 2035 | 11,443 | |||||||
| Destination 2040 | 8,892 | |||||||
| Destination 2045 | 3,367 | |||||||
| Destination 2050 | 5,366 | |||||||
| Retirement Income | 6,691 | |||||||
140 Semiannual Report 2009
As of April 30, 2009, 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 | 5.09% | |||||||
| Destination 2015 | 0.01% | |||||||
| Destination 2020 | 0.04% | |||||||
| Destination 2025 | 0.04% | |||||||
| Destination 2030 | 0.03% | |||||||
| Destination 2035 | 3.66% | |||||||
| Destination 2040 | 4.17% | |||||||
| Destination 2045 | 10.48% | |||||||
| Destination 2050 | 4.89% | |||||||
| Retirement Income | 9.41% | |||||||
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFA and the Trust, the Trust 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 six months ended April 30, 2009, 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 six months ended April 30, 2009.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). The earnings credits are allocated across those series that use DDAs based on the number of open shareholder accounts in each series. 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 series 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.
2009 Semiannual Report 141
Notes to Financial Statements (Continued)
April 30, 2009 (Unaudited)
5. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the six months ended April 30, 2009, were as follows:
| Fund | Purchases | Sales | ||||||||||
| Destination 2010 | $ | 9,253,309 | $ | 2,662,950 | ||||||||
| Destination 2015 | 29,955,230 | 6,083,799 | ||||||||||
| Destination 2020 | 23,420,069 | 4,071,828 | ||||||||||
| Destination 2025 | 21,427,229 | 2,741,385 | ||||||||||
| Destination 2030 | 30,670,691 | 2,695,042 | ||||||||||
| Destination 2035 | 9,697,187 | 733,148 | ||||||||||
| Destination 2040 | 9,135,748 | 716,141 | ||||||||||
| Destination 2045 | 3,904,553 | 838,966 | ||||||||||
| Destination 2050 | 9,545,093 | 854,107 | ||||||||||
| Retirement Income | 5,757,550 | 1,980,073 | ||||||||||
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 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 Derivatives 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 has concluded that adoption of the Amendment did not impact each Fund’s financial statement disclosures.
In April 2009, the FASB issued FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level of activity for the asset or liability have significantly decreased. FSP 157-4 also provides guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the Funds’ financial statement disclosures.
142 Semiannual Report 2009
8. Other
As of April 30, 2009, 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 | 94% | 1 | ||||||||||
| Destination 2015 | 99% | 2 | ||||||||||
| Destination 2020 | 99% | 2 | ||||||||||
| Destination 2025 | 98% | 2 | ||||||||||
| Destination 2030 | 100% | 2 | ||||||||||
| Destination 2035 | 95% | 2 | ||||||||||
| Destination 2040 | 84% | 1 | ||||||||||
| Destination 2045 | 92% | 2 | ||||||||||
| Destination 2050 | 90% | 1 | ||||||||||
| Retirement Income | 90% | 2 | ||||||||||
9. Federal Tax Information
As of April 30, 2009, the tax cost of securities and the breakdown of the unrealized appreciation/(depreciation) for each Fund were as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| Destination 2010 | $ | 17,263,915 | $ | 80,241 | $ | (2,112,350 | ) | $ | (2,032,109 | ) | ||||||||
| Destination 2015 | 48,846,187 | 105,753 | (4,819,662 | ) | (4,713,909 | ) | ||||||||||||
| Destination 2020 | 45,631,307 | 46,898 | (6,062,654 | ) | (6,015,756 | ) | ||||||||||||
| Destination 2025 | 42,002,947 | 34,529 | (5,359,545 | ) | (5,325,016 | ) | ||||||||||||
| Destination 2030 | 51,274,039 | 314,547 | (4,740,033 | ) | (4,425,486 | ) | ||||||||||||
| Destination 2035 | 21,549,497 | 7,809 | (3,533,463 | ) | (3,525,654 | ) | ||||||||||||
| Destination 2040 | 17,834,150 | 45,095 | (2,709,300 | ) | (2,664,205 | ) | ||||||||||||
| Destination 2045 | 7,325,335 | 1,387 | (1,321,303 | ) | (1,319,916 | ) | ||||||||||||
| Destination 2050 | 13,310,467 | 375,878 | (744,785 | ) | (368,907 | ) | ||||||||||||
| Retirement Income | 10,553,415 | 20,655 | (845,165 | ) | (824,510 | ) | ||||||||||||
2009 Semiannual Report 143
Supplemental Information
(Unaudited)
A. Renewal of Advisory (and Sub-advisory) Agreements
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
The Board has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
On December 2, 2008, the Trustees met in person with their independent legal counsel (“Independent Legal Counsel”), the Adviser, Trust counsel, and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the December 2, 2008 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
In preparation for the December 2, 2008 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2008) compared with performance groups and performance universes created by Lipper (and in some cases, customized peer groups created by the Adviser) of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2008) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2008, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) information from the Adviser describing, on a Fund-by-Fund basis, any fees paid to the Adviser for managing similar, non-affiliated institutional accounts, including the range of fee levels for such accounts, and (vii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
At the December 2, 2008 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds and those paid by non-affiliated institutional clients to the Adviser for managing similar accounts, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio
144 Semiannual Report 2009
transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
As part of the December 2, 2008 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions at the contract approval meeting of the Board of Trustees to be held on January 16, 2009.
At the January 16, 2009 meeting of the Board of Trustees of the Trust, the Board received and considered information provided by the Adviser in follow-up from the December 2, 2008 Board meeting and, after consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, concluded unanimously to renew the Advisory Agreement for the reasons set forth in the following section.
Nationwide Destination 2010 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the second quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2010 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Destination 2015 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2015 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a
2009 Semiannual Report 145
Supplemental Information (Continued)
(Unaudited)
unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Destination 2020 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2020 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fourth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Destination 2025 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2025 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and
146 Semiannual Report 2009
benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Destination 2030 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees also found that the quality of the services provided by NFA was satisfactory. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2030 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Destination 2035 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2035 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
2009 Semiannual Report 147
Supplemental Information (Continued)
(Unaudited)
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Destination 2040 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2040 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Destination 2045 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target 2045 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
148 Semiannual Report 2009
Nationwide Destination 2050 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the first quintile of its Peer Universe, but below the Fund’s benchmark, the DJ U.S. Target 2050 Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
Nationwide Retirement Income Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2008 was in the second quintile of its Peer Group, but below the Fund’s benchmark, the DJ U.S. Target Today Index. The Trustees also noted that, given the Fund’s relatively short performance history, information regarding the Fund’s performance may be less predictive than longer-term performance.
The Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fifth quintile of its Peer Universe, but that the Fund’s total expenses were in the third quintile and slightly below the median of its Peer Group. In this regard, the Trustees noted that the acquired fund fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also considered that the Nationwide Target Destination Funds employ a unified fee structure and that, effective October 1, 2008, the contractual unified fee was decreased from 50 basis points to 33 basis points. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the costs of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory and Sub-advisory Agreements with respect to the Fund should be renewed.
2009 Semiannual Report 149
Management Information
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | ||||||||||
| 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 (formerly Mitchell Madison Group), until 2001. Ms. Dryden was a managing partner at Mitchell Madison Group from 1996-2001. | 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 | ||||||||||
150 Semiannual Report 2009
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 | Retired. 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, and served as Board Member of Columbus Downtown Development Corporation from June 2002 to June 2006. Prior to January 31, 2002, Mr. Kridler was the President of the Columbus Association for the Performing Arts and Chairman of the Greater Columbus Convention and Visitors Bureau. | 94 | None | ||||||||||
2009 Semiannual Report 151
Management Information (Continued)
April 30, 2009 (Unaudited)
Trustees who are not Interested Persons (as defined in the 1940 Act) 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 serves as one of 30 of its trustees, and is currently one of two Vice Chairmen of the Board. NFA, the Fund’s 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 by calling 800-848-0920.
152 Semiannual Report 2009
| 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 S. Spangler Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1966 | President and Chief Executive Officer since June 2008 | 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 2008 | 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 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. 2 From December 2006 until January 2008 he was Executive Vice President of NWD Investments. 2 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.2From 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 | ||||||||||
2009 Semiannual Report 153
Management Information (Continued)
April 30, 2009 (Unaudited)
| 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.2 She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide.2 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 | ||||||||||
| Lynnett Berger Nationwide Funds Group 1200 River Road, Suite 1000 Conshohocken, PA 19428 1965 | Vice President and Chief Investment Officer since April 2009 | Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Vice President of Economic Risk Lab (Operational Risk Group) of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007. | N/A | N/A | ||||||||||
154 Semiannual Report 2009
| 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 Butler4 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 and Director 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. Butler has announced his resignation effective June 30, 2009. |
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 and 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. This summary is available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
2009 Semiannual Report 155
P.O. Box 182205
Columbus, OH 43218-2205
nationwide.com/mutualfunds
Nationwide, Nationwide Financial, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
©2009 Nationwide Funds Group.
All rights reserved.
SAR-TD 6/09
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.
Not applicable: The information required by this item is required only in an annual report on the Form N-CSR.
Item 3. Audit Committee Financial Expert.
| (a) | (1) | (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. | ||
| Not applicable: The information required by this item is required only in an annual report on the Form N-CSR. |
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.
2
(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.
(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.
(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.
(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.
Not applicable: The information required by this item is required only in an annual report on the Form N-CSR.
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. | ||
| 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. |
3
This schedule is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
| (b) | If the registrant has divested itself of securities in accordance with Section 13(c) of the Investment Company Act of 1940 following the filing of its last report on Form N-CSR and before filing of the current report, disclose the following information for each such divested security: |
(1) Name of the issuer;
(2) Exchange ticker symbol;
(3) Committee on Uniform Securities Identification Procedures (“CUSIP”) number;
(4) Total number of shares or, for debt securities, principal amount divested;
(5) Date(s) that the securities were divested; and
(6) If the registrant holds any securities of the issuer on the date of filing, the exchange ticker symbol; CUSIP number; and the total number of shares or, for debt securities, principal amount held on the date of filing. This Item 6(b) shall terminate one year after the date on which the provisions of Section 4 of the Sudan Accountability and Divestment Act of 2007 terminate pursuant to Section 12 of that Act.
The Registrant made no divestments of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
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.
4
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.
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.
Not applicable: The information required by this item is required only in an annual report on the Form N-CSR.
5
(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).
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.
6
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: | June 26, 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: | June 26, 2009 | |||||
| By (Signature and Title) | /s/ JOSEPH FINELLI | |||||
| Name: | Joseph Finelli | |||||
| Title: | Principal Financial Officer | |||||
| Date: | June 26, 2009 | |||||
7