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)
1000 CONTINENTAL DRIVE, SUITE 400, KING OF PRUSSIA, PENNSYLVANIA 19406-2850
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Eric E. Miller, Esq.
1000 Continental Drive
Suite 400
King of Prussia, Pennsylvania 19406-2850
(Name and address of agent for service)
1000 Continental Drive
Suite 400
King of Prussia, Pennsylvania 19406-2850
(Name and address of agent for service)
Registrant’s telephone number, including area code: (610) 230-2839
Date of fiscal year end: October 31, 2010
Date of reporting period: November 1, 2009 through April 30, 2010
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, 2010 (Unaudited)
Equity Funds
Nationwide International Value Fund
Nationwide Large Cap Value Fund
Nationwide U.S. Small Cap Value Fund
Nationwide Value Fund
Fixed-Income Funds
Nationwide Bond Fund
Nationwide Enhanced Income Fund
Nationwide Government Bond Fund
Nationwide Short Duration Bond Fund
SemiannualReport
April 30, 2010 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Equity Funds | |||
| 6 | Nationwide International Value Fund | ||
| 20 | Nationwide Large Cap Value Fund | ||
| 32 | Nationwide U.S. Small Cap Value Fund | ||
| 55 | Nationwide Value Fund | ||
Fixed-Income Funds | |||
| 67 | Nationwide Bond Fund | ||
| 84 | Nationwide Enhanced Income Fund | ||
| 99 | Nationwide Government Bond Fund | ||
| 113 | Nationwide Short Duration Bond Fund | ||
| 126 | Notes to Financial Statements | ||
| 143 | Supplemental Information | ||
| 148 | Management Information | ||
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. The Trust makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
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Message to Shareholders
April 30, 2010
Dear Shareholder,
As I write this letter, we have enjoyed a relatively positive six months of growth in domestic and international equity markets. Since I last wrote to you on October 31, 2009, the Standard & Poor’s 500® (S&P 500) Index has gained 16 percent. In that letter, which accompanied your Funds’ annual report, I noted the signs of recovery but cautioned against unchecked excitement:
“Our opinion is that amid the recent good news, there is cause for caution... As a society, we haven’t displayed greater financial literacy and don’t appear to have learned any financial lessons well. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.”
Perhaps my tone was overly cautious, but in my opinion the dichotomy between the financial markets and our economic well-being still exists. Complicating matters further is the looming debt crisis that, as of this date, is threatening to expand in Europe and certainly has significant consequences. We are not isolated from any of these global issues.
Suffice it to say there is still a lot of instability in the market. At least a portion of the growth enjoyed during the past six months is a function of artificial stimulus provided by U.S. and international governments. We do not yet know if this recent growth is sustainable. The employment picture is also difficult to predict, with jobs growth lagging other economic indicators and many Americans unable to find the full-time employment they seek. While prognosticators are pointing to positive signs on the jobs front, it’s far too early to claim victory.
In times of great uncertainty I believe it is more important than ever to have clear investment goals that you pursue with a consistent strategy. Investment decisions should be based on a well-reasoned approach applied consistently over time and not on emotional reactions to extreme market events. All of this leads me to return to the core principles that have guided our firm:
| • | Always take a long-term approach to investing |
| • | Rely on asset allocation to build consistent diversification |
| • | Prudently and conscientiously look at risk |
We believe that adhering to these principles will help us—and you—to navigate these challenging times. As always, we appreciate your business. Thank you for entrusting your investments to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President & CEO
Nationwide Mutual Funds
President & CEO
Nationwide Mutual Funds
2010 Semiannual Report 1
| Important Disclosures |
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.
This report and the holdings provided are for informational purposes only, do not constitute advice, and are not intended and should not be relied upon 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 and without notice. 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.
The Funds’ adviser, one of its affiliated advisers, 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. There is no assurance that the investment objective of any fund will be achieved.
Principal Risks
The Nationwide International Value Fund, Nationwide Large Cap Value Fund, Nationwide U.S. Small Cap Value Fund and Nationwide Value Fund employ a value style of investing. Value stocks can react differently to issuer, political, market and economic developments than the market overall and other types of stocks. This can cause these Funds to underperform other funds that use different investing styles.
The Nationwide International Value Fund invests in international securities, which 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 U.S. Small Cap Value Fund invests in small-company stocks, which 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.
The Nationwide Bond Fund, Nationwide Enhanced Income Fund, Nationwide Government Bond Fund and Nationwide Short Duration Bond Fund may be subject to interest rate risk. Generally, when interest rates go up, the value of fixed-income securities goes down. These Funds may be subject to extension risk. When interest rates rise, certain bond obligations will be paid off by the issuer more slowly than anticipated. This can cause the market value of the security to fall because the market may view its interest rate as too low for a longer-term investment. These Funds may be subject to prepayment, call and redemption risks. Certain bonds will be paid off by the issuer more quickly than anticipated. If this happens, these Funds may be required to invest the proceeds in securities with lower yields. These Funds may be subject to liquidity risk, which is the risk that a security cannot be sold, or cannot be sold quickly, at an acceptable price. These Funds may be subject to credit risk. A bond issuer may be unable to pay the interest or principal when due. While these Funds may invest in securities of the U.S. government and its agencies, the value of these Funds is not guaranteed by these entities.
The Nationwide Bond Fund and the Nationwide Government Bond Fund may purchase mortgage-backed securities, which are sensitive to fluctuations in interest rates. In addition, these securities are subject to prepayment, which may cause these Funds to reinvest in securities with lower interest rates.
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 these Funds to reinvest in securities with lower interest rates.
Performance
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. Current performance may be higher or lower than the performance shown. The investment return and principal value of an
2 Semiannual Report 2010
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.
High double-digit returns are unusual and cannot be sustained.
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 Indexes
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.
BofA Merrill Lynch (BofAML) 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.
BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued debt securities with a remaining term to final maturity less than 10 years.
BofA Merrill Lynch (BofAML) 1-Year Treasury Bill (T-Bill) Index: An unmanaged index that measures the returns of 12-month Treasury bills. Comprises a single issue purchased at the beginning of a month and held for the 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. Also, 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.
BofA Merrill Lynch (BofAML) 6-Month Treasury Bill (T-Bill) Index: An unmanaged index that measures the returns of six-month Treasury bills. Comprises a single issue purchased at the beginning of a month and held for the 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.
BofA Merrill Lynch (BofAML) 10+ Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued debt securities with a remaining term to final maturity greater than or equal to 10 years.
BofA Merrill Lynch (BofAML) Government Master Index: An unmanaged index that gives a broad look at how U.S. government bonds have performed.
BofA Merrill Lynch (BofAML) Mortgage Master Index: An unmanaged index that tracks the performance of U.S. dollar-denominated 30-year, 15-year and balloon pass-through mortgage securities having at least $150 million outstanding per generic production year.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 1000® Index: An unmanaged index that measures the performance of the stocks of the 1,000 largest companies in the Russell 3000® Index and represents approximately 90% of the U.S. market.
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
2010 Semiannual Report 3
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 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 International Value Fund |
| • | Nationwide Large Cap Value Fund |
| • | Nationwide U.S. Small Cap Value Fund |
| • | Nationwide Value 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. In addition, the Nationwide Large Cap Value Fund and the Nationwide Value Fund assess a redemption/exchange fee of 2.00% on all shares that are sold within 30 calendar days of purchase. The Nationwide International Value Fund and the Nationwide U.S. Small Cap Value Fund assess a redemption/exchange fee of 2.00% on all shares that are sold within 90 calendar days of purchase. | |
| • | Nationwide Bond Fund |
| • | 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. In addition, these Funds assess a redemption/exchange fee of 2.00% on all shares that are sold within 7 calendar days of purchase. | |
| • | 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. In addition, the Nationwide Short Duration Bond Fund assesses a redemption/exchange fee of 2.00% on all shares that are sold within 7 calendar days of purchase. |
About Nationwide Funds Group (NFG)
Commentary provided by NFG. Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
Based in King of Prussia, 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, LLC (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 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.
Distributor
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is not an affiliate of any of the subadvisers listed in this report, except Nationwide Asset Management, LLC.
4 Semiannual Report 2010
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the semiannual period ended April 30, 2010.
During the fourth quarter of 2009, corporate profits continued to show evidence of improvement, which in turn stoked investor confidence and drove the market rally. “Riskier” assets led the way, albeit at a slower pace than was seen during the second and third quarters of 2009. Positive news persisted throughout the first quarter of 2010, spurring markets to improve and prompting economists to declare that the United States had finally turned the corner and was exiting the “Great Recession.”
While this is very positive news for U.S. consumers, the recovery is expected to be an uneven one with significant headwinds. The rate of unemployment is high and is likely to remain so for the short term. Federal, state and local governments, as well as consumers, are contending with weak balance sheets. Government incentives for new housing purchases have ended. These factors, coupled with a second wave of mortgage resets and the reluctance of banks to lend, lead economic observers to believe that the recovery will be weak and uneven for the foreseeable future.
The equity market is expected to remain choppy, characterized by sharp rallies and sharp declines with equally sharp equity sector rotations. For the semiannual reporting period, large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, returned 15.66% as markets continued to rally. Mid-cap U.S. equities, as measured by the Standard and Poor’s MidCap 400 (S&P 400) Index, returned 25.78%, and small-cap U.S. equities, as measured by the Russell 2000® Index, returned 28.17% for the same time period.
International stocks and international emerging market stocks continued their strong rally in the fourth quarter of 2009, but this rally slowed throughout the first quarter of 2010, impeded by concerns about Greece’s debt situation and the recent strength of the U.S. dollar. As represented by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, emerging market stocks returned 11.57% for the semiannual reporting period. International stocks, as measured by the broad MSCI Europe, Australasia and Far East (MSCI EAFE®) Index, returned 1.19% for the same time period.
During the fourth quarter of 2009, the bond market benefited from the aforementioned improvements in corporate profits that fueled investor confidence. Enthusiasm was tempered, however, during the first quarter of 2010, due to an increase in government debt, continued weakness in U.S. labor markets and growing concerns about European debt (most notably involving Greece, Spain, Portugal and Italy). The Barclays Capital (BARCAP) U.S. Aggregate Bond Index returned 2.54% for the semiannual reporting period. On the corporate bond front, the BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index returned 4.89%, while the BofAML 10+ Year US Corporate Index returned 5.24% for the same time period. In the area of mortgage-related investments, the BofAML Mortgage Master Index returned 2.14% for the same time period.
2010 Semiannual Report 5
| 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, 2010, the Nationwide International Value Fund (Class A at NAV) returned 2.70% versus 2.48% 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 127 funds as of April 30, 2010) was 2.98% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Currency selection contributed to Fund performance during the reporting period. An underweight in the Fund to the euro and overweight positions in the Fund in higher-yielding Australian and New Zealand dollars helped returns. Fund holdings in the capital equipment sector, as well as overweight Fund positions in the strongly performing technology/electronics and consumer cyclicals sectors, added to Fund performance. Individual contributors to Fund performance were varied by sector and included chipmaker Elpida Memory, Inc., which rose due to higher DRAM (dynamic random access memory) chip prices. The Fund’s holdings in Japanese leasing and real estate company ORIX Corp. benefited as access to wholesale funding showed improvement, easing liquidity concerns. Dutch employment services agency Randstad Holdings NV gained as payroll data improved.
What areas of investment detracted from Fund performance?
Overall sector selection had a negative impact on Fund performance as underweight Fund positions in sectors such as consumer staples, industrial commodities and capital equipment, as well as an overweight Fund position in the defensive telecommunications sector, hurt the Fund’s relative gains. Security selection also hurt Fund performance, especially in the energy, technology and industrial commodities sectors. European financial holdings were the Fund’s main individual detractors from Fund performance. These investments suffered due to concerns about their exposure to the continuing Greek sovereign debt crisis and growing fears that Greece’s problems could affect other southern Eurozone members. Specifically, the Fund’s positions in Crédit Agricole S.A., Société Générale and Banco Santander detracted from Fund returns.
What is your outlook for the near term?
The aftershocks of recession and a tighter credit environment are still taking a toll on the economy. As a result, investors remain skeptical about the durability of the earnings recovery and are more wary of making wagers on the cycle’s eventual winners and losers than they would be under more stable economic conditions. Apprehension about the future is producing abundant opportunities for investors who are willing to take a long-term view. Corporate profitability is still extremely low, but we are seeing signs of the cycle’s self-correcting forces taking hold. As the process unfolds, we continue to take advantage of attractive valuations across a wide range of sectors while investing in companies with strong balance sheets and clearer earnings visibility.
Subadviser:
AllianceBernstein L.P.
AllianceBernstein L.P.
Portfolio Managers:
Henry S. D’Auria, Sharon E. Fay, Eric Franco and
Henry S. D’Auria, Sharon E. Fay, Eric Franco and
Kevin F. Simms
6 Semiannual Report 2010
| Fund Performance | Nationwide International Value Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 2.70% | 34.62% | -17.24% | ||||||||||
| w/SC3 | -3.23% | 26.84% | -19.29% | |||||||||||
| Class C | w/o SC2 | 2.18% | 33.42% | -17.85% | ||||||||||
| w/SC4 | 1.18% | 32.42% | -17.85% | |||||||||||
Institutional Service Class5 | 2.48% | 34.26% | -17.24% | |||||||||||
Institutional Class5 | 2.54% | 34.78% | -17.06% | |||||||||||
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 | 1.34% | 1.25% | ||||||||
| Class C | 2.09% | 2.00% | ||||||||
| Institutional Service Class | 1.34% | 1.25% | ||||||||
| Institutional Class | 1.09% | 1.00% | ||||||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 7
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide International Value Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,027.00 | 6.28 | 1.25 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.60 | 6.26 | 1.25 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,021.80 | 10.03 | 2.00 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.88 | 9.99 | 2.00 | |||||||||||||||
| Institutional Service Class Shares | Actual Hypothetical | b | 1,000.00 1,000.00 | 1,024.80 1,018.60 | 6.28 6.26 | 1.25 1.25 | ||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,025.40 | 5.02 | 1.00 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.84 | 5.01 | 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 Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
8 Semiannual Report 2010
| Portfolio Summary | Nationwide International Value Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 97 | .1% | ||
| Repurchase Agreement | 16 | .5% | ||
| Mutual Fund | 1 | .5% | ||
| Preferred Stock ‡ | 0 | .0% | ||
| Liabilities in excess of other assets | (15 | .1)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Commercial Banks | 12 | .6% | ||
| Oil, Gas & Consumable Fuels | 9 | .6% | ||
| Metals & Mining | 6 | .1% | ||
| Pharmaceuticals | 5 | .7% | ||
| Diversified Telecommunication Services | 4 | .7% | ||
| Insurance | 3 | .5% | ||
| Trading Companies & Distributors | 3 | .2% | ||
| Electric Utilities | 3 | .0% | ||
| Wireless Telecommunication Services | 2 | .9% | ||
| Semiconductors & Semiconductor Equipment | 2 | .5% | ||
| Other Industries * | 46 | .2% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Royal Dutch Shell PLC, Class A | 2 | .6% | ||
| BP PLC | 2 | .3% | ||
| Vodafone Group PLC | 2 | .3% | ||
| Allianz SE | 1 | .8% | ||
| BNP Paribas | 1 | .6% | ||
| Banco Santander SA | 1 | .6% | ||
| E.ON AG | 1 | .4% | ||
| Rio Tinto PLC | 1 | .4% | ||
| Novartis AG | 1 | .4% | ||
| Sanofi-Aventis SA | 1 | .4% | ||
| Other Holdings * | 82 | .2% | ||
| 100 | .0% | |||
| Top Countries † | ||||
| Japan | 20 | .4% | ||
| United Kingdom | 13 | .8% | ||
| France | 10 | .5% | ||
| Germany | 8 | .2% | ||
| Australia | 4 | .2% | ||
| Netherlands | 4 | .0% | ||
| Canada | 3 | .6% | ||
| Italy | 3 | .5% | ||
| South Korea | 2 | .8% | ||
| Spain | 2 | .7% | ||
| Other Countries * | 26 | .3% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. | |
| * | For purposes of listing top industries, top holdings and top countries, the repurchase agreement is included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 9
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide International Value Fund
| Common Stocks 97.1% | ||||||||
Shares | Market Value | |||||||
AUSTRALIA 4.8% | ||||||||
Airlines 0.5% | ||||||||
| Qantas Airways Ltd.* | 252,736 | $ | 654,404 | |||||
Capital Markets 0.5% | ||||||||
| Macquarie Group Ltd. | 13,400 | 611,040 | ||||||
Commercial Banks 2.6% | ||||||||
| Australia & New Zealand Banking Group Ltd. | 74,800 | 1,656,765 | ||||||
| National Australia Bank Ltd. | 68,600 | 1,752,653 | ||||||
| 3,409,418 | ||||||||
Metals & Mining 0.6% | ||||||||
| BHP Billiton Ltd. | 23,000 | 840,793 | ||||||
Real Estate Management & Development 0.3% | ||||||||
| Lend Lease Group | 49,400 | 388,825 | ||||||
Transportation Infrastructure 0.3% | ||||||||
| Intoll Group | 347,534 | 358,635 | ||||||
| 6,263,115 | ||||||||
AUSTRIA 0.6% | ||||||||
Oil, Gas & Consumable Fuels 0.6% | ||||||||
| OMV AG | 21,700 | 775,401 | ||||||
BRAZIL 0.3% | ||||||||
Metals & Mining 0.3% | ||||||||
| Vale SA ADR-BR | 15,000 | 403,650 | ||||||
CANADA 4.2% | ||||||||
Aerospace & Defense 0.5% | ||||||||
| Bombardier, Inc., Class B | 111,200 | 580,193 | ||||||
Commercial Banks 0.6% | ||||||||
| National Bank of Canada | 13,300 | 813,083 | ||||||
Insurance 0.6% | ||||||||
| Industrial Alliance Insurance & Financial Services, Inc. | 22,000 | 758,890 | ||||||
Oil, Gas & Consumable Fuels 2.5% | ||||||||
| EnCana Corp. | 10,600 | 350,620 | ||||||
| Nexen, Inc. | 58,320 | 1,418,098 | ||||||
| Suncor Energy, Inc. | 43,008 | 1,471,282 | ||||||
| 3,240,000 | ||||||||
| 5,392,166 | ||||||||
DENMARK 1.9% | ||||||||
Beverages 1.1% | ||||||||
| Carlsberg AS, Class B | 17,225 | 1,392,124 | ||||||
Commercial Banks 0.8% | ||||||||
| Danske Bank AS* | 39,100 | 1,020,813 | ||||||
| 2,412,937 | ||||||||
FINLAND 1.5% | ||||||||
Communications Equipment 1.5% | ||||||||
| Nokia OYJ* (a) | 154,100 | 1,883,954 | ||||||
FRANCE 12.0% | ||||||||
Building Products 0.8% | ||||||||
| Cie de Saint-Gobain | 20,800 | 1,026,801 | ||||||
Commercial Banks 3.6% | ||||||||
| BNP Paribas | 35,926 | 2,467,619 | ||||||
| Credit Agricole SA | 59,102 | 844,865 | ||||||
| Societe Generale | 24,397 | 1,302,781 | ||||||
| 4,615,265 | ||||||||
Construction & Engineering 0.9% | ||||||||
| Bouygues SA (a) | 24,800 | 1,228,835 | ||||||
Diversified Telecommunication Services 1.1% | ||||||||
| France Telecom SA | 63,600 | 1,392,310 | ||||||
Electric Utilities 0.9% | ||||||||
| Electricite de France (EDF) | 22,900 | 1,227,299 | ||||||
Food & Staples Retailing 0.7% | ||||||||
| Casino Guichard Perrachon SA (a) | 9,900 | 873,905 | ||||||
Media 2.3% | ||||||||
| Lagardere SCA (a) | 32,700 | 1,318,887 | ||||||
| Vivendi (a) | 62,990 | 1,652,381 | ||||||
| 2,971,268 | ||||||||
Pharmaceuticals 1.6% | ||||||||
| Sanofi-Aventis SA* | 29,950 | 2,043,145 | ||||||
Real Estate Investment Trusts (REITs) 0.1% | ||||||||
| Klepierre | 6,200 | 213,654 | ||||||
| 15,592,482 | ||||||||
GERMANY 9.5% | ||||||||
Automobiles 1.1% | ||||||||
| Bayerische Motoren Werke AG | 29,100 | 1,439,199 | ||||||
Capital Markets 1.3% | ||||||||
| Deutsche Bank AG | 23,905 | 1,668,514 | ||||||
Electric Utilities 1.7% | ||||||||
| E.ON AG (a) | 57,960 | 2,137,435 | ||||||
Health Care Providers & Services 0.3% | ||||||||
| Celesio AG | 13,700 | 448,535 | ||||||
Insurance 3.0% | ||||||||
| Allianz SE REG* (a) | 23,170 | 2,656,325 | ||||||
| Muenchener Rueckversicherungs AG REG (a) | 8,760 | 1,234,579 | ||||||
| 3,890,904 | ||||||||
Metals & Mining 0.7% | ||||||||
| ThyssenKrupp AG | 27,400 | 890,971 | ||||||
Pharmaceuticals 1.4% | ||||||||
| Bayer AG (a) | 27,700 | 1,769,396 | ||||||
| 12,244,954 | ||||||||
HONG KONG 2.2% | ||||||||
Diversified Financial Services 0.0%† | ||||||||
| Guoco Group, Ltd. (a) | 2,000 | 20,800 | ||||||
10 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
HONG KONG (continued) | ||||||||
Real Estate Management & Development 0.3% | ||||||||
| New World Development Ltd. | 244,223 | $ | 433,181 | |||||
Specialty Retail 1.0% | ||||||||
| Esprit Holdings Ltd. | 172,000 | 1,232,075 | ||||||
Textiles, Apparel & Luxury Goods 0.9% | ||||||||
| Yue Yuen Industrial Holdings Ltd. (a) | 322,000 | 1,121,819 | ||||||
| 2,807,875 | ||||||||
INDIA 0.4% | ||||||||
Metals & Mining 0.4% | ||||||||
| Hindalco Industries Ltd. | 138,800 | 549,925 | ||||||
ISRAEL 0.4% | ||||||||
Diversified Telecommunication Services 0.4% | ||||||||
| Bezeq Israeli Telecommunication Corp. Ltd. | 229,100 | 559,531 | ||||||
ITALY 4.1% | ||||||||
Commercial Banks 1.1% | ||||||||
| UniCredit SpA* | 558,095 | 1,462,601 | ||||||
Diversified Telecommunication Services 1.5% | ||||||||
| Telecom Italia SpA* | 817,800 | 1,143,366 | ||||||
| Telecom Italia SpA — RSP* | 640,300 | 722,587 | ||||||
| 1,865,953 | ||||||||
Oil, Gas & Consumable Fuels 1.5% | ||||||||
| ENI SpA | 85,700 | 1,915,337 | ||||||
| 5,243,891 | ||||||||
JAPAN 23.4% | ||||||||
Automobiles 1.6% | ||||||||
| Nissan Motor Co., Ltd.* | 233,700 | 2,033,461 | ||||||
Beverages 0.7% | ||||||||
| Asahi Breweries Ltd. | 47,600 | 855,057 | ||||||
Commercial Banks 1.5% | ||||||||
| Mitsubishi UFJ Financial Group, Inc. | 89,300 | 465,345 | ||||||
| Sumitomo Mitsui Financial Group, Inc. | 45,100 | 1,491,540 | ||||||
| 1,956,885 | ||||||||
Computers & Peripherals 1.2% | ||||||||
| Toshiba Corp.* | 269,000 | 1,550,662 | ||||||
Consumer Finance 1.2% | ||||||||
| ORIX Corp. | 16,720 | 1,528,207 | ||||||
Diversified Telecommunication Services 1.2% | ||||||||
| Nippon Telegraph & Telephone Corp. | 38,800 | 1,579,299 | ||||||
Electric Utilities 0.9% | ||||||||
| Tokyo Electric Power Co., Inc. (The) | 44,600 | 1,119,300 | ||||||
Electronic Equipment, Instruments & Components 1.1% | ||||||||
| Murata Manufacturing Co., Ltd. | 23,500 | 1,390,698 | ||||||
Food & Staples Retailing 0.8% | ||||||||
| AEON Co., Ltd. (a) | 95,000 | 1,087,721 | ||||||
Gas Utilities 0.4% | ||||||||
| Tokyo Gas Co., Ltd. | 122,000 | 518,446 | ||||||
Household Durables 2.0% | ||||||||
| Sharp Corp. | 82,000 | 1,062,065 | ||||||
| Sony Corp. | 43,000 | 1,472,277 | ||||||
| 2,534,342 | ||||||||
Leisure Equipment & Products 0.2% | ||||||||
| Namco Bandai Holdings, Inc. | 28,500 | 284,382 | ||||||
Marine 0.6% | ||||||||
| Nippon Yusen KK | 190,000 | 781,131 | ||||||
Metals & Mining 1.3% | ||||||||
| JFE Holdings, Inc. | 31,100 | 1,109,085 | ||||||
| Mitsubishi Materials Corp.* | 200,000 | 599,467 | ||||||
| 1,708,552 | ||||||||
Pharmaceuticals 0.4% | ||||||||
| Mitsubishi Tanabe Pharma Corp. | 42,000 | 555,698 | ||||||
Real Estate Management & Development 2.0% | ||||||||
| Mitsui Fudosan Co., Ltd. | 88,000 | 1,629,696 | ||||||
| Sumitomo Realty & Development Co., Ltd. | 44,000 | 902,833 | ||||||
| 2,532,529 | ||||||||
Road & Rail 0.4% | ||||||||
| East Japan Railway Co. | 8,500 | 568,597 | ||||||
Semiconductors & Semiconductor Equipment 0.7% | ||||||||
| Elpida Memory, Inc.* | 43,300 | 922,407 | ||||||
Software 0.1% | ||||||||
| Konami Corp. | 9,400 | 182,370 | ||||||
Tobacco 1.2% | ||||||||
| Japan Tobacco, Inc. | 442 | 1,531,727 | ||||||
Trading Companies & Distributors 3.2% | ||||||||
| ITOCHU Corp. | 146,000 | 1,264,894 | ||||||
| Mitsubishi Corp. | 67,400 | 1,596,564 | ||||||
| Mitsui & Co., Ltd. | 85,700 | 1,287,994 | ||||||
| 4,149,452 | ||||||||
Wireless Telecommunication Services 0.7% | ||||||||
| KDDI Corp. | 192 | 925,733 | ||||||
| 30,296,656 | ||||||||
NETHERLANDS 4.6% | ||||||||
Chemicals 0.7% | ||||||||
| Koninklijke DSM NV (a) | 20,800 | 929,070 | ||||||
Oil, Gas & Consumable Fuels 3.0% | ||||||||
| Royal Dutch Shell PLC, Class A (a) | 124,300 | 3,900,287 | ||||||
2010 Semiannual Report 11
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
NETHERLANDS (continued) | ||||||||
Professional Services 0.9% | ||||||||
| Randstad Holding NV* | 23,100 | $ | 1,170,451 | |||||
| 5,999,808 | ||||||||
RUSSIA 0.8% | ||||||||
Oil, Gas & Consumable Fuels 0.8% | ||||||||
| Gazprom OAO ADR-RU | 16,300 | 378,486 | ||||||
| LUKOIL Holdings ADR-RU (a) | 12,010 | 689,374 | ||||||
| 1,067,860 | ||||||||
SOUTH AFRICA 0.4% | ||||||||
Industrial Conglomerates 0.4% | ||||||||
| Bidvest Group Ltd. | 26,556 | 493,994 | ||||||
SOUTH KOREA 3.2% | ||||||||
Commercial Banks 1.1% | ||||||||
| Hana Financial Group, Inc. | 9,800 | 304,817 | ||||||
| KB Financial Group, Inc. ADR-KR (a) | 22,523 | 1,099,122 | ||||||
| 1,403,939 | ||||||||
Semiconductors & Semiconductor Equipment 2.1% | ||||||||
| Hynix Semiconductor, Inc.* | 37,700 | 954,205 | ||||||
Samsung Electronics Co. Ltd. GDR-KR (b) | 4,750 | 1,819,259 | ||||||
| 2,773,464 | ||||||||
| 4,177,403 | ||||||||
SPAIN 3.1% | ||||||||
Commercial Banks 1.8% | ||||||||
| Banco Santander SA (a) | 187,026 | 2,378,101 | ||||||
Diversified Telecommunication Services 1.3% | ||||||||
| Telefonica SA | 71,600 | 1,620,682 | ||||||
| 3,998,783 | ||||||||
SWITZERLAND 3.1% | ||||||||
Metals & Mining 1.5% | ||||||||
| Xstrata PLC | 116,810 | 1,916,134 | ||||||
Pharmaceuticals 1.6% | ||||||||
| Novartis AG REG | 40,600 | 2,069,981 | ||||||
| 3,986,115 | ||||||||
TAIWAN 0.7% | ||||||||
Electronic Equipment, Instruments & Components 0.7% | ||||||||
| AU Optronics Corp. ADR-TW (a) | 74,572 | 864,289 | ||||||
UNITED KINGDOM 15.9% | ||||||||
Aerospace & Defense 2.2% | ||||||||
| BAE Systems PLC | 235,500 | 1,234,305 | ||||||
| Rolls-Royce Group PLC, Class C* (c) | 16,137,000 | 24,691 | ||||||
| Rolls-Royce Group PLC* | 179,300 | 1,579,893 | ||||||
| 2,838,889 | ||||||||
Commercial Banks 1.4% | ||||||||
| Barclays PLC | 342,800 | 1,760,898 | ||||||
Hotels, Restaurants & Leisure 1.0% | ||||||||
| Thomas Cook Group PLC | 127,800 | 484,807 | ||||||
| Tui Travel PLC | 203,700 | 869,016 | ||||||
| 1,353,823 | ||||||||
Insurance 0.4% | ||||||||
| Old Mutual PLC* | 309,400 | 546,051 | ||||||
Metals & Mining 2.2% | ||||||||
| Kazakhmys PLC | 33,400 | 707,601 | ||||||
| Rio Tinto PLC | 40,300 | 2,083,526 | ||||||
| 2,791,127 | ||||||||
Multiline Retail 0.9% | ||||||||
| Marks & Spencer Group PLC | 198,300 | 1,108,891 | ||||||
Oil, Gas & Consumable Fuels 2.7% | ||||||||
| BP PLC | 394,600 | 3,441,658 | ||||||
Pharmaceuticals 1.5% | ||||||||
| AstraZeneca PLC | 45,200 | 1,997,235 | ||||||
Tobacco 0.6% | ||||||||
| Imperial Tobacco Group PLC | 29,100 | 829,001 | ||||||
Trading Companies & Distributors 0.4% | ||||||||
| Travis Perkins PLC* | 43,400 | 560,529 | ||||||
Wireless Telecommunication Services 2.6% | ||||||||
| Vodafone Group PLC | 1,519,300 | 3,366,542 | ||||||
| 20,594,644 | ||||||||
Total Common Stocks (cost $133,398,972) | 125,609,433 | |||||||
| Preferred Stock 0.0% | ||||||||
SOUTH KOREA 0.0%† | ||||||||
Semiconductors & Semiconductor Equipment 0.0%† | ||||||||
Samsung Electronics Co. Ltd. GDR-KR (b) | 100 | 23,770 | ||||||
Total Preferred Stock (cost $23,087) | 23,770 | |||||||
12 Semiannual Report 2010
| Mutual Fund 1.5% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 1.5% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (d) | 1,929,740 | $ | 1,929,740 | |||||
Total Mutual Fund (cost $1,929,740) | 1,929,740 | |||||||
| Repurchase Agreement 16.5% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 04/30/10, due 05/03/10, repurchase price $21,347,192, collateralized by U.S. Government Agency Securities 4.00% - 6.00%, maturing 07/01/23 - 04/01/40; total market value of $21,775,969. (e) | $ | 21,346,854 | 21,346,854 | |||||
Total Repurchase Agreement (cost $21,346,854) | 21,346,854 | |||||||
Total Investments (cost $156,698,653) (f) — 115.1% | 148,909,797 | |||||||
Liabilities in excess of other assets — (15.1)% | (19,493,631 | ) | ||||||
NET ASSETS — 100.0% | $ | 129,416,166 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $20,393,933. | |
| (b) | Rule 144A, Section 4(2), or other security which is restricted as to sale 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, 2010 was $1,843,029 which represents 1.42% of net assets. | |
| (c) | Fair Valued Security. | |
| (d) | Represents 7-day effective yield as of April 30, 2010. | |
| (e) | The security was purchased with cash collateral held from securities on loan. The total value of this security as of April 30, 2010 was $21,346,854. | |
| (f) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| † | Amount rounds to less than 0.1%. |
| ADR | American Depositary Receipt | |
| AG | Stock Corporation | |
| AS | Stock Corporation | |
| BR | Brazil | |
| GDR | Global Depositary Receipt | |
| KK | Joint Stock Company | |
| KR | South Korea | |
| Ltd. | Limited | |
| NV | Public Traded Company | |
| OYJ | Public Traded Company | |
| PLC | Public Limited Company | |
| REG | Registered Shares | |
| REIT | Real Estate Investment Trust | |
| RSP | Savings Shares | |
| RU | Russia | |
| SA | Stock Company | |
| SCA | Limited partnership with share capital | |
| SE | Sweden | |
| SpA | Limited Share Company | |
| TW | Taiwan |
At April 30, 2010, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows (Note 2):
| Currency | Unrealized | |||||||||||||||||
| Delivery | Received/ | Contract | Market | Appreciation/ | ||||||||||||||
| Currency | Date | (Delivered) | Value | Value | (Depreciation) | |||||||||||||
Short Contracts: | ||||||||||||||||||
| British Pound | 7/15/10 | (1,536,000 | ) | $ | (2,306,381 | ) | $ | (2,349,573 | ) | $ | (43,192 | ) | ||||||
| Canadian Dollar | 7/15/10 | (5,563,000 | ) | (5,561,054 | ) | (5,476,041 | ) | 85,013 | ||||||||||
| Euro | 7/15/10 | (14,679,000 | ) | (19,643,731 | ) | (19,547,877 | ) | 95,854 | ||||||||||
| Japanese Yen | 7/15/10 | (33,407,000 | ) | (361,835 | ) | (355,905 | ) | 5,930 | ||||||||||
| Japanese Yen | 7/15/10 | (756,686,000 | ) | (8,195,762 | ) | (8,061,438 | ) | 134,324 | ||||||||||
| Total Short Contracts | $ | (36,068,763 | ) | $ | (35,790,834 | ) | $ | 277,929 | ||||||||||
Long Contracts: | ||||||||||||||||||
| Australian Dollar | 7/15/10 | 9,450,000 | $ | 8,630,024 | $ | 8,669,619 | $ | 39,595 | ||||||||||
| Australian Dollar | 7/15/10 | 1,611,000 | 1,484,672 | 1,477,964 | (6,708 | ) | ||||||||||||
| British Pound | 7/15/10 | 1,536,000 | 2,366,616 | 2,349,573 | (17,043 | ) | ||||||||||||
| Canadian Dollar | 7/15/10 | 665,000 | 665,174 | 654,605 | (10,569 | ) | ||||||||||||
| Japanese Yen | 7/15/10 | 33,407,000 | 355,867 | 355,905 | 38 | |||||||||||||
| New Zealand Dollar | 7/15/10 | 9,017,000 | 6,255,994 | 6,521,545 | 265,551 | |||||||||||||
| Norwegian Krone | 7/15/10 | 36,924,000 | 6,135,594 | 6,237,081 | 101,487 | |||||||||||||
| Norwegian Krone | 7/15/10 | 1,616,000 | 271,350 | 272,969 | 1,619 | |||||||||||||
| Swedish Krona | 7/15/10 | 45,812,000 | 6,338,814 | 6,326,611 | (12,203 | ) | ||||||||||||
| Swiss Franc | 7/15/10 | 3,734,000 | 3,527,267 | 3,473,198 | (54,069 | ) | ||||||||||||
| Swiss Franc | 7/15/10 | 1,565,000 | 1,453,893 | 1,455,692 | 1,799 | |||||||||||||
| Total Long Contracts | $ | 37,485,265 | $ | 37,794,762 | $ | 309,497 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 13
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide International | |||||
| Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $135,351,799)* | $ | 127,562,943 | |||
| Repurchase agreement, at value and cost | 21,346,854 | ||||
| Total Investments | 148,909,797 | ||||
| Foreign currencies, at value (cost $1,094,346) | 1,097,949 | ||||
| Interest and dividends receivable | 329,406 | ||||
| Security lending income receivable | 15,439 | ||||
| Receivable for investments sold | 1,258,337 | ||||
| Receivable for capital shares issued | 50,269 | ||||
| Reclaims receivable | 54,847 | ||||
| Unrealized appreciation on forward foreign currency contracts (Note 2) | 731,210 | ||||
| Prepaid expenses and other assets | 75,522 | ||||
| Total Assets | 152,522,776 | ||||
Liabilities: | |||||
| Payable for investments purchased | 1,475,715 | ||||
| Payable for capital shares redeemed | 3,047 | ||||
| Unrealized depreciation on forward foreign currency contracts (Note 2) | 143,784 | ||||
| Payable upon return of securities loaned (Note 2) | 21,346,854 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 90,251 | ||||
| Fund administration fees | 12,949 | ||||
| Distribution fees | 75 | ||||
| Administrative servicing fees | 53 | ||||
| Accounting and transfer agent fees | 11,503 | ||||
| Trustee fees | 1,966 | ||||
| Deferred capital gain country tax | 6,466 | ||||
| Custodian fees | 493 | ||||
| Compliance program costs (Note 3) | 1,195 | ||||
| Professional fees | 11,155 | ||||
| Printing fees | 1,104 | ||||
| Total Liabilities | 23,106,610 | ||||
Net Assets | $ | 129,416,166 | |||
Represented by: | |||||
| Capital | $ | 183,949,954 | |||
| Accumulated undistributed net investment income | 482,064 | ||||
| Accumulated net realized losses from investment transactions | (47,813,314 | ) | |||
| Net unrealized appreciation/(depreciation) from investments† | (7,795,322 | ) | |||
| Net unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2) | 587,426 | ||||
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 5,358 | ||||
Net Assets | $ | 129,416,166 | |||
* Includes value of securities on loan of $20,393,933 (Note 2)
† Net of $6,466 of deferred capital gain country tax
The accompanying notes are an integral part of these financial statements.
14 Semiannual Report 2010
| Nationwide International | |||||
| Value Fund | |||||
Net Assets: | |||||
| Class A Shares | $ | 411,640 | |||
| Class C Shares | 10,696 | ||||
| Institutional Service Class Shares | 128,969,413 | ||||
| Institutional Class Shares | 24,417 | ||||
| Total | $ | 129,416,166 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 65,678 | ||||
| Class C Shares | 1,717 | ||||
| Institutional Service Class Shares | 20,564,734 | ||||
| Institutional Class Shares | 3,886 | ||||
| Total | 20,636,015 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.27 | |||
| Class C Shares (a) | $ | 6.23 | |||
| Institutional Service Class Shares | $ | 6.27 | |||
| Institutional Class Shares | $ | 6.28 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 6.65 | |||
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.
2010 Semiannual Report 15
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide International | |||||
| Value Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 666 | |||
| Dividend income | 1,616,689 | ||||
| Income from securities lending (Note 2) | 35,380 | ||||
| Foreign tax withholding | (157,359 | ) | |||
| Total Income | 1,495,376 | ||||
EXPENSES: | |||||
| Investment advisory fees | 568,203 | ||||
| Fund administration fees | 75,401 | ||||
| Distribution fees Class A | 346 | ||||
| Distribution fees Class C | 43 | ||||
| Administrative servicing fees Institutional Service Class | 166,730 | ||||
| Registration and filing fees | 19,697 | ||||
| Professional fees | 9,076 | ||||
| Printing fees | 4,916 | ||||
| Trustee fees | 2,897 | ||||
| Custodian fees | 2,372 | ||||
| Accounting and transfer agent fees | 8,646 | ||||
| Compliance program costs (Note 3) | 668 | ||||
| Other | 3,554 | ||||
| Total expenses before earnings credit and expenses reimbursed | 862,549 | ||||
| Earnings credit (Note 5) | (10 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (27,006 | ) | |||
| Net Expenses | 835,533 | ||||
NET INVESTMENT INCOME | 659,843 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (758,373 | ) | |||
| Net realized gains from forward foreign currency and foreign currency transactions | 1,051,249 | ||||
| Net realized gains from investment and foreign currency transactions | 292,876 | ||||
| Net change in unrealized appreciation/(depreciation) from investments† | 1,888,609 | ||||
| Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2) | 577,459 | ||||
| Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 7,165 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | 2,473,233 | ||||
| Net realized/unrealized gains from investments and foreign currency transactions, and forward foreign currency contracts and foreign currency translations | 2,766,109 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,425,952 | |||
| † | Net of deferred capital gain country tax accrual on unrealized depreciation of $6,466. |
The accompanying notes are an integral part of these financial statements.
16 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide International Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 659,843 | $ | 2,464,770 | ||||||
| Net realized gains/(losses) from investment and foreign currency transactions | 292,876 | (45,829,220 | ) | |||||||
| Net change in unrealized appreciation from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies | 2,473,233 | 69,885,112 | ||||||||
| Change in net assets resulting from operations | 3,425,952 | 26,520,662 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (3,095 | ) | – | |||||||
| Class C | (54 | ) | – | |||||||
| Institutional Service Class | (1,975,559 | ) | (3,964 | ) | ||||||
| Institutional Class | (412 | ) | (20 | ) | ||||||
| Change in net assets from shareholder distributions | (1,979,120 | ) | (3,984 | ) | ||||||
| Change in net assets from capital transactions | (4,699,746 | ) | (6,730,904 | ) | ||||||
| Change in net assets | (3,252,914 | ) | 19,785,774 | |||||||
Net Assets: | ||||||||||
| Beginning of period | 132,669,080 | 112,883,306 | ||||||||
| End of period | $ | 129,416,166 | $ | 132,669,080 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 482,064 | $ | 1,801,341 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 288,475 | $ | 328,630 | ||||||
| Dividends reinvested | 3,050 | – | ||||||||
| Cost of shares redeemed (a) | (261,226 | ) | (10,676 | ) | ||||||
| Total Class A | 30,299 | 317,954 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 4,393 | – | ||||||||
| Dividends reinvested | 54 | – | ||||||||
| Cost of shares redeemed | – | (1,649 | ) | |||||||
| Total Class C | 4,447 | (1,649 | ) | |||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 2,212,054 | 6,159,404 | ||||||||
| Dividends reinvested | 1,975,559 | 3,941 | ||||||||
| Cost of shares redeemed | (8,922,517 | ) | (13,210,574 | ) | ||||||
| Total Institutional Service Class | (4,734,904 | ) | (7,047,229 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
(a) Includes redemption fees. See Note 4 to Financial Statements.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 17
Statements of Changes in Net Assets (Continued)
| Nationwide International Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 412 | 20 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Class | 412 | 20 | ||||||||
| Change in net assets from capital transactions | $ | (4,699,746 | ) | $ | (6,730,904 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 44,206 | 54,996 | ||||||||
| Reinvested | 489 | – | ||||||||
| Redeemed | (41,081 | ) | (2,138 | ) | ||||||
| Total Class A Shares | 3,614 | 52,858 | ||||||||
Class C Shares | ||||||||||
| Issued | 708 | – | ||||||||
| Reinvested | 9 | – | ||||||||
| Redeemed | – | (364 | ) | |||||||
| Total Class C Shares | 717 | (364 | ) | |||||||
Institutional Service Class Shares | ||||||||||
| Issued | 344,530 | 1,214,191 | ||||||||
| Reinvested | 316,596 | 824 | ||||||||
| Redeemed | (1,398,879 | ) | (2,659,315 | ) | ||||||
| Total Institutional Service Class Shares | (737,753 | ) | (1,444,300 | ) | ||||||
Institutional Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 66 | 4 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Class Shares | 66 | 4 | ||||||||
| Total change in shares | (733,356 | ) | (1,391,802 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
18 Semiannual Report 2010
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, 2010 (Unaudited) (f) | $ | 6 | .20 | 0 | .04 | 0 | .13 | 0 | .17 | (0 | .10) | – | (0 | .10) | – | $ | 6 | .27 | 2 | .70% | $ | 411,640 | 1 | .25% | 1 | .28% | 1 | .29% | 29 | .53% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 4 | .95 | 0 | .07 | 1 | .18 | 1 | .25 | – | – | – | – | $ | 6 | .20 | 25 | .25% | $ | 384,923 | 1 | .25% | 1 | .31% | 1 | .34% | 54 | .37% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 10 | .00 | 0 | .13 | (5 | .23) | (5 | .10) | – | (0 | .04) | (0 | .04) | 0 | .09 | $ | 4 | .95 | (50 | .26)% | $ | 45,597 | 1 | .38% | 1 | .95% | 1 | .98% | 24 | .23% | |||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .15 | 0 | .01 | 0 | .12 | 0 | .13 | (0 | .05) | – | (0 | .05) | – | $ | 6 | .23 | 2 | .18% | $ | 10,696 | 2 | .00% | 0 | .38% | 2 | .04% | 29 | .53% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 4 | .95 | 0 | .07 | 1 | .13 | 1 | .20 | – | – | – | – | $ | 6 | .15 | 24 | .24% | $ | 6,154 | 2 | .00% | 1 | .36% | 2 | .12% | 54 | .37% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 10 | .00 | 0 | .13 | (5 | .21) | (5 | .08) | – | (0 | .01) | (0 | .01) | 0 | .04 | $ | 4 | .95 | (50 | .46)% | $ | 6,752 | 2 | .01% | 1 | .90% | 3 | .03% | 24 | .23% | |||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .21 | 0 | .03 | 0 | .12 | 0 | .15 | (0 | .09) | – | (0 | .09) | – | $ | 6 | .27 | 2 | .48% | $ | 128,969,413 | 1 | .25% | 0 | .99% | 1 | .29% | 29 | .53% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 4 | .96 | 0 | .11 | 1 | .14 | 1 | .25 | – | – | – | – | $ | 6 | .21 | 25 | .21% | $ | 132,254,218 | 1 | .25% | 2 | .19% | 1 | .36% | 54 | .37% | ||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 6 | .23 | 0 | .04 | 0 | .12 | 0 | .16 | (0 | .11) | – | (0 | .11) | – | $ | 6 | .28 | 2 | .54% | $ | 24,417 | 1 | .00% | 1 | .24% | 1 | .04% | 29 | .53% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 4 | .97 | 0 | .12 | 1 | .15 | 1 | .27 | (0 | .01) | – | (0 | .01) | – | $ | 6 | .23 | 25 | .49% | $ | 23,785 | 1 | .00% | 2 | .44% | 1 | .11% | 54 | .37% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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) | Per share calculations were performed using average shares method. |
| (g) | 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.
2010 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, 2010, the Nationwide Large Cap Value Fund (Class A at NAV) returned 16.08% versus 17.77% for its benchmark, the Russell 1000® Value Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Large-Cap Value Funds (consisting of 551 funds as of April 30, 2010) was 14.65% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from investments in the energy, industrials and materials sectors. Fund holdings within the chemical, machinery, and oil, gas and consumable fuels industries were the strongest performers. Standout names were Fund holdings Bucyrus International, Inc., a manufacturer of mining equipment and Pioneer Natural Resources Co. Independent oil and gas exploration and production company Pioneer Natural Resources easily surpassed fourth-quarter 2010 earnings predictions. The earnings surprise was attributed to effective cost controls and a stronger pricing environment. Bucyrus International crushed third-quarter 2010 expectations and reported third-quarter earnings per share 35 cents above the consensus of 86 cents. Bucyrus later announced the acquisition of Terex Corp.’s mining equipment business. Bucyrus’ stock surged higher as investors responded positively to the transformative deal.
What areas of investment detracted from Fund performance?
Fund performance was hurt most by investments in the consumer discretionary and financials sectors during the reporting period. Fund holdings in several industries within the consumer discretionary sector proved challenging to Fund results. The Fund’s difficulty within the financials sector occurred mainly with the Fund’s holdings in the commercial banking industry. Fundamentally challenged smaller regional banks increased in market price, but were not fully represented in the Fund, which hurt Fund performance. As the market rally continued during the reporting period, consumer discretionary shares continued their ascent, gaining nearly 39%. While consumer discretionary Fund holdings gained a healthy 31%, unfortunately many of the leading consumer discretionary securities did not fit the Fund’s investment criteria and were not held, thus preventing the Fund from fully participating in the rally in that sector’s shares.
What is your outlook for the near term?
We foresee the balance of 2010 as a skirmish between market bulls and bears. The result of such a battle will, on the surface, appear to be a period of moderate stock returns. Further analysis will reveal the wide divergence of individual stock price performance. There will be winners and losers. Skillful equity managers who utilize and adhere to an investment process focused on unearthing unique and insightful investment opportunities will be rewarded. It is our continued expectation that this market backdrop will aid our team in delivering positive client outcomes.
Subadviser:
NorthPointe Capital® LLC
NorthPointe Capital® LLC
Portfolio Managers:
Peter J. Cahill, CFA; Mary C. Champagne, CFA; and
Peter J. Cahill, CFA; Mary C. Champagne, CFA; and
Jeffrey C. Petherick, CFA
20 Semiannual Report 2010
| Fund Performance | Nationwide Large Cap Value Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 16.08% | 39.95% | 1.77% | 4.05% | |||||||||||||
| w/SC2 | 9.40% | 31.82% | 0.58% | 3.43% | ||||||||||||||
| Class B | w/o SC1 | 15.65% | 39.16% | 1.13% | 3.37% | |||||||||||||
| w/SC3 | 10.65% | 34.16% | 0.84% | 3.37% | ||||||||||||||
Class C4 | w/o SC1 | 15.73% | 39.17% | 1.14% | 3.39% | |||||||||||||
| w/SC5 | 14.73% | 38.17% | 1.14% | 3.39% | ||||||||||||||
Class R26,7,8 | 15.92% | 39.99% | 1.64% | 3.71% | ||||||||||||||
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| * | 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 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. | |
| 5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. | |
| 6 | Not subject to any sales charges. | |
| 7 | 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 2.66% | 1.52% | ||||||||
| Class B | 3.29% | 2.15% | ||||||||
| Class C | 3.29% | 2.15% | ||||||||
| Class R2 | 2.99% | 1.85% | ||||||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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 4/30/10. 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. |
2010 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Large Cap | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Value Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,160.80 | 8.20 | 1.53 | |||||||||||||||
| Hypotheticalb | 1,000.00 | 1,017.21 | 7.65 | 1.53 | ||||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,156.50 | 11.50 | 2.15 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.13 | 10.74 | 2.15 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,157.30 | 11.50 | 2.15 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.13 | 10.74 | 2.15 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,159.20 | 8.83 | 1.65 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.61 | 8.25 | 1.65 | |||||||||||||||
| 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 with Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
22 Semiannual Report 2010
| Portfolio Summary | Nationwide Large Cap Value Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 99 | .9% | ||
| Mutual Fund | 0 | .1% | ||
| Liabilities in excess of other assets ‡ | (0 | .0)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Oil, Gas & Consumable Fuels | 16 | .2% | ||
| Diversified Financial Services | 7 | .5% | ||
| Commercial Banks | 6 | .5% | ||
| Insurance | 5 | .2% | ||
| Diversified Telecommunication Services | 4 | .9% | ||
| Media | 4 | .8% | ||
| Pharmaceuticals | 3 | .9% | ||
| Industrial Conglomerates | 3 | .7% | ||
| Real Estate Investment Trusts (REITs) | 3 | .5% | ||
| Electric Utilities | 3 | .2% | ||
| Other Industries | 40 | .6% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Chevron Corp. | 4 | .3% | ||
| Bank of America Corp. | 3 | .9% | ||
| General Electric Co. | 3 | .7% | ||
| AT&T, Inc. | 3 | .6% | ||
| Exxon Mobil Corp. | 3 | .5% | ||
| Wells Fargo & Co. | 3 | .4% | ||
| JPMorgan Chase & Co. | 2 | .8% | ||
| ConocoPhillips | 2 | .0% | ||
| Goldman Sachs Group, Inc. (The) | 1 | .9% | ||
| Pfizer, Inc. | 1 | .9% | ||
| Other Holdings | 69 | .0% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 23
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Large Cap Value Fund
| Common Stocks 99.9% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 2.5% | ||||||||
| General Dynamics Corp. | 3,000 | $ | 229,080 | |||||
| L-3 Communications Holdings, Inc. | 2,100 | 196,497 | ||||||
| 425,577 | ||||||||
Air Freight & Logistics 0.9% | ||||||||
| FedEx Corp. | 1,600 | 144,016 | ||||||
Auto Components 0.5% | ||||||||
| Lear Corp.* | 1,000 | 81,180 | ||||||
Beverages 0.7% | ||||||||
| Central European Distribution Corp.* | 3,300 | 114,345 | ||||||
Biotechnology 0.7% | ||||||||
| United Therapeutics Corp.* | 2,000 | 113,780 | ||||||
Building Products 0.8% | ||||||||
| Armstrong World Industries, Inc.* | 3,000 | 130,650 | ||||||
Capital Markets 2.8% | ||||||||
| BlackRock, Inc. | 800 | 147,200 | ||||||
| Goldman Sachs Group, Inc. (The) | 2,200 | 319,440 | ||||||
| 466,640 | ||||||||
Chemicals 2.6% | ||||||||
| Ashland, Inc. | 2,800 | 166,768 | ||||||
| Cabot Corp. | 4,300 | 139,922 | ||||||
| Cytec Industries, Inc. | 2,800 | 134,568 | ||||||
| 441,258 | ||||||||
Commercial Banks 6.5% | ||||||||
| Fifth Third Bancorp | 9,700 | 144,627 | ||||||
| PNC Financial Services Group, Inc. | 3,000 | 201,630 | ||||||
| U.S. Bancorp | 7,100 | 190,067 | ||||||
| Wells Fargo & Co. | 17,200 | 569,492 | ||||||
| 1,105,816 | ||||||||
Commercial Services & Supplies 0.7% | ||||||||
| Brink’s Co. (The) | 4,600 | 122,498 | ||||||
Computers & Peripherals 1.1% | ||||||||
| Western Digital Corp.* | 4,500 | 184,905 | ||||||
Containers & Packaging 0.7% | ||||||||
| AptarGroup, Inc. | 2,800 | 120,512 | ||||||
Diversified Financial Services 7.5% | ||||||||
| Bank of America Corp. | 36,718 | 654,682 | ||||||
| Citigroup, Inc.* | 33,500 | 146,395 | ||||||
| JPMorgan Chase & Co. | 11,128 | 473,830 | ||||||
| 1,274,907 | ||||||||
Diversified Telecommunication Services 4.9% | ||||||||
| AT&T, Inc. | 23,652 | 616,371 | ||||||
| Qwest Communications International, Inc. | 13,700 | 71,651 | ||||||
| Verizon Communications, Inc. | 5,000 | 144,450 | ||||||
| 832,472 | ||||||||
Electric Utilities 3.2% | ||||||||
| American Electric Power Co., Inc. | 5,700 | 195,510 | ||||||
| Entergy Corp. | 1,700 | 138,193 | ||||||
| FPL Group, Inc. | 2,000 | 104,100 | ||||||
| PPL Corp. | 4,200 | 103,992 | ||||||
| 541,795 | ||||||||
Electronic Equipment, Instruments & Components 0.9% | ||||||||
| Jabil Circuit, Inc. | 10,100 | 154,732 | ||||||
Energy Equipment & Services 2.6% | ||||||||
| National Oilwell Varco, Inc. | 2,800 | 123,284 | ||||||
| Patterson-UTI Energy, Inc. | 7,200 | 110,088 | ||||||
| Rowan Cos., Inc.* | 7,000 | 208,600 | ||||||
| 441,972 | ||||||||
Food & Staples Retailing 1.0% | ||||||||
| CVS Caremark Corp. | 4,500 | 166,185 | ||||||
Food Products 2.1% | ||||||||
| Archer-Daniels-Midland Co. | 6,800 | 189,992 | ||||||
| Del Monte Foods Co. | 11,100 | 165,834 | ||||||
| 355,826 | ||||||||
Gas Utilities 0.8% | ||||||||
| Oneok, Inc. | 2,700 | 132,678 | ||||||
Health Care Equipment & Supplies 0.9% | ||||||||
| Kinetic Concepts, Inc.* | 3,400 | 147,220 | ||||||
Health Care Providers & Services 2.5% | ||||||||
| CIGNA Corp. | 4,400 | 141,064 | ||||||
| Humana, Inc.* | 3,400 | 155,448 | ||||||
| UnitedHealth Group, Inc. | 4,400 | 133,364 | ||||||
| 429,876 | ||||||||
Hotels, Restaurants & Leisure 0.8% | ||||||||
| Wyndham Worldwide Corp. | 4,800 | 128,688 | ||||||
Household Durables 1.4% | ||||||||
| Whirlpool Corp. | 2,200 | 239,514 | ||||||
Household Products 0.5% | ||||||||
| Procter & Gamble Co. (The) | 1,400 | 87,024 | ||||||
Independent Power Producers & Energy Traders 0.9% | ||||||||
| Mirant Corp.* | 13,700 | 159,742 | ||||||
Industrial Conglomerates 3.7% | ||||||||
| General Electric Co. | 33,000 | 622,380 | ||||||
Insurance 5.2% | ||||||||
| Hartford Financial Services Group, Inc. | 5,500 | 157,135 | ||||||
24 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Insurance (continued) | ||||||||
| Prudential Financial, Inc. | 2,500 | $ | 158,900 | |||||
| Reinsurance Group of America, Inc. | 3,200 | 165,216 | ||||||
| Travelers Cos., Inc. (The) | 4,600 | 233,404 | ||||||
| Unum Group | 6,900 | 168,843 | ||||||
| 883,498 | ||||||||
Leisure Equipment & Products 0.9% | ||||||||
| Mattel, Inc. | 6,300 | 145,215 | ||||||
Machinery 1.7% | ||||||||
| AGCO Corp.* | 3,200 | 112,064 | ||||||
| Trinity Industries, Inc. | 7,000 | 174,230 | ||||||
| 286,294 | ||||||||
Media 4.8% | ||||||||
| Gannett Co., Inc. | 10,600 | 180,412 | ||||||
| Meredith Corp. | 3,500 | 125,755 | ||||||
| New York Times Co. (The), Class A* | 12,200 | 121,024 | ||||||
| Viacom, Inc., Class B* | 4,500 | 158,985 | ||||||
| Walt Disney Co. (The) | 6,300 | 232,092 | ||||||
| 818,268 | ||||||||
Metals & Mining 1.0% | ||||||||
| Alcoa, Inc. | 13,000 | 174,720 | ||||||
Multiline Retail 0.7% | ||||||||
| Family Dollar Stores, Inc. | 2,800 | 110,768 | ||||||
Multi-Utilities 1.8% | ||||||||
| CMS Energy Corp. | 7,900 | 128,454 | ||||||
| NiSource, Inc. | 10,800 | 176,040 | ||||||
| 304,494 | ||||||||
Oil, Gas & Consumable Fuels 16.2% | ||||||||
| Chevron Corp. | 8,900 | 724,816 | ||||||
| ConocoPhillips | 5,700 | 337,383 | ||||||
| Exxon Mobil Corp. | 8,800 | 597,080 | ||||||
| Hess Corp. | 2,400 | 152,520 | ||||||
| Marathon Oil Corp. | 8,200 | 263,630 | ||||||
| Murphy Oil Corp. | 3,200 | 192,480 | ||||||
| Pioneer Natural Resources Co. | 3,800 | 243,694 | ||||||
| Valero Energy Corp. | 10,800 | 224,532 | ||||||
| 2,736,135 | ||||||||
Personal Products 0.5% | ||||||||
| NBTY, Inc.* | 2,100 | 85,428 | ||||||
Pharmaceuticals 3.9% | ||||||||
| Eli Lilly & Co. | 5,600 | 195,832 | ||||||
| Merck & Co., Inc. | 4,400 | 154,176 | ||||||
| Pfizer, Inc. | 18,852 | 315,206 | ||||||
| 665,214 | ||||||||
Real Estate Investment Trusts (REITs) 3.5% | ||||||||
| Duke Realty Corp. | 9,200 | 124,476 | ||||||
| Hospitality Properties Trust | 8,000 | 211,920 | ||||||
| SL Green Realty Corp. | 4,100 | 254,897 | ||||||
| 591,293 | ||||||||
Road & Rail 0.9% | ||||||||
| Kansas City Southern* | 3,900 | 158,145 | ||||||
Semiconductors & Semiconductor Equipment 1.7% | ||||||||
| Micron Technology, Inc.* | 16,400 | 153,340 | ||||||
| Texas Instruments, Inc. | 5,500 | 143,055 | ||||||
| 296,395 | ||||||||
Software 0.7% | ||||||||
| Microsoft Corp. | 3,800 | 116,052 | ||||||
Specialty Retail 1.6% | ||||||||
| AutoZone, Inc.* | 700 | 129,507 | ||||||
| Best Buy Co., Inc. | 3,200 | 145,920 | ||||||
| 275,427 | ||||||||
Tobacco 0.6% | ||||||||
| Altria Group, Inc. | 4,900 | 103,831 | ||||||
Total Common Stocks (cost $14,508,966) | 16,917,365 | |||||||
| Mutual Fund 0.1% | ||||||||
Money Market Fund 0.1% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (a) | 24,281 | 24,281 | ||||||
Total Mutual Fund (cost $24,281) | 24,281 | |||||||
Total Investments (cost $14,533,247) (b) — 100.0% | 16,941,646 | |||||||
Liabilities in excess of other assets — 0.0% | (2,925 | ) | ||||||
NET ASSETS — 100.0% | $ | 16,938,721 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | Represents 7-day effective yield as of April 30, 2010. | |
| (b) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| REIT | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 25
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Large | |||||
| Cap Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $14,533,247) | $ | 16,941,646 | |||
| Interest and dividends receivable | 24,565 | ||||
| Receivable for capital shares issued | 2,485 | ||||
| Prepaid expenses and other assets | 36,906 | ||||
| Total Assets | 17,005,602 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 27,869 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 6,206 | ||||
| Fund administration fees | 1,637 | ||||
| Distribution fees | 5,168 | ||||
| Administrative servicing fees | 8,082 | ||||
| Accounting and transfer agent fees | 6,686 | ||||
| Trustee fees | 238 | ||||
| Custodian fees | 602 | ||||
| Compliance program costs (Note 3) | 146 | ||||
| Professional fees | 3,841 | ||||
| Printing fees | 6,406 | ||||
| Total Liabilities | 66,881 | ||||
Net Assets | $ | 16,938,721 | |||
Represented by: | |||||
| Capital | $ | 22,219,984 | |||
| Accumulated undistributed net investment income | 25,114 | ||||
| Accumulated net realized losses from investment transactions | (7,714,776 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 2,408,399 | ||||
Net Assets | $ | 16,938,721 | |||
Net Assets: | |||||
| Class A Shares | $ | 14,290,636 | |||
| Class B Shares | 718,840 | ||||
| Class C Shares | 1,864,436 | ||||
| Class R2 Shares | 64,809 | ||||
| Total | $ | 16,938,721 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,507,995 | ||||
| Class B Shares | 77,681 | ||||
| Class C Shares | 202,505 | ||||
| Class R2 Shares | 7,002 | ||||
| Total | 1,795,183 | ||||
| (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.
26 Semiannual Report 2010
| 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 | $ | 9.48 | |||
| Class B Shares (a) | $ | 9.25 | |||
| Class C Shares (b) | $ | 9.21 | |||
| Class R2 Shares | $ | 9.26 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.06 | |||
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.
2010 Semiannual Report 27
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Large | |||||
| Cap Value Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 2 | |||
| Dividend income | 187,579 | ||||
| Total Income | 187,581 | ||||
EXPENSES: | |||||
| Investment advisory fees | 61,948 | ||||
| Fund administration fees | 9,318 | ||||
| Distribution fees Class A | 17,385 | ||||
| Distribution fees Class B | 3,426 | ||||
| Distribution fees Class C | 9,333 | ||||
| Distribution fees Class R2 | 150 | ||||
| Administrative servicing fees Class A | 9,236 | ||||
| Registration and filing fees | 25,003 | ||||
| Professional fees | 3,620 | ||||
| Printing fees | 4,454 | ||||
| Trustee fees | 357 | ||||
| Custodian fees | 1,347 | ||||
| Accounting and transfer agent fees | 7,716 | ||||
| Compliance program costs (Note 3) | 83 | ||||
| Other | 1,074 | ||||
| Total expenses before earnings credit and expenses reimbursed | 154,450 | ||||
| Earnings credit (Note 5) | (90 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (19,811 | ) | |||
| Net Expenses | 134,549 | ||||
NET INVESTMENT INCOME | 53,032 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 519,089 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,881,358 | ||||
| Net realized/unrealized gains from investments | 2,400,447 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,453,479 | |||
The accompanying notes are an integral part of these financial statements.
28 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Large Cap Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 53,032 | $ | 203,474 | ||||||
| Net realized gains/(losses) from investment transactions | 519,089 | (5,811,199 | ) | |||||||
| Net change in unrealized appreciation from investments | 1,881,358 | 5,433,692 | ||||||||
| Change in net assets resulting from operations | 2,453,479 | (174,033 | ) | |||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (40,561 | ) | (176,232 | ) | ||||||
| Class B | (982 | ) | (7,624 | ) | ||||||
| Class C | (2,766 | ) | (22,848 | ) | ||||||
| Class R2 (a) | (158 | ) | (674 | ) | ||||||
| Change in net assets from shareholder distributions | (44,467 | ) | (207,378 | ) | ||||||
| Change in net assets from capital transactions | (1,751,351 | ) | 602,481 | |||||||
| Change in net assets | 657,661 | 221,070 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 16,281,060 | 16,059,990 | ||||||||
| End of period | $ | 16,938,721 | $ | 16,281,060 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 25,114 | $ | 16,549 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,223,094 | $ | 5,630,868 | ||||||
| Dividends reinvested | 36,503 | 153,757 | ||||||||
| Cost of shares redeemed (b) | (2,772,340 | ) | (4,510,416 | ) | ||||||
| Total Class A | (1,512,743 | ) | 1,274,209 | |||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 3,698 | 79,581 | ||||||||
| Dividends reinvested | 654 | 5,486 | ||||||||
| Cost of shares redeemed (b) | (24,617 | ) | (211,088 | ) | ||||||
| Total Class B | (20,265 | ) | (126,021 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 61,179 | 203,340 | ||||||||
| Dividends reinvested | 1,105 | 6,750 | ||||||||
| Cost of shares redeemed (b) | (282,195 | ) | (793,964 | ) | ||||||
| Total Class C | (219,911 | ) | (583,874 | ) | ||||||
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.
2010 Semiannual Report 29
Statements of Changes in Net Assets (Continued)
| Nationwide Large Cap Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 2,655 | $ | 37,493 | ||||||
| Dividends reinvested | 158 | 674 | ||||||||
| Cost of shares redeemed | (1,245 | ) | – | |||||||
| Total Class R2 | 1,568 | 38,167 | ||||||||
| Change in net assets from capital transactions | $ | (1,751,351 | ) | $ | 602,481 | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 136,281 | 779,437 | ||||||||
| Reinvested | 4,191 | 22,994 | ||||||||
| Redeemed | (313,070 | ) | (697,183 | ) | ||||||
| Total Class A Shares | (172,598 | ) | 105,248 | |||||||
Class B Shares | ||||||||||
| Issued | 425 | 12,516 | ||||||||
| Reinvested | 77 | 857 | ||||||||
| Redeemed | (2,817 | ) | (29,451 | ) | ||||||
| Total Class B Shares | (2,315 | ) | (16,078 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 7,005 | 28,785 | ||||||||
| Reinvested | 130 | 1,064 | ||||||||
| Redeemed | (32,184 | ) | (114,945 | ) | ||||||
| Total Class C Shares | (25,049 | ) | (85,096 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 311 | 4,618 | ||||||||
| Reinvested | 19 | 103 | ||||||||
| Redeemed | (148 | ) | – | |||||||
| Total Class R2 Shares | 182 | 4,721 | ||||||||
| Total change in shares | (199,780 | ) | 8,795 | |||||||
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 2010
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 (Losses) | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | Total 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, 2010 (Unaudited) (f) | $ | 8 | .19 | 0 | .03 | 1 | .29 | 1 | .32 | (0 | .03) | – | (0 | .03) | $ | 9 | .48 | 16 | .08% | $ | 14,290,636 | 1 | .53% | 0 | .74% | 1 | .77% | 40 | .87% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .12 | 0 | .11 | 0 | .07 | 0 | .18 | (0 | .11) | – | (0 | .11) | $ | 8 | .19 | 2 | .59% | $ | 13,770,844 | 1 | .56% | 1 | .50% | 2 | .00% | 102 | .14% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 14 | .03 | 0 | .15 | (4 | .40) | (4 | .25) | (0 | .14) | (1 | .52) | (1 | .66) | $ | 8 | .12 | (33 | .74%) | $ | 12,802,001 | 1 | .49% | 1 | .39% | 1 | .52% | 116 | .40% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 (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 | .43% | 88 | .20% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2006 | $ | 13 | .14 | 0 | .17 | 2 | .46 | 2 | .63 | (0 | .15) | (0 | .60) | (0 | .75) | $ | 15 | .02 | 20 | .81% | $ | 23,752,997 | 1 | .44% | 1 | .14% | 1 | .44% | 95 | .14% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2005 | $ | 11 | .79 | 0 | .15 | 1 | .34 | 1 | .49 | (0 | .14) | – | (0 | .14) | $ | 13 | .14 | 12 | .63% | $ | 28,231,989 | 1 | .44% | 1 | .09% | 1 | .47% | 67 | .00% | ||||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .01 | – | 1 | .25 | 1 | .25 | (0 | .01) | – | (0 | .01) | $ | 9 | .25 | 15 | .65% | $ | 718,840 | 2 | .15% | 0 | .11% | 2 | .39% | 40 | .87% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .95 | 0 | .06 | 0 | .08 | 0 | .14 | (0 | .08) | – | (0 | .08) | $ | 8 | .01 | 2 | .04% | $ | 641,118 | 2 | .22% | 0 | .85% | 2 | .60% | 102 | .14% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 13 | .79 | 0 | .08 | (4 | .33) | (4 | .25) | (0 | .07) | (1 | .52) | (1 | .59) | $ | 7 | .95 | (34 | .25)% | $ | 765,344 | 2 | .15% | 0 | .72% | 2 | .19% | 116 | .40% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 (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% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .97 | – | 1 | .25 | 1 | .25 | (0 | .01) | – | (0 | .01) | $ | 9 | .21 | 15 | .73% | $ | 1,864,436 | 2 | .15% | 0 | .11% | 2 | .39% | 40 | .87% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .92 | 0 | .07 | 0 | .06 | 0 | .13 | (0 | .08) | – | (0 | .08) | $ | 7 | .97 | 1 | .88% | $ | 1,814,499 | 2 | .15% | 0 | .98% | 2 | .60% | 102 | .14% | ||||||||||||||||||||||||||||||||||||||||||
| 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 | .74% | 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% | 61 | .00% | ||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .01 | 0 | .03 | 1 | .24 | 1 | .27 | (0 | .02) | – | (0 | .02) | $ | 9 | .26 | 15 | .92% | $ | 64,809 | 1 | .65% | 0 | .60% | 1 | .89% | 40 | .87% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .95 | 0 | .09 | 0 | .08 | 0 | .17 | (0 | .11) | – | (0 | .11) | $ | 8 | .01 | 2 | .49% | $ | 54,599 | 1 | .66% | 1 | .30% | 2 | .10% | 102 | .14% | ||||||||||||||||||||||||||||||||||||||||||
| 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 | .21% | 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 | .71% | 88 | .20% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2006 | $ | 12 | .97 | 0 | .14 | 2 | .44 | 2 | .58 | (0 | .14) | (0 | .60) | (0 | .74) | $ | 14 | .81 | 20 | .69% | $ | 1,608 | 1 | .57% | 1 | .00% | 1 | .59% | 95 | .14% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2005 | $ | 11 | .64 | 0 | .15 | 1 | .33 | 1 | .48 | (0 | .15) | – | (0 | .15) | $ | 12 | .97 | 12 | .73% | $ | 1,333 | 1 | .33% | 1 | .18% | 1 | .38% | 67 | .00% | ||||||||||||||||||||||||||||||||||||||||||
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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 31
| 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, 2010, the Nationwide U.S. Small Cap Value Fund (Class A at NAV) returned 30.63% versus 30.66% for its benchmark, the Russell 2000® Value Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Small-Cap Value Funds (consisting of 298 funds as of April 30, 2010) was 27.86% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s greater exposure than the benchmark Index to deep-value stocks, which outperformed relative to other value and growth segments during the reporting period, had a positive impact on relative Fund performance. Composition differences within various market capitalization segments, especially within larger small-cap and mid-cap stocks, helped relative Fund performance. The Fund had greater exposure than the benchmark Index to stocks in the consumer discretionary sector, which was the best-performing sector during the reporting period. This overweight position also helped relative Fund performance.
What areas of investment detracted from Fund performance?
The Fund’s deep-value securities underperformed their counterparts in the benchmark Index, which hurt relative Fund performance. The Fund’s greater allocation than the benchmark Index to mid-cap stocks hurt relative Fund performance; mid-cap stocks underperformed relative to the rest of the small-cap universe during the reporting period. The Fund’s holdings in consumer discretionary stocks underperformed their counterparts in the benchmark Index, which also had a negative impact on relative performance.
What is your outlook for the near term?
Dimensional Fund Advisors does not make economic or financial forecasts. The Fund’s strategic investment approach is based on scientific research into the sources of risk and return in equity markets and does not make macroeconomic forecasts or tactical allocations.
Subadviser:
Dimensional Fund Advisors LP
Dimensional Fund Advisors LP
Portfolio Manager:
Stephen A. Clark
Stephen A. Clark
32 Semiannual Report 2010
| Fund Performance | Nationwide U.S. Small Cap Value Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 30.63% | 59.17% | 0.81% | ||||||||||
| w/SC3 | 23.06% | 50.07% | -1.68% | |||||||||||
| Class C | w/o SC2 | 30.00% | 54.13% | 0.18% | ||||||||||
| w/SC4 | 29.00% | 53.13% | 0.18% | |||||||||||
Institutional Service Class5 | 30.46% | 55.21% | 0.95% | |||||||||||
Institutional Class5 | 30.67% | 55.63% | 1.22% | |||||||||||
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 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 | 2 | .09% | 1 | .37% | ||||
| Class C | 2 | .81% | 2 | .09% | ||||
| Institutional Service Class | 2 | .06% | 1 | .34% | ||||
| Institutional Class | 1 | .81% | 1 | .09% | ||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 33
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide U.S. Small Cap Value Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,306.30 | 7.66 | 1.34 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.15 | 6.71 | 1.34 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,300.00 | 11.86 | 2.08 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,014.48 | 10.39 | 2.08 | |||||||||||||||
| Institutional Service Class Shares | Actual Hypothetical | b | 1,000.00 1,000.00 | 1,304.60 1,018.15 | 7.66 6.71 | 1.34 1.34 | ||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,306.70 | 6.23 | 1.09 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.39 | 5.46 | 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 Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
34 Semiannual Report 2010
| Portfolio Summary | Nationwide U.S. Small Cap Value Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 97 | .1% | ||
| Mutual Fund | 3 | .9% | ||
| Liabilities in excess of other assets | (1 | .0)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Insurance | 10 | .5% | ||
| Commercial Banks | 9 | .9% | ||
| Specialty Retail | 4 | .8% | ||
| Electronic Equipment, Instruments & Components 4.4% | ||||
| Oil, Gas & Consumable Fuels | 4 | .4% | ||
| Chemicals | 3 | .6% | ||
| Semiconductors & Semiconductor Equipment | 3 | .4% | ||
| Energy Equipment & Services | 3 | .4% | ||
| Household Durables | 3 | .2% | ||
| Thrifts & Mortgage Finance | 3 | .1% | ||
| Other Industries | 49 | .3% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Invesco AIM Liquid Assets Portfolio | 3 | .9% | ||
| Liberty Media Corp. — Capital | 0 | .8% | ||
| Wyndham Worldwide Corp. | 0 | .7% | ||
| Ashland, Inc. | 0 | .6% | ||
| Mohawk Industries, Inc. | 0 | .6% | ||
| Jarden Corp. | 0 | .6% | ||
| Reinsurance Group of America, Inc. | 0 | .6% | ||
| Cimarex Energy Co. | 0 | .5% | ||
| MeadWestvaco Corp. | 0 | .5% | ||
| Zions Bancorporation | 0 | .5% | ||
| Other Holdings | 90 | .7% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 35
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide U.S. Small Cap Value Fund
| Common Stocks 97.1% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 1.0% | ||||||||
| AAR Corp.* | 1,300 | $ | 31,694 | |||||
| Allied Defense Group, Inc. (The)* | 400 | 2,136 | ||||||
| Argon ST, Inc.* | 1,200 | 31,200 | ||||||
| Ascent Solar Technologies, Inc.* | 2,800 | 10,668 | ||||||
| Ceradyne, Inc.* | 2,600 | 57,720 | ||||||
| Ducommun, Inc. | 800 | 18,312 | ||||||
| Esterline Technologies Corp.* | 2,300 | 128,294 | ||||||
| Innovative Solutions & Support, Inc.* | 563 | 3,277 | ||||||
| Kratos Defense & Security Solutions, Inc.* | 200 | 2,850 | ||||||
| Ladish Co., Inc.* | 600 | 16,494 | ||||||
| LMI Aerospace, Inc.* | 225 | 3,883 | ||||||
| SIFCO Industries, Inc. | 200 | 2,772 | ||||||
| Sparton Corp.* | 800 | 4,672 | ||||||
| Triumph Group, Inc. | 1,400 | 108,584 | ||||||
| 422,556 | ||||||||
Air Freight & Logistics 0.1% | ||||||||
| Air Transport Services Group, Inc.* | 1,300 | 7,150 | ||||||
| Atlas Air Worldwide Holdings, Inc.* | 700 | 38,689 | ||||||
| 45,839 | ||||||||
Airlines 0.6% | ||||||||
| Alaska Air Group, Inc.* | 2,300 | 95,243 | ||||||
| ExpressJet Holdings, Inc.* | 1,500 | 6,000 | ||||||
| JetBlue Airways Corp.* | 12,500 | 69,875 | ||||||
| Pinnacle Airlines Corp.* | 1,975 | 14,437 | ||||||
| SkyWest, Inc. | 3,945 | 59,096 | ||||||
| 244,651 | ||||||||
Auto Components 1.0% | ||||||||
| Dana Holding Corp.* | 400 | 5,344 | ||||||
| Drew Industries, Inc.* | 100 | 2,565 | ||||||
| Federal Mogul Corp.* | 2,200 | 41,844 | ||||||
| Modine Manufacturing Co.* | 3,700 | 51,837 | ||||||
| Motorcar Parts of America, Inc.* | 1,500 | 9,315 | ||||||
| Shiloh Industries, Inc.* | 1,577 | 12,821 | ||||||
| Spartan Motors, Inc. | 3,700 | 22,829 | ||||||
| Standard Motor Products, Inc. | 1,800 | 19,188 | ||||||
| Stoneridge, Inc.* | 1,400 | 15,106 | ||||||
| Superior Industries International, Inc. | 3,319 | 55,958 | ||||||
| TRW Automotive Holdings Corp.* | 5,700 | 183,597 | ||||||
| 420,404 | ||||||||
Beverages 0.4% | ||||||||
| Constellation Brands, Inc., Class A* | 8,400 | 153,468 | ||||||
| Craft Brewers Alliance, Inc.* | 800 | 2,000 | ||||||
| MGP Ingredients, Inc.* | 1,600 | 12,432 | ||||||
| PepsiCo, Inc. | 211 | 13,761 | ||||||
| 181,661 | ||||||||
Biotechnology 0.4% | ||||||||
| Celera Corp.* | 7,000 | 52,290 | ||||||
| Lexicon Pharmaceuticals, Inc.* | 7,400 | 11,914 | ||||||
| Martek Biosciences Corp.* | 3,500 | 77,105 | ||||||
| Maxygen, Inc.* | 3,700 | 23,717 | ||||||
| MediciNova, Inc.* | 570 | 3,699 | ||||||
| 168,725 | ||||||||
Building Products 1.1% | ||||||||
| American Woodmark Corp. | 1,300 | 30,043 | ||||||
| Ameron International Corp. | 500 | 34,695 | ||||||
| Apogee Enterprises, Inc. | 2,300 | 31,602 | ||||||
| Armstrong World Industries, Inc.* | 1,500 | 65,325 | ||||||
| Gibraltar Industries, Inc.* | 2,900 | 43,558 | ||||||
| Griffon Corp.* | 2,508 | 35,363 | ||||||
| Insteel Industries, Inc. | 700 | 8,582 | ||||||
| Owens Corning, Inc.* | 1,900 | 66,082 | ||||||
| Simpson Manufacturing Co., Inc. | 1,500 | 50,985 | ||||||
| Universal Forest Products, Inc. | 1,500 | 63,075 | ||||||
| US Home Systems, Inc.* | 700 | 2,443 | ||||||
| USG Corp.* | 500 | 11,800 | ||||||
| 443,553 | ||||||||
Capital Markets 1.3% | ||||||||
| American Capital Ltd.* | 11,400 | 69,996 | ||||||
| Capital Southwest Corp. | 350 | 32,918 | ||||||
| Cowen Group, Inc., Class A* | 700 | 3,780 | ||||||
| E*Trade Financial Corp.* | 35,800 | 60,144 | ||||||
| FirstCity Financial Corp.* | 1,000 | 7,290 | ||||||
| Harris & Harris Group, Inc.* | 1,150 | 5,577 | ||||||
| International Assets Holding Corp.* | 800 | 12,936 | ||||||
| JMP Group, Inc. | 900 | 6,966 | ||||||
| Knight Capital Group, Inc., Class A* | 4,800 | 74,640 | ||||||
| MCG Capital Corp.* | 8,170 | 54,167 | ||||||
| MF Global Holdings Ltd.* | 6,100 | 56,242 | ||||||
| Penson Worldwide, Inc.* | 2,500 | 23,500 | ||||||
| Piper Jaffray Cos.* | 700 | 27,552 | ||||||
| Safeguard Scientifics, Inc.* | 2,300 | 31,648 | ||||||
| Sanders Morris Harris Group, Inc. | 3,450 | 20,597 | ||||||
| SWS Group, Inc. | 3,400 | 37,638 | ||||||
| Thomas Weisel Partners Group, Inc.* | 1,719 | 13,494 | ||||||
| 539,085 | ||||||||
Chemicals 3.6% | ||||||||
| American Pacific Corp.* | 600 | 3,660 | ||||||
| Ashland, Inc. | 4,400 | 262,064 | ||||||
| Cabot Corp. | 5,300 | 172,462 | ||||||
| Core Molding Technologies, Inc.* | 350 | 1,855 | ||||||
| Cytec Industries, Inc. | 2,900 | 139,374 | ||||||
| Ferro Corp.* | 2,700 | 29,484 | ||||||
| Huntsman Corp. | 5,200 | 59,332 | ||||||
| ICO, Inc. | 1,000 | 8,570 | ||||||
| Innospec, Inc.* | 2,300 | 30,613 | ||||||
| Kronos Worldwide, Inc.* | 900 | 17,100 | ||||||
| Landec Corp.* | 2,400 | 14,712 | ||||||
| Minerals Technologies, Inc. | 1,000 | 57,700 | ||||||
| OM Group, Inc.* | 2,600 | 98,150 | ||||||
| Penford Corp.* | 1,400 | 12,950 | ||||||
36 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Chemicals (continued) | ||||||||
| PolyOne Corp.* | 7,100 | $ | 80,301 | |||||
| Quaker Chemical Corp. | 1,000 | 31,470 | ||||||
| Rockwood Holdings, Inc.* | 700 | 20,958 | ||||||
| Sensient Technologies Corp. | 1,800 | 56,754 | ||||||
| Spartech Corp.* | 3,200 | 45,568 | ||||||
| Valspar Corp. | 5,900 | 184,788 | ||||||
| Westlake Chemical Corp. | 5,000 | 140,400 | ||||||
| Zoltek Cos., Inc.* | 900 | 8,856 | ||||||
| 1,477,121 | ||||||||
Commercial Banks 10.0% | ||||||||
| 1st Source Corp. | 2,686 | 51,383 | ||||||
| Ameris Bancorp | 1,752 | 19,500 | ||||||
| AmeriServ Financial, Inc.* | 1,800 | 4,032 | ||||||
| Associated Banc-Corp. | 2,600 | 37,778 | ||||||
| Bancorp, Inc. (The)* | 2,600 | 23,062 | ||||||
| BancTrust Financial Group, Inc. | 1,100 | 6,809 | ||||||
| Banner Corp. | 2,700 | 15,309 | ||||||
| Boston Private Financial Holdings, Inc. | 8,101 | 64,241 | ||||||
| Cadence Financial Corp.* | 1,000 | 2,990 | ||||||
| Cape Bancorp, Inc.* | 600 | 4,296 | ||||||
| Capital City Bank Group, Inc. | 2,100 | 36,939 | ||||||
| CapitalSource, Inc. | 12,293 | 73,389 | ||||||
| Capitol Bancorp Ltd.* | 2,400 | 5,856 | ||||||
| Cardinal Financial Corp. | 1,900 | 20,805 | ||||||
| Cascade Financial Corp.* | 747 | 1,501 | ||||||
| Cathay General Bancorp | 7,453 | 92,194 | ||||||
| Center Bancorp, Inc. | 950 | 7,904 | ||||||
| Center Financial Corp.* | 2,102 | 14,167 | ||||||
| Central Jersey Bancorp* | 700 | 2,590 | ||||||
| Central Pacific Financial Corp.* | 3,200 | 6,976 | ||||||
| Chemical Financial Corp. | 1,300 | 30,810 | ||||||
| City National Corp. | 900 | 56,052 | ||||||
| CoBiz Financial, Inc. | 3,406 | 24,319 | ||||||
| Columbia Banking System, Inc. | 2,700 | 60,696 | ||||||
| Comerica, Inc. | 214 | 8,988 | ||||||
| Community Bank System, Inc. | 1,200 | 29,604 | ||||||
| Community Trust Bancorp, Inc. | 800 | 24,016 | ||||||
| Crescent Financial Corp.* | 300 | 1,104 | ||||||
| Danvers Bancorp, Inc. | 1,600 | 26,160 | ||||||
| East West Bancorp, Inc. | 5,000 | 97,950 | ||||||
| Encore Bancshares, Inc.* | 900 | 9,261 | ||||||
| Enterprise Financial Services Corp. | 1,463 | 15,376 | ||||||
| Fidelity Southern Corp.* | 1,206 | 10,758 | ||||||
| Financial Institutions, Inc. | 1,089 | 17,511 | ||||||
| First Bancorp, North Carolina | 1,500 | 24,465 | ||||||
| First Bancorp, Puerto Rico | 12,800 | 27,136 | ||||||
| First Busey Corp. | 3,200 | 16,160 | ||||||
| First Commonwealth Financial Corp. | 7,792 | 51,038 | ||||||
| First Community Bancshares, Inc. | 1,884 | 31,369 | ||||||
| First Financial Bancorp | 3,200 | 61,152 | ||||||
| First Financial Corp. | 200 | 5,830 | ||||||
| First Horizon National Corp.* | 13,150 | 186,072 | ||||||
| First Merchants Corp. | 2,000 | 17,480 | ||||||
| First Midwest Bancorp, Inc. | 3,500 | 53,200 | ||||||
| First Security Group, Inc. | 900 | 2,574 | ||||||
| First South Bancorp, Inc. | 850 | 11,849 | ||||||
| FirstMerit Corp. | 1,826 | 42,911 | ||||||
| FNB Corp. | 10,466 | 97,543 | ||||||
| FNB United Corp. | 1,000 | 1,770 | ||||||
| Fulton Financial Corp. | 9,400 | 98,700 | ||||||
| German American Bancorp, Inc. | 1,000 | 15,910 | ||||||
| Great Southern Bancorp, Inc. | 1,000 | 24,390 | ||||||
| Green Bankshares, Inc.* | 1,261 | 15,939 | ||||||
| Guaranty Bancorp* | 5,200 | 8,164 | ||||||
| Hampton Roads Bankshares, Inc. | 670 | 1,936 | ||||||
| Hanmi Financial Corp.* | 5,800 | 17,284 | ||||||
| Heartland Financial USA, Inc. | 1,847 | 35,296 | ||||||
| Heritage Commerce Corp.* | 800 | 4,416 | ||||||
| Home Bancorp, Inc.* | 850 | 11,790 | ||||||
| Huntington Bancshares, Inc. | 14,800 | 100,196 | ||||||
| IBERIABANK Corp. | 1,000 | 61,640 | ||||||
| Independent Bank Corp. | 1,825 | 47,340 | ||||||
| Independent Bank Corp., Michigan | 163 | 187 | ||||||
| Investors Bancorp, Inc.* | 565 | 7,859 | ||||||
| Lakeland Bancorp, Inc. | 2,332 | 24,486 | ||||||
| Macatawa Bank Corp.* | 1,045 | 2,038 | ||||||
| MainSource Financial Group, Inc. | 2,623 | 21,220 | ||||||
| MB Financial, Inc. | 3,479 | 85,236 | ||||||
| MBT Financial Corp. | 1,450 | 4,234 | ||||||
| Mercantile Bank Corp. | 600 | 3,582 | ||||||
| Nara Bancorp, Inc.* | 4,100 | 36,900 | ||||||
| National Penn Bancshares, Inc. | 9,100 | 66,612 | ||||||
| NewBridge Bancorp* | 1,950 | 9,262 | ||||||
| North Valley Bancorp* | 390 | 1,033 | ||||||
| Old National Bancorp | 3,900 | 52,299 | ||||||
| Old Second Bancorp, Inc. | 1,500 | 8,580 | ||||||
| Oriental Financial Group, Inc. | 1,200 | 20,064 | ||||||
| Pacific Capital Bancorp NA* | 5,700 | 9,918 | ||||||
| Pacific Continental Corp. | 1,640 | 19,008 | ||||||
| Pacific Mercantile Bancorp* | 1,000 | 4,990 | ||||||
| PacWest Bancorp | 2,700 | 64,827 | ||||||
| Peoples Bancorp, Inc. | 1,300 | 22,542 | ||||||
| Pinnacle Financial Partners, Inc.* | 3,331 | 50,898 | ||||||
| Popular, Inc.* | 13,200 | 52,008 | ||||||
| Preferred Bank, Los Angeles* | 720 | 1,397 | ||||||
| PrivateBancorp, Inc. | 3,037 | 43,490 | ||||||
| Prosperity Bancshares, Inc. | 257 | 10,080 | ||||||
| Renasant Corp. | 2,398 | 39,639 | ||||||
| Republic Bancorp, Inc., Class A | 889 | 21,469 | ||||||
| Republic First Bancorp, Inc.* | 800 | 2,984 | ||||||
| S&T Bancorp, Inc. | 1,300 | 31,265 | ||||||
| Sandy Spring Bancorp, Inc. | 600 | 10,470 | ||||||
| SCBT Financial Corp. | 600 | 23,874 | ||||||
| Seacoast Banking Corp of Florida* | 6,300 | 13,734 | ||||||
| Sierra Bancorp | 1,250 | 15,600 | ||||||
| Simmons First National Corp., Class A | 1,600 | 44,928 | ||||||
| Smithtown Bancorp, Inc. | 700 | 3,255 | ||||||
2010 Semiannual Report 37
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| Somerset Hills Bancorp | 400 | $ | 3,476 | |||||
| Southern Community Financial Corp.* | 1,400 | 3,864 | ||||||
| Southwest Bancorp, Inc. | 600 | 8,796 | ||||||
| State Bancorp, Inc. | 1,778 | 17,602 | ||||||
| StellarOne Corp. | 2,576 | 38,408 | ||||||
| Sterling Bancshares, Inc. | 8,500 | 49,980 | ||||||
| Sun Bancorp, Inc.* | 364 | 1,966 | ||||||
| Superior Bancorp* | 1,400 | 4,956 | ||||||
| Susquehanna Bancshares, Inc. | 11,300 | 123,170 | ||||||
| Synovus Financial Corp. | 16,200 | 48,762 | ||||||
| Taylor Capital Group, Inc.* | 1,000 | 13,700 | ||||||
| Texas Capital Bancshares, Inc.* | 900 | 17,910 | ||||||
| Tower Bancorp, Inc. | 843 | 21,699 | ||||||
| TowneBank | 800 | 12,824 | ||||||
| Trustmark Corp. | 300 | 7,344 | ||||||
| Umpqua Holdings Corp. | 7,600 | 113,544 | ||||||
| Union First Market Bankshares Corp. | 2,000 | 33,560 | ||||||
| United Bankshares, Inc. | 200 | 5,808 | ||||||
| United Community Banks, Inc.* | 1,849 | 10,798 | ||||||
| United Security Bancshares* | 246 | 1,156 | ||||||
| Univest Corp of Pennsylvania | 1,400 | 27,398 | ||||||
| Virginia Commerce Bancorp, Inc.* | 3,085 | 21,996 | ||||||
| Washington Banking Co. | 443 | 6,375 | ||||||
| Washington Trust Bancorp, Inc. | 1,400 | 25,354 | ||||||
| Webster Financial Corp. | 4,600 | 95,312 | ||||||
| WesBanco, Inc. | 3,200 | 61,696 | ||||||
| West Bancorp, Inc.* | 1,100 | 8,943 | ||||||
| Western Alliance Bancorp* | 7,100 | 61,770 | ||||||
| Whitney Holding Corp. | 9,926 | 135,986 | ||||||
| Wilmington Trust Corp. | 1,000 | 17,330 | ||||||
| Wilshire Bancorp, Inc. | 2,100 | 22,806 | ||||||
| Wintrust Financial Corp. | 1,100 | 41,030 | ||||||
| Yadkin Valley Financial Corp. | 2,000 | 9,160 | ||||||
| Zions Bancorporation | 7,400 | 212,602 | ||||||
| 4,094,925 | ||||||||
Commercial Services & Supplies 1.5% | ||||||||
| ABM Industries, Inc. | 2,700 | 58,023 | ||||||
| Amrep Corp.* | 180 | 2,610 | ||||||
| ATC Technology Corp.* | 600 | 12,264 | ||||||
| Bowne & Co., Inc. | 1,555 | 17,385 | ||||||
| Casella Waste Systems, Inc., Class A* | 900 | 4,644 | ||||||
| Cornell Cos., Inc.* | 1,100 | 30,250 | ||||||
| Courier Corp. | 1,200 | 20,628 | ||||||
| EnergySolutions, Inc. | 1,900 | 13,775 | ||||||
| Ennis, Inc. | 1,000 | 18,490 | ||||||
| G&K Services, Inc., Class A | 1,400 | 38,486 | ||||||
| Geo Group, Inc. (The)* | 1,000 | 21,180 | ||||||
| Intersections, Inc.* | 1,600 | 8,528 | ||||||
| Kimball International, Inc., Class B | 2,530 | 20,341 | ||||||
| M&F Worldwide Corp.* | 900 | 27,594 | ||||||
| McGrath Rentcorp | 1,400 | 36,386 | ||||||
| Mobile Mini, Inc.* | 3,800 | 63,156 | ||||||
| Multi-Color Corp. | 100 | 1,251 | ||||||
| North American Galvanizing & Coating, Inc.* | 300 | 2,250 | ||||||
| RR Donnelley & Sons Co. | 1,300 | 27,937 | ||||||
| Schawk, Inc. | 2,400 | 45,480 | ||||||
| Steelcase, Inc., Class A | 6,000 | 49,260 | ||||||
| Superior Uniform Group, Inc. | 300 | 3,087 | ||||||
| United Stationers, Inc.* | 200 | 12,244 | ||||||
| Viad Corp. | 2,000 | 46,800 | ||||||
| Virco Manufacturing | 1,500 | 5,400 | ||||||
| Waste Services, Inc.* | 1,715 | 19,277 | ||||||
| WCA Waste Corp.* | 218 | 1,081 | ||||||
| 607,807 | ||||||||
Communications Equipment 2.1% | ||||||||
| Anaren, Inc.* | 800 | 11,856 | ||||||
| Arris Group, Inc.* | 9,200 | 113,068 | ||||||
| Aviat Networks, Inc.* | 6,200 | 40,300 | ||||||
| Aware, Inc.* | 1,300 | 3,237 | ||||||
| Bel Fuse, Inc., Class B | 1,019 | 23,865 | ||||||
| Black Box Corp. | 1,000 | 31,190 | ||||||
| CommScope, Inc.* | 800 | 26,064 | ||||||
| Communications Systems, Inc. | 845 | 10,850 | ||||||
| Digi International, Inc.* | 2,600 | 27,846 | ||||||
| EchoStar Corp., Class A* | 1,070 | 20,555 | ||||||
| EMS Technologies, Inc.* | 1,400 | 22,246 | ||||||
| Emulex Corp.* | 2,100 | 24,675 | ||||||
| EndWave Corp.* | 800 | 2,424 | ||||||
| Extreme Networks* | 2,700 | 8,991 | ||||||
| Globecomm Systems, Inc.* | 1,958 | 15,253 | ||||||
| Ixia* | 1,600 | 16,400 | ||||||
| JDS Uniphase Corp.* | 2,300 | 29,877 | ||||||
| KVH Industries, Inc.* | 1,000 | 15,070 | ||||||
| Occam Networks, Inc.* | 2,100 | 13,692 | ||||||
| Oplink Communications, Inc.* | 1,810 | 27,349 | ||||||
| Opnext, Inc.* | 7,430 | 17,460 | ||||||
| Optical Cable Corp.* | 300 | 942 | ||||||
| ORBCOMM, Inc.* | 3,400 | 7,514 | ||||||
| PC-Tel, Inc.* | 1,200 | 7,812 | ||||||
| Performance Technologies, Inc.* | 1,121 | 3,139 | ||||||
| SCM Microsystems, Inc.* | 700 | 1,085 | ||||||
| Seachange International, Inc.* | 3,000 | 24,990 | ||||||
| Sycamore Networks, Inc. | 2,420 | 47,892 | ||||||
| Symmetricom, Inc.* | 1,500 | 9,945 | ||||||
| Tellabs, Inc. | 22,200 | 201,576 | ||||||
| Telular Corp.* | 700 | 2,142 | ||||||
| Tollgrade Communications, Inc.* | 1,200 | 7,632 | ||||||
| UTStarcom, Inc.* | 12,400 | 35,340 | ||||||
| 852,277 | ||||||||
Computers & Peripherals 0.6% | ||||||||
| ActivIdentity Corp.* | 3,130 | 9,171 | ||||||
| Adaptec, Inc.* | 10,700 | 33,063 | ||||||
| Avid Technology, Inc.* | 1,800 | 26,280 | ||||||
| Concurrent Computer Corp.* | 500 | 2,810 | ||||||
| Datalink Corp.* | 1,100 | 4,950 | ||||||
38 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Computers & Peripherals (continued) | ||||||||
| Dataram Corp.* | 600 | $ | 1,428 | |||||
| Electronics for Imaging, Inc.* | 4,000 | 51,400 | ||||||
| Hutchinson Technology, Inc.* | 800 | 4,872 | ||||||
| Imation Corp.* | 3,200 | 34,688 | ||||||
| Intevac, Inc.* | 1,900 | 26,448 | ||||||
| Key Tronic Corp.* | 1,000 | 6,350 | ||||||
| Novatel Wireless, Inc.* | 2,600 | 17,810 | ||||||
| Presstek, Inc.* | 2,000 | 9,240 | ||||||
| Rimage Corp.* | 120 | 2,106 | ||||||
| Silicon Graphics International Corp.* | 2,900 | 28,681 | ||||||
| 259,297 | ||||||||
Construction & Engineering 0.9% | ||||||||
| Comfort Systems USA, Inc. | 2,200 | 30,976 | ||||||
| Dycom Industries, Inc.* | 4,000 | 42,480 | ||||||
| EMCOR Group, Inc.* | 3,000 | 85,680 | ||||||
| Great Lakes Dredge & Dock Corp. | 4,900 | 26,558 | ||||||
| Insituform Technologies, Inc., Class A* | 2,400 | 57,528 | ||||||
| Integrated Electrical Services, Inc.* | 1,200 | 7,476 | ||||||
| Layne Christensen Co.* | 1,200 | 32,856 | ||||||
| Northwest Pipe Co.* | 305 | 7,357 | ||||||
| Pike Electric Corp.* | 2,700 | 29,025 | ||||||
| Sterling Construction Co., Inc.* | 500 | 8,750 | ||||||
| Tutor Perini Corp.* | 1,200 | 29,124 | ||||||
| 357,810 | ||||||||
Construction Materials 0.2% | ||||||||
| Headwaters, Inc.* | 6,300 | 37,800 | ||||||
| Texas Industries, Inc. | 1,100 | 41,624 | ||||||
| 79,424 | ||||||||
Consumer Finance 1.0% | ||||||||
| AmeriCredit Corp.* | 8,800 | 210,672 | ||||||
| Cash America International, Inc. | 700 | 25,942 | ||||||
| CompuCredit Holdings Corp. | 5,800 | 34,742 | ||||||
| First Marblehead Corp. (The)* | 12,145 | 42,629 | ||||||
| Nelnet, Inc., Class A | 3,500 | 69,860 | ||||||
| Rewards Network, Inc. | 466 | 6,067 | ||||||
| Student Loan Corp. (The) | 800 | 22,592 | ||||||
| United PanAm Financial Corp.* | 1,200 | 3,936 | ||||||
| 416,440 | ||||||||
Containers & Packaging 0.8% | ||||||||
| Bemis Co., Inc. | 3,600 | 109,476 | ||||||
| Boise, Inc.* | 6,800 | 46,852 | ||||||
| BWAY Holding Co.* | 1,400 | 27,692 | ||||||
| Graphic Packaging Holding Co.* | 16,000 | 59,040 | ||||||
| Myers Industries, Inc. | 2,928 | 31,798 | ||||||
| Temple-Inland, Inc. | 2,300 | 53,636 | ||||||
| 328,494 | ||||||||
Distributors 0.1% | ||||||||
| Audiovox Corp., Class A* | 2,000 | 18,620 | ||||||
| Core-Mark Holding Co., Inc.* | 1,200 | 36,624 | ||||||
| 55,244 | ||||||||
Diversified Consumer Services 0.7% | ||||||||
| Carriage Services, Inc.* | 1,570 | 7,803 | ||||||
| Collectors Universe | 627 | 8,822 | ||||||
| Jackson Hewitt Tax Service, Inc.* | 2,700 | 4,563 | ||||||
| Mac-Gray Corp. | 1,050 | 12,232 | ||||||
| Regis Corp. | 4,850 | 92,732 | ||||||
| Service Corp. International | 14,100 | 126,618 | ||||||
| Stewart Enterprises, Inc., Class A | 3,400 | 23,052 | ||||||
| 275,822 | ||||||||
Diversified Financial Services 0.8% | ||||||||
| Asset Acceptance Capital Corp.* | 2,200 | 16,192 | ||||||
| Asta Funding, Inc. | 1,750 | 13,528 | ||||||
| Encore Capital Group, Inc.* | 900 | 20,709 | ||||||
| Interactive Brokers Group, Inc., Class A* | 1,473 | 25,247 | ||||||
| Marlin Business Services Corp.* | 1,506 | 17,334 | ||||||
| Medallion Financial Corp. | 1,852 | 14,816 | ||||||
| NewStar Financial, Inc.* | 4,486 | 34,363 | ||||||
| PHH Corp.* | 5,400 | 122,526 | ||||||
| Pico Holdings, Inc.* | 500 | 17,775 | ||||||
| Portfolio Recovery Associates, Inc.* | 500 | 33,235 | ||||||
| Resource America, Inc., Class A | 1,256 | 7,423 | ||||||
| 323,148 | ||||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Arbinet Corp.* | 1,400 | 2,828 | ||||||
| General Communication, Inc., Class A* | 4,400 | 27,060 | ||||||
| IDT Corp., Class B* | 1,729 | 17,134 | ||||||
| SureWest Communications* | 1,400 | 12,040 | ||||||
| 59,062 | ||||||||
Electric Utilities 0.1% | ||||||||
| Unitil Corp. | 1,361 | 30,051 | ||||||
Electrical Equipment 1.2% | ||||||||
| Baldor Electric Co. | 2,000 | 76,820 | ||||||
| BTU International, Inc.* | 700 | 4,186 | ||||||
| Chase Corp. | 500 | 6,565 | ||||||
| Encore Wire Corp. | 2,750 | 61,077 | ||||||
| Energy Conversion Devices, Inc.* | 3,700 | 26,344 | ||||||
| EnerSys* | 2,400 | 62,112 | ||||||
| General Cable Corp.* | 600 | 17,142 | ||||||
| Hoku Corp.* | 2,610 | 7,700 | ||||||
| LSI Industries, Inc. | 1,750 | 12,302 | ||||||
| Ocean Power Technologies, Inc.* | 900 | 6,156 | ||||||
| Orion Energy Systems, Inc.* | 2,691 | 14,343 | ||||||
| PowerSecure International, Inc.* | 600 | 6,756 | ||||||
| Regal-Beloit Corp. | 800 | 50,616 | ||||||
| SunPower Corp., Class A* | 1,300 | 21,515 | ||||||
2010 Semiannual Report 39
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Electrical Equipment (continued) | ||||||||
| Technology Research Corp. | 600 | $ | 3,186 | |||||
| Thomas & Betts Corp.* | 2,200 | 92,268 | ||||||
| Ultralife Corp.* | 1,750 | 7,333 | ||||||
| 476,421 | ||||||||
Electronic Equipment, Instruments & Components 4.5% | ||||||||
| Arrow Electronics, Inc.* | 5,100 | 155,550 | ||||||
| AVX Corp. | 9,300 | 143,685 | ||||||
| Benchmark Electronics, Inc.* | 5,200 | 112,528 | ||||||
| Checkpoint Systems, Inc.* | 3,400 | 76,806 | ||||||
| Cognex Corp. | 2,300 | 48,093 | ||||||
| CPI International, Inc.* | 2,101 | 28,216 | ||||||
| CyberOptics Corp.* | 400 | 4,436 | ||||||
| DDi Corp.* | 1,100 | 9,416 | ||||||
| Electro Rent Corp. | 2,300 | 32,867 | ||||||
| FARO Technologies, Inc.* | 900 | 22,689 | ||||||
| Frequency Electronics, Inc.* | 900 | 4,986 | ||||||
| Gerber Scientific, Inc.* | 3,100 | 22,320 | ||||||
| GTSI Corp.* | 1,000 | 6,400 | ||||||
| ID Systems, Inc.* | 729 | 2,384 | ||||||
| Ingram Micro, Inc., Class A* | 9,300 | 168,888 | ||||||
| Insight Enterprises, Inc.* | 1,200 | 18,036 | ||||||
| Iteris, Inc.* | 1,700 | 3,179 | ||||||
| Jabil Circuit, Inc. | 7,600 | 116,432 | ||||||
| Keithley Instruments, Inc. | 700 | 5,957 | ||||||
| L-1 Identity Solutions, Inc.* | 7,900 | 68,493 | ||||||
| Littelfuse, Inc.* | 1,200 | 50,676 | ||||||
| LoJack Corp.* | 1,300 | 5,434 | ||||||
| Measurement Specialties, Inc.* | 800 | 13,176 | ||||||
| Mercury Computer Systems, Inc.* | 1,200 | 15,432 | ||||||
| Methode Electronics, Inc. | 1,400 | 15,540 | ||||||
| Multi-Fineline Electronix, Inc.* | 1,300 | 33,696 | ||||||
| NAPCO Security Technologies, Inc.* | 1,700 | 4,097 | ||||||
| NU Horizons Electronics Corp.* | 1,508 | 5,429 | ||||||
| OSI Systems, Inc.* | 1,500 | 39,060 | ||||||
| PAR Technology Corp.* | 1,300 | 9,113 | ||||||
| Park Electrochemical Corp. | 500 | 15,105 | ||||||
| PC Connection, Inc.* | 1,900 | 13,072 | ||||||
| PC Mall, Inc.* | 1,300 | 6,747 | ||||||
| Perceptron, Inc.* | 700 | 3,297 | ||||||
| Planar Systems, Inc.* | 1,900 | 4,959 | ||||||
| RadiSys Corp.* | 900 | 8,811 | ||||||
| Richardson Electronics, Ltd. | 1,400 | 16,086 | ||||||
| Rogers Corp.* | 500 | 16,735 | ||||||
| Sanmina-SCI Corp.* | 700 | 12,481 | ||||||
| ScanSource, Inc.* | 600 | 16,716 | ||||||
| Smart Modular Technologies (WWH), Inc.* | 2,600 | 18,252 | ||||||
| Spectrum Control, Inc.* | 500 | 6,950 | ||||||
| SYNNEX Corp.* | 3,700 | 101,454 | ||||||
| Tech Data Corp.* | 3,600 | 154,440 | ||||||
| Tessco Technologies, Inc. | 400 | 10,176 | ||||||
| TTM Technologies, Inc.* | 4,200 | 45,612 | ||||||
| Vicon Industries, Inc.* | 371 | 1,785 | ||||||
| Vishay Intertechnology, Inc.* | 10,100 | 105,141 | ||||||
| X-Rite, Inc.* | 1,848 | 6,098 | ||||||
| Zygo Corp.* | 1,600 | 15,120 | ||||||
| 1,822,051 | ||||||||
Energy Equipment & Services 3.5% | ||||||||
| Allis-Chalmers Energy, Inc.* | 5,400 | 21,762 | ||||||
| Basic Energy Services, Inc.* | 4,600 | 46,966 | ||||||
| Bristow Group, Inc.* | 3,198 | 123,795 | ||||||
| Bronco Drilling Co., Inc.* | 2,600 | 12,428 | ||||||
| Cal Dive International, Inc.* | 2,200 | 14,432 | ||||||
| Complete Production Services, Inc.* | 6,600 | 99,594 | ||||||
| Dawson Geophysical Co.* | 1,050 | 30,754 | ||||||
| ENGlobal Corp.* | 1,500 | 5,325 | ||||||
| Exterran Holdings, Inc.* | 1,800 | 52,470 | ||||||
| Geokinetics, Inc.* | 1,107 | 9,675 | ||||||
| Global Industries Ltd.* | 8,800 | 58,960 | ||||||
| Gulf Island Fabrication, Inc. | 1,700 | 40,749 | ||||||
| GulfMark Offshore, Inc., Class A* | 1,500 | 51,705 | ||||||
| Helix Energy Solutions Group, Inc.* | 1,200 | 17,496 | ||||||
| Hercules Offshore, Inc.* | 9,000 | 35,640 | ||||||
| Hornbeck Offshore Services, Inc.* | 2,000 | 48,940 | ||||||
| Key Energy Services, Inc.* | 4,200 | 45,612 | ||||||
| Mitcham Industries, Inc.* | 1,000 | 7,310 | ||||||
| Natural Gas Services Group, Inc.* | 1,000 | 17,930 | ||||||
| Newpark Resources, Inc.* | 5,500 | 36,740 | ||||||
| OMNI Energy Services Corp.* | 1,400 | 4,648 | ||||||
| Parker Drilling Co.* | 2,900 | 16,037 | ||||||
| Patterson-UTI Energy, Inc. | 1,979 | 30,259 | ||||||
| PHI, Inc., Non-Voting Shares* | 1,450 | 30,146 | ||||||
| Pioneer Drilling Co.* | 4,800 | 35,232 | ||||||
| Rowan Cos., Inc.* | 3,000 | 89,400 | ||||||
| SEACOR Holdings, Inc.* | 1,300 | 109,421 | ||||||
| Seahawk Drilling, Inc.* | 600 | 9,996 | ||||||
| Superior Well Services, Inc.* | 2,900 | 42,050 | ||||||
| TGC Industries, Inc.* | 1,890 | 7,787 | ||||||
| Tidewater, Inc. | 1,900 | 101,859 | ||||||
| Trico Marine Services, Inc.* | 1,800 | 5,904 | ||||||
| Union Drilling, Inc.* | 2,400 | 15,912 | ||||||
| Unit Corp.* | 2,900 | 138,533 | ||||||
| Willbros Group, Inc.* | 800 | 10,040 | ||||||
| 1,425,507 | ||||||||
Food & Staples Retailing 1.0% | ||||||||
| Andersons, Inc. (The) | 1,600 | 57,824 | ||||||
| Great Atlantic & Pacific Tea Co.* | 1,000 | 8,050 | ||||||
| Ingles Markets, Inc., Class A | 1,500 | 24,045 | ||||||
| Nash Finch Co. | 1,600 | 56,032 | ||||||
| Pantry, Inc. (The)* | 2,000 | 31,640 | ||||||
| Ruddick Corp. | 1,800 | 63,612 | ||||||
| Spartan Stores, Inc. | 2,700 | 40,743 | ||||||
| Susser Holdings Corp.* | 1,600 | 17,232 | ||||||
| Weis Markets, Inc. | 2,100 | 78,288 | ||||||
40 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Food & Staples Retailing (continued) | ||||||||
| Winn-Dixie Stores, Inc.* | 4,100 | $ | 51,701 | |||||
| 429,167 | ||||||||
Food Products 2.1% | ||||||||
| B&G Foods, Inc., Class A | 4,700 | 48,551 | ||||||
| Chiquita Brands International, Inc.* | 4,600 | 69,184 | ||||||
| Corn Products International, Inc. | 1,300 | 46,800 | ||||||
| Del Monte Foods Co. | 12,200 | 182,268 | ||||||
| Farmer Bros Co. | 1,300 | 24,323 | ||||||
| Fresh Del Monte Produce, Inc.* | 1,100 | 22,957 | ||||||
| Hain Celestial Group, Inc. (The)* | 3,000 | 59,340 | ||||||
| HQ Sustainable Maritime Industries, Inc.* | 1,300 | 7,397 | ||||||
| Imperial Sugar Co. | 1,450 | 23,244 | ||||||
| John B. Sanfilippo & Son, Inc.* | 300 | 4,509 | ||||||
| Omega Protein Corp.* | 2,600 | 13,910 | ||||||
| Ralcorp Holdings, Inc.* | 200 | 13,310 | ||||||
| Seneca Foods Corp., Class A* | 800 | 26,272 | ||||||
| Smart Balance, Inc.* | 6,600 | 43,890 | ||||||
| Smithfield Foods, Inc.* | 8,200 | 153,668 | ||||||
| Tasty Baking Co. | 700 | 5,257 | ||||||
| TreeHouse Foods, Inc.* | 2,400 | 101,496 | ||||||
| 846,376 | ||||||||
Health Care Equipment & Supplies 1.5% | ||||||||
| Alphatec Holdings, Inc.* | 745 | 4,977 | ||||||
| Analogic Corp. | 500 | 23,910 | ||||||
| AngioDynamics, Inc.* | 2,400 | 38,400 | ||||||
| Anika Therapeutics, Inc.* | 1,100 | 7,755 | ||||||
| Cantel Medical Corp. | 1,000 | 19,960 | ||||||
| Cardiac Science Corp.* | 1,200 | 1,872 | ||||||
| CONMED Corp.* | 2,200 | 48,928 | ||||||
| Cooper Cos., Inc. (The) | 3,500 | 136,115 | ||||||
| Cynosure, Inc., Class A* | 800 | 10,080 | ||||||
| Digirad Corp.* | 600 | 1,326 | ||||||
| Greatbatch, Inc.* | 2,250 | 50,265 | ||||||
| HealthTronics, Inc.* | 4,450 | 15,797 | ||||||
| Invacare Corp. | 2,700 | 71,361 | ||||||
| Inverness Medical Innovations, Inc.* | 1,600 | 63,648 | ||||||
| Medical Action Industries, Inc.* | 600 | 7,122 | ||||||
| Misonix, Inc.* | 600 | 1,344 | ||||||
| Osteotech, Inc.* | 1,900 | 8,075 | ||||||
| Palomar Medical Technologies, Inc.* | 400 | 5,024 | ||||||
| PhotoMedex, Inc.* | 200 | 1,588 | ||||||
| RTI Biologics, Inc.* | 6,700 | 25,661 | ||||||
| Spectranetics Corp.* | 500 | 3,410 | ||||||
| Symmetry Medical, Inc.* | 3,400 | 39,304 | ||||||
| Theragenics Corp.* | 3,000 | 4,620 | ||||||
| TomoTherapy, Inc.* | 5,200 | 20,228 | ||||||
| Young Innovations, Inc. | 700 | 17,619 | ||||||
| 628,389 | ||||||||
Health Care Providers & Services 3.1% | ||||||||
| Allied Healthcare International, Inc.* | 4,000 | 11,240 | ||||||
| American Dental Partners, Inc.* | 1,100 | 14,168 | ||||||
| AMN Healthcare Services, Inc.* | 2,800 | 25,592 | ||||||
| Amsurg Corp.* | 1,300 | 26,936 | ||||||
| Assisted Living Concepts, Inc., Class A* | 460 | 16,146 | ||||||
| Brookdale Senior Living, Inc.* | 3,000 | 64,500 | ||||||
| Capital Senior Living Corp.* | 2,400 | 12,624 | ||||||
| Community Health Systems, Inc.* | 2,200 | 89,892 | ||||||
| Continucare Corp.* | 6,000 | 20,100 | ||||||
| Coventry Health Care, Inc.* | 400 | 9,496 | ||||||
| Dynacq Healthcare, Inc.* | 256 | 691 | ||||||
| Five Star Quality Care, Inc.* | 3,800 | 11,248 | ||||||
| Gentiva Health Services, Inc.* | 2,200 | 63,096 | ||||||
| Hanger Orthopedic Group, Inc.* | 1,300 | 24,232 | ||||||
| Health Net, Inc.* | 700 | 15,414 | ||||||
| Healthspring, Inc.* | 4,900 | 86,240 | ||||||
| Healthways, Inc.* | 1,100 | 17,919 | ||||||
| Integramed America, Inc.* | 1,000 | 8,540 | ||||||
| inVentiv Health, Inc.* | 2,800 | 64,484 | ||||||
| Kindred Healthcare, Inc.* | 200 | 3,568 | ||||||
| LCA-Vision, Inc.* | 200 | 1,686 | ||||||
| LifePoint Hospitals, Inc.* | 3,400 | 129,812 | ||||||
| Medcath Corp.* | 2,098 | 20,854 | ||||||
| Molina Healthcare, Inc.* | 2,200 | 64,174 | ||||||
| Nighthawk Radiology Holdings, Inc.* | 2,500 | 9,250 | ||||||
| NovaMed, Inc.* | 2,200 | 7,216 | ||||||
| Odyssey HealthCare, Inc.* | 1,800 | 37,494 | ||||||
| Omnicare, Inc. | 5,300 | 147,287 | ||||||
| PDI, Inc.* | 1,400 | 12,698 | ||||||
| Prospect Medical Holdings, Inc.* | 769 | 5,183 | ||||||
| Psychiatric Solutions, Inc.* | 400 | 12,868 | ||||||
| Res-Care, Inc.* | 2,500 | 29,100 | ||||||
| Skilled Healthcare Group, Inc., Class A* | 1,800 | 12,042 | ||||||
| Sun Healthcare Group, Inc.* | 5,329 | 47,641 | ||||||
| SunLink Health Systems, Inc.* | 700 | 1,855 | ||||||
| Triple-S Management Corp., Class B* | 1,700 | 30,940 | ||||||
| Universal American Corp.* | 6,528 | 100,205 | ||||||
| 1,256,431 | ||||||||
Health Care Technology 0.1% | ||||||||
| ADAM, Inc.* | 300 | 1,125 | ||||||
| Arrhythmia Research Technology, Inc. | 200 | 1,590 | ||||||
| Vital Images, Inc.* | 1,300 | 20,514 | ||||||
| 23,229 | ||||||||
Hotels, Restaurants & Leisure 2.6% | ||||||||
| Benihana, Inc., Class A* | 700 | 4,767 | ||||||
| Biglari Holdings, Inc.* | 130 | 50,862 | ||||||
| Bluegreen Corp.* | 3,100 | 18,817 | ||||||
| Bob Evans Farms, Inc. | 1,900 | 58,767 | ||||||
| Boyd Gaming Corp.* | 900 | 11,430 | ||||||
| California Pizza Kitchen, Inc.* | 1,400 | 28,700 | ||||||
| Churchill Downs, Inc. | 1,250 | 47,912 | ||||||
| DineEquity, Inc.* | 1,400 | 57,582 | ||||||
| Dover Motorsports, Inc. | 1,000 | 2,200 | ||||||
| Gaylord Entertainment Co.* | 1,300 | 43,875 | ||||||
2010 Semiannual Report 41
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
| Great Wolf Resorts, Inc.* | 1,700 | $ | 5,457 | |||||
| International Speedway Corp., Class A | 400 | 12,224 | ||||||
| Isle of Capri Casinos, Inc.* | 1,700 | 18,513 | ||||||
| J Alexander’s Corp.* | 500 | 2,280 | ||||||
| Lakes Entertainment, Inc.* | 1,900 | 4,275 | ||||||
| Luby’s, Inc.* | 2,896 | 11,816 | ||||||
| Marcus Corp. | 2,249 | 28,900 | ||||||
| McCormick & Schmick’s Seafood Restaurants, Inc.* | 1,300 | 12,883 | ||||||
| Monarch Casino & Resort, Inc.* | 700 | 8,134 | ||||||
| Morton’s Restaurant Group, Inc.* | 600 | 3,636 | ||||||
| MTR Gaming Group, Inc.* | 2,160 | 4,385 | ||||||
| Multimedia Games, Inc.* | 2,201 | 10,059 | ||||||
| Nathan’s Famous, Inc.* | 250 | 3,920 | ||||||
| O’Charleys, Inc.* | 2,600 | 24,830 | ||||||
| Orient-Express Hotels Ltd., Class A* | 2,000 | 27,300 | ||||||
| Penn National Gaming, Inc.* | 1,500 | 46,440 | ||||||
| Red Lion Hotels Corp.* | 1,000 | 7,640 | ||||||
| Rick’s Cabaret International, Inc.* | 800 | 9,896 | ||||||
| Rubio’s Restaurants, Inc.* | 1,000 | 8,050 | ||||||
| Ruby Tuesday, Inc.* | 5,200 | 58,188 | ||||||
| Speedway Motorsports, Inc. | 4,200 | 68,250 | ||||||
| Vail Resorts, Inc.* | 1,000 | 45,640 | ||||||
| VCG Holding Corp.* | 1,100 | 2,167 | ||||||
| Wendy’s/Arby’s Group, Inc., Class A | 7,000 | 37,170 | ||||||
| Wyndham Worldwide Corp. | 10,500 | 281,505 | ||||||
| 1,068,470 | ||||||||
Household Durables 3.2% | ||||||||
| Acme United Corp. | 200 | 2,280 | ||||||
| Bassett Furniture Industries, Inc.* | 1,400 | 8,386 | ||||||
| Beazer Homes USA, Inc.* | 4,800 | 31,536 | ||||||
| Blyth, Inc. | 451 | 25,996 | ||||||
| Brookfield Homes Corp.* | 2,300 | 25,783 | ||||||
| Cavco Industries, Inc.* | 500 | 19,585 | ||||||
| Cobra Electronics Corp.* | 800 | 2,248 | ||||||
| Craftmade International, Inc.* | 300 | 1,605 | ||||||
| CSS Industries, Inc. | 1,000 | �� | 20,020 | |||||
| Dixie Group, Inc.* | 700 | 3,430 | ||||||
| Emerson Radio Corp. | 2,700 | 5,670 | ||||||
| Ethan Allen Interiors, Inc. | 800 | 16,160 | ||||||
| Furniture Brands International, Inc.* | 4,100 | 33,948 | ||||||
| Helen of Troy Ltd.* | 2,700 | 72,927 | ||||||
| Hooker Furniture Corp. | 500 | 7,880 | ||||||
| Jarden Corp. | 7,700 | 247,324 | ||||||
La-Z-Boy, Inc.* | 1,900 | 24,776 | ||||||
| Leggett & Platt, Inc. | 5,700 | 139,821 | ||||||
| Lennar Corp., Class A | 3,400 | 67,660 | ||||||
| Lifetime Brands, Inc.* | 808 | 11,716 | ||||||
| M.D.C. Holdings, Inc. | 400 | 15,320 | ||||||
| M/I Homes, Inc.* | 1,800 | 28,080 | ||||||
| Meritage Homes Corp.* | 2,700 | 64,206 | ||||||
| Mohawk Industries, Inc.* | 3,900 | 248,586 | ||||||
| Orleans Homebuilders, Inc.* | 1,500 | 315 | ||||||
| Palm Harbor Homes, Inc.* | 1,200 | 3,480 | ||||||
| Pulte Group, Inc.* | 687 | 8,993 | ||||||
| Ryland Group, Inc. | 1,200 | 27,336 | ||||||
| Skyline Corp. | 800 | 18,648 | ||||||
| Standard Pacific Corp.* | 9,900 | 63,459 | ||||||
| Stanley Furniture Co., Inc.* | 1,150 | 11,350 | ||||||
| Whirlpool Corp. | 400 | 43,548 | ||||||
| 1,302,072 | ||||||||
Household Products 0.2% | ||||||||
| Central Garden and Pet Co., Class A* | 4,200 | 43,386 | ||||||
| Central Garden and Pet Co.* | 2,100 | 23,583 | ||||||
| 66,969 | ||||||||
Independent Power Producers & Energy Traders 0.2% | ||||||||
| Mirant Corp.* | 2,100 | 24,486 | ||||||
| RRI Energy, Inc.* | 9,100 | 37,037 | ||||||
| 61,523 | ||||||||
Industrial Conglomerates 0.1% | ||||||||
| Standex International Corp. | 1,100 | 26,257 | ||||||
Information Technology Services 0.8% | ||||||||
| Acorn Energy, Inc.* | 400 | 2,256 | ||||||
| Acxiom Corp.* | 1,500 | 28,620 | ||||||
| CACI International, Inc., Class A* | 1,600 | 75,888 | ||||||
| CIBER, Inc.* | 300 | 1,191 | ||||||
| Convergys Corp.* | 6,900 | 87,216 | ||||||
| Dynamics Research Corp.* | 1,100 | 15,730 | ||||||
| Edgewater Technology, Inc.* | 400 | 1,264 | ||||||
| Euronet Worldwide, Inc.* | 1,700 | 27,081 | ||||||
| Hackett Group, Inc. (The)* | 4,000 | 11,240 | ||||||
| infoGROUP, Inc.* | 4,200 | 33,642 | ||||||
| Integral Systems, Inc.* | 700 | 6,104 | ||||||
| Online Resources Corp.* | 586 | 2,731 | ||||||
| SRA International, Inc., Class A* | 900 | 20,772 | ||||||
| StarTek, Inc.* | 1,500 | 10,170 | ||||||
| TechTeam Global, Inc.* | 1,000 | 6,160 | ||||||
| 330,065 | ||||||||
Insurance 10.6% | ||||||||
| 21st Century Holding Co. | 900 | 3,285 | ||||||
| Affirmative Insurance Holdings, Inc.* | 1,900 | 8,778 | ||||||
| Alleghany Corp.* | 302 | 89,742 | ||||||
| Allied World Assurance Co. Holdings Ltd. | 500 | 21,785 | ||||||
| American Equity Investment Life Holding Co. | 5,500 | 57,860 | ||||||
| American Financial Group, Inc. | 7,200 | 211,896 | ||||||
| American National Insurance Co. | 500 | 55,080 | ||||||
| American Safety Insurance Holdings Ltd.* | 1,250 | 20,225 | ||||||
| AMERISAFE, Inc.* | 1,700 | 29,070 | ||||||
| Arch Capital Group Ltd.* | 800 | 60,464 | ||||||
| Argo Group International Holdings Ltd. | 2,400 | 79,176 | ||||||
| Aspen Insurance Holdings Ltd. | 1,400 | 37,772 | ||||||
| Assurant, Inc. | 500 | 18,215 | ||||||
42 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Insurance (continued) | ||||||||
| Axis Capital Holdings Ltd. | 857 | $ | 26,713 | |||||
| CNA Surety Corp.* | 4,200 | 70,434 | ||||||
| Conseco, Inc.* | 14,100 | 83,190 | ||||||
| Delphi Financial Group, Inc., Class A | 3,246 | 89,265 | ||||||
| Donegal Group, Inc., Class A | 2,400 | 34,632 | ||||||
| Eastern Insurance Holdings, Inc. | 1,180 | 12,095 | ||||||
| EMC Insurance Group, Inc. | 300 | 7,278 | ||||||
| Endurance Specialty Holdings Ltd. | 1,300 | 47,905 | ||||||
| Enstar Group Ltd.* | 644 | 42,581 | ||||||
| FBL Financial Group, Inc., Class A | 2,300 | 59,432 | ||||||
| Fidelity National Financial, Inc., Class A | 2,150 | 32,637 | ||||||
| First Acceptance Corp.* | 3,404 | 6,774 | ||||||
| First American Corp. | 5,800 | 200,506 | ||||||
| First Mercury Financial Corp. | 2,100 | 27,531 | ||||||
| Flagstone Reinsurance Holdings Ltd. | 1,600 | 17,840 | ||||||
| FPIC Insurance Group, Inc.* | 450 | 12,249 | ||||||
| Genworth Financial, Inc., Class A* | 6,800 | 112,336 | ||||||
| Hallmark Financial Services* | 1,874 | 21,945 | ||||||
| Hanover Insurance Group, Inc. (The) | 3,000 | 135,150 | ||||||
| Harleysville Group, Inc. | 934 | 29,907 | ||||||
| HCC Insurance Holdings, Inc. | 6,900 | 187,611 | ||||||
| Hilltop Holdings, Inc.* | 4,800 | 56,304 | ||||||
| Horace Mann Educators Corp. | 1,700 | 29,257 | ||||||
| Independence Holding Co. | 1,900 | 15,219 | ||||||
| Max Capital Group Ltd. | 1,584 | 35,323 | ||||||
| MBIA, Inc.* | 15,000 | 143,700 | ||||||
| Meadowbrook Insurance Group, Inc. | 3,845 | 30,375 | ||||||
| Mercer Insurance Group, Inc. | 500 | 9,175 | ||||||
| Mercury General Corp. | 2,400 | 107,976 | ||||||
| Montpelier Re Holdings Ltd. | 2,900 | 48,140 | ||||||
| National Financial Partners Corp.* | 4,100 | 63,099 | ||||||
| Navigators Group, Inc. (The)* | 1,000 | 40,130 | ||||||
| NYMAGIC, Inc. | 492 | 10,922 | ||||||
| Old Republic International Corp. | 13,000 | 195,130 | ||||||
| OneBeacon Insurance Group Ltd., Class A | 1,800 | 29,196 | ||||||
| Phoenix Cos., Inc. (The)* | 12,000 | 38,760 | ||||||
| Platinum Underwriters Holdings Ltd. | 600 | 22,326 | ||||||
| PMA Capital Corp., Class A* | 2,500 | 17,175 | ||||||
| Presidential Life Corp. | 2,000 | 23,560 | ||||||
| ProAssurance Corp.* | 2,500 | 152,375 | ||||||
| Protective Life Corp. | 5,000 | 120,350 | ||||||
| Reinsurance Group of America, Inc. | 4,500 | 232,335 | ||||||
| RenaissanceRe Holdings Ltd. | 1,200 | 67,140 | ||||||
| Safety Insurance Group, Inc. | 1,100 | 41,019 | ||||||
| SeaBright Insurance Holdings, Inc. | 2,300 | 25,024 | ||||||
| Selective Insurance Group, Inc. | 2,200 | 36,762 | ||||||
| StanCorp Financial Group, Inc. | 450 | 20,232 | ||||||
| State Auto Financial Corp. | 2,952 | 52,811 | ||||||
| Stewart Information Services Corp. | 1,700 | 19,346 | ||||||
| Tower Group, Inc. | 1,596 | 36,804 | ||||||
| Transatlantic Holdings, Inc. | 4,064 | 202,103 | ||||||
| United America Indemnity Ltd., Class A* | 3,173 | 30,144 | ||||||
| United Fire & Casualty Co. | 2,100 | 48,027 | ||||||
| Unitrin, Inc. | 2,300 | 67,275 | ||||||
| Validus Holdings Ltd. | 2,232 | 57,072 | ||||||
| W.R. Berkley Corp. | 2,400 | 64,800 | ||||||
| White Mountains Insurance Group Ltd. | 300 | 103,080 | ||||||
| Zenith National Insurance Corp. | 2,080 | 78,666 | ||||||
| 4,322,491 | ||||||||
Internet & Catalog Retail 0.0%† | ||||||||
1-800-FLOWERS.COM, Inc., Class A* | 1,300 | 3,718 | ||||||
| dELiA*s, Inc.* | 1,700 | 2,975 | ||||||
| Hollywood Media Corp.* | 2,600 | 3,068 | ||||||
| Valuevision Media, Inc., Class A* | 3,500 | 10,780 | ||||||
| 20,541 | ||||||||
Internet Software & Services 1.4% | ||||||||
| AOL, Inc.* | 200 | 4,672 | ||||||
| DivX, Inc.* | 200 | 1,672 | ||||||
| EarthLink, Inc. | 6,130 | 55,293 | ||||||
| IAC/InterActiveCorp* | 7,100 | 159,182 | ||||||
| InfoSpace, Inc.* | 3,400 | 35,598 | ||||||
| Internap Network Services Corp.* | 1,900 | 10,982 | ||||||
| Internet Brands, Inc., Class A* | 3,849 | 39,837 | ||||||
| Internet Capital Group, Inc.* | 3,800 | 37,582 | ||||||
| iPass, Inc.* | 3,400 | 4,896 | ||||||
| Keynote Systems, Inc. | 800 | 8,784 | ||||||
| Knot, Inc. (The)* | 1,800 | 14,598 | ||||||
| Looksmart Ltd.* | 1,300 | 1,794 | ||||||
| Marchex, Inc., Class B | 2,000 | 10,520 | ||||||
| ModusLink Global Solutions, Inc.* | 4,400 | 39,292 | ||||||
| Perficient, Inc.* | 600 | 7,482 | ||||||
| RealNetworks, Inc.* | 10,800 | 44,820 | ||||||
| Soundbite Communications, Inc.* | 1,400 | 4,214 | ||||||
| Stamps.com, Inc.* | 750 | 7,950 | ||||||
| support.com, Inc.* | 3,300 | 14,388 | ||||||
| TechTarget, Inc.* | 1,984 | 9,622 | ||||||
| TheStreet.com, Inc. | 3,900 | 14,859 | ||||||
| United Online, Inc. | 1,800 | 14,346 | ||||||
| Web.com Group, Inc.* | 2,400 | 11,592 | ||||||
| 553,975 | ||||||||
Leisure Equipment & Products 0.4% | ||||||||
| Aldila, Inc.* | 200 | 1,222 | ||||||
| Arctic Cat, Inc.* | 1,200 | 17,700 | ||||||
| Callaway Golf Co. | 5,708 | 53,598 | ||||||
| Cybex International, Inc.* | 1,400 | 2,156 | ||||||
| JAKKS Pacific, Inc.* | 900 | 13,761 | ||||||
| Nautilus, Inc.* | 2,800 | 9,576 | ||||||
| RC2 Corp.* | 1,971 | 36,207 | ||||||
| Sport Supply Group, Inc. | 1,000 | 13,410 | ||||||
| Steinway Musical Instruments, Inc.* | 1,200 | 22,992 | ||||||
| 170,622 | ||||||||
Life Sciences Tools & Services 0.1% | ||||||||
| Albany Molecular Research, Inc.* | 1,100 | 8,800 | ||||||
| Cambrex Corp.* | 3,100 | 13,609 | ||||||
2010 Semiannual Report 43
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Life Sciences Tools & Services (continued) | ||||||||
| Harvard Bioscience, Inc.* | 2,000 | $ | 8,360 | |||||
| Kendle International, Inc.* | 1,700 | 28,135 | ||||||
| 58,904 | ||||||||
Machinery 2.7% | ||||||||
| Alamo Group, Inc. | 789 | 18,589 | ||||||
| Albany International Corp., Class A | 2,000 | 50,940 | ||||||
| American Railcar Industries, Inc. | 2,600 | 42,510 | ||||||
| Astec Industries, Inc.* | 500 | 16,560 | ||||||
| Barnes Group, Inc. | 1,500 | 31,200 | ||||||
| Briggs & Stratton Corp. | 2,300 | 54,602 | ||||||
| Chart Industries, Inc.* | 476 | 10,943 | ||||||
| CIRCOR International, Inc. | 1,400 | 48,244 | ||||||
| Columbus Mckinnon Corp.* | 700 | 12,621 | ||||||
| EnPro Industries, Inc.* | 500 | 15,790 | ||||||
| Flanders Corp.* | 1,800 | 6,930 | ||||||
| FreightCar America, Inc. | 700 | 20,034 | ||||||
| Gardner Denver, Inc. | 696 | 35,002 | ||||||
| Gencor Industries, Inc.* | 499 | 3,902 | ||||||
| Greenbrier Cos., Inc.* | 2,100 | 34,188 | ||||||
| Hardinge, Inc. | 900 | 9,000 | ||||||
| Hurco Cos., Inc.* | 800 | 15,568 | ||||||
| Kadant, Inc.* | 600 | 12,006 | ||||||
| Key Technology, Inc.* | 300 | 4,161 | ||||||
| Lydall, Inc.* | 1,200 | 9,672 | ||||||
| Met-Pro Corp. | 800 | 8,136 | ||||||
| Mfri, Inc.* | 700 | 4,753 | ||||||
| Miller Industries, Inc. | 1,253 | 17,918 | ||||||
| Mueller Industries, Inc. | 1,700 | 50,405 | ||||||
| Mueller Water Products, Inc., Class A | 8,800 | 49,280 | ||||||
| NACCO Industries, Inc., Class A | 600 | 52,164 | ||||||
| NN, Inc.* | 1,100 | 7,920 | ||||||
| Portec Rail Products, Inc. | 1,000 | 11,820 | ||||||
| Tecumseh Products Co., Class A* | 1,100 | 14,058 | ||||||
| Timken Co. | 5,500 | 193,490 | ||||||
| Titan International, Inc. | 4,000 | 49,640 | ||||||
| Trinity Industries, Inc. | 2,500 | 62,225 | ||||||
| Twin Disc, Inc. | 1,102 | 15,560 | ||||||
| Wabash National Corp.* | 3,000 | 29,160 | ||||||
| Watts Water Technologies, Inc., Class A | 2,300 | 81,604 | ||||||
| 1,100,595 | ||||||||
Marine 0.6% | ||||||||
| Alexander & Baldwin, Inc. | 3,400 | 120,972 | ||||||
| Eagle Bulk Shipping, Inc.* | 5,800 | 33,582 | ||||||
| Genco Shipping & Trading Ltd.* | 2,700 | 62,532 | ||||||
| International Shipholding Corp. | 300 | 9,102 | ||||||
| 226,188 | ||||||||
Media 2.0% | ||||||||
| AH Belo Corp., Class A* | 2,080 | 17,680 | ||||||
| Alloy, Inc.* | 1,382 | 10,711 | ||||||
| Ascent Media Corp., Class A* | 1,200 | 35,424 | ||||||
| Ballantyne Strong, Inc.* | 825 | 6,352 | ||||||
| Belo Corp., Class A | 400 | 3,468 | ||||||
| Cinemark Holdings, Inc. | 8,200 | 149,732 | ||||||
| Clear Channel Outdoor Holdings, Inc., Class A * | 700 | 8,106 | ||||||
| E.W. Scripps Co. (The), Class A* | 4,100 | 44,854 | ||||||
| Fisher Communications, Inc.* | 400 | 6,016 | ||||||
| Gray Television, Inc.* | 5,900 | 22,125 | ||||||
| Lee Enterprises, Inc.* | 3,800 | 14,364 | ||||||
| Liberty Media Corp. — Capital, Series A* | 7,000 | 309,890 | ||||||
| Live Nation Entertainment, Inc.* | 6,500 | 101,985 | ||||||
| Media General, Inc., Class A* | 2,200 | 27,830 | ||||||
| New Frontier Media, Inc.* | 1,900 | 3,743 | ||||||
| Orchard Enterprises, Inc.* | 200 | 398 | ||||||
| Outdoor Channel Holdings, Inc.* | 2,200 | 15,202 | ||||||
| Radio One, Inc., Class D* | 900 | 4,536 | ||||||
| Saga Communications, Inc., Class A* | 400 | 11,020 | ||||||
| Salem Communications Corp., Class A* | 2,100 | 9,555 | ||||||
| Scholastic Corp. | 200 | 5,402 | ||||||
| 808,393 | ||||||||
Metals & Mining 1.3% | ||||||||
| AM Castle & Co.* | 3,200 | 43,904 | ||||||
| Brush Engineered Materials, Inc.* | 500 | 14,865 | ||||||
| Coeur d’Alene Mines Corp.* | 4,400 | 78,848 | ||||||
| Commercial Metals Co. | 1,300 | 19,344 | ||||||
| Friedman Industries | 600 | 3,552 | ||||||
| Haynes International, Inc. | 400 | 14,364 | ||||||
| Horsehead Holding Corp.* | 3,600 | 42,768 | ||||||
| Kaiser Aluminum Corp. | 800 | 32,152 | ||||||
| Olympic Steel, Inc. | 1,000 | 31,780 | ||||||
| Reliance Steel & Aluminum Co. | 100 | 4,881 | ||||||
| RTI International Metals, Inc.* | 2,700 | 73,035 | ||||||
| Stillwater Mining Co.* | 5,828 | 98,493 | ||||||
| Synalloy Corp. | 400 | 3,936 | ||||||
| Universal Stainless & Alloy* | 900 | 20,997 | ||||||
| US Gold Corp.* | 4,781 | 16,303 | ||||||
| Worthington Industries, Inc. | 2,851 | 45,531 | ||||||
| 544,753 | ||||||||
Multiline Retail 0.4% | ||||||||
| Dillard’s, Inc., Class A | 1,836 | 51,555 | ||||||
| Fred’s, Inc., Class A | 3,500 | 48,615 | ||||||
| Saks, Inc.* | 6,100 | 59,475 | ||||||
| 159,645 | ||||||||
Oil, Gas & Consumable Fuels 4.4% | ||||||||
| Alon USA Energy, Inc. | 4,100 | 29,971 | ||||||
| Approach Resources, Inc.* | 2,521 | 22,563 | ||||||
| ATP Oil & Gas Corp.* | 3,100 | 56,606 | ||||||
| Berry Petroleum Co., Class A | 1,600 | 51,792 | ||||||
| Bill Barrett Corp.* | 1,300 | 44,304 | ||||||
| BioFuel Energy Corp.* | 2,400 | 6,288 | ||||||
| Cimarex Energy Co. | 3,200 | 217,856 | ||||||
| Comstock Resources, Inc.* | 1,800 | 57,708 | ||||||
44 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| Crimson Exploration, Inc.* | 2,000 | $ | 8,000 | |||||
| Crosstex Energy, Inc.* | 4,500 | 40,635 | ||||||
| CVR Energy, Inc.* | 2,900 | 24,621 | ||||||
| Delek US Holdings, Inc. | 4,100 | 28,741 | ||||||
| Denbury Resources, Inc.* | 217 | 4,156 | ||||||
| DHT Holdings, Inc. | 5,002 | 23,609 | ||||||
| Double Eagle Petroleum Co.* | 800 | 3,800 | ||||||
| Energy Partners Ltd.* | 1,141 | 15,597 | ||||||
| Frontier Oil Corp. | 2,500 | 38,000 | ||||||
| General Maritime Corp. | 4,400 | 35,684 | ||||||
| GeoMet, Inc.* | 3,500 | 4,725 | ||||||
| Harvest Natural Resources, Inc.* | 4,100 | 36,203 | ||||||
| HKN, Inc.* | 1,000 | 3,080 | ||||||
| International Coal Group, Inc.* | 2,300 | 12,121 | ||||||
| Mariner Energy, Inc.* | 4,700 | 112,236 | ||||||
| Overseas Shipholding Group, Inc. | 2,600 | 130,156 | ||||||
| Pacific Ethanol, Inc.* | 5,600 | 5,992 | ||||||
| Patriot Coal Corp.* | 1,100 | 21,659 | ||||||
| Penn Virginia Corp. | 4,650 | 118,622 | ||||||
| Petroleum Development Corp.* | 2,300 | 53,843 | ||||||
| Rex Energy Corp.* | 2,200 | 29,260 | ||||||
| Rosetta Resources, Inc.* | 2,000 | 49,800 | ||||||
| Stone Energy Corp.* | 2,094 | 34,132 | ||||||
| Sunoco, Inc. | 1,500 | 49,170 | ||||||
| Swift Energy Co.* | 1,800 | 65,124 | ||||||
| Tesoro Corp. | 4,100 | 53,915 | ||||||
| USEC, Inc.* | 11,600 | 69,600 | ||||||
| Western Refining, Inc.* | 6,700 | 35,912 | ||||||
| Whiting Petroleum Corp.* | 2,300 | 207,759 | ||||||
| 1,803,240 | ||||||||
Paper & Forest Products 1.4% | ||||||||
| Buckeye Technologies, Inc.* | 3,900 | 55,068 | ||||||
| Domtar Corp.* | 1,300 | 92,092 | ||||||
| KapStone Paper and Packaging Corp.* | 500 | 6,450 | ||||||
| Louisiana-Pacific Corp.* | 9,700 | 114,072 | ||||||
| MeadWestvaco Corp. | 7,900 | 214,643 | ||||||
| Mercer International, Inc.* | 4,500 | 24,795 | ||||||
| P.H. Glatfelter Co. | 3,500 | 51,415 | ||||||
| Wausau Paper Corp.* | 700 | 6,195 | ||||||
| 564,730 | ||||||||
Personal Products 0.3% | ||||||||
| CCA Industries, Inc. | 400 | 2,228 | ||||||
| Elizabeth Arden, Inc.* | 1,600 | 29,136 | ||||||
| Inter Parfums, Inc. | 1,700 | 29,376 | ||||||
| Mannatech, Inc. | 1,800 | 6,948 | ||||||
| Nutraceutical International Corp.* | 400 | 6,188 | ||||||
| Parlux Fragrances, Inc.* | 1,100 | 2,266 | ||||||
| Physicians Formula Holdings, Inc.* | 1,300 | 3,926 | ||||||
| Prestige Brands Holdings, Inc.* | 4,800 | 46,752 | ||||||
| 126,820 | ||||||||
Pharmaceuticals 0.8% | ||||||||
| Hi-Tech Pharmacal Co., Inc.* | 600 | 14,598 | ||||||
| King Pharmaceuticals, Inc.* | 9,906 | 97,079 | ||||||
| K-V Pharmaceutical Co., Class A* | 3,700 | 5,735 | ||||||
| Lannett Co., Inc.* | 1,100 | 5,159 | ||||||
| Matrixx Initiatives, Inc.* | 1,000 | 5,120 | ||||||
| Medicis Pharmaceutical Corp., Class A | 1,100 | 27,918 | ||||||
| Par Pharmaceutical Cos., Inc.* | 2,200 | 59,708 | ||||||
| ViroPharma, Inc.* | 8,200 | 104,304 | ||||||
| 319,621 | ||||||||
Professional Services 0.8% | ||||||||
| Barrett Business Services, Inc. | 600 | 9,240 | ||||||
| CDI Corp. | 2,100 | 36,603 | ||||||
| CRA International, Inc.* | 1,300 | 30,199 | ||||||
| Franklin Covey Co.* | 700 | 5,516 | ||||||
| GP Strategies Corp.* | 1,077 | 8,691 | ||||||
| Heidrick & Struggles International, Inc. | 1,000 | 26,410 | ||||||
| Hudson Highland Group, Inc.* | 2,200 | 12,342 | ||||||
| Kelly Services, Inc., Class A* | 3,406 | 54,768 | ||||||
| Kforce, Inc.* | 2,000 | 27,780 | ||||||
| Korn/Ferry International* | 352 | 5,706 | ||||||
| LECG Corp.* | 1,010 | 3,394 | ||||||
| National Technical Systems, Inc. | 400 | 2,104 | ||||||
| On Assignment, Inc.* | 4,532 | 31,860 | ||||||
| RCM Technologies, Inc.* | 400 | 1,644 | ||||||
| School Specialty, Inc.* | 1,200 | 28,152 | ||||||
| Volt Information Sciences, Inc.* | 1,900 | 23,826 | ||||||
| 308,235 | ||||||||
Real Estate Management & Development 0.3% | ||||||||
| Avatar Holdings, Inc.* | 1,000 | 23,840 | ||||||
| Forest City Enterprises, Inc., Class A* | 5,200 | 80,340 | ||||||
| ZipRealty, Inc.* | 1,900 | 8,360 | ||||||
| 112,540 | ||||||||
Road & Rail 1.4% | ||||||||
| Amerco, Inc.* | 800 | 49,960 | ||||||
| Arkansas Best Corp. | 2,000 | 60,920 | ||||||
| Avis Budget Group, Inc.* | 2,200 | 33,264 | ||||||
| Celadon Group, Inc.* | 1,900 | 28,367 | ||||||
| Covenant Transport Group, Inc.* | 200 | 1,480 | ||||||
| Frozen Food Express Industries* | 800 | 3,600 | ||||||
| Kansas City Southern* | 1,000 | 40,550 | ||||||
| Marten Transport Ltd.* | 2,000 | 43,700 | ||||||
| PAM Transportation Services, Inc.* | 1,072 | 16,981 | ||||||
| Ryder System, Inc. | 3,300 | 153,516 | ||||||
| Saia, Inc.* | 1,000 | 16,570 | ||||||
| USA Truck, Inc.* | 1,250 | 23,025 | ||||||
| Werner Enterprises, Inc. | 5,400 | 121,068 | ||||||
| 593,001 | ||||||||
Semiconductors & Semiconductor Equipment 3.4% | ||||||||
| Actel Corp.* | 2,500 | 38,800 | ||||||
| Advanced Analogic Technologies, Inc.* | 4,600 | 17,480 | ||||||
2010 Semiannual Report 45
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
| Amtech Systems, Inc.* | 915 | $ | 8,757 | |||||
| Anadigics, Inc.* | 2,700 | 13,581 | ||||||
| AuthenTec, Inc.* | 1,500 | 3,855 | ||||||
| Axcelis Technologies, Inc.* | 12,700 | 30,226 | ||||||
| AXT, Inc.* | 3,000 | 13,110 | ||||||
| Cabot Microelectronics Corp.* | 900 | 34,524 | ||||||
| Cascade Microtech, Inc.* | 1,000 | 4,810 | ||||||
| Ceva, Inc.* | 500 | 6,120 | ||||||
| Cohu, Inc. | 2,000 | 32,300 | ||||||
| DSP Group, Inc.* | 2,788 | 22,778 | ||||||
| Exar Corp.* | 4,111 | 30,380 | ||||||
| Fairchild Semiconductor International, Inc.* | 9,500 | 106,590 | ||||||
| FEI Co.* | 700 | 15,750 | ||||||
| FormFactor, Inc.* | 500 | 7,505 | ||||||
| GSI Technology, Inc.* | 1,535 | 9,931 | ||||||
| Ikanos Communications, Inc.* | 2,900 | 8,207 | ||||||
| Integrated Device Technology, Inc.* | 16,600 | 109,726 | ||||||
| Integrated Silicon Solution, Inc.* | 2,500 | 30,825 | ||||||
| International Rectifier Corp.* | 4,100 | 94,382 | ||||||
| Intersil Corp., Class A | 6,683 | 99,443 | ||||||
| IXYS Corp.* | 1,400 | 12,642 | ||||||
| Kopin Corp.* | 3,700 | 15,577 | ||||||
| Lattice Semiconductor Corp.* | 6,200 | 32,674 | ||||||
| Mattson Technology, Inc.* | 2,800 | 12,600 | ||||||
| Microtune, Inc.* | 1,600 | 4,288 | ||||||
| MKS Instruments, Inc.* | 1,805 | 40,937 | ||||||
| MoSys, Inc.* | 1,100 | 4,752 | ||||||
| Nanometrics, Inc.* | 1,380 | 14,766 | ||||||
| Novellus Systems, Inc.* | 800 | 20,960 | ||||||
| OmniVision Technologies, Inc.* | 4,200 | 73,752 | ||||||
| PDF Solutions, Inc.* | 1,600 | 7,920 | ||||||
| Pericom Semiconductor Corp.* | 1,645 | 19,214 | ||||||
| Photronics, Inc.* | 6,250 | 34,063 | ||||||
| PLX Technology, Inc.* | 1,400 | 7,350 | ||||||
| Rudolph Technologies, Inc.* | 3,000 | 28,590 | ||||||
| Sigma Designs, Inc.* | 2,280 | 27,041 | ||||||
| Silicon Image, Inc.* | 4,000 | 14,880 | ||||||
| Skyworks Solutions, Inc.* | 400 | 6,736 | ||||||
| Standard Microsystems Corp.* | 853 | 21,905 | ||||||
| TriQuint Semiconductor, Inc.* | 9,900 | 74,646 | ||||||
| Ultra Clean Holdings, Inc.* | 1,200 | 11,844 | ||||||
| Ultratech, Inc.* | 1,300 | 19,097 | ||||||
| Veeco Instruments, Inc.* | 1,700 | 74,783 | ||||||
| Virage Logic Corp.* | 1,800 | 16,704 | ||||||
| Zoran Corp.* | 5,400 | 52,542 | ||||||
| 1,389,343 | ||||||||
Software 0.6% | ||||||||
| Bsquare Corp.* | 720 | 1,872 | ||||||
| EPIQ Systems, Inc.* | 3,100 | 37,355 | ||||||
| ePlus, Inc.* | 460 | 8,560 | ||||||
| JDA Software Group, Inc.* | 1,200 | 34,680 | ||||||
| Kenexa Corp.* | 1,300 | 19,513 | ||||||
| Lawson Software, Inc.* | 2,100 | 16,296 | ||||||
| Mentor Graphics Corp.* | 1,300 | 11,687 | ||||||
| Opnet Technologies, Inc. | 500 | 8,030 | ||||||
| Pervasive Software, Inc.* | 500 | 2,490 | ||||||
| Progress Software Corp.* | 600 | 19,350 | ||||||
| S1 Corp.* | 1,100 | 6,787 | ||||||
| Smith Micro Software, Inc.* | 2,700 | 25,623 | ||||||
| SonicWALL, Inc.* | 4,775 | 48,371 | ||||||
| THQ, Inc.* | 2,400 | 18,240 | ||||||
| Wayside Technology Group, Inc. | 200 | 1,910 | ||||||
| 260,764 | ||||||||
Specialty Retail 4.8% | ||||||||
| Aaron’s, Inc. | 1,500 | 33,855 | ||||||
| AC Moore Arts & Crafts, Inc.* | 2,110 | 8,609 | ||||||
| America’s Car-Mart, Inc.* | 900 | 22,797 | ||||||
| AutoNation, Inc.* | 10,100 | 204,020 | ||||||
| Barnes & Noble, Inc. | 6,100 | 134,444 | ||||||
| Bebe Stores, Inc. | 2,300 | 18,952 | ||||||
Books-A-Million, Inc. | 1,500 | 11,100 | ||||||
| Brown Shoe Co., Inc. | 3,200 | 60,160 | ||||||
Build-A-Bear Workshop, Inc.* | 2,244 | 21,453 | ||||||
| Cabela’s, Inc.* | 6,600 | 119,856 | ||||||
| Cache, Inc.* | 1,100 | 7,513 | ||||||
| Charming Shoppes, Inc.* | 8,160 | 46,104 | ||||||
| Christopher & Banks Corp. | 2,310 | 22,615 | ||||||
| Coldwater Creek, Inc.* | 3,400 | 24,072 | ||||||
| Collective Brands, Inc.* | 2,700 | 63,315 | ||||||
| Conn’s, Inc.* | 1,900 | 18,107 | ||||||
| Cost Plus, Inc.* | 900 | 4,887 | ||||||
| Destination Maternity Corp.* | 300 | 9,480 | ||||||
| Dress Barn, Inc.* | 1,300 | 35,984 | ||||||
| DSW, Inc., Class A* | 1,300 | 39,260 | ||||||
| Finish Line, Inc. (The), Class A | 5,600 | 90,216 | ||||||
| Foot Locker, Inc. | 8,700 | 133,545 | ||||||
| Genesco, Inc.* | 600 | 19,974 | ||||||
| Golfsmith International Holdings, Inc.* | 700 | 3,199 | ||||||
| Group 1 Automotive, Inc.* | 2,600 | 80,730 | ||||||
| Haverty Furniture Cos., Inc. | 1,700 | 27,710 | ||||||
| HOT Topic, Inc. | 4,300 | 32,852 | ||||||
| Jo-Ann Stores, Inc.* | 2,000 | 88,240 | ||||||
| Lithia Motors, Inc., Class A* | 1,100 | 8,778 | ||||||
| MarineMax, Inc.* | 2,300 | 25,645 | ||||||
| Men’s Wearhouse, Inc. (The) | 1,500 | 35,445 | ||||||
| New York & Co., Inc.* | 3,200 | 19,648 | ||||||
| Office Depot, Inc.* | 15,400 | 105,644 | ||||||
| Pacific Sunwear Of California* | 4,300 | 21,758 | ||||||
| Penske Auto Group, Inc.* | 7,300 | 109,354 | ||||||
| PEP Boys-Manny Moe & Jack | 1,900 | 23,807 | ||||||
Rent-A-Center, Inc.* | 3,000 | 77,460 | ||||||
| Shoe Carnival, Inc.* | 823 | 22,764 | ||||||
| Stage Stores, Inc. | 2,200 | 33,550 | ||||||
| Stein Mart, Inc.* | 3,227 | 30,592 | ||||||
| Systemax, Inc. | 1,000 | 23,230 | ||||||
| Tandy Leather Factory, Inc.* | 200 | 902 | ||||||
46 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Specialty Retail (continued) | ||||||||
| Trans World Entertainment Corp.* | 2,150 | $ | 5,009 | |||||
| West Marine, Inc.* | 2,342 | 28,034 | ||||||
| Zale Corp.* | 3,300 | 10,758 | ||||||
| 1,965,427 | ||||||||
Textiles, Apparel & Luxury Goods 1.7% | ||||||||
| Columbia Sportswear Co. | 2,700 | 149,958 | ||||||
| Culp, Inc.* | 200 | 2,388 | ||||||
| Delta Apparel, Inc.* | 158 | 2,653 | ||||||
| G-III Apparel Group Ltd.* | 600 | 17,160 | ||||||
| Heelys, Inc.* | 2,200 | 6,050 | ||||||
| Iconix Brand Group, Inc.* | 5,700 | 98,382 | ||||||
| Jones Apparel Group, Inc. | 3,200 | 69,632 | ||||||
| Kenneth Cole Productions, Inc., Class A* | 1,000 | 12,460 | ||||||
| K-Swiss, Inc., Class A* | 2,300 | 28,612 | ||||||
| Lakeland Industries, Inc.* | 200 | 1,760 | ||||||
| Lazare Kaplan International, Inc.*(a) | 300 | 750 | ||||||
| Liz Claiborne, Inc.* | 2,600 | 22,724 | ||||||
| Movado Group, Inc.* | 1,600 | 19,856 | ||||||
| Oxford Industries, Inc. | 1,200 | 25,908 | ||||||
| Perry Ellis International, Inc.* | 1,600 | 38,608 | ||||||
| Quiksilver, Inc.* | 3,200 | 17,056 | ||||||
| RG Barry Corp. | 400 | 4,116 | ||||||
| Rocky Brands, Inc.* | 700 | 6,881 | ||||||
| Skechers U.S.A., Inc., Class A* | 2,600 | 99,710 | ||||||
| Tandy Brands Accessories, Inc.* | 500 | 2,020 | ||||||
| Timberland Co. (The), Class A* | 1,200 | 25,800 | ||||||
| Unifi, Inc.* | 5,800 | 22,214 | ||||||
| UniFirst Corp. | 500 | 24,435 | ||||||
| 699,133 | ||||||||
Thrifts & Mortgage Finance 3.1% | ||||||||
| Abington Bancorp, Inc. | 2,499 | 23,765 | ||||||
| Astoria Financial Corp. | 4,800 | 77,472 | ||||||
| Atlantic Coast Federal Corp. | 1,200 | 3,300 | ||||||
| Bank Mutual Corp. | 1,300 | 9,256 | ||||||
| BankAtlantic Bancorp, Inc., Class A* | 6,697 | 17,546 | ||||||
| BankFinancial Corp. | 2,114 | 20,421 | ||||||
| Beneficial Mutual Bancorp, Inc.* | 6,413 | 63,553 | ||||||
| Berkshire Hills Bancorp, Inc. | 1,300 | 27,300 | ||||||
| BofI Holding, Inc.* | 700 | 12,341 | ||||||
| Dime Community Bancshares | 1,800 | 22,950 | ||||||
| Doral Financial Corp.* | 7,600 | 40,964 | ||||||
| ESSA Bancorp, Inc. | 1,500 | 18,945 | ||||||
| Federal Agricultural Mortgage Corp., Class C | 1,000 | 22,520 | ||||||
| First Defiance Financial Corp. | 300 | 4,050 | ||||||
| First Financial Holdings, Inc. | 400 | 5,648 | ||||||
| First Financial Northwest, Inc. | 2,600 | 16,770 | ||||||
| First Niagara Financial Group, Inc. | 3,846 | 53,459 | ||||||
| First Place Financial Corp. | 367 | 1,864 | ||||||
| Flushing Financial Corp. | 3,100 | 42,191 | ||||||
| Home Federal Bancorp, Inc. | 2,000 | 31,860 | ||||||
| HopFed Bancorp, Inc. | 300 | 4,017 | ||||||
| Legacy Bancorp, Inc. | 700 | 6,559 | ||||||
| Louisiana Bancorp, Inc.* | 600 | 8,700 | ||||||
| Meridian Interstate Bancorp, Inc.* | 203 | 2,339 | ||||||
| MGIC Investment Corp.* | 13,300 | 138,719 | ||||||
| NewAlliance Bancshares, Inc. | 6,959 | 90,676 | ||||||
| Northeast Community Bancorp, Inc. | 300 | 1,833 | ||||||
| Northwest Bancshares, Inc. | 4,895 | 61,138 | ||||||
| OceanFirst Financial Corp. | 1,710 | 21,991 | ||||||
| People’s United Financial, Inc. | 900 | 13,977 | ||||||
| PMI Group, Inc. (The)* | 8,800 | 45,848 | ||||||
| Provident Financial Holdings, Inc. | 1,200 | 7,200 | ||||||
| Provident Financial Services, Inc. | 2,000 | 26,360 | ||||||
| Provident New York Bancorp | 1,147 | 11,780 | ||||||
| Radian Group, Inc. | 8,800 | 124,872 | ||||||
| Riverview Bancorp, Inc.* | 589 | 2,091 | ||||||
| Rome Bancorp, Inc. | 700 | 6,020 | ||||||
| SI Financial Group, Inc.* | 1,100 | 7,018 | ||||||
| Tree.com, Inc.* | 1,200 | 10,920 | ||||||
| United Community Financial Corp.* | 763 | 1,526 | ||||||
| United Financial Bancorp, Inc. | 1,800 | 25,164 | ||||||
| United Western Bancorp, Inc. | 472 | 864 | ||||||
| Washington Federal, Inc. | 5,000 | 102,850 | ||||||
| Waterstone Financial, Inc.* | 1,700 | 6,562 | ||||||
| Westfield Financial, Inc. | 3,700 | 33,670 | ||||||
| 1,278,869 | ||||||||
Tobacco 0.4% | ||||||||
| Alliance One International, Inc.* | 10,088 | 51,348 | ||||||
| Universal Corp. | 2,100 | 108,738 | ||||||
| 160,086 | ||||||||
Trading Companies & Distributors 1.0% | ||||||||
| Aceto Corp. | 1,834 | 12,233 | ||||||
| Aircastle Ltd. | 800 | 9,608 | ||||||
| Applied Industrial Technologies, Inc. | 1,400 | 43,092 | ||||||
| DXP Enterprises, Inc.* | 600 | 9,954 | ||||||
| Empire Resources, Inc. | 300 | 588 | ||||||
| GATX Corp. | 2,600 | 84,864 | ||||||
| H&E Equipment Services, Inc.* | 3,366 | 39,752 | ||||||
| Interline Brands, Inc.* | 1,200 | 24,972 | ||||||
| TAL International Group, Inc. | 1,300 | 33,787 | ||||||
| Titan Machinery, Inc.* | 744 | 10,699 | ||||||
| United Rentals, Inc.* | 4,900 | 70,364 | ||||||
| WESCO International, Inc.* | 2,100 | 85,302 | ||||||
| 425,215 | ||||||||
Water Utilities 0.1% | ||||||||
| Middlesex Water Co. | 800 | 14,448 | ||||||
| Pennichuck Corp. | 200 | 4,654 | ||||||
| SJW Corp. | 600 | 16,488 | ||||||
| 35,590 | ||||||||
Wireless Telecommunication Services 0.6% | ||||||||
| FiberTower Corp.* | 1,000 | 5,440 | ||||||
| Leap Wireless International, Inc.* | 4,600 | 84,272 | ||||||
2010 Semiannual Report 47
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide U.S. Small Cap Value Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Wireless Telecommunication Services (continued) | ||||||||
| MetroPCS Communications, Inc.* | 700 | $ | 5,341 | |||||
| Telephone & Data Systems, Inc. | 3,500 | 113,426 | ||||||
| United States Cellular Corp.* | 1,200 | 50,496 | ||||||
| 258,975 | ||||||||
Total Common Stocks (cost $37,537,339) | 39,714,019 | |||||||
| Mutual Fund 3.9% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 3.9% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (b) | 1,593,593 | 1,593,593 | ||||||
Total Mutual Fund (cost $1,593,593) | 1,593,593 | |||||||
Total Investments (cost $39,130,932) (c) — 101.0% | 41,307,612 | |||||||
Liabilities in excess of other assets — (1.0%) | (410,239 | ) | ||||||
NET ASSETS — 100.0% | $ | 40,897,373 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | Fair Valued Security. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (c) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| † | Amount rounds to less than 0.1%. |
| Ltd. | Limited | |
| NA | National Association |
The accompanying notes are an integral part of these financial statements.
48 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| U.S. Small Cap | |||||
| Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $39,130,932) | $ | 41,307,612 | |||
| Dividends receivable | 12,426 | ||||
| Receivable for capital shares issued | 324,314 | ||||
| Prepaid expenses and other assets | 44,412 | ||||
| Total Assets | 41,688,764 | ||||
Liabilities: | |||||
| Payable for investments purchased | 743,402 | ||||
| Payable for capital shares redeemed | 1 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 22,890 | ||||
| Fund administration fees | 3,454 | ||||
| Distribution fees | 48 | ||||
| Administrative servicing fees | 7,414 | ||||
| Accounting and transfer agent fees | 8,938 | ||||
| Trustee fees | 394 | ||||
| Custodian fees | 153 | ||||
| Compliance program costs (Note 3) | 241 | ||||
| Professional fees | 4,456 | ||||
| Total Liabilities | 791,391 | ||||
Net Assets | $ | 40,897,373 | |||
Represented by: | |||||
| Capital | $ | 40,154,575 | |||
| Accumulated net investment loss | (48,258 | ) | |||
| Accumulated net realized losses from investment transactions | (1,385,624 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 2,176,680 | ||||
Net Assets | $ | 40,897,373 | |||
Net Assets: | |||||
| Class A Shares | $ | 74,879 | |||
| Class C Shares | 40,672 | ||||
| Institutional Service Class Shares | 40,737,345 | ||||
| Institutional Class Shares | 44,477 | ||||
| Total | $ | 40,897,373 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 7,520 | ||||
| Class C Shares | 4,115 | ||||
| Institutional Service Class Shares | 4,084,762 | ||||
| Institutional Class Shares | 4,452 | ||||
| Total | 4,100,849 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 49
| 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 | $ | 9.96 | |||
| Class C Shares (a) | $ | 9.88 | |||
| Institutional Service Class Shares | $ | 9.97 | |||
| Institutional 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 | $ | 10.57 | |||
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. |
50 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| U.S. Small Cap | |||||
| Value Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income | $ | 178,401 | |||
| Foreign tax withholding | (5 | ) | |||
| Total Income | 178,396 | ||||
EXPENSES: | |||||
| Investment advisory fees | 140,330 | ||||
| Fund administration fees | 16,676 | ||||
| Distribution fees Class A | 87 | ||||
| Distribution fees Class C | 118 | ||||
| Administrative servicing fees Institutional Service Class | 36,764 | ||||
| Registration and filing fees | 25,154 | ||||
| Professional fees | 4,068 | ||||
| Printing fees | 2,748 | ||||
| Trustee fees | 618 | ||||
| Custodian fees | 542 | ||||
| Accounting and transfer agent fees | 6,558 | ||||
| Compliance program costs (Note 3) | 141 | ||||
| Other | 1,430 | ||||
| Total expenses before earnings credit and expenses reimbursed | 235,234 | ||||
| Earnings credit (Note 5) | (15 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (36,770 | ) | |||
| Net Expenses | 198,449 | ||||
NET INVESTMENT LOSS | (20,053 | ) | |||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (68,542 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 7,972,593 | ||||
| Net realized/unrealized gains from investments | 7,904,051 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 7,883,998 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 51
Statements of Changes in Net Assets
| Nationwide U.S. Small Cap Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income (loss) | $ | (20,053 | ) | $ | 46,221 | |||||
| Net realized losses from investment transactions | (68,542 | ) | (1,321,736 | ) | ||||||
| Net change in unrealized appreciation from investments | 7,972,593 | 3,534,314 | ||||||||
| Change in net assets resulting from operations | 7,883,998 | 2,258,799 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (155 | ) | (27 | ) | ||||||
| Class C | – | – | ||||||||
| Institutional Service Class | (27,931 | ) | (131,450 | ) | ||||||
| Institutional Class | (119 | ) | (208 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (127 | ) | |||||||
| Class C | – | (233 | ) | |||||||
| Institutional Service Class | – | (352,250 | ) | |||||||
| Institutional Class | – | (446 | ) | |||||||
| Change in net assets from shareholder distributions | (28,205 | ) | (484,741 | ) | ||||||
| Change in net assets from capital transactions | 6,987,218 | 61,431 | ||||||||
| Change in net assets | 14,843,011 | 1,835,489 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 26,054,362 | 24,218,873 | ||||||||
| End of period | $ | 40,897,373 | $ | 26,054,362 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (48,258 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 22,281 | $ | 66,375 | ||||||
| Dividends reinvested | 140 | 154 | ||||||||
| Cost of shares redeemed | (37,648 | ) | (7,468 | ) | ||||||
| Total Class A | (15,227 | ) | 59,061 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 26,312 | 2,000 | ||||||||
| Dividends reinvested | – | 233 | ||||||||
| Cost of shares redeemed (a) | – | (9,300 | ) | |||||||
| Total Class C | 26,312 | (7,067 | ) | |||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 8,954,275 | 2,754,549 | ||||||||
| Dividends reinvested | 27,931 | 483,700 | ||||||||
| Cost of shares redeemed | (2,006,289 | ) | (3,232,101 | ) | ||||||
| Total Institutional Service Class | 6,975,917 | 6,148 | ||||||||
Amount designated as “–” are zero or have been rounded to zero.
| (a) | Includes redemption fees – see Note 4 to Financial Statements. The accompanying notes are an integral part of these financial statements. |
52 Semiannual Report 2010
| Nationwide U.S. Small Cap Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | $ | 97 | $ | 32,234 | ||||||
| Dividends reinvested | 119 | 654 | ||||||||
| Cost of shares redeemed | – | (29,599 | ) | |||||||
| Total Institutional Class | 216 | 3,289 | ||||||||
| Change in net assets from capital transactions | $ | 6,987,218 | $ | 61,431 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,415 | 9,367 | ||||||||
| Reinvested | 17 | 24 | ||||||||
| Redeemed | (4,275 | ) | (1,171 | ) | ||||||
| Total Class A Shares | (1,843 | ) | 8,220 | |||||||
Class C Shares | ||||||||||
| Issued | 3,099 | 302 | ||||||||
| Reinvested | – | 37 | ||||||||
| Redeemed | – | (1,585 | ) | |||||||
| Total Class C Shares | 3,099 | (1,246 | ) | |||||||
Institutional Service Class Shares | ||||||||||
| Issued | 921,505 | 437,493 | ||||||||
| Reinvested | 3,402 | 77,547 | ||||||||
| Redeemed | (233,270 | ) | (497,883 | ) | ||||||
| Total Institutional Service Class Shares | 691,637 | 17,157 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 10 | 5,174 | ||||||||
| Reinvested | 14 | 105 | ||||||||
| Redeemed | – | (5,174 | ) | |||||||
| Total Institutional Class Shares | 24 | 105 | ||||||||
| Total change in shares | 692,917 | 24,236 | ||||||||
Amount designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 53
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 | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .64 | – | 2 | .34 | 2 | .34 | (0 | .02) | – | (0 | .02) | $ | 9 | .96 | 30 | .63% | $ | 74,879 | 1 | .34% | (0 | .09%) | 1 | .60% | 11 | .71% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .15 | (0 | .01) | 0 | .62 | 0 | .61 | (0 | .02) | (0 | .10) | (0 | .12) | $ | 7 | .64 | 8 | .99% | $ | 71,532 | 1 | .34% | (0 | .11%) | 1 | .65% | 22 | .58% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .60 | (0 | .05) | 2 | .33 | 2 | .28 | – | – | – | $ | 9 | .88 | 30 | .00% | $ | 40,672 | 2 | .08% | (1 | .03%) | 2 | .32% | 11 | .71% | ||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .12 | (0 | .02) | 0 | .59 | 0 | .57 | – | (0 | .10) | (0 | .10) | $ | 7 | .60 | 8 | .48% | $ | 7,720 | 2 | .09% | (0 | .37%) | 2 | .48% | 22 | .58% | ||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .65 | (0 | .01) | 2 | .34 | 2 | .33 | (0 | .01) | – | (0 | .01) | $ | 9 | .97 | 30 | .46% | $ | 40,737,345 | 1 | .34% | (0 | .14%) | 1 | .59% | 11 | .71% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .16 | 0 | .01 | 0 | .62 | 0 | .63 | (0 | .04) | (0 | .10) | (0 | .14) | $ | 7 | .65 | 9 | .27% | $ | 25,941,166 | 1 | .34% | 0 | .20% | 1 | .75% | 22 | .58% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .67 | 0 | .01 | 2 | .34 | 2 | .35 | (0 | .03) | – | (0 | .03) | $ | 9 | .99 | 30 | .67% | $ | 44,477 | 1 | .09% | 0 | .12% | 1 | .34% | 11 | .71% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .17 | 0 | .03 | 0 | .62 | 0 | .65 | (0 | .05) | (0 | .10) | (0 | .15) | $ | 7 | .67 | 9 | .58% | $ | 33,944 | 1 | .09% | 0 | .48% | 1 | .46% | 22 | .58% | |||||||||||||||||||||||||||||||||||||||||
| 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) | Per share calculations were performed using average shares method. |
| (g) | 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.
54 Semiannual Report 2010
| 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, 2010, the Nationwide Value Fund (Class A at NAV) returned 12.96% versus 16.77% for its benchmark, the Russell 1000® Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Large-Cap Core Funds (consisting of 980 funds as of April 30, 2010) was 14.38% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
During the reporting period, the Fund’s positions in the industrials, financials and health-care sectors provided the most positive contributions to the Fund’s relative returns. In the industrials sector, Fund holdings in specialty manufacturers United Technologies Corp. and Dover Corp. were the largest contributors to Fund returns, while financial services providers Prudential Financial, Inc. and SunTrust Banks Inc. led Fund returns in the financials sector. In the health-care sector, the greatest gains came from the Fund’s investments in medical products company Medtronic, Inc.
What areas of investment detracted from Fund performance?
The materials sector provided the only negative contribution to Fund returns during the reporting period. The Fund’s holdings in commercial services and supplies maker Avery Dennison Corp. were hurt as Avery Dennison’s retail and office supply businesses continued to disappoint and its core pressure-sensitive materials business weakened. We eliminated the Fund’s position in Avery Dennison during the first quarter of 2010.
What is your outlook for the near term?
As a result of the recent low-quality rally, we are finding more attractive valuation opportunities in higher-quality securities. We continue to emphasize multinational companies with strong brand franchises and worldwide competitive advantages. Our long-term secular thesis for energy remains intact, due to the continued tight conditions in worldwide supply and demand for oil. We continue to find good value in the health-care sector, in part due to the controversy surrounding recent legislation. Health care and energy remain the largest sector weightings in the Fund’s portfolio.
Subadviser:
Diamond Hill Capital Management, Inc.
Diamond Hill Capital Management, Inc.
Portfolio Managers:
Charles S. Bath, CFA; William Dierker, CFA; and
Charles S. Bath, CFA; William Dierker, CFA; and
Christopher Welch, CFA
2010 Semiannual Report 55
| Fund Performance | Nationwide Value Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 12.96% | 37.88% | -4.66% | ||||||||||
| w/SC3 | 6.43% | 30.00% | -7.23% | |||||||||||
| Class C | w/o SC2 | 12.55% | 36.77% | -5.38% | ||||||||||
| w/SC4 | 11.55% | 35.77% | -5.38% | |||||||||||
Class R25,6 | 12.89% | 37.39% | -4.92% | |||||||||||
Institutional Class5 | 13.14% | 38.22% | -4.37% | |||||||||||
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 | 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 | 13.46% | 1.10% | ||||
| Class C | 14.21% | 1.85% | ||||
| Class R2 | 13.71% | 1.35% | ||||
| Institutional Class | 13.21% | 0.85% | ||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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. |
56 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | Expense Ratio (%) | |||||||||||||||||
| Nationwide Value Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,129.60 | 5.81 | 1.10 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.34 | 5.51 | 1.10 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,125.50 | 9.75 | 1.85 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.62 | 9.25 | 1.85 | |||||||||||||||
Class R2 Sharesc | Actual | 1,000.00 | 1,128.90 | 7.13 | 1.35 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.10 | 6.76 | 1.35 | |||||||||||||||
| Institutional Class Shares | Actual Hypothetical | b | 1,000.00 1,000.00 | 1,131.40 1,020.58 | 4.49 4.26 | 0.85 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 Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
2010 Semiannual Report 57
| Portfolio Summary | Nationwide Value Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 92 | .4% | ||
| Mutual Fund | 4 | .4% | ||
| Other assets in excess of liabilities | 3 | .2% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Oil, Gas & Consumable Fuels | 17 | .6% | ||
| Pharmaceuticals | 9 | .9% | ||
| Insurance | 7 | .3% | ||
| Machinery | 6 | .4% | ||
| Aerospace & Defense | 5 | .2% | ||
| Health Care Equipment & Supplies | 5 | .1% | ||
| Household Products | 5 | .0% | ||
| Commercial Banks | 4 | .4% | ||
| Food & Staples Retailing | 4 | .1% | ||
| Food Products | 3 | .9% | ||
| Other Industries | 31 | .1% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Invesco AIM Liquid Assets Portfolio | 4 | .6% | ||
| Occidental Petroleum Corp. | 4 | .3% | ||
| Apache Corp. | 4 | .3% | ||
| Devon Energy Corp. | 3 | .8% | ||
| Anadarko Petroleum Corp. | 3 | .7% | ||
| United Technologies Corp. | 3 | .7% | ||
| Medtronic, Inc. | 3 | .5% | ||
| PepsiCo, Inc. | 3 | .0% | ||
| Procter & Gamble Co. (The) | 2 | .9% | ||
| Pfizer, Inc. | 2 | .9% | ||
| Other Holdings | 63 | .3% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
58 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Value Fund
| Common Stocks 92.4% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 5.0% | ||||||||
| Raytheon Co. | 555 | $ | 32,357 | |||||
| United Technologies Corp. | 1,030 | 77,198 | ||||||
| 109,555 | ||||||||
Beverages 2.9% | ||||||||
| PepsiCo, Inc. | 980 | 63,916 | ||||||
Capital Markets 1.4% | ||||||||
| Bank of New York Mellon Corp. (The) | 995 | 30,974 | ||||||
Commercial Banks 4.3% | ||||||||
| SunTrust Banks, Inc. | 725 | 21,460 | ||||||
| U.S. Bancorp | 855 | 22,888 | ||||||
| Wells Fargo & Co. | 1,490 | 49,334 | ||||||
| 93,682 | ||||||||
Communications Equipment 0.9% | ||||||||
| Cisco Systems, Inc.* | 760 | 20,459 | ||||||
Computers & Peripherals 1.6% | ||||||||
| Dell, Inc.* | 2,235 | 36,162 | ||||||
Construction & Engineering 1.1% | ||||||||
| Fluor Corp. | 470 | 24,835 | ||||||
Diversified Financial Services 2.7% | ||||||||
| JPMorgan Chase & Co. | 1,370 | 58,335 | ||||||
Energy Equipment & Services 0.8% | ||||||||
| Transocean Ltd.* | 230 | 16,664 | ||||||
Food & Staples Retailing 3.9% | ||||||||
| Sysco Corp. | 1,410 | 44,471 | ||||||
| Wal-Mart Stores, Inc. | 780 | 41,847 | ||||||
| 86,318 | ||||||||
Food Products 3.8% | ||||||||
| ConAgra Foods, Inc. | 1,670 | 40,865 | ||||||
| General Mills, Inc. | 585 | 41,640 | ||||||
| 82,505 | ||||||||
Health Care Equipment & Supplies 5.0% | ||||||||
| Baxter International, Inc. | 715 | 33,762 | ||||||
| Medtronic, Inc. | 1,720 | 75,147 | ||||||
| 108,909 | ||||||||
Health Care Providers & Services 2.7% | ||||||||
| Quest Diagnostics, Inc. | 370 | 21,149 | ||||||
| UnitedHealth Group, Inc. | 1,280 | 38,797 | ||||||
| 59,946 | ||||||||
Hotels, Restaurants & Leisure 2.0% | ||||||||
| McDonald’s Corp. | 630 | 44,472 | ||||||
Household Products 4.8% | ||||||||
| Kimberly-Clark Corp. | 705 | 43,188 | ||||||
| Procter & Gamble Co. (The) | 1,000 | 62,160 | ||||||
| 105,348 | ||||||||
Industrial Conglomerates 1.1% | ||||||||
| 3M Co. | 260 | 23,054 | ||||||
Information Technology Services 1.0% | ||||||||
| Alliance Data Systems Corp.* | 280 | 21,017 | ||||||
Insurance 7.1% | ||||||||
| Allstate Corp. (The) | 615 | 20,092 | ||||||
| Marsh & McLennan Cos., Inc. | 1,320 | 31,970 | ||||||
| Prudential Financial, Inc. | 805 | 51,166 | ||||||
| Travelers Cos., Inc. (The) | 1,040 | 52,770 | ||||||
| 155,998 | ||||||||
Machinery 6.2% | ||||||||
| Dover Corp. | 870 | 45,432 | ||||||
| Illinois Tool Works, Inc. | 850 | 43,435 | ||||||
| Parker Hannifin Corp. | 690 | 47,734 | ||||||
| 136,601 | ||||||||
Multi-Utilities 2.5% | ||||||||
| Dominion Resources, Inc. | 1,285 | 53,713 | ||||||
Oil, Gas & Consumable Fuels 17.0% | ||||||||
| Anadarko Petroleum Corp. | 1,270 | 78,943 | ||||||
| Apache Corp. | 895 | 91,075 | ||||||
| Devon Energy Corp. | 1,195 | 80,459 | ||||||
| Occidental Petroleum Corp. | 1,037 | 91,941 | ||||||
| XTO Energy, Inc. | 640 | 30,413 | ||||||
| 372,831 | ||||||||
Pharmaceuticals 9.6% | ||||||||
| Abbott Laboratories | 1,140 | 58,322 | ||||||
| Johnson & Johnson | 820 | 52,726 | ||||||
| Merck & Co., Inc. | 1,090 | 38,194 | ||||||
| Pfizer, Inc. | 3,680 | 61,530 | ||||||
| 210,772 | ||||||||
Semiconductors & Semiconductor Equipment 2.5% | ||||||||
| KLA-Tencor Corp. | 1,640 | 55,858 | ||||||
Software 2.5% | ||||||||
| Microsoft Corp. | 1,760 | 53,750 | ||||||
Total Common Stocks (cost $1,788,821) | 2,025,674 | |||||||
2010 Semiannual Report 59
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Value Fund (Continued)
| Mutual Fund 4.4% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 4.4% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (a) | $ | 97,145 | $ | 97,145 | ||||
Total Mutual Fund (cost $97,145) | 97,145 | |||||||
Total Investments (cost $1,885,966) (b) — 96.8% | 2,122,819 | |||||||
Other assets in excess of liabilities — 3.2% | 70,379 | |||||||
NET ASSETS — 100.0% | $ | 2,193,198 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | Represents 7-day effective yield as of April 30, 2010. | |
| (b) | 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.
60 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Value Fund | |||||
Assets: | |||||
| Investments, at value (cost $1,885,966) | $ | 2,122,819 | |||
| Interest and dividends receivable | 2,106 | ||||
| Receivable for capital shares issued | 24,236 | ||||
| Receivable from adviser | 4,522 | ||||
| Prepaid expenses and other assets | 45,561 | ||||
| Total Assets | 2,199,244 | ||||
Liabilities: | |||||
| Accrued expenses and other payables: | |||||
| Fund administration fees | 210 | ||||
| Distribution fees | 302 | ||||
| Administrative servicing fees | 377 | ||||
| Accounting and transfer agent fees | 2,047 | ||||
| Trustee fees | 23 | ||||
| Custodian fees | 90 | ||||
| Compliance program costs (Note 3) | 6 | ||||
| Professional fees | 2,984 | ||||
| Other | 7 | ||||
| Total Liabilities | 6,046 | ||||
Net Assets | $ | 2,193,198 | |||
Represented by: | |||||
| Capital | $ | 2,172,378 | |||
| Accumulated undistributed net investment income | 4,686 | ||||
| Accumulated net realized losses from investment transactions | (220,719 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 236,853 | ||||
Net Assets | $ | 2,193,198 | |||
Net Assets: | |||||
| Class A Shares | $ | 1,252,431 | |||
| Class C Shares | 51,637 | ||||
| Class R2 Shares | 8,964 | ||||
| Institutional Class Shares | 880,166 | ||||
| Total | $ | 2,193,198 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 142,154 | ||||
| Class C Shares | 5,894 | ||||
| Class R2 Shares | 1,017 | ||||
| Institutional Class Shares | 99,691 | ||||
| Total | 248,756 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 8.81 | |||
| Class C Shares (a) | $ | 8.76 | |||
| Class R2 Shares | $ | 8.81 | |||
| Institutional Class Shares | $ | 8.83 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.35 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | For Class 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.
2010 Semiannual Report 61
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Value Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 2 | |||
| Dividend income | 18,520 | ||||
| Total Income | 18,522 | ||||
EXPENSES: | |||||
| Investment advisory fees | 6,534 | ||||
| Fund administration fees | 1,136 | ||||
| Distribution fees Class A | 1,391 | ||||
| Distribution fees Class C | 231 | ||||
| Distribution fees Class R2 | 22 | ||||
| Registration and filing fees | 20,695 | ||||
| Professional fees | 2,950 | ||||
| Printing fees | 1,396 | ||||
| Trustee fees | 42 | ||||
| Custodian fees | 196 | ||||
| Accounting and transfer agent fees | 1,661 | ||||
| Other | 848 | ||||
| Total expenses before earnings credit and expenses reimbursed | 37,102 | ||||
| Earnings credit (Note 5) | (17 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (26,889 | ) | |||
| Net Expenses | 10,196 | ||||
NET INVESTMENT INCOME: | 8,326 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 20,356 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 211,138 | ||||
| Net realized/unrealized gains from investments | 231,494 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 239,820 | |||
The accompanying notes are an integral part of these financial statements.
62 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 8,326 | $ | 16,196 | ||||||
| Net realized gains/(losses) from investment transactions | 20,356 | (144,868 | ) | |||||||
| Net change in unrealized appreciation from investments | 211,138 | 335,152 | ||||||||
| Change in net assets resulting from operations | 239,820 | 206,480 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (2,773 | ) | (10,772 | ) | ||||||
| Class C | (36 | ) | (702 | ) | ||||||
| Class R2 (a) | (18 | ) | (94 | ) | ||||||
| Institutional Class | (2,738 | ) | (12,846 | ) | ||||||
| Change in net assets from shareholder distributions | (5,565 | ) | (24,414 | ) | ||||||
| Change in net assets from capital transactions | 136,933 | 365,112 | ||||||||
| Change in net assets | 371,188 | 547,178 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 1,822,010 | 1,274,832 | ||||||||
| End of period | $ | 2,193,198 | $ | 1,822,010 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 4,686 | $ | 1,925 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 216,297 | $ | 472,860 | ||||||
| Dividends reinvested | 2,747 | 10,682 | ||||||||
| Cost of shares redeemed (b) | (90,135 | ) | (131,687 | ) | ||||||
| Total Class A | 128,909 | 351,855 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 5,242 | 29,373 | ||||||||
| Dividends reinvested | 36 | 702 | ||||||||
| Cost of shares redeemed | (10 | ) | (29,736 | ) | ||||||
| Total Class C | 5,268 | 339 | ||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 18 | 94 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Class R2 | 18 | 94 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | – | 3 | ||||||||
| Dividends reinvested | 2,738 | 12,846 | ||||||||
| Cost of shares redeemed | – | (25 | ) | |||||||
| Total Institutional Class | 2,738 | 12,824 | ||||||||
| Change in net assets from capital transactions | $ | 136,933 | $ | 365,112 | ||||||
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.
2010 Semiannual Report 63
Statements of Changes in Net Assets (Continued)
| Nationwide Value Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 25,135 | 71,404 | ||||||||
| Reinvested | 330 | 1,615 | ||||||||
| Redeemed | (10,656 | ) | (17,514 | ) | ||||||
| Total Class A Shares | 14,809 | 55,505 | ||||||||
Class C Shares | ||||||||||
| Issued | 621 | 4,437 | ||||||||
| Reinvested | 4 | 107 | ||||||||
| Redeemed | (1 | ) | (4,372 | ) | ||||||
| Total Class C Shares | 624 | 172 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 2 | 14 | ||||||||
| Redeemed | – | – | ||||||||
| Total Class R2 Shares | 2 | 14 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | 328 | 1,938 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Class Shares | 328 | 1,938 | ||||||||
| Total change in shares | 15,763 | 57,629 | ||||||||
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.
64 Semiannual Report 2010
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 | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | 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, 2010 (Unaudited) (f) | $ | 7 | .82 | 0 | .03 | 0 | .98 | 1 | .01 | (0 | .02) | (0 | .02) | – | $ | 8 | .81 | 12 | .96% | $ | 1,252,431 | 1 | .10% | 0 | .74% | 3 | .78% | 10 | .52% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .26 | 0 | .07 | 0 | .60 | 0 | .67 | (0 | .11) | (0 | .11) | – | $ | 7 | .82 | 9 | .59% | $ | 995,261 | 1 | .11% | 0 | .99% | 6 | .20% | 36 | .15% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 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, 2010 (Unaudited) (f) | $ | 7 | .79 | – | 0 | .98 | 0 | .98 | (0 | .01) | (0 | .01) | – | $ | 8 | .76 | 12 | .55% | $ | 51,637 | 1 | .85% | (0 | .02%) | 4 | .52% | 10 | .52% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .25 | 0 | .02 | 0 | .59 | 0 | .61 | (0 | .07) | (0 | .07) | – | $ | 7 | .79 | 8 | .67% | $ | 41,038 | 1 | .85% | 0 | .36% | 7 | .14% | 36 | .15% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 10 | .00 | – | (2 | .75) | (2 | .75) | – | – | – | $ | 7 | .25 | (27 | .50%) | $ | 36,986 | 1 | .85% | 0 | .08% | 12 | .42% | 31 | .13% | |||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .82 | 0 | .02 | 0 | .99 | 1 | .01 | (0 | .02) | (0 | .02) | – | $ | 8 | .81 | 12 | .89% | $ | 8,964 | 1 | .35% | 0 | .48% | 4 | .02% | 10 | .52% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .27 | 0 | .05 | 0 | .59 | 0 | .64 | (0 | .09) | (0 | .09) | – | $ | 7 | .82 | 9 | .10% | $ | 7,942 | 1 | .36% | 0 | .79% | 6 | .50% | 36 | .15% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 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% | ||||||||||||||||||||||||||||||||||||||||||
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 28, 2008 (commencement of operations) through October 31, 2008. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 65
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Value 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 (Losses) | Total | Net | Net Asset | Net Assets | Expenses | Income (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | 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, 2010 (Unaudited) (f) | $ | 7 | .83 | 0 | .04 | 0 | .99 | 1 | .03 | (0 | .03) | (0 | .03) | – | $ | 8 | .83 | 13 | .14% | $ | 880,166 | 0 | .85% | 0 | .99% | 3 | .52% | 10 | .52% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .27 | 0 | .09 | 0 | .60 | 0 | .69 | (0 | .13) | (0 | .13) | – | $ | 7 | .83 | 9 | .85% | $ | 777,769 | 0 | .85% | 1 | .31% | 5 | .98% | 36 | .15% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2008 (f)(g) | $ | 10 | .00 | 0 | .08 | (2 | .77) | (2 | .69) | (0 | .04) | (0 | .04) | – | $ | 7 | .27 | (26 | .98%) | $ | 708,730 | 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) | Per share calculations were performed using average shares method. |
| (g) | For the period from February 28, 2008 (commencement of operations) through October 31, 2008. |
The accompanying notes are an integral part of these financial statements.
66 Semiannual Report 2010
| 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, 2010, the Nationwide Bond Fund (Class A at NAV) returned 3.96% versus 2.54% for its benchmark, the Barclays Capital (BARCAP) U.S. Aggregate Bond Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Corporate Debt Funds A Rated (consisting of 138 funds as of April 30, 2010) was 4.00% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s overweight position relative to the benchmark in high-yield, investment-grade credit and commercial mortgage-backed securities (CMBS) contributed positively to Fund performance during the reporting period. The Fund’s underweight position relative to the benchmark in government bonds and short-duration bonds also helped Fund performance.
The asset classes mentioned above all outperformed and were good absolute performers as spreads narrowed in relation to Treasuries. The Fund’s investments in the CMBS sector performed particularly well; Treasury rates were up slightly during the reporting period.
What areas of investment detracted from Fund performance?
The Fund’s exposure to mortgage-backed securities (MBS) and Treasury Inflation Protected Securities (TIPS) hurt Fund performance, although the Fund was underweight in MBS relative to the benchmark. The Fund’s lack of exposure to non-Agency MBS also limited Fund performance during the reporting period.
MBS and TIPS were poor performers on an absolute and a relative basis. Many investors backed away from MBS during the reporting period as the Federal Reserve Board’s buying program was ending. Although the economy showed some signs of strength during the reporting period, many investors believed that inflation would remain under control in the near term and therefore lacked interest in TIPS.
What is your outlook for the near term?
The economic recovery appears unlikely to be derailed anytime soon, especially now that employment rates are growing. Job growth, along with modest inflation and low interest rates should boost incomes, spending and profits. Market valuations are not cheap, but asset values can be expected to resume an uptrend as long as macroeconomic prospects remain positive.
Subadviser:
Nationwide Asset Management, LLC
Nationwide Asset Management, LLC
Portfolio Managers:
Joel S. Buck and Gary S. Davis, CFA
Joel S. Buck and Gary S. Davis, CFA
2010 Semiannual Report 67
| Fund Performance | Nationwide Bond Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 3.96% | 16.47% | 5.01% | 6.19% | |||||||||||||
| w/SC2 | -0.48% | 11.53% | 4.10% | 5.73% | ||||||||||||||
Class B3 | w/o SC1 | 3.71% | 15.90% | 4.35% | 5.54% | |||||||||||||
| w/SC4 | -1.29% | 10.90% | 4.01% | 5.54% | ||||||||||||||
Class C5 | w/o SC1 | 3.71% | 15.91% | 4.35% | 5.56% | |||||||||||||
| w/SC6 | 2.71% | 14.91% | 4.35% | 5.56% | ||||||||||||||
| Class D | w/o SC1 | 4.16% | 17.04% | 5.35% | 6.49% | |||||||||||||
| w/SC7 | -0.48% | 11.73% | 4.38% | 6.00% | ||||||||||||||
Class R28,9,10 | 3.80% | 16.26% | 4.76% | 6.09% | ||||||||||||||
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 4.25% front-end sales charge was deducted. | |
| 3 | 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. | |
| 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, 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. | |
| 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 | A 4.50% front-end sales charge was deducted. | |
| 8 | Not subject to any sales charges. | |
| 9 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| 10 | 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. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 1.34% | 1.10% | ||||||||
| Class B | 1.99% | 1.75% | ||||||||
| Class C | 1.99% | 1.75% | ||||||||
| Class D | 1.04% | 0.80% | ||||||||
| Class R2 | 1.69% | 1.45% | ||||||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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 4/30/10. 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. |
68 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Bond Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,039.60 | 5.77 | 1.14 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.14 | 5.71 | 1.14 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,037.10 | 8.84 | 1.75 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.12 | 8.75 | 1.75 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,037.10 | 8.84 | 1.75 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.12 | 8.75 | 1.75 | |||||||||||||||
| Class D Shares | Actual | 1,000.00 | 1,041.60 | 4.10 | 0.81 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.78 | 4.06 | 0.81 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,038.00 | 7.07 | 1.40 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.85 | 7.00 | 1.40 | |||||||||||||||
| 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. |
2010 Semiannual Report 69
| Portfolio Summary | Nationwide Bond Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Corporate Bonds | 35 | .7% | ||
| Collateralized Mortgage Obligations | 17 | .6% | ||
| U.S. Treasury Notes | 10 | .2% | ||
| U.S. Government Mortgage Backed Agencies | 8 | .7% | ||
| Commercial Mortgage Backed Securities | 7 | .2% | ||
| U.S. Treasury Bonds | 6 | .7% | ||
| U.S. Government Sponsored & Agency Obligation | 4 | .5% | ||
| Mutual Fund | 3 | .7% | ||
| Asset-Backed Securities | 1 | .9% | ||
| Yankee Dollar | 1 | .2% | ||
| Municipal Bonds | 0 | .8% | ||
| Sovereign Bond | 0 | .6% | ||
| Other assets in excess of liabilities | 1 | .2% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Diversified Financial Services | 5 | .4% | ||
| Insurance | 3 | .4% | ||
| Beverages | 2 | .7% | ||
| Media | 2 | .6% | ||
| Metals & Mining | 2 | .5% | ||
| Oil, Gas & Consumable Fuels | 2 | .2% | ||
| Machinery | 1 | .4% | ||
| Wireless Telecommunication Services | 1 | .3% | ||
| Health Care Equipment & Supplies | 1 | .3% | ||
| Energy Equipment & Services | 1 | .2% | ||
| Other Industries | 76 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Fannie Mae REMICS, 4.50%, 03/25/39 | 5 | .9% | ||
| U.S. Treasury Note, 4.88%, 08/15/16 | 5 | .7% | ||
| U.S. Treasury Note, 3.25%, 05/31/16 | 4 | .6% | ||
| Federal Farm Credit Bank, 2.00%, 01/17/12 | 4 | .6% | ||
| U.S. Treasury Inflation Indexed Bond, 2.00%, 01/15/14 | 4 | .3% | ||
| Invesco AIM Liquid Assets Portfolio | 3 | .7% | ||
| Fannie Mae Grantor Trust, 7.30%, 05/25/10 | 3 | .4% | ||
| Fannie Mae Pool, 4.50%, 05/01/39 | 3 | .2% | ||
| U.S. Treasury Inflation Indexed Bond, 2.13%, 01/15/19 | 2 | .5% | ||
| Fannie Mae REMICS, 5.50%, 05/25/23 | 2 | .4% | ||
| Other Holdings | 59 | .7% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
70 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Bond Fund
| Asset-Backed Securities 1.9% | ||||||||
| Principal Amount | Market Value | |||||||
Other Asset-Backed Securities 1.9% | ||||||||
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2001-4, Class 1A6, 6.24%, 01/25/13 (a) | $ | 519,307 | $ | 500,288 | ||||
Residential Asset Mortgage Products, Inc., Series 2002-RS1, Class AI5, 5.91%, 01/25/32 (a) | 578,696 | 471,889 | ||||||
Structured Asset Securities Corp., Series 2004-6XS, Class A6, 4.63%, 03/25/34 (b) | 777,345 | 737,413 | ||||||
| 1,709,590 | ||||||||
Total Asset-Backed Securities (cost $1,875,323) | 1,709,590 | |||||||
| Collateralized Mortgage Obligations 17.6% | ||||||||
ABN Amro Mortgage Corp., Series 2003-8, Class A23, 5.50%, 06/25/33 | 893,597 | 866,719 | ||||||
American Home Mortgage Investment Trust, Series 2004-3, Class 6A1, 4.82%, 10/25/34 (b) | 837,502 | 733,055 | ||||||
Countrywide Alternative Loan Trust, Series 2007-2CB, Class 2A14, 5.75%, 03/25/37 | 998,788 | 738,913 | ||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-15, Class A7, 5.50%, 08/25/35 | 1,000,000 | 865,121 | ||||||
Fannie Mae Grantor Trust, Series 2000-T5, Class B, 7.30%, 05/25/10 | 3,000,000 | 3,000,725 | ||||||
| Fannie Mae REMICS | ||||||||
Series 2003-33, Class LB, 5.50%, 05/25/23 | 2,000,000 | 2,150,219 | ||||||
Series 2009-42, Class AP, 4.50%, 03/25/39 | 5,028,158 | 5,178,580 | ||||||
MASTR Alternative Loans Trust, Series 2005-6, Class 1A5, 5.50%, 12/25/35 | 1,000,000 | 745,478 | ||||||
Opteum Mortgage Acceptance Corp., Series 2005-5, Class 2AN, 5.68%, 12/25/35 (a) | 923,237 | 672,909 | ||||||
Residential Funding Securities LLC, Series 2003-RM2, Class AI3, 4.50%, 05/25/33 | 786,852 | 776,683 | ||||||
Total Collateralized Mortgage Obligations (cost $16,618,409) | 15,728,402 | |||||||
| Commercial Mortgage Backed Securities 7.2% | ||||||||
| Principal Amount | Market Value | |||||||
Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A3 5.84%, 04/10/49 (a) | 1,000,000 | 1,031,271 | ||||||
Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A3 5.69%, 09/15/40 (a) | 1,000,000 | 1,007,662 | ||||||
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A2 4.94%, 12/15/35 | 955,000 | 1,002,643 | ||||||
Enterprise Mortgage Acceptance Co. LLC, Series 1998-1, Class A3 6.63%, 01/15/25 (c) | 373,531 | 301,763 | ||||||
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A3 5.72%, 12/10/49 | 1,000,000 | 1,037,629 | ||||||
LB Commercial Conduit Mortgage Trust, Series 2007-C3, Class A3 6.14%, 07/15/44 (a) | 1,000,000 | 1,055,569 | ||||||
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A3 5.64%, 11/15/30 (a) | 1,000,000 | 1,048,003 | ||||||
Total Commercial Mortgage Backed Securities (cost $6,173,194) | 6,484,540 | |||||||
| Corporate Bonds 35.7% | ||||||||
Air Freight & Logistics 1.1% | ||||||||
| Federal Express Corp. 1993 Pass Through Trust, Series B2, 7.63%, 01/01/15 | 898,072 | 961,916 | ||||||
Airlines 0.9% | ||||||||
Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.90%, 01/02/17 | 855,501 | 838,391 | ||||||
Beverages 2.6% | ||||||||
| Anheuser-Busch InBev Worldwide, Inc., 7.75%, 01/15/19 (c) | 1,000,000 | 1,203,636 | ||||||
| SABMiller PLC, 6.50%, 07/15/18 (c) | 1,000,000 | 1,137,926 | ||||||
| 2,341,562 | ||||||||
Chemicals 0.9% | ||||||||
| Mosaic Global Holdings, Inc., 7.30%, 01/15/28 | 750,000 | 810,128 | ||||||
2010 Semiannual Report 71
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Commercial Banks 0.9% | ||||||||
| HSBC Holdings PLC, 6.80%, 06/01/38 | $ | 750,000 | $ | 819,014 | ||||
Computers & Peripherals 1.0% | ||||||||
| Digital Equipment Corp., 7.75%, 04/01/23 | 825,000 | 905,734 | ||||||
Diversified Financial Services 5.3% | ||||||||
| Bank of America NA, 6.10%, 06/15/17 | 1,000,000 | 1,041,222 | ||||||
| Citigroup, Inc., 8.13%, 07/15/39 | 750,000 | 893,811 | ||||||
| JPMorgan Chase & Co. | ||||||||
| 5.25%, 05/01/15 | 1,000,000 | 1,073,749 | ||||||
| 7.90%, 04/30/18 (d)(e) | 1,000,000 | 1,050,250 | ||||||
| National Rural Utilities Cooperative Finance Corp., 10.38%, 11/01/18 | 500,000 | 681,514 | ||||||
| 4,740,546 | ||||||||
Diversified Telecommunication Services 1.1% | ||||||||
| Qwest Corp., 6.88%, 09/15/33 | 1,000,000 | 960,000 | ||||||
Electric Utilities 0.9% | ||||||||
| Nisource Finance Corp., 6.13%, 03/01/22 | 750,000 | 796,318 | ||||||
Energy Equipment & Services 1.2% | ||||||||
| Weatherford International, Inc., 6.35%, 06/15/17 | 1,000,000 | 1,103,492 | ||||||
Food & Staples Retailing 1.2% | ||||||||
| CVS Pass-Through Trust, 6.94%, 01/10/30 | 953,338 | 1,032,208 | ||||||
Food Products 0.9% | ||||||||
| Kraft Foods, Inc., 5.38%, 02/10/20 | 750,000 | 777,911 | ||||||
Health Care Equipment & Supplies 1.3% | ||||||||
| Covidien International Finance SA, 6.00%, 10/15/17 | 1,000,000 | 1,108,568 | ||||||
Health Care Providers & Services 1.2% | ||||||||
| Quest Diagnostics, Inc., 5.13%, 11/01/10 | 1,000,000 | 1,017,361 | ||||||
Industrial Conglomerates 1.2% | ||||||||
| General Electric Co., 5.25%, 12/06/17 | $ | 1,000,000 | $ | 1,063,601 | ||||
Insurance 3.4% | ||||||||
| Liberty Mutual Group, Inc., 7.30%, 06/15/14 (c) | 1,000,000 | 1,094,539 | ||||||
| Oil Insurance Ltd., 7.56%, 06/30/11 (c)(d)(e) | 1,000,000 | 873,130 | ||||||
| Principal Life Income Funding Trusts, 5.30%, 12/14/12 | 1,000,000 | 1,079,920 | ||||||
| 3,047,589 | ||||||||
Machinery 1.4% | ||||||||
| Eaton Corp., 8.88%, 06/15/19 | 1,000,000 | 1,271,444 | ||||||
Media 2.5% | ||||||||
| Comcast Cable Holdings LLC, 9.80%, 02/01/12 | 1,000,000 | 1,130,908 | ||||||
| Time Warner Cable, Inc., 6.75%, 07/01/18 | 1,000,000 | 1,133,776 | ||||||
| 2,264,684 | ||||||||
Metals & Mining 1.2% | ||||||||
| Rio Tinto Finance USA Ltd., 5.88%, 07/15/13 | 1,000,000 | 1,104,938 | ||||||
Oil, Gas & Consumable Fuels 2.2% | ||||||||
| Energy Transfer Partners LP, 6.70%, 07/01/18 | 750,000 | 839,268 | ||||||
| EOG Resources, Inc., 6.13%, 10/01/13 | 1,000,000 | 1,123,215 | ||||||
| 1,962,483 | ||||||||
Paper & Forest Products 0.9% | ||||||||
| Stora Enso Oyj, 7.25%, 04/15/36 (c) | 1,000,000 | 811,074 | ||||||
Real Estate Investment Trusts (REITs) 1.1% | ||||||||
| Highwoods Realty LP, 5.85%, 03/15/17 | 1,000,000 | 980,731 | ||||||
Wireless Telecommunication Services 1.3% | ||||||||
| Cellco Partnership/Verizon Wireless Capital LLC, 7.38%, 11/15/13 | 1,000,000 | 1,162,192 | ||||||
Total Corporate Bonds (cost $29,469,078) | 31,881,885 | |||||||
| Municipal Bonds 0.8% | ||||||||
Iowa 0.7% | ||||||||
| Tobacco Settlement Authority, Series 2005 A, 6.50%, 06/01/23 | 790,000 | 674,644 | ||||||
72 Semiannual Report 2010
Municipal Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Louisiana 0.1% | ||||||||
| Tobacco Settlement Financing Corp., Series 2001, 6.36%, 05/15/25 | $ | 64,352 | $ | 64,170 | ||||
Total Municipal Bonds (cost $854,256) | 738,814 | |||||||
| U.S. Government Mortgage Backed Agencies 8.7% | ||||||||
| Fannie Mae Pool Pool# 383661 6.62%, 06/01/16 | 1,760,058 | 2,014,785 | ||||||
| Pool# 386905 5.00%, 04/01/19 | 907,876 | 959,305 | ||||||
| Pool# AA6943 4.50%, 05/01/39 | 2,804,722 | 2,831,046 | ||||||
| Freddie Mac Gold Pool Pool# E01443, 3.50%, 07/01/18 | 1,936,471 | 1,934,982 | ||||||
Total U.S. Government Mortgage Backed Agencies (cost $7,366,961) | 7,740,118 | |||||||
| Sovereign Bond 0.6% | ||||||||
ISRAEL 0.6% | ||||||||
| Israel Government AID Bond, 0.00%, 05/15/24 | 1,000,000 | 498,687 | ||||||
Total Sovereign Bond (cost $461,194) | 498,687 | |||||||
| U.S. Government Sponsored & Agency Obligation 4.5% | ||||||||
| Federal Farm Credit Bank 2.00%, 01/17/12 | 4,000,000 | 4,070,868 | ||||||
Total U.S. Government Sponsored & Agency Obligation (cost $4,026,129) | 4,070,868 | |||||||
| U.S. Treasury Bonds 6.7% | ||||||||
| U.S. Treasury Inflation Indexed Bond | ||||||||
| 2.00%, 01/15/14 | 3,000,000 | 3,768,905 | ||||||
| 2.13%, 01/15/19 | 2,000,000 | 2,181,804 | ||||||
Total U.S. Treasury Bonds (cost $5,852,763) | 5,950,709 | |||||||
| U.S. Treasury Notes 10.2% | ||||||||
| Principal Amount | Market Value | |||||||
| U.S. Treasury Note | ||||||||
| 3.25%, 05/31/16 | 4,000,000 | 4,090,936 | ||||||
| 4.88%, 08/15/16 | 4,500,000 | 5,030,154 | ||||||
Total U.S. Treasury Notes (cost $8,888,396) | 9,121,090 | |||||||
| Yankee Dollar 1.2% | ||||||||
Metals & Mining 1.2% | ||||||||
| Xstrata Canada Corp., 6.00%, 10/15/15 | 1,000,000 | 1,084,689 | ||||||
Total Yankee Dollar (cost $891,195) | 1,084,689 | |||||||
| Mutual Fund 3.7% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 3.7% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (f) | 3,306,006 | 3,306,006 | ||||||
Total Mutual Fund (cost $3,306,006) | 3,306,006 | |||||||
Total Investments (cost $85,782,904) (g) — 98.8% | 88,315,398 | |||||||
Other assets in excess of liabilities — 1.2% | 1,065,024 | |||||||
NET ASSETS — 100.0% | $ | 89,380,422 | ||||||
| (a) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. The maturity date represents the actual maturity date. | |
| (b) | Step Bond. Coupon rate is set for an initial period and then increases to a higher coupon rate at a specific date. The rate shown is the rate at April 30, 2010. | |
| (c) | Rule 144A, Section 4(2), or other security which is restricted as to sale 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, 2010 was $5,422,068 which represents 6.07% of net assets. | |
| (d) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. | |
| (e) | Perpetual bond security. The maturity date reflects the next call date. |
2010 Semiannual Report 73
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Fund (Continued)
| (f) | Represents 7-day effective yield as of April 30, 2010. | |
| (g) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| LLC | Limited Liability Company | |
| LP | Limited Partnership | |
| Ltd. | Limited | |
| NA | National Association | |
| PLC | Public Limited Company | |
| REIT | Real Estate Investment Trust | |
| REMICS | Real Estate Mortgage Investment Conduits | |
| SA | Stock Company |
74 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Bond Fund | |||||
Assets: | |||||
| Investments, at value (cost $85,782,904) | $ | 88,315,398 | |||
| Cash | 10 | ||||
| Interest receivable | 869,492 | ||||
| Receivable for capital shares issued | 371,895 | ||||
| Reclaims receivable | 8,365 | ||||
| Prepaid expenses and other assets | 43,163 | ||||
| Total Assets | 89,608,323 | ||||
Liabilities: | |||||
| Distributions payable | 38,035 | ||||
| Payable for capital shares redeemed | 56,893 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 31,342 | ||||
| Fund administration fees | 8,448 | ||||
| Distribution fees | 7,260 | ||||
| Administrative servicing fees | 22,687 | ||||
| Accounting and transfer agent fees | 19,846 | ||||
| Trustee fees | 1,238 | ||||
| Custodian fees | 2,490 | ||||
| Compliance program costs (Note 3) | 747 | ||||
| Professional fees | 8,719 | ||||
| Printing fees | 30,196 | ||||
| Total Liabilities | 227,901 | ||||
Net Assets | $ | 89,380,422 | |||
Represented by: | |||||
| Capital | $ | 86,905,636 | |||
| Accumulated net investment loss | (188,722 | ) | |||
| Accumulated net realized gains from investment transactions | 131,014 | ||||
| Net unrealized appreciation/(depreciation) from investments | 2,532,494 | ||||
Net Assets | $ | 89,380,422 | |||
Net Assets: | |||||
| Class A Shares | $ | 17,552,800 | |||
| Class B Shares | 670,176 | ||||
| Class C Shares | 3,801,505 | ||||
| Class D Shares | 67,146,075 | ||||
| Class R2 Shares | 209,866 | ||||
| Total | $ | 89,380,422 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,790,240 | ||||
| Class B Shares | 68,311 | ||||
| Class C Shares | 387,229 | ||||
| Class D Shares | 6,839,613 | ||||
| Class R2 Shares | 21,386 | ||||
| Total | 9,106,779 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 75
Statement of Assets and Liabilities
April 30, 2010 (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 | $ | 9.80 | |||
| Class B Shares (a) | $ | 9.81 | |||
| Class C Shares (b) | $ | 9.82 | |||
| Class D Shares | $ | 9.82 | |||
| Class R2 Shares | $ | 9.81 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.23 | |||
| Class D Shares | $ | 10.28 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 4.25 | % | |||
Maximum Sales Charge: | |||||
| Class D Shares | 4.50 | % | |||
| (a) | For Class B Shares, the redemption price per share varies by the length of time shares are held. | |
| (b) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
76 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Bond Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 2,195,967 | |||
| Dividend income | 3,265 | ||||
| Total Income | 2,199,232 | ||||
EXPENSES: | |||||
| Investment advisory fees | 218,989 | ||||
| Fund administration fees | 49,420 | ||||
| Distribution fees Class A | 20,728 | ||||
| Distribution fees Class B | 3,284 | ||||
| Distribution fees Class C | 18,217 | ||||
| Distribution fees Class R2 | 453 | ||||
| Administrative servicing fees Class A | 11,669 | ||||
| Administrative servicing fees Class D | 18,939 | ||||
| Administrative servicing fees Class R2 | 137 | ||||
| Registration and filing fees | 28,489 | ||||
| Professional fees | 7,659 | ||||
| Printing fees | 18,081 | ||||
| Trustee fees | 1,918 | ||||
| Custodian fees | 5,384 | ||||
| Accounting and transfer agent fees | 20,552 | ||||
| Compliance program costs (Note 3) | 439 | ||||
| Other | 2,802 | ||||
| Total expenses before earnings credit and expenses reimbursed | 427,160 | ||||
| Earnings credit (Note 5) | (357 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (24,858 | ) | |||
| Net Expenses | 401,945 | ||||
NET INVESTMENT INCOME | 1,797,287 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 692,417 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,107,315 | ||||
| Net realized/unrealized gains from investments | 1,799,732 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,597,019 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 77
Statements of Changes in Net Assets
| Nationwide Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 1,797,287 | $ | 4,391,588 | ||||||
| Net realized gains/(losses) from investment transactions | 692,417 | (564,909 | ) | |||||||
| Net change in unrealized appreciation from investments | 1,107,315 | 9,103,338 | ||||||||
| Change in net assets resulting from operations | 3,597,019 | 12,930,017 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (357,621 | ) | (746,429 | ) | ||||||
| Class B | (11,887 | ) | (27,231 | ) | ||||||
| Class C | (65,608 | ) | (123,691 | ) | ||||||
| Class D | (1,567,609 | ) | (3,484,321 | ) | ||||||
| Class R2 (a) | (3,592 | ) | (4,182 | ) | ||||||
| Class X (b) | – | (8,524 | ) | |||||||
| Class Y (b) | – | (1,142 | ) | |||||||
| Net realized gains: | ||||||||||
| Class A | – | (8,540 | ) | |||||||
| Class B | – | (290 | ) | |||||||
| Class C | – | (1,613 | ) | |||||||
| Class D | – | (40,367 | ) | |||||||
| Class R2 (a) | – | (41 | ) | |||||||
| Class X (b) | – | (484 | ) | |||||||
| Class Y (b) | – | (65 | ) | |||||||
| Change in net assets from shareholder distributions | (2,006,317 | ) | (4,446,920 | ) | ||||||
| Change in net assets from capital transactions | 840,940 | (1,175,867 | ) | |||||||
| Change in net assets | 2,431,642 | 7,307,230 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 86,948,780 | 79,641,550 | ||||||||
| End of period | $ | 89,380,422 | $ | 86,948,780 | ||||||
| Accumulated undistributed net investment income/(loss) at end of period | $ | (188,722 | ) | $ | 20,308 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 3,428,353 | $ | 3,952,810 | ||||||
| Proceeds from shares issued from class conversion | – | 800,752 | ||||||||
| Dividends reinvested | 322,996 | 621,050 | ||||||||
| Cost of shares redeemed (c) | (2,103,519 | ) | (4,198,147 | ) | ||||||
| Total Class A | 1,647,830 | 1,176,465 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 27,633 | 337,363 | ||||||||
| Dividends reinvested | 3,390 | 7,530 | ||||||||
| Cost of shares redeemed | (34,666 | ) | (158,092 | ) | ||||||
| Total Class B | (3,643 | ) | 186,801 | |||||||
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) | Effective January 30, 2009, Class X and Class Y Shares were converted to Class A Shares. |
| (c) | Includes redemption fees – see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
78 Semiannual Report 2010
| Nationwide Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 952,822 | $ | 1,645,024 | ||||||
| Dividends reinvested | 23,773 | 39,839 | ||||||||
| Cost of shares redeemed (c) | (578,729 | ) | (905,886 | ) | ||||||
| Total Class C | 397,866 | 778,977 | ||||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | 2,538,223 | 6,220,580 | ||||||||
| Dividends reinvested | 1,393,585 | 3,165,321 | ||||||||
| Cost of shares redeemed (c) | (5,185,892 | ) | (11,874,750 | ) | ||||||
| Total Class D | (1,254,084 | ) | (2,488,849 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 61,018 | 108,322 | ||||||||
| Dividends reinvested | 1,159 | 445 | ||||||||
| Cost of shares redeemed | (9,206 | ) | (32,351 | ) | ||||||
| Total Class R2 | 52,971 | 76,416 | ||||||||
Class X Shares (b) | ||||||||||
| Proceeds from shares issued | – | 6,723 | ||||||||
| Dividends reinvested | – | 8,152 | ||||||||
| Cost of shares redeemed in class conversion | – | (705,020 | ) | |||||||
| Cost of shares redeemed | – | (114,843 | ) | |||||||
| Total Class X | – | (804,988 | ) | |||||||
Class Y Shares (b) | ||||||||||
| Proceeds from shares issued | – | 4,794 | ||||||||
| Dividends reinvested | – | 789 | ||||||||
| Cost of shares redeemed in class conversion | – | (95,732 | ) | |||||||
| Cost of shares redeemed | – | (10,540 | ) | |||||||
| Total Class Y | – | (100,689 | ) | |||||||
| Change in net assets from capital transactions | $ | 840,940 | $ | (1,175,867 | ) | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 354,326 | 440,774 | ||||||||
| Issued in class conversion | – | 91,514 | ||||||||
| Reinvested | 33,260 | 68,932 | ||||||||
| Redeemed | (216,718 | ) | (462,471 | ) | ||||||
| Total Class A Shares | 170,868 | 138,749 | ||||||||
Class B Shares | ||||||||||
| Issued | 2,838 | 38,325 | ||||||||
| Reinvested | 349 | 764 | ||||||||
| Redeemed | (3,574 | ) | (17,133 | ) | ||||||
| Total Class B Shares | (387 | ) | 21,956 | |||||||
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, Class X and Class Y Shares were converted to Class A Shares. |
| (c) | Includes redemption fees – see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 79
Statements of Changes in Net Assets (Continued)
| Nationwide Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Issued | 98,341 | 182,362 | ||||||||
| Reinvested | 2,444 | 4,170 | ||||||||
| Redeemed | (59,544 | ) | (101,598 | ) | ||||||
| Total Class C Shares | 41,241 | 84,934 | ||||||||
Class D Shares | ||||||||||
| Issued | 261,539 | 720,056 | ||||||||
| Reinvested | 143,267 | 320,036 | ||||||||
| Redeemed | (534,275 | ) | (1,325,158 | ) | ||||||
| Total Class D Shares | (129,469 | ) | (285,066 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 6,280 | 11,856 | ||||||||
| Reinvested | 119 | 47 | ||||||||
| Redeemed | (950 | ) | (3,717 | ) | ||||||
| Total Class R2 Shares | 5,449 | 8,186 | ||||||||
Class X Shares (b) | ||||||||||
| Issued | – | 773 | ||||||||
| Reinvested | – | 938 | ||||||||
| Redeemed | – | (13,162 | ) | |||||||
| Redeemed in class conversion | – | (80,572 | ) | |||||||
| Total Class X Shares | – | (92,023 | ) | |||||||
Class Y Shares (b) | ||||||||||
| Issued | – | 550 | ||||||||
| Reinvested | – | 91 | ||||||||
| Redeemed | – | (1,204 | ) | |||||||
| Redeemed in class conversion | – | (10,928 | ) | |||||||
| Total Class Y Shares | – | (11,491 | ) | |||||||
| Total change in shares | 87,702 | (134,755 | ) | |||||||
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, Class X and Class Y Shares were converted to Class A Shares. |
The accompanying notes are an integral part of these financial statements.
80 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Fund
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | and Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | 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, 2010 (Unaudited) (f) | $ | 9 | .63 | 0 | .19 | 0 | .19 | 0 | .38 | (0 | .21) | – | (0 | .21) | – | $ | 9 | .80 | 3 | .96% | $ | 17,552,800 | 1 | .14% | 3 | .94% | 1 | .20% | 11 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .69 | 0 | .47 | 0 | .94 | 1 | .41 | (0 | .46) | (0 | .01) | (0 | .47) | – | $ | 9 | .63 | 16 | .72% | $ | 15,594,506 | 1 | .22% | 5 | .18% | 1 | .32% | 61 | .11% | |||||||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 34 | .08% | ||||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .63 | 0 | .16 | 0 | .19 | 0 | .35 | (0 | .17) | – | (0 | .17) | – | $ | 9 | .81 | 3 | .71% | $ | 670,176 | 1 | .75% | 3 | .33% | 1 | .81% | 11 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .69 | 0 | .41 | 0 | .95 | 1 | .36 | (0 | .41) | (0 | .01) | (0 | .42) | – | $ | 9 | .63 | 16 | .03% | $ | 661,509 | 1 | .79% | 4 | .59% | 1 | .90% | 61 | .11% | |||||||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 34 | .08% | ||||||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 81
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | and Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | 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 C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .64 | 0 | .16 | 0 | .19 | 0 | .35 | (0 | .17) | – | (0 | .17) | – | $ | 9 | .82 | 3 | .71% | $ | 3,801,505 | 1 | .75% | 3 | .33% | 1 | .81% | 11 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .70 | 0 | .42 | 0 | .94 | 1 | .36 | (0 | .41) | (0 | .01) | (0 | .42) | – | $ | 9 | .64 | 16 | .05% | $ | 3,334,007 | 1 | .77% | 4 | .61% | 1 | .91% | 61 | .11% | |||||||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 34 | .08% | ||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .64 | 0 | .21 | 0 | .20 | 0 | .41 | (0 | .23) | – | (0 | .23) | – | $ | 9 | .82 | 4 | .16% | $ | 67,146,075 | 0 | .81% | 4 | .27% | 0 | .86% | 11 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .70 | 0 | .50 | 0 | .95 | 1 | .45 | (0 | .50) | (0 | .01) | (0 | .51) | – | $ | 9 | .64 | 17 | .22% | $ | 67,205,223 | 0 | .86% | 5 | .51% | 0 | .96% | 61 | .11% | |||||||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 34 | .08% | ||||||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
82 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Bond Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | and Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | 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 (h) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .63 | 0 | .18 | 0 | .19 | 0 | .37 | (0 | .19) | – | (0 | .19) | – | $ | 9 | .81 | 3 | .80% | $ | 209,866 | 1 | .40% | 3 | .69% | 1 | .46% | 11 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .70 | 0 | .45 | 0 | .93 | 1 | .38 | (0 | .44) | (0 | .01) | (0 | .45) | – | $ | 9 | .63 | 16 | .38% | $ | 153,535 | 1 | .49% | 4 | .92% | 1 | .61% | 61 | .11% | |||||||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 34 | .08% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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) There were no fee reductions during the period. (h) Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 83
| 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, 2010, the Nationwide Enhanced Income Fund (Class A at NAV) returned 0.36% versus 0.24% for its composite benchmark, 50% BofA Merrill Lynch (BofAML) 6-Month Treasury Bill (T-Bill) Index and 50% BofAML 1-Year T-Bill Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Ultra-Short Obligations Funds (consisting of 63 funds as of April 30, 2010) was 1.47% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Credit-sensitive sectors performed well during the reporting period, led by commercial mortgage-backed securities (CMBS), asset-backed securities (ABS) and corporate bonds. The Fund’s holdings in these sectors as well as U.S. Agency mortgage-backed securities (MBS) were the top performers for the Fund during the reporting period.
What areas of investment detracted from Fund performance?
The Fund’s holdings in U.S. Treasury securities provided the lowest overall relative returns as investor demand for higher yield drove outperformance of spread sectors relative to Treasuries. None of the securities held by the Fund defaulted during the reporting period.
What is your outlook for the near term?
U.S. economic data continues to be mixed with good signs of improvement in manufacturing, consumer spending, exports and corporate earnings. Continued challenges can be seen in the labor market, residential and commercial real estate, and small business creation. Prospects for a double-dip recession have faded considerably as greater stabilization in economic activity has appeared. The Federal Reserve Board’s exit strategy and timing of removing excess liquidity in the banking system, as well as the Fed’s accommodative policy, still remain unclear.
Our best-case forecast calls for the economy to experience 1% to 3% growth during the next 12 months. The rate of inflation remains subdued, and is not yet likely to force the Fed to raise interest rates at this juncture. We expect a modest increase in interest rates, particularly in the front end, and yield curve flattening this year (the yield curve is a plotted graph line of the yields [or interest rates] on long-term and short-term maturity bonds). Investors’ ability to consume an estimated $2.4 trillion of Treasury issuance in 2010 may influence the overall yield curve and push rates higher.
The recent significant rebounds in stock and bond markets have lessened the negative wealth effect experienced during the past few years. The consumer continues to surprise even in the face of significant headwinds. Yet peripheral stresses such as recent sovereign debt concerns with Greece and the potential for tighter Chinese monetary policy also continue to challenge the credit markets.
Financial regulatory reform legislation is working its way through the U.S. Congress. Much focus and debate can be expected, since the ramifications of reform can have an extensive impact on the economy and the financial sector in terms of challenges to liquidity and profitability. Efforts to avoid “too big to fail” situations through company breakups may impede economic growth. Regulations on non-bank financial institutions and the adoption of strict rules on capital leverage, liquidity and risk management also may slow the rate of growth. No one knows what the end result will be, but it is no surprise that reform in the financial markets is needed.
Subadviser:
Morley Capital Management, Inc.
Morley Capital Management, Inc.
Portfolio Managers:
Perpetua M. Phillips and Paul Rocheleau
Perpetua M. Phillips and Paul Rocheleau
84 Semiannual Report 2010
| Fund Performance | Nationwide Enhanced Income Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 0.36% | 1.41% | 3.22% | 2.64% | |||||||||||||
| w/SC2 | -1.89% | -0.86% | 2.76% | 2.40% | ||||||||||||||
Class R23,4,5 | 0.39% | 1.43% | 3.10% | 2.55% | ||||||||||||||
Institutional Service Class3 | 0.54% | 1.58% | 3.40% | 2.78% | ||||||||||||||
Institutional Class3 | 0.69% | 1.85% | 3.56% | 2.99% | ||||||||||||||
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 2.25% front-end sales charge was deducted. | |
| 3 | Not subject to any sales charges. | |
| 4 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| 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. |
Expense Ratios
| Gross | Net | |||||||||
| Expense | Expense | |||||||||
| Ratio* | Ratio* | |||||||||
| Class A | 0.88% | 0.81% | ||||||||
| Class R2 | 1.22% | 1.15% | ||||||||
| Institutional Service Class | 0.72% | 0.65% | ||||||||
| Institutional Class | 0.52% | 0.45% | ||||||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 85
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Enhanced | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Income Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,003.60 | 4.02 | 0.81 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.78 | 4.06 | 0.81 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,003.90 | 4.72 | 0.95 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.08 | 4.76 | 0.95 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,005.40 | 3.48 | 0.70 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.32 | 3.51 | 0.70 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,006.90 | 2.24 | 0.45 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.56 | 2.26 | 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 Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
86 Semiannual Report 2010
| Portfolio Summary | Nationwide Enhanced Income Fund |
April 30, 2010
| Asset Allocation | ||||
| Corporate Bonds | 30 | .0% | ||
| Collateralized Mortgage Obligations | 25 | .8% | ||
| Asset-Backed Securities | 25 | .0% | ||
| Mutual Fund | 7 | .1% | ||
| U.S. Government Sponsored & Agency Obligations | 4 | .1% | ||
| Sovereign Bonds | 3 | .7% | ||
| Commercial Mortgage Backed Securities | 2 | .7% | ||
| U.S. Treasury Note | 1 | .7% | ||
| U.S. Government Mortgage Backed Agencies | 1 | .0% | ||
| Yankee Dollar | 0 | .3% | ||
| Liabilities in excess of other assets | (1 | .4)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Diversified Financial Services | 9 | .0% | ||
| Commercial Banks | 4 | .2% | ||
| Capital Markets | 4 | .1% | ||
| Aerospace & Defense | 2 | .7% | ||
| Supranational | 1 | .9% | ||
| Diversified Telecommunication Services | 1 | .7% | ||
| Pharmaceuticals | 1 | .6% | ||
| Insurance | 1 | .4% | ||
| Consumer Finance | 1 | .0% | ||
| Communications Equipment | 0 | .9% | ||
| Other Industries | 71 | .5% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Invesco AIM Liquid Assets Portfolio | 7 | .0% | ||
| Fannie Mae REMICS, 4.00%, 09/25/24 | 2 | .4% | ||
| U.S. Treasury Note, 1.00%, 09/30/11 | 1 | .6% | ||
| CenterPoint Energy Transition Bond Co. LLC, 4.97%, 08/01/14 | 1 | .2% | ||
| Freddie Mac REMICS, 4.00%, 01/15/17 | 1 | .2% | ||
| PG&E Energy Recovery Funding LLC, 5.03%, 03/25/14 | 1 | .2% | ||
| Honeywell International, Inc., 6.13%, 11/01/11 | 1 | .1% | ||
| Western Union Co. (The), 5.40%, 11/17/11 | 1 | .1% | ||
| General Electric Capital Corp., 5.00%, 11/15/11 | 1 | .1% | ||
| Freddie Mac REMICS, 3.14%, 11/15/17 | 1 | .1% | ||
| Other Holdings | 81 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 87
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Enhanced Income Fund
Asset-Backed Securities 25.0% | ||||||||
| Principal Amount | Market Value | |||||||
Automobile Asset-Backed Securities 11.7% | ||||||||
Ally Auto Receivables Trust, Series 2010-1, Class A2, 0.75%, 04/15/12 | $ | 1,600,000 | $ | 1,598,356 | ||||
Bank of America Auto Trust Series 2009-3A, Class A2, 0.89%, 04/15/12 (a) | 2,000,000 | 2,002,596 | ||||||
Series 2010-1A, Class A2, 0.75%, 06/15/12 (a) | 2,000,000 | 2,000,169 | ||||||
BMW Vehicle Owner Trust, Series 2010-A, Class A2, 0.68%, 09/25/12 | 2,000,000 | 1,998,147 | ||||||
Capital Auto Receivables Asset Trust Series 2006-2, Class A3A, 4.98%, 05/15/11 | 131,698 | 132,339 | ||||||
Series 2007-1, Class A4A, 5.01%, 04/16/12 | 2,500,000 | 2,565,470 | ||||||
Honda Auto Receivables Owner Trust Series 2009-2, Class A2, 2.22%, 08/15/11 | 1,438,183 | 1,444,002 | ||||||
Series 2010-1, Class A2, 0.62%, 02/21/12 | 2,500,000 | 2,499,159 | ||||||
Nissan Auto Receivables Owner Trust, Series 2008-A, Class A3, 3.89%, 08/15/11 | 644,662 | 649,143 | ||||||
Toyota Auto Receivables Owner Trust Series 2010-A, Class A2, 0.75%, 05/15/12 | 2,500,000 | 2,499,980 | ||||||
Series 2010-A, Class A3, 1.27%, 12/16/13 | 750,000 | 749,951 | ||||||
USAA Auto Owner Trust, Series 2009-2, Class A3, 1.54%, 02/18/14 | 2,000,000 | 2,012,822 | ||||||
Volkswagen Auto Loan Enhanced Trust Series 2008-1, Class A3, 4.50%, 07/20/12 | 1,710,105 | 1,741,621 | ||||||
Series 2010-1, Class A2, 0.66%, 05/21/12 | 2,000,000 | 1,999,158 | ||||||
World Omni Auto Receivables Trust Series 2008-B, Class A2, 4.13%, 03/15/11 | 211,943 | 212,501 | ||||||
Series 2009-A, Class A3, 3.33%, 05/15/13 | 2,000,000 | 2,048,058 | ||||||
Series 2010-A, Class A2, 0.70%, 06/15/12 | 2,000,000 | 1,999,143 | ||||||
| 28,152,615 | ||||||||
Credit Card Asset-Backed Securities 6.6% | ||||||||
American Express Credit Account Master Trust Series 2006-2, Class A, 5.35%, 01/15/14 | 1,000,000 | 1,050,354 | ||||||
Series 2007-5, Class A, 0.28%, 12/15/14 (b) | 2,000,000 | 1,990,712 | ||||||
BA Credit Card Trust, Series 2006-A16, Class A16, 4.72%, 05/15/13 | 1,410,000 | 1,446,041 | ||||||
Capital One Multi-Asset Execution Trust, Series 2006-A2, Class A, 4.85%, 11/15/13 | 2,000,000 | 2,058,516 | ||||||
Chase Issuance Trust Series 2005-A10, Class A10, 4.65%, 12/17/12 | 1,230,000 | 1,253,171 | ||||||
Series 2006-A1, Class A, 0.29%, 04/15/13 (b) | 1,997,000 | 1,995,153 | ||||||
Citibank Credit Card Issuance Trust Series 2005-A7, Class A7, 4.75%, 10/22/12 | 2,000,000 | 2,039,472 | ||||||
Series 2007-A5, Class A5, 5.50%, 06/22/12 | 1,055,000 | 1,062,704 | ||||||
MBNA Credit Card Master Note Trust Series 2004-A2, Class A2, 0.40%, 07/15/13 (b) | 1,696,000 | 1,695,710 | ||||||
Series 2005-A3, Class A3, 4.10%, 10/15/12 | 1,440,000 | 1,442,209 | ||||||
| 16,034,042 | ||||||||
Other Asset-Backed Securities 6.7% | ||||||||
CenterPoint Energy Transition Bond Co. LLC, Series 2005-A, Class A2, 4.97%, 08/01/14 | 2,898,165 | 3,036,842 | ||||||
FPL Recovery Funding LLC, Series 2007-A, Class A1, 5.05%, 02/01/13 | 455,868 | 462,478 | ||||||
John Deere Owner Trust Series 2008-A, Class A4, 4.89%, 03/16/15 | 2,500,000 | 2,614,020 | ||||||
Series 2009-B, Class A3, 1.57%, 10/15/13 | 800,000 | 804,838 | ||||||
Series 2010-A, Class A2, 0.72%, 07/15/12 | 2,500,000 | 2,500,000 | ||||||
Massachusetts RRB Special Purpose Trust, Series 2005-1, Class A3, 4.13%, 09/15/13 | 1,420,696 | 1,459,724 | ||||||
Peco Energy Transition Trust, Series 2001-A, Class A1, 6.52%, 12/31/10 | 1,153,008 | 1,176,322 | ||||||
PG&E Energy Recovery Funding LLC, Series 2005-2, Class A2, 5.03%, 03/25/14 | 2,766,492 | 2,883,669 | ||||||
PSE&G Transition Funding LLC, Series 2001-1, Class A5, 6.45%, 03/15/13 | 1,148,427 | 1,182,929 | ||||||
| 16,120,822 | ||||||||
Total Asset-Backed Securities (cost $60,201,917) | 60,307,479 | |||||||
88 Semiannual Report 2010
| Collateralized Mortgage Obligations 25.8% | ||||||||
| Principal Amount | Market Value | |||||||
Fannie Mae REMICS Series 2003-92, Class PC, 4.50%, 05/25/15 | $ | 191,164 | $ | 191,529 | ||||
Series 2005-91, Class PB, 4.50%, 06/25/16 | 393,948 | 396,743 | ||||||
Series 2002-82, Class XD, 5.00%, 07/25/16 | 804,337 | 822,393 | ||||||
Series 2003-15, Class WC, 4.00%, 12/25/16 | 876,209 | 892,066 | ||||||
Series 2004-61, Class AB, 5.00%, 03/25/17 | 451,588 | 455,968 | ||||||
Series 2004-6, Class CA, 4.00%, 06/25/17 | 1,383,126 | 1,432,940 | ||||||
Series 2003-67, Class TA, 3.00%, 08/25/17 | 1,412,553 | 1,444,963 | ||||||
Series 2004-29, Class L, 4.00%, 09/25/17 | 954,605 | 987,954 | ||||||
Series 2004-32, Class AB, 4.00%, 10/25/17 | 869,132 | 901,045 | ||||||
Series 2003-49, Class TK, 3.50%, 03/25/18 | 1,655,414 | 1,708,546 | ||||||
Series 2003-57, Class NB, 3.00%, 06/25/18 | 199,362 | 203,431 | ||||||
Series 2003-75, Class NB, 3.25%, 08/25/18 | 127,004 | 128,887 | ||||||
Series 2008-15, Class JM, 4.00%, 02/25/19 | 831,165 | 863,682 | ||||||
Series 2008-18, Class MD, 4.00%, 03/25/19 | 1,766,902 | 1,840,338 | ||||||
Series 2009-88, Class EA, 4.50%, 05/25/23 | 2,128,619 | 2,231,480 | ||||||
Series 2009-44, Class A, 4.50%, 12/25/23 | 1,454,885 | 1,528,037 | ||||||
Series 2004-96, Class EW, 4.50%, 06/25/24 | 728,611 | 736,284 | ||||||
Series 2009-76, Class MA, 4.00%, 09/25/24 | 5,689,311 | 5,935,025 | ||||||
Series 2003-14, Class AN, 3.50%, 03/25/33 | 191,699 | 192,816 | ||||||
| Freddie Mac REMICS Series 3483, Class FB, 0.39%, 08/15/11 (b) | 593,461 | 593,177 | ||||||
| Series 3584, Class BL, 1.25%, 10/15/12 | 3,055,892 | 3,089,985 | ||||||
| Series 3574, Class AC, 1.85%, 08/15/14 | 3,552,847 | 3,580,685 | ||||||
| Series 3555, Class JA, 4.00%, 12/15/14 | 1,556,055 | 1,616,297 | ||||||
| Series 2668, Class AD, 4.00%, 01/15/15 | 362,291 | 364,595 | ||||||
| Series 2689, Class PC, 4.00%, 09/15/15 | 853,569 | 863,059 | ||||||
| Series 2614, Class TD, 3.50%, 05/15/16 | 1,320,165 | 1,348,091 | ||||||
| Series 2517, Class OD, 5.00%, 05/15/16 | 375,982 | 378,839 | ||||||
| Series 2628, Class PX, 4.00%, 10/15/16 | 409,807 | 413,093 | ||||||
| Series 2628, Class PV, 3.75%, 10/15/16 | 273,205 | 275,278 | ||||||
| Series 2672, Class NF, 4.00%, 12/15/16 | 1,618,327 | 1,674,681 | ||||||
| Series 2630, Class KS, 4.00%, 01/15/17 | 2,907,074 | 3,008,080 | ||||||
| Series 2611, Class KC, 3.50%, 01/15/17 | 155,698 | 158,404 | ||||||
| Series 2625, Class JD, 3.25%, 07/15/17 | 687,592 | 705,782 | ||||||
| Series 2640, Class GD, 4.50%, 08/15/17 | 2,000,000 | 2,092,526 | ||||||
| Series 2783, Class AB, 4.00%, 10/15/17 | 934,223 | 969,275 | ||||||
| Series 2628, Class GQ, 3.14%, 11/15/17 | 2,560,121 | 2,626,161 | ||||||
| Series 2628, Class DQ, 3.00%, 11/15/17 | 2,048,097 | 2,095,763 | ||||||
| Series 2664, Class GA, 4.50%, 01/15/18 | 203,425 | 209,462 | ||||||
| Series 2555, Class B, 4.25%, 01/15/18 | 1,281,573 | 1,347,045 | ||||||
| Series 2629, Class AN, 3.50%, 01/15/18 | 2,135,481 | 2,205,122 | ||||||
| Series 2629, Class AM, 4.00%, 01/15/18 | 1,098,247 | 1,143,657 | ||||||
| Series 2643, Class NT, 4.50%, 03/15/18 | 2,221,570 | 2,339,560 | ||||||
| Series 2613, Class PA, 3.25%, 05/15/18 | 1,172,992 | 1,205,465 | ||||||
| Series 2630, Class JA, 3.00%, 06/15/18 | 116,113 | 117,216 | ||||||
| Series 2877, Class GP, 4.00%, 11/15/18 | 1,174,103 | 1,218,696 | ||||||
| Series 3110, Class AG, 5.00%, 03/15/19 | 1,127,302 | 1,173,697 | ||||||
Government National Mortgage Association Series 2003-49, Class A, 2.21%, 10/16/17 | 1,675,707 | 1,681,067 | ||||||
Series 2004-103, Class A, 3.88%, 12/16/19 | 737,390 | 741,183 | ||||||
Residential Funding Mortgage Securities I, Series 2003-S11, Class A1, 2.50%, 06/25/18 | 34,681 | 34,579 | ||||||
Total Collateralized Mortgage Obligations (cost $61,817,348) | 62,164,647 | |||||||
2010 Semiannual Report 89
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Enhanced Income Fund (Continued)
| Commercial Mortgage Backed Securities 2.7% | ||||||||
| Principal Amount | Market Value | |||||||
Banc of America Commercial Mortgage, Inc., Series 2005-1, Class A3 4.88%, 11/10/42 | $ | 1,066,877 | $ | 1,066,263 | ||||
Commercial Mortgage Asset Trust, Series 1999-C1, Class A3 6.64%, 01/17/32 | 311,174 | 311,414 | ||||||
GE Capital Commercial Mortgage Corp., Series 2004-C1, Class A2 3.92%, 11/10/38 | 1,129,754 | 1,138,986 | ||||||
GMAC Commercial Mortgage Securities, Inc., Series 2004-C3, Class A3 4.21%, 12/10/41 | 436,366 | 436,754 | ||||||
Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A4 4.76%, 06/10/36 | 557,739 | 565,631 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB16, Class A1 5.34%, 05/12/45 | 747,165 | 759,219 | ||||||
Morgan Stanley Capital I, Series 2004-IQ8, Class A3 4.50%, 06/15/40 | 603,835 | 608,381 | ||||||
Wachovia Bank Commercial Mortgage Trust Series 2005-C16, Class A2, 4.38%, 10/15/41 | 677,574 | 689,917 | ||||||
Series 2005-C17, Class A2, 4.78%, 03/15/42 | 978,251 | 977,823 | ||||||
Total Commercial Mortgage Backed Securities (cost $6,468,621) | 6,554,388 | |||||||
| Corporate Bonds 30.0% | ||||||||
Aerospace & Defense 2.8% | ||||||||
| General Dynamics Corp., 1.80%, 07/15/11 | 2,500,000 | 2,519,955 | ||||||
| Honeywell International, Inc., 6.13%, 11/01/11 | 2,500,000 | 2,695,355 | ||||||
| United Technologies Corp., 4.38%, 05/01/10 | 1,500,000 | 1,500,000 | ||||||
| 6,715,310 | ||||||||
Biotechnology 0.8% | ||||||||
| Genentech, Inc., 4.40%, 07/15/10 | 2,000,000 | 2,015,780 | ||||||
Capital Markets 4.2% | ||||||||
| Bank of New York Mellon Corp. (The), 4.95%, 01/14/11 | 2,000,000 | 2,060,428 | ||||||
| Citigroup Funding, Inc., 0.44%, 07/30/10 (b) | 2,000,000 | 2,000,816 | ||||||
| Goldman Sachs Group, Inc. (The), 1.63%, 07/15/11 | $ | 2,000,000 | $ | 2,019,214 | ||||
| Morgan Stanley, 2.90%, 12/01/10 | 2,000,000 | 2,028,372 | ||||||
| State Street Bank and Trust Co., 1.85%, 03/15/11 | 2,000,000 | 2,023,540 | ||||||
| 10,132,370 | ||||||||
Commercial Banks 3.5% | ||||||||
| BNP Paribas, 0.69%, 04/08/13 (b) | 2,500,000 | 2,499,763 | ||||||
| Rabobank Nederland NV, 0.65%, 05/19/10 (a)(b) | 1,500,000 | 1,500,250 | ||||||
| Wells Fargo & Co., 3.00%, 12/09/11 | 2,000,000 | 2,067,716 | ||||||
| Westpac Banking Corp., 0.84%, 04/08/13 (a)(b) | 2,500,000 | 2,501,222 | ||||||
| 8,568,951 | ||||||||
Communications Equipment 0.9% | ||||||||
| Cisco Systems, Inc., 5.25%, 02/22/11 | 2,000,000 | 2,073,782 | ||||||
Computers & Peripherals 0.7% | ||||||||
| Hewlett-Packard Co. | ||||||||
| 1.30%, 05/27/11 (b) | 300,000 | 303,340 | ||||||
| 2.25%, 05/27/11 | 1,500,000 | 1,519,438 | ||||||
| 1,822,778 | ||||||||
Consumer Finance 1.0% | ||||||||
| American Express Credit Corp., 0.46%, 12/02/10 (b) | 1,426,000 | 1,426,819 | ||||||
| John Deere Capital Corp., 7.00%, 03/15/12 | 900,000 | 996,736 | ||||||
| 2,423,555 | ||||||||
Diversified Financial Services 8.7% | ||||||||
| Bank of America Corp., 5.38%, 08/15/11 | 2,000,000 | 2,099,746 | ||||||
| Bank of America NA, 1.70%, 12/23/10 | 2,000,000 | 2,016,134 | ||||||
| General Electric Capital Corp. 1.80%, 03/11/11 | 2,000,000 | 2,021,544 | ||||||
| 5.00%, 11/15/11 | 2,500,000 | 2,640,283 | ||||||
| HSBC Finance Corp., 6.38%, 10/15/11 | 1,875,000 | 1,988,381 | ||||||
| John Hancock Global Funding II, 7.90%, 07/02/10 (a) | 1,500,000 | 1,515,627 | ||||||
| JPMorgan Chase & Co. 2.63%, 12/01/10 | 2,000,000 | 2,025,232 | ||||||
| 5.60%, 06/01/11 | 2,020,000 | 2,110,191 | ||||||
| National Rural Utilities Cooperative Finance Corp., 4.38%, 10/01/10 | 2,000,000 | 2,031,318 | ||||||
| Western Union Co. (The), 5.40%, 11/17/11 | 2,500,000 | 2,651,720 | ||||||
| 21,100,176 | ||||||||
90 Semiannual Report 2010
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Diversified Telecommunication Services 1.7% | ||||||||
| AT&T Corp., 7.30%, 11/15/11 | $ | 1,793,000 | $ | 1,955,864 | ||||
| Verizon Global Funding Corp., 7.25%, 12/01/10 | 2,000,000 | 2,076,358 | ||||||
| 4,032,222 | ||||||||
Food Products 0.9% | ||||||||
| Unilever Capital Corp., 7.13%, 11/01/10 | 2,000,000 | 2,066,078 | ||||||
Insurance 1.5% | ||||||||
| Berkshire Hathaway, Inc., 1.40%, 02/10/12 | 2,500,000 | 2,518,370 | ||||||
| New York Life Global Funding, 4.63%, 08/16/10 (a) | 1,000,000 | 1,008,993 | ||||||
| 3,527,363 | ||||||||
Multiline Retail 0.7% | ||||||||
| Costco Wholesale Corp., 5.30%, 03/15/12 | 1,600,000 | 1,717,731 | ||||||
Oil, Gas & Consumable Fuels 0.6% | ||||||||
| Burlington Resources, Inc., 9.88%, 06/15/10 | 1,500,000 | 1,515,881 | ||||||
Pharmaceuticals 1.6% | ||||||||
| Abbott Laboratories, 5.60%, 05/15/11 | 1,735,000 | 1,821,139 | ||||||
| Pfizer, Inc., 2.21%, 03/15/11 (b) | 2,000,000 | 2,034,800 | ||||||
| 3,855,939 | ||||||||
Specialty Retail 0.4% | ||||||||
| Lowe’s Cos., Inc., 8.25%, 06/01/10 | 885,000 | 888,932 | ||||||
Total Corporate Bonds (cost $72,171,325) | 72,456,848 | |||||||
| U.S. Government Mortgage Backed Agencies 1.0% | ||||||||
| Fannie Mae Pool | ||||||||
| Pool# 253845 6.00%, 06/01/16 | 50,963 | 55,006 | ||||||
| Pool# 254089 | ||||||||
| 6.00%, 12/01/16 | 80,400 | 86,777 | ||||||
| Pool# 545415 | ||||||||
| 6.00%, 01/01/17 | 72,396 | 78,138 | ||||||
| Pool# 254195 | ||||||||
| 5.50%, 02/01/17 | 168,098 | 180,643 | ||||||
| Pool# 625178 | ||||||||
| 5.50%, 02/01/17 | 137,448 | 147,705 | ||||||
| Freddie Mac Gold Pool Pool# E00678 | ||||||||
| 6.50%, 06/01/14 | 27,846 | 29,628 | ||||||
| Pool# B17493 | ||||||||
| 4.00%, 12/01/14 | 1,731,123 | 1,781,598 | ||||||
| Pool# E00991 | ||||||||
| 6.00%, 07/01/16 | 39,939 | 43,032 | ||||||
Total U.S. Government Mortgage Backed Agencies (cost $2,366,094) | 2,402,527 | |||||||
| Sovereign Bonds 3.7% | ||||||||
CANADA 1.0% | ||||||||
| Province of Ontario Canada, 2.75%, 02/22/11 | 2,500,000 | 2,543,560 | ||||||
GERMANY 0.7% | ||||||||
| Kreditanstalt fuer Wiederaufbau, 5.00%, 06/01/10 | 1,695,000 | 1,700,763 | ||||||
SUPRANATIONAL 2.0% | ||||||||
| African Development Bank, 0.53%, 03/23/11 (b) | 1,700,000 | 1,697,624 | ||||||
| Asian Development Bank, 4.13%, 09/15/10 | 1,000,000 | 1,013,946 | ||||||
| International Bank for Reconstruction & Development, 0.43%, 03/04/11 (b) | 2,000,000 | 2,004,524 | ||||||
| 4,716,094 | ||||||||
Total Sovereign Bonds (cost $8,952,578) | 8,960,417 | |||||||
| U.S. Government Sponsored & Agency Obligations 4.1% | ||||||||
| Federal Farm Credit Bank 4.75%, 05/07/10 | 2,000,000 | 2,000,998 | ||||||
| Federal Home Loan Bank 2.75%, 06/18/10 | 2,000,000 | 2,006,318 | ||||||
| Federal National Mortgage Association 4.13%, 05/15/10 | 2,000,000 | 2,002,586 | ||||||
| 4.38%, 06/21/10 | 2,000,000 | 2,010,796 | ||||||
| 1.75%, 03/23/11 | 2,000,000 | 2,020,712 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $10,021,495) | 10,041,410 | |||||||
| U.S. Treasury Note 1.7% | ||||||||
| Principal Amount | Market Value | |||||||
| U.S. Treasury Note, 1.00%, 09/30/11 | 4,000,000 | 4,018,436 | ||||||
Total U.S. Treasury Note (cost $4,005,780) | 4,018,436 | |||||||
2010 Semiannual Report 91
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Enhanced Income Fund (Continued)
| U.S. Treasury Note (continued) | ||||||||
| Yankee Dollar 0.3% | ||||||||
Health Care Equipment & Supplies 0.3% | ||||||||
| Baxter FinCo BV, 4.75%, 10/15/10 | $ | 675,000 | $ | 688,379 | ||||
Total Yankee Dollar (cost $685,807) | 688,379 | |||||||
| Mutual Fund 7.1% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 7.1% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (c) | 17,044,303 | 17,044,303 | ||||||
Total Mutual Fund (cost $17,044,303) | 17,044,303 | |||||||
Total Investments (cost $243,735,268) (d) — 101.4% | 244,638,834 | |||||||
Liabilities in excess of other assets — (1.4)% | (3,329,468 | ) | ||||||
NET ASSETS — 100.0% | $ | 241,309,366 | ||||||
| (a) | Rule 144A, Section 4(2), or other security which is restricted as to sale 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, 2010 was $10,528,857 which represents 4.36% of net assets. | |
| (b) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. The maturity date represents the actual maturity date. | |
| (c) | Represents 7-day effective yield as of April 30, 2010. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| BV | Private Limited Liability Company | |
| LLC | Limited Liability Company | |
| NA | National Association | |
| NV | Public Traded Company | |
| REMICS | Real Estate Mortgage Investment Conduits |
The accompanying notes are an integral part of these financial statements.
92 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Enhanced | |||||
| Income Fund | |||||
Assets: | |||||
| Investments, at value (cost $243,735,268) | $ | 244,638,834 | |||
| Cash | 1,763 | ||||
| Interest receivable | 1,487,482 | ||||
| Receivable for capital shares issued | 8,429 | ||||
| Prepaid expenses and other assets | 37,917 | ||||
| Total Assets | 246,174,425 | ||||
Liabilities: | |||||
| Payable for investments purchased | 4,698,877 | ||||
| Distributions payable | 3,521 | ||||
| Payable for capital shares redeemed | 55,329 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 52,763 | ||||
| Fund administration fees | 22,863 | ||||
| Distribution fees | 1,115 | ||||
| Administrative servicing fees | 2,878 | ||||
| Accounting and transfer agent fees | 9,811 | ||||
| Trustee fees | 1,670 | ||||
| Custodian fees | 849 | ||||
| Compliance program costs (Note 3) | 1,695 | ||||
| Professional fees | 12,433 | ||||
| Printing fees | 740 | ||||
| Other | 515 | ||||
| Total Liabilities | 4,865,059 | ||||
Net Assets | $ | 241,309,366 | |||
Represented by: | |||||
| Capital | $ | 248,149,719 | |||
| Accumulated net investment loss | (712,321 | ) | |||
| Accumulated net realized losses from investment transactions | (7,031,598 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 903,566 | ||||
Net Assets | $ | 241,309,366 | |||
Net Assets: | |||||
| Class A Shares | $ | 5,474,256 | |||
| Class R2 Shares | 63,128 | ||||
| Institutional Service Class Shares | 13,320 | ||||
| Institutional Class Shares | 235,758,662 | ||||
| Total | $ | 241,309,366 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 601,567 | ||||
| Class R2 Shares | 6,931 | ||||
| Institutional Service Class Shares | 1,462 | ||||
| Institutional Class Shares | 25,918,362 | ||||
| Total | 26,528,322 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 93
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 | $ | 9.10 | |||
| Class R2 Shares | $ | 9.11 | |||
| Institutional Service Class Shares | $ | 9.11 | |||
| Institutional Class Shares | $ | 9.10 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.31 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 2.25 | % | |||
The accompanying notes are an integral part of these financial statements.
94 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Enhanced | |||||
| Income Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 2,342,908 | |||
| Dividend income | 9,858 | ||||
| Total Income | 2,352,766 | ||||
EXPENSES: | |||||
| Investment advisory fees | 395,980 | ||||
| Fund administration fees | 129,167 | ||||
| Distribution fees Class A | 5,427 | ||||
| Distribution fees Class R2 | 149 | ||||
| Administrative servicing fees Class A | 2,489 | ||||
| Administrative servicing fees Institutional Service Class | 16 | ||||
| Registration and filing fees | 21,012 | ||||
| Professional fees | 15,016 | ||||
| Printing fees | 6,530 | ||||
| Trustee fees | 5,539 | ||||
| Custodian fees | 3,912 | ||||
| Accounting and transfer agent fees | 8,883 | ||||
| Compliance program costs (Note 3) | 1,105 | ||||
| Other | 6,630 | ||||
| Total expenses before earnings credit and expenses reimbursed | 601,855 | ||||
| Earnings credit (Note 5) | (40 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (84,249 | ) | |||
| Net Expenses | 517,566 | ||||
NET INVESTMENT INCOME | 1,835,200 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (7,535 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | (461,108 | ) | |||
| Net realized/unrealized losses from investments | (468,643 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,366,557 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 95
Statements of Changes in Net Assets
| Nationwide Enhanced Income Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 1,835,200 | $ | 4,688,409 | ||||||
| Net realized losses from investment transactions | (7,535 | ) | (1,100,516 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments | (461,108 | ) | 3,276,816 | |||||||
| Change in net assets resulting from operations | 1,366,557 | 6,864,709 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (46,655 | ) | (70,372 | ) | ||||||
| Class R2 (a) | (618 | ) | (459 | ) | ||||||
| Institutional Service Class | (159 | ) | (318 | ) | ||||||
| Institutional Class | (2,939,281 | ) | (4,741,069 | ) | ||||||
| Change in net assets from shareholder distributions | (2,986,713 | ) | (4,812,218 | ) | ||||||
| Change in net assets from capital transactions | 31,626,735 | 37,831,350 | ||||||||
| Change in net assets | 30,006,579 | 39,883,841 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 211,302,787 | 171,418,946 | ||||||||
| End of period | $ | 241,309,366 | $ | 211,302,787 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (712,321 | ) | $ | 439,192 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 3,811,262 | $ | 3,772,688 | ||||||
| Dividends reinvested | 30,587 | 46,723 | ||||||||
| Cost of shares redeemed | (1,932,416 | ) | (2,415,328 | ) | ||||||
| Total Class A | 1,909,433 | 1,404,083 | ||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 14,900 | 57,557 | ||||||||
| Dividends reinvested | 91 | 61 | ||||||||
| Cost of shares redeemed | (8,870 | ) | (1,314 | ) | ||||||
| Total Class R2 | 6,121 | 56,304 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | – | – | ||||||||
| Dividends reinvested | 159 | 318 | ||||||||
| Cost of shares redeemed | – | – | ||||||||
| Total Institutional Service Class | 159 | 318 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 39,007,153 | 61,364,717 | ||||||||
| Dividends reinvested | 2,939,268 | 4,372,526 | ||||||||
| Cost of shares redeemed | (12,235,399 | ) | (29,366,598 | ) | ||||||
| Total Institutional Class | 29,711,022 | 36,370,645 | ||||||||
| Change in net assets from capital transactions | $ | 31,626,735 | $ | 37,831,350 | ||||||
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.
96 Semiannual Report 2010
| Nationwide Enhanced Income Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 417,773 | 413,252 | ||||||||
| Reinvested | 3,353 | 5,111 | ||||||||
| Redeemed | (211,872 | ) | (264,234 | ) | ||||||
| Total Class A Shares | 209,254 | 154,129 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 1,633 | 6,271 | ||||||||
| Reinvested | 10 | 6 | ||||||||
| Redeemed | (971 | ) | (143 | ) | ||||||
| Total Class R2 Shares | 672 | 6,134 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | – | 2 | ||||||||
| Reinvested | 17 | 33 | ||||||||
| Redeemed | – | – | ||||||||
| Total Institutional Service Class Shares | 17 | 35 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 4,279,767 | 6,711,439 | ||||||||
| Reinvested | 322,321 | 478,632 | ||||||||
| Redeemed | (1,342,172 | ) | (3,215,618 | ) | ||||||
| Total Institutional Class Shares | 3,259,916 | 3,974,453 | ||||||||
| Total change in shares | 3,469,859 | 4,134,751 | ||||||||
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.
2010 Semiannual Report 97
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Enhanced Income Fund
| Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | 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, 2010 (Unaudited) (f) | $ | 9 | .17 | 0 | .05 | (0 | .02) | 0 | .03 | (0 | .10) | (0 | .10) | $ | 9 | .10 | 0 | .36% | $ | 5,474,256 | 0 | .81% | 1 | .16% | 0 | .88% | 30 | .74% | ||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .06 | 0 | .23 | 0 | .09 | 0 | .32 | (0 | .21) | (0 | .21) | $ | 9 | .17 | 3 | .53% | $ | 3,595,763 | 0 | .87% | 2 | .46% | 0 | .96% | 64 | .69% | ||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .17 | 0 | .05 | (0 | .01) | 0 | .04 | (0 | .10) | (0 | .10) | $ | 9 | .11 | 0 | .39% | $ | 63,128 | 0 | .95% | 1 | .13% | 1 | .02% | 30 | .74% | ||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .07 | 0 | .14 | 0 | .15 | 0 | .29 | (0 | .19) | (0 | .19) | $ | 9 | .17 | 3 | .28% | $ | 57,411 | 0 | .96% | 1 | .51% | 1 | .06% | 64 | .69% | ||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .17 | 0 | .06 | (0 | .01) | 0 | .05 | (0 | .11) | (0 | .11) | $ | 9 | .11 | 0 | .54% | $ | 13,320 | 0 | .70% | 1 | .41% | 0 | .77% | 30 | .74% | ||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .07 | 0 | .24 | 0 | .08 | 0 | .32 | (0 | .22) | (0 | .22) | $ | 9 | .17 | 3 | .60% | $ | 13,257 | 0 | .66% | 2 | .59% | 0 | .76% | 64 | .69% | ||||||||||||||||||||||||||||||||||||||
| 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 | $ | 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% | ||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .16 | 0 | .07 | (0 | .01) | 0 | .06 | (0 | .12) | (0 | .12) | $ | 9 | .10 | 0 | .69% | $ | 235,758,662 | 0 | .45% | 1 | .63% | 0 | .52% | 30 | .74% | ||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .06 | 0 | .23 | 0 | .11 | 0 | .34 | (0 | .24) | (0 | .24) | $ | 9 | .16 | 3 | .80% | $ | 207,636,356 | 0 | .47% | 2 | .54% | 0 | .56% | 64 | .69% | ||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||
| (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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
98 Semiannual Report 2010
| 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, 2010, the Nationwide Government Bond Fund (Class A at NAV) returned 2.20% versus 1.00% for its benchmark, the BofA Merrill Lynch (BofAML) Government Master Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Intermediate U.S. Government Funds (consisting of 75 funds as of April 30, 2010) was 1.69% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The best performers in the Fund during the reporting period were investments in Agency mortgage-backed securities (MBS). These securities benefited from the Federal Reserve Board’s purchase of $1.25 trillion, which caused these securities’ spreads to tighten versus Treasury notes. The second-best performance in the Fund came from investments in collateralized mortgage obligations (CMOs). These structured Agency mortgage pools also benefited during the reporting period for the reason given above. In addition, the Fund’s investments in U.S. Treasury notes added to Fund performance. The Fund’s largest holding, a U.S. Treasury bond in the 11-year maturity sector, benefited as it “rolled” into the 10-year part of the yield curve and the yield compressed to that of the 10-year portion of the curve (the yield curve is a plotted graph line of the yields [or interest rates] on long-term and short-term maturity bonds).
What areas of investment detracted from Fund performance?
The worst performance in the Fund came from investments in Agency notes. These Fund holdings were primarily ones with less than five years to maturity. Amid a largely unchanged interest-rate environment, their yield was much less than that of holdings with longer maturities. The lowest contribution to Fund performance came from holding cash; yields were very low due to the Federal Reserve’s zero-interest-rate policy.
What is your outlook for the near term?
The economic recovery appears unlikely to be derailed anytime soon, especially now that employment rates appear to be growing. Job growth, along with modest inflation and low interest rates should boost incomes, spending and profits. Market valuations are not cheap, but asset values can be expected to resume an uptrend as long as macroeconomic prospects remain positive.
Subadviser:
Nationwide Asset Management, LLC
Nationwide Asset Management, LLC
Portfolio Managers:
Joel S. Buck and Gary R. Hunt, CFA
Joel S. Buck and Gary R. Hunt, CFA
2010 Semiannual Report 99
| Fund Performance | Nationwide Government Bond Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 2.20% | 5.03% | 5.07% | 5.97% | |||||||||||||
| w/SC2 | -2.12% | 0.54% | 4.16% | 5.52% | ||||||||||||||
Class B3 | w/o SC1 | 1.92% | 4.54% | 4.43% | 5.35% | |||||||||||||
| w/SC4 | -3.03% | -0.46% | 4.09% | 5.35% | ||||||||||||||
Class C5 | w/o SC1 | 1.92% | 4.55% | 4.45% | 5.37% | |||||||||||||
| w/SC6 | 0.93% | 3.55% | 4.45% | 5.37% | ||||||||||||||
| Class D | w/o SC1 | 2.32% | 5.38% | 5.38% | 6.26% | |||||||||||||
| w/SC7 | -2.26% | 0.60% | 4.41% | 5.77% | ||||||||||||||
Class R28,9,10 | 2.09% | 4.79% | 4.91% | 5.94% | ||||||||||||||
Institutional Class8,10 | 2.53% | 5.69% | 5.53% | 6.35% | ||||||||||||||
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 4.25% front-end sales charge was deducted. | |
| 3 | 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. | |
| 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, 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. | |
| 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 | A 4.50% front-end sales charge was deducted. | |
| 8 | Not subject to any sales charges. | |
| 9 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| 10 | 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. |
Expense Ratios
| Expense | ||||
| Ratio* | ||||
| Class A | 1.14% | |||
| Class B | 1.77% | |||
| Class C | 1.77% | |||
| Class D | 0.88% | |||
| Class R2 | 1.47% | |||
| Institutional Class | 0.77% | |||
| * | Current effective prospectus dated May 6, 2010. Please see the Fund’s most recent prospectus for details. |
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 4/30/10. 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. |
100 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Government | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Bond Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,022.00 | 6.12 | 1.22 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.74 | 6.11 | 1.22 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,019.20 | 8.66 | 1.73 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.22 | 8.65 | 1.73 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,019.20 | 8.66 | 1.73 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,016.22 | 8.65 | 1.73 | |||||||||||||||
| Class D Shares | Actual | 1,000.00 | 1,023.20 | 4.41 | 0.88 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.43 | 4.41 | 0.88 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,020.90 | 7.17 | 1.43 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.70 | 7.15 | 1.43 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,025.30 | 3.21 | 0.64 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.62 | 3.21 | 0.64 | |||||||||||||||
| 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. |
2010 Semiannual Report 101
| Portfolio Summary | Nationwide Government Bond Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| U.S. Government Mortgage Backed Agencies | 34 | .8% | ||
| Collateralized Mortgage Obligations | 19 | .5% | ||
| U.S. Treasury Bond | 19 | .3% | ||
| U.S. Treasury Notes | 15 | .0% | ||
| Mutual Fund | 5 | .8% | ||
| U.S. Government Sponsored & Agency Obligations | 5 | .2% | ||
| Other assets in excess of liabilities | 0 | .4% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| U.S. Treasury Bond, 8.13%, 08/15/21 | 19 | .4% | ||
| U.S. Treasury Note, 4.00%, 08/15/18 | 10 | .4% | ||
| Fannie Mae Pool, 5.63%, 06/01/12 | 7 | .7% | ||
| Fannie Mae Grantor Trust, 5.50%, 09/25/11 | 6 | .0% | ||
| Invesco AIM Liquid Assets Portfolio | 5 | .8% | ||
| U.S. Treasury Note, 2.25%, 01/31/15 | 4 | .6% | ||
| Fannie Mae Pool, 4.04%, 02/01/15 | 4 | .5% | ||
| Federal Home Loan Bank MTN, 8.02%, 02/13/15 | 4 | .2% | ||
| Fannie Mae Pool, 6.84%, 04/01/20 | 3 | .2% | ||
| Fannie Mae REMICS, 6.30%, 10/17/38 | 3 | .0% | ||
| Other Holdings | 31 | .2% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
102 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Government Bond Fund
| Collateralized Mortgage Obligations 19.5% | ||||||||
| Principal Amount | Market Value | |||||||
| Fannie Mae Grantor Trust | ||||||||
Series 2001-T2, Class B, 6.02%, 11/25/10 | $ | 3,127,000 | $ | 3,207,917 | ||||
Series 2001-T11, Class B, 5.50%, 09/25/11 | 8,585,000 | 9,070,404 | ||||||
| Fannie Mae REMICS | ||||||||
Series 1988-25, Class B, 9.25%, 10/25/18 | 7,927 | 8,821 | ||||||
Series 1990-7, Class B, 8.50%, 01/25/20 | 22,405 | 24,848 | ||||||
Series 1993-16, Class Z, 7.50%, 02/25/23 | 95,154 | 107,512 | ||||||
Series 1993-226, Class PK, 6.00%, 12/25/23 | 895,315 | 970,956 | ||||||
Series 2003-66, Class AP, 3.50%, 11/25/32 | 1,782,570 | 1,815,982 | ||||||
Series 1998-73, Class MZ, 6.30%, 10/17/38 | 4,033,776 | 4,473,836 | ||||||
| Fannie Mae-Aces | ||||||||
Series 2006-M2, Class A1F, 4.85%, 07/25/12 (a) | 3,190,503 | 3,334,911 | ||||||
Series 1998-M4, Class D, 6.27%, 02/25/35 | 592,143 | 605,918 | ||||||
| Freddie Mac REMICS | ||||||||
| Series 2960, Class BL, 5.00%, 02/15/23 | 3,916,728 | 4,132,880 | ||||||
| Series 1684, Class I, 6.50%, 03/15/24 | 1,534,674 | 1,672,996 | ||||||
| Series 2296, Class H, 6.50%, 03/15/31 | 92,520 | 99,154 | ||||||
Total Collateralized Mortgage Obligations (cost $28,053,143) | 29,526,135 | |||||||
| U.S. Government Mortgage Backed Agencies 34.8% | ||||||||
| Fannie Mae Pool | ||||||||
| Pool# 873942 5.87%, 09/01/11 | 3,878,181 | 4,090,675 | ||||||
| Pool# 460669 5.63%, 06/01/12 | 10,735,950 | 11,534,840 | ||||||
| Pool# 463344 4.04%, 02/01/15 | 6,517,009 | 6,804,731 | ||||||
| Pool# 381190 7.90%, 08/01/15 | 1,441,886 | 1,667,316 | ||||||
| Pool# 383142 7.11%, 10/01/15 | 1,702,996 | 1,766,037 | ||||||
| Pool# 380082 6.35%, 03/01/16 | 3,647,297 | 3,951,008 | ||||||
| Pool# 381995 7.40%, 10/01/17 | 982,719 | 1,126,530 | ||||||
| Pool# 385012 6.84%, 04/01/20 | 4,178,845 | 4,810,314 | ||||||
| Pool# 874740 6.32%, 07/01/22 | 1,736,972 | 1,992,155 | ||||||
| Pool# 874982 6.81%, 11/01/25 | 1,710,447 | 2,024,621 | ||||||
| Pool# 385258 6.65%, 07/01/27 | 1,277,732 | 1,427,585 | ||||||
| Pool# 387114 5.62%, 09/01/34 | 1,161,501 | 1,210,680 | ||||||
| Pool# 773298 4.89%, 04/01/35 (a) | 3,900,481 | 4,122,220 | ||||||
| Pool# 813605 3.35%, 07/01/36 (a) | 1,760,166 | 1,826,073 | ||||||
| Pool# 745769 3.65%, 07/01/36 (a) | 3,968,968 | 4,153,687 | ||||||
Total U.S. Government Mortgage Backed Agencies (cost $50,000,592) | 52,508,472 | |||||||
| U.S. Government Sponsored & Agency Obligations 5.2% | ||||||||
| Federal Home Loan Bank 5.99%, 04/15/13 | 1,500,000 | 1,685,973 | ||||||
| Federal Home Loan Bank MTN 8.02%, 02/13/15 | 5,000,000 | 6,219,070 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $7,233,759) | 7,905,043 | |||||||
| U.S. Treasury Bond 19.3% | ||||||||
| U.S. Treasury Bond, 8.13%, 08/15/21 | 21,000,000 | 29,203,125 | ||||||
Total U.S. Treasury Bond (cost $29,360,087) | 29,203,125 | |||||||
| U.S. Treasury Notes 15.0% | ||||||||
| U.S. Treasury Note | ||||||||
| 2.25%, 01/31/15 | 7,000,000 | 6,973,750 | ||||||
| 4.00%, 08/15/18 | 15,000,000 | 15,651,570 | ||||||
Total U.S. Treasury Notes (cost $22,536,603) | 22,625,320 | |||||||
2010 Semiannual Report 103
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Government Bond Fund (Continued)
| Mutual Fund 5.8% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 5.8% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (b) | 8,698,771 | $ | 8,698,771 | |||||
Total Mutual Fund (cost $8,698,771) | 8,698,771 | |||||||
Total Investments (cost $145,882,955) (c) — 99.6% | 150,466,866 | |||||||
Other assets in excess of liabilities — 0.4% | 591,319 | |||||||
NET ASSETS — 100.0% | $ | 151,058,185 | ||||||
| (a) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. The maturity date represents the actual maturity date. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (c) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| MTN | Medium Term Note | |
| REMICS | Real Estate Mortgage Investment Conduits |
The accompanying notes are an integral part of these financial statements.
104 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Government | |||||
| Bond Fund | |||||
Assets: | |||||
| Investments, at value (cost $145,882,955) | $ | 150,466,866 | |||
| Cash | 13 | ||||
| Interest receivable | 959,439 | ||||
| Receivable for capital shares issued | 21,235 | ||||
| Prepaid expenses and other assets | 43,792 | ||||
| Total Assets | 151,491,345 | ||||
Liabilities: | |||||
| Distributions payable | 27,399 | ||||
| Payable for capital shares redeemed | 199,591 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 62,153 | ||||
| Fund administration fees | 12,303 | ||||
| Distribution fees | 14,891 | ||||
| Administrative servicing fees | 66,272 | ||||
| Accounting and transfer agent fees | 14,096 | ||||
| Trustee fees | 2,296 | ||||
| Custodian fees | 2,804 | ||||
| Compliance program costs (Note 3) | 1,377 | ||||
| Professional fees | 13,503 | ||||
| Printing fees | 16,475 | ||||
| Total Liabilities | 433,160 | ||||
Net Assets | $ | 151,058,185 | |||
Represented by: | |||||
| Capital | $ | 144,163,042 | |||
| Accumulated net investment loss | (358,542 | ) | |||
| Accumulated net realized gains from investment transactions | 2,669,774 | ||||
| Net unrealized appreciation/(depreciation) from investments | 4,583,911 | ||||
Net Assets | $ | 151,058,185 | |||
Net Assets: | |||||
| Class A Shares | $ | 54,464,849 | |||
| Class B Shares | 1,141,249 | ||||
| Class C Shares | 2,519,274 | ||||
| Class D Shares | 91,193,124 | ||||
| Class R2 Shares | 1,738,678 | ||||
| Institutional Class Shares | 1,011 | ||||
| Total | $ | 151,058,185 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 5,061,457 | ||||
| Class B Shares | 106,063 | ||||
| Class C Shares | 234,127 | ||||
| Class D Shares | 8,472,857 | ||||
| Class R2 Shares | 161,439 | ||||
| Institutional Class Shares | 94 | ||||
| Total | 14,036,037 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 105
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 | $ | 10.76 | |||
| Class B Shares (a) | $ | 10.76 | |||
| Class C Shares (b) | $ | 10.76 | |||
| Class D Shares | $ | 10.76 | |||
| Class R2 Shares | $ | 10.77 | |||
| Institutional Class Shares | $ | 10.76 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 11.24 | |||
| Class D Shares | $ | 11.27 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 4.25 | % | |||
Maximum Sales Charge: | |||||
| Class D Shares | 4.50 | % | |||
| (a) | For Class B Shares, the redemption price per share varies by the length of time shares are held. | |
| (b) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
106 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Government | |||||
| Bond Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 3,157,581 | |||
| Dividend income | 2,742 | ||||
| Total Income | 3,160,323 | ||||
EXPENSES: | |||||
| Investment advisory fees | 383,393 | ||||
| Fund administration fees | 84,341 | ||||
| Distribution fees Class A | 67,705 | ||||
| Distribution fees Class B | 6,009 | ||||
| Distribution fees Class C | 13,114 | ||||
| Distribution fees Class R2 | 4,766 | ||||
| Administrative servicing fees Class A | 66,969 | ||||
| Administrative servicing fees Class D | 73,498 | ||||
| Administrative servicing fees Class R2 | 1,906 | ||||
| Registration and filing fees | 28,738 | ||||
| Professional fees | 11,121 | ||||
| Printing fees | 17,117 | ||||
| Trustee fees | 3,370 | ||||
| Custodian fees | 5,751 | ||||
| Accounting and transfer agent fees | 17,593 | ||||
| Compliance program costs (Note 3) | 779 | ||||
| Other | 4,819 | ||||
| Total expenses before earnings credit | 790,989 | ||||
| Earnings credit (Note 5) | (258 | ) | |||
| Net Expenses | 790,731 | ||||
NET INVESTMENT INCOME | 2,369,592 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 2,782,871 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | (1,669,184 | ) | |||
| Net realized/unrealized gains from investments | 1,113,687 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,483,279 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 107
Statements of Changes in Net Assets
| Nationwide Government Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 2,369,592 | $ | 5,469,943 | ||||||
| Net realized gains from investment transactions | 2,782,871 | 2,301,600 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | (1,669,184 | ) | 7,477,476 | |||||||
| Change in net assets resulting from operations | 3,483,279 | 15,249,019 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (955,167 | ) | (1,727,798 | ) | ||||||
| Class B | (17,817 | ) | (32,534 | ) | ||||||
| Class C | (39,008 | ) | (58,631 | ) | ||||||
| Class D | (1,851,339 | ) | (3,590,839 | ) | ||||||
| Class R2 (a) | (31,911 | ) | (32,706 | ) | ||||||
| Class X (b) | – | (8,099 | ) | |||||||
| Class Y (b) | – | (5,095 | ) | |||||||
| Institutional Class | (24 | ) | (45 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (782,899 | ) | (287,124 | ) | ||||||
| Class B | (17,194 | ) | (7,144 | ) | ||||||
| Class C | (37,355 | ) | (17,477 | ) | ||||||
| Class D | (1,380,521 | ) | (614,665 | ) | ||||||
| Class R2 (a) | (28,486 | ) | (3,422 | ) | ||||||
| Class X (b) | – | (6,714 | ) | |||||||
| Class Y (b) | – | (4,313 | ) | |||||||
| Institutional Class | (18 | ) | (7 | ) | ||||||
| Change in net assets from shareholder distributions | (5,141,739 | ) | (6,396,613 | ) | ||||||
| Change in net assets from capital transactions | (4,566,973 | ) | 4,455,568 | |||||||
| Change in net assets | (6,225,433 | ) | 13,307,974 | |||||||
Net Assets: | ||||||||||
| Beginning of period | 157,283,618 | 143,975,644 | ||||||||
| End of period | $ | 151,058,185 | $ | 157,283,618 | ||||||
| Accumulated undistributed net investment income (loss) at end of period | $ | (358,542 | ) | $ | 167,132 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 6,098,963 | $ | 22,086,286 | ||||||
| Proceeds from shares issued from class conversion (b) | – | 1,837,026 | ||||||||
| Dividends reinvested | 1,680,827 | 1,832,681 | ||||||||
| Cost of shares redeemed (c) | (6,809,372 | ) | (17,334,690 | ) | ||||||
| Total Class A | 970,418 | 8,421,303 | ||||||||
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, Class X and Class Y Shares were converted to Class A Shares. |
| (c) | Includes redemption fees – see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
108 Semiannual Report 2010
| Nationwide Government Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | $ | 51,642 | $ | 575,439 | ||||||
| Dividends reinvested | 15,231 | 13,404 | ||||||||
| Cost of shares redeemed | (228,928 | ) | (395,327 | ) | ||||||
| Total Class B | (162,055 | ) | 193,516 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 773,257 | 2,386,983 | ||||||||
| Dividends reinvested | 42,399 | 16,384 | ||||||||
| Cost of shares redeemed (c) | (494,671 | ) | (2,726,069 | ) | ||||||
| Total Class C | 320,985 | (322,702 | ) | |||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | 4,056,230 | 20,964,311 | ||||||||
| Dividends reinvested | 3,057,650 | 3,706,693 | ||||||||
| Cost of shares redeemed (c) | (12,684,874 | ) | (27,884,940 | ) | ||||||
| Total Class D | (5,570,994 | ) | (3,213,936 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 403,800 | 1,544,614 | ||||||||
| Dividends reinvested | 9,565 | 9,307 | ||||||||
| Cost of shares redeemed (c) | (538,449 | ) | (294,884 | ) | ||||||
| Total Class R2 | (125,084 | ) | 1,259,037 | |||||||
Class X Shares (b) | ||||||||||
| Proceeds from shares issued | – | 105,937 | ||||||||
| Dividends reinvested | – | 14,590 | ||||||||
| Cost of shares redeemed in class conversion | – | (1,131,213 | ) | |||||||
| Cost of shares redeemed | – | (171,518 | ) | |||||||
| Total Class X | – | (1,182,204 | ) | |||||||
Class Y Shares (b) | ||||||||||
| Proceeds from shares issued | – | 2,150 | ||||||||
| Dividends reinvested | – | 8,065 | ||||||||
| Cost of shares redeemed in class conversion | – | (705,813 | ) | |||||||
| Cost of shares redeemed | – | (3,900 | ) | |||||||
| Total Class Y | – | (699,498 | ) | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,001 | 3 | ||||||||
| Dividends reinvested | 42 | 49 | ||||||||
| Cost of shares redeemed (c) | (1,286 | ) | – | |||||||
| Total Institutional Class | (243 | ) | 52 | |||||||
| Change in net assets from capital transactions | $ | (4,566,973 | ) | $ | 4,455,568 | |||||
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, Class X and Class Y Shares were converted to Class A Shares. |
| (c) | Includes redemption fees – see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 109
Statements of Changes in Net Assets (Continued)
| Nationwide Government Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 567,138 | 2,060,933 | ||||||||
| Issued in class conversion (b) | – | 172,159 | ||||||||
| Reinvested | 156,320 | 170,648 | ||||||||
| Redeemed | (634,396 | ) | (1,614,038 | ) | ||||||
| Total Class A Shares | 89,062 | 789,702 | ||||||||
Class B Shares | ||||||||||
| Issued | 4,783 | 53,835 | ||||||||
| Reinvested | 1,416 | 1,247 | ||||||||
| Redeemed | (21,115 | ) | (36,990 | ) | ||||||
| Total Class B Shares | (14,916 | ) | 18,092 | |||||||
Class C Shares | ||||||||||
| Issued | 71,574 | 222,009 | ||||||||
| Reinvested | 3,945 | 1,526 | ||||||||
| Redeemed | (46,142 | ) | (253,336 | ) | ||||||
| Total Class C Shares | 29,377 | (29,801 | ) | |||||||
Class D Shares | ||||||||||
| Issued | 376,318 | 1,952,791 | ||||||||
| Reinvested | 284,345 | 345,043 | ||||||||
| Redeemed | (1,179,551 | ) | (2,599,769 | ) | ||||||
| Total Class D Shares | (518,888 | ) | (301,935 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 37,344 | 144,023 | ||||||||
| Reinvested | 889 | 866 | ||||||||
| Redeemed | (49,941 | ) | (27,464 | ) | ||||||
| Total Class R2 Shares | (11,708 | ) | 117,425 | |||||||
Class X Shares (b) | ||||||||||
| Issued | – | 9,795 | ||||||||
| Reinvested | – | 1,363 | ||||||||
| Redeemed | – | (16,220 | ) | |||||||
| Redeemed in class conversion | – | (106,104 | ) | |||||||
| Total Class X Shares | – | (111,166 | ) | |||||||
Class Y Shares (b) | ||||||||||
| Issued | – | 202 | ||||||||
| Reinvested | – | 753 | ||||||||
| Redeemed | – | (368 | ) | |||||||
| Redeemed in class conversion | – | (66,202 | ) | |||||||
| Total Class Y Shares | – | (65,615 | ) | |||||||
Institutional Class Shares | ||||||||||
| Issued | 93 | – | ||||||||
| Reinvested | 4 | 5 | ||||||||
| Redeemed | (120 | ) | – | |||||||
| Total Institutional Class Shares | (23 | ) | 5 | |||||||
| Total change in shares | (427,096 | ) | 416,707 | |||||||
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, Class X and Class Y Shares were converted to Class A Shares. |
The accompanying notes are an integral part of these financial statements.
110 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Government Bond Fund
| Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | 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, 2010 (Unaudited) (f) | $ | 10 | .87 | 0 | .15 | 0 | .09 | 0 | .24 | (0 | .19) | (0 | .16) | (0 | .35) | – | $ | 10 | .76 | 2 | .20% | $ | 54,464,849 | 1 | .22% | 2 | .90% | 1 | .22% | 49 | .84% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .25 | 0 | .35 | 0 | .69 | 1 | .04 | (0 | .35) | (0 | .07) | (0 | .42) | – | $ | 10 | .87 | 10 | .19% | $ | 54,052,272 | 1 | .16% | 3 | .23% | 1 | .16% | 77 | .90% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .87 | 0 | .13 | 0 | .08 | 0 | .21 | (0 | .16) | (0 | .16) | (0 | .32) | – | $ | 10 | .76 | 1 | .92% | $ | 1,141,249 | 1 | .73% | 2 | .41% | �� | 1 | .73% | 49 | .84% | ||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .24 | 0 | .28 | 0 | .70 | 0 | .98 | (0 | .28) | (0 | .07) | (0 | .35) | – | $ | 10 | .87 | 9 | .62% | $ | 1,314,664 | 1 | .78% | 2 | .62% | 1 | .78% | 77 | .90% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .87 | 0 | .13 | 0 | .08 | 0 | .21 | (0 | .16) | (0 | .16) | (0 | .32) | – | $ | 10 | .76 | 1 | .92% | $ | 2,519,274 | 1 | .73% | 2 | .40% | 1 | .73% | 49 | .84% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .24 | 0 | .28 | 0 | .70 | 0 | .98 | (0 | .28) | (0 | .07) | (0 | .35) | – | $ | 10 | .87 | 9 | .62% | $ | 2,225,145 | 1 | .78% | 2 | .65% | 1 | .78% | 77 | .90% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .88 | 0 | .17 | 0 | .08 | 0 | .25 | (0 | .21) | (0 | .16) | (0 | .37) | – | $ | 10 | .76 | 2 | .32% | $ | 91,193,124 | 0 | .88% | 3 | .24% | 0 | .88% | 49 | .84% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .25 | 0 | .38 | 0 | .70 | 1 | .08 | (0 | .38) | (0 | .07) | (0 | .45) | – | $ | 10 | .88 | 10 | .59% | $ | 97,806,444 | 0 | .88% | 3 | .52% | 0 | .88% | 77 | .90% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 111
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Government Bond Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | 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(h) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .88 | 0 | .14 | 0 | .09 | 0 | .23 | (0 | .18) | (0 | .16) | (0 | .34) | – | $ | 10 | .77 | 2 | .09% | $ | 1,738,678 | 1 | .43% | 2 | .70% | 1 | .43% | 49 | .84% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .25 | 0 | .31 | 0 | .71 | 1 | .02 | (0 | .32) | (0 | .07) | (0 | .39) | – | $ | 10 | .88 | 9 | .99% | $ | 1,883,821 | 1 | .45% | 2 | .88% | 1 | .45% | 77 | .90% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .87 | 0 | .19 | 0 | .08 | 0 | .27 | (0 | .22) | (0 | .16) | (0 | .38) | – | $ | 10 | .76 | 2 | .53% | $ | 1,011 | 0 | .64% | 3 | .49% | 0 | .64% | 49 | .84% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .25 | 0 | .40 | 0 | .68 | 1 | .08 | (0 | .39) | (0 | .07) | (0 | .46) | – | $ | 10 | .87 | 10 | .67% | $ | 1,272 | 0 | .74% | 3 | .67% | 0 | .74% | 77 | .90% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
112 Semiannual Report 2010
| 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, 2010, the Nationwide Short Duration Bond Fund (Class A at NAV) returned 1.08% versus 0.79% for its benchmark, the BofA Merrill Lynch (BofAML) 1-3 Year Treasury Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Short Investment Grade Debt Funds (consisting of 271 funds as of April 30, 2010) was 2.63% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Economic stability and a lower probability for a “double-dip” recession prompted investors to increase their risk appetite and continue their push into higher-yielding assets during the reporting period. The Fund’s holdings in spread sectors, particularly commercial mortgage-backed securities (CMBS), asset-backed securities (ABS), residential mortgage-backed securities (RMBS) and credit provided the most positive returns for the Fund during the reporting period.
What areas of investment detracted from Fund performance?
The Fund’s exposure to U.S. Treasury and Agency debentures detracted from Fund performance amid expectations for higher interest rates, rebounding economic activity and strong corporate earnings. Investors’ increased risk appetites led them to favor other fixed-income asset classes during much of the reporting period. None of the securities held by the Fund defaulted during the reporting period.
What is your outlook for the near term?
U.S. economic data continues to be mixed with good signs of improvement in manufacturing, consumer spending, exports and corporate earnings. Continued challenges can be seen in the labor market, residential and commercial real estate, and small business creation. Prospects for a double-dip recession have faded considerably as greater stabilization in economic activity has appeared. The Federal Reserve Board’s exit strategy and timing of removing excess liquidity in the banking system, as well as its accommodative policy, still remain unclear.
Our best-case forecast calls for the economy to experience 1% to 3% growth during the next 12 months. The rate of inflation remains subdued, and is not yet likely to force the Federal Reserve to raise interest rates at this juncture. We expect a modest increase in interest rates, particularly in the front end, and yield curve flattening this year (the yield curve is a plotted graph line of the yields [or interest rates] on long-term and short-term maturity bonds). Investors’ ability to consume an estimated $2.4 trillion of Treasury issuance in 2010 may influence the overall yield curve and push rates higher.
The recent significant rebounds in stock and bond markets have lessened the negative wealth effect experienced during the past few years. The consumer continues to surprise even in the face of significant headwinds. Yet peripheral stresses such as the recent sovereign debt concerns with Greece and the potential for tighter Chinese monetary policy also continue to challenge the credit markets.
Financial regulatory reform legislation is working its way through the U.S. Congress. Much focus and debate can be expected, since the ramifications of reform can have an extensive impact on the economy and the financial sector in terms of challenges to liquidity and profitability. Efforts to avoid “too big to fail” situations through company breakups may impede economic growth. Regulations on non-bank financial institutions; and the adoption of strict rules on capital leverage, liquidity and risk management also may slow the rate of economic growth. No one knows what the end result will be, but it is no surprise that reform in the financial markets is needed.
Subadviser:
Morley Capital Management, Inc.
Morley Capital Management, Inc.
Portfolio Managers:
Perpetua M. Phillips and Paul Rocheleau
Perpetua M. Phillips and Paul Rocheleau
2010 Semiannual Report 113
| Fund Performance | Nationwide Short Duration Bond Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | 1.08% | 4.66% | 3.87% | 3.79% | |||||||||||||
| w/SC3 | -1.25% | 2.30% | 3.39% | 3.56% | ||||||||||||||
Class C4 | w/o SC2 | 0.81% | 4.02% | 3.36% | 3.53% | |||||||||||||
| w/SC5 | 0.07% | 3.27% | 3.36% | 3.53% | ||||||||||||||
Institutional Class6 | 1.25% | 4.86% | 4.14% | 4.12% | ||||||||||||||
Service Class6 | 0.91% | 4.40% | 3.74% | 3.72% | ||||||||||||||
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 | 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. | |
| 5 | 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. | |
| 6 | Not subject to any sales charges. |
Expense Ratios
| Gross Expense | Net Expense | |||||
| Ratio* | Ratio* | |||||
| Class A | 1.04% | 0.81% | ||||
| Class C | 1.53% | 1.30% | ||||
| Institutional Class | 0.78% | 0.55% | ||||
| Service Class | 1.17% | 0.94% | ||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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 4/30/10. 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. |
114 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Short Duration | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Bond Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,010.80 | 4.24 | 0.85 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.58 | 4.26 | 0.85 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,008.10 | 6.47 | 1.30 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.35 | 6.51 | 1.30 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,012.50 | 2.74 | 0.55 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.07 | 2.76 | 0.55 | |||||||||||||||
| Service Class Shares | Actual | 1,000.00 | 1,009.10 | 4.73 | 0.95 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.08 | 4.76 | 0.95 | |||||||||||||||
| 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. |
2010 Semiannual Report 115
| Portfolio Summary | Nationwide Short Duration Bond Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| U.S. Treasury Notes | 26 | .9% | ||
| Asset-Backed Securities | 23 | .3% | ||
| Corporate Bonds | 22 | .7% | ||
| Commercial Mortgage Backed Securities | 11 | .8% | ||
| U.S. Government Sponsored & Agency Obligations | 6 | .8% | ||
| Collateralized Mortgage Obligations | 5 | .5% | ||
| Mutual Fund | 2 | .6% | ||
| Sovereign Bond | 1 | .0% | ||
| Liabilities in excess of other assets | (0 | .6)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Diversified Financial Services | 7 | .1% | ||
| Commercial Banks | 4 | .9% | ||
| Insurance | 2 | .7% | ||
| Food & Staples Retailing | 1 | .7% | ||
| Communications Equipment | 1 | .7% | ||
| Pharmaceuticals | 1 | .2% | ||
| Personal Products | 1 | .2% | ||
| Capital Markets | 0 | .8% | ||
| Biotechnology | 0 | .8% | ||
| Aerospace & Defense | 0 | .4% | ||
| Other Industries | 77 | .5% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| U.S. Treasury Note, 1.38%, 02/15/13 | 7 | .4% | ||
| U.S. Treasury Note, 1.13%, 12/15/12 | 6 | .9% | ||
| U.S. Treasury Note, 1.38%, 05/15/12 | 5 | .0% | ||
| U.S. Treasury Note, 1.38%, 10/15/12 | 4 | .9% | ||
| LB-UBS Commercial Mortgage Trust, 4.89%, 09/15/30 | 3 | .3% | ||
| Invesco AIM Liquid Assets Portfolio | 2 | .6% | ||
| Federal Home Loan Mortgage Corp., 2.88%, 11/23/10 | 2 | .5% | ||
| U.S. Treasury Note, 1.75%, 04/15/13 | 2 | .5% | ||
| Wachovia Bank Commercial Mortgage Trust, 5.62%, 07/15/45 | 2 | .2% | ||
| World Omni Auto Receivables Trust, 4.74%, 10/15/13 | 1 | .7% | ||
| Other Holdings | 61 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
116 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Short Duration Bond Fund
| Asset-Backed Securities 23.3% | ||||||||
| Principal Amount | Market Value | |||||||
Automobile Asset-Backed Securities 15.4% | ||||||||
Ally Auto Receivables Trust, Series 2010-1, Class A3, 1.45%, 05/15/14 | $ | 450,000 | $ | 449,584 | ||||
AmeriCredit Automobile Receivables Trust, Series 2005-CF, Class A4, 4.63%, 06/06/12 | 422,852 | 423,099 | ||||||
Bank of America Auto Trust, Series 2010-1A, Class A4, 2.18%, 02/15/17 (a) | 300,000 | 301,145 | ||||||
BMW Vehicle Owner Trust, Series 2010-A, Class A4, 2.10%, 10/25/16 | 550,000 | 550,652 | ||||||
Capital Auto Receivables Asset Trust, Series 2008-1, Class A4A, 4.46%, 07/15/14 | 1,000,000 | 1,049,864 | ||||||
Daimler Chrysler Auto Trust, Series 2007-A, Class A4, 5.28%, 03/08/13 | 1,000,000 | 1,046,491 | ||||||
| Honda Auto Receivables Owner Trust | ||||||||
Series 2006-3, Class A4, 5.11%, 04/15/12 | 727,086 | 728,492 | ||||||
Series 2010-1, Class A4, 1.98%, 05/23/16 | 415,000 | 417,033 | ||||||
Nissan Auto Receivables Owner Trust, Series 2008-A, Class A4, 4.28%, 06/16/14 | 700,000 | 728,354 | ||||||
| Toyota Auto Receivables Owner Trust | ||||||||
Series 2010-A, Class A3, 1.27%, 12/16/13 | 125,000 | 124,992 | ||||||
Series 2010-A, Class A4, 1.86%, 05/16/16 | 275,000 | 274,956 | ||||||
| USAA Auto Owner Trust | ||||||||
Series 2008-1, Class A4, 4.50%, 10/15/13 | 1,000,000 | 1,042,814 | ||||||
Series 2010-1, Class A4, 2.14%, 09/15/15 | 350,000 | 351,236 | ||||||
| World Omni Auto Receivables Trust | ||||||||
Series 2008-A, Class A4, 4.74%, 10/15/13 | 1,000,000 | 1,052,298 | ||||||
Series 2008-B, Class A3A, 5.13%, 04/15/13 | 750,000 | 774,617 | ||||||
| 9,315,627 | ||||||||
Credit Card Asset-Backed Securities 2.6% | ||||||||
Chase Issuance Trust, Series 2005-A7, Class A7, 4.55%, 03/15/13 | 1,000,000 | 1,027,327 | ||||||
Citibank Credit Card Issuance Trust, Series 2009-A5, Class A5, 2.25%, 12/23/14 | 500,000 | 505,713 | ||||||
| 1,533,040 | ||||||||
Home Equity Asset-Backed Securities 2.1% | ||||||||
CitiFinancial Mortgage Securities, Inc., Series 2003-4, Class AF4, 4.43%, 10/25/33 (b) | 503,643 | 491,369 | ||||||
Residential Asset Securities Corp., Series 2003-KS10, Class AI4, 4.47%, 03/25/32 (c) | 809,682 | 799,370 | ||||||
| 1,290,739 | ||||||||
Other Asset-Backed Securities 3.2% | ||||||||
John Deere Owner Trust, Series 2010-A, Class A4, 2.13%, 10/17/16 | 550,000 | 549,892 | ||||||
MBNA Practice Solutions Owner Trust, Series 2005-2, Class A4, 4.47%, 06/15/13 (a) | 184,616 | 185,800 | ||||||
Peco Energy Transition Trust, Series 2001-A, Class A1, 6.52%, 12/31/10 | 501,308 | 511,444 | ||||||
PG&E Energy Recovery Funding LLC, Series 2005-2, Class A2, 5.03%, 03/25/14 | 674,754 | 703,334 | ||||||
| 1,950,470 | ||||||||
Total Asset-Backed Securities (cost $13,803,045) | 14,089,876 | |||||||
| Collateralized Mortgage Obligations 5.5% | ||||||||
| Fannie Mae REMICS | ||||||||
Series 2004-79, Class VE, 4.50%, 08/25/10 | 89,614 | 89,831 | ||||||
Series 2002-82, Class XD, 5.00%, 07/25/16 | 349,712 | 357,562 | ||||||
Series 2004-80, Class LG, 4.00%, 10/25/16 | 795,650 | 808,283 | ||||||
| Freddie Mac REMICS | ||||||||
| Series 2676, Class CV, 4.00%, 05/15/16 | 478,392 | 489,909 | ||||||
| Series 2625, Class JD, 3.25%, 07/15/17 | 361,891 | 371,464 | ||||||
| Series 2626, Class UN, 4.00%, 08/15/29 | 95,270 | 95,545 | ||||||
| Government National Mortgage Association | ||||||||
Series 2004-76, Class QA, 4.00%, 01/20/34 | 758,907 | 786,713 | ||||||
Series 2004-22, Class BK, 3.47%, 04/20/34 | 354,347 | 358,329 | ||||||
Total Collateralized Mortgage Obligations (cost $3,292,918) | 3,357,636 | |||||||
2010 Semiannual Report 117
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Short Duration Bond Fund (Continued)
| Commercial Mortgage Backed Securities 11.8% | ||||||||
| Principal Amount | Market Value | |||||||
| Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2001-TOP4, Class A1, 5.06%, 11/15/16 | $ | 159,780 | $ | 161,285 | ||||
Series 2004-T14, Class A3, 4.80%, 01/12/41 | 564,629 | 575,130 | ||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A1 4.98%, 12/11/49 | 528,792 | 535,312 | ||||||
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A2 5.51%, 04/10/38 (c) | 1,000,000 | 1,017,307 | ||||||
| LB-UBS Commercial Mortgage Trust | ||||||||
Series 2005-C5, Class A2, 4.89%, 09/15/30 | 1,951,411 | 2,009,464 | ||||||
Series 2007-C1, Class A1, 5.39%, 02/15/40 | 496,447 | 506,641 | ||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A1 4.71%, 07/12/46 (c) | 333,909 | 336,432 | ||||||
| Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2005-C17, Class A2, 4.78%, 03/15/42 | 674,993 | 674,698 | ||||||
Series 2006-C27, Class A2, 5.62%, 07/15/45 | 1,300,000 | 1,333,405 | ||||||
Total Commercial Mortgage Backed Securities (cost $7,020,498) | 7,149,674 | |||||||
| Corporate Bonds 22.7% | ||||||||
Aerospace & Defense 0.4% | ||||||||
| Boeing Co. (The), 1.88%, 11/20/12 | 250,000 | 253,105 | ||||||
Biotechnology 0.8% | ||||||||
| Genentech, Inc., 4.40%, 07/15/10 | 500,000 | 503,945 | ||||||
Capital Markets 0.8% | ||||||||
| State Street Corp., 2.15%, 04/30/12 | 500,000 | 510,280 | ||||||
Commercial Banks 5.0% | ||||||||
| BNP Paribas, 0.69%, 04/08/13 (c) | 500,000 | 499,952 | ||||||
| Santander US Debt SA Unipersonal, 2.49%, 01/18/13 (a) | 1,000,000 | 983,156 | ||||||
| US Bancorp, 2.25%, 03/13/12 | 500,000 | 510,229 | ||||||
| Wells Fargo & Co., 3.98%, 10/29/10 | 1,000,000 | 1,015,707 | ||||||
| 3,009,044 | ||||||||
Communications Equipment 1.7% | ||||||||
| Cisco Systems, Inc., 5.25%, 02/22/11 | 1,000,000 | 1,036,891 | ||||||
Diversified Financial Services 7.2% | ||||||||
| BP Capital Markets PLC, 3.13%, 03/10/12 | 650,000 | 673,009 | ||||||
| Caterpillar Financial Services Corp., 2.00%, 04/05/13 | 150,000 | 151,028 | ||||||
| General Electric Capital Corp., 2.20%, 06/08/12 | 1,000,000 | 1,021,730 | ||||||
| JPMorgan Chase & Co. | ||||||||
| 2.63%, 12/01/10 | 750,000 | 759,462 | ||||||
| 5.38%, 10/01/12 | 650,000 | 706,802 | ||||||
| TIAA Global Markets, Inc., 4.88%, 01/12/11 (a) | 1,000,000 | 1,025,958 | ||||||
| 4,337,989 | ||||||||
Food & Staples Retailing 1.7% | ||||||||
| Wal-Mart Stores, Inc., 4.13%, 02/15/11 | 1,000,000 | 1,027,078 | ||||||
Insurance 2.7% | ||||||||
| Berkshire Hathaway, Inc., Series 0001, 2.13%, 02/11/13 | 600,000 | 607,648 | ||||||
| Metropolitan Life Global Funding I, 4.63%, 08/19/10 (a) | 1,000,000 | 1,009,469 | ||||||
| 1,617,117 | ||||||||
Personal Products 1.2% | ||||||||
| Procter & Gamble Co. (The), 1.38%, 08/01/12 | 700,000 | 704,047 | ||||||
Pharmaceuticals 1.2% | ||||||||
| Eli Lilly & Co., 3.55%, 03/06/12 | 200,000 | 208,771 | ||||||
| Pfizer, Inc., 2.21%, 03/15/11 (c) | 500,000 | 508,700 | ||||||
| 717,471 | ||||||||
Total Corporate Bonds (cost $13,532,255) | 13,716,967 | |||||||
118 Semiannual Report 2010
| Sovereign Bond 1.0% | ||||||||
| Principal Amount | Market Value | |||||||
CANADA 1.0% | ||||||||
| Province of Ontario Canada, 1.88%, 11/19/12 | $ | 575,000 | $ | 579,246 | ||||
Total Sovereign Bond (cost $574,102) | 579,246 | |||||||
| U.S. Government Sponsored & Agency Obligations 6.8% | ||||||||
| Federal Farm Credit Bank 3.88%, 08/25/11 | 750,000 | 780,791 | ||||||
| Federal Home Loan Mortgage Corp. | ||||||||
| 2.88%, 11/23/10 | 1,500,000 | 1,520,376 | ||||||
| 1.75%, 06/15/12 | 750,000 | 757,588 | ||||||
| Federal National Mortgage Association 3.63%, 08/15/11 | 1,000,000 | 1,036,878 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $4,003,125) | 4,095,633 | |||||||
| U.S. Treasury Notes 26.9% | ||||||||
| U.S. Treasury Note | ||||||||
| 1.13%, 12/15/12 | 4,250,000 | 4,231,075 | ||||||
| 1.38%, 05/15/12 | 3,000,000 | 3,023,673 | ||||||
| 1.38%, 10/15/12 | 3,000,000 | 3,012,186 | ||||||
| 1.38%, 02/15/13 | 4,500,000 | 4,496,486 | ||||||
| 1.75%, 04/15/13 | 1,500,000 | 1,511,250 | ||||||
Total U.S. Treasury Notes (cost $16,227,297) | 16,274,670 | |||||||
| Mutual Fund 2.6% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 2.6% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (d) | 1,579,604 | 1,579,604 | ||||||
Total Mutual Fund (cost $1,579,604) | 1,579,604 | |||||||
Total Investments (cost $60,032,844) (e) — 100.6% | 60,843,306 | |||||||
Liabilities in excess of other assets — (0.6)% | (391,373 | ) | ||||||
NET ASSETS — 100.0% | $ | 60,451,933 | ||||||
| (a) | Rule 144A, Section 4(2), or other security which is restricted as to sale 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, 2010 was $3,505,528 which represents 5.80% of net assets. | |
| (b) | Step Bond. Coupon rate is set for an initial period and then increases to a higher coupon rate at a specific date. The rate shown is the rate at April 30, 2010. | |
| (c) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. The maturity date represents the actual maturity date. | |
| (d) | Represents 7-day effective yield as of April 30, 2010. | |
| (e) | 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 | |
| SA | Stock Company |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 119
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Short | |||||
| Duration Bond Fund | |||||
Assets: | |||||
| Investments, at value (cost $60,032,844) | $ | 60,843,306 | |||
| Interest and dividends receivable | 259,128 | ||||
| Receivable for capital shares issued | 9,070 | ||||
| Prepaid expenses and other assets | 44,450 | ||||
| Total Assets | 61,155,954 | ||||
Liabilities: | |||||
| Payable for investments purchased | 399,948 | ||||
| Distributions payable | 4,711 | ||||
| Payable for capital shares redeemed | 237,712 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 12,646 | ||||
| Fund administration fees | 5,879 | ||||
| Distribution fees | 13,281 | ||||
| Administrative servicing fees | 7,767 | ||||
| Accounting and transfer agent fees | 7,075 | ||||
| Trustee fees | 969 | ||||
| Custodian fees | 949 | ||||
| Compliance program costs (Note 3) | 591 | ||||
| Professional fees | 7,677 | ||||
| Printing fees | 4,805 | ||||
| Other | 11 | ||||
| Total Liabilities | 704,021 | ||||
Net Assets | $ | 60,451,933 | |||
Represented by: | |||||
| Capital | $ | 62,781,965 | |||
| Accumulated net investment loss | (418,712 | ) | |||
| Accumulated net realized losses from investment transactions | (2,721,782 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 810,462 | ||||
Net Assets | $ | 60,451,933 | |||
Net Assets: | |||||
| Class A Shares | $ | 14,902,429 | |||
| Class C Shares | 2,134,857 | ||||
| Institutional Class Shares | 899,590 | ||||
| Service Class Shares | 42,515,057 | ||||
| Total | $ | 60,451,933 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,468,856 | ||||
| Class C Shares | 210,243 | ||||
| Institutional Class Shares | 88,643 | ||||
| Service Class Shares | 4,190,825 | ||||
| Total | 5,958,567 | ||||
The accompanying notes are an integral part of these financial statements.
120 Semiannual Report 2010
| 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 | $ | 10.15 | |||
| Class C Shares (a) | $ | 10.15 | |||
| Institutional Class Shares | $ | 10.15 | |||
| Service Class Shares | $ | 10.14 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.38 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 2.25 | % | |||
| (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.
2010 Semiannual Report 121
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Short | |||||
| Duration Bond Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 941,114 | |||
| Dividend income | 2,294 | ||||
| Total Income | 943,408 | ||||
EXPENSES: | |||||
| Investment advisory fees | 111,977 | ||||
| Fund administration fees | 36,067 | ||||
| Distribution fees Class A | 20,154 | ||||
| Distribution fees Class C | 4,662 | ||||
| Distribution fees Service Class | 57,050 | ||||
| Administrative servicing fees Class A | 4,401 | ||||
| Administrative servicing fees Service Class | 34,230 | ||||
| Registration and filing fees | 24,255 | ||||
| Professional fees | 6,576 | ||||
| Printing fees | 6,399 | ||||
| Trustee fees | 1,433 | ||||
| Custodian fees | 2,280 | ||||
| Accounting and transfer agent fees | 8,274 | ||||
| Compliance program costs (Note 3) | 330 | ||||
| Other | 2,990 | ||||
| Total expenses before earnings credit and expenses reimbursed | 321,078 | ||||
| Earnings credit (Note 5) | (113 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (24,607 | ) | |||
| Net Expenses | 296,358 | ||||
NET INVESTMENT INCOME | 647,050 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 143,514 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | (181,343 | ) | |||
| Net realized/unrealized losses from investments | (37,829 | ) | |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 609,221 | |||
The accompanying notes are an integral part of these financial statements.
122 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Short | ||||||||||
| Duration Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 647,050 | $ | 1,963,245 | ||||||
| Net realized gains from investment transactions | 143,514 | 171,015 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | (181,343 | ) | 2,365,470 | |||||||
| Change in net assets resulting from operations | 609,221 | 4,499,730 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (272,761 | ) | (277,857 | ) | ||||||
| Class C | (14,906 | ) | (10,140 | ) | ||||||
| IRA Class (a) | – | (84,133 | ) | |||||||
| Institutional Class | (18,309 | ) | (28,226 | ) | ||||||
| Service Class | (751,158 | ) | (1,574,224 | ) | ||||||
| Change in net assets from shareholder distributions | (1,057,134 | ) | (1,974,580 | ) | ||||||
| Change in net assets from capital transactions | (6,642,990 | ) | (9,846,350 | ) | ||||||
| Change in net assets | (7,090,903 | ) | (7,321,200 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 67,542,836 | 74,864,036 | ||||||||
| End of period | $ | 60,451,933 | $ | 67,542,836 | ||||||
| Accumulated net investment loss at end of period | $ | (418,712 | ) | $ | (8,628 | ) | ||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 11,301,140 | $ | 5,031,553 | ||||||
| Proceeds from shares issued from class conversion (a) | – | 11,191,304 | ||||||||
| Dividends reinvested | 250,622 | 225,668 | ||||||||
| Cost of shares redeemed (b) | (11,696,284 | ) | (2,478,691 | ) | ||||||
| Total Class A | (144,522 | ) | 13,969,834 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 1,987,000 | 496,269 | ||||||||
| Dividends reinvested | 13,634 | 6,669 | ||||||||
| Cost of shares redeemed | (383,323 | ) | (218,715 | ) | ||||||
| Total Class C | 1,617,311 | 284,223 | ||||||||
IRA Class Shares (a) | ||||||||||
| Proceeds from shares issued | – | 62,130 | ||||||||
| Dividends reinvested | – | 75,679 | ||||||||
| Cost of shares redeemed in class conversion | – | (11,191,304 | ) | |||||||
| Cost of shares redeemed | – | (892,577 | ) | |||||||
| Total IRA Class | – | (11,946,072 | ) | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective January 30, 2009, IRA Class shares were converted to Class A shares. |
| (b) | Includes redemption fees – see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 123
Statements of Changes in Net Assets (Continued)
| Nationwide Short | ||||||||||
| Duration Bond Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | $ | 162,571 | $ | 225,843 | ||||||
| Dividends reinvested | 18,115 | 26,116 | ||||||||
| Cost of shares redeemed | (191,949 | ) | (231,238 | ) | ||||||
| Total Institutional Class | (11,263 | ) | 20,721 | |||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 4,255,092 | 11,738,713 | ||||||||
| Dividends reinvested | 748,330 | 1,471,781 | ||||||||
| Cost of shares redeemed (b) | (13,107,938 | ) | (25,385,550 | ) | ||||||
| Total Service Class | (8,104,516 | ) | (12,175,056 | ) | ||||||
| Change in net assets from capital transactions | $ | (6,642,990 | ) | $ | (9,846,350 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,110,638 | 498,488 | ||||||||
| Issued in class conversion (a) | – | 1,127,054 | ||||||||
| Reinvested | 24,679 | 22,446 | ||||||||
| Redeemed | (1,153,073 | ) | (246,185 | ) | ||||||
| Total Class A Shares | (17,756 | ) | 1,401,803 | |||||||
Class C Shares | ||||||||||
| Issued | 195,322 | 49,755 | ||||||||
| Reinvested | 1,342 | 664 | ||||||||
| Redeemed | (37,703 | ) | (21,747 | ) | ||||||
| Total Class C Shares | 158,961 | 28,672 | ||||||||
IRA Class Shares (a) | ||||||||||
| Issued | – | 6,259 | ||||||||
| Reinvested | – | 7,668 | ||||||||
| Redeemed | – | (90,828 | ) | |||||||
| Redeemed in class conversion | – | (1,127,008 | ) | |||||||
| Total IRA Class Shares | – | (1,203,909 | ) | |||||||
Institutional Class Shares | ||||||||||
| Issued | 15,944 | 22,456 | ||||||||
| Reinvested | 1,783 | 2,608 | ||||||||
| Redeemed | (18,896 | ) | (22,940 | ) | ||||||
| Total Institutional Class Shares | (1,169 | ) | 2,124 | |||||||
Service Class Shares | ||||||||||
| Issued | 418,636 | 1,179,382 | ||||||||
| Reinvested | 73,684 | 147,315 | ||||||||
| Redeemed | (1,290,490 | ) | (2,537,084 | ) | ||||||
| Total Service Class Shares | (798,170 | ) | (1,210,387 | ) | ||||||
| Total change in shares | (658,134 | ) | (981,697 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective January 30, 2009, IRA Class shares were converted to Class A shares. | |
| (b) | Includes redemption fees – see Note 4 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
124 Semiannual Report 2010
Financial Highlights
(Selected data for each share of capital outstanding throughout the periods indicated)
Nationwide Short Duration Bond Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| And | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Total | Redemption | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | 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, 2010 (Unaudited) (f) | $ | 10 | .21 | 0 | .11 | 0 | .00 | 0 | .11 | (0 | .17) | (0 | .17) | – | $ | 10 | .15 | 1 | .08% | $ | 14,902,429 | 0 | .85% | 2 | .09% | 0 | .93% | 34 | .13% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .85 | 0 | .09 | 0 | .56 | 0 | .65 | (0 | .29) | (0 | .29) | – | $ | 10 | .21 | 6 | .68% | $ | 15,176,169 | 0 | .75% | 0 | .91% | 0 | .94% | 29 | .05% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 9 | .97 | 0 | .33 | (0 | .11) | 0 | .22 | (0 | .35) | (0 | .35) | 0 | .01 | $ | 9 | .85 | 2 | .28% | $ | 835,647 | 0 | .69% | 3 | .16% | 0 | .79% | 29 | .53% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 | $ | 9 | .87 | 0 | .36 | 0 | .11 | 0 | .47 | (0 | .37) | (0 | .37) | – | $ | 9 | .97 | 4 | .86% | $ | 796,804 | 0 | .70% | 3 | .59% | 0 | .80% | 37 | .81% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2006 | $ | 9 | .83 | 0 | .30 | 0 | .07 | 0 | .37 | (0 | .33) | (0 | .33) | – | $ | 9 | .87 | 3 | .87% | $ | 958,610 | 0 | .71% | 3 | .14% | 0 | .81% | 28 | .68% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2005 | $ | 10 | .00 | 0 | .25 | (0 | .15) | 0 | .10 | (0 | .27) | (0 | .27) | – | $ | 9 | .83 | 0 | .98% | $ | 1,016,840 | 0 | .78% | 2 | .40% | 0 | .88% | 292 | .03% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .21 | 0 | .08 | 0 | .00 | 0 | .08 | (0 | .14) | (0 | .14) | – | $ | 10 | .15 | 0 | .81% | $ | 2,134,857 | 1 | .30% | 1 | .58% | 1 | .37% | 34 | .13% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .86 | 0 | .23 | 0 | .36 | 0 | .59 | (0 | .24) | (0 | .24) | – | $ | 10 | .21 | 6 | .04% | $ | 523,771 | 1 | .26% | 2 | .30% | 1 | .43% | 29 | .05% | ||||||||||||||||||||||||||||||||||||||||||
| 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 (g) | $ | 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, 2010 (Unaudited) (f) | $ | 10 | .21 | 0 | .13 | 0 | .00 | 0 | .13 | (0 | .19) | (0 | .19) | – | $ | 10 | .15 | 1 | .25% | $ | 899,590 | 0 | .55% | 2 | .40% | 0 | .63% | 34 | .13% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .86 | 0 | .31 | 0 | .35 | 0 | .66 | (0 | .31) | (0 | .31) | – | $ | 10 | .21 | 6 | .83% | $ | 917,407 | 0 | .51% | 3 | .10% | 0 | .69% | 29 | .05% | ||||||||||||||||||||||||||||||||||||||||||
| 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 | .44% | 3 | .88% | 0 | .54% | 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% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .21 | 0 | .10 | (0 | .01) | 0 | .09 | (0 | .16) | (0 | .16) | – | $ | 10 | .14 | 0 | .91% | �� | $ | 42,515,057 | 0 | .95% | 2 | .01% | 1 | .03% | 34 | .13% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .85 | 0 | .27 | 0 | .36 | 0 | .63 | (0 | .27) | (0 | .27) | – | $ | 10 | .21 | 6 | .52% | $ | 50,925,489 | 0 | .91% | 2 | .73% | 1 | .09% | 29 | .05% | ||||||||||||||||||||||||||||||||||||||||||
| 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 | .85% | 3 | .44% | 0 | .95% | 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% | ||||||||||||||||||||||||||||||||||||||||||
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 28, 2005 (commencement of operations) through October 31, 2005. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 125
Notes to Financial Statements
April 30, 2010 (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 was originally created under the laws of Ohio in 1997 and was redomesticated as a Delaware statutory trust on February 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust has authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2010, the Trust operates thirty-one (31) 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 eight (8) series listed below (each, a “Fund”; collectively, the “Funds”):
| - | Nationwide International Value Fund (“International Value”) | |
| - | Nationwide Large Cap Value Fund (“Large Cap Value”) | |
| - | Nationwide U.S. Small Cap Value Fund (“U.S. Small Cap Value”) | |
| - | Nationwide Value Fund (“Value”) | |
| - | 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 Fund management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. The Funds utilize various methods to measure the fair value of its investments on a recurring basis. All investments in securities are recorded at their estimated fair value as described below in the accompanying notes. 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 last quoted sales price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities 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. Values of 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.
126 Semiannual Report 2010
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 securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following among others: (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 combination of these and other methods. Fair value determinations may also take into account significant events that occur before Valuation Time but after the close of the principal market on which such securities trade that materially affects the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
The Funds are subject to the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codificationtm (“ASC”), “Fair Value Measurements and Disclosures” (ASC 820). This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 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 ASC 820 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 in or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2010:
International Value*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
| Common Stocks | $12,402,663 | $ | 113,206,770 | $ | — | $ | 125,609,433 | |||||||||
| Forward Currency Contracts | — | 731,210 | — | 731,210 | ||||||||||||
| Mutual Fund | 1,929,740 | — | — | 1,929,740 | ||||||||||||
| Preferred Stock | — | 23,770 | — | 23,770 | ||||||||||||
| Repurchase Agreement | — | 21,346,854 | — | 21,346,854 | ||||||||||||
Total Assets | 14,332,403 | 135,308,604 | — | 149,641,007 | ||||||||||||
Liabilities: | ||||||||||||||||
| Forward Currency Contracts | — | (143,784 | ) | — | (143,784 | ) | ||||||||||
Total Liabilities | — | (143,784 | ) | — | (143,784 | ) | ||||||||||
Total | $14,332,403 | $ | 135,164,820 | $ | — | $ | 149,497,223 | |||||||||
2010 Semiannual Report 127
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Large Cap Value*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 16,917,365 | $ | — | $ | — | $ | 16,917,365 | ||||||||||
| Mutual Fund | 24,281 | — | — | 24,281 | ||||||||||||||
Total | $ | 16,941,646 | $ | — | $ | — | $ | 16,941,646 | ||||||||||
U.S. Small Cap Value*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 39,713,269 | $ | — | $ | 750 | $ | 39,714,019 | ||||||||||
| Mutual Fund | 1,593,593 | — | — | 1,593,593 | ||||||||||||||
Total | $ | 41,306,862 | $ | — | $ | 750 | $ | 41,307,612 | ||||||||||
Value*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 2,025,674 | $ | — | $ | — | $ | 2,025,674 | ||||||||||
| Mutual Fund | 97,145 | — | — | 97,145 | ||||||||||||||
Total | $ | 2,122,819 | $ | — | $ | — | $ | 2,122,819 | ||||||||||
Bond*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Asset-Backed Securities | $ | — | $ | 1,709,590 | $ | — | $ | 1,709,590 | ||||||||||
| Collateralized Mortgage Obligations | — | 15,728,402 | — | 15,728,402 | ||||||||||||||
| Commercial Mortgage Backed Securities | — | 6,484,540 | — | 6,484,540 | ||||||||||||||
| Corporate Bonds | — | 31,881,885 | — | 31,881,885 | ||||||||||||||
| Municipal Bonds | — | 738,814 | — | 738,814 | ||||||||||||||
| Mutual Fund | 3,306,006 | — | — | 3,306,006 | ||||||||||||||
| Sovereign Bond | — | 498,687 | — | 498,687 | ||||||||||||||
| U.S. Government Mortgage Backed Agencies | — | 7,740,118 | — | 7,740,118 | ||||||||||||||
| U.S. Government Sponsored & Agency Obligation | — | 4,070,868 | — | 4,070,868 | ||||||||||||||
| U.S. Treasury Bonds | — | 5,950,709 | — | 5,950,709 | ||||||||||||||
| U.S. Treasury Notes | — | 9,121,090 | — | 9,121,090 | ||||||||||||||
| Yankee Dollar | — | 1,084,689 | — | 1,084,689 | ||||||||||||||
Total | $ | 3,306,006 | $ | 85,009,392 | $ | — | $ | 88,315,398 | ||||||||||
128 Semiannual Report 2010
Enhanced Income*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Asset-Backed Securities | $ | — | $ | 60,307,479 | $ | — | $ | 60,307,479 | ||||||||||
| Collateralized Mortgage Obligations | — | 62,164,647 | — | 62,164,647 | ||||||||||||||
| Commercial Mortgage Backed Securities | — | 6,554,388 | — | 6,554,388 | ||||||||||||||
| Corporate Bonds | — | 72,456,848 | — | 72,456,848 | ||||||||||||||
| Mutual Fund | 17,044,303 | — | — | 17,044,303 | ||||||||||||||
| Sovereign Bond | — | 8,960,417 | — | 8,960,417 | ||||||||||||||
| U.S. Government Mortgage Backed Agencies | — | 2,402,527 | — | 2,402,527 | ||||||||||||||
| U.S. Government Sponsored & Agency Obligations | — | 10,041,410 | — | 10,041,410 | ||||||||||||||
| U.S. Treasury Note | — | 4,018,436 | — | 4,018,436 | ||||||||||||||
| Yankee Dollar | — | 688,379 | — | 688,379 | ||||||||||||||
Total | $ | 17,044,303 | $ | 227,594,531 | $ | — | $ | 244,638,834 | ||||||||||
Government Bond*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Collateralized Mortgage Obligations | $ | — | $ | 29,526,135 | $ | — | $ | 29,526,135 | ||||||||||
| Mutual Fund | 8,698,771 | — | — | 8,698,771 | ||||||||||||||
| U.S. Government Mortgage Backed Agencies | — | 52,508,472 | — | 52,508,472 | ||||||||||||||
| U.S. Government Sponsored & Agency Obligations | — | 7,905,043 | — | 7,905,043 | ||||||||||||||
| U.S. Treasury Bond | — | 29,203,125 | — | 29,203,125 | ||||||||||||||
| U.S. Treasury Notes | — | 22,625,320 | — | 22,625,320 | ||||||||||||||
Total | $ | 8,698,771 | $ | 141,768,095 | $ | — | $ | 150,466,866 | ||||||||||
Short Duration Bond*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Asset-Backed Securities | $ | — | $ | 14,089,876 | $ | — | $ | 14,089,876 | ||||||||||
| Collateralized Mortgage Obligations | — | 3,357,636 | — | 3,357,636 | ||||||||||||||
| Commercial Mortgage Backed Securities | — | 7,149,674 | — | 7,149,674 | ||||||||||||||
| Corporate Bonds | — | 13,716,967 | — | 13,716,967 | ||||||||||||||
| Mutual Fund | 1,579,604 | — | — | 1,579,604 | ||||||||||||||
| Sovereign Bond | — | 579,246 | — | 579,246 | ||||||||||||||
| U.S. Government Sponsored & Agency Obligations | — | 4,095,633 | — | 4,095,633 | ||||||||||||||
| U.S. Treasury Notes | — | 16,274,670 | — | 16,274,670 | ||||||||||||||
Total | $ | 1,579,604 | $ | 59,263,702 | $ | — | $ | 60,843,306 | ||||||||||
2010 Semiannual Report 129
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
International Value
| Rights | ||||||
| Balance as of 10/31/09 | $ | — | ||||
| Accrued Accretion/(Amortization) | — | |||||
| Change In Unrealized Appreciation/Depreciation | — | |||||
| Net Purchases/(Sales) | — | |||||
| Transfers In/(Out) of Level 3 | — | |||||
| Balance as of 4/30/10 | $ | — | ||||
U.S. Small Cap Value
| Rights | ||||||
| Balance as of 10/31/09 | $ | — | ||||
| Accrued Accretion/(Amortization) | — | |||||
| Change In Unrealized Appreciation/Depreciation | — | |||||
| Net Purchases/(Sales) | — | |||||
| Transfers In/(Out) of Level 3 | 750 | |||||
| Balance as of 4/30/10 | $ | 750 | ||||
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
| * | See Statement of Investments for identification of securities by type and industry classification. |
| (b) | Credit Derivatives |
The Funds are subject to the provisions of ASC 815, “Derivatives and Hedging”. In September 2008, the FASB amended ASC 815-10. ASC 815-10, which is intended to improve disclosures about credit derivatives by requiring more information about the potential adverse effects of changes in credit risk on the financial position, financial performance, and cash flows of the sellers of credit derivatives, requires financial disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments and disclosures of the current status of the payment performance risk of a guarantee. Fund management has concluded that adoption of the amendments did not impact the Funds’ financial statement disclosures.
| (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, receipts of income, and payments of 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 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.
130 Semiannual Report 2010
| (d) | Forward Foreign Currency Contracts |
Certain Funds are subject to foreign currency exchange risk in the normal course of pursuing their objectives. Funds may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. 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. A forward foreign currency contract is 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. When a Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
| (e) | Futures Contracts |
Certain Funds are subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Funds may also enter into futures contracts for non-hedging purposes. If a Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. 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 futures contract’s notional value. Under a futures contract, a Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, know as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract and are recognized by a Fund as unrealized gains or losses. 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 or amount 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. When a futures contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
Should market conditions change unexpectedly, a 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 the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to a Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contacts against defaults.
2010 Semiannual Report 131
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
Fair Values of Derivative Instruments as of April 30, 2010
International Value
Derivatives not accounted for as hedging instruments under ASC 815
| Statement of Assets and Liabilities Location | ||||||||||
| Assets: | Asset Derivatives | Fair Value | ||||||||
| Forward foreign currency contracts | Receivables—Unrealized appreciation on forward foreign currency contracts | $ | 731,210 | |||||||
| Total | $ | 731,210 | ||||||||
| Liabilities: | Liability Derivatives | |||||||||
| Forward foreign currency contracts | Payables—Unrealized depreciation on forward foreign currency contracts | $ | (143,784 | ) | ||||||
| Total | $ | (143,784 | ) | |||||||
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended April 30, 2010
International Value
| Realized Gain (Loss) | ||||||||
| Risk Exposure | Total | |||||||
| Forward foreign currency contracts | $ | 1,143,739 | ||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Operations for the Six Months Ended April 30, 2010
International Value
| Unrealized Appreciation (Depreciation) | ||||||||
| Risk Exposure | Total | |||||||
| Forward foreign currency contracts | $ | 577,459 | ||||||
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended April 30, 2010.
| (f) | 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
132 Semiannual Report 2010
interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Funds may be unable to recover the full amount it paid under the repurchase agreements. 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.
| (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 portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Funds’ securities lending standards and guidelines require that the borrower (1) deliver 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 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 Fund’s 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, N.A. serves as securities lending agent for the securities lending program of the Funds. JPMorgan Chase Bank, N.A. 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, 2010, the following Fund had securities with the following values on loan:
| Value of | Value of | |||||||||||
| Fund | Loaned Securities | Collateral | ||||||||||
| International Value | $ | 20,393,933 | $ | 21,346,854 | ||||||||
| (i) | 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, and Value and are declared daily and paid monthly for all other Funds. For all Funds, distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for
2010 Semiannual Report 133
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
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 a return of capital distribution.
| (j) | Federal Income Taxes |
It is the policy of each Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the U.S. 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 Funds are subject to the provisions of ASC 740, “Income Taxes.” In July 2006, the FASB amended ASC 740-10. ASC 740-10 provides guidance regarding how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740-10 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 Fund could 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 benefits to recognize in the financial statements. Differences 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 2006 to 2009 remain subject to examination by the Internal Revenue Service.
Fund management has evaluated the implications of ASC 740-10 and has concluded that there is no impact to the Funds’ current financial statements. ASC 740-10 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 proportionally among various or all series of the Trust. For each Fund, income, Fund expenses, and realized and unrealized gains or losses are allocated to each class of shares of the Fund based on the value of the shares of that class outstanding relative to the total value of the outstanding shares of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) 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 has selected the subadviser of each of the Funds as noted below, and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of each subadviser.
134 Semiannual Report 2010
The subadviser for each Fund is as follows:
| Fund | Subadviser | |||||
| International Value | AllianceBernstein LP | |||||
| Large Cap Value | NorthPointe Capital, LLC | |||||
| U.S. Small Cap Value | Dimensional Fund Advisors LP | |||||
| Value | Diamond Hill Capital Management, Inc. | |||||
| Bond | Nationwide Asset Management, LLC (“NWAM”) (a) | |||||
| Enhanced Income | Morley Capital Management, Inc. (“Morley”) | |||||
| Government Bond | NWAM | |||||
| Short Duration Bond | Morley | |||||
| (a) | Nationwide Asset Management, LLC is an affiliate of NFA. |
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. For the six months ended April 30, 2010, the Funds paid investment advisory fees to NFA according to the schedule below:
| Total Fees | |||||||||
| Fund | Fee Schedule | (Annual Rate) | |||||||
| 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 | % | ||||||
| Bond and Government Bond | Up to $250 million | 0.50 | % | ||||||
| $250 million up to $1 billion | 0.475 | % | |||||||
| $1 billion up to $2 billion | 0.45 | % | |||||||
| $2 billion up to $5 billion | 0.425 | % | |||||||
| On $5 billion and more | 0.40 | % | |||||||
| Enhanced Income and Short Duration Bond | Up to $500 million | 0.35 | % | ||||||
| $500 million up to $1 billion | 0.34 | % | |||||||
| $1 billion up to $3 billion | 0.325 | % | |||||||
| $3 billion up to $5 billion | 0.30 | % | |||||||
| $5 billion up to $10 billion | 0.285 | % | |||||||
| On $10 billion and more | 0.275 | % | |||||||
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadvisers. NFA paid the subadvisers $699,643, of which $210,833 was paid to an affiliated subadviser, for the six months ended April 30, 2010.
2010 Semiannual Report 135
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Funds’ identified below operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding the amounts listed in the table below until at least February 28, 2011:
| Amount | ||||||||||||
| Fund | Classes | (Annual Rate) | ||||||||||
| 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 | % | |||||||||
| Bond | All Classes | 0.75 | % | |||||||||
| Enhanced Income | All Classes | 0.45 | % | |||||||||
| Short Duration Bond | All Classes | 0.55 | % | |||||||||
NFA may request and receive reimbursement from the Funds for advisory fees waived and other expenses reimbursed by NFA pursuant to the Expense Limitation Agreement at a date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA.
As of April 30, 2010, the cumulative potential reimbursements of the following Funds, listed by the year in which NFA waived or reimbursed fees or expenses to a Fund, were:
| Fiscal Year | Fiscal Year | Six Months Ended | ||||||||||||
| 2008 | 2009 | April 30, 2010 | ||||||||||||
| Fund | Amount | Amount | Amount | |||||||||||
| International Value | $ | 70,312 | (a) | $ | 17,085 | $ | 27,006 | |||||||
| Large Cap Value | 7,575 | 64,076 | 19,811 | |||||||||||
| U.S. Small Cap Value | 50,475 | (a) | 83,922 | 36,770 | ||||||||||
| Value | 36,145 | (b) | 74,288 | 26,889 | ||||||||||
| Bond | — | (a) | 58,134 | 24,858 | ||||||||||
| Enhanced Income | 115,330 | 34,196 | 84,249 | |||||||||||
| Short Duration Bond | — | 125,533 | 24,607 | |||||||||||
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. |
NFA has committed to limit its actual recoupment to 50% (of the amounts shown above) of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010.
Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly-owned subsidiary of NFS), provides various administrative and accounting services for the Funds and serves as Transfer and Dividend Disbursing Agent for the Funds. For the period ended April 30, 2010, pursuant to a Fund Administration and Transfer Agency Agreement, fees for such services were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionally among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
136 Semiannual Report 2010
| 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. |
In addition, the Funds also pay out-of-pocket expenses reasonably incurred by NFM in providing services to the Funds, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees (“Networking Fees”) paid to broker-dealers that provide sub-accounting the sub-transfer agency services to their customers who are Fund shareholders (“beneficial accounts”). Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided, the Networking Fees range from $6 to $20 per beneficial account per year.
See “Subsequent Events” (Note 11) below for information on fund administration and transfer agency arrangements for the Funds after April 30, 2010.
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Funds. The Funds did not pay any additional fee for these services.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may 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 inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class A, Class D, Class R2 and Institutional Service Class shares of each of the Funds (except 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 for the Fund’s Class A and Service Class shares.
2010 Semiannual Report 137
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
For the six months ended April 30, 2010, NFS received the following amounts in Administrative Services fees from each Fund:
| Fund | Amount | |||||||
| International Value | $ | 168,241 | ||||||
| Large Cap Value | 5,718 | |||||||
| U.S. Small Cap Value | 35,282 | |||||||
| Value | — | |||||||
| Bond | 22,267 | |||||||
| Enhanced Income | 767 | |||||||
| Government Bond | 76,781 | |||||||
| Short Duration Bond | 26,664 | |||||||
Amounts designated as “—” are zero or have been rounded to zero.
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM 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, 2010, the Funds’ portion of such costs amounted to $3,545.
Under the terms of a Distribution Plan pursuant to 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 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 | |||||||||||||||||
| International Value | 0.25 | % | N/A | 1.00 | % | N/A | N/A | |||||||||||||||
| Large Cap Value | 0.25 | % | 1.00 | % | 1.00 | % | 0.50 | % | N/A | |||||||||||||
| U.S. Small Cap Value | 0.25 | % | N/A | 1.00 | % | N/A | N/A | |||||||||||||||
| Value | 0.25 | % | N/A | 1.00 | % | 0.50 | % | N/A | ||||||||||||||
| Bond | 0.25 | % | 1.00 | % | 1.00 | % | 0.50 | % | N/A | |||||||||||||
| Enhanced Income | 0.25 | % | N/A | N/A | 0.50 | % | N/A | |||||||||||||||
| Government Bond | 0.25 | % | 1.00 | % | 1.00 | % | 0.50 | % | N/A | |||||||||||||
| Short Duration Bond | 0.25 | % | N/A | 0.75 | % | N/A | 0.25 | % | ||||||||||||||
N/A — Not Applicable
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A and Class D shares. These fees are deducted from and are not included in proceeds from sales of Class A and Class D shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A and Class D shares of the Funds. NFD also receives fees for services as principal underwriter for Class B shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B shares, which may cause the current value of a shareholder’s account to fall below the total purchase payments. A CDSC will be imposed on redemptions of Class B shares made within six years of purchase. Class C shares have a CDSC of 1% imposed on redemptions made within one year of purchase. For the six months ended April 30, 2010, NFD received commissions of $75,356 from front-end sales charges of Class A and Class D shares and from CDSCs from
138 Semiannual Report 2010
Class B and Class C shares of the Funds, of which $16,323 was re-allowed to affiliated broker-dealers of the Funds.
As of April 30, 2010, the Adviser or affiliates of the Adviser directly held the percentage indicated below of the shares outstanding of the applicable Fund:
| % of Shares | ||||||||
| Fund | Outstanding Owned | |||||||
| International Value | 90.90 | % | ||||||
| Large Cap Value | 33.56 | |||||||
| U.S. Small Cap Value | 89.62 | |||||||
| Value | 40.89 | |||||||
| Bond | — | |||||||
| Enhanced Income | 97.70 | |||||||
| Government Bond | 33.58 | |||||||
| Short Duration Bond | 3.30 | |||||||
4. Redemption Fees
The Funds (except for Enhanced Income) assess a 2.00% redemption fee on all classes of shares that are sold or exchanged within the minimum holding period: 30 calendar days from the date of purchase for Large Cap Value and Value; 90 calendar days for International Value and U.S. Small Cap Value; and within seven calendar days for Bond, Government Bond, and Short Duration Bond. The redemption fee, if any, is paid directly to the applicable Fund class and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through automatically reinvested dividends or capital gains.
For the six months ended April 30, 2010, the Funds had contributions to capital due to the collection of redemption fees in the amounts of:
| Institutional | Institutional | Service | ||||||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class D | Class R2 | Class | Service Class | Class | ||||||||||||||||||||||||||
| International Value | $ | 57 | N/A | $ | — | N/A | N/A | $ | — | $ | — | N/A | ||||||||||||||||||||||
| Large Cap Value | — | $ | — | — | N/A | $ | — | N/A | N/A | N/A | ||||||||||||||||||||||||
| U.S. Small Cap Value | — | N/A | — | N/A | N/A | — | — | N/A | ||||||||||||||||||||||||||
| Value | $ | 3 | N/A | — | N/A | — | — | N/A | N/A | |||||||||||||||||||||||||
| Bond | — | — | — | $ | 1 | — | N/A | N/A | N/A | |||||||||||||||||||||||||
| Government Bond | — | — | — | $ | 3 | — | — | N/A | N/A | |||||||||||||||||||||||||
| Short Duration Bond | 205 | N/A | — | N/A | N/A | — | N/A | $ | 2 | |||||||||||||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
N/A — Not Applicable
2010 Semiannual Report 139
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
For the year ended October 31, 2009, the Funds had contributions to capital due to the collection of 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 | $ | — | N/A | $ | — | N/A | N/A | $ | — | $ | — | N/A | ||||||||||||||||||||||
| Large Cap Value | 541 | $ | 9 | 7 | N/A | $ | — | N/A | N/A | N/A | ||||||||||||||||||||||||
| U.S. Small Cap Value | — | N/A | 26 | N/A | N/A | — | — | N/A | ||||||||||||||||||||||||||
| Value | 21 | N/A | — | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||||
| Bond | 3 | — | 360 | $ | 39 | — | N/A | N/A | N/A | |||||||||||||||||||||||||
| Government Bond | 3 | — | 116 | 1 | — | — | N/A | N/A | ||||||||||||||||||||||||||
| Short Duration Bond | 1,080 | N/A | — | N/A | N/A | — | N/A | $ | 8 | |||||||||||||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
N/A — Not Applicable
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.14% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by a Fund 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 the Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended April 30, 2010.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Funds and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. 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 those series of the Trust 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.
140 Semiannual Report 2010
6. Investment Transactions
For the six months ended April 30, 2010, purchases of and sales (excluding short-term securities) were as follows:
| Fund | Purchases | Sales | ||||||||||
| International Value | $ | 38,111,462 | $ | 43,273,337 | ||||||||
| Large Cap Value | 6,691,333 | 8,168,538 | ||||||||||
| U.S. Small Cap Value | 9,506,369 | 3,463,412 | ||||||||||
| Value | 354,920 | 191,424 | ||||||||||
| Bond | 13,682,062 | 9,791,033 | ||||||||||
| Enhanced Income | 94,789,705 | 66,214,767 | ||||||||||
| Government Bond | 74,305,643 | 85,873,817 | ||||||||||
| Short Duration Bond | 21,210,549 | 25,702,066 | ||||||||||
For the six months ended April 30, 2010, purchases and sales of U.S. Government Securities were as follows:
| Fund | Purchases | Sales | ||||||||||
| Bond | $ | 3,739,508 | $ | — | ||||||||
| Enhanced Income | — | 15,000,000 | ||||||||||
| Government Bond | 52,146,803 | 21,653,621 | ||||||||||
| Short Duration Bond | 13,793,401 | 15,621,914 | ||||||||||
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 foreign currency fluctuations, future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that 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 in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and 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 made against the Trust. Based on experience however, the Trust expects the risk of loss to be remote.
2010 Semiannual Report 141
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
9. Other
As of April 30, 2010, 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.
| % of | Number of | |||||||||||
| Fund | Shares | Accounts | ||||||||||
| International Value | 85.69 | % | 2 | |||||||||
| Large Cap Value | 35.67 | 2 | ||||||||||
| U.S. Small Cap Value | 85.31 | 2 | ||||||||||
| Value | 40.08 | 1 | ||||||||||
| Bond | 17.94 | 1 | ||||||||||
| Enhanced Income | 97.70 | 4 | ||||||||||
| Government Bond | 54.86 | 2 | ||||||||||
| Short Duration Bond | 47.80 | 1 | ||||||||||
10. Federal Tax Information
As of April 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund was as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation/ | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| International Value | $ | 157,391,383 | $ | 8,636,113 | $ | (17,117,699) | $ | (8,481,586) | ||||||||||
| Large Cap Value | 15,490,989 | 2,066,462 | (615,805) | 1,450,657 | ||||||||||||||
| U.S. Small Cap Value | 39,130,943 | 6,208,890 | (4,032,221) | 2,176,669 | ||||||||||||||
| Value | 1,907,272 | 245,285 | (29,738) | 215,547 | ||||||||||||||
| Bond | 85,782,903 | 4,153,422 | (1,620,927) | 2,532,495 | ||||||||||||||
| Enhanced Income | 243,735,268 | 1,052,453 | (148,887) | 903,566 | ||||||||||||||
| Government Bond | 145,882,955 | 4,740,873 | (156,962) | 4,583,911 | ||||||||||||||
| Short Duration Bond | 60,032,844 | 851,831 | (41,369) | 810,462 | ||||||||||||||
11. Subsequent Events
Effective May 1, 2010, the Trust entered into a new Joint Fund Administration and Transfer Agency Agreement with NFM. Under the Joint Administration Agreement, NFM is paid an annual fee for fund administration and transfer agency services based on the sum of the following: (i) the amount payable by NFM to its sub-administrator and sub-transfer agent; and (ii) a percentage of the combined average daily net assets of the Trust and Nationwide Variable Insurance Trust, a Delaware statutory trust and registered investment company that is affiliated with the Trust. In addition, the Trust pays out-of-pocket-expenses reasonably incurred by NFM in providing services to the Funds and the Trust, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders. Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided fees for these services may range from $6 to $30 per customer per year.
142 Semiannual Report 2010
Supplemental Information
April 30, 2010 (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 of Trustees (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 January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 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 January 21, 2010 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, 2009) compared with performance groups and performance universes created by Lipper 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, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” 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, 2009, (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) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) 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 January 21, 2010 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 (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 transactions, including the standards and performance in seeking best execution, allocation of soft
2010 Semiannual Report 143
Supplemental Information (Continued)
April 30, 2010 (Unaudited)
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 January 21, 2010 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 prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
Nationwide International Value Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by Nationwide Fund Advisors (“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. The Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2009 was in the fourth quintile of its Peer Universe, and below the performance of its benchmark, the MSCI EAFE Index. The Trustees noted that the Fund has been on the watch list since the fourth quarter of 2008. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. The Trustees also noted that the Fund’s performance has improved over the last six months and exceeded its benchmark over the last three months. The Trustees noted that, for the six-month period ended December 31, 2009, the Fund’s performance was near the top quintile. As was the case upon initial approval of AllianceBernstein, the Trustees took into consideration AllianceBernstein’s performance and services over longer periods regarding the management of comparable accounts.
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 that the Fund’s total expenses were in the first quintile of its Peer Group and that the shareholders of the Fund receive the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees also noted that the Fund’s actual advisory fee was only a few basis points higher than the Peer Group’s median. With respect to economies of scale, the Trustees noted that the Fund invests in a capacity-constrained asset class, which necessarily limits profitability. 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.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
Nationwide Large Cap Value Fund
The Trustees reviewed of 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. The Trustees noted that for each of the one- and three-year periods ended September 30, 2009, the Fund’s performance for Class A shares was in the fifth quintile of its Peer Group. The Trustees also noted that the Fund’s performance for Class A shares was in the fourth quintile of its Peer Group for the five-year period ended September 30, 2009. The Trustees noted that, for each period, the Fund underperformed
144 Semiannual Report 2010
its benchmark, the Russell 1000 Value Index, and that the Fund has been on the watch list since the third quarter of 2009. The Trustees noted that underperformance occurred primarily during the first two quarters of 2009, during a period when NorthPointe’s focus on valuation and earnings quality was not in favor.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the fourth quintile of its Peer Group, and 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 for Class A shares were in the third quintile and at the median of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. 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 indicated that the breakpoints included in the Fund’s 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 Agreement 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. The Trustees noted that for the one-year period ended September 30, 2009, the Fund’s performance for Class A shares was in the second quintile of its Peer Group, and above the performance of the Russell 2000 Value Index, the Fund’s benchmark. In light of the Fund’s relatively short performance history, the Trustees took into consideration Dimensional’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of Dimensional.
The Trustees noted that the Fund’s contractual advisory fee for Class A shares was in the third quintile and at the median of its Peer Group. The Trustees noted that, although the Fund’s actual advisory fee was in the third quintile and higher than the median of its Peer Group, it was in the second quintile of its Peer Universe. The Trustees noted that the Fund’s advisory fee was 12 basis points above the median and ranked 14th out of the 49 funds that comprise the Peer Universe. The Trustees also noted that the Fund’s total expenses for Class A shares were in the first quintile of its Peer Group and six basis points below the median. The Trustees further noted the Fund’s small size. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. 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 Agreement 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. The Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class A shares was in the second quintile of its Peer Group and equal to the performance of its benchmark, the Russell 1000 Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration Diamond Hill’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of Diamond Hill.
2010 Semiannual Report 145
Supplemental Information (Continued)
April 30, 2010 (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 first quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the second quintile of its Peer Group, and that shareholders of the Fund receive the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. 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 Fund’s asset levels 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 Agreement 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, 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. The Trustees noted that the Fund’s performance for Class A shares for each of the three- and five-year periods ended September 30, 2009 was in the third quintile and above and equal to the median, respectively, of its Peer Group. The Trustees also noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2009 placed it in the fourth quintile of its Peer Group. The Trustees noted that, for the one-year period, the Fund outperformed its benchmark, the Barclays Capital U.S. Aggregate Bond Index. The Trustees also noted, however, that for the three- and five-year periods ended September 30, 2009, the Fund underperformed its benchmark.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were in the second quintile of its Peer Group, and that the Fund’s total expenses were in the fourth quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative services fees) and an advisory fee waiver. 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 then indicated that the breakpoints included in the Fund’s 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 Agreement 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 Management, Inc., 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. 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, 2009 was in the second quintile of the Fund’s Peer Group, and that for the one- and three-year periods ended September 30, 2009, the Fund’s performance was above 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 the Fund’s performance for Institutional Class shares for the five-year period ended September 30, 2009 was slightly below the benchmark.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Institutional Class shares were 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 the Fund’s expenses and fees were measured against a small peer group (i.e., six other ultra-short obligation funds and an adjustable rate fund) and that the majority of the funds in that group are significantly larger in size. 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
146 Semiannual Report 2010
provided to the Fund. The Trustees noted that the breakpoints included in the Fund’s 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 Agreement 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 Nationwide Asset Management, LLC, 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. 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, 2009 was in the first quintile of its Peer Group. The Trustees noted that, for the three- and five-year periods ended September 30, 2009, the Fund underperformed its benchmark, the Merrill Lynch Government Master Index, but that the Fund outperformed its benchmark for the one-year period.
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 and total expenses were in the fifth 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 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 Agreement 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., 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. The Trustees noted that the Fund’s performance for Class A shares for each of the three- and five-year periods ended September 30, 2009 was in the second quintile of the Fund’s Peer Group, and that the Fund’s performance for Class A shares for the one-year period ended September 30, 2009 was in the third quintile and equal to the median of the Peer Group. The Trustees also noted that, for the one-year period, the Fund outperformed its benchmark, the Merrill Lynch 1-3 Year Treasury Index, but that for each of the three-and five-year periods, the Fund underperformed its benchmark.
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 also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. 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 then indicated that the breakpoints included in the Fund’s 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 Agreement with respect to the Fund should be renewed.
2010 Semiannual Report 147
Management Information
April 30, 2010 (Unaudited)
Officers of the Trust
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Charles E. Allen 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). | 86 | None | ||||||||||
| Paula H.J. Cholmondeley 1947 | Trustee since July 2000 | Ms. Cholmondeley focuses full time on corporate governance. She sits on public company boards and is also on the faculty of the National Association of Corporate Directors. She has served as Chief Executive Officer of Sorrel Group (management consulting company) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | 86 | 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 DeVore 1940 | Trustee since June 1990 | Retired. Dr. DeVore served as the interim President of Greensboro College from 2009 though April 2010. He served as President of Otterbein College from July 1984 through July 2009, and as President of Davis and Elkins College from 1982 through 1984. | 86 | None | ||||||||||
| Phyllis Kay Dryden 1947 | Trustee since December 2004 | Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | 86 | None | ||||||||||
148 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Barbara L. Hennigar 1935 | Trustee since July 2000 | Ms. Hennigar was Executive Vice President of OppenheimerFunds (an asset management company) from October 1992 until June 2000; Chairman of Oppenheimer Funds Services from October 1999 until June 2000; and President and CEO from June 1992 until October 1999. She was previously Board Chair of a non-profit independent school, and is currently an independent trustee and endowment chair of St. Mary’s Academy, an independent school in Denver, CO. | 86 | None | ||||||||||
| Barbara I. Jacobs 1950 | Trustee since December 2004 | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 through 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association-College Retirement Equities Fund). | 86 | None | ||||||||||
| Douglas F. Kridler 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 community foundation that manages over 1,700 individual funds and investments) since February 2002. | 86 | None | ||||||||||
2010 Semiannual Report 149
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| David C. Wetmore 1948 | Trustee since 1995 and Chairman since February 2005 | Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology-oriented investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr. Wetmore served as the Chief Operating Officer, Chief Executive Officer, 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. | 86 | None | ||||||||||
| 1 | Length of time served includes time served with predecessor of the Trust. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years. | |
| 3 | Directorships held in (i) any other investment companies registered under the 1940 Act, (ii) 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 (iii) any company subject to the requirements of Section 15(d) of the Exchange Act. |
150 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Michael S. Spangler 1966 | President and Chief Executive Officer since June 2008 | Mr. Spangler is President and Chief Executive Officer of Nationwide Funds Group, which includes NFA3, Nationwide Fund Management LLC3 and Nationwide Fund Distributors LLC3, and is a Senior Vice President of NFS3. From May 2004-May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. | N/A | �� | N/A | |||||||||
| Stephen T. Grugeon 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. From February 2008-June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006. | N/A | N/A | ||||||||||
| Joseph Finelli 1957 | Treasurer since September 2007 | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3. | N/A | N/A | ||||||||||
| Dorothy Sanders 1955 | Chief Compliance Officer since October 2007 | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). | N/A | N/A | ||||||||||
| Eric E. Miller 1953 | Secretary since December 2002 | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments3. | N/A | N/A | ||||||||||
2010 Semiannual Report 151
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Doff Meyer 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)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. | N/A | N/A | ||||||||||
| Lynnett Berger 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 | ||||||||||
| 1 | Length of time served includes time served with the Trust’s predecessors. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Officer during the past five years. | |
| 3 | These positions are held with an affiliated person or principal underwriter of the Funds. | |
| 4 | 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 Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
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 subadvisers 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 Fund. The Fund’s proxy voting policies and procedures are 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.
152 Semiannual Report 2010
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P.O. Box 5354
Cincinnati, OH 45201-5354
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.
©2010 Nationwide Funds Group.
All rights reserved.
SAR-CORE 6/10
Nationwide Mutual Funds
SemiannualReport
April 30, 2010 (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, 2010 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Target Destination Funds | |||
| 6 | Nationwide Destination 2010 Fund | ||
| 20 | Nationwide Destination 2015 Fund | ||
| 34 | Nationwide Destination 2020 Fund | ||
| 48 | Nationwide Destination 2025 Fund | ||
| 62 | Nationwide Destination 2030 Fund | ||
| 76 | Nationwide Destination 2035 Fund | ||
| 90 | Nationwide Destination 2040 Fund | ||
| 104 | Nationwide Destination 2045 Fund | ||
| 118 | Nationwide Destination 2050 Fund | ||
| 132 | Nationwide Retirement Income Fund | ||
| 146 | Notes to Financial Statements | ||
| 160 | Supplemental Information | ||
| 166 | Management Information | ||
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. The Trust makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
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Message to Shareholders
April 30, 2010
Dear Shareholder,
As I write this letter, we have enjoyed a relatively positive six months of growth in domestic and international equity markets. Since I last wrote to you on October 31, 2009, the Standard & Poor’s 500® (S&P 500) Index has gained 16 percent. In that letter, which accompanied your Funds’ annual report, I noted the signs of recovery but cautioned against unchecked excitement:
“Our opinion is that amid the recent good news, there is cause for caution... As a society, we haven’t displayed greater financial literacy and don’t appear to have learned any financial lessons well. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.”
Perhaps my tone was overly cautious, but in my opinion the dichotomy between the financial markets and our economic well-being still exists. Complicating matters further is the looming debt crisis that, as of this date, is threatening to expand in Europe and certainly has significant consequences. We are not isolated from any of these global issues.
Suffice it to say there is still a lot of instability in the market. At least a portion of the growth enjoyed during the past six months is a function of artificial stimulus provided by U.S. and international governments. We do not yet know if this recent growth is sustainable. The employment picture is also difficult to predict, with jobs growth lagging other economic indicators and many Americans unable to find the full-time employment they seek. While prognosticators are pointing to positive signs on the jobs front, it’s far too early to claim victory.
In times of great uncertainty I believe it is more important than ever to have clear investment goals that you pursue with a consistent strategy. Investment decisions should be based on a well-reasoned approach applied consistently over time and not on emotional reactions to extreme market events. All of this leads me to return to the core principles that have guided our firm:
| • | Always take a long-term approach to investing |
| • | Rely on asset allocation to build consistent diversification |
| • | Prudently and conscientiously look at risk |
We believe that adhering to these principles will help us—and you—to navigate these challenging times. As always, we appreciate your business. Thank you for entrusting your investments to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President and CEO
Nationwide Mutual Funds
President and CEO
Nationwide Mutual Funds
2010 Semiannual Report 1
Important Disclosures
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 information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.
This report and the holdings provided are for informational purposes only, do not constitute advice, and are not intended and should not be relied upon 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 and without notice. 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.
The Funds’ adviser or its employees may have a position in the securities named in this report.
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, which is the vehicle intended to serve investors who are approximately 20 years beyond a fund’s target date, is expected to be the least volatile of the funds due to the Retirement Income Fund’s further reduced exposure to equity securities.
The target date is the approximate date when an investor may choose to retire and/or begin withdrawing from the Fund. The Fund’s principal value is not guaranteed at any time, including at the target date designated in the Fund’s name.
Asset allocation is the process of spreading assets across several different investment styles and asset classes. The purpose is to potentially reduce long-term risk and capture potential profits across various asset classes.
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs). Please see the Funds’ prospectus for information about the specific risks of this type of investment.
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.
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.
Performance
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. 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
2 Semiannual Report 2010
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 Indexes
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.
BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued corporate debt securities with a remaining term to final maturity less than 10 years.
BofA Merrill Lynch (BofAML) 10+ Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued corporate debt securities with a remaining term to final maturity greater than or equal to 10 years.
BofA Merrill Lynch (BofAML) Mortgage Master Index: An unmanaged index that tracks the performance of U.S. dollar-denominated 30-year, 15-year and balloon pass-through mortgage securities having at least $150 million outstanding per generic production year.
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.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in developed markets outside the United States and Canada.
Morningstar® (Mstar) Lifetime Allocation Indexes: A family of unmanaged, multi-asset-class, target-maturity indexes consisting of 13 target-date indexes, each of which is available in five-year intervals and three risk profiles. The index asset allocations adjust over time, reducing equity exposure and shifting toward traditional income-producing investments. The strategic asset allocation of the indexes is based on Ibbotson Associates’ Lifetime Asset Allocation methodology.
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.
2010 Semiannual Report 3
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 |
| • | Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. |
About Nationwide Funds Group (NFG)
Commentary provided by NFG. Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
Based in King of Prussia, 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, LLC (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 Nationwide Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). 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.
Distributor
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406.
4 Semiannual Report 2010
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the semiannual period ended April 30, 2010.
During the fourth quarter of 2009, corporate profits continued to show evidence of improvement, which in turn stoked investor confidence and drove the market rally. “Riskier” assets led the way, albeit at a slower pace than was seen during the second and third quarters of 2009. Positive news persisted throughout the first quarter of 2010, spurring markets to improve and prompting economists to declare that the United States had finally turned the corner and was exiting the “Great Recession.”
While this is very positive news for U.S. consumers, the recovery is expected to be an uneven one with significant headwinds. The rate of unemployment is high and is likely to remain so for the short term. Federal, state and local governments, as well as consumers, are contending with weak balance sheets. Government incentives for new housing purchases have ended. These factors, coupled with a second wave of mortgage resets and the reluctance of banks to lend, lead economic observers to believe that the recovery will be weak and uneven for the foreseeable future.
The equity market is expected to remain choppy, characterized by sharp rallies and sharp declines with equally sharp equity sector rotations. For the semiannual reporting period, large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, returned 15.66% as markets continued to rally. Mid-cap U.S. equities, as measured by the Standard and Poor’s MidCap 400 (S&P 400) Index, returned 25.78%, and small-cap U.S. equities, as measured by the Russell 2000® Index, returned 28.17% for the same time period.
International stocks and international emerging market stocks continued their strong rally in the fourth quarter of 2009, but this rally slowed throughout the first quarter of 2010, impeded by concerns about Greece’s debt situation and the recent strength of the U.S. dollar. As represented by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, emerging market stocks returned 11.57% for the semiannual reporting period. International stocks, as measured by the broad MSCI Europe, Australasia and Far East (MSCI EAFE®) Index, returned 1.19% for the same time period.
During the fourth quarter of 2009, the bond market benefited from the aforementioned improvements in corporate profits that fueled investor confidence. Enthusiasm was tempered, however, during the first quarter of 2010, due to an increase in government debt, continued weakness in U.S. labor markets and growing concerns about European debt (most notably involving Greece, Spain, Portugal and Italy). The Barclays Capital (BARCAP) U.S. Aggregate Bond Index returned 2.54% for the semiannual reporting period. On the corporate bond front, the BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index returned 4.89%, while the BofAML 10+ Year US Corporate Index returned 5.24% for the same time period. In the area of mortgage-related investments, the BofAML Mortgage Master Index returned 2.14% for the same time period.
2010 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, 2010, the Nationwide Destination 2010 Fund (Class A at NAV) returned 7.66% versus 7.59% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2010 Index, and 7.16% for its former benchmark, the Dow Jones (DJ) Target 2010 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2010 Funds (consisting of 181 funds as of April 30, 2010) was 8.30% for the same time period.
*The benchmark for the Nationwide Destination 2010 Fund changed from the Dow Jones (DJ) Target 2010 Index to the Morningstar (Mstar) Lifetime Moderate 2010 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 23% and 7%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear of the returns during the reporting period.
What areas of investment detracted from Fund performance?
The Fund’s investment in the Nationwide Money Market Fund (with a target allocation of 5%) returned 0.00% and provided no meaningful contribution to overall Fund performance. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on money funds (which hold only high-quality, ultra-short-term investments) will continue to be challenged to achieve any sort of return for investors. The Fund’s investment in the SPDR DJ Wilshire International Real Estate ETF (with a target allocation of 1%) returned 3.08% and provided the next-smallest relative contribution to Fund performance. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
6 Semiannual Report 2010
Nationwide Destination 2010 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 23 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 15 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Inflation-Protected Bonds | iShares Barclays TIPS Bond (ETF) | 14 | % | 3.42 | % | 10.59 | % | 4.78 | % | 5.38 | % | 12/4/03 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 10 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Short-Term Bonds | Vanguard Short Term Bond (ETF) | 9 | % | 1.60 | % | 5.04 | % | n/a | 5.63 | % | 4/3/07 | |||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 7 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| International Bonds | Oppenheimer International Bond Fund | 6 | % | 1.35 | % | 18.21 | % | 8.48 | % | 9.70 | % | 9/27/04 | ||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 5 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 3 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Commodities | Credit Suisse Commodity Return Strategy Fund | 3 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| High-Yield Bonds | T. Rowe Price Institutional High Yield Bond Fund | 2 | % | 11.94 | % | 39.26 | % | 7.61 | % | 7.31 | % | 12/31/84 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 1 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 1 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 1 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 7
| Fund Performance | Nationwide Destination 2010 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | ||||||||||||||
| w/o SC2 | 7.66% | 22.85% | -1.93% | |||||||||||
| w/SC3 | 1.43% | 15.77% | -4.08% | |||||||||||
| Class C | ||||||||||||||
| w/o SC2 | 7.40% | 22.26% | -2.57% | |||||||||||
| w/SC4 | 6.40% | 21.26% | -2.57% | |||||||||||
Institutional Service Class5 | 8.06% | 23.46% | -1.69% | |||||||||||
Institutional Class5 | 7.92% | 23.43% | -1.55% | |||||||||||
Class R15 | 7.61% | 22.45% | -2.36% | |||||||||||
Class R25 | 7.68% | 22.61% | -2.20% | |||||||||||
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 | 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
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.13% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.55% | |||||
| Class R2 | 1.40% | |||||
| Institutional Service Class | 0.66% | |||||
| Institutional Class | 0.66% | |||||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2010 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,076.60 | 4.27 | 0.83 | |||||||||||||||
| Hypotheticalc | 1,000.00 | 1,020.68 | 4.16 | 0.83 | ||||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,074.00 | 6.84 | 1.33 | |||||||||||||||
| Hypotheticalc | 1,000.00 | 1,018.20 | 6.66 | 1.33 | ||||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,076.10 | 6.33 | 1.23 | |||||||||||||||
| Hypotheticalc | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,076.80 | 5.56 | 1.08 | |||||||||||||||
| Hypotheticalc | 1,000.00 | 1,019.44 | 5.41 | 1.08 | ||||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,080.60 | 1.91 | 0.37 | |||||||||||||||
| Hypotheticalc | 1,000.00 | 1,022.96 | 1.86 | 0.37 | ||||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,079.20 | 1.70 | 0.33 | |||||||||||||||
| Hypotheticalc | 1,000.00 | 1,023.16 | 1.66 | 0.33 | ||||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 9
| Portfolio Summary | Nationwide Destination 2010 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 48 | .6% | ||
| Fixed Income Funds | 46 | .8% | ||
| Money Market Fund | 5 | .0% | ||
| Liabilities in excess of other assets | (0 | .4)% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 22 | .8% | ||
| Nationwide Bond Index Fund, Institutional Class | 15 | .1% | ||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 14 | .4% | ||
| Nationwide International Index Fund, Institutional Class | 9 | .5% | ||
| Vanguard Short-Term Bond Fund | 9 | .2% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 7 | .0% | ||
| Oppenheimer International Bond Fund, Class Y | 5 | .9% | ||
| Nationwide Money Market Fund, Institutional Class | 5 | .0% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 3 | .1% | ||
| Credit Suisse Commodity Return Strategy Fund | 3 | .0% | ||
| Other Holdings | 5 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
10 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2010 Fund
| Mutual Funds 73.7% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 45.6% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 105,615 | $ | 882,938 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 404,096 | 2,820,590 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 152,581 | 2,081,209 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 675,762 | 6,744,103 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 81,986 | 900,203 | ||||||
Total Equity Funds (cost $10,969,040) | 13,429,043 | |||||||
Fixed Income Funds 23.1% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 398,360 | 4,457,644 | ||||||
| Oppenheimer International Bond Fund, Class Y | 273,630 | 1,762,180 | ||||||
| T. Rowe Price High Yield Bond Fund | 61,363 | 600,745 | ||||||
| Total Fixed Income Funds (cost $6,537,869) | 6,820,569 | |||||||
Money Market Fund 5.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 1,477,770 | 1,477,770 | ||||||
Total Money Market Fund (cost $1,477,770) | 1,477,770 | |||||||
Total Mutual Funds (cost $18,984,679) | 21,727,382 | |||||||
| Exchange Traded Funds 26.7% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 3.0% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 8,342 | $ | 294,973 | |||||
| Vanguard Emerging Markets Fund | 6,939 | 291,854 | ||||||
| Vanguard REIT Fund | 5,785 | 302,556 | ||||||
Total Equity Funds (cost $663,655) | 889,383 | |||||||
Fixed Income Funds 23.7% | ||||||||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 40,319 | 4,276,233 | ||||||
| Vanguard Short-Term Bond Fund | 33,837 | 2,713,728 | ||||||
Total Fixed Income Funds (cost $6,778,098) | 6,989,961 | |||||||
Total Exchange Traded Funds (cost $7,441,753) | 7,879,344 | |||||||
Total Investments (cost $26,426,432) (c) — 100.4% | 29,606,726 | |||||||
Liabilities in excess of other assets — (0.4)% | (122,839 | ) | ||||||
NET ASSETS — 100.0% | $ | 29,483,887 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 11
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2010 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $15,968,957) | $ | 18,481,519 | |||
| Investments in non-affiliates, at value (cost $10,457,475) | 11,125,207 | ||||
| Total Investments | 29,606,726 | ||||
| Cash | 12,441 | ||||
| Interest and dividends receivable | 19,509 | ||||
| Receivable for investments sold | 344,869 | ||||
| Receivable for capital shares issued | 15,873 | ||||
| Prepaid expenses and other assets | 144 | ||||
| Total Assets | 29,999,562 | ||||
Liabilities: | |||||
| Payable for investments purchased | 12,389 | ||||
| Payable for capital shares redeemed | 481,913 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 8,106 | ||||
| Distribution fees | 9,683 | ||||
| Administrative servicing fees | 3,584 | ||||
| Total Liabilities | 515,675 | ||||
Net Assets | $ | 29,483,887 | |||
Represented by: | |||||
| Capital | $ | 27,656,891 | |||
| Accumulated undistributed net investment income | 38,143 | ||||
| Accumulated net realized losses from investment transactions | (1,391,441 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 2,512,562 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 667,732 | ||||
Net Assets | $ | 29,483,887 | |||
Net Assets: | |||||
| Class A Shares | $ | 7,966,580 | |||
| Class C Shares | 79,651 | ||||
| Class R1 Shares | 2,201,349 | ||||
| Class R2 Shares | 15,981,204 | ||||
| Institutional Service Class Shares | 1,053 | ||||
| Institutional Class Shares | 3,254,050 | ||||
| Total | $ | 29,483,887 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 899,641 | ||||
| Class C Shares | 9,015 | ||||
| Class R1 Shares | 249,082 | ||||
| Class R2 Shares | 1,808,233 | ||||
| Institutional Service Class Shares | 119 | ||||
| Institutional Class Shares | 367,021 | ||||
| Total | 3,333,111 | ||||
The accompanying notes are an integral part of these financial statements.
12 Semiannual Report 2010
| 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 | $ | 8.86 | |||
| Class C Shares (a) | $ | 8.84 | |||
| Class R1 Shares | $ | 8.84 | |||
| Class R2 Shares | $ | 8.84 | |||
| Institutional Service Class Shares | $ | 8.85 | |||
| Institutional Class Shares | $ | 8.87 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.40 | |||
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.
2010 Semiannual Report 13
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2010 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 6 | |||
| Dividend income from affiliates | �� | 180,776 | |||
| Dividend income from non-affiliates | 192,523 | ||||
| Total Income | 373,305 | ||||
EXPENSES: | |||||
| Investment advisory fees | 44,342 | ||||
| Distribution fees Class A | 7,713 | ||||
| Distribution fees Class C | 390 | ||||
| Distribution fees Class R1 | 9,227 | ||||
| Distribution fees Class R2 | 35,363 | ||||
| Administrative servicing fees Class A | 7,713 | ||||
| Administrative servicing fees Class R1 | 3,549 | ||||
| Administrative servicing fees Class R2 | 17,682 | ||||
| Total Expenses | 125,979 | ||||
NET INVESTMENT INCOME | 247,326 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying non-affiliated funds | 10,563 | ||||
| Net realized gains from investment transactions with affiliates | 379,080 | ||||
| Net realized gains from investment transactions with non-affiliates | 100,383 | ||||
| Net realized gains from affiliated and non-affiliated investments | 490,026 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 1,079,074 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 85,915 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,164,989 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 1,655,015 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,902,341 | |||
The accompanying notes are an integral part of these financial statements.
14 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2010 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 247,326 | $ | 322,692 | ||||||
| Net realized gains/(losses) from investment transactions | 490,026 | (1,632,179 | ) | |||||||
| Net change in unrealized appreciation from investments | 1,164,989 | 3,906,322 | ||||||||
| Change in net assets resulting from operations | 1,902,341 | 2,596,835 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (38,734 | ) | (45,028 | ) | ||||||
| Class C | (555 | ) | (775 | ) | ||||||
| Class R1 | (24,112 | ) | (35,172 | ) | ||||||
| Class R2 | (112,839 | ) | (177,684 | ) | ||||||
| Institutional Service Class | (11 | ) | (22 | ) | ||||||
| Institutional Class | (47,235 | ) | (65,634 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (2,080 | ) | |||||||
| Class C | – | (4 | ) | |||||||
| Class R1 | – | (5,819 | ) | |||||||
| Class R2 | – | (32,152 | ) | |||||||
| Institutional Service Class | – | (4 | ) | |||||||
| Institutional Class | – | (6,543 | ) | |||||||
| Change in net assets from shareholder distributions | (223,486 | ) | (370,917 | ) | ||||||
| Change in net assets from capital transactions | 5,756,039 | 11,004,764 | ||||||||
| Change in net assets | 7,434,894 | 13,230,682 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 22,048,993 | 8,818,311 | ||||||||
| End of period | $ | 29,483,887 | $ | 22,048,993 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 38,143 | $ | 14,303 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 4,706,184 | $ | 3,136,995 | ||||||
| Dividends reinvested | 38,734 | 47,108 | ||||||||
| Cost of shares redeemed | (605,493 | ) | (595,155 | ) | ||||||
| Total Class A | 4,139,425 | 2,588,948 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 1 | 70,227 | ||||||||
| Dividends reinvested | 555 | 779 | ||||||||
| Cost of shares redeemed | (3,237 | ) | (3,011 | ) | ||||||
| Total Class C | (2,681 | ) | 67,995 | |||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 683,094 | 1,834,881 | ||||||||
| Dividends reinvested | 24,112 | 40,991 | ||||||||
| Cost of shares redeemed | $ | (1,243,128 | ) | $ | (706,768 | ) | ||||
| Total Class R1 | (535,922 | ) | 1,169,104 | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 15
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2010 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 4,595,250 | $ | 6,138,897 | ||||||
| Dividends reinvested | 112,839 | 209,836 | ||||||||
| Cost of shares redeemed | (1,738,220 | ) | (1,695,412 | ) | ||||||
| Total Class R2 | 2,969,869 | 4,653,321 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 1,000 | – | ||||||||
| Dividends reinvested | 11 | 26 | ||||||||
| Cost of shares redeemed | (910 | ) | – | |||||||
| Total Institutional Service Class | 101 | 26 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 483,719 | 3,502,179 | ||||||||
| Dividends reinvested | 47,235 | 72,177 | ||||||||
| Cost of shares redeemed | (1,345,707 | ) | (1,048,986 | ) | ||||||
| Total Institutional Class | (814,753 | ) | 2,525,370 | |||||||
| Change in net assets from capital transactions | $ | 5,756,039 | $ | 11,004,764 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 551,074 | 435,396 | ||||||||
| Reinvested | 4,513 | 6,151 | ||||||||
| Redeemed | (71,246 | ) | (77,481 | ) | ||||||
| Total Class A Shares | 484,341 | 364,066 | ||||||||
Class C Shares | ||||||||||
| Issued | – | 9,496 | ||||||||
| Reinvested | 65 | 101 | ||||||||
| Redeemed | (381 | ) | (368 | ) | ||||||
| Total Class C Shares | (316 | ) | 9,229 | |||||||
Class R1 Shares | ||||||||||
| Issued | 79,602 | 244,981 | ||||||||
| Reinvested | 2,834 | 5,426 | ||||||||
| Redeemed | (142,686 | ) | (94,679 | ) | ||||||
| Total Class R1 Shares | (60,250 | ) | 155,728 | |||||||
Class R2 Shares | ||||||||||
| Issued | 532,608 | 832,814 | ||||||||
| Reinvested | 13,236 | 27,788 | ||||||||
| Redeemed | (200,420 | ) | (226,113 | ) | ||||||
| Total Class R2 Shares | 345,424 | 634,489 | ||||||||
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 2010
| Nationwide Destination 2010 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 119 | – | ||||||||
| Reinvested | 1 | 4 | ||||||||
| Redeemed | (108 | ) | – | |||||||
| Total Institutional Service Class Shares | 12 | 4 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 56,571 | 462,403 | ||||||||
| Reinvested | 5,517 | 9,410 | ||||||||
| Redeemed | (157,613 | ) | (140,377 | ) | ||||||
| Total Institutional Class Shares | (95,525 | ) | 331,436 | |||||||
| Total change in shares | 673,686 | 1,494,952 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 17
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2010 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Ratio of 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, 2010 (Unaudited)(f) | $ | 8 | .30 | 0 | .07 | 0 | .57 | 0 | .64 | (0 | .08) | – | (0 | .08) | $ | 8 | .86 | 7 | .66% | $ | 7,966,580 | 0 | .83% | 1 | .54% | 0 | .83% | 17 | .96% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .59 | 0 | .16 | 0 | .77 | 0 | .93 | (0 | .18) | (0 | .04) | (0 | .22) | $ | 8 | .30 | 12 | .58% | $ | 3,447,414 | 0 | .83% | 2 | .10% | 0 | .83% | 35 | .33% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .28 | 0 | .07 | 0 | .55 | 0 | .62 | (0 | .06) | – | (0 | .06) | $ | 8 | .84 | 7 | .40% | $ | 79,651 | 1 | .33% | 1 | .70% | 1 | .33% | 17 | .96% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .58 | 0 | .13 | 0 | .75 | 0 | .88 | (0 | .14) | (0 | .04) | (0 | .18) | $ | 8 | .28 | 11 | .87% | $ | 77,251 | 1 | .32% | 1 | .62% | 1 | .32% | 35 | .33% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .28 | 0 | .08 | 0 | .55 | 0 | .63 | (0 | .07) | – | (0 | .07) | $ | 8 | .84 | 7 | .61% | $ | 2,201,349 | 1 | .23% | 1 | .90% | 1 | .23% | 17 | .96% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .58 | 0 | .14 | 0 | .75 | 0 | .89 | (0 | .15) | (0 | .04) | (0 | .19) | $ | 8 | .28 | 12 | .10% | $ | 2,562,514 | 1 | .23% | 1 | .83% | 1 | .23% | 35 | .33% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .28 | 0 | .08 | 0 | .55 | 0 | .63 | (0 | .07) | – | (0 | .07) | $ | 8 | .84 | 7 | .68% | $ | 15,981,204 | 1 | .08% | 1 | .85% | 1 | .08% | 17 | .96% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .57 | 0 | .15 | 0 | .75 | 0 | .90 | (0 | .15) | (0 | .04) | (0 | .19) | $ | 8 | .28 | 12 | .14% | $ | 12,117,057 | 1 | .08% | 1 | .97% | 1 | .08% | 35 | .33% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
18 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2010 Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Ratio of 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 Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 8 | .30 | 0 | .11 | 0 | .54 | 0 | .65 | (0 | .10) | – | (0 | .10) | $ | 8 | .85 | 8 | .06% | $ | 1,053 | 0 | .37% | 2 | .65% | 0 | .37% | 17 | .96% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .58 | 0 | .20 | 0 | .77 | 0 | .97 | (0 | .21) | (0 | .04) | (0 | .25) | $ | 8 | .30 | 12 | .92% | $ | 888 | 0 | .46% | 2 | .67% | 0 | .46% | 35 | .33% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .31 | 0 | .12 | 0 | .54 | 0 | .66 | (0 | .10) | – | (0 | .10) | $ | 8 | .87 | 7 | .92% | $ | 3,254,050 | 0 | .33% | 2 | .83% | 0 | .33% | 17 | .96% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .59 | 0 | .20 | 0 | .77 | 0 | .97 | (0 | .21) | (0 | .04) | (0 | .25) | $ | 8 | .31 | 13 | .04% | $ | 3,843,872 | 0 | .33% | 2 | .65% | 0 | .33% | 35 | .33% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 19
| 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, 2010, the Nationwide Destination 2015 Fund (Class A at NAV) returned 8.50% versus 8.68% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2015 Index, and 9.04% for its former benchmark, the Dow Jones (DJ) Target 2015 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2015 Funds (consisting of 138 funds as of April 30, 2010) was 9.42% for the same time period.
*The benchmark for the Nationwide Destination 2015 Fund changed from the Dow Jones (DJ) Target 2015 Index to the Morningstar (Mstar) Lifetime Moderate 2015 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 24% and 8%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear of the returns during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the Vanguard Short Term Bond ETF and the SPDR DJ Wilshire International Real Estate ETF (with target allocations of 8% and 1%, respectively), which returned 1.60% and 3.08%, respectively. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on high-quality, short-term bonds will likely be challenged to achieve significant returns for investors. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
20 Semiannual Report 2010
Nationwide Destination 2015 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments (as of April 30, 2010), 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 24 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 16 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 13 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Inflation-Protected Bonds | iShares Barclays TIPS Bond (ETF) | 13 | % | 3.42 | % | 10.59 | % | 4.78 | % | 5.38 | % | 12/4/03 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 8 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Short-Term Bonds | Vanguard Short Term Bond (ETF) | 8 | % | 1.60 | % | 5.04 | % | n/a | 5.63 | % | 4/3/07 | |||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 4 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| International Bonds | Oppenheimer International Bond Fund | 4 | % | 1.35 | % | 18.21 | % | 8.48 | % | 9.70 | % | 9/27/04 | ||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 4 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 2 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| High-Yield Bonds | T. Rowe Price Institutional High Yield Bond Fund | 1 | % | 11.94 | % | 39.26 | % | 7.61 | % | 7.31 | % | 12/31/84 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 1 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 1 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 21
| Fund Performance | Nationwide Destination 2015 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 8.50% | 25.38% | -1.66% | ||||||||||
| w/SC3 | 2.27% | 18.11% | -3.82% | |||||||||||
| Class C | w/o SC2 | 8.26% | 24.71% | -2.18% | ||||||||||
| w/SC4 | 7.26% | 23.71% | -2.18% | |||||||||||
Institutional Service Class5 | 8.63% | 25.65% | -1.50% | |||||||||||
Institutional Class5 | 8.75% | 25.88% | -1.23% | |||||||||||
Class R15 | 8.34% | 24.85% | -2.09% | |||||||||||
Class R25 | 8.40% | 24.97% | -1.92% | |||||||||||
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 | 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
| Expense | ||||||
| Ratios* | ||||||
| Class A | 1.12% | |||||
| Class C | 1.65% | |||||
| Class R1 | 1.53% | |||||
| Class R2 | 1.39% | |||||
| Institutional Service Class | 0.88% | |||||
| Institutional Class | 0.65% | |||||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
22 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2015 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,085.00 | 4.29 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,082.60 | 6.87 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.20 | 6.66 | 1.33 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,083.40 | 6.35 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,084.00 | 5.58 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,086.30 | 3.00 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,087.50 | 1.71 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 23
| Portfolio Summary | Nationwide Destination 2015 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 56 | .5% | ||
| Fixed Income Funds | 42 | .7% | ||
| Money Market Fund | 1 | .0% | ||
| Liabilities in excess of other assets | (0 | .2)% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 23 | .9% | ||
| Nationwide Bond Index Fund, Institutional Class | 16 | .1% | ||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 13 | .3% | ||
| Nationwide International Index Fund, Institutional Class | 12 | .4% | ||
| Vanguard Short-Term Bond Fund | 8 | .1% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 8 | .1% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 4 | .1% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .0% | ||
| Oppenheimer International Bond Fund, Class Y | 4 | .0% | ||
| Vanguard Emerging Markets Fund | 2 | .0% | ||
| Other Holdings | 4 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
24 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2015 Fund
| Mutual Funds 74.7% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 52.5% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 442,188 | $ | 3,696,692 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 1,649,853 | 11,515,973 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 547,518 | 7,468,145 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 2,214,172 | 22,097,435 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 343,196 | 3,768,296 | ||||||
Total Equity Funds (cost $38,527,888) | 48,546,541 | |||||||
Fixed Income Funds 21.2% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 1,334,142 | 14,929,047 | ||||||
| Oppenheimer International Bond Fund, Class Y | 572,764 | 3,688,604 | ||||||
| T. Rowe Price High Yield Bond Fund | 96,316 | 942,932 | ||||||
Total Fixed Income Funds (cost $18,896,525) | 19,560,583 | |||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 928,004 | 928,004 | ||||||
Total Money Market Fund (cost $928,004) | 928,004 | |||||||
Total Mutual Funds (cost $58,352,417) | 69,035,128 | |||||||
| Exchange Traded Funds 25.5% | ||||||||
Equity Funds 4.0% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 25,948 | 917,521 | ||||||
| Vanguard Emerging Markets Fund | 43,167 | 1,815,604 | ||||||
| Vanguard REIT Fund | 18,000 | 941,400 | ||||||
Total Equity Funds (cost $2,610,694) | 3,674,525 | |||||||
Fixed Income Funds 21.5% | ||||||||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 116,477 | 12,353,551 | ||||||
| Vanguard Short-Term Bond Fund | 93,571 | 7,504,394 | ||||||
Total Fixed Income Funds (cost $19,293,094) | 19,857,945 | |||||||
Total Exchange Traded Funds (cost $21,903,788) | 23,532,470 | |||||||
Total Investments (cost $80,256,205)(c) — 100.2% | 92,567,598 | |||||||
Liabilities in excess of other assets — (0.2)% | (157,744 | ) | ||||||
NET ASSETS — 100.0% | $ | 92,409,854 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 25
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2015 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $50,537,094) | $ | 60,706,900 | |||
| Investments in non-affiliates, at value (cost $29,719,111) | 31,860,698 | ||||
| Total Investments | 92,567,598 | ||||
| Cash | 36,941 | ||||
| Dividends receivable | 55,796 | ||||
| Receivable for investments sold | 454,712 | ||||
| Receivable for capital shares issued | 166,839 | ||||
| Total Assets | 93,281,886 | ||||
Liabilities: | |||||
| Payable for investments purchased | 42,114 | ||||
| Payable for capital shares redeemed | 766,076 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 24,928 | ||||
| Distribution fees | 23,489 | ||||
| Administrative servicing fees | 15,425 | ||||
| Total Liabilities | 872,032 | ||||
Net Assets | $ | 92,409,854 | |||
Represented by: | |||||
| Capital | $ | 84,363,443 | |||
| Accumulated undistributed net investment income | 91,884 | ||||
| Accumulated net realized losses from investment transactions | (4,356,866 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 10,169,806 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 2,141,587 | ||||
Net Assets | $ | 92,409,854 | |||
Net Assets: | |||||
| Class A Shares | $ | 23,956,981 | |||
| Class C Shares | 500,399 | ||||
| Class R1 Shares | 5,064,527 | ||||
| Class R2 Shares | 37,749,048 | ||||
| Institutional Service Class Shares | 20,542,326 | ||||
| Institutional Class Shares | 4,596,573 | ||||
| Total | $ | 92,409,854 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 2,675,525 | ||||
| Class C Shares | 55,884 | ||||
| Class R1 Shares | 566,974 | ||||
| Class R2 Shares | 4,221,703 | ||||
| Institutional Service Class Shares | 2,289,630 | ||||
| Institutional Class Shares | 511,660 | ||||
| Total | 10,321,376 | ||||
The accompanying notes are an integral part of these financial statements.
26 Semiannual Report 2010
| 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 | $ | 8.95 | |||
| Class C Shares (a) | $ | 8.95 | |||
| Class R1 Shares | $ | 8.93 | |||
| Class R2 Shares | $ | 8.94 | |||
| Institutional Service Class Shares | $ | 8.97 | |||
| Institutional Class Shares | $ | 8.98 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.50 | |||
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.
2010 Semiannual Report 27
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2015 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 606,477 | |||
| Dividend income from non-affiliates | 544,702 | ||||
| Total Income | 1,151,179 | ||||
EXPENSES: | |||||
| Investment advisory fees | 131,728 | ||||
| Distribution fees Class A | 26,209 | ||||
| Distribution fees Class C | 1,975 | ||||
| Distribution fees Class R1 | 15,850 | ||||
| Distribution fees Class R2 | 80,921 | ||||
| Administrative servicing fees Class A | 26,209 | ||||
| Administrative servicing fees Class R1 | 6,096 | ||||
| Administrative servicing fees Class R2 | 40,460 | ||||
| Administrative servicing fees Institutional Service Class | 21,220 | ||||
| Total Expenses | 350,668 | ||||
NET INVESTMENT INCOME | 800,511 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying non-affiliated funds | 26,269 | ||||
| Net realized gains from investment transactions with affiliates | 245,479 | ||||
| Net realized losses from investment transactions with non-affiliates | (2,189 | ) | |||
| Net realized gains from affiliated and non-affiliated investments | 269,559 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 4,677,705 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 579,665 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 5,257,370 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 5,526,929 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 6,327,440 | |||
The accompanying notes are an integral part of these financial statements.
28 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2015 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 800,511 | $ | 876,507 | ||||||
| Net realized gains/(losses) from investment transactions | 269,559 | (4,166,159 | ) | |||||||
| Net change in unrealized appreciation from investments | 5,257,370 | 12,159,025 | ||||||||
| Change in net assets resulting from operations | 6,327,440 | 8,869,373 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (184,070 | ) | (215,472 | ) | ||||||
| Class C | (2,886 | ) | (2,496 | ) | ||||||
| Class R1 | (39,887 | ) | (47,515 | ) | ||||||
| Class R2 | (276,122 | ) | (344,621 | ) | ||||||
| Institutional Service Class | (181,661 | ) | (210,488 | ) | ||||||
| Institutional Class | (52,735 | ) | (60,954 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (60,281 | ) | (1,221 | ) | ||||||
| Class C | (1,260 | ) | (11 | ) | ||||||
| Class R1 | (16,289 | ) | (3,163 | ) | ||||||
| Class R2 | (103,312 | ) | (26,357 | ) | ||||||
| Institutional Service Class | (52,448 | ) | (13,080 | ) | ||||||
| Institutional Class | (13,978 | ) | (2,883 | ) | ||||||
| Change in net assets from shareholder distributions | (984,929 | ) | (928,261 | ) | ||||||
| Change in net assets from capital transactions | 21,110,091 | 38,174,041 | ||||||||
| Change in net assets | 26,452,602 | 46,115,153 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 65,957,252 | 19,842,099 | ||||||||
| End of period | $ | 92,409,854 | $ | 65,957,252 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 91,884 | $ | 28,734 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 6,943,481 | $ | 15,512,921 | ||||||
| Dividends reinvested | 243,878 | 216,693 | ||||||||
| Cost of shares redeemed | (1,546,010 | ) | (2,418,632 | ) | ||||||
| Total Class A | 5,641,349 | 13,310,982 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 140,298 | 316,170 | ||||||||
| Dividends reinvested | 4,146 | 2,507 | ||||||||
| Cost of shares redeemed | (34,040 | ) | (883 | ) | ||||||
| Total Class C | 110,404 | 317,794 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,854,643 | 3,081,526 | ||||||||
| Dividends reinvested | 56,176 | 50,678 | ||||||||
| Cost of shares redeemed | (1,037,868 | ) | (922,851 | ) | ||||||
| Total Class R1 | 872,951 | 2,209,353 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 29
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2015 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 9,657,724 | $ | 15,158,621 | ||||||
| Dividends reinvested | 379,434 | 370,978 | ||||||||
| Cost of shares redeemed | (1,402,245 | ) | (2,548,611 | ) | ||||||
| Total Class R2 | 8,634,913 | 12,980,988 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 5,906,502 | 9,061,316 | ||||||||
| Dividends reinvested | 234,109 | 223,567 | ||||||||
| Cost of shares redeemed | (960,453 | ) | (1,778,616 | ) | ||||||
| Total Institutional Service Class | 5,180,158 | 7,506,267 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,135,061 | 3,567,046 | ||||||||
| Dividends reinvested | 66,713 | 55,845 | ||||||||
| Cost of shares redeemed | (531,458 | ) | (1,774,234 | ) | ||||||
| Total Institutional Class | 670,316 | 1,848,657 | ||||||||
| Change in net assets from capital transactions | $ | 21,110,091 | $ | 38,174,041 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 803,310 | 2,243,456 | ||||||||
| Reinvested | 28,312 | 28,321 | ||||||||
| Redeemed | (177,276 | ) | (323,277 | ) | ||||||
| Total Class A Shares | 654,346 | 1,948,500 | ||||||||
Class C Shares | ||||||||||
| Issued | 15,871 | 42,487 | ||||||||
| Reinvested | 482 | 317 | ||||||||
| Redeemed | (3,850 | ) | (105 | ) | ||||||
| Total Class C Shares | 12,503 | 42,699 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 213,180 | 412,272 | ||||||||
| Reinvested | 6,554 | 6,685 | ||||||||
| Redeemed | (117,233 | ) | (123,491 | ) | ||||||
| Total Class R1 Shares | 102,501 | 295,466 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,110,851 | 2,026,461 | ||||||||
| Reinvested | 44,172 | 49,004 | ||||||||
| Redeemed | (160,594 | ) | (342,249 | ) | ||||||
| Total Class R2 Shares | 994,429 | 1,733,216 | ||||||||
The accompanying notes are an integral part of these financial statements.
30 Semiannual Report 2010
| Nationwide Destination 2015 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 676,307 | 1,190,458 | ||||||||
| Reinvested | 27,114 | 29,330 | ||||||||
| Redeemed | (109,210 | ) | (242,060 | ) | ||||||
| Total Institutional Service Class Shares | 594,211 | 977,728 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 130,320 | 469,105 | ||||||||
| Reinvested | 7,714 | 7,222 | ||||||||
| Redeemed | (60,261 | ) | (233,634 | ) | ||||||
| Total Institutional Class Shares | 77,773 | 242,693 | ||||||||
| Total change in shares | 2,435,763 | 5,240,302 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 31
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2015 Fund
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Realized | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | and | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Unrealized | Net | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Net | Gains (Losses) | Total | Net | Net | Asset | Net Assets | to Average | to Average | to Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 8 | .36 | 0 | .09 | 0 | .62 | 0 | .71 | (0 | .09) | (0 | .03) | (0 | .12) | $ | 8 | .95 | 8 | .50% | $ | 23,956,981 | 0 | .83% | 2 | .00% | 0 | .83% | 5 | .12% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .51 | 0 | .16 | 0 | .89 | 1 | .05 | (0 | .18) | (0 | .02) | (0 | .20) | $ | 8 | .36 | 14 | .22% | $ | 16,905,110 | 0 | .83% | 2 | .03% | 0 | .83% | 27 | .93% | ||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .37 | 0 | .07 | 0 | .61 | 0 | .68 | (0 | .07) | (0 | .03) | (0 | .10) | $ | 8 | .95 | 8 | .26% | $ | 500,399 | 1 | .33% | 1 | .67% | 1 | .33% | 5 | .12% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .51 | 0 | .10 | 0 | .92 | 1 | .02 | (0 | .14) | (0 | .02) | (0 | .16) | $ | 8 | .37 | 13 | .61% | $ | 362,935 | 1 | .32% | 1 | .32% | 1 | .32% | 27 | .93% | ||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .35 | 0 | .08 | 0 | .60 | 0 | .68 | (0 | .07) | (0 | .03) | (0 | .10) | $ | 8 | .93 | 8 | .34% | $ | 5,064,527 | 1 | .23% | 1 | .82% | 1 | .23% | 5 | .12% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .49 | 0 | .13 | 0 | .89 | 1 | .02 | (0 | .14) | (0 | .02) | (0 | .16) | $ | 8 | .35 | 13 | .70% | $ | 3,876,432 | 1 | .23% | 1 | .70% | 1 | .23% | 27 | .93% | ||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .35 | 0 | .08 | 0 | .62 | 0 | .70 | (0 | .08) | (0 | .03) | (0 | .11) | $ | 8 | .94 | 8 | .40% | $ | 37,749,048 | 1 | .08% | 1 | .91% | 1 | .08% | 5 | .12% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .49 | 0 | .14 | 0 | .89 | 1 | .03 | (0 | .15) | (0 | .02) | (0 | .17) | $ | 8 | .35 | 13 | .94% | $ | 26,961,654 | 1 | .08% | 1 | .87% | 1 | .08% | 27 | .93% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .56 | 0 | .22 | (3 | .06) | (2 | .84) | (0 | .22) | (0 | .01) | (0 | .23) | $ | 7 | .49 | (27 | .43%) | $ | 11,194,278 | 0 | .98% | 2 | .40% | 1 | .06% | 28 | .09% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .21 | 0 | .38 | 0 | .59 | (0 | .03) | – | (0 | .03) | $ | 10 | .56 | 5 | .94% | $ | 1,076 | 1 | .06% | 2 | .23% | 1 | .06% | 1 | .12% | |||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 8 | .38 | 0 | .10 | 0 | .62 | 0 | .72 | (0 | .10) | (0 | .03) | (0 | .13) | $ | 8 | .97 | 8 | .63% | $ | 20,542,326 | 0 | .58% | 2 | .38% | 0 | .58% | 5 | .12% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .51 | 0 | .18 | 0 | .89 | 1 | .07 | (0 | .18) | (0 | .02) | (0 | .20) | $ | 8 | .38 | 14 | .53% | $ | 14,210,045 | 0 | .58% | 2 | .39% | 0 | .58% | 27 | .93% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
32 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2015 Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Realized | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | and | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Unrealized | Net | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Net | Gains (Losses) | Total | Net | Net | Asset | Net Assets | to Average | to Average | to Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 8 | .39 | 0 | .12 | 0 | .61 | 0 | .73 | (0 | .11) | (0 | .03) | (0 | .14) | $ | 8 | .98 | 8 | .75% | $ | 4,596,573 | 0 | .33% | 2 | .72% | 0 | .33% | 5 | .12% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .53 | 0 | .20 | 0 | .88 | 1 | .08 | (0 | .20) | (0 | .02) | (0 | .22) | $ | 8 | .39 | 14 | .81% | $ | 3,641,076 | 0 | .33% | 2 | .60% | 0 | .33% | 27 | .93% | ||||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 33
| 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, 2010, the Nationwide Destination 2020 Fund (Class A at NAV) returned 9.81% versus 10.05% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2020 Index, and 11.38% for its former benchmark, the Dow Jones (DJ) Target 2020 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2020 Funds (consisting of 190 funds as of April 30, 2010) was 9.79% for the same time period.
*The benchmark for the Nationwide Destination 2020 Fund changed from the Dow Jones (DJ) Target 2020 Index to the Morningstar (Mstar) Lifetime Moderate 2020 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 26% and 9%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the Vanguard Short Term Bond ETF and the SPDR DJ Wilshire International Real Estate ETF (with target allocations of 5% and 1%, respectively), which returned 1.60% and 3.08%, respectively. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on high-quality, short-term bonds will likely be challenged to achieve significant returns for investors. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
34 Semiannual Report 2010
Nationwide Destination 2020 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 26 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 17 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 16 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Inflation-Protected Bonds | iShares Barclays TIPS Bond (ETF) | 10 | % | 3.42 | % | 10.59 | % | 4.78 | % | 5.38 | % | 12/4/03 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 9 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 6 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Short-Term Bonds | Vanguard Short Term Bond (ETF) | 5 | % | 1.60 | % | 5.04 | % | n/a | 5.63 | % | 4/3/07 | |||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 4 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 3 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 2 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 1 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 35
| Fund Performance | Nationwide Destination 2020 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 9.81% | 28.30% | -1.98% | ||||||||||
| w/SC3 | 3.51% | 20.97% | -4.13% | |||||||||||
| Class C | w/o SC2 | 9.47% | 27.72% | -2.58% | ||||||||||
| w/SC4 | 8.47% | 26.72% | -2.58% | |||||||||||
Institutional Service Class5 | 10.05% | 28.75% | -1.77% | |||||||||||
Institutional Class5 | 10.15% | 29.12% | -1.47% | |||||||||||
Class R15 | 9.56% | 27.75% | -2.31% | |||||||||||
Class R25 | 9.74% | 28.13% | -2.18% | |||||||||||
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 | 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
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.12% | |||||
| Class C | 1.64% | |||||
| Class R1 | 1.52% | |||||
| Class R2 | 1.37% | |||||
| Institutional Service Class | 0.87% | |||||
| Institutional Class | 0.64% | |||||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
36 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2020 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,098.10 | 4.32 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,094.70 | 6.91 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.20 | 6.66 | 1.33 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,095.60 | 6.39 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,097.40 | 5.62 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service | Actual | 1,000.00 | 1,100.50 | 3.02 | 0.58 | |||||||||||||||
| Class Shares | Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | ||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,101.50 | 1.72 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 37
| Portfolio Summary | Nationwide Destination 2020 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 66 | .5% | ||
| Fixed Income Funds | 32 | .5% | ||
| Money Market Fund | 1 | .0% | ||
| Liabilities in excess of other assets‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 26 | .0% | ||
| Nationwide Bond Index Fund, Institutional Class | 17 | .2% | ||
| Nationwide International Index Fund, Institutional Class | 15 | .4% | ||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 10 | .2% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 9 | .1% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 6 | .1% | ||
| Vanguard Short-Term Bond Fund | 5 | .1% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .0% | ||
| Vanguard Emerging Markets Fund | 2 | .9% | ||
| Vanguard REIT Fund | 2 | .0% | ||
| Other Holdings | 2 | .0% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1%. | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
38 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2020 Fund
| Mutual Funds 78.8% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 60.6% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 473,012 | $ | 3,954,382 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 2,172,984 | 15,167,432 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 658,838 | 8,986,550 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 2,566,135 | 25,610,027 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 550,554 | 6,045,080 | ||||||
Total Equity Funds (cost $50,364,848) | 59,763,471 | |||||||
Fixed Income Fund 17.2% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 1,516,302 | 16,967,420 | ||||||
Total Fixed Income Fund (cost $16,619,680) | 16,967,420 | |||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 992,711 | 992,711 | ||||||
Total Money Market Fund (cost $992,711) | 992,711 | |||||||
Total Mutual Funds (cost $67,977,239) | 77,723,602 | |||||||
| Exchange Traded Funds 21.2% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 5.9% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | $ | 27,595 | 975,759 | |||||
| Vanguard Emerging Markets Fund | 68,868 | 2,896,588 | ||||||
| Vanguard REIT Fund | 38,294 | 2,002,776 | ||||||
Total Equity Funds (cost $4,307,595) | 5,875,123 | |||||||
Fixed Income Funds 15.3% | ||||||||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 95,274 | 10,104,761 | ||||||
| Vanguard Short-Term Bond Fund | 62,187 | 4,987,397 | ||||||
Total Fixed Income Funds (cost $14,684,498) | 15,092,158 | |||||||
Total Exchange Traded Funds (cost $18,992,093) | 20,967,281 | |||||||
Total Investments (cost $86,969,332) (c) — 100.0% | 98,690,883 | |||||||
| Liabilities in excess of other assets — 0.0% | (28,846 | ) | ||||||
NET ASSETS — 100.0% | $ | 98,662,037 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 39
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2020 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $64,019,025) | $ | 73,769,220 | |||
| Investments in non-affiliates, at value (cost $22,950,307) | 24,921,663 | ||||
| Total Investments | 98,690,883 | ||||
| Cash | 53,610 | ||||
| Interest and dividends receivable | 47,245 | ||||
| Receivable for investments sold | 40,119 | ||||
| Receivable for capital shares issued | 136,740 | ||||
| Total Assets | 98,968,597 | ||||
Liabilities: | |||||
| Payable for investments purchased | 56,539 | ||||
| Payable for capital shares redeemed | 183,639 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 26,372 | ||||
| Distribution fees | 24,599 | ||||
| Administrative servicing fees | 15,411 | ||||
| Total Liabilities | 306,560 | ||||
Net Assets | $ | 98,662,037 | |||
Represented by: | |||||
| Capital | $ | 90,699,458 | |||
| Accumulated undistributed net investment income | 58,359 | ||||
| Accumulated net realized losses from investment transactions | (3,817,331 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 9,750,195 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 1,971,356 | ||||
Net Assets | $ | 98,662,037 | |||
Net Assets: | |||||
| Class A Shares | $ | 14,697,041 | |||
| Class C Shares | 612,537 | ||||
| Class R1 Shares | 5,974,186 | ||||
| Class R2 Shares | 44,068,578 | ||||
| Institutional Service Class Shares | 25,628,682 | ||||
| Institutional Class Shares | 7,681,013 | ||||
| Total | $ | 98,662,037 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,654,896 | ||||
| Class C Shares | 69,331 | ||||
| Class R1 Shares | 672,608 | ||||
| Class R2 Shares | 4,968,313 | ||||
| Institutional Service Class Shares | 2,880,975 | ||||
| Institutional Class Shares | 861,330 | ||||
| Total | 11,107,453 | ||||
The accompanying notes are an integral part of these financial statements.
40 Semiannual Report 2010
| 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 | $ | 8.88 | |||
| Class C Shares (a) | $ | 8.83 | |||
| Class R1 Shares | $ | 8.88 | |||
| Class R2 Shares | $ | 8.87 | |||
| Institutional Service Class Shares | $ | 8.90 | |||
| Institutional Class Shares | $ | 8.92 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.42 | |||
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.
2010 Semiannual Report 41
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2020 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 6 | |||
| Dividend income from affiliates | 660,253 | ||||
| Dividend income from non-affiliates | 397,954 | ||||
| Total Income | 1,058,213 | ||||
EXPENSES: | |||||
| Investment advisory fees | 132,536 | ||||
| Distribution fees Class A | 12,936 | ||||
| Distribution fees Class C | 2,679 | ||||
| Distribution fees Class R1 | 18,208 | ||||
| Distribution fees Class R2 | 92,437 | ||||
| Administrative servicing fees Class A | 12,936 | ||||
| Administrative servicing fees Class R1 | 7,003 | ||||
| Administrative servicing fees Class R2 | 46,218 | ||||
| Administrative servicing fees Institutional Service Class | 25,203 | ||||
| Total Expenses | 350,156 | ||||
NET INVESTMENT INCOME | 708,057 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying non-affiliated funds | 3,120 | ||||
| Net realized losses from investment transactions with affiliates | (278,624 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (26,753 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (302,257 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 6,044,734 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 856,429 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 6,901,163 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 6,598,906 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 7,306,963 | |||
The accompanying notes are an integral part of these financial statements.
42 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2020 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 708,057 | $ | 735,897 | ||||||
| Net realized losses from investment transactions | (302,257 | ) | (2,947,203 | ) | ||||||
| Net change in unrealized appreciation from investments | 6,901,163 | 10,530,069 | ||||||||
| Change in net assets resulting from operations | 7,306,963 | 8,318,763 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (50,064 | ) | (64,220 | ) | ||||||
| Class C | (4,444 | ) | (5,304 | ) | ||||||
| Class R1 | (45,062 | ) | (51,387 | ) | ||||||
| Class R2 | (286,794 | ) | (342,268 | ) | ||||||
| Institutional Service Class | (193,964 | ) | (197,808 | ) | ||||||
| Institutional Class | (75,859 | ) | (93,750 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (37,258 | ) | (3,403 | ) | ||||||
| Class C | (3,792 | ) | (439 | ) | ||||||
| Class R1 | (37,803 | ) | (3,226 | ) | ||||||
| Class R2 | (232,580 | ) | (19,129 | ) | ||||||
| Institutional Service Class | (126,189 | ) | (8,597 | ) | ||||||
| Institutional Class | (44,739 | ) | (4,019 | ) | ||||||
| Change in net assets from shareholder distributions | (1,138,548 | ) | (793,550 | ) | ||||||
| Change in net assets from capital transactions | 30,147,840 | 34,315,572 | ||||||||
| Change in net assets | 36,316,255 | 41,840,785 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 62,345,782 | 20,504,997 | ||||||||
| End of period | $ | 98,662,037 | $ | 62,345,782 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 58,359 | $ | 6,489 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 9,606,756 | $ | 2,924,396 | ||||||
| Dividends reinvested | 87,322 | 67,623 | ||||||||
| Cost of shares redeemed | (832,414 | ) | (596,189 | ) | ||||||
| Total Class A | 8,861,664 | 2,395,830 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 154,455 | 172,631 | ||||||||
| Dividends reinvested | 8,236 | 5,743 | ||||||||
| Cost of shares redeemed | (29,424 | ) | (53,800 | ) | ||||||
| Total Class C | 133,267 | 124,574 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,730,502 | 2,788,908 | ||||||||
| Dividends reinvested | 82,865 | 54,613 | ||||||||
| Cost of shares redeemed | $ | (817,748 | ) | $ | (560,667 | ) | ||||
| Total Class R1 | 995,619 | 2,282,854 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 43
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2020 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 11,403,968 | $ | 18,780,962 | ||||||
| Dividends reinvested | 519,374 | 361,397 | ||||||||
| Cost of shares redeemed | (2,028,369 | ) | (1,910,435 | ) | ||||||
| Total Class R2 | 9,894,973 | 17,231,924 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 9,476,803 | 11,009,055 | ||||||||
| Dividends reinvested | 320,153 | 206,405 | ||||||||
| Cost of shares redeemed | (1,114,729 | ) | (1,629,370 | ) | ||||||
| Total Institutional Service Class | 8,682,227 | 9,586,090 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,779,041 | 3,807,765 | ||||||||
| Dividends reinvested | 120,598 | 97,769 | ||||||||
| Cost of shares redeemed | (319,549 | ) | (1,211,234 | ) | ||||||
| Total Institutional Class | 1,580,090 | 2,694,300 | ||||||||
| Change in net assets from capital transactions | $ | 30,147,840 | $ | 34,315,572 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,129,645 | 402,099 | ||||||||
| Reinvested | 10,307 | 9,230 | ||||||||
| Redeemed | (96,560 | ) | (83,834 | ) | ||||||
| Total Class A Shares | 1,043,392 | 327,495 | ||||||||
Class C Shares | ||||||||||
| Issued | 17,861 | 25,128 | ||||||||
| Reinvested | 976 | 790 | ||||||||
| Redeemed | (3,503 | ) | (7,959 | ) | ||||||
| Total Class C Shares | 15,334 | 17,959 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 203,056 | 390,736 | ||||||||
| Reinvested | 9,772 | 7,488 | ||||||||
| Redeemed | (94,561 | ) | (80,157 | ) | ||||||
| Total Class R1 Shares | 118,267 | 318,067 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,328,748 | 2,633,216 | ||||||||
| Reinvested | 61,319 | 49,143 | ||||||||
| Redeemed | (237,545 | ) | (253,419 | ) | ||||||
| Total Class R2 Shares | 1,152,522 | 2,428,940 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 1,100,141 | 1,521,338 | ||||||||
| Reinvested | 37,694 | 27,884 | ||||||||
| Redeemed | (129,201 | ) | (223,394 | ) | ||||||
| Total Institutional Service Class Shares | 1,008,634 | 1,325,828 | ||||||||
The accompanying notes are an integral part of these financial statements.
44 Semiannual Report 2010
| Nationwide Destination 2020 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 208,210 | 519,450 | ||||||||
| Reinvested | 14,153 | 13,226 | ||||||||
| Redeemed | (36,615 | ) | (168,673 | ) | ||||||
| Total Institutional Class Shares | 185,748 | 364,003 | ||||||||
| Total change in shares | 3,523,897 | 4,782,292 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 45
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2020 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Gains | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | (Losses) | Total | Net | Net | Net Asset | Net Assets | to Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .22 | 0 | .05 | 0 | .75 | 0 | .80 | (0 | .08) | (0 | .06) | (0 | .14) | $ | 8 | .88 | 9 | .81% | $ | 14,697,041 | 0 | .83% | 1 | .20% | 0 | .83% | 4 | .66% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .33 | 0 | .14 | 0 | .92 | 1 | .06 | (0 | .16) | (0 | .01) | (0 | .17) | $ | 8 | .22 | 14 | .79% | $ | 5,026,129 | 0 | .83% | 1 | .89% | 0 | .83% | 21 | .24% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .19 | 0 | .07 | 0 | .70 | 0 | .77 | (0 | .07) | (0 | .06) | (0 | .13) | $ | 8 | .83 | 9 | .47% | $ | 612,537 | 1 | .33% | 1 | .56% | 1 | .33% | 4 | .66% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .29 | 0 | .10 | 0 | .93 | 1 | .03 | (0 | .12) | (0 | .01) | (0 | .13) | $ | 8 | .19 | 14 | .36% | $ | 442,018 | 1 | .33% | 1 | .42% | 1 | .33% | 21 | .24% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .23 | 0 | .07 | 0 | .71 | 0 | .78 | (0 | .07) | (0 | .06) | (0 | .13) | $ | 8 | .88 | 9 | .56% | $ | 5,974,186 | 1 | .23% | 1 | .58% | 1 | .23% | 4 | .66% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .33 | 0 | .11 | 0 | .93 | 1 | .04 | (0 | .13) | (0 | .01) | (0 | .14) | $ | 8 | .23 | 14 | .51% | $ | 4,559,986 | 1 | .23% | 1 | .49% | 1 | .23% | 21 | .24% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .21 | 0 | .07 | 0 | .72 | 0 | .79 | (0 | .07) | (0 | .06) | (0 | .13) | $ | 8 | .87 | 9 | .74% | $ | 44,068,578 | 1 | .08% | 1 | .63% | 1 | .08% | 4 | .66% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .31 | 0 | .12 | 0 | .93 | 1 | .05 | (0 | .14) | (0 | .01) | (0 | .15) | $ | 8 | .21 | 14 | .63% | $ | 31,333,358 | 1 | .08% | 1 | .62% | 1 | .08% | 21 | .24% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
46 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2020 Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Gains | Expenses | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | (Losses) | Total | Net | Net | Net Asset | Net Assets | to Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .23 | 0 | .09 | 0 | .73 | 0 | .82 | (0 | .09) | (0 | .06) | (0 | .15) | $ | 8 | .90 | 10 | .05% | $ | 25,628,682 | 0 | .58% | 2 | .12% | 0 | .58% | 4 | .66% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .33 | 0 | .16 | 0 | .92 | 1 | .08 | (0 | .17) | (0 | .01) | (0 | .18) | $ | 8 | .23 | 15 | .08% | $ | 15,411,091 | 0 | .58% | 2 | .10% | 0 | .58% | 21 | .24% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .25 | 0 | .11 | 0 | .72 | 0 | .83 | (0 | .10) | (0 | .06) | (0 | .16) | $ | 8 | .92 | 10 | .15% | $ | 7,681,013 | 0 | .33% | 2 | .47% | 0 | .33% | 4 | .66% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .34 | 0 | .18 | 0 | .93 | 1 | .11 | (0 | .19) | (0 | .01) | (0 | .20) | $ | 8 | .25 | 15 | .49% | $ | 5,573,200 | 0 | .33% | 2 | .39% | 0 | .33% | 21 | .24% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 47
| 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, 2010, the Nationwide Destination 2025 Fund (Class A at NAV) returned 11.33% versus 11.46% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2025 Index, and 14.07% for its former benchmark, the Dow Jones (DJ) Target 2025 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2025 Funds (consisting of 116 funds as of April 30, 2010) was 11.97% for the same time period.
*The benchmark for the Nationwide Destination 2025 Fund changed from the Dow Jones (DJ) Target 2025 Index to the Morningstar (Mstar) Lifetime Moderate 2025 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 29% and 11%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the Vanguard Short Term Bond ETF and the SPDR DJ Wilshire International Real Estate ETF (with target allocations of 3% and 1%, respectively), which returned 1.60% and 3.08%, respectively. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on high-quality, short-term bonds will likely be challenged to achieve significant returns for investors. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
48 Semiannual Report 2010
Nationwide Destination 2025 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 29 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 17 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 13 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 11 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 8 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Inflation-Protected Bonds | iShares Barclays TIPS Bond (ETF) | 7 | % | 3.42 | % | 10.59 | % | 4.78 | % | 5.38 | % | 12/4/03 | ||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 4 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 4 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Short-Term Bonds | Vanguard Short Term Bond (ETF) | 3 | % | 1.60 | % | 5.04 | % | n/a | 5.63 | % | 4/3/07 | |||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 2 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 1 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 49
| Fund Performance | Nationwide Destination 2025 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 11.33% | 31.58% | -2.32% | ||||||||||
| w/SC3 | 4.93% | 23.98% | -4.46% | |||||||||||
| Class C | w/o SC2 | 10.97% | 30.86% | -2.84% | ||||||||||
| w/SC4 | 9.97% | 29.86% | -2.84% | |||||||||||
Institutional Service Class 5 | 11.27% | 31.81% | -2.21% | |||||||||||
Institutional Class5 | 11.57% | 32.28% | -1.90% | |||||||||||
Class R15 | 10.97% | 31.05% | -2.75% | |||||||||||
Class R25 | 11.15% | 31.22% | -2.56% | |||||||||||
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible, because it has the most significant effect on performance data.
| * | Not annualized. | |
| 1 | Fund commenced operations on August 30, 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
| Expense | ||||
| Ratio* | ||||
| Class A | 1.09% | |||
| Class C | 1.64% | |||
| Class R1 | 1.53% | |||
| Class R2 | 1.37% | |||
| Institutional Service Class | 0.87% | |||
| Institutional Class | 0.64% | |||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
50 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2025 Fund | 11/01/09 | 4/30/10 | 11/01/09 - 4/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,113.30 | 4.35 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,109.70 | 6.96 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.20 | 6.66 | 1.33 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,109.70 | 6.43 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,111.50 | 5.65 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,112.70 | 3.04 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,115.70 | 1.73 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 51
| Portfolio Summary | Nationwide Destination 2025 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 75 | .7% | ||
| Fixed Income Funds | 23 | .4% | ||
| Money Market Fund | 1 | .0% | ||
| Liabilities in excess of other assets | (0 | .1)% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 29 | .0% | ||
| Nationwide International Index Fund, Institutional Class | 16 | .3% | ||
| Nationwide Bond Index Fund, Institutional Class | 13 | .2% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 11 | .1% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 8 | .2% | ||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 7 | .2% | ||
| Credit Suisse Commodity Return Strategy Fund | 4 | .0% | ||
| Vanguard Emerging Markets Fund | 3 | .9% | ||
| Vanguard Short-Term Bond Fund | 3 | .0% | ||
| Vanguard REIT Fund | 2 | .1% | ||
| Other Holdings | 2 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
52 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2025 Fund
| Mutual Funds 82.9% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 68.7% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 434,999 | $ | 3,636,591 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 2,124,271 | 14,827,408 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 740,507 | 10,100,519 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 2,631,978 | 26,267,144 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 675,063 | 7,412,193 | ||||||
Total Equity Funds (cost $51,638,219) | 62,243,855 | |||||||
Fixed Income Fund 13.2% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 1,066,317 | 11,932,090 | ||||||
Total Fixed Income Fund (cost $11,685,837) | 11,932,090 | |||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 912,904 | 912,904 | ||||||
Total Money Market Fund (cost $912,904) | 912,904 | |||||||
Total Mutual Funds (cost $64,236,960) | 75,088,849 | |||||||
| Exchange Traded Funds 17.2% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 7.0% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 25,420 | 898,851 | ||||||
| Vanguard Emerging Markets Fund | 84,387 | 3,549,317 | ||||||
| Vanguard REIT Fund | 35,275 | 1,844,883 | ||||||
Total Equity Funds (cost $4,825,311) | 6,293,051 | |||||||
Fixed Income Funds 10.2% | ||||||||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 61,439 | 6,516,220 | ||||||
| Vanguard Short-Term Bond Fund | 34,374 | 2,756,795 | ||||||
Total Fixed Income Funds (cost $9,002,339) | 9,273,015 | |||||||
Total Exchange Traded Funds (cost $13,827,650) | 15,566,066 | |||||||
Total Investments (cost $78,064,610) (c) — 100.1% | 90,654,915 | |||||||
Liabilities in excess of other assets — (0.1)% | (64,179 | ) | ||||||
NET ASSETS — 100.0% | $ | 90,590,736 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 53
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2025 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $60,656,918) | $ | 71,452,258 | |||
| Investments in non-affiliates, at value (cost $17,407,692) | 19,202,657 | ||||
| Total Investments | 90,654,915 | ||||
| Cash | 57,480 | ||||
| Interest and dividends receivable | 33,322 | ||||
| Receivable for investments sold | 169,678 | ||||
| Receivable for capital shares issued | 179,527 | ||||
| Total Assets | 91,094,922 | ||||
Liabilities: | |||||
| Payable for investments purchased | 57,507 | ||||
| Payable for capital shares redeemed | 383,958 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 24,380 | ||||
| Distribution fees | 25,918 | ||||
| Administrative servicing fees | 12,423 | ||||
| Total Liabilities | 504,186 | ||||
Net Assets | $ | 90,590,736 | |||
Represented by: | |||||
| Capital | $ | 81,403,587 | |||
| Accumulated net investment loss | (3,726 | ) | |||
| Accumulated net realized losses from investment transactions | (3,399,430 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 10,795,340 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 1,794,965 | ||||
Net Assets | $ | 90,590,736 | |||
Net Assets: | |||||
| Class A Shares | $ | 14,274,604 | |||
| Class C Shares | 429,816 | ||||
| Class R1 Shares | 7,164,654 | ||||
| Class R2 Shares | 45,807,215 | ||||
| Institutional Service Class Shares | 17,238,290 | ||||
| Institutional Class Shares | 5,676,157 | ||||
| Total | $ | 90,590,736 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,624,582 | ||||
| Class C Shares | 48,999 | ||||
| Class R1 Shares | 815,771 | ||||
| Class R2 Shares | 5,219,370 | ||||
| Institutional Service Class Shares | 1,958,243 | ||||
| Institutional Class Shares | 642,839 | ||||
| Total | 10,309,804 | ||||
The accompanying notes are an integral part of these financial Statements.
54 Semiannual Report 2010
| 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 | $ | 8.79 | |||
| Class C Shares (a) | $ | 8.77 | |||
| Class R1 Shares | $ | 8.78 | |||
| Class R2 Shares | $ | 8.78 | |||
| Institutional Service Class Shares | $ | 8.80 | |||
| Institutional Class Shares | $ | 8.83 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.33 | |||
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.
2010 Semiannual Report 55
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2025 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 3 | |||
| Dividend income from affiliates | 610,215 | ||||
| Dividend income from non-affiliates | 327,860 | ||||
| Total Income | 938,078 | ||||
EXPENSES: | |||||
| Investment advisory fees | 123,455 | ||||
| Distribution fees Class A | 13,629 | ||||
| Distribution fees Class C | 1,741 | ||||
| Distribution fees Class R1 | 20,560 | ||||
| Distribution fees Class R2 | 96,464 | ||||
| Administrative servicing fees Class A | 13,629 | ||||
| Administrative servicing fees Class R1 | 7,908 | ||||
| Administrative servicing fees Class R2 | 48,232 | ||||
| Administrative servicing fees Institutional Service Class | 16,973 | ||||
| Total Expenses | 342,591 | ||||
NET INVESTMENT INCOME | 595,487 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying non-affiliated funds | 1,723 | ||||
| Net realized losses from investment transactions with affiliates | (572,256 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (56,249 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (626,782 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 6,977,734 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 739,685 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 7,717,419 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 7,090,637 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 7,686,124 | |||
The accompanying notes are an integral part of these financial statements.
56 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination | ||||||||||
| 2025 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 595,487 | $ | 608,641 | ||||||
| Net realized losses from investment transactions | (626,782 | ) | (2,090,074 | ) | ||||||
| Net change in unrealized appreciation from investments | 7,717,419 | 10,037,463 | ||||||||
| Change in net assets resulting from operations | 7,686,124 | 8,556,030 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (63,265 | ) | (75,537 | ) | ||||||
| Class C | (2,795 | ) | (2,497 | ) | ||||||
| Class R1 | (51,301 | ) | (57,254 | ) | ||||||
| Class R2 | (306,520 | ) | (317,234 | ) | ||||||
| Institutional Service Class | (124,205 | ) | (117,433 | ) | ||||||
| Institutional Class | (51,127 | ) | (66,679 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (53,583 | ) | (3,322 | ) | ||||||
| Class C | (2,650 | ) | (269 | ) | ||||||
| Class R1 | (47,871 | ) | (7,920 | ) | ||||||
| Class R2 | (275,218 | ) | (35,807 | ) | ||||||
| Institutional Service Class | (96,919 | ) | (9,791 | ) | ||||||
| Institutional Class | (37,652 | ) | (3,981 | ) | ||||||
| Change in net assets from shareholder distributions | (1,113,106 | ) | (697,724 | ) | ||||||
| Change in net assets from capital transactions | 24,677,714 | 33,487,563 | ||||||||
| Change in net assets | 31,250,732 | 41,345,869 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 59,340,004 | 17,994,135 | ||||||||
| End of period | $ | 90,590,736 | $ | 59,340,004 | ||||||
| Accumulated undistributed net investment income/(loss) at end of period | $ | (3,726 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 7,515,204 | $ | 5,308,789 | ||||||
| Dividends reinvested | 116,848 | 78,859 | ||||||||
| Cost of shares redeemed | (1,398,493 | ) | (610,216 | ) | ||||||
| Total Class A | 6,233,559 | 4,777,432 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 129,277 | 131,558 | ||||||||
| Dividends reinvested | 5,445 | 2,766 | ||||||||
| Cost of shares redeemed | (7,404 | ) | (3,600 | ) | ||||||
| Total Class C | 127,318 | 130,724 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | $ | 2,344,989 | $ | 3,239,039 | ||||||
| Dividends reinvested | 99,172 | 65,174 | ||||||||
| Cost of shares redeemed | (1,022,862 | ) | (936,681 | ) | ||||||
| Total Class R1 | 1,421,299 | 2,367,532 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 57
Statements of Changes in Net Assets (Continued)
| Nationwide Destination | ||||||||||
| 2025 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | 11,330,162 | 17,897,968 | ||||||||
| Dividends reinvested | 581,738 | 353,041 | ||||||||
| Cost of shares redeemed | (1,523,966 | ) | (1,145,023 | ) | ||||||
| Total Class R2 | 10,387,934 | 17,105,986 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 6,265,535 | 7,214,503 | ||||||||
| Dividends reinvested | 221,124 | 127,224 | ||||||||
| Cost of shares redeemed | (828,398 | ) | (825,331 | ) | ||||||
| Total Institutional Service Class | 5,658,261 | 6,516,396 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,262,283 | 4,403,533 | ||||||||
| Dividends reinvested | 88,779 | 70,660 | ||||||||
| Cost of shares redeemed | (501,719 | ) | (1,884,700 | ) | ||||||
| Total Institutional Class | 849,343 | 2,589,493 | ||||||||
| Change in net assets from capital transactions | $ | 24,677,714 | $ | 33,487,563 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 894,453 | 809,312 | ||||||||
| Reinvested | 14,027 | 11,118 | ||||||||
| Redeemed | (164,171 | ) | (83,024 | ) | ||||||
| Total Class A Shares | 744,309 | 737,406 | ||||||||
Class C Shares | ||||||||||
| Issued | 15,171 | 21,163 | ||||||||
| Reinvested | 654 | 396 | ||||||||
| Redeemed | (878 | ) | (550 | ) | ||||||
| Total Class C Shares | 14,947 | 21,009 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 275,284 | 467,838 | ||||||||
| Reinvested | 11,891 | 9,394 | ||||||||
| Redeemed | (120,241 | ) | (126,834 | ) | ||||||
| Total Class R1 Shares | 166,934 | 350,398 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,337,705 | 2,569,109 | ||||||||
| Reinvested | 69,837 | 50,365 | ||||||||
| Redeemed | (177,273 | ) | (159,226 | ) | ||||||
| Total Class R2 Shares | 1,230,269 | 2,460,248 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 738,829 | 1,015,966 | ||||||||
| Reinvested | 26,514 | 17,875 | ||||||||
| Redeemed | (98,933 | ) | (116,961 | ) | ||||||
| Total Institutional Service Class Shares | 666,410 | 916,880 | ||||||||
The accompanying notes are an integral part of these financial statements.
58 Semiannual Report 2010
| Nationwide Destination | ||||||||||
| 2025 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 151,438 | 617,013 | ||||||||
| Reinvested | 10,619 | 9,844 | ||||||||
| Redeemed | (58,584 | ) | (251,739 | ) | ||||||
| Total Institutional Class Shares | 103,473 | 375,118 | ||||||||
| Total change in shares | 2,926,342 | 4,861,059 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 59
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2025 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| And | Ratio of | Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Unrealized | Expenses | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | Gains | Net | To | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | (Losses) | Total | Net | Net | Asset | Net Assets | Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .03 | 0 | .05 | 0 | .86 | 0 | .91 | (0 | .08) | (0 | .07) | (0 | .15) | $ | 8 | .79 | 11 | .33% | $ | 14,274,604 | 0 | .83% | 1 | .21% | 0 | .83% | 6 | .45% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .14 | 0 | .12 | 0 | .94 | 1 | .06 | (0 | .15) | (0 | .02) | (0 | .17) | $ | 8 | .03 | 15 | .26% | $ | 7,071,645 | 0 | .83% | 1 | .65% | 0 | .83% | 17 | .69% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .03 | 0 | .06 | 0 | .82 | 0 | .88 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .77 | 10 | .97% | $ | 429,816 | 1 | .33% | 1 | .33% | 1 | .33% | 6 | .45% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .13 | 0 | .09 | 0 | .94 | 1 | .03 | (0 | .11) | (0 | .02) | (0 | .13) | $ | 8 | .03 | 14 | .70% | $ | 273,534 | 1 | .33% | 1 | .26% | 1 | .33% | 17 | .69% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .04 | 0 | .06 | 0 | .82 | 0 | .88 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .78 | 10 | .97% | $ | 7,164,654 | 1 | .23% | 1 | .42% | 1 | .23% | 6 | .45% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .14 | 0 | .10 | 0 | .94 | 1 | .04 | (0 | .12) | (0 | .02) | (0 | .14) | $ | 8 | .04 | 14 | .85% | $ | 5,216,272 | 1 | .23% | 1 | .40% | 1 | .23% | 17 | .69% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .03 | 0 | .06 | 0 | .83 | 0 | .89 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .78 | 11 | .15% | $ | 45,807,215 | 1 | .08% | 1 | .49% | 1 | .08% | 6 | .45% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .13 | 0 | .11 | 0 | .94 | 1 | .05 | (0 | .13) | (0 | .02) | (0 | .15) | $ | 8 | .03 | 15 | .03% | $ | 32,035,568 | 1 | .08% | 1 | .48% | 1 | .08% | 17 | .69% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
60 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2025 Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| And | Ratio of | Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Unrealized | Expenses | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | Gains | Net | To | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | (Losses) | Total | Net | Net | Asset | Net Assets | Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 8 | .05 | 0 | .08 | 0 | .82 | 0 | .90 | (0 | .08) | (0 | .07) | (0 | .15) | $ | 8 | .80 | 11 | .27% | $ | 17,238,290 | 0 | .58% | 1 | .98% | 0 | .58% | 6 | .45% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .13 | 0 | .14 | 0 | .95 | 1 | .09 | (0 | .15) | (0 | .02) | (0 | .17) | $ | 8 | .05 | 15 | .76% | $ | 10,393,320 | 0 | .58% | 1 | .94% | 0 | .58% | 17 | .69% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .06 | 0 | .10 | 0 | .83 | 0 | .93 | (0 | .09) | (0 | .07) | (0 | .16) | $ | 8 | .83 | 11 | .57% | $ | 5,676,157 | 0 | .33% | 2 | .29% | 0 | .33% | 6 | .45% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .15 | 0 | .16 | 0 | .94 | 1 | .10 | (0 | .17) | (0 | .02) | (0 | .19) | $ | 8 | .06 | 15 | .83% | $ | 4,349,665 | 0 | .33% | 2 | .15% | 0 | .33% | 17 | .69% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 61
| 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, 2010, the Nationwide Destination 2030 Fund (Class A at NAV) returned 12.08% versus 12.53% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2030 Index, and 16.52% for its former benchmark, the Dow Jones (DJ) Target 2030 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2030 Funds (consisting of 183 funds as of April 30, 2010) was 11.78% for the same time period.
*The benchmark for the Nationwide Destination 2030 Fund changed from the Dow Jones (DJ) Target 2030 Index to the Morningstar (Mstar) Lifetime Moderate 2030 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 31% and 12%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the SPDR DJ Wilshire International Real Estate ETF and the Nationwide Bond Index Fund (with target allocations of 1% and 11%, respectively), which returned 3.08% and 2.25%, respectively. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns. Most sectors within the Barclays Capital (BARCAP) U.S. Aggregate Bond Index posted positive returns. The leading component of the Index was commercial mortgage-backed securities, with 12.7%, clearly indicating that investors’ risk appetite had returned to the domestic bond market. The weakest component of the Index, U.S. Treasuries, represented about 30% of the overall index composition and registered -0.2% during the reporting period.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
62 Semiannual Report 2010
Nationwide Destination 2030 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 31 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 20 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 12 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 11 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 9 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Inflation-Protected Bonds | iShares Barclays TIPS Bond (ETF) | 4 | % | 3.42 | % | 10.59 | % | 4.78 | % | 5.38 | % | 12/4/03 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 4 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 2 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 1 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 63
| Fund Performance | Nationwide Destination 2030 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 12.08% | 34.31% | -3.27% | ||||||||||
| w/SC3 | 5.70% | 26.57% | -5.39% | |||||||||||
| Class C | w/o SC2 | 11.86% | 33.67% | -3.77% | ||||||||||
| w/SC4 | 10.86% | 32.67% | -3.77% | |||||||||||
Institutional Service Class5 | 12.28% | 34.69% | -3.12% | |||||||||||
Institutional Class5 | 12.31% | 35.01% | -2.85% | |||||||||||
Class R15 | 11.86% | 33.85% | -3.66% | |||||||||||
Class R25 | 12.03% | 33.95% | -3.53% | |||||||||||
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 | 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
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.12% | |||||
| Class C | 1.65% | |||||
| Class R1 | 1.53% | |||||
| Class R2 | 1.38% | |||||
| Institutional Service Class | 0.88% | |||||
| Institutional Class | 0.65% | |||||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
64 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2030 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,120.80 | 4.36 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,118.60 | 6.93 | 1.32 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.25 | 6.61 | 1.32 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,118.60 | 6.46 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,120.30 | 5.68 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,122.80 | 3.05 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,123.10 | 1.74 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 65
| Portfolio Summary | Nationwide Destination 2030 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 83 | .8% | ||
| Fixed Income Funds | 15 | .2% | ||
| Money Market Fund | 1 | .0% | ||
| Liabilities in excess of other assets‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 31 | .0% | ||
| Nationwide International Index Fund, Institutional Class | 19 | .3% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 12 | .2% | ||
| Nationwide Bond Index Fund, Institutional Class | 11 | .2% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 9 | .2% | ||
| Credit Suisse Commodity Return Strategy Fund | 5 | .0% | ||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 4 | .1% | ||
| Vanguard Emerging Markets Fund | 3 | .9% | ||
| Vanguard REIT Fund | 2 | .1% | ||
| Nationwide Money Market Fund, Institutional Class | 1 | .0% | ||
| Other Holdings | 1 | .0% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
66 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2030 Fund
| Mutual Funds 88.9% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 76.8% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 610,890 | $ | 5,107,044 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 2,806,018 | 19,586,003 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 907,560 | 12,379,111 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 3,161,013 | 31,546,914 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 853,178 | 9,367,897 | ||||||
Total Equity Funds (cost $62,570,804) | 77,986,969 | |||||||
Fixed Income Fund 11.1% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 1,013,890 | 11,345,425 | ||||||
Total Fixed Income Fund (cost $11,097,004) | 11,345,425 | |||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 1,025,812 | 1,025,812 | ||||||
Total Money Market Fund (cost $1,025,812) | 1,025,812 | |||||||
Total Mutual Funds (cost $74,693,620) | 90,358,206 | |||||||
| Exchange Traded Funds 11.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 7.0% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 28,513 | 1,008,220 | ||||||
| Vanguard Emerging Markets Fund | 94,870 | 3,990,232 | ||||||
| Vanguard REIT Fund | 39,568 | 2,069,406 | ||||||
Total Equity Funds (cost $4,753,100) | 7,067,858 | |||||||
Fixed Income Fund 4.1% | ||||||||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 39,389 | 4,177,598 | ||||||
Total Fixed Income Fund (cost $4,011,982) | 4,177,598 | |||||||
Total Exchange Traded Funds (cost $8,765,082) | 11,245,456 | |||||||
Total Investments (cost $83,458,702)(c) — 100.0% | 101,603,662 | |||||||
Liabilities in excess of other assets — 0.0% | (46,264 | ) | ||||||
NET ASSETS — 100.0% | $ | 101,557,398 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 67
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2030 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $69,824,687) | $ | 85,251,162 | |||
| Investments in non-affiliates, at value (cost $13,634,015) | 16,352,500 | ||||
| Total Investments | 101,603,662 | ||||
| Cash | 11,961 | ||||
| Interest and dividends receivable | 31,643 | ||||
| Receivable for investments sold | 63,656 | ||||
| Receivable for capital shares issued | 115,861 | ||||
| Total Assets | 101,826,783 | ||||
Liabilities: | |||||
| Payable for investments purchased | 17,456 | ||||
| Payable for capital shares redeemed | 181,109 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 27,387 | ||||
| Distribution fees | 27,532 | ||||
| Administrative servicing fees | 15,901 | ||||
| Total Liabilities | 269,385 | ||||
Net Assets | $ | 101,557,398 | |||
Represented by: | |||||
| Capital | $ | 87,165,828 | |||
| Accumulated net investment loss | (64,893 | ) | |||
| Accumulated net realized losses from investment transactions | (3,688,497 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 15,426,475 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 2,718,485 | ||||
Net Assets | $ | 101,557,398 | |||
Net Assets: | |||||
| Class A Shares | $ | 30,316,649 | |||
| Class C Shares | 764,684 | ||||
| Class R1 Shares | 7,451,088 | ||||
| Class R2 Shares | 40,867,449 | ||||
| Institutional Service Class Shares | 14,777,869 | ||||
| Institutional Class Shares | 7,379,659 | ||||
| Total | $ | 101,557,398 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 3,533,972 | ||||
| Class C Shares | 89,322 | ||||
| Class R1 Shares | 869,830 | ||||
| Class R2 Shares | 4,771,166 | ||||
| Institutional Service Class Shares | 1,719,226 | ||||
| Institutional Class Shares | 856,234 | ||||
| Total | 11,839,750 | ||||
The accompanying notes are an integral part of these financial statements.
68 Semiannual Report 2010
| 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 | $ | 8.58 | |||
| Class C Shares (a) | $ | 8.56 | |||
| Class R1 Shares | $ | 8.57 | |||
| Class R2 Shares | $ | 8.57 | |||
| Institutional Service Class Shares | $ | 8.60 | |||
| Institutional Class Shares | $ | 8.62 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.10 | |||
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.
2010 Semiannual Report 69
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2030 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 8 | |||
| Dividend income from affiliates | 728,224 | ||||
| Dividend income from non-affiliates | 384,734 | ||||
| Total Income | 1,112,966 | ||||
EXPENSES: | |||||
| Investment advisory fees | 143,147 | ||||
| Distribution fees Class A | 34,153 | ||||
| Distribution fees Class C | 2,511 | ||||
| Distribution fees Class R1 | 21,783 | ||||
| Distribution fees Class R2 | 84,589 | ||||
| Administrative servicing fees Class A | 34,153 | ||||
| Administrative servicing fees Class R1 | 8,378 | ||||
| Administrative servicing fees Class R2 | 42,294 | ||||
| Administrative servicing fees Institutional Service Class | 14,717 | ||||
| Total Expenses | 385,725 | ||||
NET INVESTMENT INCOME | 727,241 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (317,614 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (19,070 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (336,684 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 8,308,821 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 843,389 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 9,152,210 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 8,815,526 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 9,542,767 | |||
The accompanying notes are an integral part of these financial statements.
70 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2030 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 727,241 | $ | 681,458 | ||||||
| Net realized losses from investment transactions | (336,684 | ) | (2,686,578 | ) | ||||||
| Net change in unrealized appreciation from investments | 9,152,210 | 14,615,569 | ||||||||
| Change in net assets resulting from operations | 9,542,767 | 12,610,449 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (251,045 | ) | (222,062 | ) | ||||||
| Class C | (3,815 | ) | (1,468 | ) | ||||||
| Class R1 | (58,359 | ) | (43,604 | ) | ||||||
| Class R2 | (290,555 | ) | (265,418 | ) | ||||||
| Institutional Service Class | (116,815 | ) | (97,307 | ) | ||||||
| Institutional Class | (71,545 | ) | (80,439 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (154,551 | ) | (6,444 | ) | ||||||
| Class C | (2,597 | ) | (116 | ) | ||||||
| Class R1 | (39,158 | ) | (6,618 | ) | ||||||
| Class R2 | (190,299 | ) | (41,468 | ) | ||||||
| Institutional Service Class | (67,048 | ) | (9,684 | ) | ||||||
| Institutional Class | (38,905 | ) | (6,273 | ) | ||||||
| Change in net assets from shareholder distributions | (1,284,692 | ) | (780,901 | ) | ||||||
| Change in net assets from capital transactions | 21,545,287 | 42,353,812 | ||||||||
| Change in net assets | 29,803,362 | 54,183,360 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 71,754,036 | 17,570,676 | ||||||||
| End of period | $ | 101,557,398 | $ | 71,754,036 | ||||||
| Accumulated undistributed net investment income/(loss) at end of period | $ | (64,893 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 6,011,649 | $ | 18,345,090 | ||||||
| Dividends reinvested | 405,596 | 228,506 | ||||||||
| Cost of shares redeemed | (2,253,405 | ) | (2,119,222 | ) | ||||||
| Total Class A | 4,163,840 | 16,454,374 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 460,871 | 246,792 | ||||||||
| Dividends reinvested | 6,412 | 1,584 | ||||||||
| Cost of shares redeemed | (49,595 | ) | (12,609 | ) | ||||||
| Total Class C | 417,688 | 235,767 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 2,427,538 | 3,134,358 | ||||||||
| Dividends reinvested | 97,517 | 50,222 | ||||||||
| Cost of shares redeemed | (659,590 | ) | (603,931 | ) | ||||||
| Total Class R1 | 1,865,465 | 2,580,649 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 71
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2030 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | 10,036,931 | 14,824,047 | ||||||||
| Dividends reinvested | 480,854 | 306,886 | ||||||||
| Cost of shares redeemed | (1,025,951 | ) | (1,045,907 | ) | ||||||
| Total Class R2 | 9,491,834 | 14,085,026 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 4,840,159 | 6,249,091 | ||||||||
| Dividends reinvested | 183,863 | 106,991 | ||||||||
| Cost of shares redeemed | (378,753 | ) | (767,385 | ) | ||||||
| Total Institutional Service Class | 4,645,269 | 5,588,697 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,056,099 | 5,398,397 | ||||||||
| Dividends reinvested | 110,450 | 86,712 | ||||||||
| Cost of shares redeemed | (205,358 | ) | (2,075,810 | ) | ||||||
| Total Institutional Class | 961,191 | 3,409,299 | ||||||||
| Change in net assets from capital transactions | $ | 21,545,287 | $ | 42,353,812 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 732,126 | 3,046,152 | ||||||||
| Reinvested | 50,012 | 33,815 | ||||||||
| Redeemed | (276,024 | ) | (300,507 | ) | ||||||
| Total Class A Shares | 506,114 | 2,779,460 | ||||||||
Class C Shares | ||||||||||
| Issued | 55,376 | 35,819 | ||||||||
| Reinvested | 791 | 229 | ||||||||
| Redeemed | (5,974 | ) | (1,853 | ) | ||||||
| Total Class C Shares | 50,193 | 34,195 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 297,283 | 472,445 | ||||||||
| Reinvested | 12,024 | 7,560 | ||||||||
| Redeemed | (79,961 | ) | (81,943 | ) | ||||||
| Total Class R1 Shares | 229,346 | 398,062 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 1,214,578 | 2,226,256 | ||||||||
| Reinvested | 59,291 | 46,084 | ||||||||
| Redeemed | (125,517 | ) | (159,373 | ) | ||||||
| Total Class R2 Shares | 1,148,352 | 2,112,967 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 586,042 | 932,524 | ||||||||
| Reinvested | 22,643 | 15,811 | ||||||||
| Redeemed | (45,425 | ) | (108,098 | ) | ||||||
| Total Institutional Service Class Shares | 563,260 | 840,237 | ||||||||
The accompanying notes are an integral part of these financial statements.
72 Semiannual Report 2010
| Nationwide Destination 2030 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 129,605 | 802,249 | ||||||||
| Reinvested | 13,569 | 12,808 | ||||||||
| Redeemed | (24,507 | ) | (309,642 | ) | ||||||
| Total Institutional Class Shares | 118,667 | 505,415 | ||||||||
| Total change in shares | 2,615,932 | 6,670,336 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 73
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2030 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Net | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | and | Ratio of | Investment | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | Unrealized | Expenses | Income | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Net | Net | to | (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) | Total | Net | Net | Asset | Assets | Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of | Income | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period | (Loss) | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .78 | 0 | .07 | 0 | .86 | 0 | .93 | (0 | .08) | (0 | .05) | (0 | .13) | $ | 8 | .58 | 12 | .08% | $ | 30,316,649 | 0 | .83% | 1 | .71% | 0 | .83% | 4 | .65% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .89 | 0 | .10 | 0 | .95 | 1 | .05 | (0 | .14) | (0 | .02) | (0 | .16) | $ | 7 | .78 | 15 | .79% | $ | 23,551,191 | 0 | .83% | 1 | .45% | 0 | .83% | 15 | .08% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .77 | 0 | .05 | 0 | .86 | 0 | .91 | (0 | .07) | (0 | .05) | (0 | .12) | $ | 8 | .56 | 11 | .86% | $ | 764,684 | 1 | .32% | 1 | .14% | 1 | .32% | 4 | .65% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .88 | 0 | .06 | 0 | .95 | 1 | .01 | (0 | .10) | (0 | .02) | (0 | .12) | $ | 7 | .77 | 15 | .10% | $ | 304,217 | 1 | .32% | �� | 0 | .85% | 1 | .32% | 15 | .08% | ||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .78 | 0 | .06 | 0 | .86 | 0 | .92 | (0 | .08) | (0 | .05) | (0 | .13) | $ | 8 | .57 | 11 | .86% | $ | 7,451,088 | 1 | .23% | 1 | .38% | 1 | .23% | 4 | .65% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .88 | 0 | .08 | 0 | .94 | 1 | .02 | (0 | .10) | (0 | .02) | (0 | .12) | $ | 7 | .78 | 15 | .25% | $ | 4,980,319 | 1 | .23% | 1 | .22% | 1 | .23% | 15 | .08% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .77 | 0 | .06 | 0 | .87 | 0 | .93 | (0 | .08) | (0 | .05) | (0 | .13) | $ | 8 | .57 | 12 | .03% | $ | 40,867,449 | 1 | .08% | 1 | .47% | 1 | .08% | 4 | .65% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .88 | 0 | .10 | 0 | .92 | 1 | .02 | (0 | .11) | (0 | .02) | (0 | .13) | $ | 7 | .77 | 15 | .31% | $ | 28,154,823 | 1 | .08% | 1 | .39% | 1 | .08% | 15 | .08% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial Statements.
74 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2030 Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Net | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | and | Ratio of | Investment | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | Unrealized | Expenses | Income | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains | Net | Net | to | (Loss) | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) | Total | Net | Net | Asset | Assets | Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of | Income | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period | (Loss) | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .79 | 0 | .08 | 0 | .87 | 0 | .95 | (0 | .09) | (0 | .05) | (0 | .14) | $ | 8 | .60 | 12 | .28% | $ | 14,777,869 | 0 | .58% | 1 | .99% | 0 | .58% | 4 | .65% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .89 | 0 | .13 | 0 | .93 | 1 | .06 | (0 | .14) | (0 | .02) | (0 | .16) | $ | 7 | .79 | 15 | .96% | $ | 9,006,401 | 0 | .58% | 1 | .81% | 0 | .58% | 15 | .08% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .81 | 0 | .09 | 0 | .86 | 0 | .95 | (0 | .09) | (0 | .05) | (0 | .14) | $ | 8 | .62 | 12 | .31% | $ | 7,379,659 | 0 | .33% | 2 | .31% | 0 | .33% | 4 | .65% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .90 | 0 | .14 | 0 | .95 | 1 | .09 | (0 | .16) | (0 | .02) | (0 | .18) | $ | 7 | .81 | 16 | .33% | $ | 5,757,085 | 0 | .33% | 1 | .99% | 0 | .33% | 15 | .08% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 75
| 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, 2010, the Nationwide Destination 2035 Fund (Class A at NAV) returned 12.56% versus 13.06% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2035 Index, and 18.46% for its former benchmark, the Dow Jones (DJ) Target 2035 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2035 Funds (consisting of 111 funds as of April 30, 2010) was 13.19% for the same time period.
*The benchmark for the Nationwide Destination 2035 Fund changed from the Dow Jones (DJ) Target 2035 Index to the Morningstar (Mstar) Lifetime Moderate 2035 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 30% and 13%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the SPDR DJ Wilshire International Real Estate ETF and the Nationwide Bond Index Fund (with target allocations of 2% and 10%, respectively), which returned 3.08% and 2.25%, respectively. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns. Most sectors within the Barclays Capital (BARCAP) U.S. Aggregate Bond Index posted positive returns. The leading component of the Index was commercial mortgage-backed securities, with 12.7%, clearly indicating that investors’ risk appetite had returned to the domestic bond market. The weakest component of the Index, U.S. Treasuries, represented about 30% of the overall index composition and registered -0.2% during the reporting period.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
76 Semiannual Report 2010
Nationwide Destination 2035 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 30 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 22 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 10 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 10 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 5 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 2 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 2 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 77
| Fund Performance | Nationwide Destination 2035 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 12.56% | 35.89% | -4.16% | ||||||||||
| w/SC3 | 6.08% | 28.14% | -6.26% | |||||||||||
| Class C | w/o SC2 | 12.25% | 35.30% | -4.69% | ||||||||||
| w/SC4 | 11.25% | 34.30% | -4.69% | |||||||||||
Institutional Service Class5 | 12.77% | 36.33% | -4.02% | |||||||||||
Institutional Class5 | 12.81% | 36.65% | -3.74% | |||||||||||
Class R15 | 12.33% | 35.40% | -4.61% | |||||||||||
Class R25 | 12.39% | 35.61% | -4.43% | |||||||||||
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 | 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
| Expense | ||||
| Ratio* | ||||
| Class A | 1.12% | |||
| Class C | 1.66% | |||
| Class R1 | 1.56% | |||
| Class R2 | 1.39% | |||
| Institutional Service Class | 0.88% | |||
| Institutional Class | 0.66% | |||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
78 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2035 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,125.60 | 4.37 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,122.50 | 6.95 | 1.32 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.25 | 6.61 | 1.32 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,123.30 | 6.48 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,123.90 | 5.69 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,127.70 | 3.06 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,128.10 | 1.74 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 79
| Portfolio Summary | Nationwide Destination 2035 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 88 | .8% | ||
| Fixed Income Fund | 10 | .2% | ||
| Money Market Fund | 1 | .0% | ||
| Liabilities in excess of other assets‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .1% | ||
| Nationwide International Index Fund, Institutional Class | 21 | .3% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .2% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 10 | .3% | ||
| Nationwide Bond Index Fund, Institutional Class | 10 | .2% | ||
| Credit Suisse Commodity Return Strategy Fund | 5 | .0% | ||
| Vanguard Emerging Markets Fund | 4 | .9% | ||
| Vanguard REIT Fund | 2 | .0% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .0% | ||
| Nationwide Money Market Fund, Institutional Class | 1 | .0% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
80 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2035 Fund
| Mutual Funds 91.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 79.9% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 271,739 | $ | 2,271,739 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 1,373,476 | 9,586,862 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 437,191 | 5,963,279 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 1,361,066 | 13,583,439 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 421,455 | 4,627,581 | ||||||
Total Equity Funds (cost $30,584,513) | 36,032,900 | |||||||
Fixed Income Fund 10.2% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 409,972 | 4,587,585 | ||||||
Total Fixed Income Fund (cost $4,496,879) | 4,587,585 | |||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 456,285 | 456,285 | ||||||
Total Money Market Fund (cost $456,285) | 456,285 | |||||||
Total Mutual Funds (cost $35,537,677) | 41,076,770 | |||||||
| Exchange Traded Funds 8.9% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 8.9% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 25,286 | 894,113 | ||||||
| Vanguard Emerging Markets Fund | 52,496 | 2,207,982 | ||||||
| Vanguard REIT Fund | 17,541 | 917,394 | ||||||
Total Equity Funds (cost $3,155,724) | 4,019,489 | |||||||
Total Exchange Traded Funds (cost $3,155,724) | 4,019,489 | |||||||
Total Investments (cost $38,693,401) (c) — 100.0% | 45,096,259 | |||||||
Liabilities in excess of other assets — 0.0% | (6,343 | ) | ||||||
NET ASSETS — 100.0% | $ | 45,089,916 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 81
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2035 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $33,300,094) | $ | 38,805,031 | |||
| Investments in non-affiliates, at value (cost $5,393,307) | 6,291,228 | ||||
| Total Investments | 45,096,259 | ||||
| Cash | 17,462 | ||||
| Dividends receivable | 12,590 | ||||
| Receivable for capital shares issued | 129,100 | ||||
| Total Assets | 45,255,411 | ||||
Liabilities: | |||||
| Payable for investments purchased | 125,337 | ||||
| Payable for capital shares redeemed | 10,593 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 11,991 | ||||
| Distribution fees | 12,309 | ||||
| Administrative servicing fees | 5,265 | ||||
| Total Liabilities | 165,495 | ||||
Net Assets | $ | 45,089,916 | |||
Represented by: | |||||
| Capital | $ | 40,589,282 | |||
| Accumulated net investment loss | (42,903 | ) | |||
| Accumulated net realized losses from investment transactions | (1,859,321 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 5,504,937 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 897,921 | ||||
Net Assets | $ | 45,089,916 | |||
Net Assets: | |||||
| Class A Shares | $ | 5,603,349 | |||
| Class C Shares | 191,712 | ||||
| Class R1 Shares | 776,563 | ||||
| Class R2 Shares | 26,401,516 | ||||
| Institutional Service Class Shares | 7,249,152 | ||||
| Institutional Class Shares | 4,867,624 | ||||
| Total | $ | 45,089,916 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 674,503 | ||||
| Class C Shares | 23,206 | ||||
| Class R1 Shares | 93,649 | ||||
| Class R2 Shares | 3,187,563 | ||||
| Institutional Service Class Shares | 871,515 | ||||
| Institutional Class Shares | 583,534 | ||||
| Total | 5,433,970 | ||||
The accompanying notes are an integral part of these financial statements.
82 Semiannual Report 2010
| 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 | $ | 8.31 | |||
| Class C Shares (a) | $ | 8.26 | |||
| Class R1 Shares | $ | 8.29 | |||
| Class R2 Shares | $ | 8.28 | |||
| Institutional Service Class Shares | $ | 8.32 | |||
| Institutional Class Shares | $ | 8.34 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 8.82 | |||
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.
2010 Semiannual Report 83
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2035 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 308,968 | |||
| Dividend income from non-affiliates | 147,227 | ||||
| Total Income | 456,195 | ||||
EXPENSES: | |||||
| Investment advisory fees | 61,167 | ||||
| Distribution fees Class A | 5,030 | ||||
| Distribution fees Class C | 692 | ||||
| Distribution fees Class R1 | 2,388 | ||||
| Distribution fees Class R2 | 55,191 | ||||
| Administrative servicing fees Class A | 5,031 | ||||
| Administrative servicing fees Class R1 | 918 | ||||
| Administrative servicing fees Class R2 | 27,596 | ||||
| Administrative servicing fees Institutional Service Class | 7,314 | ||||
| Total Expenses | 165,327 | ||||
NET INVESTMENT INCOME | 290,868 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (349,145 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (49,301 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (398,446 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 3,930,050 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 353,454 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 4,283,504 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 3,885,058 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 4,175,926 | |||
The accompanying notes are an integral part of these financial statements.
84 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2035 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 290,868 | $ | 281,238 | ||||||
| Net realized losses from investment transactions | (398,446 | ) | (1,024,226 | ) | ||||||
| Net change in unrealized appreciation from investments | 4,283,504 | 5,302,936 | ||||||||
| Change in net assets resulting from operations | 4,175,926 | 4,559,948 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (23,876 | ) | (21,794 | ) | ||||||
| Class C | (1,167 | ) | (997 | ) | ||||||
| Class R1 | (6,737 | ) | (8,072 | ) | ||||||
| Class R2 | (196,507 | ) | (160,910 | ) | ||||||
| Institutional Service Class | (59,047 | ) | (48,887 | ) | ||||||
| Institutional Class | (46,437 | ) | (55,006 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (22,243 | ) | (3,236 | ) | ||||||
| Class C | (1,186 | ) | (250 | ) | ||||||
| Class R1 | (6,983 | ) | (2,262 | ) | ||||||
| Class R2 | (194,549 | ) | (26,150 | ) | ||||||
| Institutional Service Class | (51,605 | ) | (6,368 | ) | ||||||
| Institutional Class | (38,387 | ) | (4,694 | ) | ||||||
| Change in net assets from shareholder distributions | (648,724 | ) | (338,626 | ) | ||||||
| Change in net assets from capital transactions | 12,232,040 | 15,741,115 | ||||||||
| Change in net assets | 15,759,242 | 19,962,437 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 29,330,674 | 9,368,237 | ||||||||
| End of period | $ | 45,089,916 | $ | 29,330,674 | ||||||
| Accumulated undistributed net investment income/(loss) at end of period | $ | (42,903 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 3,362,858 | $ | 1,222,013 | ||||||
| Dividends reinvested | 46,119 | 25,030 | ||||||||
| Cost of shares redeemed | (268,908 | ) | (283,999 | ) | ||||||
| Total Class A | 3,140,069 | 963,044 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 104,074 | 39,204 | ||||||||
| Dividends reinvested | 2,353 | 1,247 | ||||||||
| Cost of shares redeemed | (4,409 | ) | (19,730 | ) | ||||||
| Total Class C | 102,018 | 20,721 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 85
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2035 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | $ | 112,828 | $ | 185,255 | ||||||
| Dividends reinvested | 13,720 | 10,334 | ||||||||
| Cost of shares redeemed | (87,232 | ) | (149,475 | ) | ||||||
| Total Class R1 | 39,316 | 46,114 | ||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | 6,882,542 | 10,545,975 | ||||||||
| Dividends reinvested | 391,056 | 187,060 | ||||||||
| Cost of shares redeemed | (1,291,783 | ) | (626,755 | ) | ||||||
| Total Class R2 | 5,981,815 | 10,106,280 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 2,372,995 | 3,308,517 | ||||||||
| Dividends reinvested | 110,652 | 55,255 | ||||||||
| Cost of shares redeemed | (435,075 | ) | (497,244 | ) | ||||||
| Total Institutional Service Class | 2,048,572 | 2,866,528 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,076,240 | 3,201,159 | ||||||||
| Dividends reinvested | 84,824 | 59,700 | ||||||||
| Cost of shares redeemed | (240,814 | ) | (1,522,431 | ) | ||||||
| Total Institutional Class | 920,250 | 1,738,428 | ||||||||
| Change in net assets from capital transactions | $ | 12,232,040 | $ | 15,741,115 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 424,101 | 186,015 | ||||||||
| Reinvested | 5,875 | 3,927 | ||||||||
| Redeemed | (34,186 | ) | (41,315 | ) | ||||||
| Total Class A Shares | 395,790 | 148,627 | ||||||||
Class C Shares | ||||||||||
| Issued | 12,975 | 6,921 | ||||||||
| Reinvested | 301 | 201 | ||||||||
| Redeemed | (563 | ) | (2,658 | ) | ||||||
| Total Class C Shares | 12,713 | 4,464 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 14,161 | 29,060 | ||||||||
| Reinvested | 1,750 | 1,656 | ||||||||
| Redeemed | (11,076 | ) | (23,656 | ) | ||||||
| Total Class R1 Shares | 4,835 | 7,060 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 859,274 | 1,656,843 | ||||||||
| Reinvested | 49,943 | 29,641 | ||||||||
| Redeemed | (161,031 | ) | (86,944 | ) | ||||||
| Total Class R2 Shares | 748,186 | 1,599,540 | ||||||||
The accompanying notes are an integral part of these financial statements.
86 Semiannual Report 2010
| Nationwide Destination 2035 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 295,876 | 499,674 | ||||||||
| Reinvested | 14,096 | 8,569 | ||||||||
| Redeemed | (54,549 | ) | (67,265 | ) | ||||||
| Total Institutional Service Class Shares | 255,423 | 440,978 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 137,034 | 491,528 | ||||||||
| Reinvested | 10,792 | 9,239 | ||||||||
| Redeemed | (30,158 | ) | (206,488 | ) | ||||||
| Total Institutional Class Shares | 117,668 | 294,279 | ||||||||
| Total change in shares | 1,534,615 | 2,494,948 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 87
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2035 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Net | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net | Asset | Net Assets | to Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .53 | 0 | .04 | 0 | .90 | 0 | .94 | (0 | .08) | (0 | .08) | (0 | .16) | $ | 8 | .31 | 12 | .56% | $ | 5,603,349 | 0 | .83% | 0 | .99% | 0 | .83% | 6 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .68 | 0 | .11 | 0 | .90 | 1 | .01 | (0 | .13) | (0 | .03) | (0 | .16) | $ | 7 | .53 | 15 | .49% | $ | 2,098,910 | 0 | .83% | 1 | .56% | 0 | .83% | 18 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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% | $ | 27,886 | 0 | .87% | 0 | .10% | 1 | .15% | 0 | .85% | |||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .50 | 0 | .05 | 0 | .86 | 0 | .91 | (0 | .07) | (0 | .08) | (0 | .15) | $ | 8 | .26 | 12 | .25% | $ | 191,712 | 1 | .32% | 1 | .14% | 1 | .32% | 6 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .65 | 0 | .09 | 0 | .88 | 0 | .97 | (0 | .09) | (0 | .03) | (0 | .12) | $ | 7 | .50 | 14 | .97% | $ | 78,692 | 1 | .33% | 1 | .35% | 1 | .33% | 18 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .52 | 0 | .06 | 0 | .86 | 0 | .92 | (0 | .07) | (0 | .08) | (0 | .15) | $ | 8 | .29 | 12 | .33% | $ | 776,563 | 1 | .23% | 1 | .43% | 1 | .23% | 6 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .67 | 0 | .09 | 0 | .88 | 0 | .97 | (0 | .09) | (0 | .03) | (0 | .12) | $ | 7 | .52 | 14 | .90% | $ | 668,175 | 1 | .23% | 1 | .43% | 1 | .23% | 18 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .51 | 0 | .06 | 0 | .87 | 0 | .93 | (0 | .08) | (0 | .08) | (0 | .16) | $ | 8 | .28 | 12 | .39% | $ | 26,401,516 | 1 | .08% | 1 | .45% | 1 | .08% | 6 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .67 | 0 | .09 | 0 | .89 | 0 | .98 | (0 | .11) | (0 | .03) | (0 | .14) | $ | 7 | .51 | 15 | .15% | $ | 18,324,931 | 1 | .08% | 1 | .30% | 1 | .08% | 18 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
88 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2035 Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realized | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of | Investment | (Prior to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Unrealized | Net | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Gains (Losses) | Total | Net | Net | Asset | Net Assets | to Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .53 | 0 | .08 | 0 | .88 | 0 | .96 | (0 | .09) | (0 | .08) | (0 | .17) | $ | 8 | .32 | 12 | .77% | $ | 7,249,152 | 0 | .58% | 1 | .95% | 0 | .58% | 6 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .68 | 0 | .12 | 0 | .90 | 1 | .02 | (0 | .14) | (0 | .03) | (0 | .17) | $ | 7 | .53 | 15 | .65% | $ | 4,641,953 | 0 | .58% | 1 | .78% | 0 | .58% | 18 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .55 | 0 | .09 | 0 | .87 | 0 | .96 | (0 | .09) | (0 | .08) | (0 | .17) | $ | 8 | .34 | 12 | .81% | $ | 4,867,624 | 0 | .33% | 2 | .25% | 0 | .33% | 6 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .69 | 0 | .13 | 0 | .91 | 1 | .04 | (0 | .15) | (0 | .03) | (0 | .18) | $ | 7 | .55 | 16 | .07% | $ | 3,518,013 | 0 | .33% | 1 | .95% | 0 | .33% | 18 | .42% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 89
| 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, 2010, the Nationwide Destination 2040 Fund (Class A at NAV) returned 13.47% versus 13.17% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2040 Index, and 19.65% for its former benchmark, the Dow Jones (DJ) Target 2040 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2040 Funds (consisting of 180 funds as of April 30, 2010) was 12.72% for the same time period.
*The benchmark for the Nationwide Destination 2040 Fund changed from the Dow Jones (DJ) Target 2040 Index to the Morningstar (Mstar) Lifetime Moderate 2040 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Small Cap Index Fund (with target allocations of 30% and 12%, respectively), which gained 15.71% and 28.00%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance. Similarly, all 10 sectors within the Russell 2000® Index posted positive returns during the reporting period. The consumer discretionary sector led with 40.6%, and the telecommunications services sector, with 16.7%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the SPDR DJ Wilshire International Real Estate ETF and the Nationwide Bond Index Fund (with target allocations of 2% and 6%, respectively), which returned 3.08% and 2.25%, respectively. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns. Most sectors within the Barclays Capital (BARCAP) U.S. Aggregate Bond Index posted positive returns. The leading component of the Index was commercial mortgage-backed securities, with 12.7%, clearly indicating that investors’ risk appetite had returned to the domestic bond market. The weakest component of the Index, U.S. Treasuries, represented about 30% of the overall index composition and registered -0.2% during the reporting period.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
90 Semiannual Report 2010
Nationwide Destination 2040 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 30 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 23 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 12 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 6 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 6 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 2 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 2 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown on the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 91
| Fund Performance | Nationwide Destination 2040 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 13.47% | 38.01% | -5.08% | ||||||||||
| w/SC3 | 7.01% | 30.03% | -7.16% | |||||||||||
| Class C | w/o SC2 | 12.94% | 37.21% | -5.58% | ||||||||||
| w/SC4 | 11.94% | 36.21% | -5.58% | |||||||||||
Institutional Service Class5 | 13.36% | 38.20% | -4.91% | |||||||||||
Institutional Class5 | 13.57% | 38.58% | -4.68% | |||||||||||
Class R15 | 13.11% | 37.44% | -5.52% | |||||||||||
Class R25 | ||||||||||||||
| 13.15% | 37.56% | -5.39% | ||||||||||||
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 | 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
| Expense | ||||
| Ratio* | ||||
| Class A | 1.12% | |||
| Class C | 1.66% | |||
| Class R1 | 1.54% | |||
| Class R2 | 1.39% | |||
| Institutional Service Class | 0.88% | |||
| Institutional Class | 0.66% | |||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
92 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2040 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,134.70 | 4.39 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,129.40 | 7.02 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.20 | 6.66 | 1.33 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,131.10 | 6.50 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,131.50 | 5.71 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,133.60 | 3.07 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,135.70 | 1.75 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 93
| Portfolio Summary | Nationwide Destination 2040 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 93 | .0% | ||
| Fixed Income Fund | 6 | .1% | ||
| Money Market Fund | 1 | .0% | ||
| Liabilities in excess of other assets | (0 | .1)% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .1% | ||
| Nationwide International Index Fund, Institutional Class | 22 | .2% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .2% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 12 | .3% | ||
| Nationwide Bond Index Fund, Institutional Class | 6 | .1% | ||
| Vanguard Emerging Markets Fund | 5 | .9% | ||
| Credit Suisse Commodity Return Strategy Fund | 5 | .1% | ||
| Vanguard REIT Fund | 2 | .1% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .0% | ||
| Nationwide Money Market Fund, Institutional Class | 1 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
94 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2040 Fund
| Mutual Funds 90.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 83.0% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 232,564 | $ | 1,944,237 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 1,228,294 | 8,573,493 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 374,286 | 5,105,265 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 1,165,362 | 11,630,310 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 433,061 | 4,755,004 | ||||||
Total Equity Funds (cost $26,716,907) | 32,008,309 | |||||||
Fixed Income Fund 6.1% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 210,610 | 2,356,723 | ||||||
Total Fixed Income Fund (cost $2,315,652) | 2,356,723 | |||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00%(a)(b) | 390,533 | 390,533 | ||||||
Total Money Market Fund (cost $390,533) | 390,533 | |||||||
Total Mutual Funds (cost $29,423,092) | 34,755,565 | |||||||
| Exchange Traded Funds 10.0% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 10.0% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 21,818 | 771,484 | ||||||
| Vanguard Emerging Markets Fund | 54,365 | 2,286,592 | ||||||
| Vanguard REIT Fund | 15,137 | 791,665 | ||||||
Total Equity Funds (cost $2,974,026) | 3,849,741 | |||||||
Total Exchange Traded Funds (cost $2,974,026) | 3,849,741 | |||||||
Total Investments (cost $32,397,118) (c) — 100.1% | 38,605,306 | |||||||
Liabilities in excess of other assets — (0.1)% | (44,831 | ) | ||||||
NET ASSETS — 100.0% | $ | 38,560,475 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 95
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2040 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $27,535,190) | $ | 32,811,328 | |||
| Investments in non-affiliates, at value (cost $4,861,928) | 5,793,978 | ||||
| Total Investments | 38,605,306 | ||||
| Cash | 11,010 | ||||
| Interest and dividends receivable | 6,090 | ||||
| Receivable for investments sold | 199,588 | ||||
| Receivable for capital shares issued | 80,621 | ||||
| Total Assets | 38,902,615 | ||||
Liabilities: | |||||
| Payable for investments purchased | 12,136 | ||||
| Payable for capital shares redeemed | 301,110 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 10,452 | ||||
| Distribution fees | 12,116 | ||||
| Administrative servicing fees | 6,326 | ||||
| Total Liabilities | 342,140 | ||||
Net Assets | $ | 38,560,475 | |||
Represented by: | |||||
| Capital | $ | 34,012,394 | |||
| Accumulated net investment loss | (59,771 | ) | |||
| Accumulated net realized losses from investment transactions | (1,600,336 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 5,276,138 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 932,050 | ||||
Net Assets | $ | 38,560,475 | |||
Net Assets: | |||||
| Class A Shares | $ | 5,026,124 | |||
| Class C Shares | 317,037 | ||||
| Class R1 Shares | 4,297,468 | ||||
| Class R2 Shares | 20,488,672 | ||||
| Institutional Service Class Shares | 4,897,869 | ||||
| Institutional Class Shares | 3,533,305 | ||||
| Total | $ | 38,560,475 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 620,066 | ||||
| Class C Shares | 39,116 | ||||
| Class R1 Shares | 531,753 | ||||
| Class R2 Shares | 2,534,359 | ||||
| Institutional Service Class Shares | 602,285 | ||||
| Institutional Class Shares | 433,904 | ||||
| Total | 4,761,483 | ||||
The accompanying notes are an integral part of these financial statements.
96 Semiannual Report 2010
| 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 | $ | 8.11 | |||
| Class C Shares (a) | $ | 8.10 | |||
| Class R1 Shares | $ | 8.08 | |||
| Class R2 Shares | $ | 8.08 | |||
| Institutional Service Class Shares | $ | 8.13 | |||
| Institutional Class Shares | $ | 8.14 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 8.60 | |||
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.
2010 Semiannual Report 97
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2040 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 5 | |||
| Dividend income from affiliates | 241,523 | ||||
| Dividend income from non-affiliates | 131,752 | ||||
| Total Income | 373,280 | ||||
EXPENSES: | |||||
| Investment advisory fees | 52,695 | ||||
| Distribution fees Class A | 4,443 | ||||
| Distribution fees Class C | 1,396 | ||||
| Distribution fees Class R1 | 12,858 | ||||
| Distribution fees Class R2 | 42,797 | ||||
| Administrative servicing fees Class A | 4,443 | ||||
| Administrative servicing fees Class R1 | 4,946 | ||||
| Administrative servicing fees Class R2 | 21,398 | ||||
| Administrative servicing fees Institutional Service Class | 4,829 | ||||
| Total Expenses | 149,805 | ||||
NET INVESTMENT INCOME | 223,475 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (226,399 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (6,159 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (232,558 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 3,516,496 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 301,690 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 3,818,186 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 3,585,628 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,809,103 | |||
The accompanying notes are an integral part of these financial statements.
98 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2040 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 223,475 | $ | 209,252 | ||||||
| Net realized losses from investment transactions | (232,558 | ) | (953,963 | ) | ||||||
| Net change in unrealized appreciation from investments | 3,818,186 | 4,681,478 | ||||||||
| Change in net assets resulting from operations | 3,809,103 | 3,936,767 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (21,807 | ) | (19,072 | ) | ||||||
| Class C | (2,849 | ) | (1,999 | ) | ||||||
| Class R1 | (33,974 | ) | (21,987 | ) | ||||||
| Class R2 | (151,593 | ) | (110,477 | ) | ||||||
| Institutional Service Class | (37,550 | ) | (25,044 | ) | ||||||
| Institutional Class | (35,473 | ) | (45,848 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (20,747 | ) | (2,922 | ) | ||||||
| Class C | (2,908 | ) | (582 | ) | ||||||
| Class R1 | (35,254 | ) | (3,696 | ) | ||||||
| Class R2 | (152,759 | ) | (17,866 | ) | ||||||
| Institutional Service Class | (33,356 | ) | (2,766 | ) | ||||||
| Institutional Class | (29,858 | ) | (4,419 | ) | ||||||
| Change in net assets from shareholder distributions | (558,128 | ) | (256,678 | ) | ||||||
| Change in net assets from capital transactions | 10,536,369 | 14,081,359 | ||||||||
| Change in net assets | 13,787,344 | 17,761,448 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 24,773,131 | 7,011,683 | ||||||||
| End of period | $ | 38,560,475 | $ | 24,773,131 | ||||||
| Accumulated net investment income/(loss) at end of period | $ | (59,771 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 3,207,962 | $ | 1,294,215 | ||||||
| Dividends reinvested | 42,440 | 21,954 | ||||||||
| Cost of shares redeemed | (594,261 | ) | (294,377 | ) | ||||||
| Total Class A | 2,656,141 | 1,021,792 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 119,568 | 43,509 | ||||||||
| Dividends reinvested | 5,757 | 2,581 | ||||||||
| Cost of shares redeemed | (25,590 | ) | (14,930 | ) | ||||||
| Total Class C | 99,735 | 31,160 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 1,512,521 | 2,233,786 | ||||||||
| Dividends reinvested | 69,228 | 25,683 | ||||||||
| Cost of shares redeemed | (704,064 | ) | (179,209 | ) | ||||||
| Total Class R1 | 877,685 | 2,080,260 | ||||||||
Amounts designated as ‘‘–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 99
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2040 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 4,711,446 | $ | 8,133,287 | ||||||
| Dividends reinvested | 304,352 | 128,343 | ||||||||
| Cost of shares redeemed | (378,159 | ) | (377,960 | ) | ||||||
| Total Class R2 | 4,637,639 | 7,883,670 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 1,761,501 | 2,126,136 | ||||||||
| Dividends reinvested | 70,906 | 27,810 | ||||||||
| Cost of shares redeemed | (263,530 | ) | (115,859 | ) | ||||||
| Total Institutional Service Class | 1,568,877 | 2,038,087 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 972,509 | 2,435,403 | ||||||||
| Dividends reinvested | 65,331 | 50,267 | ||||||||
| Cost of shares redeemed | (341,548 | ) | (1,459,280 | ) | ||||||
| Total Institutional Class | 696,292 | 1,026,390 | ||||||||
| Change in net assets from capital transactions | $ | 10,536,369 | $ | 14,081,359 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 414,854 | 207,041 | ||||||||
| Reinvested | 5,562 | 3,624 | ||||||||
| Redeemed | (77,042 | ) | (44,647 | ) | ||||||
| Total Class A Shares | 343,374 | 166,018 | ||||||||
Class C Shares | ||||||||||
| Issued | 15,343 | 7,530 | ||||||||
| Reinvested | 753 | 432 | ||||||||
| Redeemed | (3,350 | ) | (2,551 | ) | ||||||
| Total Class C Shares | 12,746 | 5,411 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 196,579 | 355,378 | ||||||||
| Reinvested | 9,085 | 4,276 | ||||||||
| Redeemed | (90,210 | ) | (25,359 | ) | ||||||
| Total Class R1 Shares | 115,454 | 334,295 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 606,673 | 1,332,213 | ||||||||
| Reinvested | 39,941 | 21,175 | ||||||||
| Redeemed | (47,501 | ) | (58,305 | ) | ||||||
| Total Class R2 Shares | 599,113 | 1,295,083 | ||||||||
Amounts designated as ‘‘–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
100 Semiannual Report 2010
| Nationwide Destination 2040 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 226,237 | 333,301 | ||||||||
| Reinvested | 9,269 | 4,475 | ||||||||
| Redeemed | (33,484 | ) | (18,459 | ) | ||||||
| Total Institutional Service Class Shares | 202,022 | 319,317 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 126,246 | 392,178 | ||||||||
| Reinvested | 8,540 | 8,104 | ||||||||
| Redeemed | (43,785 | ) | (205,488 | ) | ||||||
| Total Institutional Class Shares | 91,001 | 194,794 | ||||||||
| Total change in shares | 1,363,710 | 2,314,918 | ||||||||
Amounts designated as ‘‘–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 101
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2040 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Realized | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | and | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Unrealized | Net | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Net | Gains (Losses) | Total | Net | Net | Asset | Net Assets | to Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .30 | 0 | .04 | 0 | .92 | 0 | .96 | (0 | .08) | (0 | .07) | (0 | .15) | $ | 8 | .11 | 13 | .47% | $ | 5,026,124 | 0 | .83% | 0 | .92% | 0 | .83% | 7 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .48 | 0 | .09 | 0 | .87 | 0 | .96 | (0 | .12) | (0 | .02) | (0 | .14) | $ | 7 | .30 | 15 | .25% | $ | 2,018,572 | 0 | .83% | 1 | .37% | 0 | .83% | 16 | .68% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .31 | 0 | .05 | 0 | .88 | 0 | .93 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .10 | 12 | .94% | $ | 317,037 | 1 | .33% | 1 | .39% | 1 | .33% | 7 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .48 | 0 | .07 | 0 | .86 | 0 | .93 | (0 | .08) | (0 | .02) | (0 | .10) | $ | 7 | .31 | 14 | .81% | $ | 192,720 | 1 | .33% | 1 | .08% | 1 | .33% | 16 | .68% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .28 | 0 | .04 | 0 | .90 | 0 | .94 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .08 | 13 | .11% | $ | 4,297,468 | 1 | .23% | 1 | .17% | 1 | .23% | 7 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .47 | 0 | .07 | 0 | .86 | 0 | .93 | (0 | .10) | (0 | .02) | (0 | .12) | $ | 7 | .28 | 14 | .81% | $ | 3,031,797 | 1 | .23% | 1 | .06% | 1 | .23% | 16 | .68% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 7 | .28 | 0 | .05 | 0 | .89 | 0 | .94 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .08 | 13 | .15% | $ | 20,488,672 | 1 | .08% | 1 | .31% | 1 | .08% | 7 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .47 | 0 | .08 | 0 | .85 | 0 | .93 | (0 | .10) | (0 | .02) | (0 | .12) | $ | 7 | .28 | 14 | .89% | $ | 14,091,812 | 1 | .08% | 1 | .17% | 1 | .08% | 16 | .68% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
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. |
| (f) | Per share calculations were performed using average share method. |
| (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.
102 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2040 Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Realized | Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset | and | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Unrealized | Net | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Net | Gains (Losses) | Total | Net | Net | Asset | Net Assets | to Average | to Average | to Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of | Investment | from | from | Investment | Realized | Total | Value, End | Total | at End | Net | Net | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Period | Income | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Assets (c) | Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 7 | .32 | 0 | .07 | 0 | .89 | 0 | .96 | (0 | .08) | (0 | .07) | (0 | .15) | $ | 8 | .13 | 13 | .36% | $ | 4,897,869 | 0 | .58% | 1 | .79% | 0 | .58% | 7 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .49 | 0 | .11 | 0 | .87 | 0 | .98 | (0 | .13) | (0 | .02) | (0 | .15) | $ | 7 | .32 | 15 | .68% | $ | 2,928,077 | 0 | .58% | 1 | .61% | 0 | .58% | 16 | .68% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 7 | .32 | 0 | .08 | 0 | .90 | 0 | .98 | (0 | .09) | (0 | .07) | (0 | .16) | $ | 8 | .14 | 13 | .57% | $ | 3,533,305 | 0 | .33% | 2 | .19% | 0 | .33% | 7 | .90% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .50 | 0 | .12 | 0 | .86 | 0 | .98 | (0 | .14) | (0 | .02) | (0 | .16) | $ | 7 | .32 | 15 | .74% | $ | 2,510,153 | 0 | .33% | 1 | .89% | 0 | .33% | 16 | .68% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 103
| 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, 2010, the Nationwide Destination 2045 Fund (Class A at NAV) returned 13.73% versus 13.15% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2045 Index, and 19.97% for its former benchmark, the Dow Jones (DJ) Target 2045 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2045 Funds (consisting of 104 funds as of April 30, 2010) was 13.53% for the same time period.
*The benchmark for the Nationwide Destination 2045 Fund changed from the Dow Jones (DJ) Target 2045 Index to the Morningstar (Mstar) Lifetime Moderate 2045 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Small Cap Index Fund (with target allocations of 30% and 12%, respectively), which gained 15.71% and 28.00%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance. Similarly, all 10 sectors within the Russell 2000® Index posted positive returns during the reporting period. The consumer discretionary sector led with 40.6%, and the telecommunications services sector, with 16.7%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the SPDR DJ Wilshire International Real Estate ETF and the Nationwide Bond Index Fund (with target allocations of 2% and 5%, respectively), which returned 3.08% and 2.25%, respectively. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns. Most sectors within the Barclays Capital (BARCAP) U.S. Aggregate Bond Index posted positive returns. The leading component in the Index was commercial mortgage-backed securities, with 12.7%, clearly indicating that investors’ risk appetite had returned to the domestic bond market. The weakest component in the Index, U.S. Treasuries, represented about 30% of the overall index composition and registered -0.2% during the reporting period.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-
January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
104 Semiannual Report 2010
Nationwide Destination 2045 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 30 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 23 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 12 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 6 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 5 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 3 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 2 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown on the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 105
| Fund Performance | Nationwide Destination 2045 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC12 | 13.73% | 38.76% | -5.15% | ||||||||||
| w/SC23 | 7.22% | 30.88% | -7.23% | |||||||||||
| Class C | w/o SC12 | 13.31% | 37.90% | -5.66% | ||||||||||
| w/SC34 | 12.31% | 36.90% | -5.66% | |||||||||||
Institutional Service Class45 | 13.83% | 39.10% | -5.06% | |||||||||||
Institutional Class45 | 13.84% | 39.34% | -4.75% | |||||||||||
Class R145 | 13.36% | 38.02% | -5.62% | |||||||||||
Class R245 | 13.42% | 38.31% | -5.43% | |||||||||||
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 | 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
| Expense | ||||||||
| Ratio* | ||||||||
| Class A | 1.13% | |||||||
| Class C | 1.66% | |||||||
| Class R1 | 1.55% | |||||||
| Class R2 | 1.39% | |||||||
| Institutional Service Class | 0.88% | |||||||
| Institutional Class | 0.66% | |||||||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
106 Semiannual Report 2010
| 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 Shareholder Expenses
Expense Analysis of a $1,000 Investment
April 30, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2045 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,137.30 | 4.40 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,133.10 | 7.03 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.20 | 6.66 | 1.33 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,133.60 | 6.45 | 1.22 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.74 | 6.11 | 1.22 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,134.20 | 5.71 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,138.30 | 3.08 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,138.40 | 1.75 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 107
| Portfolio Summary | Nationwide Destination 2045 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 93 | .9% | ||
| Fixed Income Fund | 5 | .1% | ||
| Money Market Fund | 1 | .0% | ||
| Liabilities in excess of other assets‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .2% | ||
| Nationwide International Index Fund, Institutional Class | 22 | .2% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .2% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 12 | .3% | ||
| Vanguard Emerging Markets Fund | 5 | .9% | ||
| Nationwide Bond Index Fund, Institutional Class | 5 | .1% | ||
| Credit Suisse Commodity Return Strategy Fund | 5 | .1% | ||
| Vanguard REIT Fund | 3 | .0% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .0% | ||
| Nationwide Money Market Fund, Institutional Class | 1 | .0% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1%. | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
108 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2045 Fund
| Mutual Funds 89.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 83.0% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 107,666 | $ | 900,085 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 568,837 | 3,970,479 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class(a) | 173,268 | 2,363,380 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 539,328 | 5,382,496 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 200,458 | 2,201,032 | ||||||
Total Equity Funds (cost $12,244,556) | 14,817,472 | |||||||
Fixed Income Fund 5.1% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) (cost $895,341) | 81,246 | 909,140 | ||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) (cost $180,784) | 180,784 | 180,784 | ||||||
Total Mutual Funds (cost $13,320,681) | 15,907,396 | |||||||
| Exchange Traded Funds 10.9% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 10.9% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 10,019 | 354,272 | ||||||
| Vanguard Emerging Markets Fund | 25,003 | 1,051,627 | ||||||
| Vanguard REIT Fund | 10,427 | 545,332 | ||||||
Total Equity Funds (cost $1,492,705) | 1,951,231 | |||||||
Total Exchange Traded Funds (cost $1,492,705) | 1,951,231 | |||||||
Total Investments (cost $14,813,386) (c) — 100.0% | 17,858,627 | |||||||
Liabilities in excess of other assets — 0.0% | (5,389 | ) | ||||||
NET ASSETS — 100.0% | $ | 17,853,238 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 109
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2045 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $12,450,971) | $ | 15,007,311 | |||
| Investments in non-affiliates, at value (cost $2,362,415) | 2,851,316 | ||||
| Total Investments | 17,858,627 | ||||
| Cash | 9,744 | ||||
| Interest and dividends receivable | 2,289 | ||||
| Receivable for capital shares issued | 72,856 | ||||
| Total Assets | 17,943,516 | ||||
Liabilities: | |||||
| Payable for investments purchased | 49,195 | ||||
| Payable for capital shares redeemed | 28,494 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 4,792 | ||||
| Distribution fees | 5,169 | ||||
| Administrative servicing fees | 2,628 | ||||
| Total Liabilities | 90,278 | ||||
Net Assets | $ | 17,853,238 | |||
Represented by: | |||||
| Capital | $ | 16,026,999 | |||
| Accumulated net investment loss | (26,078 | ) | |||
| Accumulated net realized losses from investments transactions | (1,192,923 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 2,556,339 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 488,901 | ||||
Net Assets | $ | 17,853,238 | |||
Net Assets: | |||||
| Class A Shares | $ | 2,831,833 | |||
| Class C Shares | 95,879 | ||||
| Class R1 Shares | 302,154 | ||||
| Class R2 Shares | 10,737,194 | ||||
| Institutional Service Class Shares | 1,602,516 | ||||
| Institutional Class Shares | 2,283,662 | ||||
| Total | $ | 17,853,238 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 350,023 | ||||
| Class C Shares | 11,882 | ||||
| Class R1 Shares | 37,489 | ||||
| Class R2 Shares | 1,333,197 | ||||
| Institutional Service Class Shares | 198,348 | ||||
| Institutional Class Shares | 281,515 | ||||
| Total | 2,212,454 | ||||
The accompanying notes are an integral part of these financial statements.
110 Semiannual Report 2010
| 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 | $ | 8.09 | |||
| Class C Shares (a) | $ | 8.07 | |||
| Class R1 Shares | $ | 8.06 | |||
| Class R2 Shares | $ | 8.05 | |||
| Institutional Service Class Shares | $ | 8.08 | |||
| Institutional Class Shares | $ | 8.11 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 8.58 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| (a) | For Class 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.
2010 Semiannual Report 111
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2045 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 103,708 | |||
| Dividend income from non-affiliates | 63,288 | ||||
| Total Income | 166,996 | ||||
EXPENSES: | |||||
| Investment advisory fees | 23,934 | ||||
| Distribution fees Class A | 2,457 | ||||
| Distribution fees Class C | 386 | ||||
| Distribution fees Class R1 | 582 | ||||
| Distribution fees Class R2 | 22,476 | ||||
| Administrative servicing fees Class A | 2,456 | ||||
| Administrative servicing fees Class R1 | 224 | ||||
| Administrative servicing fees Class R2 | 11,238 | ||||
| Administrative servicing fees Institutional Service Class | 1,572 | ||||
| Total Expenses | 65,325 | ||||
NET INVESTMENT INCOME | 101,671 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (118,464 | ) | |||
| Net realized losses from investment transactions with non-affiliates | (4,447 | ) | |||
| Net realized losses from affiliated and non-affiliated investments | (122,911 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 1,594,464 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 198,575 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 1,793,039 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 1,670,128 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,771,799 | |||
The accompanying notes are an integral part of these financial statements.
112 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2045 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 101,671 | $ | 85,663 | ||||||
| Net realized losses from investments | (122,911 | ) | (919,050 | ) | ||||||
| Net change in unrealized appreciation from investments | 1,793,039 | 2,422,972 | ||||||||
| Change in net assets resulting from operations | 1,771,799 | 1,589,585 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (10,518 | ) | (9,150 | ) | ||||||
| Class C | (659 | ) | (334 | ) | ||||||
| Class R1 | (1,202 | ) | (1,087 | ) | ||||||
| Class R2 | (79,484 | ) | (52,855 | ) | ||||||
| Institutional Service Class | (13,363 | ) | (6,203 | ) | ||||||
| Institutional Class | (22,523 | ) | (22,481 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (9,089 | ) | (3,117 | ) | ||||||
| Class C | (646 | ) | (46 | ) | ||||||
| Class R1 | (1,145 | ) | (603 | ) | ||||||
| Class R2 | (72,992 | ) | (19,905 | ) | ||||||
| Institutional Service Class | (10,741 | ) | (1,679 | ) | ||||||
| Institutional Class | (17,290 | ) | (6,626 | ) | ||||||
| Change in net assets from shareholder distributions | (239,652 | ) | (124,086 | ) | ||||||
| Change in net assets from capital transactions | 5,477,205 | 6,322,147 | ||||||||
| Change in net assets | 7,009,352 | 7,787,646 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 10,843,886 | 3,056,240 | ||||||||
| End of period | $ | 17,853,238 | $ | 10,843,886 | ||||||
| Accumulated net investment income/(loss) at end of period | $ | (26,078 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,835,958 | $ | 551,631 | ||||||
| Dividends reinvested | 19,607 | 12,267 | ||||||||
| Cost of shares redeemed | (129,514 | ) | (98,151 | ) | ||||||
| Total Class A | 1,726,051 | 465,747 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 25,056 | 42,366 | ||||||||
| Dividends reinvested | 1,305 | 380 | ||||||||
| Cost of shares redeemed | (95 | ) | (787 | ) | ||||||
| Total Class C | 26,266 | 41,959 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | $ | 172,229 | $ | 64,038 | ||||||
| Dividends reinvested | 2,347 | 1,690 | ||||||||
| Cost of shares redeemed | (2,396 | ) | (30,224 | ) | ||||||
| Total Class R1 | 172,180 | 35,504 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 113
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2045 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 2,774,558 | $ | 4,771,759 | ||||||
| Dividends reinvested | 152,476 | 72,760 | ||||||||
| Cost of shares redeemed | (479,673 | ) | (350,341 | ) | ||||||
| Total Class R2 | 2,447,361 | 4,494,178 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 729,090 | 718,578 | ||||||||
| Dividends reinvested | 24,104 | 7,882 | ||||||||
| Cost of shares redeemed | (126,544 | ) | (100,668 | ) | ||||||
| Total Institutional Service Class | 626,650 | 625,792 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,356,879 | 759,034 | ||||||||
| Dividends reinvested | 39,813 | 29,107 | ||||||||
| Cost of shares redeemed | (917,995 | ) | (129,174 | ) | ||||||
| Total Institutional Class | 478,697 | 658,967 | ||||||||
| Change in net assets from capital transactions | $ | 5,477,205 | $ | 6,322,147 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 238,710 | 90,832 | ||||||||
| Reinvested | 2,580 | 2,037 | ||||||||
| Redeemed | (16,737 | ) | (14,696 | ) | ||||||
| Total Class A Shares | 224,553 | 78,173 | ||||||||
Class C Shares | ||||||||||
| Issued | 3,189 | 7,805 | ||||||||
| Reinvested | 172 | 64 | ||||||||
| Redeemed | (10 | ) | (108 | ) | ||||||
| Total Class C Shares | 3,351 | 7,761 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 21,905 | 10,738 | ||||||||
| Reinvested | 309 | 287 | ||||||||
| Redeemed | (320 | ) | (4,543 | ) | ||||||
| Total Class R1 Shares | 21,894 | 6,482 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 359,760 | 789,342 | ||||||||
| Reinvested | 20,116 | 12,138 | ||||||||
| Redeemed | (61,104 | ) | (69,057 | ) | ||||||
| Total Class R2 Shares | 318,772 | 732,423 | ||||||||
The accompanying notes are an integral part of these financial statements.
114 Semiannual Report 2010
| Nationwide Destination 2045 Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 94,053 | 111,477 | ||||||||
| Reinvested | 3,176 | 1,284 | ||||||||
| Redeemed | (16,448 | ) | (17,979 | ) | ||||||
| Total Institutional Service Class Shares | 80,781 | 94,782 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 182,223 | 123,202 | ||||||||
| Reinvested | 5,232 | 4,796 | ||||||||
| Redeemed | (122,401 | ) | (22,136 | ) | ||||||
| Total Institutional Class Shares | 65,054 | 105,862 | ||||||||
| Total change in shares | 714,405 | 1,025,483 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 115
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2045 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset 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, 2010 (Unaudited) (f) | $ | 7 | .26 | 0 | .03 | 0 | .95 | 0 | .98 | (0 | .08) | (0 | .07) | (0 | .15) | $ | 8 | .09 | 13 | .73% | $ | 2,831,833 | 0 | .83% | 0 | .73% | 0 | .83% | 11 | .58% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .48 | 0 | .09 | 0 | .87 | 0 | .96 | (0 | .12) | (0 | .06) | (0 | .18) | $ | 7 | .26 | 15 | .22% | $ | 910,313 | 0 | .83% | 1 | .46% | 0 | .83% | 18 | .95% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .25 | 0 | .04 | 0 | .92 | 0 | .96 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .07 | 13 | .31% | $ | 95,879 | 1 | .33% | 1 | .12% | 1 | .33% | 11 | .58% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .47 | 0 | .04 | 0 | .89 | 0 | .93 | (0 | .09) | (0 | .06) | (0 | .15) | $ | 7 | .25 | 14 | .89% | $ | 61,835 | 1 | .33% | 0 | .63% | 1 | .33% | 18 | .95% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .24 | 0 | .03 | 0 | .93 | 0 | .96 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .06 | 13 | .36% | $ | 302,154 | 1 | .22% | 0 | .74% | 1 | .22% | 11 | .58% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .46 | 0 | .08 | 0 | .85 | 0 | .93 | (0 | .09) | (0 | .06) | (0 | .15) | $ | 7 | .24 | 14 | .99% | $ | 112,869 | 1 | .23% | 1 | .27% | 1 | .23% | 18 | .95% | |||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
116 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2045 Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Unrealized | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 7 | .23 | 0 | .05 | 0 | .91 | 0 | .96 | (0 | .07) | (0 | .07) | (0 | .14) | $ | 8 | .05 | 13 | .42% | $ | 10,737,194 | 1 | .08% | 1 | .32% | 1 | .08% | 11 | .58% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .46 | 0 | .07 | 0 | .87 | 0 | .94 | (0 | .11) | (0 | .06) | (0 | .17) | $ | 7 | .23 | 15 | .07% | $ | 7,333,974 | 1 | .08% | 1 | .14% | 1 | .08% | 18 | .95% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 7 | .24 | 0 | .07 | 0 | .92 | 0 | .99 | (0 | .08) | (0 | .07) | (0 | .15) | $ | 8 | .08 | 13 | .83% | $ | 1,602,516 | 0 | .58% | 1 | .91% | 0 | .58% | 11 | .58% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .47 | 0 | .11 | 0 | .85 | 0 | .96 | (0 | .13) | (0 | .06) | (0 | .19) | $ | 7 | .24 | 15 | .53% | $ | 851,684 | 0 | .58% | 1 | .63% | 0 | .58% | 18 | .95% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 7 | .27 | 0 | .08 | 0 | .92 | 1 | .00 | (0 | .09) | (0 | .07) | (0 | .16) | $ | 8 | .11 | 13 | .84% | $ | 2,283,662 | 0 | .33% | 2 | .16% | 0 | .33% | 11 | .58% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .48 | 0 | .13 | 0 | .87 | 1 | .00 | (0 | .15) | (0 | .06) | (0 | .21) | $ | 7 | .27 | 16 | .06% | $ | 1,573,211 | 0 | .33% | 1 | .98% | 0 | .33% | 18 | .95% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 117
| 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, 2010, the Nationwide Destination 2050 Fund (Class A at NAV) returned 13.37% versus 13.08% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate 2050 Index, and 19.97% for its former benchmark, the Dow Jones (DJ) Target 2050 Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target 2050+ Funds (consisting of 151 funds as of April 30, 2010) was 13.05% for the same time period.
*The benchmark for the Nationwide Destination 2050 Fund changed from the Dow Jones (DJ) Target 2050 Index to the Morningstar (Mstar) Lifetime Moderate 2050 Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Small Cap Index Fund (with target allocations of 29% and 12%, respectively), which gained 15.71% and 28.00%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance. Similarly, all 10 sectors within the Russell 2000® Index posted positive returns during the reporting period. The consumer discretionary sector led with 40.6%, and the telecommunications services sector, with 16.7%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
Excluding the Fund’s 1% target allocation to the Nationwide Money Market Fund, which registered 0.00%, the smallest relative contributions to Fund performance during the reporting period came from the Fund’s investments in the SPDR DJ Wilshire International Real Estate ETF and the Nationwide Bond Index Fund (with target allocations of 2% and 4%, respectively), which returned 3.08% and 2.25%, respectively. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns. Most sectors within the Barclays Capital (BARCAP) U.S. Aggregate Bond Index posted positive returns. The leading component in the Index was commercial mortgage-backed securities, with 12.7%, clearly indicating that investors’ risk appetite had returned to the domestic bond market. The weakest component in the Index, U.S. Treasuries, represented about 30% of the overall index composition and registered -0.2% during the reporting period.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-
January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
January to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
118 Semiannual Report 2010
Nationwide Destination 2050 Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 29 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 24 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 13 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 12 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Emerging Market Stocks | Vanguard Emerging Markets (ETF) | 7 | % | 12.78 | % | 55.90 | % | 15.57 | % | 12.90 | % | 3/4/05 | ||||||||||||||||||||
| Commodity Stocks | Credit Suisse Commodity Return Strategy Fund | 5 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 4 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 3 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 2 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 1 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown on the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 119
| Fund Performance | Nationwide Destination 2050 Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 13.37% | 38.52% | -4.90% | ||||||||||
| w/SC3 | 6.89% | 30.65% | -6.99% | |||||||||||
| Class C | w/o SC2 | 12.97% | 37.98% | -5.60% | ||||||||||
| w/SC4 | 11.97% | 36.98% | -5.60% | |||||||||||
Institutional Service Class5 | 13.59% | 38.99% | -4.81% | |||||||||||
Institutional Class5 | 13.64% | 39.37% | -4.57% | |||||||||||
Class R15 | 13.14% | 38.06% | -5.43% | |||||||||||
Class R25 | 13.23% | 38.35% | -5.28% | |||||||||||
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 | 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
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.14% | |||||
| Class C | 1.67% | |||||
| Class R1 | 1.57% | |||||
| Class R2 | 1.40% | |||||
| Institutional Service Class | 0.89% | |||||
| Institutional Class | 0.67% | |||||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
120 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Destination 2050 Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,133.70 | 4.39 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,129.70 | 7.02 | 1.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.20 | 6.66 | 1.33 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,131.40 | 6.50 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,132.30 | 5.71 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service | Actual | 1,000.00 | 1,135.90 | 3.07 | 0.58 | |||||||||||||||
| Class Shares | Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | ||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,136.40 | 1.75 | 0.33 | |||||||||||||||
| Shares | Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | ||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 121
| Portfolio Summary | Nationwide Destination 2050 Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 94 | .9% | ||
| Fixed Income Fund | 4 | .1% | ||
| Money Market Fund | 1 | .0% | ||
| Other assets in excess of liabilities‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 29 | .2% | ||
| Nationwide International Index Fund, Institutional Class | 23 | .3% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 13 | .2% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 12 | .3% | ||
| Vanguard Emerging Markets Fund | 6 | .9% | ||
| Credit Suisse Commodity Return Strategy Fund | 5 | .0% | ||
| Nationwide Bond Index Fund, Institutional Class | 4 | .1% | ||
| Vanguard REIT Fund | 3 | .0% | ||
| SPDR Dow Jones Wilshire International Real Estate Fund | 2 | .0% | ||
| Nationwide Money Market Fund, Institutional Class | 1 | .0% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
122 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Destination 2050 Fund
| Mutual Funds 88.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 83.0% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 161,908 | $ | 1,353,548 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 893,279 | 6,235,088 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 260,466 | 3,552,761 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 783,645 | 7,820,781 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 301,300 | 3,308,272 | ||||||
Total Equity Funds (cost $17,046,303) | 22,270,450 | |||||||
Fixed Income Fund 4.1% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 97,713 | 1,093,411 | ||||||
Total Fixed Income Fund (cost $1,072,602) | 1,093,411 | |||||||
Money Market Fund 1.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00%(a)(b) | 271,882 | 271,882 | ||||||
Total Money Market Fund (cost $271,882) | 271,882 | |||||||
Total Mutual Funds (cost $18,390,787) | 23,635,743 | |||||||
| Exchange Traded Funds 11.9% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 11.9% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 15,014 | 530,895 | ||||||
| Vanguard Emerging Markets Fund | 43,657 | 1,836,214 | ||||||
| Vanguard REIT Fund | 15,618 | 816,821 | ||||||
Total Equity Funds (cost $2,223,399) | 3,183,930 | |||||||
Total Exchange Traded Funds (cost $2,223,399) | 3,183,930 | |||||||
Total Investments (cost $20,614,186)(c) — 100.0% | 26,819,673 | |||||||
Other assets in excess of liabilities — 0.0% | 4,316 | |||||||
NET ASSETS — 100.0% | $ | 26,823,989 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 123
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2050 | |||||
| Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $17,130,547) | $ | 22,282,195 | |||
| Investments in non-affiliates, at value (cost $3,483,639) | 4,537,478 | ||||
| Total Investments | 26,819,673 | ||||
| Cash | 16,923 | ||||
| Interest and dividends receivable | 2,998 | ||||
| Receivable for investments sold | 215 | ||||
| Receivable for capital shares issued | 170,226 | ||||
| Total Assets | 27,010,035 | ||||
Liabilities: | |||||
| Payable for investments purchased | 161,169 | ||||
| Payable for capital shares redeemed | 6,508 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 7,139 | ||||
| Distribution fees | 6,361 | ||||
| Administrative servicing fees | 4,869 | ||||
| Total Liabilities | 186,046 | ||||
Net Assets | $ | 26,823,989 | |||
Represented by: | |||||
| Capital | $ | 21,586,462 | |||
| Accumulated net investment loss | (39,401 | ) | |||
| Accumulated net realized losses from investment transactions | (928,559 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 5,151,648 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 1,053,839 | ||||
Net Assets | $ | 26,823,989 | |||
Net Assets: | |||||
| Class A Shares | $ | 12,746,172 | |||
| Class C Shares | 12,997 | ||||
| Class R1 Shares | 402,721 | ||||
| Class R2 Shares | 8,916,364 | ||||
| Institutional Service Class Shares | 3,796,294 | ||||
| Institutional Class Shares | 949,441 | ||||
| Total | $ | 26,823,989 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,571,118 | ||||
| Class C Shares | 1,608 | ||||
| Class R1 Shares | 49,785 | ||||
| Class R2 Shares | 1,104,835 | ||||
| Institutional Service Class Shares | 467,731 | ||||
| Institutional Class Shares | 116,787 | ||||
| Total | 3,311,864 | ||||
The accompanying notes are an integral part of these financial statements.
124 Semiannual Report 2010
| 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 | $ | 8.11 | |||
| Class C Shares (a) | $ | 8.08 | |||
| Class R1 Shares | $ | 8.09 | |||
| Class R2 Shares | $ | 8.07 | |||
| Institutional Service Class Shares | $ | 8.12 | |||
| Institutional Class Shares | $ | 8.13 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 8.60 | |||
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.
2010 Semiannual Report 125
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Destination 2050 | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 3 | |||
| Dividend income from affiliates | 178,503 | ||||
| Dividend income from non-affiliates | 109,238 | ||||
| Total Income | 287,744 | ||||
EXPENSES: | |||||
| Investment advisory fees | 38,267 | ||||
| Distribution fees Class A | 14,362 | ||||
| Distribution fees Class C | 52 | ||||
| Distribution fees Class R1 | 1,213 | ||||
| Distribution fees Class R2 | 17,430 | ||||
| Administrative servicing fees Class A | 14,362 | ||||
| Administrative servicing fees Class R1 | 466 | ||||
| Administrative servicing fees Class R2 | 8,715 | ||||
| Administrative servicing fees Institutional Service Class | 3,608 | ||||
| Total Expenses | 98,475 | ||||
NET INVESTMENT INCOME | 189,269 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions with affiliates | 154,869 | ||||
| Net realized gains from investment transactions with non-affiliates | 132,092 | ||||
| Net realized gains from affiliated and non-affiliated investments | 286,961 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 2,177,231 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 181,604 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 2,358,835 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 2,645,796 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,835,065 | |||
The accompanying notes are an integral part of these financial statements.
126 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Destination 2050 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 189,269 | $ | 161,345 | ||||||
| Net realized gains/(losses) from investment transactions | 286,961 | (1,019,199 | ) | |||||||
| Net change in unrealized appreciation from investments | 2,358,835 | 5,081,615 | ||||||||
| Change in net assets resulting from operations | 2,835,065 | 4,223,761 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (114,099 | ) | (72,871 | ) | ||||||
| Class C | (91 | ) | (105 | ) | ||||||
| Class R1 | (3,782 | ) | (5,047 | ) | ||||||
| Class R2 | (61,310 | ) | (48,702 | ) | ||||||
| Institutional Service Class | (27,712 | ) | (17,348 | ) | ||||||
| Institutional Class | (21,676 | ) | (25,364 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (50,992 | ) | (1,324 | ) | ||||||
| Class C | (46 | ) | (42 | ) | ||||||
| Class R1 | (1,881 | ) | (2,060 | ) | ||||||
| Class R2 | (29,003 | ) | (13,102 | ) | ||||||
| Institutional Service Class | (11,597 | ) | (2,929 | ) | ||||||
| Institutional Class | (8,591 | ) | (4,746 | ) | ||||||
| Change in net assets from shareholder distributions | (330,780 | ) | (193,640 | ) | ||||||
| Change in net assets from capital transactions | 3,923,609 | 12,977,329 | ||||||||
| Change in net assets | 6,427,894 | 17,007,450 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 20,396,095 | 3,388,645 | ||||||||
| End of period | $ | 26,823,989 | $ | 20,396,095 | ||||||
| Accumulated net investment income/(loss) at end of period | $ | (39,401 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,860,929 | $ | 8,587,475 | ||||||
| Dividends reinvested | 165,082 | 74,195 | ||||||||
| Cost of shares redeemed | (876,186 | ) | (1,318,180 | ) | ||||||
| Total Class A | 1,149,825 | 7,343,490 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 3,569 | 1,405 | ||||||||
| Dividends reinvested | 137 | 147 | ||||||||
| Cost of shares redeemed | (810 | ) | – | |||||||
| Total Class C | 2,896 | 1,552 | ||||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 80,880 | 161,747 | ||||||||
| Dividends reinvested | 5,663 | 7,107 | ||||||||
| Cost of shares redeemed | (104,191 | ) | (155,403 | ) | ||||||
| Total Class R1 | (17,648 | ) | 13,451 | |||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 127
Statements of Changes in Net Assets (Continued)
| Nationwide Destination 2050 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 2,538,785 | $ | 3,285,323 | ||||||
| Dividends reinvested | 90,313 | 61,804 | ||||||||
| Cost of shares redeemed | (76,607 | ) | (300,890 | ) | ||||||
| Total Class R2 | 2,552,491 | 3,046,237 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 1,959,297 | 2,610,000 | ||||||||
| Dividends reinvested | 39,309 | 20,277 | ||||||||
| Cost of shares redeemed | (823,886 | ) | (851,577 | ) | ||||||
| Total Institutional Service Class | 1,174,720 | 1,778,700 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 188,963 | 812,614 | ||||||||
| Dividends reinvested | 30,267 | 30,110 | ||||||||
| Cost of shares redeemed | (1,157,905 | ) | (48,825 | ) | ||||||
| Total Institutional Class | (938,675 | ) | 793,899 | |||||||
| Change in net assets from capital transactions | $ | 3,923,609 | $ | 12,977,329 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 239,885 | 1,583,290 | ||||||||
| Reinvested | 21,608 | 11,980 | ||||||||
| Redeemed | (113,415 | ) | (203,548 | ) | ||||||
| Total Class A Shares | 148,078 | 1,391,722 | ||||||||
Class C Shares | ||||||||||
| Issued | 456 | 166 | ||||||||
| Reinvested | 18 | 25 | ||||||||
| Redeemed | (109 | ) | – | |||||||
| Total Class C Shares | 365 | 191 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 10,193 | 24,921 | ||||||||
| Reinvested | 743 | 1,202 | ||||||||
| Redeemed | (13,275 | ) | (23,221 | ) | ||||||
| Total Class R1 Shares | (2,339 | ) | 2,902 | |||||||
Class R2 Shares | ||||||||||
| Issued | 326,586 | 523,307 | ||||||||
| Reinvested | 11,883 | 10,345 | ||||||||
| Redeemed | (9,952 | ) | (40,850 | ) | ||||||
| Total Class R2 Shares | 328,517 | 492,802 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 251,685 | 395,750 | ||||||||
| Reinvested | 5,152 | 3,292 | ||||||||
| Redeemed | (107,741 | ) | (133,036 | ) | ||||||
| Total Institutional Service Class Shares | 149,096 | 266,006 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
128 Semiannual Report 2010
| Nationwide Destination 2050 Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 24,596 | 130,710 | ||||||||
| Reinvested | 3,962 | 4,941 | ||||||||
| Redeemed | (152,195 | ) | (7,187 | ) | ||||||
| Total Institutional Class Shares | (123,637 | ) | 128,464 | |||||||
| Total change in shares | 500,080 | 2,282,087 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 129
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2050 Fund
| Operations | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .26 | 0 | .06 | 0 | .91 | 0 | .97 | (0 | .08) | (0 | .04) | (0 | .12) | $ | 8 | .11 | 13 | .37% | $ | 12,746,172 | 0 | .83% | 1 | .66% | 0 | .83% | 9 | .19% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .42 | 0 | .08 | 0 | .94 | 1 | .02 | (0 | .14) | (0 | .04) | (0 | .18) | $ | 7 | .26 | 16 | .63% | $ | 10,334,866 | 0 | .83% | 1 | .19% | 0 | .83% | 21 | .10% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .25 | 0 | .04 | 0 | .90 | 0 | .94 | (0 | .07) | (0 | .04) | (0 | .11) | $ | 8 | .08 | 12 | .97% | $ | 12,997 | 1 | .33% | 1 | .15% | 1 | .33% | 9 | .19% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .40 | 0 | .08 | 0 | .91 | 0 | .99 | (0 | .10) | (0 | .04) | (0 | .14) | $ | 7 | .25 | 15 | .91% | $ | 9,006 | 1 | .33% | 1 | .23% | 1 | .33% | 21 | .10% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .25 | 0 | .06 | 0 | .89 | 0 | .95 | (0 | .07) | (0 | .04) | (0 | .11) | $ | 8 | .09 | 13 | .14% | $ | 402,721 | 1 | .23% | 1 | .54% | 1 | .23% | 9 | .19% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .40 | 0 | .09 | 0 | .90 | 0 | .99 | (0 | .10) | (0 | .04) | (0 | .14) | $ | 7 | .25 | 15 | .94% | $ | 377,829 | 1 | .23% | 1 | .49% | 1 | .23% | 21 | .10% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .23 | 0 | .05 | 0 | .90 | 0 | .95 | (0 | .07) | (0 | .04) | (0 | .11) | $ | 8 | .07 | 13 | .23% | $ | 8,916,364 | 1 | .08% | 1 | .29% | 1 | .08% | 9 | .19% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .39 | 0 | .08 | 0 | .92 | 1 | .00 | (0 | .12) | (0 | .04) | (0 | .16) | $ | 7 | .23 | 16 | .14% | $ | 5,612,611 | 1 | .08% | 1 | .29% | 1 | .08% | 21 | .10% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 7 | .26 | 0 | .07 | 0 | .91 | 0 | .98 | (0 | .08) | (0 | .04) | (0 | .12) | $ | 8 | .12 | 13 | .59% | $ | 3,796,294 | 0 | .58% | 1 | .73% | 0 | .58% | 9 | .19% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .41 | 0 | .10 | 0 | .93 | 1 | .03 | (0 | .14) | (0 | .04) | (0 | .18) | $ | 7 | .26 | 16 | .73% | $ | 2,313,686 | 0 | .58% | 1 | .50% | 0 | .58% | 21 | .10% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .89 | 0 | .12 | (4 | .33) | (4 | .21) | (0 | .26) | (0 | .01) | (0 | .27) | $ | 6 | .41 | (39 | .50%) | $ | 337,395 | 0 | .60% | 1 | .47% | 0 | .65% | 34 | .38% | |||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .03 | 0 | .90 | 0 | .93 | (0 | .04) | – | (0 | .04) | $ | 10 | .89 | 9 | .28% | $ | 1,093 | 0 | .70% | 1 | .57% | 0 | .79% | 0 | .82% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
130 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Destination 2050 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 | Value, End | Total | at End | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Gains | Distributions | of Period | Return (a)(b) | of Period | Net Assets (c) | Net Assets (c) | Net Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .27 | 0 | .11 | 0 | .88 | 0 | .99 | (0 | .09) | (0 | .04) | (0 | .13) | $ | 8 | .13 | 13 | .64% | $ | 949,441 | 0 | .33% | 2 | .81% | 0 | .33% | 9 | .19% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .42 | 0 | .14 | 0 | .91 | 1 | .05 | (0 | .16) | (0 | .04) | (0 | .20) | $ | 7 | .27 | 16 | .99% | $ | 1,748,097 | 0 | .33% | 2 | .15% | 0 | .33% | 21 | .10% | |||||||||||||||||||||||||||||||||||||||||
| 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 method. |
| (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.
2010 Semiannual Report 131
| 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, 2010, the Nationwide Retirement Income Fund (Class A at NAV) returned 5.03% versus 5.93% for its benchmark, the Morningstar® (Mstar) Lifetime Moderate Income Index, and 5.31% for its former benchmark, the Dow Jones (DJ) Target Today Index*. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target Allocation Conservative Funds (consisting of 467 funds as of April 30, 2010) was 7.24% for the same time period.
*The benchmark for the Nationwide Destination Retirement Income Fund changed from the Dow Jones (DJ) Target Today Index to the Morningstar (Mstar) Lifetime Moderate Income Index effective September 30, 2009.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 18% and 2%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the Standard & Poor’s 500® (S&P 500) Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
The Fund’s investment in the Nationwide Money Market Fund (with a target allocation of 11%) registered 0.00% and provided no meaningful contribution to overall Fund performance. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on money funds (which hold only high-quality, ultra-short-term investments) will continue to be challenged to achieve any sort of return for investors. The Fund’s investment in the SPDR DJ Wilshire International Real Estate ETF (with a target allocation of 1%) returned 3.08% and provided the next-smallest relative contribution to Fund performance. Total returns of securities in the international real estate markets struggled to remain positive during the reporting period as the European real estate market sagged amid concerns about Greece’s budget crisis and its wider implications. As a group, the Asia-Pacific real estate markets produced modestly positive returns.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from mid-January to mid-February, notwithstanding uneven economic data and emerging concerns over the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
132 Semiannual Report 2010
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation** | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Inflation-Protected Bonds | iShares Barclays TIPS Bond Fund (ETF) | 24 | % | 3.42 | % | 10.59 | % | 4.78 | % | 5.38 | % | 12/4/03 | ||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 18 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| Short-Term Bonds | Vanguard Short Term Bond (ETF) | 18 | % | 1.60 | % | 5.04 | % | n/a | 5.63 | % | 4/3/07 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 11 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| International Bonds | Oppenheimer International Bond Fund | 8 | % | 1.35 | % | 18.21 | % | 8.48 | % | 9.70 | % | 9/27/04 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 7 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 5 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Commodities | Credit Suisse Commodity Return Strategy Fund | 3 | % | 2.80 | % | 22.51 | % | 0.13 | % | 1.11 | % | 12/30/04 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 2 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| High-Yield Bonds | T. Rowe Price Institutional High Yield Bond Fund | 2 | % | 11.94 | % | 39.26 | % | 7.61 | % | 7.31 | % | 12/31/84 | ||||||||||||||||||||
| Domestic REITs | Vanguard REIT (ETF) | 1 | % | 34.88 | % | 71.39 | % | 4.16 | % | 6.08 | % | 9/23/04 | ||||||||||||||||||||
| International REITs | SPDR DJ Wilshire International Real Estate (ETF) | 1 | % | 3.08 | % | 50.06 | % | n/a | -11.15 | % | 12/14/06 | |||||||||||||||||||||
| ** | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown is for Institutional Class shares (or equivalent class, except for exchange-traded funds) for each underlying investment. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
2010 Semiannual Report 133
| Fund Performance | Nationwide Retirement Income Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||
| Months* | 1 Yr. | Inception1 | ||||||||||||
| Class A | w/o SC2 | 5.03% | 16.17% | 2.06% | ||||||||||
| w/SC3 | -1.05% | 9.45% | -0.18% | |||||||||||
| Class C | w/o SC2 | 4.82% | 15.50% | 1.49% | ||||||||||
| w/SC4 | 3.82% | 14.50% | 1.49% | |||||||||||
Institutional Service Class5 | 5.17% | 16.39% | 2.27% | |||||||||||
Institutional Class5 | 5.29% | 16.60% | 2.54% | |||||||||||
Class R15 | 4.83% | 15.66% | 1.63% | |||||||||||
Class R25 | 4.93% | 15.80% | 1.82% | |||||||||||
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 | 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
| Expense | ||||||
| Ratio* | ||||||
| Class A | 1.13% | |||||
| Class C | 1.66% | |||||
| Class R1 | 1.56% | |||||
| Class R2 | 1.40% | |||||
| Institutional Service Class | 0.90% | |||||
| Institutional Class | 0.66% | |||||
| * | Current effective prospectus. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
134 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Retirement Income Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,050.30 | 4.22 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,048.20 | 7.31 | 1.44 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,017.65 | 7.20 | 1.44 | |||||||||||||||
| Class R1 Shares | Actual | 1,000.00 | 1,048.30 | 6.25 | 1.23 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,049.30 | 5.49 | 1.08 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,019.44 | 5.41 | 1.08 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,051.70 | 2.95 | 0.58 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.92 | 2.91 | 0.58 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,052.90 | 1.68 | 0.33 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.16 | 1.66 | 0.33 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
2010 Semiannual Report 135
| Portfolio Summary | Nationwide Retirement Income Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Fixed Income Funds | 57 | .5% | ||
| Equity Funds | 29 | .5% | ||
| Money Market Fund | 11 | .0% | ||
| Other assets in excess of liabilities | 2 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 23 | .7% | ||
| Nationwide S&P 500 Index Fund, Institutional Class | 18 | .2% | ||
| Vanguard Short-Term Bond Fund | 17 | .6% | ||
| Nationwide Money Market Fund, Institutional Class | 11 | .2% | ||
| Oppenheimer International Bond Fund, Class Y | 8 | .1% | ||
| Nationwide Bond Index Fund, Institutional Class | 7 | .2% | ||
| Nationwide International Index Fund, Institutional Class | 4 | .9% | ||
| Credit Suisse Commodity Return Strategy Fund | 3 | .0% | ||
| T. Rowe Price High Yield Bond Fund | 2 | .0% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 2 | .1% | ||
| Other Holdings | 2 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
136 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Retirement Income Fund
| Mutual Funds 55.6% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 27.6% | ||||||||
| Credit Suisse Commodity Return Strategy Fund | 74,626 | $ | 623,876 | |||||
| Nationwide International Index Fund, Institutional Class (a) | 143,093 | 998,791 | ||||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 30,790 | 419,977 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 373,764 | 3,730,168 | ||||||
Total Equity Funds (cost $4,812,880) | 5,772,812 | |||||||
Fixed Income Funds 17.0% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 131,262 | 1,468,822 | ||||||
| Oppenheimer International Bond Fund, Class Y | 257,783 | 1,660,123 | ||||||
| T. Rowe Price High Yield Bond Fund | 43,302 | 423,926 | ||||||
Total Fixed Income Funds (cost $3,385,357) | 3,552,871 | |||||||
Money Market Fund 11.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 2,296,323 | 2,296,323 | ||||||
Total Money Market Fund (cost $2,296,323) | 2,296,323 | |||||||
Total Mutual Funds (cost $10,494,560) | 11,622,006 | |||||||
| Exchange Traded Funds 42.4% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 1.9% | ||||||||
| SPDR Dow Jones Wilshire International Real Estate Fund | 5,536 | 195,753 | ||||||
| Vanguard REIT Fund | 3,840 | 200,832 | ||||||
Total Equity Funds (cost $301,007) | 396,585 | |||||||
Fixed Income Funds 40.5% | ||||||||
| iShares Barclays U.S. Treasury Inflation Protected Securities Fund | 45,873 | 4,865,290 | ||||||
| Vanguard Short-Term Bond Fund | 44,913 | 3,602,023 | ||||||
Total Fixed Income Funds (cost $8,240,481) | 8,467,313 | |||||||
Total Exchange Traded Funds (cost $8,541,488) | 8,863,898 | |||||||
Total Investments (cost $19,036,048) (c) — 98.0% | 20,485,904 | |||||||
Other assets in excess of liabilities — 2.0% | 415,594 | |||||||
NET ASSETS — 100.0% | $ | 20,901,498 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
2010 Semiannual Report 137
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Retirement | |||||
| Income Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $7,958,318) | $ | 8,914,081 | |||
| Investments in non-affiliates, at value (cost $11,077,730) | 11,571,823 | ||||
| Total Investments | 20,485,904 | ||||
| Dividends receivable | 9,813 | ||||
| Receivable for investments sold | 44,801 | ||||
| Receivable for capital shares issued | 971,185 | ||||
| Total Assets | 21,511,703 | ||||
Liabilities: | |||||
| Payable for investments purchased | 537,772 | ||||
| Payable for capital shares redeemed | 20,060 | ||||
| Cash overdraft | 39,669 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 5,306 | ||||
| Distribution fees | 4,131 | ||||
| Administrative servicing fees | 3,267 | ||||
| Total Liabilities | 610,205 | ||||
Net Assets | $ | 20,901,498 | |||
Represented by: | |||||
| Capital | $ | 20,024,611 | |||
| Accumulated undistributed net investment income | 43,688 | ||||
| Accumulated net realized losses from investment transactions | (616,657 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 955,763 | ||||
| Net unrealized appreciation/(depreciation) from investments in non-affiliates | 494,093 | ||||
Net Assets | $ | 20,901,498 | |||
Net Assets: | |||||
| Class A Shares | $ | 4,111,159 | |||
| Class C Shares | 1,034 | ||||
| Class R1 Shares | 2,390,987 | ||||
| Class R2 Shares | 6,090,279 | ||||
| Institutional Service Class Shares | 5,237,817 | ||||
| Institutional Class Shares | 3,070,222 | ||||
| Total | $ | 20,901,498 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 418,345 | ||||
| Class C Shares | 105 | ||||
| Class R1 Shares | 243,752 | ||||
| Class R2 Shares | 622,074 | ||||
| Institutional Service Class Shares | 533,352 | ||||
| Institutional Class Shares | 312,368 | ||||
| Total | 2,129,996 | ||||
The accompanying notes are an integral part of these financial statements.
138 Semiannual Report 2010
| 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 | $ | 9.83 | |||
| Class C Shares (a) | $ | 9.82 | |||
| Class R1 Shares | $ | 9.81 | |||
| Class R2 Shares | $ | 9.79 | |||
| Institutional Service Class Shares | $ | 9.82 | |||
| Institutional Class Shares | $ | 9.83 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.43 | |||
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.
2010 Semiannual Report 139
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Retirement | |||||
| Income Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income from affiliates | $ | 59,603 | |||
| Dividend income from non-affiliates | 172,479 | ||||
| Total Income | 232,082 | ||||
EXPENSES: | |||||
| Investment advisory fees | 27,198 | ||||
| Distribution fees Class A | 3,996 | ||||
| Distribution fees Class C | 6 | ||||
| Distribution fees Class R1 | 7,527 | ||||
| Distribution fees Class R2 | 9,766 | ||||
| Administrative servicing fees Class A | 3,996 | ||||
| Administrative servicing fees Class R1 | 2,895 | ||||
| Administrative servicing fees Class R2 | 4,883 | ||||
| Administrative servicing fees Institutional Service Class | 5,078 | ||||
| Total Expenses | 65,345 | ||||
NET INVESTMENT INCOME | 166,737 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gain distributions from underlying non-affiliated funds | 10,640 | ||||
| Net realized gains from investment transactions with affiliates | 151,081 | ||||
| Net realized gains from investment transactions with non-affiliates | 33,967 | ||||
| Net realized gains from affiliated and non-affiliated investments | 195,688 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 332,362 | ||||
| Net change in unrealized appreciation/(depreciation) from investments in non-affiliates | 102,055 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 434,417 | ||||
| Net realized/unrealized gains from affiliated and non-affiliated investments | 630,105 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 796,842 | |||
The accompanying notes are an integral part of these financial statements.
140 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Retirement | ||||||||||
| Income Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 166,737 | $ | 207,998 | ||||||
| Net realized gains/(losses) from investment transactions | 195,688 | (682,526 | ) | |||||||
| Net change in unrealized appreciation from investments | 434,417 | 1,937,678 | ||||||||
| Change in net assets resulting from operations | 796,842 | 1,463,150 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (21,782 | ) | (28,902 | ) | ||||||
| Class C | (5 | ) | (16 | ) | ||||||
| Class R1 | (15,132 | ) | (31,053 | ) | ||||||
| Class R2 | (26,492 | ) | (49,512 | ) | ||||||
| Institutional Service Class | (36,966 | ) | (46,951 | ) | ||||||
| Institutional Class | (33,072 | ) | (60,336 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (151 | ) | |||||||
| Class C | – | (6 | ) | |||||||
| Class R1 | – | (9,224 | ) | |||||||
| Class R2 | – | (9,940 | ) | |||||||
| Institutional Service Class | – | (10,981 | ) | |||||||
| Institutional Class | – | (5,464 | ) | |||||||
| Change in net assets from shareholder distributions | (133,449 | ) | (252,536 | ) | ||||||
| Change in net assets from capital transactions | 7,036,552 | 6,260,268 | ||||||||
| Change in net assets | 7,699,945 | 7,470,882 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 13,201,553 | 5,730,671 | ||||||||
| End of period | $ | 20,901,498 | $ | 13,201,553 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 43,688 | $ | 10,400 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 2,044,829 | $ | 2,522,271 | ||||||
| Dividends reinvested | 21,663 | 29,053 | ||||||||
| Cost of shares redeemed | (205,482 | ) | (674,090 | ) | ||||||
| Total Class A | 1,861,010 | 1,877,234 | ||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 1,001 | – | ||||||||
| Dividends reinvested | 5 | 21 | ||||||||
| Cost of shares redeemed | (1,011 | ) | – | |||||||
| Total Class C | (5 | ) | 21 | |||||||
Class R1 Shares | ||||||||||
| Proceeds from shares issued | 349,239 | 528,645 | ||||||||
| Dividends reinvested | 15,132 | 40,277 | ||||||||
| Cost of shares redeemed | (183,660 | ) | (240,742 | ) | ||||||
| Total Class R1 | 180,711 | 328,180 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 141
Statements of Changes in Net Assets (Continued)
| Nationwide Retirement | ||||||||||
| Income Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares | ||||||||||
| Proceeds from shares issued | $ | 3,027,433 | $ | 2,555,359 | ||||||
| Dividends reinvested | 26,492 | 59,452 | ||||||||
| Cost of shares redeemed | (258,875 | ) | (1,345,106 | ) | ||||||
| Total Class R2 | 2,795,050 | 1,269,705 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 2,792,667 | 2,205,952 | ||||||||
| Dividends reinvested | 36,966 | 57,932 | ||||||||
| Cost of shares redeemed | (599,570 | ) | (1,187,563 | ) | ||||||
| Total Institutional Service Class | 2,230,063 | 1,076,321 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,056,411 | 1,831,487 | ||||||||
| Dividends reinvested | 33,072 | 65,800 | ||||||||
| Cost of shares redeemed | (1,119,760 | ) | (188,480 | ) | ||||||
| Total Institutional Class | (30,277 | ) | 1,708,807 | |||||||
| Change in net assets from capital transactions | $ | 7,036,552 | $ | 6,260,268 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 212,578 | 293,731 | ||||||||
| Reinvested | 2,253 | 3,232 | ||||||||
| Redeemed | (21,272 | ) | (75,040 | ) | ||||||
| Total Class A Shares | 193,559 | 221,923 | ||||||||
Class C Shares | ||||||||||
| Issued | 105 | – | ||||||||
| Reinvested | 1 | 2 | ||||||||
| Redeemed | (106 | ) | – | |||||||
| Total Class C Shares | – | 2 | ||||||||
Class R1 Shares | ||||||||||
| Issued | 36,281 | 58,861 | ||||||||
| Reinvested | 1,580 | 4,559 | ||||||||
| Redeemed | (18,967 | ) | (28,185 | ) | ||||||
| Total Class R1 Shares | 18,894 | 35,235 | ||||||||
Class R2 Shares | ||||||||||
| Issued | 312,686 | 294,847 | ||||||||
| Reinvested | 2,769 | 6,738 | ||||||||
| Redeemed | (26,893 | ) | (153,489 | ) | ||||||
| Total Class R2 Shares | 288,562 | 148,096 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 289,406 | 245,493 | ||||||||
| Reinvested | 3,848 | 6,548 | ||||||||
| Redeemed | (61,698 | ) | (137,909 | ) | ||||||
| Total Institutional Service Class Shares | 231,556 | 114,132 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
142 Semiannual Report 2010
| Nationwide Retirement | ||||||||||
| Income Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 110,991 | 224,569 | ||||||||
| Reinvested | 3,441 | 7,393 | ||||||||
| Redeemed | (117,069 | ) | (21,236 | ) | ||||||
| Total Institutional Class Shares | (2,637 | ) | 210,726 | |||||||
| Total change in shares | 729,934 | 730,114 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 143
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Retirement Income 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, 2010 (Unaudited) (f) | $ | 9 | .44 | 0 | .08 | 0 | .39 | 0 | .47 | (0 | .08) | – | (0 | .08) | $ | 9 | .83 | 5 | .03% | $ | 4,111,159 | 0 | .83% | 1 | .75% | 0 | .83% | 11 | .24% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .56 | 0 | .19 | 0 | .94 | 1 | .13 | (0 | .20) | (0 | .05) | (0 | .25) | $ | 9 | .44 | 13 | .46% | $ | 2,122,283 | 0 | .83% | 2 | .15% | 0 | .83% | 43 | .52% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .33 | 0 | .33 | (1 | .79) | (1 | .46) | (0 | .31) | – | (0 | .31) | $ | 8 | .56 | (14 | .50%) | $ | 24,515 | 0 | .83% | 3 | .30% | 0 | .96% | 74 | .26% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .06 | 0 | .30 | 0 | .36 | (0 | .03) | – | (0 | .03) | $ | 10 | .33 | 3 | .64% | $ | 1,037 | 1 | .07% | 3 | .18% | 1 | .79% | 1 | .03% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .43 | 0 | .08 | 0 | .36 | 0 | .44 | (0 | .05) | – | (0 | .05) | $ | 9 | .82 | 4 | .82% | $ | 1,034 | 1 | .44% | 1 | .71% | 1 | .44% | 11 | .24% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .55 | 0 | .15 | 0 | .94 | 1 | .09 | (0 | .16) | (0 | .05) | (0 | .21) | $ | 9 | .43 | 12 | .82% | $ | 991 | 1 | .38% | 1 | .69% | 1 | .38% | 43 | .52% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .32 | 0 | .30 | (1 | .82) | (1 | .52) | (0 | .25) | – | (0 | .25) | $ | 8 | .55 | (15 | .01%) | $ | 880 | 1 | .38% | 2 | .99% | 1 | .41% | 74 | .26% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .05 | 0 | .30 | 0 | .35 | (0 | .03) | – | (0 | .03) | $ | 10 | .32 | 3 | .51% | $ | 1,036 | 1 | .43% | 2 | .59% | 1 | .43% | 1 | .03% | ||||||||||||||||||||||||||||||||||||||||||
Class R1 Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .42 | 0 | .08 | 0 | .37 | 0 | .45 | (0 | .06) | – | (0 | .06) | $ | 9 | .81 | 4 | .83% | $ | 2,390,987 | 1 | .23% | 1 | .70% | 1 | .23% | 11 | .24% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .55 | 0 | .16 | 0 | .92 | 1 | .08 | (0 | .16) | (0 | .05) | (0 | .21) | $ | 9 | .42 | 12 | .88% | $ | 2,119,001 | 1 | .23% | 1 | .81% | 1 | .23% | 43 | .52% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .32 | 0 | .27 | (1 | .76) | (1 | .49) | (0 | .28) | – | (0 | .28) | $ | 8 | .55 | (14 | .76%) | $ | 1,620,940 | 1 | .24% | 2 | .86% | 1 | .27% | 74 | .26% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .04 | 0 | .30 | 0 | .34 | (0 | .03) | – | (0 | .03) | $ | 10 | .32 | 3 | .51% | $ | 1,036 | 1 | .43% | 2 | .59% | 1 | .43% | 1 | .03% | ||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .41 | 0 | .08 | 0 | .37 | 0 | .45 | (0 | .07) | – | (0 | .07) | $ | 9 | .79 | 4 | .93% | $ | 6,090,279 | 1 | .08% | 1 | .75% | 1 | .08% | 11 | .24% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .54 | 0 | .17 | 0 | .94 | 1 | .11 | (0 | .19) | (0 | .05) | (0 | .24) | $ | 9 | .41 | 13 | .08% | $ | 3,136,767 | 1 | .08% | 1 | .91% | 1 | .08% | 43 | .52% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .33 | 0 | .32 | (1 | .80) | (1 | .48) | (0 | .31) | – | (0 | .31) | $ | 8 | .54 | (14 | .67%) | $ | 1,583,732 | 0 | .92% | 3 | .29% | 1 | .02% | 74 | .26% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .05 | 0 | .31 | 0 | .36 | (0 | .03) | – | (0 | .03) | $ | 10 | .33 | 3 | .64% | $ | 1,037 | 1 | .07% | 2 | .95% | 1 | .07% | 1 | .03% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 9 | .44 | 0 | .10 | 0 | .38 | 0 | .48 | (0 | .10) | – | (0 | .10) | $ | 9 | .82 | 5 | .17% | $ | 5,237,817 | 0 | .58% | 2 | .19% | 0 | .58% | 11 | .24% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .56 | 0 | .22 | 0 | .93 | 1 | .15 | (0 | .22) | (0 | .05) | (0 | .27) | $ | 9 | .44 | 13 | .64% | $ | 2,847,529 | 0 | .58% | 2 | .45% | 0 | .58% | 43 | .52% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .33 | 0 | .37 | (1 | .81) | (1 | .44) | (0 | .33) | – | (0 | .33) | $ | 8 | .56 | (14 | .30%) | $ | 1,606,839 | 0 | .59% | 3 | .90% | 0 | .64% | 74 | .26% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .06 | 0 | .31 | 0 | .37 | (0 | .04) | – | (0 | .04) | $ | 10 | .33 | 3 | .67% | $ | 1,037 | 0 | .72% | 3 | .31% | 0 | .72% | 1 | .03% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
144 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Retirement Income 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, 2010 (Unaudited)(f) | $ | 9 | .44 | 0 | .13 | 0 | .37 | 0 | .50 | (0 | .11) | – | (0 | .11) | $ | 9 | .83 | 5 | .29% | $ | 3,070,222 | 0 | .33% | 2 | .67% | 0 | .33% | 11 | .24% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .57 | 0 | .24 | 0 | .93 | 1 | .17 | (0 | .25) | (0 | .05) | (0 | .30) | $ | 9 | .44 | 13 | .92% | $ | 2,974,982 | 0 | .33% | 2 | .73% | 0 | .33% | 43 | .52% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 10 | .34 | 0 | .41 | (1 | .83) | (1 | .42) | (0 | .35) | – | (0 | .35) | $ | 8 | .57 | (14 | .11%) | $ | 893,765 | 0 | .33% | 4 | .07% | 0 | .46% | 74 | .26% | ||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2007 (f)(g) | $ | 10 | .00 | 0 | .07 | 0 | .31 | 0 | .38 | (0 | .04) | – | (0 | .04) | $ | 10 | .34 | 3 | .79% | $ | 1,032,807 | 0 | .33% | 3 | .74% | 0 | .50% | 1 | .03% | ||||||||||||||||||||||||||||||||||||||||||
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 August 30, 2007 (commencement of operations) through October 31, 2007. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 145
Notes to Financial Statements
April 30, 2010 (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 was originally created under the laws of Ohio in 1997 and was redomesticated as a Delaware statutory trust on February 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust has authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2010, the Trust operates thirty-one (31) 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 of the Funds pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust and unaffiliated mutual funds (including exchange-traded 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 Fund management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. The Funds utilize various methods to measure the fair value of its investments on a recurring basis. All investments in securities are recorded at their estimated fair value as described below in the accompanying notes. 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 value (“NAV”) as reported by the Underlying Funds.
The following are the valuation policies of the affiliated 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 sales price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at 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. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into
146 Semiannual Report 2010
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 securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 combination of these and other methods. Fair value determinations may also take into account significant events that occur before Valuation Time but after the close of the principal market on which such securities trade that materially affects the value of domestic or foreign securities. When fair value pricing is employed, the prices of many securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
The Funds are subject to the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”), “Fair Value Measurements and Disclosures” (ASC 820). This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 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 ASC 820 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 in or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2010:
Destination 2010 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 7,879,344 | $ | — | $ | — | $ | 7,879,344 | ||||||||||
| Mutual Funds | 21,727,382 | — | — | 21,727,382 | ||||||||||||||
Total | $ | 29,606,726 | $ | — | $ | — | $ | 29,606,726 | ||||||||||
2010 Semiannual Report 147
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Destination 2015 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 23,532,470 | $ | — | $ | — | $ | 23,532,470 | ||||||||||
| Mutual Funds | 69,035,128 | — | — | 69,035,128 | ||||||||||||||
Total | $ | 92,567,598 | $ | — | $ | — | $ | 92,567,598 | ||||||||||
Destination 2020 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 20,967,281 | $ | — | $ | — | $ | 20,967,281 | ||||||||||
| Mutual Funds | 77,723,602 | — | — | 77,723,602 | ||||||||||||||
Total | $ | 98,690,883 | $ | — | $ | — | $ | 98,690,883 | ||||||||||
Destination 2025 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 15,566,066 | $ | — | $ | — | $ | 15,566,066 | ||||||||||
| Mutual Funds | 75,088,849 | — | — | 75,088,849 | ||||||||||||||
Total | $ | 90,654,915 | $ | — | $ | — | $ | 90,654,915 | ||||||||||
Destination 2030 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 11,245,456 | $ | — | $ | — | $ | 11,245,456 | ||||||||||
| Mutual Funds | 90,358,206 | — | — | 90,358,206 | ||||||||||||||
Total | $ | 101,603,662 | $ | — | $ | — | $ | 101,603,662 | ||||||||||
Destination 2035 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 4,019,489 | $ | — | $ | — | $ | 4,019,489 | ||||||||||
| Mutual Funds | 41,076,770 | — | — | 41,076,770 | ||||||||||||||
Total | $ | 45,096,259 | $ | — | $ | — | $ | 45,096,259 | ||||||||||
Destination 2040 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 3,849,741 | $ | — | $ | — | $ | 3,849,741 | ||||||||||
| Mutual Funds | 34,755,565 | — | — | 34,755,565 | ||||||||||||||
Total | $ | 38,605,306 | $ | — | $ | — | $ | 38,605,306 | ||||||||||
148 Semiannual Report 2010
Destination 2045 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 1,951,231 | $ | — | $ | — | $ | 1,951,231 | ||||||||||
| Mutual Funds | 15,907,396 | — | — | 15,907,396 | ||||||||||||||
Total | $ | 17,858,627 | $ | — | $ | — | $ | 17,858,627 | ||||||||||
Destination 2050 Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 3,183,930 | $ | — | $ | — | $ | 3,183,930 | ||||||||||
| Mutual Funds | 23,635,744 | — | — | 23,635,744 | ||||||||||||||
Total | $ | 26,819,674 | $ | — | $ | — | $ | 26,819,674 | ||||||||||
Retirement Income Fund*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Exchange Traded Funds | $ | 8,863,898 | $ | — | $ | — | $ | 8,863,898 | ||||||||||
| Mutual Funds | 11,622,006 | — | — | 11,622,006 | ||||||||||||||
Total | $ | 20,485,904 | $ | — | $ | — | $ | 20,485,904 | ||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
| * | See the Statement of Investments for identification of securities by type and industry classification. |
| (b) | 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.
| (c) | 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 a return of capital distribution.
| (d) | Federal Income Taxes |
It is the policy of each Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the U.S. Internal Revenue Code, and to make distributions of net investment income and net realized capital gains
2010 Semiannual Report 149
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
The Funds are subject to the provisions of ASC 740, “Income Taxes”. In July 2006, the FASB amended ASC 740-10. ASC 740-10 provides guidance regarding how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740-10 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 Fund could 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 benefits to recognize in the financial statements. Differences 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 2006 to 2009 remain subject to examination by the Internal Revenue Service.
Fund management has evaluated the implications of ASC 740-10 and has concluded that there is no impact to the Funds’ current financial statements. ASC 740-10 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.
| (e) | 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 proportionally among various or all series of the Trust. For each Fund, income, Fund expenses, and realized and unrealized gains or losses are allocated to each class of shares of the Fund based on the value of the shares of that class outstanding relative to the total value of the outstanding shares of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) 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. 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 service fees, the cost of investment securities or other investment assets, taxes, interest charges, 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.
Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly-owned subsidiary of NFS), provides various administrative and accounting services for the Funds and serves as Transfer and Dividend Disbursing Agent for the Funds. The Funds did not pay a fee for these services.
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Funds. The Funds did not pay any additional fee for these services.
150 Semiannual Report 2010
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may 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 inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class A, Class R1, Class R2, and Institutional Service Class shares of each Fund.
For the six months ended April 30, 2010, NFS received the following amounts in Administrative Services fees from each Fund:
| Fund | Amount | |||||||
| Destination 2010 | $ | 27,507 | ||||||
| Destination 2015 | 89,158 | |||||||
| Destination 2020 | 85,312 | |||||||
| Destination 2025 | 80,765 | |||||||
| Destination 2030 | 94,680 | |||||||
| Destination 2035 | 38,460 | |||||||
| Destination 2040 | 33,235 | |||||||
| Destination 2045 | 14,365 | |||||||
| Destination 2050 | 25,926 | |||||||
| Retirement Income | 15,556 | |||||||
As of April 30, 2010, 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 | 1.72 | % | ||||||
| Destination 2015 | 17.67 | |||||||
| Destination 2020 | 21.46 | |||||||
| Destination 2025 | 15.39 | |||||||
| Destination 2030 | 12.89 | |||||||
| Destination 2035 | 14.09 | |||||||
| Destination 2040 | 12.16 | |||||||
| Destination 2045 | 13.18 | |||||||
| Destination 2050 | 10.32 | |||||||
| Retirement Income | 23.78 | |||||||
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM 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, 2010, the Funds’ portion of such costs amounted to $0.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under 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 NFSDI. These fees are
2010 Semiannual Report 151
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
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 C shares, 0.65% of Class R1 shares, and 0.50% of Class R2 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. A contingent deferred sales charge (“CDSC”) of 0.50% will be imposed on a redemption of Class A shares made within 18 months of purchase if no sales charges were paid up to on the original purchase and if a finder’s fee was paid. Class C shares have a CDSC of 1% imposed on redemptions made within one year of purchase. For the six months ended April 30, 2010, NFD received commissions of $35,237 from front-end sales charges of Class A shares and from CDSCs from Class C shares of the Funds, of which $2,762 was re-allowed to affiliated broker-dealers of the Funds.
4. Investments in Affiliated Issuers
Each of the Funds invests in Underlying Funds. A summary of the Funds’ transactions in the shares of Underlying Funds during the six months ended April 30, 2010 were as follows:
Destination 2010
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 3,358,981 | $ | 1,704,432 | $ | 617,879 | $ | 87,967 | $ | 24,057 | $ | 4,457,644 | ||||||||||||||
| Nationwide Money Market Fund | 1,111,855 | 571,875 | 205,960 | — | — | 1,477,770 | ||||||||||||||||||||
| Nationwide International Index Fund | 2,181,832 | 1,031,510 | 411,919 | 29,883 | 68,357 | 2,820,590 | ||||||||||||||||||||
| Nationwide S&P 500 Index Fund | 4,988,725 | 2,242,059 | 1,311,847 | 49,880 | 70,712 | 6,744,103 | ||||||||||||||||||||
| Nationwide Small Cap Index Fund | 615,704 | 290,399 | 199,364 | �� | 4,463 | 58,513 | 900,203 | |||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 1,476,586 | 675,767 | 489,391 | 8,583 | 157,441 | 2,081,209 | ||||||||||||||||||||
152 Semiannual Report 2010
Destination 2015
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 10,740,561 | $ | 4,443,763 | $ | 286,329 | $ | 280,031 | $ | 10,261 | $ | 14,929,047 | ||||||||||||||
| Nationwide Money Market Fund | 666,703 | 279,196 | 17,896 | — | — | 928,004 | ||||||||||||||||||||
| Nationwide International Index Fund | 8,503,422 | 3,154,128 | 232,642 | 119,339 | (24,292 | ) | 11,515,973 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 15,638,177 | 5,338,309 | 1,456,836 | 158,792 | (46,045 | ) | 22,097,435 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 2,463,701 | 881,410 | 358,611 | 18,157 | 110,013 | 3,768,296 | ||||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 5,061,930 | 1,756,663 | 791,933 | 30,158 | 195,542 | 7,468,145 | ||||||||||||||||||||
Destination 2020
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 10,389,926 | $ | 6,283,392 | $ | 203,805 | $ | 296,019 | $ | 5,203 | $ | 16,967,420 | ||||||||||||||
| Nationwide Money Market Fund | 633,310 | 371,389 | 11,989 | — | — | 992,711 | ||||||||||||||||||||
| Nationwide International Index Fund | 9,941,536 | 5,320,848 | 191,816 | 139,031 | (65,491 | ) | 15,167,432 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 16,092,783 | 7,935,422 | 1,220,234 | 166,629 | (240,818 | ) | 25,610,027 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 3,509,397 | 1,819,286 | 468,304 | 26,488 | 70,505 | 6,045,080 | ||||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 5,408,601 | 2,721,284 | 777,917 | 32,086 | (48,023 | ) | 8,986,550 | |||||||||||||||||||
2010 Semiannual Report 153
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Destination 2025
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 7,925,557 | $ | 4,247,042 | $ | 270,194 | $ | 212,113 | $ | 7,280 | $ | 11,932,090 | ||||||||||||||
| Nationwide Money Market Fund | 605,544 | 328,145 | 20,784 | — | — | 912,904 | ||||||||||||||||||||
| Nationwide International Index Fund | 10,692,346 | 4,857,769 | 867,680 | 150,387 | (253,247 | ) | 14,827,408 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 17,160,347 | 7,519,772 | 1,318,659 | 176,512 | (239,048 | ) | 26,267,144 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 4,473,196 | 2,063,457 | 591,857 | 33,474 | (13,888 | ) | 7,412,193 | |||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 6,319,583 | 2,823,103 | 899,909 | 37,729 | (73,353 | ) | 10,100,519 | |||||||||||||||||||
Destination 2030
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 8,127,738 | $ | 3,356,617 | $ | 162,617 | $ | 209,527 | $ | 3,913 | $ | 11,345,425 | ||||||||||||||
| Nationwide Money Market Fund | 733,840 | 306,756 | 14,783 | — | — | 1,025,812 | ||||||||||||||||||||
| Nationwide International Index Fund | 5,353,190 | 5,353,190 | 295,666 | 200,971 | (126,405 | ) | 19,586,003 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 22,235,630 | 6,849,558 | 1,139,267 | 223,740 | (222,333 | ) | 31,546,914 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 6,098,166 | 2,008,101 | 640,272 | 44,500 | 94,738 | 9,367,897 | ||||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 8,355,580 | 2,614,319 | 928,690 | 49,486 | (67,527 | ) | 12,379,111 | |||||||||||||||||||
154 Semiannual Report 2010
Destination 2035
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 3,027,965 | $ | 1,653,089 | $ | 105,429 | $ | 80,934 | $ | 3,810 | $ | 4,587,585 | ||||||||||||||
| Nationwide Money Market Fund | 300,752 | 166,075 | 10,543 | — | — | 456,285 | ||||||||||||||||||||
| Nationwide International Index Fund | 6,493,465 | 3,277,398 | 231,945 | 91,413 | (107,168 | ) | 9,586,862 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 9,113,901 | 3,949,225 | 1,016,309 | 93,692 | (174,089 | ) | 13,583,439 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 2,776,581 | 1,289,110 | 341,120 | 20,763 | (13,026 | ) | 4,627,581 | |||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 3,709,742 | 1,644,790 | 472,619 | 22,166 | (58,672 | ) | 9,586,862 | |||||||||||||||||||
Destination 2040
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 1,283,597 | $ | 1,110,154 | $ | 44,899 | $ | 35,468 | $ | 1,592 | $ | 2,356,723 | ||||||||||||||
| Nationwide Money Market Fund | 254,955 | 143,975 | 8,398 | — | — | 390,533 | ||||||||||||||||||||
| Nationwide International Index Fund | 5,748,807 | 2,973,462 | 193,143 | 82,176 | (75,338 | ) | 8,573,493 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 7,967,723 | 3,486,984 | 1,196,081 | 83,337 | (134,193 | ) | 11,630,310 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 2,819,678 | 1,330,852 | 330,527 | 21,481 | 18,923 | 4,755,004 | ||||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 3,140,427 | 1,407,139 | 373,476 | 19,061 | (37,383 | ) | 5,105,265 | |||||||||||||||||||
2010 Semiannual Report 155
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Destination 2045
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 449,258 | $ | 501,319 | $ | 44,771 | $ | 12,893 | $ | 1,585 | $ | 909,140 | ||||||||||||||
| Nationwide Money Market Fund | 111,564 | 80,320 | 11,100 | — | — | 180,784 | ||||||||||||||||||||
| Nationwide International Index Fund | 2,517,405 | 1,688,459 | 255,291 | 36,525 | (85,890 | ) | 3,970,479 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 3,380,082 | 1,981,382 | �� | 580,314 | 36,157 | (22,460 | ) | 5,382,496 | ||||||||||||||||||
| Nationwide Small Cap Index Fund | 1,236,556 | 774,849 | 236,711 | 9,651 | 10,813 | 2,201,032 | ||||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 1,376,297 | 825,755 | 263,748 | 8,482 | (22,512 | ) | 2,363,380 | |||||||||||||||||||
Destination 2050
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 845,335 | $ | 305,342 | $ | 59,095 | $ | 20,535 | $ | 2,745 | $ | 1,093,411 | ||||||||||||||
| Nationwide Money Market Fund | 209,919 | 76,736 | 14,774 | — | — | 271,882 | ||||||||||||||||||||
| Nationwide International Index Fund | 5,146,042 | 1,424,727 | 401,822 | 69,729 | 49,016 | 6,235,088 | ||||||||||||||||||||
| Nationwide S&P 500 Index Fund | 5,946,897 | 1,500,181 | 535,197 | 57,213 | (21,040 | ) | 7,820,781 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 2,325,436 | 639,394 | 333,487 | 16,149 | 58,753 | 3,308,272 | ||||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 2,588,325 | 661,725 | 375,590 | 14,877 | 65,395 | 3,552,761 | ||||||||||||||||||||
Retirement Income
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Bond Index Fund | $ | 930,950 | $ | 637,940 | $ | 104,049 | $ | 25,138 | $ | 4,010 | $ | 1,468,822 | ||||||||||||||
| Nationwide Money Market Fund | 1,452,835 | 1,006,995 | 163,507 | — | — | 2,296,323 | ||||||||||||||||||||
| Nationwide International Index Fund | 646,983 | 425,509 | 80,255 | 9,098 | 16,320 | 998,791 | ||||||||||||||||||||
| Nationwide S&P 500 Index Fund | 2,320,954 | 1,522,953 | 512,074 | 23,872 | 106,262 | 3,730,168 | ||||||||||||||||||||
| Nationwide Mid Cap Market Index Fund | 250,468 | 168,059 | 73,122 | 1,495 | 24,489 | 419,977 | ||||||||||||||||||||
156 Semiannual Report 2010
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.14% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by a Fund 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 the Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended April 30, 2010.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Funds and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. 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 those series of the Trust 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
For the six months ended April 30, 2010, purchases of and sales (excluding short-term securities) were as follows:
| Fund | Purchases | Sales | ||||||||||
| Destination 2010 | $ | 10,677,657 | $ | 4,788,139 | ||||||||
| Destination 2015 | 25,151,999 | 4,074,116 | ||||||||||
| Destination 2020 | 33,449,843 | 3,732,476 | ||||||||||
| Destination 2025 | 29,004,020 | 4,805,223 | ||||||||||
| Destination 2030 | 25,008,124 | 4,025,347 | ||||||||||
| Destination 2035 | 14,401,508 | 2,545,186 | ||||||||||
| Destination 2040 | 12,665,315 | 2,503,793 | ||||||||||
| Destination 2045 | 7,010,973 | 1,674,245 | ||||||||||
| Destination 2050 | 5,899,510 | 2,134,111 | ||||||||||
| Retirement Income | 8,524,641 | 1,874,089 | ||||||||||
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 made against the Trust. Based on experience however, the Trust expects the risk of loss to be remote.
2010 Semiannual Report 157
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
8. Other
As of April 30, 2010, 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.
| % of | Number of | |||||||||||
| Fund | Shares | Accounts | ||||||||||
| Destination 2010 | 82.61 | % | 3 | |||||||||
| Destination 2015 | 58.11 | 2 | ||||||||||
| Destination 2020 | 57.88 | 2 | ||||||||||
| Destination 2025 | 50.44 | 1 | ||||||||||
| Destination 2030 | 61.90 | 2 | ||||||||||
| Destination 2035 | 80.20 | 3 | ||||||||||
| Destination 2040 | 64.73 | 2 | ||||||||||
| Destination 2045 | 73.65 | 2 | ||||||||||
| Destination 2050 | 76.13 | 2 | ||||||||||
| Retirement Income | 60.75 | 4 | ||||||||||
9. Federal Tax Information
As of April 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund was as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation/ | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| Destination 2010 | $ | 28,200,987 | $ | 1,405,739 | $ | — | $ | 1,405,739 | ||||||||||
| Destination 2015 | 85,026,966 | 7,540,632 | — | 7,540,632 | ||||||||||||||
| Destination 2020 | 91,001,432 | 7,694,601 | (5,150 | ) | 7,689,451 | |||||||||||||
| Destination 2025 | 81,584,760 | 9,070,155 | — | 9,070,155 | ||||||||||||||
| Destination 2030 | 87,441,067 | 14,162,594 | — | 14,162,594 | ||||||||||||||
| Destination 2035 | 40,604,784 | 4,491,475 | — | 4,491,475 | ||||||||||||||
| Destination 2040 | 34,043,171 | 4,562,135 | — | 4,562,135 | ||||||||||||||
| Destination 2045 | 16,120,057 | 1,738,570 | — | 1,738,570 | ||||||||||||||
| Destination 2050 | 21,903,141 | 4,916,533 | — | 4,916,533 | ||||||||||||||
| Retirement Income | 19,672,612 | 813,292 | — | 813,292 | ||||||||||||||
158 Semiannual Report 2010
10. Subsequent Events
Effective May 1, 2010, the Trust entered into a new Joint Fund Administration and Transfer Agency Agreement with NFM. Under the Joint Administration Agreement, NFM is paid an annual fee for fund administration and transfer agency services based on the sum of the following: (i) the amount payable by NFM to its sub-administrator and sub-transfer agent; and (ii) a percentage of the combined average daily net assets of the Trust and Nationwide Variable Insurance Trust, a Delaware statutory trust and registered investment company that is affiliated with the Trust. In addition, the Trust pays out-of-pocket-expenses reasonably incurred by NFM in providing services to the Funds and the Trust, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders. Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided fees for these services may range from $6 to $30 per customer per year.
2010 Semiannual Report 159
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 of Trustees (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 January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 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 January 21, 2010 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, 2009) compared with performance groups and performance universes created by Lipper 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, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” 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, 2009, (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) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) 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 January 21, 2010 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 (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 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
160 Semiannual Report 2010
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 January 21, 2010 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 prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
Nationwide Destination 2010 Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by Nationwide Fund Advisors (“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 noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fifth and fourth quintiles, respectively, of its Peer Group, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2010 Index. The Trustees noted that the Fund has been on the watch list since the first quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
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 underlying funds’ 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 then noted that each of the Target Date Funds has a unified fee of 33 basis points, which is considered to be competitive within the target date fund industry. 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 Agreement 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. The trustees noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fifth and second quintiles of its Peer Group, respectively, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2015 Index. The Trustees noted that the Fund has been on the watch list since the second quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. The Trustees also noted that NFA had recently adjusted the Fund’s glide path in order to reduce equity exposure. The Trustees noted that while this change negatively impacted the Fund’s short-term performance, it was expected to result in more competitive performance over the long term. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
2010 Semiannual Report 161
Supplemental Information (Continued)
(Unaudited)
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were in the fourth quintile of its Peer Group, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 also 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 Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fourth and second quintiles of its Peer Group, respectively, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2020 Index. The Trustees noted that the Fund has been on the watch list since the second quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. The Trustees noted that NFA had recently adjusted the Fund’s glide path in order to reduce equity exposure. The Trustees noted that while this change negatively impacted the Fund’s short-term performance, it was expected to result in more competitive performance over the long term. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were in the fifth quintile of its Peer Group, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 also 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 Agreement 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, 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 noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fifth and second quintiles, respectively, of its Peer Group, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2025 Index. The Trustees noted that the Fund has been on the watch list since the third quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
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 underlying funds’ fees and expenses borne indirectly by shareholders were not reflected
162 Semiannual Report 2010
in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. 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 also 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 Agreement 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 noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fourth and second quintiles of its Peer Group, respectively, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2030 Index. The Trustees noted that the Fund has been on the watch list since the second quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were in the fifth quintile of its Peer Group, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fifth and second quintiles of its Peer Group, respectively, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2035 Index. The Trustees noted that the Fund has been on the watch list since the first quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
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 underlying funds’ 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 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.
2010 Semiannual Report 163
Supplemental Information (Continued)
(Unaudited)
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fifth and third quintiles of its Peer Group, respectively, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2040 Index. The Trustees noted that the Fund has been on the watch list since the first quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were in the fifth quintile of its Peer Group, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fifth and third quintiles of its Peer Group, respectively, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2045 Index. The Trustees noted that the Fund has been on the watch list since the first quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
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 underlying funds’ 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 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 Agreement with respect to the Fund should be renewed.
164 Semiannual Report 2010
Nationwide Destination 2050 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 noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fourth and third quintiles of its Peer Group, respectively, and below the Fund’s benchmark, the Morningstar Lifetime Moderate 2050 Index. The Trustees noted that the Fund has been on the watch list since the first quarter of 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
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 underlying funds’ 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 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 Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one- and two-year periods ended September 30, 2009 was in the fifth and second quintiles of its Peer Group, respectively, and was only one basis point below the Fund’s benchmark, the Morningstar Lifetime Moderate Income Index. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of the Adviser, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
The Trustees noted that this was due to the Fund’s small asset size and that the Fund’s total expenses were 11% above the Fund’s Peer Group median. 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 second quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 Agreement with respect to the Fund should be renewed.
2010 Semiannual Report 165
Management Information
April 30, 2010 (Unaudited)
Officers of the Trust
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
| Number of | ||||||||||||||
| Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | Other | ||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | Directorships | ||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Held by Trustee3 | ||||||||||
| Charles E. Allen 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). | 86 | None | ||||||||||
| Paula H.J. Cholmondeley 1947 | Trustee since July 2000 | Ms. Cholmondeley focuses full time on corporate governance. She sits on public company boards and is also on the faculty of the National Association of Corporate Directors. She has served as Chief Executive Officer of Sorrel Group (management consulting company) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | 86 | 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 DeVore 1940 | Trustee since June 1990 | Retired. Dr. DeVore served as the interim President of Greensboro College from 2009 though April 2010. He served as President of Otterbein College from July 1984 through July 2009, and as President of Davis and Elkins College from 1982 through 1984. | 86 | None | ||||||||||
| Phyllis Kay Dryden 1947 | Trustee since December 2004 | Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | 86 | None | ||||||||||
166 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of | ||||||||||||||
| Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | Other | ||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | Directorships | ||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Held by Trustee3 | ||||||||||
| Barbara L. Hennigar 1935 | Trustee since July 2000 | Ms. Hennigar was Executive Vice President of OppenheimerFunds (an asset management company) from October 1992 until June 2000; Chairman of Oppenheimer Funds Services from October 1999 until June 2000; and President and CEO from June 1992 until October 1999. She was previously Board Chair of a non-profit independent school, and is currently an independent trustee and endowment chair of St. Mary’s Academy, an independent school in Denver, CO. | 86 | None | ||||||||||
| Barbara I. Jacobs 1950 | Trustee since December 2004 | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 through 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association-College Retirement Equities Fund). | 86 | None | ||||||||||
| Douglas F. Kridler 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 community foundation that manages over 1,700 individual funds and investments) since February 2002. | 86 | None | ||||||||||
2010 Semiannual Report 167
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of | ||||||||||||||
| Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | Other | ||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | Directorships | ||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Held by Trustee3 | ||||||||||
| David C. Wetmore 1948 | Trustee since 1995 and Chairman since February 2005 | Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology-oriented investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr. Wetmore served as the Chief Operating Officer, Chief Executive Officer, 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. | 86 | None | ||||||||||
| 1 | Length of time served includes time served with predecessor of the Trust. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years. | |
| 3 | Directorships held in (i) any other investment companies registered under the 1940 Act, (ii) 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 (iii) any company subject to the requirements of Section 15(d) of the Exchange Act. |
168 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of | ||||||||||||||
| Position(s) Held | Portfolios in Fund | |||||||||||||
| with Fund | Complex | Other | ||||||||||||
| Name | and Length of | Principal Occupation(s) | Overseen | Directorships | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Held by Trustee4 | ||||||||||
| Michael S. Spangler 1966 | President and Chief Executive Officer since June 2008 | Mr. Spangler is President and Chief Executive Officer of Nationwide Funds Group, which includes NFA3, Nationwide Fund Management LLC3 and Nationwide Fund Distributors LLC3, and is a Senior Vice President of NFS3. From May 2004-May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. | N/A | N/A | ||||||||||
| Stephen T. Grugeon 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. From February 2008-June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006. | N/A | N/A | ||||||||||
| Joseph Finelli 1957 | Treasurer since September 2007 | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3. | N/A | N/A | ||||||||||
| Dorothy Sanders 1955 | Chief Compliance Officer since October 2007 | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). | N/A | N/A | ||||||||||
| Eric E. Miller 1953 | Secretary since December 2002 | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments3. | N/A | N/A | ||||||||||
2010 Semiannual Report 169
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of | ||||||||||||||
| Position(s) Held | Portfolios in Fund | |||||||||||||
| with Fund | Complex | Other | ||||||||||||
| Name | and Length of | Principal Occupation(s) | Overseen | Directorships | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Held by Trustee4 | ||||||||||
| Doff Meyer 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)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. | N/A | N/A | ||||||||||
| Lynnett Berger 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 | ||||||||||
| 1 | Length of time served includes time served with the Trust’s predecessors. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Officer during the past five years. | |
| 3 | These positions are held with an affiliated person or principal underwriter of the Funds. | |
| 4 | 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 Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
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 subadvisers 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 Fund. The Fund’s proxy voting policies and procedures are 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.
170 Semiannual Report 2010
P.O. Box 5354
Cincinnati, OH 45201-5354
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.
©2010 Nationwide Funds Group.
All rights reserved.
SAR-TD 6/10
Nationwide Mutual Funds
SemiannualReport
April 30, 2010 (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, 2010 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Investor Destinations Funds | |||
| 5 | Nationwide Investor Destinations Aggressive Fund | ||
| 19 | Nationwide Investor Destinations Moderately Aggressive Fund | ||
| 33 | Nationwide Investor Destinations Moderate Fund | ||
| 47 | Nationwide Investor Destinations Moderately Conservative Fund | ||
| 61 | Nationwide Investor Destinations Conservative Fund | ||
| 75 | Notes to Financial Statements | ||
| 85 | Supplemental Information | ||
| 89 | Management Information | ||
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. The Trust makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
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Message to Shareholders
April 30, 2010
Dear Shareholder,
As I write this letter, we have enjoyed a relatively positive six months of growth in domestic and international equity markets. Since I last wrote to you on October 31, 2009, the Standard & Poor’s 500® (S&P 500) Index has gained 16 percent. In that letter, which accompanied your Funds’ annual report, I noted the signs of recovery but cautioned against unchecked excitement:
“Our opinion is that amid the recent good news, there is cause for caution... As a society, we haven’t displayed greater financial literacy and don’t appear to have learned any financial lessons well. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.”
Perhaps my tone was overly cautious, but in my opinion the dichotomy between the financial markets and our economic well-being still exists. Complicating matters further is the looming debt crisis that, as of this date, is threatening to expand in Europe and certainly has significant consequences. We are not isolated from any of these global issues.
Suffice it to say there is still a lot of instability in the market. At least a portion of the growth enjoyed during the past six months is a function of artificial stimulus provided by U.S. and international governments. We do not yet know if this recent growth is sustainable. The employment picture is also difficult to predict, with jobs growth lagging other economic indicators and many Americans unable to find the full-time employment they seek. While prognosticators are pointing to positive signs on the jobs front, it’s far too early to claim victory.
In times of great uncertainty I believe it is more important than ever to have clear investment goals that you pursue with a consistent strategy. Investment decisions should be based on a well-reasoned approach applied consistently over time and not on emotional reactions to extreme market events. All of this leads me to return to the core principles that have guided our firm:
| • | Always take a long-term approach to investing |
| • | Rely on asset allocation to build consistent diversification |
| • | Prudently and conscientiously look at risk |
We believe that adhering to these principles will help us—and you—to navigate these challenging times. As always, we appreciate your business. Thank you for entrusting your investments to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President & CEO
Nationwide Mutual Funds
President & CEO
Nationwide Mutual Funds
2010 Semiannual Report 1
Important Disclosures
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 information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.
This report and the holdings provided are for informational purposes only, do not constitute advice, and are not intended and should not be relied upon 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 and without notice. 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.
The Funds’ adviser or its employees may have a position in the securities named in this report.
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.
Asset allocation is the process of spreading assets across several different investment styles and asset classes. The purpose is to potentially reduce long-term risk and capture potential profits across various asset classes.
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs). Please see the Funds’ prospectus for information about the specific risks of this type of investment.
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.
Performance
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. 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.
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 Indexes
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.
BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued corporate debt securities with a remaining term to final maturity less than 10 years.
BofA Merrill Lynch (BofAML) 10+ Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued
2 Semiannual Report 2010
corporate debt securities with a remaining term to final maturity greater than or equal to 10 years.
BofA Merrill Lynch (BofAML) Mortgage Master Index: An unmanaged index that tracks the performance of U.S. dollar-denominated 30-year, 15-year and balloon pass-through mortgage securities having at least $150 million outstanding per generic production year.
Citigroup 3-Month Treasury Bill (T-Bill) Index: An unmanaged index that is generally representative of 3-month Treasury bills; consists of an average of the last 3-month Treasury bill issues (excluding the current month-end bill).
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in developed markets outside the United States and Canada.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.
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. Total returns reflect a waiver of part of the Fund’s direct annual expenses for all classes for certain periods since inception, without which returns would have been lower.
About Nationwide Funds Group (NFG)
Commentary provided by NFG. Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
Based in King of Prussia, 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, LLC (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 Nationwide Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). 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.
Distributor
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
2010 Semiannual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the semiannual period ended April 30, 2010.
During the fourth quarter of 2009, corporate profits continued to show evidence of improvement, which in turn stoked investor confidence and drove the market rally. “Riskier” assets led the way, albeit at a slower pace than was seen during the second and third quarters of 2009. Positive news persisted throughout the first quarter of 2010, spurring markets to improve and prompting economists to declare that the United States had finally turned the corner and was exiting the “Great Recession.”
While this is very positive news for U.S. consumers, the recovery is expected to be an uneven one with significant headwinds. The rate of unemployment is high and is likely to remain so for the short term. Federal, state and local governments, as well as consumers, are contending with weak balance sheets. Government incentives for new housing purchases have ended. These factors, coupled with a second wave of mortgage resets and the reluctance of banks to lend, lead economic observers to believe that the recovery will be weak and uneven for the foreseeable future.
The equity market is expected to remain choppy, characterized by sharp rallies and sharp declines with equally sharp equity sector rotations. For the semiannual reporting period, large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, returned 15.66% as markets continued to rally. Mid-cap U.S. equities, as measured by the Standard and Poor’s MidCap 400 (S&P 400) Index, returned 25.78%, and small-cap U.S. equities, as measured by the Russell 2000® Index, returned 28.17% for the same time period.
International stocks and international emerging market stocks continued their strong rally in the fourth quarter of 2009, but this rally slowed throughout the first quarter of 2010, impeded by concerns about Greece’s debt situation and the recent strength of the U.S. dollar. As represented by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, emerging market stocks returned 11.57% for the semiannual reporting period. International stocks, as measured by the broad MSCI Europe, Australasia and Far East (MSCI EAFE®) Index, returned 1.19% for the same time period.
During the fourth quarter of 2009, the bond market benefited from the aforementioned improvements in corporate profits that fueled investor confidence. Enthusiasm was tempered, however, during the first quarter of 2010, due to an increase in government debt, continued weakness in U.S. labor markets and growing concerns about European debt (most notably involving Greece, Spain, Portugal and Italy). The Barclays Capital (BARCAP) U.S. Aggregate Bond Index returned 2.54% for the semiannual reporting period. On the corporate bond front, the BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index returned 4.89%, while the BofAML 10+ Year US Corporate Index returned 5.24% for the same time period. In the area of mortgage-related investments, the BofAML Mortgage Master Index returned 2.14% for the same time period.
4 Semiannual Report 2010
| 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, 2010, the Nationwide Investor Destinations Aggressive Fund (Class A at NAV) returned 13.44% versus 14.98% for its composite benchmark, 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 closest Lipper peer category of Global Multi-Cap Core Funds (consisting of 126 funds as of April 30, 2010) was 10.82% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 40% and 15%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the S&P 500 Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear of these returns during the reporting period.
What areas of investment detracted from Fund performance?
None of the underlying investments posted negative performance during the reporting period. The Fund’s investments in the Nationwide International Index Fund and the Nationwide Bond Index Fund (with target allocations of 30% and 5%, respectively) returned 2.93% and 2.25%, respectively, providing the smallest relative contributions to overall Fund performance during the reporting period. The sectors within the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index posted mixed results. The information technology sector performed the strongest with a return of 14.3%, and the telecommunications services sector came in the weakest, registering -5.4% during the reporting period. Among individual country markets within the MSCI EAFE Index, Ireland, with 17.41%, proved to be the strongest, while Greece, which registered -41.44%, was far and away the weakest performer during the reporting period. Most sectors within the BARCAP U.S. Aggregate Bond Index posted positive returns. The leading component of this index was commercial mortgage-backed securities, with 12.7%, clearly indicating that investors’ risk appetite had returned to the domestic bond market. The weakest component of this index, U.S. Treasuries, represented about 30% of the overall index composition and registered -0.2% during the reporting period.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from midJanuary to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
2010 Semiannual Report 5
Nationwide Investor Destinations Aggressive Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation* | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 40 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 30 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 15 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 10 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 5 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| * | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above 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. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
6 Semiannual Report 2010
| Fund Performance | Nationwide Investor Destinations Aggressive Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 13.44% | 37.82% | 3.60% | 1.50% | |||||||||||||
| w/SC2 | 6.85% | 29.89% | 2.39% | 0.91% | ||||||||||||||
| Class B | w/o SC1 | 13.00% | 36.85% | 2.84% | 0.79% | |||||||||||||
| w/SC3 | 8.00% | 31.85% | 2.52% | 0.79% | ||||||||||||||
Class C4 | w/o SC1 | 13.04% | 36.75% | 2.85% | 0.78% | |||||||||||||
| w/SC5 | 12.04% | 35.75% | 2.85% | 0.78% | ||||||||||||||
Class R26,7,8 | 13.23% | 37.31% | 3.30% | 1.11% | ||||||||||||||
Institutional Class6,9 | 13.69% | 38.34% | 3.94% | 1.68% | ||||||||||||||
Service Class6 | 13.23% | 37.63% | 3.47% | 1.42% | ||||||||||||||
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 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. | |
| 5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. | |
| 6 | Not subject to any sales charges. | |
| 7 | 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 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. |
Expense Ratios
| Expense | ||||
| Ratio* | ||||
| Class A | 0.85% | |||
| Class B | 1.55% | |||
| Class C | 1.55% | |||
| Class R2 | 1.18% | |||
| Institutional Class | 0.55% | |||
| Service Class | 0.95% | |||
| * | Current effective prospectus dated May 6, 2010. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 7
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Investor Destinations | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Aggressive Fund | 11/01/09 | 4/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,134.40 | 2.65 | 0.50 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.32 | 2.51 | 0.50 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,130.00 | 6.28 | 1.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.89 | 5.96 | 1.19 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,130.40 | 6.29 | 1.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.89 | 5.96 | 1.19 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,132.30 | 4.34 | 0.82 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.73 | 4.11 | 0.82 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,136.90 | 1.01 | 0.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.85 | 0.95 | 0.19 | |||||||||||||||
| Service Class Shares | Actual | 1,000.00 | 1,132.30 | 3.12 | 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 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. |
8 Semiannual Report 2010
| Portfolio Summary | Nationwide Investor Destinations Aggressive Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 95 | .3% | ||
| Fixed Income Fund | 4 | .8% | ||
| Liabilities in excess of other assets | (0 | .1)% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 40 | .2% | ||
| Nationwide International Index Fund, Institutional Class | 28 | .2% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 16 | .0% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 10 | .8% | ||
| Nationwide Bond Index Fund, Institutional Class | 4 | .8% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 9
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Investor Destinations Aggressive Fund
| Mutual Funds 100.1% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 95.3% | ||||||||
| Nationwide International Index Fund, Institutional Class (a) | 40,006,260 | $ | 279,243,694 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 11,598,022 | 158,197,017 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 39,932,791 | 398,529,258 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 9,799,084 | 107,593,941 | ||||||
Total Equity Funds (cost $1,026,033,270) | 943,563,910 | |||||||
Fixed Income Fund 4.8% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 4,260,365 | 47,673,481 | ||||||
Total Fixed Income Fund (cost $46,260,662) | 47,673,481 | |||||||
Total Mutual Funds (cost $1,072,293,932) | 991,237,391 | |||||||
Total Investments (cost $1,072,293,932) (b) — 100.1% | 991,237,391 | |||||||
Liabilities in excess of other assets — (0.1)% | (571,671 | ) | ||||||
NET ASSETS — 100.0% | $ | 990,665,720 | ||||||
| (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.
10 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Investor Destinations | |||||
| Aggressive Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $1,072,293,932) | $ | 991,237,391 | |||
| Cash | 10 | ||||
| Interest and dividends receivable | 136,732 | ||||
| Receivable for investments sold | 421,542 | ||||
| Receivable for capital shares issued | 728,928 | ||||
| Prepaid expenses and other assets | 53,850 | ||||
| Total Assets | 992,578,453 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 1,186,529 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 106,941 | ||||
| Distribution fees | 266,235 | ||||
| Administrative servicing fees | 170,208 | ||||
| Accounting and transfer agent fees | 46,273 | ||||
| Trustee fees | 12,676 | ||||
| Custodian fees | 7,079 | ||||
| Compliance program costs (Note 3) | 7,752 | ||||
| Professional fees | 56,295 | ||||
| Printing fees | 37,751 | ||||
| Other | 14,994 | ||||
| Total Liabilities | 1,912,733 | ||||
Net Assets | $ | 990,665,720 | |||
Represented by: | |||||
| Capital | $ | 1,097,495,887 | |||
| Accumulated net investment loss | (695,486 | ) | |||
| Accumulated net realized losses from investment transactions | (25,078,140 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (81,056,541 | ) | |||
Net Assets | $ | 990,665,720 | |||
Net Assets: | |||||
| Class A Shares | $ | 50,564,959 | |||
| Class B Shares | 12,997,607 | ||||
| Class C Shares | 74,340,077 | ||||
| Class R2 Shares | 79,823,823 | ||||
| Institutional Class Shares | 53,373,297 | ||||
| Service Class Shares | 719,565,957 | ||||
| Total | $ | 990,665,720 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 6,315,108 | ||||
| Class B Shares | 1,650,987 | ||||
| Class C Shares | 9,468,375 | ||||
| Class R2 Shares | 10,103,454 | ||||
| Institutional Class Shares | 6,601,353 | ||||
| Service Class Shares | 89,670,228 | ||||
| Total | 123,809,505 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 11
Statement of Assets and Liabilities (Continued)
| 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 | $ | 8.01 | |||
| Class B Shares (a) | $ | 7.87 | |||
| Class C Shares (b) | $ | 7.85 | |||
| Class R2 Shares | $ | 7.90 | |||
| Institutional Class Shares | $ | 8.09 | |||
| Service Class Shares | $ | 8.02 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 8.50 | |||
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.
12 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Investor Destinations Aggressive Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 16 | |||
| Dividend income from affiliates | 9,001,515 | ||||
| Total Income | 9,001,531 | ||||
EXPENSES: | |||||
| Investment advisory fees | 605,634 | ||||
| Distribution fees Class A | 58,437 | ||||
| Distribution fees Class B | 63,379 | ||||
| Distribution fees Class C | 364,404 | ||||
| Distribution fees Class R2 | 180,978 | ||||
| Distribution fees Service Class | 848,956 | ||||
| Administrative servicing fees Class A | 14,025 | ||||
| Administrative servicing fees Class R2 | 47,054 | ||||
| Administrative servicing fees Service Class | 509,376 | ||||
| Registration and filing fees | 29,222 | ||||
| Professional fees | 45,288 | ||||
| Printing fees | 34,862 | ||||
| Trustee fees | 20,170 | ||||
| Custodian fees | 22,523 | ||||
| Accounting and transfer agent fees | 100,799 | ||||
| Compliance program costs (Note 3) | 4,593 | ||||
| Other | 17,410 | ||||
| Total expenses before earnings credit | 2,967,110 | ||||
| Earnings credit (Note 5) | (541 | ) | |||
| Net Expenses | 2,966,569 | ||||
NET INVESTMENT INCOME | 6,034,962 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (3,182,682 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 113,186,460 | ||||
| Net realized/unrealized gains from affiliated investments | 110,003,778 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 116,038,740 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 13
Statements of Changes in Net Assets
| Nationwide Investor Destinations | ||||||||||
| Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 6,034,962 | $ | 13,328,432 | ||||||
| Net realized gains/(losses) from investment transactions with affiliates | (3,182,682 | ) | 4,103,906 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 113,186,460 | 95,388,606 | ||||||||
| Change in net assets resulting from operations | 116,038,740 | 112,820,944 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (352,551 | ) | (729,907 | ) | ||||||
| Class B | (75,637 | ) | (155,545 | ) | ||||||
| Class C | (436,150 | ) | (868,158 | ) | ||||||
| Class R2 (a) | (485,302 | ) | (792,890 | ) | ||||||
| Institutional Class | (391,581 | ) | (656,082 | ) | ||||||
| Service Class | (4,989,227 | ) | (10,629,972 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (1,155,217 | ) | (2,776,469 | ) | ||||||
| Class B | (327,150 | ) | (861,874 | ) | ||||||
| Class C | (1,881,259 | ) | (4,746,056 | ) | ||||||
| Class R2 (a) | (1,780,678 | ) | (2,841,497 | ) | ||||||
| Institutional Class | (1,163,011 | ) | (1,826,127 | ) | ||||||
| Service Class | (16,968,162 | ) | (38,778,254 | ) | ||||||
| Change in net assets from shareholder distributions | (30,005,925 | ) | (65,662,831 | ) | ||||||
| Change in net assets from capital transactions | 35,068,350 | 98,976,157 | ||||||||
| Change in net assets | 121,101,165 | 146,134,270 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 869,564,555 | 723,430,285 | ||||||||
| End of period | $ | 990,665,720 | $ | 869,564,555 | ||||||
| Accumulated net investment income/(loss) at end of period | $ | (695,486 | ) | $ | – | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 11,386,699 | $ | 8,554,931 | ||||||
| Dividends reinvested | 974,296 | 2,412,676 | ||||||||
| Cost of shares redeemed | (5,886,838 | ) | (13,892,501 | ) | ||||||
| Total Class A | 6,474,157 | (2,924,894 | ) | |||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 349,370 | 902,881 | ||||||||
| Dividends reinvested | 274,357 | 656,608 | ||||||||
| Cost of shares redeemed | (1,059,210 | ) | (1,910,523 | ) | ||||||
| Total Class B | (435,483 | ) | (351,034 | ) | ||||||
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.
14 Semiannual Report 2010
| Nationwide Investor Destinations | ||||||||||
| Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 7,242,918 | 12,470,173 | ||||||||
| Dividends reinvested | 844,752 | 1,829,530 | ||||||||
| Cost of shares redeemed | (10,580,416 | ) | (16,515,802 | ) | ||||||
| Total Class C | (2,492,746 | ) | (2,216,099 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 11,760,534 | 23,802,629 | ||||||||
| Dividends reinvested | 2,101,979 | 3,304,761 | ||||||||
| Cost of shares redeemed | (4,851,672 | ) | (4,363,354 | ) | ||||||
| Total Class R2 | 9,010,841 | 22,744,036 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 7,487,199 | 15,317,902 | ||||||||
| Dividends reinvested | 1,554,592 | 2,482,209 | ||||||||
| Cost of shares redeemed | (2,694,802 | ) | (3,360,067 | ) | ||||||
| Total Institutional Class | 6,346,989 | 14,440,044 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 34,544,006 | 88,594,654 | ||||||||
| Dividends reinvested | 21,956,364 | 49,407,322 | ||||||||
| Cost of shares redeemed | (40,335,778 | ) | (70,717,872 | ) | ||||||
| Total Service Class | 16,164,592 | 67,284,104 | ||||||||
| Change in net assets from capital transactions: | $ | 35,068,350 | $ | 98,976,157 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,491,222 | 1,367,928 | ||||||||
| Reinvested | 129,046 | 401,814 | ||||||||
| Redeemed | (756,955 | ) | (2,299,399 | ) | ||||||
| Total Class A Shares | 863,313 | (529,657 | ) | |||||||
Class B Shares | ||||||||||
| Issued | 45,964 | 145,246 | ||||||||
| Reinvested | 36,876 | 111,166 | ||||||||
| Redeemed | (139,380 | ) | (305,449 | ) | ||||||
| Total Class B Shares | (56,540 | ) | (49,037 | ) | ||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 15
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations | ||||||||||
| Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Issued | 959,423 | 2,049,280 | ||||||||
| Reinvested | 113,846 | 310,740 | ||||||||
| Redeemed | (1,393,429 | ) | (2,642,752 | ) | ||||||
| Total Class C Shares | (320,160 | ) | (282,732 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 1,551,115 | 3,809,648 | ||||||||
| Reinvested | 282,145 | 556,082 | ||||||||
| Redeemed | (637,607 | ) | (676,410 | ) | ||||||
| Total Class R2 Shares | 1,195,653 | 3,689,320 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 961,532 | 2,311,448 | ||||||||
| Reinvested | 204,283 | 407,977 | ||||||||
| Redeemed | (345,777 | ) | (520,330 | ) | ||||||
| Total Institutional Class Shares | 820,038 | 2,199,095 | ||||||||
Service Class Shares | ||||||||||
| Issued | 4,467,041 | 14,060,517 | ||||||||
| Reinvested | 2,900,444 | 8,213,605 | ||||||||
| Redeemed | (5,236,479 | ) | (11,178,877 | ) | ||||||
| Total Service Class Shares | 2,131,006 | 11,095,245 | ||||||||
| Total change in shares: | 4,633,310 | 16,122,234 | ||||||||
The accompanying notes are an integral part of these financial statements.
16 Semiannual Report 2010
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, 2010 (Unaudited) (f) | $ | 7 | .30 | 0 | .05 | 0 | .92 | 0 | .97 | (0 | .06) | (0 | .20) | (0 | .26) | $ | 8 | .01 | 13 | .44% | $ | 50,564,959 | 0 | .50% | 1 | .42% | 0 | .50% | 3 | .94% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .02 | 0 | .13 | 0 | .78 | 0 | .91 | (0 | .13) | (0 | .50) | (0 | .63) | $ | 7 | .30 | 14 | .98% | $ | 39,797,434 | 0 | .55% | 1 | .99% | 0 | .55% | 11 | .99% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 6 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .19 | 0 | .03 | 0 | .90 | 0 | .93 | (0 | .05) | (0 | .20) | (0 | .25) | $ | 7 | .87 | 13 | .00% | $ | 12,997,607 | 1 | .19% | 0 | .77% | 1 | .19% | 3 | .94% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .93 | 0 | .08 | 0 | .77 | 0 | .85 | (0 | .09) | (0 | .50) | (0 | .59) | $ | 7 | .19 | 14 | .11% | $ | 12,280,157 | 1 | .22% | 1 | .32% | 1 | .22% | 11 | .99% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 6 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .17 | 0 | .03 | 0 | .90 | 0 | .93 | (0 | .05) | (0 | .20) | (0 | .25) | $ | 7 | .85 | 13 | .04% | $ | 74,340,077 | 1 | .19% | 0 | .77% | 1 | .19% | 3 | .94% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .91 | 0 | .07 | 0 | .78 | 0 | .85 | (0 | .09) | (0 | .50) | (0 | .59) | $ | 7 | .17 | 14 | .15% | $ | 70,213,439 | 1 | .22% | 1 | .04% | 1 | .22% | 11 | .99% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 6 | .51% | ||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 17
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .21 | 0 | .04 | 0 | .90 | 0 | .94 | (0 | .05) | (0 | .20) | (0 | .25) | $ | 7 | .90 | 13 | .23% | $ | 79,823,823 | 0 | .82% | 1 | .08% | 0 | .82% | 3 | .94% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .95 | 0 | .10 | 0 | .77 | 0 | .87 | (0 | .11) | (0 | .50) | (0 | .61) | $ | 7 | .21 | 14 | .53% | $ | 64,237,573 | 0 | .87% | 1 | .56% | 0 | .87% | 11 | .99% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 6 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .36 | 0 | .07 | 0 | .93 | 1 | .00 | (0 | .07) | (0 | .20) | (0 | .27) | $ | 8 | .09 | 13 | .69% | $ | 53,373,297 | 0 | .19% | 1 | .71% | 0 | .19% | 3 | .94% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .08 | 0 | .14 | 0 | .79 | 0 | .93 | (0 | .15) | (0 | .50) | (0 | .65) | $ | 7 | .36 | 15 | .23% | $ | 42,570,681 | 0 | .22% | 2 | .17% | 0 | .22% | 11 | .99% | |||||||||||||||||||||||||||||||||||||||||
| 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 (i) | $ | 9 | .31 | 0 | .09 | 0 | .25 | 0 | .34 | (0 | .12) | – | (0 | .12) | $ | 9 | .53 | 3 | .66% | $ | 1,036 | 0 | .24% | 1 | .39% | 0 | .24%(g) | 6 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .32 | 0 | .05 | 0 | .91 | 0 | .96 | (0 | .06) | (0 | .20) | (0 | .26) | $ | 8 | .02 | 13 | .23% | $ | 719,565,957 | 0 | .59% | 1 | .35% | 0 | .59% | 3 | .94% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .04 | 0 | .12 | 0 | .79 | 0 | .91 | (0 | .13) | (0 | .50) | (0 | .63) | $ | 7 | .32 | 14 | .91% | $ | 640,465,271 | 0 | .63% | 1 | .87% | 0 | .63% | 11 | .99% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 6 | .51% | ||||||||||||||||||||||||||||||||||||||||||
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) | 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 December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are an integral part of these financial statements.
18 Semiannual Report 2010
| 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, 2010, the Nationwide Investor Destinations Moderately Aggressive Fund (Class A at NAV) returned 11.33% versus 12.81% for its composite benchmark, 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 closest Lipper peer category of Mixed-Asset Target Allocation Growth Funds (consisting of 584 funds as of April 30, 2010) was 11.01%.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 35% and 15%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the S&P 500 Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear of these returns during the reporting period.
What areas of investment detracted from Fund performance?
None of the underlying investments posted negative performance during the reporting period. The Fund’s investments in the Nationwide Enhanced Income Fund and the Nationwide Contract (with target allocations of approximately 2.5% each) returned 0.69% and 1.82%, respectively, providing the smallest relative contributions to Fund performance. These two investments in the Fund’s short-term bond asset class were small sources of positive relative performance, as their allocations to U.S. Treasuries was generally slightly negative during the reporting period.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from midJanuary to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
2010 Semiannual Report 19
Nationwide Investor Destinations Moderately Aggressive Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Aggressive Fund
Performance of Underlying Investments for the Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation* | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 35 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 25 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 15 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 15 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 5 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Short-Term Bonds | Nationwide Enhanced Income Fund | 2.5 | % | 0.69 | % | 1.85 | % | 3.56 | % | 3.00 | % | 12/29/99 | ||||||||||||||||||||
| Nationwide Contract | 2.5 | % | 1.82 | % | 3.74 | % | 3.79 | % | 4.17 | % | 3/30/00 | |||||||||||||||||||||
| * | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above is for Institutional Class shares for each underlying investment except the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
20 Semiannual Report 2010
| Fund Performance | Nationwide Investor Destinations Moderately Aggressive Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 11.33% | 32.28% | 3.93% | 2.27% | |||||||||||||
| w/SC2 | 4.89% | 24.74% | 2.71% | 1.67% | ||||||||||||||
| Class B | w/o SC1 | 10.95% | 31.41% | 3.19% | 1.53% | |||||||||||||
| w/SC3 | 5.95% | 26.41% | 2.86% | 1.53% | ||||||||||||||
Class C4 | w/o SC1 | 10.95% | 31.41% | 3.19% | 1.56% | |||||||||||||
| w/SC5 | 9.95% | 30.41% | 3.19% | 1.56% | ||||||||||||||
Class R26,7,8 | 11.07% | 31.78% | 3.62% | 1.83% | ||||||||||||||
Institutional Class6,9 | 11.49% | 32.67% | 4.22% | 2.41% | ||||||||||||||
Service Class6 | 11.28% | 32.15% | 3.81% | 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 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 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. | |
| 5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. | |
| 6 | Not subject to any sales charges. | |
| 7 | 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 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. |
Expense Ratios
| Expense | ||||
| Ratio* | ||||
| Class A | 0.82% | |||
| Class B | 1.54% | |||
| Class C | 1.54% | |||
| Class R2 | 1.18% | |||
| Institutional Class | 0.54% | |||
| Service Class | 0.94% | |||
| * | Current effective prospectus dated May 6, 2010. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 21
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Investor Destinations | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Moderately Aggressive Fund | 11/01/09 | 4/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,113.30 | 2.46 | 0.47 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.46 | 2.36 | 0.47 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,109.50 | 6.17 | 1.18 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.94 | 5.91 | 1.18 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,109.50 | 6.17 | 1.18 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.94 | 5.91 | 1.18 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,110.70 | 4.34 | 0.83 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.68 | 4.16 | 0.83 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,114.90 | 0.94 | 0.18 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.90 | 0.90 | 0.18 | |||||||||||||||
| Service Class Shares | Actual | 1,000.00 | 1,112.80 | 3.09 | 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 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 2010
| Portfolio Summary | Nationwide Investor Destinations Moderately Aggressive Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 80 | .7% | ||
| Fixed Income Funds | 16 | .9% | ||
| Fixed Contract | 2 | .4% | ||
| Liabilities in excess of other assets‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 35 | .4% | ||
| Nationwide International Index Fund, Institutional Class | 23 | .7% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 16 | .1% | ||
| Nationwide Bond Index Fund, Institutional Class | 14 | .6% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 5 | .4% | ||
| Nationwide Enhanced Income Fund, Institutional Class | 2 | .4% | ||
| Nationwide Fixed Contract | 2 | .4% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.01% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 23
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Investor Destinations Moderately Aggressive Fund
| Mutual Funds 97.6% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 80.7% | ||||||||
| Nationwide International Index Fund, Institutional Class (a) | 55,732,138 | $ | 389,010,324 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 19,391,689 | 264,502,631 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 58,402,377 | 582,855,727 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 8,166,963 | 89,673,256 | ||||||
Total Equity Funds (cost $1,412,785,967) | 1,326,041,938 | |||||||
Fixed Income Funds 16.9% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 21,377,639 | 239,215,777 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class (a) | 4,373,952 | 39,802,968 | ||||||
Total Fixed Income Funds (cost $271,807,874) | 279,018,745 | |||||||
Total Mutual Funds (cost $1,684,593,841) | 1,605,060,683 | |||||||
| Fixed Contract 2.4% | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.60% (a)(b) | $ | 38,985,613 | 38,985,613 | |||||
Total Fixed Contract (cost $38,985,613) | 38,985,613 | |||||||
Total Investments (cost $1,723,579,454) (c) — 100.0% | 1,644,046,296 | |||||||
Liabilities in excess of other assets — 0.0% | (632,555 | ) | ||||||
NET ASSETS — 100.0% | $ | 1,643,413,741 | ||||||
| (a) | Investment in affiliate. | |
| (b) | The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees. | |
| (c) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
The accompanying notes are an integral part of these financial statements.
24 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Investor | |||||
| Destinations Moderately | |||||
| Aggressive Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $1,723,579,454) | $ | 1,644,046,296 | |||
| Cash | 5 | ||||
| Interest and dividends receivable | 742,378 | ||||
| Receivable for investments sold | 1,113,577 | ||||
| Receivable for capital shares issued | 1,302,525 | ||||
| Prepaid expenses and other assets | 65,087 | ||||
| Total Assets | 1,647,269,868 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 2,639,425 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 177,010 | ||||
| Distribution fees | 453,751 | ||||
| Administrative servicing fees | 295,312 | ||||
| Accounting and transfer agent fees | 67,639 | ||||
| Trustee fees | 21,079 | ||||
| Custodian fees | 11,256 | ||||
| Compliance program costs (Note 3) | 12,888 | ||||
| Professional fees | 94,235 | ||||
| Printing fees | 55,348 | ||||
| Other | 28,184 | ||||
| Total Liabilities | 3,856,127 | ||||
Net Assets | $ | 1,643,413,741 | |||
Represented by: | |||||
| Capital | $ | 1,756,524,026 | |||
| Accumulated undistributed net investment income | 210,722 | ||||
| Accumulated net realized losses from investment transactions | (33,787,849 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (79,533,158 | ) | |||
Net Assets | $ | 1,643,413,741 | |||
Net Assets: | |||||
| Class A Shares | $ | 84,494,937 | |||
| Class B Shares | 25,120,721 | ||||
| Class C Shares | 138,063,122 | ||||
| Class R2 Shares | 167,364,172 | ||||
| Institutional Class Shares | 113,004,898 | ||||
| Service Class Shares | 1,115,365,891 | ||||
| Total | $ | 1,643,413,741 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 9,764,092 | ||||
| Class B Shares | 2,956,602 | ||||
| Class C Shares | 16,245,973 | ||||
| Class R2 Shares | 19,688,601 | ||||
| Institutional Class Shares | 13,068,218 | ||||
| Service Class Shares | 129,132,352 | ||||
| Total | 190,855,838 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 25
Statement of Assets and Liabilities (Continued)
| 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 | $ | 8.65 | |||
| Class B Shares (a) | $ | 8.50 | |||
| Class C Shares (b) | $ | 8.50 | |||
| Class R2 Shares | $ | 8.50 | |||
| Institutional Class Shares | $ | 8.65 | |||
| Service Class Shares | $ | 8.64 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.18 | |||
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.
26 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Investor | |||||
| Destinations | |||||
| Moderately | |||||
| Aggressive Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 7 | |||
| Interest income from affiliates | 646,440 | ||||
| Dividend income from affiliates | 16,929,239 | ||||
| Total Income | 17,575,686 | ||||
EXPENSES: | |||||
| Investment advisory fees | 1,009,171 | ||||
| Distribution fees Class A | 100,325 | ||||
| Distribution fees Class B | 125,522 | ||||
| Distribution fees Class C | 673,785 | ||||
| Distribution fees Class R2 | 373,641 | ||||
| Distribution fees Service Class | 1,330,930 | ||||
| Administrative servicing fees Class A | 16,052 | ||||
| Administrative servicing fees Class R2 | 110,421 | ||||
| Administrative servicing fees Service Class | 812,965 | ||||
| Registration and filing fees | 30,601 | ||||
| Professional fees | 76,460 | ||||
| Printing fees | 55,135 | ||||
| Trustee fees | 33,603 | ||||
| Custodian fees | 36,421 | ||||
| Accounting and transfer agent fees | 145,732 | ||||
| Compliance program costs (Note 3) | 7,658 | ||||
| Other | 29,408 | ||||
| Total expenses before earnings credit | 4,967,830 | ||||
| Earnings credit (Note 5) | (815 | ) | |||
| Net Expenses | 4,967,015 | ||||
NET INVESTMENT INCOME | 12,608,671 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (4,329,766 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 156,585,439 | ||||
| Net realized/unrealized gains from investments | 152,255,673 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 164,864,344 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 27
Statements of Changes in Net Assets
| Nationwide Investor Destinations | ||||||||||
| Moderately Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 12,608,671 | $ | 25,506,762 | ||||||
| Net realized gains/(losses) from investment transactions with affiliates | (4,329,766 | ) | 3,402,376 | |||||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 156,585,439 | 160,665,518 | ||||||||
| Change in net assets resulting from operations | 164,864,344 | 189,574,656 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (703,629 | ) | (1,527,971 | ) | ||||||
| Class B | (155,843 | ) | (370,798 | ) | ||||||
| Class C | (831,876 | ) | (1,911,121 | ) | ||||||
| Class R2 (a) | (1,038,526 | ) | (1,952,895 | ) | ||||||
| Institutional Class | (983,678 | ) | (1,482,266 | ) | ||||||
| Service Class | (8,684,397 | ) | (18,877,506 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (1,514,183 | ) | (5,117,352 | ) | ||||||
| Class B | (492,867 | ) | (1,878,323 | ) | ||||||
| Class C | (2,617,633 | ) | (9,553,996 | ) | ||||||
| Class R2 (a) | (2,783,918 | ) | (6,600,125 | ) | ||||||
| Institutional Class | (1,780,710 | ) | (3,933,422 | ) | ||||||
| Service Class | (20,065,721 | ) | (64,503,068 | ) | ||||||
| Change in net assets from shareholder distributions | (41,652,981 | ) | (117,708,843 | ) | ||||||
| Change in net assets from capital transactions | 55,794,338 | 165,176,859 | ||||||||
| Change in net assets | 179,005,701 | 237,042,672 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 1,464,408,040 | 1,227,365,368 | ||||||||
| End of period | $ | 1,643,413,741 | $ | 1,464,408,040 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 210,722 | $ | – | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 8,907,908 | $ | 22,311,147 | ||||||
| Dividends reinvested | 1,375,755 | 3,868,733 | ||||||||
| Cost of shares redeemed | (8,239,465 | ) | (19,735,016 | ) | ||||||
| Total Class A | 2,044,198 | 6,444,864 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 491,594 | 1,347,714 | ||||||||
| Dividends reinvested | 474,602 | 1,569,358 | ||||||||
| Cost of shares redeemed | (2,787,574 | ) | (4,826,391 | ) | ||||||
| Total Class B | (1,821,378 | ) | (1,909,319 | ) | ||||||
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.
28 Semiannual Report 2010
| Nationwide Investor Destinations | ||||||||||
| Moderately Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 10,325,204 | $ | 23,410,766 | ||||||
| Dividends reinvested | 1,123,706 | 3,342,025 | ||||||||
| Cost of shares redeemed | (15,180,298 | ) | (31,904,497 | ) | ||||||
| Total Class C | (3,731,388 | ) | (5,151,706 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 24,736,633 | 40,599,268 | ||||||||
| Dividends reinvested | 3,649,084 | 8,143,620 | ||||||||
| Cost of shares redeemed | (6,979,155 | ) | (6,666,994 | ) | ||||||
| Total Class R2 | 21,406,562 | 42,075,894 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 20,929,454 | 28,217,584 | ||||||||
| Dividends reinvested | 2,764,388 | 5,415,689 | ||||||||
| Cost of shares redeemed | (4,234,628 | ) | (5,863,691 | ) | ||||||
| Total Institutional Class | 19,459,214 | 27,769,582 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 50,141,480 | 117,176,153 | ||||||||
| Dividends reinvested | 28,750,118 | 83,380,449 | ||||||||
| Cost of shares redeemed | (60,454,468 | ) | (104,609,058 | ) | ||||||
| Total Service Class | 18,437,130 | 95,947,544 | ||||||||
| Change in net assets from capital transactions: | $ | 55,794,338 | $ | 165,176,859 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,060,778 | 3,171,825 | ||||||||
| Reinvested | 166,931 | 575,001 | ||||||||
| Redeemed | (981,510 | ) | (2,823,311 | ) | ||||||
| Total Class A Shares | 246,199 | 923,515 | ||||||||
Class B Shares | ||||||||||
| Issued | 59,821 | 200,737 | ||||||||
| Reinvested | 58,665 | 237,943 | ||||||||
| Redeemed | (338,414 | ) | (714,622 | ) | ||||||
| Total Class B Shares | (219,928 | ) | (275,942 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 1,257,202 | 3,403,931 | ||||||||
| Reinvested | 138,901 | 506,507 | ||||||||
| Redeemed | (1,845,815 | ) | (4,649,872 | ) | ||||||
| Total Class C Shares | (449,712 | ) | (739,434 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 2,993,328 | 5,887,190 | ||||||||
| Reinvested | 451,530 | 1,230,394 | ||||||||
| Redeemed | (849,284 | ) | (945,727 | ) | ||||||
| Total Class R2 Shares | 2,595,574 | 6,171,857 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 29
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations | ||||||||||
| Moderately Aggressive Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 2,503,952 | 3,861,212 | ||||||||
| Reinvested | 335,418 | 803,319 | ||||||||
| Redeemed | (504,203 | ) | (854,120 | ) | ||||||
| Total Institutional Class Shares | 2,335,167 | 3,810,411 | ||||||||
Service Class Shares | ||||||||||
| Issued | 5,985,754 | 16,661,947 | ||||||||
| Reinvested | 3,498,374 | 12,420,424 | ||||||||
| Redeemed | (7,214,443 | ) | (15,109,265 | ) | ||||||
| Total Service Class Shares | 2,269,685 | 13,973,106 | ||||||||
| Total change in shares: | 6,776,985 | 23,863,513 | ||||||||
| (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 2010
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 to | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | 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, 2010 (Unaudited) (f) | $ | 7 | .99 | 0 | .07 | 0 | .82 | 0 | .89 | (0 | .07) | (0 | .16) | (0 | .23) | $ | 8 | .65 | 11 | .33% | $ | 84,494,937 | 0 | .47% | 1 | .80% | 0 | .47% | 4 | .07% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .69 | 0 | .16 | 0 | .86 | 1 | .02 | (0 | .16) | (0 | .56) | (0 | .72) | $ | 7 | .99 | 15 | .29% | $ | 76,075,551 | 0 | .51% | 2 | .24% | 0 | .51% | 15 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 1 | .21%(g) | 5 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .86 | 0 | .05 | 0 | .80 | 0 | .85 | (0 | .05) | (0 | .16) | (0 | .21) | $ | 8 | .50 | 10 | .95% | $ | 25,120,721 | 1 | .18% | 1 | .13% | 1 | .18% | 4 | .07% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .57 | 0 | .11 | 0 | .85 | 0 | .96 | (0 | .11) | (0 | .56) | (0 | .67) | $ | 7 | .86 | 14 | .57% | $ | 24,958,525 | 1 | .21% | 1 | .55% | 1 | .21% | 15 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .86 | 0 | .05 | 0 | .80 | 0 | .85 | (0 | .05) | (0 | .16) | (0 | .21) | $ | 8 | .50 | 10 | .95% | $ | 138,063,122 | 1 | .18% | 1 | .10% | 1 | .18% | 4 | .07% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .57 | 0 | .11 | 0 | .85 | 0 | .96 | (0 | .11) | (0 | .56) | (0 | .67) | $ | 7 | .86 | 14 | .58% | $ | 131,214,546 | 1 | .21% | 1 | .55% | 1 | .21% | 15 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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% | 0 | .61%(g) | 5 | .51% | ||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 31
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 to | Income | Reimbursements) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | (Losses) from | from | Investment | Realized | Total | Value, End | Total | at End of | 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 (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .86 | 0 | .06 | 0 | .80 | 0 | .86 | (0 | .06) | (0 | .16) | (0 | .22) | $ | 8 | .50 | 11 | .07% | $ | 167,364,172 | 0 | .83% | 1 | .41% | 0 | .83% | 4 | .07% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .58 | 0 | .13 | 0 | .85 | 0 | .98 | (0 | .14) | (0 | .56) | (0 | .70) | $ | 7 | .86 | 14 | .89% | $ | 134,283,065 | 0 | .87% | 1 | .81% | 0 | .87% | 15 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .99 | 0 | .08 | 0 | .83 | 0 | .91 | (0 | .09) | (0 | .16) | (0 | .25) | $ | 8 | .65 | 11 | .49% | $ | 113,004,898 | 0 | .18% | 2 | .02% | 0 | .18% | 4 | .07% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .69 | 0 | .17 | 0 | .87 | 1 | .04 | (0 | .18) | (0 | .56) | (0 | .74) | $ | 7 | .99 | 15 | .63% | $ | 85,728,623 | 0 | .21% | 2 | .42% | 0 | .21% | 15 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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 (i) | $ | 9 | .67 | 0 | .12 | 0 | .20 | 0 | .32 | (0 | .14) | – | (0 | .14) | $ | 9 | .85 | 3 | .37% | $ | 1,033 | 0 | .24% | 1 | .73% | 0 | .24%(g) | 5 | .51% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 7 | .98 | 0 | .07 | 0 | .82 | 0 | .89 | (0 | .07) | (0 | .16) | (0 | .23) | $ | 8 | .64 | 11 | .28% | $ | 1,115,365,891 | 0 | .59% | 1 | .68% | 0 | .59% | 4 | .07% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 7 | .68 | 0 | .15 | 0 | .87 | 1 | .02 | (0 | .16) | (0 | .56) | (0 | .72) | $ | 7 | .98 | 15 | .22% | $ | 1,012,147,730 | 0 | .63% | 2 | .10% | 0 | .63% | 15 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .51% | ||||||||||||||||||||||||||||||||||||||||||
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) 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 December 29, 2004 (commencement of operations) through October 31, 2005.
The accompanying notes are an integral part of these financial statements.
32 Semiannual Report 2010
| 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, 2010, the Nationwide Investor Destinations Moderate Fund (Class A at NAV) returned 9.27% versus 9.88% for its composite benchmark, 60% Standard & Poor’s® (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 closest Lipper peer category of Mixed-Asset Target Allocation Moderate Funds (consisting of 509 funds as of April 30, 2010) was 9.53% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 30% and 10%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the S&P 500 Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear during the reporting period.
What areas of investment detracted from Fund performance?
None of the underlying investments posted negative performance during the reporting period. The Fund’s investment in the Nationwide Money Market Fund (with a target allocation of 3%) returned 0.00% and provided no meaningful contribution to Fund performance. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on money funds (which hold only high-quality, ultra-short-term investments) will continue to be challenged to achieve any sort of return for investors.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from midJanuary to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
2010 Semiannual Report 33
Nationwide Investor Destinations Moderate Fund (Continued)
The table below lists the target allocations for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation* | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 30 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 25 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 15 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 10 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| Short-Term Bonds | Nationwide Enhanced Income Fund | 6 | % | 0.69 | % | 1.85 | % | 3.56 | % | 3.00 | % | 12/29/99 | ||||||||||||||||||||
| Nationwide Contract | 6 | % | 1.82 | % | 3.74 | % | 3.79 | % | 4.17 | % | 3/30/00 | |||||||||||||||||||||
| Small-Cap Stocks | Nationwide Small Cap Index Fund | 5 | % | 28.00 | % | 48.78 | % | 5.47 | % | 4.04 | % | 12/29/99 | ||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 3 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| * | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above is for Institutional Class shares for each underlying investment except the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
34 Semiannual Report 2010
| Fund Performance | Nationwide Investor Destinations Moderate Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 9.27% | 25.22% | 4.08% | 2.96% | |||||||||||||
| w/SC2 | 3.00% | 18.02% | 2.85% | 2.35% | ||||||||||||||
| Class B | w/o SC1 | 8.94% | 24.38% | 3.32% | 2.22% | |||||||||||||
| w/SC3 | 3.94% | 19.38% | 2.99% | 2.22% | ||||||||||||||
Class C4 | w/o SC1 | 8.86% | 24.36% | 3.31% | 2.20% | |||||||||||||
| w/SC5 | 7.86% | 23.36% | 3.31% | 2.20% | ||||||||||||||
Class R26,7,8 | 9.10% | 24.79% | 3.76% | 2.51% | ||||||||||||||
Institutional Class6,9 | 9.42% | 25.57% | 4.37% | 3.10% | ||||||||||||||
Service Class6 | 9.20% | 25.05% | 3.95% | 2.86% | ||||||||||||||
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 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 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. | |
| 5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. | |
| 6 | Not subject to any sales charges. | |
| 7 | 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 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. |
Expense Ratios
| Expense | ||||
| Ratio* | ||||
| Class A | 0.81% | |||
| Class B | 1.53% | |||
| Class C | 1.53% | |||
| Class R2 | 1.16% | |||
| Institutional Class | 0.53% | |||
| Service Class | 0.93% | |||
| * | Current effective prospectus dated May 6, 2010. Expenses also include indirect underlying fund expenses. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 35
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Investor Destinations | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Moderate Fund | 11/01/09 | 4/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,092.70 | 2.44 | 0.47 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.46 | 2.36 | 0.47 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,089.40 | 6.16 | 1.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.89 | 5.96 | 1.19 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,088.60 | 6.16 | 1.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.89 | 5.96 | 1.19 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,091.00 | 4.25 | 0.82 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.73 | 4.11 | 0.82 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,094.20 | 0.99 | 0.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.85 | 0.95 | 0.19 | |||||||||||||||
| Service Class Shares | Actual | 1,000.00 | 1,092.00 | 3.11 | 0.60 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.82 | 3.01 | 0.60 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with 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. |
36 Semiannual Report 2010
| Portfolio Summary | Nationwide Investor Destinations Moderate Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Equity Funds | 61 | .2% | ||
| Fixed Income Funds | 31 | .2% | ||
| Fixed Contract | 5 | .7% | ||
| Money Market Fund | 1 | .9% | ||
| Other assets in excess of liabilities‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide S&P 500 Index Fund, Institutional Class | 30 | .6% | ||
| Nationwide Bond Index Fund, Institutional Class | 24 | .4% | ||
| Nationwide International Index Fund, Institutional Class | 14 | .3% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 10 | .8% | ||
| Nationwide Enhanced Income Fund, Institutional Class | 6 | .8% | ||
| Nationwide Fixed Contract | 5 | .7% | ||
| Nationwide Small Cap Index Fund, Institutional Class | 5 | .5% | ||
| Nationwide Money Market Fund, Institutional Class | 1 | .9% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 37
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Investor Destinations Moderate Fund
| Mutual Funds 94.3% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 61.2% | ||||||||
| Nationwide International Index Fund, Institutional Class (a) | 28,854,938 | $ | 201,407,465 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 11,151,438 | 152,105,609 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 43,197,298 | 431,109,037 | ||||||
| Nationwide Small Cap Index Fund, Institutional Class (a) | 7,055,922 | 77,474,020 | ||||||
Total Equity Funds (cost $884,851,430) | 862,096,131 | |||||||
Fixed Income Funds 31.2% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 30,745,179 | 344,038,559 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class (a) | 10,525,591 | 95,782,881 | ||||||
Total Fixed Income Funds (cost $429,239,262) | 439,821,440 | |||||||
Money Market Fund 1.9% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 26,995,065 | 26,995,065 | ||||||
Total Money Market Fund (cost $26,995,065) | 26,995,065 | |||||||
Total Mutual Funds (cost $1,341,085,757) | 1,328,912,636 | |||||||
| Fixed Contract 5.7% | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.60% (a)(c) | $ | 80,582,955 | 80,582,955 | |||||
Total Fixed Contract (Cost $80,582,955) | 80,582,955 | |||||||
Total Investments (cost $1,421,668,712) (d) — 100.0% | 1,409,495,591 | |||||||
Other assets in excess of liabilities — 0.0% | 181,547 | |||||||
NET ASSETS — 100.0% | $ | 1,409,677,138 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
38 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Investor | |||||
| Destinations | |||||
| Moderate Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $1,421,668,712) | $ | 1,409,495,591 | |||
| Cash | 2 | ||||
| Interest and dividends receivable | 1,119,300 | ||||
| Receivable for investments sold | 713,939 | ||||
| Receivable for capital shares issued | 942,905 | ||||
| Prepaid expenses and other assets | 67,417 | ||||
| Total Assets | 1,412,339,154 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 1,605,490 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 150,744 | ||||
| Distribution fees | 402,411 | ||||
| Administrative servicing fees | 251,115 | ||||
| Accounting and transfer agent fees | 62,187 | ||||
| Trustee fees | 14,318 | ||||
| Custodian fees | 9,318 | ||||
| Compliance program costs (Note 3) | 11,031 | ||||
| Professional fees | 85,316 | ||||
| Printing fees | 44,412 | ||||
| Other | 25,674 | ||||
| Total Liabilities | 2,662,016 | ||||
Net Assets | $ | 1,409,677,138 | |||
Represented by: | |||||
| Capital | $ | 1,450,515,567 | |||
| Accumulated undistributed net investment income | 1,727,204 | ||||
| Accumulated net realized losses from investment transactions | (30,392,512 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | (12,173,121 | ) | |||
Net Assets | $ | 1,409,677,138 | |||
Net Assets: | |||||
| Class A Shares | $ | 92,241,246 | |||
| Class B Shares | 21,406,453 | ||||
| Class C Shares | 148,111,285 | ||||
| Class R2 Shares | 147,787,903 | ||||
| Institutional Class Shares | 113,997,915 | ||||
| Service Class Shares | 886,132,336 | ||||
| Total | $ | 1,409,677,138 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 10,135,114 | ||||
| Class B Shares | 2,389,211 | ||||
| Class C Shares | 16,595,947 | ||||
| Class R2 Shares | 16,640,161 | ||||
| Institutional Class Shares | 12,640,106 | ||||
| Service Class Shares | 98,323,743 | ||||
| Total | 156,724,282 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 39
Statement of Assets and Liabilities (Continued)
| 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 | $ | 9.10 | |||
| Class B Shares (a) | $ | 8.96 | |||
| Class C Shares (b) | $ | 8.92 | |||
| Class R2 Shares | $ | 8.88 | |||
| Institutional Class Shares | $ | 9.02 | |||
| Service Class Shares | $ | 9.01 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 9.66 | |||
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.
40 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Investor | |||||
| Destinations | |||||
| Moderate Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 10 | |||
| Interest income from affiliates | 1,422,264 | ||||
| Dividend income from affiliates | 15,564,942 | ||||
| Total Income | 16,987,216 | ||||
EXPENSES: | |||||
| Investment advisory fees | 863,866 | ||||
| Distribution fees Class A | 102,955 | ||||
| Distribution fees Class B | 110,798 | ||||
| Distribution fees Class C | 715,903 | ||||
| Distribution fees Class R2 | 336,108 | ||||
| Distribution fees Service Class | 1,057,401 | ||||
| Administrative servicing fees Class A | 12,354 | ||||
| Administrative servicing fees Class R2 | 87,387 | ||||
| Administrative servicing fees Service Class | 676,744 | ||||
| Registration and filing fees | 31,891 | ||||
| Professional fees | 64,150 | ||||
| Printing fees | 45,314 | ||||
| Trustee fees | 31,410 | ||||
| Custodian fees | 30,306 | ||||
| Accounting and transfer agent fees | 139,710 | ||||
| Compliance program costs (Note 3) | 6,586 | ||||
| Other | 27,428 | ||||
| Total expenses before earnings credit | 4,340,311 | ||||
| Earnings credit (Note 5) | (616 | ) | |||
| Net Expenses | 4,339,695 | ||||
NET INVESTMENT INCOME | 12,647,521 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (4,798,050 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 108,779,538 | ||||
| Net realized/unrealized gains from affiliated investments | 103,981,488 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 116,629,009 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 41
Statements of Changes in Net Assets
| Nationwide Investor | ||||||||||
| Destinations Moderate Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 12,647,521 | $ | 24,108,196 | ||||||
| Net realized losses from investment transactions with affiliates | (4,798,050 | ) | (16,738,494 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 108,779,538 | 137,797,114 | ||||||||
| Change in net assets resulting from operations | 116,629,009 | 145,166,816 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (138,389 | ) | (1,552,381 | ) | ||||||
| Class B | (154,037 | ) | (384,280 | ) | ||||||
| Class C | (984,313 | ) | (2,212,497 | ) | ||||||
| Class R2 (a) | (1,140,400 | ) | (2,247,522 | ) | ||||||
| Institutional Class | (1,176,068 | ) | (1,903,311 | ) | ||||||
| Service Class | (8,112,581 | ) | (16,533,590 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | (277,037 | ) | (5,646,662 | ) | ||||||
| Class B | (80,690 | ) | (2,071,873 | ) | ||||||
| Class C | (510,966 | ) | (11,252,124 | ) | ||||||
| Class R2 (a) | (464,687 | ) | (6,907,953 | ) | ||||||
| Institutional Class | (349,415 | ) | (5,702,093 | ) | ||||||
| Service Class | (2,975,766 | ) | (61,743,121 | ) | ||||||
| Change in net assets from shareholder distributions | (16,364,349 | ) | (118,157,407 | ) | ||||||
| Change in net assets from capital transactions | 46,500,705 | 148,452,845 | ||||||||
| Change in net assets | 146,765,365 | 175,462,254 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 1,262,911,773 | 1,087,449,519 | ||||||||
| End of period | $ | 1,409,677,138 | $ | 1,262,911,773 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 1,727,204 | $ | 785,471 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 23,799,547 | $ | 20,420,404 | ||||||
| Dividends reinvested | 255,927 | 4,540,137 | ||||||||
| Cost of shares redeemed | (12,123,977 | ) | (17,215,405 | ) | ||||||
| Total Class A | 11,931,497 | 7,745,136 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 522,499 | 1,407,617 | ||||||||
| Dividends reinvested | 136,442 | 1,340,998 | ||||||||
| Cost of shares redeemed | (3,470,358 | ) | (5,000,954 | ) | ||||||
| Total Class B | (2,811,417 | ) | (2,252,339 | ) | ||||||
| (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 2010
| Nationwide Investor | ||||||||||
| Destinations Moderate Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 12,309,650 | $ | 31,711,577 | ||||||
| Dividends reinvested | 533,125 | 3,964,429 | ||||||||
| Cost of shares redeemed | (14,492,760 | ) | (35,473,487 | ) | ||||||
| Total Class C | (1,649,985 | ) | 202,519 | |||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 20,952,831 | 44,742,885 | ||||||||
| Dividends reinvested | 1,483,838 | 8,319,991 | ||||||||
| Cost of shares redeemed | (8,181,713 | ) | (9,320,702 | ) | ||||||
| Total Class R2 | 14,254,956 | 43,742,174 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 20,853,863 | 22,607,565 | ||||||||
| Dividends reinvested | 1,525,483 | 7,605,387 | ||||||||
| Cost of shares redeemed | (6,540,915 | ) | (7,769,280 | ) | ||||||
| Total Institutional Class | 15,838,431 | 22,443,672 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 57,412,864 | 96,750,696 | ||||||||
| Dividends reinvested | 11,088,347 | 78,276,531 | ||||||||
| Cost of shares redeemed | (59,563,988 | ) | (98,455,544 | ) | ||||||
| Total Service Class | 8,937,223 | 76,571,683 | ||||||||
| Change in net assets from capital transactions: | $ | 46,500,705 | $ | 148,452,845 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,716,813 | 2,630,212 | ||||||||
| Reinvested | 29,059 | 620,235 | ||||||||
| Redeemed | (1,376,745 | ) | (2,298,045 | ) | ||||||
| Total Class A Shares | 1,369,127 | 952,402 | ||||||||
Class B Shares | ||||||||||
| Issued | 60,456 | 192,443 | ||||||||
| Reinvested | 15,884 | 184,875 | ||||||||
| Redeemed | (398,926 | ) | (671,242 | ) | ||||||
| Total Class B Shares | (322,586 | ) | (293,924 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 1,423,410 | 4,279,468 | ||||||||
| Reinvested | 62,341 | 547,578 | ||||||||
| Redeemed | (1,678,732 | ) | (4,708,032 | ) | ||||||
| Total Class C Shares | (192,981 | ) | 119,014 | |||||||
Class R2 Shares (a) | ||||||||||
| Issued | 2,430,058 | 5,943,406 | ||||||||
| Reinvested | 173,954 | 1,153,201 | ||||||||
| Redeemed | (951,006 | ) | (1,238,161 | ) | ||||||
| Total Class R2 Shares | 1,653,006 | 5,858,446 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. The accompanying notes are an integral part of these financial statements. |
2010 Semiannual Report 43
Statements of Changes in Net Assets (Continued)
| Nationwide Investor | ||||||||||
| Destinations Moderate Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 2,374,291 | 2,912,298 | ||||||||
| Reinvested | 175,777 | 1,038,161 | ||||||||
| Redeemed | (751,488 | ) | (1,044,865 | ) | ||||||
| Total Institutional Class Shares | 1,798,580 | 2,905,594 | ||||||||
Service Class Shares | ||||||||||
| Issued | 6,565,143 | 12,690,037 | ||||||||
| Reinvested | 1,280,478 | 10,712,040 | ||||||||
| Redeemed | (6,827,644 | ) | (13,091,250 | ) | ||||||
| Total Service Class Shares | 1,017,977 | 10,310,827 | ||||||||
| Total change in shares: | 5,323,123 | 19,852,359 | ||||||||
| (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 2010
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, 2010 (Unaudited) (f) | $ | 8 | .37 | 0 | .09 | 0 | .68 | 0 | .77 | (0 | .01) | (0 | .03) | (0 | .04) | $ | 9 | .10 | 9 | .27% | $ | 92,241,246 | 0 | .47% | 2 | .04% | 0 | .47% | 4 | .62% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .29 | 0 | .18 | 0 | .80 | 0 | .98 | (0 | .19) | (0 | .71) | (0 | .90) | $ | 8 | .37 | 13 | .54% | $ | 73,380,653 | 0 | .50% | 2 | .38% | 0 | .50% | 20 | .17% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .91% | |||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .31 | 0 | .06 | 0 | .68 | 0 | .74 | (0 | .06) | (0 | .03) | (0 | .09) | $ | 8 | .96 | 8 | .94% | $ | 21,406,453 | 1 | .19% | 1 | .41% | 1 | .19% | 4 | .62% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .24 | 0 | .13 | 0 | .78 | 0 | .91 | (0 | .13) | (0 | .71) | (0 | .84) | $ | 8 | .31 | 12 | .66% | $ | 22,546,617 | 1 | .21% | 1 | .69% | 1 | .21% | 20 | .17% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .91% | |||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .28 | 0 | .06 | 0 | .67 | 0 | .73 | (0 | .06) | (0 | .03) | (0 | .09) | $ | 8 | .92 | 8 | .86% | $ | 148,111,285 | 1 | .19% | 1 | .38% | 1 | .19% | 4 | .62% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .21 | 0 | .13 | 0 | .78 | 0 | .91 | (0 | .13) | (0 | .71) | (0 | .84) | $ | 8 | .28 | 12 | .72% | $ | 139,055,974 | 1 | .21% | 1 | .68% | 1 | .21% | 20 | .17% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .91% | |||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 45
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .24 | 0 | .07 | 0 | .67 | 0 | .74 | (0 | .07) | (0 | .03) | (0 | .10) | $ | 8 | .88 | 9 | .10% | $ | 147,787,903 | 0 | .82% | 1 | .71% | 0 | .82% | 4 | .62% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .21 | 0 | .15 | 0 | .78 | 0 | .93 | (0 | .19) | (0 | .71) | (0 | .90) | $ | 8 | .24 | 13 | .11% | $ | 123,534,769 | 0 | .87% | 1 | .94% | 0 | .87% | 20 | .17% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .91% | |||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .37 | 0 | .10 | 0 | .68 | 0 | .78 | (0 | .10) | (0 | .03) | (0 | .13) | $ | 9 | .02 | 9 | .42% | $ | 113,997,915 | 0 | .19% | 2 | .36% | 0 | .19% | 4 | .62% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .29 | 0 | .20 | 0 | .80 | 1 | .00 | (0 | .21) | (0 | .71) | (0 | .92) | $ | 8 | .37 | 13 | .87% | $ | 90,723,665 | 0 | .21% | 2 | .61% | 0 | .21% | 20 | .17% | |||||||||||||||||||||||||||||||||||||||||
| 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 (i) | $ | 10 | .02 | 0 | .18 | 0 | .09 | 0 | .27 | (0 | .17) | – | (0 | .17) | $ | 10 | .12 | 2 | .71% | $ | 1,027 | 0 | .23% | 2 | .45% | 0 | .23%(g) | 5 | .91% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .36 | 0 | .09 | 0 | .67 | 0 | .76 | (0 | .08) | (0 | .03) | (0 | .11) | $ | 9 | .01 | 9 | .20% | $ | 886,132,336 | 0 | .60% | 1 | .97% | 0 | .60% | 4 | .62% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .28 | 0 | .17 | 0 | .80 | 0 | .97 | (0 | .18) | (0 | .71) | (0 | .89) | $ | 8 | .36 | 13 | .40% | $ | 813,670,095 | 0 | .63% | 2 | .24% | 0 | .63% | 20 | .17% | |||||||||||||||||||||||||||||||||||||||||
| 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%(g) | 5 | .91% | |||||||||||||||||||||||||||||||||||||||||
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) | 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 December 29, 2004 (commencement of operations) through October 31, 2005. |
The accompanying notes are an integral part of these financial statements.
46 Semiannual Report 2010
| 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, 2010, the Nationwide Investor Destinations Moderately Conservative Fund (Class A at NAV) returned 6.57% versus 7.00% for its composite benchmark, 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. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target Allocation Moderate Funds (consisting of 509 funds as of April 30, 2010) was 9.53% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 20% and 10%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the S&P 500 Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear of these returns during the reporting period.
What areas of investment detracted from Fund performance?
None of the underlying investments posted negative performance during the reporting period. The Fund’s investment in the Nationwide Money Market Fund (with a target allocation of 7%) returned 0.00% and provided no meaningful contribution to Fund performance. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on money funds (which hold only high-quality, ultra-short-term investments) will continue to be challenged to achieve any sort of return for investors.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from midJanuary to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
2010 Semiannual Report 47
Nationwide Investor Destinations
Moderately Conservative Fund (Continued)
Moderately Conservative Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Target | or Since | Inception | ||||||||||||||||||||||||||||||
| Asset Classes | Underlying Investments | Allocation* | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 35 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 20 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 10 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 10 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Short-Term Bonds | Nationwide Enhanced Income Fund | 9 | % | 0.69 | % | 1.85 | % | 3.56 | % | 3.00 | % | 12/29/99 | ||||||||||||||||||||
| Nationwide Contract | 9 | % | 1.82 | % | 3.74 | % | 3.79 | % | 4.17 | % | 3/30/00 | |||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 7 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| * | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above is for Institutional Class shares for each underlying investment except the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
48 Semiannual Report 2010
| Fund Performance | Nationwide Investor Destinations Moderately Conservative Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 6.57% | 18.13% | 4.17% | 3.50% | |||||||||||||
| w/SC2 | 0.46% | 11.37% | 2.95% | 2.90% | ||||||||||||||
| Class B | w/o SC1 | 6.18% | 17.32% | 3.43% | 2.80% | |||||||||||||
| w/SC3 | 1.18% | 12.32% | 3.09% | 2.80% | ||||||||||||||
Class C4 | w/o SC1 | 6.22% | 17.30% | 3.43% | 2.80% | |||||||||||||
| w/SC5 | 5.22% | 16.30% | 3.43% | 2.80% | ||||||||||||||
Class R26,7,8 | 6.38% | 17.76% | 3.90% | 3.13% | ||||||||||||||
Institutional Class6,9 | 6.68% | 18.50% | 4.50% | 3.68% | ||||||||||||||
Service Class6 | 6.48% | 18.05% | 4.06% | 3.44% | ||||||||||||||
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 | 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 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. | |
| 5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. | |
| 6 | Not subject to any sales charges. | |
| 7 | 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 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. |
Expense Ratios
| Gross | Net | |||||||
| Expense | Expense | |||||||
| Ratio* | Ratio* | |||||||
| Class A | 0.89% | 0.88% | ||||||
| Class B | 1.57% | 1.56% | ||||||
| Class C | 1.57% | 1.56% | ||||||
| Class R2 | 1.21% | 1.20% | ||||||
| Institutional Class | 0.57% | 0.56% | ||||||
| Service Class | 0.97% | 0.96% | ||||||
| * | Current effective prospectus dated May 6, 2010. Expenses also include indirect underlying fund expenses. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 49
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Investor Destinations Moderately Conservative Fund | 11/01/09 | 4/30/10 | 11/01/09 - 4/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,065.70 | 2.56 | 0.50 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.32 | 2.51 | 0.50 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,061.80 | 6.08 | 1.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.89 | 5.96 | 1.19 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,062.20 | 6.08 | 1.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.89 | 5.96 | 1.19 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,063.80 | 4.30 | 0.84 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.63 | 4.21 | 0.84 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,066.80 | 0.97 | 0.19 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.85 | 0.95 | 0.19 | |||||||||||||||
| Service Class Shares | Actual | 1,000.00 | 1,064.80 | 3.02 | 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 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. |
50 Semiannual Report 2010
| Portfolio Summary | Nationwide Investor Destinations Moderately Conservative Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Fixed Income Funds | 44 | .8% | ||
| Equity Funds | 41 | .1% | ||
| Fixed Contract | 10 | .1% | ||
| Money Market Fund | 4 | .0% | ||
| Other assets in excess of liabilities‡ | 0 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide Bond Index Fund, Institutional Class | 34 | .6% | ||
| Nationwide S&P 500 Index Fund, Institutional Class | 20 | .6% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 10 | .9% | ||
| Nationwide Enhanced Income Fund, Institutional Class | 10 | .2% | ||
| Nationwide Fixed Contract | 10 | .1% | ||
| Nationwide International Index Fund, Institutional Class | 9 | .6% | ||
| Nationwide Money Market Fund, Institutional Class | 4 | .0% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% | |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 51
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Investor Destinations Moderately Conservative Fund
| Mutual Funds 89.9% | ||||||||
Shares | Market Value | |||||||
Equity Funds 41.1% | ||||||||
| Nationwide International Index Fund, Institutional Class (a) | 6,292,076 | $ | 43,918,692 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 3,643,213 | 49,693,422 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 9,419,601 | 94,007,622 | ||||||
Total Equity Funds (cost $181,796,527) | 187,619,736 | |||||||
Fixed Income Funds 44.8% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 14,078,124 | 157,534,206 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class (a) | 5,122,441 | 46,614,212 | ||||||
Total Fixed Income Funds (cost $199,677,037) | 204,148,418 | |||||||
Money Market Fund 4.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 18,123,448 | 18,123,448 | ||||||
Total Money Market Fund (cost $18,123,448) | 18,123,448 | |||||||
Total Mutual Funds (cost $399,597,012) | 409,891,602 | |||||||
| Fixed Contract 10.1% | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.60% (a)(c) | $ | 46,182,450 | $ | 46,182,450 | ||||
Total Fixed Contract (cost $46,182,450) | 46,182,450 | |||||||
Total Investments (cost $445,779,462) (d) — 100.0% | 456,074,052 | |||||||
Other assets in excess of liabilities — 0.0% | 194,496 | |||||||
NET ASSETS — 100.0% | $ | 456,268,548 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
52 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Investor | |||||
| Destinations Moderately | |||||
| Conservative Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $445,779,462) | $ | 456,074,052 | |||
| Interest and dividends receivable | 514,158 | ||||
| Receivable for investments sold | 425,015 | ||||
| Receivable for capital shares issued | 372,698 | ||||
| Prepaid expenses and other assets | 52,220 | ||||
| Total Assets | 457,438,143 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 852,738 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 48,422 | ||||
| Distribution fees | 129,653 | ||||
| Administrative servicing fees | 75,893 | ||||
| Accounting and transfer agent fees | 18,178 | ||||
| Trustee fees | 5,797 | ||||
| Custodian fees | 2,869 | ||||
| Compliance program costs (Note 3) | 3,540 | ||||
| Professional fees | 18,889 | ||||
| Printing fees | 8,752 | ||||
| Other | 4,864 | ||||
| Total Liabilities | 1,169,595 | ||||
Net Assets | $ | 456,268,548 | |||
Represented by: | |||||
| Capital | $ | 458,235,272 | |||
| Accumulated undistributed net investment income | 1,067,457 | ||||
| Accumulated net realized losses from investment transactions | (13,328,771 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 10,294,590 | ||||
Net Assets | $ | 456,268,548 | |||
Net Assets: | |||||
| Class A Shares | $ | 31,812,226 | |||
| Class B Shares | 5,582,021 | ||||
| Class C Shares | 41,582,497 | ||||
| Class R2 Shares | 65,265,765 | ||||
| Institutional Class Shares | 30,989,869 | ||||
| Service Class Shares | 281,036,170 | ||||
| Total | $ | 456,268,548 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 3,277,631 | ||||
| Class B Shares | 575,038 | ||||
| Class C Shares | 4,300,477 | ||||
| Class R2 Shares | 6,715,717 | ||||
| Institutional Class Shares | 3,167,726 | ||||
| Service Class Shares | 28,828,942 | ||||
| Total | 46,865,531 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 53
Statement of Assets and Liabilities (Continued)
| 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 | $ | 9.71 | |||
| Class B Shares (a) | $ | 9.71 | |||
| Class C Shares (b) | $ | 9.67 | |||
| Class R2 Shares | $ | 9.72 | |||
| Institutional Class Shares | $ | 9.78 | |||
| Service Class Shares | $ | 9.75 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.30 | |||
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.
54 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Investor Destinations Moderately | |||||
| Conservative Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from affiliates | $ | 769,084 | |||
| Dividend income from affiliates | 5,428,818 | ||||
| Total Income | 6,197,902 | ||||
EXPENSES: | |||||
| Investment advisory fees | 278,738 | ||||
| Distribution fees Class A | 36,599 | ||||
| Distribution fees Class B | 28,285 | ||||
| Distribution fees Class C | 201,273 | ||||
| Distribution fees Class R2 | 149,962 | ||||
| Distribution fees Service Class | 335,772 | ||||
| Administrative servicing fees Class A | 8,389 | ||||
| Administrative servicing fees Class R2 | 43,559 | ||||
| Administrative servicing fees Service Class | 205,129 | ||||
| Registration and filing fees | 28,582 | ||||
| Professional fees | 21,764 | ||||
| Printing fees | 11,339 | ||||
| Trustee fees | 9,312 | ||||
| Custodian fees | 9,462 | ||||
| Accounting and transfer agent fees | 38,176 | ||||
| Compliance program costs (Note 3) | 2,122 | ||||
| Other | 9,781 | ||||
| Total expenses before earnings credit | 1,418,244 | ||||
| Earnings credit (Note 5) | (174 | ) | |||
| Net Expenses | 1,418,070 | ||||
NET INVESTMENT INCOME | 4,779,832 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (2,461,730 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 24,428,819 | ||||
| Net realized/unrealized gains from investments | 21,967,089 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 26,746,921 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 55
Statements of Changes in Net Assets
| Nationwide Investor Destinations | ||||||||||
| Moderately Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 4,779,832 | $ | 8,305,125 | ||||||
| Net realized losses from investment transactions with affiliates | (2,461,730 | ) | (8,433,733 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 24,428,819 | 43,833,932 | ||||||||
| Change in net assets resulting from operations | 26,746,921 | 43,705,324 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (332,278 | ) | (625,699 | ) | ||||||
| Class B | (41,353 | ) | (104,260 | ) | ||||||
| Class C | (293,203 | ) | (656,403 | ) | ||||||
| Class R2 (a) | (535,184 | ) | (896,595 | ) | ||||||
| Institutional Class | (297,025 | ) | (372,828 | ) | ||||||
| Service Class | (2,719,064 | ) | (5,912,802 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (662,773 | ) | |||||||
| Class B | – | (151,799 | ) | |||||||
| Class C | – | (912,449 | ) | |||||||
| Class R2 (a) | – | (868,064 | ) | |||||||
| Institutional Class | – | (310,499 | ) | |||||||
| Service Class | – | (6,366,470 | ) | |||||||
| Change in net assets from shareholder distributions | (4,218,107 | ) | (17,840,641 | ) | ||||||
| Change in net assets from capital transactions | 23,476,892 | 47,511,218 | ||||||||
| Change in net assets | 46,005,706 | 73,375,901 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 410,262,842 | 336,886,941 | ||||||||
| End of period | $ | 456,268,548 | $ | 410,262,842 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 1,067,457 | $ | 505,732 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 7,769,390 | $ | 7,487,896 | ||||||
| Dividends reinvested | 237,717 | 915,945 | ||||||||
| Cost of shares redeemed | (5,201,827 | ) | (5,635,420 | ) | ||||||
| Total Class A | 2,805,280 | 2,768,421 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 220,508 | 1,193,885 | ||||||||
| Dividends reinvested | 28,224 | 156,138 | ||||||||
| Cost of shares redeemed | (837,406 | ) | (1,560,356 | ) | ||||||
| Total Class B | (588,674 | ) | (210,333 | ) | ||||||
| (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 2010
| Nationwide Investor Destinations | ||||||||||
| Moderately Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 4,709,910 | $ | 11,785,277 | ||||||
| Dividends reinvested | 117,251 | 523,537 | ||||||||
| Cost of shares redeemed | (3,668,418 | ) | (8,474,753 | ) | ||||||
| Total Class C | 1,158,743 | 3,834,061 | ||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 9,423,300 | 23,545,694 | ||||||||
| Dividends reinvested | 518,010 | 1,687,456 | ||||||||
| Cost of shares redeemed | (3,187,098 | ) | (3,365,364 | ) | ||||||
| Total Class R2 | 6,754,212 | 21,867,786 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 12,941,099 | 10,568,882 | ||||||||
| Dividends reinvested | 297,025 | 683,327 | ||||||||
| Cost of shares redeemed | (3,540,989 | ) | (4,213,315 | ) | ||||||
| Total Institutional Class | 9,697,135 | 7,038,894 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 26,645,898 | 46,111,422 | ||||||||
| Dividends reinvested | 2,719,064 | 12,279,272 | ||||||||
| Cost of shares redeemed | (25,714,766 | ) | (46,178,305 | ) | ||||||
| Total Service Class | 3,650,196 | 12,212,389 | ||||||||
| Change in net assets from capital transactions: | $ | 23,476,892 | $ | 47,511,218 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 816,923 | 872,861 | ||||||||
| Reinvested | 25,174 | 109,410 | ||||||||
| Redeemed | (550,040 | ) | (669,126 | ) | ||||||
| Total Class A Shares | 292,057 | 313,145 | ||||||||
Class B Shares | ||||||||||
| Issued | 22,998 | 140,659 | ||||||||
| Reinvested | 2,997 | 18,654 | ||||||||
| Redeemed | (88,045 | ) | (182,304 | ) | ||||||
| Total Class B Shares | (62,050 | ) | (22,991 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 499,161 | 1,388,850 | ||||||||
| Reinvested | 12,498 | 62,701 | ||||||||
| Redeemed | (387,118 | ) | (997,138 | ) | ||||||
| Total Class C Shares | 124,541 | 454,413 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 991,106 | 2,761,794 | ||||||||
| Reinvested | 54,836 | 200,483 | ||||||||
| Redeemed | (334,869 | ) | (386,836 | ) | ||||||
| Total Class R2 Shares | 711,073 | 2,575,441 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. The accompanying notes are an integral part of these financial statements. |
2010 Semiannual Report 57
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations | ||||||||||
| Moderately Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 1,349,183 | 1,193,000 | ||||||||
| Reinvested | 31,151 | 80,583 | ||||||||
| Redeemed | (367,683 | ) | (489,689 | ) | ||||||
| Total Institutional Class Shares | 1,012,651 | 783,894 | ||||||||
Service Class Shares | ||||||||||
| Issued | 2,788,125 | 5,380,790 | ||||||||
| Reinvested | 286,674 | 1,459,811 | ||||||||
| Redeemed | (2,700,888 | ) | (5,403,422 | ) | ||||||
| Total Service Class Shares | 373,911 | 1,437,179 | ||||||||
| Total change in shares: | 2,452,183 | 5,541,081 | ||||||||
The accompanying notes are an integral part of these financial statements.
58 Semiannual Report 2010
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, 2010 (Unaudited) (f) | $ | 9 | .21 | 0 | .12 | 0 | .48 | 0 | .60 | (0 | .10) | – | (0 | .10) | $ | 9 | .71 | 6 | .57% | $ | 31,812,226 | 0 | .50% | 2 | .45% | 0 | .50% | 6 | .83% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .64 | 0 | .21 | 0 | .82 | 1 | .03 | (0 | .22) | (0 | .24) | (0 | .46) | $ | 9 | .21 | 12 | .46% | $ | 27,499,985 | 0 | .52% | 2 | .47% | 0 | .52% | 22 | .80% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 11 | .00 | 0 | .30 | (2 | .08) | (1 | .78) | (0 | .32) | (0 | .26) | (0 | .58) | $ | 8 | .64 | (16 | .97%) | $ | 23,093,974 | 0 | .46% | 2 | .97% | 0 | .46% | 25 | .61% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 | $ | 10 | .64 | 0 | .32 | 0 | .65 | 0 | .97 | (0 | .35) | (0 | .26) | (0 | .61) | $ | 11 | .00 | 9 | .42% | $ | 29,097,449 | 0 | .46% | 3 | .06% | 0 | .46% | 12 | .07% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2006 | $ | 10 | .18 | 0 | .28 | 0 | .64 | 0 | .92 | (0 | .29) | (0 | .17) | (0 | .46) | $ | 10 | .64 | 9 | .24% | $ | 27,224,214 | 0 | .46% | 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% | |||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .21 | 0 | .08 | 0 | .49 | 0 | .57 | (0 | .07) | – | (0 | .07) | $ | 9 | .71 | 6 | .18% | $ | 5,582,021 | 1 | .19% | 1 | .75% | 1 | .19% | 6 | .83% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .64 | 0 | .15 | 0 | .82 | 0 | .97 | (0 | .16) | (0 | .24) | (0 | .40) | $ | 9 | .21 | 11 | .68% | $ | 5,867,608 | 1 | .22% | 1 | .80% | 1 | .22% | 22 | .80% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .18 | 0 | .08 | 0 | .48 | 0 | .56 | (0 | .07) | – | (0 | .07) | $ | 9 | .67 | 6 | .22% | $ | 41,582,497 | 1 | .19% | 1 | .71% | 1 | .19% | 6 | .83% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .61 | 0 | .15 | 0 | .82 | 0 | .97 | (0 | .16) | (0 | .24) | (0 | .40) | $ | 9 | .18 | 11 | .64% | $ | 38,316,174 | 1 | .22% | 1 | .79% | 1 | .22% | 22 | .80% | |||||||||||||||||||||||||||||||||||||||||
| 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 | .65 | 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% | |||||||||||||||||||||||||||||||||||||||||
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. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 59
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, 2010 (Unaudited) (f) | $ | 9 | .22 | 0 | .10 | 0 | .49 | 0 | .59 | (0 | .09) | – | (0 | .09) | $ | 9 | .72 | 6 | .38% | $ | 65,265,765 | 0 | .84% | 2 | .03% | 0 | .84% | 6 | .83% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .65 | 0 | .18 | 0 | .82 | 1 | .00 | (0 | .19) | (0 | .24) | (0 | .43) | $ | 9 | .22 | 12 | .09% | $ | 55,375,781 | 0 | .89% | 2 | .06% | 0 | .89% | 22 | .80% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .28 | 0 | .13 | 0 | .49 | 0 | .62 | (0 | .12) | – | (0 | .12) | $ | 9 | .78 | 6 | .68% | $ | 30,989,869 | 0 | .19% | 2 | .64% | 0 | .19% | 6 | .83% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .70 | 0 | .24 | 0 | .83 | 1 | .07 | (0 | .25) | (0 | .24) | (0 | .49) | $ | 9 | .28 | 12 | .83% | $ | 20,004,640 | 0 | .22% | 2 | .73% | 0 | .22% | 22 | .80% | |||||||||||||||||||||||||||||||||||||||||
| 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%(i) | 8 | .37% | ||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .25 | 0 | .11 | 0 | .49 | 0 | .60 | (0 | .10) | – | (0 | .10) | $ | 9 | .75 | 6 | .48% | $ | 281,036,170 | 0 | .59% | 2 | .30% | 0 | .59% | 6 | .83% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .68 | 0 | .21 | 0 | .81 | 1 | .02 | (0 | .21) | (0 | .24) | (0 | .45) | $ | 9 | .25 | 12 | .32% | $ | 263,198,654 | 0 | .64% | 2 | .38% | 0 | .64% | 22 | .80% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
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) | 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. |
| (i) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
60 Semiannual Report 2010
| 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, 2010, the Nationwide Investor Destinations Conservative Fund (Class A at NAV) returned 3.95% versus 3.93% for its composite benchmark, 20% Standard & Poor’s 500® (S&P 500) Index, 35% Barclays Capital (BARCAP) U.S. Aggregate Bond Index and 45% Citigroup 3-Month Treasury Bill (T-Bill) Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mixed-Asset Target Allocation Conservative Funds (consisting of 467 funds as of April 30, 2010) was 7.24% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The most positive relative returns for the Fund came from the Nationwide S&P 500 Index Fund and the Nationwide Mid Cap Market Index Fund (with target allocations of 10% and 5%, respectively), which gained 15.71% and 25.56%, respectively. U.S. equity markets generally benefited from improving company fundamentals, investors’ increasing appetite for risk and positive equity fund flows. All 10 sectors within the S&P 500 Index recorded positive returns during the reporting period. The consumer discretionary sector, with 31.0%, was the strongest sector in terms of performance, and the telecommunications services sector, with 6.5%, was the weakest sector in terms of performance during the reporting period. Similarly, all 10 sectors within the Standard & Poor’s MidCap 400 (S&P 400) Index posted positive returns during the reporting period. The materials sector led with 36.9%, and the telecommunications services sector, with 16.4%, brought up the rear of these returns during the reporting period.
What areas of investment detracted from Fund performance?
None of the underlying investments posted negative performance during the reporting period. The Fund’s investment in the Nationwide Money Market Fund (with a target allocation of 10%) returned 0.00% and provided no meaningful contribution to overall Fund performance. As long as the Federal Reserve Board continues to adhere to its near-zero interest-rate policy, yields on money funds (which hold only high-quality, ultra-short-term investments) will continue to be challenged to achieve any sort of return for investors.
What is your outlook for the near term?
Global equity markets moved generally higher throughout the reporting period, except for a significant market correction that occurred from midJanuary to mid-February, notwithstanding uneven economic data and emerging concerns about the creditworthiness of European sovereign debt. Most U.S. equity markets experienced gains during the reporting period; the S&P 500 and other major U.S. equity indexes posted positive returns in five of the six months covered by this report. A distinct chill lingers in overseas markets, however, given the financial difficulties Greece is facing and the concern that similar problems may beset other European Union countries. It remains to be seen whether or not these problems can be contained within the individual countries or if these problems will adversely affect the rest of Europe and potentially harm global markets.
2010 Semiannual Report 61
Nationwide Investor Destinations Conservative Fund (Continued)
The table below lists the target allocation for each of the Fund’s underlying investments as of April 30, 2010, 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 Periods Ended April 30, 2010
Performance of Underlying Investments for the Periods Ended April 30, 2010
| 10 Years | ||||||||||||||||||||||||||||||||
| Underlying | Target | or Since | Inception | |||||||||||||||||||||||||||||
| Asset Classes | Investments | Allocation* | 6 Months | 1 Year | 5 Years | Inception | Date | |||||||||||||||||||||||||
| Intermediate-Term Bonds | Nationwide Bond Index Fund | 40 | % | 2.25 | % | 7.69 | % | 5.04 | % | 6.13 | % | 12/29/99 | ||||||||||||||||||||
| Short-Term Bonds | Nationwide Enhanced Income Fund | 15 | % | 0.69 | % | 1.85 | % | 3.56 | % | 3.00 | % | 12/29/99 | ||||||||||||||||||||
| Short-Term Bonds | Nationwide Contract | 15 | % | 1.82 | % | 3.74 | % | 3.79 | % | 4.17 | % | 3/30/00 | ||||||||||||||||||||
| Money Market Investments | Nationwide Money Market Fund | 10 | % | 0.00 | % | 0.01 | % | 2.75 | % | 2.06 | % | 12/13/01 | ||||||||||||||||||||
| Large-Cap Stocks | Nationwide S&P 500 Index Fund | 10 | % | 15.71 | % | 38.75 | % | 2.43 | % | -0.39 | % | 12/29/99 | ||||||||||||||||||||
| International Stocks | Nationwide International Index Fund | 5 | % | 2.93 | % | 34.44 | % | 3.64 | % | 1.17 | % | 12/29/99 | ||||||||||||||||||||
| Mid-Cap Stocks | Nationwide Mid Cap Market Index Fund | 5 | % | 25.56 | % | 48.47 | % | 6.59 | % | 6.80 | % | 12/29/01 | ||||||||||||||||||||
| * | Fund target allocations are as of April 30, 2010 |
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Performance shown in the table above is for Institutional Class shares for each underlying investment except the Nationwide Contract. Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. 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.
Portfolio Manager:
Thomas R. Hickey Jr., Nationwide Fund Advisors
Thomas R. Hickey Jr., Nationwide Fund Advisors
62 Semiannual Report 2010
| Fund Performance | Nationwide Investor Destinations Conservative Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 3.95% | 11.06% | 4.00% | 3.77% | |||||||||||||
| w/SC2 | -2.06% | 4.72% | 2.77% | 3.15% | ||||||||||||||
| Class B | w/o SC1 | 3.54% | 10.22% | 3.27% | 3.05% | |||||||||||||
| w/SC3 | -1.46% | 5.22% | 2.92% | 3.05% | ||||||||||||||
Class C4 | w/o SC1 | 3.49% | 10.23% | 3.27% | 3.04% | |||||||||||||
| w/SC5 | 2.49% | 9.23% | 3.27% | 3.04% | ||||||||||||||
Class R26,7,8 | 3.78% | 10.64% | 3.73% | 3.38% | ||||||||||||||
Institutional Class6,9 | 3.99% | 11.36% | 4.34% | 3.94% | ||||||||||||||
Service Class6 | 3.78% | 10.78% | 3.89% | 3.69% | ||||||||||||||
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 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. | |
| 5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. | |
| 6 | Not subject to any sales charges. | |
| 7 | 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. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 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. |
Expense Ratios
| Gross | Net | |||||
| Expense | Expense | |||||
| Ratio* | Ratio* | |||||
| Class A | 0.90% | 0.87% | ||||
| Class B | 1.60% | 1.57% | ||||
| Class C | 1.60% | 1.57% | ||||
| Class R2 | 1.23% | 1.20% | ||||
| Institutional Class | 0.60% | 0.57% | ||||
| Service Class | 1.00% | 0.97% | ||||
| * | Current effective prospectus dated May 6, 2010. Expenses also include indirect underlying fund expenses. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 63
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Investor Destinations Conservative Fund | 11/01/09 | 4/30/10 | 11/01/09 - 04/30/10a,b | 11/01/09 - 04/30/10a,b | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,039.50 | 2.58 | 0.51 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,022.27 | 2.56 | 0.51 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,035.40 | 6.11 | 1.21 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.79 | 6.06 | 1.21 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,034.90 | 6.10 | 1.21 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,018.79 | 6.06 | 1.21 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,037.80 | 4.35 | 0.86 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,020.53 | 4.31 | 0.86 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,039.90 | 1.06 | 0.21 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,023.75 | 1.05 | 0.21 | |||||||||||||||
| Service Class Shares | Actual | 1,000.00 | 1,037.80 | 3.08 | 0.61 | |||||||||||||||
| Hypothetical | c | 1,000.00 | 1,021.77 | 3.06 | 0.61 | |||||||||||||||
| 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. |
64 Semiannual Report 2010
| Portfolio Summary | Nationwide Investor Destinations Conservative Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Fixed Income Funds | 56 | .4% | ||
| Equity Funds | 20 | .8% | ||
| Fixed Contract | 16 | .7% | ||
| Money Market Fund | 6 | .0% | ||
| Other assets in excess of liabilities | 0 | .1% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Nationwide Bond Index Fund, Institutional Class | 39 | .9% | ||
| Nationwide Fixed Contract | 16 | .7% | ||
| Nationwide Enhanced Income Fund, Institutional Class | 16 | .6% | ||
| Nationwide S&P 500 Index Fund, Institutional Class | 10 | .4% | ||
| Nationwide Money Market Fund, Institutional Class | 6 | .0% | ||
| Nationwide Mid Cap Market Index Fund, Institutional Class | 5 | .5% | ||
| Nationwide International Index Fund, Institutional Class | 4 | .9% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 65
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Investor Destinations Conservative Fund
| Mutual Funds 83.2% | ||||||||
| Shares | Market Value | |||||||
Equity Funds 20.8% | ||||||||
| Nationwide International Index Fund, Institutional Class (a) | 2,237,437 | $ | 15,617,310 | |||||
| Nationwide Mid Cap Market Index Fund, Institutional Class (a) | 1,295,846 | 17,675,340 | ||||||
| Nationwide S&P 500 Index Fund, Institutional Class (a) | 3,351,605 | 33,449,019 | ||||||
Total Equity Funds (cost $58,726,716) | 66,741,669 | |||||||
Fixed Income Funds 56.4% | ||||||||
| Nationwide Bond Index Fund, Institutional Class (a) | 11,454,151 | 128,171,953 | ||||||
| Nationwide Enhanced Income Fund, Institutional Class (a) | 5,858,124 | 53,308,926 | ||||||
Total Fixed Income Funds (cost $177,790,228) | 181,480,879 | |||||||
Money Market Fund 6.0% | ||||||||
| Nationwide Money Market Fund, Institutional Class, 0.00% (a)(b) | 19,294,138 | 19,294,138 | ||||||
Total Money Market Fund (cost $19,294,138) | 19,294,138 | |||||||
Total Mutual Funds (cost $255,811,082) | 267,516,686 | |||||||
| Fixed Contract 16.7% | ||||||||
| Principal Amount | Market Value | |||||||
| Nationwide Fixed Contract, 3.60% (a)(c) | $ | 53,721,780 | $ | 53,721,780 | ||||
Total Fixed Contract (cost $53,721,780) | 53,721,780 | |||||||
Total Investments (cost $309,532,862) (d) — 99.9% | 321,238,466 | |||||||
Other assets in excess of liabilities — 0.1% | 265,295 | |||||||
NET ASSETS — 100.0% | $ | 321,503,761 | ||||||
| (a) | Investment in affiliate. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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.
66 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Investor Destinations | |||||
| Conservative Fund | |||||
Assets: | |||||
| Investments in affiliates, at value (cost $309,532,862) | $ | 321,238,466 | |||
| Interest and dividends receivable | 441,392 | ||||
| Receivable for capital shares issued | 544,886 | ||||
| Prepaid expenses and other assets | 51,460 | ||||
| Total Assets | 322,276,204 | ||||
Liabilities: | |||||
| Payable for investments purchased | 26,510 | ||||
| Payable for capital shares redeemed | 513,680 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 34,134 | ||||
| Distribution fees | 93,477 | ||||
| Administrative servicing fees | 49,413 | ||||
| Accounting and transfer agent fees | 19,677 | ||||
| Trustee fees | 4,157 | ||||
| Custodian fees | 2,071 | ||||
| Compliance program costs (Note 3) | 2,523 | ||||
| Professional fees | 18,678 | ||||
| Printing fees | 7,272 | ||||
| Other | 851 | ||||
| Total Liabilities | 772,443 | ||||
Net Assets | $ | 321,503,761 | |||
Represented by: | |||||
| Capital | $ | 317,825,095 | |||
| Accumulated undistributed net investment income | 1,063,797 | ||||
| Accumulated net realized losses from investment transactions | (9,090,735 | ) | |||
| Net unrealized appreciation/(depreciation) from investments in affiliates | 11,705,604 | ||||
Net Assets | $ | 321,503,761 | |||
Net Assets: | |||||
| Class A Shares | $ | 17,835,148 | |||
| Class B Shares | 2,431,314 | ||||
| Class C Shares | 33,342,230 | ||||
| Class R2 Shares | 45,519,683 | ||||
| Institutional Class Shares | 18,501,125 | ||||
| Service Class Shares | 203,874,261 | ||||
| Total | $ | 321,503,761 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,777,267 | ||||
| Class B Shares | 241,611 | ||||
| Class C Shares | 3,333,872 | ||||
| Class R2 Shares | 4,548,067 | ||||
| Institutional Class Shares | 1,836,738 | ||||
| Service Class Shares | 20,279,334 | ||||
| Total | 32,016,889 | ||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 67
Statement of Assets and Liabilities (Continued)
| 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 | $ | 10.04 | |||
| Class B Shares (a) | $ | 10.06 | |||
| Class C Shares (b) | $ | 10.00 | |||
| Class R2 Shares | $ | 10.01 | |||
| Institutional Class Shares | $ | 10.07 | |||
| Service Class Shares | $ | 10.05 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.65 | |||
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.
68 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Investor Destinations Conservative Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 8 | |||
| Interest income from affiliates | 916,583 | ||||
| Dividend income from affiliates | 3,880,624 | ||||
| Total Income | 4,797,215 | ||||
EXPENSES: | |||||
| Investment advisory fees | 197,892 | ||||
| Distribution fees Class A | 20,482 | ||||
| Distribution fees Class B | 13,132 | ||||
| Distribution fees Class C | 161,295 | ||||
| Distribution fees Class R2 | 104,850 | ||||
| Distribution fees Service Class | 247,047 | ||||
| Administrative servicing fees Class A | 4,096 | ||||
| Administrative servicing fees Class R2 | 31,455 | ||||
| Administrative servicing fees Service Class | 150,966 | ||||
| Registration and filing fees | 28,393 | ||||
| Professional fees | 15,442 | ||||
| Printing fees | 8,087 | ||||
| Trustee fees | 6,616 | ||||
| Custodian fees | 6,672 | ||||
| Accounting and transfer agent fees | 41,689 | ||||
| Compliance program costs (Note 3) | 1,513 | ||||
| Other | 7,871 | ||||
| Total expenses before earnings credit | 1,047,498 | ||||
| Earnings credit (Note 5) | (118 | ) | |||
| Net Expenses | 1,047,380 | ||||
NET INVESTMENT INCOME | 3,749,835 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions with affiliates | (1,136,076 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 8,807,001 | ||||
| Net realized/unrealized gains from affiliated investments | 7,670,925 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 11,420,760 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 69
Statements of Changes in Net Assets
| Nationwide Investor Destinations Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 3,749,835 | $ | 6,148,434 | ||||||
| Net realized losses from investment transactions with affiliates | (1,136,076 | ) | (6,261,305 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments in affiliates | 8,807,001 | 25,296,620 | ||||||||
| Change in net assets resulting from operations | 11,420,760 | 25,183,749 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (192,637 | ) | (362,648 | ) | ||||||
| Class B | (20,520 | ) | (55,729 | ) | ||||||
| Class C | (257,126 | ) | (504,588 | ) | ||||||
| Class R2 (a) | (397,712 | ) | (677,490 | ) | ||||||
| Institutional Class | (172,714 | ) | (197,909 | ) | ||||||
| Service Class | (2,153,794 | ) | (4,539,761 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (180,146 | ) | |||||||
| Class B | – | (45,532 | ) | |||||||
| Class C | – | (341,251 | ) | |||||||
| Class R2 (a) | – | (335,130 | ) | |||||||
| Institutional Class | – | (85,686 | ) | |||||||
| Service Class | – | (2,516,657 | ) | |||||||
| Change in net assets from shareholder distributions | (3,194,503 | ) | (9,842,527 | ) | ||||||
| Change in net assets from capital transactions | 17,839,170 | 40,104,191 | ||||||||
| Change in net assets | 26,065,427 | 55,445,413 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 295,438,334 | 239,992,921 | ||||||||
| End of period | $ | 321,503,761 | $ | 295,438,334 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 1,063,797 | $ | 508,465 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 8,552,627 | $ | 9,082,291 | ||||||
| Dividends reinvested | 120,557 | 285,871 | ||||||||
| Cost of shares redeemed | (6,621,527 | ) | (6,574,047 | ) | ||||||
| Total Class A | 2,051,657 | 2,794,115 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 9,881 | 404,295 | ||||||||
| Dividends reinvested | 12,530 | 56,228 | ||||||||
| Cost of shares redeemed | (484,575 | ) | (1,056,742 | ) | ||||||
| Total Class B | (462,164 | ) | (596,219 | ) | ||||||
| (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 2010
| Nationwide Investor Destinations Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | $ | 5,988,935 | $ | 14,934,738 | ||||||
| Dividends reinvested | 99,533 | 266,444 | ||||||||
| Cost of shares redeemed | (4,882,318 | ) | (9,382,610 | ) | ||||||
| Total Class C | 1,206,150 | 5,818,572 | ||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 9,037,618 | 22,246,940 | ||||||||
| Dividends reinvested | 364,595 | 955,921 | ||||||||
| Cost of shares redeemed | (3,333,176 | ) | (7,047,849 | ) | ||||||
| Total Class R2 | 6,069,037 | 16,155,012 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 8,936,985 | 6,508,251 | ||||||||
| Dividends reinvested | 172,714 | 283,595 | ||||||||
| Cost of shares redeemed | (1,179,847 | ) | (2,703,504 | ) | ||||||
| Total Institutional Class | 7,929,852 | 4,088,342 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 22,360,129 | 46,058,085 | ||||||||
| Dividends reinvested | 2,153,782 | 7,056,438 | ||||||||
| Cost of shares redeemed | (23,469,273 | ) | (41,270,154 | ) | ||||||
| Total Service Class | 1,044,638 | 11,844,369 | ||||||||
| Change in net assets from capital transactions: | $ | 17,839,170 | $ | 40,104,191 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 864,248 | 977,793 | ||||||||
| Reinvested | 12,224 | 30,881 | ||||||||
| Redeemed | (669,687 | ) | (700,307 | ) | ||||||
| Total Class A Shares | 206,785 | 308,367 | ||||||||
Class B Shares | ||||||||||
| Issued | 1,000 | 44,661 | ||||||||
| Reinvested | 1,269 | 6,074 | ||||||||
| Redeemed | (48,718 | ) | (114,440 | ) | ||||||
| Total Class B Shares | (46,449 | ) | (63,705 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 606,292 | 1,610,249 | ||||||||
| Reinvested | 10,138 | 28,888 | ||||||||
| Redeemed | (493,685 | ) | (1,009,380 | ) | ||||||
| Total Class C Shares | 122,745 | 629,757 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 915,677 | 2,384,922 | ||||||||
| Reinvested | 37,048 | 103,341 | ||||||||
| Redeemed | (337,160 | ) | (746,227 | ) | ||||||
| Total Class R2 Shares | 615,565 | 1,742,036 | ||||||||
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. The accompanying notes are an integral part of these financial statements. |
2010 Semiannual Report 71
Statements of Changes in Net Assets (Continued)
| Nationwide Investor Destinations Conservative Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 895,803 | 683,154 | ||||||||
| Reinvested | 17,427 | 30,452 | ||||||||
| Redeemed | (118,277 | ) | (286,160 | ) | ||||||
| Total Institutional Class Shares | 794,953 | 427,446 | ||||||||
Service Class Shares | ||||||||||
| Issued | 2,252,308 | 4,926,471 | ||||||||
| Reinvested | 217,906 | 761,641 | ||||||||
| Redeemed | (2,364,236 | ) | (4,420,624 | ) | ||||||
| Total Service Class Shares | 105,978 | 1,267,488 | ||||||||
| Total change in shares: | 1,799,577 | 4,311,389 | ||||||||
| (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 2010
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, 2010 (Unaudited) (f) | $ | 9 | .77 | 0 | .13 | 0 | .25 | 0 | .38 | (0 | .11) | – | (0 | .11) | $ | 10 | .04 | 3 | .95% | $ | 17,835,148 | 0 | .51% | 2 | .65% | 0 | .51% | 9 | .41% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .26 | 0 | .23 | 0 | .65 | 0 | .88 | (0 | .24) | (0 | .13) | (0 | .37) | $ | 9 | .77 | 9 | .84% | $ | 15,347,604 | 0 | .55% | 2 | .50% | 0 | .55% | 23 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .79 | 0 | .10 | 0 | .25 | 0 | .35 | (0 | .08) | – | (0 | .08) | $ | 10 | .06 | 3 | .54% | $ | 2,431,314 | 1 | .21% | 1 | .98% | 1 | .21% | 9 | .41% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .27 | 0 | .17 | 0 | .65 | 0 | .82 | (0 | .17) | (0 | .13) | (0 | .30) | $ | 9 | .79 | 9 | .14% | $ | 2,821,364 | 1 | .23% | 1 | .84% | 1 | .23% | 23 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .74 | 0 | .10 | 0 | .24 | 0 | .34 | (0 | .08) | – | (0 | .08) | $ | 10 | .00 | 3 | .49% | $ | 33,342,230 | 1 | .21% | 1 | .95% | 1 | .21% | 9 | .41% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .23 | 0 | .17 | 0 | .65 | 0 | .82 | (0 | .18) | (0 | .13) | (0 | .31) | $ | 9 | .74 | 9 | .13% | $ | 31,268,010 | 1 | .24% | 1 | .81% | 1 | .24% | 23 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 9 | .75 | 0 | .11 | 0 | .25 | 0 | .36 | (0 | .10) | – | (0 | .10) | $ | 10 | .01 | 3 | .78% | $ | 45,519,683 | 0 | .86% | 2 | .26% | 0 | .86% | 9 | .41% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .24 | 0 | .20 | 0 | .66 | 0 | .86 | (0 | .22) | (0 | .13) | (0 | .35) | $ | 9 | .75 | 9 | .44% | $ | 38,324,442 | 0 | .87% | 2 | .14% | 0 | .87% | 23 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 73
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, 2010 (Unaudited) (f) | $ | 9 | .81 | 0 | .14 | 0 | .25 | 0 | .39 | (0 | .13) | – | (0 | .13) | $ | 10 | .07 | 3 | .99% | $ | 18,501,125 | 0 | .21% | 2 | .88% | 0 | .21% | 9 | .41% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .29 | 0 | .26 | 0 | .66 | 0 | .92 | (0 | .27) | (0 | .13) | (0 | .40) | $ | 9 | .81 | 10 | .24% | $ | 10,218,039 | 0 | .24% | 2 | .78% | 0 | .24% | 23 | .94% | |||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 9 | .79 | 0 | .13 | 0 | .24 | 0 | .37 | (0 | .11) | – | (0 | .11) | $ | 10 | .05 | 3 | .78% | $ | 203,874,261 | 0 | .61% | 2 | .55% | 0 | .61% | 9 | .41% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .27 | 0 | .23 | 0 | .65 | 0 | .88 | (0 | .23) | (0 | .13) | (0 | .36) | $ | 9 | .79 | 9 | .85% | $ | 197,458,875 | 0 | .65% | 2 | .41% | 0 | .65% | 23 | .94% | |||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 10 | .58 | 0 | .32 | (1 | .17) | (0 | .85) | (0 | .33) | (0 | .13) | (0 | .46) | $ | 9 | .27 | (8 | .31%) | $ | 175,298,293 | 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% | |||||||||||||||||||||||||||||||||||||||||
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) | 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 an integral part of these financial statements.
74 Semiannual Report 2010
Notes to Financial Statements
April 30, 2010 (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 was originally created under the laws of Ohio in 1997 and was redomesticated as a Delaware statutory trust on February 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust has authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2010, the Trust operates thirty-one (31) 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 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 (“Nationwide Fixed 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 Fund management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. The Funds utilize various methods to measure the fair value of its investments on a recurring basis. All investments in securities are recorded at their estimated fair value as described below in the accompanying notes. 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 value (“NAV”) as reported by the Underlying Funds.
The following are the valuation policies of the affiliated 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 sales price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at 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. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into
2010 Semiannual Report 75
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
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 securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 combination of these and other methods. Fair value determinations may also take into account significant events that occur before Valuation Time but after the close of the principal market on which such securities trade that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
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 is a minimum of 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, 2010, the rate ranged from 3.60% to 3.75%. 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 Nationwide Fixed 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 Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”), “Fair Value Measurements and Disclosures” (ASC 820). This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 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 ASC 820 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) |
76 Semiannual Report 2010
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2010:
Investor Destinations Aggressive*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Mutual Funds | $ | 991,237,391 | $ | — | $ | — | $ | 991,237,391 | ||||||||||
Total | $ | 991,237,391 | $ | — | $ | — | $ | 991,237,391 | ||||||||||
Investor Destinations Moderately Aggressive*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Fixed Contract | $ | — | $ | 38,985,613 | $ | — | $ | 38,985,613 | ||||||||||
| Mutual Funds | 1,605,060,683 | — | — | 1,605,060,683 | ||||||||||||||
Total | $ | 1,605,060,683 | $ | 38,985,613 | $ | — | $ | 1,644,046,296 | ||||||||||
Investor Destinations Moderate*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Fixed Contract | $ | — | $ | 80,582,955 | $ | — | $ | 80,582,955 | ||||||||||
| Mutual Funds | 1,328,912,636 | — | — | 1,328,912,636 | ||||||||||||||
Total | $ | 1,328,912,636 | $ | 80,582,955 | $ | — | $ | 1,409,495,591 | ||||||||||
Investor Destinations Moderately Conservative*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Fixed Contract | $ | — | $ | 46,182,450 | $ | — | $ | 46,182,450 | ||||||||||
| Mutual Funds | 409,891,602 | — | — | 409,891,602 | ||||||||||||||
Total | $ | 409,891,602 | $ | 46,182,450 | $ | — | $ | 456,074,052 | ||||||||||
Investor Destinations Conservative*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Fixed Contract | $ | — | $ | 53,721,780 | $ | — | $ | 53,721,780 | ||||||||||
| Mutual Funds | 267,516,686 | — | — | 267,516,686 | ||||||||||||||
Total | $ | 267,516,686 | $ | 53,721,780 | $ | — | $ | 321,238,466 | ||||||||||
| Amounts designated as “—” are zero or have been rounded to zero. |
| * | See Statement of Investments for identification of securities by type and industry classification. |
2010 Semiannual Report 77
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
| (b) | 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.
| (c) | 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 a return of capital distribution.
| (d) | Federal Income Taxes |
It is the policy of each Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the U.S. 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 Funds are subject to the provisions of ASC 740, “Income Taxes”. In July 2006, the FASB amended ASC 740-10. ASC 740-10 provides guidance regarding how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740-10 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 Fund could 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 benefits to recognize in the financial statements. Differences 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 2006 to 2009 remain subject to examination by the Internal Revenue Service.
Fund management has evaluated the implications of ASC 740-10 and has concluded that there is no impact to the Funds’ current financial statements. ASC 740-10 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.
| (e) | 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 proportionally among various or all series of the Trust. For each Fund, income, Fund expenses, and realized and unrealized gains or losses are allocated to each class of shares of the Fund
78 Semiannual Report 2010
based on the value of the shares of that class outstanding relative to the total value of the outstanding shares of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) 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. Each Fund pays NFA an investment advisory fee of 0.13% based on each Fund’s average daily net assets.
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Funds’ operating expenses (excluding Rule 12b-1 fees, administrative services fees, and certain other expenses) from exceeding the amounts listed in the table below until at least February 28, 2011:
| Amount | ||||||||||
| Fund | Classes | (Annual Rate) | ||||||||
| 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, Class C, 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. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire within three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. As of April 30, 2010, the Funds had no cumulative potential reimbursements.
Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly-owned subsidiary of NFS), provides various administrative and accounting services for the Funds and serves as Transfer and Dividend Disbursing Agent for the Funds. The Funds did not pay a fee for these services.
In addition, the Funds also pay out-of-pocket expenses reasonably incurred by NFM in providing services to the Funds, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees (“Networking Fees”) paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders (“beneficial accounts”). Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided, the Networking Fees range from $6 to $20 per beneficial account per year.
2010 Semiannual Report 79
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
See “Subsequent Events” (Note 11) below for information on fund administration and transfer agency arrangements for the Funds after April 30, 2010.
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Funds. The Funds did not pay any additional fee for these services.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may 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 inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class A, Class R2, and Service Class shares of each Fund.
For the six months ended April 30, 2010, NFS received the following amounts in Administrative Services fees from each Fund:
| Fund | Amount | |||||||
| Investor Destinations Aggressive | $ | 552,043 | ||||||
| Investor Destinations Moderately Aggressive | 894,641 | |||||||
| Investor Destinations Moderate | 719,962 | |||||||
| Investor Destinations Moderately Conservative | 242,812 | |||||||
| Investor Destinations Conservative | 175,540 | |||||||
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, 2010, the Funds’ portion of such costs amounted to $22,472.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under 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 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 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. A CDSC will be imposed on redemptions of Class B shares made within six years of purchase. Class C shares have a CDSC of 1% imposed on redemptions made within one year of purchase. For the six months ended April 30, 2010, NFD received commissions of $594,928 from front-end sales charges of Class A shares and from CDSCs from Class B and Class C shares of the Funds, of which $43,133 was re-allowed to affiliated broker-dealers of the Funds.
80 Semiannual Report 2010
4. Investments in Affiliated Issuers
Each of the Funds invests in Underlying Funds. A summary of the Funds’ transactions in the shares of Underlying Funds during the six months ended April 30, 2010 were as follows:
| Investor Destinations Aggressive | ||||||||||||||||||||||||||
| Market Value | Purchases | Sales | Dividend | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide International Index Fund | $ | 262,007,263 | $ | 20,814,833 | $ | 7,632,535 | $ | 3,449,693 | $ | (1,135,598 | ) | $ | 279,243,694 | |||||||||||||
| Nationwide Mid Cap Market Index Fund | 127,705,046 | 4,845,595 | 6,016,268 | 713,025 | (773,025 | ) | 158,197,017 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 351,818,033 | 14,271,553 | 19,076,714 | 3,251,366 | (624,084 | ) | 398,529,258 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 82,472,304 | 4,905,174 | 2,544,179 | 550,127 | (694,526 | ) | 107,593,941 | |||||||||||||||||||
| Nationwide Bond Index Fund | 46,257,501 | 2,678,096 | 1,272,089 | 1,037,304 | 44,551 | 47,673,481 | ||||||||||||||||||||
| Investor Destinations Moderately Aggressive | ||||||||||||||||||||||||||
| Dividend/ | ||||||||||||||||||||||||||
| Market Value | Purchases | Sales | Interest | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide International Index Fund | $ | 363,840,305 | $ | 29,087,664 | $ | 9,498,848 | $ | 4,785,143 | $ | (1,874,160 | ) | $ | 389,010,324 | |||||||||||||
| Nationwide Mid Cap Market Index Fund | 213,020,735 | 8,269,455 | 9,599,309 | 1,187,943 | (1,367,797 | ) | 264,502,631 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 513,454,653 | 21,266,577 | 26,998,388 | 4,743,049 | (882,613 | ) | 582,855,727 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 68,803,666 | 3,818,942 | 1,899,770 | 458,438 | (467,864 | ) | 89,673,256 | |||||||||||||||||||
| Nationwide Bond Index Fund | 230,563,934 | 14,277,184 | 5,699,309 | 5,181,733 | 255,717 | 239,215,777 | ||||||||||||||||||||
| Nationwide Enhanced Income Fund | 45,900,649 | 1,696,869 | 7,500,000 | 572,933 | 6,951 | 39,802,968 | ||||||||||||||||||||
| Nationwide Fixed Contract | 30,100,081 | 10,080,252 | 1,841,160 | 646,440 | — | 38,985,613 | ||||||||||||||||||||
| Investor Destinations Moderate | ||||||||||||||||||||||||||
| Dividend/ | ||||||||||||||||||||||||||
| Market Value | Purchases | Sales | Interest | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide International Index Fund | $ | 185,466,810 | $ | 18,505,100 | $ | 5,368,531 | $ | 2,451,125 | $ | (1,138,020 | ) | $ | 201,407,465 | |||||||||||||
| Nationwide Mid Cap Market Index Fund | 121,147,180 | 6,848,266 | 6,079,021 | 678,949 | (1,329,570 | ) | 152,105,609 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 375,483,125 | 21,994,896 | 21,537,063 | 3,486,945 | (1,982,704 | ) | 431,109,037 | |||||||||||||||||||
| Nationwide Small Cap Index Fund | 58,712,422 | 4,278,223 | 1,789,511 | 393,564 | (494,312 | ) | 77,474,020 | |||||||||||||||||||
| Nationwide Bond Index Fund | 328,358,533 | 24,544,830 | 8,947,552 | 7,405,583 | 147,903 | 344,038,559 | ||||||||||||||||||||
| Nationwide Enhanced Income Fund | 78,272,620 | 18,940,510 | 894,755 | 1,148,776 | (1,347 | ) | 95,782,881 | |||||||||||||||||||
| Nationwide Money Market Fund | 38,747,491 | 1,542,329 | 13,294,755 | — | — | 26,995,065 | ||||||||||||||||||||
| Nationwide Fixed Contract | 77,475,726 | 5,184,659 | 3,499,694 | 1,422,264 | — | 80,582,955 | ||||||||||||||||||||
2010 Semiannual Report 81
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
| Investor Destinations Moderately Conservative | ||||||||||||||||||||||||||
| Dividend/ | ||||||||||||||||||||||||||
| Market Value | Purchases | Sales | Interest | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide International Index Fund | $ | 39,628,088 | $ | 5,477,923 | $ | 1,771,430 | $ | 526,429 | $ | (915,895 | ) | $ | 43,918,692 | |||||||||||||
| Nationwide Mid Cap Market Index Fund | 38,856,846 | 3,770,356 | 2,671,430 | 218,861 | (879,539 | ) | 49,693,422 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 80,430,860 | 7,853,774 | 6,142,861 | 750,785 | (827,948 | ) | 94,007,622 | |||||||||||||||||||
| Nationwide Bond Index Fund | 147,543,731 | 16,130,852 | 6,200,006 | 3,349,216 | 172,042 | 157,534,206 | ||||||||||||||||||||
| Nationwide Enhanced Income Fund | 41,753,477 | 6,469,457 | 1,328,573 | 583,527 | (10,390 | ) | 46,614,212 | |||||||||||||||||||
| Nationwide Money Market Fund | 24,988,400 | 2,663,621 | 9,528,573 | — | — | 18,123,448 | ||||||||||||||||||||
| Nationwide Fixed Contract | 37,373,952 | 9,763,621 | 1,724,207 | 769,084 | — | 46,182,450 | ||||||||||||||||||||
| Investor Destinations Conservative | ||||||||||||||||||||||||||
| Dividend/ | ||||||||||||||||||||||||||
| Market Value | Purchases | Sales | Interest | Realized | Market Value | |||||||||||||||||||||
| Underlying Fund | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide International Index Fund | $ | 13,751,804 | $ | 2,432,239 | $ | 770,812 | $ | 182,718 | $ | (352,240 | ) | $ | 15,617,310 | |||||||||||||
| Nationwide Mid Cap Market Index Fund | 13,842,033 | 1,527,479 | 1,170,812 | 77,958 | (373,966 | ) | 17,675,340 | |||||||||||||||||||
| Nationwide S&P 500 Index Fund | 28,678,231 | 3,166,921 | 2,641,623 | 267,879 | (762,614 | ) | 33,449,019 | |||||||||||||||||||
| Nationwide Bond Index Fund | 120,548,572 | 13,958,877 | 6,366,492 | 2,728,820 | 350,294 | 128,171,953 | ||||||||||||||||||||
| Nationwide Enhanced Income Fund | 41,611,106 | 14,296,533 | 2,312,434 | 623,249 | 2,450 | 53,308,926 | ||||||||||||||||||||
| Nationwide Money Market Fund | 29,636,719 | 2,899,042 | 13,241,623 | — | — | 19,294,138 | ||||||||||||||||||||
| Nationwide Fixed Contract | 47,573,746 | 7,543,885 | 2,312,434 | 916,583 | — | 53,721,780 | ||||||||||||||||||||
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.14% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by a Fund 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 the Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended April 30, 2010.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Funds and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. 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 those series of the Trust 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.
82 Semiannual Report 2010
6. Investment Transactions
For the six months ended April 30, 2010, purchases of and sales (excluding short-term securities) were as follows:
| Fund | Purchases | Sales | ||||||||||
| Investor Destinations Aggressive | $ | 47,515,251 | $ | 36,541,785 | ||||||||
| Investor Destinations Moderately Aggressive | 88,496,943 | 63,036,784 | ||||||||||
| Investor Destinations Moderate | 101,838,813 | 61,410,882 | ||||||||||
| Investor Destinations Moderately Conservative | 52,129,604 | 29,367,080 | ||||||||||
| Investor Destinations Conservative | 45,824,976 | 28,816,230 | ||||||||||
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 made against the Trust. Based on experience however, the Trust expects the risk of loss to be remote.
8. Other
As of April 30, 2010, 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.
| % of | Number of | |||||||||||
| Fund | Shares | Accounts | ||||||||||
| Investor Destinations Aggressive | 53.33 | % | 3 | |||||||||
| Investor Destinations Moderately Aggressive | 51.87 | 3 | ||||||||||
| Investor Destinations Moderate | 39.11 | 2 | ||||||||||
| Investor Destinations Moderately Conservative | 46.33 | 2 | ||||||||||
| Investor Destinations Conservative | 51.94 | 2 | ||||||||||
2010 Semiannual Report 83
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
9. Federal Tax Information
As of April 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund was as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation/ | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| Investor Destinations Aggressive | $ | 1,097,002,546 | $ | 1,739,059 | $ | (107,504,214 | ) | $ | (105,765,155 | ) | ||||||||
| Investor Destinations Moderately Aggressive | 1,756,994,507 | 10,315,554 | (123,263,765 | ) | (112,948,211 | ) | ||||||||||||
| Investor Destinations Moderate | 1,451,272,176 | 10,110,363 | (51,886,948 | ) | (41,776,585 | ) | ||||||||||||
| Investor Destinations Moderately Conservative | 457,774,415 | 2,193,967 | (3,894,330 | ) | (1,700,363 | ) | ||||||||||||
| Investor Destinations Conservative | 315,611,546 | 6,027,094 | (400,174 | ) | 5,626,920 | |||||||||||||
10. Subsequent Events
Effective May 1, 2010, the Trust entered into a new Joint Fund Administration and Transfer Agency Agreement with NFM. Under the Joint Administration Agreement, NFM is paid an annual fee for fund administration and transfer agency services based on the sum of the following: (i) the amount payable by NFM to its sub-administrator and sub-transfer agent; and (ii) a percentage of the combined average daily net assets of the Trust and Nationwide Variable Insurance Trust, a Delaware statutory trust and registered investment company that is affiliated with the Trust. In addition, the Trust pays out-of-pocket-expenses reasonably incurred by NFM in providing services to the Funds and the Trust, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders. Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided fees for these services may range from $6 to $30 per customer per year.
84 Semiannual Report 2010
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 of Trustees (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 January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 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 January 21, 2010 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, 2009) compared with performance groups and performance universes created by Lipper 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, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” 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, 2009, (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) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) 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 January 21, 2010 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 (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 transactions, including the standards and performance in seeking best execution, allocation of soft
2010 Semiannual Report 85
Supplemental Information (Continued)
(Unaudited)
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 January 21, 2010 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 prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
Nationwide Investor Destinations Aggressive Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by Nationwide Fund Advisors (“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 noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class A shares was in the fourth quintile of its Peer Universe and above 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 three-year period ended September 30, 2009, the Trustees noted that the Fund outperformed the benchmark and ranked in the second quintile of its Peer Universe. The Trustees also noted that, for the five-year period ended September 30, 2009, the Fund’s performance for Class A shares was in the second quintile of its Peer Universe and above the Fund’s benchmark.
The Trustees noted that the Fund’s total expenses were below the median of the Fund’s Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 Agreement 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. The Trustees noted that, for the one-, three-, and five-year periods ended September 30, 2009, the Fund outperformed 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. The Trustees also noted that, for each of the one- and three-year periods ended September 30, 2009, the Fund’s performance for Class A shares was in the third quintile of its Peer Group. The Trustees noted that, with respect to the five-year period ended September 30, 2009, the Fund’s performance for Class A shares placed it in the second quintile of its Peer Universe.
86 Semiannual Report 2010
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 were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 also 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 Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2009 was in the fourth quintile of its Peer Group, and outperformed 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. With respect to the three-year period ended September 30, 2009, the Trustees noted that the Fund’s performance was in the third quintile and equal to the median of its Peer Group. The Trustees also noted that the Fund’s performance for the five-year period ended September 30, 2009 was in the second quintile of its Peer Group. The Trustees noted that the Fund outperformed its benchmark during both the three- and five-year periods.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were in the first 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 underlying funds’ 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 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 also 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 Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one-, three-, and five-year periods ended September 30, 2009 was in the second quintile of its Peer Group, and above 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.
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 fifth 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 underlying funds’ 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
2010 Semiannual Report 87
Supplemental Information (Continued)
(Unaudited)
regarding total expenses. 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 also 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 Agreement 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. The Trustees noted that the Fund’s performance for Class A shares for the one-year period ended September 30, 2009 was in the fourth quintile of its Peer Group, but above 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 each of the three-and five-year periods ended September 30, 2009, the Trustees noted that the Fund’s performance was in the first quintile of its Peer Group, and that the Fund had outperformed its benchmark.
With respect to expenses, the Trustees noted that the Fund’s actual advisory fee for Class A shares was in the fourth quintile of its Peer Group, but that the Fund’s contractual advisory fee and total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ 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 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 also 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 Agreement with respect to the Fund should be renewed.
88 Semiannual Report 2010
Management Information
April 30, 2010 (Unaudited)
Officers of the Trust
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Charles E. Allen 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). | 86 | None | ||||||||||
| Paula H.J. Cholmondeley 1947 | Trustee since July 2000 | Ms. Cholmondeley focuses full time on corporate governance. She sits on public company boards and is also on the faculty of the National Association of Corporate Directors. She has served as Chief Executive Officer of Sorrel Group (management consulting company) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | 86 | 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 DeVore 1940 | Trustee since June 1990 | Retired. Dr. DeVore served as the interim President of Greensboro College from 2009 though April 2010. He served as President of Otterbein College from July 1984 through July 2009, and as President of Davis and Elkins College from 1982 through 1984. | 86 | None | ||||||||||
| Phyllis Kay Dryden 1947 | Trustee since December 2004 | Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | 86 | None | ||||||||||
2010 Semiannual Report 89
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Barbara L. Hennigar 1935 | Trustee since July 2000 | Ms. Hennigar was Executive Vice President of OppenheimerFunds (an asset management company) from October 1992 until June 2000; Chairman of Oppenheimer Funds Services from October 1999 until June 2000; and President and CEO from June 1992 until October 1999. She was previously Board Chair of a non-profit independent school, and is currently an independent trustee and endowment chair of St. Mary’s Academy, an independent school in Denver, CO. | 86 | None | ||||||||||
| Barbara I. Jacobs 1950 | Trustee since December 2004 | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 through 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association-College Retirement Equities Fund). | 86 | None | ||||||||||
| Douglas F. Kridler 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 community foundation that manages over 1,700 individual funds and investments) since February 2002. | 86 | None | ||||||||||
| David C. Wetmore 1948 | Trustee since 1995 and Chairman since February 2005 | Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology-oriented investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr. Wetmore served as the Chief Operating Officer, Chief Executive Officer, 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. | 86 | None | ||||||||||
| 1 | Length of time served includes time served with predecessor of the Trust. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years. | |
| 3 | Directorships held in (i) any other investment companies registered under the 1940 Act, (ii) 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 (iii) any company subject to the requirements of Section 15(d) of the Exchange Act. |
90 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Michael S. Spangler 1966 | President and Chief Executive Officer since June 2008 | Mr. Spangler is President and Chief Executive Officer of Nationwide Funds Group, which includes NFA3, Nationwide Fund Management LLC3 and Nationwide Fund Distributors LLC3, and is a Senior Vice President of NFS3. From May 2004-May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. | N/A | N/A | ||||||||||
| Stephen T. Grugeon 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. From February 2008-June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006. | N/A | N/A | ||||||||||
| Joseph Finelli 1957 | Treasurer since September 2007 | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3. | N/A | N/A | ||||||||||
| Dorothy Sanders 1955 | Chief Compliance Officer since October 2007 | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). | N/A | N/A | ||||||||||
| Eric E. Miller 1953 | Secretary since December 2002 | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments3. | N/A | N/A | ||||||||||
2010 Semiannual Report 91
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Doff Meyer 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)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. | N/A | N/A | ||||||||||
| Lynnett Berger 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 | ||||||||||
| 1 | Length of time served includes time served with the Trust’s predecessors. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Officer during the past five years. | |
| 3 | These positions are held with an affiliated person or principal underwriter of the Funds. | |
| 4 | 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 Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
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 subadvisers 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 Fund. The Fund’s proxy voting policies and procedures are 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.
92 Semiannual Report 2010
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P.O. Box 5354
Cincinnati, OH 45201-5354
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.
©2010 Nationwide Funds Group.
All rights reserved.
SAR-ID 6/10
Nationwide Mutual Funds
SemiannualReport
April 30, 2010 (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, 2010 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Index Funds | |||
| 5 | Nationwide Bond Index Fund | ||
| 39 | Nationwide International Index Fund | ||
| 70 | Nationwide Mid Cap Market Index Fund | ||
| 87 | Nationwide S&P 500 Index Fund | ||
| 107 | Nationwide Small Cap Index Fund | ||
| 142 | Notes to Financial Statements | ||
| 160 | Supplemental Information | ||
| 164 | Management Information | ||
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. The Trust makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
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Message to Shareholders
April 30, 2010
Dear Shareholder,
As I write this letter, we have enjoyed a relatively positive six months of growth in domestic and international equity markets. Since I last wrote to you on October 31, 2009, the Standard & Poor’s 500® (S&P 500) Index has gained 16 percent. In that letter, which accompanied your Funds’ annual report, I noted the signs of recovery but cautioned against unchecked excitement:
“Our opinion is that amid the recent good news, there is cause for caution... As a society, we haven’t displayed greater financial literacy and don’t appear to have learned any financial lessons well. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.”
Perhaps my tone was overly cautious, but in my opinion the dichotomy between the financial markets and our economic well-being still exists. Complicating matters further is the looming debt crisis that, as of this date, is threatening to expand in Europe and certainly has significant consequences. We are not isolated from any of these global issues.
Suffice it to say there is still a lot of instability in the market. At least a portion of the growth enjoyed during the past six months is a function of artificial stimulus provided by U.S. and international governments. We do not yet know if this recent growth is sustainable. The employment picture is also difficult to predict, with jobs growth lagging other economic indicators and many Americans unable to find the full-time employment they seek. While prognosticators are pointing to positive signs on the jobs front, it’s far too early to claim victory.
In times of great uncertainty I believe it is more important than ever to have clear investment goals that you pursue with a consistent strategy. Investment decisions should be based on a well-reasoned approach applied consistently over time and not on emotional reactions to extreme market events. All of this leads me to return to the core principles that have guided our firm:
| • | Always take a long-term approach to investing |
| • | Rely on asset allocation to build consistent diversification |
| • | Prudently and conscientiously look at risk |
We believe that adhering to these principles will help us—and you—to navigate these challenging times. As always, we appreciate your business. Thank you for entrusting your investments to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President & CEO
Nationwide Mutual Funds
President & CEO
Nationwide Mutual Funds
2010 Semiannual Report 1
Important Disclosures
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.
This report and the holdings provided are for informational purposes only, do not constitute advice, and are not intended and should not be relied upon 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 and without notice. 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.
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. There is no assurance that the investment objective of any Fund will be achieved.
Principal Risks
The Nationwide Bond Index Fund, Nationwide International Index Fund, Nationwide Mid Cap Market Index Fund, Nationwide S&P 500 Index Fund and Nationwide Small Cap Index Fund are subject to index fund risk. These Funds do not use defensive strategies or attempt to reduce their exposure to poorly performing securities. In addition, correlation between a Fund’s performance and an index’s performance may be negatively affected by the Fund’s expenses, index composition changes, and the timing of Fund share purchases and redemptions. These Funds may purchase securities in derivatives, which can be very volatile and carry high transaction costs.
The Nationwide Bond Index Fund may be subject to interest rate risk. Generally, when interest rates go up, the value of fixed-income securities goes down. The Fund may be subject to extension risk. When interest rates rise, certain bond obligations will be paid off by the issuer more slowly than anticipated. This can cause the market value of the security to fall because the market may view its interest rate as too low for a longer-term investment. The Fund may be subject to prepayment, call and redemption risks. Certain bonds will be paid off by the issuer more quickly than anticipated. If this happens, the Fund may be required to invest the proceeds in securities with lower yields. The Fund may be subject to liquidity risk, which is the risk that a security cannot be sold, or cannot be sold quickly, at an acceptable price. The Fund may be subject to credit risk. A bond issuer may be unable to pay the interest or principal when due. The Fund may purchase mortgage-backed securities, which are sensitive to fluctuations in interest rates. In addition, these securities are subject to prepayment, which may cause the Fund to reinvest in securities with lower interest rates.
The Nationwide International Index Fund invests in international securities, which 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 Mid Cap Market Index Fund invests in mid-sized company stocks, and the Nationwide Small Cap Index Fund invests in small-company stocks. These securities have higher risks than the stocks of larger, more established companies and have significant short-term price volatility.
Performance
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.
High double-digit returns are unusual and cannot be sustained.
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 Indexes
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
2 Semiannual Report 2010
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.
BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued corporate debt securities with a remaining term to final maturity less than 10 years.
BofA Merrill Lynch (BofAML) 10+ Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued corporate debt securities with a remaining term to final maturity greater than or equal to 10 years.
BofA Merrill Lynch (BofAML) Mortgage Master Index: An unmanaged index that tracks the performance of U.S. dollar-denominated 30-year, 15-year and balloon pass-through mortgage securities having at least $150 million outstanding per generic production year.
Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.
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 these Funds’ fees for certain periods since inception, without which returns would have been lower. In addition, these Funds assess a redemption/exchange fee of 2.00% on all shares that are sold within 7 calendar days of purchase.
About Nationwide Funds Group (NFG)
Commentary provided by NFG. Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
Based in King of Prussia, 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, LLC (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 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.
Distributor
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is not an affiliate of BlackRock Investment Management, LLC.
2010 Semiannual Report 3
Summary of Market Environment
The following is a commentary from Nationwide Funds Group on market conditions for the semiannual period ended April 30, 2010.
During the fourth quarter of 2009, corporate profits continued to show evidence of improvement, which in turn stoked investor confidence and drove the market rally. “Riskier” assets led the way, albeit at a slower pace than was seen during the second and third quarters of 2009. Positive news persisted throughout the first quarter of 2010, spurring markets to improve and prompting economists to declare that the United States had finally turned the corner and was exiting the “Great Recession.”
While this is very positive news for U.S. consumers, the recovery is expected to be an uneven one with significant headwinds. The rate of unemployment is high and is likely to remain so for the short term. Federal, state and local governments, as well as consumers, are contending with weak balance sheets. Government incentives for new housing purchases have ended. These factors, coupled with a second wave of mortgage resets and the reluctance of banks to lend, lead economic observers to believe that the recovery will be weak and uneven for the foreseeable future.
The equity market is expected to remain choppy, characterized by sharp rallies and sharp declines with equally sharp equity sector rotations. For the semiannual reporting period, large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, returned 15.66% as markets continued to rally. Mid-cap U.S. equities, as measured by the Standard and Poor’s MidCap 400 (S&P 400) Index, returned 25.78%, and small-cap U.S. equities, as measured by the Russell 2000® Index, returned 28.17% for the same time period.
International stocks and international emerging market stocks continued their strong rally in the fourth quarter of 2009, but this rally slowed throughout the first quarter of 2010, impeded by concerns about Greece’s debt situation and the recent strength of the U.S. dollar. As represented by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, emerging market stocks returned 11.57% for the semiannual reporting period. International stocks, as measured by the broad MSCI Europe, Australasia and Far East (MSCI EAFE®) Index, returned 1.19% for the same time period.
During the fourth quarter of 2009, the bond market benefited from the aforementioned improvements in corporate profits that fueled investor confidence. Enthusiasm was tempered, however, during the first quarter of 2010, due to an increase in government debt, continued weakness in U.S. labor markets and growing concerns about European debt (most notably involving Greece, Spain, Portugal and Italy). The Barclays Capital (BARCAP) U.S. Aggregate Bond Index returned 2.54% for the semiannual reporting period. On the corporate bond front, the BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index returned 4.89%, while the BofAML 10+ Year US Corporate Index returned 5.24% for the same time period. In the area of mortgage-related investments, the BofAML Mortgage Master Index returned 2.14% for the same time period.
4 Semiannual Report 2010
| 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, 2010, the Nationwide Bond Index Fund (Class A at NAV) returned 2.09% versus 2.54% 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 580 funds as of April 30, 2010) was 4.04% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s exposure to the following sectors provided positive returns for the Fund during the reporting period: Agency debentures, 1.16%; investment-grade corporates, 3.68%; commercial mortgage-backed securities (CMBS), 12.68%; asset-backed securities (ABS), 3.59%; and Agency mortgages, 2.12%. These sectors continued to benefit from a combination of accommodative monetary policy by the Federal Reserve Board and improved economic fundamentals.
What areas of investment detracted from Fund performance?
The Fund’s exposure to U.S. Treasuries detracted from Fund performance, registering -0.20% for the reporting period. In contrast to risk assets, Treasuries suffered during the reporting period as investors’ risk appetite returned to the market.
What is your outlook for the near term?
With the economy experiencing a low-growth recovery and inflationary pressures unlikely to emerge for the foreseeable future, fixed-income assets should continue to offer investors attractive return potential. We believe the Federal Reserve will remain on hold for the remainder of 2010; therefore, interest rates should stay range-bound and spreads among high-quality nongovernment spread sectors should compress further as investors continue to reach for yield. With regard to interest rates, the yield curve (a plotted graph line of the yields [or interest rates] on long-term and short-term maturity bonds) is approaching all-time steep levels. The long end of the curve is near levels last seen during a period of robust economic growth from 2005 to mid-2007, and the short end is anchored by the Fed’s zero-interest-rate policy.
While attractive opportunities still exist in spread sectors, including CMBS, ABS and corporates, we expect that returns will be determined less by overall sector performance and more by individual security selection based on in-depth credit and collateral research.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Managers:
Curtis Arledge and Matthew Marra
Curtis Arledge and Matthew Marra
2010 Semiannual Report 5
| Fund Performance | Nationwide Bond Index Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | 2.09% | 7.27% | 4.65% | 5.70% | |||||||||||||
| w/SC3 | -3.75% | 1.12% | 3.42% | 5.08% | ||||||||||||||
Class B4 | w/o SC2 | 1.74% | 6.70% | 4.01% | 5.16% | |||||||||||||
| w/SC5 | -3.26% | 1.70% | 3.67% | 5.16% | ||||||||||||||
Class C6 | w/o SC2 | 1.74% | 6.62% | 4.01% | 5.16% | |||||||||||||
| w/SC7 | 0.74% | 5.62% | 4.01% | 5.16% | ||||||||||||||
Institutional Class1,8 | 2.25% | 7.69% | 5.04% | 6.13% | ||||||||||||||
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 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 | 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. | |
| 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. |
Expense Ratios
| Expense | ||||
| Ratio* | ||||
| Class A | 0.71% | |||
| Class B | 1.32% | |||
| Class C | 1.32% | |||
| Institutional Class | 0.32% | |||
| * | Current effective prospectus dated May 6, 2010. Please see the Fund’s most recent prospectus for details. |
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 04/30/10. 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 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Bond Index Fund | 11/01/09 | 4/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,020.90 | 3.61 | 0.72 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.22 | 3.61 | 0.72 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,017.40 | 6.60 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.25 | 6.61 | 1.32 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,017.40 | 6.60 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.25 | 6.61 | 1.32 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,022.50 | 1.60 | 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 with Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
2010 Semiannual Report 7
| Portfolio Summary | Nationwide Bond Index Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| U.S. Government Mortgage Backed Agencies | 35 | .1% | ||
| U.S. Treasury Notes | 25 | .4% | ||
| Corporate Bonds | 19 | .3% | ||
| U.S. Government Sponsored & Agency Obligations | 7 | .2% | ||
| Mutual Fund | 7 | .1% | ||
| U.S. Treasury Bonds | 4 | .2% | ||
| Commercial Mortgage Backed Securities | 3 | .2% | ||
| Sovereign Bonds | 2 | .3% | ||
| Yankee Dollars | 0 | .7% | ||
| Asset-Backed Securities | 0 | .6% | ||
| Municipal Bonds | 0 | .6% | ||
| Repurchase Agreement | 0 | .2% | ||
| Liabilities in excess of other assets | (5 | .9)% | ||
| 100 | .0% | |||
| Top Industries (†) | ||||
| Diversified Financial Services | 5 | .1% | ||
| Commercial Banks | 2 | .4% | ||
| Capital Markets | 1 | .5% | ||
| Electric Utilities | 1 | .4% | ||
| Oil, Gas & Consumable Fuels | 1 | .3% | ||
| Diversified Telecommunication Services | 1 | .1% | ||
| Supranational | 1 | .0% | ||
| Media | 1 | .0% | ||
| Insurance | 0 | .9% | ||
| Pharmaceuticals | 0 | .9% | ||
| Other Industries * | 83 | .4% | ||
| 100 | .0% | |||
| Top Holdings (†) | ||||
| Invesco AIM Liquid Assets Portfolio | 6 | .7% | ||
| Fannie Mae Pool, 6.00%, 09/01/37 | 2 | .9% | ||
| U.S. Treasury Note, 1.38%, 02/15/13 | 2 | .3% | ||
| Freddie Mac Gold Pool, 5.00%, 02/01/40 | 2 | .0% | ||
| Fannie Mae Pool TBA, 5.50%, 05/25/25 | 1 | .9% | ||
| Fannie Mae Pool, 5.00%, 05/01/33 | 1 | .9% | ||
| U.S. Treasury Note, 1.38%, 09/15/12 | 1 | .6% | ||
| U.S. Treasury Note, 2.50%, 03/31/15 | 1 | .5% | ||
| U.S. Treasury Note, 3.63%, 08/15/19 | 1 | .5% | ||
| U.S. Treasury Note, 1.13%, 12/15/12 | 1 | .5% | ||
| Other Holdings * | 76 | .2% | ||
| 100 | .0% | |||
| * | For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other. |
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
8 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund
| Asset-Backed Securities 0.6% | ||||||||
| Principal Amount | Market Value | |||||||
Automobile Asset-Backed Securities 0.3% | ||||||||
USAA Auto Owner Trust, Series 2008-3, Class A3, 4.28%, 10/15/12 | $ | 3,632,077 | $ | 3,708,313 | ||||
Credit Card Asset-Backed Securities 0.2% | ||||||||
Citibank Credit Card Issuance Trust, Series 2006-A4, Class A4, 5.45%, 05/10/13 | 2,330,000 | 2,440,500 | ||||||
Home Equity Asset-Backed Securities 0.1% | ||||||||
Aegis Asset Backed Securities Trust, Series 2006-1, Class A1, 0.34%, 01/25/37 (a) | 371,251 | 365,097 | ||||||
Total Asset-Backed Securities (cost $6,391,369) | 6,513,910 | |||||||
| Commercial Mortgage Backed Securities 3.2% | ||||||||
Banc of America Commercial Mortgage, Inc. Series 2006-6, Class A4, 5.36%, 10/10/45 | 2,830,000 | 2,821,909 | ||||||
Series 2007-1, Class A4, 5.45%, 01/15/49 | 1,630,000 | 1,621,145 | ||||||
Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-PWR8, Class AJ 4.75%, 06/11/41 | 1,384,000 | 1,187,985 | ||||||
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4 6.30%, 12/10/49 (a) | 2,320,000 | 2,378,684 | ||||||
Commercial Mortgage Pass Through Certificates, Series 2005-LP5, Class A4 4.98%, 05/10/43 (a) | 4,180,000 | 4,322,603 | ||||||
CW Capital Cobalt Ltd., Series 2007-C3, Class A4 6.02%, 05/15/46 (a) | 1,490,000 | 1,451,722 | ||||||
First Union National Bank Commercial Mortgage, Series 2000-C2, Class A2 7.20%, 10/15/32 | 1,324,902 | 1,335,088 | ||||||
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A5 5.28%, 08/10/38 (a) | 2,133,000 | 2,241,192 | ||||||
| JPMorgan Chase Commercial Mortgage Securities Corp. | ||||||||
Series 2001-CIB3, Class C, 7.08%, 11/15/35 (a)(b) | 1,292,000 | 1,321,713 | ||||||
Series 2001-CIBC, Class B, 6.45%, 03/15/33 | 2,604,000 | 2,650,737 | ||||||
Series 2005-LDP4, Class AM, 5.00%, 10/15/42 (a) | 1,546,000 | 1,483,993 | ||||||
Series 2006-LDP7, Class A4, 6.06%, 04/15/45 (a) | 2,321,000 | 2,431,943 | ||||||
Series 2007-CB18, Class AM, 5.47%, 06/12/47 (a) | 300,000 | 273,330 | ||||||
Series 2007-LD12, Class A2, 5.83%, 02/15/51 | 1,525,000 | 1,580,178 | ||||||
| LB-UBS Commercial Mortgage Trust | ||||||||
Series 2003-C8, Class A4, 5.12%, 11/15/32 (a) | 2,161,000 | 2,295,230 | ||||||
Series 2007-C1, Class A2, 5.32%, 02/15/40 | 1,535,000 | 1,579,425 | ||||||
| Morgan Stanley Capital I | ||||||||
Series 2005-T19, Class A2, 4.73%, 06/12/47 | 1,745,765 | 1,747,259 | ||||||
Series 2007-IQ14, Class A4, 5.69%, 04/15/49 (a) | 1,490,000 | 1,448,651 | ||||||
| Wachovia Bank Commercial Mortgage Trust | ||||||||
Series 2002-C1, Class C, 6.55%, 04/15/34 | 1,189,000 | 1,256,827 | ||||||
Series 2007-C33, Class A4, 6.10%, 02/15/51 (a) | 1,395,000 | 1,371,541 | ||||||
Total Commercial Mortgage Backed Securities (cost $33,183,713) | 36,801,155 | |||||||
| Corporate Bonds 19.3% | ||||||||
Aerospace & Defense 0.4% | ||||||||
| Boeing Co., 4.88%, 02/15/20 | 600,000 | 626,778 | ||||||
| General Dynamics Corp., 4.25%, 05/15/13 | 175,000 | 187,351 | ||||||
| Goodrich Corp. | ||||||||
| 6.29%, 07/01/16 | 171,000 | 191,167 | ||||||
| 6.80%, 07/01/36 | 129,000 | 144,550 | ||||||
| Honeywell International, Inc. | ||||||||
| 6.13%, 11/01/11 | 103,000 | 111,049 | ||||||
| 5.40%, 03/15/16 | 440,000 | 488,884 | ||||||
| 5.30%, 03/01/18 | 605,000 | 654,128 | ||||||
| Lockheed Martin Corp., 7.65%, 05/01/16 | 123,000 | 150,054 | ||||||
| Lockheed Martin Corp., Series B, 6.15%, 09/01/36 | 196,000 | 215,627 | ||||||
| McDonnell Douglas Corp., 9.75%, 04/01/12 | 325,000 | 376,318 | ||||||
2010 Semiannual Report 9
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Aerospace & Defense (continued) | ||||||||
| Northrop Grumman Systems Corp., 7.75%, 02/15/31 | $ | 82,000 | $ | 104,361 | ||||
| Raytheon Co. | ||||||||
| 6.40%, 12/15/18 | 144,000 | 165,929 | ||||||
| 7.00%, 11/01/28 | 92,000 | 108,898 | ||||||
| Rockwell Collins, Inc. | ||||||||
| 4.75%, 12/01/13 | 205,000 | 218,269 | ||||||
| 5.25%, 07/15/19 | 70,000 | 73,590 | ||||||
| United Technologies Corp. | ||||||||
| 4.88%, 05/01/15 | 460,000 | 504,362 | ||||||
| 6.13%, 07/15/38 | 400,000 | 447,346 | ||||||
| 4,768,661 | ||||||||
Air Freight & Logistics 0.0%† | ||||||||
| United Parcel Service of America, Inc. | ||||||||
| 8.38%, 04/01/20 | 82,000 | 107,131 | ||||||
| 8.38%, 04/01/30 (c) | 123,000 | 159,915 | ||||||
| United Parcel Service, Inc., 6.20%, 01/15/38 | 205,000 | 230,646 | ||||||
| 497,692 | ||||||||
Airlines 0.0%† | ||||||||
| Qantas Airways Ltd., 6.05%, 04/15/16 (b) | 123,000 | 128,132 | ||||||
| Southwest Airlines Co., 5.13%, 03/01/17 | 103,000 | 102,196 | ||||||
| 230,328 | ||||||||
Auto Components 0.0%† | ||||||||
| Johnson Controls, Inc., 4.88%, 09/15/13 | 123,000 | 132,381 | ||||||
Automobile 0.2% | ||||||||
| Daimler Finance North America LLC | ||||||||
| 5.88%, 03/15/11 | 1,213,000 | 1,258,866 | ||||||
| 7.30%, 01/15/12 | 271,000 | 294,469 | ||||||
| 6.50%, 11/15/13 | 338,000 | 376,935 | ||||||
| 1,930,270 | ||||||||
Beverages 0.4% | ||||||||
| Anheuser-Busch Cos., Inc. | ||||||||
| 4.38%, 01/15/13 | 21,000 | 22,155 | ||||||
| 5.00%, 03/01/19 | 164,000 | 167,153 | ||||||
| 5.75%, 04/01/36 | 151,000 | 150,386 | ||||||
| 6.00%, 11/01/41 | 103,000 | 104,169 | ||||||
| Anheuser-Busch InBev Worldwide, Inc., 5.38%, 01/15/20 | 600,000 | 627,323 | ||||||
| Bottling Group LLC, 4.63%, 11/15/12 | 287,000 | 309,999 | ||||||
Coca-Cola Bottling Co. Consolidated, 5.00%, 11/15/12 | 62,000 | 66,170 | ||||||
Coca-Cola Enterprises, Inc. | ||||||||
| 8.50%, 02/01/12 | 146,000 | 164,082 | ||||||
| 7.38%, 03/03/14 | 328,000 | 386,348 | ||||||
| 6.95%, 11/15/26 | 103,000 | 124,366 | ||||||
| Diageo Capital PLC, 5.50%, 09/30/16 | 300,000 | 330,471 | ||||||
| Diageo Finance BV, 5.30%, 10/28/15 | 451,000 | 498,313 | ||||||
| Pepsi Bottling Group, Inc., Series B, 7.00%, 03/01/29 | 144,000 | 174,669 | ||||||
| PepsiAmericas, Inc., 4.88%, 01/15/15 | 208,000 | 223,710 | ||||||
| PepsiCo, Inc., 7.90%, 11/01/18 | 500,000 | 630,699 | ||||||
| SABMiller PLC, 5.50%, 08/15/13 (b) | 103,000 | 112,361 | ||||||
| 4,092,374 | ||||||||
Biotechnology 0.0%† | ||||||||
| Amgen, Inc., 6.40%, 02/01/39 | 300,000 | 332,677 | ||||||
| Genentech, Inc., 5.25%, 07/15/35 | 62,000 | 59,650 | ||||||
| 392,327 | ||||||||
Capital Markets 1.0% | ||||||||
| Bank of New York Mellon Corp. (The), 5.13%, 08/27/13 | 300,000 | 329,002 | ||||||
| Credit Suisse Guernsey, 5.86%, 05/15/17 (d)(e) | 300,000 | 283,125 | ||||||
| Credit Suisse USA, Inc. | ||||||||
| 6.13%, 11/15/11 | 185,000 | 197,770 | ||||||
| 6.50%, 01/15/12 | 246,000 | 266,974 | ||||||
| 5.13%, 01/15/14 | 119,000 | 128,144 | ||||||
| 5.85%, 08/16/16 | 300,000 | 328,716 | ||||||
| 7.13%, 07/15/32 | 395,000 | 476,081 | ||||||
| Deutsche Bank AG, 4.88%, 05/20/13 | 1,000,000 | 1,073,526 | ||||||
| Goldman Sachs Group, Inc. (The) | ||||||||
| 6.60%, 01/15/12 | 72,000 | 76,737 | ||||||
| 5.25%, 10/15/13 | 605,000 | 634,620 | ||||||
| 5.13%, 01/15/15 (f) | 461,000 | 476,195 | ||||||
| 5.35%, 01/15/16 | 453,000 | 461,646 | ||||||
| 5.63%, 01/15/17 | 850,000 | 839,202 | ||||||
| 6.13%, 02/15/33 | 450,000 | 432,094 | ||||||
| 6.75%, 10/01/37 | 700,000 | 678,731 | ||||||
| Jefferies Group, Inc., 6.25%, 01/15/36 | 123,000 | 108,352 | ||||||
| Morgan Stanley | ||||||||
| 6.60%, 04/01/12 | 349,000 | 377,656 | ||||||
| 5.30%, 03/01/13 | 461,000 | 487,606 | ||||||
| 4.75%, 04/01/14 | 410,000 | 418,277 | ||||||
10 Semiannual Report 2010
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Capital Markets (continued) | ||||||||
| 5.45%, 01/09/17 | $ | 1,345,000 | $ | 1,364,172 | ||||
| 7.30%, 05/13/19 | 400,000 | 439,231 | ||||||
| 7.25%, 04/01/32 | 226,000 | 257,163 | ||||||
| UBS AG/Stamford Branch, 5.88%, 07/15/16 | 679,000 | 720,016 | ||||||
| UBS AG/Stamford Branch, Series DPNT, 5.88%, 12/20/17 | 250,000 | 264,436 | ||||||
| UBS Preferred Funding Trust I, 8.62%, 10/01/10 (d)(e) | 350,000 | 346,149 | ||||||
| UBS Preferred Funding Trust V, Series 1, 6.24%, 05/15/16 (d)(e) | 225,000 | 207,000 | ||||||
| 11,672,621 | ||||||||
Chemicals 0.2% | ||||||||
| Albemarle Corp., 5.10%, 02/01/15 | 82,000 | 87,053 | ||||||
| Cytec Industries, Inc., 6.00%, 10/01/15 | 113,000 | 123,524 | ||||||
| Dow Chemical Co. (The) | ||||||||
| 6.00%, 10/01/12 | 310,000 | 337,998 | ||||||
| 8.55%, 05/15/19 | 415,000 | 507,096 | ||||||
| EI Du Pont de Nemours & Co., 5.25%, 12/15/16 | 515,000 | 561,147 | ||||||
| Lubrizol Corp. | ||||||||
| 5.50%, 10/01/14 | 196,000 | 213,624 | ||||||
| 6.50%, 10/01/34 | 103,000 | 106,457 | ||||||
| Praxair, Inc., 3.95%, 06/01/13 | 123,000 | 129,631 | ||||||
| 2,066,530 | ||||||||
Commercial Banks 1.8% | ||||||||
| Bank of Tokyo-Mitsubishi UFJ Ltd., 7.40%, 06/15/11 | 246,000 | 262,106 | ||||||
| Bank One Corp. | ||||||||
| 5.25%, 01/30/13 | 103,000 | 110,716 | ||||||
| 8.00%, 04/29/27 | 202,000 | 243,928 | ||||||
| BB&T Corp., 4.75%, 10/01/12 | 164,000 | 172,868 | ||||||
| Charter One Bank NA, Series AI, 6.38%, 05/15/12 | 500,000 | 523,909 | ||||||
| Comerica, Inc., 4.80%, 05/01/15 | 123,000 | 126,174 | ||||||
| Deutsche Bank Financial LLC, 5.38%, 03/02/15 | 123,000 | 131,347 | ||||||
| Eksportfinans ASA, 5.50%, 05/25/16 | 267,000 | 299,138 | ||||||
| HSBC Bank USA NA | ||||||||
| 4.63%, 04/01/14 | 410,000 | 431,021 | ||||||
| 5.88%, 11/01/34 | 498,000 | 495,117 | ||||||
| 5.63%, 08/15/35 | 250,000 | 239,329 | ||||||
| HSBC Holdings PLC | ||||||||
| 6.50%, 05/02/36 | 500,000 | 531,325 | ||||||
| 6.50%, 09/15/37 | 300,000 | 317,917 | ||||||
| KeyBank NA | ||||||||
| 5.70%, 08/15/12 | 185,000 | 195,303 | ||||||
| 5.80%, 07/01/14 | 103,000 | 109,264 | ||||||
| Korea Development Bank, 5.75%, 09/10/13 | 82,000 | 89,053 | ||||||
| Kreditanstalt fuer Wiederaufbau | ||||||||
| 3.50%, 03/10/14 | 2,085,000 | 2,179,788 | ||||||
| 4.13%, 10/15/14 | 492,000 | 519,383 | ||||||
| 4.38%, 07/21/15 (f) | 1,405,000 | 1,505,141 | ||||||
| 4.38%, 03/15/18 | 800,000 | 838,850 | ||||||
| Landwirtschaftliche Rentenbank | ||||||||
| 4.88%, 02/14/11 | 115,000 | 118,968 | ||||||
| 5.13%, 02/01/17 | 600,000 | 661,531 | ||||||
| Manufacturers & Traders Trust Co., 1.79%, 04/01/13 (a) | 300,000 | 294,125 | ||||||
| Marshall & Ilsley Bank, 5.25%, 09/04/12 | 113,000 | 112,937 | ||||||
| Mellon Funding Corp. | ||||||||
| 6.40%, 05/14/11 | 185,000 | 195,449 | ||||||
| 5.00%, 12/01/14 | 185,000 | 201,111 | ||||||
| National City Corp., 4.90%, 01/15/15 | 246,000 | 261,845 | ||||||
| Oesterreichische Kontrollbank AG | ||||||||
| 4.50%, 03/09/15 | 414,000 | 442,158 | ||||||
| 4.88%, 02/16/16 | 250,000 | 273,156 | ||||||
| PNC Funding Corp., 5.25%, 11/15/15 | 246,000 | 261,551 | ||||||
| Regions Bank, 3.25%, 12/09/11 | 2,440,000 | 2,529,485 | ||||||
| Sovereign Bank, 5.13%, 03/15/13 | 200,000 | 204,057 | ||||||
| St. George Bank Ltd., 5.30%, 10/15/15 (b) | 164,000 | 167,692 | ||||||
| State Street Bank & Trust Co., 5.30%, 01/15/16 | 200,000 | 218,197 | ||||||
| SunTrust Bank | ||||||||
| 5.20%, 01/17/17 | 123,000 | 120,871 | ||||||
| 5.45%, 12/01/17 | 127,000 | 128,083 | ||||||
| UnionBanCal Corp., 5.25%, 12/16/13 | 144,000 | 155,226 | ||||||
| US Bank NA | ||||||||
| 6.38%, 08/01/11 | 249,000 | 264,658 | ||||||
| 4.95%, 10/30/14 | 185,000 | 200,521 | ||||||
| 4.80%, 04/15/15 | 92,000 | 99,380 | ||||||
| USB Capital IX, 6.19%, 04/15/11 (d)(e) | 325,000 | 282,344 | ||||||
| Wachovia Bank NA | ||||||||
| 5.60%, 03/15/16 | 492,000 | 535,581 | ||||||
| 6.60%, 01/15/38 | 675,000 | 722,205 | ||||||
| Wachovia Capital Trust III, 5.80%, 03/15/11 (d)(e) | 625,000 | 540,625 | ||||||
| Wachovia Corp., 4.88%, 02/15/14 | 127,000 | 132,279 | ||||||
2010 Semiannual Report 11
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| Wells Fargo & Co. | ||||||||
| 5.13%, 09/15/16 | $ | 144,000 | $ | 151,460 | ||||
| 5.38%, 02/07/35 | 318,000 | 303,224 | ||||||
| Wells Fargo Capital X, 5.95%, 12/15/36 | 650,000 | 596,639 | ||||||
| Wells Fargo Capital XIII, 7.70%, 03/26/13 (d)(e) | 775,000 | 806,000 | ||||||
| 20,303,035 | ||||||||
Commercial Services & Supplies 0.2% | ||||||||
| Pitney Bowes, Inc. | ||||||||
| 4.75%, 01/15/16 | 205,000 | 217,990 | ||||||
| 4.75%, 05/15/18 | 62,000 | 64,047 | ||||||
| RR Donnelley & Sons Co. | ||||||||
| 4.95%, 04/01/14 | 82,000 | 84,542 | ||||||
| 6.13%, 01/15/17 | 400,000 | 406,777 | ||||||
| Science Applications International Corp., 5.50%, 07/01/33 | 123,000 | 110,212 | ||||||
| TTX Co., 4.90%, 03/01/15 (b) | 154,000 | 160,439 | ||||||
| Waste Management, Inc. | ||||||||
| 6.38%, 11/15/12 | 144,000 | 159,612 | ||||||
| 6.38%, 03/11/15 | 800,000 | 906,311 | ||||||
| 7.00%, 07/15/28 | 113,000 | 127,693 | ||||||
| 2,237,623 | ||||||||
Communications Equipment 0.3% | ||||||||
| Cisco Systems, Inc. | ||||||||
| 5.50%, 02/22/16 | 750,000 | 845,897 | ||||||
| 4.95%, 02/15/19 | 835,000 | 885,565 | ||||||
| Comcast Cable Communications Holdings, Inc. | ||||||||
| 8.38%, 03/15/13 | 164,000 | 190,491 | ||||||
| 9.46%, 11/15/22 | 82,000 | 110,713 | ||||||
| COX Communications, Inc. | ||||||||
| 5.45%, 12/15/14 | 246,000 | 269,104 | ||||||
| 5.50%, 10/01/15 | 667,000 | 726,584 | ||||||
| Motorola, Inc., 7.50%, 05/15/25 | 144,000 | 159,467 | ||||||
| 3,187,821 | ||||||||
Computers & Peripherals 0.2% | ||||||||
| Dell, Inc., 7.10%, 04/15/28 | 144,000 | 168,428 | ||||||
| Hewlett-Packard Co. | ||||||||
| 6.50%, 07/01/12 | 208,000 | 229,964 | ||||||
| 5.50%, 03/01/18 | 835,000 | 928,664 | ||||||
| International Business Machines Corp. | ||||||||
| 4.75%, 11/29/12 | 359,000 | 388,827 | ||||||
| 5.88%, 11/29/32 | 732,000 | 785,985 | ||||||
| 2,501,868 | ||||||||
Construction Materials 0.1% | ||||||||
| CRH America, Inc., 6.00%, 09/30/16 | 465,000 | 508,920 | ||||||
| Lafarge SA, 6.50%, 07/15/16 | 185,000 | 199,497 | ||||||
| 708,417 | ||||||||
Consumer Finance 0.4% | ||||||||
| American Express Co. | ||||||||
| 4.88%, 07/15/13 | 837,000 | 894,089 | ||||||
| 8.13%, 05/20/19 | 600,000 | 734,875 | ||||||
| 6.80%, 09/01/66 (a) | 210,000 | 206,850 | ||||||
| Capital One Bank USA NA, 5.13%, 02/15/14 | 410,000 | 436,892 | ||||||
| Capital One Capital III, 7.69%, 08/15/36 | 175,000 | 171,500 | ||||||
| Capital One Capital IV, 6.75%, 02/17/37 (a) | 135,000 | 120,150 | ||||||
| Capital One Financial Corp., 5.25%, 02/21/17 | 211,000 | 218,815 | ||||||
| FIA Card Services NA, 7.13%, 11/15/12 (b) | 140,000 | 153,270 | ||||||
| HSBC Finance Corp. | ||||||||
| 7.00%, 05/15/12 | 264,000 | 288,662 | ||||||
| 5.25%, 04/15/15 | 185,000 | 196,542 | ||||||
| SLM Corp., Series A, 5.38%, 05/15/14 | 759,000 | 726,794 | ||||||
| 4,148,439 | ||||||||
Diversified Financial Services 3.4% | ||||||||
| Associates Corp of North America, 6.95%, 11/01/18 | 236,000 | 250,802 | ||||||
| AXA Financial, Inc., 7.00%, 04/01/28 | 92,000 | 93,155 | ||||||
| Bank of America Corp. | ||||||||
| 5.38%, 08/15/11 | 267,000 | 280,316 | ||||||
| 2.10%, 04/30/12 | 1,675,000 | 1,707,133 | ||||||
| 4.88%, 09/15/12 | 201,000 | 211,757 | ||||||
| 4.88%, 01/15/13 | 451,000 | 472,689 | ||||||
| 4.75%, 08/01/15 | 431,000 | 438,123 | ||||||
| 5.25%, 12/01/15 | 513,000 | 521,500 | ||||||
| 5.63%, 10/14/16 | 440,000 | 456,614 | ||||||
| Bank of America Corp., Series MTNL, 5.65%, 05/01/18 | 1,800,000 | 1,821,859 | ||||||
| Bank of America NA | ||||||||
| 6.00%, 06/15/16 | 205,000 | 216,807 | ||||||
| 5.30%, 03/15/17 | 500,000 | 495,615 | ||||||
| Bear Stearns Cos. LLC (The) | ||||||||
| 5.70%, 11/15/14 | 256,000 | 280,903 | ||||||
| 5.30%, 10/30/15 | 123,000 | 132,436 | ||||||
| 4.65%, 07/02/18 | 246,000 | 244,502 | ||||||
| BP Capital Markets America, Inc., 4.20%, 06/15/18 | 103,000 | 102,131 | ||||||
12 Semiannual Report 2010
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Diversified Financial Services (continued) | ||||||||
| BSKYB Finance UK PLC, 5.63%, 10/15/15 (b) | $ | 103,000 | $ | 113,061 | ||||
| Caterpillar Financial Services Corp. | ||||||||
| 6.13%, 02/17/14 | 700,000 | 791,509 | ||||||
| 5.50%, 03/15/16 | 205,000 | 226,016 | ||||||
| Citigroup Funding, Inc. | ||||||||
| 1.25%, 06/03/11 (f) | 425,000 | 427,664 | ||||||
| 2.25%, 12/10/12 | 4,550,000 | 4,638,884 | ||||||
| Citigroup, Inc. | ||||||||
| 6.00%, 02/21/12 | 103,000 | 109,243 | ||||||
| 5.25%, 02/27/12 | 850,000 | 890,746 | ||||||
| 5.63%, 08/27/12 | 205,000 | 215,851 | ||||||
| 5.50%, 10/15/14 | 1,100,000 | 1,142,712 | ||||||
| 5.30%, 01/07/16 | 1,321,000 | 1,348,141 | ||||||
| 5.85%, 08/02/16 | 287,000 | 298,113 | ||||||
| 6.63%, 06/15/32 | 232,000 | 222,858 | ||||||
| 5.88%, 02/22/33 | 82,000 | 72,739 | ||||||
| 5.85%, 12/11/34 | 375,000 | 346,540 | ||||||
| 5.88%, 05/29/37 | 200,000 | 189,262 | ||||||
| General Electric Capital Corp. | ||||||||
| 1.80%, 03/11/11 | 4,170,000 | 4,214,919 | ||||||
| 5.50%, 04/28/11 | 287,000 | 299,918 | ||||||
| 4.88%, 03/04/15 | 431,000 | 458,244 | ||||||
| 5.00%, 01/08/16 | 205,000 | 217,063 | ||||||
| 5.40%, 02/15/17 | 415,000 | 440,228 | ||||||
| 5.63%, 09/15/17 | 1,150,000 | 1,231,598 | ||||||
| 6.15%, 08/07/37 | 750,000 | 760,875 | ||||||
| 6.38%, 11/15/67 (a) | 700,000 | 670,250 | ||||||
| General Electric Capital Corp. | ||||||||
| Series A, 5.88%, 02/15/12 | 41,000 | 44,025 | ||||||
| Series A, 6.00%, 06/15/12 | 182,000 | 197,718 | ||||||
| Series A, 6.75%, 03/15/32 | 867,000 | 945,527 | ||||||
| Goldman Sachs Capital I, 6.35%, 02/15/34 | 900,000 | 805,395 | ||||||
| Goldman Sachs Capital II, 5.79%, 06/01/12 (d)(e) | 400,000 | 316,500 | ||||||
| JPMorgan Chase & Co. | ||||||||
| 6.63%, 03/15/12 | 447,000 | 485,190 | ||||||
| 3.70%, 01/20/15 | 605,000 | 617,379 | ||||||
| 4.75%, 03/01/15 | 176,000 | 186,893 | ||||||
| 5.15%, 10/01/15 | 349,000 | 372,871 | ||||||
| JPMorgan Chase Bank NA, Series AI, 5.88%, 06/13/16 | 308,000 | 331,928 | ||||||
| JPMorgan Chase Bank NA | ||||||||
| 6.00%, 07/05/17 | 1,030,000 | 1,107,547 | ||||||
| 6.00%, 10/01/17 | 750,000 | 804,883 | ||||||
| JPMorgan Chase Capital XXV, Series Y, 6.80%, 10/01/37 | 3,060,000 | 3,067,690 | ||||||
| National Rural Utilities Cooperative Finance Corp. | ||||||||
| 4.75%, 03/01/14 | 226,000 | 243,213 | ||||||
| 5.45%, 04/10/17 | 400,000 | 432,003 | ||||||
| National Rural Utilities Cooperative Finance Corp., Series C, 8.00%, 03/01/32 | 111,000 | 137,346 | ||||||
| Principal Life Global Funding I | ||||||||
| 6.25%, 02/15/12 (b) | 150,000 | 160,262 | ||||||
| 5.25%, 01/15/13 (b) | 615,000 | 656,306 | ||||||
| Spectra Energy Capital LLC, 6.75%, 02/15/32 | 123,000 | 131,193 | ||||||
| State Street Capital Trust III, 8.25%, 03/15/42 (a) | 140,000 | 143,751 | ||||||
| TIAA Global Markets, Inc., 4.95%, 07/15/13 (b) | 600,000 | 645,300 | ||||||
| UFJ Finance Aruba AEC, 6.75%, 07/15/13 | 246,000 | 276,009 | ||||||
| 39,161,705 | ||||||||
Diversified Telecommunication Services 1.2% | ||||||||
| Ameritech Capital Funding Corp., 6.45%, 01/15/18 | 62,000 | 68,074 | ||||||
| AT&T Inc. | ||||||||
| 6.25%, 03/15/11 | 330,000 | 345,557 | ||||||
| 5.88%, 08/15/12 | 295,000 | 322,554 | ||||||
| 5.10%, 09/15/14 | 597,000 | 651,930 | ||||||
| 5.63%, 06/15/16 | 205,000 | 227,689 | ||||||
| 5.50%, 02/01/18 | 505,000 | 544,120 | ||||||
| 6.15%, 09/15/34 | 814,000 | 824,335 | ||||||
| 6.55%, 02/15/39 | 310,000 | 332,348 | ||||||
| BellSouth Corp. | ||||||||
| 6.00%, 10/15/11 | 583,000 | 622,714 | ||||||
| 5.20%, 09/15/14 | 349,000 | 381,783 | ||||||
| 6.55%, 06/15/34 | 123,000 | 130,271 | ||||||
| British Telecommunications PLC, 9.63%, 12/15/30 | 391,000 | 503,153 | ||||||
| Deutsche Telekom International Finance BV | ||||||||
| 5.25%, 07/22/13 | 513,000 | 552,350 | ||||||
| 5.75%, 03/23/16 | 273,000 | 297,946 | ||||||
| 8.75%, 06/15/30 | 256,000 | 331,162 | ||||||
| Embarq Corp., 7.08%, 06/01/16 | 92,000 | 101,460 | ||||||
| France Telecom SA, 8.50%, 03/01/31 | 283,000 | 384,017 | ||||||
| GTE Corp. | ||||||||
| 6.84%, 04/15/18 | 144,000 | 161,081 | ||||||
| 6.94%, 04/15/28 | 103,000 | 110,841 | ||||||
| Qwest Corp., 8.38%, 05/01/16 | 925,000 | 1,054,500 | ||||||
| Telecom Italia Capital SA | ||||||||
| 6.20%, 07/18/11 | 144,000 | 150,923 | ||||||
2010 Semiannual Report 13
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Diversified Telecommunication Services (continued) | ||||||||
| 4.95%, 09/30/14 | $ | 205,000 | $ | 211,188 | ||||
| 5.25%, 10/01/15 | 730,000 | 752,766 | ||||||
| 6.00%, 09/30/34 | 160,000 | 141,751 | ||||||
| Telefonica Emisiones SAU, 6.42%, 06/20/16 | 1,080,000 | 1,205,766 | ||||||
| Telefonos de Mexico SAB de CV, 5.50%, 01/27/15 | 164,000 | 177,864 | ||||||
| Verizon Communications, Inc. | ||||||||
| 4.90%, 09/15/15 | 410,000 | 445,314 | ||||||
| 8.75%, 11/01/18 | 600,000 | 758,327 | ||||||
| 6.35%, 04/01/19 | 100,000 | 112,346 | ||||||
| 5.85%, 09/15/35 | 82,000 | 81,682 | ||||||
| Verizon Global Funding Corp. | ||||||||
| 6.88%, 06/15/12 | 205,000 | 227,777 | ||||||
| 7.38%, 09/01/12 | 363,000 | 410,794 | ||||||
| 4.38%, 06/01/13 | 256,000 | 272,536 | ||||||
| 7.75%, 12/01/30 | 810,000 | 980,650 | ||||||
| 13,877,569 | ||||||||
Electric Utilities 1.5% | ||||||||
| Alabama Power Co., 5.70%, 02/15/33 | 276,000 | 283,856 | ||||||
| American Electric Power Co., Inc., 5.25%, 06/01/15 (f) | 133,000 | 143,786 | ||||||
| Appalachian Power Co., Series L, 5.80%, 10/01/35 | 144,000 | 144,200 | ||||||
| Arizona Public Service Co., 5.50%, 09/01/35 | 150,000 | 137,930 | ||||||
| Baltimore Gas & Electric Co., 5.90%, 10/01/16 | 615,000 | 672,039 | ||||||
| Cleveland Electric Illuminating Co. (The), 5.50%, 08/15/24 | 200,000 | 208,833 | ||||||
| Commonwealth Edison Co., Series 98, 6.15%, 03/15/12 | 82,000 | 88,928 | ||||||
| Commonwealth Edison Co., 6.15%, 09/15/17 | 750,000 | 838,667 | ||||||
Consolidated Edison Co. of New York, Inc., Series 02-B, 4.88%, 02/01/13 | 86,000 | 92,582 | ||||||
Consolidated Edison Co. of New York, Inc., Series 05-C, 5.38%, 12/15/15 | 123,000 | 137,031 | ||||||
Consolidated Edison Co. of New York, Inc., Series 08-A, 5.85%, 04/01/18 | 2,200,000 | 2,448,054 | ||||||
Consolidated Edison Co. of New York, Inc., Series 03-A, 5.88%, 04/01/33 | 82,000 | 85,112 | ||||||
| Duke Energy Carolinas LLC, 6.25%, 01/15/12 | 970,000 | 1,051,437 | ||||||
| Duke Energy Corp., 5.05%, 09/15/19 | 600,000 | 619,808 | ||||||
| Duke Energy Ohio, Inc., 5.70%, 09/15/12 | 29,000 | 31,478 | ||||||
| Duke Energy Ohio, Inc., Series A, 5.40%, 06/15/33 | 51,000 | 48,548 | ||||||
| Entergy Gulf States, Inc., 5.25%, 08/01/15 | 56,000 | 56,089 | ||||||
| Entergy Mississippi, Inc., 5.15%, 02/01/13 | 201,000 | 213,885 | ||||||
| Enterprise Products Operating LLC, Series G, 5.60%, 10/15/14 | 656,000 | 718,168 | ||||||
| Enterprise Products Operating LLC, 6.13%, 10/15/39 | 215,000 | 219,887 | ||||||
| Exelon Corp. | ||||||||
| 4.90%, 06/15/15 | 287,000 | 303,017 | ||||||
| 5.63%, 06/15/35 | 414,000 | 398,683 | ||||||
| FirstEnergy Corp., Series C, 7.38%, 11/15/31 | 287,000 | 306,216 | ||||||
| Florida Power & Light Co. | ||||||||
| 4.85%, 02/01/13 | 103,000 | 110,729 | ||||||
| 5.85%, 02/01/33 | 70,000 | 72,604 | ||||||
| 5.95%, 10/01/33 | 53,000 | 56,485 | ||||||
| 5.40%, 09/01/35 | 90,000 | 89,391 | ||||||
| 5.65%, 02/01/37 | 200,000 | 203,339 | ||||||
| Florida Power Corp., 5.90%, 03/01/33 | 247,000 | 260,429 | ||||||
| Georgia Power Co., Series K, 5.13%, 11/15/12 | 74,000 | 80,577 | ||||||
| Metropolitan Edison Co., 4.88%, 04/01/14 | 164,000 | 173,443 | ||||||
| MidAmerican Energy Co., 5.80%, 10/15/36 | 200,000 | 206,066 | ||||||
| MidAmerican Energy Holdings Co. | ||||||||
| 5.88%, 10/01/12 | 841,000 | 920,748 | ||||||
| 5.75%, 04/01/18 | 750,000 | 813,776 | ||||||
| New York State Electric & Gas Corp., 5.75%, 05/01/23 | 41,000 | 40,590 | ||||||
| Ohio Power Co., Series K, 6.00%, 06/01/16 | 349,000 | 387,459 | ||||||
| Ohio Power Co., Series G, 6.60%, 02/15/33 | 164,000 | 178,720 | ||||||
| Oncor Electric Delivery Co. LLC | ||||||||
| 6.38%, 05/01/12 | 383,000 | 415,301 | ||||||
| 6.38%, 01/15/15 | 308,000 | 346,846 | ||||||
14 Semiannual Report 2010
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Electric Utilities (continued) | ||||||||
| Pacific Gas & Electric Co. | ||||||||
| 4.80%, 03/01/14 | $ | 328,000 | $ | 354,194 | ||||
| 5.80%, 03/01/37 | 150,000 | 154,570 | ||||||
| 6.25%, 03/01/39 | 300,000 | 328,207 | ||||||
| PacifiCorp, 5.25%, 06/15/35 | 123,000 | 119,501 | ||||||
| Pepco Holdings, Inc. | ||||||||
| 6.45%, 08/15/12 | 74,000 | 80,555 | ||||||
| 7.45%, 08/15/32 | 82,000 | 93,423 | ||||||
| Progress Energy, Inc., 7.75%, 03/01/31 | 164,000 | 200,554 | ||||||
| PSEG Power LLC | ||||||||
| 6.95%, 06/01/12 | 51,000 | 56,178 | ||||||
| 5.50%, 12/01/15 | 287,000 | 312,925 | ||||||
| Public Service Co. of Colorado, Series 15, 5.50%, 04/01/14 | 174,000 | 190,647 | ||||||
| Public Service Electric & Gas Co., Series MTNB, 5.13%, 09/01/12 | 135,000 | 146,038 | ||||||
| Scottish Power Ltd., 5.81%, 03/15/25 | 82,000 | 81,197 | ||||||
| Southern California Edison Co., 6.00%, 01/15/34 | 123,000 | 133,325 | ||||||
Southern California Edison Co., Series 05-B, 5.55%, 01/15/36 | 164,000 | 167,176 | ||||||
| Southern Power Co., Series B, 6.25%, 07/15/12 | 174,000 | 190,475 | ||||||
| SPI Electricity & Gas Australia Holdings Pty Ltd., 6.15%, 11/15/13 (b) | 131,000 | 142,249 | ||||||
| Virginia Electric and Power Co., Series A, 5.40%, 01/15/16 | 103,000 | 112,791 | ||||||
| Virginia Electric and Power Co., 5.95%, 09/15/17 | 750,000 | 839,324 | ||||||
| Westar Energy, Inc., 6.00%, 07/01/14 | 185,000 | 205,827 | ||||||
| Wisconsin Electric Power Co., 5.63%, 05/15/33 | 41,000 | 42,048 | ||||||
| 17,555,941 | ||||||||
Electrical Equipment 0.0%† | ||||||||
| Emerson Electric Co., 6.00%, 08/15/32 | 57,000 | 61,706 | ||||||
Energy Equipment & Services 0.1% | ||||||||
| Anadarko Finance Co. | ||||||||
| Series B, 6.75%, 05/01/11 | 82,000 | 86,086 | ||||||
| Series B, 7.50%, 05/01/31 | 207,000 | 238,352 | ||||||
| Apache Finance Canada Corp., 4.38%, 05/15/15 | 238,000 | 253,434 | ||||||
| EOG Resources, Inc., 5.63%, 06/01/19 | 130,000 | 142,710 | ||||||
| Halliburton Co., 6.70%, 09/15/38 | 325,000 | 368,904 | ||||||
| Motiva Enterprises LLC, 5.20%, 09/15/12 (b) | 51,000 | 54,537 | ||||||
| Nabors Industries, Inc., 5.38%, 08/15/12 | 29,000 | 30,831 | ||||||
| Transocean, Inc., 7.50%, 04/15/31 | 123,000 | 148,159 | ||||||
| 1,323,013 | ||||||||
Food & Staples Retailing 0.4% | ||||||||
| Costco Wholesale Corp., 5.50%, 03/15/17 | 475,000 | 529,645 | ||||||
| CVS Caremark Corp., 6.25%, 06/01/27 | 460,000 | 492,572 | ||||||
| Kroger Co. (The) | ||||||||
| 6.20%, 06/15/12 | 164,000 | 178,295 | ||||||
| 7.50%, 04/01/31 | 178,000 | 215,598 | ||||||
| Safeway, Inc. | ||||||||
| 5.80%, 08/15/12 | 144,000 | 157,538 | ||||||
| 5.63%, 08/15/14 | 123,000 | 134,991 | ||||||
| Sysco Corp., 5.38%, 09/21/35 | 74,000 | 74,148 | ||||||
| Wal-Mart Stores, Inc. | ||||||||
| 5.00%, 04/05/12 | 1,300,000 | 1,394,055 | ||||||
| 3.20%, 05/15/14 | 500,000 | 517,757 | ||||||
| 7.55%, 02/15/30 | 82,000 | 103,490 | ||||||
| 5.25%, 09/01/35 | 492,000 | 484,509 | ||||||
| 4,282,598 | ||||||||
Food Products 0.3% | ||||||||
| Archer-Daniels-Midland Co. | ||||||||
| 5.94%, 10/01/32 | 140,000 | 149,092 | ||||||
| 5.38%, 09/15/35 | 103,000 | 102,639 | ||||||
| Bunge Ltd. Finance Corp., 5.10%, 07/15/15 | 62,000 | 64,433 | ||||||
| Cadbury Schweppes US Finance LLC, 5.13%, 10/01/13 (b) | 123,000 | 132,565 | ||||||
| Campbell Soup Co., 4.88%, 10/01/13 | 164,000 | 179,967 | ||||||
| ConAgra Foods, Inc. | ||||||||
| 6.75%, 09/15/11 | 7,000 | 7,487 | ||||||
| 7.00%, 10/01/28 | 154,000 | 173,786 | ||||||
| General Mills, Inc., 6.00%, 02/15/12 | 185,000 | 200,248 | ||||||
| H.J. Heinz Finance Co. | ||||||||
| 6.00%, 03/15/12 | 150,000 | 162,008 | ||||||
| 6.75%, 03/15/32 | 62,000 | 68,828 | ||||||
2010 Semiannual Report 15
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Food Products (continued) | ||||||||
| Kellogg Co., Series B, 7.45%, 04/01/31 | $ | 103,000 | $ | 129,108 | ||||
| Kraft Foods, Inc. | ||||||||
| 5.63%, 11/01/11 | 326,000 | 345,264 | ||||||
| 6.00%, 02/11/13 | 200,000 | 221,636 | ||||||
| 6.13%, 02/01/18 | 375,000 | 414,238 | ||||||
| 6.50%, 11/01/31 | 131,000 | 140,502 | ||||||
| 7.00%, 08/11/37 | 310,000 | 353,147 | ||||||
| 6.88%, 02/01/38 | 300,000 | 337,430 | ||||||
| Sara Lee Corp., 6.25%, 09/15/11 | 174,000 | 184,661 | ||||||
| Unilever Capital Corp., 5.90%, 11/15/32 | 144,000 | 155,699 | ||||||
| 3,522,738 | ||||||||
Gas Utilities 0.1% | ||||||||
| AGL Capital Corp., 4.45%, 04/15/13 | 123,000 | 128,979 | ||||||
| Atmos Energy Corp. | ||||||||
| 5.13%, 01/15/13 | 92,000 | 98,652 | ||||||
| 4.95%, 10/15/14 | 185,000 | 197,591 | ||||||
| Boardwalk Pipelines LP, 5.20%, 06/01/18 | 62,000 | 63,184 | ||||||
| CenterPoint Energy Resources Corp., Series B, 7.88%, 04/01/13 | 246,000 | 282,162 | ||||||
| Colonial Pipeline Co., 7.63%, 04/15/32 (b) | 150,000 | 184,274 | ||||||
| Consolidated Natural Gas Co., Series A, 5.00%, 12/01/14 | 396,000 | 426,243 | ||||||
| Southern California Gas Co., 4.80%, 10/01/12 | 267,000 | 285,594 | ||||||
| 1,666,679 | ||||||||
Health Care Equipment & Supplies 0.2% | ||||||||
| Baxter International, Inc. | ||||||||
| 4.63%, 03/15/15 | 53,000 | 57,642 | ||||||
| 5.38%, 06/01/18 | 835,000 | 914,117 | ||||||
| Covidien International Finance SA, 6.00%, 10/15/17 | 940,000 | 1,042,054 | ||||||
| 2,013,813 | ||||||||
Health Care Providers & Services 0.2% | ||||||||
| Aetna, Inc., 6.00%, 06/15/16 | 650,000 | 721,561 | ||||||
| Quest Diagnostics, Inc., 5.45%, 11/01/15 | 376,000 | 409,439 | ||||||
| UnitedHealth Group, Inc. | ||||||||
| 5.38%, 03/15/16 | 205,000 | 218,277 | ||||||
| 5.80%, 03/15/36 | 417,000 | 400,791 | ||||||
| WellPoint, Inc. | ||||||||
| 5.00%, 12/15/14 | 598,000 | 642,193 | ||||||
| 5.25%, 01/15/16 | 226,000 | 241,770 | ||||||
| 5.95%, 12/15/34 | 82,000 | 82,205 | ||||||
| 2,716,236 | ||||||||
Hotels, Restaurants & Leisure 0.1% | ||||||||
| McDonald’s Corp., 5.35%, 03/01/18 | 240,000 | 266,048 | ||||||
| Yum! Brands, Inc. | ||||||||
| 8.88%, 04/15/11 | 82,000 | 87,419 | ||||||
| 6.88%, 11/15/37 | 400,000 | 450,384 | ||||||
| 803,851 | ||||||||
Household Durables 0.1% | ||||||||
| Black & Decker Corp., 4.75%, 11/01/14 | 160,000 | 169,469 | ||||||
| Fortune Brands, Inc., 5.38%, 01/15/16 | 585,000 | 616,077 | ||||||
| MDC Holdings, Inc., 5.50%, 05/15/13 | 103,000 | 106,642 | ||||||
| Toll Brothers Finance Corp., 6.88%, 11/15/12 | 5,000 | 5,382 | ||||||
| 897,570 | ||||||||
Household Products 0.1% | ||||||||
| Kimberly-Clark Corp. | ||||||||
| 5.63%, 02/15/12 | 205,000 | 221,381 | ||||||
| 4.88%, 08/15/15 | 710,000 | 771,258 | ||||||
| Procter & Gamble Co. (The) | ||||||||
| 4.85%, 12/15/15 | 123,000 | 135,984 | ||||||
| 5.80%, 08/15/34 (f) | 405,000 | 437,669 | ||||||
| 1,566,292 | ||||||||
Industrial Conglomerates 0.1% | ||||||||
| 3M Co., 5.70%, 03/15/37 | 235,000 | 251,223 | ||||||
| General Electric Co., 5.00%, 02/01/13 | 946,000 | 1,021,534 | ||||||
| 1,272,757 | ||||||||
Insurance 0.9% | ||||||||
| ACE INA Holdings, Inc., 5.88%, 06/15/14 | 390,000 | 433,567 | ||||||
| AIG Life Holdings US, Inc., 7.50%, 07/15/25 | 103,000 | 102,067 | ||||||
| AIG SunAmerica Global Financing X, 6.90%, 03/15/32 (b) | 287,000 | 286,004 | ||||||
| Allstate Corp. (The) | ||||||||
| 6.13%, 02/15/12 | 176,000 | 190,132 | ||||||
| 7.50%, 06/15/13 | 425,000 | 487,511 | ||||||
| 6.13%, 12/15/32 | 82,000 | 84,984 | ||||||
| 5.55%, 05/09/35 | 62,000 | 60,762 | ||||||
| 5.95%, 04/01/36 | 82,000 | 84,553 | ||||||
16 Semiannual Report 2010
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Insurance (continued) | ||||||||
| 6.13%, 05/15/37 (a) | $ | 145,000 | $ | 136,300 | ||||
| 6.50%, 05/15/57 (a) | 145,000 | 139,200 | ||||||
| American International Group, Inc. | ||||||||
| 5.05%, 10/01/15 | 103,000 | 97,167 | ||||||
| 5.60%, 10/18/16 | 290,000 | 273,800 | ||||||
| Berkshire Hathaway Finance Corp., 4.85%, 01/15/15 | 1,326,000 | 1,445,121 | ||||||
| Chubb Corp. | ||||||||
| 6.00%, 05/11/37 | 225,000 | 236,807 | ||||||
| 6.38%, 03/29/67 (a) | 300,000 | 300,375 | ||||||
| Genworth Financial, Inc. | ||||||||
| 5.75%, 06/15/14 | 62,000 | 63,652 | ||||||
| 6.50%, 06/15/34 | 144,000 | 129,918 | ||||||
| Hartford Financial Services Group, Inc. | ||||||||
| 4.75%, 03/01/14 | 82,000 | 84,866 | ||||||
| 6.10%, 10/01/41 | 41,000 | 37,639 | ||||||
| Infinity Property & Casualty Corp., Series B, 5.50%, 02/18/14 | 82,000 | 81,748 | ||||||
| Lincoln National Corp., 6.15%, 04/07/36 | 410,000 | 409,447 | ||||||
| Marsh & McLennan Cos., Inc. | ||||||||
| 6.25%, 03/15/12 | 72,000 | 77,334 | ||||||
| 5.75%, 09/15/15 | 327,000 | 350,849 | ||||||
| MetLife, Inc. | ||||||||
| 6.13%, 12/01/11 | 445,000 | 475,458 | ||||||
| 5.50%, 06/15/14 | 185,000 | 201,652 | ||||||
| 5.70%, 06/15/35 | 336,000 | 332,712 | ||||||
| 6.40%, 12/15/36 | 350,000 | 330,750 | ||||||
| Metropolitan Life Global Funding I, 5.13%, 06/10/14 (b) | 480,000 | 519,249 | ||||||
| Nationwide Financial Services, Inc., 6.75%, 05/15/37 (g) | 75,000 | 64,125 | ||||||
| Nationwide Mutual Insurance Co., 5.81%, 12/15/24 (a)(b)(g) | 205,000 | 190,096 | ||||||
| NLV Financial Corp., 7.50%, 08/15/33 (b) | 51,000 | 48,425 | ||||||
| Progressive Corp. (The) | ||||||||
| 6.25%, 12/01/32 | 113,000 | 118,360 | ||||||
| 6.70%, 06/15/37 (a) | 270,000 | 267,560 | ||||||
| Prudential Financial, Inc., 5.10%, 12/14/11 | 515,000 | 540,878 | ||||||
| Prudential Financial, Inc. | ||||||||
| Series B, 5.10%, 09/20/14 | 205,000 | 219,363 | ||||||
| Series B, 5.75%, 07/15/33 | 103,000 | 101,423 | ||||||
| RLI Corp., 5.95%, 01/15/14 | 82,000 | 84,255 | ||||||
| Travelers Cos., Inc. (The) | ||||||||
| 5.75%, 12/15/17 | 340,000 | 373,918 | ||||||
| 6.25%, 03/15/37 (a) | 300,000 | 295,043 | ||||||
| Travelers Property Casualty Corp., 6.38%, 03/15/33 | 133,000 | 145,642 | ||||||
| Western & Southern Financial Group, Inc., 5.75%, 07/15/33 (b) | 103,000 | 89,594 | ||||||
| Willis North America, Inc., 5.63%, 07/15/15 | 123,000 | 127,328 | ||||||
| XL Capital Ltd., 5.25%, 09/15/14 | 541,000 | 565,503 | ||||||
| 10,685,137 | ||||||||
Machinery 0.1% | ||||||||
| Caterpillar, Inc. | ||||||||
| 7.30%, 05/01/31 | 70,000 | 85,373 | ||||||
| 6.05%, 08/15/36 | 123,000 | 133,052 | ||||||
| Deere & Co. | ||||||||
| 6.95%, 04/25/14 | 400,000 | 468,206 | ||||||
| 8.10%, 05/15/30 | 400,000 | 517,757 | ||||||
| Dover Corp., 4.88%, 10/15/15 | 156,000 | 170,767 | ||||||
| Stanley Black & Decker, Inc., 4.90%, 11/01/12 | 92,000 | 98,854 | ||||||
| 1,474,009 | ||||||||
Media 1.0% | ||||||||
| CBS Corp. | ||||||||
| 5.63%, 08/15/12 | 310,000 | 333,171 | ||||||
| 7.88%, 07/30/30 | 55,000 | 62,427 | ||||||
| 5.50%, 05/15/33 | 82,000 | 73,442 | ||||||
| Comcast Cable Holdings LLC, 9.80%, 02/01/12 | 213,000 | 240,883 | ||||||
| Comcast Corp. | ||||||||
| 5.90%, 03/15/16 | 287,000 | 315,680 | ||||||
| 6.50%, 01/15/17 | 507,000 | 567,776 | ||||||
| 5.70%, 07/01/19 | 300,000 | 319,541 | ||||||
| 7.05%, 03/15/33 | 205,000 | 225,350 | ||||||
| 6.50%, 11/15/35 | 70,000 | 73,795 | ||||||
| 6.95%, 08/15/37 | 205,000 | 228,316 | ||||||
| Historic TW, Inc., 6.88%, 06/15/18 | 122,000 | 140,151 | ||||||
| News America Holdings, Inc. | ||||||||
| 9.25%, 02/01/13 | 82,000 | 96,444 | ||||||
| 8.00%, 10/17/16 | 82,000 | 99,406 | ||||||
| News America, Inc. | ||||||||
| 5.30%, 12/15/14 | 433,000 | 475,880 | ||||||
| 7.28%, 06/30/28 | 53,000 | 58,070 | ||||||
| 6.55%, 03/15/33 | 450,000 | 478,274 | ||||||
| 6.20%, 12/15/34 | 170,000 | 174,552 | ||||||
| Omnicom Group, Inc., 5.90%, 04/15/16 | 123,000 | 136,531 | ||||||
| Time Warner Cable, Inc. | ||||||||
| 6.20%, 07/01/13 | 500,000 | 557,246 | ||||||
| 6.75%, 07/01/18 | 415,000 | 470,517 | ||||||
| 8.25%, 04/01/19 | 900,000 | 1,100,033 | ||||||
| 6.75%, 06/15/39 | 500,000 | 540,443 | ||||||
2010 Semiannual Report 17
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Media (continued) | ||||||||
| Time Warner, Inc. | ||||||||
| 6.88%, 05/01/12 | $ | 1,964,000 | $ | 2,161,243 | ||||
| 7.63%, 04/15/31 | 773,000 | 898,255 | ||||||
| 7.70%, 05/01/32 | 648,000 | 760,434 | ||||||
| Viacom, Inc. | ||||||||
| 6.25%, 04/30/16 | 351,000 | 393,841 | ||||||
| 6.88%, 04/30/36 | 226,000 | 247,150 | ||||||
| Walt Disney Co. (The) | ||||||||
| Series B, 6.38%, 03/01/12 | 97,000 | 106,144 | ||||||
| Series B, 6.20%, 06/20/14 | 687,000 | 777,659 | ||||||
| 12,112,654 | ||||||||
Metals & Mining 0.4% | ||||||||
| Alcoa, Inc., 5.87%, 02/23/22 | 335,000 | 322,019 | ||||||
| ArcelorMittal, 6.13%, 06/01/18 | 1,940,000 | 2,091,296 | ||||||
| Barrick Gold Finance Co., 4.88%, 11/15/14 | 1,060,000 | 1,132,058 | ||||||
| BHP Billiton Finance USA Ltd., 5.25%, 12/15/15 | 225,000 | 248,247 | ||||||
| Newmont Mining Corp., 5.88%, 04/01/35 | 164,000 | 163,951 | ||||||
| Placer Dome, Inc., 6.38%, 03/01/33 | 96,000 | 102,559 | ||||||
| Rio Tinto Alcan, Inc. | ||||||||
| 5.00%, 06/01/15 | 205,000 | 216,579 | ||||||
| 5.75%, 06/01/35 | 144,000 | 145,332 | ||||||
| Vale Overseas Ltd., 6.88%, 11/21/36 | 556,000 | 583,704 | ||||||
| 5,005,745 | ||||||||
Multiline Retail 0.1% | ||||||||
| Target Corp. | ||||||||
| 6.00%, 01/15/18 | 300,000 | 343,398 | ||||||
| 7.00%, 07/15/31 | 121,000 | 139,345 | ||||||
| 6.35%, 11/01/32 | 217,000 | 237,369 | ||||||
| 720,112 | ||||||||
Multi-Utilities 0.2% | ||||||||
| Dominion Resources, Inc. | ||||||||
| 5.70%, 09/17/12 | 113,000 | 122,952 | ||||||
| 5.20%, 08/15/19 | 100,000 | 105,169 | ||||||
| Dominion Resources, Inc., Series E, 6.30%, 03/15/33 | 308,000 | 332,290 | ||||||
| Dominion Resources, Inc., Series B, 5.95%, 06/15/35 | 174,000 | 181,448 | ||||||
| DTE Energy Co., 6.35%, 06/01/16 | 287,000 | 315,070 | ||||||
| Puget Sound Energy, Inc., Series A, 5.48%, 06/01/35 | 103,000 | 99,645 | ||||||
| SCANA Corp. | ||||||||
| 6.88%, 05/15/11 | 359,000 | 377,934 | ||||||
| 6.25%, 02/01/12 | 103,000 | 110,391 | ||||||
| Sempra Energy, 6.00%, 10/15/39 | 540,000 | 552,901 | ||||||
| Xcel Energy, Inc. | ||||||||
| 5.61%, 04/01/17 | 173,000 | 185,256 | ||||||
| 6.50%, 07/01/36 | 123,000 | 133,996 | ||||||
| 2,517,052 | ||||||||
Oil, Gas & Consumable Fuels 1.1% | ||||||||
| Anadarko Petroleum Corp., 6.45%, 09/15/36 | 269,000 | 279,438 | ||||||
| Apache Corp. | ||||||||
| 6.25%, 04/15/12 | 160,000 | 174,543 | ||||||
| 7.63%, 07/01/19 | 41,000 | 49,973 | ||||||
| Canadian Natural Resources Ltd., 6.25%, 03/15/38 | 660,000 | 695,172 | ||||||
| Cenovus Energy, Inc., 5.70%, 10/15/19 (b) | 770,000 | 827,492 | ||||||
| Chevron Corp., 3.95%, 03/03/14 | 415,000 | 441,762 | ||||||
| Conoco Funding Co., 6.35%, 10/15/11 | 408,000 | 438,434 | ||||||
| ConocoPhillips | ||||||||
| 4.75%, 10/15/12 | 270,000 | 291,363 | ||||||
| 4.60%, 01/15/15 | 450,000 | 486,619 | ||||||
| 5.90%, 10/15/32 | 123,000 | 130,608 | ||||||
| 6.50%, 02/01/39 | 300,000 | 346,406 | ||||||
| ConocoPhillips Australia Funding Co., 5.50%, 04/15/13 | 226,000 | 249,354 | ||||||
| Devon Energy Corp., 7.95%, 04/15/32 | 250,000 | 321,791 | ||||||
| Devon Financing Corp. ULC, 6.88%, 09/30/11 | 297,000 | 319,602 | ||||||
| EnCana Holdings Finance Corp., 5.80%, 05/01/14 | 791,000 | 878,677 | ||||||
| Hess Corp., 7.30%, 08/15/31 | 196,000 | 228,459 | ||||||
| Kinder Morgan Energy Partners LP | ||||||||
| 6.75%, 03/15/11 | 64,000 | 66,977 | ||||||
| 5.00%, 12/15/13 | 1,000,000 | 1,080,263 | ||||||
| 6.85%, 02/15/20 | 675,000 | 777,357 | ||||||
| 5.80%, 03/15/35 | 144,000 | 140,110 | ||||||
| Marathon Oil Corp., 6.80%, 03/15/32 | 82,000 | 91,751 | ||||||
| Murphy Oil Corp., 6.38%, 05/01/12 | 41,000 | 43,922 | ||||||
| Occidental Petroleum Corp. | ||||||||
| 6.75%, 01/15/12 | 185,000 | 201,760 | ||||||
18 Semiannual Report 2010
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| 7.00%, 11/01/13 | $ | 250,000 | $ | 291,284 | ||||
| Pemex Project Funding Master Trust, 6.63%, 06/15/35 | 226,000 | 223,688 | ||||||
| Petrobras International Finance Co., 5.75%, 01/20/20 | 1,080,000 | 1,096,917 | ||||||
| Plains All American Pipeline LP/PAA Finance Corp., 5.63%, 12/15/13 | 230,000 | 249,249 | ||||||
| PTT PCL, 5.88%, 08/03/35 (b) | 123,000 | 121,331 | ||||||
| Shell International Finance BV, 6.38%, 12/15/38 | 600,000 | 680,020 | ||||||
| Texas Gas Transmission LLC, 4.60%, 06/01/15 | 123,000 | 128,911 | ||||||
| Valero Energy Corp. | ||||||||
| 6.88%, 04/15/12 | 260,000 | 282,373 | ||||||
| 7.50%, 04/15/32 | 82,000 | 88,490 | ||||||
| 6.63%, 06/15/37 | 320,000 | 321,781 | ||||||
| XTO Energy, Inc. | ||||||||
| 5.30%, 06/30/15 | 195,000 | 216,866 | ||||||
| 5.65%, 04/01/16 | 82,000 | 92,504 | ||||||
| 6.50%, 12/15/18 | 140,000 | 164,497 | ||||||
| 6.38%, 06/15/38 | 390,000 | 451,529 | ||||||
| 12,971,273 | ||||||||
Paper & Forest Products 0.2% | ||||||||
| Celulosa Arauco y Constitucion SA, 5.13%, 07/09/13 (f) | 123,000 | 128,665 | ||||||
| International Paper Co. | ||||||||
| 5.85%, 10/30/12 | 30,000 | 32,437 | ||||||
| 5.30%, 04/01/15 | 144,000 | 152,983 | ||||||
| 9.38%, 05/15/19 | 1,515,000 | 1,927,068 | ||||||
| Inversiones CMPC SA, 4.88%, 06/18/13 (b) | 123,000 | 127,985 | ||||||
| 2,369,138 | ||||||||
Pharmaceuticals 1.0% | ||||||||
| Abbott Laboratories | ||||||||
| 5.88%, 05/15/16 | 334,000 | 381,587 | ||||||
| 6.00%, 04/01/39 | 300,000 | 330,395 | ||||||
| AstraZeneca PLC | ||||||||
| 5.40%, 06/01/14 | 155,000 | 172,355 | ||||||
| 5.90%, 09/15/17 | 300,000 | 339,737 | ||||||
| 6.45%, 09/15/37 | 140,000 | 160,457 | ||||||
| Bristol-Myers Squibb Co., 5.25%, 08/15/13 (f) | 825,000 | 910,501 | ||||||
| Eli Lilly & Co. | �� | |||||||
| 6.00%, 03/15/12 | 205,000 | 223,959 | ||||||
| 5.20%, 03/15/17 | 800,000 | 870,137 | ||||||
| 7.13%, 06/01/25 | 82,000 | 96,734 | ||||||
| GlaxoSmithKline Capital, Inc. | ||||||||
| 4.85%, 05/15/13 | 1,500,000 | 1,632,711 | ||||||
| 5.65%, 05/15/18 | 940,000 | 1,041,510 | ||||||
| 5.38%, 04/15/34 | 139,000 | 137,977 | ||||||
| Johnson & Johnson, 4.95%, 05/15/33 | 537,000 | 530,450 | ||||||
| Merck & Co., Inc. | ||||||||
| 4.75%, 03/01/15 | 396,000 | 430,904 | ||||||
| 6.40%, 03/01/28 | 51,000 | 57,889 | ||||||
| 5.95%, 12/01/28 | 113,000 | 121,582 | ||||||
| Novartis Capital Corp., 4.13%, 02/10/14 | 275,000 | 293,388 | ||||||
| Novartis Securities Investment Ltd., 5.13%, 02/10/19 | 330,000 | 354,646 | ||||||
| Pfizer, Inc. | ||||||||
| 5.35%, 03/15/15 | 550,000 | 611,721 | ||||||
| 4.65%, 03/01/18 (f) | 185,000 | 191,662 | ||||||
| 7.20%, 03/15/39 | 375,000 | 465,386 | ||||||
| Pharmacia Corp., 6.60%, 12/01/28 | 123,000 | 138,612 | ||||||
| Schering-Plough Corp., 5.30%, 12/01/13 | 800,000 | 895,296 | ||||||
| Teva Pharmaceutical Finance Co. LLC, 6.15%, 02/01/36 | 98,000 | 105,727 | ||||||
| Wyeth | ||||||||
| 5.50%, 02/01/14 | 472,000 | 523,609 | ||||||
| 5.50%, 02/15/16 | 241,000 | 270,065 | ||||||
| 6.50%, 02/01/34 | 144,000 | 164,616 | ||||||
| 11,453,613 | ||||||||
Real Estate Investment Trusts (REITs) 0.3% | ||||||||
| AvalonBay Communities, Inc., 6.63%, 09/15/11 | 28,000 | 29,825 | ||||||
| Boston Properties LP, 5.00%, 06/01/15 | 360,000 | 376,201 | ||||||
| Camden Property Trust, 5.00%, 06/15/15 | 103,000 | 103,565 | ||||||
| ERP Operating LP | ||||||||
| 5.25%, 09/15/14 | 278,000 | 294,487 | ||||||
| 5.38%, 08/01/16 | 205,000 | 216,212 | ||||||
| HCP, Inc. | ||||||||
| 6.45%, 06/25/12 | 39,000 | 41,754 | ||||||
| 6.00%, 01/30/17 | 328,000 | 334,942 | ||||||
| Health Care REIT, Inc., 6.00%, 11/15/13 | 123,000 | 132,734 | ||||||
| Hospitality Properties Trust, 6.75%, 02/15/13 | 525,000 | 556,032 | ||||||
| HRPT Properties Trust, 5.75%, 02/15/14 | 123,000 | 126,651 | ||||||
| Liberty Property LP, 7.25%, 03/15/11 | 27,000 | 28,132 | ||||||
| Simon Property Group LP | ||||||||
| 5.10%, 06/15/15 | 294,000 | 307,954 | ||||||
| 6.10%, 05/01/16 | 287,000 | 309,448 | ||||||
2010 Semiannual Report 19
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
Corporate Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Real Estate Investment Trusts (continued) | ||||||||
| Washington Real Estate Investment Trust, 5.25%, 01/15/14 | $ | 82,000 | $ | 85,639 | ||||
| Westfield Capital Corp. Ltd., 5.13%, 11/15/14 (b) | 107,000 | 112,205 | ||||||
| 3,055,781 | ||||||||
Road & Rail 0.2% | ||||||||
| Burlington Northern Santa Fe Corp., 7.95%, 08/15/30 | 144,000 | 179,417 | ||||||
| CSX Corp. | ||||||||
| 6.75%, 03/15/11 | 92,000 | 96,369 | ||||||
| 5.50%, 08/01/13 | 308,000 | 335,181 | ||||||
| Norfolk Southern Corp. | ||||||||
| 5.59%, 05/17/25 | 59,000 | 59,850 | ||||||
| 7.25%, 02/15/31 | 87,000 | 103,909 | ||||||
| Union Pacific Corp. | ||||||||
| 5.13%, 02/15/14 | 1,000,000 | 1,079,677 | ||||||
| 5.38%, 06/01/33 | 43,000 | 40,808 | ||||||
| 6.25%, 05/01/34 | 164,000 | 175,492 | ||||||
| 2,070,703 | ||||||||
Software 0.2% | ||||||||
| Microsoft Corp., 2.95%, 06/01/14 | 300,000 | 308,243 | ||||||
| Oracle Corp. | ||||||||
| 3.75%, 07/08/14 | 905,000 | 949,928 | ||||||
| 5.25%, 01/15/16 | 548,000 | 608,998 | ||||||
| 5.00%, 07/08/19 | 100,000 | 106,583 | ||||||
| 1,973,752 | ||||||||
Specialty Retail 0.1% | ||||||||
| Home Depot, Inc. | ||||||||
| 5.25%, 12/16/13 | 200,000 | 218,399 | ||||||
| 5.40%, 03/01/16 | 410,000 | 449,712 | ||||||
| Lowe’s Cos., Inc., 6.50%, 03/15/29 | 164,000 | 185,637 | ||||||
| 853,748 | ||||||||
Thrifts & Mortgage Finance 0.1% | ||||||||
| Countrywide Home Loans, Inc., Series L, 4.00%, 03/22/11 | 494,000 | 506,246 | ||||||
| Golden West Financial Corp., 4.75%, 10/01/12 | 109,000 | 115,097 | ||||||
| 621,343 | ||||||||
Tobacco 0.2% | ||||||||
| Altria Group, Inc. | ||||||||
| 9.70%, 11/10/18 | 600,000 | 754,554 | ||||||
| 9.25%, 08/06/19 | 400,000 | 494,113 | ||||||
| 10.20%, 02/06/39 | 420,000 | 578,619 | ||||||
| Philip Morris International, Inc. | ||||||||
| 5.65%, 05/16/18 | 300,000 | 328,105 | ||||||
| 6.38%, 05/16/38 | 150,000 | 166,798 | ||||||
| 2,322,189 | ||||||||
Wireless Telecommunication Services 0.2% | ||||||||
| America Movil SAB de CV | ||||||||
| 5.75%, 01/15/15 | 155,000 | 171,091 | ||||||
| 6.38%, 03/01/35 | 123,000 | 126,343 | ||||||
| AT&T Mobility LLC, 7.13%, 12/15/31 | 287,000 | 330,412 | ||||||
| New Cingular Wireless Services, Inc. | ||||||||
| 8.13%, 05/01/12 | 31,000 | 35,025 | ||||||
| 8.75%, 03/01/31 | 224,000 | 295,390 | ||||||
| Rogers Communications, Inc., 7.25%, 12/15/12 | 540,000 | 610,623 | ||||||
| Vodafone Group PLC | ||||||||
| 5.00%, 12/16/13 | 461,000 | 499,098 | ||||||
| 4.15%, 06/10/14 | 530,000 | 554,134 | ||||||
| 7.88%, 02/15/30 | 144,000 | 174,451 | ||||||
| 6.15%, 02/27/37 | 75,000 | 78,029 | ||||||
| 2,874,596 | ||||||||
Total Corporate Bonds (cost $209,865,619) | 222,673,700 | |||||||
| Municipal Bonds 0.6% | ||||||||
California 0.2% | ||||||||
| State of California, Series 2009, 7.55%, 04/01/39 | 2,025,000 | 2,235,884 | ||||||
Illinois 0.2% | ||||||||
| State of Illinois, Series 2003, 5.10%, 06/01/33 | 2,835,000 | 2,451,424 | ||||||
New Jersey 0.1% | ||||||||
| New Jersey State Turnpike Authority, Series F, 7.41%, 01/01/40 | 715,000 | 858,772 | ||||||
New York 0.1% | ||||||||
| Metropolitan Transportation Authority, Series C, 7.34%, 11/15/39 | 105,000 | 122,815 | ||||||
20 Semiannual Report 2010
Municipal Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
New York (continued) | ||||||||
| Port Authority of New York & New Jersey, Series 2009, 6.04%, 12/01/29 | $ | 460,000 | $ | 490,208 | ||||
| 613,023 | ||||||||
Texas 0.0%† | ||||||||
| City of Dallas, 5.50%, 02/15/24 (c) | 492,000 | 492,044 | ||||||
Total Municipal Bonds (cost $6,450,438) | 6,651,147 | |||||||
| U.S. Government Mortgage Backed Agencies 35.9% | ||||||||
| Fannie Mae Pool | ||||||||
| Pool# 961563 | ||||||||
| 5.00%, 02/01/23 | 1,083,051 | 1,144,772 | ||||||
| Pool# 969977 | ||||||||
| 5.00%, 05/01/23 | 6,252,252 | 6,608,557 | ||||||
| Pool# 990972 | ||||||||
| 6.00%, 09/01/23 | 579,424 | 623,810 | ||||||
| Pool# AA2549 | ||||||||
| 4.00%, 04/01/24 | 6,635,178 | 6,758,479 | ||||||
| Pool# 935348 | ||||||||
| 5.50%, 06/01/24 | 426,139 | 455,877 | ||||||
| Pool# AC1374 | ||||||||
| 4.00%, 08/01/24 | 772,878 | 787,241 | ||||||
| Pool# AC1529 | ||||||||
| 4.50%, 09/01/24 | 545,439 | 567,677 | ||||||
| Pool# AC5377 | ||||||||
| 4.50%, 10/01/24 | 1,353,325 | 1,408,501 | ||||||
| Pool# 560868 | ||||||||
| 7.50%, 02/01/31 | 1,860 | 2,102 | ||||||
| Pool# 607212 | ||||||||
| 7.50%, 10/01/31 | 35,809 | 40,478 | ||||||
| Pool# 607559 | ||||||||
| 6.50%, 11/01/31 | 1,660 | 1,829 | ||||||
| Pool# 607632 | ||||||||
| 6.50%, 11/01/31 | 302 | 332 | ||||||
| Pool# 661664 | ||||||||
| 7.50%, 09/01/32 | 20,268 | 22,921 | ||||||
| Pool# 656559 | ||||||||
| 6.50%, 02/01/33 | 134,055 | 147,700 | ||||||
| Pool# 694846 | ||||||||
| 6.50%, 04/01/33 | 23,226 | 25,531 | ||||||
| Pool# 555421 | ||||||||
| 5.00%, 05/01/33 | 22,280,670 | 23,265,197 | ||||||
| Pool# 254767 | ||||||||
| 5.50%, 06/01/33 | 6,907,354 | 7,331,581 | ||||||
| Pool# 750229 | ||||||||
| 6.50%, 10/01/33 | 134,061 | 147,371 | ||||||
| Pool# 725424 | ||||||||
| 5.50%, 04/01/34 | 8,449,374 | 8,968,306 | ||||||
| Pool# 788027 | ||||||||
| 6.50%, 09/01/34 | 108,175 | 118,374 | ||||||
| Pool# 735141 | ||||||||
| 5.50%, 01/01/35 | 4,430,051 | 4,693,823 | ||||||
| Pool# 735227 | ||||||||
| 5.50%, 02/01/35 | 4,698,226 | 4,977,966 | ||||||
| Pool# 256023 | ||||||||
| 6.00%, 12/01/35 | 3,552,345 | 3,801,268 | ||||||
| Pool# 888596 | ||||||||
| 6.50%, 07/01/37 | 7,207,157 | 7,798,820 | ||||||
| Pool# 995050 | ||||||||
| 6.00%, 09/01/37 | 33,352,711 | 35,606,449 | ||||||
| Pool# 955194 | ||||||||
| 7.00%, 11/01/37 | 2,374,618 | 2,625,552 | ||||||
| Pool# 889072 | ||||||||
| 6.50%, 12/01/37 | 1,113,683 | 1,205,109 | ||||||
| Pool# 970320 | ||||||||
| 5.50%, 02/01/38 | 6,036,513 | 6,366,358 | ||||||
| Pool# AA6013 | ||||||||
| 4.50%, 05/01/39 | 8,275,664 | 8,353,335 | ||||||
| Pool# 190396 | ||||||||
| 4.50%, 06/01/39 | 8,680,792 | 8,762,265 | ||||||
| Pool# AA9611 | ||||||||
| 4.00%, 07/01/39 | 4,409,913 | 4,317,811 | ||||||
| Pool# AA9393 | ||||||||
| 4.50%, 07/01/39 | 14,689,130 | 14,826,993 | ||||||
| Pool# AA9809 | ||||||||
| 4.50%, 07/01/39 | 10,740,221 | 10,841,022 | ||||||
| Pool# 994002 | ||||||||
| 4.00%, 08/01/39 | 3,542,147 | 3,468,168 | ||||||
| Pool# AC1454 | ||||||||
| 4.00%, 08/01/39 | 4,914,227 | 4,811,592 | ||||||
| Pool# AC3486 | ||||||||
| 4.50%, 08/01/39 | 5,860,932 | 5,923,265 | ||||||
| Pool# AC1921 | ||||||||
| 4.00%, 09/01/39 | 2,951,340 | 2,889,700 | ||||||
| Pool# AC2651 | ||||||||
| 4.00%, 10/01/39 | 1,088,310 | 1,065,580 | ||||||
| Pool# AC8512 | ||||||||
| 4.50%, 12/01/39 | 7,820,278 | 7,893,675 | ||||||
| Pool# AD2888 | ||||||||
| 4.50%, 04/01/40 | 3,194,448 | 3,224,429 | ||||||
| Fannie Mae Pool TBA | ||||||||
| 5.50%, 05/25/25 | 22,000,000 | 23,509,068 | ||||||
| 4.50%, 05/12/39 | 3,400,000 | 3,427,625 | ||||||
| 5.00%, 05/25/40 | 11,900,000 | 12,316,500 | ||||||
| Federal Home Loan Mortgage Corp. 4.50%, 05/01/19 | 12,900,000 | 13,407,938 | ||||||
| Freddie Mac Gold Pool | ||||||||
| Pool# E00394 | ||||||||
| 7.50%, 09/01/10 | 966 | 980 | ||||||
| Pool# M80898 | ||||||||
| 4.50%, 02/01/11 | 134,146 | 137,846 | ||||||
2010 Semiannual Report 21
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Freddie Mac Gold Pool (continued) | ||||||||
| Pool# M80904 | ||||||||
| 4.50%, 03/01/11 | $ | 88,460 | $ | 90,900 | ||||
| Pool# M80917 | ||||||||
| 4.50%, 05/01/11 | 22,709 | 22,809 | ||||||
| Pool# M80926 | ||||||||
| 4.50%, 07/01/11 | 82,408 | 84,323 | ||||||
| Pool# M80934 | ||||||||
| 4.50%, 08/01/11 | 113,829 | 116,969 | ||||||
| Pool# G10940 | ||||||||
| 6.50%, 11/01/11 | 1,311 | 1,321 | ||||||
| Pool# G11130 | ||||||||
| 6.00%, 12/01/11 | 10,632 | 10,901 | ||||||
| Pool# M80981 | ||||||||
| 4.50%, 07/01/12 | 51,975 | 53,746 | ||||||
| Pool# E00507 | ||||||||
| 7.50%, 09/01/12 | 691 | 734 | ||||||
| Pool# G10749 | ||||||||
| 6.00%, 10/01/12 | 15,745 | 16,866 | ||||||
| Pool# M81009 | ||||||||
| 4.50%, 02/01/13 | 27,959 | 28,897 | ||||||
| Pool# E69050 | ||||||||
| 6.00%, 02/01/13 | 14,478 | 15,599 | ||||||
| Pool# E72896 | ||||||||
| 7.00%, 10/01/13 | 4,946 | 5,281 | ||||||
| Pool# G11612 | ||||||||
| 6.00%, 04/01/14 | 5,392 | 5,528 | ||||||
| Pool# E00677 | ||||||||
| 6.00%, 06/01/14 | 33,291 | 35,706 | ||||||
| Pool# E00802 | ||||||||
| 7.50%, 02/01/15 | 19,662 | 21,229 | ||||||
| Pool# G11001 | ||||||||
| 6.50%, 03/01/15 | 11,798 | 12,721 | ||||||
| Pool# G11003 | ||||||||
| 7.50%, 04/01/15 | 941 | 1,015 | ||||||
| Pool# G11164 | ||||||||
| 7.00%, 05/01/15 | 2,940 | 3,177 | ||||||
| Pool# E81396 | ||||||||
| 7.00%, 10/01/15 | 668 | 724 | ||||||
| Pool# E81394 | ||||||||
| 7.50%, 10/01/15 | 5,713 | 6,202 | ||||||
| Pool# E84097 | ||||||||
| 6.50%, 12/01/15 | 2,353 | 2,537 | ||||||
| Pool# E00938 | ||||||||
| 7.00%, 01/01/16 | 7,408 | 8,027 | ||||||
| Pool# E82132 | ||||||||
| 7.00%, 01/01/16 | 1,571 | 1,702 | ||||||
| Pool# E82815 | ||||||||
| 6.00%, 03/01/16 | 5,887 | 6,346 | ||||||
| Pool# E83231 | ||||||||
| 6.00%, 04/01/16 | 1,672 | 1,804 | ||||||
| Pool# E83233 | ||||||||
| 6.00%, 04/01/16 | 4,483 | 4,838 | ||||||
| Pool# G11972 | ||||||||
| 6.00%, 04/01/16 | 97,180 | 104,767 | ||||||
| Pool# E83046 | ||||||||
| 7.00%, 04/01/16 | 1,043 | 1,130 | ||||||
| Pool# E00975 | ||||||||
| 6.00%, 05/01/16 | 25,049 | 26,983 | ||||||
| Pool# E83355 | ||||||||
| 6.00%, 05/01/16 | 6,046 | 6,525 | ||||||
| Pool# E83636 | ||||||||
| 6.00%, 05/01/16 | 10,872 | 11,734 | ||||||
| Pool# E83933 | ||||||||
| 6.50%, 05/01/16 | 462 | 499 | ||||||
| Pool# E00985 | ||||||||
| 6.00%, 06/01/16 | 13,561 | 14,611 | ||||||
| Pool# E00987 | ||||||||
| 6.50%, 06/01/16 | 11,707 | 12,627 | ||||||
| Pool# E84236 | ||||||||
| 6.50%, 06/01/16 | 3,277 | 3,542 | ||||||
| Pool# E00996 | ||||||||
| 6.50%, 07/01/16 | 1,530 | 1,651 | ||||||
| Pool# E84912 | ||||||||
| 6.50%, 08/01/16 | 7,070 | 7,640 | ||||||
| Pool# E85117 | ||||||||
| 6.50%, 08/01/16 | 4,278 | 4,624 | ||||||
| Pool# E85387 | ||||||||
| 6.00%, 09/01/16 | 13,034 | 14,068 | ||||||
| Pool# E85800 | ||||||||
| 6.50%, 10/01/16 | 3,355 | 3,626 | ||||||
| Pool# E86183 | ||||||||
| 6.00%, 11/01/16 | 2,191 | 2,365 | ||||||
| Pool# E01083 | ||||||||
| 7.00%, 11/01/16 | 3,363 | 3,647 | ||||||
| Pool# G11207 | ||||||||
| 7.00%, 11/01/16 | 7,902 | 8,564 | ||||||
| Pool# E86746 | ||||||||
| 5.50%, 12/01/16 | 30,036 | 32,320 | ||||||
| Pool# E86533 | ||||||||
| 6.00%, 12/01/16 | 5,185 | 5,596 | ||||||
| Pool# E01095 | ||||||||
| 6.00%, 01/01/17 | 5,911 | 6,378 | ||||||
| Pool# E87584 | ||||||||
| 6.00%, 01/01/17 | 4,563 | 4,924 | ||||||
| Pool# E86995 | ||||||||
| 6.50%, 01/01/17 | 11,972 | 12,938 | ||||||
| Pool# E87291 | ||||||||
| 6.50%, 01/01/17 | 18,746 | 20,259 | ||||||
| Pool# E87446 | ||||||||
| 6.50%, 01/01/17 | 3,366 | 3,642 | ||||||
| Pool# E88076 | ||||||||
| 6.00%, 02/01/17 | 5,643 | 6,098 | ||||||
| Pool# E01127 | ||||||||
| 6.50%, 02/01/17 | 9,396 | 10,173 | ||||||
| Pool# E88055 | ||||||||
| 6.50%, 02/01/17 | 36,919 | 39,956 | ||||||
| Pool# E88106 | ||||||||
| 6.50%, 02/01/17 | 19,628 | 21,243 | ||||||
22 Semiannual Report 2010
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Freddie Mac Gold Pool (continued) | ||||||||
| Pool# E01137 | ||||||||
| 6.00%, 03/01/17 | $ | 8,888 | $ | 9,595 | ||||
| Pool# E88134 | ||||||||
| 6.00%, 03/01/17 | 1,964 | 2,122 | ||||||
| Pool# E88474 | ||||||||
| 6.00%, 03/01/17 | 8,128 | 8,782 | ||||||
| Pool# E88768 | ||||||||
| 6.00%, 03/01/17 | 19,693 | 21,254 | ||||||
| Pool# E01138 | ||||||||
| 6.50%, 03/01/17 | 5,361 | 5,803 | ||||||
| Pool# E01139 | ||||||||
| 6.00%, 04/01/17 | 41,022 | 44,305 | ||||||
| Pool# E88729 | ||||||||
| 6.00%, 04/01/17 | 7,660 | 8,277 | ||||||
| Pool# E89149 | ||||||||
| 6.00%, 04/01/17 | 11,076 | 11,969 | ||||||
| Pool# E89151 | ||||||||
| 6.00%, 04/01/17 | 6,739 | 7,282 | ||||||
| Pool# E89217 | ||||||||
| 6.00%, 04/01/17 | 7,328 | 7,918 | ||||||
| Pool# E89222 | ||||||||
| 6.00%, 04/01/17 | 41,439 | 44,777 | ||||||
| Pool# E89347 | ||||||||
| 6.00%, 04/01/17 | 2,480 | 2,680 | ||||||
| Pool# E89496 | ||||||||
| 6.00%, 04/01/17 | 6,399 | 6,915 | ||||||
| Pool# E89203 | ||||||||
| 6.50%, 04/01/17 | 4,531 | 4,904 | ||||||
| Pool# E01140 | ||||||||
| 6.00%, 05/01/17 | 35,322 | 38,165 | ||||||
| Pool# E89530 | ||||||||
| 6.00%, 05/01/17 | 26,454 | 28,585 | ||||||
| Pool# E89746 | ||||||||
| 6.00%, 05/01/17 | 58,193 | 62,881 | ||||||
| Pool# E89788 | ||||||||
| 6.00%, 05/01/17 | 5,823 | 6,292 | ||||||
| Pool# E89909 | ||||||||
| 6.00%, 05/01/17 | 8,878 | 9,593 | ||||||
| Pool# G11409 | ||||||||
| 6.00%, 05/01/17 | 54,781 | 59,126 | ||||||
| Pool# E01156 | ||||||||
| 6.50%, 05/01/17 | 14,421 | 15,608 | ||||||
| Pool# E89924 | ||||||||
| 6.50%, 05/01/17 | 34,535 | 37,376 | ||||||
| Pool# B15071 | ||||||||
| 6.00%, 06/01/17 | 112,580 | 121,509 | ||||||
| Pool# E01157 | ||||||||
| 6.00%, 06/01/17 | 25,461 | 27,521 | ||||||
| Pool# E90194 | ||||||||
| 6.00%, 06/01/17 | 6,765 | 7,310 | ||||||
| Pool# E90227 | ||||||||
| 6.00%, 06/01/17 | 6,069 | 6,558 | ||||||
| Pool# E90313 | ||||||||
| 6.00%, 06/01/17 | 2,951 | 3,188 | ||||||
| Pool# E90591 | ||||||||
| 5.50%, 07/01/17 | 34,774 | 37,505 | ||||||
| Pool# E90594 | ||||||||
| 6.00%, 07/01/17 | 23,065 | 24,923 | ||||||
| Pool# E90645 | ||||||||
| 6.00%, 07/01/17 | 39,724 | 42,924 | ||||||
| Pool# E90667 | ||||||||
| 6.00%, 07/01/17 | 6,681 | 7,219 | ||||||
| Pool# E01186 | ||||||||
| 5.50%, 08/01/17 | 79,698 | 85,598 | ||||||
| Pool# E01205 | ||||||||
| 6.50%, 08/01/17 | 11,391 | 12,324 | ||||||
| Pool# G11295 | ||||||||
| 5.50%, 09/01/17 | 52,062 | 56,151 | ||||||
| Pool# G11458 | ||||||||
| 6.00%, 09/01/17 | 15,698 | 16,914 | ||||||
| Pool# G11434 | ||||||||
| 6.50%, 01/01/18 | 14,747 | 15,937 | ||||||
| Pool# E01311 | ||||||||
| 5.50%, 02/01/18 | 893,375 | 960,392 | ||||||
| Pool# G11399 | ||||||||
| 5.50%, 04/01/18 | 74,810 | 80,498 | ||||||
| Pool# B10210 | ||||||||
| 5.50%, 10/01/18 | 161,156 | 173,913 | ||||||
| Pool# B10653 | ||||||||
| 5.50%, 11/01/18 | 112,217 | 121,100 | ||||||
| Pool# B11548 | ||||||||
| 5.50%, 12/01/18 | 66,741 | 72,024 | ||||||
| Pool# G11531 | ||||||||
| 5.50%, 02/01/19 | 37,240 | 40,187 | ||||||
| Pool# B12908 | ||||||||
| 5.50%, 03/01/19 | 53,229 | 57,409 | ||||||
| Pool# E01604 | ||||||||
| 5.50%, 03/01/19 | 70,561 | 76,008 | ||||||
| Pool# B13430 | ||||||||
| 5.50%, 04/01/19 | 60,806 | 65,582 | ||||||
| Pool# B13600 | ||||||||
| 5.50%, 04/01/19 | 51,646 | 55,702 | ||||||
| Pool# B15396 | ||||||||
| 5.50%, 06/01/19 | 83,341 | 89,886 | ||||||
| Pool# G18007 | ||||||||
| 6.00%, 07/01/19 | 33,976 | 36,756 | ||||||
| Pool# G18006 | ||||||||
| 5.50%, 08/01/19 | 61,103 | 65,902 | ||||||
| Pool# B16087 | ||||||||
| 6.00%, 08/01/19 | 60,042 | 64,954 | ||||||
| Pool# G18022 | ||||||||
| 5.50%, 11/01/19 | 134,699 | 145,278 | ||||||
| Pool# B14288 | ||||||||
| 5.50%, 12/01/19 | 72,489 | 78,182 | ||||||
| Pool# B18437 | ||||||||
| 5.50%, 05/01/20 | 66,867 | 71,993 | ||||||
| Pool# G18062 | ||||||||
| 6.00%, 06/01/20 | 56,229 | 60,794 | ||||||
2010 Semiannual Report 23
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Freddie Mac Gold Pool (continued) | ||||||||
| Pool# J02325 | ||||||||
| 5.50%, 07/01/20 | $ | 110,467 | $ | 118,936 | ||||
| Pool# J00718 | ||||||||
| 5.00%, 12/01/20 | 523,802 | 558,563 | ||||||
| Pool# J00935 | ||||||||
| 5.00%, 12/01/20 | 74,888 | 79,858 | ||||||
| Pool# J00854 | ||||||||
| 5.00%, 01/01/21 | 274,870 | 293,112 | ||||||
| Pool# J00871 | ||||||||
| 5.00%, 01/01/21 | 117,732 | 125,545 | ||||||
| Pool# J01049 | ||||||||
| 5.00%, 01/01/21 | 1,125,856 | 1,200,571 | ||||||
| Pool# G18096 | ||||||||
| 5.50%, 01/01/21 | 46,033 | 49,561 | ||||||
| Pool# J00855 | ||||||||
| 5.50%, 01/01/21 | 143,077 | 154,046 | ||||||
| Pool# J01189 | ||||||||
| 5.00%, 02/01/21 | 91,501 | 97,173 | ||||||
| Pool# J01279 | ||||||||
| 5.50%, 02/01/21 | 103,324 | 110,922 | ||||||
| Pool# J01256 | ||||||||
| 5.00%, 03/01/21 | 70,669 | 75,049 | ||||||
| Pool# J01414 | ||||||||
| 5.00%, 03/01/21 | 60,345 | 64,086 | ||||||
| Pool# J01576 | ||||||||
| 5.00%, 04/01/21 | 312,403 | 331,768 | ||||||
| Pool# J01570 | ||||||||
| 5.50%, 04/01/21 | 70,744 | 75,946 | ||||||
| Pool# J01633 | ||||||||
| 5.50%, 04/01/21 | 283,286 | 304,117 | ||||||
| Pool# J01757 | ||||||||
| 5.00%, 05/01/21 | 122,937 | 130,558 | ||||||
| Pool# J01771 | ||||||||
| 5.00%, 05/01/21 | 44,609 | 47,374 | ||||||
| Pool# J01833 | ||||||||
| 5.00%, 05/01/21 | 56,341 | 59,834 | ||||||
| Pool# J01879 | ||||||||
| 5.00%, 05/01/21 | 102,424 | 108,773 | ||||||
| Pool# J06015 | ||||||||
| 5.00%, 05/01/21 | 142,046 | 150,851 | ||||||
| Pool# J05950 | ||||||||
| 5.50%, 05/01/21 | 382,723 | 410,866 | ||||||
| Pool# G18122 | ||||||||
| 5.00%, 06/01/21 | 101,610 | 107,909 | ||||||
| Pool# G18123 | ||||||||
| 5.50%, 06/01/21 | 161,769 | 173,664 | ||||||
| Pool# J01980 | ||||||||
| 6.00%, 06/01/21 | 84,697 | 91,414 | ||||||
| Pool# J03074 | ||||||||
| 5.00%, 07/01/21 | 97,023 | 103,037 | ||||||
| Pool# J03028 | ||||||||
| 5.50%, 07/01/21 | 68,896 | 73,963 | ||||||
| Pool# G12245 | ||||||||
| 6.00%, 07/01/21 | 59,775 | 64,516 | ||||||
| Pool# G12310 | ||||||||
| 5.50%, 08/01/21 | 44,607 | 47,887 | ||||||
| Pool# G12348 | ||||||||
| 6.00%, 08/01/21 | 106,642 | 115,101 | ||||||
| Pool# G12412 | ||||||||
| 5.50%, 11/01/21 | 57,898 | 62,156 | ||||||
| Pool# C00351 | ||||||||
| 8.00%, 07/01/24 | 1,294 | 1,488 | ||||||
| Pool# D60780 | ||||||||
| 8.00%, 06/01/25 | 3,361 | 3,863 | ||||||
| Pool# D64617 | ||||||||
| 8.00%, 10/01/25 | 743 | 734 | ||||||
| Pool# D82854 | ||||||||
| 7.00%, 10/01/27 | 3,284 | 3,679 | ||||||
| Pool# C00566 | ||||||||
| 7.50%, 12/01/27 | 5,040 | 5,729 | ||||||
| Pool# C00678 | ||||||||
| 7.00%, 11/01/28 | 7,357 | 8,235 | ||||||
| Pool# C18271 | ||||||||
| 7.00%, 11/01/28 | 3,976 | 4,451 | ||||||
| Pool# C00836 | ||||||||
| 7.00%, 07/01/29 | 2,913 | 3,259 | ||||||
| Pool# A16201 | ||||||||
| 7.00%, 08/01/29 | 14,715 | 16,464 | ||||||
| Pool# C31282 | ||||||||
| 7.00%, 09/01/29 | 506 | 566 | ||||||
| Pool# C31285 | ||||||||
| 7.00%, 09/01/29 | 6,861 | 7,677 | ||||||
| Pool# A18212 | ||||||||
| 7.00%, 11/01/29 | 91,691 | 102,588 | ||||||
| Pool# C32914 | ||||||||
| 8.00%, 11/01/29 | 4,030 | 4,632 | ||||||
| Pool# C37436 | ||||||||
| 8.00%, 01/01/30 | 4,428 | 5,090 | ||||||
| Pool# C36306 | ||||||||
| 7.00%, 02/01/30 | 2,088 | 2,335 | ||||||
| Pool# C36429 | ||||||||
| 7.00%, 02/01/30 | 4,214 | 4,713 | ||||||
| Pool# C00921 | ||||||||
| 7.50%, 02/01/30 | 4,204 | 4,789 | ||||||
| Pool# G01108 | ||||||||
| 7.00%, 04/01/30 | 2,313 | 2,588 | ||||||
| Pool# C37703 | ||||||||
| 7.50%, 04/01/30 | 3,040 | 3,463 | ||||||
| Pool# C41561 | ||||||||
| 8.00%, 08/01/30 | 1,867 | 2,145 | ||||||
| Pool# C01051 | ||||||||
| 8.00%, 09/01/30 | 7,574 | 8,451 | ||||||
| Pool# C43550 | ||||||||
| 7.00%, 10/01/30 | 7,579 | 8,477 | ||||||
| Pool# C44017 | ||||||||
| 7.50%, 10/01/30 | 693 | 790 | ||||||
| Pool# C43967 | ||||||||
| 8.00%, 10/01/30 | 34,344 | 39,474 | ||||||
24 Semiannual Report 2010
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Freddie Mac Gold Pool (continued) | ||||||||
| Pool# C44978 | ||||||||
| 7.00%, 11/01/30 | $ | 1,505 | $ | 1,683 | ||||
| Pool# C44957 | ||||||||
| 8.00%, 11/01/30 | 4,005 | 4,603 | ||||||
| Pool# C01106 | ||||||||
| 7.00%, 12/01/30 | 36,963 | 41,343 | ||||||
| Pool# C01103 | ||||||||
| 7.50%, 12/01/30 | 3,410 | 3,884 | ||||||
| Pool# C01116 | ||||||||
| 7.50%, 01/01/31 | 3,181 | 3,624 | ||||||
| Pool# C46932 | ||||||||
| 7.50%, 01/01/31 | 4,968 | 5,660 | ||||||
| Pool# C47287 | ||||||||
| 7.50%, 02/01/31 | 4,514 | 5,142 | ||||||
| Pool# C48851 | ||||||||
| 7.00%, 03/01/31 | 6,632 | 7,396 | ||||||
| Pool# G01217 | ||||||||
| 7.00%, 03/01/31 | 32,985 | 36,893 | ||||||
| Pool# C48206 | ||||||||
| 7.50%, 03/01/31 | 3,928 | 4,468 | ||||||
| Pool# C53324 | ||||||||
| 7.00%, 06/01/31 | 8,392 | 9,358 | ||||||
| Pool# C01209 | ||||||||
| 8.00%, 06/01/31 | 1,994 | 2,292 | ||||||
| Pool# C54792 | ||||||||
| 7.00%, 07/01/31 | 35,049 | 39,087 | ||||||
| Pool# C55071 | ||||||||
| 7.50%, 07/01/31 | 595 | 678 | ||||||
| Pool# G01309 | ||||||||
| 7.00%, 08/01/31 | 8,176 | 9,118 | ||||||
| Pool# C01222 | ||||||||
| 7.00%, 09/01/31 | 6,088 | 6,790 | ||||||
| Pool# G01311 | ||||||||
| 7.00%, 09/01/31 | 48,988 | 54,791 | ||||||
| Pool# G01315 | ||||||||
| 7.00%, 09/01/31 | 1,902 | 2,127 | ||||||
| Pool# C58647 | ||||||||
| 7.00%, 10/01/31 | 2,299 | 2,564 | ||||||
| Pool# C58694 | ||||||||
| 7.00%, 10/01/31 | 13,264 | 14,792 | ||||||
| Pool# C60012 | ||||||||
| 7.00%, 11/01/31 | 1,711 | 1,908 | ||||||
| Pool# C61298 | ||||||||
| 8.00%, 11/01/31 | 5,058 | 5,813 | ||||||
| Pool# C61105 | ||||||||
| 7.00%, 12/01/31 | 5,480 | 6,111 | ||||||
| Pool# C01305 | ||||||||
| 7.50%, 12/01/31 | 3,713 | 4,232 | ||||||
| Pool# C62218 | ||||||||
| 7.00%, 01/01/32 | 5,378 | 5,998 | ||||||
| Pool# C63171 | ||||||||
| 7.00%, 01/01/32 | 18,933 | 21,114 | ||||||
| Pool# C64121 | ||||||||
| 7.50%, 02/01/32 | 5,526 | 6,298 | ||||||
| Pool# C01345 | ||||||||
| 7.00%, 04/01/32 | 26,493 | 29,531 | ||||||
| Pool# C66744 | ||||||||
| 7.00%, 04/01/32 | 948 | 1,057 | ||||||
| Pool# G01391 | ||||||||
| 7.00%, 04/01/32 | 80,168 | 89,666 | ||||||
| Pool# C65717 | ||||||||
| 7.50%, 04/01/32 | 7,615 | 8,675 | ||||||
| Pool# C01370 | ||||||||
| 8.00%, 04/01/32 | 4,732 | 5,422 | ||||||
| Pool# C66916 | ||||||||
| 7.00%, 05/01/32 | 22,058 | 24,587 | ||||||
| Pool# C67235 | ||||||||
| 7.00%, 05/01/32 | 47,438 | 52,876 | ||||||
| Pool# C01381 | ||||||||
| 8.00%, 05/01/32 | 33,298 | 38,280 | ||||||
| Pool# C68290 | ||||||||
| 7.00%, 06/01/32 | 8,800 | 9,809 | ||||||
| Pool# C68300 | ||||||||
| 7.00%, 06/01/32 | 38,668 | 43,102 | ||||||
| Pool# C68307 | ||||||||
| 8.00%, 06/01/32 | 1,196 | 1,242 | ||||||
| Pool# G01449 | ||||||||
| 7.00%, 07/01/32 | 57,026 | 63,782 | ||||||
| Pool# C68988 | ||||||||
| 7.50%, 07/01/32 | 3,090 | 3,514 | ||||||
| Pool# C69908 | ||||||||
| 7.00%, 08/01/32 | 34,872 | 38,870 | ||||||
| Pool# C70211 | ||||||||
| 7.00%, 08/01/32 | 31,563 | 35,182 | ||||||
| Pool# C71089 | ||||||||
| 7.50%, 09/01/32 | 11,045 | 12,583 | ||||||
| Pool# G01536 | ||||||||
| 7.00%, 03/01/33 | 41,549 | 46,313 | ||||||
| Pool# A16419 | ||||||||
| 6.50%, 11/01/33 | 32,788 | 35,997 | ||||||
| Pool# A16522 | ||||||||
| 6.50%, 12/01/33 | 176,822 | 194,126 | ||||||
| Pool# A17177 | ||||||||
| 6.50%, 12/01/33 | 11,125 | 12,214 | ||||||
| Pool# A17262 | ||||||||
| 6.50%, 12/01/33 | 34,417 | 37,785 | ||||||
| Pool# C01806 | ||||||||
| 7.00%, 01/01/34 | 26,725 | 29,789 | ||||||
| Pool# A21356 | ||||||||
| 6.50%, 04/01/34 | 117,643 | 128,862 | ||||||
| Pool# C01851 | ||||||||
| 6.50%, 04/01/34 | 109,370 | 119,800 | ||||||
| Pool# A22067 | ||||||||
| 6.50%, 05/01/34 | 174,833 | 191,506 | ||||||
| Pool# A24301 | ||||||||
| 6.50%, 05/01/34 | 89,206 | 97,713 | ||||||
| Pool# A24988 | ||||||||
| 6.50%, 07/01/34 | 86,551 | 94,805 | ||||||
2010 Semiannual Report 25
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Freddie Mac Gold Pool (continued) | ||||||||
| Pool# G01741 | ||||||||
| 6.50%, 10/01/34 | $ | 79,133 | $ | 87,026 | ||||
| Pool# G08023 | ||||||||
| 6.50%, 11/01/34 | 132,057 | 144,651 | ||||||
| Pool# A33137 | ||||||||
| 6.50%, 01/01/35 | 28,576 | 31,301 | ||||||
| Pool# A31989 | ||||||||
| 6.50%, 04/01/35 | 43,702 | 47,624 | ||||||
| Pool# G08064 | ||||||||
| 6.50%, 04/01/35 | 75,416 | 82,184 | ||||||
| Pool# G01947 | ||||||||
| 7.00%, 05/01/35 | 64,203 | 71,564 | ||||||
| Pool# G01837 | ||||||||
| 5.00%, 07/01/35 | 9,063,000 | 9,430,902 | ||||||
| Pool# A37135 | ||||||||
| 5.50%, 09/01/35 | 2,107,014 | 2,233,457 | ||||||
| Pool# A46935 | ||||||||
| 6.50%, 09/01/35 | 34,610 | 37,716 | ||||||
| Pool# A38255 | ||||||||
| 5.50%, 10/01/35 | 1,701,744 | 1,803,866 | ||||||
| Pool# A38531 | ||||||||
| 5.50%, 10/01/35 | 2,120,806 | 2,248,076 | ||||||
| Pool# G08088 | ||||||||
| 6.50%, 10/01/35 | 433,077 | 471,941 | ||||||
| Pool# A39759 | ||||||||
| 5.50%, 11/01/35 | 128,372 | 136,076 | ||||||
| Pool# A47682 | ||||||||
| 6.50%, 11/01/35 | 317,050 | 345,502 | ||||||
| Pool# A40376 | ||||||||
| 5.50%, 12/01/35 | 104,946 | 111,244 | ||||||
| Pool# A42305 | ||||||||
| 5.50%, 01/01/36 | 671,929 | 711,202 | ||||||
| Pool# A41548 | ||||||||
| 7.00%, 01/01/36 | 82,909 | 91,946 | ||||||
| Pool# G08111 | ||||||||
| 5.50%, 02/01/36 | 2,665,257 | 2,821,036 | ||||||
| Pool# A43672 | ||||||||
| 6.50%, 02/01/36 | 27,356 | 29,742 | ||||||
| Pool# A48303 | ||||||||
| 7.00%, 02/01/36 | 40,710 | 45,005 | ||||||
| Pool# A43452 | ||||||||
| 5.50%, 03/01/36 | 37,425 | 39,612 | ||||||
| Pool# A43861 | ||||||||
| 5.50%, 03/01/36 | 2,033,216 | 2,152,053 | ||||||
| Pool# A43884 | ||||||||
| 5.50%, 03/01/36 | 1,557,357 | 1,650,814 | ||||||
| Pool# A43885 | ||||||||
| 5.50%, 03/01/36 | 1,223,889 | 1,295,423 | ||||||
| Pool# A43886 | ||||||||
| 5.50%, 03/01/36 | 2,083,082 | 2,204,833 | ||||||
| Pool# A48378 | ||||||||
| 5.50%, 03/01/36 | 1,015,027 | 1,074,354 | ||||||
| Pool# G08116 | ||||||||
| 5.50%, 03/01/36 | 505,335 | 534,871 | ||||||
| Pool# A43534 | ||||||||
| 6.50%, 03/01/36 | 134,628 | 146,373 | ||||||
| Pool# A48735 | ||||||||
| 5.50%, 05/01/36 | 201,326 | 213,093 | ||||||
| Pool# G08136 | ||||||||
| 6.50%, 06/01/36 | 105,821 | 115,053 | ||||||
| Pool# A49960 | ||||||||
| 7.00%, 06/01/36 | 12,816 | 14,168 | ||||||
| Pool# A53039 | ||||||||
| 6.50%, 10/01/36 | 217,483 | 236,456 | ||||||
| Pool# A53219 | ||||||||
| 6.50%, 10/01/36 | 145,576 | 158,276 | ||||||
| Pool# A57803 | ||||||||
| 6.50%, 02/01/37 | 525,538 | 571,386 | ||||||
| Pool# A64982 | ||||||||
| 6.50%, 08/01/37 | 431,478 | 468,580 | ||||||
| Pool# A66192 | ||||||||
| 6.50%, 09/01/37 | 559,796 | 607,933 | ||||||
| Pool# A72132 | ||||||||
| 6.50%, 01/01/38 | 262,048 | 284,581 | ||||||
| Pool# A73421 | ||||||||
| 6.50%, 02/01/38 | 53,548 | 58,153 | ||||||
| Pool# A74187 | ||||||||
| 6.50%, 02/01/38 | 144,320 | 156,654 | ||||||
| Pool# G04251 | ||||||||
| 6.50%, 04/01/38 | 92,685 | 100,606 | ||||||
| Pool# G04473 | ||||||||
| 5.50%, 06/01/38 | 11,791,163 | 12,470,456 | ||||||
| Pool# A79540 | ||||||||
| 6.50%, 07/01/38 | 86,769 | 94,185 | ||||||
| Pool# G04569 | ||||||||
| 6.50%, 08/01/38 | 91,366 | 99,223 | ||||||
| Pool# A81341 | ||||||||
| 6.00%, 09/01/38 | 10,958,472 | 11,742,642 | ||||||
| Pool# A81998 | ||||||||
| 6.50%, 09/01/38 | 129,467 | 140,532 | ||||||
| Pool# A82297 | ||||||||
| 6.50%, 10/01/38 | 259,206 | 281,359 | ||||||
| Pool# A83464 | ||||||||
| 6.50%, 11/01/38 | 136,523 | 148,191 | ||||||
| Pool# G05232 | ||||||||
| 6.50%, 12/01/38 | 523,422 | 568,156 | ||||||
| Pool# A84168 | ||||||||
| 6.50%, 01/01/39 | 118,701 | 128,845 | ||||||
| Pool# A84252 | ||||||||
| 6.50%, 01/01/39 | 151,413 | 164,338 | ||||||
| Pool# A84287 | ||||||||
| 6.50%, 01/01/39 | 150,802 | 163,769 | ||||||
| Pool# A84584 | ||||||||
| 6.50%, 02/01/39 | 143,179 | 155,416 | ||||||
| Pool# A85442 | ||||||||
| 5.00%, 03/01/39 | 8,657,909 | 8,982,310 | ||||||
| Pool# G05459 | ||||||||
| 5.50%, 05/01/39 | 8,847,170 | 9,355,975 | ||||||
26 Semiannual Report 2010
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Freddie Mac Gold Pool (continued) | ||||||||
| Pool# A88133 | ||||||||
| 4.50%, 08/01/39 | $ | 5,281,931 | $ | 5,332,329 | ||||
| Pool# A87958 | ||||||||
| 6.00%, 08/01/39 | 4,262,596 | 4,567,194 | ||||||
| Pool# A91165 | ||||||||
| 5.00%, 02/01/40 | 22,854,330 | 23,710,655 | ||||||
| Pool# A91538 | ||||||||
| 4.50%, 03/01/40 | 3,492,187 | 3,525,508 | ||||||
| Ginnie Mae I Pool | ||||||||
| Pool# 279461 | ||||||||
| 9.00%, 11/15/19 | 1,620 | 1,844 | ||||||
| Pool# 376510 | ||||||||
| 7.00%, 05/15/24 | 4,343 | 4,855 | ||||||
| Pool# 457801 | ||||||||
| 7.00%, 08/15/28 | 5,516 | 6,186 | ||||||
| Pool# 486936 | ||||||||
| 6.50%, 02/15/29 | 4,637 | 5,130 | ||||||
| Pool# 502969 | ||||||||
| 6.00%, 03/15/29 | 16,657 | 18,140 | ||||||
| Pool# 487053 | ||||||||
| 7.00%, 03/15/29 | 6,873 | 7,712 | ||||||
| Pool# 781014 | ||||||||
| 6.00%, 04/15/29 | 13,661 | 14,878 | ||||||
| Pool# 509099 | ||||||||
| 7.00%, 06/15/29 | 3,273 | 3,673 | ||||||
| Pool# 470643 | ||||||||
| 7.00%, 07/15/29 | 12,963 | 14,545 | ||||||
| Pool# 434505 | ||||||||
| 7.50%, 08/15/29 | 713 | 806 | ||||||
| Pool# 416538 | ||||||||
| 7.00%, 10/15/29 | 1,204 | 1,350 | ||||||
| Pool# 524269 | ||||||||
| 8.00%, 11/15/29 | 7,206 | 7,421 | ||||||
| Pool# 781124 | ||||||||
| 7.00%, 12/15/29 | 26,376 | 29,589 | ||||||
| Pool# 525561 | ||||||||
| 8.00%, 01/15/30 | 2,647 | 3,039 | ||||||
| Pool# 507396 | ||||||||
| 7.50%, 09/15/30 | 70,298 | 79,467 | ||||||
| Pool# 531352 | ||||||||
| 7.50%, 09/15/30 | 6,800 | 7,687 | ||||||
| Pool# 536334 | ||||||||
| 7.50%, 10/15/30 | 826 | 934 | ||||||
| Pool# 540659 | ||||||||
| 7.00%, 01/15/31 | 799 | 897 | ||||||
| Pool# 486019 | ||||||||
| 7.50%, 01/15/31 | 2,169 | 2,457 | ||||||
| Pool# 535388 | ||||||||
| 7.50%, 01/15/31 | 2,858 | 3,236 | ||||||
| Pool# 537406 | ||||||||
| 7.50%, 02/15/31 | 1,318 | 1,493 | ||||||
| Pool# 528589 | ||||||||
| 6.50%, 03/15/31 | 62,289 | 68,825 | ||||||
| Pool# 508473 | ||||||||
| 7.50%, 04/15/31 | 10,545 | 11,943 | ||||||
| Pool# 544470 | ||||||||
| 8.00%, 04/15/31 | 3,007 | 3,101 | ||||||
| Pool# 781287 | ||||||||
| 7.00%, 05/15/31 | 14,599 | 16,388 | ||||||
| Pool# 549742 | ||||||||
| 7.00%, 07/15/31 | 4,838 | 5,434 | ||||||
| Pool# 781319 | ||||||||
| 7.00%, 07/15/31 | 4,568 | 5,130 | ||||||
| Pool# 485879 | ||||||||
| 7.00%, 08/15/31 | 16,061 | 18,039 | ||||||
| Pool# 572554 | ||||||||
| 6.50%, 09/15/31 | 124,248 | 137,286 | ||||||
| Pool# 555125 | ||||||||
| 7.00%, 09/15/31 | 2,496 | 2,803 | ||||||
| Pool# 781328 | ||||||||
| 7.00%, 09/15/31 | 13,742 | 15,426 | ||||||
| Pool# 550991 | ||||||||
| 6.50%, 10/15/31 | 5,277 | 5,831 | ||||||
| Pool# 571267 | ||||||||
| 7.00%, 10/15/31 | 1,347 | 1,513 | ||||||
| Pool# 547948 | ||||||||
| 6.50%, 11/15/31 | 6,675 | 7,376 | ||||||
| Pool# 574837 | ||||||||
| 7.50%, 11/15/31 | 2,269 | 2,568 | ||||||
| Pool# 555171 | ||||||||
| 6.50%, 12/15/31 | 1,669 | 1,844 | ||||||
| Pool# 781380 | ||||||||
| 7.50%, 12/15/31 | 4,130 | 4,670 | ||||||
| Pool# 781481 | ||||||||
| 7.50%, 01/15/32 | 21,387 | 24,175 | ||||||
| Pool# 580972 | ||||||||
| 6.50%, 02/15/32 | 3,193 | 3,510 | ||||||
| Pool# 781401 | ||||||||
| 7.50%, 02/15/32 | 11,730 | 13,271 | ||||||
| Pool# 781916 | ||||||||
| 6.50%, 03/15/32 | 274,027 | 301,433 | ||||||
| Pool# 552474 | ||||||||
| 7.00%, 03/15/32 | 9,161 | 10,293 | ||||||
| Pool# 781478 | ||||||||
| 7.50%, 03/15/32 | 7,274 | 8,221 | ||||||
| Pool# 781429 | ||||||||
| 8.00%, 03/15/32 | 11,450 | 13,183 | ||||||
| Pool# 781431 | ||||||||
| 7.00%, 04/15/32 | 49,908 | 56,058 | ||||||
| Pool# 568715 | ||||||||
| 7.00%, 05/15/32 | 38,250 | 42,977 | ||||||
| Pool# 552616 | ||||||||
| 7.00%, 06/15/32 | 55,643 | 62,520 | ||||||
| Pool# 570022 | ||||||||
| 7.00%, 07/15/32 | 74,690 | 83,920 | ||||||
| Pool# 583645 | ||||||||
| 8.00%, 07/15/32 | 5,258 | 6,029 | ||||||
2010 Semiannual Report 27
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Mortgage Backed Agencies (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Ginnie Mae I Pool (continued) | ||||||||
| Pool# 595077 | ||||||||
| 6.00%, 10/15/32 | $ | 36,365 | $ | 39,602 | ||||
| Pool# 596657 | ||||||||
| 7.00%, 10/15/32 | 4,804 | 5,398 | ||||||
| Pool# 552903 | ||||||||
| 6.50%, 11/15/32 | 264,086 | 290,313 | ||||||
| Pool# 552952 | ||||||||
| 6.00%, 12/15/32 | 34,703 | 37,793 | ||||||
| Pool# 588192 | ||||||||
| 6.00%, 02/15/33 | 17,370 | 18,873 | ||||||
| Pool# 602102 | ||||||||
| 6.00%, 02/15/33 | 22,278 | 24,205 | ||||||
| Pool# 553144 | ||||||||
| 5.50%, 04/15/33 | 150,258 | 160,804 | ||||||
| Pool# 604243 | ||||||||
| 6.00%, 04/15/33 | 72,462 | 78,733 | ||||||
| Pool# 611526 | ||||||||
| 6.00%, 05/15/33 | 30,761 | 33,423 | ||||||
| Pool# 631924 | ||||||||
| 6.00%, 05/15/33 | 65,407 | 71,067 | ||||||
| Pool# 553320 | ||||||||
| 6.00%, 06/15/33 | 80,451 | 87,413 | ||||||
| Pool# 572733 | ||||||||
| 6.00%, 07/15/33 | 8,145 | 8,850 | ||||||
| Pool# 573916 | ||||||||
| 6.00%, 11/15/33 | 66,844 | 72,628 | ||||||
| Pool# 604788 | ||||||||
| 6.50%, 11/15/33 | 165,141 | 181,129 | ||||||
| Pool# 604875 | ||||||||
| 6.00%, 12/15/33 | 157,552 | 171,185 | ||||||
| Pool# 781688 | ||||||||
| 6.00%, 12/15/33 | 156,977 | 170,770 | ||||||
| Pool# 781690 | ||||||||
| 6.00%, 12/15/33 | 66,557 | 72,451 | ||||||
| Pool# 781699 | ||||||||
| 7.00%, 12/15/33 | 25,370 | 28,494 | ||||||
| Pool# 621856 | ||||||||
| 6.00%, 01/15/34 | 52,600 | 56,954 | ||||||
| Pool# 564799 | ||||||||
| 6.00%, 03/15/34 | 361,809 | 391,760 | ||||||
| Pool# 630038 | ||||||||
| 6.50%, 08/15/34 | 121,265 | 132,778 | ||||||
| Pool# 781804 | ||||||||
| 6.00%, 09/15/34 | 217,095 | 235,310 | ||||||
| Pool# 781847 | ||||||||
| 6.00%, 12/15/34 | 198,852 | 215,517 | ||||||
| Pool# 486921 | ||||||||
| 5.50%, 02/15/35 | 78,923 | 84,277 | ||||||
| Pool# 781902 | ||||||||
| 6.00%, 02/15/35 | 172,200 | 186,117 | ||||||
| Pool# 649454 | ||||||||
| 5.50%, 09/15/35 | 894,289 | 954,961 | ||||||
| Pool# 649510 | ||||||||
| 5.50%, 10/15/35 | 1,241,703 | 1,325,945 | ||||||
| Pool# 649513 | ||||||||
| 5.50%, 10/15/35 | 1,750,651 | 1,869,422 | ||||||
| Pool# 652207 | ||||||||
| 5.50%, 03/15/36 | 1,431,269 | 1,525,688 | ||||||
| Pool# 652539 | ||||||||
| 5.00%, 05/15/36 | 121,506 | 127,137 | ||||||
| Pool# 655519 | ||||||||
| 5.00%, 05/15/36 | 155,605 | 162,816 | ||||||
| Pool# 606308 | ||||||||
| 5.50%, 05/15/36 | 233,355 | 248,749 | ||||||
| Pool# 606314 | ||||||||
| 5.50%, 05/15/36 | 104,275 | 111,154 | ||||||
| Pool# 657912 | ||||||||
| 6.50%, 08/15/36 | 62,367 | 67,703 | ||||||
| Pool# 704630 | ||||||||
| 5.50%, 07/15/39 | 347,451 | 369,557 | ||||||
| Pool# 722292 | ||||||||
| 5.00%, 09/15/39 | 5,115,452 | 5,346,127 | ||||||
| Ginnie Mae I Pool TBA | ||||||||
| 5.00%, 05/15/37 | 3,400,000 | 3,545,030 | ||||||
| 4.50%, 05/19/39 | 1,000,000 | 1,015,312 | ||||||
| 5.50%, 05/15/40 | 4,600,000 | 4,883,185 | ||||||
| 6.00%, 05/15/40 | 7,400,000 | 7,935,346 | ||||||
| Government National Mortgage Association | ||||||||
| Pool# 655457 | ||||||||
| 6.00%, 05/15/36 | 94,327 | 101,516 | ||||||
| Pool# 656666 | ||||||||
| 6.00%, 06/15/36 | 443,128 | 476,902 | ||||||
Total U.S. Government Mortgage Backed Agencies (cost $407,633,252) | 415,013,762 | |||||||
| Sovereign Bonds 2.3% | ||||||||
BRAZIL 0.1% | ||||||||
| Brazilian Government International Bond, 7.13%, 01/20/37 | 1,345,000 | 1,540,025 | ||||||
CANADA 0.6% | ||||||||
| Canada Government International Bond, 2.38%, 09/10/14 | 2,145,000 | 2,153,447 | ||||||
| Province of British Columbia Canada, 4.30%, 05/30/13 | 111,000 | 118,943 | ||||||
| Province of Manitoba Canada, 5.00%, 02/15/12 | 275,000 | 293,740 | ||||||
| Province of Nova Scotia Canada, 5.13%, 01/26/17 | 615,000 | 681,071 | ||||||
28 Semiannual Report 2010
Sovereign Bonds (continued) | ||||||||
| Principal Amount | Market Value | |||||||
CANADA (continued) | ||||||||
| Province of Ontario Canada | ||||||||
| 4.38%, 02/15/13 | $ | 297,000 | $ | 316,882 | ||||
| 4.10%, 06/16/14 | 1,845,000 | 1,956,790 | ||||||
| 4.50%, 02/03/15 | 463,000 | 498,557 | ||||||
| 4.75%, 01/19/16 | 205,000 | 222,098 | ||||||
| Province of Quebec Canada | ||||||||
| 4.60%, 05/26/15 | 246,000 | 266,009 | ||||||
| 7.50%, 09/15/29 | 402,000 | 532,993 | ||||||
| 7,040,530 | ||||||||
CHILE 0.0%† | ||||||||
| Chile Government International Bond, 5.50%, 01/15/13 | 123,000 | 134,070 | ||||||
CHINA 0.0%† | ||||||||
| China Government International Bond, 4.75%, 10/29/13 | 205,000 | 222,961 | ||||||
ITALY 0.2% | ||||||||
| Italian Republic | ||||||||
| 4.38%, 06/15/13 | 390,000 | 415,498 | ||||||
| 4.50%, 01/21/15 | 652,000 | 687,278 | ||||||
| 4.75%, 01/25/16 | 287,000 | 301,777 | ||||||
| 6.88%, 09/27/23 | 174,000 | 201,289 | ||||||
| 5.38%, 06/15/33 | 584,000 | 587,510 | ||||||
| 2,193,352 | ||||||||
MEXICO 0.2% | ||||||||
| Mexico Government International Bond | ||||||||
| 6.38%, 01/16/13 | 545,000 | 599,500 | ||||||
| 6.75%, 09/27/34 | 1,223,000 | 1,326,955 | ||||||
| 1,926,455 | ||||||||
PERU 0.1% | ||||||||
| Peru Government International Bond, 7.13%, 03/30/19 | 605,000 | 711,601 | ||||||
POLAND 0.0%† | ||||||||
| Poland Government International Bond, 5.00%, 10/19/15 | 156,000 | 164,804 | ||||||
SOUTH AFRICA 0.0%† | ||||||||
| South Africa Government International Bond, 6.50%, 06/02/14 | 144,000 | 158,760 | ||||||
SOUTH KOREA 0.0%† | ||||||||
| Republic of Korea, 4.25%, 06/01/13 | 492,000 | 518,391 | ||||||
SUPRANATIONAL 0.7% | ||||||||
| Asian Development Bank, 2.63%, 02/09/15 (f) | 2,765,000 | 2,783,960 | ||||||
| Corp. Andina de Fomento, 6.88%, 03/15/12 | 164,000 | 179,456 | ||||||
| European Investment Bank | ||||||||
| 3.00%, 04/08/14 | 905,000 | 930,731 | ||||||
| 4.63%, 05/15/14 | 630,000 | 686,060 | ||||||
| 4.63%, 10/20/15 (f) | 1,675,000 | 1,820,668 | ||||||
| 5.13%, 09/13/16 | 250,000 | 277,757 | ||||||
Inter-American Development Bank | ||||||||
| 5.00%, 04/05/11 | 250,000 | 260,077 | ||||||
| 5.13%, 09/13/16 | 65,000 | 72,411 | ||||||
| 6.80%, 10/15/25 | 287,000 | 339,975 | ||||||
| International Bank for Reconstruction & Development, 7.63%, 01/19/23 | 677,000 | 904,620 | ||||||
| 8,255,715 | ||||||||
SWEDEN 0.4% | ||||||||
| Svensk Exportkredit AB, 4.88%, 09/29/11 | 4,101,000 | 4,319,752 | ||||||
Total Sovereign Bonds (cost $25,998,183) | 27,186,416 | |||||||
| U.S. Government Sponsored & Agency Obligations 7.2% | ||||||||
| Federal Farm Credit Bank 4.88%, 01/17/17 | 375,000 | 410,318 | ||||||
| Federal Home Loan Banks | ||||||||
| 4.00%, 09/06/13 | 3,055,000 | 3,269,201 | ||||||
| 3.63%, 10/18/13 | 3,500,000 | 3,699,402 | ||||||
| 4.88%, 05/17/17 | 605,000 | 660,837 | ||||||
| 5.25%, 06/05/17 | 4,900,000 | 5,450,040 | ||||||
| Federal Home Loan Mortgage Corp. | ||||||||
| 2.75%, 04/11/11 (f) | 13,765,000 | 14,041,635 | ||||||
| 1.63%, 04/26/11 | 2,125,000 | 2,146,890 | ||||||
| 3.88%, 06/29/11 | 3,160,000 | 3,276,184 | ||||||
| 5.13%, 07/15/12 | 4,234,000 | 4,593,539 | ||||||
| 4.88%, 11/15/13 | 5,292,000 | 5,816,606 | ||||||
| 3.75%, 03/27/19 (f) | 1,475,000 | 1,458,011 | ||||||
| 6.75%, 09/15/29 (f) | 388,000 | 471,496 | ||||||
| 6.25%, 07/15/32 | 865,000 | 1,024,494 | ||||||
2010 Semiannual Report 29
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
U.S. Government Sponsored & Agency Obligations (continued) | ||||||||
| Principal Amount | Market Value | |||||||
| Federal National Mortgage Association | ||||||||
| 5.38%, 11/15/11 | $ | 2,434,000 | $ | 2,600,817 | ||||
| 1.75%, 08/10/12 (f) | 4,490,000 | 4,533,477 | ||||||
| 2.50%, 05/15/14 | 2,280,000 | 2,306,386 | ||||||
| 3.00%, 09/16/14 | 715,000 | 733,244 | ||||||
| 4.63%, 10/15/14 | 1,236,000 | 1,350,473 | ||||||
| 5.00%, 04/15/15 (f) | 1,132,000 | 1,258,453 | ||||||
| 4.38%, 10/15/15 | 82,000 | 88,258 | ||||||
| 5.38%, 06/12/17 | 7,505,000 | 8,376,331 | ||||||
| 6.25%, 05/15/29 | 750,000 | 877,970 | ||||||
| Financing Corp. (FICO) 9.80%, 11/30/17 | 12,000 | 16,639 | ||||||
| Tennessee Valley Authority | ||||||||
| 6.25%, 12/15/17 | 35,000 | 40,927 | ||||||
| 4.50%, 04/01/18 | 3,365,000 | 3,546,071 | ||||||
| U.S. Treasury Note | ||||||||
| 1.00%, 04/30/12 | 5,740,000 | 5,743,616 | ||||||
| 2.75%, 02/15/19 | 5,305,000 | 4,997,888 | ||||||
Total U.S. Government Sponsored & Agency Obligations (cost $79,969,947) | 82,789,203 | |||||||
| U.S. Treasury Bonds 4.2% | ||||||||
| U.S. Treasury Bond | ||||||||
| 3.50%, 02/15/39 | 515,000 | 430,267 | ||||||
| 4.25%, 05/15/39 | 3,095,000 | 2,955,242 | ||||||
| 4.38%, 11/15/39 (f) | 8,080,000 | 7,878,000 | ||||||
| 4.50%, 02/15/36 (f) | 2,610,000 | 2,623,864 | ||||||
| 4.50%, 05/15/38 | 2,370,000 | 2,369,261 | ||||||
| 4.50%, 08/15/39 | 1,285,000 | 1,278,575 | ||||||
| 4.63%, 02/15/40 | 4,525,000 | 4,596,409 | ||||||
| 5.00%, 05/15/37 | 215,000 | 233,073 | ||||||
| 6.25%, 08/15/23 | 5,869,000 | 7,178,521 | ||||||
| 6.38%, 08/15/27 | 8,070,000 | 10,136,679 | ||||||
| 6.88%, 08/15/25 | 633,000 | 824,581 | ||||||
| 8.00%, 11/15/21 | 2,655,000 | 3,670,537 | ||||||
| 8.13%, 08/15/19 | 1,500,000 | 2,041,758 | ||||||
| 8.50%, 02/15/20 | 1,700,000 | 2,379,203 | ||||||
Total U.S. Treasury Bonds (cost $48,747,276) | 48,595,970 | |||||||
| U.S. Treasury Notes 25.4% | ||||||||
| U.S. Treasury Note | ||||||||
| 0.88%, 03/31/11 (f) | 3,760,000 | 3,775,273 | ||||||
| 0.88%, 04/30/11 | 4,420,000 | 4,437,954 | ||||||
| 0.88%, 02/29/12 (f) | 7,685,000 | 7,682,925 | ||||||
| 1.00%, 09/30/11 | 5,010,000 | 5,033,091 | ||||||
| 1.13%, 06/30/11 (f) | 2,280,000 | 2,296,297 | ||||||
| 1.13%, 12/15/12 | 18,000,000 | 17,919,846 | ||||||
| 1.38%, 05/15/12 | 5,500,000 | 5,543,401 | ||||||
| 1.38%, 09/15/12 (f) | 19,585,000 | 19,685,980 | ||||||
| 1.38%, 02/15/13 (f) | 28,320,000 | 28,297,882 | ||||||
| 1.50%, 12/31/13 | 7,000,000 | 6,914,684 | ||||||
| 1.75%, 08/15/12 (f) | 9,756,000 | 9,900,057 | ||||||
| 1.75%, 03/31/14 (f) | 3,345,000 | 3,317,039 | ||||||
| 1.88%, 06/15/12 (f) | 6,005,000 | 6,113,372 | ||||||
| 1.88%, 02/28/14 (f) | 4,000,000 | 3,991,248 | ||||||
| 1.88%, 04/30/14 | 7,475,000 | 7,436,459 | ||||||
| 2.13%, 11/30/14 (f) | 3,520,000 | 3,499,376 | ||||||
| 2.25%, 05/31/14 (f) | 8,490,000 | 8,558,981 | ||||||
| 2.38%, 08/31/14 (f) | 5,570,000 | 5,621,350 | ||||||
| 2.38%, 09/30/14 (f) | 9,535,000 | 9,603,538 | ||||||
| 2.38%, 02/28/15 (f) | 1,990,000 | 1,991,254 | ||||||
| 2.50%, 03/31/15 (f) | 18,000,000 | 18,090,000 | ||||||
| 2.63%, 04/30/16 (f) | 3,055,000 | 3,020,870 | ||||||
| 3.00%, 09/30/16 | 1,325,000 | 1,326,966 | ||||||
| 3.00%, 02/28/17 | 1,845,000 | 1,836,207 | ||||||
| 3.25%, 12/31/16 | 9,325,000 | 9,439,381 | ||||||
| 3.38%, 11/15/19 | 9,370,000 | 9,174,551 | ||||||
| 3.63%, 12/31/12 (f) | 2,960,000 | 3,142,224 | ||||||
| 3.63%, 08/15/19 | 17,995,000 | 18,023,108 | ||||||
| 3.63%, 02/15/20 | 2,895,000 | 2,886,405 | ||||||
| 3.88%, 10/31/12 | 3,365,000 | 3,587,669 | ||||||
| 4.00%, 02/15/15 (f) | 1,400,000 | 1,507,187 | ||||||
| 4.00%, 08/15/18 | 4,425,000 | 4,617,213 | ||||||
| 4.13%, 05/15/15 (f) | 1,533,000 | 1,658,873 | ||||||
| 4.25%, 09/30/12 (f) | 2,585,000 | 2,775,644 | ||||||
| 4.25%, 11/15/17 (f) | 12,415,000 | 13,285,018 | ||||||
| 4.50%, 09/30/11 (f) | 16,030,000 | 16,901,006 | ||||||
| 4.50%, 05/15/17 | 3,595,000 | 3,921,922 | ||||||
| 4.63%, 02/29/12 | 7,134,000 | 7,623,071 | ||||||
| 4.63%, 02/15/17 (f) | 3,060,000 | 3,366,716 | ||||||
| 4.75%, 05/31/12 | 3,535,000 | 3,807,860 | ||||||
| 4.88%, 08/15/16 (f) | 1,833,000 | 2,048,949 | ||||||
Total U.S. Treasury Notes (cost $290,080,125) | 293,660,847 | |||||||
| Yankee Dollars 0.7% | ||||||||
Chemicals 0.1% | ||||||||
| Potash Corp of Saskatchewan, Inc. | ||||||||
| 7.75%, 05/31/11 | 29,000 | 31,042 | ||||||
| 4.88%, 03/01/13 | 115,000 | 123,471 | ||||||
| 5.88%, 12/01/36 | 375,000 | 382,407 | ||||||
| 536,920 | ||||||||
Commercial Banks 0.0%† | ||||||||
| Westpac Banking Corp., 4.63%, 06/01/18 | 103,000 | 101,390 | ||||||
30 Semiannual Report 2010
Yankee Dollars (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Diversified Financial Services 0.1% | ||||||||
| ConocoPhillips Canada Funding Co. I, 5.63%, 10/15/16 | $ | 760,000 | $ | 860,002 | ||||
Electric Utilities 0.0%† | ||||||||
| Hydro Quebec | ||||||||
| 8.40%, 01/15/22 | 153,000 | 200,851 | ||||||
| 8.88%, 03/01/26* | 109,000 | 148,527 | ||||||
| 349,378 | ||||||||
Energy Equipment & Services 0.1% | ||||||||
| Burlington Resources Finance Co. | ||||||||
| 6.40%, 08/15/11 | 86,000 | 91,316 | ||||||
| 6.50%, 12/01/11 | 144,000 | 156,049 | ||||||
| EnCana Corp. | ||||||||
| 4.75%, 10/15/13 | 236,000 | 254,641 | ||||||
| 6.50%, 08/15/34 | 250,000 | 273,339 | ||||||
| Weatherford International Ltd., 5.50%, 02/15/16 | 51,000 | 55,219 | ||||||
| 830,564 | ||||||||
Gas Utilities 0.1% | ||||||||
| Enbridge, Inc., 5.60%, 04/01/17 | 750,000 | 815,576 | ||||||
| TransCanada Pipelines Ltd., 5.85%, 03/15/36 | 500,000 | 515,611 | ||||||
| 1,331,187 | ||||||||
Insurance 0.0%† | ||||||||
| Montpelier Re Holdings Ltd., 6.13%, 08/15/13 | 51,000 | 52,776 | ||||||
Metals & Mining 0.0%† | ||||||||
| BHP Billiton Finance USA Ltd., 6.42%, 03/01/26 | 55,000 | 61,236 | ||||||
| Rio Tinto Alcan, Inc. | ||||||||
| 6.45%, 03/15/11 | 31,000 | 32,324 | ||||||
| 4.50%, 05/15/13 | 158,000 | 166,626 | ||||||
| Vale Inco Ltd., 7.75%, 05/15/12 | 123,000 | 135,695 | ||||||
| Xstrata Canada Corp., 6.20%, 06/15/35 | 123,000 | 121,770 | ||||||
| 517,651 | ||||||||
Oil, Gas & Consumable Fuels 0.2% | ||||||||
| Canadian Natural Resources Ltd., 4.90%, 12/01/14 | 195,000 | 209,413 | ||||||
| Nexen, Inc. | ||||||||
| 5.05%, 11/20/13 | 105,000 | 113,247 | ||||||
| 5.20%, 03/10/15 | 250,000 | 267,164 | ||||||
| 5.88%, 03/10/35 | 92,000 | 91,114 | ||||||
| 6.40%, 05/15/37 | 250,000 | 264,015 | ||||||
| Petro-Canada, 5.95%, 05/15/35 | 189,000 | 189,755 | ||||||
| Statoil ASA, 6.80%, 01/15/28 | 425,000 | 483,872 | ||||||
| Suncor Energy, Inc., 6.10%, 06/01/18 | 605,000 | 667,695 | ||||||
| Talisman Energy, Inc. | ||||||||
| 7.25%, 10/15/27 | 92,000 | 106,745 | ||||||
| 5.75%, 05/15/35 | 250,000 | 245,795 | ||||||
| 2,638,815 | ||||||||
Road & Rail 0.1% | ||||||||
| Canadian National Railway Co. | ||||||||
| 4.40%, 03/15/13 | 515,000 | 547,876 | ||||||
| 6.90%, 07/15/28 | 168,000 | 198,486 | ||||||
| 6.20%, 06/01/36 | 164,000 | 182,257 | ||||||
| 928,619 | ||||||||
Total Yankee Dollars (cost $7,591,014) | 8,147,302 | |||||||
| Mutual Fund 7.1% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 7.1% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (h) | 81,716,202 | 81,716,202 | ||||||
Total Mutual Fund (cost $81,716,202) | 81,716,202 | |||||||
| Repurchase Agreement 0.2% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 04/30/10, due 05/03/10, repurchase price $1,778,280 collateralized by U.S. Government Agency Mortgage securities, 4.00% - 6.00%, maturing 07/01/23 - 04/01/40; total market value of $1,813,999. (i) | 1,778,252 | 1,778,252 | ||||||
Total Repurchase Agreement (cost $1,778,252) | 1,778,252 | |||||||
Total Investments Before TBA Sale Commitments (cost $1,199,405,391) — 106.7% | 1,231,527,866 | |||||||
2010 Semiannual Report 31
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Bond Index Fund (Continued)
| Repurchase Agreement (continued) | ||||||||
| TBA Sale Commitments 0.8% | ||||||||
U.S. Government TBA’s | ||||||||
| Fannie Mae Pool TBA 6.00%, 05/12/39 | $ | (8,700,000 | ) | (9,288,607 | ) | |||
Total TBA Sale Commitment (proceeds $9,234,234) | $ | (9,288,607 | ) | |||||
Total Investments (cost $1,190,171,157) (j) — 105.9% | 1,222,239,259 | |||||||
Liabilities in excess of other assets — (5.9)% | (67,624,210 | ) | ||||||
NET ASSETS — 100.0% | $ | 1,154,615,049 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. The maturity date represents the actual maturity date. | |
| (b) | Rule 144A, Section 4(2), or other security which is restricted as to sale 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, 2010 was $6,454,542 which represents 0.56% of net assets. | |
| (c) | Step Bond. Coupon rate is set for an initial period and then increases to a higher coupon rate at a specific date. The rate shown is the rate at April 30, 2010. | |
| (d) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. | |
| (e) | Perpetual bond security. The maturity date reflects the next call date. | |
| (f) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $185,507,837. | |
| (g) | Investment in affiliate. | |
| (h) | Represents 7-day effective yield as of April 30, 2010. | |
| (i) | 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, 2010 was $1,778,252. | |
| (j) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| † | Amount rounds to less than 0.1%. |
| AB | Stock Company | |
| AG | Stock Corporation | |
| ASA | Stock Corporation | |
| BV | Private Limited Liability Company | |
| FICO | Fair Isaac Corporation | |
| LLC | Limited Liability Company | |
| LP | Limited Partnership | |
| Ltd. | Limited | |
| NA | National Association | |
| PCL | Public Company Limited | |
| PLC | Public Limited Company | |
| SA | Stock Company | |
| SAB de CV | Public Traded 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 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Bond Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $1,197,627,139)* | $ | 1,229,749,614 | |||
| Repurchase agreements, at value and cost | 1,778,252 | ||||
| Total Investments | 1,231,527,866 | ||||
| Cash | 130,891 | ||||
| Interest and dividends receivable | 8,542,004 | ||||
| Security lending income receivable | 6,860 | ||||
| Receivable for investments sold | 30,683,687 | ||||
| Receivable for capital shares issued | 371,994 | ||||
| Reclaims receivable | 2,979 | ||||
| Prepaid expenses and other assets | 40,293 | ||||
| Total Assets | 1,271,306,574 | ||||
Liabilities: | |||||
| Payable for investments purchased | 104,160,780 | ||||
| Distributions payable | 28,169 | ||||
| Payable for capital shares redeemed | 919,575 | ||||
| TBA sale commitments (proceeds $9,234,234) | 9,288,607 | ||||
| Payable for interest income on TBA sale commitments | 17,400 | ||||
| Payable upon return of securities loaned (Note 2) | 1,778,252 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 129,259 | ||||
| Fund administration fees | 108,498 | ||||
| Distribution fees | 33,252 | ||||
| Administrative servicing fees | 45,558 | ||||
| Accounting and transfer agent fees | 85,163 | ||||
| Trustee fees | 9,138 | ||||
| Custodian fees | 3,280 | ||||
| Compliance program costs (Note 3) | 8,364 | ||||
| Professional fees | 46,972 | ||||
| Printing fees | 12,723 | ||||
| Other | 16,535 | ||||
| Total Liabilities | 116,691,525 | ||||
Net Assets | $ | 1,154,615,049 | |||
Represented by: | |||||
| Capital | $ | 1,131,540,882 | |||
| Accumulated net investment loss | (2,375,227 | ) | |||
| Accumulated net realized losses from investment transactions | (6,618,708 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 32,068,102 | ||||
Net Assets | $ | 1,154,615,049 | |||
Net Assets: | |||||
| Class A Shares | $ | 161,152,474 | |||
| Class B Shares | 486,510 | ||||
| Class C Shares | 211,393 | ||||
| Institutional Class Shares | 992,764,672 | ||||
| Total | $ | 1,154,615,049 | |||
| * | Includes value of securities on loan of $185,507,837 (Note 2) |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 33
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| Bond Index Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 14,381,592 | ||||
| Class B Shares | 43,409 | ||||
| Class C Shares | 18,856 | �� | |||
| Institutional Class Shares | 88,725,298 | ||||
| Total | 103,169,155 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 11.21 | |||
| Class B Shares (a) | $ | 11.21 | |||
| Class C Shares (b) | $ | 11.21 | |||
| Institutional Class Shares | $ | 11.19 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 11.89 | |||
| 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 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Bond Index Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income from non-affiliates | $ | 19,656,445 | |||
| Interest income from affiliates | 8,490 | ||||
| Dividend income | 78,166 | ||||
| Income from securities lending (Note 2) | 39,084 | ||||
| Foreign tax withholding | (1,987 | ) | |||
| Total Income | 19,780,198 | ||||
EXPENSES: | |||||
| Investment advisory fees | 1,200,508 | ||||
| Fund administration fees | 622,979 | ||||
| Distribution fees Class A | 183,826 | ||||
| Distribution fees Class B | 2,483 | ||||
| Distribution fees Class C | 1,094 | ||||
| Administrative servicing fees Class A | 114,416 | ||||
| Registration and filing fees | 26,176 | ||||
| Professional fees | 59,200 | ||||
| Printing fees | 23,079 | ||||
| Trustee fees | 26,890 | ||||
| Custodian fees | 19,537 | ||||
| Accounting and transfer agent fees | 88,905 | ||||
| Compliance program costs (Note 3) | 5,354 | ||||
| Other | 25,972 | ||||
| Total expenses before earnings credit and expenses reimbursed | 2,400,419 | ||||
| Earnings credit (Note 6) | (238 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (374,133 | ) | |||
| Net Expenses | 2,026,048 | ||||
NET INVESTMENT INCOME | 17,754,150 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 2,265,351 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 4,250,545 | ||||
| Net realized/unrealized gains from investments | 6,515,896 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 24,270,046 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 35
Statements of Changes in Net Assets
| Nationwide Bond Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 17,754,150 | $ | 37,873,870 | ||||||
| Net realized gains from investment transactions | 2,265,351 | 3,109,918 | ||||||||
| Net change in unrealized appreciation/(depreciation) from investments | 4,250,545 | 71,647,555 | ||||||||
| Change in net assets resulting from operations | 24,270,046 | 112,631,343 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (2,916,525 | ) | (4,264,237 | ) | ||||||
| Class B | (8,210 | ) | (16,327 | ) | ||||||
| Class C | (3,624 | ) | (5,782 | ) | ||||||
| Institutional Class | (21,045,431 | ) | (32,985,803 | ) | ||||||
| Change in net assets from shareholder distributions | (23,973,790 | ) | (37,272,149 | ) | ||||||
| Change in net assets from capital transactions | 94,280,371 | 113,083,347 | ||||||||
| Change in net assets | 94,576,627 | 188,442,541 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 1,060,038,422 | 871,595,881 | ||||||||
| End of period | $ | 1,154,615,049 | $ | 1,060,038,422 | ||||||
| Accumulated undistributed net investment income/loss at end of period | $ | (2,375,227 | ) | $ | 3,844,413 | |||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 31,523,395 | $ | 58,017,095 | ||||||
| Dividends reinvested | 2,916,525 | 3,668,633 | ||||||||
| Cost of shares redeemed (a) | (8,835,641 | ) | (29,436,255 | ) | ||||||
| Total Class A | 25,604,279 | 32,249,473 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 10,404 | 209,775 | ||||||||
| Dividends reinvested | 3,495 | 6,688 | ||||||||
| Cost of shares redeemed (a) | (32,422 | ) | (119,440 | ) | ||||||
| Total Class B | (18,523 | ) | 97,023 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 33,372 | 29,257 | ||||||||
| Dividends reinvested | 253 | 302 | ||||||||
| Cost of shares redeemed | (16,695 | ) | (8,875 | ) | ||||||
| Total Class C | 16,930 | 20,684 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 79,498,640 | 238,626,084 | ||||||||
| Dividends reinvested | 21,045,431 | 30,239,584 | ||||||||
| Cost of shares redeemed (a) | (31,866,386 | ) | (188,149,501 | ) | ||||||
| Total Institutional Class | 68,677,685 | 80,716,167 | ||||||||
| Change in net assets from capital transactions: | $ | 94,280,371 | $ | 113,083,347 | ||||||
| (a) | Includes redemption fees – see Note 5 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
36 Semiannual Report 2010
| Nationwide Bond Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 2,809,496 | 5,316,898 | ||||||||
| Reinvested | 271,650 | 336,371 | ||||||||
| Redeemed | (792,376 | ) | (2,715,385 | ) | ||||||
| Total Class A Shares | 2,288,770 | 2,937,884 | ||||||||
Class B Shares | ||||||||||
| Issued | 931 | 19,522 | ||||||||
| Reinvested | 313 | 614 | ||||||||
| Redeemed | (2,905 | ) | (11,051 | ) | ||||||
| Total Class B Shares | (1,661 | ) | 9,085 | |||||||
Class C Shares | ||||||||||
| Issued | 2,971 | 2,683 | ||||||||
| Reinvested | 23 | 28 | ||||||||
| Redeemed | (1,492 | ) | (813 | ) | ||||||
| Total Class C Shares | 1,502 | 1,898 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 6,903,328 | 21,697,034 | ||||||||
| Reinvested | 2,132,518 | 2,776,269 | ||||||||
| Redeemed | (2,860,297 | ) | (17,209,550 | ) | ||||||
| Total Institutional Class Shares | 6,175,549 | 7,263,753 | ||||||||
| Total change in shares: | 8,464,160 | 10,212,620 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 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 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, 2010 (Unaudited) (f) | $ | 11 | .20 | 0 | .16 | 0 | .07 | 0 | .23 | (0 | .22) | – | (0 | .22) | – | $ | 11 | .21 | 2 | .09% | $ | 161,152,474 | 0 | .72% | 2 | .89% | 0 | .79% | 78 | .72% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .33 | 0 | .42 | 0 | .87 | 1 | .29 | (0 | .42) | – | (0 | .42) | – | $ | 11 | .20 | 12 | .63% | $ | 135,482,548 | 0 | .74% | 3 | .87% | 0 | .82% | 338 | .41%(g) | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 11 | .20 | 0 | .13 | 0 | .06 | 0 | .19 | (0 | .18) | – | (0 | .18) | – | $ | 11 | .21 | 1 | .74% | $ | 486,510 | 1 | .32% | 2 | .32% | 1 | .38% | 78 | .72% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .32 | 0 | .36 | 0 | .86 | 1 | .22 | (0 | .35) | – | (0 | .35) | 0 | .01 | $ | 11 | .20 | 12 | .06% | $ | 504,801 | 1 | .34% | 3 | .27% | 1 | .41% | 338 | .41%(g) | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 11 | .20 | 0 | .13 | 0 | .06 | 0 | .19 | (0 | .18) | – | (0 | .18) | – | $ | 11 | .21 | 1 | .74% | $ | 211,393 | 1 | .32% | 2 | .32% | 1 | .38% | 78 | .72% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .33 | 0 | .36 | 0 | .86 | 1 | .22 | (0 | .35) | – | (0 | .35) | – | $ | 11 | .20 | 11 | .97% | $ | 194,428 | 1 | .32% | 3 | .29% | 1 | .41% | 338 | .41%(g) | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 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, 2010 (Unaudited) (f) | $ | 11 | .19 | 0 | .18 | 0 | .07 | 0 | .25 | (0 | .25) | – | (0 | .25) | – | $ | 11 | .19 | 2 | .25% | $ | 992,764,672 | 0 | .32% | 3 | .31% | 0 | .38% | 78 | .72% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .31 | 0 | .47 | 0 | .87 | 1 | .34 | (0 | .46) | – | (0 | .46) | – | $ | 11 | .19 | 13 | .22% | $ | 923,856,645 | 0 | .32% | 4 | .29% | 0 | .41% | 338 | .41%(g) | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
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) | The amount shown includes the effect of mortgage dollar roll transactions while the prior year amounts did not include the effect of mortgage dollar roll transactions. In the prior years, had mortgage dollar roll transactions been included, the portfolio turnover would have increased. |
| (h) | 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 2010
| 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, 2010, the Nationwide International Index Fund (Class A at NAV) returned 2.69% versus 2.48% 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 412 funds as of April 30, 2010) was 3.95% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Global stock markets remained volatile during the entire reporting period, but the general pattern that has been in place since the markets bottomed in March 2009 persisted: The backdrop of a slowly improving economy and strong corporate earnings has allowed stock markets to post noticeable gains. A significant market correction in stocks occurred from mid-January to mid-February 2010, spurred by uneven economic data, concerns about the creditworthiness of European sovereign debt, and uncertainty surrounding the passage of health-care reform. By February 2010, U.S. stocks had dropped to -5.0% on a year-to-date basis, but these stocks subsequently experienced a multiweek rally that allowed them to return 15.7% during the reporting period. At the end of April, market volatility was rising and uncertainty plagued the escalating Greek sovereign debt crisis.
The majority of regions within the Fund’s benchmark MSCI EAFE Index recorded positive returns for the reporting period. Standouts included Ireland, with 17.41%; Denmark, with 16.10%; and Singapore, with 15.52%. From a global sector perspective the best performers in the Index during the reporting period were information technology, with 14.29%; materials, with 11.48%; and industrials, with 10.19%. The top five stocks that provided positive contributions to Fund performance during the reporting period were these Japanese firms: DeNA Co., Ltd., a mobile Internet company; Uni-Charm Corp., a consumer products manufacturer; Japan Real Estate Investment Corp.; Ono Pharmaceutical Co. Ltd.; and Benesse Holdings Inc., a provider of education systems and institutions.
What areas of investment detracted from Fund performance?
The weakest-performing sectors in the Fund’s benchmark during the reporting period were telecommunications services, with -5.41%; financials, with -4.46%; and utilities, with -2.54%. Similarly, from a country perspective, the largest detractors from Fund performance during the reporting period were Greece, with -41.44%, followed by Portugal, with -17.87%; Spain, with -17.66%; and Italy, with -11.62%. On an individual stock basis, financials-sector firms provided the greatest negative contributions to Fund results. These included Danske Bank A/S, KBC Groep NV, EFG Eurobank Ergasias S.A., Ageas SA/NV and Sacyr Vallehermoso, S.A.
What is your outlook for the near term?
So far in 2010, a backdrop of moderate economic growth, low inflation, accommodative monetary policy and improving prospects for corporate earnings has been very supportive of risk asset prices. There are, however, a number of uncertainties and risks for investors to consider, including ongoing deleveraging issues (such as the uncertainty about Greece’s debt problems), escalating tensions between the United States and China over currency matters, and a general sense of unease regarding the strength and pace of the global recovery.
In our minds, there are two key risks that could derail the current cyclical bull market. The first would be a significant setback in economic activity that interrupts the growth in corporate revenues and earnings. The second would be an increase in inflationary pressures that could force the Federal Reserve Board into a rapid tightening of monetary policy. By our analysis, neither of these events is likely to occur. While the current recovery is far from robust, the number of positive trends leads us to believe that it should become sustainable. From an inflation perspective, it is our view that the amount of slack in the labor market (and in the economy as a whole) should prevent a dramatic rise in wage and price pressures.
From a short-term perspective, we acknowledge that markets remain under pressure due to sovereign debt issues in Europe, policy tightening in China and elsewhere, and uncertainty surrounding pending
2010 Semiannual Report 39
Nationwide International Index Fund
(Continued)
regulations for the financial services sector. In our view, however, the positive forces of improving economic growth, an absence of inflation, low interest rates and stronger corporate earnings should continue to move markets higher.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Managers:
Edward Corallo and Debra L. Jelilian
Edward Corallo and Debra L. Jelilian
40 Semiannual Report 2010
| Fund Performance | Nationwide International Index Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 2.69% | 33.82% | 3.23% | 0.78% | |||||||||||||
| w/SC2 | -3.25% | 26.03% | 2.03% | 0.19% | ||||||||||||||
| Class B | w/o SC1 | 2.44% | 33.12% | 2.61% | 0.11% | |||||||||||||
| w/SC3 | -2.56% | 28.12% | 2.31% | 0.11% | ||||||||||||||
Class C4 | w/o SC1 | 2.35% | 32.79% | 2.61% | -0.02% | |||||||||||||
| w/SC5 | 1.35% | 31.79% | 2.61% | -0.02% | ||||||||||||||
Class R26,7,8 | 2.67% | 33.45% | 3.17% | 0.75% | ||||||||||||||
Institutional Class6 | 2.93% | 34.44% | 3.64% | 1.17% | ||||||||||||||
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 (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. | |
| 5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. | |
| 6 | Not subject to any sales charges. | |
| 7 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| 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. |
Expense Ratios
| Expense | ||
| Ratio* | ||
| Class A | 0.77% | |
| Class B | 1.37% | |
| Class C | 1.37% | |
| Class R2 | 1.07% | |
| Institutional Class | 0.37% | |
| * | Current effective prospectus dated May 6, 2010. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 41
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide International Index Fund | 11/01/09 | 4/30/10 | 11/01/09 - 4/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,026.90 | 3.87 | 0.77 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.98 | 3.86 | 0.77 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,024.40 | 6.88 | 1.37 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.00 | 6.85 | 1.37 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,023.50 | 6.82 | 1.36 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.05 | 6.81 | 1.36 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,026.70 | 4.37 | 0.87 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.48 | 4.36 | 0.87 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,029.30 | 1.86 | 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 with Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
42 Semiannual Report 2010
| Portfolio Summary | Nationwide International Index Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 98 | .5% | ||
| Repurchase Agreements | 12 | .5% | ||
| Preferred Stocks | 0 | .5% | ||
| Mutual Fund | 0 | .3% | ||
| Warrant ‡ | 0 | .0% | ||
| Rights ‡ | 0 | .0% | ||
| Liabilities in excess of other assets | (11 | .8)% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% |
| Top Industries (†) | ||||
| Commercial Banks | 12 | .5% | ||
| Oil, Gas & Consumable Fuels | 6 | .6% | ||
| Pharmaceuticals | 5 | .7% | ||
| Metals & Mining | 5 | .2% | ||
| Insurance | 3 | .8% | ||
| Diversified Telecommunication Services | 3 | .3% | ||
| Chemicals | 3 | .0% | ||
| Automobiles | 3 | .0% | ||
| Food Products | 3 | .0% | ||
| Electric Utilities | 2 | .8% | ||
| Other Industries * | 51 | .1% | ||
| 100 | .0% | |||
| Top Holdings (†) | ||||
| Royal Dutch Shell PLC, Class A | 1 | .7% | ||
| HSBC Holdings PLC | 1 | .6% | ||
| Nestle SA REG | 1 | .5% | ||
| BP PLC | 1 | .5% | ||
| BHP Billiton Ltd. | 1 | .1% | ||
| Vodafone Group PLC | 1 | .0% | ||
| Total SA | 1 | .0% | ||
| Toyota Motor Corp. | 1 | .0% | ||
| Roche Holding AG | 1 | .0% | ||
| Novartis AG | 0 | .9% | ||
| Other Holdings * | 87 | .7% | ||
| 100 | .0% | |||
| Top Countries (†) | ||||
| Japan | 20 | .1% | ||
| United Kingdom | 16 | .5% | ||
| France | 8 | .7% | ||
| Australia | 7 | .6% | ||
| Switzerland | 7 | .0% | ||
| Germany | 7 | .0% | ||
| Netherlands | 4 | .2% | ||
| Spain | 3 | .4% | ||
| Italy | 2 | .7% | ||
| Sweden | 2 | .5% | ||
| Other Countries * | 20 | .3% | ||
| 100 | .0% | |||
| (†) | Percentages indicated are based upon total investments as of April 30, 2010. | |
| (*) | For purposes of listing top industries, top holdings and top countries, the repurchase agreements are included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 43
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide International Index Fund
| Common Stocks 98.5% | ||||||||
| Shares | Market Value | |||||||
AUSTRALIA 8.5% | ||||||||
Air Freight & Logistics 0.1% | ||||||||
| Toll Holdings Ltd. | 103,460 | $ | 675,783 | |||||
Airlines 0.0%† | ||||||||
| Qantas Airways Ltd.* | 197,891 | 512,395 | ||||||
Beverages 0.2% | ||||||||
Coca-Cola Amatil Ltd. (a) | 81,838 | 844,862 | ||||||
| Foster’s Group Ltd. (a) | 308,416 | 1,545,533 | ||||||
| 2,390,395 | ||||||||
Biotechnology 0.2% | ||||||||
| CSL Ltd. | 87,785 | 2,623,137 | ||||||
Capital Markets 0.2% | ||||||||
| Macquarie Group Ltd. | 51,850 | 2,364,360 | ||||||
Chemicals 0.1% | ||||||||
| Incitec Pivot Ltd. | 263,268 | 778,365 | ||||||
| Nufarm Ltd. | 18,411 | 129,254 | ||||||
| Orica Ltd. | 52,722 | 1,278,560 | ||||||
| 2,186,179 | ||||||||
Commercial Banks 2.6% | ||||||||
| Australia & New Zealand Banking Group Ltd. | 382,153 | 8,464,408 | ||||||
| Bendigo and Adelaide Bank Ltd. | 46,300 | 418,685 | ||||||
| Commonwealth Bank of Australia | 231,899 | 12,407,641 | ||||||
| National Australia Bank Ltd. | 317,500 | 8,111,768 | ||||||
| Westpac Banking Corp. | 444,842 | 11,083,946 | ||||||
| 40,486,448 | ||||||||
Commercial Services & Supplies 0.1% | ||||||||
| Brambles Ltd. | 205,817 | 1,368,449 | ||||||
Construction & Engineering 0.1% | ||||||||
| Leighton Holdings Ltd. (a) | 21,883 | 737,348 | ||||||
Construction Materials 0.0%† | ||||||||
| Boral Ltd. | 86,986 | 470,248 | ||||||
Containers & Packaging 0.1% | ||||||||
| Amcor Ltd. | 198,992 | 1,204,254 | ||||||
Diversified Financial Services 0.1% | ||||||||
| ASX Ltd. | 25,124 | 759,574 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Telstra Corp. Ltd. | 678,723 | 1,988,584 | ||||||
Electric Utilities 0.0%† | ||||||||
| SP AusNet | 170,043 | 138,752 | ||||||
Energy Equipment & Services 0.0%† | ||||||||
| WorleyParsons Ltd. | 23,912 | 583,134 | ||||||
Food & Staples Retailing 0.7% | ||||||||
| Metcash Ltd. (a) | 112,250 | 421,845 | ||||||
| Wesfarmers Ltd. | 178,786 | 4,794,477 | ||||||
| Woolworths Ltd. | 186,376 | 4,655,732 | ||||||
| 9,872,054 | ||||||||
Food Products 0.0%† | ||||||||
| Goodman Fielder Ltd. | 150,467 | 201,971 | ||||||
Health Care Equipment & Supplies 0.0%† | ||||||||
| Cochlear Ltd. (a) | 8,229 | 560,816 | ||||||
Health Care Providers & Services 0.1% | ||||||||
| Sonic Healthcare Ltd. | 53,463 | 679,338 | ||||||
Hotels, Restaurants & Leisure 0.1% | ||||||||
| Aristocrat Leisure Ltd. | 58,082 | 227,983 | ||||||
| Crown Ltd. | 71,892 | 542,060 | ||||||
| TABCORP Holdings Ltd. | 83,193 | 525,442 | ||||||
| Tatts Group Ltd. | 159,428 | 363,801 | ||||||
| 1,659,286 | ||||||||
Industrial Conglomerates 0.0%† | ||||||||
| CSR Ltd. | 222,653 | 354,861 | ||||||
Information Technology Services 0.1% | ||||||||
| Computershare Ltd. | 65,247 | 708,561 | ||||||
Insurance 0.5% | ||||||||
| AMP Ltd. | 316,347 | 1,815,422 | ||||||
| AXA Asia Pacific Holdings Ltd. | 149,639 | 848,815 | ||||||
| Insurance Australia Group Ltd. (a) | 303,999 | 1,068,962 | ||||||
| QBE Insurance Group Ltd. | 155,549 | 3,013,675 | ||||||
| Suncorp-Metway Ltd. | 188,376 | 1,556,795 | ||||||
| 8,303,669 | ||||||||
Media 0.0%† | ||||||||
| Fairfax Media Ltd. (a) | 310,922 | 490,696 | ||||||
Metals & Mining 1.9% | ||||||||
| Alumina Ltd. | 360,290 | 508,802 | ||||||
| BHP Billiton Ltd. | 508,722 | 18,596,956 | ||||||
| BlueScope Steel Ltd.* (a) | 297,084 | 712,818 | ||||||
| Fortescue Metals Group Ltd.* (a) | 177,071 | 736,905 | ||||||
| Newcrest Mining Ltd. | 72,382 | 2,184,900 | ||||||
| OneSteel Ltd. | 194,481 | 625,493 | ||||||
| OZ Minerals Ltd.* | 458,145 | 482,237 | ||||||
| Rio Tinto Ltd. | 65,197 | 4,259,979 | ||||||
| Sims Metal Management Ltd. | 21,392 | 402,126 | ||||||
| 28,510,216 | ||||||||
Multiline Retail 0.0%† | ||||||||
| Harvey Norman Holdings Ltd. | 73,311 | 228,884 | ||||||
Multi-Utilities 0.1% | ||||||||
| AGL Energy Ltd. | 65,699 | 909,785 | ||||||
Oil, Gas & Consumable Fuels 0.5% | ||||||||
| Arrow Energy Ltd.* (a) | 85,139 | 401,670 | ||||||
| Caltex Australia Ltd. | 14,655 | 156,407 | ||||||
| Energy Resources of Australia Ltd. | 12,216 | 176,625 | ||||||
| Origin Energy Ltd. | 131,004 | 1,970,275 | ||||||
| Paladin Energy Ltd.* (a) | 94,851 | 345,409 | ||||||
| Santos Ltd. | 131,190 | 1,664,396 | ||||||
| Woodside Petroleum Ltd. (a) | 81,536 | 3,381,240 | ||||||
| 8,096,022 | ||||||||
Real Estate Investment Trusts (REITs) 0.5% | ||||||||
| CFS Retail Property Trust | 251,960 | 444,286 | ||||||
| Dexus Property Group | 689,982 | 511,748 | ||||||
44 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
AUSTRALIA (continued) | ||||||||
Real Estate Investment Trusts (continued) | ||||||||
| Goodman Group | 877,434 | $ | 570,406 | |||||
| GPT Group | 1,352,127 | 722,487 | ||||||
| Mirvac Group | 458,791 | 588,736 | ||||||
| Stockland | 376,709 | 1,373,212 | ||||||
| Westfield Group | 320,319 | 3,783,417 | ||||||
| 7,994,292 | ||||||||
Real Estate Management & Development 0.0%† | ||||||||
| Lend Lease Group | 83,585 | 657,893 | ||||||
Road & Rail 0.0%† | ||||||||
| Asciano Group* | 394,679 | 612,507 | ||||||
Textiles, Apparel & Luxury Goods 0.0%† | ||||||||
| Billabong International Ltd. | 29,397 | 308,772 | ||||||
Transportation Infrastructure 0.1% | ||||||||
| Intoll Group (a) | 365,815 | 377,500 | ||||||
| MAp Group | 98,369 | 281,982 | ||||||
| Transurban Group | 177,656 | 836,069 | ||||||
| 1,495,551 | ||||||||
| 130,134,214 | ||||||||
AUSTRIA 0.3% | ||||||||
Commercial Banks 0.1% | ||||||||
| Erste Group Bank AG | 27,891 | 1,238,319 | ||||||
| Raiffeisen International Bank Holding AG (a) | 9,366 | 456,036 | ||||||
| 1,694,355 | ||||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Telekom Austria AG | 48,553 | 644,974 | ||||||
Electric Utilities 0.0%† | ||||||||
| Verbund — Oesterreichische Elektrizitaetswirtschafts AG, Class A (a) | 13,392 | 498,203 | ||||||
Insurance 0.0%† | ||||||||
| Vienna Insurance Group | 4,535 | 221,663 | ||||||
Metals & Mining 0.0%† | ||||||||
| Voestalpine AG | 16,507 | 614,006 | ||||||
Oil, Gas & Consumable Fuels 0.1% | ||||||||
| OMV AG | 22,618 | 808,204 | ||||||
Real Estate Management & Development 0.0%† | ||||||||
| Immofinanz AG* (a) | 139,494 | 594,787 | ||||||
| 5,076,192 | ||||||||
BELGIUM 0.9% | ||||||||
Beverages 0.3% | ||||||||
| Anheuser-Busch InBev NV (a) | 108,647 | 5,270,631 | ||||||
| Anheuser-Busch InBev NV VVPR* | 47,992 | 320 | ||||||
| 5,270,951 | ||||||||
Chemicals 0.1% | ||||||||
| Solvay SA | 8,926 | 852,392 | ||||||
| Umicore* (a) | 16,247 | 594,079 | ||||||
| 1,446,471 | ||||||||
Commercial Banks 0.1% | ||||||||
| Dexia SA* | 78,139 | 422,236 | ||||||
| KBC Groep NV* | 24,251 | 1,085,033 | ||||||
| 1,507,269 | ||||||||
Diversified Financial Services 0.1% | ||||||||
| Cie Nationale a Portefeuille (a) | 6,148 | 318,968 | ||||||
| Groupe Bruxelles Lambert SA | 12,148 | 1,028,036 | ||||||
| 1,347,004 | ||||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Belgacom SA (a) | 22,892 | 803,948 | ||||||
Food & Staples Retailing 0.1% | ||||||||
| Colruyt SA | 2,262 | 556,948 | ||||||
| Delhaize Group SA | 16,453 | 1,360,604 | ||||||
| 1,917,552 | ||||||||
Insurance 0.1% | ||||||||
| Fortis* (a) | 339,126 | 1,041,687 | ||||||
Pharmaceuticals 0.0%† | ||||||||
| UCB SA (a) | 15,174 | 587,794 | ||||||
Wireless Telecommunication Services 0.0%† | ||||||||
| Mobistar SA | 3,895 | 239,414 | ||||||
| 14,162,090 | ||||||||
BERMUDA 0.1% | ||||||||
Energy Equipment & Services 0.1% | ||||||||
| Seadrill Ltd. | 45,858 | 1,155,099 | ||||||
CHINA 0.0%† | ||||||||
Electronic Equipment, Instruments & Components 0.0%† | ||||||||
| Foxconn International Holdings Ltd.* (a) | 363,604 | 326,360 | ||||||
CYPRUS 0.0%† | ||||||||
Commercial Banks 0.0%† | ||||||||
| Bank of Cyprus Public Co. Ltd. | 80,451 | 464,160 | ||||||
DENMARK 1.0% | ||||||||
Beverages 0.1% | ||||||||
| Carlsberg AS, Class B | 16,182 | 1,307,828 | ||||||
Chemicals 0.1% | ||||||||
| Novozymes AS, Class B | 7,905 | 950,433 | ||||||
Commercial Banks 0.1% | ||||||||
| Danske Bank AS* | 68,488 | 1,788,068 | ||||||
Electrical Equipment 0.1% | ||||||||
| Vestas Wind Systems AS* | 31,666 | 1,932,183 | ||||||
Health Care Equipment & Supplies 0.0%† | ||||||||
| Coloplast AS, Class B | 3,350 | 371,236 | ||||||
2010 Semiannual Report 45
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
DENMARK (continued) | ||||||||
Health Care Equipment & Supplies (continued) | ||||||||
| William Demant Holding* | 2,884 | $ | 196,709 | |||||
| 567,945 | ||||||||
Insurance 0.0%† | ||||||||
| Topdanmark AS* | 2,758 | 340,541 | ||||||
| TrygVesta AS | 3,580 | 221,001 | ||||||
| 561,542 | ||||||||
Marine 0.2% | ||||||||
| A P Moller — Maersk A/S, Class A | 85 | 688,585 | ||||||
| A P Moller — Maersk A/S, Class B | 189 | 1,586,885 | ||||||
| 2,275,470 | ||||||||
Pharmaceuticals 0.4% | ||||||||
| H. Lundbeck AS | 11,600 | 191,141 | ||||||
| Novo Nordisk AS, Class B | 66,961 | 5,509,409 | ||||||
| 5,700,550 | ||||||||
Road & Rail 0.0%† | ||||||||
| DSV AS | 29,249 | 522,812 | ||||||
| 15,606,831 | ||||||||
FINLAND 1.1% | ||||||||
Auto Components 0.0%† | ||||||||
| Nokian Renkaat OYJ (a) | 17,130 | 402,661 | ||||||
Communications Equipment 0.5% | ||||||||
| Nokia OYJ* | 564,019 | 6,895,432 | ||||||
Diversified Financial Services 0.0%† | ||||||||
| Pohjola Bank PLC | 25,227 | 275,528 | ||||||
Diversified Telecommunication Services 0.0%† | ||||||||
| Elisa OYJ* | 19,993 | 382,679 | ||||||
Electric Utilities 0.1% | ||||||||
| Fortum OYJ | 66,831 | 1,726,861 | ||||||
Food & Staples Retailing 0.0%† | ||||||||
| Kesko OYJ, Class B (a) | 9,936 | 385,177 | ||||||
Insurance 0.1% | ||||||||
| Sampo OYJ, Class A (a) | 63,306 | 1,556,057 | ||||||
Machinery 0.2% | ||||||||
| Kone OYJ, Class B | 23,148 | 1,018,549 | ||||||
| Metso OYJ | 17,556 | 677,228 | ||||||
| Wartsila OYJ | 12,843 | 653,948 | ||||||
| 2,349,725 | ||||||||
Media 0.0%† | ||||||||
| Sanoma OYJ (a) | 8,770 | 169,740 | ||||||
Metals & Mining 0.1% | ||||||||
| Outokumpu OYJ (a) | 18,277 | 384,379 | ||||||
| Rautaruukki OYJ | 12,646 | 265,174 | ||||||
| 649,553 | ||||||||
Oil, Gas & Consumable Fuels 0.0%† | ||||||||
| Neste Oil OYJ | 19,274 | 312,013 | ||||||
Paper & Forest Products 0.1% | ||||||||
| Stora Enso OYJ, Class R* | 87,648 | 731,766 | ||||||
| Upm-Kymmene OYJ | 84,408 | 1,211,327 | ||||||
| 1,943,093 | ||||||||
Pharmaceuticals 0.0%† | ||||||||
| Orion OYJ, Class B | 10,919 | 206,853 | ||||||
| 17,255,372 | ||||||||
FRANCE 9.7% | ||||||||
Aerospace & Defense 0.1% | ||||||||
| Safran SA | 28,297 | 718,966 | ||||||
| Thales SA | 13,484 | 502,161 | ||||||
| 1,221,127 | ||||||||
Airlines 0.0%† | ||||||||
| Air France-KLM* | 16,210 | 255,030 | ||||||
Auto Components 0.1% | ||||||||
| Compagnie Generale des Etablissements Michelin, Class B | 21,863 | 1,583,853 | ||||||
Automobiles 0.1% | ||||||||
| PSA Peugeot Citroen* | 23,339 | 689,304 | ||||||
| Renault SA* | 28,838 | 1,336,065 | ||||||
| 2,025,369 | ||||||||
Beverages 0.2% | ||||||||
| Pernod-Ricard SA | 29,826 | 2,537,618 | ||||||
Building Products 0.2% | ||||||||
| Cie de Saint-Gobain | 58,330 | 2,879,486 | ||||||
Chemicals 0.3% | ||||||||
| Air Liquide SA | 38,029 | 4,436,461 | ||||||
Commercial Banks 1.2% | ||||||||
| BNP Paribas | 143,011 | 9,822,877 | ||||||
| Credit Agricole SA (a) | 139,532 | 1,994,614 | ||||||
| Natixis* | 138,877 | 710,227 | ||||||
| Societe Generale | 96,652 | 5,161,144 | ||||||
| 17,688,862 | ||||||||
Commercial Services & Supplies 0.0%† | ||||||||
| Societe BIC SA | 3,684 | 286,408 | ||||||
Communications Equipment 0.1% | ||||||||
| Alcatel-Lucent* | 374,031 | 1,192,262 | ||||||
Construction & Engineering 0.4% | ||||||||
| Bouygues SA* (a) | 33,647 | 1,667,202 | ||||||
| Eiffage SA (a) | 6,456 | 333,276 | ||||||
| Vinci SA | 66,295 | 3,694,312 | ||||||
| 5,694,790 | ||||||||
Construction Materials 0.2% | ||||||||
| Imerys SA (a) | 4,683 | 285,479 | ||||||
| Lafarge SA | 31,290 | 2,268,594 | ||||||
| 2,554,073 | ||||||||
46 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
FRANCE (continued) | ||||||||
Diversified Financial Services 0.0%† | ||||||||
| Eurazeo | 3,976 | $ | 275,669 | |||||
Diversified Telecommunication Services 0.4% | ||||||||
| France Telecom SA | 285,284 | 6,245,340 | ||||||
| Iliad SA (a) | 2,469 | 246,864 | ||||||
| 6,492,204 | ||||||||
Electric Utilities 0.1% | ||||||||
| Electricite de France (EDF) (a) | 35,718 | 1,914,264 | ||||||
Electrical Equipment 0.4% | ||||||||
| Alstom SA | 31,933 | 1,873,721 | ||||||
| Legrand SA | 14,732 | 479,685 | ||||||
| Schneider Electric SA (a) | 35,642 | 4,046,382 | ||||||
| 6,399,788 | ||||||||
Energy Equipment & Services 0.1% | ||||||||
| Cie Generale de Geophysique-Veritas* | 21,625 | 651,048 | ||||||
| Technip SA | 15,659 | 1,252,108 | ||||||
| 1,903,156 | ||||||||
Food & Staples Retailing 0.4% | ||||||||
| Carrefour SA (a) | 98,155 | 4,810,947 | ||||||
| Casino Guichard Perrachon SA | 8,314 | 733,904 | ||||||
| 5,544,851 | ||||||||
Food Products 0.3% | ||||||||
| Dannone SA (a) | 84,964 | 5,006,106 | ||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| BioMerieux | 2,212 | 239,742 | ||||||
| Cie Generale d’Optique Essilor International SA | 30,228 | 1,842,694 | ||||||
| 2,082,436 | ||||||||
Hotels, Restaurants & Leisure 0.2% | ||||||||
| Accor SA | 22,382 | 1,278,867 | ||||||
| Sodexo | 14,216 | 873,426 | ||||||
| 2,152,293 | ||||||||
Information Technology Services 0.1% | ||||||||
| Atos Origin SA* | 8,153 | 413,130 | ||||||
| Cap Gemini SA | 24,296 | 1,223,767 | ||||||
| 1,636,897 | ||||||||
Insurance 0.4% | ||||||||
| AXA SA (a) | 255,861 | 5,084,575 | ||||||
| CNP Assurances* | 5,599 | 471,306 | ||||||
| SCOR SE | 24,990 | 589,484 | ||||||
| 6,145,365 | ||||||||
Machinery 0.1% | ||||||||
| Vallourec SA | 9,111 | 1,814,758 | ||||||
Media 0.5% | ||||||||
| Eutelsat Communications | 14,841 | 528,324 | ||||||
| JC Decaux SA* | 8,577 | 246,603 | ||||||
| Lagardere SCA (a) | 17,796 | 717,765 | ||||||
M6-Metropole Television | 7,154 | 184,969 | ||||||
| PagesJaunes Groupe | 25,881 | 310,072 | ||||||
| Publicis Groupe | 17,320 | 764,198 | ||||||
| Societe Television Francaise 1 (a) | 17,699 | 328,184 | ||||||
| Vivendi (a) | 189,114 | 4,960,921 | ||||||
| 8,041,036 | ||||||||
Metals & Mining 0.0%† | ||||||||
| Eramet (a) | 892 | 321,899 | ||||||
Multiline Retail 0.1% | ||||||||
| PPR | 11,450 | 1,538,876 | ||||||
Multi-Utilities 0.6% | ||||||||
| GDF Suez (a) | 186,845 | 6,644,854 | ||||||
| Suez Environnement Co. | 40,612 | 880,193 | ||||||
| Veolia Environnement | 62,872 | 1,975,153 | ||||||
| 9,500,200 | ||||||||
Office Electronics 0.0%† | ||||||||
| Neopost SA | 4,701 | 373,854 | ||||||
Oil, Gas & Consumable Fuels 1.1% | ||||||||
| Total SA | 319,940 | 17,407,077 | ||||||
Personal Products 0.3% | ||||||||
| L’Oreal SA (a) | 35,964 | 3,737,513 | ||||||
Pharmaceuticals 0.7% | ||||||||
| Ipsen SA | 4,045 | 193,230 | ||||||
| Sanofi-Aventis SA* | 159,602 | 10,887,815 | ||||||
| 11,081,045 | ||||||||
Professional Services 0.0%† | ||||||||
| Bureau Veritas SA | 7,445 | 419,211 | ||||||
Real Estate Investment Trusts (REITs) 0.3% | ||||||||
| Fonciere Des Regions* | 3,512 | 363,416 | ||||||
| Gecina SA | 2,687 | 276,253 | ||||||
| ICADE (a) | 3,600 | 349,929 | ||||||
| Klepierre (a) | 13,281 | 457,668 | ||||||
| Unibail-Rodamco SE (a) | 13,850 | 2,617,655 | ||||||
| 4,064,921 | ||||||||
Software 0.1% | ||||||||
| Dassault Systemes SA | 11,079 | 719,857 | ||||||
Textiles, Apparel & Luxury Goods 0.4% | ||||||||
| Christian Dior SA | 10,019 | 1,066,587 | ||||||
| Hermes International | 8,454 | 1,117,752 | ||||||
| LVMH Moet Hennessy Louis Vuitton SA | 36,812 | 4,236,367 | ||||||
| 6,420,706 | ||||||||
Transportation Infrastructure 0.1% | ||||||||
| Aeroports de Paris | 4,976 | 409,514 | ||||||
| Groupe Eurotunnel SA REG | 69,623 | 635,770 | ||||||
2010 Semiannual Report 47
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
FRANCE (continued) | ||||||||
Transportation Infrastructure (continued) | ||||||||
| Societe Des Autoroutes Paris-Rhin-Rhone* | 2,657 | $ | 186,501 | |||||
| 1,231,785 | ||||||||
| 148,581,106 | ||||||||
GERMANY 7.3% | ||||||||
Air Freight & Logistics 0.1% | ||||||||
| Deutsche Post AG | 127,577 | 2,069,242 | ||||||
Airlines 0.1% | ||||||||
| Deutsche Lufthansa AG REG* | 40,705 | 676,900 | ||||||
Automobiles 0.7% | ||||||||
| Bayerische Motoren Werke AG | 49,924 | 2,469,092 | ||||||
| Daimler AG* | 136,037 | 6,999,586 | ||||||
| Volkswagen AG (a) | 4,731 | 447,443 | ||||||
| 9,916,121 | ||||||||
Capital Markets 0.4% | ||||||||
| Deutsche Bank AG | 88,909 | 6,205,645 | ||||||
Chemicals 0.8% | ||||||||
| BASF SE (a) | 138,737 | 8,065,980 | ||||||
| K+S AG (a) | 27,514 | 1,582,297 | ||||||
| Linde AG (a) | 23,228 | 2,780,304 | ||||||
| Wacker Chemie AG | 2,359 | 344,584 | ||||||
| 12,773,165 | ||||||||
Commercial Banks 0.1% | ||||||||
| Commerzbank AG* (a) | 108,757 | 854,019 | ||||||
| Deutsche Postbank AG* | 13,196 | 453,537 | ||||||
| 1,307,556 | ||||||||
Construction & Engineering 0.0%† | ||||||||
| Hochtief AG | 6,332 | 522,669 | ||||||
Construction Materials 0.1% | ||||||||
| HeidelbergCement AG | 21,300 | 1,318,926 | ||||||
Diversified Financial Services 0.2% | ||||||||
| Deutsche Boerse AG | 30,191 | 2,343,800 | ||||||
Diversified Telecommunication Services 0.4% | ||||||||
| Deutsche Telekom AG | 430,337 | �� | 5,603,095 | |||||
Electric Utilities 0.7% | ||||||||
| E.ON AG (a) | 287,435 | 10,599,961 | ||||||
Electrical Equipment 0.0%† | ||||||||
| Solarworld AG (a) | 12,435 | 179,761 | ||||||
Food & Staples Retailing 0.1% | ||||||||
| Metro AG (a) | 17,104 | 1,028,250 | ||||||
Food Products 0.0%† | ||||||||
| Suedzucker AG | 10,710 | 217,732 | ||||||
Health Care Equipment & Supplies 0.0%† | ||||||||
| Fresenius SE | 4,202 | 298,938 | ||||||
Health Care Providers & Services 0.1% | ||||||||
| Celesio AG | 14,561 | 476,724 | ||||||
| Fresenius Medical Care AG & Co. KGaA | 28,807 | 1,559,720 | ||||||
| 2,036,444 | ||||||||
Hotels, Restaurants & Leisure 0.0%† | ||||||||
| TUI AG* | 20,871 | 230,957 | ||||||
Household Products 0.1% | ||||||||
| Henkel AG & Co. KGaA (a) | 20,725 | 937,318 | ||||||
Industrial Conglomerates 0.8% | ||||||||
| Siemens AG | 124,469 | 12,275,912 | ||||||
Insurance 0.8% | ||||||||
| Allianz SE* (a) | 68,523 | 7,855,821 | ||||||
| Hannover Rueckversicherung AG* (a) | 9,091 | 426,682 | ||||||
| Muenchener Rueckversicherungs AG (a) | 30,571 | 4,308,483 | ||||||
| 12,590,986 | ||||||||
Internet Software & Services 0.0%† | ||||||||
| United Internet AG REG* | 19,578 | 294,327 | ||||||
Machinery 0.1% | ||||||||
| GEA Group AG | 23,555 | 522,725 | ||||||
| MAN SE | 17,274 | 1,630,295 | ||||||
| 2,153,020 | ||||||||
Metals & Mining 0.1% | ||||||||
| Salzgitter AG | 5,702 | 463,355 | ||||||
| ThyssenKrupp AG | 53,326 | 1,734,011 | ||||||
| 2,197,366 | ||||||||
Multi-Utilities 0.3% | ||||||||
| RWE AG | 64,017 | 5,265,916 | ||||||
Personal Products 0.1% | ||||||||
| Beiersdorf AG (a) | 13,298 | 753,606 | ||||||
Pharmaceuticals 0.6% | ||||||||
| Bayer AG (a) | 125,529 | 8,018,429 | ||||||
| Merck KGaA | 9,439 | 775,887 | ||||||
| 8,794,316 | ||||||||
Semiconductors & Semiconductor Equipment 0.1% | ||||||||
| Infineon Technologies AG* | 178,386 | 1,263,010 | ||||||
Software 0.4% | ||||||||
| SAP AG | 130,269 | 6,285,231 | ||||||
Textiles, Apparel & Luxury Goods 0.1% | ||||||||
| Adidas AG (a) | 30,771 | 1,813,185 | ||||||
| Puma AG Rudolf Dassler Sport (a) | 796 | 266,194 | ||||||
| 2,079,379 | ||||||||
Transportation Infrastructure 0.0%† | ||||||||
| Fraport AG Frankfurt Airport Services Worldwide | 5,672 | 294,093 | ||||||
| 112,513,642 | ||||||||
48 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
GREECE 0.4% | ||||||||
Beverages 0.1% | ||||||||
| Coca Cola Hellenic Bottling Co. SA | 29,073 | $ | 788,325 | |||||
Capital Markets 0.0%† | ||||||||
| Marfin Investment Group SA* | 106,920 | 204,955 | ||||||
Commercial Banks 0.2% | ||||||||
| Alpha Bank A.E.* | 70,273 | 569,166 | ||||||
| EFG Eurobank Ergasias SA* | 48,706 | 391,533 | ||||||
| National Bank of Greece SA* | 91,530 | 1,471,608 | ||||||
| Piraeus Bank SA* | 45,673 | 343,964 | ||||||
| 2,776,271 | ||||||||
Construction Materials 0.0%† | ||||||||
| Titan Cement Co. SA | 7,253 | 193,000 | ||||||
Diversified Telecommunication Services 0.0%† | ||||||||
| Hellenic Telecommunications Organization SA | 36,954 | 407,594 | ||||||
Electric Utilities 0.0%† | ||||||||
| Public Power Corp. SA* | 17,491 | 286,333 | ||||||
Hotels, Restaurants & Leisure 0.1% | ||||||||
| OPAP SA | 33,670 | 683,876 | ||||||
Oil, Gas & Consumable Fuels 0.0%† | ||||||||
| Hellenic Petroleum SA | 14,352 | 154,610 | ||||||
| 5,494,964 | ||||||||
HONG KONG 2.3% | ||||||||
Airlines 0.0%† | ||||||||
| Cathay Pacific Airways Ltd.* | 176,000 | 366,613 | ||||||
Commercial Banks 0.3% | ||||||||
| Bank of East Asia Ltd. | 211,350 | 749,910 | ||||||
| BOC Hong Kong Holdings Ltd. | 559,100 | 1,338,081 | ||||||
| Hang Seng Bank Ltd. | 114,500 | 1,560,509 | ||||||
| Wing Hang Bank Ltd. | 29,000 | 293,974 | ||||||
| 3,942,474 | ||||||||
Distributors 0.1% | ||||||||
| Li & Fung Ltd. | 337,600 | 1,627,551 | ||||||
Diversified Financial Services 0.2% | ||||||||
| Hong Kong Exchanges and Clearing Ltd. | 158,000 | 2,581,986 | ||||||
Diversified Telecommunication Services 0.0%† | ||||||||
| PCCW Ltd. | 845,000 | 255,446 | ||||||
Electric Utilities 0.2% | ||||||||
| Cheung Kong Infrastructure Holdings Ltd. | 77,500 | 289,395 | ||||||
| CLP Holdings Ltd. | 307,000 | 2,150,652 | ||||||
| Hongkong Electric Holdings Ltd. | 210,300 | 1,240,926 | ||||||
| 3,680,973 | ||||||||
Gas Utilities 0.1% | ||||||||
| Hong Kong & China Gas Co. Ltd. | 593,336 | 1,439,761 | ||||||
Hotels, Restaurants & Leisure 0.0%† | ||||||||
| Shangri-La Asia Ltd. | 184,000 | 355,075 | ||||||
Industrial Conglomerates 0.2% | ||||||||
| Hutchison Whampoa Ltd. | 319,500 | 2,192,762 | ||||||
| NWS Holdings Ltd. | 125,000 | 218,454 | ||||||
| 2,411,216 | ||||||||
Marine 0.0%† | ||||||||
| Orient Overseas International Ltd.* | 41,938 | 318,957 | ||||||
Media 0.0%† | ||||||||
| Television Broadcasts Ltd. | 32,000 | 154,325 | ||||||
Multiline Retail 0.0%† | ||||||||
| Lifestyle International Holdings Ltd. | 69,193 | 134,641 | ||||||
Oil, Gas & Consumable Fuels 0.0%† | ||||||||
| Mongolia Energy Co. Ltd.* | 350,175 | 165,523 | ||||||
Real Estate Development & Management 0.0%† | ||||||||
| Swire Properties Limited* (b) | 11,500 | 54,062 | ||||||
Real Estate Investment Trusts (REITs) 0.1% | ||||||||
| Link REIT (The) | 318,551 | 781,489 | ||||||
Real Estate Management & Development 0.9% | ||||||||
| Cheung Kong Holdings Ltd. | 211,000 | 2,602,021 | ||||||
| Chinese Estates Holdings Ltd. | 140,000 | 238,371 | ||||||
| Hang Lung Group Ltd. (a) | 138,000 | 674,168 | ||||||
| Hang Lung Properties Ltd. | 310,000 | 1,115,156 | ||||||
| Henderson Land Development Co. Ltd. | 160,800 | 1,013,502 | ||||||
| Hopewell Holdings Ltd. | 90,569 | 263,962 | ||||||
| Hysan Development Co. Ltd. | 76,673 | 224,954 | ||||||
| Kerry Properties Ltd. | 107,000 | 493,584 | ||||||
| New World Development Ltd. | 361,679 | 641,514 | ||||||
| Sino Land Co. Ltd. | 234,000 | 419,930 | ||||||
| Sun Hung Kai Properties Ltd. (a) | 220,700 | 3,059,795 | ||||||
| Swire Pacific Ltd., Class A | 115,000 | 1,285,130 | ||||||
| Wharf Holdings Ltd. | 206,337 | 1,115,935 | ||||||
| Wheelock & Co. Ltd. | 142,000 | 442,045 | ||||||
| 13,590,067 | ||||||||
Road & Rail 0.1% | ||||||||
| MTR Corp. | 212,214 | 743,671 | ||||||
Semiconductors & Semiconductor Equipment 0.0%† | ||||||||
| ASM Pacific Technology Ltd. | 27,300 | 257,402 | ||||||
Specialty Retail 0.1% | ||||||||
| Esprit Holdings Ltd. | 186,055 | 1,332,755 | ||||||
Textiles, Apparel & Luxury Goods 0.0%† | ||||||||
| Yue Yuen Industrial Holdings Ltd. | 114,500 | 398,908 | ||||||
Trading Companies & Distributors 0.0%† | ||||||||
| Noble Group Ltd. | 263,363 | 571,205 | ||||||
2010 Semiannual Report 49
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
HONG KONG (continued) | ||||||||
Transportation Infrastructure 0.0%† | ||||||||
| Hong Kong Aircraft Engineering Co. Ltd. | 6,800 | $ | 86,216 | |||||
| 35,250,316 | ||||||||
IRELAND 0.5% | ||||||||
Airlines 0.0%† | ||||||||
| Ryanair Holdings PLC* | 42,663 | 212,654 | ||||||
Commercial Banks 0.0% | ||||||||
| Anglo Irish Bank Corp. Ltd.* (b) | 122,522 | 0 | ||||||
Construction Materials 0.2% | ||||||||
| CRH PLC | 104,659 | 2,992,931 | ||||||
Food Products 0.0%† | ||||||||
| Kerry Group PLC, Class A | 22,694 | 729,297 | ||||||
Pharmaceuticals 0.2% | ||||||||
| Elan Corp. PLC* | 76,306 | 516,534 | ||||||
| Shire PLC | 84,323 | 1,857,480 | ||||||
| 2,374,014 | ||||||||
Professional Services 0.1% | ||||||||
| Experian PLC | 150,233 | 1,388,877 | ||||||
| 7,697,773 | ||||||||
ITALY 3.0% | ||||||||
Aerospace & Defense 0.1% | ||||||||
| Finmeccanica SpA | 61,020 | 781,764 | ||||||
Auto Components 0.0%† | ||||||||
| Pirelli & C SpA* | 394,325 | 226,882 | ||||||
Automobiles 0.1% | ||||||||
| Fiat SpA | 115,825 | 1,520,249 | ||||||
Capital Markets 0.0%† | ||||||||
| Mediobanca SpA* | 75,144 | 693,578 | ||||||
Commercial Banks 0.9% | ||||||||
| Banca Carige SpA (a) | 126,043 | 320,203 | ||||||
| Banca Monte dei Paschi di Siena SpA | 331,229 | 458,610 | ||||||
| Banca Popolare di Milano Scarl | 59,436 | 334,274 | ||||||
| Banco Popolare Societa Cooperativa* (a) | 105,966 | 678,454 | ||||||
| Intesa Sanpaolo SpA* | 1,312,971 | 4,229,923 | ||||||
| UniCredit SpA* | 2,469,900 | 6,472,873 | ||||||
| Unione di Banche Italiane SCPA | 88,492 | 1,095,869 | ||||||
| 13,590,206 | ||||||||
Construction Materials 0.0%† | ||||||||
| Italcementi SpA (a) | 5,588 | 63,544 | ||||||
Diversified Financial Services 0.0%† | ||||||||
| Exor SpA (a) | 12,779 | 233,998 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| Telecom Italia SpA* | 1,534,902 | 2,145,946 | ||||||
| Telecom Italia SpA — RSP* | 908,511 | 1,025,267 | ||||||
| 3,171,213 | ||||||||
Electric Utilities 0.4% | ||||||||
| Enel SpA | 990,867 | 5,191,071 | ||||||
| Terna Rete Elettrica Nazionale SpA | 219,616 | 890,212 | ||||||
| 6,081,283 | ||||||||
Electrical Equipment 0.0%† | ||||||||
| Prysmian SpA (a) | 19,797 | 356,468 | ||||||
Energy Equipment & Services 0.1% | ||||||||
| Saipem SpA | 42,951 | 1,603,849 | ||||||
Food Products 0.0%† | ||||||||
| Parmalat SpA (a) | 245,493 | 646,235 | ||||||
Gas Utilities 0.1% | ||||||||
| Snam Rete Gas SpA | 223,622 | 1,062,007 | ||||||
Hotels, Restaurants & Leisure 0.0%† | ||||||||
| Autogrill SpA* | 15,333 | 186,767 | ||||||
Insurance 0.3% | ||||||||
| Assicurazioni Generali SpA (a) | 177,484 | 3,746,328 | ||||||
| Fondiaria-Sai SpA (a) | 9,382 | 129,961 | ||||||
| Mediolanum SpA (a) | 35,536 | 180,615 | ||||||
| Unipol Gruppo Finanziario SpA* (a) | 99,995 | 104,721 | ||||||
| 4,161,625 | ||||||||
Media 0.1% | ||||||||
| Mediaset SpA | 119,052 | 942,757 | ||||||
Multi-Utilities 0.0%† | ||||||||
| A2A SpA (a) | 132,571 | 224,091 | ||||||
Oil, Gas & Consumable Fuels 0.6% | ||||||||
| ENI SpA | 393,318 | 8,790,392 | ||||||
Textiles, Apparel & Luxury Goods 0.0%† | ||||||||
| Luxottica Group SpA | 17,465 | 478,545 | ||||||
Transportation Infrastructure 0.1% | ||||||||
| Atlantia SpA | 38,836 | 826,552 | ||||||
| 45,642,005 | ||||||||
JAPAN 22.5% | ||||||||
Air Freight & Logistics 0.1% | ||||||||
| Yamato Holdings Co. Ltd. | 58,600 | 837,376 | ||||||
Airlines 0.0%† | ||||||||
| All Nippon Airways Co. Ltd.* | 124,000 | 393,349 | ||||||
Auto Components 0.5% | ||||||||
| Aisin Seiki Co., Ltd. | 28,300 | 860,008 | ||||||
| Bridgestone Corp. | 98,300 | 1,638,270 | ||||||
| Denso Corp. | 71,800 | 2,095,354 | ||||||
| Koito Manufacturing Co. Ltd. | 13,000 | 214,095 | ||||||
| NGK Spark Plug Co., Ltd. | 29,000 | 393,514 | ||||||
| NHK Spring Co. Ltd. | 27,000 | 259,397 | ||||||
50 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Auto Components (continued) | ||||||||
| NOK Corp. | 14,600 | $ | 248,170 | |||||
| Stanley Electric Co. Ltd. | 20,800 | 425,253 | ||||||
| Sumitomo Rubber Industries, Ltd. | 19,000 | 169,835 | ||||||
| Toyoda Gosei Co. Ltd. | 8,200 | 227,287 | ||||||
| Toyota Boshoku Corp. (a) | 8,300 | 147,160 | ||||||
| Toyota Industries Corp. | 26,500 | 773,271 | ||||||
| 7,451,614 | ||||||||
Automobiles 2.2% | ||||||||
| Daihatsu Motor Co. Ltd. | 29,000 | 279,645 | ||||||
| Fuji Heavy Industries Ltd.* | 83,000 | 464,528 | ||||||
| Honda Motor Co. Ltd. | 252,400 | 8,540,599 | ||||||
| Isuzu Motors Ltd. | 176,000 | 559,969 | ||||||
| Mazda Motor Corp. | 243,300 | 718,482 | ||||||
| Mitsubishi Motors Corp.* (a) | 528,000 | 723,074 | ||||||
| Nissan Motor Co., Ltd.* | 383,700 | 3,338,634 | ||||||
| Suzuki Motor Corp. | 51,900 | 1,090,926 | ||||||
| Toyota Motor Corp. | 445,800 | 17,224,803 | ||||||
| Yamaha Motor Co. Ltd.* | 35,800 | 528,154 | ||||||
| 33,468,814 | ||||||||
Beverages 0.2% | ||||||||
| Asahi Breweries Ltd. | 60,700 | 1,090,378 | ||||||
Coca-Cola West Co. Ltd. | 10,800 | 191,080 | ||||||
| Ito En Ltd. (a) | 9,700 | 150,495 | ||||||
| Kirin Holdings Co. Ltd. | 123,000 | 1,762,191 | ||||||
| Sapporo Holdings Ltd. | 52,000 | 255,440 | ||||||
| 3,449,584 | ||||||||
Building Products 0.3% | ||||||||
| Asahi Glass Co. Ltd. | 148,600 | 1,755,952 | ||||||
| Daikin Industries Ltd. | 34,600 | 1,304,775 | ||||||
| JS Group Corp. | 36,900 | 723,680 | ||||||
| Nippon Sheet Glass Co. Ltd. | 82,000 | 269,353 | ||||||
| TOTO Ltd. | 30,200 | 203,307 | ||||||
| 4,257,067 | ||||||||
Capital Markets 0.4% | ||||||||
| Daiwa Securities Group, Inc. | 239,200 | 1,237,216 | ||||||
| JAFCO Co. Ltd. | 3,700 | 113,397 | ||||||
| Matsui Securities Co. Ltd. | 12,900 | 96,888 | ||||||
| Mizuho Securities Co. Ltd. | 66,700 | 184,743 | ||||||
| Nomura Holdings, Inc. | 554,700 | 3,834,150 | ||||||
| SBI Holdings, Inc. | 2,474 | 530,628 | ||||||
| 5,997,022 | ||||||||
Chemicals 1.0% | ||||||||
| Air Water, Inc. | 18,000 | 199,175 | ||||||
| Asahi Kasei Corp. | 186,200 | 1,046,743 | ||||||
| Daicel Chemical Industries Ltd. | 38,000 | 243,608 | ||||||
| Denki Kagaku Kogyo KK | 90,000 | 401,057 | ||||||
| Hitachi Chemical Co. Ltd. | 12,600 | 273,639 | ||||||
| JSR Corp. | 26,400 | 534,467 | ||||||
| Kaneka Corp. | 43,500 | 274,525 | ||||||
| Kansai Paint Co. Ltd. | 30,000 | 227,397 | ||||||
| Kuraray Co. Ltd. | 57,500 | 752,735 | ||||||
| Mitsubishi Chemical Holdings Corp. | 198,000 | 1,056,755 | ||||||
| Mitsubishi Gas Chemical Co., Inc. | 51,000 | 307,528 | ||||||
| Mitsui Chemicals, Inc. | 145,100 | 476,612 | ||||||
| Nissan Chemical Industries Ltd. | 20,000 | 270,148 | ||||||
| Nitto Denko Corp. | 27,010 | 1,055,389 | ||||||
| Shin-Etsu Chemical Co. Ltd. | 63,600 | 3,666,258 | ||||||
| Showa Denko KK | 249,000 | 565,968 | ||||||
| Sumitomo Chemical Co. Ltd. | 232,200 | 1,097,221 | ||||||
| Taiyo Nippon Sanso Corp. | 37,000 | 332,392 | ||||||
| Teijin Ltd. | 124,800 | 398,226 | ||||||
| Tokuyama Corp. | 38,000 | 212,814 | ||||||
| Toray Industries, Inc. | 196,300 | 1,128,133 | ||||||
| Tosoh Corp. | 59,000 | 166,107 | ||||||
| Ube Industries Ltd. | 133,000 | 336,174 | ||||||
| 15,023,071 | ||||||||
Commercial Banks 2.0% | ||||||||
| 77 Bank Ltd. (The) | 45,300 | 257,417 | ||||||
| Aozora Bank Ltd. | 97,000 | 139,077 | ||||||
| Bank of Kyoto Ltd. (The) | 49,000 | 430,535 | ||||||
| Bank of Yokohama Ltd. (The) | 180,000 | 935,894 | ||||||
| Chiba Bank Ltd. (The) | 112,300 | 711,192 | ||||||
| Chugoku Bank Ltd. (The) | 25,000 | 320,492 | ||||||
| Chuo Mitsui Trust Holdings, Inc. | 145,400 | 554,769 | ||||||
| Fukuoka Financial Group, Inc. | 113,600 | 492,885 | ||||||
| Gunma Bank Ltd. (The) | 75,000 | 404,584 | ||||||
| Hachijuni Bank Ltd. (The) | 60,000 | 336,570 | ||||||
| Hiroshima Bank Ltd. (The) | 65,000 | 266,459 | ||||||
| Hokuhoku Financial Group, Inc. | 168,900 | 335,835 | ||||||
| Iyo Bank Ltd. (The) | 40,000 | 372,316 | ||||||
| Joyo Bank Ltd. (The) | 103,000 | 428,466 | ||||||
| Mitsubishi UFJ Financial Group, Inc. | 1,916,584 | 9,987,385 | ||||||
| Mizuho Financial Group, Inc. (a) | 2,072,383 | 3,990,429 | ||||||
| Mizuho Trust & Banking Co. Ltd. | 230,000 | 226,388 | ||||||
| Nishi-Nippon City Bank Ltd. (The) | 102,000 | 293,543 | ||||||
| Resona Holdings, Inc. | 71,001 | 867,173 | ||||||
| Sapporo Hokuyo Holdings, Inc. | 34,000 | 156,491 | ||||||
| Senshu Ikeda Holdings, Inc. (a) | 83,390 | 143,172 | ||||||
| Seven Bank Ltd. | 58 | 113,723 | ||||||
| Shinsei Bank Ltd. (a) | 179,000 | 232,313 | ||||||
| Shizuoka Bank Ltd. (The) | 89,000 | 746,788 | ||||||
| Sumitomo Mitsui Financial Group, Inc. | 196,805 | 6,508,704 | ||||||
| Sumitomo Trust & Banking Co. Ltd. (The) | 229,000 | 1,384,888 | ||||||
| Suruga Bank Ltd. | 31,000 | 304,205 | ||||||
| Yamaguchi Financial Group, Inc. | 32,000 | 320,420 | ||||||
| 31,262,113 | ||||||||
Commercial Services & Supplies 0.2% | ||||||||
| Dai Nippon Printing Co. Ltd. | 82,700 | 1,145,708 | ||||||
| Nissha Printing Co. Ltd. (a) | 5,400 | 188,505 | ||||||
2010 Semiannual Report 51
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Commercial Services & Supplies (continued) | ||||||||
| Secom Co. Ltd. | 31,000 | $ | 1,345,880 | |||||
| Toppan Printing Co. Ltd. | 82,000 | 747,787 | ||||||
| 3,427,880 | ||||||||
Computers & Peripherals 0.5% | ||||||||
| Fujitsu Ltd. | 274,100 | 1,927,461 | ||||||
| NEC Corp. | 418,000 | 1,376,267 | ||||||
| Seiko Epson Corp. | 20,200 | 357,844 | ||||||
| Toshiba Corp.* | 604,700 | 3,485,820 | ||||||
| 7,147,392 | ||||||||
Construction & Engineering 0.2% | ||||||||
| Chiyoda Corp. | 20,000 | 183,617 | ||||||
| JGC Corp. | 36,000 | 621,620 | ||||||
| Kajima Corp. | 124,800 | 317,101 | ||||||
| Kinden Corp. | 25,000 | 221,848 | ||||||
| Obayashi Corp. | 89,500 | 399,901 | ||||||
| Shimizu Corp. | 87,000 | 348,507 | ||||||
| Taisei Corp. | 144,000 | 328,077 | ||||||
| 2,420,671 | ||||||||
Construction Materials 0.0%† | ||||||||
| Taiheiyo Cement Corp.* | 102,000 | 144,241 | ||||||
Consumer Finance 0.1% | ||||||||
| Acom Co. Ltd. (a) | 7,940 | 125,468 | ||||||
| Aeon Credit Service Co. Ltd. | 17,000 | 185,398 | ||||||
| Credit Saison Co. Ltd. | 23,100 | 337,844 | ||||||
| ORIX Corp. | 16,620 | 1,519,067 | ||||||
| 2,167,777 | ||||||||
Containers & Packaging 0.0%† | ||||||||
| Toyo Seikan Kaisha Ltd. | 22,300 | 383,683 | ||||||
Distributors 0.0%† | ||||||||
| Canon Marketing Japan, Inc. | 10,300 | 161,016 | ||||||
Diversified Consumer Services 0.0%† | ||||||||
| Benesse Holdings, Inc. | 9,800 | 450,575 | ||||||
Diversified Financial Services 0.0%† | ||||||||
| Mitsubishi UFJ Lease & Finance Co. Ltd. | 7,890 | 305,466 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| Nippon Telegraph & Telephone Corp. | 79,654 | 3,242,203 | ||||||
Electric Utilities 0.9% | ||||||||
| Chubu Electric Power Co., Inc. | 97,600 | 2,267,603 | ||||||
| Chugoku Electric Power Co., Inc. (The) | 45,100 | 861,569 | ||||||
| Hokkaido Electric Power Co., Inc. | 26,900 | 521,970 | ||||||
| Hokuriku Electric Power Co. | 28,300 | 585,633 | ||||||
| Kansai Electric Power Co., Inc. (The) | 114,700 | 2,552,139 | ||||||
| Kyushu Electric Power Co., Inc. | 56,300 | 1,138,997 | ||||||
| Shikoku Electric Power Co., Inc. | 26,200 | 702,196 | ||||||
| Tohoku Electric Power Co., Inc. | 62,800 | 1,280,634 | ||||||
| Tokyo Electric Power Co., Inc. (The) | 186,000 | 4,667,931 | ||||||
| 14,578,672 | ||||||||
Electrical Equipment 0.4% | ||||||||
| Fuji Electric Holdings Co. Ltd. (a) | 77,200 | 231,900 | ||||||
| Furukawa Electric Co., Ltd. | 114,300 | 566,569 | ||||||
| GS Yuasa Corp. (a) | 65,000 | 463,128 | ||||||
| Mitsubishi Electric Corp. | 291,600 | 2,598,882 | ||||||
| Panasonic Electric Works Co. Ltd. | 55,284 | 680,606 | ||||||
| Sumitomo Electric Industries Ltd. | 111,400 | 1,370,883 | ||||||
| Ushio, Inc. | 14,700 | 242,788 | ||||||
| 6,154,756 | ||||||||
Electronic Equipment, Instruments & Components 1.4% | ||||||||
| Citizen Holdings Co. Ltd. | 50,300 | 349,356 | ||||||
| FUJIFILM Holdings Corp. | 72,500 | 2,484,684 | ||||||
| Hirose Electric Co. Ltd. | 4,400 | 475,003 | ||||||
| Hitachi High-Technologies Corp. | 7,800 | 170,064 | ||||||
| Hitachi Ltd.* | 699,300 | 3,073,511 | ||||||
| HOYA Corp. | 60,800 | 1,681,665 | ||||||
| Ibiden Co. Ltd. | 19,000 | 684,192 | ||||||
| Keyence Corp. | 6,108 | 1,459,477 | ||||||
| Kyocera Corp. | 24,400 | 2,449,915 | ||||||
| Mabuchi Motor Co. Ltd. | 4,100 | 225,983 | ||||||
| Mitsumi Electric Co., Ltd. | 12,300 | 267,646 | ||||||
| Murata Manufacturing Co., Ltd. | 34,100 | 2,017,992 | ||||||
| Nidec Corp. | 16,100 | 1,651,850 | ||||||
| Nippon Electric Glass Co. Ltd. | 58,000 | 884,462 | ||||||
| Omron Corp. | 29,800 | 692,820 | ||||||
| Shimadzu Corp. | 38,000 | 314,772 | ||||||
| TDK Corp. | 19,000 | 1,216,013 | ||||||
| Yaskawa Electric Corp. | 30,000 | 265,167 | ||||||
| Yokogawa Electric Corp. | 40,900 | 349,568 | ||||||
| 20,714,140 | ||||||||
Food & Staples Retailing 0.3% | ||||||||
| AEON Co., Ltd. | 97,200 | 1,112,910 | ||||||
| FamilyMart Co. Ltd. | 8,100 | 279,144 | ||||||
| Lawson, Inc. | 8,400 | 370,856 | ||||||
| Seven & I Holdings Co. Ltd. | 120,300 | 3,076,203 | ||||||
| UNY Co. Ltd. | 22,000 | 199,565 | ||||||
| 5,038,678 | ||||||||
Food Products 0.2% | ||||||||
| Ajinomoto Co., Inc. | 98,000 | 920,447 | ||||||
| Kikkoman Corp. | 32,000 | 355,671 | ||||||
| MEIJI Holdings Co. Ltd. | 9,399 | 339,312 | ||||||
| Nippon Meat Packers, Inc. | 27,000 | 341,074 | ||||||
| Nisshin Seifun Group, Inc. | 27,900 | 342,968 | ||||||
| Nissin Food Holdings Co. Ltd. | 10,300 | 346,472 | ||||||
| Toyo Suisan Kaisha Ltd. | 16,400 | 395,328 | ||||||
| Yakult Honsha Co. Ltd. | 14,900 | 389,522 | ||||||
| Yamazaki Baking Co. Ltd. | 15,100 | 192,841 | ||||||
| 3,623,635 | ||||||||
52 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Gas Utilities 0.2% | ||||||||
| Osaka Gas Co. Ltd. | 285,900 | $ | 994,896 | |||||
| Toho Gas Co. Ltd. | 73,000 | 369,400 | ||||||
| Tokyo Gas Co., Ltd. | 349,400 | 1,484,795 | ||||||
| 2,849,091 | ||||||||
Health Care Equipment & Supplies 0.2% | ||||||||
| Olympus Corp. | 35,000 | 1,059,127 | ||||||
| Sysmex Corp. | 4,300 | 257,963 | ||||||
| Terumo Corp. | 27,400 | 1,395,905 | ||||||
| 2,712,995 | ||||||||
Health Care Providers & Services 0.1% | ||||||||
| Alfresa Holdings Corp. | 4,900 | 245,891 | ||||||
| Mediceo Paltac Holdings Co. Ltd. | 18,200 | 226,910 | ||||||
| Suzuken Co. Ltd. | 9,800 | 374,774 | ||||||
| 847,575 | ||||||||
Hotels, Restaurants & Leisure 0.1% | ||||||||
| McDonald’s Holdings Co., (Japan) Ltd. | 13,124 | 279,367 | ||||||
| Oriental Land Co. Ltd. | 7,300 | 516,942 | ||||||
| 796,309 | ||||||||
Household Durables 0.9% | ||||||||
| Casio Computer Co. Ltd. | 35,000 | 275,220 | ||||||
| Makita Corp. | 16,500 | 511,446 | ||||||
| Panasonic Corp. | 295,502 | 4,330,543 | ||||||
| Rinnai Corp. | 6,200 | 304,072 | ||||||
| Sanyo Electric Co. Ltd.* | 315,200 | 500,622 | ||||||
| Sekisui Chemical Co. Ltd. | 57,000 | 389,273 | ||||||
| Sekisui House Ltd. | 77,300 | 736,829 | ||||||
| Sharp Corp. | 157,900 | 2,045,123 | ||||||
| Sony Corp. | 154,600 | 5,293,349 | ||||||
| 14,386,477 | ||||||||
Household Products 0.2% | ||||||||
| Kao Corp. | 80,200 | 1,955,428 | ||||||
| Unicharm Corp. | 7,200 | 699,845 | ||||||
| 2,655,273 | ||||||||
Independent Power Producers & Energy Traders 0.0%† | ||||||||
| Electric Power Development Co. Ltd. | 19,600 | 604,029 | ||||||
Industrial Conglomerates 0.0%† | ||||||||
| Hankyu Hanshin Holdings, Inc. | 168,000 | 782,663 | ||||||
Information Technology Services 0.1% | ||||||||
| Itochu Techno-Solutions Corp. | 2,900 | 109,536 | ||||||
| Nomura Research Institute Ltd. | 18,600 | 474,557 | ||||||
| NTT Data Corp. | 186 | 671,551 | ||||||
| Obic Co. Ltd. | 940 | 188,533 | ||||||
| Otsuka Corp. | 1,500 | 106,646 | ||||||
| 1,550,823 | ||||||||
Insurance 0.7% | ||||||||
| Dai-ichi Life Insurance Co. Ltd. | 1,209 | 2,065,732 | ||||||
| MS&AD Insurance Group Holdings | 80,455 | 2,312,482 | ||||||
| NKSJ Holdings, Inc.* | 228,900 | 1,661,892 | ||||||
| Sony Financial Holdings, Inc. | 146 | 526,538 | ||||||
| T&D Holdings, Inc. | 45,800 | 1,196,407 | ||||||
| Tokio Marine Holdings, Inc. | 108,400 | 3,227,135 | ||||||
| 10,990,186 | ||||||||
Internet & Catalog Retail 0.1% | ||||||||
| Dena Co., Ltd. | 46 | 372,944 | ||||||
| Rakuten, Inc. | 1,066 | 826,473 | ||||||
| 1,199,417 | ||||||||
Internet Software & Services 0.1% | ||||||||
| Yahoo! Japan Corp. | 2,170 | 830,853 | ||||||
Leisure Equipment & Products 0.2% | ||||||||
| Namco Bandai Holdings, Inc. | 29,349 | 292,854 | ||||||
| Nikon Corp. | 48,000 | 1,089,652 | ||||||
| Sankyo Co. Ltd. | 7,900 | 364,660 | ||||||
| Sega Sammy Holdings, Inc. | 27,000 | 352,975 | ||||||
| Shimano, Inc. | 9,100 | 415,358 | ||||||
| Yamaha Corp. | 30,500 | 373,045 | ||||||
| 2,888,544 | ||||||||
Machinery 1.2% | ||||||||
| Amada Co. Ltd. | 62,000 | 509,028 | ||||||
| Fanuc Ltd. | 30,000 | 3,542,576 | ||||||
| Hino Motors Ltd. | 57,000 | 286,940 | ||||||
| Hitachi Construction Machinery Co. Ltd. | 19,000 | 404,005 | ||||||
| IHI Corp. | 187,000 | 374,259 | ||||||
| Japan Steel Works Ltd. (The) | 56,000 | 613,360 | ||||||
| JTEKT Corp. | 25,300 | 290,711 | ||||||
| Kawasaki Heavy Industries Ltd. | 245,200 | 768,703 | ||||||
| Komatsu Ltd. | 142,500 | 2,872,419 | ||||||
| Kubota Corp. | 162,100 | 1,423,762 | ||||||
| Kurita Water Industries Ltd. | 16,600 | 480,015 | ||||||
| Minebea Co. Ltd. | 67,000 | 388,776 | ||||||
| Mitsubishi Heavy Industries Ltd. | 446,200 | 1,797,329 | ||||||
| Mitsui Engineering & Shipbuilding Co. Ltd. | 110,000 | 293,053 | ||||||
| NGK Insulators Ltd. | 37,000 | 729,195 | ||||||
| NSK Ltd. | 66,400 | 506,503 | ||||||
| NTN Corp. | 59,600 | 261,726 | ||||||
| SMC Corp. | 7,900 | 1,132,312 | ||||||
| Sumitomo Heavy Industries Ltd. | 88,000 | 578,509 | ||||||
| THK Co. Ltd. | 22,200 | 487,426 | ||||||
| 17,740,607 | ||||||||
Marine 0.2% | ||||||||
| Kawasaki Kisen Kaisha Ltd.* | 109,000 | 463,251 | ||||||
| Mitsui OSK Lines Ltd. | 187,000 | 1,398,046 | ||||||
| Nippon Yusen KK | 250,400 | 1,029,449 | ||||||
| 2,890,746 | ||||||||
2010 Semiannual Report 53
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Media 0.1% | ||||||||
| Dentsu, Inc. | 24,461 | $ | 665,785 | |||||
| Fuji Media Holdings, Inc. | 74 | 118,805 | ||||||
| Hakuhodo DY Holdings, Inc. | 2,450 | 139,179 | ||||||
| Jupiter Telecommunications Co. Ltd. | 369 | 373,505 | ||||||
| Toho Co. Ltd. | 14,900 | 256,896 | ||||||
| 1,554,170 | ||||||||
Metals & Mining 0.7% | ||||||||
| Daido Steel Co. Ltd. | 58,000 | 246,546 | ||||||
| Dowa Holdings Co. Ltd. | 39,940 | 221,727 | ||||||
| Hitachi Metals Ltd. | 25,000 | 268,254 | ||||||
| JFE Holdings, Inc. | 76,200 | 2,717,436 | ||||||
| Kobe Steel Ltd. | 366,000 | 816,877 | ||||||
| Maruichi Steel Tube Ltd. | 5,600 | 107,608 | ||||||
| Mitsubishi Materials Corp.* | 147,000 | 440,609 | ||||||
| Mitsui Mining & Smelting Co. Ltd. | 94,100 | 257,861 | ||||||
| Nippon Steel Corp. | 765,000 | 2,714,113 | ||||||
| Nisshin Steel Co. Ltd. | 107,900 | 228,166 | ||||||
| Sumitomo Metal Industries Ltd. | 545,000 | 1,479,349 | ||||||
| Sumitomo Metal Mining Co. Ltd. | 86,000 | 1,272,328 | ||||||
| Tokyo Steel Manufacturing Co. Ltd. | 11,300 | 151,426 | ||||||
| Yamato Kogyo Co., Ltd. | 4,700 | 149,388 | ||||||
| 11,071,688 | ||||||||
Multiline Retail 0.1% | ||||||||
| Isetan Mitsukoshi Holdings Ltd. | 51,278 | 592,200 | ||||||
| J. Front Retailing Co. Ltd. | 69,200 | 403,013 | ||||||
| Marui Group Co. Ltd. | 30,800 | 243,483 | ||||||
| Takashimaya Co., Ltd. | 44,000 | 417,146 | ||||||
| 1,655,842 | ||||||||
Office Electronics 0.7% | ||||||||
| Brother Industries Ltd. | 32,600 | 395,940 | ||||||
| Canon, Inc. | 162,000 | 7,410,414 | ||||||
| Konica Minolta Holdings, Inc. | 70,400 | 890,504 | ||||||
| Ricoh Co., Ltd. | 98,200 | 1,668,185 | ||||||
| 10,365,043 | ||||||||
Oil, Gas & Consumable Fuels 0.3% | ||||||||
| Cosmo Oil Co. Ltd. | 81,000 | 218,348 | ||||||
| Idemitsu Kosan Co. Ltd. | 3,900 | 323,056 | ||||||
| INPEX Corp. | 121 | 851,491 | ||||||
| Japan Petroleum Exploration Co. | 5,100 | 260,435 | ||||||
| JX Holdings, Inc.* | 349,817 | 1,951,393 | ||||||
| Showa Shell Sekiyu KK | 22,500 | 152,581 | ||||||
| TonenGeneral Sekiyu KK | 41,000 | 349,880 | ||||||
| 4,107,184 | ||||||||
Paper & Forest Products 0.1% | ||||||||
| Nippon Paper Group, Inc. | 13,337 | 374,564 | ||||||
| OJI Paper Co. Ltd. | 136,000 | 640,690 | ||||||
| 1,015,254 | ||||||||
Personal Products 0.1% | ||||||||
| Shiseido Co. Ltd. | 56,700 | 1,188,627 | ||||||
Pharmaceuticals 1.0% | ||||||||
| Astellas Pharma, Inc. | 66,900 | 2,342,499 | ||||||
| Chugai Pharmaceutical Co. Ltd. | 33,000 | 597,028 | ||||||
| Daiichi Sankyo Co. Ltd. | 99,500 | 1,729,146 | ||||||
| Dainippon Sumitomo Pharma Co. Ltd. (a) | 23,000 | 190,467 | ||||||
| Eisai Co. Ltd. | 37,200 | 1,271,441 | ||||||
| Hisamitsu Pharmaceutical Co., Inc. | 10,100 | 372,280 | ||||||
| Kyowa Hakko Kirin Co. Ltd. | 41,000 | 430,198 | ||||||
| Mitsubishi Tanabe Pharma Corp. | 38,000 | 502,774 | ||||||
| Ono Pharmaceutical Co. Ltd. | 12,700 | 526,090 | ||||||
| Santen Pharmaceutical Co. Ltd. | 10,900 | 348,099 | ||||||
| Shionogi & Co. Ltd. | 49,400 | 891,764 | ||||||
| Taisho Pharmaceutical Co. Ltd. | 18,900 | 343,753 | ||||||
| Takeda Pharmaceutical Co. Ltd. | 115,100 | 4,941,858 | ||||||
| Tsumura & Co. | 8,900 | 260,023 | ||||||
| 14,747,420 | ||||||||
Real Estate Investment Trusts (REITs) 0.1% | ||||||||
| Japan Prime Realty Investment Corp. | 114 | 271,712 | ||||||
| Japan Real Estate Investment Corp. | 67 | 558,759 | ||||||
| Japan Retail Fund Investment Corp. | 208 | 279,946 | ||||||
| Nippon Building Fund, Inc. | 78 | 654,276 | ||||||
| Nomura Real Estate Office Fund, Inc. | 55 | 309,652 | ||||||
| 2,074,345 | ||||||||
Real Estate Management & Development 0.6% | ||||||||
| Aeon Mall Co. Ltd. | 9,700 | 203,306 | ||||||
| Daito Trust Construction Co. Ltd. | 11,500 | 613,025 | ||||||
| Daiwa House Industry Co. Ltd. | 75,000 | 806,979 | ||||||
| Mitsubishi Estate Co. Ltd. | 176,600 | 3,183,654 | ||||||
| Mitsui Fudosan Co., Ltd. | 130,700 | 2,420,469 | ||||||
| Nomura Real Estate Holdings, Inc. | 11,600 | 205,510 | ||||||
| NTT Urban Development Corp. | 130 | 126,128 | ||||||
| Sumitomo Realty & Development Co., Ltd. | 61,000 | 1,251,655 | ||||||
| Tokyo Tatemono Co. Ltd. | 73,000 | 336,639 | ||||||
| Tokyu Land Corp. | 58,000 | 247,915 | ||||||
| 9,395,280 | ||||||||
Road & Rail 0.7% | ||||||||
| Central Japan Railway Co. | 222 | 1,807,723 | ||||||
| East Japan Railway Co. | 50,990 | 3,410,915 | ||||||
| Keihin Electric Express Railway Co. Ltd. | 63,000 | 528,208 | ||||||
| Keio Corp. | 86,400 | 558,676 | ||||||
| Keisei Electric Railway Co. Ltd. | 54,000 | 319,696 | ||||||
| Kintetsu Corp. (a) | 239,500 | 757,433 | ||||||
| Nippon Express Co. Ltd. | 125,500 | 591,270 | ||||||
54 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
JAPAN (continued) | ||||||||
Road & Rail (continued) | ||||||||
| Odakyu Electric Railway Co. Ltd. | 103,100 | $ | 860,594 | |||||
| Tobu Railway Co. Ltd. | 120,000 | 633,089 | ||||||
| Tokyu Corp. | 167,900 | 701,215 | ||||||
| West Japan Railway Co. | 245 | 890,531 | ||||||
| 11,059,350 | ||||||||
Semiconductors & Semiconductor Equipment 0.3% | ||||||||
| Advantest Corp. | 27,000 | 697,661 | ||||||
| Elpida Memory, Inc.* | 30,300 | 645,472 | ||||||
| Rohm Co. Ltd. | 14,500 | 1,074,595 | ||||||
| Shinko Electric Industries Co. Ltd. | 10,000 | 177,552 | ||||||
| Sumco Corp.* | 17,100 | 378,293 | ||||||
| Tokyo Electron Ltd. | 27,100 | 1,776,752 | ||||||
| 4,750,325 | ||||||||
Software 0.4% | ||||||||
| Konami Corp. | 13,700 | 265,794 | ||||||
| Nintendo Co., Ltd. | 15,300 | 5,139,690 | ||||||
| Oracle Corp. Japan | 4,600 | 227,966 | ||||||
| Square Enix Holdings Co. Ltd. | 7,300 | 154,177 | ||||||
| Trend Micro, Inc. | 15,500 | 525,812 | ||||||
| 6,313,439 | ||||||||
Specialty Retail 0.2% | ||||||||
| ABC-Mart, Inc. | 3,000 | 106,858 | ||||||
| Fast Retailing Co. Ltd. | 7,700 | 1,166,797 | ||||||
| Nitori Co. Ltd. | 6,850 | 538,660 | ||||||
| Shimamura Co. Ltd. | 3,000 | 302,232 | ||||||
| USS Co. Ltd. | 5,000 | 342,413 | ||||||
| Yamada Denki Co. Ltd. | 12,680 | 991,497 | ||||||
| 3,448,457 | ||||||||
Textiles, Apparel & Luxury Goods 0.0%† | ||||||||
| Asics Corp. | 19,000 | 181,753 | ||||||
| Nisshinbo Holdings, Inc. | 19,100 | 202,875 | ||||||
| 384,628 | ||||||||
Tobacco 0.2% | ||||||||
| Japan Tobacco, Inc. | 678 | 2,349,572 | ||||||
Trading Companies & Distributors 1.0% | ||||||||
| ITOCHU Corp. | 239,000 | 2,070,614 | ||||||
| Marubeni Corp. | 265,000 | 1,563,592 | ||||||
| Mitsubishi Corp. | 194,000 | 4,595,452 | ||||||
| Mitsui & Co., Ltd. | 261,000 | 3,922,594 | ||||||
| Sojitz Corp. | 171,267 | 308,859 | ||||||
| Sumitomo Corp. | 165,800 | 1,996,548 | ||||||
| Toyota Tsusho Corp. | 31,500 | 469,791 | ||||||
| 14,927,450 | ||||||||
Transportation Infrastructure 0.0%† | ||||||||
| Kamigumi Co. Ltd. | 33,000 | 272,579 | ||||||
| Mitsubishi Logistics Corp. (a) | 23,400 | 305,947 | ||||||
| 578,526 | ||||||||
Wireless Telecommunication Services 0.5% | ||||||||
| KDDI Corp. | 430 | 2,073,255 | ||||||
| NTT DoCoMo, Inc. | 2,385 | 3,710,564 | ||||||
| Softbank Corp. | 112,900 | 2,524,992 | ||||||
| 8,308,811 | ||||||||
| 345,121,794 | ||||||||
JERSEY 0.1% | ||||||||
Metals & Mining 0.1% | ||||||||
| Randgold Resources Ltd. | 14,452 | 1,224,596 | ||||||
LUXEMBOURG 0.6% | ||||||||
Energy Equipment & Services 0.1% | ||||||||
| Tenaris SA | 69,918 | 1,403,905 | ||||||
Media 0.1% | ||||||||
| SES SA | 42,678 | 978,130 | ||||||
Metals & Mining 0.3% | ||||||||
| ArcelorMittal (a) | 130,266 | 5,069,327 | ||||||
Wireless Telecommunication Services 0.1% | ||||||||
| Millicom International Cellular SA | 12,252 | 1,064,470 | ||||||
| 8,515,832 | ||||||||
MACAU 0.0%† | ||||||||
Hotels, Restaurants & Leisure 0.0%† | ||||||||
| Sands China Ltd.* | 303,900 | 493,341 | ||||||
MEXICO 0.0%† | ||||||||
Metals & Mining 0.0%† | ||||||||
| Fresnillo PLC | 26,109 | 317,796 | ||||||
NETHERLANDS 4.7% | ||||||||
Aerospace & Defense 0.1% | ||||||||
| European Aeronautic Defence and Space Co. NV | 61,428 | 1,140,901 | ||||||
Air Freight & Logistics 0.1% | ||||||||
| TNT NV (a) | 59,467 | 1,817,299 | ||||||
Beverages 0.2% | ||||||||
| Heineken Holding NV | 18,745 | 767,297 | ||||||
| Heineken NV (a) | 36,940 | 1,722,430 | ||||||
| 2,489,727 | ||||||||
Chemicals 0.2% | ||||||||
| Akzo Nobel NV (a) | 34,932 | 2,065,688 | ||||||
| Koninklijke DSM NV | 25,329 | 1,131,366 | ||||||
| 3,197,054 | ||||||||
Construction & Engineering 0.0%† | ||||||||
| Koninklijke Boskalis Westminster NV | 8,409 | 379,299 | ||||||
2010 Semiannual Report 55
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
| Common Stocks (continued) | ||||||||
NETHERLANDS (continued) | ||||||||
Construction & Engineering (continued) | ||||||||
Construction Materials 0.0%† | ||||||||
| James Hardie Industries SE* | 63,452 | $ | 444,867 | |||||
Diversified Financial Services 0.3% | ||||||||
| ING Groep NV CVA-NL* | 545,565 | 4,815,332 | ||||||
Diversified Telecommunication Services 0.3% | ||||||||
| Koninklijke (Royal) KPN NV (a) | 257,807 | 3,867,873 | ||||||
Energy Equipment & Services 0.1% | ||||||||
| Fugro NV CVA-NL | 9,649 | 628,085 | ||||||
| SBM Offshore NV (a) | 22,600 | 444,735 | ||||||
| 1,072,820 | ||||||||
Food & Staples Retailing 0.2% | ||||||||
| Koninklijke Ahold NV (a) | 189,090 | 2,592,823 | ||||||
Food Products 0.5% | ||||||||
| Unilever NV CVA-NL | 245,402 | 7,465,816 | ||||||
Industrial Conglomerates 0.3% | ||||||||
| Koninklijke Philips Electronics NV (a) | 148,262 | 4,978,510 | ||||||
Insurance 0.1% | ||||||||
| Aegon NV* | 236,632 | 1,655,004 | ||||||
Life Sciences Tools & Services 0.1% | ||||||||
| QIAGEN NV* | 36,396 | 839,919 | ||||||
Media 0.1% | ||||||||
| Reed Elsevier NV (a) | 109,118 | 1,299,554 | ||||||
| Wolters Kluwer NV (a) | 39,620 | 809,512 | ||||||
| 2,109,066 | ||||||||
Oil, Gas & Consumable Fuels 1.9% | ||||||||
| Royal Dutch Shell PLC, Class B | 407,865 | 12,296,500 | ||||||
| Royal Dutch Shell PLC, Class A | 536,981 | 16,725,207 | ||||||
| 29,021,707 | ||||||||
Professional Services 0.1% | ||||||||
| Randstad Holding NV* | 15,466 | 783,645 | ||||||
Real Estate Investment Trusts (REITs) 0.0%† | ||||||||
| Corio NV | 8,353 | 483,243 | ||||||
Semiconductors & Semiconductor Equipment 0.1% | ||||||||
| ASML Holding NV | 68,349 | 2,242,647 | ||||||
Transportation Infrastructure 0.0%† | ||||||||
| Koninklijke Vopak NV | 4,292 | 352,036 | ||||||
| 71,749,588 | ||||||||
NEW ZEALAND 0.1% | ||||||||
Construction Materials 0.1% | ||||||||
| Fletcher Building Ltd. | 90,609 | 549,910 | ||||||
Diversified Telecommunication Services 0.0%† | ||||||||
| Telecom Corp of New Zealand Ltd. | 278,776 | 435,965 | ||||||
Electric Utilities 0.0%† | ||||||||
| Contact Energy Ltd.* (a) | 33,428 | 151,314 | ||||||
Hotels, Restaurants & Leisure 0.0%† | ||||||||
| Sky City Entertainment Group Ltd. | 106,546 | 243,531 | ||||||
Transportation Infrastructure 0.0%† | ||||||||
| Auckland International Airport Ltd. | 125,454 | 182,397 | ||||||
| 1,563,117 | ||||||||
NORWAY 0.7% | ||||||||
Chemicals 0.1% | ||||||||
| Yara International ASA | 30,364 | 1,053,613 | ||||||
Commercial Banks 0.1% | ||||||||
| DnB NOR ASA (a) | 135,041 | 1,598,226 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Telenor ASA* | 126,654 | 1,800,521 | ||||||
Electrical Equipment 0.0%† | ||||||||
| Renewable Energy Corp. ASA* (a) | 67,126 | 228,070 | ||||||
Industrial Conglomerates 0.1% | ||||||||
| Orkla ASA (a) | 116,362 | 980,429 | ||||||
Metals & Mining 0.0%† | ||||||||
| Norsk Hydro ASA* (a) | 104,068 | 799,145 | ||||||
Oil, Gas & Consumable Fuels 0.3% | ||||||||
| StatoilHydro ASA | 169,643 | 4,101,919 | ||||||
| 10,561,923 | ||||||||
PORTUGAL 0.2% | ||||||||
Commercial Banks 0.0%† | ||||||||
| Banco Comercial Portugues SA, Class R | 312,775 | 293,760 | ||||||
| Banco Espirito Santo SA | 85,089 | 407,331 | ||||||
| 701,091 | ||||||||
Construction Materials 0.0%† | ||||||||
| Cimpor Cimentos de Portugal SGPS SA | 41,410 | 300,332 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Portugal Telecom SGPS SA* (a) | 85,775 | 872,953 | ||||||
Electric Utilities 0.1% | ||||||||
| EDP — Energias de Portugal SA | 261,849 | 937,096 | ||||||
Food & Staples Retailing 0.0%† | ||||||||
| Jeronimo Martins SGPS SA* (a) | 33,211 | 343,649 | ||||||
Oil, Gas & Consumable Fuels 0.0%† | ||||||||
| Galp Energia SGPS SA, Class B | 23,256 | 372,847 | ||||||
Transportation Infrastructure 0.0%† | ||||||||
| Brisa Auto-Estradas de Portugal SA (a) | 36,281 | 257,188 | ||||||
| 3,785,156 | ||||||||
SINGAPORE 1.5% | ||||||||
Aerospace & Defense 0.0%† | ||||||||
| Singapore Technologies Engineering Ltd. | 232,000 | 532,855 | ||||||
56 Semiannual Report 2010
| Common Stocks (continued) | ||||||||
SINGAPORE (continued) | ||||||||
Aerospace & Defense (continued) | ||||||||
Airlines 0.1% | ||||||||
| Singapore Airlines Ltd. | 80,613 | $ | 885,027 | |||||
Commercial Banks 0.5% | ||||||||
| DBS Group Holdings Ltd. | 258,050 | 2,841,387 | ||||||
| Oversea-Chinese Banking Corp. Ltd. | 387,600 | 2,461,610 | ||||||
| United Overseas Bank Ltd. | 183,500 | 2,684,591 | ||||||
| 7,987,588 | ||||||||
Distributors 0.0%† | ||||||||
| Jardine Cycle & Carriage Ltd. | 18,604 | 409,048 | ||||||
Diversified Financial Services 0.1% | ||||||||
| Singapore Exchange Ltd. | 124,900 | 740,497 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| Singapore Telecommunications Ltd. | 1,201,003 | 2,649,156 | ||||||
Food & Staples Retailing 0.0%† | ||||||||
| Olam International Ltd. (a) | 180,500 | 340,582 | ||||||
Food Products 0.1% | ||||||||
| Golden Agri-Resources Ltd. | 1,044,771 | 441,336 | ||||||
| Wilmar International Ltd. | 192,158 | 964,834 | ||||||
| 1,406,170 | ||||||||
Hotels, Restaurants & Leisure 0.0%† | ||||||||
| Genting Singapore PLC* (a) | 813,217 | 563,111 | ||||||
Industrial Conglomerates 0.2% | ||||||||
| Fraser and Neave Ltd. | 167,369 | 594,718 | ||||||
| Keppel Corp. Ltd. | 192,000 | 1,362,331 | ||||||
| SembCorp Industries Ltd. | 138,243 | 420,480 | ||||||
| 2,377,529 | ||||||||
Machinery 0.1% | ||||||||
| Cosco Corp. Singapore Ltd. (a) | 119,066 | 148,865 | ||||||
| SembCorp Marine Ltd. (a) | 151,200 | 462,676 | ||||||
| Yangzijiang Shipbuilding Holdings Ltd. (a) | 221,166 | 214,842 | ||||||
| 826,383 | ||||||||
Marine 0.0%† | ||||||||
| Neptune Orient Lines Ltd.* | 121,649 | 190,819 | ||||||
Media 0.0%† | ||||||||
| Singapore Press Holdings Ltd. | 239,500 | 715,362 | ||||||
Real Estate Investment Trusts (REITs) 0.1% | ||||||||
| Ascendas Real Estate Investment Trust | 211,306 | 295,013 | ||||||
| CapitaMall Trust | 335,800 | 473,657 | ||||||
| 768,670 | ||||||||
Real Estate Management & Development 0.1% | ||||||||
| CapitaLand Ltd. | 387,345 | 1,046,306 | ||||||
| CapitaMalls Asia Ltd. | 203,800 | 321,495 | ||||||
| City Developments Ltd. | 75,099 | 576,952 | ||||||
| UOL Group Ltd. | 110,120 | 305,668 | ||||||
| 2,250,421 | ||||||||
Road & Rail 0.0%† | ||||||||
| ComfortDelgro Corp. Ltd. | 280,620 | 318,798 | ||||||
Wireless Telecommunication Services 0.0%† | ||||||||
| StarHub Ltd. | 138,181 | 234,543 | ||||||
| 23,196,559 | ||||||||
SPAIN 3.8% | ||||||||
Airlines 0.0%† | ||||||||
| Iberia Lineas Aereas de Espana* | 71,773 | 239,939 | ||||||
Biotechnology 0.0%† | ||||||||
| Grifols SA (a) | 17,268 | 218,614 | ||||||
Commercial Banks 1.6% | ||||||||
| Banco Bilbao Vizcaya Argentaria SA | 542,105 | 7,129,863 | ||||||
| Banco de Sabadell SA (a) | 138,172 | 701,069 | ||||||
| Banco de Valencia SA (a) | 28,456 | 165,907 | ||||||
| Banco Popular Espanol SA (a) | 143,933 | 1,019,126 | ||||||
| Banco Santander SA (a) | 1,245,842 | 15,841,314 | ||||||
| Bankinter SA (a) | 47,862 | 353,344 | ||||||
| 25,210,623 | ||||||||
Construction & Engineering 0.1% | ||||||||
| ACS Actividades de Construccion y Servicios SA (a) | 22,600 | 1,024,814 | ||||||
| Ferrovial SA | 63,758 | 561,543 | ||||||
| Fomento de Construcciones y Contratas SA (a) | 5,751 | 188,194 | ||||||
| Sacyr Vallehermoso SA* (a) | 13,066 | 99,691 | ||||||
| 1,874,242 | ||||||||
Diversified Financial Services 0.1% | ||||||||
| Criteria Caixacorp SA | 143,853 | 717,404 | ||||||
Diversified Telecommunication Services 1.0% | ||||||||
| Telefonica SA | 640,962 | 14,508,317 | ||||||
Electric Utilities 0.4% | ||||||||
| Acciona SA | 3,829 | 379,533 | ||||||
| Iberdrola SA | 568,188 | 4,509,164 | ||||||
| Red Electrica Corp. SA | 16,306 | 772,570 | ||||||
| 5,661,267 | ||||||||
Electrical Equipment 0.0%† | ||||||||
| Gamesa Corp. Tecnologica SA | 26,325 | 323,479 | ||||||
Gas Utilities 0.1% | ||||||||
| Enagas | 24,868 | 498,719 | ||||||
| Gas Natural SDG SA | 33,732 | 575,899 | ||||||
| 1,074,618 | ||||||||
2010 Semiannual Report 57
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
SPAIN (continued) | ||||||||
Independent Power Producers & Energy Traders 0.1% | ||||||||
| EDP Renovaveis SA* | 37,892 | $ | 269,377 | |||||
| Iberdrola Renovables SA | 127,285 | 493,461 | ||||||
| 762,838 | ||||||||
Information Technology Services 0.0%† | ||||||||
| Indra Sistemas SA | 14,845 | 297,598 | ||||||
Insurance 0.0%† | ||||||||
| Mapfre SA (a) | 110,277 | 360,951 | ||||||
Machinery 0.0%† | ||||||||
| Zardoya Otis SA | 19,618 | 306,304 | ||||||
Media 0.0%† | ||||||||
| Gestevision Telecinco SA | 14,857 | 211,254 | ||||||
Metals & Mining 0.0%† | ||||||||
| Acerinox SA | 21,083 | 419,716 | ||||||
Oil, Gas & Consumable Fuels 0.2% | ||||||||
| Repsol YPF SA | 114,906 | 2,697,963 | ||||||
Specialty Retail 0.1% | ||||||||
| Industria de Diseno Textil SA | 33,164 | 2,052,626 | ||||||
Transportation Infrastructure 0.1% | ||||||||
| Abertis Infraestructuras SA (a) | 42,420 | 738,751 | ||||||
| 57,676,504 | ||||||||
SWEDEN 2.8% | ||||||||
Building Products 0.1% | ||||||||
| Assa Abloy AB, Class B (a) | 45,448 | 1,047,899 | ||||||
Capital Markets 0.0%† | ||||||||
| Ratos AB, Class B | 16,611 | 519,828 | ||||||
Commercial Banks 0.6% | ||||||||
| Nordea Bank AB | 490,411 | 4,784,564 | ||||||
| Skandinaviska Enskilda Banken AB, Class A* | 239,872 | 1,635,146 | ||||||
| Svenska Handelsbanken AB, Class A (a) | 72,750 | 2,040,016 | ||||||
| Swedbank AB* | 97,600 | 1,050,858 | ||||||
| 9,510,584 | ||||||||
Commercial Services & Supplies 0.0%† | ||||||||
| Securitas AB, Class B (a) | 45,885 | 483,206 | ||||||
Communications Equipment 0.4% | ||||||||
| Telefonaktiebolaget LM Ericsson, Class B | 458,124 | 5,286,995 | ||||||
Construction & Engineering 0.1% | ||||||||
| Skanska AB, Class B | 58,256 | 965,264 | ||||||
Diversified Financial Services 0.1% | ||||||||
| Investor AB, Class B | 66,600 | 1,259,950 | ||||||
| Kinnevik Investment AB, Class B | 31,603 | 580,043 | ||||||
| 1,839,993 | ||||||||
Diversified Telecommunication Services 0.2% | ||||||||
| Tele2 AB, Class B | 44,899 | 758,787 | ||||||
| TeliaSonera AB | 342,401 | 2,346,878 | ||||||
| 3,105,665 | ||||||||
Health Care Equipment & Supplies 0.0%† | ||||||||
| Getinge AB, Class B (a) | 29,071 | 649,832 | ||||||
Household Durables 0.1% | ||||||||
| Electrolux AB | 39,249 | 1,009,435 | ||||||
| Husqvarna AB, Class B (a) | 61,391 | 455,531 | ||||||
| 1,464,966 | ||||||||
Machinery 0.7% | ||||||||
| Alfa Laval AB (a) | 46,689 | 695,689 | ||||||
| Atlas Copco AB, Class A (a) | 100,458 | 1,615,776 | ||||||
| Atlas Copco AB, Class B (a) | 63,671 | 922,393 | ||||||
| Sandvik AB*(a) | 150,219 | 2,153,070 | ||||||
| Scania AB, Class B (a) | 46,407 | 809,826 | ||||||
| SKF AB, Class B (a) | 63,086 | 1,258,441 | ||||||
| Volvo AB, Class A* | 65,399 | 794,151 | ||||||
| Volvo AB, Class B* | 161,538 | 2,004,109 | ||||||
| 10,253,455 | ||||||||
Metals & Mining 0.0%† | ||||||||
| SSAB AB, Class A | 29,918 | 523,867 | ||||||
| Ssab Svenskt Stal AG Series B, | 8,917 | 138,563 | ||||||
| 662,430 | ||||||||
Oil, Gas & Consumable Fuels 0.0%† | ||||||||
| Lundin Petroleum AB* | 32,091 | 195,153 | ||||||
Paper & Forest Products 0.1% | ||||||||
| Holmen AB, Class B (a) | 7,619 | 192,149 | ||||||
| Svenska Cellulosa AB, Class B (a) | 86,469 | 1,126,684 | ||||||
| 1,318,833 | ||||||||
Specialty Retail 0.3% | ||||||||
| Hennes & Mauritz AB, Class B (a) | 76,944 | 4,909,695 | ||||||
Tobacco 0.1% | ||||||||
| Swedish Match AB (a) | 37,428 | 848,480 | ||||||
| 43,062,278 | ||||||||
SWITZERLAND 7.9% | ||||||||
Biotechnology 0.0%† | ||||||||
| Actelion Ltd. REG* | 15,078 | 611,526 | ||||||
Building Products 0.1% | ||||||||
| Geberit AG REG | 6,159 | 1,093,048 | ||||||
Capital Markets 1.1% | ||||||||
| Credit Suisse Group AG REG* | 170,159 | 7,809,919 | ||||||
| GAM Holding Ltd.* | 31,816 | 395,203 | ||||||
| Julius Baer Group Ltd. | 31,816 | 1,093,459 | ||||||
| UBS AG REG* | 537,236 | 8,322,957 | ||||||
| 17,621,538 | ||||||||
58 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
SWITZERLAND (continued) | ||||||||
Chemicals 0.3% | ||||||||
| Givaudan SA REG | 1,103 | $ | 959,804 | |||||
| Syngenta AG REG | 14,713 | 3,727,829 | ||||||
| 4,687,633 | ||||||||
Computers & Peripherals 0.0%† | ||||||||
| Logitech International SA REG* (a) | 27,443 | 448,017 | ||||||
Construction Materials 0.2% | ||||||||
| Holcim Ltd.* | 37,291 | 2,778,874 | ||||||
Diversified Financial Services 0.0%† | ||||||||
| Pargesa Holding SA | 4,636 | 376,902 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Swisscom AG (a) | 3,625 | 1,230,190 | ||||||
Electric Utilities 0.0%† | ||||||||
| BKW FMB Energie AG | 1,904 | 126,862 | ||||||
Electrical Equipment 0.4% | ||||||||
| ABB Ltd. REG* | 334,625 | 6,418,611 | ||||||
Food Products 1.8% | ||||||||
| Aryzta AG (a) | 13,844 | 528,974 | ||||||
| Lindt & Spruengli AG (a) | 139 | 688,622 | ||||||
| Nestle SA REG | 525,623 | 25,719,216 | ||||||
| 26,936,812 | ||||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Nobel Biocare Holding AG REG | 18,741 | 410,768 | ||||||
| Sonova Holding AG REG | 6,990 | 866,505 | ||||||
| Straumann Holding AG | 1,000 | 245,719 | ||||||
| 1,522,992 | ||||||||
Insurance 0.6% | ||||||||
| Baloise Holding AG REG | 7,537 | 593,475 | ||||||
| Swiss Life Holding AG REG* | 4,495 | 546,393 | ||||||
| Swiss Reinsurance Co. Ltd. | 52,714 | 2,286,125 | ||||||
| Zurich Financial Services AG | 22,734 | 5,040,010 | ||||||
| 8,466,003 | ||||||||
Life Sciences Tools & Services 0.0%† | ||||||||
| Lonza Group AG (a) | 6,934 | 541,104 | ||||||
Machinery 0.1% | ||||||||
| Schindler Holding AG | 11,705 | 1,023,875 | ||||||
Marine 0.1% | ||||||||
| Kuehne + Nagel International AG | 8,140 | 851,847 | ||||||
Metals & Mining 0.3% | ||||||||
| Xstrata PLC | 286,858 | 4,705,576 | ||||||
Pharmaceuticals 2.2% | ||||||||
| Novartis AG | 321,221 | 16,377,374 | ||||||
| Roche Holding AG | 106,449 | 16,807,146 | ||||||
| 33,184,520 | ||||||||
Professional Services 0.1% | ||||||||
| Adecco SA (a) | 20,429 | 1,201,591 | ||||||
| SGS SA | 804 | 1,044,354 | ||||||
| 2,245,945 | ||||||||
Semiconductors & Semiconductor Equipment 0.1% | ||||||||
| STMicroelectronics NV | 102,946 | 953,248 | ||||||
Textiles, Apparel & Luxury Goods 0.3% | ||||||||
| Compagnie Financiere Richemont SA, Class A | 82,170 | 3,030,754 | ||||||
| Swatch Group AG, (The) | 11,099 | 1,713,947 | ||||||
| 4,744,701 | ||||||||
| 120,569,824 | ||||||||
UNITED KINGDOM 18.4% | ||||||||
Aerospace & Defense 0.4% | ||||||||
| BAE Systems PLC | 550,859 | 2,887,168 | ||||||
| Cobham PLC | 167,466 | 678,833 | ||||||
| Rolls-Royce Group PLC, Class C* (b) | 24,684,840 | 37,769 | ||||||
| Rolls-Royce Group PLC* | 274,276 | 2,416,770 | ||||||
| 6,020,540 | ||||||||
Airlines 0.0%† | ||||||||
| British Airways PLC* (a) | 82,024 | 284,384 | ||||||
Beverages 0.7% | ||||||||
| Diageo PLC | 377,335 | 6,435,491 | ||||||
| SABMiller PLC | 143,520 | 4,499,355 | ||||||
| 10,934,846 | ||||||||
Capital Markets 0.2% | ||||||||
| 3I Group PLC | 155,338 | 640,805 | ||||||
| ICAP PLC | 76,023 | 438,609 | ||||||
| Investec PLC | 61,049 | 482,840 | ||||||
| Man Group PLC | 276,429 | 1,020,499 | ||||||
| Schroders PLC | 16,849 | 356,213 | ||||||
| 2,938,966 | ||||||||
Chemicals 0.1% | ||||||||
| Johnson Matthey PLC | 33,945 | 902,765 | ||||||
Commercial Banks 3.4% | ||||||||
| Barclays PLC | 1,739,162 | 8,933,741 | ||||||
| HSBC Holdings PLC | 2,638,991 | 26,871,274 | ||||||
| Lloyds Banking Group PLC* | 5,746,566 | 5,749,394 | ||||||
| Royal Bank of Scotland Group PLC* | 2,536,331 | 2,075,483 | ||||||
| Standard Chartered PLC | 306,517 | 8,176,176 | ||||||
| 51,806,068 | ||||||||
Commercial Services & Supplies 0.1% | ||||||||
| G4S PLC | 185,050 | 753,245 | ||||||
| Serco Group PLC | 71,383 | 685,125 | ||||||
| 1,438,370 | ||||||||
Construction & Engineering 0.0%† | ||||||||
| Balfour Beatty PLC | 102,981 | 435,881 | ||||||
2010 Semiannual Report 59
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
UNITED KINGDOM (continued) | ||||||||
Construction & Engineering (continued) | ||||||||
Containers & Packaging 0.0%† | ||||||||
| Rexam PLC | 128,431 | $ | 633,278 | |||||
Diversified Financial Services 0.0%† | ||||||||
| London Stock Exchange Group PLC | 21,555 | 224,241 | ||||||
Diversified Telecommunication Services 0.2% | ||||||||
| BT Group PLC | 1,211,471 | 2,331,216 | ||||||
| Cable & Wireless Worldwide PLC* | 371,694 | 491,366 | ||||||
| Inmarsat PLC | 62,311 | 725,014 | ||||||
| 3,547,596 | ||||||||
Electric Utilities 0.2% | ||||||||
| Scottish & Southern Energy PLC | 137,803 | 2,285,305 | ||||||
Energy Equipment & Services 0.1% | ||||||||
| Amec PLC | 54,185 | 688,590 | ||||||
| Petrofac Ltd. | 28,805 | 498,186 | ||||||
| 1,186,776 | ||||||||
Food & Staples Retailing 0.7% | ||||||||
| J Sainsbury PLC | 170,226 | 877,261 | ||||||
| Tesco PLC | 1,201,138 | 7,966,789 | ||||||
| WM Morrison Supermarkets PLC | 339,046 | 1,500,010 | ||||||
| 10,344,060 | ||||||||
Food Products 0.4% | ||||||||
| Associated British Foods PLC | 60,359 | 927,275 | ||||||
| Unilever PLC | 192,758 | 5,792,400 | ||||||
| 6,719,675 | ||||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Smith & Nephew PLC | 133,622 | 1,385,337 | ||||||
Hotels, Restaurants & Leisure 0.4% | ||||||||
| Carnival PLC | 26,989 | 1,169,144 | ||||||
| Compass Group PLC | 288,853 | 2,349,176 | ||||||
| Intercontinental Hotels Group PLC | 37,541 | 661,877 | ||||||
| Thomas Cook Group PLC | 118,106 | 448,033 | ||||||
| Tui Travel PLC | 81,883 | 349,326 | ||||||
| Whitbread PLC | 25,542 | 596,894 | ||||||
| 5,574,450 | ||||||||
Household Products 0.3% | ||||||||
| Reckitt Benckiser Group PLC | 93,383 | 4,851,045 | ||||||
Independent Power Producers & Energy Traders 0.1% | ||||||||
| Drax Group PLC | 55,054 | 303,815 | ||||||
| International Power PLC | 245,778 | 1,244,050 | ||||||
| 1,547,865 | ||||||||
Industrial Conglomerates 0.1% | ||||||||
| Smiths Group PLC | 56,989 | 979,863 | ||||||
| Tomkins PLC | 132,879 | 502,695 | ||||||
| 1,482,558 | ||||||||
Insurance 0.7% | ||||||||
| Admiral Group PLC | 24,949 | 500,373 | ||||||
| Aviva PLC | 418,915 | 2,214,536 | ||||||
| Legal & General Group PLC | 858,608 | 1,116,476 | ||||||
| Old Mutual PLC* | 772,743 | 1,363,791 | ||||||
| Prudential PLC | 384,400 | 3,374,797 | ||||||
| Resolution Ltd. | 327,076 | 364,247 | ||||||
| RSA Insurance Group PLC | 488,085 | 903,382 | ||||||
| Standard Life PLC | 324,155 | 986,165 | ||||||
| 10,823,767 | ||||||||
Internet & Catalog Retail 0.0%† | ||||||||
| Home Retail Group PLC | 153,371 | 643,072 | ||||||
Machinery 0.0%† | ||||||||
| Invensys PLC | 117,422 | 604,725 | ||||||
Media 0.5% | ||||||||
| British Sky Broadcasting Group PLC | 166,134 | 1,555,091 | ||||||
| Pearson PLC | 126,479 | 2,021,254 | ||||||
| Reed Elsevier PLC | 190,829 | 1,493,983 | ||||||
| WPP PLC | 196,589 | 2,084,299 | ||||||
| 7,154,627 | ||||||||
Metals & Mining 2.2% | ||||||||
| Anglo American PLC* | 199,287 | 8,464,857 | ||||||
| Antofagasta PLC | 65,052 | 986,306 | ||||||
| BHP Billiton PLC | 334,055 | 10,198,824 | ||||||
| Eurasian Natural Resources Corp. | 37,171 | 689,156 | ||||||
| Kazakhmys PLC | 31,349 | 664,150 | ||||||
| Lonmin PLC* | 22,443 | 648,393 | ||||||
| Rio Tinto PLC | 207,656 | 10,735,896 | ||||||
| Vedanta Resources PLC | 22,477 | 859,211 | ||||||
| 33,246,793 | ||||||||
Multiline Retail 0.2% | ||||||||
| Marks & Spencer Group PLC | 254,722 | 1,424,402 | ||||||
| Next PLC | 32,767 | 1,145,113 | ||||||
| 2,569,515 | ||||||||
Multi-Utilities 0.5% | ||||||||
| Centrica PLC | 785,660 | 3,529,050 | ||||||
| National Grid PLC | 368,885 | 3,557,128 | ||||||
| United Utilities Group PLC | 114,075 | 933,507 | ||||||
| 8,019,685 | ||||||||
Oil, Gas & Consumable Fuels 2.4% | ||||||||
| BG Group PLC | 512,825 | 8,668,082 | ||||||
| BP PLC | 2,844,448 | 24,808,965 | ||||||
| Cairn Energy PLC* | 224,790 | 1,371,847 | ||||||
| EnQuest plc* | 25,628 | 38,702 | ||||||
| Tullow Oil PLC | 132,511 | 2,307,865 | ||||||
| 37,195,461 | ||||||||
60 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
UNITED KINGDOM (continued) | ||||||||
Pharmaceuticals 1.6% | ||||||||
| AstraZeneca PLC | 220,867 | $ | 9,759,368 | |||||
| GlaxoSmithKline PLC | 785,555 | 14,580,651 | ||||||
| 24,340,019 | ||||||||
Professional Services 0.1% | ||||||||
| Capita Group PLC (The) | 91,114 | 1,111,298 | ||||||
Real Estate Investment Trusts (REITs) 0.3% | ||||||||
| British Land Co. PLC | 136,948 | 972,510 | ||||||
| Hammerson PLC | 101,892 | 594,787 | ||||||
| Land Securities Group PLC | 120,427 | 1,204,325 | ||||||
| Liberty International PLC (a) | 72,352 | 539,521 | ||||||
| Segro PLC | 106,329 | 501,903 | ||||||
| 3,813,046 | ||||||||
Road & Rail 0.0%† | ||||||||
| Firstgroup PLC | 72,664 | 422,262 | ||||||
Software 0.1% | ||||||||
| Autonomy Corp. PLC* | 31,364 | 860,354 | ||||||
| Sage Group PLC (The) | 205,843 | 769,346 | ||||||
| 1,629,700 | ||||||||
Specialty Retail 0.1% | ||||||||
| Kingfisher PLC | 378,104 | 1,440,988 | ||||||
Textiles, Apparel & Luxury Goods 0.0%† | ||||||||
| Burberry Group PLC | 63,436 | 649,707 | ||||||
Tobacco 0.9% | ||||||||
| British American Tobacco PLC | 301,752 | 9,488,474 | ||||||
| Imperial Tobacco Group PLC | 156,482 | 4,457,858 | ||||||
| 13,946,332 | ||||||||
Trading Companies & Distributors 0.1% | ||||||||
| Bunzl PLC | 47,925 | 558,092 | ||||||
| Wolseley PLC* | 45,182 | 1,128,414 | ||||||
| 1,686,506 | ||||||||
Water Utilities 0.0%† | ||||||||
| Severn Trent PLC | 34,630 | 612,355 | ||||||
Wireless Telecommunication Services 1.2% | ||||||||
| Vodafone Group PLC | 7,976,568 | 17,674,883 | ||||||
| 282,128,747 | ||||||||
UNITED STATES 0.1% | ||||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Synthes, Inc. | 8,950 | 1,015,570 | ||||||
Total Common Stocks (cost $1,567,493,189) | 1,510,342,749 | |||||||
| Preferred Stocks 0.5% | ||||||||
GERMANY 0.5% (a) | ||||||||
Automobiles 0.3% | ||||||||
| Bayerische Motoren Werke AG | 8,063 | 287,258 | ||||||
| Porsche Automobil Holding SE | 13,193 | 763,450 | ||||||
| Volkswagen AG (a) | 27,169 | 2,624,880 | ||||||
| 3,675,588 | ||||||||
Health Care Equipment & Supplies 0.1% | ||||||||
| Fresenius SE | 12,148 | 880,705 | ||||||
Household Products 0.1% | ||||||||
| Henkel AG & Co. KGaA (a) | 26,862 | 1,440,253 | ||||||
Multi-Utilities 0.0%† | ||||||||
| RWE AG (a) | 6,674 | 511,188 | ||||||
Total Preferred Stocks (cost $6,343,170) | 6,507,734 | |||||||
| Rights 0.0% | ||||||||
| Number of Rights | Market Value | |||||||
NORWAY 0.0%† | ||||||||
Electrical Equipment 0.0%† | ||||||||
| Renewable Energy Corp. ASA 5/20/2010*(b) | 25,886 | 35,896 | ||||||
SPAIN 0.0%† | ||||||||
Commercial Banks 0.0%† | ||||||||
| Banco de Valencia SA 5/10/2010* | 28,456 | 3,334 | ||||||
Total Rights (cost $117,701) | 39,230 | |||||||
| Warrant 0.0% | ||||||||
| Number of Warrants | Market Value | |||||||
HONG KONG 0.0% | ||||||||
Real Estate Development & Management 0.0% | ||||||||
| Henderson Land Development Co. Ltd.*(b) | 32,160 | $ | 0 | |||||
Total Warrant (cost $0) | 0 | |||||||
| Mutual Fund 0.3% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 0.3% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15%(c) | 4,938,517 | 4,938,517 | ||||||
Total Mutual Fund (cost $4,938,517) | 4,938,517 | |||||||
2010 Semiannual Report 61
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide International Index Fund (Continued)
| Repurchase Agreements 12.5% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 04/30/2010, due 05/03/2010, repurchase price $185,089,031, collateralized by U.S. Government Agency Securities ranging from 4.0% - 6.0%, maturing 07/01/2023 - 04/01/2040; total market value $188,806,701. (d) | $ | 185,086,100 | $ | 185,086,100 | ||||
| Goldman Sachs & Co., 0.19%, dated 04/30/2010, due 05/03/2010, repurchase price $7,000,111, collateralized by U.S. Government Agency Securities ranging from 1.0% - 5.0%, maturing 06/28/2010 - 04/27/2029; total market value $7,140,005. (d) | 7,000,000 | 7,000,000 | ||||||
Total Repurchase Agreements (cost $192,086,100) | 192,086,100 | |||||||
Total Investments (cost $1,770,978,677) (e) — 111.8% | 1,713,914,330 | |||||||
Liabilities in excess of other assets — (11.8)% | (180,858,400 | ) | ||||||
NET ASSETS — 100.0% | $ | 1,533,055,930 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $181,932,764. | |
| (b) | Fair Valued Security. | |
| (c) | Represents 7-day effective yield as of April 30, 2010. | |
| (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, 2010 was $192,086,100. | |
| (e) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| † | Amount rounds to less than 0.1%. |
| AB | Stock Company | |
| AG | Stock Corporation | |
| AS | Stock Corporation | |
| ASA | Stock Corporation | |
| CVA | Dutch Certificate | |
| KGaA | Limited Partnership with shares | |
| KK | Joint Stock Company | |
| Ltd. | Limited | |
| NL | Netherlands | |
| NV | Public Traded Company | |
| OYJ | Public Traded Company | |
| PLC | Public Limited Company | |
| REG | Registered Shares | |
| REIT | Real Estate Investment Trust | |
| RSP | Savings Shares | |
| SA | Stock Company | |
| SCA | Limited partnership with share capital | |
| SCPA | Italian consortium joint-stock company | |
| SE | Sweden | |
| SGPS | Holding Enterprise | |
| SP | Spain | |
| SpA | Limited Share Company | |
| VVPR | Belgian Dividend Coupon |
At April 30, 2010, the Fund’s open futures contracts were as follows (See Note 2):
| National Value | Unrealized | |||||||||||||
| Number of | Long | Covered by | Appreciation | |||||||||||
| Contracts | Contracts | Expiration | Contracts | (Depreciation) | ||||||||||
| 54 | E-Mini MSCI EAFE Index | 06/18/10 | $ | 4,118,850 | $ | (163,698 | ) | |||||||
| 108 | Euro STOXX 50 | 06/18/10 | 3,951,530 | (180,957 | ) | |||||||||
| 33 | FTSE 100 Index | 06/18/10 | 2,780,828 | (57,819 | ) | |||||||||
| 10 | SPI 200 Index | 06/17/10 | 1,114,755 | (10,666 | ) | |||||||||
| 25 | Topix Index | 06/10/10 | 2,616,171 | 78,425 | ||||||||||
| $ | 14,582,134 | $ | (334,715 | ) | ||||||||||
The accompanying notes are an integral part of these financial statements.
62 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| International | |||||
| Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $1,578,892,577)* | $ | 1,521,828,230 | |||
| Repurchase agreements, at value and cost | 192,086,100 | ||||
| Total Investments | 1,713,914,330 | ||||
| Cash | 60,964 | ||||
| Deposits with broker for futures | 1,632,000 | ||||
| Foreign currencies, at value (cost $9,611,005) | 9,637,603 | ||||
| Interest and dividends receivable | 5,789,798 | ||||
| Security lending income receivable | 259,335 | ||||
| Receivable for capital shares issued | 538,250 | ||||
| Reclaims receivable | 1,340,135 | ||||
| Prepaid expenses and other assets | 73,614 | ||||
| Total Assets | 1,733,246,029 | ||||
Liabilities: | |||||
| Payable for investments purchased | 6,177,287 | ||||
| Payable for capital shares redeemed | 1,024,058 | ||||
| Payable for variation margin on futures contracts | 91,857 | ||||
| Payable upon return of securities loaned (Note 2) | 192,086,100 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 273,905 | ||||
| Fund administration fees | 151,486 | ||||
| Distribution fees | 80,839 | ||||
| Administrative servicing fees | 56,941 | ||||
| Accounting and transfer agent fees | 65,724 | ||||
| Trustee fees | 15,098 | ||||
| Custodian fees | 16,857 | ||||
| Compliance program costs (Note 3) | 13,727 | ||||
| Professional fees | 64,168 | ||||
| Printing fees | 34,222 | ||||
| Other | 37,830 | ||||
| Total Liabilities | 200,190,099 | ||||
Net Assets | $ | 1,533,055,930 | |||
Represented by: | |||||
| Capital | $ | 1,604,377,075 | |||
| Accumulated undistributed net investment income | 10,001,401 | ||||
| Accumulated net realized losses from investments, futures and foreign currency transactions | (23,964,928 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | (57,064,347 | ) | |||
| Net unrealized appreciation/(depreciation) from futures (Note 2) | (334,715 | ) | |||
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 41,444 | ||||
Net Assets | $ | 1,533,055,930 | |||
| * | Includes value of securities on loan of $181,932,764 (Note 2) |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 63
Statement of Assets and Liabilities (Continued)
| Nationwide | |||||
| International | |||||
| Index Fund | |||||
Net Assets: | |||||
| Class A Shares | $ | 377,087,371 | |||
| Class B Shares | 223,535 | ||||
| Class C Shares | 752,532 | ||||
| Class R2 Shares | 5,817 | ||||
| Institutional Class Shares | 1,154,986,675 | ||||
| Total | $ | 1,533,055,930 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 54,275,291 | ||||
| Class B Shares | 32,942 | ||||
| Class C Shares | 113,279 | ||||
| Class R2 Shares | 838 | ||||
| Institutional Class Shares | 165,552,108 | ||||
| Total | 219,974,458 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 6.95 | |||
| Class B Shares (a) | $ | 6.79 | |||
| Class C Shares (b) | $ | 6.64 | |||
| Class R2 Shares | $ | 6.94 | |||
| Institutional Class Shares | $ | 6.98 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 7.37 | |||
| 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.
64 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| International | |||||
| Index Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 1,345 | |||
| Dividend income | 23,075,245 | ||||
| Income from securities lending (Note 2) | 534,056 | ||||
| Foreign tax withholding | (2,311,969 | ) | |||
| Total Income | 21,298,677 | ||||
EXPENSES: | |||||
| Investment advisory fees | 2,050,511 | ||||
| Fund administration fees | 867,930 | ||||
| Distribution fees Class A | 460,090 | ||||
| Distribution fees Class B | 1,527 | ||||
| Distribution fees Class C | 3,568 | ||||
| Distribution fees Class R2 | 14 | ||||
| Administrative servicing fees Class A | 276,055 | ||||
| Registration and filing fees | 27,654 | ||||
| Professional fees | 64,030 | ||||
| Printing fees | 35,106 | ||||
| Trustee fees | 37,465 | ||||
| Custodian fees | 34,793 | ||||
| Accounting and transfer agent fees | 87,828 | ||||
| Compliance program costs (Note 3) | 7,607 | ||||
| Other | 36,418 | ||||
| Total expenses before earnings credit and expenses reimbursed | 3,990,596 | ||||
| Earnings credit (Note 6) | (69 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (467,030 | ) | |||
| Net Expenses | 3,523,497 | ||||
NET INVESTMENT INCOME | 17,775,180 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (1,284,314 | ) | |||
| Net realized gains from futures transactions (Note 2) | 885,097 | ||||
| Net realized losses from foreign currency transactions | (715,688 | ) | |||
| Net realized losses from investments, futures and foreign currency transactions | (1,114,905 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments | 24,292,511 | ||||
| Net change in unrealized appreciation/(depreciation) from futures (Note 2) | 417,235 | ||||
| Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts | 42,598 | ||||
| Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | (257,610 | ) | |||
| Net change in unrealized appreciation/(depreciation) from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies | 24,494,734 | ||||
| Net realized/unrealized gains from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies | 23,379,829 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 41,155,009 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 65
Statements of Changes in Net Assets
| Nationwide International Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 17,775,180 | $ | 39,128,868 | ||||||
| Net realized losses from investment, futures and foreign currency transactions | (1,114,905 | ) | (8,465,336 | ) | ||||||
| Net change in unrealized appreciation/(depreciation) from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies | 24,494,734 | 303,873,560 | ||||||||
| Change in net assets resulting from operations | 41,155,009 | 334,537,092 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (4,311,593 | ) | (8,787,908 | ) | ||||||
| Class B | (4,379 | ) | (9,396 | ) | ||||||
| Class C | (7,300 | ) | (16,301 | ) | ||||||
| Class R2 (a) | (65 | ) | (160 | ) | ||||||
| Institutional Class | (14,518,020 | ) | (38,890,142 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (26,827,471 | ) | |||||||
| Class B | – | (37,356 | ) | |||||||
| Class C | – | (69,280 | ) | |||||||
| Class R2 (a) | – | (596 | ) | |||||||
| Institutional Class | – | (101,652,007 | ) | |||||||
| Change in net assets from shareholder distributions | (18,841,357 | ) | (176,290,617 | ) | ||||||
| Change in net assets from capital transactions | 49,499,130 | 14,514,027 | ||||||||
| Change in net assets | 71,812,782 | 172,760,502 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 1,461,243,148 | 1,288,482,646 | ||||||||
| End of period | $ | 1,533,055,930 | $ | 1,461,243,148 | ||||||
| Accumulated undistributed net investment income | $ | 10,001,401 | $ | 11,067,578 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 32,751,986 | $ | 65,921,482 | ||||||
| Dividends reinvested | 4,278,003 | 35,390,835 | ||||||||
| Cost of shares redeemed (b) | (15,041,144 | ) | (41,816,685 | ) | ||||||
| Total Class A | 21,988,845 | 59,495,632 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 3,008 | 65,522 | ||||||||
| Dividends reinvested | 3,508 | 38,003 | ||||||||
| Cost of shares redeemed | (198,482 | ) | (89,389 | ) | ||||||
| Total Class B | (191,966 | ) | 14,136 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 124,281 | 165,829 | ||||||||
| Dividends reinvested | 5,146 | 45,208 | ||||||||
| Cost of shares redeemed (b) | (32,396 | ) | (300,697 | ) | ||||||
| Total Class C | 97,031 | (89,660 | ) | |||||||
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 5 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
66 Semiannual Report 2010
| Nationwide International Index Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 1,000 | $ | – | ||||||
| Dividends reinvested | 65 | 756 | ||||||||
| Cost of shares redeemed | (776 | ) | (1,800 | ) | ||||||
| Total Class R2 | 289 | (1,044 | ) | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 94,469,751 | 176,627,522 | ||||||||
| Dividends reinvested | 14,517,697 | 140,539,034 | ||||||||
| Cost of shares redeemed | (81,382,517 | ) | (362,071,593 | ) | ||||||
| Total Institutional Class | 27,604,931 | (44,905,037 | ) | |||||||
| Change in net assets from capital transactions | $ | 49,499,130 | $ | 14,514,027 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 4,676,979 | 11,340,751 | ||||||||
| Reinvested | 619,103 | 6,409,728 | ||||||||
| Redeemed | (2,126,957 | ) | (7,081,685 | ) | ||||||
| Total Class A Shares | 3,169,125 | 10,668,794 | ||||||||
Class B Shares | ||||||||||
| Issued | 426 | 10,675 | ||||||||
| Reinvested | 519 | 7,059 | ||||||||
| Redeemed | (27,919 | ) | (15,132 | ) | ||||||
| Total Class B Shares | (26,974 | ) | 2,602 | |||||||
Class C Shares | ||||||||||
| Issued | 18,931 | 29,266 | ||||||||
| Reinvested | 777 | 8,561 | ||||||||
| Redeemed | (4,837 | ) | (58,075 | ) | ||||||
| Total Class C Shares | 14,871 | (20,248 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Issued | 149 | – | ||||||||
| Reinvested | 9 | 138 | ||||||||
| Redeemed | (114 | ) | (298 | ) | ||||||
| Total Class R2 Shares | 44 | (160 | ) | |||||||
Institutional Class Shares | ||||||||||
| Issued | 13,317,765 | 33,095,502 | ||||||||
| Reinvested | 2,094,906 | 25,314,809 | ||||||||
| Redeemed | (11,539,315 | ) | (59,142,801 | ) | ||||||
| Total Institutional Class Shares | 3,873,356 | (732,490 | ) | |||||||
| Total change in shares: | 7,030,422 | 9,918,498 | ||||||||
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.
2010 Semiannual Report 67
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, 2010 (Unaudited) (f) | $ | 6 | .85 | 0 | .07 | 0 | .11 | 0 | .18 | (0 | .08) | – | (0 | .08) | – | $ | 6 | .95 | 2 | .69% | $ | 377,087,371 | 0 | .77% | 2 | .05% | 0 | .83% | 1 | .16% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .33 | 0 | .15 | 1 | .19 | 1 | .34 | (0 | .19) | (0 | .63) | (0 | .82) | – | $ | 6 | .85 | 24 | .50% | $ | 349,861,598 | 0 | .79% | 2 | .52% | 0 | .87% | 11 | .22% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .70 | 0 | .04 | 0 | .12 | 0 | .16 | (0 | .07) | – | (0 | .07) | – | $ | 6 | .79 | 2 | .44% | $ | 223,535 | 1 | .37% | 1 | .16% | 1 | .43% | 1 | .16% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .22 | 0 | .11 | 1 | .16 | 1 | .27 | (0 | .16) | (0 | .63) | (0 | .79) | – | $ | 6 | .70 | 23 | .79% | $ | 401,295 | 1 | .37% | 1 | .93% | 1 | .45% | 11 | .22% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .56 | 0 | .05 | 0 | .10 | 0 | .15 | (0 | .07) | – | (0 | .07) | – | $ | 6 | .64 | 2 | .35% | $ | 752,532 | 1 | .36% | 1 | .50% | 1 | .43% | 1 | .16% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .10 | 0 | .10 | 1 | .15 | 1 | .25 | (0 | .16) | (0 | .63) | (0 | .79) | – | $ | 6 | .56 | 23 | .69% | $ | 645,429 | 1 | .37% | 1 | .83% | 1 | .45% | 11 | .22% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 (f) | $ | 12 | .17 | 0 | .21 | (5 | .69) | (5 | .48) | (0 | .27) | (0 | .32) | (0 | .59) | – | $ | 6 | .10 | (46 | .98%) | $ | 724,073 | 1 | .37% | 2 | .17% | 1 | .42% | 12 | .76% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2007 (f) | $ | 10 | .25 | 0 | .16 | 2 | .25 | 2 | .41 | (0 | .19) | (0 | .30) | (0 | .49) | – | $ | 12 | .17 | 24 | .22% | $ | 1,665,407 | 1 | .37% | 1 | .69% | 1 | .39% | 6 | .15% | |||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2006 | $ | 8 | .44 | 0 | .11 | 2 | .04 | 2 | .15 | (0 | .09) | (0 | .25) | (0 | .34) | – | $ | 10 | .25 | 26 | .06% | $ | 639,287 | 1 | .37% | 1 | .36% | 1 | .41% | 8 | .66% | |||||||||||||||||||||||||||||||||||||||||||||
| Period Ended October 31, 2005 (g) | $ | 8 | .27 | 0 | .09 | 0 | .19 | 0 | .28 | (0 | .11) | – | (0 | .11) | – | $ | 8 | .44 | 3 | .63% | $ | 151,484 | 1 | .36% | 1 | .57% | 1 | .43% | 12 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .84 | 0 | .07 | 0 | .11 | 0 | .18 | (0 | .08) | – | (0 | .08) | – | $ | 6 | .94 | 2 | .67% | $ | 5,817 | 0 | .87% | 1 | .95% | 0 | .95% | 1 | .16% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .33 | 0 | .15 | 1 | .17 | 1 | .32 | (0 | .18) | (0 | .63) | (0 | .81) | – | $ | 6 | .84 | 24 | .36% | $ | 5,427 | 0 | .87% | 2 | .63% | 0 | .95% | 11 | .22% | |||||||||||||||||||||||||||||||||||||||||||||
| 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)(h) | $ | 10 | .96 | 0 | .21 | 1 | .57 | 1 | .78 | (0 | .14) | – | (0 | .14) | – | $ | 12 | .60 | 16 | .39% | $ | 1,164 | 0 | .76% | 2 | .82% | 0 | .77% | 6 | .15% | ||||||||||||||||||||||||||||||||||||||||||||||
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) | 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.
68 Semiannual Report 2010
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 6 | .87 | 0 | .09 | 0 | .11 | 0 | .20 | (0 | .09) | – | (0 | .09) | – | $ | 6 | .98 | 2 | .93% | $ | 1,154,986,675 | 0 | .37% | 2 | .43% | 0 | .43% | 1 | .16% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 6 | .35 | 0 | .18 | 1 | .19 | 1 | .37 | (0 | .22) | (0 | .63) | (0 | .85) | – | $ | 6 | .87 | 24 | .93% | $ | 1,110,329,399 | 0 | .37% | 3 | .02% | 0 | .45% | 11 | .22% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
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. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 69
| 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, 2010, the Nationwide Mid Cap Market Index Fund (Class A at NAV) returned 25.36% versus 25.78% for its benchmark, the S&P 400 Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Mid-Cap Core Funds (consisting of 414 funds as of April 30, 2010) was 23.09% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Global stock markets remained volatile during the entire reporting period, but the general pattern that has been in place since the markets bottomed in March 2009 persisted: The backdrop of a slowly improving economy and strong corporate earnings has allowed stock markets to post noticeable gains. A significant market correction in stocks occurred from mid-January to mid-February 2010, spurred by uneven economic data, concerns about the creditworthiness of European sovereign debt, and uncertainty surrounding the passage of health-care reform. By February 2010, U.S. stocks had dropped to -5.0% on a year-to-date basis, but these stocks subsequently experienced a multiweek rally that allowed them to return 15.7% during the reporting period. At the end of April, market volatility was rising and uncertainty plagued the escalating Greek sovereign debt crisis.
All 10 sectors within the Fund’s benchmark S&P 400 Index recorded positive returns during the reporting period. The strongest-performing sectors were materials, with 36.92%, and consumer discretionary, with 30.58%. The top five stocks that provided positive contributions to the Fund during the reporting period were Louisiana-Pacific Corp., Sotheby’s, Carpenter Technology Corp., Mariner Energy, Inc. and Netflix, Inc.
What areas of investment detracted from Fund performance?
Although sectors such as telecommunications services, with a return of 16.39%, consumer staples, with 16.53%, and utilities, with 18.55%, recorded positive returns in the Fund’s benchmark for the reporting period, these results significantly lagged those of the benchmark’s top-performing segments. On an individual-stock basis, Fund holdings that provided the greatest negative contributions to Fund performance during the reporting period were Global Payments Inc.; Corrections Corporation of America; Comstock Resources, Inc.; Dynegy Inc.; and Palm, Inc.
What is your outlook for the near term?
So far in 2010, a backdrop of moderate economic growth, low inflation, accommodative monetary policy and improving prospects for corporate earnings has been very supportive of risk asset prices. There are, however, a number of uncertainties and risks for investors to consider, including ongoing deleveraging issues (such as the uncertainty about Greece’s debt problems), escalating tensions between the United States and China over currency matters, and a general sense of unease regarding the strength and pace of the global recovery.
In our minds, there are two key risks that could derail the current cyclical bull market. The first would be a significant setback in economic activity that interrupts the growth in corporate revenues and earnings. The second would be an increase in inflationary pressures that could force the Federal Reserve Board into a rapid tightening of monetary policy. By our analysis, neither of these events is likely to occur. While the current recovery is far from robust, the number of positive trends leads us to believe that it should become sustainable. From an inflation perspective, it is our view that the amount of slack in the labor market (and in the economy as a whole) should prevent a dramatic rise in wage and price pressures.
From a short-term perspective, we acknowledge that markets remain under pressure due to sovereign debt issues in Europe, policy tightening in China and elsewhere, and uncertainty surrounding pending regulations for the financial services sector. In our view, however, the positive forces of improving economic growth, an absence of inflation, low interest rates and stronger corporate earnings should continue to move markets higher.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Managers:
Edward Corallo and Debra L. Jelilian
Edward Corallo and Debra L. Jelilian
70 Semiannual Report 2010
| Fund Performance | Nationwide Mid Cap Market Index Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 25.36% | 47.78% | 6.15% | 6.08% | |||||||||||||
| w/SC2 | 18.16% | 39.30% | 4.90% | 5.45% | ||||||||||||||
Class B3 | w/o SC1 | 25.00% | 47.20% | 5.53% | 5.48% | |||||||||||||
| w/SC4 | 20.00% | 42.20% | 5.20% | 5.48% | ||||||||||||||
Class C5 | w/o SC1 | 24.97% | 47.00% | 5.51% | 5.47% | |||||||||||||
| w/SC6 | 23.97% | 46.00% | 5.51% | 5.47% | ||||||||||||||
Class R27,8,9 | 25.22% | 47.66% | 6.12% | 6.06% | ||||||||||||||
Institutional Class7 | 25.56% | 48.47% | 6.59% | 6.52% | ||||||||||||||
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 | 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. | |
| 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 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. | |
| 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 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| 9 | 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. |
Expense Ratios
| Gross | Net | |||
| Expense | Expense | |||
| Ratio* | Ratio* | |||
| Class A | 0.74% | 0.72% | ||
| Class B | 1.34% | 1.32% | ||
| Class C | 1.34% | 1.32% | ||
| Class R2 | 1.04% | 1.02% | ||
| Institutional Class | 0.34% | 0.32% | ||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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. |
2010 Semiannual Report 71
| Shareholder | Nationwide Mid Cap Market Index Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
April 30, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Mid Cap Market | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Index Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,253.60 | 4.02 | 0.72 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.22 | 3.61 | 0.72 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,250.00 | 7.36 | 1.32 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.25 | 6.61 | 1.32 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,249.70 | 7.36 | 1.32 | |||||||||||||||
| Hypotheticalb | 1,000.00 | 1,018.25 | 6.61 | 1.32 | ||||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,252.20 | 4.47 | 0.80 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.83 | 4.01 | 0.80 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,255.60 | 1.79 | 0.32 | |||||||||||||||
| Shares | 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 with Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
72 Semiannual Report 2010
| Portfolio Summary | Nationwide Mid Cap Market Index Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 97 | .2% | ||
| Repurchase Agreement | 3 | .6% | ||
| Mutual Fund | 2 | .5% | ||
| Liabilities in excess of other assets | (3 | .3)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Real Estate Investment Trusts (REITs) | 7 | .2% | ||
| Machinery | 5 | .2% | ||
| Insurance | 4 | .3% | ||
| Specialty Retail | 4 | .2% | ||
| Health Care Equipment & Supplies | 3 | .7% | ||
| Commercial Banks | 3 | .7% | ||
| Oil, Gas & Consumable Fuels | 3 | .7% | ||
| Software | 3 | .4% | ||
| Health Care Providers & Services | 3 | .4% | ||
| Chemicals | 3 | .2% | ||
| Other Industries * | 58 | .0% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Invesco AIM Liquid Assets Portfolio | 2 | .5% | ||
| Vertex Pharmaceuticals, Inc. | 0 | .7% | ||
| Cree, Inc. | 0 | .7% | ||
| Newfield Exploration Co. | 0 | .7% | ||
| New York Community Bancorp, Inc. | 0 | .7% | ||
| Lubrizol Corp. | 0 | .6% | ||
| Joy Global, Inc. | 0 | .5% | ||
| Edwards Lifesciences Corp. | 0 | .5% | ||
| Macerich Co. (The) | 0 | .5% | ||
| Cimarex Energy Co. | 0 | .5% | ||
| Other Holdings * | 92 | .1% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. | |
| * | For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 73
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Mid Cap Market Index Fund
| Common Stocks 97.2% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 0.6% | ||||||||
| Alliant Techsystems, Inc.* | 28,700 | $ | 2,322,117 | |||||
| BE Aerospace, Inc.* | 88,559 | 2,631,088 | ||||||
| 4,953,205 | ||||||||
Airlines 0.3% | ||||||||
| AirTran Holdings, Inc.* | 124,060 | 655,037 | ||||||
| Alaska Air Group, Inc.* | 30,678 | 1,270,376 | ||||||
| JetBlue Airways Corp.* | 183,725 | 1,027,023 | ||||||
| 2,952,436 | ||||||||
Auto Components 0.8% | ||||||||
| BorgWarner, Inc.* | 103,140 | 4,470,087 | ||||||
| Gentex Corp. | 120,312 | 2,585,505 | ||||||
| 7,055,592 | ||||||||
Automobiles 0.1% | ||||||||
| Thor Industries, Inc. | 34,023 | 1,214,961 | ||||||
Beverages 0.3% | ||||||||
| Hansen Natural Corp.* | 62,300 | 2,746,184 | ||||||
Biotechnology 1.3% | ||||||||
| OSI Pharmaceuticals, Inc.* | 51,600 | 3,027,372 | ||||||
| United Therapeutics Corp.* | 42,200 | 2,400,758 | ||||||
| Vertex Pharmaceuticals, Inc.* | 174,842 | 6,778,624 | ||||||
| 12,206,754 | ||||||||
Building Products 0.2% | ||||||||
| Lennox International, Inc. | 42,305 | 1,914,724 | ||||||
Capital Markets 2.3% | ||||||||
| Affiliated Managers Group, Inc.* | 38,548 | 3,244,971 | ||||||
| Apollo Investment Corp. | 167,116 | 2,032,130 | ||||||
| Eaton Vance Corp. | 102,040 | 3,595,889 | ||||||
| Greenhill & Co., Inc. | 18,200 | 1,599,598 | ||||||
| Jefferies Group, Inc. | 105,563 | 2,873,425 | ||||||
| Raymond James Financial, Inc. | 85,887 | 2,631,578 | ||||||
| SEI Investments Co. | 111,680 | 2,508,333 | ||||||
| Waddell & Reed Financial, Inc., Class A | 74,066 | 2,749,330 | ||||||
| 21,235,254 | ||||||||
Chemicals 3.3% | ||||||||
| Albemarle Corp. | 79,287 | 3,620,244 | ||||||
| Ashland, Inc. | 67,900 | 4,044,124 | ||||||
| Cabot Corp. | 56,411 | 1,835,614 | ||||||
| Cytec Industries, Inc. | 42,162 | 2,026,306 | ||||||
| Intrepid Potash, Inc.* (a) | 35,914 | 943,102 | ||||||
| Lubrizol Corp. | 60,280 | 5,445,695 | ||||||
| Minerals Technologies, Inc. | 16,640 | 960,128 | ||||||
| NewMarket Corp. | 10,238 | 1,126,180 | ||||||
| Olin Corp. | 67,260 | 1,412,460 | ||||||
| RPM International, Inc. | 112,092 | 2,474,991 | ||||||
| Scotts Miracle-Gro Co. (The), Class A | 39,068 | 1,892,845 | ||||||
| Sensient Technologies Corp. | 42,880 | 1,352,006 | ||||||
| Valspar Corp. | 86,700 | 2,715,444 | ||||||
| 29,849,139 | ||||||||
Commercial Banks 3.8% | ||||||||
| Associated Banc-Corp. | 149,358 | 2,170,172 | ||||||
| BancorpSouth, Inc. | 63,000 | 1,394,820 | ||||||
| Bank of Hawaii Corp. | 41,600 | 2,199,808 | ||||||
| Cathay General Bancorp | 66,887 | 827,392 | ||||||
| City National Corp. | 39,000 | 2,428,920 | ||||||
| Commerce Bancshares, Inc. | 63,245 | 2,619,608 | ||||||
| Cullen/Frost Bankers, Inc. | 52,078 | 3,091,350 | ||||||
| FirstMerit Corp. | 77,517 | 1,821,649 | ||||||
| Fulton Financial Corp. | 173,264 | 1,819,272 | ||||||
| International Bancshares Corp. | 44,600 | 1,077,982 | ||||||
| PacWest Bancorp | 25,115 | 603,011 | ||||||
| Prosperity Bancshares, Inc. | 40,500 | 1,588,410 | ||||||
| SVB Financial Group* | 36,799 | 1,811,615 | ||||||
| Synovus Financial Corp. (a) | 650,589 | 1,958,273 | ||||||
| TCF Financial Corp. | 109,611 | 2,042,053 | ||||||
| Trustmark Corp. | 48,637 | 1,190,634 | ||||||
| Valley National Bancorp (a) | 132,388 | 2,149,981 | ||||||
| Webster Financial Corp. | 60,300 | 1,249,416 | ||||||
| Westamerica Bancorp. | 25,195 | 1,480,710 | ||||||
| Wilmington Trust Corp. | 76,148 | 1,319,645 | ||||||
| 34,844,721 | ||||||||
Commercial Services & Supplies 1.5% | ||||||||
| Brink’s Co. (The) | 41,053 | 1,093,241 | ||||||
| Clean Harbors, Inc.* | 19,600 | 1,243,228 | ||||||
| Copart, Inc.* | 58,173 | 2,076,194 | ||||||
| Corrections Corp of America* | 100,161 | 2,075,336 | ||||||
| Deluxe Corp. | 46,073 | 966,151 | ||||||
| Herman Miller, Inc. | 47,800 | 1,014,316 | ||||||
| HNI Corp. | 39,470 | 1,225,149 | ||||||
| Mine Safety Appliances Co. | 26,400 | 775,896 | ||||||
| Rollins, Inc. | 37,221 | 809,557 | ||||||
| Waste Connections, Inc.* | 68,800 | 2,462,352 | ||||||
| 13,741,420 | ||||||||
Communications Equipment 1.7% | ||||||||
| ADC Telecommunications, Inc.* | 83,025 | 665,030 | ||||||
| ADTRAN, Inc. | 50,859 | 1,361,496 | ||||||
| Ciena Corp.* (a) | 82,800 | 1,530,972 | ||||||
| CommScope, Inc.* | 81,648 | 2,660,092 | ||||||
| F5 Networks, Inc.* | 69,224 | 4,736,998 | ||||||
| Palm, Inc.* (a) | 145,800 | 845,640 | ||||||
| Plantronics, Inc. | 43,400 | 1,440,880 | ||||||
| Polycom, Inc.* | 74,102 | 2,412,020 | ||||||
| 15,653,128 | ||||||||
74 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Computers & Peripherals 0.4% | ||||||||
| Diebold, Inc. | 57,252 | $ | 1,794,850 | |||||
| NCR Corp.* | 141,560 | 1,862,930 | ||||||
| 3,657,780 | ||||||||
Construction & Engineering 1.5% | ||||||||
| Aecom Technology Corp.* | 98,800 | 2,970,916 | ||||||
| Granite Construction, Inc. | 28,960 | 973,346 | ||||||
| KBR, Inc. | 139,237 | 3,074,353 | ||||||
| Shaw Group, Inc. (The)* | 73,965 | 2,831,380 | ||||||
| URS Corp.* | 73,200 | 3,758,820 | ||||||
| 13,608,815 | ||||||||
Construction Materials 0.4% | ||||||||
| Martin Marietta Materials, Inc. | 39,664 | 3,802,984 | ||||||
Consumer Finance 0.2% | ||||||||
| AmeriCredit Corp.* (a) | 83,328 | 1,994,872 | ||||||
Containers & Packaging 1.4% | ||||||||
| AptarGroup, Inc. | 59,700 | 2,569,488 | ||||||
| Greif, Inc., Class A | 29,620 | 1,752,912 | ||||||
| Packaging Corp. of America | 89,107 | 2,203,616 | ||||||
| Silgan Holdings, Inc. | 23,400 | 1,411,722 | ||||||
| Sonoco Products Co. | 86,898 | 2,878,931 | ||||||
| Temple-Inland, Inc. | 95,510 | 2,227,293 | ||||||
| 13,043,962 | ||||||||
Distributors 0.3% | ||||||||
| LKQ Corp.* | 123,300 | 2,596,698 | ||||||
Diversified Consumer Services 1.8% | ||||||||
| Brink’s Home Security Holdings, Inc.* | 39,484 | 1,655,959 | ||||||
| Career Education Corp.* | 60,549 | 1,772,269 | ||||||
| Corinthian Colleges, Inc.* (a) | 76,380 | 1,193,056 | ||||||
| ITT Educational Services, Inc.* | 26,140 | 2,643,538 | ||||||
| Matthews International Corp., Class A | 27,210 | 952,350 | ||||||
| Regis Corp. | 48,720 | 931,526 | ||||||
| Service Corp. International | 222,400 | 1,997,152 | ||||||
| Sotheby’s | 58,178 | 1,943,145 | ||||||
| Strayer Education, Inc. (a) | 12,440 | 3,024,413 | ||||||
| 16,113,408 | ||||||||
Diversified Financial Services 0.4% | ||||||||
| MSCI, Inc., Class A* | 91,128 | 3,157,585 | ||||||
Diversified Telecommunication Services 0.3% | ||||||||
| Cincinnati Bell, Inc.* | 179,700 | 605,589 | ||||||
| TW Telecom, Inc.* | 127,100 | 2,262,380 | ||||||
| 2,867,969 | ||||||||
Electric Utilities 1.7% | ||||||||
| Cleco Corp. | 54,100 | 1,482,340 | ||||||
| DPL, Inc. | 103,830 | 2,925,929 | ||||||
| Great Plains Energy, Inc. | 117,080 | 2,263,157 | ||||||
| Hawaiian Electric Industries, Inc. | 79,484 | 1,855,951 | ||||||
| IDACORP, Inc. | 41,253 | 1,488,408 | ||||||
| NV Energy, Inc. | 210,020 | 2,623,150 | ||||||
| PNM Resources, Inc. | 74,450 | 1,011,776 | ||||||
| Westar Energy, Inc. | 94,335 | 2,234,796 | ||||||
| 15,885,507 | ||||||||
Electrical Equipment 1.3% | ||||||||
| Ametek, Inc. | 94,150 | 4,071,988 | ||||||
| Hubbell, Inc., Class B | 51,767 | 2,405,612 | ||||||
| Regal-Beloit Corp. | 32,375 | 2,048,366 | ||||||
| Thomas & Betts Corp.* | 45,448 | 1,906,089 | ||||||
| Woodward Governor Co. | 48,996 | 1,570,322 | ||||||
| 12,002,377 | ||||||||
Electronic Equipment, Instruments & Components 2.4% | ||||||||
| Arrow Electronics, Inc.* | 103,962 | 3,170,841 | ||||||
| Avnet, Inc.* | 132,078 | 4,222,534 | ||||||
| Ingram Micro, Inc., Class A* | 141,709 | 2,573,435 | ||||||
| Itron, Inc.* | 34,793 | 2,769,871 | ||||||
| National Instruments Corp. | 49,414 | 1,708,736 | ||||||
| Tech Data Corp.* | 45,443 | 1,949,505 | ||||||
| Trimble Navigation Ltd.* | 104,900 | 3,431,279 | ||||||
| Vishay Intertechnology, Inc.* | 165,030 | 1,717,962 | ||||||
| 21,544,163 | ||||||||
Energy Equipment & Services 2.2% | ||||||||
| Atwood Oceanics, Inc.* | 50,600 | 1,842,346 | ||||||
| Exterran Holdings, Inc.* | 53,685 | 1,564,918 | ||||||
| Helix Energy Solutions Group, Inc.* | 78,886 | 1,150,158 | ||||||
| Oceaneering International, Inc.* | 48,300 | 3,163,650 | ||||||
| Patterson-UTI Energy, Inc. | 136,740 | 2,090,755 | ||||||
| Pride International, Inc.* | 152,828 | 4,635,273 | ||||||
| Superior Energy Services, Inc.* | 67,623 | 1,829,878 | ||||||
| Tidewater, Inc. | 46,377 | 2,486,271 | ||||||
| Unit Corp.* | 34,924 | 1,668,319 | ||||||
| 20,431,568 | ||||||||
Food & Staples Retailing 0.3% | ||||||||
| BJ’s Wholesale Club, Inc.* | 48,457 | 1,854,934 | ||||||
| Ruddick Corp. | 35,209 | 1,244,286 | ||||||
| 3,099,220 | ||||||||
Food Products 1.5% | ||||||||
| Corn Products International, Inc. | 64,963 | 2,338,668 | ||||||
| Flowers Foods, Inc. | 66,600 | 1,755,576 | ||||||
| Green Mountain Coffee Roasters, Inc.* (a) | 30,900 | 2,245,194 | ||||||
| Lancaster Colony Corp. | 16,600 | 912,502 | ||||||
| Ralcorp Holdings, Inc.* | 48,600 | 3,234,330 | ||||||
| Smithfield Foods, Inc.* | 122,391 | 2,293,607 | ||||||
| Tootsie Roll Industries, Inc. (a) | 22,899 | 609,114 | ||||||
| 13,388,991 | ||||||||
2010 Semiannual Report 75
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Mid Cap Market Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Gas Utilities 1.8% | ||||||||
| AGL Resources, Inc. | 67,165 | $ | 2,653,689 | |||||
| Atmos Energy Corp. | 80,534 | 2,382,196 | ||||||
| Energen Corp. | 62,233 | 3,041,327 | ||||||
| National Fuel Gas Co. | 70,600 | 3,672,612 | ||||||
| UGI Corp. | 97,400 | 2,677,526 | ||||||
| WGL Holdings, Inc. | 43,385 | 1,550,580 | ||||||
| 15,977,930 | ||||||||
Health Care Equipment & Supplies 3.9% | ||||||||
| Beckman Coulter, Inc. | 60,860 | 3,797,664 | ||||||
| Edwards Lifesciences Corp.* | 49,400 | 5,092,152 | ||||||
| Gen-Probe, Inc.* | 43,300 | 2,051,987 | ||||||
| Hill-Rom Holdings, Inc. | 55,665 | 1,765,137 | ||||||
| Hologic, Inc.* | 227,298 | 4,061,815 | ||||||
| IDEXX Laboratories, Inc.* (a) | 50,700 | 3,353,298 | ||||||
| Immucor, Inc.* | 61,500 | 1,316,715 | ||||||
| Kinetic Concepts, Inc.* | 54,000 | 2,338,200 | ||||||
| Masimo Corp. | 44,714 | 1,046,755 | ||||||
| ResMed, Inc.* | 65,400 | 4,475,322 | ||||||
| STERIS Corp. | 51,009 | 1,697,580 | ||||||
| Teleflex, Inc. | 34,387 | 2,108,611 | ||||||
| Thoratec Corp.* | 51,000 | 2,274,090 | ||||||
| 35,379,326 | ||||||||
Health Care Providers & Services 3.5% | ||||||||
| Community Health Systems, Inc.* | 80,834 | 3,302,877 | ||||||
| Health Management Associates, Inc., Class A * | 215,707 | 2,010,389 | ||||||
| Health Net, Inc.* | 88,742 | 1,954,099 | ||||||
| Henry Schein, Inc.* | 78,974 | 4,775,558 | ||||||
| Kindred Healthcare, Inc.* | 33,034 | 589,327 | ||||||
| LifePoint Hospitals, Inc.* | 47,318 | 1,806,601 | ||||||
| Lincare Holdings, Inc.* | 58,463 | 2,729,637 | ||||||
| Mednax, Inc.* | 41,206 | 2,263,858 | ||||||
| Omnicare, Inc. | 105,600 | 2,934,624 | ||||||
| Owens & Minor, Inc. | 54,263 | 1,706,571 | ||||||
| Psychiatric Solutions, Inc.* | 49,000 | 1,576,330 | ||||||
| Universal Health Services, Inc., Class B | 86,010 | 3,192,691 | ||||||
| VCA Antech, Inc.* | 73,850 | 2,101,771 | ||||||
| WellCare Health Plans, Inc.* | 36,250 | 1,037,838 | ||||||
| 31,982,171 | ||||||||
Hotels, Restaurants & Leisure 2.3% | ||||||||
| Bally Technologies, Inc.* | 47,900 | 2,209,148 | ||||||
| Bob Evans Farms, Inc. | 27,429 | 848,379 | ||||||
| Boyd Gaming Corp.* (a) | 47,300 | 600,710 | ||||||
| Brinker International, Inc. | 91,730 | 1,698,840 | ||||||
| Burger King Holdings, Inc. | 80,086 | 1,689,815 | ||||||
| Cheesecake Factory, Inc. (The)* | 54,450 | 1,479,406 | ||||||
| Chipotle Mexican Grill, Inc.* | 27,394 | 3,695,724 | ||||||
| International Speedway Corp., Class A | 25,853 | 790,068 | ||||||
| Life Time Fitness, Inc.* | 35,466 | 1,303,730 | ||||||
| Panera Bread Co., Class A* | 28,100 | 2,190,114 | ||||||
| Scientific Games Corp., Class A* | 55,700 | 819,347 | ||||||
| Wendy’s/Arby’s Group, Inc., Class A | 310,675 | 1,649,684 | ||||||
| WMS Industries, Inc.* | 47,000 | 2,350,940 | ||||||
| 21,325,905 | ||||||||
Household Durables 1.8% | ||||||||
| American Greetings Corp., Class A | 34,514 | 847,664 | ||||||
| KB Home | 66,700 | 1,235,951 | ||||||
| M.D.C. Holdings, Inc. | 32,300 | 1,237,090 | ||||||
| Mohawk Industries, Inc.* | 48,647 | 3,100,760 | ||||||
| NVR, Inc.* | 5,326 | 3,824,334 | ||||||
| Ryland Group, Inc. | 39,967 | 910,448 | ||||||
| Toll Brothers, Inc.* | 121,818 | 2,749,432 | ||||||
| Tupperware Brands Corp. | 54,638 | 2,790,363 | ||||||
| 16,696,042 | ||||||||
Household Products 0.9% | ||||||||
| Church & Dwight Co., Inc. | 62,400 | 4,321,200 | ||||||
| Energizer Holdings, Inc.* | 61,678 | 3,768,526 | ||||||
| 8,089,726 | ||||||||
Independent Power Producers & Energy Traders 0.1% | ||||||||
| Dynegy, Inc., Class A* | 425,500 | 565,915 | ||||||
Industrial Conglomerates 0.2% | ||||||||
| Carlisle Cos., Inc. | 52,580 | 1,983,843 | ||||||
Information Technology Services 2.7% | ||||||||
| Acxiom Corp.* | 67,962 | 1,296,715 | ||||||
| Alliance Data Systems Corp.* (a) | 46,400 | 3,482,784 | ||||||
| Broadridge Financial Solutions, Inc. | 119,710 | 2,850,295 | ||||||
| Convergys Corp.* | 105,859 | 1,338,058 | ||||||
| DST Systems, Inc. | 33,660 | 1,428,867 | ||||||
| Gartner, Inc.* | 52,780 | 1,270,942 | ||||||
| Global Payments, Inc. | 71,970 | 3,081,036 | ||||||
| Hewitt Associates, Inc., Class A* | 72,558 | 2,974,152 | ||||||
| Lender Processing Services, Inc. | 83,600 | 3,155,900 | ||||||
| Mantech International Corp., Class A* | 19,008 | 855,930 | ||||||
| NeuStar, Inc., Class A* | 64,335 | 1,574,278 | ||||||
| SRA International, Inc., Class A* | 37,500 | 865,500 | ||||||
| 24,174,457 | ||||||||
Insurance 4.4% | ||||||||
| American Financial Group, Inc. | 66,500 | 1,957,095 | ||||||
| Arthur J Gallagher & Co. | 88,622 | 2,328,100 | ||||||
| Brown & Brown, Inc. | 101,920 | 2,052,669 | ||||||
| Everest Re Group Ltd. | 52,500 | 4,024,125 | ||||||
| Fidelity National Financial, Inc., Class A | 204,753 | 3,108,150 | ||||||
| First American Corp. | 89,780 | 3,103,695 | ||||||
| Hanover Insurance Group, Inc. (The) | 39,292 | 1,770,104 | ||||||
| HCC Insurance Holdings, Inc. | 99,309 | 2,700,212 | ||||||
| Horace Mann Educators Corp. | 34,800 | 598,908 | ||||||
| Mercury General Corp. | 31,400 | 1,412,686 | ||||||
| Old Republic International Corp. | 208,612 | 3,131,266 | ||||||
76 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Insurance (continued) | ||||||||
| Protective Life Corp. | 73,817 | $ | 1,776,775 | |||||
| Reinsurance Group of America, Inc. | 63,363 | 3,271,432 | ||||||
| StanCorp Financial Group, Inc. | 42,300 | 1,901,808 | ||||||
| Transatlantic Holdings, Inc. | 56,175 | 2,793,583 | ||||||
| Unitrin, Inc. | 43,400 | 1,269,450 | ||||||
| W.R. Berkley Corp. | 114,366 | 3,087,882 | ||||||
| 40,287,940 | ||||||||
Internet & Catalog Retail 0.4% | ||||||||
| Netflix, Inc.* (a) | 37,430 | 3,696,961 | ||||||
Internet Software & Services 0.9% | ||||||||
| AOL, Inc.* | 93,600 | 2,186,496 | ||||||
| Digital River, Inc.* | 34,970 | 977,062 | ||||||
| Equinix, Inc.* | 39,245 | 3,950,009 | ||||||
| ValueClick, Inc.* | 74,850 | 769,458 | ||||||
| 7,883,025 | ||||||||
Life Sciences Tools & Services 1.9% | ||||||||
| Affymetrix, Inc.* | 62,510 | 433,819 | ||||||
| Bio-Rad Laboratories, Inc., Class A* | 17,000 | 1,898,730 | ||||||
| Charles River Laboratories International, Inc.* | 57,025 | 1,909,197 | ||||||
| Covance, Inc.* | 56,780 | 3,244,409 | ||||||
| Mettler-Toledo International, Inc.* | 29,317 | 3,678,697 | ||||||
| Pharmaceutical Product Development, Inc. | 105,500 | 2,901,250 | ||||||
| Techne Corp. | 32,835 | 2,175,319 | ||||||
| Varian, Inc.* | 25,660 | 1,328,932 | ||||||
| 17,570,353 | ||||||||
Machinery 5.4% | ||||||||
| AGCO Corp.* | 81,900 | 2,868,138 | ||||||
| Bucyrus International, Inc. | 70,400 | 4,435,904 | ||||||
| Crane Co. | 42,166 | 1,515,446 | ||||||
| Donaldson Co., Inc. | 67,011 | 3,102,609 | ||||||
| Federal Signal Corp. | 42,300 | 340,938 | ||||||
| Graco, Inc. | 51,783 | 1,795,834 | ||||||
| Harsco Corp. | 69,495 | 2,151,565 | ||||||
| IDEX Corp. | 70,102 | 2,355,427 | ||||||
| Joy Global, Inc. | 90,032 | 5,114,718 | ||||||
| Kennametal, Inc. | 70,509 | 2,316,926 | ||||||
| Lincoln Electric Holdings, Inc. | 37,500 | 2,247,750 | ||||||
| Nordson Corp. | 29,600 | 2,125,872 | ||||||
| Oshkosh Corp.* | 77,681 | 3,000,040 | ||||||
| Pentair, Inc. | 85,317 | 3,085,063 | ||||||
| SPX Corp. | 43,920 | 3,069,130 | ||||||
| Terex Corp.* | 96,000 | 2,545,920 | ||||||
| Timken Co. | 68,695 | 2,416,690 | ||||||
| Trinity Industries, Inc. | 68,150 | 1,696,254 | ||||||
| Valmont Industries, Inc. | 17,184 | 1,431,255 | ||||||
| Wabtec Corp. | 41,070 | 1,954,111 | ||||||
| 49,569,590 | ||||||||
Marine 0.4% | ||||||||
| Alexander & Baldwin, Inc. | 36,701 | 1,305,822 | ||||||
| Kirby Corp.* | 46,456 | 1,954,868 | ||||||
| 3,260,690 | ||||||||
Media 0.8% | ||||||||
| DreamWorks Animation SKG, Inc., Class A* | 65,585 | 2,603,069 | ||||||
Harte-Hanks, Inc. | 33,840 | 487,296 | ||||||
| John Wiley & Sons, Inc., Class A | 38,200 | 1,614,714 | ||||||
| Lamar Advertising Co., Class A* | 45,979 | 1,711,338 | ||||||
| Scholastic Corp. | 23,555 | 636,221 | ||||||
| 7,052,638 | ||||||||
Metals & Mining 1.1% | ||||||||
| Carpenter Technology Corp. | 38,860 | 1,526,032 | ||||||
| Commercial Metals Co. | 100,700 | 1,498,416 | ||||||
| Reliance Steel & Aluminum Co. | 56,800 | 2,772,408 | ||||||
| Steel Dynamics, Inc. | 190,400 | 2,991,184 | ||||||
| Worthington Industries, Inc. | 55,487 | 886,128 | ||||||
| 9,674,168 | ||||||||
Multiline Retail 0.7% | ||||||||
| 99 Cents Only Stores* | 40,933 | 635,280 | ||||||
| Dollar Tree, Inc.* | 76,828 | 4,664,996 | ||||||
| Saks, Inc.* (a) | 137,700 | 1,342,575 | ||||||
| 6,642,851 | ||||||||
Multi-Utilities 1.8% | ||||||||
| Alliant Energy Corp. | 98,400 | 3,365,280 | ||||||
| Black Hills Corp. | 34,000 | 1,118,260 | ||||||
| MDU Resources Group, Inc. | 163,825 | 3,473,090 | ||||||
| NSTAR | 93,220 | 3,411,852 | ||||||
| OGE Energy Corp. | 84,236 | 3,485,686 | ||||||
| Vectren Corp. | 71,360 | 1,784,713 | ||||||
| 16,638,881 | ||||||||
Office Electronics 0.2% | ||||||||
| Zebra Technologies Corp., Class A* | 53,142 | 1,543,775 | ||||||
Oil, Gas & Consumable Fuels 3.8% | ||||||||
| Arch Coal, Inc. | 143,194 | 3,866,238 | ||||||
| Bill Barrett Corp.* | 33,043 | 1,126,105 | ||||||
| Cimarex Energy Co. | 72,930 | 4,965,074 | ||||||
| Comstock Resources, Inc.* | 40,577 | 1,300,899 | ||||||
| Forest Oil Corp.* | 99,560 | 2,917,108 | ||||||
| Frontier Oil Corp. | 92,730 | 1,409,496 | ||||||
| Mariner Energy, Inc.* | 87,500 | 2,089,500 | ||||||
| Newfield Exploration Co.* | 115,984 | 6,749,109 | ||||||
| Overseas Shipholding Group, Inc. | 23,949 | 1,198,887 | ||||||
| Patriot Coal Corp.* | 67,600 | 1,331,044 | ||||||
| Plains Exploration & Production Co.* | 121,318 | 3,555,831 | ||||||
| Quicksilver Resources, Inc.* | 102,056 | 1,415,517 | ||||||
2010 Semiannual Report 77
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Mid Cap Market Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| Southern Union Co. | 107,849 | $ | 2,818,094 | |||||
| 34,742,902 | ||||||||
Paper & Forest Products 0.2% | ||||||||
| Louisiana-Pacific Corp.* | 108,770 | 1,279,135 | ||||||
Personal Products 0.5% | ||||||||
| Alberto-Culver Co. | 73,948 | 2,129,702 | ||||||
| NBTY, Inc.* | 54,795 | 2,229,061 | ||||||
| 4,358,763 | ||||||||
Pharmaceuticals 1.1% | ||||||||
| Endo Pharmaceuticals Holdings, Inc.* | 102,100 | 2,235,990 | ||||||
| Medicis Pharmaceutical Corp., Class A | 49,791 | 1,263,696 | ||||||
| Perrigo Co. | 70,000 | 4,272,100 | ||||||
| Valeant Pharmaceuticals International* (a) | 57,600 | 2,592,000 | ||||||
| 10,363,786 | ||||||||
Professional Services 1.0% | ||||||||
| Corporate Executive Board Co. (The) | 30,300 | 832,038 | ||||||
| FTI Consulting, Inc.* | 40,500 | 1,665,765 | ||||||
| Korn/Ferry International* | 39,900 | 646,779 | ||||||
| Manpower, Inc. | 71,248 | 3,997,013 | ||||||
| Navigant Consulting, Inc.* | 41,720 | 537,353 | ||||||
| Towers Watson & Co., Class A | 36,700 | 1,761,600 | ||||||
| 9,440,548 | ||||||||
Real Estate Investment Trusts (REITs) 7.4% | ||||||||
| Alexandria Real Estate Equities, Inc. | 39,380 | 2,788,498 | ||||||
| AMB Property Corp. | 143,542 | 3,999,080 | ||||||
| BRE Properties, Inc. | 54,111 | 2,259,675 | ||||||
| Camden Property Trust | 57,500 | 2,784,725 | ||||||
| Corporate Office Properties Trust SBI MD | 50,900 | 2,058,905 | ||||||
| Cousins Properties, Inc. | 85,511 | 689,219 | ||||||
| Duke Realty Corp. | 194,233 | 2,627,973 | ||||||
| Equity One, Inc. (a) | 32,000 | 621,120 | ||||||
| Essex Property Trust, Inc. | 26,100 | 2,761,902 | ||||||
| Federal Realty Investment Trust | 54,300 | 4,202,277 | ||||||
| Highwoods Properties, Inc. | 64,060 | 2,047,998 | ||||||
| Hospitality Properties Trust | 108,820 | 2,882,642 | ||||||
| Liberty Property Trust | 97,882 | 3,309,390 | ||||||
| Macerich Co. (The) | 111,940 | 5,004,837 | ||||||
| Mack-Cali Realty Corp. | 68,750 | 2,362,250 | ||||||
| Nationwide Health Properties, Inc. | 102,180 | 3,578,344 | ||||||
| Omega Healthcare Investors, Inc. | 77,400 | 1,549,548 | ||||||
| Potlatch Corp. | 34,156 | 1,279,484 | ||||||
| Rayonier, Inc. | 69,350 | 3,396,763 | ||||||
| Realty Income Corp. (a) | 90,515 | 2,967,987 | ||||||
| Regency Centers Corp. | 71,700 | 2,943,285 | ||||||
| Senior Housing Properties Trust | 113,900 | 2,560,472 | ||||||
| SL Green Realty Corp. | 67,700 | 4,208,909 | ||||||
| UDR, Inc. | 134,649 | 2,734,721 | ||||||
| Weingarten Realty Investors | 90,461 | 2,091,458 | ||||||
| 67,711,462 | ||||||||
Real Estate Management & Development 0.3% | ||||||||
| Jones Lang LaSalle, Inc. | 36,346 | 2,866,973 | ||||||
Road & Rail 1.2% | ||||||||
| Con-way, Inc. | 44,240 | 1,718,282 | ||||||
| J.B. Hunt Transport Services, Inc. | 77,100 | 2,841,906 | ||||||
| Kansas City Southern* | 88,979 | 3,608,098 | ||||||
| Landstar System, Inc. | 43,700 | 1,932,414 | ||||||
| Werner Enterprises, Inc. | 40,848 | 915,812 | ||||||
| 11,016,512 | ||||||||
Semiconductors & Semiconductor Equipment 2.5% | ||||||||
| Atmel Corp.* | 406,300 | 2,210,272 | ||||||
| Cree, Inc.* | 92,552 | 6,775,732 | ||||||
| Fairchild Semiconductor International, Inc.* | 106,420 | 1,194,032 | ||||||
| Integrated Device Technology, Inc.* | 144,187 | 953,076 | ||||||
| International Rectifier Corp.* | 61,200 | 1,408,824 | ||||||
| Intersil Corp., Class A | 111,502 | 1,659,150 | ||||||
| Lam Research Corp.* | 111,315 | 4,513,823 | ||||||
| RF Micro Devices, Inc.* | 241,425 | 1,356,808 | ||||||
| Semtech Corp.* | 53,230 | 966,125 | ||||||
| Silicon Laboratories, Inc.* | 39,683 | 1,918,673 | ||||||
| 22,956,515 | ||||||||
Software 3.5% | ||||||||
| ACI Worldwide, Inc.* | 31,100 | 584,369 | ||||||
| Advent Software, Inc.* (a) | 13,869 | 626,601 | ||||||
| ANSYS, Inc.* | 78,200 | 3,519,000 | ||||||
| Cadence Design Systems, Inc.* | 231,822 | 1,729,392 | ||||||
| FactSet Research Systems, Inc. | 36,368 | 2,735,601 | ||||||
| Fair Isaac Corp. | 42,307 | 890,985 | ||||||
| Informatica Corp.* | 78,256 | 1,957,183 | ||||||
| Jack Henry & Associates, Inc. | 72,906 | 1,860,561 | ||||||
| Mentor Graphics Corp.* | 88,336 | 794,141 | ||||||
| MICROS Systems, Inc.* | 68,994 | 2,563,817 | ||||||
| Parametric Technology Corp.* | 101,208 | 1,881,457 | ||||||
| Quest Software, Inc.* | 53,469 | 937,312 | ||||||
| Rovi Corp.* | 90,431 | 3,525,000 | ||||||
| Solera Holdings, Inc. | 61,800 | 2,402,166 | ||||||
| Sybase, Inc.* | 72,674 | 3,152,598 | ||||||
| Synopsys, Inc.* | 130,081 | 2,954,140 | ||||||
| 32,114,323 | ||||||||
Specialty Retail 4.4% | ||||||||
| Aaron’s, Inc. | 70,338 | 1,587,529 | ||||||
| Advance Auto Parts, Inc. | 80,300 | 3,621,530 | ||||||
| Aeropostale, Inc.* | 87,588 | 2,543,556 | ||||||
| American Eagle Outfitters, Inc. | 183,361 | 3,082,298 | ||||||
| AnnTaylor Stores Corp.* | 52,689 | 1,143,351 | ||||||
| Barnes & Noble, Inc. (a) | 36,273 | 799,457 | ||||||
78 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Specialty Retail (continued) | ||||||||
| CarMax, Inc.* | 194,000 | $ | 4,766,580 | |||||
| Chico’s FAS, Inc. | 154,126 | 2,294,936 | ||||||
| Coldwater Creek, Inc.* (a) | 47,101 | 333,475 | ||||||
| Collective Brands, Inc.* | 54,995 | 1,289,633 | ||||||
| Dick’s Sporting Goods, Inc.* | 77,283 | 2,249,708 | ||||||
| Dress Barn, Inc.* | 52,084 | 1,441,685 | ||||||
| Foot Locker, Inc. | 139,600 | 2,142,860 | ||||||
| Guess?, Inc. | 51,000 | 2,339,370 | ||||||
| J Crew Group, Inc.* | 49,600 | 2,304,912 | ||||||
| PetSmart, Inc. | 107,376 | 3,550,924 | ||||||
Rent-A-Center, Inc.* | 59,347 | 1,532,340 | ||||||
| Williams-Sonoma, Inc. | 94,440 | 2,719,872 | ||||||
| 39,744,016 | ||||||||
Textiles, Apparel & Luxury Goods 1.2% | ||||||||
| Fossil, Inc.* | 41,537 | 1,615,789 | ||||||
| Hanesbrands, Inc.* | 82,591 | 2,351,366 | ||||||
| Phillips-Van Heusen Corp. | 49,581 | 3,124,099 | ||||||
| Timberland Co. (The), Class A* | 40,200 | 864,300 | ||||||
| Under Armour, Inc., Class A* (a) | 32,100 | 1,083,375 | ||||||
| Warnaco Group, Inc. (The)* | 40,820 | 1,952,829 | ||||||
| 10,991,758 | ||||||||
Thrifts & Mortgage Finance 1.4% | ||||||||
| Astoria Financial Corp. | 70,020 | 1,130,123 | ||||||
| First Niagara Financial Group, Inc. | 182,332 | 2,534,415 | ||||||
| New York Community Bancorp, Inc. | 377,064 | 6,210,244 | ||||||
| NewAlliance Bancshares, Inc. | 91,700 | 1,194,851 | ||||||
| Washington Federal, Inc. | 101,112 | 2,079,874 | ||||||
| 13,149,507 | ||||||||
Tobacco 0.1% | ||||||||
| Universal Corp. | 22,240 | 1,151,587 | ||||||
Trading Companies & Distributors 0.5% | ||||||||
| GATX Corp. | 42,100 | 1,374,144 | ||||||
| MSC Industrial Direct Co., Class A | 38,252 | 2,084,352 | ||||||
| United Rentals, Inc.* | 52,615 | 755,551 | ||||||
| 4,214,047 | ||||||||
Water Utilities 0.2% | ||||||||
| Aqua America, Inc. | 117,948 | 2,161,987 | ||||||
Wireless Telecommunication Services 0.4% | ||||||||
| Syniverse Holdings, Inc.* | 59,488 | 1,194,519 | ||||||
| Telephone & Data Systems, Inc., Class L | 4,800 | 145,344 | ||||||
| Telephone & Data Systems, Inc. | 76,800 | 2,661,888 | ||||||
| 4,001,751 | ||||||||
Total Common Stocks (cost $851,613,484) | 887,825,176 | |||||||
| Mutual Fund 2.5% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 2.5% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (b) | 23,228,981 | 23,228,981 | ||||||
Total Mutual Fund (cost $23,228,981) | 23,228,981 | |||||||
| Repurchase Agreement 3.6% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 4/30/10, due 5/03/10, repurchase price $33,222,285, collateralized by U.S. Government Agency Mortgages ranging from 4.00% - 6.00%, maturing 07/01/23 - 04/01/40; total market value of $33,889,583 (c) | $ | 33,221,759 | 33,221,759 | |||||
Total Repurchase Agreement (cost $33,221,759) | 33,221,759 | |||||||
Total Investments (cost $908,064,224) (d) — 103.3% | 944,275,916 | |||||||
Liabilities in excess of other assets — (3.3%) | (30,347,473 | ) | ||||||
NET ASSETS — 100.0% | $ | 913,928,443 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $31,596,347. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (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, 2010 was $33,221,759. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd. | Limited | |
| REIT | Real Estate Investment Trust |
At April 30, 2010, the Fund’s open futures contracts were as follows (See Note 2):
| National Value | ||||||||||||||
| Number of | Long | Covered by | Unrealized | |||||||||||
| Contracts | Contracts | Expiration | Contracts | Appreciation | ||||||||||
| 321 | S&P 400 Futures | 06/18/10 | $ | 26,373,360 | $ | 590,868 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 79
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide Mid Cap | |||||
| Market Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $874,842,465)* | $ | 911,054,157 | |||
| Repurchase agreement, at value and cost | 33,221,759 | ||||
| Total Investments | 944,275,916 | ||||
| Cash | 400,420 | ||||
| Deposits with broker for futures | 2,016,600 | ||||
| Dividends receivable | 386,334 | ||||
| Security lending income receivable | 26,214 | ||||
| Receivable for investments sold | 5,227,103 | ||||
| Receivable for capital shares issued | 428,613 | ||||
| Prepaid expenses and other assets | 43,460 | ||||
| Total Assets | 952,804,660 | ||||
Liabilities: | |||||
| Payable for investments purchased | 4,136,030 | ||||
| Payable for capital shares redeemed | 526,560 | ||||
| Payable for variation margin on futures contracts | 558,540 | ||||
| Payable upon return of securities loaned (Note 2) | 33,221,759 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 116,130 | ||||
| Fund administration fees | 86,551 | ||||
| Distribution fees | 40,239 | ||||
| Administrative servicing fees | 61,722 | ||||
| Accounting and transfer agent fees | 13,194 | ||||
| Trustee fees | 7,420 | ||||
| Custodian fees | 3,337 | ||||
| Compliance program costs (Note 3) | 6,724 | ||||
| Professional fees | 39,029 | ||||
| Printing fees | 19,630 | ||||
| Other | 39,352 | ||||
| Total Liabilities | 38,876,217 | ||||
Net Assets | $ | 913,928,443 | |||
Represented by: | |||||
| Capital | $ | 878,090,856 | |||
| Accumulated undistributed net investment income | 2,848,780 | ||||
| Accumulated net realized losses from investment and futures transactions | (3,813,753 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 36,211,692 | ||||
| Net unrealized appreciation/(depreciation) from futures (Note 2) | 590,868 | ||||
Net Assets | $ | 913,928,443 | |||
Net Assets: | |||||
| Class A Shares | $ | 191,562,605 | |||
| Class B Shares | 640,132 | ||||
| Class C Shares | 1,181,209 | ||||
| Class R2 Shares | 1,173 | ||||
| Institutional Class Shares | 720,543,324 | ||||
| Total | $ | 913,928,443 | |||
| * | Includes value of securities on loan of $31,596,347 (Note 2) |
The accompanying notes are an integral part of these financial statements.
80 Semiannual Report 2010
| Nationwide Mid Cap | |||||
| Market Index Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 14,165,521 | ||||
| Class B Shares | 48,324 | ||||
| Class C Shares | 89,745 | ||||
| Class R2 Shares | 87 | ||||
| Institutional Class Shares | 52,820,070 | ||||
| Total | 67,123,747 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 13.52 | |||
| Class B Shares (a) | $ | 13.25 | |||
| Class C Shares (b) | $ | 13.16 | |||
| Class R2 Shares | $ | 13.48 | |||
| Institutional Class Shares | $ | 13.64 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 14.34 | |||
| 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.
2010 Semiannual Report 81
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide Mid Cap | |||||
| Market Index Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income | $ | 6,637,603 | |||
| Income from securities lending (Note 2) | 155,754 | ||||
| Total Income | 6,793,357 | ||||
EXPENSES: | |||||
| Investment advisory fees | 889,191 | ||||
| Fund administration fees | 461,419 | ||||
| Distribution fees Class A | 208,051 | ||||
| Distribution fees Class B | 2,945 | ||||
| Distribution fees Class C | 4,979 | ||||
| Distribution fees Class R2 | 2 | ||||
| Administrative servicing fees Class A | 126,954 | ||||
| Registration and filing fees | 22,561 | ||||
| Professional fees | 40,927 | ||||
| Printing fees | 19,909 | ||||
| Trustee fees | 19,611 | ||||
| Custodian fees | 14,115 | ||||
| Accounting and transfer agent fees | 33,288 | ||||
| Compliance program costs (Note 3) | 3,980 | ||||
| Other | 51,203 | ||||
| Total expenses before earnings credit and expenses reimbursed | 1,899,135 | ||||
| Earnings credit (Note 6) | (402 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (272,836 | ) | |||
| Net Expenses | 1,625,897 | ||||
NET INVESTMENT INCOME | 5,167,460 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 11,624,247 | ||||
| Net realized gains from futures transactions (Note 2) | 2,348,454 | ||||
| Net realized gains from investments and futures transactions | 13,972,701 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 163,493,293 | ||||
| Net change in unrealized appreciation/(depreciation) from futures (Note 2) | 1,630,392 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 165,123,685 | ||||
| Net realized/unrealized gains from investments and futures transactions | 179,096,386 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 184,263,846 | |||
The accompanying notes are an integral part of these financial statements.
82 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Mid Cap Market Index Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 5,167,460 | $ | 8,143,385 | ||||||
| Net realized gains/(losses) from investment and futures transactions | 13,972,701 | (15,908,962 | ) | |||||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 165,123,685 | 128,137,022 | ||||||||
| Change in net assets resulting from operations | 184,263,846 | 120,371,445 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (670,097 | ) | (987,853 | ) | ||||||
| Class B | (1,652 | ) | (2,428 | ) | ||||||
| Class C | (2,546 | ) | (4,034 | ) | ||||||
| Class R2 (a) | (4 | ) | (6 | ) | ||||||
| Institutional Class | (3,201,559 | ) | (6,170,930 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (6,428,829 | ) | |||||||
| Class B | – | (30,363 | ) | |||||||
| Class C | – | (49,316 | ) | |||||||
| Class R2 (a) | – | (36 | ) | |||||||
| Institutional Class | – | (23,071,238 | ) | |||||||
| Change in net assets from shareholder distributions | (3,875,858 | ) | (36,745,033 | ) | ||||||
| Change in net assets from capital transactions | 14,470,369 | 70,954,141 | ||||||||
| Change in net assets | 194,858,357 | 154,580,553 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 719,070,086 | 564,489,533 | ||||||||
| End of period | $ | 913,928,443 | $ | 719,070,086 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 2,848,780 | $ | 1,557,178 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 19,516,047 | $ | 25,061,961 | ||||||
| Dividends reinvested | 645,639 | 7,287,508 | ||||||||
| Cost of shares redeemed (b) | (12,686,361 | ) | (23,377,980 | ) | ||||||
| Total Class A | 7,475,325 | 8,971,489 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 13,406 | 51,776 | ||||||||
| Dividends reinvested | 1,382 | 26,982 | ||||||||
| Cost of shares redeemed | (37,966 | ) | (161,506 | ) | ||||||
| Total Class B | (23,178 | ) | (82,748 | ) | ||||||
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 5 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 83
Statements of Changes in Net Assets (Continued)
| Nationwide Mid Cap Market Index Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 137,450 | 150,762 | ||||||||
| Dividends reinvested | 1,883 | 33,834 | ||||||||
| Cost of shares redeemed | (70,245 | ) | (227,469 | ) | ||||||
| Total Class C | 69,088 | (42,873 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 1,000 | – | ||||||||
| Dividends reinvested | 4 | 42 | ||||||||
| Cost of shares redeemed | (878 | ) | – | |||||||
| Total Class R2 | 126 | 42 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 40,357,322 | 125,807,296 | ||||||||
| Dividends reinvested | 3,201,559 | 29,242,127 | ||||||||
| Cost of shares redeemed | (36,609,873 | ) | (92,941,192 | ) | ||||||
| Total Institutional Class | 6,949,008 | 62,108,231 | ||||||||
| Change in net assets from capital transactions | $ | 14,470,369 | $ | 70,954,141 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,553,623 | 2,752,621 | ||||||||
| Reinvested | 55,089 | 852,655 | ||||||||
| Redeemed | (1,040,677 | ) | (2,566,385 | ) | ||||||
| Total Class A Shares | 568,035 | 1,038,891 | ||||||||
Class B Shares | ||||||||||
| Issued | 1,111 | 5,261 | ||||||||
| Reinvested | 120 | 3,215 | ||||||||
| Redeemed | (3,195 | ) | (17,559 | ) | ||||||
| Total Class B Shares | (1,964 | ) | (9,083 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 11,694 | 17,210 | ||||||||
| Reinvested | 165 | 4,054 | ||||||||
| Redeemed | (6,064 | ) | (25,523 | ) | ||||||
| Total Class C Shares | 5,795 | (4,259 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Issued | 87 | – | ||||||||
| Reinvested | – | 5 | ||||||||
| Redeemed | (75 | ) | – | |||||||
| Total Class R2 Shares | 12 | 5 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 3,266,435 | 14,061,279 | ||||||||
| Reinvested | 271,319 | 3,372,575 | ||||||||
| Redeemed | (2,963,824 | ) | (9,289,348 | ) | ||||||
| Total Institutional Class Shares | 573,930 | 8,144,506 | ||||||||
| Total change in shares | 1,145,808 | 9,170,060 | ||||||||
Amounts designated as “–” are zero or have been rounded to zero.
| (a) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
See accompanying notes to financial statements.
84 Semiannual Report 2010
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 | 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, 2010 (Unaudited) (f) | $ | 10 | .83 | 0 | .06 | 2 | .68 | 2 | .74 | (0 | .05) | – | (0.05) | – | $ | 13 | .52 | 25 | .36% | $ | 191,562,605 | 0 | .72% | 0 | .95% | 0 | .79% | 7 | .61% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .88 | 0 | .09 | 1 | .45 | 1 | .54 | (0 | .08) | (0 | .51) | (0.59) | – | $ | 10 | .83 | 17 | .23% | $ | 147,301,010 | 0 | .73% | 1 | .01% | 0 | .83% | 19 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 | .09% | 0 | .77% | 18 | .44% | ||||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .63 | 0 | .02 | 2 | .63 | 2 | .65 | (0 | .03) | – | (0.03) | – | $ | 13 | .25 | 25 | .00% | $ | 640,132 | 1 | .32% | 0 | .37% | 1 | .38% | 7 | .61% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .72 | 0 | .05 | 1 | .41 | 1 | .46 | (0 | .04) | (0 | .51) | (0.55) | – | $ | 10 | .63 | 16 | .73% | $ | 534,484 | 1 | .32% | 0 | .51% | 1 | .42% | 19 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .56 | 0 | .02 | 2 | .61 | 2 | .63 | (0 | .03) | – | (0.03) | – | $ | 13 | .16 | 24 | .97% | $ | 1,181,209 | 1 | .32% | 0 | .35% | 1 | .38% | 7 | .61% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .66 | 0 | .04 | 1 | .41 | 1 | .45 | (0 | .04) | (0 | .51) | (0.55) | – | $ | 10 | .56 | 16 | .63% | $ | 886,523 | 1 | .32% | 0 | .46% | 1 | .42% | 19 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
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. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 85
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 | 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(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .81 | 0 | .05 | 2 | .67 | 2 | .72 | (0 | .05) | – | (0.05) | – | $ | 13 | .48 | 25 | .22% | $ | 1,173 | 0 | .80% | 0 | .84% | 0 | .85% | 7 | .61% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .88 | 0 | .08 | 1 | .46 | 1 | .52 | (0 | .08) | (0 | .51) | (0.59) | – | $ | 10 | .81 | 17 | .09% | $ | 811 | 0 | .91% | 0 | .84% | 1 | .01% | 19 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 15 | .72 | 0 | .09 | 1 | .35 | 1 | .44 | (0 | .18) | (0 | .59) | (0.77) | – | $ | 16 | .39 | 9 | .40% | $ | 1,094 | 0 | .73% | 0 | .74% | 0 | .75% | 21 | .52% | ||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .92 | 0 | .08 | 2 | .70 | 2 | .78 | (0 | .06) | – | (0.06) | – | $ | 13 | .64 | 25 | .56% | $ | 720,543,324 | 0 | .32% | 1 | .36% | 0 | .38% | 7 | .61% | |||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 9 | .95 | 0 | .13 | 1 | .47 | 1 | .60 | (0 | .12) | (0 | .51) | (0.63) | – | $ | 10 | .92 | 17 | .77% | $ | 570,347,258 | 0 | .32% | 1 | .39% | 0 | .42% | 19 | .20% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | 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.
86 Semiannual Report 2010
| 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, 2010, the Nationwide S&P 500 Index Fund (Class A at NAV) returned 15.32% versus 15.66% for its benchmark, the S&P 500 Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of S&P 500 Index Objective Funds (consisting of 162 funds as of April 30, 2010) was 15.37% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Global stock markets remained volatile during the entire reporting period, but the general pattern that has been in place since the markets bottomed in March 2009 persisted: The backdrop of a slowly improving economy and strong corporate earnings has allowed stock markets to post noticeable gains. A significant market correction in stocks occurred from mid-January to mid-February 2010, spurred by uneven economic data, concerns about the creditworthiness of European sovereign debt, and uncertainty surrounding the passage of health-care reform. By February 2010, U.S. stocks had dropped to -5.0% on a year-to-date basis, but these stocks subsequently experienced a multiweek rally that allowed them to return 15.7% during the reporting period. At the end of April, market volatility was rising and uncertainty plagued the escalating Greek sovereign debt crisis.
All 10 sectors within the Fund’s benchmark S&P 500 Index recorded positive returns during the reporting period. The strongest-performing sectors were consumer discretionary, with 30.96%, and industrials, with 30.11%. The top five stocks that provided positive contributions to the Fund during the reporting period were JDS Uniphase Corp.; Zions Bancorp; Advanced Micro Devices, Inc.; SanDisk Corp.; and Starwood Hotels & Resorts Worldwide, Inc.
What areas of investment detracted from Fund performance?
Although sectors such as telecommunications services, with 6.51%, energy, with 7.48%, and consumer staples, with 8.25%, recorded positive returns for the reporting period, these results significantly lagged those of the benchmark index’s top-performing segments. On an individual-stock basis, Fund holdings that provided the greatest negative contributions to Fund performance during the reporting period were PPL Corp.; The Goldman Sachs Group, Inc.; Boston Scientific Corp.; McAfee, Inc.; and Motorola, Inc.
What is your outlook for the near term?
So far in 2010, a backdrop of moderate economic growth, low inflation, accommodative monetary policy and improving prospects for corporate earnings has been very supportive of risk asset prices. There are, however, a number of uncertainties and risks for investors to consider, including ongoing deleveraging issues (such as the uncertainty about Greece’s debt problems), escalating tensions between the United States and China over currency matters, and a general sense of unease regarding the strength and pace of the global recovery.
In our minds, there are two key risks that could derail the current cyclical bull market. The first would be a significant setback in economic activity that interrupts the growth in corporate revenues and earnings. The second would be an increase in inflationary pressures that could force the Federal Reserve Board into a rapid tightening of monetary policy. By our analysis, neither of these events is likely to occur. While the current recovery is far from robust, the number of positive trends leads us to believe that it should become sustainable. From an inflation perspective, it is our view that the amount of slack in the labor market (and in the economy as a whole) should prevent a dramatic rise in wage and price pressures.
From a short-term perspective, we acknowledge that markets remain under pressure due to sovereign debt issues in Europe, policy tightening in China and elsewhere, and uncertainty surrounding pending regulations for the financial services sector. In our view, however, the positive forces of improving economic growth, an absence of inflation, low interest rates and stronger corporate earnings should continue to move markets higher.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Managers:
Edward Corallo and Debra L. Jelilian
Edward Corallo and Debra L. Jelilian
2010 Semiannual Report 87
| Fund Performance | Nationwide S&P 500 Index Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | 15.32% | 38.23% | 2.14% | -0.70% | |||||||||||||
| w/SC3 | 8.67% | 30.36% | 0.93% | -1.28% | ||||||||||||||
Class B1 | w/o SC2 | 15.03% | 37.31% | 1.41% | -1.39% | |||||||||||||
| w/SC4 | 10.03% | 32.31% | 1.03% | -1.39% | ||||||||||||||
Class C5 | w/o SC2 | 15.01% | 37.25% | 1.40% | -1.39% | |||||||||||||
| w/SC6 | 14.01% | 36.25% | 1.40% | -1.39% | ||||||||||||||
Class R27,8,9 | 15.20% | 37.59% | 1.95% | -0.79% | ||||||||||||||
Institutional Service Class1,7 | 15.34% | 38.31% | 2.17% | -0.64% | ||||||||||||||
Institutional Class7,10 | 15.71% | 38.75% | 2.43% | -0.38% | ||||||||||||||
Service Class1,7 | 15.42% | 38.25% | 2.01% | -0.80% | ||||||||||||||
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 | Not subject to any sales charges. | |
| 8 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| 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 | 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. |
Expense Ratios
| Expense | ||||
| Ratio* | ||||
| Class A | 0.60% | |||
| Class B | 1.22% | |||
| Class C | 1.22% | |||
| Class R2 | 0.97% | |||
| Institutional Service Class | 0.47% | |||
| Institutional Class | 0.22% | |||
| Service Class | 0.62% | |||
| * | Current effective prospectus dated May 6, 2010. Please see the Fund’s most recent prospectus for details. |
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 04/30/10. 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. |
88 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide S&P 500 Index Fund | 11/01/09 | 4/30/10 | 11/01/09 - 4/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,153.20 | 3.42 | 0.64 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.62 | 3.21 | 0.64 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,150.30 | 6.56 | 1.23 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,150.10 | 6.56 | 1.23 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.70 | 6.16 | 1.23 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,152.00 | 5.23 | 0.98 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.93 | 4.91 | 0.98 | |||||||||||||||
| Institutional Service Class Shares | Actual | 1,000.00 | 1,153.40 | 2.56 | 0.48 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,022.41 | 2.41 | 0.48 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,157.10 | 1.23 | 0.23 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,023.65 | 1.15 | 0.23 | |||||||||||||||
| Service Shares | Actual | 1,000.00 | 1,154.20 | 3.36 | 0.63 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.67 | 3.16 | 0.63 | |||||||||||||||
| 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. |
2010 Semiannual Report 89
| Portfolio Summary | Nationwide S&P 500 Index Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 98 | .0% | ||
| Mutual Fund | 2 | .1% | ||
| Repurchase Agreement | 0 | .8% | ||
| Liabilities in excess of other assets | (0 | .9)% | ||
| 100 | .0% | |||
| Top Industries (†) | ||||
| Oil, Gas & Consumable Fuels | 9 | .0% | ||
| Computers & Peripherals | 5 | .7% | ||
| Pharmaceuticals | 5 | .6% | ||
| Diversified Financial Services | 4 | .4% | ||
| Software | 4 | .0% | ||
| Insurance | 3 | .7% | ||
| Commercial Banks | 3 | .2% | ||
| Media | 3 | .1% | ||
| Aerospace & Defense | 2 | .9% | ||
| Food & Staples Retailing | 2 | .5% | ||
| Other Industries * | 55 | .9% | ||
| 100 | .0% | |||
| Top Holdings (†) | ||||
| Exxon Mobil Corp. | 2 | .9% | ||
| Apple, Inc. | 2 | .1% | ||
| Invesco AIM Liquid Assets Portfolio | 2 | .1% | ||
| Microsoft Corp. | 2 | .1% | ||
| General Electric Co. | 1 | .8% | ||
| Procter & Gamble Co. (The) | 1 | .6% | ||
| Bank of America Corp. | 1 | .6% | ||
| Johnson & Johnson | 1 | .6% | ||
| Wells Fargo & Co. | 1 | .6% | ||
| JPMorgan Chase & Co. | 1 | .5% | ||
| Other Holdings * | 81 | .1% | ||
| 100 | .0% | |||
| (†) | Percentages indicated are based upon total investments as of April 30, 2010. | |
| (*) | For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other. |
The accompanying notes are an integral part of these financial statements.
90 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide S&P 500 Index Fund
| Common Stocks 98.0% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 2.9% | ||||||||
| Boeing Co. (The) | 162,071 | $ | 11,738,803 | |||||
| General Dynamics Corp | 82,662 | 6,312,070 | ||||||
| Goodrich Corp. | 26,651 | 1,976,971 | ||||||
| Honeywell International, Inc. | 162,569 | 7,717,150 | ||||||
| ITT Corp. | 39,860 | 2,215,020 | ||||||
| L-3 Communications Holdings, Inc. | 26,038 | 2,436,376 | ||||||
| Lockheed Martin Corp. | 67,522 | 5,731,943 | ||||||
| Northrop Grumman Corp. | 66,676 | 4,522,633 | ||||||
| Precision Castparts Corp. | 30,100 | 3,863,034 | ||||||
| Raytheon Co | 80,987 | 4,721,542 | ||||||
| Rockwell Collins, Inc. | 34,441 | 2,238,665 | ||||||
| United Technologies Corp. | 200,556 | 15,031,672 | ||||||
| 68,505,879 | ||||||||
Air Freight & Logistics 1.1% | ||||||||
| CH Robinson Worldwide, Inc. | 37,400 | 2,255,220 | ||||||
| Expeditors International of Washington, Inc. | 46,400 | 1,890,336 | ||||||
| FedEx Corp. | 66,602 | 5,994,846 | ||||||
| United Parcel Service, Inc., Class B | 212,616 | 14,700,270 | ||||||
| 24,840,672 | ||||||||
Airlines 0.1% | ||||||||
| Southwest Airlines Co. | 158,876 | 2,093,986 | ||||||
Auto Components 0.2% | ||||||||
| Goodyear Tire & Rubber Co. (The)* | 52,621 | 706,700 | ||||||
| Johnson Controls, Inc. | 143,758 | 4,828,831 | ||||||
| 5,535,531 | ||||||||
Automobiles 0.5% | ||||||||
| Ford Motor Co.* (a) | 721,200 | 9,390,024 | ||||||
| Harley-Davidson, Inc. | 51,227 | 1,733,009 | ||||||
| 11,123,033 | ||||||||
Beverages 2.4% | ||||||||
| Brown-Forman Corp., Class B (a) | 21,963 | 1,277,807 | ||||||
Coca-Cola Co. (The) | 493,617 | 26,383,829 | ||||||
Coca-Cola Enterprises, Inc. | 68,857 | 1,909,405 | ||||||
| Constellation Brands, Inc., Class A* | 42,300 | 772,821 | ||||||
| Dr. Pepper Snapple Group, Inc. | 55,100 | 1,803,423 | ||||||
| Molson Coors Brewing Co., Class B | 32,840 | 1,456,782 | ||||||
| PepsiCo, Inc. | 349,980 | 22,825,696 | ||||||
| 56,429,763 | ||||||||
Biotechnology 1.4% | ||||||||
| Amgen, Inc.* | 209,748 | 12,031,146 | ||||||
| Biogen Idec, Inc.* | 56,672 | 3,017,784 | ||||||
| Celgene Corp.* | 98,400 | 6,095,880 | ||||||
| Cephalon, Inc.* | 14,800 | 950,160 | ||||||
| Genzyme Corp.* | 55,751 | 2,968,183 | ||||||
| Gilead Sciences, Inc.* | 193,500 | 7,676,145 | ||||||
| 32,739,298 | ||||||||
Building Products 0.1% | ||||||||
| Masco Corp. | 79,627 | 1,292,346 | ||||||
Capital Markets 2.5% | ||||||||
| Ameriprise Financial, Inc. | 56,551 | 2,621,704 | ||||||
| Bank of New York Mellon Corp. (The) | 257,611 | 8,019,430 | ||||||
| Charles Schwab Corp. (The) | 204,087 | 3,936,838 | ||||||
| E*Trade Financial Corp.* | 355,922 | 597,949 | ||||||
| Federated Investors, Inc., Class B. (a) | 19,511 | 470,605 | ||||||
| Franklin Resources, Inc. | 31,871 | 3,685,563 | ||||||
| Goldman Sachs Group, Inc. (The) | 112,692 | 16,362,878 | ||||||
| Invesco Ltd | 89,900 | 2,066,801 | ||||||
| Janus Capital Group, Inc. | 36,531 | 514,357 | ||||||
| Legg Mason, Inc. | 35,800 | 1,134,502 | ||||||
| Morgan Stanley | 296,542 | 8,961,499 | ||||||
| Northern Trust Corp. | 52,536 | 2,888,429 | ||||||
| State Street Corp. | 105,977 | 4,610,000 | ||||||
| T. Rowe Price Group, Inc. | 55,982 | 3,219,525 | ||||||
| 59,090,080 | ||||||||
Chemicals 1.9% | ||||||||
| Air Products & Chemicals, Inc. | 45,366 | 3,483,201 | ||||||
| Airgas, Inc. | 18,500 | 1,173,825 | ||||||
| CF Industries Holdings, Inc. | 14,840 | 1,241,663 | ||||||
| Dow Chemical Co. (The) | 244,890 | 7,549,959 | ||||||
| E.I. du Pont de Nemours & Co. | 193,550 | 7,711,032 | ||||||
| Eastman Chemical Co | 15,760 | 1,054,659 | ||||||
| Ecolab, Inc. | 49,211 | 2,403,465 | ||||||
| FMC Corp. | 16,900 | 1,075,516 | ||||||
| International Flavors & Fragrances, Inc. | 15,340 | 768,381 | ||||||
| Monsanto Co. | 116,680 | 7,357,841 | ||||||
| PPG Industries, Inc. | 35,806 | 2,519,668 | ||||||
| Praxair, Inc. | 65,632 | 5,497,993 | ||||||
| Sigma-Aldrich Corp. | 27,250 | 1,615,925 | ||||||
| 43,453,128 | ||||||||
Commercial Banks 3.3% | ||||||||
| BB&T Corp. | 147,273 | 4,895,355 | ||||||
| Comerica, Inc. | 37,326 | 1,567,692 | ||||||
| Fifth Third Bancorp | 166,804 | 2,487,048 | ||||||
| First Horizon National Corp.* | 49,116 | 694,991 | ||||||
| Huntington Bancshares, Inc. | 159,720 | 1,081,304 | ||||||
| KeyCorp | 192,372 | 1,735,195 | ||||||
| M&T Bank Corp. (a) | 16,961 | 1,481,543 | ||||||
| Marshall & Ilsley Corp. | 107,266 | 976,121 | ||||||
| PNC Financial Services Group, Inc. | 110,755 | 7,443,844 | ||||||
| Regions Financial Corp. | 254,285 | 2,247,879 | ||||||
| SunTrust Banks, Inc. | 106,926 | 3,165,010 | ||||||
| U.S. Bancorp | 409,703 | 10,967,749 | ||||||
| Wells Fargo & Co. | 1,109,435 | 36,733,393 | ||||||
| Zions Bancorporation (a) | 29,120 | 836,618 | ||||||
| 76,313,742 | ||||||||
2010 Semiannual Report 91
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide S&P 500 Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Services & Supplies 0.5% | ||||||||
| Avery Dennison Corp. | 22,316 | $ | 870,994 | |||||
| Cintas Corp. | 28,501 | 776,652 | ||||||
| Iron Mountain, Inc. | 39,000 | 980,850 | ||||||
| Pitney Bowes, Inc. | 44,796 | 1,137,818 | ||||||
| Republic Services, Inc. | 69,699 | 2,162,760 | ||||||
| RR Donnelley & Sons Co. | 44,606 | 958,583 | ||||||
| Stericycle, Inc.* | 18,600 | 1,095,540 | ||||||
| Waste Management, Inc. | 106,113 | 3,679,999 | ||||||
| 11,663,196 | ||||||||
Communications Equipment 2.4% | ||||||||
| Cisco Systems, Inc.* | 1,226,009 | 33,004,162 | ||||||
| Harris Corp. | 29,200 | 1,503,216 | ||||||
| JDS Uniphase Corp.* | 45,694 | 593,565 | ||||||
| Juniper Networks, Inc.* | 112,500 | 3,196,125 | ||||||
| Motorola, Inc.* | 494,428 | 3,495,606 | ||||||
| QUALCOMM, Inc. | 359,878 | 13,941,674 | ||||||
| Tellabs, Inc. | 84,452 | 766,824 | ||||||
| 56,501,172 | ||||||||
Computers & Peripherals 5.8% | ||||||||
| Apple, Inc.* | 194,174 | 50,702,715 | ||||||
| Dell, Inc.* | 368,358 | 5,960,033 | ||||||
| EMC Corp.* | 436,787 | 8,303,321 | ||||||
| Hewlett-Packard Co. | 504,090 | 26,197,557 | ||||||
| International Business Machines Corp. (b) | 278,210 | 35,889,090 | ||||||
| Lexmark International, Inc., Class A* | 17,801 | 659,527 | ||||||
| NetApp, Inc.* | 71,584 | 2,481,817 | ||||||
| QLogic Corp.* | 28,190 | 546,040 | ||||||
| SanDisk Corp.* | 48,900 | 1,950,621 | ||||||
| Teradata Corp.* | 37,600 | 1,093,032 | ||||||
| Western Digital Corp.* | 48,300 | 1,984,647 | ||||||
| 135,768,400 | ||||||||
Construction & Engineering 0.2% | ||||||||
| Fluor Corp. | 37,070 | 1,958,779 | ||||||
| Jacobs Engineering Group, Inc.* | 26,900 | 1,297,118 | ||||||
| Quanta Services, Inc.* | 45,200 | 909,876 | ||||||
| 4,165,773 | ||||||||
Construction Materials 0.1% | ||||||||
| Vulcan Materials Co. | 26,676 | 1,528,001 | ||||||
Consumer Finance 0.8% | ||||||||
| American Express Co. | 256,257 | 11,818,573 | ||||||
| Capital One Financial Corp. | 96,386 | 4,184,116 | ||||||
| Discover Financial Services | 116,621 | 1,802,961 | ||||||
| SLM Corp.* | 101,422 | 1,241,405 | ||||||
| 19,047,055 | ||||||||
Containers & Packaging 0.2% | ||||||||
| Ball Corp. | 20,630 | 1,097,722 | ||||||
| Bemis Co., Inc. | 21,696 | 659,775 | ||||||
| Owens-Illinois, Inc.* | 36,400 | 1,290,016 | ||||||
| Pactiv Corp.* | 28,836 | 732,723 | ||||||
| Sealed Air Corp. | 31,594 | 679,271 | ||||||
| 4,459,507 | ||||||||
Distributors 0.1% | ||||||||
| Genuine Parts Co | 34,816 | 1,490,125 | ||||||
Diversified Consumer Services 0.2% | ||||||||
| Apollo Group, Inc., Class A* | 27,526 | 1,580,268 | ||||||
| DeVry, Inc. | 14,200 | 885,938 | ||||||
| H&R Block, Inc. | 73,472 | 1,345,272 | ||||||
| 3,811,478 | ||||||||
Diversified Financial Services 4.4% | ||||||||
| Bank of America Corp. | 2,148,248 | 38,303,262 | ||||||
| Citigroup, Inc.* | 4,207,588 | 18,387,160 | ||||||
| CME Group, Inc. | 14,226 | 4,671,961 | ||||||
| IntercontinentalExchange, Inc.* | 15,400 | 1,796,102 | ||||||
| JPMorgan Chase & Co | 850,809 | 36,227,447 | ||||||
| Leucadia National Corp.* | 38,400 | 971,904 | ||||||
| Moody’s Corp.(a) | 42,202 | 1,043,233 | ||||||
| NASDAQ OMX Group, Inc. (The)* | 30,100 | 632,100 | ||||||
| NYSE Euronext | 57,400 | 1,872,962 | ||||||
| 103,906,131 | ||||||||
Diversified Telecommunication Services 2.4% | ||||||||
| AT&T, Inc. | 1,263,913 | 32,937,573 | ||||||
| CenturyTel, Inc. | 63,105 | 2,152,511 | ||||||
| Frontier Communications Corp. (a) | 69,036 | 549,527 | ||||||
| Qwest Communications International, Inc. | 317,930 | 1,662,774 | ||||||
| Verizon Communications, Inc. | 607,280 | 17,544,319 | ||||||
| Windstream Corp. | 97,882 | 1,081,596 | ||||||
| 55,928,300 | ||||||||
Electric Utilities 1.7% | ||||||||
| Allegheny Energy, Inc. | 36,796 | 801,417 | ||||||
| American Electric Power Co., Inc. | 100,397 | 3,443,617 | ||||||
| Duke Energy Corp. | 275,981 | 4,630,961 | ||||||
| Edison International | 71,332 | 2,451,681 | ||||||
| Entergy Corp. | 40,476 | 3,290,294 | ||||||
| Exelon Corp. | 141,198 | 6,154,821 | ||||||
| FirstEnergy Corp. | 66,100 | 2,503,207 | ||||||
| FPL Group, Inc. | 88,532 | 4,608,091 | ||||||
| Northeast Utilities | 34,995 | 972,511 | ||||||
| Pepco Holdings, Inc. | 54,500 | 912,330 | ||||||
| Pinnacle West Capital Corp. | 22,625 | 844,817 | ||||||
| PPL Corp. | 81,262 | 2,012,047 | ||||||
| Progress Energy, Inc. | 60,151 | 2,401,228 | ||||||
| Southern Co. | 172,149 | 5,949,469 | ||||||
| 40,976,491 | ||||||||
92 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Electrical Equipment 0.6% | ||||||||
| Emerson Electric Co. | 161,064 | $ | 8,412,373 | |||||
| First Solar, Inc.*(a) | 10,400 | 1,492,920 | ||||||
| Rockwell Automation, Inc. | 30,476 | 1,850,502 | ||||||
| Roper Industries, Inc. | 19,400 | 1,183,788 | ||||||
| 12,939,583 | ||||||||
Electronic Equipment, Instruments & Components 0.6% | ||||||||
| Agilent Technologies, Inc.* | 73,876 | 2,678,744 | ||||||
| Amphenol Corp., Class A | 38,200 | 1,765,222 | ||||||
| Corning, Inc. | 333,222 | 6,414,523 | ||||||
| FLIR Systems, Inc.* | 32,400 | 991,116 | ||||||
| Jabil Circuit, Inc. | 38,641 | 591,980 | ||||||
| Molex, Inc. | 28,921 | 648,120 | ||||||
| 13,089,705 | ||||||||
Energy Equipment & Services 1.9% | ||||||||
| Baker Hughes, Inc. | 93,266 | 4,640,926 | ||||||
| Cameron International Corp.* | 52,300 | 2,063,758 | ||||||
| Diamond Offshore Drilling, Inc. (a) | 14,900 | 1,178,590 | ||||||
| FMC Technologies, Inc.* | 27,600 | 1,868,244 | ||||||
| Halliburton Co. | 193,124 | 5,919,250 | ||||||
| Helmerich & Payne, Inc. | 22,800 | 926,136 | ||||||
| Nabors Industries Ltd* | 60,654 | 1,308,307 | ||||||
| National Oilwell Varco, Inc. | 89,588 | 3,944,560 | ||||||
| Rowan Cos., Inc.* | 25,386 | 756,503 | ||||||
| Schlumberger Ltd. | 257,136 | 18,364,653 | ||||||
| Smith International, Inc. | 53,000 | 2,531,280 | ||||||
| 43,502,207 | ||||||||
Food & Staples Retailing 2.5% | ||||||||
| Costco Wholesale Corp. | 92,557 | 5,468,268 | ||||||
| CVS Caremark Corp. | 300,399 | 11,093,735 | ||||||
| Kroger Co. (The) | 136,509 | 3,034,595 | ||||||
| Safeway, Inc. | 86,982 | 2,052,775 | ||||||
| SUPERVALU, Inc. | 45,979 | 685,087 | ||||||
| Sysco Corp. | 126,733 | 3,997,159 | ||||||
| Walgreen Co. | 211,725 | 7,442,134 | ||||||
| Wal-Mart Stores, Inc. | 456,882 | 24,511,719 | ||||||
| Whole Foods Market, Inc.* | 37,500 | 1,463,250 | ||||||
| 59,748,722 | ||||||||
Food Products 1.8% | ||||||||
| Archer-Daniels-Midland Co. | 137,543 | 3,842,951 | ||||||
| Campbell Soup Co. | 43,732 | 1,568,230 | ||||||
| ConAgra Foods, Inc. | 94,828 | 2,320,441 | ||||||
| Dean Foods Co.* | 39,100 | 613,870 | ||||||
| General Mills, Inc. | 69,962 | 4,979,895 | ||||||
| H.J. Heinz Co. | 67,557 | 3,166,397 | ||||||
| Hershey Co. (The) | 35,622 | 1,674,590 | ||||||
| Hormel Foods Corp. | 15,700 | 639,932 | ||||||
| JM Smucker Co. (The) | 25,700 | 1,569,499 | ||||||
| Kellogg Co. | 54,442 | 2,991,044 | ||||||
| Kraft Foods, Inc., Class A | 371,867 | 11,007,263 | ||||||
| McCormick & Co., Inc., Non-Voting Shares | 25,846 | 1,022,726 | ||||||
| Mead Johnson Nutrition Co. | 42,500 | 2,193,425 | ||||||
| Sara Lee Corp. | 153,399 | 2,181,334 | ||||||
| Tyson Foods, Inc., Class A | 65,700 | 1,287,063 | ||||||
| 41,058,660 | ||||||||
Gas Utilities 0.2% | ||||||||
| EQT Corp. | 30,789 | 1,339,014 | ||||||
| Nicor, Inc. | 9,805 | 426,615 | ||||||
| Oneok, Inc. | 22,800 | 1,120,392 | ||||||
| Questar Corp. | 37,700 | 1,807,715 | ||||||
| 4,693,736 | ||||||||
Health Care Equipment & Supplies 1.8% | ||||||||
| Baxter International, Inc. | 128,773 | 6,080,661 | ||||||
| Becton, Dickinson and Co. | 50,486 | 3,855,616 | ||||||
| Boston Scientific Corp.* | 328,618 | 2,260,892 | ||||||
| C.R. Bard, Inc. | 20,486 | 1,772,653 | ||||||
| CareFusion Corp.* | 38,598 | 1,064,533 | ||||||
| DENTSPLY International, Inc. | 32,400 | 1,187,136 | ||||||
| Hospira, Inc.* | 33,346 | 1,793,681 | ||||||
| Intuitive Surgical, Inc.* | 8,178 | 2,948,660 | ||||||
| Medtronic, Inc. | 237,006 | 10,354,792 | ||||||
| St. Jude Medical, Inc.* | 71,622 | 2,923,610 | ||||||
| Stryker Corp. | 59,277 | 3,404,871 | ||||||
| Varian Medical Systems, Inc.* | 27,000 | 1,522,260 | ||||||
| Zimmer Holdings, Inc.* | 45,646 | 2,780,298 | ||||||
| 41,949,663 | ||||||||
Health Care Providers & Services 2.0% | ||||||||
| Aetna, Inc. | 91,284 | 2,697,442 | ||||||
| AmerisourceBergen Corp. | 61,704 | 1,903,568 | ||||||
| Cardinal Health, Inc. | 77,697 | 2,695,309 | ||||||
| CIGNA Corp. | 58,583 | 1,878,171 | ||||||
| Coventry Health Care, Inc.* | 31,200 | 740,688 | ||||||
| DaVita, Inc.* | 22,500 | 1,404,675 | ||||||
| Express Scripts, Inc.* | 58,840 | 5,891,649 | ||||||
| Humana, Inc.* | 36,361 | 1,662,425 | ||||||
| Laboratory Corp of America Holdings* | 22,700 | 1,783,539 | ||||||
| McKesson Corp. | 57,347 | 3,716,659 | ||||||
| Medco Health Solutions, Inc.* | 101,052 | 5,953,984 | ||||||
| Patterson Cos., Inc. | 21,200 | 678,188 | ||||||
| Quest Diagnostics, Inc. | 34,172 | 1,953,271 | ||||||
| Tenet Healthcare Corp.* | 101,387 | 633,669 | ||||||
| UnitedHealth Group, Inc. | 248,818 | 7,541,674 | ||||||
| WellPoint, Inc.* | 96,402 | 5,186,428 | ||||||
| 46,321,339 | ||||||||
Health Care Technology 0.1% | ||||||||
| Cerner Corp.* | 14,549 | 1,235,356 | ||||||
2010 Semiannual Report 93
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide S&P 500 Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Hotels, Restaurants & Leisure 1.6% | ||||||||
| Carnival Corp. | 93,563 | $ | 3,901,577 | |||||
| Darden Restaurants, Inc. | 29,876 | 1,336,951 | ||||||
| International Game Technology | 64,032 | 1,349,795 | ||||||
| Marriott International, Inc., Class A | 54,326 | 1,997,024 | ||||||
| McDonald’s Corp. | 230,441 | 16,266,830 | ||||||
| Starbucks Corp. | 159,124 | 4,134,042 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 40,024 | 2,181,708 | ||||||
| Wyndham Worldwide Corp. | 41,029 | 1,099,987 | ||||||
| Wynn Resorts Ltd. | 14,100 | 1,244,184 | ||||||
| Yum! Brands, Inc. | 100,162 | 4,248,872 | ||||||
| 37,760,970 | ||||||||
Household Durables 0.4% | ||||||||
| D.R. Horton, Inc. | 60,400 | 887,276 | ||||||
| Fortune Brands, Inc. | 32,886 | 1,723,884 | ||||||
| Harman International Industries, Inc.* | 13,300 | 525,084 | ||||||
| Leggett & Platt, Inc. | 34,701 | 851,216 | ||||||
| Lennar Corp., Class A | 31,967 | 636,143 | ||||||
| Newell Rubbermaid, Inc. | 60,242 | 1,028,331 | ||||||
| Pulte Group, Inc.* | 67,570 | 884,491 | ||||||
| Stanley Black & Decker, Inc. | 33,865 | 2,104,710 | ||||||
| Whirlpool Corp. | 16,417 | 1,787,319 | ||||||
| 10,428,454 | ||||||||
Household Products 2.3% | ||||||||
| Clorox Co. | 30,286 | 1,959,504 | ||||||
| Colgate-Palmolive Co. | 105,708 | 8,890,043 | ||||||
| Kimberly-Clark Corp. | 88,187 | 5,402,336 | ||||||
| Procter & Gamble Co. (The) | 622,003 | 38,663,706 | ||||||
| 54,915,589 | ||||||||
Independent Power Producers & Energy Traders 0.2% | ||||||||
| AES Corp. (The)* | 151,993 | 1,753,999 | ||||||
| Constellation Energy Group, Inc. | 44,986 | 1,590,255 | ||||||
| NRG Energy, Inc.* | 56,073 | 1,355,285 | ||||||
| 4,699,539 | ||||||||
Industrial Conglomerates 2.5% | ||||||||
| 3M Co. | 152,389 | 13,512,333 | ||||||
| General Electric Co. | 2,284,832 | 43,091,931 | ||||||
| Textron, Inc. | 55,592 | 1,269,721 | ||||||
| 57,873,985 | ||||||||
Information Technology Services 1.4% | ||||||||
| Automatic Data Processing, Inc. | 108,078 | 4,686,262 | ||||||
| Cognizant Technology Solutions Corp., Class A* | 63,100 | 3,229,458 | ||||||
| Computer Sciences Corp.* | 32,881 | 1,722,636 | ||||||
| Fidelity National Information Services, Inc. | 68,300 | 1,795,607 | ||||||
| Fiserv, Inc.* | 34,666 | 1,771,086 | ||||||
| MasterCard, Inc., Class A | 20,514 | 5,088,292 | ||||||
| Paychex, Inc. | 68,852 | 2,106,871 | ||||||
| SAIC, Inc.* | 61,000 | 1,062,010 | ||||||
| Total System Services, Inc. | 40,000 | 640,400 | ||||||
| Visa, Inc., Class A | 95,800 | 8,644,034 | ||||||
| Western Union Co. (The) | 150,452 | 2,745,749 | ||||||
| 33,492,405 | ||||||||
Insurance 3.7% | ||||||||
| Aflac, Inc. | 100,213 | 5,106,855 | ||||||
| Allstate Corp. (The) | 114,914 | 3,754,240 | ||||||
| American International Group, Inc.* (a) | 30,931 | 1,203,216 | ||||||
| Aon Corp. | 58,627 | 2,489,302 | ||||||
| Assurant, Inc. | 25,600 | 932,608 | ||||||
| Berkshire Hathaway, Inc., Class B* | 356,067 | 27,417,159 | ||||||
| Chubb Corp. | 70,362 | 3,720,039 | ||||||
| Cincinnati Financial Corp. | 35,389 | 1,005,048 | ||||||
| Genworth Financial, Inc., Class A* | 104,400 | 1,724,688 | ||||||
| Hartford Financial Services Group, Inc. | 94,981 | 2,713,607 | ||||||
| Lincoln National Corp. | 63,256 | 1,935,001 | ||||||
| Loews Corp. | 79,113 | 2,946,168 | ||||||
| Marsh & McLennan Cos., Inc. | 112,893 | 2,734,268 | ||||||
| MetLife, Inc. | 175,379 | 7,993,775 | ||||||
| Principal Financial Group, Inc. | 68,907 | 2,013,463 | ||||||
| Progressive Corp. (The) | 148,100 | 2,975,329 | ||||||
| Prudential Financial, Inc. | 99,343 | 6,314,241 | ||||||
| Torchmark Corp. | 18,531 | 992,150 | ||||||
| Travelers Cos., Inc. (The) | 110,015 | 5,582,161 | ||||||
| Unum Group | 72,449 | 1,772,827 | ||||||
| XL Capital Ltd., Class A | 72,146 | 1,284,199 | ||||||
| 86,610,344 | ||||||||
Internet & Catalog Retail 0.6% | ||||||||
| Amazon.com, Inc.* | 73,290 | 10,045,127 | ||||||
| Expedia, Inc. | 45,500 | 1,074,255 | ||||||
| Priceline.com, Inc.* | 9,500 | 2,489,475 | ||||||
| 13,608,857 | ||||||||
Internet Software & Services 1.7% | ||||||||
| Akamai Technologies, Inc.* | 37,400 | 1,452,242 | ||||||
| eBay, Inc.* | 240,676 | 5,730,496 | ||||||
| Google, Inc., Class A* | 51,750 | 27,191,520 | ||||||
| Monster Worldwide, Inc.* | 24,931 | 434,547 | ||||||
| VeriSign, Inc.* | 42,200 | 1,150,794 | ||||||
| Yahoo!, Inc.* | 253,848 | 4,196,107 | ||||||
| 40,155,706 | ||||||||
Leisure Equipment & Products 0.1% | ||||||||
| Eastman Kodak Co.* (a) | 59,546 | 364,421 | ||||||
| Hasbro, Inc. | 26,721 | 1,025,018 | ||||||
| Mattel, Inc. | 77,423 | 1,784,600 | ||||||
| 3,174,039 | ||||||||
94 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Life Sciences Tools & Services 0.4% | ||||||||
| Life Technologies Corp.* | 38,102 | $ | 2,084,561 | |||||
| Millipore Corp.* | 12,025 | 1,276,454 | ||||||
| PerkinElmer, Inc. | 25,696 | 643,685 | ||||||
| Thermo Fisher Scientific, Inc.* | 87,476 | 4,835,673 | ||||||
| Waters Corp.* | 21,371 | 1,538,498 | ||||||
| 10,378,871 | ||||||||
Machinery 1.7% | ||||||||
| Caterpillar, Inc. | 133,364 | 9,080,755 | ||||||
| Cummins, Inc. | 43,200 | 3,120,336 | ||||||
| Danaher Corp. | 55,747 | 4,698,357 | ||||||
| Deere & Co. | 90,092 | 5,389,304 | ||||||
| Dover Corp. | 40,356 | 2,107,390 | ||||||
| Eaton Corp. | 35,536 | 2,741,958 | ||||||
| Flowserve Corp. | 12,300 | 1,409,334 | ||||||
| Illinois Tool Works, Inc. | 82,594 | 4,220,553 | ||||||
| PACCAR, Inc. | 77,891 | 3,623,489 | ||||||
| Pall Corp. | 25,691 | 1,001,692 | ||||||
| Parker Hannifin Corp. | 34,434 | 2,382,144 | ||||||
| Snap-on, Inc. | 11,270 | 542,989 | ||||||
| 40,318,301 | ||||||||
Media 3.1% | ||||||||
| CBS Corp. Non-Voting, Class B | 145,037 | 2,351,050 | ||||||
| Comcast Corp., Class A | 611,362 | 12,068,286 | ||||||
| DIRECTV, Class A* | 203,200 | 7,361,936 | ||||||
| Discovery Communications, Inc., Class A* | 61,300 | 2,372,310 | ||||||
| Gannett Co., Inc. | 50,776 | 864,207 | ||||||
| Interpublic Group of Cos., Inc. (The)* | 103,778 | 924,662 | ||||||
| McGraw-Hill Cos., Inc. (The) | 68,802 | 2,320,003 | ||||||
| Meredith Corp. | 8,235 | 295,884 | ||||||
| New York Times Co. (The), Class A* | 28,106 | 278,811 | ||||||
| News Corp., Class A | 482,500 | 7,440,150 | ||||||
| Omnicom Group, Inc. | 66,682 | 2,844,654 | ||||||
| Scripps Networks Interactive, Inc., Class A | 18,500 | 838,790 | ||||||
| Time Warner Cable, Inc. | 75,491 | 4,246,369 | ||||||
| Time Warner, Inc. | 249,447 | 8,251,707 | ||||||
| Viacom, Inc., Class B* | 130,037 | 4,594,207 | ||||||
| Walt Disney Co. (The) | 415,340 | 15,301,126 | ||||||
| Washington Post Co. (The), Class B | 1,285 | 651,701 | ||||||
| 73,005,853 | ||||||||
Metals & Mining 1.0% | ||||||||
| AK Steel Holding Corp. | 25,500 | 427,125 | ||||||
| Alcoa, Inc. | 213,526 | 2,869,789 | ||||||
| Allegheny Technologies, Inc. | 20,975 | 1,121,533 | ||||||
| Cliffs Natural Resources, Inc. | 27,900 | 1,744,587 | ||||||
| Freeport-McMoRan Copper & Gold, Inc. | 92,014 | 6,949,817 | ||||||
| Newmont Mining Corp. | 104,932 | 5,884,587 | ||||||
| Nucor Corp. | 67,460 | 3,057,287 | ||||||
| Titanium Metals Corp.* | 18,500 | 285,270 | ||||||
| United States Steel Corp. | 30,731 | 1,679,757 | ||||||
| 24,019,752 | ||||||||
Multiline Retail 0.9% | ||||||||
| Big Lots, Inc.* | 18,351 | 701,008 | ||||||
| Family Dollar Stores, Inc. | 29,706 | 1,175,169 | ||||||
| J.C. Penney Co., Inc. | 50,481 | 1,472,531 | ||||||
| Kohl’s Corp.* | 64,497 | 3,546,690 | ||||||
| Macy’s, Inc. | 90,152 | 2,091,527 | ||||||
| Nordstrom, Inc. | 35,092 | 1,450,352 | ||||||
| Sears Holdings Corp.* (a) | 10,361 | 1,253,163 | ||||||
| Target Corp. | 160,990 | 9,155,501 | ||||||
| 20,845,941 | ||||||||
Multi-Utilities 1.3% | ||||||||
| Ameren Corp. | 50,456 | 1,309,838 | ||||||
| CenterPoint Energy, Inc. | 76,842 | 1,103,451 | ||||||
| CMS Energy Corp. | 50,856 | 826,919 | ||||||
| Consolidated Edison, Inc. | 59,426 | 2,686,055 | ||||||
| Dominion Resources, Inc. | 126,488 | 5,287,198 | ||||||
| DTE Energy Co. | 35,491 | 1,709,601 | ||||||
| Integrys Energy Group, Inc. | 17,109 | 848,778 | ||||||
| NiSource, Inc. | 61,658 | 1,005,025 | ||||||
| PG&E Corp. | 79,472 | 3,480,874 | ||||||
| Public Service Enterprise Group, Inc. | 110,922 | 3,563,924 | ||||||
| SCANA Corp. | 25,500 | 1,006,485 | ||||||
| Sempra Energy | 52,881 | 2,600,688 | ||||||
| TECO Energy, Inc. | 47,681 | 807,239 | ||||||
| Wisconsin Energy Corp. | 25,500 | 1,339,005 | ||||||
| Xcel Energy, Inc. | 97,487 | 2,120,342 | ||||||
| 29,695,422 | ||||||||
Office Electronics 0.1% | ||||||||
| Xerox Corp. | 295,354 | 3,219,359 | ||||||
Oil, Gas & Consumable Fuels 9.1% | ||||||||
| Anadarko Petroleum Corp. | 104,876 | 6,519,092 | ||||||
| Apache Corp. | 71,824 | 7,308,810 | ||||||
| Cabot Oil & Gas Corp. | 22,600 | 816,538 | ||||||
| Chesapeake Energy Corp. | 138,700 | 3,301,060 | ||||||
| Chevron Corp. | 430,043 | 35,022,702 | ||||||
| ConocoPhillips | 318,356 | 18,843,492 | ||||||
| CONSOL Energy, Inc. | 47,030 | 2,101,300 | ||||||
| Denbury Resources, Inc.* | 88,300 | 1,690,945 | ||||||
| Devon Energy Corp. | 94,708 | 6,376,690 | ||||||
| El Paso Corp. | 150,113 | 1,816,367 | ||||||
| EOG Resources, Inc. | 53,582 | 6,007,614 | ||||||
| Exxon Mobil Corp. | 1,012,761 | 68,715,834 | ||||||
| Hess Corp. | 61,360 | 3,899,428 | ||||||
| Marathon Oil Corp. | 151,624 | 4,874,712 | ||||||
| Massey Energy Co. | 18,300 | 670,329 | ||||||
| Murphy Oil Corp. | 41,800 | 2,514,270 | ||||||
2010 Semiannual Report 95
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide S&P 500 Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| Noble Energy, Inc. | 37,100 | $ | 2,834,440 | |||||
| Occidental Petroleum Corp. | 173,854 | 15,413,896 | ||||||
| Peabody Energy Corp. | 56,500 | 2,639,680 | ||||||
| Pioneer Natural Resources Co. | 25,600 | 1,641,728 | ||||||
| Range Resources Corp. | 32,400 | 1,547,424 | ||||||
| Southwestern Energy Co.* | 73,100 | 2,900,608 | ||||||
| Spectra Energy Corp. | 136,340 | 3,182,176 | ||||||
| Sunoco, Inc. | 25,620 | 839,823 | ||||||
| Tesoro Corp. | 30,300 | 398,445 | ||||||
| Valero Energy Corp. | 120,884 | 2,513,178 | ||||||
| Williams Cos., Inc. (The) | 124,838 | 2,947,425 | ||||||
| XTO Energy, Inc. | 126,223 | 5,998,117 | ||||||
| 213,336,123 | ||||||||
Paper & Forest Products 0.2% | ||||||||
| International Paper Co. | 92,758 | 2,480,349 | ||||||
| MeadWestvaco Corp. | 35,547 | 965,812 | ||||||
| Weyerhaeuser Co. | 46,201 | 2,287,873 | ||||||
| 5,734,034 | ||||||||
Personal Products 0.2% | ||||||||
| Avon Products, Inc. | 91,417 | 2,955,512 | ||||||
| Estee Lauder Cos., Inc. (The), Class A | 25,100 | 1,654,592 | ||||||
| 4,610,104 | ||||||||
Pharmaceuticals 5.7% | ||||||||
| Abbott Laboratories | 332,463 | 17,008,807 | ||||||
| Allergan, Inc. | 67,332 | 4,288,375 | ||||||
| Bristol-Myers Squibb Co. | 367,040 | 9,282,442 | ||||||
| Eli Lilly & Co. | 216,291 | 7,563,696 | ||||||
| Forest Laboratories, Inc.* | 64,632 | 1,761,868 | ||||||
| Johnson & Johnson | 589,325 | 37,893,598 | ||||||
| King Pharmaceuticals, Inc.* | 53,623 | 525,505 | ||||||
| Merck & Co., Inc. | 667,081 | 23,374,518 | ||||||
| Mylan, Inc.*(a) | 66,751 | 1,470,525 | ||||||
| Pfizer, Inc. | 1,728,254 | 28,896,407 | ||||||
| Watson Pharmaceuticals, Inc.* | 22,706 | 972,271 | ||||||
| 133,038,012 | ||||||||
Professional Services 0.1% | ||||||||
| Dun & Bradstreet Corp. | 11,700 | 900,549 | ||||||
| Equifax, Inc. | 27,451 | 922,354 | ||||||
| Robert Half International, Inc. | 33,806 | 925,608 | ||||||
| 2,748,511 | ||||||||
Real Estate Investment Trusts (REITs) 1.2% | ||||||||
| Apartment Investment & Management Co., Class A | 27,716 | 621,116 | ||||||
| AvalonBay Communities, Inc. | 17,396 | 1,809,880 | ||||||
| Boston Properties, Inc. | 29,700 | 2,342,142 | ||||||
| Equity Residential | 59,111 | 2,675,955 | ||||||
| HCP, Inc. | 62,800 | 2,017,136 | ||||||
| Health Care REIT, Inc. | 24,400 | 1,096,292 | ||||||
| Host Hotels & Resorts, Inc. | 134,258 | 2,183,035 | ||||||
| Kimco Realty Corp. | 81,600 | 1,272,144 | ||||||
| Plum Creek Timber Co., Inc. | 36,261 | 1,443,188 | ||||||
| ProLogis | 104,851 | 1,380,888 | ||||||
| Public Storage | 28,000 | 2,713,480 | ||||||
| Simon Property Group, Inc. | 60,824 | 5,414,552 | ||||||
| Ventas, Inc. | 32,100 | 1,516,083 | ||||||
| Vornado Realty Trust | 33,615 | 2,802,482 | ||||||
| 29,288,373 | ||||||||
Real Estate Management & Development 0.0%† | ||||||||
| CB Richard Ellis Group, Inc., Class A* | 53,300 | 923,156 | ||||||
Road & Rail 0.8% | ||||||||
| CSX Corp. | 84,112 | 4,714,478 | ||||||
| Norfolk Southern Corp. | 78,737 | 4,671,466 | ||||||
| Ryder System, Inc. | 12,505 | 581,733 | ||||||
| Union Pacific Corp. | 107,632 | 8,143,437 | ||||||
| 18,111,114 | ||||||||
Semiconductors & Semiconductor Equipment 2.5% | ||||||||
| Advanced Micro Devices, Inc.* | 128,242 | 1,161,872 | ||||||
| Altera Corp. | 59,582 | 1,510,999 | ||||||
| Analog Devices, Inc. | 62,457 | 1,869,338 | ||||||
| Applied Materials, Inc. | 285,619 | 3,935,830 | ||||||
| Broadcom Corp., Class A | 92,196 | 3,179,840 | ||||||
| Intel Corp. | 1,182,938 | 27,006,475 | ||||||
| KLA-Tencor Corp. | 36,621 | 1,247,311 | ||||||
| Linear Technology Corp. | 47,767 | 1,435,876 | ||||||
| LSI Corp.* | 131,282 | 790,318 | ||||||
| MEMC Electronic Materials, Inc.* | 49,100 | 636,827 | ||||||
| Microchip Technology, Inc. (a) | 39,300 | 1,147,953 | ||||||
| Micron Technology, Inc.* | 181,868 | 1,700,466 | ||||||
| National Semiconductor Corp. | 45,177 | 667,716 | ||||||
| Novellus Systems, Inc.* | 20,821 | 545,510 | ||||||
| NVIDIA Corp.* | 118,833 | 1,868,055 | ||||||
| Teradyne, Inc.* | 37,101 | 453,745 | ||||||
| Texas Instruments, Inc. | 266,859 | 6,941,003 | ||||||
| Xilinx, Inc. | 59,322 | 1,529,321 | ||||||
| 57,628,455 | ||||||||
Software 4.0% | ||||||||
| Adobe Systems, Inc.* | 112,142 | 3,766,850 | ||||||
| Autodesk, Inc.* | 49,662 | 1,689,005 | ||||||
| BMC Software, Inc.* | 40,656 | 1,600,220 | ||||||
| CA, Inc. | 84,938 | 1,937,436 | ||||||
| Citrix Systems, Inc.* | 39,171 | 1,841,037 | ||||||
| Compuware Corp.* | 54,907 | 472,200 | ||||||
| Electronic Arts, Inc.* | 69,707 | 1,350,224 | ||||||
| Intuit, Inc.* | 70,262 | 2,540,674 | ||||||
| McAfee, Inc.* | 33,800 | 1,174,550 | ||||||
| Microsoft Corp. | 1,633,889 | 49,898,970 | ||||||
| Novell, Inc.* | 69,872 | 391,982 | ||||||
96 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Software (continued) | ||||||||
| Oracle Corp. | 836,938 | $ | 21,626,478 | |||||
| Red Hat, Inc.* | 42,800 | 1,278,436 | ||||||
| Salesforce.com, Inc.* | 23,100 | 1,977,360 | ||||||
| Symantec Corp.* | 173,574 | 2,910,836 | ||||||
| 94,456,258 | ||||||||
Specialty Retail 2.1% | ||||||||
| Abercrombie & Fitch Co., Class A | 17,300 | 756,529 | ||||||
| AutoNation, Inc.*(a) | 23,080 | 466,216 | ||||||
| AutoZone, Inc.* | 6,410 | 1,185,914 | ||||||
| Bed Bath & Beyond, Inc.* | 56,302 | 2,587,640 | ||||||
| Best Buy Co., Inc. | 71,915 | 3,279,324 | ||||||
| GameStop Corp., Class A*(a) | 32,400 | 787,644 | ||||||
| Gap, Inc. (The) | 99,040 | 2,449,259 | ||||||
| Home Depot, Inc. | 364,167 | 12,836,887 | ||||||
| Limited Brands, Inc. | 57,328 | 1,536,391 | ||||||
| Lowe��s Cos., Inc. | 314,898 | 8,540,034 | ||||||
| Office Depot, Inc.* | 55,662 | 381,841 | ||||||
| O’Reilly Automotive, Inc.* | 30,500 | 1,491,145 | ||||||
| RadioShack Corp. | 29,871 | 643,720 | ||||||
| Ross Stores, Inc. | 25,200 | 1,411,200 | ||||||
| Sherwin-Williams Co. (The) | 20,386 | 1,591,535 | ||||||
| Staples, Inc. | 152,472 | 3,587,666 | ||||||
| Tiffany & Co. | 26,686 | 1,293,737 | ||||||
| TJX Cos., Inc. | 88,568 | 4,104,241 | ||||||
| Urban Outfitters, Inc.* | 27,800 | 1,042,778 | ||||||
| 49,973,701 | ||||||||
Textiles, Apparel & Luxury Goods 0.5% | ||||||||
| Coach, Inc. | 68,300 | 2,851,525 | ||||||
| NIKE, Inc., Class B | 83,472 | 6,336,360 | ||||||
| Polo Ralph Lauren Corp. | 12,400 | 1,114,760 | ||||||
| VF Corp. | 19,106 | 1,651,140 | ||||||
| 11,953,785 | ||||||||
Thrifts & Mortgage Finance 0.1% | ||||||||
| Hudson City Bancorp, Inc. | 108,900 | 1,448,370 | ||||||
| People’s United Financial, Inc. | 76,300 | 1,184,939 | ||||||
| 2,633,309 | ||||||||
Tobacco 1.4% | ||||||||
| Altria Group, Inc. | 443,743 | 9,402,914 | ||||||
| Lorillard, Inc. | 33,200 | 2,601,884 | ||||||
| Philip Morris International, Inc. | 402,743 | 19,766,626 | ||||||
| Reynolds American, Inc. | 36,790 | 1,965,322 | ||||||
| 33,736,746 | ||||||||
Trading Companies & Distributors 0.1% | ||||||||
| Fastenal Co. (a) | 28,300 | 1,547,727 | ||||||
| W.W. Grainger, Inc. | 13,525 | 1,495,054 | ||||||
| 3,042,781 | ||||||||
Wireless Telecommunication Services 0.3% | ||||||||
| American Tower Corp., Class A* | 86,000 | 3,509,660 | ||||||
| MetroPCS Communications, Inc.* | 58,700 | 447,881 | ||||||
| Sprint Nextel Corp.* | 643,314 | 2,734,085 | ||||||
| 6,691,626 | ||||||||
Total Common Stocks (cost $2,286,167,818) | 2,297,311,533 | |||||||
| Mutual Fund 2.1% | ||||||||
Money Market Fund 2.1% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (c) | 50,319,310 | 50,319,310 | ||||||
Total Mutual Fund (cost $50,319,310) | 50,319,310 | |||||||
| Repurchase Agreement 0.8% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 04/30/10, due 05/03/10, repurchase price $19,543,079, collateralized by U.S. Government Agency Mortgages ranging from 4.00% to 6.00%, maturing 07/01/23-04/01/40; total market value of $19,935,619. (d) | $ | 19,542,770 | 19,542,770 | |||||
Total Repurchase Agreement (cost $19,542,770) | 19,542,770 | |||||||
Total Investments (cost $2,356,029,898) (e) — 100.9% | 2,367,173,613 | |||||||
Liabilities in excess of other assets — (0.9%) | (20,977,937 | ) | ||||||
NET ASSETS — 100.0% | $ | 2,346,195,676 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $18,378,906. | |
| (b) | A security or a portion of a security was used to cover the margin requirement for futures contracts. | |
| (c) | Represents 7-day effective yield as of April 30, 2010. | |
| (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, 2010 was $19,542,770. |
2010 Semiannual Report 97
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide S&P 500 Index Fund (Continued)
| (e) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| † | Amount rounds to less than 0.1%. |
| Ltd. | Limited | |
| REIT | Real Estate Investment Trust | |
| SA | Stock Company |
At April 30, 2010, the Fund’s open futures contracts were as follows (See Note 2):
| Notional Value | ||||||||||||||
| Number of | Long | Covered by | Unrealized | |||||||||||
| Contracts | Contracts | Expiration | Contracts | Appreciation | ||||||||||
| 170 | S&P 500 Futures | 06/17/10 | $ | 50,294,500 | $ | 669,933 | ||||||||
The accompanying notes are an integral part of these financial statements.
98 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| S&P 500 | |||||
| Index Fund | |||||
Assets: | |||||
| Investments, at value (cost $2,336,487,128)* | $ | 2,347,630,843 | |||
| Repurchase agreement, at value and cost | 19,542,770 | ||||
| Total Investments | 2,367,173,613 | ||||
| Cash | 172,138 | ||||
| Interest and dividends receivable | 2,314,999 | ||||
| Security lending income receivable | 12,104 | ||||
| Receivable for capital shares issued | 735,059 | ||||
| Prepaid expenses and other assets | 230,901 | ||||
| Total Assets | 2,370,638,814 | ||||
Liabilities: | |||||
| Payable for investments purchased | 1,273,074 | ||||
| Payable for capital shares redeemed | 1,890,610 | ||||
| Payable for variation margin on futures contracts | 927,804 | ||||
| Payable upon return of securities loaned (Note 2) | 19,542,770 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 177,476 | ||||
| Fund administration fees | 225,182 | ||||
| Distribution fees | 87,379 | ||||
| Accounting and transfer agent fees | 30,534 | ||||
| Trustee fees | 20,509 | ||||
| Custodian fees | 10,427 | ||||
| Compliance program costs (Note 3) | 18,256 | ||||
| Professional fees | 79,263 | ||||
| Printing fees | 76,368 | ||||
| Other | 83,486 | ||||
| Total Liabilities | 24,443,138 | ||||
Net Assets | $ | 2,346,195,676 | |||
Represented by: | |||||
| Capital | $ | 2,370,398,375 | |||
| Accumulated undistributed net investment income | 7,615,567 | ||||
| Accumulated net realized losses from investment and futures transactions | (43,631,914 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 11,143,715 | ||||
| Net unrealized appreciation/(depreciation) from futures (Note 2) | 669,933 | ||||
Net Assets | $ | 2,346,195,676 | |||
Net Assets: | |||||
| Class A Shares | $ | 118,258,166 | |||
| Class B Shares | 10,751,803 | ||||
| Class C Shares | 3,622,865 | ||||
| Class R2 Shares | 581,361 | ||||
| Institutional Service Class Shares | 79,744,507 | ||||
| Institutional Class Shares | 1,728,500,531 | ||||
| Service Class Shares | 404,736,443 | ||||
| Total | $ | 2,346,195,676 | |||
| * | Includes value of securities on loan of $18,378,906 (Note 2) |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 99
Statement of Assets and Liabilities (Continued)
April 30, 2010 (Unaudited)
| Nationwide | |||||
| S&P 500 | |||||
| Index Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 11,921,436 | ||||
| Class B Shares | 1,089,750 | ||||
| Class C Shares | 369,311 | ||||
| Class R2 Shares | 58,687 | ||||
| Institutional Service Class Shares | 8,003,828 | ||||
| Institutional Class Shares | 173,278,034 | ||||
| Service Class Shares | 40,806,706 | ||||
| Total | 235,527,752 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 9.92 | |||
| Class B Shares (a) | $ | 9.87 | |||
| Class C Shares (b) | $ | 9.81 | |||
| Class R2 Shares | $ | 9.91 | |||
| Institutional Service Class Shares | $ | 9.96 | |||
| Institutional Class Shares | $ | 9.98 | |||
| Service Class Shares | $ | 9.92 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 10.53 | |||
| 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.
100 Semiannual Report 2010
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| S&P 500 | |||||
| Index Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 18,200 | |||
| Dividend income | 25,368,663 | ||||
| Income from securities lending (Note 2) | 86,680 | ||||
| Total Income | 25,473,543 | ||||
EXPENSES: | |||||
| Investment advisory fees | 1,386,234 | ||||
| Fund administration fees | 1,248,100 | ||||
| Distribution fees Class A | 127,194 | ||||
| Distribution fees Class B | 52,589 | ||||
| Distribution fees Class C | 16,716 | ||||
| Distribution fees Class R2 | 1,206 | ||||
| Distribution fees Service Class | 293,611 | ||||
| Administrative servicing fees Class A | 81,405 | ||||
| Administrative servicing fees Class R2 | 603 | ||||
| Administrative servicing fees Institutional Service Class | 93,549 | ||||
| Administrative servicing fees Service | 489,349 | ||||
| Registration and filing fees | 40,256 | ||||
| Professional fees | 89,016 | ||||
| Printing fees | 65,612 | ||||
| Trustee fees | 53,698 | ||||
| Custodian fees | 39,655 | ||||
| Accounting and transfer agent fees | 54,656 | ||||
| Compliance program costs (Note 3) | 10,783 | ||||
| Other | 85,483 | ||||
| Total expenses before earnings credit and expenses reimbursed | 4,229,715 | ||||
| Earnings credit (Note 6) | (388 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (564,725 | ) | |||
| Net Expenses | 3,664,602 | ||||
NET INVESTMENT INCOME | 21,808,941 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (4,556,932 | ) | |||
| Net realized gains from futures transactions (Note 2) | 4,937,476 | ||||
| Net realized gains from investments and futures transactions | 380,544 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 291,003,487 | ||||
| Net change in unrealized appreciation/(depreciation) from futures (Note 2) | 1,852,492 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 292,855,979 | ||||
| Net realized/unrealized gains from investments and futures transactions | 293,236,523 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 315,045,464 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 101
Statements of Changes in Net Assets
| Nationwide S&P 500 Index Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 21,808,941 | $ | 37,944,095 | ||||||
| Net realized gains/(losses) from investment and futures transactions | 380,544 | (794,259 | ) | |||||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 292,855,979 | 163,944,039 | ||||||||
| Change in net assets resulting from operations | 315,045,464 | 201,093,875 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (674,437 | ) | (1,470,934 | ) | ||||||
| Class B | (49,142 | ) | (111,448 | ) | ||||||
| Class C | (15,286 | ) | (33,336 | ) | ||||||
| Class R2 (a) | (2,325 | ) | (4,852 | ) | ||||||
| Institutional Service Class | (553,336 | ) | (1,241,356 | ) | ||||||
| Local Shares (b) | – | (737 | ) | |||||||
| Institutional Class | (13,830,363 | ) | (28,168,273 | ) | ||||||
| Service Class | (2,984,769 | ) | (6,632,079 | ) | ||||||
| Change in net assets from shareholder distributions | (18,109,658 | ) | (37,663,015 | ) | ||||||
| Change in net assets from capital transactions | 10,807,200 | 170,078,134 | ||||||||
| Change in net assets | 307,743,006 | 333,508,994 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 2,038,452,670 | 1,704,943,676 | ||||||||
| End of period | $ | 2,346,195,676 | $ | 2,038,452,670 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 7,615,567 | $ | 3,916,284 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 33,696,269 | $ | 36,742,591 | ||||||
| Dividends reinvested | 620,983 | 1,320,442 | ||||||||
| Cost of shares redeemed (c) | (21,366,005 | ) | (19,539,520 | ) | ||||||
| Total Class A | 12,951,247 | 18,523,513 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 24,852,923 | 2,702,593 | ||||||||
| Dividends reinvested | 10,686 | 27,931 | ||||||||
| Cost of shares redeemed (c) | (25,500,507 | ) | (2,303,620 | ) | ||||||
| Total Class B | (636,898 | ) | 426,904 | |||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 543,496 | 1,002,646 | ||||||||
| Dividends reinvested | 4,634 | 10,321 | ||||||||
| Cost of shares redeemed | (381,647 | ) | (606,492 | ) | ||||||
| Total Class C | 166,483 | 406,475 | ||||||||
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. |
| (c) | Includes redemption fees – see Note 5 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
102 Semiannual Report 2010
| Nationwide S&P 500 Index Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 212,391 | $ | 194,911 | ||||||
| Dividends reinvested | 2,325 | 4,852 | ||||||||
| Cost of shares redeemed | (92,411 | ) | (69,536 | ) | ||||||
| Total Class R2 | 122,305 | 130,227 | ||||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 4,394,869 | 14,671,266 | ||||||||
| Dividends reinvested | 553,336 | 1,241,340 | ||||||||
| Cost of shares redeemed | (5,104,841 | ) | (13,367,948 | ) | ||||||
| Total Institutional Service Class | (156,636 | ) | 2,544,658 | |||||||
Local Shares (b) | ||||||||||
| Proceeds from shares issued | – | 2 | ||||||||
| Dividends reinvested | – | 698 | ||||||||
| Cost of shares redeemed | – | (88,653 | ) | |||||||
| Total Local Shares | – | (87,953 | ) | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 104,358,590 | 273,988,070 | ||||||||
| Dividends reinvested | 13,793,359 | 28,094,784 | ||||||||
| Cost of shares redeemed (c) | (90,173,598 | ) | (130,473,874 | ) | ||||||
| Total Institutional Class | 27,978,351 | 171,608,980 | ||||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 12,162,465 | 32,797,491 | ||||||||
| Dividends reinvested | 2,984,769 | 6,631,986 | ||||||||
| Cost of shares redeemed (c) | (44,764,886 | ) | (62,904,147 | ) | ||||||
| Total Service Class | (29,617,652 | ) | (23,474,670 | ) | ||||||
| Change in net assets from capital transactions: | $ | 10,807,200 | $ | 170,078,134 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 3,466,934 | 4,938,480 | ||||||||
| Reinvested | 67,279 | 177,559 | ||||||||
| Redeemed | (2,215,031 | ) | (2,599,365 | ) | ||||||
| Total Class A Shares | 1,319,182 | 2,516,674 | ||||||||
Class B Shares | ||||||||||
| Issued | 2,709,599 | 368,771 | ||||||||
| Reinvested | 1,169 | 3,847 | ||||||||
| Redeemed | (2,778,494 | ) | (303,994 | ) | ||||||
| Total Class B Shares | (67,726 | ) | 68,624 | |||||||
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. |
| (c) | Includes redemption fees – see Note 5 to Financial Statements. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 103
Statements of Changes in Net Assets (Continued)
| Nationwide S&P 500 Index Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class C Shares | ||||||||||
| Issued | 58,853 | 138,967 | ||||||||
| Reinvested | 510 | 1,427 | ||||||||
| Redeemed | (41,506 | ) | (77,739 | ) | ||||||
| Total Class C Shares | 17,857 | 62,655 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 22,960 | 26,502 | ||||||||
| Reinvested | 253 | 667 | ||||||||
| Redeemed | (9,471 | ) | (9,171 | ) | ||||||
| Total Class R2 Shares | 13,742 | 17,998 | ||||||||
Institutional Service Class Shares | ||||||||||
| Issued | 460,843 | 2,051,933 | ||||||||
| Reinvested | 59,556 | 167,215 | ||||||||
| Redeemed | (540,643 | ) | (1,766,031 | ) | ||||||
| Total Institutional Service Class Shares | (20,244 | ) | 453,117 | |||||||
Local Shares (b) | ||||||||||
| Issued | – | – | ||||||||
| Reinvested | – | 94 | ||||||||
| Redeemed | – | (12,781 | ) | |||||||
| Total Local Shares | – | (12,687 | ) | |||||||
Institutional Class Shares | ||||||||||
| Issued | 10,750,378 | 37,341,312 | ||||||||
| Reinvested | 1,479,028 | 3,753,225 | ||||||||
| Redeemed | (9,259,421 | ) | (17,005,455 | ) | ||||||
| Total Institutional Class Shares | 2,969,985 | 24,089,082 | ||||||||
Service Class Shares | ||||||||||
| Issued | 897,121 | 4,886,701 | ||||||||
| Reinvested | 323,619 | 897,397 | ||||||||
| Redeemed | (4,405,792 | ) | (8,595,543 | ) | ||||||
| Total Service Class Shares | (3,185,052 | ) | (2,811,445 | ) | ||||||
| Total change in shares: | 1,047,744 | 24,384,018 | ||||||||
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.
104 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide S&P 500 Index Fund
| Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | 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 of | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 8 | .66 | 0 | .08 | 1 | .24 | 1 | .32 | (0 | .06) | – | (0 | .06) | — | $ | 9 | .92 | 15 | .32% | $ | 118,258,166 | 0 | .64% | 1 | .66% | 0 | .69% | 2 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .09 | 0 | .15 | 0 | .58 | 0 | .73 | (0 | .16) | – | (0 | .16) | — | $ | 8 | .66 | 9 | .32% | $ | 91,782,717 | 0 | .52% | 1 | .97% | 0 | .60% | 4 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .62 | 0 | .05 | 1 | .24 | 1 | .29 | (0 | .04) | – | (0 | .04) | — | $ | 9 | .87 | 15 | .03% | $ | 10,751,803 | 1 | .23% | 1 | .11% | 1 | .28% | 2 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .05 | 0 | .10 | 0 | .57 | 0 | .67 | (0 | .10) | – | (0 | .10) | — | $ | 8 | .62 | 8 | .53% | $ | 9,974,577 | 1 | .23% | 1 | .29% | 1 | .31% | 4 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .57 | 0 | .05 | 1 | .23 | 1 | .28 | (0 | .04) | – | (0 | .04) | — | $ | 9 | .81 | 15 | .01% | $ | 3,622,865 | 1 | .23% | 1 | .07% | 1 | .28% | 2 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .00 | (0 | .02) | 0 | .69 | 0 | .67 | (0 | .10) | – | (0 | .10) | — | $ | 8 | .57 | 8 | .62% | $ | 3,011,534 | 1 | .23% | (0 | .23%) | 1 | .31% | 4 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .65 | 0 | .06 | 1 | .25 | 1 | .31 | (0 | .05) | – | (0 | .05) | — | $ | 9 | .91 | 15 | .20% | $ | 581,361 | 0 | .98% | 1 | .28% | 1 | .03% | 2 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .08 | 0 | .12 | 0 | .58 | 0 | .70 | (0 | .13) | – | (0 | .13) | — | $ | 8 | .65 | 8 | .95% | $ | 388,693 | 0 | .90% | 1 | .56% | 0 | .98% | 4 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 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% | ||||||||||||||||||||||||||||||||||||||||||||||
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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | 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.
2010 Semiannual Report 105
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide S&P 500 Index Fund (Continued)
| Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of Net | 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 of | Income | (Losses) from | from | Investment | Realized | Total | Redemption | Value, End | Total | at End of | to Average | to Average | to Average | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited)(f) | $ | 8 | .69 | 0 | .09 | 1 | .25 | 1 | .34 | (0 | .07) | – | (0 | .07) | — | $ | 9 | .96 | 15 | .34% | $ | 79,744,507 | 0 | .48% | 1 | .85% | 0 | .53% | 2 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .12 | 0 | .20 | 0 | .53 | 0 | .73 | (0 | .16) | – | (0 | .16) | — | $ | 8 | .69 | 9 | .42% | $ | 69,764,415 | 0 | .48% | 2 | .57% | 0 | .56% | 4 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 8 | .70 | 0 | .10 | 1 | .26 | 1 | .36 | (0 | .08) | – | (0 | .08) | — | $ | 9 | .98 | 15 | .71% | $ | 1,728,500,531 | 0 | .23% | 2 | .10% | 0 | .28% | 2 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .13 | 0 | .17 | 0 | .58 | 0 | .75 | (0 | .18) | – | (0 | .18) | — | $ | 8 | .70 | 9 | .55% | $ | 1,482,444,134 | 0 | .23% | 2 | .25% | 0 | .31% | 4 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited)(f) | $ | 8 | .66 | 0 | .08 | 1 | .25 | 1 | .33 | (0 | .07) | – | (0 | .07) | — | $ | 9 | .92 | 15 | .42% | $ | 404,736,443 | 0 | .63% | 1 | .72% | 0 | .68% | 2 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .08 | 0 | .15 | 0 | .57 | 0 | .72 | (0 | .14) | – | (0 | .14) | — | $ | 8 | .66 | 9 | .27% | $ | 381,086,600 | 0 | .63% | 1 | .92% | 0 | .72% | 4 | .24% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||||||
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. |
The accompanying notes are an integral part of these financial statements.
106 Semiannual Report 2010
| 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, 2010, the Nationwide Small Cap Index Fund (Class A at NAV) returned 27.91% versus 28.17% 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 779 funds as of April 30, 2010) was 25.43% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Global stock markets remained volatile during the entire reporting period, but the general pattern that has been in place since the markets bottomed in March 2009 persisted: The backdrop of a slowly improving economy and strong corporate earnings has allowed stock markets to post noticeable gains. A significant market correction in stocks occurred from mid-January to mid-February 2010, spurred by uneven economic data, concerns about the creditworthiness of European sovereign debt, and uncertainty surrounding the passage of health-care reform. By February 2010, U.S. stocks had dropped to -5.0% on a year-to-date basis, but these stocks subsequently experienced a multiweek rally that allowed them to return 15.7% during the reporting period. At the end of April, market volatility was rising and uncertainty plagued the escalating Greek sovereign debt crisis.
All 10 sectors within the Fund’s benchmark Russell 2000 Index recorded positive returns during the reporting period. The strongest-performing sectors were consumer discretionary, with 40.65%, and materials, with 34.40%. The top three stocks that provided positive contributions to the Fund during the reporting period were Strategic Hotels & Resorts, Inc.; InterMune, Inc.; and UAL Corp.
What areas of investment detracted from Fund performance?
Although sectors such as utilities, with a return of 17.25%, and telecommunications services, with 16.71%, recorded positive returns in the Fund’s benchmark for the reporting period, these results significantly lagged those of the benchmark index’s top-performing segments. On an individual-stock basis, Fund holdings that provided the greatest negative contributions to Fund performance during the reporting period were Anthracite Capital, Inc.; UCBH Holdings, Inc.; and YRC Worldwide Inc.
What is your outlook for the near term?
So far in 2010, a backdrop of moderate economic growth, low inflation, accommodative monetary policy and improving prospects for corporate earnings has been very supportive of risk asset prices. There are, however, a number of uncertainties and risks for investors to consider, including ongoing deleveraging issues (such as the uncertainty about Greece’s debt problems), escalating tensions between the United States and China over currency matters, and a general sense of unease regarding the strength and pace of the global recovery.
In our minds, there are two key risks that could derail the current cyclical bull market. The first would be a significant setback in economic activity that interrupts the growth in corporate revenues and earnings. The second would be an increase in inflationary pressures that could force the Federal Reserve Board into a rapid tightening of monetary policy. By our analysis, neither of these events is likely to occur. While the current recovery is far from robust, the number of positive trends leads us to believe that it should become sustainable. From an inflation perspective, it is our view that the amount of slack in the labor market (and in the economy as a whole) should prevent a dramatic rise in wage and price pressures.
From a short-term perspective, we acknowledge that markets remain under pressure due to sovereign debt issues in Europe, policy tightening in China and elsewhere, and uncertainty surrounding pending regulations for the financial services sector. In our view, however, the positive forces of improving economic growth, an absence of inflation, low interest rates and stronger corporate earnings should continue to move markets higher.
Subadviser:
BlackRock Investment Management, LLC
BlackRock Investment Management, LLC
Portfolio Managers:
Edward Corallo and Debra L. Jelilian
Edward Corallo and Debra L. Jelilian
2010 Semiannual Report 107
| Fund Performance | Nationwide Small Cap Index Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
Class A1 | w/o SC2 | 27.91% | 48.40% | 5.08% | 3.61% | |||||||||||||
| w/SC3 | 20.57% | 39.86% | 3.85% | 3.00% | ||||||||||||||
Class B4 | w/o SC2 | 27.44% | 47.36% | 4.43% | 3.06% | |||||||||||||
| w/SC5 | 22.44% | 42.36% | 4.09% | 3.06% | ||||||||||||||
Class C6 | w/o SC2 | 27.39% | 47.36% | 4.46% | 3.09% | |||||||||||||
| w/SC7 | 26.39% | 46.36% | 4.46% | 3.09% | ||||||||||||||
Class R28,9,10 | 27.70% | 48.12% | 5.03% | 3.59% | ||||||||||||||
Institutional Class1,8 | 28.00% | 48.78% | 5.47% | 4.04% | ||||||||||||||
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 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 | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. | |
| 10 | 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. |
108 Semiannual Report 2010
Expense Ratios
| Gross | Net | |||||||
| Expense | Expense | |||||||
| Ratio* | Ratio* | |||||||
| Class A | 0.74% | 0.70% | ||||||
| Class B | 1.34% | 1.30% | ||||||
| Class C | 1.34% | 1.30% | ||||||
| Class R2 | 1.04% | 1.00% | ||||||
| Institutional Class | 0.34% | 0.30% | ||||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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(a) and the Consumer Price Index (CPI)(b) over a 10-year period ended 04/30/10. 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. |
2010 Semiannual Report 109
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Nationwide Small Cap | Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | ||||||||||||||||
| Index Fund | 11/01/09 | 4/30/10 | 11/01/09 - 4/30/10a | 11/01/09 -04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,279.10 | 3.96 | 0.70 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.32 | 3.51 | 0.70 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,274.40 | 7.33 | 1.30 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.35 | 6.51 | 1.30 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,273.90 | 7.33 | 1.30 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.35 | 6.51 | 1.30 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,277.00 | 4.52 | 0.80 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.83 | 4.01 | 0.80 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,280.00 | 1.70 | 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 with Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
110 Semiannual Report 2010
| Portfolio Summary | Nationwide Small Cap Index Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 96 | .9% | ||
| Repurchase Agreement | 7 | .5% | ||
| Mutual Fund | 3 | .2% | ||
| Warrants ‡ | 0 | .0% | ||
| Liabilities in excess of other assets | (7 | .6)% | ||
| 100 | .0% | |||
| ‡ | Rounds to less than 0.1% |
| Top Industries (†) | ||||
| Real Estate Investment Trusts (REITs) | 6 | .0% | ||
| Commercial Banks | 5 | .8% | ||
| Software | 3 | .8% | ||
| Biotechnology | 3 | .4% | ||
| Semiconductors & Semiconductor Equipment | 3 | .3% | ||
| Health Care Providers & Services | 3 | .3% | ||
| Specialty Retail | 3 | .2% | ||
| Health Care Equipment & Supplies | 3 | .2% | ||
| Oil, Gas & Consumable Fuels | 3 | .1% | ||
| Insurance | 2 | .7% | ||
| Other Industries * | 62 | .2% | ||
| 100 | .0% | |||
| Top Holdings (†) | ||||
| Invesco AIM Liquid Assets Portfolio | 3 | .0% | ||
| Human Genome Sciences, Inc. | 0 | .4% | ||
| UAL Corp. | 0 | .3% | ||
| Tupperware Brands Corp. | 0 | .3% | ||
| Ares Capital Corp. | 0 | .3% | ||
| East West Bancorp, Inc. | 0 | .3% | ||
| Domtar Corp. | 0 | .2% | ||
| Skyworks Solutions, Inc. | 0 | .2% | ||
| Polycom, Inc. | 0 | .2% | ||
| E*Trade Financial Corp. | 0 | .2% | ||
| Other Holdings * | 94 | .6% | ||
| 100 | .0% | |||
| (†) | Percentages indicated are based upon total investments as of April 30, 2010. | |
| (*) | For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 111
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund
| Common Stocks 96.9% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 1.7% | ||||||||
| AAR Corp.* | 16,868 | $ | 411,242 | |||||
| Aerovironment, Inc.* (a) | 6,500 | 170,170 | ||||||
| American Science & Engineering, Inc. | 4,330 | 325,399 | ||||||
| Applied Signal Technology, Inc. | 6,900 | 128,961 | ||||||
| Argon ST, Inc.* | 6,040 | 157,040 | ||||||
| Ascent Solar Technologies, Inc.* (a) | 6,700 | 25,527 | ||||||
| Astronics Corp.* | 3,800 | 54,948 | ||||||
| Ceradyne, Inc.* | 11,040 | 245,088 | ||||||
| Cubic Corp. | 6,546 | 244,231 | ||||||
| Curtiss-Wright Corp. | 19,448 | 693,710 | ||||||
| DigitalGlobe, Inc.* | 6,300 | 167,328 | ||||||
| Ducommun, Inc. | 4,500 | 103,005 | ||||||
| DynCorp International, Inc., Class A* | 10,400 | 178,880 | ||||||
| Esterline Technologies Corp.* | 12,861 | 717,387 | ||||||
| GenCorp, Inc.* | 24,574 | 152,850 | ||||||
| GeoEye, Inc.* | 9,261 | 263,939 | ||||||
| Global Defense Technology & Systems, Inc.* | 2,200 | 31,086 | ||||||
| HEICO Corp. | 12,935 | 557,110 | ||||||
| Herley Industries, Inc.* | 5,900 | 86,435 | ||||||
| Hexcel Corp.* | 41,875 | 678,375 | ||||||
| Ladish Co., Inc.* | 7,000 | 192,430 | ||||||
| LMI Aerospace, Inc.* | 3,600 | 62,136 | ||||||
| Moog, Inc., Class A* | 19,463 | 723,440 | ||||||
| Orbital Sciences Corp.* | 26,122 | 480,122 | ||||||
| Stanley, Inc.* | 4,800 | 151,824 | ||||||
| Taser International, Inc.* | 29,516 | 139,611 | ||||||
| Teledyne Technologies, Inc.* | 15,463 | 674,187 | ||||||
| Todd Shipyards Corp. | 2,500 | 39,700 | ||||||
| Triumph Group, Inc. | 7,805 | 605,356 | ||||||
| 8,461,517 | ||||||||
Air Freight & Logistics 0.3% | ||||||||
| Air Transport Services Group, Inc.* | 24,400 | 134,200 | ||||||
| Atlas Air Worldwide Holdings, Inc.* | 9,100 | 502,957 | ||||||
| Dynamex, Inc.* | 3,860 | 68,284 | ||||||
| Forward Air Corp. | 12,291 | 344,394 | ||||||
| HUB Group, Inc., Class A* | 16,215 | 519,042 | ||||||
| Pacer International, Inc.* | 16,224 | 107,727 | ||||||
| 1,676,604 | ||||||||
Airlines 1.0% | ||||||||
| AirTran Holdings, Inc.* | 62,319 | 329,044 | ||||||
| Alaska Air Group, Inc.* | 15,788 | 653,781 | ||||||
| Allegiant Travel Co.* (a) | 7,200 | 370,296 | ||||||
| Hawaiian Holdings, Inc.* | 22,000 | 156,200 | ||||||
| JetBlue Airways Corp.* | 112,300 | 627,757 | ||||||
| Republic Airways Holdings, Inc.* | 15,300 | 95,778 | ||||||
| SkyWest, Inc. | 24,258 | 363,385 | ||||||
| UAL Corp.* (a) | 73,000 | 1,575,340 | ||||||
| US Airways Group, Inc.* | 72,200 | 510,454 | ||||||
| 4,682,035 | ||||||||
Auto Components 0.9% | ||||||||
| American Axle & Manufacturing Holdings, Inc.* | 24,445 | 263,028 | ||||||
| Amerigon, Inc.* | 9,100 | 89,271 | ||||||
| ArvinMeritor, Inc.* | 41,366 | 633,727 | ||||||
| China Automotive Systems, Inc.* (a) | 2,700 | 60,048 | ||||||
| Cooper Tire & Rubber Co. | 25,468 | 540,431 | ||||||
| Dana Holding Corp.* | 60,700 | 810,952 | ||||||
| Dorman Products, Inc.* | 4,700 | 119,145 | ||||||
| Drew Industries, Inc.* | 8,098 | 207,714 | ||||||
| Exide Technologies* | 20,700 | 122,958 | ||||||
| Fuel Systems Solutions, Inc.* (a) | 6,400 | 201,408 | ||||||
| Hawk Corp., Class A* | 2,600 | 60,164 | ||||||
| Modine Manufacturing Co.* | 19,440 | 272,354 | ||||||
| Raser Technologies, Inc.* | 31,100 | 25,079 | ||||||
| Spartan Motors, Inc. | 13,800 | 85,146 | ||||||
| Standard Motor Products, Inc. | 6,700 | 71,422 | ||||||
| Stoneridge, Inc.* | 6,500 | 70,135 | ||||||
| Superior Industries International, Inc. | 10,085 | 170,033 | ||||||
| Tenneco, Inc.* | 26,370 | 679,555 | ||||||
| Wonder Auto Technology, Inc.* (a) | 9,100 | 105,287 | ||||||
| 4,587,857 | ||||||||
Automobiles 0.1% | ||||||||
| Winnebago Industries, Inc.* | 12,753 | 212,082 | ||||||
Beverages 0.1% | ||||||||
| Boston Beer Co., Inc., Class A* | 3,855 | 219,774 | ||||||
Coca-Cola Bottling Co. Consolidated | 1,900 | 104,652 | ||||||
| Heckmann Corp.* | 36,500 | 219,000 | ||||||
| National Beverage Corp. | 4,432 | 51,411 | ||||||
| 594,837 | ||||||||
Biotechnology 3.7% | ||||||||
| Acorda Therapeutics, Inc.* | 16,400 | 635,500 | ||||||
| Affymax, Inc.* | 7,000 | 166,880 | ||||||
| Alkermes, Inc.* | 42,357 | 554,877 | ||||||
| Allos Therapeutics, Inc.* | 34,100 | 269,390 | ||||||
| Alnylam Pharmaceuticals, Inc.* | 15,800 | 267,968 | ||||||
| AMAG Pharmaceuticals, Inc.* (a) | 8,960 | 305,984 | ||||||
| Amicus Therapeutics, Inc.* (a) | 6,600 | 21,450 | ||||||
| Arena Pharmaceuticals, Inc.* (a) | 45,300 | 147,225 | ||||||
| ARIAD Pharmaceuticals, Inc.* | 53,614 | 188,721 | ||||||
| Arqule, Inc.* | 17,000 | 108,290 | ||||||
| Array BioPharma, Inc.* | 22,000 | 81,400 | ||||||
| AVI BioPharma, Inc.* (a) | 43,600 | 57,988 | ||||||
| BioCryst Pharmaceuticals, Inc.* (a) | 12,800 | 97,280 | ||||||
| Biospecifics Technologies Corp.* (a) | 1,500 | 47,460 | ||||||
| Cardium Therapeutics, Inc.* (a) | 19,900 | 11,542 | ||||||
| Celera Corp.* | 35,873 | 267,971 | ||||||
| Cell Therapeutics, Inc.* (a) | 262,600 | 162,156 | ||||||
| Celldex Therapeutics, Inc.* (a) | 13,700 | 111,929 | ||||||
| Cepheid, Inc.* | 26,690 | 533,533 | ||||||
112 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Biotechnology (continued) | ||||||||
| Chelsea Therapeutics International Ltd.* (a) | 9,900 | $ | 39,699 | |||||
| Clinical Data, Inc.* (a) | 5,100 | 95,268 | ||||||
| Cubist Pharmaceuticals, Inc.* | 25,020 | 560,948 | ||||||
| Curis, Inc.* | 28,500 | 94,050 | ||||||
| Cytokinetics, Inc.* | 17,400 | 56,028 | ||||||
| Cytori Therapeutics, Inc.* (a) | 14,500 | 81,780 | ||||||
| Dyax Corp.* | 32,000 | 112,000 | ||||||
| Emergent Biosolutions, Inc.* | 7,300 | 118,844 | ||||||
| Enzon Pharmaceuticals, Inc.* | 26,092 | 276,053 | ||||||
| Exelixis, Inc.* | 46,340 | 267,845 | ||||||
| Genomic Health, Inc.* (a) | 6,100 | 97,722 | ||||||
| Geron Corp.* (a) | 41,717 | 243,210 | ||||||
| GTx, Inc.* (a) | 9,200 | 30,176 | ||||||
| Halozyme Therapeutics, Inc.* | 28,000 | 238,560 | ||||||
| Hemispherx Biopharma, Inc.* (a) | 50,100 | 38,327 | ||||||
| Human Genome Sciences, Inc.* | 80,865 | 2,239,152 | ||||||
| Idenix Pharmaceuticals, Inc.* | 10,915 | 50,427 | ||||||
| Idera Pharmaceuticals, Inc.* | 9,400 | 58,844 | ||||||
| ImmunoGen, Inc.* (a) | 25,000 | 247,750 | ||||||
| Immunomedics, Inc.* (a) | 32,200 | 112,700 | ||||||
| Incyte Corp Ltd.* | 39,729 | 533,163 | ||||||
| Infinity Pharmaceuticals, Inc.* (a) | 7,200 | 49,680 | ||||||
| Insmed, Inc.* | 58,600 | 62,116 | ||||||
| InterMune, Inc.* | 18,683 | 795,148 | ||||||
| Ironwood Pharmaceuticals, Inc.* | 8,411 | 108,670 | ||||||
| Isis Pharmaceuticals, Inc.* | 40,380 | 434,085 | ||||||
| Lexicon Pharmaceuticals, Inc.* | 70,290 | 113,167 | ||||||
| Ligand Pharmaceuticals, Inc., Class B* | 48,300 | 88,872 | ||||||
| MannKind Corp.* (a) | 26,900 | 186,955 | ||||||
| Martek Biosciences Corp.* | 15,005 | 330,560 | ||||||
| Maxygen, Inc.* | 14,209 | 91,080 | ||||||
| Medivation, Inc.* (a) | 12,500 | 139,500 | ||||||
| Metabolix, Inc.* | 8,600 | 107,242 | ||||||
| Micromet, Inc.* (a) | 29,575 | 225,361 | ||||||
| Molecular Insight Pharmaceuticals, Inc.* (a) | 7,500 | 16,575 | ||||||
| Momenta Pharmaceuticals, Inc.* | 17,200 | 238,736 | ||||||
| Myriad Pharmaceuticals, Inc.* | 13,247 | 65,043 | ||||||
| Nabi Biopharmaceuticals* | 22,551 | 126,737 | ||||||
| Nanosphere, Inc.* | 4,600 | 28,980 | ||||||
| Neurocrine Biosciences, Inc.* | 18,235 | 58,534 | ||||||
| NeurogesX, Inc.* (a) | 5,400 | 54,000 | ||||||
| Novavax, Inc.* (a) | 32,100 | 90,843 | ||||||
| NPS Pharmaceuticals, Inc.* | 20,900 | 145,673 | ||||||
| Omeros Corp.* (a) | 1,100 | 6,490 | ||||||
| OncoGenex Pharmaceutical, Inc.* (a) | 2,700 | 59,400 | ||||||
| Onyx Pharmaceuticals, Inc.* | 28,010 | 808,649 | ||||||
| Opko Health, Inc.* | 20,300 | 43,848 | ||||||
| Orexigen Therapeutics, Inc.* | 11,800 | 80,004 | ||||||
| Osiris Therapeutics, Inc.* (a) | 7,100 | 53,037 | ||||||
| OXiGENE, Inc.* (a) | 14,400 | 15,408 | ||||||
| PDL BioPharma, Inc. | 55,400 | 322,428 | ||||||
| Pharmasset, Inc.* | 9,200 | 298,080 | ||||||
| Poniard Pharmaceuticals, Inc.* (a) | 17,600 | 22,528 | ||||||
| Progenics Pharmaceuticals, Inc.* | 11,800 | 75,992 | ||||||
| Protalix BioTherapeutics, Inc.* (a) | 15,750 | 106,628 | ||||||
| Regeneron Pharmaceuticals, Inc.* | 27,477 | 701,488 | ||||||
| Repligen Corp.* | 13,200 | 46,332 | ||||||
| Rigel Pharmaceuticals, Inc.* | 21,774 | 169,184 | ||||||
| Sangamo BioSciences, Inc.* (a) | 17,500 | 107,800 | ||||||
| Savient Pharmaceuticals, Inc.* | 30,652 | 444,454 | ||||||
| SciClone Pharmaceuticals, Inc.* (a) | 19,800 | 82,764 | ||||||
| Seattle Genetics, Inc.* | 35,400 | 446,040 | ||||||
| SIGA Technologies, Inc.* (a) | 15,500 | 106,485 | ||||||
| Spectrum Pharmaceuticals, Inc.* (a) | 21,900 | 113,004 | ||||||
| StemCells, Inc.* (a) | 63,300 | 72,795 | ||||||
| Synta Pharmaceuticals Corp.* | 7,200 | 29,232 | ||||||
| Theravance, Inc.* | 30,683 | 514,554 | ||||||
| Vanda Pharmaceuticals, Inc.* | 12,100 | 101,277 | ||||||
| Vical, Inc.* (a) | 20,000 | 72,400 | ||||||
| Zymogenetics, Inc.* | 18,454 | 109,617 | ||||||
| 18,197,565 | ||||||||
Building Products 0.6% | ||||||||
| AAON, Inc. | 4,550 | 109,837 | ||||||
| American Woodmark Corp. | 4,435 | 102,493 | ||||||
| Ameron International Corp. | 4,300 | 298,377 | ||||||
| Apogee Enterprises, Inc. | 13,650 | 187,551 | ||||||
| Builders FirstSource, Inc.* (a) | 18,016 | 68,641 | ||||||
| Gibraltar Industries, Inc.* | 11,878 | 178,408 | ||||||
| Griffon Corp.* | 18,324 | 258,368 | ||||||
| Insteel Industries, Inc. | 7,400 | 90,724 | ||||||
| NCI Building Systems, Inc.* | 6,598 | 90,920 | ||||||
| Quanex Building Products Corp. | 16,475 | 313,025 | ||||||
| Simpson Manufacturing Co., Inc. | 16,218 | 551,250 | ||||||
| Trex Co., Inc.* (a) | 6,800 | 166,532 | ||||||
| Universal Forest Products, Inc. | 8,406 | 353,472 | ||||||
| 2,769,598 | ||||||||
Capital Markets 2.5% | ||||||||
| American Capital Ltd.* | 125,800 | 772,412 | ||||||
| Apollo Investment Corp. | 76,382 | 928,805 | ||||||
| Ares Capital Corp. | 81,736 | 1,296,333 | ||||||
| Artio Global Investors, Inc. | 13,100 | 299,728 | ||||||
| BGC Partners, Inc., Class A | 20,711 | 135,036 | ||||||
| BlackRock Kelso Capital Corp. | 5,486 | 58,206 | ||||||
| Broadpoint Gleacher Securities, Inc.* (a) | 21,000 | 89,880 | ||||||
| Calamos Asset Management, Inc., Class A | 8,400 | 104,580 | ||||||
| Capital Southwest Corp. | 1,315 | 123,676 | ||||||
| Cohen & Steers, Inc. (a) | 7,550 | 204,379 | ||||||
| Cowen Group, Inc., Class A* | 7,200 | 38,880 | ||||||
| Diamond Hill Investment Group, Inc. | 900 | 70,236 | ||||||
| Duff & Phelps Corp., Class A | 7,400 | 116,180 | ||||||
| E*Trade Financial Corp.* | 705,600 | 1,185,408 | ||||||
| Epoch Holding Corp. | 4,800 | 62,016 | ||||||
2010 Semiannual Report 113
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Capital Markets (continued) | ||||||||
| Evercore Partners, Inc., Class A | 6,000 | $ | 215,040 | |||||
| FBR Capital Markets Corp.* | 6,400 | 30,272 | ||||||
| Fifth Street Finance Corp. | 16,400 | 209,100 | ||||||
| GAMCO Investors, Inc., Class A | 3,168 | 145,760 | ||||||
| GFI Group, Inc. | 28,540 | 196,926 | ||||||
| Gladstone Capital Corp. | 9,028 | 121,156 | ||||||
| Gladstone Investment Corp. | 9,300 | 60,543 | ||||||
| Harris & Harris Group, Inc.* | 11,100 | 53,835 | ||||||
| Hercules Technology Growth Capital, Inc. | 15,039 | 163,023 | ||||||
| International Assets Holding Corp.* | 5,923 | 95,775 | ||||||
| JMP Group, Inc. | 7,200 | 55,728 | ||||||
| Kayne Anderson Energy Development Co. | 5,500 | 88,935 | ||||||
| KBW, Inc.* | 15,100 | 452,245 | ||||||
| Knight Capital Group, Inc., Class A* | 42,475 | 660,486 | ||||||
| Kohlberg Capital Corp. (a) | 7,600 | 42,940 | ||||||
| LaBranche & Co., Inc.* | 18,847 | 93,104 | ||||||
| Main Street Capital Corp. (a) | 3,500 | 55,440 | ||||||
| MCG Capital Corp.* | 30,098 | 199,550 | ||||||
| MF Global Holdings Ltd.* | 42,200 | 389,084 | ||||||
| MVC Capital, Inc. | 9,500 | 134,235 | ||||||
| NGP Capital Resources Co. | 9,263 | 70,862 | ||||||
| Oppenheimer Holdings, Inc., Class A | 4,400 | 127,908 | ||||||
| optionsXpress Holdings, Inc.* | 18,500 | 328,375 | ||||||
| PennantPark Investment Corp. | 13,019 | 142,428 | ||||||
| Penson Worldwide, Inc.* (a) | 9,100 | 85,540 | ||||||
| Piper Jaffray Cos.* | 9,079 | 357,349 | ||||||
| Prospect Capital Corp. (a) | 29,700 | 345,411 | ||||||
| Pzena Investment Management, Inc., Class A* | 2,300 | 17,710 | ||||||
| Riskmetrics Group, Inc.* | 9,200 | 206,448 | ||||||
| Safeguard Scientifics, Inc.* | 7,883 | 108,470 | ||||||
| Sanders Morris Harris Group, Inc. | 8,153 | 48,673 | ||||||
| Solar Capital Ltd. (a) | 1,500 | 34,935 | ||||||
| Stifel Financial Corp.* | 13,049 | 748,099 | ||||||
| SWS Group, Inc. | 12,425 | 137,545 | ||||||
| Teton Advisors, Inc., Class A | 45 | 475 | ||||||
| Thomas Weisel Partners Group, Inc.* | 8,630 | 67,745 | ||||||
| TICC Capital Corp. | 14,800 | 105,376 | ||||||
| TradeStation Group, Inc.* | 17,500 | 146,300 | ||||||
| Triangle Capital Corp. (a) | 5,000 | 75,300 | ||||||
| US Global Investors, Inc., Class A (a) | 7,000 | 63,280 | ||||||
| Virtus Investment Partners, Inc.* | 2,783 | 67,432 | ||||||
| Westwood Holdings Group, Inc. | 2,200 | 84,700 | ||||||
| 12,319,293 | ||||||||
Chemicals 2.2% | ||||||||
| A. Schulman, Inc. | 10,308 | 268,111 | ||||||
| American Vanguard Corp. | 8,133 | 65,877 | ||||||
| Ampal American Israel, Class A* (a) | 8,400 | 18,984 | ||||||
| Arch Chemicals, Inc. | 11,150 | 379,211 | ||||||
| Balchem Corp. | 12,997 | 337,142 | ||||||
| Calgon Carbon Corp.* | 25,448 | 394,444 | ||||||
| China Green Agriculture, Inc.* (a) | 3,800 | 48,184 | ||||||
| Ferro Corp.* | 37,417 | 408,594 | ||||||
| H.B. Fuller Co. | 20,600 | 483,070 | ||||||
| Hawkins, Inc. (a) | 3,900 | 104,598 | ||||||
| ICO, Inc. | 12,300 | 105,411 | ||||||
| Innophos Holdings, Inc. | 7,600 | 216,524 | ||||||
| Innospec, Inc.* | 10,344 | 137,679 | ||||||
| Koppers Holdings, Inc. | 8,600 | 242,262 | ||||||
| Kraton Performance Polymers, Inc.* | 4,907 | 93,037 | ||||||
| Landec Corp.* | 11,700 | 71,721 | ||||||
| LSB Industries, Inc.* | 7,700 | 136,752 | ||||||
| Minerals Technologies, Inc. | 7,935 | 457,849 | ||||||
| NewMarket Corp. | 4,675 | 514,250 | ||||||
| NL Industries, Inc. | 2,928 | 24,859 | ||||||
| Olin Corp. | 35,698 | 749,658 | ||||||
| OM Group, Inc.* | 14,000 | 528,500 | ||||||
| Omnova Solutions, Inc.* | 17,400 | 133,110 | ||||||
| PolyOne Corp.* | 42,588 | 481,670 | ||||||
| Quaker Chemical Corp. | 4,700 | 147,909 | ||||||
| Rockwood Holdings, Inc.* | 21,200 | 634,728 | ||||||
| Sensient Technologies Corp. | 20,854 | 657,527 | ||||||
| ShengdaTech, Inc.* (a) | 12,400 | 85,436 | ||||||
| Solutia, Inc.* | 51,900 | 913,440 | ||||||
| Spartech Corp.* | 13,388 | 190,645 | ||||||
| Stepan Co. | 3,200 | 242,400 | ||||||
| STR Holdings, Inc.* | 4,600 | 106,076 | ||||||
| W.R. Grace & Co.* | 31,500 | 910,035 | ||||||
| Westlake Chemical Corp. | 8,400 | 235,872 | ||||||
| Zep, Inc. | 10,213 | 188,328 | ||||||
| Zoltek Cos., Inc.* (a) | 12,100 | 119,064 | ||||||
| 10,832,957 | ||||||||
Commercial Banks 6.2% | ||||||||
| 1st Source Corp. | 6,340 | 121,284 | ||||||
| Alliance Financial Corp. | 1,700 | 50,949 | ||||||
| American National Bankshares, Inc. | 2,600 | 56,446 | ||||||
| Ameris Bancorp | 5,961 | 66,346 | ||||||
| Ames National Corp. | 2,700 | 51,651 | ||||||
| Arrow Financial Corp. | 4,120 | 114,536 | ||||||
| Auburn National Bancorp, Inc. (a) | 1,300 | 26,052 | ||||||
| Bancfirst Corp. | 2,600 | 114,764 | ||||||
| Banco Latinoamericano de Comercio Exterior SA, Class E | 11,700 | 165,672 | ||||||
| Bancorp Rhode Island, Inc. | 1,600 | 45,872 | ||||||
| Bancorp, Inc. (The)* | 6,800 | 60,316 | ||||||
| Bank of Kentucky Financial Corp. (The) (a) | 1,600 | 30,688 | ||||||
| Bank of Marin Bancorp | 2,500 | 83,800 | ||||||
| Bank of the Ozarks, Inc. | 6,516 | 250,671 | ||||||
| Banner Corp. (a) | 12,487 | 70,801 | ||||||
| Bar Harbor Bankshares | 1,500 | 44,100 | ||||||
| Boston Private Financial Holdings, Inc. | 31,965 | 253,482 | ||||||
| Bridge Bancorp, Inc. (a) | 3,000 | 69,990 | ||||||
| Bryn Mawr Bank Corp. (a) | 2,900 | 53,273 | ||||||
114 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| Camden National Corp. | 3,300 | $ | 117,909 | |||||
| Cape Bancorp, Inc.* | 4,800 | 34,368 | ||||||
| Capital City Bank Group, Inc. (a) | 5,137 | 90,360 | ||||||
| Cardinal Financial Corp. | 12,400 | 135,780 | ||||||
| Cathay General Bancorp | 33,113 | 409,608 | ||||||
| Center Bancorp, Inc. (a) | 5,047 | 41,991 | ||||||
| Centerstate Banks, Inc. | 7,400 | 89,022 | ||||||
| Central Pacific Financial Corp.* | 4,105 | 8,949 | ||||||
| Century Bancorp, Inc., Class A | 1,500 | 29,025 | ||||||
| Chemical Financial Corp. | 8,871 | 210,243 | ||||||
| Chicopee Bancorp, Inc.* | 2,500 | 31,825 | ||||||
| Citizens & Northern Corp. | 4,000 | 51,880 | ||||||
| Citizens Holding Co. (a) | 1,600 | 40,416 | ||||||
| Citizens Republic Bancorp, Inc.* | 156,501 | 195,626 | ||||||
| City Holding Co. | 7,762 | 271,981 | ||||||
| CNB Financial Corp. | 3,500 | 54,250 | ||||||
| CoBiz Financial, Inc. | 10,174 | 72,642 | ||||||
| Columbia Banking System, Inc. | 13,309 | 299,186 | ||||||
| Community Bank System, Inc. | 13,909 | 343,135 | ||||||
| Community Trust Bancorp, Inc. | 6,711 | 201,464 | ||||||
| CVB Financial Corp. (a) | 39,740 | 437,537 | ||||||
| Danvers Bancorp, Inc. | 8,100 | 132,435 | ||||||
| Eagle Bancorp, Inc.* (a) | 4,900 | 61,740 | ||||||
| East West Bancorp, Inc. | 65,056 | 1,274,447 | ||||||
| Enterprise Bancorp, Inc. (a) | 1,900 | 23,617 | ||||||
| Enterprise Financial Services Corp. (a) | 4,800 | 50,448 | ||||||
| Farmers Capital Bank Corp. | 2,800 | 23,604 | ||||||
| Financial Institutions, Inc. | 4,800 | 77,184 | ||||||
| First Bancorp, Inc. | 3,800 | 60,382 | ||||||
| First Bancorp, North Carolina | 6,064 | 98,904 | ||||||
| First Bancorp, Puerto Rico (a) | 40,410 | 85,669 | ||||||
| First Busey Corp. (a) | 17,650 | 89,133 | ||||||
| First California Financial Group, Inc.* | 3,200 | 10,560 | ||||||
| First Commonwealth Financial Corp. | 36,266 | 237,542 | ||||||
| First Community Bancshares, Inc. | 5,220 | 86,913 | ||||||
| First Financial Bancorp | 24,546 | 469,074 | ||||||
| First Financial Bankshares, Inc. | 9,018 | 482,283 | ||||||
| First Financial Corp. | 5,494 | 160,150 | ||||||
| First Merchants Corp. | 9,255 | 80,889 | ||||||
| First Midwest Bancorp, Inc. | 31,452 | 478,070 | ||||||
| First of Long Island Corp. (The) | 2,200 | 56,628 | ||||||
| First South Bancorp, Inc. (a) | 3,360 | 46,838 | ||||||
| FirstMerit Corp. | 37,610 | 883,835 | ||||||
| FNB Corp. | 47,823 | 445,710 | ||||||
| German American Bancorp, Inc. (a) | 5,500 | 87,505 | ||||||
| Glacier Bancorp, Inc. | 31,557 | 583,489 | ||||||
| Great Southern Bancorp, Inc. (a) | 4,700 | 114,633 | ||||||
| Guaranty Bancorp* | 22,900 | 35,953 | ||||||
| Hampton Roads Bankshares, Inc. (a) | 7,900 | 22,831 | ||||||
| Hancock Holding Co. | 12,092 | 494,321 | ||||||
| Heartland Financial USA, Inc. (a) | 5,550 | 106,061 | ||||||
| Heritage Financial Corp.* | 2,600 | 39,806 | ||||||
| Home Bancorp, Inc.* | 3,600 | 49,932 | ||||||
| Home Bancshares, Inc. | 6,856 | 192,791 | ||||||
| IBERIABANK Corp. | 11,735 | 723,345 | ||||||
| Independent Bank Corp. | 8,910 | 231,125 | ||||||
| International Bancshares Corp. | 22,220 | 537,057 | ||||||
| Investors Bancorp, Inc.* | 19,800 | 275,418 | ||||||
| Lakeland Bancorp, Inc. | 8,436 | 88,578 | ||||||
| Lakeland Financial Corp. | 7,100 | 148,106 | ||||||
| MainSource Financial Group, Inc. | 8,602 | 69,590 | ||||||
| MB Financial, Inc. | 21,581 | 528,735 | ||||||
| Merchants Bancshares, Inc. | 1,900 | 44,251 | ||||||
| Metro Bancorp, Inc.* | 4,500 | 61,065 | ||||||
| MidSouth Bancorp, Inc. | 2,300 | 36,915 | ||||||
| Nara Bancorp, Inc.* | 14,454 | 130,086 | ||||||
| National Bankshares, Inc. | 3,000 | 81,270 | ||||||
| National Penn Bancshares, Inc. | 55,071 | 403,120 | ||||||
| NBT Bancorp, Inc. | 14,974 | 366,414 | ||||||
| Northfield Bancorp, Inc. (a) | 8,200 | 121,032 | ||||||
| Northrim BanCorp, Inc. | 2,500 | 43,150 | ||||||
| Norwood Financial Corp. | 1,100 | 30,514 | ||||||
| Ohio Valley Banc Corp. (a) | 1,600 | 33,344 | ||||||
| Old National Bancorp | 40,340 | 540,959 | ||||||
| Old Point Financial Corp. (a) | 1,300 | 18,863 | ||||||
| Old Second Bancorp, Inc. (a) | 5,984 | 34,229 | ||||||
| OmniAmerican Bancorp, Inc.* | 5,224 | 61,643 | ||||||
| Oriental Financial Group, Inc. | 14,473 | 241,989 | ||||||
| Orrstown Financial Services, Inc. | 2,400 | 61,392 | ||||||
| Pacific Capital Bancorp NA* (a) | 31,211 | 54,307 | ||||||
| Pacific Continental Corp. | 6,300 | 73,017 | ||||||
| PacWest Bancorp | 12,717 | 305,335 | ||||||
| Park National Corp. (a) | 4,841 | 331,609 | ||||||
| Peapack Gladstone Financial Corp. | 3,880 | 53,932 | ||||||
| Penns Woods Bancorp, Inc. | 1,900 | 60,895 | ||||||
| Peoples Bancorp, Inc. | 4,535 | 78,637 | ||||||
| Peoples Financial Corp. | 2,800 | 44,324 | ||||||
| Pinnacle Financial Partners, Inc.* | 14,500 | 221,560 | ||||||
| Porter Bancorp, Inc. | 945 | 13,372 | ||||||
| PremierWest Bancorp* | 34,744 | 33,007 | ||||||
| PrivateBancorp, Inc. | 24,402 | 349,437 | ||||||
| Prosperity Bancshares, Inc. | 20,970 | 822,443 | ||||||
| Renasant Corp. | 9,193 | 151,960 | ||||||
| Republic Bancorp, Inc., Class A | 4,068 | 98,242 | ||||||
| Republic First Bancorp, Inc.* (a) | 4,000 | 14,920 | ||||||
| S&T Bancorp, Inc. (a) | 10,301 | 247,739 | ||||||
| Sandy Spring Bancorp, Inc. | 10,568 | 184,412 | ||||||
| Santander BanCorp* | 1,842 | 22,030 | ||||||
| SCBT Financial Corp. | 4,949 | 196,921 | ||||||
| Shore Bancshares, Inc. | 3,500 | 49,315 | ||||||
| Sierra Bancorp (a) | 3,200 | 39,936 | ||||||
| Signature Bank* | 18,513 | 747,555 | ||||||
| Simmons First National Corp., Class A | 7,343 | 206,191 | ||||||
| Smithtown Bancorp, Inc. (a) | 8,638 | 40,167 | ||||||
| South Financial Group, Inc. (The) | 69,800 | 53,746 | ||||||
| Southside Bancshares, Inc. | 5,761 | 124,330 | ||||||
| Southwest Bancorp, Inc. | 6,800 | 99,688 | ||||||
| State Bancorp, Inc. | 6,100 | 60,390 | ||||||
2010 Semiannual Report 115
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Commercial Banks (continued) | ||||||||
| StellarOne Corp. | 9,900 | $ | 147,609 | |||||
| Sterling Bancorp | 8,526 | 91,313 | ||||||
| Sterling Bancshares, Inc. | 39,742 | 233,683 | ||||||
| Sterling Financial Corp.* (a) | 22,324 | 19,431 | ||||||
| Suffolk Bancorp | 4,283 | 132,987 | ||||||
| Sun Bancorp, Inc.* | 6,091 | 32,891 | ||||||
| Susquehanna Bancshares, Inc. | 56,873 | 619,916 | ||||||
| SVB Financial Group* | 18,645 | 917,893 | ||||||
| SY Bancorp, Inc. | 4,730 | 112,290 | ||||||
| Texas Capital Bancshares, Inc.* | 17,020 | 338,698 | ||||||
| Tompkins Financial Corp. | 4,248 | 172,554 | ||||||
| Tower Bancorp, Inc. | 2,300 | 59,202 | ||||||
| TowneBank (a) | 9,200 | 147,476 | ||||||
| Trico Bancshares | 6,024 | 114,697 | ||||||
| Trustmark Corp. | 29,120 | 712,858 | ||||||
| UMB Financial Corp. | 13,870 | 584,204 | ||||||
| Umpqua Holdings Corp. | 40,478 | 604,741 | ||||||
| Union First Market Bankshares Corp. | 11,379 | 190,940 | ||||||
| United Bankshares, Inc. (a) | 17,765 | 515,896 | ||||||
| United Community Banks, Inc.* | 39,377 | 229,962 | ||||||
| United Security Bancshares, Inc. (a) | 3,000 | 46,590 | ||||||
| Univest Corp of Pennsylvania | 6,280 | 122,900 | ||||||
| Washington Banking Co. (a) | 7,000 | 100,730 | ||||||
| Washington Trust Bancorp, Inc. | 6,140 | 111,195 | ||||||
| Webster Financial Corp. | 31,200 | 646,464 | ||||||
| WesBanco, Inc. | 9,600 | 185,088 | ||||||
| West Bancorp, Inc.* | 7,300 | 59,349 | ||||||
| Westamerica Bancorp | 13,312 | 782,346 | ||||||
| Western Alliance Bancorp* | 22,500 | 195,750 | ||||||
| Wilber Corporation (The) | 3,200 | 21,792 | ||||||
| Wilshire Bancorp, Inc. | 8,796 | 95,525 | ||||||
| Wintrust Financial Corp. | 13,228 | 493,404 | ||||||
| Yadkin Valley Financial Corp. | 7,100 | 32,518 | ||||||
| 30,605,766 | ||||||||
Commercial Services & Supplies 2.2% | ||||||||
| ABM Industries, Inc. | 20,078 | 431,476 | ||||||
| ACCO Brands Corp.* | 23,700 | 216,381 | ||||||
| American Reprographics Co.* | 16,000 | 159,840 | ||||||
| Amrep Corp.* | 600 | 8,700 | ||||||
| APAC Customer Services, Inc.* | 10,600 | 60,950 | ||||||
| ATC Technology Corp.* | 8,936 | 182,652 | ||||||
| Bowne & Co., Inc. | 15,695 | 175,470 | ||||||
| Cenveo, Inc.* | 22,150 | 189,825 | ||||||
| Clean Harbors, Inc.* | 9,900 | 627,957 | ||||||
| Consolidated Graphics, Inc.* | 4,214 | 176,609 | ||||||
| Cornell Cos., Inc.* | 4,600 | 126,500 | ||||||
| Courier Corp. | 4,450 | 76,495 | ||||||
| Deluxe Corp. | 22,300 | 467,631 | ||||||
| EnergySolutions, Inc. | 33,100 | 239,975 | ||||||
| EnerNOC, Inc.* (a) | 6,600 | 191,928 | ||||||
| Ennis, Inc. | 11,000 | 203,390 | ||||||
| Fuel Tech, Inc.* (a) | 9,700 | 72,847 | ||||||
| G&K Services, Inc., Class A | 7,922 | 217,776 | ||||||
| Geo Group, Inc. (The)* | 21,744 | 460,538 | ||||||
| Healthcare Services Group, Inc. | 18,250 | 392,193 | ||||||
| Heritage-Crystal Clean, Inc.* | 800 | 8,216 | ||||||
| Herman Miller, Inc. | 22,900 | 485,938 | ||||||
| HNI Corp. | 19,300 | 599,072 | ||||||
| Innerworkings, Inc.* | 10,000 | 59,800 | ||||||
| Interface, Inc., Class A | 20,655 | 270,167 | ||||||
| Kimball International, Inc., Class B | 13,648 | 109,730 | ||||||
| Knoll, Inc. | 20,900 | 292,182 | ||||||
| M&F Worldwide Corp.* | 4,800 | 147,168 | ||||||
| McGrath Rentcorp | 10,406 | 270,452 | ||||||
| Metalico, Inc.* (a) | 17,000 | 112,200 | ||||||
| Mine Safety Appliances Co. | 11,487 | 337,603 | ||||||
| Mobile Mini, Inc.* | 15,129 | 251,444 | ||||||
| Multi-Color Corp. | 4,550 | 56,921 | ||||||
| North American Galvanizing & Coating, Inc.* | 5,000 | 37,500 | ||||||
| Perma-Fix Environmental Services, Inc.* | 25,900 | 55,426 | ||||||
| Rollins, Inc. | 19,291 | 419,579 | ||||||
| Schawk, Inc. | 6,345 | 120,238 | ||||||
| Standard Parking Corp.* | 3,600 | 60,804 | ||||||
| Standard Register Co. (The) | 7,251 | 37,343 | ||||||
| Steelcase, Inc., Class A | 30,700 | 252,047 | ||||||
| SYKES Enterprises, Inc.* | 15,867 | 360,657 | ||||||
| Team, Inc.* | 8,000 | 139,200 | ||||||
| Tetra Tech, Inc.* | 25,907 | 630,835 | ||||||
| United Stationers, Inc.* | 10,301 | 630,627 | ||||||
| US Ecology, Inc. | 7,700 | 120,120 | ||||||
| Viad Corp. | 8,985 | 210,249 | ||||||
| Waste Services, Inc.* | 6,699 | 75,297 | ||||||
| 10,829,948 | ||||||||
Communications Equipment 2.7% | ||||||||
| Acme Packet, Inc.* | 17,500 | 457,450 | ||||||
| ADC Telecommunications, Inc.* | 40,700 | 326,007 | ||||||
| ADTRAN, Inc. | 25,405 | 680,092 | ||||||
| Anaren, Inc.* | 5,193 | 76,960 | ||||||
| Arris Group, Inc.* | 56,375 | 692,849 | ||||||
| Aruba Networks, Inc.* | 25,700 | 322,792 | ||||||
| Aviat Networks, Inc.* | 28,650 | 186,225 | ||||||
| Bel Fuse, Inc., Class B | 4,349 | 101,854 | ||||||
| BigBand Networks, Inc.* | 20,600 | 67,980 | ||||||
| Black Box Corp. | 7,377 | 230,089 | ||||||
| Blue Coat Systems, Inc.* | 17,990 | 585,215 | ||||||
| Cogo Group, Inc.* | 10,483 | 73,800 | ||||||
| Communications Systems, Inc. | 2,300 | 29,532 | ||||||
| Comtech Telecommunications Corp.* | 13,070 | 408,307 | ||||||
| DG FastChannel, Inc.* | 9,700 | 341,246 | ||||||
| Digi International, Inc.* | 10,400 | 111,384 | ||||||
| Emcore Corp.* (a) | 44,100 | 59,094 | ||||||
| EMS Technologies, Inc.* | 7,800 | 123,942 | ||||||
| Emulex Corp.* | 38,140 | 448,145 | ||||||
| Extreme Networks* | 38,962 | 129,743 | ||||||
116 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Communications Equipment (continued) | ||||||||
| Globecomm Systems, Inc.* | 8,900 | $ | 69,331 | |||||
| Harmonic, Inc.* | 41,884 | 286,487 | ||||||
| Hughes Communications, Inc.* | 3,800 | 106,020 | ||||||
| Infinera Corp.* | 36,200 | 331,230 | ||||||
| InterDigital, Inc.* | 20,050 | 554,783 | ||||||
| Ixia* | 12,736 | 130,544 | ||||||
| KVH Industries, Inc.* | 7,300 | 110,011 | ||||||
| Loral Space & Communications, Inc.* | 4,797 | 206,559 | ||||||
| Netgear, Inc.* | 15,030 | 406,712 | ||||||
| Network Equipment Technologies, Inc.* | 12,000 | 61,560 | ||||||
| Oplink Communications, Inc.* | 8,056 | 121,726 | ||||||
| Opnext, Inc.* | 11,800 | 27,730 | ||||||
| Palm, Inc.* (a) | 73,285 | 425,053 | ||||||
| Parkervision, Inc.* (a) | 12,500 | 23,625 | ||||||
| PC-Tel, Inc.* | 8,000 | 52,080 | ||||||
| Plantronics, Inc. | 20,941 | 695,241 | ||||||
| Polycom, Inc.* | 37,900 | 1,233,645 | ||||||
| Powerwave Technologies, Inc.* (a) | 54,305 | 96,120 | ||||||
| Riverbed Technology, Inc.* | 23,700 | 734,463 | ||||||
| Seachange International, Inc.* | 14,200 | 118,286 | ||||||
| ShoreTel, Inc.* | 18,200 | 119,210 | ||||||
| Sonus Networks, Inc.* | 90,650 | 234,783 | ||||||
| Sycamore Networks, Inc. | 8,691 | 171,995 | ||||||
| Symmetricom, Inc.* | 19,385 | 128,523 | ||||||
| Tekelec* | 30,810 | 558,585 | ||||||
| UTStarcom, Inc.* (a) | 47,325 | 134,876 | ||||||
| ViaSat, Inc.* | 12,723 | 451,030 | ||||||
| 13,042,914 | ||||||||
Computers & Peripherals 0.8% | ||||||||
| 3PAR, Inc.* (a) | 13,500 | 125,955 | ||||||
| ActivIdentity Corp.* | 18,700 | 54,791 | ||||||
| Adaptec, Inc.* | 54,030 | 166,953 | ||||||
| Avid Technology, Inc.* | 12,900 | 188,340 | ||||||
| Compellent Technologies, Inc.* | 8,200 | 103,074 | ||||||
| Cray, Inc.* | 14,300 | 96,668 | ||||||
| Electronics for Imaging, Inc.* | 21,133 | 271,559 | ||||||
| Imation Corp.* | 12,700 | 137,668 | ||||||
| Immersion Corp.* | 12,200 | 68,320 | ||||||
| Intermec, Inc.* | 27,291 | 313,028 | ||||||
| Intevac, Inc.* | 10,600 | 147,552 | ||||||
| Isilon Systems, Inc.* | 10,700 | 138,886 | ||||||
| Netezza Corp.* | 20,100 | 275,169 | ||||||
| Novatel Wireless, Inc.* | 15,304 | 104,832 | ||||||
| Quantum Corp.* | 97,402 | 282,466 | ||||||
| Rimage Corp.* | 3,900 | 68,445 | ||||||
| Silicon Graphics International Corp.* | 14,545 | 143,850 | ||||||
| STEC, Inc.* (a) | 11,000 | 152,790 | ||||||
| Stratasys, Inc.* | 9,500 | 226,480 | ||||||
| Super Micro Computer, Inc.* | 9,900 | 140,382 | ||||||
| Synaptics, Inc.* (a) | 15,535 | 475,682 | ||||||
| 3,682,890 | ||||||||
Construction & Engineering 0.8% | ||||||||
| Argan, Inc.* | 3,200 | 36,352 | ||||||
| Comfort Systems USA, Inc. | 16,475 | 231,968 | ||||||
| Dycom Industries, Inc.* | 17,296 | 183,684 | ||||||
| EMCOR Group, Inc.* | 28,420 | 811,675 | ||||||
| Furmanite Corp.* | 15,800 | 80,580 | ||||||
| Granite Construction, Inc. | 14,905 | 500,957 | ||||||
| Great Lakes Dredge & Dock Corp. | 16,800 | 91,056 | ||||||
| Insituform Technologies, Inc., Class A* | 16,882 | 404,662 | ||||||
| Integrated Electrical Services, Inc.* | 3,200 | 19,936 | ||||||
| Layne Christensen Co.* | 8,240 | 225,611 | ||||||
| MasTec, Inc.* | 22,146 | 277,046 | ||||||
| Michael Baker Corp.* | 3,300 | 116,622 | ||||||
| MYR Group, Inc.* | 7,600 | 136,268 | ||||||
| Northwest Pipe Co.* | 4,100 | 98,892 | ||||||
| Orion Marine Group, Inc.* | 11,700 | 221,832 | ||||||
| Pike Electric Corp.* | 7,300 | 78,475 | ||||||
| Primoris Services Corp. (a) | 3,000 | 23,700 | ||||||
| Sterling Construction Co., Inc.* | 6,300 | 110,250 | ||||||
| Tutor Perini Corp.* | 10,983 | 266,557 | ||||||
| 3,916,123 | ||||||||
Construction Materials 0.1% | ||||||||
| Headwaters, Inc.* | 26,444 | 158,664 | ||||||
| Texas Industries, Inc. | 10,858 | 410,867 | ||||||
| U.S. Concrete, Inc.* (a) | 14,600 | 7,738 | ||||||
| United States Lime & Minerals, Inc.* | 700 | 28,525 | ||||||
| 605,794 | ||||||||
Consumer Finance 0.5% | ||||||||
| Advance America Cash Advance Centers, Inc. | 18,480 | 105,706 | ||||||
| Cardtronics, Inc.* | 6,200 | 86,428 | ||||||
| Cash America International, Inc. | 13,554 | 502,311 | ||||||
| CompuCredit Holdings Corp. (a) | 7,151 | 42,834 | ||||||
| Credit Acceptance Corp.* | 2,468 | 111,307 | ||||||
| Dollar Financial Corp.* | 10,400 | 243,464 | ||||||
| EZCORP, Inc., Class A* | 21,000 | 434,910 | ||||||
| First Cash Financial Services, Inc.* | 10,105 | 222,916 | ||||||
| First Marblehead Corp. (The)* | 27,200 | 95,472 | ||||||
| Nelnet, Inc., Class A | 8,700 | 173,652 | ||||||
| QC Holdings, Inc. | 2,400 | 12,456 | ||||||
| Rewards Network, Inc. | 2,700 | 35,154 | ||||||
| World Acceptance Corp.* (a) | 7,534 | 265,800 | ||||||
| 2,332,410 | ||||||||
Containers & Packaging 0.5% | ||||||||
| AEP Industries, Inc.* | 2,800 | 77,364 | ||||||
| Boise, Inc.* | 12,300 | 84,747 | ||||||
| BWAY Holding Co.* | 3,300 | 65,274 | ||||||
| Graham Packaging Co., Inc.* | 7,314 | 87,987 | ||||||
| Graphic Packaging Holding Co.* | 46,200 | 170,478 | ||||||
| Myers Industries, Inc. | 14,500 | 157,470 | ||||||
2010 Semiannual Report 117
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Containers & Packaging (continued) | ||||||||
| Rock-Tenn Co., Class A | 17,333 | $ | 894,383 | |||||
| Silgan Holdings, Inc. | 12,196 | 735,785 | ||||||
| 2,273,488 | ||||||||
Distributors 0.0%† | ||||||||
| Audiovox Corp., Class A* | 7,588 | 70,644 | ||||||
| Core-Mark Holding Co., Inc.* | 4,100 | 125,132 | ||||||
| 195,776 | ||||||||
Diversified Consumer Services 1.2% | ||||||||
| American Public Education, Inc.* | 8,500 | 359,975 | ||||||
| Bridgepoint Education, Inc.* | 6,500 | 167,115 | ||||||
| Capella Education Co.* | 6,500 | 589,030 | ||||||
| ChinaCast Education Corp.* | 13,000 | 87,490 | ||||||
| Coinstar, Inc.* (a) | 14,038 | 622,726 | ||||||
| Corinthian Colleges, Inc.* (a) | 34,200 | 534,204 | ||||||
| CPI Corp. (a) | 2,100 | 55,713 | ||||||
| Grand Canyon Education, Inc.* | 6,700 | 162,006 | ||||||
| Jackson Hewitt Tax Service, Inc.* (a) | 7,000 | 11,830 | ||||||
| K12, Inc.* (a) | 9,700 | 229,599 | ||||||
| Learning Tree International, Inc.* | 3,600 | 56,916 | ||||||
| Lincoln Educational Services Corp.* | 5,200 | 129,792 | ||||||
| Mac-Gray Corp. | 4,800 | 55,920 | ||||||
| Matthews International Corp., Class A | 12,832 | 449,120 | ||||||
| Nobel Learning Communities, Inc.* | 1,500 | 10,425 | ||||||
| Pre-Paid Legal Services, Inc.* (a) | 3,450 | 153,422 | ||||||
| Princeton Review, Inc.* | 6,400 | 20,032 | ||||||
| Regis Corp. | 26,475 | 506,202 | ||||||
| Sotheby’s | 29,098 | 971,873 | ||||||
| Steiner Leisure Ltd.* | 6,100 | 285,907 | ||||||
| Stewart Enterprises, Inc., Class A | 36,072 | 244,568 | ||||||
| Universal Technical Institute, Inc.* | 9,168 | 219,665 | ||||||
| 5,923,530 | ||||||||
Diversified Financial Services 0.4% | ||||||||
| Asset Acceptance Capital Corp.* | 6,545 | 48,171 | ||||||
| California First National Bancorp (a) | 500 | 6,540 | ||||||
| Compass Diversified Holdings | 10,200 | 148,104 | ||||||
| Encore Capital Group, Inc.* | 5,900 | 135,759 | ||||||
| Life Partners Holdings, Inc. | 2,800 | 64,680 | ||||||
| MarketAxess Holdings, Inc. | 14,000 | 220,080 | ||||||
| Medallion Financial Corp. | 6,400 | 51,200 | ||||||
| NewStar Financial, Inc.* | 10,400 | 79,664 | ||||||
| PHH Corp.* | 22,520 | 510,979 | ||||||
| Pico Holdings, Inc.* | 9,300 | 330,615 | ||||||
| Portfolio Recovery Associates, Inc.* (a) | 7,122 | 473,399 | ||||||
| Primus Guaranty Ltd.* (a) | 9,100 | 41,041 | ||||||
| Resource America, Inc., Class A | 4,505 | 26,625 | ||||||
| 2,136,857 | ||||||||
Diversified Telecommunication Services 0.6% | ||||||||
| AboveNet, Inc.* | 5,500 | 277,970 | ||||||
| Alaska Communications Systems Group, Inc. | 21,900 | 187,464 | ||||||
Atlantic Tele-Network, Inc. | 3,800 | 209,684 | ||||||
| Cbeyond, Inc.* | 11,575 | 178,024 | ||||||
| Cincinnati Bell, Inc.* | 89,679 | 302,218 | ||||||
| Cogent Communications Group, Inc.* | 20,900 | 213,389 | ||||||
| Consolidated Communications Holdings, Inc. | 11,598 | 215,143 | ||||||
| General Communication, Inc., Class A* | 19,548 | 120,220 | ||||||
| Global Crossing Ltd.* | 12,800 | 190,080 | ||||||
| HickoryTech Corp. | 5,300 | 44,891 | ||||||
| inContact, Inc.* | 13,900 | 39,615 | ||||||
| Iowa Telecommunications Services, Inc. | 14,400 | 242,496 | ||||||
| Neutral Tandem, Inc.* | 15,500 | 262,725 | ||||||
| PAETEC Holding Corp.* | 53,500 | 266,430 | ||||||
| Premiere Global Services, Inc.* | 26,675 | 249,945 | ||||||
| SureWest Communications* | 5,900 | 50,740 | ||||||
| 3,051,034 | ||||||||
Electric Utilities 1.1% | ||||||||
| Allete, Inc. | 12,360 | 450,769 | ||||||
| Central Vermont Public Service Corp. | 5,900 | 128,679 | ||||||
| Cleco Corp. | 27,832 | 762,597 | ||||||
| El Paso Electric Co.* | 18,931 | 402,284 | ||||||
| Empire District Electric Co. (The) | 17,476 | 340,957 | ||||||
| IDACORP, Inc. | 21,614 | 779,833 | ||||||
| MGE Energy, Inc. | 9,723 | 357,418 | ||||||
| PNM Resources, Inc. | 40,500 | 550,395 | ||||||
| Portland General Electric Co. | 34,700 | 689,836 | ||||||
| UIL Holdings Corp. | 12,513 | 363,252 | ||||||
| Unisource Energy Corp. | 14,064 | 468,612 | ||||||
| Unitil Corp. | 4,400 | 97,152 | ||||||
| 5,391,784 | ||||||||
Electrical Equipment 2.1% | ||||||||
| A.O. Smith Corp. | 9,209 | 475,461 | ||||||
| Acuity Brands, Inc. | 19,251 | 870,338 | ||||||
| Advanced Battery Technologies, Inc.* (a) | 27,900 | 96,813 | ||||||
| American Superconductor Corp.* (a) | 19,636 | 572,978 | ||||||
| AZZ, Inc. | 5,900 | 239,658 | ||||||
| Baldor Electric Co. | 19,979 | 767,393 | ||||||
| Belden, Inc. | 20,052 | 550,628 | ||||||
| Brady Corp., Class A | 20,589 | 707,438 | ||||||
| Broadwind Energy, Inc.* | 14,400 | 57,024 | ||||||
| Chase Corp. | 2,300 | 30,199 | ||||||
| China BAK Battery, Inc.* (a) | 23,200 | 46,632 | ||||||
| Encore Wire Corp. | 8,646 | 192,028 | ||||||
| Ener1, Inc.* (a) | 20,400 | 84,864 | ||||||
| Energy Conversion Devices, Inc.* (a) | 18,385 | 130,901 | ||||||
| EnerSys* | 18,685 | 483,568 | ||||||
| Evergreen Solar, Inc.* (a) | 82,910 | 92,859 | ||||||
| Franklin Electric Co., Inc. | 9,891 | 346,086 | ||||||
| FuelCell Energy, Inc.* (a) | 32,643 | 89,768 | ||||||
118 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Electrical Equipment (continued) | ||||||||
| Fushi Copperweld, Inc.* | 7,300 | $ | 80,738 | |||||
| Generac Holdings, Inc.* | 8,228 | 124,161 | ||||||
| GrafTech International Ltd.* | 54,416 | 917,454 | ||||||
| GT Solar International, Inc.* (a) | 13,200 | 76,956 | ||||||
| Harbin Electric, Inc.* (a) | 6,000 | 131,460 | ||||||
| II-VI, Inc.* | 10,984 | 393,886 | ||||||
| LaBarge, Inc.* | 5,200 | 64,272 | ||||||
| LSI Industries, Inc. | 8,175 | 57,470 | ||||||
| Microvision, Inc.* (a) | 34,000 | 106,420 | ||||||
| Orion Energy Systems, Inc.* (a) | 9,100 | 48,503 | ||||||
| Polypore International, Inc.* | 9,600 | 170,016 | ||||||
| Powell Industries, Inc.* | 4,083 | 137,107 | ||||||
| PowerSecure International, Inc.* | 7,400 | 83,324 | ||||||
| Preformed Line Products Co. | 1,000 | 30,000 | ||||||
| Regal-Beloit Corp. | 15,536 | 982,963 | ||||||
| Satcon Technology Corp.* | 25,900 | 72,779 | ||||||
| Ultralife Corp.* (a) | 8,200 | 34,358 | ||||||
| Valence Technology, Inc.* (a) | 22,600 | 23,730 | ||||||
| Vicor Corp.* | 8,188 | 123,803 | ||||||
| Woodward Governor Co. | 26,000 | 833,300 | ||||||
| 10,327,336 | ||||||||
Electronic Equipment, Instruments & Components 2.1% | ||||||||
| Agilysys, Inc. | 5,685 | 61,682 | ||||||
| Anixter International, Inc.* | 13,715 | 718,666 | ||||||
| Benchmark Electronics, Inc.* | 27,865 | 602,999 | ||||||
| Brightpoint, Inc.* | 24,060 | 194,645 | ||||||
| Checkpoint Systems, Inc.* | 17,108 | 386,470 | ||||||
| China Security & Surveillance Technology, Inc.* (a) | 21,200 | 126,140 | ||||||
| Cogent, Inc.* | 20,900 | 216,315 | ||||||
| Cognex Corp. | 17,379 | 363,395 | ||||||
| Coherent, Inc.* | 10,300 | 386,971 | ||||||
| Comverge, Inc.* (a) | 9,500 | 107,730 | ||||||
| CPI International, Inc.* | 3,200 | 42,976 | ||||||
| CTS Corp. | 14,337 | 150,539 | ||||||
| Daktronics, Inc. (a) | 14,672 | 122,951 | ||||||
| DDi Corp.* | 5,500 | 47,080 | ||||||
| DTS, Inc.* | 8,412 | 279,615 | ||||||
| Echelon Corp.* (a) | 13,787 | 130,287 | ||||||
| Electro Rent Corp. | 7,900 | 112,891 | ||||||
| Electro Scientific Industries, Inc.* | 12,054 | 165,984 | ||||||
| FARO Technologies, Inc.* | 7,200 | 181,512 | ||||||
| ICx Technologies, Inc.* (a) | 6,900 | 48,645 | ||||||
| Insight Enterprises, Inc.* | 20,262 | 304,538 | ||||||
| IPG Photonics Corp.* | 10,600 | 185,606 | ||||||
| L-1 Identity Solutions, Inc.* | 34,848 | 302,132 | ||||||
| Littelfuse, Inc.* | 9,566 | 403,972 | ||||||
| Maxwell Technologies, Inc.* | 9,600 | 138,528 | ||||||
| Measurement Specialties, Inc.* | 6,331 | 104,272 | ||||||
| Mercury Computer Systems, Inc.* | 9,953 | 127,996 | ||||||
| Methode Electronics, Inc. | 17,800 | 197,580 | ||||||
| MTS Systems Corp. | 7,156 | 213,750 | ||||||
| Multi-Fineline Electronix, Inc.* | 4,100 | 106,272 | ||||||
| Newport Corp.* | 15,845 | 187,446 | ||||||
| OSI Systems, Inc.* | 7,476 | 194,675 | ||||||
| PAR Technology Corp.* | 4,300 | 30,143 | ||||||
| Park Electrochemical Corp. | 8,963 | 270,772 | ||||||
| PC Connection, Inc.* | 4,100 | 28,208 | ||||||
| PC Mall, Inc.* | 4,800 | 24,912 | ||||||
| Plexus Corp.* | 16,904 | 626,293 | ||||||
| Power-One, Inc.* (a) | 32,900 | 258,594 | ||||||
| RadiSys Corp.* | 10,260 | 100,445 | ||||||
| RAE Systems, Inc.* | 22,000 | 17,382 | ||||||
| Rofin-Sinar Technologies, Inc.* | 12,784 | 339,543 | ||||||
| Rogers Corp.* | 6,653 | 222,676 | ||||||
| ScanSource, Inc.* | 11,120 | 309,803 | ||||||
| Smart Modular Technologies (WWH), Inc.* | 15,600 | 109,512 | ||||||
| Spectrum Control, Inc.* | 5,100 | 70,890 | ||||||
| SYNNEX Corp.* | 9,200 | 252,264 | ||||||
| Technitrol, Inc. | 17,731 | 95,747 | ||||||
| TTM Technologies, Inc.* | 18,971 | 206,025 | ||||||
| Universal Display Corp.* (a) | 12,500 | 166,875 | ||||||
| X-Rite, Inc.* (a) | 14,400 | 47,520 | ||||||
| Zygo Corp.* | 5,900 | 55,755 | ||||||
| 10,147,619 | ||||||||
Energy Equipment & Services 1.6% | ||||||||
| Allis-Chalmers Energy, Inc.* | 22,900 | 92,287 | ||||||
| Basic Energy Services, Inc.* | 10,100 | 103,121 | ||||||
| Bolt Technology Corp.* | 3,700 | 40,959 | ||||||
| Boots & Coots, Inc.* | 33,400 | 97,862 | ||||||
| Bristow Group, Inc.* | 15,409 | 596,482 | ||||||
| Bronco Drilling Co., Inc.* | 12,800 | 61,184 | ||||||
| Cal Dive International, Inc.* | 19,812 | 129,967 | ||||||
| CARBO Ceramics, Inc. | 8,399 | 615,227 | ||||||
| Complete Production Services, Inc.* | 25,400 | 383,286 | ||||||
| Dawson Geophysical Co.* | 4,100 | 120,089 | ||||||
| Dril-Quip, Inc.* | 13,296 | 770,237 | ||||||
| ENGlobal Corp.* | 7,200 | 25,560 | ||||||
| Geokinetics, Inc.* | 2,300 | 20,102 | ||||||
| Global Industries Ltd.* | 43,400 | 290,780 | ||||||
| Gulf Island Fabrication, Inc. | 5,187 | 124,333 | ||||||
| GulfMark Offshore, Inc., Class A* | 9,540 | 328,844 | ||||||
| Hercules Offshore, Inc.* | 53,800 | 213,048 | ||||||
| Hornbeck Offshore Services, Inc.* | 11,010 | 269,415 | ||||||
| ION Geophysical Corp.* | 44,986 | 270,366 | ||||||
| Key Energy Services, Inc.* | 56,400 | 612,504 | ||||||
| Lufkin Industries, Inc. | 6,464 | 550,280 | ||||||
| Matrix Service Co.* | 11,100 | 117,993 | ||||||
| Natural Gas Services Group, Inc.* | 5,500 | 98,615 | ||||||
| Newpark Resources, Inc.* | 39,184 | 261,749 | ||||||
| OYO Geospace Corp.* | 1,700 | 84,490 | ||||||
| Parker Drilling Co.* | 51,212 | 283,202 | ||||||
| PHI, Inc., Non-Voting Shares* | 6,000 | 124,740 | ||||||
| Pioneer Drilling Co.* | 20,245 | 148,598 | ||||||
| RPC, Inc. | 12,551 | 171,321 | ||||||
2010 Semiannual Report 119
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Energy Equipment & Services (continued) | ||||||||
| SulphCo, Inc.* (a) | 21,400 | $ | 8,201 | |||||
| Superior Well Services, Inc.* | 8,700 | 126,150 | ||||||
| T-3 Energy Services, Inc.* | 5,300 | 157,675 | ||||||
| TETRA Technologies, Inc.* | 32,100 | 394,509 | ||||||
| TGC Industries, Inc.* | 5,460 | 22,495 | ||||||
| Union Drilling, Inc.* | 4,600 | 30,498 | ||||||
| Vantage Drilling Co.* | 25,200 | 45,360 | ||||||
| Willbros Group, Inc.* | 16,800 | 210,840 | ||||||
| 8,002,369 | ||||||||
Food & Staples Retailing 0.8% | ||||||||
| Andersons, Inc. (The) | 8,530 | 308,274 | ||||||
| Arden Group, Inc., Class A | 368 | 37,352 | ||||||
| Casey’s General Stores, Inc. | 23,180 | 895,443 | ||||||
| Diedrich Coffee, Inc.* | 1,100 | 38,236 | ||||||
| Great Atlantic & Pacific Tea Co.* (a) | 14,356 | 115,566 | ||||||
| Ingles Markets, Inc., Class A | 5,452 | 87,396 | ||||||
| Nash Finch Co. | 5,635 | 197,338 | ||||||
| Pantry, Inc. (The)* | 11,175 | 176,788 | ||||||
| PriceSmart, Inc. | 7,400 | 184,112 | ||||||
| Ruddick Corp. | 19,753 | 698,071 | ||||||
| Spartan Stores, Inc. | 11,300 | 170,517 | ||||||
| Susser Holdings Corp.* | 3,300 | 35,541 | ||||||
| United Natural Foods, Inc.* | 18,672 | 573,044 | ||||||
| Village Super Market, Inc., Class A | 2,600 | 69,966 | ||||||
| Weis Markets, Inc. | 4,883 | 182,038 | ||||||
| Winn-Dixie Stores, Inc.* | 23,200 | 292,552 | ||||||
| 4,062,234 | ||||||||
Food Products 1.3% | ||||||||
| AgFeed Industries, Inc.* (a) | 13,000 | 55,900 | ||||||
| Alico, Inc. (a) | 1,400 | 37,352 | ||||||
| American Dairy, Inc.* (a) | 4,400 | 83,600 | ||||||
| American Italian Pasta Co., Class A* | 9,800 | 384,454 | ||||||
| B&G Foods, Inc., Class A | 20,899 | 215,887 | ||||||
| Calavo Growers, Inc. (a) | 4,400 | 76,296 | ||||||
| Cal-Maine Foods, Inc. (a) | 5,600 | 186,928 | ||||||
| Chiquita Brands International, Inc.* | 20,675 | 310,952 | ||||||
| Darling International, Inc.* | 35,000 | 332,150 | ||||||
| Diamond Foods, Inc. | 9,568 | 408,649 | ||||||
| Dole Food Co., Inc.* (a) | 14,000 | 158,480 | ||||||
| Farmer Bros Co. | 2,700 | 50,517 | ||||||
| Fresh Del Monte Produce, Inc.* | 17,200 | 358,964 | ||||||
| Griffin Land & Nurseries, Inc. | 1,300 | 38,025 | ||||||
| Hain Celestial Group, Inc. (The)* | 19,193 | 379,637 | ||||||
| Harbinger Group, Inc.* | 3,500 | 23,415 | ||||||
| HQ Sustainable Maritime Industries, Inc.* | 6,800 | 38,692 | ||||||
| Imperial Sugar Co. | 6,200 | 99,386 | ||||||
| J&J Snack Foods Corp. | 6,184 | 288,113 | ||||||
| Lancaster Colony Corp. | 8,102 | 445,367 | ||||||
| Lance, Inc. | 11,716 | 271,577 | ||||||
| Lifeway Foods, Inc.* (a) | 2,000 | 22,040 | ||||||
| Omega Protein Corp.* | 8,000 | 42,800 | ||||||
| Overhill Farms, Inc.* | 6,700 | 40,602 | ||||||
| Sanderson Farms, Inc. | 9,259 | 524,707 | ||||||
| Seneca Foods Corp., Class A* | 4,200 | 137,928 | ||||||
| Smart Balance, Inc.* | 27,600 | 183,540 | ||||||
| Synutra International, Inc.* (a) | 8,400 | 196,896 | ||||||
| Tootsie Roll Industries, Inc. (a) | 10,893 | 289,754 | ||||||
| TreeHouse Foods, Inc.* | 14,420 | 609,822 | ||||||
| Zhongpin, Inc.* | 11,100 | 140,748 | ||||||
| 6,433,178 | ||||||||
Gas Utilities 1.1% | ||||||||
| Chesapeake Utilities Corp. | 3,872 | 116,625 | ||||||
| Laclede Group, Inc. (The) | 9,700 | 330,576 | ||||||
| New Jersey Resources Corp. | 19,237 | 725,812 | ||||||
| Nicor, Inc. | 20,087 | 873,985 | ||||||
| Northwest Natural Gas Co. | 11,316 | 536,265 | ||||||
| Piedmont Natural Gas Co., Inc. | 33,400 | 918,500 | ||||||
| South Jersey Industries, Inc. | 13,704 | 618,188 | ||||||
| Southwest Gas Corp. | 19,086 | 593,575 | ||||||
| WGL Holdings, Inc. | 22,895 | 818,267 | ||||||
| 5,531,793 | ||||||||
Health Care Equipment & Supplies 3.4% | ||||||||
| Abaxis, Inc.* | 9,000 | 233,190 | ||||||
| ABIOMED, Inc.* | 13,211 | 127,354 | ||||||
| Accuray, Inc.* | 16,900 | 108,836 | ||||||
| AGA Medical Holdings, Inc.* (a) | 5,000 | 80,400 | ||||||
| Align Technology, Inc.* | 24,992 | 424,364 | ||||||
| Alphatec Holdings, Inc.* | 12,000 | 80,160 | ||||||
| American Medical Systems Holdings, Inc.* | 33,716 | 604,191 | ||||||
| Analogic Corp. | 6,084 | 290,937 | ||||||
| AngioDynamics, Inc.* | 10,600 | 169,600 | ||||||
| Atrion Corp. | 600 | 85,068 | ||||||
| ATS Medical, Inc.* | 19,800 | 79,002 | ||||||
| Bovie Medical Corp.* (a) | 8,200 | 42,722 | ||||||
| Cantel Medical Corp. | 6,400 | 127,744 | ||||||
| Cardiac Science Corp.* | 8,200 | 12,792 | ||||||
| Cardiovascular Systems, Inc.* | 4,800 | 24,048 | ||||||
| Conceptus, Inc.* | 13,400 | 253,796 | ||||||
| CONMED Corp.* | 12,329 | 274,197 | ||||||
| CryoLife, Inc.* | 10,600 | 64,766 | ||||||
| Cutera, Inc.* | 5,500 | 63,580 | ||||||
| Cyberonics, Inc.* | 12,939 | 252,699 | ||||||
| Cynosure, Inc., Class A* | 4,200 | 52,920 | ||||||
| Delcath Systems, Inc.* (a) | 16,800 | 257,376 | ||||||
| DexCom, Inc.* | 22,000 | 240,900 | ||||||
| Electro-Optical Sciences, Inc.* (a) | 11,200 | 79,744 | ||||||
| Endologix, Inc.* | 20,600 | 95,790 | ||||||
| EnteroMedics, Inc.* | 5,800 | 3,057 | ||||||
| ev3, Inc.* | 31,848 | 609,252 | ||||||
| Exactech, Inc.* | 3,300 | 67,518 | ||||||
| Greatbatch, Inc.* | 11,320 | 252,889 | ||||||
| Haemonetics Corp.* | 11,779 | 681,533 | ||||||
120 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Health Care Equipment & Supplies (continued) | ||||||||
| Hansen Medical, Inc.* (a) | 12,100 | $ | 30,734 | |||||
| HeartWare International, Inc.* | 2,700 | 151,848 | ||||||
| ICU Medical, Inc.* | 5,950 | 211,879 | ||||||
| Immucor, Inc.* | 30,346 | 649,708 | ||||||
| Insulet Corp.* (a) | 15,400 | 212,520 | ||||||
| Integra LifeSciences Holdings Corp.* | 7,880 | 357,988 | ||||||
| Invacare Corp. | 12,149 | 321,098 | ||||||
| IRIS International, Inc.* | 7,600 | 86,868 | ||||||
| Kensey Nash Corp.* | 3,682 | 83,397 | ||||||
| MAKO Surgical Corp.* (a) | 8,900 | 124,867 | ||||||
| Masimo Corp. | 21,800 | 510,338 | ||||||
| Medical Action Industries, Inc.* | 6,400 | 75,968 | ||||||
| Meridian Bioscience, Inc. | 17,075 | 341,329 | ||||||
| Merit Medical Systems, Inc.* | 12,232 | 197,791 | ||||||
| Micrus Endovascular Corp.* | 6,600 | 132,528 | ||||||
| Natus Medical, Inc.* | 12,100 | 206,184 | ||||||
| Neogen Corp.* | 8,400 | 220,836 | ||||||
| NuVasive, Inc.* | 16,700 | 694,720 | ||||||
| NxStage Medical, Inc.* | 10,100 | 128,472 | ||||||
| OraSure Technologies, Inc.* | 19,573 | 124,093 | ||||||
| Orthofix International NV* | 7,200 | 246,168 | ||||||
| Orthovita, Inc.* | 27,900 | 111,600 | ||||||
| Palomar Medical Technologies, Inc.* | 8,235 | 103,432 | ||||||
| Quidel Corp.* | 12,800 | 188,672 | ||||||
| Rochester Medical Corp.* | 4,200 | 50,358 | ||||||
| Rockwell Medical Technologies, Inc.* (a) | 7,000 | 40,670 | ||||||
| RTI Biologics, Inc.* | 23,300 | 89,239 | ||||||
| Sirona Dental Systems, Inc.* | 7,500 | 312,675 | ||||||
| Somanetics Corp.* | 5,400 | 109,242 | ||||||
| SonoSite, Inc.* | 6,378 | 213,791 | ||||||
| Spectranetics Corp.* | 14,000 | 95,480 | ||||||
| Stereotaxis, Inc.* (a) | 11,500 | 54,625 | ||||||
| STERIS Corp. | 26,490 | 881,587 | ||||||
| SurModics, Inc.* (a) | 6,458 | 120,119 | ||||||
| Symmetry Medical, Inc.* | 15,900 | 183,804 | ||||||
| Synovis Life Technologies, Inc.* | 6,400 | 94,720 | ||||||
| Thoratec Corp.* | 25,667 | 1,144,491 | ||||||
| TomoTherapy, Inc.* | 17,700 | 68,853 | ||||||
| TranS1, Inc.* | 5,400 | 17,442 | ||||||
| Utah Medical Products, Inc. | 1,400 | 39,074 | ||||||
| Vascular Solutions, Inc.* | 7,800 | 77,220 | ||||||
| Volcano Corp.* | 22,300 | 535,646 | ||||||
| West Pharmaceutical Services, Inc. | 13,992 | 585,565 | ||||||
| Wright Medical Group, Inc.* | 17,852 | 335,261 | ||||||
| Young Innovations, Inc. | 2,700 | 67,959 | ||||||
| Zoll Medical Corp.* | 9,912 | 302,812 | ||||||
| 16,674,096 | ||||||||
Health Care Providers & Services 3.5% | ||||||||
| Air Methods Corp.* | 4,300 | 142,244 | ||||||
| Alliance HealthCare Services, Inc.* | 11,000 | 58,960 | ||||||
| Allied Healthcare International, Inc.* | 22,400 | 62,944 | ||||||
| Almost Family, Inc.* | 4,000 | 169,440 | ||||||
| Amedisys, Inc.* (a) | 12,155 | 699,885 | ||||||
| America Service Group, Inc. | 3,500 | 59,360 | ||||||
| American Caresource Holdings, Inc.* (a) | 6,000 | 12,240 | ||||||
| American Dental Partners, Inc.* | 5,600 | 72,128 | ||||||
| AMERIGROUP Corp.* | 24,200 | 877,008 | ||||||
| AMN Healthcare Services, Inc.* | 14,466 | 132,219 | ||||||
| Amsurg Corp.* | 13,078 | 270,976 | ||||||
| Assisted Living Concepts, Inc., Class A* | 4,300 | 150,930 | ||||||
| Bio-Reference Labs, Inc.* | 11,600 | 271,440 | ||||||
| BioScrip, Inc.* | 17,100 | 152,874 | ||||||
| Capital Senior Living Corp.* | 9,500 | 49,970 | ||||||
| CardioNet, Inc.* | 12,600 | 121,212 | ||||||
| Catalyst Health Solutions, Inc.* | 15,753 | 666,509 | ||||||
| Centene Corp.* | 20,434 | 467,939 | ||||||
| Chemed Corp. | 9,545 | 525,070 | ||||||
| Chindex International, Inc.* | 5,700 | 72,048 | ||||||
| Clarient, Inc.* | 12,700 | 38,354 | ||||||
| Continucare Corp.* | 15,900 | 53,265 | ||||||
| CorVel Corp.* | 3,350 | 111,555 | ||||||
| Cross Country Healthcare, Inc.* | 13,585 | 136,122 | ||||||
| Emergency Medical Services Corp., Class A* | 13,300 | 703,304 | ||||||
| Emeritus Corp.* (a) | 8,500 | 190,400 | ||||||
| Ensign Group, Inc. (The) | 5,200 | 90,272 | ||||||
| Genoptix, Inc.* | 8,000 | 309,520 | ||||||
| Gentiva Health Services, Inc.* | 12,649 | 362,773 | ||||||
| Hanger Orthopedic Group, Inc.* | 12,200 | 227,408 | ||||||
| Health Grades, Inc.* | 11,300 | 79,213 | ||||||
| HealthSouth Corp.* | 42,400 | 867,504 | ||||||
| Healthspring, Inc.* | 20,800 | 366,080 | ||||||
| Healthways, Inc.* | 14,346 | 233,696 | ||||||
| HMS Holdings Corp.* | 11,900 | 636,650 | ||||||
| inVentiv Health, Inc.* | 14,700 | 338,541 | ||||||
| IPC The Hospitalist Co., Inc.* | 6,900 | 214,176 | ||||||
| Kindred Healthcare, Inc.* | 18,321 | 326,847 | ||||||
| Landauer, Inc. | 4,137 | 281,937 | ||||||
| LCA-Vision, Inc.* (a) | 9,100 | 76,713 | ||||||
| LHC Group, Inc.* | 6,700 | 228,470 | ||||||
| Magellan Health Services, Inc.* | 14,660 | 618,799 | ||||||
| Medcath Corp.* | 6,375 | 63,367 | ||||||
| Metropolitan Health Networks, Inc.* | 16,100 | 49,749 | ||||||
| Molina Healthcare, Inc.* | 5,934 | 173,095 | ||||||
| MWI Veterinary Supply, Inc.* | 4,800 | 201,360 | ||||||
| National HealthCare Corp. | 3,300 | 116,688 | ||||||
| National Research Corp. (a) | 500 | 12,945 | ||||||
| Nighthawk Radiology Holdings, Inc.* | 9,000 | 33,300 | ||||||
| NovaMed, Inc.* (a) | 10,200 | 33,456 | ||||||
| Odyssey HealthCare, Inc.* | 15,623 | 325,427 | ||||||
| Owens & Minor, Inc. | 28,377 | 892,457 | ||||||
| PharMerica Corp.* | 12,809 | 247,214 | ||||||
| Providence Service Corp. (The)* | 4,975 | 82,635 | ||||||
| PSS World Medical, Inc.* | 27,291 | 639,428 | ||||||
2010 Semiannual Report 121
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Health Care Providers & Services (continued) | ||||||||
| Psychiatric Solutions, Inc.* | 25,744 | $ | 828,184 | |||||
| RadNet, Inc.* | 12,100 | 44,528 | ||||||
| RehabCare Group, Inc.* | 11,460 | 326,839 | ||||||
| Res-Care, Inc.* | 12,745 | 148,352 | ||||||
| Select Medical Holdings Corp.* | 13,100 | 113,839 | ||||||
| Skilled Healthcare Group, Inc., Class A* | 11,000 | 73,590 | ||||||
| Sun Healthcare Group, Inc.* | 18,500 | 165,390 | ||||||
| Sunrise Senior Living, Inc.* (a) | 20,673 | 114,942 | ||||||
| Team Health Holdings, Inc.* | 6,712 | 105,513 | ||||||
| Triple-S Management Corp., Class B* | 8,600 | 156,520 | ||||||
| U.S. Physical Therapy, Inc.* | 4,900 | 85,946 | ||||||
| Universal American Corp.* | 11,290 | 173,301 | ||||||
| Virtual Radiologic Corp.* (a) | 2,700 | 33,750 | ||||||
| WellCare Health Plans, Inc.* | 18,600 | 532,518 | ||||||
| 17,301,328 | ||||||||
Health Care Technology 0.6% | ||||||||
| athenahealth, Inc.* (a) | 15,200 | 441,104 | ||||||
| Computer Programs & Systems, Inc. | 4,795 | 216,063 | ||||||
| Eclipsys Corp.* | 23,937 | 495,017 | ||||||
| MedAssets, Inc.* | 17,200 | 392,676 | ||||||
| Medidata Solutions, Inc.* | 4,100 | 60,147 | ||||||
| MedQuist, Inc. | 3,300 | 30,723 | ||||||
| Merge Healthcare, Inc.* | 12,600 | 31,248 | ||||||
| Omnicell, Inc.* | 13,300 | 177,555 | ||||||
| Phase Forward, Inc.* | 18,400 | 309,304 | ||||||
| Quality Systems, Inc. | 10,654 | 681,962 | ||||||
| Transcend Services, Inc.* | 2,900 | 43,123 | ||||||
| Vital Images, Inc.* | 6,565 | 103,596 | ||||||
| 2,982,518 | ||||||||
Hotels, Restaurants & Leisure 2.6% | ||||||||
| AFC Enterprises, Inc.* | 10,575 | 115,373 | ||||||
| Ambassadors Group, Inc. | 8,200 | 99,548 | ||||||
| Ameristar Casinos, Inc. | 11,292 | 212,628 | ||||||
| Bally Technologies, Inc.* | 24,157 | 1,114,121 | ||||||
| Benihana, Inc., Class A* | 5,200 | 35,412 | ||||||
| Biglari Holdings, Inc.* | 603 | 235,924 | ||||||
| BJ’s Restaurants, Inc.* | 9,600 | 231,648 | ||||||
| Bluegreen Corp.* | 6,200 | 37,634 | ||||||
| Bob Evans Farms, Inc. | 13,159 | 407,008 | ||||||
| Buffalo Wild Wings, Inc.* | 8,430 | 348,496 | ||||||
| California Pizza Kitchen, Inc.* | 9,920 | 203,360 | ||||||
| Caribou Coffee Co., Inc.* (a) | 3,900 | 34,515 | ||||||
| Carrols Restaurant Group, Inc.* | 4,500 | 33,705 | ||||||
| CEC Entertainment, Inc.* | 9,848 | 384,564 | ||||||
| Cheesecake Factory, Inc. (The)* | 27,200 | 739,024 | ||||||
| Churchill Downs, Inc. | 4,200 | 160,986 | ||||||
| CKE Restaurants, Inc. | 20,797 | 256,635 | ||||||
| Cracker Barrel Old Country Store, Inc. | 9,900 | 488,763 | ||||||
| Denny’s Corp.* | 42,300 | 140,859 | ||||||
| DineEquity, Inc.* (a) | 7,660 | 315,056 | ||||||
| Domino’s Pizza, Inc.* | 17,660 | 272,141 | ||||||
| Dover Downs Gaming & Entertainment, Inc. | 6,043 | 23,749 | ||||||
| Einstein Noah Restaurant Group, Inc.* | 2,100 | 27,258 | ||||||
| Frisch’s Restaurants, Inc. | 800 | 17,528 | ||||||
| Gaylord Entertainment Co.* (a) | 16,936 | 571,590 | ||||||
| Great Wolf Resorts, Inc.* | 11,900 | 38,199 | ||||||
| Interval Leisure Group, Inc.* | 17,800 | 263,262 | ||||||
| Isle of Capri Casinos, Inc.* | 6,651 | 72,429 | ||||||
| Jack in the Box, Inc.* | 24,440 | 574,829 | ||||||
| Krispy Kreme Doughnuts, Inc.* (a) | 25,663 | 94,953 | ||||||
| Lakes Entertainment, Inc.* | 9,800 | 22,050 | ||||||
| Landry’s Restaurants, Inc.* | 2,614 | 60,357 | ||||||
| Life Time Fitness, Inc.* | 17,500 | 643,300 | ||||||
| Luby’s, Inc.* | 8,900 | 36,312 | ||||||
| Marcus Corp. | 8,734 | 112,232 | ||||||
| McCormick & Schmick’s Seafood Restaurants, Inc.* | 6,000 | 59,460 | ||||||
| Monarch Casino & Resort, Inc.* | 3,930 | 45,667 | ||||||
| Morgans Hotel Group Co.* (a) | 10,100 | 85,547 | ||||||
| Multimedia Games, Inc.* | 12,900 | 58,953 | ||||||
| O’Charleys, Inc.* | 7,425 | 70,909 | ||||||
| Orient-Express Hotels Ltd., Class A* | 38,800 | 529,620 | ||||||
| P.F. Chang’s China Bistro, Inc.* (a) | 10,985 | 479,385 | ||||||
| Papa John’s International, Inc.* | 9,624 | 263,698 | ||||||
| Peet’s Coffee & Tea, Inc.* | 5,582 | 221,159 | ||||||
| Pinnacle Entertainment, Inc.* | 26,396 | 357,138 | ||||||
| Red Lion Hotels Corp.* | 7,000 | 53,480 | ||||||
| Red Robin Gourmet Burgers, Inc.* | 6,959 | 169,869 | ||||||
| Ruby Tuesday, Inc.* | 27,160 | 303,920 | ||||||
| Ruth’s Hospitality Group, Inc.* | 13,100 | 71,133 | ||||||
| Shuffle Master, Inc.* | 22,865 | 219,504 | ||||||
| Sonic Corp.* | 27,510 | 322,142 | ||||||
| Speedway Motorsports, Inc. | 5,745 | 93,356 | ||||||
| Texas Roadhouse, Inc.* | 21,975 | 324,791 | ||||||
| Town Sports International Holdings, Inc.* | 7,500 | 28,275 | ||||||
| Universal Travel Group* | 4,100 | 37,433 | ||||||
| Vail Resorts, Inc.* | 13,608 | 621,069 | ||||||
| Youbet.com, Inc.* | 14,900 | 43,657 | ||||||
| 12,885,613 | ||||||||
Household Durables 1.4% | ||||||||
| American Greetings Corp., Class A | 18,100 | 444,536 | ||||||
| Beazer Homes USA, Inc.* | 29,900 | 196,443 | ||||||
| Blyth, Inc. | 2,530 | 145,829 | ||||||
| Brookfield Homes Corp.* (a) | 4,247 | 47,609 | ||||||
| Cavco Industries, Inc.* | 2,700 | 105,759 | ||||||
| CSS Industries, Inc. | 3,205 | 64,164 | ||||||
| Ethan Allen Interiors, Inc. | 12,000 | 242,400 | ||||||
| Furniture Brands International, Inc.* | 18,235 | 150,986 | ||||||
| Helen of Troy Ltd.* | 13,900 | 375,439 | ||||||
| Hooker Furniture Corp. | 4,475 | 70,526 | ||||||
| Hovnanian Enterprises, Inc., Class A* (a) | 26,300 | 186,993 | ||||||
122 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Household Durables (continued) | ||||||||
| iRobot Corp.* | 8,300 | $ | 167,494 | |||||
La-Z-Boy, Inc.* | 21,900 | 285,576 | ||||||
| M/I Homes, Inc.* | 8,192 | 127,795 | ||||||
| Meritage Homes Corp.* | 14,600 | 347,188 | ||||||
| National Presto Industries, Inc. | 2,081 | 233,009 | ||||||
| NIVS IntelliMedia Technology Group, Inc.* | 2,400 | 7,704 | ||||||
| Ryland Group, Inc. | 19,900 | 453,322 | ||||||
| Sealy Corp.* (a) | 23,300 | 87,142 | ||||||
| Skyline Corp. | 2,918 | 68,019 | ||||||
| Standard Pacific Corp.* | 47,800 | 306,398 | ||||||
| Stanley Furniture Co., Inc.* (a) | 4,300 | 42,441 | ||||||
| Tempur-Pedic International, Inc.* | 33,700 | 1,135,690 | ||||||
| Tupperware Brands Corp. | 27,738 | 1,416,580 | ||||||
| Universal Electronics, Inc.* | 5,556 | 117,898 | ||||||
| 6,826,940 | ||||||||
Household Products 0.1% | ||||||||
| Central Garden and Pet Co., Class A* | 27,212 | 281,100 | ||||||
| Oil-Dri Corp of America | 2,200 | 45,100 | ||||||
| Orchids Paper Products Co.* (a) | 2,200 | 32,582 | ||||||
| WD-40 Co. | 6,927 | 244,038 | ||||||
| 602,820 | ||||||||
Independent Power Producers & Energy Traders 0.0%† | ||||||||
| US Geothermal, Inc.* | 27,300 | 25,938 | ||||||
Industrial Conglomerates 0.2% | ||||||||
| Otter Tail Corp. | 15,540 | 345,299 | ||||||
| Raven Industries, Inc. | 7,080 | 214,949 | ||||||
| Seaboard Corp. | 146 | 213,161 | ||||||
| Standex International Corp. | 5,454 | 130,187 | ||||||
| Tredegar Corp. | 13,506 | 230,412 | ||||||
| United Capital Corp.* | 700 | 17,381 | ||||||
| 1,151,389 | ||||||||
Information Technology Services 2.0% | ||||||||
| Acxiom Corp.* | 29,000 | 553,320 | ||||||
| CACI International, Inc., Class A* | 13,700 | 649,791 | ||||||
| Cass Information Systems, Inc. (a) | 3,570 | 113,526 | ||||||
| China Information Security Technology, Inc.* (a) | 14,300 | 86,372 | ||||||
| CIBER, Inc.* | 29,254 | 116,138 | ||||||
| Computer Task Group, Inc.* | 6,400 | 60,096 | ||||||
| CSG Systems International, Inc.* | 16,487 | 374,585 | ||||||
| CyberSource Corp.* | 30,746 | 789,557 | ||||||
| Dynamics Research Corp.* | 3,400 | 48,620 | ||||||
| Echo Global Logistics, Inc.* (a) | 1,100 | 14,839 | ||||||
| eLoyalty Corp.* | 3,500 | 24,500 | ||||||
| Euronet Worldwide, Inc.* | 20,808 | 331,472 | ||||||
| ExlService Holdings, Inc.* | 6,600 | 105,072 | ||||||
| Forrester Research, Inc.* | 7,681 | 246,637 | ||||||
| Gartner, Inc.* | 28,926 | 696,538 | ||||||
| Global Cash Access Holdings, Inc.* | 17,200 | 149,296 | ||||||
| Hackett Group, Inc. (The)* | 16,400 | 46,084 | ||||||
| Heartland Payment Systems, Inc. | 16,400 | 301,432 | ||||||
| iGate Corp. | 9,300 | 115,134 | ||||||
| infoGROUP, Inc.* | 14,400 | 115,344 | ||||||
| Information Services Group, Inc.* | 9,500 | 32,680 | ||||||
| Integral Systems, Inc.* | 8,002 | 69,777 | ||||||
| Lionbridge Technologies, Inc.* | 29,300 | 158,513 | ||||||
| Mantech International Corp., Class A* | 9,296 | 418,599 | ||||||
| MAXIMUS, Inc. | 7,322 | 453,305 | ||||||
| MoneyGram International, Inc.* | 34,200 | 104,310 | ||||||
| NCI, Inc., Class A* | 3,500 | 99,435 | ||||||
| Ness Technologies, Inc.* | 16,475 | 106,593 | ||||||
| Online Resources Corp.* | 10,800 | 50,328 | ||||||
| RightNow Technologies, Inc.* | 9,100 | 149,240 | ||||||
| Sapient Corp. | 37,162 | 380,167 | ||||||
| SRA International, Inc., Class A* | 17,800 | 410,824 | ||||||
| StarTek, Inc.* | 5,100 | 34,578 | ||||||
| Syntel, Inc. | 5,440 | 196,493 | ||||||
| TeleTech Holdings, Inc.* | 13,811 | 228,572 | ||||||
| Tier Technologies, Inc., Class B* | 7,200 | 60,264 | ||||||
| TNS, Inc.* | 11,800 | 306,210 | ||||||
| Unisys Corp.* | 18,390 | 515,288 | ||||||
| VeriFone Holdings, Inc.* | 31,700 | 603,251 | ||||||
| Virtusa Corp.* | 6,500 | 66,885 | ||||||
| Wright Express Corp.* | 16,475 | 559,656 | ||||||
| 9,943,321 | ||||||||
Insurance 2.9% | ||||||||
| Ambac Financial Group, Inc.* (a) | 114,700 | 173,197 | ||||||
| American Equity Investment Life Holding Co. | 27,085 | 284,934 | ||||||
| American Physicians Capital, Inc. | 4,700 | 157,168 | ||||||
| American Physicians Service Group, Inc. | 2,700 | 63,126 | ||||||
| American Safety Insurance Holdings Ltd.* | 5,200 | 84,136 | ||||||
| AMERISAFE, Inc.* | 9,600 | 164,160 | ||||||
| Amtrust Financial Services, Inc. | 9,600 | 130,848 | ||||||
| Argo Group International Holdings Ltd. | 13,462 | 444,111 | ||||||
| Assured Guaranty Ltd. | 53,700 | 1,157,235 | ||||||
| Baldwin & Lyons, Inc., Class B | 3,581 | 89,847 | ||||||
| Citizens, Inc.* (a) | 13,700 | 96,037 | ||||||
| CNA Surety Corp.* | 7,200 | 120,744 | ||||||
| Conseco, Inc.* | 113,000 | 666,700 | ||||||
| Crawford & Co., Class B* | 10,120 | 45,540 | ||||||
| Delphi Financial Group, Inc., Class A | 19,459 | 535,123 | ||||||
| Donegal Group, Inc., Class A | 4,988 | 71,977 | ||||||
| Eastern Insurance Holdings, Inc. | 4,000 | 41,000 | ||||||
| eHealth, Inc.* | 10,500 | 143,955 | ||||||
| EMC Insurance Group, Inc. (a) | 2,170 | 52,644 | ||||||
| Employers Holdings, Inc. | 19,660 | 323,997 | ||||||
| Enstar Group Ltd.* | 3,000 | 198,360 | ||||||
| FBL Financial Group, Inc., Class A | 5,647 | 145,919 | ||||||
2010 Semiannual Report 123
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Insurance (continued) | ||||||||
| First Acceptance Corp.* | 7,400 | $ | 14,726 | |||||
| First Mercury Financial Corp. | 6,100 | 79,971 | ||||||
| Flagstone Reinsurance Holdings Ltd. | 17,900 | 199,585 | ||||||
| FPIC Insurance Group, Inc.* | 5,625 | 153,113 | ||||||
| Greenlight Capital Re Ltd., Class A* | 11,800 | 302,316 | ||||||
| Hallmark Financial Services* | 3,600 | 42,156 | ||||||
| Harleysville Group, Inc. | 5,858 | 187,573 | ||||||
| Hilltop Holdings, Inc.* | 16,662 | 195,445 | ||||||
| Horace Mann Educators Corp. | 16,659 | 286,701 | ||||||
| Independence Holding Co. | 1,360 | 10,894 | ||||||
| Infinity Property & Casualty Corp. | 5,785 | 266,862 | ||||||
| Kansas City Life Insurance Co. | 1,800 | 61,200 | ||||||
| Maiden Holdings Ltd. | 21,000 | 157,290 | ||||||
| Max Capital Group Ltd. | 19,500 | 434,850 | ||||||
| Meadowbrook Insurance Group, Inc. | 25,335 | 200,147 | ||||||
| Mercer Insurance Group, Inc. | 2,400 | 44,040 | ||||||
| Montpelier Re Holdings Ltd. | 31,194 | 517,820 | ||||||
| National Financial Partners Corp.* | 17,401 | 267,801 | ||||||
| National Interstate Corp. | 2,600 | 54,314 | ||||||
| National Western Life Insurance Co., Class A | 976 | 186,553 | ||||||
| Navigators Group, Inc. (The)* | 4,992 | 200,329 | ||||||
| NYMAGIC, Inc. | 2,000 | 44,400 | ||||||
| Phoenix Cos., Inc. (The)* | 50,876 | 164,330 | ||||||
| Platinum Underwriters Holdings Ltd. | 23,100 | 859,551 | ||||||
| PMA Capital Corp., Class A* | 13,623 | 93,590 | ||||||
| Presidential Life Corp. | 9,081 | 106,974 | ||||||
| ProAssurance Corp.* | 14,317 | 872,621 | ||||||
| RLI Corp. | 7,914 | 459,012 | ||||||
| Safety Insurance Group, Inc. | 5,305 | 197,823 | ||||||
| SeaBright Insurance Holdings, Inc. | 9,800 | 106,624 | ||||||
| Selective Insurance Group, Inc. | 23,168 | 387,137 | ||||||
| State Auto Financial Corp. | 6,200 | 110,918 | ||||||
| Stewart Information Services Corp. | 7,702 | 87,649 | ||||||
| Tower Group, Inc. | 20,705 | 477,457 | ||||||
| United America Indemnity Ltd., Class A* | 15,220 | 144,590 | ||||||
| United Fire & Casualty Co. | 9,717 | 222,228 | ||||||
| Universal Insurance Holdings, Inc. | 8,700 | 43,935 | ||||||
| Zenith National Insurance Corp. | 16,384 | 619,643 | ||||||
| 14,052,926 | ||||||||
Internet & Catalog Retail 0.4% | ||||||||
1-800-FLOWERS.COM, Inc., Class A* | 11,446 | 32,736 | ||||||
| Blue Nile, Inc.* (a) | 5,403 | 291,708 | ||||||
| Drugstore.Com, Inc.* | 37,600 | 137,616 | ||||||
| Gaiam, Inc., Class A | 7,800 | 70,668 | ||||||
| HSN, Inc.* | 17,100 | 515,223 | ||||||
| NutriSystem, Inc. (a) | 14,200 | 274,486 | ||||||
| Orbitz Worldwide, Inc.* | 15,400 | 101,486 | ||||||
| Overstock.com, Inc.* (a) | 6,900 | 127,650 | ||||||
| PetMed Express, Inc. (a) | 11,400 | 252,396 | ||||||
| Shutterfly, Inc.* | 9,200 | 216,476 | ||||||
| US Auto Parts Network, Inc.* | 5,800 | 54,520 | ||||||
| Vitacost.com, Inc.* (a) | 3,700 | 32,227 | ||||||
| 2,107,192 | ||||||||
Internet Software & Services 1.7% | ||||||||
| Ancestry.com, Inc.* | 2,300 | 45,149 | ||||||
| Archipelago Learning, Inc.* | 2,300 | 33,350 | ||||||
| Art Technology Group, Inc.* | 65,500 | 280,340 | ||||||
| comScore, Inc.* | 9,200 | 166,980 | ||||||
| Constant Contact, Inc.* (a) | 11,500 | 293,825 | ||||||
| DealerTrack Holdings, Inc.* | 16,000 | 244,000 | ||||||
| Dice Holdings, Inc.* | 6,700 | 58,089 | ||||||
| Digital River, Inc.* | 17,088 | 477,439 | ||||||
| DivX, Inc.* | 13,600 | 113,696 | ||||||
| EarthLink, Inc. | 49,285 | 444,551 | ||||||
| GSI Commerce, Inc.* | 13,223 | 360,327 | ||||||
| Imergent, Inc. | 4,200 | 26,586 | ||||||
| InfoSpace, Inc.* | 16,809 | 175,990 | ||||||
| Innodata Isogen, Inc.* | 7,400 | 25,604 | ||||||
| Internap Network Services Corp.* | 22,250 | 128,605 | ||||||
| Internet Brands, Inc., Class A* | 11,600 | 120,060 | ||||||
| Internet Capital Group, Inc.* | 16,100 | 159,229 | ||||||
| iPass, Inc.* | 21,600 | 31,104 | ||||||
| j2 Global Communications, Inc.* | 20,680 | 497,974 | ||||||
| Keynote Systems, Inc. | 5,200 | 57,096 | ||||||
| Knot, Inc. (The)* | 13,000 | 105,430 | ||||||
| Limelight Networks, Inc.* | 12,500 | 50,250 | ||||||
| Liquidity Services, Inc.* | 6,435 | 73,166 | ||||||
| LivePerson, Inc.* | 17,100 | 141,246 | ||||||
| LogMeIn, Inc.* | 3,000 | 70,170 | ||||||
| LoopNet, Inc.* | 9,100 | 102,648 | ||||||
| Marchex, Inc., Class B | 8,600 | 45,236 | ||||||
| MercadoLibre, Inc.* (a) | 11,800 | 594,956 | ||||||
| ModusLink Global Solutions, Inc.* | 19,424 | 173,456 | ||||||
| Move, Inc.* | 66,239 | 145,726 | ||||||
| NIC, Inc. | 21,200 | 149,460 | ||||||
| OpenTable, Inc.* (a) | 1,500 | 58,290 | ||||||
| Openwave Systems, Inc.* | 38,800 | 86,524 | ||||||
| Perficient, Inc.* | 12,600 | 157,122 | ||||||
| QuinStreet, Inc.* | 4,388 | 74,113 | ||||||
| Rackspace Hosting, Inc.* | 28,800 | 516,960 | ||||||
| RealNetworks, Inc.* | 36,928 | 153,251 | ||||||
| Saba Software, Inc.* (a) | 9,800 | 49,980 | ||||||
| SAVVIS, Inc.* | 16,030 | 282,128 | ||||||
| Stamps.com, Inc.* | 4,616 | 48,930 | ||||||
| support.com, Inc.* | 19,800 | 86,328 | ||||||
| Switch & Data Facilities Co., Inc.* | 8,900 | 170,791 | ||||||
| TechTarget, Inc.* | 5,100 | 24,735 | ||||||
| Terremark Worldwide, Inc.* | 27,290 | 195,669 | ||||||
| Travelzoo, Inc.* | 2,100 | 41,874 | ||||||
| United Online, Inc. | 35,563 | 283,437 | ||||||
| ValueClick, Inc.* | 39,934 | 410,522 | ||||||
| Vocus, Inc.* | 7,100 | 121,055 | ||||||
124 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Internet Software & Services (continued) | ||||||||
| Web.com Group, Inc.* | 14,000 | $ | 67,620 | |||||
| Zix Corp.* (a) | 34,700 | 85,362 | ||||||
| 8,306,429 | ||||||||
Leisure Equipment & Products 0.8% | ||||||||
| Brunswick Corp. | 38,200 | 798,380 | ||||||
| Callaway Golf Co. | 30,869 | 289,860 | ||||||
| Eastman Kodak Co.* (a) | 116,300 | 711,756 | ||||||
| JAKKS Pacific, Inc.* | 13,737 | 210,039 | ||||||
| Leapfrog Enterprises, Inc.* | 15,540 | 106,294 | ||||||
| Marine Products Corp.* | 4,426 | 31,424 | ||||||
| Polaris Industries, Inc. | 14,000 | 828,380 | ||||||
| Pool Corp. | 21,100 | 517,583 | ||||||
| RC2 Corp.* | 8,465 | 155,502 | ||||||
| Smith & Wesson Holding Corp.* (a) | 29,400 | 130,830 | ||||||
| Sport Supply Group, Inc. | 3,600 | 48,276 | ||||||
| Steinway Musical Instruments, Inc.* | 2,900 | 55,564 | ||||||
| Sturm Ruger & Co., Inc. (a) | 10,000 | 166,900 | ||||||
| 4,050,788 | ||||||||
Life Sciences Tools & Services 0.7% | ||||||||
| Accelrys, Inc.* | 11,300 | 78,987 | ||||||
| Affymetrix, Inc.* | 33,000 | 229,020 | ||||||
| Albany Molecular Research, Inc.* | 10,285 | 82,280 | ||||||
| BioDelivery Sciences International, Inc.* | 4,300 | 14,921 | ||||||
| Bruker Corp.* | 21,613 | 330,463 | ||||||
| Cambrex Corp.* | 12,424 | 54,541 | ||||||
| Dionex Corp.* | 7,545 | 615,446 | ||||||
| Enzo Biochem, Inc.* | 13,964 | 83,365 | ||||||
| eResearchTechnology, Inc.* | 18,089 | 133,316 | ||||||
| Harvard Bioscience, Inc.* | 10,500 | 43,890 | ||||||
| Kendle International, Inc.* | 7,300 | 120,815 | ||||||
| Luminex Corp.* (a) | 18,160 | 295,282 | ||||||
| Parexel International Corp.* | 26,202 | 617,843 | ||||||
| Sequenom, Inc.* (a) | 29,100 | 180,420 | ||||||
| Varian, Inc.* | 12,369 | 640,590 | ||||||
| 3,521,179 | ||||||||
Machinery 2.7% | ||||||||
| 3D Systems Corp.* | 7,500 | 116,700 | ||||||
| Actuant Corp., Class A | 29,460 | 675,518 | ||||||
| Alamo Group, Inc. | 2,600 | 61,256 | ||||||
| Albany International Corp., Class A | 11,567 | 294,611 | ||||||
| Altra Holdings, Inc.* | 11,400 | 172,824 | ||||||
| American Railcar Industries, Inc. | 3,900 | 63,765 | ||||||
| Ampco-Pittsburgh Corp. | 3,600 | 92,556 | ||||||
| Astec Industries, Inc.* | 7,759 | 256,978 | ||||||
| Badger Meter, Inc. | 7,100 | 293,656 | ||||||
| Barnes Group, Inc. | 19,814 | 412,131 | ||||||
| Blount International, Inc.* | 16,800 | 188,496 | ||||||
| Briggs & Stratton Corp. | 23,280 | 552,667 | ||||||
| Cascade Corp. | 4,046 | 141,044 | ||||||
| Chart Industries, Inc.* | 12,100 | 278,179 | ||||||
| China Fire & Security Group, Inc.* (a) | 6,200 | 84,816 | ||||||
| CIRCOR International, Inc. | 8,185 | 282,055 | ||||||
| Clarcor, Inc. | 21,994 | 831,813 | ||||||
| Colfax Corp.* | 10,400 | 135,720 | ||||||
| Columbus Mckinnon Corp.* | 8,100 | 146,043 | ||||||
| Duoyuan Printing, Inc.* | 1,900 | 16,454 | ||||||
| Dynamic Materials Corp. | 5,730 | 102,911 | ||||||
| Eastern Co. (The) | 2,800 | 45,500 | ||||||
| Energy Recovery, Inc.* (a) | 15,100 | 91,053 | ||||||
| EnPro Industries, Inc.* | 8,800 | 277,904 | ||||||
| ESCO Technologies, Inc. | 11,353 | 350,240 | ||||||
| Federal Signal Corp. | 21,643 | 174,443 | ||||||
| Flow International Corp.* | 16,400 | 51,824 | ||||||
| Force Protection, Inc.* | 29,800 | 159,430 | ||||||
| FreightCar America, Inc. | 5,330 | 152,545 | ||||||
| Gorman-Rupp Co. (The) | 6,297 | 175,623 | ||||||
| Graham Corp. | 4,500 | 80,325 | ||||||
| Greenbrier Cos., Inc.* | 7,390 | 120,309 | ||||||
| Hurco Cos., Inc.* | 2,700 | 52,542 | ||||||
| John Bean Technologies Corp. | 11,600 | 213,092 | ||||||
| Kadant, Inc.* | 5,603 | 112,116 | ||||||
| Kaydon Corp. | 15,348 | 638,937 | ||||||
| LB Foster Co., Class A* | 4,300 | 127,280 | ||||||
| Lindsay Corp. (a) | 5,828 | 221,639 | ||||||
| Met-Pro Corp. | 6,200 | 63,054 | ||||||
| Middleby Corp.* | 7,192 | 439,575 | ||||||
| Miller Industries, Inc. | 4,300 | 61,490 | ||||||
| Mueller Industries, Inc. | 16,225 | 481,071 | ||||||
| Mueller Water Products, Inc., Class A | 64,770 | 362,712 | ||||||
| NACCO Industries, Inc., Class A | 2,322 | 201,875 | ||||||
| Nordson Corp. | 14,597 | 1,048,357 | ||||||
| Omega Flex, Inc. (a) | 1,000 | 12,240 | ||||||
| PMFG, Inc.* (a) | 5,600 | 80,528 | ||||||
| Portec Rail Products, Inc. | 3,300 | 39,006 | ||||||
| RBC Bearings, Inc.* | 9,500 | 299,820 | ||||||
| Robbins & Myers, Inc. | 12,646 | 327,658 | ||||||
| Sauer-Danfoss, Inc.* | 4,938 | 80,243 | �� | |||||
| SmartHeat, Inc.* | 2,900 | 24,331 | ||||||
| Sun Hydraulics Corp. (a) | 5,150 | 144,251 | ||||||
| Tecumseh Products Co., Class A* | 7,901 | 100,975 | ||||||
| Tennant Co. | 8,224 | 283,646 | ||||||
| Titan International, Inc. | 17,350 | 215,313 | ||||||
| Trimas Corp.* | 6,500 | 66,105 | ||||||
| Twin Disc, Inc. | 3,600 | 50,832 | ||||||
| Watts Water Technologies, Inc., Class A | 12,330 | 437,468 | ||||||
| 13,065,545 | ||||||||
Marine 0.2% | ||||||||
| American Commercial Lines, Inc.* (a) | 3,875 | 79,050 | ||||||
| Eagle Bulk Shipping, Inc.* (a) | 30,000 | 173,700 | ||||||
| Genco Shipping & Trading Ltd.* (a) | 12,000 | 277,920 | ||||||
| Horizon Lines, Inc., Class A | 12,900 | 70,563 | ||||||
2010 Semiannual Report 125
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Marine (continued) | ||||||||
| International Shipholding Corp. | 2,200 | $ | 66,748 | |||||
| Ultrapetrol Bahamas Ltd.* | 9,200 | 56,304 | ||||||
| 724,285 | ||||||||
Media 1.2% | ||||||||
| Arbitron, Inc. | 12,553 | 386,758 | ||||||
| Ascent Media Corp., Class A* | 6,200 | 183,024 | ||||||
| Belo Corp., Class A | 38,000 | 329,460 | ||||||
| Carmike Cinemas, Inc.* | 4,400 | 73,832 | ||||||
| Cinemark Holdings, Inc. | 13,900 | 253,814 | ||||||
| CKX, Inc.* | 26,300 | 154,644 | ||||||
| Crown Media Holdings, Inc., Class A* (a) | 4,858 | 8,793 | ||||||
| Dolan Media Co.* | 12,100 | 143,869 | ||||||
| E.W. Scripps Co. (The), Class A* | 11,000 | 120,340 | ||||||
| Fisher Communications, Inc.* | 2,500 | 37,600 | ||||||
| Global Sources Ltd.* | 7,104 | 52,072 | ||||||
Harte-Hanks, Inc. | 16,100 | 231,840 | ||||||
| Journal Communications, Inc., Class A* | 17,820 | 101,039 | ||||||
| Knology, Inc.* | 12,400 | 162,812 | ||||||
| LIN TV Corp., Class A* | 11,900 | 86,037 | ||||||
| Live Nation Entertainment, Inc.* | 60,437 | 948,257 | ||||||
| LodgeNet Interactive Corp.* | 10,000 | 66,000 | ||||||
| Martha Stewart Living Omnimedia, Class A* (a) | 14,108 | 94,242 | ||||||
| Mediacom Communications Corp., Class A* | 17,341 | 114,798 | ||||||
| National CineMedia, Inc. | 18,420 | 350,717 | ||||||
| Outdoor Channel Holdings, Inc.* | 6,500 | 44,915 | ||||||
| Playboy Enterprises, Inc., Class B* | 9,334 | 39,016 | ||||||
| PRIMEDIA, Inc. | 10,266 | 35,828 | ||||||
| RCN Corp.* | 16,030 | 235,320 | ||||||
| Reading International, Inc., Class A* (a) | 7,200 | 30,024 | ||||||
| Rentrak Corp.* | 4,000 | 87,520 | ||||||
| Scholastic Corp. | 10,722 | 289,601 | ||||||
| Sinclair Broadcast Group, Inc., Class A* | 20,835 | 143,553 | ||||||
| Valassis Communications, Inc.* | 20,800 | 679,952 | ||||||
| Value Line, Inc. (a) | 274 | 5,949 | ||||||
| World Wrestling Entertainment, Inc., Class A | 10,969 | 200,184 | ||||||
| 5,691,810 | ||||||||
Metals & Mining 1.0% | ||||||||
| Allied Nevada Gold Corp.* | 23,300 | 425,924 | ||||||
| AM Castle & Co.* | 7,200 | 98,784 | ||||||
| AMCOL International Corp. | 10,050 | 288,837 | ||||||
| Brush Engineered Materials, Inc.* | 8,936 | 265,667 | ||||||
| Century Aluminum Co.* | 25,700 | 346,436 | ||||||
| China Precision Steel, Inc.* (a) | 13,200 | 27,192 | ||||||
| Coeur d’Alene Mines Corp.* | 34,935 | 626,035 | ||||||
| General Moly, Inc.* (a) | 27,438 | 102,618 | ||||||
| General Steel Holdings, Inc.* (a) | 8,500 | 31,705 | ||||||
| Haynes International, Inc. | 5,300 | 190,323 | ||||||
| Hecla Mining Co.* (a) | 105,638 | 630,659 | ||||||
| Horsehead Holding Corp.* | 18,000 | 213,840 | ||||||
| Kaiser Aluminum Corp. | 6,500 | 261,235 | ||||||
| Olympic Steel, Inc. | 4,000 | 127,120 | ||||||
| Paramount Gold and Silver Corp.* (a) | 41,800 | 79,420 | ||||||
| RTI International Metals, Inc.* | 13,910 | 376,266 | ||||||
| Stillwater Mining Co.* | 19,235 | 325,071 | ||||||
| Sutor Technology Group Ltd.* | 3,300 | 9,075 | ||||||
| Universal Stainless & Alloy* | 2,700 | 62,991 | ||||||
| US Gold Corp.* (a) | 36,600 | 124,806 | ||||||
| Worthington Industries, Inc. | 25,475 | 406,836 | ||||||
| 5,020,840 | ||||||||
Multiline Retail 0.4% | ||||||||
| 99 Cents Only Stores* | 20,516 | 318,408 | ||||||
| Dillard’s, Inc., Class A | 23,000 | 645,840 | ||||||
| Fred’s, Inc., Class A | 19,660 | 273,078 | ||||||
| Retail Ventures, Inc.* | 10,905 | 117,992 | ||||||
| Saks, Inc.* | 57,800 | 563,550 | ||||||
| Tuesday Morning Corp.* | 13,242 | 74,817 | ||||||
| 1,993,685 | ||||||||
Multi-Utilities 0.4% | ||||||||
| Avista Corp. | 23,261 | 503,135 | ||||||
| Black Hills Corp. | 16,080 | 528,871 | ||||||
| CH Energy Group, Inc. | 6,663 | 275,982 | ||||||
| NorthWestern Corp. | 15,800 | 477,476 | ||||||
| 1,785,464 | ||||||||
Oil, Gas & Consumable Fuels 3.3% | ||||||||
| Alon USA Energy, Inc. (a) | 3,100 | 22,661 | ||||||
| Apco Oil and Gas International, Inc. | 4,400 | 122,936 | ||||||
| Approach Resources, Inc.* | 6,100 | 54,595 | ||||||
| Arena Resources, Inc.* | 16,600 | 613,038 | ||||||
| Atlas Energy, Inc.* | 29,397 | 1,060,644 | ||||||
| ATP Oil & Gas Corp.* (a) | 18,300 | 334,158 | ||||||
| Berry Petroleum Co., Class A | 21,680 | 701,782 | ||||||
| Bill Barrett Corp.* | 17,600 | 599,808 | ||||||
| BPZ Resources, Inc.* (a) | 39,200 | 259,504 | ||||||
| Brigham Exploration Co.* | 51,267 | 1,000,219 | ||||||
| Carrizo Oil & Gas, Inc.* | 12,140 | 266,352 | ||||||
| Cheniere Energy, Inc.* (a) | 29,400 | 122,010 | ||||||
| Clayton Williams Energy, Inc.* | 2,500 | 116,150 | ||||||
| Clean Energy Fuels Corp.* (a) | 16,500 | 290,730 | ||||||
| Cloud Peak Engery, Inc.* | 14,600 | 233,600 | ||||||
| Contango Oil & Gas Co.* | 5,100 | 279,990 | ||||||
| CREDO Petroleum Corp.* | 3,700 | 35,890 | ||||||
| Crosstex Energy, Inc.* | 19,600 | 176,988 | ||||||
| Cubic Energy, Inc.* (a) | 15,600 | 16,224 | ||||||
| CVR Energy, Inc.* | 9,900 | 84,051 | ||||||
| Delek US Holdings, Inc. | 5,600 | 39,256 | ||||||
| Delta Petroleum Corp.* (a) | 78,080 | 120,243 | ||||||
126 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
| DHT Holdings, Inc. | 22,600 | $ | 106,672 | |||||
| Endeavour International Corp.* | 50,100 | 81,162 | ||||||
| Evergreen Energy, Inc.* | 16,260 | 3,593 | ||||||
| FX Energy, Inc.* | 17,200 | 74,132 | ||||||
| General Maritime Corp. (a) | 23,724 | 192,402 | ||||||
| GeoResources, Inc.* | 3,100 | 53,196 | ||||||
| GMX Resources, Inc.* (a) | 13,700 | 109,737 | ||||||
| Golar LNG Ltd.* | 14,900 | 193,551 | ||||||
| Goodrich Petroleum Corp.* (a) | 11,595 | 196,303 | ||||||
| Gran Tierra Energy, Inc.* | 87,700 | 531,462 | ||||||
| Green Plains Renewable Energy, Inc.* | 5,000 | 68,650 | ||||||
| Gulfport Energy Corp.* | 11,500 | 143,750 | ||||||
| Harvest Natural Resources, Inc.* (a) | 14,065 | 124,194 | ||||||
| International Coal Group, Inc.* (a) | 43,500 | 229,245 | ||||||
| Isramco, Inc.* (a) | 400 | 24,788 | ||||||
| James River Coal Co.* | 12,400 | 233,368 | ||||||
| Knightsbridge Tankers Ltd. | 8,900 | 168,566 | ||||||
| McMoRan Exploration Co.* (a) | 34,407 | 410,820 | ||||||
| Nordic American Tanker Shipping (a) | 20,100 | 627,924 | ||||||
| Northern Oil and Gas, Inc.* | 14,700 | 239,022 | ||||||
| Oilsands Quest, Inc.* | 83,900 | 74,201 | ||||||
| Panhandle Oil and Gas, Inc., Class A | 3,000 | 74,880 | ||||||
| Patriot Coal Corp.* | 33,500 | 659,615 | ||||||
| Penn Virginia Corp. | 20,899 | 533,133 | ||||||
| Petrocorp, Inc.*(b) | 1,500 | 0 | ||||||
| Petroleum Development Corp.* | 8,456 | 197,955 | ||||||
| PetroQuest Energy, Inc.* | 22,500 | 132,975 | ||||||
| PrimeEnergy Corp.* | 200 | 4,496 | ||||||
| Rex Energy Corp.* | 12,600 | 167,580 | ||||||
| Rex Stores Corp.* | 3,100 | 53,196 | ||||||
| Rosetta Resources, Inc.* | 22,705 | 565,355 | ||||||
| Ship Finance International Ltd. (a) | 19,700 | 390,060 | ||||||
| Stone Energy Corp.* | 18,149 | 295,829 | ||||||
| Swift Energy Co.* | 17,120 | 619,402 | ||||||
| Syntroleum Corp.* | 30,400 | 68,704 | ||||||
| Teekay Tankers Ltd., Class A (a) | 6,700 | 85,358 | ||||||
| Toreador Resources Corp.* (a) | 10,500 | 95,235 | ||||||
| Uranerz Energy Corp.* (a) | 23,200 | 38,280 | ||||||
| Uranium Energy Corp.* (a) | 22,500 | 64,350 | ||||||
| USEC, Inc.* | 49,813 | 298,878 | ||||||
| VAALCO Energy, Inc.* | 26,200 | 146,982 | ||||||
| Venoco, Inc.* | 8,300 | 123,670 | ||||||
| W&T Offshore, Inc. (a) | 14,600 | 138,262 | ||||||
| Warren Resources, Inc.* | 26,140 | 93,581 | ||||||
| Western Refining, Inc.* (a) | 20,700 | 110,952 | ||||||
| Westmoreland Coal Co.* | 4,300 | 60,458 | ||||||
| World Fuel Services Corp. | 26,440 | 751,689 | ||||||
| Zion Oil & Gas, Inc.* (a) | 6,896 | 44,065 | ||||||
| 16,252,507 | ||||||||
Paper & Forest Products 0.8% | ||||||||
| Buckeye Technologies, Inc.* | 16,990 | 239,899 | ||||||
| Clearwater Paper Corp.* | 4,811 | 306,364 | ||||||
| Deltic Timber Corp. | 4,656 | 244,999 | ||||||
| Domtar Corp.* | 18,200 | 1,289,288 | ||||||
| KapStone Paper and Packaging Corp.* | 14,500 | 187,050 | ||||||
| Louisiana-Pacific Corp.* | 57,200 | 672,672 | ||||||
| Neenah Paper, Inc. | 6,500 | 113,750 | ||||||
| P.H. Glatfelter Co. | 20,010 | 293,947 | ||||||
| Schweitzer-Mauduit International, Inc. | 8,042 | 457,751 | ||||||
| Wausau Paper Corp.* | 17,547 | 155,291 | ||||||
| 3,961,011 | ||||||||
Personal Products 0.4% | ||||||||
| American Oriental Bioengineering, Inc.* (a) | 27,400 | 110,970 | ||||||
| China Sky One Medical, Inc.* (a) | 5,300 | 75,101 | ||||||
| China-Biotics, Inc.* (a) | 3,700 | 65,934 | ||||||
| Elizabeth Arden, Inc.* | 10,307 | 187,690 | ||||||
| Female Health Co. (The) | 6,200 | 39,618 | ||||||
| Inter Parfums, Inc. | 6,150 | 106,272 | ||||||
| Mannatech, Inc. (a) | 6,700 | 25,862 | ||||||
| Medifast, Inc.* (a) | 6,400 | 204,288 | ||||||
| Nu Skin Enterprises, Inc., Class A | 22,598 | 679,296 | ||||||
| Nutraceutical International Corp.* | 4,500 | 69,615 | ||||||
| Prestige Brands Holdings, Inc.* | 14,400 | 140,256 | ||||||
| Revlon, Inc., Class A* | 7,900 | 138,408 | ||||||
| Schiff Nutrition International, Inc. | 5,400 | 38,286 | ||||||
| USANA Health Sciences, Inc.* (a) | 2,810 | 101,863 | ||||||
| 1,983,459 | ||||||||
Pharmaceuticals 1.5% | ||||||||
| Acura Pharmaceuticals, Inc.* (a) | 3,500 | 12,880 | ||||||
| Adolor Corp.* | 19,800 | 38,610 | ||||||
| Akorn, Inc.* (a) | 24,000 | 50,400 | ||||||
| Ardea Biosciences, Inc.* | 6,100 | 154,940 | ||||||
| ARYx Therapeutics, Inc.* (a) | 10,300 | 9,074 | ||||||
| Auxilium Pharmaceuticals, Inc.* | 21,000 | 747,600 | ||||||
| AVANIR Pharmaceuticals, Inc., Class A* (a) | 25,900 | 83,398 | ||||||
| Biodel, Inc.* (a) | 9,800 | 44,100 | ||||||
| BioMimetic Therapeutics, Inc.* (a) | 5,459 | 72,768 | ||||||
| BMP Sunstone Corp.* (a) | 15,400 | 82,698 | ||||||
| Cadence Pharmaceuticals, Inc.* (a) | 10,400 | 101,920 | ||||||
| Caraco Pharmaceutical Laboratories Ltd.* | 4,600 | 29,670 | ||||||
| Cornerstone Therapeutics, Inc.* | 2,500 | 17,475 | ||||||
| Cumberland Pharmaceuticals, Inc.* | 3,200 | 34,080 | ||||||
| Cypress Bioscience, Inc.* | 16,920 | 85,277 | ||||||
| Depomed, Inc.* | 21,800 | 87,854 | ||||||
| Discovery Laboratories, Inc.* (a) | 41,500 | 20,792 | ||||||
| Durect Corp.* | 35,000 | 99,750 | ||||||
| Hi-Tech Pharmacal Co., Inc.* | 4,400 | 107,052 | ||||||
| Impax Laboratories, Inc.* | 26,100 | 472,410 | ||||||
| Inspire Pharmaceuticals, Inc.* | 25,000 | 171,250 | ||||||
| ISTA Pharmaceuticals, Inc.* | 15,900 | 62,169 | ||||||
| Javelin Pharmaceuticals, Inc.* | 32,200 | 70,196 | ||||||
2010 Semiannual Report 127
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Pharmaceuticals (continued) | ||||||||
| K-V Pharmaceutical Co., Class A* | 14,423 | $ | 22,356 | |||||
| Lannett Co., Inc.* | 3,900 | 18,291 | ||||||
| MAP Pharmaceuticals, Inc.* | 3,200 | 57,472 | ||||||
| Matrixx Initiatives, Inc.* (a) | 6,900 | 35,328 | ||||||
| Medicines Co. (The)* | 21,579 | 158,390 | ||||||
| Medicis Pharmaceutical Corp., Class A | 25,260 | 641,099 | ||||||
| MiddleBrook Pharmaceuticals, Inc.* (a) | 16,000 | 4,814 | ||||||
| Nektar Therapeutics* | 42,195 | 589,042 | ||||||
| Obagi Medical Products, Inc.* | 7,400 | 99,752 | ||||||
| Optimer Pharmaceuticals, Inc.* (a) | 12,600 | 155,106 | ||||||
| Pain Therapeutics, Inc.* | 15,310 | 91,860 | ||||||
| Par Pharmaceutical Cos., Inc.* | 16,095 | 436,818 | ||||||
| Pozen, Inc.* | 11,405 | 123,516 | ||||||
| Questcor Pharmaceuticals, Inc.* | 28,500 | 277,590 | ||||||
| Repros Therapeutics, Inc.* | 3,600 | 3,060 | ||||||
| Salix Pharmaceuticals Ltd.* | 24,870 | 999,774 | ||||||
| Santarus, Inc.* | 23,100 | 75,768 | ||||||
| Sucampo Pharmaceuticals, Inc., Class A* | 4,200 | 17,262 | ||||||
| SuperGen, Inc.* | 24,200 | 71,390 | ||||||
| ViroPharma, Inc.* | 33,000 | 419,760 | ||||||
| Vivus, Inc.* (a) | 37,100 | 378,049 | ||||||
| XenoPort, Inc.* (a) | 12,500 | 130,000 | ||||||
| 7,462,860 | ||||||||
Professional Services 1.2% | ||||||||
| Acacia Research — Acacia Technologies* | 14,800 | 220,224 | ||||||
| Administaff, Inc. | 8,519 | 188,611 | ||||||
| Advisory Board Co. (The)* | 7,500 | 246,975 | ||||||
| Barrett Business Services, Inc. | 3,000 | 46,200 | ||||||
| CBIZ, Inc.* | 19,343 | 135,594 | ||||||
| CDI Corp. | 5,221 | 91,002 | ||||||
| Corporate Executive Board Co. (The) | 15,200 | 417,392 | ||||||
| CoStar Group, Inc.* | 8,665 | 380,827 | ||||||
| CRA International, Inc.* | 4,131 | 95,963 | ||||||
| Diamond Management & Technology Consultants, Inc. | 11,900 | 96,628 | ||||||
| Exponent, Inc.* | 5,800 | 172,898 | ||||||
| Franklin Covey Co.* | 5,100 | 40,188 | ||||||
| GP Strategies Corp.* | 6,200 | 50,034 | ||||||
| Heidrick & Struggles International, Inc. | 6,855 | 181,040 | ||||||
| Hill International, Inc.* | 10,900 | 69,978 | ||||||
| Huron Consulting Group, Inc.* | 10,100 | 236,542 | ||||||
| ICF International, Inc.* | 4,800 | 111,168 | ||||||
| Kelly Services, Inc., Class A* | 11,540 | 185,563 | ||||||
| Kforce, Inc.* | 13,775 | 191,335 | ||||||
| Korn/Ferry International* | 20,979 | 340,069 | ||||||
| Mistras Group, Inc.* (a) | 4,600 | 53,958 | ||||||
| Navigant Consulting, Inc.* | 21,869 | 281,673 | ||||||
| Odyssey Marine Exploration, Inc.* (a) | 22,100 | 29,614 | ||||||
| On Assignment, Inc.* | 15,400 | 108,262 | ||||||
| Resources Connection, Inc.* | 21,055 | 369,305 | ||||||
| School Specialty, Inc.* | 8,008 | 187,868 | ||||||
| SFN Group, Inc.* | 22,367 | 191,238 | ||||||
| Towers Watson & Co., Class A | 18,585 | 892,080 | ||||||
| TrueBlue, Inc.* | 20,569 | 324,784 | ||||||
| Volt Information Sciences, Inc.* | 5,257 | 65,923 | ||||||
| VSE Corp. | 2,100 | 84,399 | ||||||
| 6,087,335 | ||||||||
Real Estate Investment Trusts (REITs) 6.5% | ||||||||
| Acadia Realty Trust | 16,919 | 322,815 | ||||||
| Agree Realty Corp. | 3,000 | 76,890 | ||||||
| Alexander’s, Inc.* | 900 | 286,038 | ||||||
| American Campus Communities, Inc. | 22,704 | 639,572 | ||||||
| American Capital Agency Corp. (a) | 7,900 | 217,329 | ||||||
| Anworth Mortgage Asset Corp. (a) | 53,400 | 358,314 | ||||||
| Apollo Commercial Real Estate Finance, Inc. | 5,700 | 102,657 | ||||||
| Ashford Hospitality Trust, Inc.* | 24,710 | 229,803 | ||||||
| Associated Estates Realty Corp. | 10,100 | 141,703 | ||||||
| BioMed Realty Trust, Inc. | 50,061 | 926,629 | ||||||
| CapLease, Inc. | 23,600 | 137,588 | ||||||
| Capstead Mortgage Corp. | 30,200 | 341,864 | ||||||
| CBL & Associates Properties, Inc. | 60,100 | 877,460 | ||||||
| Cedar Shopping Centers, Inc. | 17,200 | 136,912 | ||||||
| Chesapeake Lodging Trust* | 3,291 | 61,772 | ||||||
| Cogdell Spencer, Inc. | 13,900 | 105,362 | ||||||
| Colonial Properties Trust | 28,000 | 441,560 | ||||||
| Colony Financial, Inc. | 6,500 | 123,565 | ||||||
| Cousins Properties, Inc. | 30,470 | 245,588 | ||||||
| CreXus Investment Corp. | 4,500 | 59,445 | ||||||
| Cypress Sharpridge Investments, Inc. | 6,700 | 86,698 | ||||||
| DCT Industrial Trust, Inc. | 92,670 | 487,444 | ||||||
| Developers Diversified Realty Corp. | 89,400 | 1,098,726 | ||||||
| DiamondRock Hospitality Co.* | 54,385 | 597,691 | ||||||
| DuPont Fabros Technology, Inc. | 11,900 | 263,823 | ||||||
| Dynex Capital, Inc. | 7,400 | 68,598 | ||||||
| EastGroup Properties, Inc. | 11,710 | 478,705 | ||||||
| Education Realty Trust, Inc. | 28,800 | 203,616 | ||||||
| Entertainment Properties Trust | 18,214 | 796,316 | ||||||
| Equity Lifestyle Properties, Inc. | 11,636 | 645,914 | ||||||
| Equity One, Inc. (a) | 13,725 | 266,402 | ||||||
| Extra Space Storage, Inc. | 36,840 | 553,337 | ||||||
| FelCor Lodging Trust, Inc.* | 28,900 | 234,379 | ||||||
| First Industrial Realty Trust, Inc.* | 23,702 | 189,142 | ||||||
| First Potomac Realty Trust | 16,599 | 269,236 | ||||||
| Franklin Street Properties Corp. | 27,900 | 411,246 | ||||||
| Getty Realty Corp. | 7,435 | 184,165 | ||||||
| Gladstone Commercial Corp. | 4,200 | 68,040 | ||||||
| Glimcher Realty Trust | 30,778 | 209,598 | ||||||
| Government Properties Income Trust | 6,500 | 176,215 | ||||||
| Gramercy Capital Corp.* | 18,308 | 46,319 | ||||||
| Hatteras Financial Corp. | 16,800 | 448,056 | ||||||
| Healthcare Realty Trust, Inc. | 27,300 | 659,022 | ||||||
128 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Real Estate Investment Trusts (continued) | ||||||||
| Hersha Hospitality Trust | 46,700 | $ | 269,459 | |||||
| Highwoods Properties, Inc. | 32,064 | 1,025,086 | ||||||
| Home Properties, Inc. | 15,090 | 749,822 | ||||||
| Inland Real Estate Corp. | 29,670 | 279,491 | ||||||
| Invesco Mortgage Capital, Inc. | 8,300 | 171,395 | ||||||
| Investors Real Estate Trust | 32,097 | 280,207 | ||||||
| iStar Financial, Inc.* (a) | 45,100 | 302,621 | ||||||
| Kilroy Realty Corp. | 23,056 | 808,343 | ||||||
| Kite Realty Group Trust | 16,969 | 91,972 | ||||||
| LaSalle Hotel Properties | 30,776 | 810,948 | ||||||
| Lexington Realty Trust | 42,672 | 302,118 | ||||||
| LTC Properties, Inc. | 9,840 | 274,536 | ||||||
| Medical Properties Trust, Inc. | 49,034 | 492,792 | ||||||
| MFA Financial, Inc. | 127,074 | 903,496 | ||||||
Mid-America Apartment Communities, Inc. | 12,892 | 712,541 | ||||||
| Mission West Properties, Inc. | 6,700 | 48,508 | ||||||
| Monmouth Real Estate Investment Corp., Class A | 8,600 | 66,736 | ||||||
| National Health Investors, Inc. | 11,337 | 460,509 | ||||||
| National Retail Properties, Inc. | 34,740 | 817,432 | ||||||
| NorthStar Realty Finance Corp. (a) | 32,523 | 153,509 | ||||||
| Omega Healthcare Investors, Inc. | 37,600 | 752,752 | ||||||
| Parkway Properties, Inc. | 9,482 | 186,795 | ||||||
| Pebblebrook Hotel Trust* | 8,258 | 162,683 | ||||||
| Pennsylvania Real Estate Investment Trust (a) | 15,767 | 248,961 | ||||||
| Pennymac Mortgage Investment Trust* | 6,000 | 104,520 | ||||||
| Post Properties, Inc. | 21,176 | 545,494 | ||||||
| Potlatch Corp. | 17,341 | 649,594 | ||||||
| PS Business Parks, Inc. | 7,545 | 452,700 | ||||||
| RAIT Financial Trust* (a) | 27,543 | 111,825 | ||||||
| Ramco-Gershenson Properties Trust | 9,539 | 118,856 | ||||||
| Redwood Trust, Inc. | 34,720 | 579,130 | ||||||
| Resource Capital Corp. | 15,800 | 112,338 | ||||||
| Saul Centers, Inc. | 2,545 | 100,604 | ||||||
| Sovran Self Storage, Inc. | 11,601 | 427,961 | ||||||
| Starwood Property Trust, Inc. | 19,500 | 369,525 | ||||||
| Strategic Hotels & Resorts, Inc.* | 38,132 | 244,807 | ||||||
| Sun Communities, Inc. | 7,410 | 214,297 | ||||||
| Sunstone Hotel Investors, Inc.* | 41,800 | 532,114 | ||||||
| Tanger Factory Outlet Centers | 18,297 | 761,155 | ||||||
| Terreno Realty Corp.* | 3,840 | 72,230 | ||||||
| Transcontinental Realty Investors, Inc.* (a) | 300 | 3,093 | ||||||
| UMH Properties, Inc. | 4,800 | 45,024 | ||||||
| Universal Health Realty Income Trust | 5,173 | 171,847 | ||||||
| Urstadt Biddle Properties, Inc., Class A | 8,980 | 151,403 | ||||||
| U-Store-It Trust | 34,810 | 300,062 | ||||||
| Walter Investment Management Corp. (a) | 10,400 | 188,552 | ||||||
| Washington Real Estate Investment Trust | 25,284 | 795,182 | ||||||
| Winthrop Realty Trust | 6,977 | 94,189 | ||||||
| 31,794,768 | ||||||||
Real Estate Management & Development 0.1% | ||||||||
| American Realty Investors, Inc.* (a) | 800 | 6,792 | ||||||
| Avatar Holdings, Inc.* | 2,592 | 61,793 | ||||||
| China Housing & Land Development, Inc.* (a) | 12,500 | 43,250 | ||||||
| Consolidated-Tomoka Land Co. | 2,380 | 81,348 | ||||||
| Forestar Group, Inc.* | 15,600 | 351,624 | ||||||
| Tejon Ranch Co.* | 4,843 | 139,285 | ||||||
| 684,092 | ||||||||
Road & Rail 1.1% | ||||||||
| Amerco, Inc.* | 4,004 | 250,050 | ||||||
| Arkansas Best Corp. | 11,825 | 360,189 | ||||||
| Avis Budget Group, Inc.* | 46,300 | 700,056 | ||||||
| Celadon Group, Inc.* | 9,700 | 144,821 | ||||||
| Dollar Thrifty Automotive Group, Inc.* | 13,100 | 576,269 | ||||||
| Genesee & Wyoming, Inc., Class A* | 15,780 | 616,998 | ||||||
| Heartland Express, Inc. | 22,046 | 364,641 | ||||||
| Knight Transportation, Inc. | 24,920 | 530,547 | ||||||
| Marten Transport Ltd.* | 6,445 | 140,823 | ||||||
| Old Dominion Freight Line, Inc.* | 12,979 | 465,687 | ||||||
| Patriot Transportation Holding, Inc.* | 600 | 50,364 | ||||||
| RailAmerica, Inc.* | 8,300 | 106,987 | ||||||
| Saia, Inc.* | 5,755 | 95,360 | ||||||
| Universal Truckload Services, Inc.* | 2,400 | 43,824 | ||||||
| USA Truck, Inc.* | 3,200 | 58,944 | ||||||
| Werner Enterprises, Inc. | 19,162 | 429,612 | ||||||
| YRC Worldwide, Inc.* | 462,565 | 257,510 | ||||||
| 5,192,682 | ||||||||
Semiconductors & Semiconductor Equipment 3.6% | ||||||||
| Actel Corp.* | 11,509 | 178,620 | ||||||
| Advanced Analogic Technologies, Inc.* | 19,700 | 74,860 | ||||||
| Advanced Energy Industries, Inc.* | 15,545 | 228,822 | ||||||
| Amkor Technology, Inc.* (a) | 46,600 | 351,364 | ||||||
| Anadigics, Inc.* | 28,100 | 141,343 | ||||||
| Applied Micro Circuits Corp.* | 31,017 | 349,872 | ||||||
| Atheros Communications, Inc.* | 29,184 | 1,133,507 | ||||||
| ATMI, Inc.* | 13,357 | 242,162 | ||||||
| Brooks Automation, Inc.* | 28,278 | 274,862 | ||||||
| Cabot Microelectronics Corp.* | 9,832 | 377,156 | ||||||
| Cavium Networks, Inc.* | 15,800 | 436,238 | ||||||
| Ceva, Inc.* | 8,300 | 101,592 | ||||||
| Cirrus Logic, Inc.* | 28,797 | 366,010 | ||||||
| Cohu, Inc. | 10,245 | 165,457 | ||||||
| Cymer, Inc.* | 12,938 | 441,833 | ||||||
| Diodes, Inc.* | 14,240 | 305,733 | ||||||
| DSP Group, Inc.* | 9,948 | 81,275 | ||||||
2010 Semiannual Report 129
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
| Entegris, Inc.* | 54,654 | $ | 338,308 | |||||
| Entropic Communications, Inc.* | 25,300 | 133,584 | ||||||
| Exar Corp.* | 16,164 | 119,452 | ||||||
| FEI Co.* | 17,468 | 393,030 | ||||||
| FormFactor, Inc.* | 22,737 | 341,282 | ||||||
| GSI Technology, Inc.* | 8,900 | 57,583 | ||||||
| Hittite Microwave Corp.* | 9,000 | 461,520 | ||||||
| IXYS Corp.* | 10,102 | 91,221 | ||||||
| Kopin Corp.* | 28,700 | 120,827 | ||||||
| Kulicke & Soffa Industries, Inc.* | 28,168 | 230,978 | ||||||
| Lattice Semiconductor Corp.* | 51,475 | 271,273 | ||||||
| MEMSIC, Inc.* (a) | 5,800 | 19,256 | ||||||
| Micrel, Inc. | 18,758 | 218,906 | ||||||
| Microsemi Corp.* | 37,308 | 617,820 | ||||||
| Microtune, Inc.* | 22,850 | 61,238 | ||||||
| MIPS Technologies, Inc.* | 23,574 | 117,634 | ||||||
| MKS Instruments, Inc.* | 21,523 | 488,142 | ||||||
| Monolithic Power Systems, Inc.* | 14,400 | 354,960 | ||||||
| Netlogic Microsystems, Inc.* | 20,000 | 623,400 | ||||||
| NVE Corp.* | 2,500 | 120,575 | ||||||
| OmniVision Technologies, Inc.* | 23,328 | 409,640 | ||||||
| Pericom Semiconductor Corp.* | 11,900 | 138,992 | ||||||
| Photronics, Inc.* | 22,292 | 121,491 | ||||||
| PLX Technology, Inc.* | 13,400 | 70,350 | ||||||
| Power Integrations, Inc. | 9,900 | 380,952 | ||||||
| RF Micro Devices, Inc.* | 120,860 | 679,233 | ||||||
| Rubicon Technology, Inc.* (a) | 5,900 | 160,126 | ||||||
| Rudolph Technologies, Inc.* | 13,587 | 129,484 | ||||||
| Semtech Corp.* | 28,135 | 510,650 | ||||||
| Sigma Designs, Inc.* (a) | 15,000 | 177,900 | ||||||
| Silicon Image, Inc.* | 33,806 | 125,758 | ||||||
| Skyworks Solutions, Inc.* | 74,237 | 1,250,151 | ||||||
| Standard Microsystems Corp.* | 9,361 | 240,390 | ||||||
| Supertex, Inc.* | 5,680 | 153,417 | ||||||
| Tessera Technologies, Inc.* | 22,328 | 452,812 | ||||||
| Trident Microsystems, Inc.* | 34,573 | 59,811 | ||||||
| TriQuint Semiconductor, Inc.* | 67,739 | 510,752 | ||||||
| Ultratech, Inc.* | 9,250 | 135,883 | ||||||
| Veeco Instruments, Inc.* | 17,542 | 771,673 | ||||||
| Virage Logic Corp.* | 6,300 | 58,464 | ||||||
| Volterra Semiconductor Corp.* | 9,500 | 227,620 | ||||||
| Zoran Corp.* | 24,559 | 238,959 | ||||||
| 17,436,203 | ||||||||
Software 4.1% | ||||||||
| ACI Worldwide, Inc.* | 15,396 | 289,291 | ||||||
| Actuate Corp.* | 19,700 | 111,502 | ||||||
| Advent Software, Inc.* (a) | 6,893 | 311,426 | ||||||
| American Software, Inc., Class A | 9,500 | 60,705 | ||||||
| ArcSight, Inc.* | 8,700 | 197,751 | ||||||
| Ariba, Inc.* | 40,375 | 576,151 | ||||||
| AsiaInfo Holdings, Inc.* | 14,400 | 409,104 | ||||||
| Blackbaud, Inc. | 18,694 | 430,897 | ||||||
| Blackboard, Inc.* | 14,500 | 616,975 | ||||||
| Bottomline Technologies, Inc.* | 11,300 | 196,620 | ||||||
| Callidus Software, Inc.* | 12,800 | 40,576 | ||||||
| China TransInfo Technology Corp.* (a) | 5,000 | 35,000 | ||||||
| CommVault Systems, Inc.* | 18,100 | 379,195 | ||||||
| Concur Technologies, Inc.* | 17,600 | 737,616 | ||||||
| Deltek, Inc.* | 6,241 | 49,117 | ||||||
| DemandTec, Inc.* | 8,800 | 59,488 | ||||||
| Double-Take Software, Inc.* | 7,800 | 83,850 | ||||||
| Ebix, Inc.* (a) | 10,800 | 175,716 | ||||||
| Epicor Software Corp.* | 19,789 | 181,663 | ||||||
| EPIQ Systems, Inc.* | 14,275 | 172,014 | ||||||
| ePlus, Inc.* | 1,400 | 26,054 | ||||||
| Fair Isaac Corp. | 21,300 | 448,578 | ||||||
| FalconStor Software, Inc.* | 15,599 | 46,641 | ||||||
| Fortinet, Inc.* (a) | 5,700 | 101,346 | ||||||
| GSE Systems, Inc.* | 6,800 | 38,080 | ||||||
| Informatica Corp.* | 39,353 | 984,218 | ||||||
| Interactive Intelligence, Inc.* | 5,400 | 106,758 | ||||||
| Jack Henry & Associates, Inc. | 36,335 | 927,269 | ||||||
| JDA Software Group, Inc.* | 13,971 | 403,762 | ||||||
| Kenexa Corp.* | 11,300 | 169,613 | ||||||
| Lawson Software, Inc.* | 60,240 | 467,462 | ||||||
| Manhattan Associates, Inc.* | 9,640 | 276,282 | ||||||
| Mentor Graphics Corp.* | 46,631 | 419,213 | ||||||
| MicroStrategy, Inc., Class A* | 4,186 | 320,647 | ||||||
| Monotype Imaging Holdings, Inc.* | 10,372 | 108,284 | ||||||
| Net 1 UEPS Technologies, Inc.* | 13,600 | 223,040 | ||||||
| Netscout Systems, Inc.* | 10,200 | 148,104 | ||||||
| NetSuite, Inc.* (a) | 7,800 | 109,902 | ||||||
| Opnet Technologies, Inc. | 5,600 | 89,936 | ||||||
| Parametric Technology Corp.* | 50,140 | 932,103 | ||||||
| Pegasystems, Inc. | 6,100 | 193,187 | ||||||
| Pervasive Software, Inc.* | 6,200 | 30,876 | ||||||
| Phoenix Technologies Ltd.* | 12,800 | 38,272 | ||||||
| Progress Software Corp.* | 17,035 | 549,379 | ||||||
| PROS Holdings, Inc.* | 9,000 | 81,900 | ||||||
| QAD, Inc.* | 5,400 | 29,808 | ||||||
| Quest Software, Inc.* | 28,362 | 497,186 | ||||||
| Radiant Systems, Inc.* | 11,935 | 167,925 | ||||||
| Renaissance Learning, Inc. | 2,065 | 29,344 | ||||||
| Rosetta Stone, Inc.* | 2,600 | 67,184 | ||||||
| S1 Corp.* | 23,478 | 144,859 | ||||||
| Smith Micro Software, Inc.* | 12,600 | 119,574 | ||||||
| SolarWinds, Inc.* | 5,400 | 100,224 | ||||||
| Solera Holdings, Inc. | 30,300 | 1,177,761 | ||||||
| SonicWALL, Inc.* | 25,851 | 261,871 | ||||||
| Sourcefire, Inc.* | 10,400 | 232,648 | ||||||
| SRS Labs, Inc.* | 4,600 | 43,056 | ||||||
| SuccessFactors, Inc.* | 19,500 | 408,135 | ||||||
| Symyx Technologies, Inc.* | 14,959 | 81,526 | ||||||
| Synchronoss Technologies, Inc.* | 8,700 | 177,741 | ||||||
| Take-Two Interactive Software, Inc.* | 37,100 | 403,277 | ||||||
| Taleo Corp., Class A* | 17,100 | 444,258 | ||||||
130 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Software (continued) | ||||||||
| TeleCommunication Systems, Inc., Class A* | 19,800 | $ | 136,818 | |||||
| THQ, Inc.* | 32,041 | 243,512 | ||||||
| TIBCO Software, Inc.* | 74,360 | 847,704 | ||||||
| TiVo, Inc.* | 50,279 | 880,888 | ||||||
| Tyler Technologies, Inc.* | 15,000 | 255,600 | ||||||
| Ultimate Software Group, Inc.* | 10,700 | 357,915 | ||||||
| Unica Corp.* | 6,000 | 55,680 | ||||||
| VASCO Data Security International, Inc.* | 11,800 | 76,464 | ||||||
| Websense, Inc.* | 19,350 | 440,599 | ||||||
| 20,037,120 | ||||||||
Specialty Retail 3.5% | ||||||||
| America’s Car-Mart, Inc.* | 4,200 | 106,386 | ||||||
| AnnTaylor Stores Corp.* | 26,800 | 581,560 | ||||||
| Asbury Automotive Group, Inc.* | 14,160 | 220,188 | ||||||
| Bebe Stores, Inc. | 9,600 | 79,104 | ||||||
| Big 5 Sporting Goods Corp. | 9,400 | 159,330 | ||||||
Books-A-Million, Inc. | 2,500 | 18,500 | ||||||
| Borders Group, Inc.* | 30,600 | 77,724 | ||||||
| Brown Shoe Co., Inc. | 17,754 | 333,775 | ||||||
| Buckle, Inc. (The) (a) | 11,457 | 414,514 | ||||||
Build-A-Bear Workshop, Inc.* | 7,200 | 68,832 | ||||||
| Cabela’s, Inc.* (a) | 18,705 | 339,683 | ||||||
| Cato Corp. (The), Class A | 11,291 | 268,161 | ||||||
| Charming Shoppes, Inc.* | 50,210 | 283,687 | ||||||
| Childrens Place Retail Stores, Inc. (The)* | 10,211 | 467,868 | ||||||
| Christopher & Banks Corp. | 15,739 | 154,085 | ||||||
| Citi Trends, Inc.* | 6,300 | 211,302 | ||||||
| Coldwater Creek, Inc.* (a) | 24,300 | 172,044 | ||||||
| Collective Brands, Inc.* | 27,714 | 649,893 | ||||||
| Conn’s, Inc.* (a) | 4,200 | 40,026 | ||||||
| Destination Maternity Corp.* | 2,400 | 75,840 | ||||||
| Dress Barn, Inc.* | 27,525 | 761,892 | ||||||
| DSW, Inc., Class A* | 5,865 | 177,123 | ||||||
| Finish Line, Inc. (The), Class A | 19,856 | 319,880 | ||||||
| Genesco, Inc.* | 9,920 | 330,237 | ||||||
| Group 1 Automotive, Inc.* | 11,208 | 348,008 | ||||||
| Gymboree Corp.* | 13,302 | 653,527 | ||||||
| Haverty Furniture Cos., Inc. | 7,675 | 125,103 | ||||||
| hhgregg, Inc.* | 5,000 | 143,150 | ||||||
| Hibbett Sports, Inc.* | 12,659 | 348,123 | ||||||
| HOT Topic, Inc. | 17,138 | 130,934 | ||||||
| J Crew Group, Inc.* | 21,990 | 1,021,875 | ||||||
| Jo-Ann Stores, Inc.* | 12,183 | 537,514 | ||||||
| Jos. A. Bank Clothiers, Inc.* | 8,455 | 514,571 | ||||||
| Kirkland’s, Inc.* | 6,300 | 140,301 | ||||||
| Lithia Motors, Inc., Class A* | 10,700 | 85,386 | ||||||
| Lumber Liquidators Holdings, Inc.* | 5,900 | 179,714 | ||||||
| Men’s Wearhouse, Inc. (The) | 22,600 | 534,038 | ||||||
| Midas, Inc.* | 6,500 | 74,815 | ||||||
| Monro Muffler Brake, Inc. | 7,975 | 285,983 | ||||||
| New York & Co., Inc.* | 10,000 | 61,400 | ||||||
| OfficeMax, Inc.* | 33,100 | 628,900 | ||||||
| Pacific Sunwear Of California* | 28,660 | 145,020 | ||||||
| PEP Boys-Manny Moe & Jack | 20,783 | 260,411 | ||||||
| Pier 1 Imports, Inc.* | 50,200 | 415,656 | ||||||
Rent-A-Center, Inc.* | 30,050 | 775,891 | ||||||
| Rue21, Inc.* | 2,400 | 75,840 | ||||||
| Sally Beauty Holdings, Inc.* | 40,500 | 386,775 | ||||||
| Shoe Carnival, Inc.* | 3,800 | 105,108 | ||||||
| Sonic Automotive, Inc., Class A* | 13,552 | 144,735 | ||||||
| Stage Stores, Inc. | 16,701 | 254,690 | ||||||
| Stein Mart, Inc.* | 10,933 | 103,645 | ||||||
| Syms Corp.* | 2,700 | 24,597 | ||||||
| Systemax, Inc. | 4,500 | 104,535 | ||||||
| Talbots, Inc.* | 11,900 | 195,755 | ||||||
| Tractor Supply Co. | 16,200 | 1,088,154 | ||||||
| Ulta Salon Cosmetics & Fragrance, Inc.* | 11,800 | 272,816 | ||||||
| Vitamin Shoppe, Inc.* | 3,300 | 81,906 | ||||||
| West Marine, Inc.* | 6,900 | 82,593 | ||||||
| Wet Seal, Inc. (The), Class A* | 46,805 | 221,388 | ||||||
| Zale Corp.* (a) | 15,902 | 51,841 | ||||||
| Zumiez, Inc.* | 9,000 | 167,040 | ||||||
| 17,083,372 | ||||||||
Textiles, Apparel & Luxury Goods 2.3% | ||||||||
| American Apparel, Inc.* | 14,700 | 45,129 | ||||||
| Carter’s, Inc.* | 25,808 | 831,534 | ||||||
| Cherokee, Inc. | 4,500 | 91,980 | ||||||
| Columbia Sportswear Co. | 4,800 | 266,592 | ||||||
| CROCS, Inc.* | 38,800 | 374,808 | ||||||
| Deckers Outdoor Corp.* | 5,778 | 812,271 | ||||||
| Fossil, Inc.* | 20,445 | 795,310 | ||||||
| Fuqi International, Inc.* (a) | 6,100 | 64,111 | ||||||
| G-III Apparel Group Ltd.* | 5,800 | 165,880 | ||||||
| Iconix Brand Group, Inc.* | 30,400 | 524,704 | ||||||
| Jones Apparel Group, Inc. | 37,100 | 807,296 | ||||||
| Kenneth Cole Productions, Inc., Class A* | 3,270 | 40,744 | ||||||
| K-Swiss, Inc., Class A* | 11,481 | 142,824 | ||||||
| Liz Claiborne, Inc.* (a) | 41,600 | 363,584 | ||||||
| Lululemon Athletica, Inc.* (a) | 17,600 | 662,112 | ||||||
| Maidenform Brands, Inc.* | 8,400 | 191,688 | ||||||
| Movado Group, Inc.* | 6,937 | 86,088 | ||||||
| Oxford Industries, Inc. | 5,357 | 115,658 | ||||||
| Perry Ellis International, Inc.* | 4,282 | 103,325 | ||||||
| Quiksilver, Inc.* | 56,300 | 300,079 | ||||||
| Skechers U.S.A., Inc., Class A* | 15,085 | 578,510 | ||||||
| Steven Madden Ltd.* | 7,298 | 422,992 | ||||||
| Timberland Co. (The), Class A* | 18,600 | 399,900 | ||||||
| True Religion Apparel, Inc.* | 11,800 | 368,750 | ||||||
| Under Armour, Inc., Class A* (a) | 14,430 | 487,013 | ||||||
| Unifi, Inc.* | 19,300 | 73,919 | ||||||
| UniFirst Corp. | 6,643 | 324,643 | ||||||
2010 Semiannual Report 131
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Small Cap Index Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Textiles, Apparel & Luxury Goods (continued) | ||||||||
| Volcom, Inc.* | 7,900 | $ | 188,336 | |||||
| Warnaco Group, Inc. (The)* | 20,723 | 991,388 | ||||||
| Weyco Group, Inc. | 2,800 | 68,432 | ||||||
| Wolverine World Wide, Inc. | 21,046 | 644,218 | ||||||
| 11,333,818 | ||||||||
Thrifts & Mortgage Finance 1.4% | ||||||||
| Abington Bancorp, Inc. | 9,300 | 88,443 | ||||||
| Astoria Financial Corp. | 39,500 | 637,530 | ||||||
| Bank Mutual Corp. | 20,760 | 147,811 | ||||||
| BankFinancial Corp. | 8,700 | 84,042 | ||||||
| Beneficial Mutual Bancorp, Inc.* | 14,100 | 139,731 | ||||||
| Berkshire Hills Bancorp, Inc. | 5,940 | 124,740 | ||||||
| Brookline Bancorp, Inc. | 28,285 | 310,852 | ||||||
| Brooklyn Federal Bancorp, Inc. | 1,700 | 12,750 | ||||||
| Cheviot Financial Corp. (a) | 2,000 | 17,980 | ||||||
| Clifton Savings Bancorp, Inc. (a) | 4,100 | 40,262 | ||||||
| Dime Community Bancshares | 10,964 | 139,791 | ||||||
| Doral Financial Corp.* (a) | 2,300 | 12,397 | ||||||
| ESB Financial Corp. (a) | 3,800 | 54,340 | ||||||
| ESSA Bancorp, Inc. | 6,700 | 84,621 | ||||||
| First Defiance Financial Corp. | 3,400 | 45,900 | ||||||
| First Financial Holdings, Inc. | 5,900 | 83,308 | ||||||
| First Financial Northwest, Inc. | 7,800 | 50,310 | ||||||
| First Financial Service Corp. (a) | 1,600 | 13,584 | ||||||
| Flagstar Bancorp, Inc.* (a) | 49,554 | 31,467 | ||||||
| Flushing Financial Corp. | 11,750 | 159,918 | ||||||
| Fox Chase Bancorp, Inc.* | 2,300 | 25,806 | ||||||
| Heritage Financial Group (a) | 500 | 6,265 | ||||||
| Home Federal Bancorp, Inc. | 8,000 | 127,440 | ||||||
| Kearny Financial Corp. | 7,500 | 76,725 | ||||||
| Kentucky First Federal Bancorp (a) | 1,600 | 15,856 | ||||||
| K-Fed Bancorp (a) | 1,400 | 14,014 | ||||||
| Legacy Bancorp, Inc. | 2,900 | 27,173 | ||||||
| Meridian Interstate Bancorp, Inc.* | 4,300 | 49,536 | ||||||
| MGIC Investment Corp.* (a) | 88,375 | 921,751 | ||||||
| NASB Financial, Inc. (a) | 1,400 | 34,636 | ||||||
| NewAlliance Bancshares, Inc. | 49,120 | 640,034 | ||||||
| Northeast Community Bancorp, Inc. (a) | 2,200 | 13,442 | ||||||
| Northwest Bancshares, Inc. | 18,927 | 236,398 | ||||||
| OceanFirst Financial Corp. | 6,100 | 78,446 | ||||||
| Ocwen Financial Corp.* | 26,960 | 311,388 | ||||||
| Oritani Financial Corp. | 3,900 | 64,701 | ||||||
| PMI Group, Inc. (The)* (a) | 37,100 | 193,291 | ||||||
| Provident Financial Services, Inc. | 28,506 | 375,709 | ||||||
| Provident New York Bancorp | 14,175 | 145,577 | ||||||
| Prudential Bancorp, Inc. of Pennsylvania (a) | 2,400 | 18,528 | ||||||
| Radian Group, Inc. (a) | 37,600 | 533,544 | ||||||
| Rockville Financial, Inc. | 3,600 | 43,416 | ||||||
| Roma Financial Corp. (a) | 3,600 | 42,120 | ||||||
| Territorial Bancorp, Inc. | 4,900 | 93,002 | ||||||
| Tree.com, Inc.* | 3,000 | 27,300 | ||||||
| Trustco Bank Corp. | 33,308 | 221,498 | ||||||
| United Financial Bancorp, Inc. | 8,900 | 124,422 | ||||||
| ViewPoint Financial Group | 4,500 | 76,635 | ||||||
| Waterstone Financial, Inc.* | 2,660 | 10,268 | ||||||
| Westfield Financial, Inc. | 13,728 | 124,925 | ||||||
| WSFS Financial Corp. | 2,609 | 109,865 | ||||||
| 7,063,488 | ||||||||
Tobacco 0.2% | ||||||||
| Alliance One International, Inc.* | 42,811 | 217,908 | ||||||
| Star Scientific, Inc.* | 31,600 | 58,144 | ||||||
| Universal Corp. | 11,432 | 591,949 | ||||||
| Vector Group Ltd. (a) | 16,508 | 270,566 | ||||||
| 1,138,567 | ||||||||
Trading Companies & Distributors 0.9% | ||||||||
| Aceto Corp. | 14,200 | 94,714 | ||||||
| Aircastle Ltd. | 20,600 | 247,406 | ||||||
| Applied Industrial Technologies, Inc. | 17,812 | 548,254 | ||||||
| Beacon Roofing Supply, Inc.* | 19,670 | 436,674 | ||||||
| BlueLinx Holdings, Inc.* (a) | 6,800 | 34,068 | ||||||
| CAI International, Inc.* | 4,000 | 54,440 | ||||||
| DXP Enterprises, Inc.* | 3,300 | 54,747 | ||||||
| H&E Equipment Services, Inc.* | 11,600 | 136,996 | ||||||
| Houston Wire & Cable Co. | 7,900 | 103,885 | ||||||
| Interline Brands, Inc.* | 14,300 | 297,583 | ||||||
| Kaman Corp. | 11,308 | 309,952 | ||||||
| Lawson Products, Inc. | 1,724 | 28,015 | ||||||
| RSC Holdings, Inc.* | 20,700 | 189,819 | ||||||
| Rush Enterprises, Inc., Class A* | 14,550 | 236,001 | ||||||
| TAL International Group, Inc. | 6,300 | 163,737 | ||||||
| Textainer Group Holdings Ltd. | 4,100 | 94,136 | ||||||
| Titan Machinery, Inc.* (a) | 5,900 | 84,842 | ||||||
| United Rentals, Inc.* | 28,400 | 407,824 | ||||||
| Watsco, Inc. | 12,133 | 718,516 | ||||||
| Willis Lease Finance Corp.* | 1,800 | 25,272 | ||||||
| 4,266,881 | ||||||||
Water Utilities 0.3% | ||||||||
| American States Water Co. | 7,746 | 289,081 | ||||||
| Artesian Resources Corp., Class A (a) | 2,600 | 49,244 | ||||||
| Cadiz, Inc.* (a) | 5,100 | 63,597 | ||||||
| California Water Service Group | 8,297 | 321,343 | ||||||
| Connecticut Water Service, Inc. | 3,700 | 87,653 | ||||||
| Consolidated Water Co. Ltd. (a) | 6,600 | 93,390 | ||||||
| Middlesex Water Co. | 5,900 | 106,554 | ||||||
| Pennichuck Corp. | 2,300 | 53,521 | ||||||
| SJW Corp. | 5,745 | 157,872 | ||||||
| Southwest Water Co. | 10,525 | 112,302 | ||||||
| York Water Co. (The) | 5,700 | 78,375 | ||||||
| 1,412,932 | ||||||||
Wireless Telecommunication Services 0.3% | ||||||||
| NTELOS Holdings Corp. | 12,860 | 252,442 | ||||||
132 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Wireless Telecommunication Services (continued) | ||||||||
| Shenandoah Telecommunications Co. | 10,383 | $ | 184,402 | |||||
| Syniverse Holdings, Inc.* | 29,700 | 596,376 | ||||||
| USA Mobility, Inc.* | 11,924 | 166,220 | ||||||
| 1,199,440 | ||||||||
Total Common Stocks (cost $452,417,893) | 475,931,829 | |||||||
| Warrants 0.0% | ||||||||
| Number of Warrants | Market Value | |||||||
Hotels, Restaurants & Leisure 0.0%† | ||||||||
| Krispy Kreme Doughnuts, Inc., expiring 3/2/2012* | 301 | 24 | ||||||
Oil, Gas & Consumable Fuels 0.0% | ||||||||
| Greenhunter Energy, Inc., expiring 9/16/2011*(b) | 120 | 0 | ||||||
Total Warrants (cost $—) | 24 | |||||||
| Mutual Fund 3.2% | ||||||||
| Shares | Market Value | |||||||
Money Market Fund 3.2% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15%(c) | 15,638,667 | 15,638,667 | ||||||
Total Mutual Fund (cost $15,638,667) | 15,638,667 | |||||||
| Repurchase Agreement 7.5% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 04/30/10, due 05/03/10, repurchase price $36,748,244, collateralized by U.S. Government Agency Mortgages from 4.00% - 6.00%, maturing 07/01/23 - 04/01/40; total market value of $37,486,363.(d) | $ | 36,747,662 | 36,747,662 | |||||
Total Repurchase Agreement (cost $36,747,662) | 36,747,662 | |||||||
Total Investments (cost $504,804,222)(e) — 107.6% | 528,318,182 | |||||||
Liabilities in excess of other assets — (7.6%) | (37,414,284 | ) | ||||||
NET ASSETS — 100.0% | $ | 490,903,898 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $34,520,793. | |
| (b) | Fair Valued Security. | |
| (c) | Represents 7-day effective yield as of April 30, 2010. | |
| (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, 2010 was $36,747,662. | |
| (e) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. | |
| † | Amount rounds to less than 0.1%. |
| Ltd. | Limited | |
| NA | National Association | |
| NV | Public Traded Company | |
| REIT | Real Estate Investment Trust | |
| SA | Stock Company |
At April 30, 2010, the Fund’s open futures contracts were as follows (See Note 2):
| Notional Value | ||||||||||||||
| Number of | Long | Covered by | Unrealized | |||||||||||
| Contracts | Contracts | Expiration | Contracts | Appreciation | ||||||||||
| 209 | Russell 2000 Mini Future | 06/10/10 | $ | 14,953,950 | $ | 411,251 | ||||||||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 133
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Small Cap Index | |||||
| Fund | |||||
Assets: | |||||
| Investments, at value (cost $468,056,560)* | $ | 491,570,520 | |||
| Repurchase agreement, at value and cost | 36,747,662 | ||||
| Total Investments | 528,318,182 | ||||
| Deposits with broker for futures | 946,000 | ||||
| Interest and dividends receivable | 225,197 | ||||
| Security lending income receivable | 65,884 | ||||
| Receivable for capital shares issued | 290,827 | ||||
| Prepaid expenses and other assets | 39,790 | ||||
| Total Assets | 529,885,880 | ||||
Liabilities: | |||||
| Payable for investments purchased | 1,269,801 | ||||
| Payable for capital shares redeemed | 249,606 | ||||
| Payable for variation margin on futures contracts | 447,755 | ||||
| Cash Overdraft | 36,583 | ||||
| Payable upon return of securities loaned (Note 2) | 36,747,662 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 51,144 | ||||
| Fund administration fees | 46,299 | ||||
| Distribution fees | 34,033 | ||||
| Administrative servicing fees | 29,621 | ||||
| Accounting and transfer agent fees | 26,224 | ||||
| Trustee fees | 3,680 | ||||
| Custodian fees | 1,606 | ||||
| Compliance program costs (Note 3) | 3,467 | ||||
| Professional fees | 21,348 | ||||
| Printing fees | 10,352 | ||||
| Other | 2,801 | ||||
| Total Liabilities | 38,981,982 | ||||
Net Assets | $ | 490,903,898 | |||
Represented by: | |||||
| Capital | $ | 490,701,243 | |||
| Accumulated undistributed net investment income | 868,604 | ||||
| Accumulated net realized losses from investments and futures transactions | (24,591,160 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 23,513,960 | ||||
| Net unrealized appreciation/(depreciation) from futures (Note 2) | 411,251 | ||||
Net Assets | $ | 490,903,898 | |||
Net Assets: | |||||
| Class A Shares | $ | 164,039,396 | |||
| Class B Shares | 210,880 | ||||
| Class C Shares | 999,346 | ||||
| Class R2 Shares | 1,192 | ||||
| Institutional Class Shares | 325,653,084 | ||||
| Total | $ | 490,903,898 | |||
| * | Includes value of securities on loan of $34,520,793 (Note 2) |
The accompanying notes are an integral part of these financial statements.
134 Semiannual Report 2010
| Nationwide | |||||
| Small Cap Index | |||||
| Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 15,097,860 | ||||
| Class B Shares | 19,673 | ||||
| Class C Shares | 93,504 | ||||
| Class R2 Shares | 110 | ||||
| Institutional Class Shares | 29,656,662 | ||||
| Total | 44,867,809 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 10.87 | |||
| Class B Shares (a) | $ | 10.72 | |||
| Class C Shares (b) | $ | 10.69 | |||
| Class R2 Shares | $ | 10.84 | |||
| Institutional Class Shares | $ | 10.98 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 11.53 | |||
| 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.
2010 Semiannual Report 135
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Small Cap Index | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 79 | |||
| Dividend income | 2,910,335 | ||||
| Income from securities lending (Note 2) | 349,692 | ||||
| Foreign tax withholding | (41 | ) | |||
| Total Income | 3,260,065 | ||||
EXPENSES: | |||||
| Investment advisory fees | 424,564 | ||||
| Fund administration fees | 242,349 | ||||
| Distribution fees Class A | 176,434 | ||||
| Distribution fees Class B | 1,006 | ||||
| Distribution fees Class C | 4,102 | ||||
| Distribution fees Class R2 | 2 | ||||
| Administrative servicing fees Class A | 107,641 | ||||
| Registration and filing fees | 22,637 | ||||
| Professional fees | 22,502 | ||||
| Printing fees | 11,346 | ||||
| Trustee fees | 10,259 | ||||
| Custodian fees | 7,352 | ||||
| Accounting and transfer agent fees | 32,655 | ||||
| Compliance program costs (Note 3) | 2,080 | ||||
| Other | 9,675 | ||||
| Total expenses before earnings credit and expenses reimbursed | 1,074,604 | ||||
| Earnings credit (Note 6) | (119 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (152,054 | ) | |||
| Net Expenses | 922,431 | ||||
NET INVESTMENT INCOME | 2,337,634 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized losses from investment transactions | (522,798 | ) | |||
| Net realized gains from futures transactions (Note 2) | 2,197,901 | ||||
| Net realized gains from investments and futures transactions | 1,675,103 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 99,673,112 | ||||
| Net change in unrealized appreciation/(depreciation) from futures (Note 2) | 1,415,090 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 101,088,202 | ||||
| Net realized/unrealized gains from investments and futures transactions | 102,763,305 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 105,100,939 | |||
The accompanying notes are an integral part of these financial statements.
136 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Small Cap Index Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
Operations: | ||||||||||
| Net investment income | $ | 2,337,634 | $ | 3,574,971 | ||||||
| Net realized gains/(losses) from investment and futures transactions | 1,675,103 | (27,544,561 | ) | |||||||
| Net change in unrealized appreciation/(depreciation) from investments and futures | 101,088,202 | 57,552,504 | ||||||||
| Change in net assets resulting from operations | 105,100,939 | 33,582,914 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (686,000 | ) | (640,145 | ) | ||||||
| Class B | (675 | ) | (570 | ) | ||||||
| Class C | (2,735 | ) | (1,059 | ) | ||||||
| Class R2 (a) | (4 | ) | (4 | ) | ||||||
| Institutional Class | (1,648,890 | ) | (2,277,928 | ) | ||||||
| Net realized gains: | ||||||||||
| Class A | – | (1,521,340 | ) | |||||||
| Class B | – | (4,009 | ) | |||||||
| Class C | – | (5,771 | ) | |||||||
| Class R2 (a) | – | (10 | ) | |||||||
| Institutional Class | – | (2,839,142 | ) | |||||||
| Change in net assets from shareholder distributions | (2,338,304 | ) | (7,289,978 | ) | ||||||
| Change in net assets from capital transactions | 20,685,432 | 52,743,802 | ||||||||
| Change in net assets | 123,448,067 | 79,036,738 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 367,455,831 | 288,419,093 | ||||||||
| End of period | $ | 490,903,898 | $ | 367,455,831 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 868,604 | $ | 869,274 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 17,745,945 | $ | 34,020,005 | ||||||
| Dividends reinvested | 662,391 | 2,104,473 | ||||||||
| Cost of shares redeemed (b) | (10,703,918 | ) | (16,709,961 | ) | ||||||
| Total Class A | 7,704,418 | 19,414,517 | ||||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 313 | 9,165 | ||||||||
| Dividends reinvested | 661 | 3,971 | ||||||||
| Cost of shares redeemed | (25,545 | ) | (100,450 | ) | ||||||
| Total Class B | (24,571 | ) | (87,314 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 193,556 | 289,689 | ||||||||
| Dividends reinvested | 2,148 | 4,033 | ||||||||
| Cost of shares redeemed | (16,686 | ) | (103,708 | ) | ||||||
| Total Class C | 179,018 | 190,014 | ||||||||
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.
2010 Semiannual Report 137
Statements of Changes in Net Assets (Continued)
| Nationwide Small Cap Index Fund | ||||||||||
| Six Months Ended | ||||||||||
| April 30, 2010 | Year Ended | |||||||||
| (Unaudited) | October 31, 2009 | |||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | $ | 1,000 | $ | – | ||||||
| Dividends reinvested | 4 | 14 | ||||||||
| Cost of shares redeemed | (792 | ) | – | |||||||
| Total Class R2 | 212 | 14 | ||||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 23,943,205 | 64,894,869 | ||||||||
| Dividends reinvested | 1,648,890 | 5,117,013 | ||||||||
| Cost of shares redeemed (b) | (12,765,740 | ) | (36,785,311 | ) | ||||||
| Total Institutional Class | 12,826,355 | 33,226,571 | ||||||||
| Change in net assets from capital transactions | $ | 20,685,432 | $ | 52,743,802 | ||||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 1,824,863 | 4,627,859 | ||||||||
| Reinvested | 69,906 | 289,889 | ||||||||
| Redeemed | (1,121,289 | ) | (2,208,438 | ) | ||||||
| Total Class A Shares | 773,480 | 2,709,310 | ||||||||
Class B Shares | ||||||||||
| Issued | 35 | 1,095 | ||||||||
| Reinvested | 70 | 549 | ||||||||
| Redeemed | (2,738 | ) | (14,513 | ) | ||||||
| Total Class B Shares | (2,633 | ) | (12,869 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 20,975 | 39,331 | ||||||||
| Reinvested | 229 | 563 | ||||||||
| Redeemed | (1,788 | ) | (15,520 | ) | ||||||
| Total Class C Shares | 19,416 | 24,374 | ||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 110 | – | ||||||||
| Reinvested | – | 2 | ||||||||
| Redeemed | (86 | ) | – | |||||||
| Total Class R2 Shares | 24 | 2 | ||||||||
Institutional Class Shares | ||||||||||
| Issued | 2,452,118 | 9,084,930 | ||||||||
| Reinvested | 172,690 | 691,754 | ||||||||
| Redeemed | (1,279,632 | ) | (4,506,773 | ) | ||||||
| Total Institutional Class Shares | 1,345,176 | 5,269,911 | ||||||||
| Total change in shares | 2,135,463 | 7,990,728 | ||||||||
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.
138 Semiannual Report 2010
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 | 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, 2010 (Unaudited) (f) | $ | 8 | .54 | 0 | .04 | 2 | .34 | 2 | .38 | (0 | .05) | – | (0 | .05) | – | $ | 10 | .87 | 27 | .91% | $ | 164,039,396 | 0 | .70% | 0 | .83% | 0 | .77% | 3 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .25 | 0 | .07 | 0 | .39 | 0 | .46 | (0 | .05) | (0 | .12) | (0 | .17) | – | $ | 8 | .54 | 5 | .94% | $ | 122,390,936 | 0 | .72% | 0 | .86% | 0 | .82% | 22 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .44 | 0 | .01 | 2 | .30 | 2 | .31 | (0 | .03) | – | (0 | .03) | – | $ | 10 | .72 | 27 | .44% | $ | 210,880 | 1 | .30% | 0 | .24% | 1 | .37% | 3 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .16 | 0 | .30 | 0 | .39 | 0 | .42 | (0 | .02) | (0 | .12) | (0 | .14) | – | $ | 8 | .44 | 5 | .54% | $ | 188,301 | 1 | .30% | 0 | .42% | 1 | .41% | 22 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
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. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 139
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Small Cap Index Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .42 | 0 | .01 | 2 | .29 | 2 | .30 | (0 | .03) | – | (0 | .03) | – | $ | 10 | .69 | 27 | .39% | $ | 999,346 | 1 | .30% | 0 | .24% | 1 | .37% | 3 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .14 | 0 | .02 | 0 | .40 | 0 | .42 | (0 | .02) | (0 | .12) | (0 | .14) | – | $ | 8 | .42 | 5 | .46% | $ | 623,587 | 1 | .30% | 0 | .24% | 1 | .40% | 22 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .53 | 0 | .04 | 2 | .32 | 2 | .36 | (0 | .05) | – | (0 | .05) | – | $ | 10 | .84 | 27 | .70% | $ | 1,192 | 0 | .80% | 0 | .74% | 0 | .89% | 3 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .24 | 0 | .04 | 0 | .42 | 0 | .46 | (0 | .05) | (0 | .12) | (0 | .17) | – | $ | 8 | .53 | 5 | .94% | $ | 734 | 0 | .89% | 0 | .49% | 0 | .92% | 22 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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 (h) | $ | 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) | Per share calculations were performed using average shares method. |
| (g) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | 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.
140 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Small Cap Index Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 8 | .63 | 0 | .06 | 2 | .35 | 2 | .41 | (0 | .06) | – | (0 | .06) | – | $ | 10 | .98 | 28 | .00% | $ | 325,653,084 | 0 | .30% | 1 | .24% | 0 | .37% | 3 | .76% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 8 | .33 | 0 | .10 | 0 | .41 | 0 | .51 | (0 | .09) | (0 | .12) | (0 | .21) | – | $ | 8 | .63 | 6 | .51% | $ | 244,252,273 | 0 | .30% | 1 | .26% | 0 | .41% | 22 | .56% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
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) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
| (h) | 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.
2010 Semiannual Report 141
Notes to Financial Statements
April 30, 2010 (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 was originally created under the laws of Ohio in 1997 and was redomesticated as a Delaware statutory trust on February 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust has authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2010, the Trust operates thirty-one (31) 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 Fund management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. The Funds utilize various methods to measure the fair value of its investments on a recurring basis. All investments in securities are recorded at their estimated fair value as described below in the accompanying notes. 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 last quoted sales price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities 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. Values of 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
142 Semiannual Report 2010
the Funds’ investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
The fair value of securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following among others: (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 combination of these and other methods. Fair value determinations may also take into account significant events that occur before Valuation Time but after the close of the principal market on which such securities trade that materially affects the value of domestic or foreign securities. When fair value pricing is employed, the prices of the securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
The Funds are subject to the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”), “Fair Value Measurements and Disclosures” (ASC 820). This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 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 ASC 820 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 in or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
2010 Semiannual Report 143
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2010:
Bond Index*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Asset-Backed Securities | $ | — | $ | 6,513,910 | $ | — | $ | 6,513,910 | ||||||||||
| Commercial Mortgage Backed Securities | — | 36,801,155 | — | 36,801,155 | ||||||||||||||
| Corporate Bonds | — | 222,673,700 | — | 222,673,700 | ||||||||||||||
| Municipal Bonds | — | 6,651,147 | — | 6,651,147 | ||||||||||||||
| Mutual Fund | 81,716,202 | — | — | 81,716,202 | ||||||||||||||
| Repurchase Agreement | — | 1,778,252 | — | 1,778,252 | ||||||||||||||
| Sovereign Bonds | — | 27,186,416 | — | 27,186,416 | ||||||||||||||
| U.S. Government Mortgage Backed Agencies | — | 415,013,762 | — | 415,013,762 | ||||||||||||||
| U.S. Government Sponsored & Agency Obligations | — | 82,789,203 | — | 82,789,203 | ||||||||||||||
| U.S. Treasury Bonds | — | 48,595,970 | — | 48,595,970 | ||||||||||||||
| U.S. Treasury Notes | — | 293,660,847 | — | 293,660,847 | ||||||||||||||
| Yankee Dollars | — | 8,147,302 | — | 8,147,302 | ||||||||||||||
Total Assets | 81,716,202 | 1,149,811,664 | — | 1,231,527,866 | ||||||||||||||
Liabilities: | ||||||||||||||||||
| U.S. Government Mortgage Backed Agency | — | (9,288,607 | ) | — | (9,288,607 | ) | ||||||||||||
Total Liabilities | — | (9,288,607 | ) | — | (9,288,607 | ) | ||||||||||||
Total | $ | 81,716,202 | $ | 1,140,523,057 | $ | — | $ | 1,222,239,259 | ||||||||||
International Index*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | — | $ | 1,510,288,687 | $ | 54,062 | $ | 1,510,342,749 | ||||||||||
| Futures Contracts | 78,425 | — | — | 78,425 | ||||||||||||||
| Mutual Fund | 4,938,517 | — | — | 4,938,517 | ||||||||||||||
| Preferred Stocks | — | 6,507,734 | — | 6,507,734 | ||||||||||||||
| Repurchase Agreements | — | 192,086,100 | — | 192,086,100 | ||||||||||||||
| Rights | — | 39,230 | — | 39,230 | ||||||||||||||
| Warrant | — | — | — | — | ||||||||||||||
Total Assets | 5,016,942 | 1,708,921,751 | 54,062 | 1,713,992,755 | ||||||||||||||
Liabilities: | ||||||||||||||||||
| Futures Contracts | (413,140 | ) | — | — | (413,140 | ) | ||||||||||||
Total Liabilities | (413,140 | ) | — | — | (413,140 | ) | ||||||||||||
Total | $ | 4,603,802 | $ | 1,708,921,751 | $ | 54,062 | $ | 1,713,579,615 | ||||||||||
144 Semiannual Report 2010
Mid Cap Market Index*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 887,825,176 | $ | — | $ | — | $ | 887,825,176 | ||||||||||
| Futures Contracts | 590,868 | — | — | 590,868 | ||||||||||||||
| Mutual Fund | 23,228,981 | — | — | 23,228,981 | ||||||||||||||
| Repurchase Agreement | — | 33,221,759 | — | 33,221,759 | ||||||||||||||
Total | $ | 911,645,025 | $ | 33,221,759 | $ | — | $ | 944,866,784 | ||||||||||
S&P 500 Index*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 2,297,311,533 | $ | — | $ | — | $ | 2,297,311,533 | ||||||||||
| Futures Contracts | 669,933 | — | — | 669,933 | ||||||||||||||
| Mutual Fund | 50,319,310 | — | — | 50,319,310 | ||||||||||||||
| Repurchase Agreement | — | 19,542,770 | — | 19,542,770 | ||||||||||||||
Total | $ | 2,348,300,776 | $ | 19,542,770 | $ | — | $ | 2,367,843,546 | ||||||||||
Small Cap Index*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 475,931,829 | $ | — | $ | — | $ | 475,931,829 | ||||||||||
| Futures Contracts | 411,251 | — | — | 411,251 | ||||||||||||||
| Mutual Fund | 15,638,667 | — | — | 15,638,667 | ||||||||||||||
| Repurchase Agreement | — | 36,747,662 | — | 36,747,662 | ||||||||||||||
| Warrants | 24 | — | — | 24 | ||||||||||||||
Total | $ | 491,981,771 | $ | 36,747,662 | $ | — | $ | 528,729,433 | ||||||||||
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
International Index
| Common | ||||||||||||||||||
| Stocks | Rights | Warrants | Total | |||||||||||||||
| Balance as of 10/31/09 | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Accrued Accretion/(Amortization) | — | — | — | — | ||||||||||||||
| Change In Unrealized Appreciation/Depreciation | — | — | — | — | ||||||||||||||
| Net Purchases/(Sales) | — | — | — | — | ||||||||||||||
| Transfers In/(Out) of Level 3 | 54,062 | — | — | 54,062 | ||||||||||||||
| Balance as of 4/30/10 | $ | 54,062 | $ | — | $ | — | $ | 54,062 | ||||||||||
2010 Semiannual Report 145
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Small Cap Index
| Common | ||||||||||||||
| Stocks | Warrants | Total | ||||||||||||
| Balance as of 10/31/09 | $ | — | $ | — | $ | — | ||||||||
| Accrued Accretion/(Amortization) | — | — | — | |||||||||||
| Change In Unrealized Appreciation/Depreciation | — | — | — | |||||||||||
| Net Purchases/(Sales) | — | — | — | |||||||||||
| Transfers In/(Out) of Level 3 | — | — | — | |||||||||||
| Balance as of 4/30/10 | $ | — | $ | — | $ | — | ||||||||
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
* See Statement of Investments for identification of securities by type and industry classification.
* See Statement of Investments for identification of securities by type and industry classification.
| (b) | Credit Derivatives |
The Funds are subject to the provisions of ASC 815, “Derivatives and Hedging”. In September 2008, the FASB amended ASC 815-10. ASC 815-10, which is intended to improve disclosures about credit derivatives by requiring more information about the potential adverse effects of changes in credit risk on the financial position, financial performance, and cash flows of the sellers of credit derivatives, requires financial disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments and disclosures of the current status of the payment performance risk of a guarantee. Fund management has concluded that adoption of the amendments did not impact the Funds’ financial statement disclosures.
| (c) | Foreign Currency Transactions |
The accounting records of the Funds are maintained in U.S. dollars. International Index and S&P 500 Index, which may 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, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. A 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 |
International Index and S&P 500 Index are subject to foreign currency exchange risk in the normal course of pursuing their objectives. The Funds may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. 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. A forward foreign currency contract is 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. When a Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of
146 Semiannual Report 2010
Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
| (e) | Futures Contracts |
Certain Funds are subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Funds may also enter into futures contracts for non-hedging purposes. If a Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. 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 futures contract’s notional value. Under a futures contract, a Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, know as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by a Fund as unrealized gains or losses. 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 or amount 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. When a futures contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
Should market conditions change unexpectedly, a 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 the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to a Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contacts against defaults.
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
2010 Semiannual Report 147
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Fair Values of Derivative Instruments as of April 30, 2010
International Index
Derivatives not accounted for as hedging instruments under ASC 815
| Statement of Assets and Liabilities Location | ||||||||||
| Assets: | Asset Derivatives | Fair Value | ||||||||
| Futures - Equity contracts | Net Assets – Unrealized appreciation on Futures Contracts | $ | 78,425 | |||||||
| Total | $ | 78,425 | ||||||||
| Liabilities: | Liability Derivatives | |||||||||
| Equity contracts | Net Assets – Unrealized depreciation on Futures Contracts | $ | (413,140 | ) | ||||||
| Total | $ | (413,140 | ) | |||||||
Mid Cap Market Index
Derivatives not accounted for as hedging instruments under ASC 815
| Statement of Assets and Liabilities Location | ||||||||||
| Assets: | Asset Derivatives | Fair Value | ||||||||
| Futures - Equity contracts | Net Assets – Unrealized appreciation on Futures Contracts | $ | 590,868 | |||||||
| Total | $ | 590,868 | ||||||||
S&P 500 Index
Derivatives not accounted for as hedging instruments under ASC 815
| Statement of Assets and Liabilities Location | ||||||||||
| Assets: | Asset Derivatives | Fair Value | ||||||||
| Futures - Equity contracts | Net Assets – Unrealized appreciation on Futures Contracts | $ | 669,933 | |||||||
| Total | $ | 669,933 | ||||||||
Small Cap Index
Derivatives not accounted for as hedging instruments under ASC 815
| Statement of Assets and Liabilities Location | ||||||||||
| Assets: | Asset Derivatives | Fair Value | ||||||||
| Futures - Equity contracts | Net Assets – Unrealized appreciation on Futures Contracts | $ | 411,251 | |||||||
| Total | $ | 411,251 | ||||||||
148 Semiannual Report 2010
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended April 30, 2010
International Index
| Realized Gain (Loss) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 885,097 | ||||||
Mid Cap Market Index
| Realized Gain (Loss) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 2,348,454 | ||||||
S&P 500 Index
| Realized Gain (Loss) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 4,937,476 | ||||||
Small Cap Index
| Realized Gain (Loss) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 2,197,901 | ||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Operations for the Six Months Ended April 30, 2010
International Index
| Unrealized Appreciation (Depreciation) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 417,235 | ||||||
| Forward foreign currency contracts | 42,598 | |||||||
| Total | $ | 459,833 | ||||||
Mid Cap Market Index
| Unrealized Appreciation (Depreciation) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 1,630,392 | ||||||
S&P 500 Index
| Unrealized Appreciation (Depreciation) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 1,852,492 | ||||||
Small Cap Index
| Unrealized Appreciation (Depreciation) | ||||||||
| Risk Exposure | Total | |||||||
| Futures - Equity contracts | $ | 1,415,090 | ||||||
2010 Semiannual Report 149
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended April 30, 2010.
| (f) | 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 Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Funds may be unable to recover the full amount it paid under the repurchase agreements. 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.
| (g) | Mortgage Dollar Rolls |
The Bond Index may enter into mortgage dollar rolls, in which a Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. Mortgage dollar rolls 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 purchase and sale 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.
| (h) | 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.
| (i) | Securities Lending |
To generate additional income, each Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Funds’ securities lending standards and guidelines require that the borrower (1) deliver 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 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 Fund’s investment adviser to be of good standing and creditworthy under guidelines
150 Semiannual Report 2010
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, N.A. serves as securities lending agent for the securities lending program of the Funds. JPMorgan Chase Bank, N.A. 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, 2010, the Funds had securities with the following values on loan:
| Value of | Value of | |||||||||||
| Fund | Loaned Securities | Collateral | ||||||||||
| Bond Index | $ | 185,507,837 | $ | 188,059,694 | * | |||||||
| International Index | 181,932,764 | 192,086,100 | ||||||||||
| Mid Cap Market Index | 31,596,347 | 33,221,759 | ||||||||||
| S&P 500 Index | 18,378,906 | 19,542,770 | ||||||||||
| Small Cap Index | 34,520,793 | 36,747,662 | ||||||||||
| * | Includes $186,281,442 of collateral in the form of U.S. Government Sponsored & Agency Obligations securities, interest rates ranging from 0.00% to 8.77% and maturity dates ranging from 09/01/15 to 10/15/49. |
| (j) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly for International Index, Mid Cap Market Index, S&P 500 Index and Small Cap Index and are declared daily and paid monthly for Bond Index. 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 return of capital distribution.
| (k) | Federal Income Taxes |
It is the policy of each Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the U.S. 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 Funds are subject to the provisions of ASC 740, “Income Taxes”. In July 2006, the FASB amended ASC 740-10. ASC 740-10 provides guidance regarding how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740-10 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 Fund could 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 benefits to recognize in the financial statements. Differences 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).
2010 Semiannual Report 151
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
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 2006 to 2009 remain subject to examination by the Internal Revenue Service.
Fund management has evaluated the implications of ASC 740-10 and has concluded that there is no impact to the Funds’ current financial statements. ASC 740-10 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.
| (l) | 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 proportionally among various or all series of the Trust. For each Fund except the Bond Index, income, Fund expenses, and realized and unrealized gains or losses are allocated to each class of shares of the Fund based on the value of the shares of that class outstanding relative to the total value of the outstanding shares of the Fund. For the Bond Index, income, Fund expenses, and realized and unrealized gains or losses are allocated to each class of shares based on the fair value of settled shares of each class outstanding. 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 has selected BlackRock Investment Management LLC (“BlackRock”) as subadviser for the Funds and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of BlackRock.
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. For the six months ended April 30, 2010, the Funds paid investment advisory fees to NFA according to the schedule below:
| Total Fees | |||||||||
| Fund | Fee Schedule | (Annual Rate) | |||||||
| 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 | % | |||||||
152 Semiannual Report 2010
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. NFA paid the subadviser $1,761,928 for the six months ended April 30, 2010.
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Funds’ operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding the amounts listed in the table below until at least February 28, 2011:
| Amount | ||||||||||||
| Fund | Classes | (Annual Rate) | ||||||||||
| 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 approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA.
As of April 30, 2010, the cumulative potential reimbursements of the following Funds, listed by the period/year in which NFA waived or reimbursed fees or expenses to a Fund, are:
| Fiscal Year | Fiscal Year | Six Months Ended | ||||||||||||
| 2008 | 2009 | April 30, 2010 | ||||||||||||
| Fund | Amount | Amount | Amount | |||||||||||
| Bond Index | $ | 527,490 | $ | 785,022 | $ | 374,133 | ||||||||
| International Index | 1,015,839 | 1,076,868 | 467,030 | |||||||||||
| Mid Cap Market Index | 404,937 | 605,689 | 272,836 | |||||||||||
| S&P 500 Index | 947,881 | 1,433,334 | 564,725 | |||||||||||
| Small Cap Index | 217,602 | 332,402 | 152,054 | |||||||||||
NFA has committed to limit its actual recoupment to 50% (of the amounts shown above) of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010.
Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly-owned subsidiary of NFS), provides various administrative and accounting services for the Funds and serves as Transfer and Dividend Disbursing Agent for the Funds. For the period ended April 30, 2010, pursuant to a Fund Administration and Transfer Agency Agreement, fees for such services were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated
2010 Semiannual Report 153
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
proportionally among all series within the Trust in proportion to the average daily net assets of each series and 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. |
In addition, the Funds also pay out-of-pocket expenses reasonably incurred by NFM in providing services to the Funds, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees (“Networking Fees”) paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders (“beneficial accounts”). Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided, the Networking Fees range from $6 to $20 per beneficial account per year.
See “Subsequent Events” (Note 12) below for information on fund administration and transfer agency arrangements for the Funds after April 30, 2010.
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Funds. The Funds did not pay any additional fee for these services.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may 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 inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class A, Class R2, Service Class and Institutional Service Class shares of S&P 500 Index and 0.25% of the average
154 Semiannual Report 2010
daily net assets of Class A and Class R2 shares of Bond Index, International Index, Mid Cap Market Index and Small Cap Index.
For the six months ended April 30, 2010, NFS received the following amounts in Administrative Services fees from each Fund:
| Fund | Amount | |||||||
| Bond Index | $ | 97,366 | ||||||
| International Index | 268,534 | |||||||
| Mid Cap Market Index | 111,795 | |||||||
| S&P 500 Index | 579,949 | |||||||
| Small Cap Index | 97,003 | |||||||
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM 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, 2010, the Funds’ portion of such costs amounted to $29,804.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under 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 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 | |||||||||||||
N/A — Not Applicable
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 will be imposed on redemptions of Class B shares made within six years of purchase. Class C shares have a CDSC of 1% imposed on redemptions made within one year of purchase. For the six months ended April 30, 2010, NFD received commissions of $44,231 from front-end sales charges of Class A shares and from CDSCs from Class B and Class C shares of the Funds, of which $8,521 was re-allowed to affiliated broker-dealers of the Funds.
2010 Semiannual Report 155
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
4. Investments in Affiliated Issuers
Bond Index invests in affiliated issuers. A summary of the Fund’s transactions in the shares of the affiliated issuers during the six months ended April 30, 2010 were as follows:
| Market Value | Purchases | Sales | Interest | Realized | Market Value | |||||||||||||||||||||
| Affiliated Issuer | October 31, 2009 | at Cost | Proceeds | Income | Gain/(Loss) | April 30, 2010 | ||||||||||||||||||||
| Nationwide Financial Services Inc. | $ | 56,845 | $ | — | $ | — | $ | 2,608 | $ | — | $ | 64,125 | ||||||||||||||
| Nationwide Mutual Insurance Co. | 159,917 | — | — | 5,882 | — | 190,096 | ||||||||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
5. Redemption Fees
The Funds assess a 2.00% redemption fee on all classes of shares that are sold or exchanged within seven calendar days of purchase. The redemption fee, if any, is paid directly to the applicable Fund class and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through automatically reinvested dividends or capital gains.
For the six months ended April 30, 2010, the Funds had contributions to capital due to the collection of 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 | $ | — | $ | — | N/A | N/A | N/A | $ | — | |||||||||||||||||||
| International Index | 1 | — | — | $ | — | N/A | N/A | — | ||||||||||||||||||||||
| Mid Cap Market Index | 65 | — | — | — | N/A | N/A | — | |||||||||||||||||||||||
| S&P 500 Index | 19 | 2 | — | — | $ | — | $ | 56 | — | |||||||||||||||||||||
| Small Cap Index | — | — | — | — | N/A | N/A | — | |||||||||||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
N/A – Not Applicable
For the year ended October 31, 2009, the Funds had contributions to capital due to the collection of 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 | 9 | — | 2 | $ | — | N/A | N/A | — | ||||||||||||||||||||||
| Mid Cap Market Index | — | — | — | — | N/A | N/A | — | |||||||||||||||||||||||
| S&P 500 Index | — | 6 | — | — | $ | — | $ | — | 18 | |||||||||||||||||||||
| Small Cap Index | 60 | — | — | — | N/A | N/A | 3 | |||||||||||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
N/A – Not Applicable
156 Semiannual Report 2010
6. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.14% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by a Fund 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 the Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended April 30, 2010.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Funds and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. 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 those series of the Trust 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.
7. Investment Transactions
For the six months ended April 30, 2010, purchases of and sales (excluding short-term securities) were as follows:
| Fund | Purchases | Sales | ||||||||||
| Bond Index | $ | 948,785,130 | $ | 853,861,537 | ||||||||
| International Index | 78,223,070 | 17,295,906 | ||||||||||
| Mid Cap Market Index | 73,854,707 | 59,783,458 | ||||||||||
| S&P 500 Index | 83,985,966 | 59,200,790 | ||||||||||
| Small Cap Index | 39,491,206 | 15,371,532 | ||||||||||
For the six months ended April 30, 2010, purchases and sales of U.S. Government Securities were as follows:
| Fund | Purchases | Sales | ||||||||||
| Bond Index | $ | 170,549,832 | $ | 94,112,931 | ||||||||
8. 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 foreign currency fluctuations future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that 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 in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
2010 Semiannual Report 157
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
9. 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 made against the Trust. Based on experience however, the Trust expects the risk of loss to be remote.
{Insert any new pronouncements}
10. Other
As of April 30, 2010, 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.
| % of | Number of | ||||||||||||
| Fund | Shares | Accounts | |||||||||||
| Bond Index | 75.50 | % | 4 | ||||||||||
| International Index | 67.69 | 4 | |||||||||||
| Mid Cap Market Index | 62.81 | 3 | |||||||||||
| S&P 500 Index | 73.04 | 4 | |||||||||||
| Small Cap Index | 78.14 | 5 | |||||||||||
11. Federal Tax Information
As of April 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund was as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation/ | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| Bond Index | $ | 1,190,967,883 | $ | 34,265,424 | $ | (2,994,048) | $ | 31,271,376 | ||||||||||
| International Index | 1,784,246,485 | 193,725,809 | (264,057,964) | (70,332,155) | ||||||||||||||
| Mid Cap Market Index | 912,280,098 | 123,834,002 | (91,838,184) | 31,995,818 | ||||||||||||||
| S&P 500 Index | 2,396,881,359 | 311,188,835 | (340,896,581) | (29,707,746) | ||||||||||||||
| Small Cap Index | 510,566,620 | 77,506,216 | (59,754,654) | 17,751,562 | ||||||||||||||
12. Subsequent Events
Effective May 1, 2010, the Trust entered into a new Joint Fund Administration and Transfer Agency Agreement with NFM. Under the Joint Administration Agreement, NFM is paid an annual fee for fund administration and transfer agency services based on the sum of the following: (i) the amount payable by NFM to its sub-administrator and sub-transfer agent; and (ii) a percentage of the combined average daily net assets of the Trust and Nationwide Variable Insurance Trust, a Delaware statutory trust and registered investment company that is affiliated with the Trust. In addition, the Trust pays out-of-pocket-expenses reasonably incurred by NFM in providing services to the Funds and the Trust, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders. Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding
158 Semiannual Report 2010
to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided fees for these services may range from $6 to $30 per customer per year.
2010 Semiannual Report 159
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 of Trustees (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 January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 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 January 21, 2010 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, 2009) compared with performance groups and performance universes created by Lipper 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, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” 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, 2009, (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) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) 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 January 21, 2010 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 (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 transactions, including the standards and performance in seeking best execution, allocation of soft
160 Semiannual Report 2010
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 January 21, 2010 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 prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
Nationwide Bond Index Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by Nationwide Fund Advisors (“NFA”) and BlackRock Investment Management, LLC, 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. Trustees noted that the Fund’s performance for Institutional Class shares for the one-year period ended September 30, 2009 was in the fourth quintile of its Peer Universe. The Trustees also noted that the Fund’s performance for Institutional Class shares for each of the three- and five-year periods ended September 30, 2009 was in the second quintile of its Peer Universe. The Trustees noted that the Fund’s performance during all three periods was slightly below the performance of the Fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index. The Trustees added that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees noted that the Fund had achieved its objective of tracking the performance of the Barclays Capital U.S. Aggregate Bond Index.
The Trustees noted that the Fund’s contractual and actual advisory fees for Institutional Class shares were in the third quintile and equal to the median of its Peer Universe. The Trustees also noted that the Fund’s total expenses were in the third quintile and equal to the median of its Peer Universe. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. 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 also noted that the breakpoints included in the Fund’s 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 Agreement 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, LLC, 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. The Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Institutional Class shares was in the second quintile of its Peer Group. The Trustees also noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Institutional Class shares was in the third quintile and slightly below the median of its Peer Group. The Trustees noted that, for each period, the Fund underperformed its benchmark,
2010 Semiannual Report 161
Supplemental Information (Continued)
(Unaudited)
the MSCI EAFE Index. The Trustees noted that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees noted that the Fund had achieved its objective of tracking the performance of the MSCI EAFE Index. The Trustees noted that the Fund has been on the watch list since the third quarter of 2009.
The Trustees noted that the Fund’s contractual advisory fee for Institutional Class shares was in the fourth quintile of its Peer Group. The Trustees noted that, while the actual advisory fee was in the third quintile and lower than the median of its Peer Group, it was in the second quintile of the Fund’s Peer Universe. The Trustees also noted that the Fund’s total expenses for Institutional Class shares 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 an advisory fee waiver. 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 advisory fee schedule includes breakpoints, and that the first breakpoint has been reached.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement 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, LLC, 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. The Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Institutional Class shares was in the second quintile of its Peer Universe, while for the one-year period ended September 30, 2009, the Fund’s performance for Institutional Class shares was in the third quintile and above the median of its Peer Universe. The Trustees also noted that, for each period, the Fund slightly underperformed its benchmark, the S&P MidCap 400® Index. The Trustees noted that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees noted that the Fund had achieved its objective of tracking the performance of the S&P MidCap 400® Index.
The Trustees noted that the Fund’s actual advisory fee for Institutional Class shares was in the fifth quintile of its Peer Universe. The Trustees noted that the advisory fee was only four basis points higher than the Peer Group’s median, and noted that two of the three funds in its Peer Group had double the Fund’s assets under management. The Trustees noted that the Fund’s total expenses for Institutional Class shares were in the third quintile and below the median of its Peer Universe. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. 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 indicated that the breakpoints included in the Fund’s 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 Agreement 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, 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. The Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Institutional Class shares was in the second quintile of
162 Semiannual Report 2010
its Peer Group, and that for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Institutional Class shares placed it in the third quintile and at the median of its Peer Group. The Trustees noted that, for each period, the Fund slightly underperformed its benchmark, the S&P 500® Index. The Trustees noted that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees also 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, and 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 for Institutional Class 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) and an advisory fee waiver. 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 advisory fee schedule includes breakpoints, and that the first breakpoint has been reached.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement 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, LLC, 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. The Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Institutional Class shares was in the third quintile and below the median of its Peer Universe. With respect to the one-year period ended September 30, 2009, the Trustees noted that the Fund’s performance for Institutional Class shares was in the fourth quintile 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 slightly underperformed its benchmark, the Russell 2000 Index. The Trustees added that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees noted that the Fund’s performance for the three-year period ended September 30, 2009, was one basis point below the Index and 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 and actual advisory fee for Institutional Class shares were in the third quintile and above the median of its Peer Group, and that the actual advisory fee for Institutional Class shares was in the second quintile of its Peer Universe. The Trustees also noted that the Fund’s total expenses for Institutional Class 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) and an advisory fee waiver. 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 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 Agreement with respect to the Fund should be renewed.
2010 Semiannual Report 163
Management Information
April 30, 2010 (Unaudited)
Officers of the Trust
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Charles E. Allen 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). | 86 | None | ||||||||||
| Paula H.J. Cholmondeley 1947 | Trustee since July 2000 | Ms. Cholmondeley focuses full time on corporate governance. She sits on public company boards and is also on the faculty of the National Association of Corporate Directors. She has served as Chief Executive Officer of Sorrel Group (management consulting company) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | 86 | 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 DeVore 1940 | Trustee since June 1990 | Retired. Dr. DeVore served as the interim President of Greensboro College from 2009 though April 2010. He served as President of Otterbein College from July 1984 through July 2009, and as President of Davis and Elkins College from 1982 through 1984. | 86 | None | ||||||||||
| Phyllis Kay Dryden 1947 | Trustee since December 2004 | Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | 86 | None | ||||||||||
164 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Barbara L. Hennigar 1935 | Trustee since July 2000 | Ms. Hennigar was Executive Vice President of OppenheimerFunds (an asset management company) from October 1992 until June 2000; Chairman of Oppenheimer Funds Services from October 1999 until June 2000; and President and CEO from June 1992 until October 1999. She was previously Board Chair of a non-profit independent school, and is currently an independent trustee and endowment chair of St. Mary’s Academy, an independent school in Denver, CO. | 86 | None | ||||||||||
| Barbara I. Jacobs 1950 | Trustee since December 2004 | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 through 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association-College Retirement Equities Fund). | 86 | None | ||||||||||
| Douglas F. Kridler 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 community foundation that manages over 1,700 individual funds and investments) since February 2002. | 86 | None | ||||||||||
2010 Semiannual Report 165
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| David C. Wetmore 1948 | Trustee since 1995 and Chairman since February 2005 | Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology-oriented investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr. Wetmore served as the Chief Operating Officer, Chief Executive Officer, 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. | 86 | None | ||||||||||
| 1 | Length of time served includes time served with predecessor of the Trust. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years. | |
| 3 | Directorships held in (i) any other investment companies registered under the 1940 Act, (ii) 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 (iii) any company subject to the requirements of Section 15(d) of the Exchange Act. |
166 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Michael S. Spangler 1966 | President and Chief Executive Officer since June 2008 | Mr. Spangler is President and Chief Executive Officer of Nationwide Funds Group, which includes NFA3, Nationwide Fund Management LLC3 and Nationwide Fund Distributors LLC3, and is a Senior Vice President of NFS3. From May 2004-May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. | N/A | N/A | ||||||||||
| Stephen T. Grugeon 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. From February 2008-June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006. | N/A | N/A | ||||||||||
| Joseph Finelli 1957 | Treasurer since September 2007 | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3. | N/A | N/A | ||||||||||
| Dorothy Sanders 1955 | Chief Compliance Officer since October 2007 | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). | N/A | N/A | ||||||||||
| Eric E. Miller 1953 | Secretary since December 2002 | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments3. | N/A | N/A | ||||||||||
2010 Semiannual Report 167
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Doff Meyer 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)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. | N/A | N/A | ||||||||||
| Lynnett Berger 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 | ||||||||||
| 1 | Length of time served includes time served with the Trust’s predecessors. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Officer during the past five years. | |
| 3 | These positions are held with an affiliated person or principal underwriter of the Funds. | |
| 4 | 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 Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
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 subadvisers 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 Fund. The Fund’s proxy voting policies and procedures are 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.
168 Semiannual Report 2010
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P.O. Box 5354
Cincinnati, OH 45201-5354
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.
©2010 Nationwide Funds Group.
All rights reserved.
SAR-IDX 6/10
Nationwide Mutual Funds
SemiannualReport
April 30, 2010 (Unaudited)
Equity Funds
Nationwide Growth Fund
Nationwide Fund
Fixed-Income Fund
Nationwide Money Market Fund
SemiannualReport
April 30, 2010 (Unaudited)
Contents | |||
| 1 | Message to Shareholders | ||
Equity Funds | |||
| 5 | Nationwide Growth Fund | ||
| 21 | Nationwide Fund | ||
Fixed-Income Fund | |||
| 37 | Nationwide Money Market Fund | ||
| 50 | Notes to Financial Statements | ||
| 61 | Supplemental Information | ||
| 64 | Management Information | ||
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. The Trust makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
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Message to Shareholders
April 30, 2010
Dear Shareholder,
As I write this letter, we have enjoyed a relatively positive six months of growth in domestic and international equity markets. Since I last wrote to you on October 31, 2009, the Standard & Poor’s 500® (S&P 500) Index has gained 16 percent. In that letter, which accompanied your Funds’ annual report, I noted the signs of recovery but cautioned against unchecked excitement:
“Our opinion is that amid the recent good news, there is cause for caution... As a society, we haven’t displayed greater financial literacy and don’t appear to have learned any financial lessons well. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.”
Perhaps my tone was overly cautious, but in my opinion the dichotomy between the financial markets and our economic well-being still exists. Complicating matters further is the looming debt crisis that, as of this date, is threatening to expand in Europe and certainly has significant consequences. We are not isolated from any of these global issues.
Suffice it to say there is still a lot of instability in the market. At least a portion of the growth enjoyed during the past six months is a function of artificial stimulus provided by U.S. and international governments. We do not yet know if this recent growth is sustainable. The employment picture is also difficult to predict, with jobs growth lagging other economic indicators and many Americans unable to find the full-time employment they seek. While prognosticators are pointing to positive signs on the jobs front, it’s far too early to claim victory.
In times of great uncertainty I believe it is more important than ever to have clear investment goals that you pursue with a consistent strategy. Investment decisions should be based on a well-reasoned approach applied consistently over time and not on emotional reactions to extreme market events. All of this leads me to return to the core principles that have guided our firm:
| • | Always take a long-term approach to investing |
| • | Rely on asset allocation to build consistent diversification |
| • | Prudently and conscientiously look at risk |
We believe that adhering to these principles will help us—and you—to navigate these challenging times. As always, we appreciate your business. Thank you for entrusting your investments to Nationwide Mutual Funds.
Sincerely,
Michael S. Spangler
President & CEO
Nationwide Mutual Funds
President & CEO
Nationwide Mutual Funds
2010 Semiannual Report 1
Important Disclosures
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.
This report and the holdings provided are for informational purposes only, do not constitute advice, and are not intended and should not be relied upon 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 and without notice. 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.
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. There is no assurance that the investment objective of any fund will be achieved.
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 fund.
Principal Risks
The Nationwide Growth Fund invests in growth stocks, which may be more volatile than other stocks because they are generally more sensitive to investor perceptions and market movements. This can cause the Fund to underperform other funds that use different investing styles.
Performance
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. 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.
High double-digit returns are unusual and cannot be sustained.
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 Indexes
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.
BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued corporate debt securities with a remaining term to final maturity less than 10 years.
BofA Merrill Lynch (BofAML) 10+ Year US Corporate Index: An unmanaged index that is a subset of the BofA Merrill Lynch (BofAML) US Corporate Index; tracks the performance of all U.S. dollar-denominated, investment-grade, publicly issued corporate debt securities with a remaining term to final maturity greater than or equal to 10 years.
BofA Merrill Lynch (BofAML) Mortgage Master Index: An unmanaged index that tracks the performance of U.S. dollar-denominated 30-year, 15-year and balloon pass-through mortgage securities having at least $150 million outstanding per generic production year.
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
2 Semiannual Report 2010
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 Emerging Markets (MSCI EM) Indexsm: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets.
Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in developed markets outside the United States and Canada.
Russell 1000® Growth Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 1000® Index (the largest 1,000 U.S. companies, based on market capitalization) with higher price-to-book ratios and higher forecasted growth values.
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the stocks of the largest 3,000 U.S. companies, based on market capitalization.
Standard & Poor’s 500® (S&P 500) Index: An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.
Standard & Poor’s MidCap 400 (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.
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. Total returns reflect a waiver of part of the Fund’s fees for certain periods since inception, without which returns would have been lower. In addition, these Funds assess a redemption/exchange fee of 2.00% on all shares that are sold within 30 calendar days of purchase.
| • | Nationwide Money Market Fund |
The Fund has no sales charge or 12b-1 fee. Total returns reflect a waiver of part of the Fund’s fees for certain periods since inception, without which returns would have been lower.
About Nationwide Funds Group (NFG)
Commentary provided by NFG. Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
Based in King of Prussia, 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, LLC (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 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.
Distributor
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is not an affiliate of Aberdeen Asset Management Inc. or Federated Investment Management Co.
2010 Semiannual Report 3
| Summary of Market Environment |
The following is a commentary from Nationwide Funds Group on market conditions for the semiannual period ended April 30, 2010.
During the fourth quarter of 2009, corporate profits continued to show evidence of improvement, which in turn stoked investor confidence and drove the market rally. “Riskier” assets led the way, albeit at a slower pace than was seen during the second and third quarters of 2009. Positive news persisted throughout the first quarter of 2010, spurring markets to improve and prompting economists to declare that the United States had finally turned the corner and was exiting the “Great Recession.”
While this is very positive news for U.S. consumers, the recovery is expected to be an uneven one with significant headwinds. The rate of unemployment is high and is likely to remain so for the short term. Federal, state and local governments, as well as consumers, are contending with weak balance sheets. Government incentives for new housing purchases have ended. These factors, coupled with a second wave of mortgage resets and the reluctance of banks to lend, lead economic observers to believe that the recovery will be weak and uneven for the foreseeable future.
The equity market is expected to remain choppy, characterized by sharp rallies and sharp declines with equally sharp equity sector rotations. For the semiannual reporting period, large-capitalization U.S. equities, as measured by the large-cap Standard & Poor’s 500® (S&P 500) Index, returned 15.66% as markets continued to rally. Mid-cap U.S. equities, as measured by the Standard and Poor’s MidCap 400 (S&P 400) Index, returned 25.78%, and small-cap U.S. equities, as measured by the Russell 2000® Index, returned 28.17% for the same time period.
International stocks and international emerging market stocks continued their strong rally in the fourth quarter of 2009, but this rally slowed throughout the first quarter of 2010, impeded by concerns about Greece’s debt situation and the recent strength of the U.S. dollar. As represented by the Morgan Stanley Capital International Emerging Markets (MSCI EM) Indexsm, emerging market stocks returned 11.57% for the semiannual reporting period. International stocks, as measured by the broad MSCI Europe, Australasia and Far East (MSCI EAFE®) Index, returned 1.19% for the same time period.
During the fourth quarter of 2009, the bond market benefited from the aforementioned improvements in corporate profits that fueled investor confidence. Enthusiasm was tempered, however, during the first quarter of 2010, due to an increase in government debt, continued weakness in U.S. labor markets and growing concerns about European debt (most notably involving Greece, Spain, Portugal and Italy). The Barclays Capital (BARCAP) U.S. Aggregate Bond Index returned 2.54% for the semiannual reporting period. On the corporate bond front, the BofA Merrill Lynch (BofAML) 1-10 Year US Corporate Index returned 4.89%, while the BofAML 10+ Year US Corporate Index returned 5.24% for the same time period. In the area of mortgage-related investments, the BofAML Mortgage Master Index returned 2.14% for the same time period.
4 Semiannual Report 2010
| 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, 2010, the Nationwide Growth Fund (Class A at NAV) returned 17.00% versus 15.78% for its benchmark, the Russell 1000® Growth Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Large-Cap Growth Funds (consisting of 887 funds as of April 30, 2010) was 14.72% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
Fund performance during the reporting period benefited from security selection in the consumer discretionary and industrials sectors. The main individual stock contributors to Fund performance were Fund holdings in hotel chain operator Starwood Hotels & Resorts Worldwide, Inc.; Cummins, Inc., a manufacturer of diesel and natural gas engines; and semiconductor manufacturer Marvell Technology Group Ltd. Shares of Starwood Hotels & Resorts Worldwide rose during the reporting period as the company’s business continued to improve amid a recovery in corporate travel. Cummins experienced increases in orders for equipment and reported better-than-expected earnings for the first quarter of 2010. Marvell Technology Group benefited from an improvement in end-market demand for its communications and storage-focused semiconductors. We believe that Marvell Technology is well positioned for significant earnings growth due to the Windows 7 PC upgrade cycle and the proliferation of devices connecting to the Internet.
What areas of investment detracted from Fund performance?
Fund holdings in the energy, financials and materials sectors had an adverse effect on Fund performance during the reporting period. The most notable individual detractors were holdings in Brocade Communications Systems, Inc., a provider of data center networking solutions; security software company McAfee, Inc.; and The Goldman Sachs Group, Inc., a global investment banking and management firm. Brocade Communications Systems’ stock price fell during the reporting period due to a slowdown in key product sales and significant changes in personnel. We exited the Fund’s position in the stock, because the changes were not in line with our expectations for the company. Earlier in the reporting period, investors became impatient with McAfee as the company had difficulty converting non-paying trial customers to paying customers because of internal execution issues and economic weakness. Toward the end of the reporting period, the company released an earnings statement that showed a negative impact from foreign currency exchange and delays in signing several enterprise clients. The Fund’s relative overweight position in The Goldman Sachs Group hurt Fund performance; the shares lost ground due to investors’ concerns about fraud charges brought against the company by the U.S. government and, more broadly, the prospect of tighter regulatory oversight.
What is your outlook for the near term?
As companies continue to report strong earnings, they generally are still benefiting from efficiency measures put in place during the past year. As a result, corporate earnings are likely to continue to beat expectations throughout the next few quarters. Valuation multiples in most market sectors are not stretched, nor are they even expensive, as demand continues to gradually return to the economy while earnings in most sectors should continue to show improvement. Within sectors, the Fund remains positively exposed to information technology and industrials companies. Overall investment was depressed by the recent recession, but evidence continues to build that corporations and the economy at large are becoming more willing and able to use capital for investment. We are stock-pickers by nature and invest for the longer term amid many types of market environments. Even as questions about Greece’s ongoing credit problems resurrect the painful memory of the global credit crisis or, similarly, as markets digest the reforms being made to the health-care system and potential reforms to the financial system, we remain comfortable with the quality of the fundamentals of the companies that we hold in the Fund.
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
2010 Semiannual Report 5
| Fund Performance | Nationwide Growth Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 17.00% | 33.98% | 4.31% | -4.35% | |||||||||||||
| w/SC2 | 10.28% | 26.27% | 3.09% | -4.91% | ||||||||||||||
| Class B | w/o SC1 | 16.64% | 33.14% | 3.64% | -5.24% | |||||||||||||
| w/SC3 | 11.64% | 28.14% | 3.29% | -5.24% | ||||||||||||||
Class C4 | w/o SC1 | 16.64% | 33.14% | 3.63% | -4.99% | |||||||||||||
| w/SC5 | 15.64% | 32.14% | 3.63% | -4.99% | ||||||||||||||
| Class D | w/o SC1 | 17.09% | 34.38% | 4.64% | -4.05% | |||||||||||||
| w/SC6 | 11.78% | 28.27% | 3.68% | -4.49% | ||||||||||||||
Class R24,7,8 | 16.76% | 33.84% | 4.07% | -4.37% | ||||||||||||||
Institutional Service Class4,7 | 17.39% | 34.73% | 4.66% | -4.02% | ||||||||||||||
Institutional Class4,7 | 17.27% | 34.61% | 4.68% | -4.04% | ||||||||||||||
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% 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
| Gross | Net | |||||||||||
| Expense | Expense | |||||||||||
| Ratio* | Ratio* | |||||||||||
| Class A | 1.65% | 1.43% | ||||||||||
| Class B | 2.34% | 2.12% | ||||||||||
| Class C | 2.34% | 2.12% | ||||||||||
| Class D | 1.35% | 1.13% | ||||||||||
| Class R2 | 2.04% | 1.82% | ||||||||||
| Institutional Service Class | 1.34% | 1.12% | ||||||||||
| Institutional Class | 1.34% | 1.12% | ||||||||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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 04/30/10. 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 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Growth Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,170.00 | 6.83 | 1.27 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.50 | 6.36 | 1.27 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,166.40 | 10.47 | 1.95 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.12 | 9.74 | 1.95 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,166.40 | 10.47 | 1.95 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.12 | 9.74 | 1.95 | |||||||||||||||
| Class D Shares | Actual | 1,000.00 | 1,170.90 | 5.11 | 0.95 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.08 | 4.76 | 0.95 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,167.60 | 7.79 | 1.45 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,017.60 | 7.25 | 1.45 | |||||||||||||||
| Institutional Service Class | Actual | 1,000.00 | 1,173.90 | 5.28 | 0.98 | |||||||||||||||
| Shares | Hypothetical | b | 1,000.00 | 1,019.93 | 4.91 | 0.98 | ||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,172.70 | 5.28 | 0.98 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.93 | 4.91 | 0.98 | |||||||||||||||
| a | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with Securities and Exchange Commission guidelines. | |
| b | Represents the hypothetical 5% return before expenses. |
2010 Semiannual Report 7
| Portfolio Summary | Nationwide Growth Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 97 | .2% | ||
| Mutual Fund | 2 | .7% | ||
| Repurchase Agreement | 0 | .3% | ||
| Liabilities in excess of other assets | (0 | .2)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Computers & Peripherals | 9 | .5% | ||
| Semiconductors & Semiconductor Equipment | 7 | .7% | ||
| Machinery | 6 | .8% | ||
| Communications Equipment | 5 | .7% | ||
| Health Care Equipment & Supplies | 5 | .2% | ||
| Software | 5 | .0% | ||
| Pharmaceuticals | 4 | .8% | ||
| Hotels, Restaurants & Leisure | 3 | .7% | ||
| Internet Software & Services | 3 | .7% | ||
| Information Technology Services | 3 | .2% | ||
| Other Industries * | 44 | .7% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. | |
| * | For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other. |
| Top Holdings † | ||||
| Apple, Inc. | 5 | .0% | ||
| Cisco Systems, Inc. | 3 | .5% | ||
| Intel Corp. | 2 | .8% | ||
| Hewlett-Packard Co. | 2 | .7% | ||
| Invesco AIM Liquid Assets Portfolio | 2 | .7% | ||
| Google, Inc., Class A | 2 | .6% | ||
| Target Corp. | 2 | .3% | ||
| Oracle Corp. | 2 | .2% | ||
| 3M Co. | 2 | .1% | ||
| Microsoft Corp. | 2 | .1% | ||
| Other Holdings * | 72 | .0% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
8 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Growth Fund
| Common Stocks 97.2% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 3.1% | ||||||||
| Boeing Co. (The) | 3,800 | $ | 275,234 | |||||
| ITT Corp. | 6,500 | 361,205 | ||||||
| Precision Castparts Corp. | 13,100 | 1,681,254 | ||||||
| Raytheon Co. | 25,150 | 1,466,245 | ||||||
| United Technologies Corp. | 9,360 | 701,532 | ||||||
| 4,485,470 | ||||||||
Auto Components 0.8% | ||||||||
| BorgWarner, Inc.* | 17,700 | 767,118 | ||||||
| Johnson Controls, Inc. | 12,800 | 429,952 | ||||||
| 1,197,070 | ||||||||
Beverages 1.7% | ||||||||
| PepsiCo, Inc. | 38,140 | 2,487,491 | ||||||
Biotechnology 2.2% | ||||||||
| Amgen, Inc.* | 25,150 | 1,442,604 | ||||||
| Biogen Idec, Inc.* | 5,900 | 314,175 | ||||||
| Gilead Sciences, Inc.* | 35,760 | 1,418,599 | ||||||
| 3,175,378 | ||||||||
Capital Markets 0.8% | ||||||||
| BlackRock, Inc. | 1,750 | 322,000 | ||||||
| Northern Trust Corp. | 7,800 | 428,844 | ||||||
| T. Rowe Price Group, Inc. | 7,100 | 408,321 | ||||||
| 1,159,165 | ||||||||
Chemicals 2.4% | ||||||||
| Celanese Corp., Series A | 7,300 | 233,527 | ||||||
| Monsanto Co. | 4,400 | 277,464 | ||||||
| Potash Corp. of Saskatchewan, Inc. | 10,200 | 1,127,100 | ||||||
| Praxair, Inc. | 22,000 | 1,842,940 | ||||||
| 3,481,031 | ||||||||
Communications Equipment 5.7% | ||||||||
| Cisco Systems, Inc.* | 186,640 | 5,024,349 | ||||||
| F5 Networks, Inc.* | 16,500 | 1,129,095 | ||||||
| QUALCOMM, Inc. | 52,220 | 2,023,003 | ||||||
| 8,176,447 | ||||||||
Computers & Peripherals 9.5% | ||||||||
| Apple, Inc.* | 27,360 | 7,144,243 | ||||||
| EMC Corp.* | 50,450 | 959,054 | ||||||
| Hewlett-Packard Co. | 74,340 | 3,863,450 | ||||||
| International Business Machines Corp. | 10,670 | 1,376,430 | ||||||
| Western Digital Corp.* | 6,300 | 258,867 | ||||||
| 13,602,044 | ||||||||
Consumer Finance 0.7% | ||||||||
| Capital One Financial Corp. | 22,100 | 959,361 | ||||||
Containers & Packaging 0.1% | ||||||||
| Owens-Illinois, Inc.* | 5,850 | 207,324 | ||||||
Diversified Financial Services 0.9% | ||||||||
| JPMorgan Chase & Co. | 31,300 | 1,332,754 | ||||||
Diversified Telecommunication Services 0.1% | ||||||||
| Windstream Corp. | 15,800 | 174,590 | ||||||
Electric Utilities 0.2% | ||||||||
| NV Energy, Inc. | 19,400 | 242,306 | ||||||
Electrical Equipment 0.8% | ||||||||
| Emerson Electric Co. | 22,500 | 1,175,175 | ||||||
Energy Equipment & Services 2.9% | ||||||||
| Cameron International Corp.* | 35,902 | 1,416,693 | ||||||
| Halliburton Co. | 61,930 | 1,898,155 | ||||||
| Helmerich & Payne, Inc. | 6,800 | 276,216 | ||||||
| Schlumberger Ltd. | 7,970 | 569,217 | ||||||
| 4,160,281 | ||||||||
Food & Staples Retailing 1.8% | ||||||||
| Costco Wholesale Corp. | 9,700 | 573,076 | ||||||
| CVS Caremark Corp. | 31,749 | 1,172,491 | ||||||
| Wal-Mart Stores, Inc. | 16,200 | 869,130 | ||||||
| 2,614,697 | ||||||||
Food Products 1.2% | ||||||||
| Kellogg Co. | 23,450 | 1,288,343 | ||||||
| Mead Johnson Nutrition Co. | 8,400 | 433,524 | ||||||
| 1,721,867 | ||||||||
Health Care Equipment & Supplies 5.2% | ||||||||
| Baxter International, Inc. | 17,790 | 840,044 | ||||||
| Hill-Rom Holdings, Inc. | 52,800 | 1,674,288 | ||||||
| Intuitive Surgical, Inc.* | 2,400 | 865,344 | ||||||
| Kinetic Concepts, Inc.* | 6,200 | 268,460 | ||||||
| Masimo Corp. | �� | 18,350 | 429,573 | |||||
| Medtronic, Inc. | 10,800 | 471,852 | ||||||
| ResMed, Inc.* | 3,600 | 246,348 | ||||||
| St. Jude Medical, Inc.* | 56,450 | 2,304,289 | ||||||
| Stryker Corp. | 3,600 | 206,784 | ||||||
| Varian Medical Systems, Inc.* | 2,700 | 152,226 | ||||||
| 7,459,208 | ||||||||
Health Care Providers & Services 1.0% | ||||||||
| Express Scripts, Inc.* | 14,184 | 1,420,244 | ||||||
Hotels, Restaurants & Leisure 3.7% | ||||||||
| Darden Restaurants, Inc. | 10,100 | 451,975 | ||||||
| P.F. Chang’s China Bistro, Inc.* | 22,600 | 986,264 | ||||||
| Starbucks Corp. | 37,065 | 962,949 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 34,100 | 1,858,791 | ||||||
| WMS Industries, Inc.* | 21,150 | 1,057,923 | ||||||
| 5,317,902 | ||||||||
2010 Semiannual Report 9
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Growth Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Household Durables 0.2% | ||||||||
| Garmin Ltd. (a) | 7,750 | $ | 289,695 | |||||
Household Products 2.3% | ||||||||
| Church & Dwight Co., Inc. | 7,000 | 484,750 | ||||||
| Clorox Co. | 10,000 | 647,000 | ||||||
| Colgate-Palmolive Co. | 23,100 | 1,942,710 | ||||||
| Procter & Gamble Co. (The) | 3,930 | 244,289 | ||||||
| 3,318,749 | ||||||||
Industrial Conglomerates 2.1% | ||||||||
| 3M Co. | 34,450 | 3,054,681 | ||||||
Information Technology Services 3.2% | ||||||||
| Alliance Data Systems Corp.* | 7,600 | 570,456 | ||||||
| Cognizant Technology Solutions Corp., Class A* | 34,020 | 1,741,144 | ||||||
| Visa, Inc., Class A | 24,420 | 2,203,416 | ||||||
| 4,515,016 | ||||||||
Internet & Catalog Retail 1.8% | ||||||||
| Amazon.com, Inc.* | 3,300 | 452,298 | ||||||
| Netflix, Inc.* | 2,650 | 261,740 | ||||||
| NutriSystem, Inc. (a) | 29,300 | 566,369 | ||||||
| Priceline.com, Inc.* | 4,691 | 1,229,277 | ||||||
| 2,509,684 | ||||||||
Internet Software & Services 3.7% | ||||||||
| Google, Inc., Class A* | 7,010 | 3,683,334 | ||||||
| Yahoo!, Inc.* | 96,600 | 1,596,798 | ||||||
| 5,280,132 | ||||||||
Leisure Equipment & Products 0.7% | ||||||||
| Hasbro, Inc. | 16,100 | 617,596 | ||||||
| Mattel, Inc. | 15,900 | 366,495 | ||||||
| 984,091 | ||||||||
Life Sciences Tools & Services 1.3% | ||||||||
| Pharmaceutical Product Development, Inc. | 13,200 | 363,000 | ||||||
| Waters Corp.* | 21,300 | 1,533,387 | ||||||
| 1,896,387 | ||||||||
Machinery 6.8% | ||||||||
| Caterpillar, Inc. | 6,400 | 435,776 | ||||||
| Cummins, Inc. | 35,000 | 2,528,050 | ||||||
| Danaher Corp. | 31,120 | 2,622,794 | ||||||
| Deere & Co. | 24,050 | 1,438,671 | ||||||
| PACCAR, Inc. | 9,000 | 418,680 | ||||||
| Parker Hannifin Corp. | 32,700 | 2,262,186 | ||||||
| 9,706,157 | ||||||||
Metals & Mining 0.4% | ||||||||
| Allegheny Technologies, Inc. | 10,100 | 540,047 | ||||||
Multiline Retail 2.3% | ||||||||
| Target Corp. | 56,550 | 3,215,999 | ||||||
Oil, Gas & Consumable Fuels 3.0% | ||||||||
| Apache Corp. | 8,080 | 822,221 | ||||||
| EOG Resources, Inc. | 10,400 | 1,166,048 | ||||||
| Exxon Mobil Corp. | 5,500 | 373,175 | ||||||
| Peabody Energy Corp. | 22,500 | 1,051,200 | ||||||
| Southwestern Energy Co.* | 20,800 | 825,344 | ||||||
| 4,237,988 | ||||||||
Pharmaceuticals 4.9% | ||||||||
| Abbott Laboratories | 53,350 | 2,729,386 | ||||||
| Allergan, Inc. | 22,950 | 1,461,686 | ||||||
| Bristol-Myers Squibb Co. | 50,000 | 1,264,500 | ||||||
| Johnson & Johnson | 23,020 | 1,480,186 | ||||||
| 6,935,758 | ||||||||
Real Estate Investment Trusts (REITs) 0.2% | ||||||||
| Plum Creek Timber Co., Inc. | 7,600 | 302,480 | ||||||
Real Estate Management & Development 0.4% | ||||||||
| Jones Lang LaSalle, Inc. | 7,700 | 607,376 | ||||||
Road & Rail 1.2% | ||||||||
| Canadian National Railway Co. | 18,400 | 1,100,136 | ||||||
| Kansas City Southern* | 13,716 | 556,184 | ||||||
| 1,656,320 | ||||||||
Semiconductors & Semiconductor Equipment 7.7% | ||||||||
| Analog Devices, Inc. | 59,900 | 1,792,807 | ||||||
| Broadcom Corp., Class A | 32,400 | 1,117,476 | ||||||
| Intel Corp. | 177,730 | 4,057,576 | ||||||
| Marvell Technology Group Ltd.* | 126,550 | 2,613,257 | ||||||
| Teradyne, Inc.* | 66,400 | 812,072 | ||||||
| Texas Instruments, Inc. | 8,200 | 213,282 | ||||||
| Xilinx, Inc. | 14,300 | 368,654 | ||||||
| 10,975,124 | ||||||||
Software 5.0% | ||||||||
| McAfee, Inc.* | 27,600 | 959,100 | ||||||
| Microsoft Corp. | 98,220 | 2,999,639 | ||||||
| Oracle Corp. | 122,290 | 3,159,973 | ||||||
| 7,118,712 | ||||||||
Specialty Retail 2.5% | ||||||||
| Aeropostale, Inc.* | 20,875 | 606,210 | ||||||
| Lowe’s Cos., Inc. | 43,600 | 1,182,432 | ||||||
| Urban Outfitters, Inc.* | 45,500 | 1,706,705 | ||||||
| 3,495,347 | ||||||||
Textiles, Apparel & Luxury Goods 0.7% | ||||||||
| Coach, Inc. | 22,200 | 926,850 | ||||||
Tobacco 1.0% | ||||||||
| Philip Morris International, Inc. | 29,390 | 1,442,461 | ||||||
10 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Trading Companies & Distributors 1.0% | ||||||||
| W.W. Grainger, Inc. | 13,320 | $ | 1,472,393 | |||||
Total Common Stocks (cost $116,310,544) | 139,031,252 | |||||||
| Mutual Fund 2.7% | ||||||||
Money Market Fund 2.7% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (b) | 3,842,655 | 3,842,655 | ||||||
Total Mutual Fund (cost $3,842,655) | 3,842,655 | |||||||
| Repurchase Agreement 0.3% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 04/30/10, due 05/03/10, repurchase price $364,090, collateralized by U.S. Government Agency Mortgages ranging from 4.00% - 6.00%, maturing 07/01/23 - 04/01/40; total market value of $371,403. (c) | $ | 364,084 | 364,084 | |||||
Total Repurchase Agreement (cost $364,084) | 364,084 | |||||||
Total Investments (cost $120,517,283) (d) — 100.2% | 143,237,991 | |||||||
Liabilities in excess of other assets — (0.2%) | (335,909 | ) | ||||||
NET ASSETS — 100.0% | $ | 142,902,082 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $343,727. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (c) | The security was purchased with cash collateral held from securities on loan. The total value of this security as of April 30, 2010 was $364,084. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd. | Limited | |
| REIT | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 11
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Growth Fund | |||||
Assets: | |||||
Investments, at value (cost $120,153,199) * | $ | 142,873,907 | |||
| Repurchase agreement, at value and cost | 364,084 | ||||
| Total Investments | 143,237,991 | ||||
| Dividends receivable | 89,756 | ||||
| Security lending income receivable | 1,334 | ||||
| Receivable for investments sold | 3,777,646 | ||||
| Receivable for capital shares issued | 3,151 | ||||
| Prepaid expenses and other assets | 48,194 | ||||
| Total Assets | 147,158,072 | ||||
Liabilities: | |||||
| Payable for investments purchased | 3,263,452 | ||||
| Payable for capital shares redeemed | 358,629 | ||||
| Cash Overdraft | 1,195 | ||||
| Payable upon return of securities loaned (Note 2) | 364,084 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 71,467 | ||||
| Fund administration fees | 13,825 | ||||
| Distribution fees | 4,725 | ||||
| Administrative servicing fees | 18,688 | ||||
| Accounting and transfer agent fees | 89,223 | ||||
| Trustee fees | 1,854 | ||||
| Custodian fees | 12,146 | ||||
| Compliance program costs (Note 3) | 1,144 | ||||
| Professional fees | 10,604 | ||||
| Printing fees | 44,954 | ||||
| Total Liabilities | 4,255,990 | ||||
Net Assets | $ | 142,902,082 | |||
Represented by: | |||||
| Capital | $ | 227,665,295 | |||
| Accumulated undistributed net investment income | 110,338 | ||||
| Accumulated net realized losses from investment transactions | (107,594,259 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 22,720,708 | ||||
Net Assets | $ | 142,902,082 | |||
Net Assets: | |||||
| Class A Shares | $ | 11,850,557 | |||
| Class B Shares | 2,015,879 | ||||
| Class C Shares | 596,298 | ||||
| Class D Shares | 128,236,558 | ||||
| Class R2 Shares | 200,517 | ||||
| Institutional Service Class Shares | 1,138 | ||||
| Institutional Class Shares | 1,135 | ||||
| Total | $ | 142,902,082 | |||
| * | Includes value of securities on loan of $343,727 (Note 2) |
The accompanying notes are an integral part of these financial statements.
12 Semiannual Report 2010
| Nationwide | |||||
| Growth Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 1,544,516 | ||||
| Class B Shares | 293,494 | ||||
| Class C Shares | 86,813 | ||||
| Class D Shares | 16,266,993 | ||||
| Class R2 Shares | 26,101 | ||||
| Institutional Service Class Shares | 144 | ||||
| Institutional Class Shares | 144 | ||||
| Total | 18,218,205 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 7.67 | |||
| Class B Shares (a) | $ | 6.87 | |||
| Class C Shares (b) | $ | 6.87 | |||
| Class D Shares | $ | 7.88 | |||
| Class R2 Shares | $ | 7.68 | |||
| Institutional Service Class Shares | $ | 7.90 | |||
| Institutional Class Shares | $ | 7.88 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 8.14 | |||
| Class D Shares | $ | 8.25 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| Class D Shares | 4.50 | % | |||
| (a) | For Class B Shares, the redemption price per share varies by the length of time shares are held. | |
| (b) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 13
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Growth Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income | $ | 877,531 | |||
| Income from securities lending (Note 2) | 10,984 | ||||
| Foreign tax withholding | (1,134 | ) | |||
| Total Income | 887,381 | ||||
EXPENSES: | |||||
| Investment advisory fees | 408,648 | ||||
| Fund administration fees | 76,868 | ||||
| Distribution fees Class A | 14,005 | ||||
| Distribution fees Class B | 9,588 | ||||
| Distribution fees Class C | 2,602 | ||||
| Distribution fees Class R2 | 518 | ||||
| Administrative servicing fees Class A | 4,363 | ||||
| Registration and filing fees | 29,400 | ||||
| Professional fees | 8,828 | ||||
| Printing fees | 33,675 | ||||
| Trustee fees | 2,943 | ||||
| Custodian fees | 23,193 | ||||
| Accounting and transfer agent fees | 57,678 | ||||
| Compliance program costs (Note 3) | 670 | ||||
| Other | 3,894 | ||||
| Total expenses before earnings credit | 676,873 | ||||
| Earnings credit (Note 5) | (1,867 | ) | |||
| Net Expenses | 675,006 | ||||
NET INVESTMENT INCOME | 212,375 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 9,680,836 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 11,729,718 | ||||
| Net realized/unrealized gains from investments | 21,410,554 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 21,622,929 | |||
The accompanying notes are an integral part of these financial statements.
14 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Growth Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 212,375 | $ | 307,842 | ||||||
| Net realized gains/(losses) from investment transactions | 9,680,836 | (22,813,040 | ) | |||||||
| Net change in unrealized appreciation from investments | 11,729,718 | 39,628,459 | ||||||||
| Change in net assets resulting from operations | 21,622,929 | 17,123,261 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (7,553 | ) | (2,675 | ) | ||||||
| Class B | – | – | ||||||||
| Class C | – | – | ||||||||
| Class D | (184,561 | ) | (310,729 | ) | ||||||
| Class R2 (a) | (69 | ) | – | |||||||
| Institutional Service Class | (2 | ) | (3 | ) | ||||||
| Institutional Class | (2 | ) | (3 | ) | ||||||
| Change in net assets from shareholder distributions | (192,187 | ) | (313,410 | ) | ||||||
| Change in net assets from capital transactions | (7,182,372 | ) | (9,143,972 | ) | ||||||
| Change in net assets | 14,248,370 | 7,665,879 | ||||||||
Net Assets: | ||||||||||
| Beginning of period | 128,653,712 | 120,987,833 | ||||||||
| End of period | $ | 142,902,082 | $ | 128,653,712 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 110,338 | $ | 90,150 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,077,278 | $ | 1,322,686 | ||||||
| Dividends reinvested | 7,184 | 2,565 | ||||||||
| Cost of shares redeemed (b) | (1,282,314 | ) | (2,323,668 | ) | ||||||
| Total Class A | (197,852 | ) | (998,417 | ) | ||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 86,391 | 186,500 | ||||||||
| Dividends reinvested | – | – | ||||||||
| Cost of shares redeemed (b) | (203,942 | ) | (605,858 | ) | ||||||
| Total Class B | (117,551 | ) | (419,358 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 85,462 | 2,008,653 | ||||||||
| Dividends reinvested | – | – | ||||||||
| Cost of shares redeemed (b) | (45,811 | ) | (2,163,299 | ) | ||||||
| Total Class C | 39,651 | (154,646 | ) | |||||||
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.
2010 Semiannual Report 15
Statements of Changes in Net Assets (Continued)
| Nationwide Growth Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | $ | 1,566,791 | $ | 2,851,464 | ||||||
| Dividends reinvested | 178,986 | 301,227 | ||||||||
| Cost of shares redeemed (b) | (8,630,120 | ) | (10,891,682 | ) | ||||||
| Total Class D | (6,884,343 | ) | (7,738,991 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 6,821 | 175,282 | ||||||||
| Dividends reinvested | 27 | – | ||||||||
| Cost of shares redeemed | $ | (28,884 | ) | $ | (7,848 | ) | ||||
| Total Class R2 | (22,036 | ) | 167,434 | |||||||
Institutional Service Class Shares | ||||||||||
| Proceeds from shares issued | 1,000 | – | ||||||||
| Dividends reinvested | 2 | 3 | ||||||||
| Cost of shares redeemed | (1,120 | ) | – | |||||||
| Total Institutional Service Class | (118 | ) | 3 | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,000 | – | ||||||||
| Dividends reinvested | 2 | 3 | ||||||||
| Cost of shares redeemed | (1,125 | ) | – | |||||||
| Total Institutional Class | (123 | ) | 3 | |||||||
| Change in net assets from capital transactions | $ | (7,182,372 | ) | $ | (9,143,972 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 152,023 | 234,079 | ||||||||
| Reinvested | 1,023 | 378 | ||||||||
| Redeemed | (177,466 | ) | (413,977 | ) | ||||||
| Total Class A Shares | (24,420 | ) | (179,520 | ) | ||||||
Class B Shares | ||||||||||
| Issued | 13,249 | 36,073 | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | (31,686 | ) | (120,680 | ) | ||||||
| Total Class B Shares | (18,437 | ) | (84,607 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 13,636 | 420,776 | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | (7,359 | ) | (461,469 | ) | ||||||
| Total Class C Shares | 6,277 | (40,693 | ) | |||||||
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 2010
| Nationwide Growth Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class D Shares | ||||||||||
| Issued | 210,356 | 487,309 | ||||||||
| Reinvested | 24,860 | 49,720 | ||||||||
| Redeemed | (1,162,710 | ) | (1,893,943 | ) | ||||||
| Total Class D Shares | (927,494 | ) | (1,356,914 | ) | ||||||
Class R2 Shares (a) | ||||||||||
| Issued | 940 | 30,003 | ||||||||
| Reinvested | 4 | – | ||||||||
| Redeemed | (3,777 | ) | (1,243 | ) | ||||||
| Total Class R2 Shares | (2,833 | ) | 28,760 | |||||||
Institutional Service Class Shares | ||||||||||
| Issued | 145 | – | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | (159 | ) | – | |||||||
| Total Institutional Service Class Shares | (14 | ) | – | |||||||
Institutional Class Shares | ||||||||||
| Issued | 145 | – | ||||||||
| Reinvested | – | – | ||||||||
| Redeemed | (160 | ) | – | |||||||
| Total Institutional Class Shares | (15 | ) | – | |||||||
| Total change in shares | (966,936 | ) | (1,632,974 | ) | ||||||
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.
2010 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net Asset | Net Assets | Expenses | Income (Loss) | to Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Total | Redemption | Value, End | Total | at End of | to Average | to Average | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .56 | – | 1 | .11 | 1 | .11 | – | – | – | $ | 7 | .67 | 17 | .00% | $ | 11,850,557 | 1 | .27% | 0 | .03% | 1 | .27% | 53 | .37% | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 5 | .69 | – | 0 | .87 | 0 | .87 | – | – | – | $ | 6 | .56 | 15 | .32% | $ | 10,297,135 | 1 | .46% | (0 | .02%) | 1 | .46% | 164 | .73% | |||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||
Class B Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 5 | .89 | (0 | .02) | 1 | .00 | 0 | .98 | – | – | – | $ | 6 | .87 | 16 | .64% | $ | 2,015,879 | 1 | .95% | (0 | .64%) | 1 | .95% | 53 | .37% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 5 | .14 | (0 | .03) | 0 | .78 | 0 | .75 | – | – | – | $ | 5 | .89 | 14 | .59% | $ | 1,837,536 | 2 | .12% | (0 | .67%) | 2 | .12% | 164 | .73% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 5 | .89 | (0 | .02) | 1 | .00 | 0 | .98 | – | – | – | $ | 6 | .87 | 16 | .64% | $ | 596,298 | 1 | .95% | (0 | .64%) | 1 | .95% | 53 | .37% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 5 | .14 | (0 | .03) | 0 | .78 | 0 | .75 | – | – | – | $ | 5 | .89 | 14 | .59% | $ | 474,424 | 2 | .12% | (0 | .67%) | 2 | .12% | 164 | .73% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
18 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Growth Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net Asset | Net Assets | Expenses | Income (Loss) | to Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Total | Redemption | Value, End | Total | at End of | to Average | to Average | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class D Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .74 | 0 | .01 | 1 | .14 | 1 | .15 | (0 | .01) | (0 | .01) | – | $ | 7 | .88 | 17 | .09% | $ | 128,236,558 | 0 | .95% | 0 | .36% | 0 | .95% | 53 | .37% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 5 | .84 | 0 | .02 | 0 | .90 | 0 | .92 | (0 | .02) | (0 | .02) | – | $ | 6 | .74 | 15 | .74% | $ | 115,852,238 | 1 | .13% | 0 | .31% | 1 | .13% | 164 | .73% | ||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||
Class R2 Shares(h) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .57 | (0 | .01) | 1 | .12 | 1 | .11 | – | – | – | $ | 7 | .68 | 16 | .76% | $ | 200,517 | 1 | .45% | (0 | .14%) | 1 | .45% | 53 | .37% | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 5 | .71 | (0 | .02) | 0 | .88 | 0 | .86 | – | – | – | $ | 6 | .57 | 15 | .24% | $ | 190,238 | 1 | .60% | (0 | .30%) | 1 | .60% | 164 | .73% | ||||||||||||||||||||||||||||||||||||||||||
| 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% | ||||||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .76 | 0 | .01 | 1 | .14 | 1 | .15 | (0 | .01) | (0 | .01) | – | $ | 7 | .90 | 17 | .39% | $ | 1,138 | 0 | .98% | 0 | .31% | 0 | .98% | 53 | .37% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 5 | .85 | 0 | .02 | 0 | .91 | 0 | .93 | (0 | .02) | (0 | .02) | – | $ | 6 | .76 | 15 | .56% | $ | 1,068 | 1 | .16% | 0 | .28% | 1 | .16% | 164 | .73% | ||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 19
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Growth Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | Ratio of Net | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Net | Unrealized | Ratio of | Investment | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Investment | Gains | Total | Net | Net Asset | Net Assets | Expenses | Income (Loss) | to Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Income | (Losses) from | from | Investment | Total | Redemption | Value, End | Total | at End of | to Average | to Average | Net | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| of Period | (Loss) | Investments | Operations | Income | Distributions | Fees | of Period | Return (a)(b) | Period | Net Assets (c) | Net Assets (c) | Assets (c)(d) | Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 6 | .75 | 0 | .01 | 1 | .13 | 1 | .14 | (0 | .01) | (0 | .01) | – | $ | 7 | .88 | 17 | .27% | $ | 1,135 | 0 | .98% | 0 | .31% | 0 | .98% | 53 | .37% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 5 | .83 | 0 | .02 | 0 | .92 | 0 | .94 | (0 | .02) | (0 | .02) | – | $ | 6 | .75 | 15 | .78% | $ | 1,073 | 1 | .15% | 0 | .27% | 1 | .15% | 164 | .73% | ||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
20 Semiannual Report 2010
| 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, 2010, the Nationwide Fund (Class A at NAV) returned 13.95% versus 15.66% for its benchmark, the Standard & Poor’s 500® (S&P 500) Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Large-Cap Core Funds (consisting of 980 funds as of April 30, 2010) was 14.38% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s investments in the energy and consumer discretionary sectors provided the most positive relative returns to the Fund during the reporting period. The top individual stock contributors were Fund holdings in hotel chain operator Starwood Hotels & Resorts Worldwide, Inc.; oil and gas exploration and production company Exxon Mobil Corp.; and Emerson Electric Co., a diversified global technology company. Shares of Starwood Hotels & Resorts Worldwide rose during the reporting period as the company’s business continued to improve amid a recovery in corporate travel. The Fund’s relative underweight position in Exxon Mobil had a positive impact on Fund returns; the stock posted a loss during the reporting period. Emerson Electric saw improving orders within its industrial businesses throughout the reporting period, and the company revealed its longer-term expectations for strategic expansion into emerging markets.
What areas of investment detracted from Fund performance?
Fund performance was hampered by the returns of Fund holdings in the health-care, industrials and financials sectors. The most significant detractors to Fund performance among individual Fund positions included health-care equipment manufacturer Baxter International, Inc.; security software company McAfee, Inc.; and biopharmaceutical company Gilead Sciences, Inc. Shares of Baxter International and Gilead Sciences fell toward the end of the reporting period, mainly due to the impact of health-care reform but also because of company-specific headwinds. Baxter’s management discussed competitive issues within its plasma business, while, similarly, Gilead noted the potential for pricing pressure surrounding its core drug franchise. Earlier in the reporting period, investors became impatient with McAfee as the company had difficulty converting non-paying trial customers to paying customers because of internal execution issues and economic weakness. Toward the end of the reporting period, the company released an earnings statement that showed a negative impact from foreign currency exchange and delays in signing several enterprise clients. We maintain Fund positions in all three companies.
What is your outlook for the near term?
As companies continue to report strong earnings, they generally are still benefiting from efficiency measures put in place during the past year. As a result, corporate earnings are likely to continue to beat expectations throughout the next few quarters. Valuation multiples in most market sectors are not stretched, nor are they even expensive, as demand continues to gradually return to the economy while earnings in most sectors should continue to show improvement. Within sectors, the Fund remains positively exposed to information technology and industrials companies. Overall investment was depressed by the recent recession, but evidence continues to build that corporations and the economy at large are becoming more willing and able to use capital for investment. We are stock-pickers by nature and invest for the longer term amid many types of market environments. Even as questions about Greece’s ongoing credit problems resurrect the painful memory of the global credit crisis or, similarly, as markets digest the reforms being made to the health-care system and potential reforms to the financial system, we remain comfortable with the quality of the fundamentals of the companies that we hold in the Fund.
Subadviser:
Aberdeen Asset Management Inc.
Aberdeen Asset Management Inc.
Portfolio Managers:
(Fundamental Sleeve)
Paul Atkinson and Francis Radano III, CFA
(Fundamental Sleeve)
Paul Atkinson and Francis Radano III, CFA
(Quantitative Sleeve)
Joseph A. Cerniglia, CFA and Jarett Fisher, CFA
Joseph A. Cerniglia, CFA and Jarett Fisher, CFA
2010 Semiannual Report 21
| Fund Performance | Nationwide Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||||
| Class A | w/o SC1 | 13.95% | 35.76% | 1.27% | -0.03% | |||||||||||||
| w/SC2 | 7.42% | 27.97% | 0.08% | -0.62% | ||||||||||||||
| Class B | w/o SC1 | 13.62% | 34.95% | 0.57% | -0.76% | |||||||||||||
| w/SC3 | 8.62% | 29.95% | 0.31% | -0.76% | ||||||||||||||
Class C4 | w/o SC1 | 13.66% | 34.92% | 0.58% | -0.66% | |||||||||||||
| w/SC5 | 12.66% | 33.92% | 0.58% | -0.66% | ||||||||||||||
| Class D | w/o SC1 | 14.05% | 36.13% | 1.50% | 0.20% | |||||||||||||
| w/SC6 | 8.96% | 30.00% | 0.58% | -0.26% | ||||||||||||||
Class R24,7,8 | 13.90% | 35.62% | 1.07% | -0.08% | ||||||||||||||
Institutional Class4,7 | 14.20% | 36.30% | 1.63% | 0.26% | ||||||||||||||
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), 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 | 1.17% | |||
| Class B | 1.86% | |||
| Class C | 1.86% | |||
| Class D | 0.92% | |||
| Class R2 | 1.56% | |||
| Institutional Class | 0.86% | |||
| * | Current effective prospectus dated May 6, 2010. Please see the Fund’s most recent prospectus for details. |
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 04/30/10. 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. |
22 Semiannual Report 2010
| 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, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Class A Shares | Actual | 1,000.00 | 1,139.50 | 5.84 | 1.10 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,019.34 | 5.51 | 1.10 | |||||||||||||||
| Class B Shares | Actual | 1,000.00 | 1,136.20 | 9.48 | 1.79 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.92 | 8.95 | 1.79 | |||||||||||||||
| Class C Shares | Actual | 1,000.00 | 1,136.60 | 9.48 | 1.79 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,015.92 | 8.95 | 1.79 | |||||||||||||||
| Class D Shares | Actual | 1,000.00 | 1,140.50 | 4.51 | 0.85 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,020.58 | 4.26 | 0.85 | |||||||||||||||
| Class R2 Shares | Actual | 1,000.00 | 1,139.00 | 6.84 | 1.29 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,018.40 | 6.46 | 1.29 | |||||||||||||||
| Institutional Class Shares | Actual | 1,000.00 | 1,142.00 | 3.66 | 0.69 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,021.37 | 3.46 | 0.69 | |||||||||||||||
| 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. |
2010 Semiannual Report 23
| Portfolio Summary | Nationwide Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Common Stocks | 97 | .6% | ||
| Mutual Fund | 1 | .9% | ||
| Repurchase Agreements | 1 | .0% | ||
| Liabilities in excess of other assets | (0 | .5)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Oil, Gas & Consumable Fuels | 8 | .3% | ||
| Communications Equipment | 4 | .5% | ||
| Computers & Peripherals | 4 | .0% | ||
| Specialty Retail | 3 | .9% | ||
| Food Products | 3 | .9% | ||
| Software | 3 | .8% | ||
| Food & Staples Retailing | 3 | .8% | ||
| Pharmaceuticals | 3 | .7% | ||
| Machinery | 3 | .7% | ||
| Aerospace & Defense | 3 | .7% | ||
| Other Industries * | 56 | .7% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. | |
| * | For purposes of listing top industries and top holdings, the repurchase agreements are included as part of Other. |
| Top Holdings † | ||||
| Cisco Systems, Inc. | 2 | .2% | ||
| JPMorgan Chase & Co. | 2 | .2% | ||
| CVS Caremark Corp. | 2 | .1% | ||
| United Technologies Corp. | 2 | .0% | ||
| Intel Corp. | 2 | .0% | ||
| PepsiCo, Inc. | 1 | .9% | ||
| Exxon Mobil Corp. | 1 | .9% | ||
| Hess Corp. | 1 | .9% | ||
| Invesco AIM Liquid Assets Portfolio | 1 | .9% | ||
| Oracle Corp. | 1 | .8% | ||
| Other Holdings * | 80 | .1% | ||
| 100 | .0% | |||
The accompanying notes are an integral part of these financial statements.
24 Semiannual Report 2010
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Fund
| Common Stocks 97.6% | ||||||||
| Shares | Market Value | |||||||
Aerospace & Defense 3.7% | ||||||||
| Boeing Co. (The) | 44,600 | $ | 3,230,378 | |||||
| ITT Corp. | 180,200 | 10,013,714 | ||||||
| United Technologies Corp. | 212,939 | 15,959,778 | ||||||
| 29,203,870 | ||||||||
Air Freight & Logistics 0.4% | ||||||||
| FedEx Corp. | 37,000 | 3,330,370 | ||||||
Auto Components 0.9% | ||||||||
| BorgWarner, Inc.* | 126,900 | 5,499,846 | ||||||
| Johnson Controls, Inc. | 41,709 | 1,401,005 | ||||||
| 6,900,851 | ||||||||
Automobiles 0.3% | ||||||||
| Ford Motor Co.* | 171,319 | 2,230,573 | ||||||
Beverages 2.0% | ||||||||
| PepsiCo, Inc. | 234,419 | 15,288,807 | ||||||
Biotechnology 1.6% | ||||||||
| Amgen, Inc.* | 18,969 | 1,088,062 | ||||||
| Gilead Sciences, Inc.* | 293,200 | 11,631,244 | ||||||
| 12,719,306 | ||||||||
Capital Markets 2.5% | ||||||||
| Charles Schwab Corp. (The) | 305,800 | 5,898,882 | ||||||
| Goldman Sachs Group, Inc. (The) | 16,065 | 2,332,638 | ||||||
| Raymond James Financial, Inc. | 79,700 | 2,442,008 | ||||||
| State Street Corp. | 206,400 | 8,978,400 | ||||||
| 19,651,928 | ||||||||
Chemicals 3.1% | ||||||||
| Cytec Industries, Inc. | 67,500 | 3,244,050 | ||||||
| E.I. du Pont de Nemours & Co. | 70,200 | 2,796,768 | ||||||
| International Flavors & Fragrances, Inc. | 58,929 | 2,951,754 | ||||||
| Monsanto Co. | 87,300 | 5,505,138 | ||||||
| Praxair, Inc. | 117,600 | 9,851,352 | ||||||
| 24,349,062 | ||||||||
Commercial Banks 3.3% | ||||||||
| PNC Financial Services Group, Inc. | 51,300 | 3,447,873 | ||||||
| Royal Bank of Canada | 141,500 | 8,579,430 | ||||||
| SunTrust Banks, Inc. | 52,000 | 1,539,200 | ||||||
| Wells Fargo & Co. | 375,900 | 12,446,049 | ||||||
| 26,012,552 | ||||||||
Communications Equipment 4.5% | ||||||||
| Cisco Systems, Inc.* | 658,236 | 17,719,713 | ||||||
| JDS Uniphase Corp.* | 122,680 | 1,593,613 | ||||||
| Motorola, Inc.* | 430,846 | 3,046,081 | ||||||
| QUALCOMM, Inc. | 343,100 | 13,291,694 | ||||||
| 35,651,101 | ||||||||
Computers & Peripherals 4.0% | ||||||||
| Apple, Inc.* | 21,463 | 5,604,418 | ||||||
| EMC Corp.* | 444,100 | 8,442,341 | ||||||
| Hewlett-Packard Co. | 127,445 | 6,623,317 | ||||||
| International Business Machines Corp. | 67,911 | 8,760,519 | ||||||
| NCR Corp.* | 170,511 | 2,243,925 | ||||||
| 31,674,520 | ||||||||
Consumer Finance 1.3% | ||||||||
| American Express Co. | 89,000 | 4,104,680 | ||||||
| Capital One Financial Corp. | 144,592 | 6,276,739 | ||||||
| 10,381,419 | ||||||||
Diversified Financial Services 3.0% | ||||||||
| Bank of America Corp. | 370,299 | 6,602,431 | ||||||
| JPMorgan Chase & Co. | 404,330 | 17,216,372 | ||||||
| 23,818,803 | ||||||||
Diversified Telecommunication Services 1.5% | ||||||||
| AT&T, Inc. | 141,479 | 3,686,943 | ||||||
| TELUS Corp. | 134,449 | 4,974,004 | ||||||
| Verizon Communications, Inc. | 95,000 | 2,744,550 | ||||||
| 11,405,497 | ||||||||
Electric Utilities 0.4% | ||||||||
| Northeast Utilities | 104,960 | 2,916,838 | ||||||
Electrical Equipment 1.3% | ||||||||
| Emerson Electric Co. | 193,200 | 10,090,836 | ||||||
Electronic Equipment, Instruments & Components 0.3% | ||||||||
| Avnet, Inc.* | 67,400 | 2,154,778 | ||||||
Energy Equipment & Services 3.4% | ||||||||
| FMC Technologies, Inc.* | 37,400 | 2,531,606 | ||||||
| Halliburton Co. | 95,700 | 2,933,205 | ||||||
| Rowan Cos., Inc.* | 94,300 | 2,810,140 | ||||||
| Schlumberger Ltd. | 143,500 | 10,248,770 | ||||||
| Tidewater, Inc. | 147,700 | 7,918,197 | ||||||
| 26,441,918 | ||||||||
Food & Staples Retailing 3.8% | ||||||||
| Costco Wholesale Corp. | 45,300 | 2,676,324 | ||||||
| CVS Caremark Corp. | 442,460 | 16,340,048 | ||||||
| Kroger Co. (The) | 111,900 | 2,487,537 | ||||||
| Sysco Corp. | 131,000 | 4,131,740 | ||||||
| Wal-Mart Stores, Inc. | 83,866 | 4,499,411 | ||||||
| 30,135,060 | ||||||||
Food Products 3.9% | ||||||||
| Archer-Daniels-Midland Co. | 89,300 | 2,495,042 | ||||||
| Del Monte Foods Co. | 192,100 | 2,869,974 | ||||||
| Hormel Foods Corp. | 46,900 | 1,911,644 | ||||||
| Kellogg Co. | 167,600 | 9,207,944 | ||||||
| Kraft Foods, Inc., Class A | 403,400 | 11,940,640 | ||||||
2010 Semiannual Report 25
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Fund (Continued)
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Food Products (continued) | ||||||||
| Tyson Foods, Inc., Class A | 123,000 | $ | 2,409,570 | |||||
| 30,834,814 | ||||||||
Gas Utilities 0.8% | ||||||||
| Atmos Energy Corp. | 119,091 | 3,522,712 | ||||||
| UGI Corp. | 86,900 | 2,388,881 | ||||||
| 5,911,593 | ||||||||
Health Care Equipment & Supplies 2.6% | ||||||||
| Baxter International, Inc. | 236,900 | 11,186,418 | ||||||
| St. Jude Medical, Inc.* | 231,916 | 9,466,811 | ||||||
| 20,653,229 | ||||||||
Health Care Providers & Services 3.6% | ||||||||
| Aetna, Inc. | 207,957 | 6,145,129 | ||||||
| Cardinal Health, Inc. | 99,300 | 3,444,717 | ||||||
| McKesson Corp. | 48,905 | 3,169,533 | ||||||
| Medco Health Solutions, Inc.* | 44,900 | 2,645,508 | ||||||
| Quest Diagnostics, Inc. | 174,900 | 9,997,284 | ||||||
| UnitedHealth Group, Inc. | 103,700 | 3,143,147 | ||||||
| 28,545,318 | ||||||||
Hotels, Restaurants & Leisure 0.7% | ||||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 99,500 | 5,423,745 | ||||||
Household Durables 0.5% | ||||||||
| Stanley Black & Decker, Inc. | 37,257 | 2,315,522 | ||||||
| Whirlpool Corp. | 18,000 | 1,959,660 | ||||||
| 4,275,182 | ||||||||
Household Products 1.1% | ||||||||
| Procter & Gamble Co. (The) | 144,610 | 8,988,958 | ||||||
Industrial Conglomerates 2.0% | ||||||||
| 3M Co. | 100,000 | 8,867,000 | ||||||
| General Electric Co. | 372,353 | 7,022,578 | ||||||
| 15,889,578 | ||||||||
Information Technology Services 2.1% | ||||||||
| Alliance Data Systems Corp.* (a) | 115,200 | 8,646,912 | ||||||
| Cognizant Technology Solutions Corp., Class A* | 147,100 | 7,528,578 | ||||||
| 16,175,490 | ||||||||
Insurance 3.5% | ||||||||
| Aflac, Inc. | 93,500 | 4,764,760 | ||||||
| MetLife, Inc. | 164,201 | 7,484,282 | ||||||
| Old Republic International Corp. | 237,861 | 3,570,294 | ||||||
| PartnerRe Ltd. | 21,694 | 1,683,020 | ||||||
| Progressive Corp. (The) | 321,900 | 6,466,971 | ||||||
| Transatlantic Holdings, Inc. | 71,937 | 3,577,427 | ||||||
| 27,546,754 | ||||||||
Internet & Catalog Retail 0.4% | ||||||||
| Amazon.com, Inc.* | 22,000 | 3,015,320 | ||||||
Internet Software & Services 1.5% | ||||||||
| Google, Inc., Class A* | 5,693 | 2,991,330 | ||||||
| Yahoo!, Inc.* | 544,900 | 9,007,197 | ||||||
| 11,998,527 | ||||||||
Life Sciences Tools & Services 0.4% | ||||||||
| Mettler-Toledo International, Inc.* | 25,900 | 3,249,932 | ||||||
Machinery 3.7% | ||||||||
| Caterpillar, Inc. | 61,100 | 4,160,299 | ||||||
| Cummins, Inc. | 63,200 | 4,564,936 | ||||||
| Deere & Co. | 186,267 | 11,142,492 | ||||||
| Eaton Corp. | 18,018 | 1,390,269 | ||||||
| PACCAR, Inc. | 132,200 | 6,149,944 | ||||||
| Trinity Industries, Inc. | 73,098 | 1,819,409 | ||||||
| 29,227,349 | ||||||||
Media 1.3% | ||||||||
| Cablevision Systems Corp. | 69,712 | 1,912,897 | ||||||
| Comcast Corp., Class A | 216,300 | 4,269,762 | ||||||
| Walt Disney Co. (The) | 115,230 | 4,245,073 | ||||||
| 10,427,732 | ||||||||
Multiline Retail 0.2% | ||||||||
| J.C. Penney Co., Inc. | 64,700 | 1,887,299 | ||||||
Multi-Utilities 0.3% | ||||||||
| Integrys Energy Group, Inc. | 48,100 | 2,386,241 | ||||||
Office Electronics 0.4% | ||||||||
| Xerox Corp. | 293,265 | 3,196,588 | ||||||
Oil, Gas & Consumable Fuels 8.4% | ||||||||
| Apache Corp. | 132,600 | 13,493,376 | ||||||
| Chevron Corp. | 119,688 | 9,747,391 | ||||||
| EOG Resources, Inc. | 72,700 | 8,151,124 | ||||||
| Exxon Mobil Corp. | 222,833 | 15,119,219 | ||||||
| Hess Corp. | 237,040 | 15,063,892 | ||||||
| Murphy Oil Corp. | 69,202 | 4,162,500 | ||||||
| 65,737,502 | ||||||||
Paper & Forest Products 0.3% | ||||||||
| MeadWestvaco Corp. | 82,476 | 2,240,873 | ||||||
Pharmaceuticals 3.7% | ||||||||
| Bristol-Myers Squibb Co. | 106,786 | 2,700,618 | ||||||
| Eli Lilly & Co. | 171,343 | 5,991,865 | ||||||
| Johnson & Johnson | 205,111 | 13,188,637 | ||||||
| Merck & Co., Inc. | 39,693 | 1,390,843 | ||||||
| Pfizer, Inc. | 346,603 | 5,795,202 | ||||||
| 29,067,165 | ||||||||
Real Estate Investment Trusts (REITs) 0.3% | ||||||||
| Plum Creek Timber Co., Inc. | 50,000 | 1,990,000 | ||||||
26 Semiannual Report 2010
Common Stocks (continued) | ||||||||
| Shares | Market Value | |||||||
Road & Rail 1.3% | ||||||||
| Canadian National Railway Co. | 167,300 | $ | 10,002,867 | |||||
Semiconductors & Semiconductor Equipment 3.4% | ||||||||
| Intel Corp. | 682,715 | 15,586,384 | ||||||
| KLA-Tencor Corp. | 49,569 | 1,688,320 | ||||||
| Marvell Technology Group Ltd.* | 338,600 | 6,992,090 | ||||||
| Texas Instruments, Inc. | 85,400 | 2,221,254 | ||||||
| 26,488,048 | ||||||||
Software 3.8% | ||||||||
| Cadence Design Systems, Inc.* | 226,896 | 1,692,644 | ||||||
| McAfee, Inc.* | 236,100 | 8,204,475 | ||||||
| Microsoft Corp. | 189,446 | 5,785,681 | ||||||
| Oracle Corp. | 554,800 | 14,336,032 | ||||||
| 30,018,832 | ||||||||
Specialty Retail 4.0% | ||||||||
| Best Buy Co., Inc. | 64,000 | 2,918,400 | ||||||
| Home Depot, Inc. | 74,422 | 2,623,376 | ||||||
| Lowe’s Cos., Inc. | 106,900 | 2,899,128 | ||||||
| Sherwin-Williams Co. (The) | 42,100 | 3,286,747 | ||||||
| Staples, Inc. | 297,025 | 6,988,998 | ||||||
| TJX Cos., Inc. | 186,500 | 8,642,410 | ||||||
| Urban Outfitters, Inc.* | 98,800 | 3,705,988 | ||||||
| 31,065,047 | ||||||||
Tobacco 1.8% | ||||||||
| Philip Morris International, Inc. | 280,900 | 13,786,572 | ||||||
Wireless Telecommunication Services 0.3% | ||||||||
| Telephone & Data Systems, Inc. | 65,400 | 2,266,764 | ||||||
Total Common Stocks (cost $627,205,070) | 766,655,408 | |||||||
| Mutual Fund 1.9% | ||||||||
Money Market Fund 1.9% | ||||||||
| Invesco AIM Liquid Assets Portfolio, 0.15% (b) | 14,882,201 | 14,882,201 | ||||||
Total Mutual Fund (cost $14,882,201) | 14,882,201 | |||||||
| Repurchase Agreements 1.0% | ||||||||
| Principal Amount | Market Value | |||||||
| Morgan Stanley, 0.19%, dated 04/30/10, due 05/03/10, repurchase price $2,768,999, collateralized by U.S. Government Agency Securities 4.00% - 6.00%, maturing 07/01/23 - 04/01/40; total market value of $2,824,617. (c) | $ | 2,768,955 | $ | 2,768,955 | ||||
| Barclays Capital, 0.19%, dated 04/30/10, due 05/03/10, repurchase price $5,000,079, collateralized by U.S. Government Treasury Securities 1.38% - 3.00%, maturing 01/15/13 - 02/28/17; total market value of $5,100,000. (c) | 5,000,000 | 5,000,000 | ||||||
Total Repurchase Agreements (cost $7,768,955) | 7,768,955 | |||||||
Total Investments (cost $649,856,226) (d) — 100.5% | 789,306,564 | |||||||
Liabilities in excess of other assets — (0.5)% | (4,288,835 | ) | ||||||
NET ASSETS — 100.0% | $ | 785,017,729 | ||||||
| * | Denotes a non-income producing security. | |
| (a) | The security or a portion of this security is on loan at April 30, 2010. The total value of securities on loan at April 30, 2010 was $7,548,709. | |
| (b) | Represents 7-day effective yield as of April 30, 2010. | |
| (c) | The security was purchased with cash collateral held from securities on loan. The total value of this security as of April 30, 2010 was $7,768,955. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| Ltd. | Limited | |
| REIT | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 27
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Fund | |||||
Assets: | |||||
| Investments, at value (cost $642,087,271)* | $ | 781,537,609 | |||
| Repurchase agreements, at value and cost | 7,768,955 | ||||
| Total Investments | 789,306,564 | ||||
| Dividends receivable | 510,772 | ||||
| Security lending income receivable | 1,522 | ||||
| Receivable for investments sold | 4,293,917 | ||||
| Receivable for capital shares issued | 240,071 | ||||
| Prepaid expenses and other assets | 80,048 | ||||
| Total Assets | 794,432,894 | ||||
Liabilities: | |||||
| Payable for capital shares redeemed | 545,415 | ||||
| Payable upon return of securities loaned (Note 2) | 7,768,955 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 382,192 | ||||
| Fund administration fees | 76,052 | ||||
| Distribution fees | 19,072 | ||||
| Administrative servicing fees | 281,341 | ||||
| Accounting and transfer agent fees | 153,381 | ||||
| Trustee fees | 9,986 | ||||
| Custodian fees | 22,963 | ||||
| Compliance program costs (Note 3) | 6,155 | ||||
| Professional fees | 43,928 | ||||
| Printing fees | 93,467 | ||||
| Other | 12,258 | ||||
| Total Liabilities | 9,415,165 | ||||
Net Assets | $ | 785,017,729 | |||
Represented by: | |||||
| Capital | $ | 1,084,089,301 | |||
| Accumulated undistributed net investment income | 1,187,651 | ||||
| Accumulated net realized losses from investment transactions | (439,708,550 | ) | |||
| Net unrealized appreciation/(depreciation) from investments | 139,450,338 | ||||
| Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | (1,011 | ) | |||
Net Assets | $ | 785,017,729 | |||
Net Assets: | |||||
| Class A Shares | $ | 65,775,978 | |||
| Class B Shares | 5,868,803 | ||||
| Class C Shares | 522,164 | ||||
| Class D Shares | 712,848,572 | ||||
| Class R2 Shares | 1,111 | ||||
| Institutional Class Shares | 1,101 | ||||
| Total | $ | 785,017,729 | |||
| * | Includes value of securities on loan of $7,548,709 (Note 2) |
The accompanying notes are an integral part of these financial statements.
28 Semiannual Report 2010
| Nationwide | |||||
| Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Class A Shares | 5,028,811 | ||||
| Class B Shares | 471,483 | ||||
| Class C Shares | 42,020 | ||||
| Class D Shares | 55,241,612 | ||||
| Class R2 Shares | 86 | ||||
| Institutional Class Shares | 85 | ||||
| Total | 60,784,097 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Class A Shares | $ | 13.08 | |||
| Class B Shares (a) | $ | 12.45 | |||
| Class C Shares (b) | $ | 12.43 | |||
| Class D Shares | $ | 12.90 | |||
| Class R2 Shares | $ | 12.92 | |||
| Institutional Class Shares | $ | 12.95 | |||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | |||||
| Class A Shares | $ | 13.88 | |||
| Class D Shares | $ | 13.51 | |||
Maximum Sales Charge: | |||||
| Class A Shares | 5.75 | % | |||
| Class D Shares | 4.50 | % | |||
| (a) | For Class B Shares, the redemption price per share varies by the length of time shares are held. | |
| (b) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 29
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Fund | |||||
INVESTMENT INCOME: | |||||
| Dividend income | $ | 6,300,427 | |||
| Income from securities lending (Note 2) | 11,952 | ||||
| Foreign tax withholding | (45,675 | ) | |||
| Total Income | 6,266,704 | ||||
EXPENSES: | |||||
| Investment advisory fees | 2,180,260 | ||||
| Fund administration fees | 418,978 | ||||
| Distribution fees Class A | 79,411 | ||||
| Distribution fees Class B | 29,172 | ||||
| Distribution fees Class C | 2,551 | ||||
| Distribution fees Class R2 | 15 | ||||
| Administrative servicing fees Class A | 19,932 | ||||
| Administrative servicing fees Class D | 203,128 | ||||
| Registration and filing fees | 35,539 | ||||
| Professional fees | 35,294 | ||||
| Printing fees | 64,384 | ||||
| Trustee fees | 16,276 | ||||
| Custodian fees | 60,748 | ||||
| Accounting and transfer agent fees | 125,752 | ||||
| Compliance program costs (Note 3) | 3,682 | ||||
| Other | 14,416 | ||||
| Total expenses before earnings credit | 3,289,538 | ||||
| Earnings credit (Note 5) | (3,837 | ) | |||
| Net Expenses | 3,285,701 | ||||
NET INVESTMENT INCOME | 2,981,003 | ||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 15,944,827 | ||||
| Net realized losses from foreign currency transactions | (2,923 | ) | |||
| Net realized gains from investment and foreign currency transactions | 15,941,904 | ||||
| Net change in unrealized appreciation/(depreciation) from investments | 79,047,382 | ||||
| Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies | 781 | ||||
| Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | 79,048,163 | ||||
| Net realized/unrealized gains from investment and foreign currency transactions | 94,990,067 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 97,971,070 | |||
The accompanying notes are an integral part of these financial statements.
30 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | 2,981,003 | $ | 8,538,557 | ||||||
| Net realized gains/(losses) from investment and foreign currency transactions | 15,941,904 | (189,188,066 | ) | |||||||
| Net change in unrealized appreciation from investments and translations of assets and liabilities denominated in foreign currencies | 79,048,163 | 234,035,663 | ||||||||
| Change in net assets resulting from operations | 97,971,070 | 53,386,154 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Class A | (173,002 | ) | (835,765 | ) | ||||||
| Class B | (6,842 | ) | (59,291 | ) | ||||||
| Class C | (631 | ) | (4,934 | ) | ||||||
| Class D | (2,322,214 | ) | (10,353,183 | ) | ||||||
| Class R2 (a) | (17 | ) | (78 | ) | ||||||
| Institutional Class | (4 | ) | (16 | ) | ||||||
| Change in net assets from shareholder distributions | (2,502,710 | ) | (11,253,267 | ) | ||||||
| Change in net assets from capital transactions | 373,149 | (54,752,838 | ) | |||||||
| Change in net assets | 95,841,509 | (12,619,951 | ) | |||||||
Net Assets: | ||||||||||
| Beginning of period | 689,176,220 | 701,796,171 | ||||||||
| End of period | $ | 785,017,729 | $ | 689,176,220 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 1,187,651 | $ | 709,358 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Proceeds from shares issued | $ | 1,986,141 | $ | 4,777,854 | ||||||
| Dividends reinvested | 168,021 | 813,225 | ||||||||
| Cost of shares redeemed (b) | (5,957,552 | ) | (10,064,648 | ) | ||||||
| Total Class A | (3,803,390 | ) | (4,473,569 | ) | ||||||
Class B Shares | ||||||||||
| Proceeds from shares issued | 338,204 | 541,406 | ||||||||
| Dividends reinvested | 6,794 | 58,859 | ||||||||
| Cost of shares redeemed (b) | (923,687 | ) | (2,462,201 | ) | ||||||
| Total Class B | (578,689 | ) | (1,861,936 | ) | ||||||
Class C Shares | ||||||||||
| Proceeds from shares issued | 10,594 | 152,283 | ||||||||
| Dividends reinvested | 221 | 2,187 | ||||||||
| Cost of shares redeemed | (39,660 | ) | (149,253 | ) | ||||||
| Total Class C | (28,845 | ) | 5,217 | |||||||
| (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.
2010 Semiannual Report 31
Statement of Changes in Net Assets (Continued)
| Nationwide Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
CAPITAL TRANSACTIONS: (continued) | ||||||||||
Class D Shares | ||||||||||
| Proceeds from shares issued | 37,652,707 | 28,334,107 | ||||||||
| Dividends reinvested | 2,211,275 | 9,841,177 | ||||||||
| Cost of shares redeemed (b) | (35,073,140 | ) | (86,598,838 | ) | ||||||
| Total Class D | 4,790,842 | (48,423,554 | ) | |||||||
Class R2 Shares (a) | ||||||||||
| Proceeds from shares issued | 1,000 | 910 | ||||||||
| Dividends reinvested | 17 | 78 | ||||||||
| Cost of shares redeemed | (7,762 | ) | – | |||||||
| Total Class R2 | (6,745 | ) | 988 | |||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 1,000 | – | ||||||||
| Dividends reinvested | 4 | 16 | ||||||||
| Cost of shares redeemed (b) | (1,028 | ) | – | |||||||
| Total Institutional Class | (24 | ) | 16 | |||||||
| Change in net assets from capital transactions | $ | 373,149 | $ | (54,752,838 | ) | |||||
SHARE TRANSACTIONS: | ||||||||||
Class A Shares | ||||||||||
| Issued | 158,056 | 477,079 | ||||||||
| Reinvested | 13,852 | 84,190 | ||||||||
| Redeemed | (480,310 | ) | (1,031,384 | ) | ||||||
| Total Class A Shares | (308,402 | ) | (470,115 | ) | ||||||
Class B Shares | ||||||||||
| Issued | 28,393 | 57,367 | ||||||||
| Reinvested | 587 | 6,453 | ||||||||
| Redeemed | (77,675 | ) | (262,972 | ) | ||||||
| Total Class B Shares | (48,695 | ) | (199,152 | ) | ||||||
Class C Shares | ||||||||||
| Issued | 911 | 15,680 | ||||||||
| Reinvested | 19 | 244 | ||||||||
| Redeemed | (3,408 | ) | (14,839 | ) | ||||||
| Total Class C Shares | (2,478 | ) | 1,085 | |||||||
Class D Shares | ||||||||||
| Issued | 3,122,614 | 2,913,593 | ||||||||
| Reinvested | 185,044 | 1,028,216 | ||||||||
| Redeemed | (2,845,169 | ) | (9,101,977 | ) | ||||||
| Total Class D Shares | 462,489 | (5,160,168 | ) | |||||||
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.
32 Semiannual Report 2010
| Nationwide Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Class R2 Shares (a) | ||||||||||
| Issued | 86 | 94 | ||||||||
| Reinvested | 1 | 8 | ||||||||
| Redeemed | (617 | ) | – | |||||||
| Total Class R2 Shares | (530 | ) | 102 | |||||||
Institutional Class Shares | ||||||||||
| Issued | 86 | – | ||||||||
| Reinvested | – | 1 | ||||||||
| Redeemed | (87 | ) | – | |||||||
| Total Institutional Class Shares | (1 | ) | 1 | |||||||
| Total change in shares | 102,383 | (5,828,247 | ) | |||||||
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.
2010 Semiannual Report 33
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Fund
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 11 | .51 | 0 | .04 | 1 | .56 | 1 | .60 | (0 | .03) | – | (0 | .03) | – | $ | 13 | .08 | 13 | .95% | $ | 65,775,978 | 1 | .10% | 0 | .59% | 1 | .10% | 26 | .29% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .69 | 0 | .11 | 0 | .86 | 0 | .97 | (0 | .15) | – | (0 | .15) | – | $ | 11 | .51 | 9 | .36% | $ | 61,414,353 | 1 | .17% | 1 | .13% | 1 | .17% | 145 | .13% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .97 | (0 | .01) | 1 | .50 | 1 | .49 | (0 | .01) | – | (0 | .01) | – | $ | 12 | .45 | 13 | .62% | $ | 5,868,803 | 1 | .79% | (0 | .10%) | 1 | .79% | 26 | .29% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .20 | 0 | .05 | 0 | .81 | 0 | .86 | (0 | .09) | – | (0 | .09) | – | $ | 10 | .97 | 8 | .59% | $ | 5,707,151 | 1 | .86% | 0 | .50% | 1 | .86% | 145 | .13% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 10 | .95 | (0 | .01) | 1 | .50 | 1 | .49 | (0 | .01) | – | (0 | .01) | – | $ | 12 | .43 | 13 | .66% | $ | 522,164 | 1 | .79% | (0 | .11%) | 1 | .79% | 26 | .29% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .18 | 0 | .04 | 0 | .82 | 0 | .86 | (0 | .09) | – | (0 | .09) | – | $ | 10 | .95 | 8 | .69% | $ | 487,402 | 1 | .86% | 0 | .43% | 1 | .86% | 145 | .13% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
34 Semiannual Report 2010
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 D Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 11 | .35 | 0 | .05 | 1 | .54 | 1 | .59 | (0 | .04) | – | (0 | .04) | – | $ | 12 | .90 | 14 | .05% | $ | 712,848,572 | 0 | .85% | 0 | .83% | 0 | .85% | 26 | .29% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .54 | 0 | .14 | 0 | .85 | 0 | .99 | (0 | .18) | – | (0 | .18) | – | $ | 11 | .35 | 9 | .70% | $ | 621,559,329 | 0 | .92% | 1 | .39% | 0 | .92% | 145 | .13% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
Class R2 Shares (h) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (f) | $ | 11 | .37 | 0 | .03 | 1 | .55 | 1 | .58 | (0 | .03) | – | (0 | .03) | – | $ | 12 | .92 | 13 | .90% | $ | 1,111 | 1 | .29% | 0 | .56% | 1 | .29% | 26 | .29% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .57 | 0 | .09 | 0 | .84 | 0 | .93 | (0 | .13) | – | (0 | .13) | – | $ | 11 | .37 | 9 | .08% | $ | 7,001 | 1 | .37% | 0 | .88% | 1 | .37% | 145 | .13% | ||||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
| (h) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 35
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Fund (Continued)
| Operations | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Realized | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2010 (Unaudited) (f) | $ | 11 | .38 | 0 | .06 | 1 | .55 | 1 | .61 | (0 | .04) | – | (0 | .04) | – | $ | 12 | .95 | 14 | .20% | $ | 1,101 | 0 | .69% | 0 | .97% | 0 | .69% | 26 | .29% | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (f) | $ | 10 | .56 | 0 | .15 | 0 | .76 | 0 | .91 | (0 | .18) | – | (0 | .18) | 0 | .09 | $ | 11 | .38 | 9 | .84% | $ | 979 | 0 | .77% | 1 | .51% | 0 | .77% | 145 | .13% | |||||||||||||||||||||||||||||||||||||||||||||
| 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% | |||||||||||||||||||||||||||||||||||||||||||||
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) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
36 Semiannual Report 2010
| Nationwide Money Market 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, 2010, the Nationwide Money Market Fund (Prime Shares) registered 0.00% versus 0.00% for its benchmark, the iMoneyNet First Tier Retail Index. For broader comparison, the average return for the Fund’s closest Lipper peer category of Money Market Funds (consisting of 296 funds as of April 30, 2010) was 0.01% for the same time period.
What areas of investment provided the most positive relative returns for the Fund?
The Fund’s investments in the banking industry helped Fund performance the most during the reporting period. In addition to holdings in the banking sector, the Fund’s investments in asset-backed commercial paper proved beneficial in the pursuit of positive relative returns.
We finally are beginning to see a little movement on the short end of the cash-yield curve (the yield curve is a plotted graph line of the yields [or interest rates] on long-term and short-term maturity bonds), with the emphasis on little. The Federal Reserve Board has yet to lift its “exceptionally low levels” for “an extended period” policy language in relation to its federal funds target rate, and until it does, we do not anticipate much movement on short rates. And even after the Federal Reserve finally lifts the policy barrier, any official increase in the benchmark rate does not appear likely until late summer, if then. Still, all signs suggest that the historic lows in cash yields we have been experiencing for the better part of a year are in the rearview mirror, abetted by an economic recovery that is gaining momentum. The final read on the fourth quarter of 2009 showed gross domestic product (GDP) rising the most in six years, and the March 2010 employment report showed nonfarm payrolls expanding the most in three years. With other gauges indicating that manufacturing and services are in a full expansion, consumer spending is on the upswing and still-anemic housing is off its price lows, the stage is set for a cyclical boost that eventually should begin to exert upward pressure on rates. After a year of sobering low-rate drama, that is an uptick we would welcome.
What areas of investment detracted from Fund performance?
During the latter half of the reporting period, the Fund’s holdings in overnight securities detracted from Fund performance. These securities were generally lower-yielding securities but were required for liquidity. None of the securities held by the Fund defaulted during the reporting period.
What is your outlook for the near term?
Cash yields crept steadily higher throughout April as investors continued to anticipate the onset of a new monetary tightening cycle in the United States. The biggest increase in market interest rates occurred in longer-dated maturities, resulting in a modest steepening of the yield curve.
For example, the one-month London interbank offered rate (LIBOR) rose three basis points in April to 0.28%, the three-month LIBOR increased six basis points to 0.35%, the six-month LIBOR leapt eight basis points to 0.53%, and the 12-month LIBOR jumped nine basis points to 1.01%. In a reflection of the Fed’s determination to gradually drain excess liquidity from the banking system, the effective federal funds rate also traded closer to the upper end of its 0.00% to 0.25% range that was established in December 2008.
The Federal Open Market Committee (FOMC) did little to nudge the rate higher after it met during the last week of April. While acknowledging some modest improvement in overall economic conditions, the FOMC restated its longstanding promise to keep benchmark interest rates “extremely low” for an “extended period.” Although the Fed’s pledge to keep the monetary spigot open wide helped to soothe investor nerves frayed by the ongoing fiscal crisis in the eurozone, an uneventful meeting had been widely anticipated. We would not be surprised, however, to see a slight modification in the policy language at the next FOMC meeting in June.
The larger backup in rates at the longer end of the yield curve in April validated our recent strategy of concentrating purchases in short-term and floating-rate securities. In our view, the cash market was – and still is, even with the marginally higher longer-term yields now available – discounting the first rate increase to occur at the November FOMC meeting, or perhaps later. Yet we believe that the
2010 Semiannual Report 37
Nationwide Money Market Fund
(Continued)
U.S. economic recovery is gaining significant traction and that the Fed could start tightening interest rates as early as September.
It may be instructive to note that promises made by central banks are not open-ended commitments. For example, we saw an abrupt change in policy language earlier in April by the Bank of Canada, which now appears willing to be the next monetary authority to raise official interest rates (the Reserve Bank of Australia began tightening last October, and other reserve banks have followed).
The slow but steady economic recovery now unfolding in the United States is particularly good news for savers, because this recovery portends higher yields on cash equivalents down the road. Though the speed and magnitude of future Fed rate hikes will depend upon circumstances that are difficult to predict with certainty at this early date – most notably, major improvement in the still-weak domestic labor market – we nonetheless are convinced that the low point for cash yields has been reached and will not be revisited.
Subadviser:
Federated Investment Management Co.
Federated Investment Management Co.
38 Semiannual Report 2010
| Fund Performance | Nationwide Money Market Fund |
Average Annual Total Return
(For periods ended April 30, 2010)
(For periods ended April 30, 2010)
| Six | ||||||||||||||||
| Months* | 1 Yr. | 5 Yr. | 10 Yr. | |||||||||||||
Prime1 | –% | –% | 2.70% | 2.42% | ||||||||||||
Institutional Class1 | –% | 0.01% | 2.75% | 2.47% | ||||||||||||
Service Class1,2 | –% | –% | 2.60% | 2.31% | ||||||||||||
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.
Amounts designated as “–” are zero or have been rounded to zero.
| * | Not annualized. | |
| 1 | Not subject to any sales charges. | |
| 2 | 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 | ||||||||
| Expense | Expense | |||||||
| Ratio* | Ratio* | |||||||
| Prime | 0.58% | 0.58% | ||||||
| Institutional Class | 0.49% | 0.49% | ||||||
| Service Class | 0.79% | 0.75% | ||||||
| * | Current effective prospectus dated May 6, 2010. The difference between gross and net operating expenses reflects contractual waivers in place through February 28, 2011. Please see the Fund’s most recent prospectus for details. |
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 04/30/10. 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. |
2010 Semiannual Report 39
| Shareholder | Nationwide Money Market Fund |
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
April 30, 2010
Expense Analysis of a $1,000 Investment
April 30, 2010
| Beginning | Ending | Expenses Paid | Expense Ratio | |||||||||||||||||
| Account Value ($) | Account Value ($) | During Period ($) | During Period (%) | |||||||||||||||||
| Nationwide Money Market Fund | 11/01/09 | 04/30/10 | 11/01/09 - 04/30/10a | 11/01/09 - 04/30/10a | ||||||||||||||||
| Prime Shares | Actual | 1,000.00 | 1,000.00 | 1.44 | 0.29 | |||||||||||||||
| Hypothetical | b | 1,000.00 | 1,023.36 | 1.45 | 0.29 | |||||||||||||||
| Institutional Class | Actual | 1,000.00 | 1,000.00 | 1.44 | 0.29 | |||||||||||||||
| Shares | Hypothetical | b | 1,000.00 | 1,023.36 | 1.45 | 0.29 | ||||||||||||||
| Service Class | Actual | 1,000.00 | 1,000.00 | 1.44 | 0.29 | |||||||||||||||
| Shares | Hypothetical | b | 1,000.00 | 1,023.36 | 1.45 | 0.29 | ||||||||||||||
| 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. |
40 Semiannual Report 2010
| Portfolio Summary | Nationwide Money Market Fund |
April 30, 2010 (Unaudited)
| Asset Allocation | ||||
| Commercial Paper | 58 | .0% | ||
| U.S. Government Mortgage Backed Agencies | 18 | .4% | ||
| Certificates of Deposit | 14 | .5% | ||
| Mutual Funds | 10 | .0% | ||
| Medium Term Notes | 2 | .0% | ||
| Corporate Bonds | 0 | .8% | ||
| Sovereign Bond | 0 | .1% | ||
| Liabilities in excess of other assets | (3 | .8)% | ||
| 100 | .0% | |||
| Top Industries † | ||||
| Banking | 22 | .8% | ||
| Government Agency | 22 | .1% | ||
| Finance — Retail | 17 | .4% | ||
| Finance — Commercial | 13 | .2% | ||
| Finance — Automotive | 9 | .8% | ||
| Asset Management | 9 | .6% | ||
| Chemicals | 2 | .8% | ||
| Oil & Oil Finance | 1 | .2% | ||
| Pharmaceuticals and Health Care | 0 | .7% | ||
| Retail | 0 | .2% | ||
| Other Industries | 0 | .2% | ||
| 100 | .0% | |||
| Top Holdings † | ||||
| Federated Prime Cash Obligations Fund, Institutional Shares | 5 | .3% | ||
| Federal Home Loan Banks, 0.31% 07/09/10 | 4 | .9% | ||
| Toyota Motor Credit Corp., 0.33%, 06/02/10 | 4 | .9% | ||
| Federated Prime Obligations Fund, Institutional Shares | 4 | .3% | ||
| Falcon Asset Securitization Co. LLC, 0.21% 06/25/10 | 4 | .1% | ||
| FCAR Owner Trust, 0.60% 07/09/10 | 3 | .6% | ||
| Barclays Bank PLC, 0.51%, 01/21/11 | 3 | .1% | ||
| Danske Corp., 0.30% 07/19/10 | 3 | .0% | ||
| Federal Home Loan Banks, 0.40%, 12/27/10 | 2 | .4% | ||
| Calyon New York, 0.21%, 05/03/10 | 2 | .4% | ||
| Other Holdings | 62 | .0% | ||
| 100 | .0% | |||
| † | Percentages indicated are based upon total investments as of April 30, 2010. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 41
Statement of Investments
April 30, 2010 (Unaudited)
Nationwide Money Market Fund
| Certificates of Deposit 14.5% | ||||||||
| Principal Amount | Market Value | |||||||
Banking 14.5% | ||||||||
| Bank of America NA, 0.28%, 06/21/10 | $ | 9,477,000 | $ | 9,473,241 | ||||
| Bank of Tokyo — Mitsubishi UFJ Ltd., 0.23%, 05/25/10 | 13,000,000 | 13,000,000 | ||||||
| Bank of Tokyo — Mitsubishi UFJ Ltd. — New York, 0.28%, 06/23/10 | 15,000,000 | 15,000,000 | ||||||
| Barclays Bank PLC, 0.51%, 01/21/11 | 65,000,000 | 65,000,000 | ||||||
| BNP Paribas/New York NY, 0.31%, 07/15/10 | 50,000,000 | 50,000,000 | ||||||
| Calyon New York | ||||||||
| 0.21%, 05/03/10 | 50,000,000 | 50,000,000 | ||||||
| 0.21%, 05/10/10 | 40,000,000 | 40,000,000 | ||||||
| Credit Agricole Corporate and Investment Bank — New York, 0.34%, 08/20/10 | 12,000,000 | 12,000,000 | ||||||
| State Street Bank and Trust Co., 0.35%, 09/21/10 | 25,000,000 | 25,000,000 | ||||||
| Toronto Dominion Bank — New York, 0.25%, 12/09/10 | 8,000,000 | 8,000,000 | ||||||
Total Certificates of Deposit (cost $287,473,241) | 287,473,241 | |||||||
| Commercial Paper 58.0% | ||||||||
Banking 9.3% | ||||||||
| Australia & New Zealand Banking Group Ltd., 0.29%, 01/28/11 (a) | 14,800,000 | 14,800,000 | ||||||
| Banco Bilbao Vizcaya Argentaria SA/London, 0.31%, 07/08/10 (a) | 25,000,000 | 24,985,361 | ||||||
| Barclays US Funding Corp., 0.20%, 05/12/10 | 11,000,000 | 10,999,328 | ||||||
| Clipper Receivables Co. LLC, 0.37%, 09/21/10 (a) | 15,000,000 | 14,978,252 | ||||||
| Danske Corp. | ||||||||
| 0.20%, 05/03/10 (a) | 10,847,000 | 10,846,879 | ||||||
| 0.30%, 07/19/10 (a) | 61,000,000 | 60,959,842 | ||||||
| Societe Generale North America, Inc., 0.21%, 05/17/10 | 10,000,000 | 9,999,066 | ||||||
| Ticonderoga Funding LLC, 0.28%, 06/25/10 (a) | 36,800,000 | 36,784,258 | ||||||
| 184,352,986 | ||||||||
Chemicals 2.9% | ||||||||
| BASF SE | ||||||||
| 0.21%, 06/09/10 (a) | 18,600,000 | 18,595,769 | ||||||
| 0.21%, 06/17/10 (a) | 40,000,000 | 39,989,033 | ||||||
| 58,584,802 | ||||||||
Consumer-Products 0.1% | ||||||||
| Johnson & Johnson, 0.23%, 08/03/10 (a) | 2,100,000 | 2,098,739 | ||||||
Finance-Automotive 10.2% | ||||||||
| FCAR Owner Trust | ||||||||
| 0.25%, 05/06/10 | 25,000,000 | 24,999,132 | ||||||
| 0.55%, 06/25/10 | 2,000,000 | 1,998,319 | ||||||
| 0.60%, 07/09/10 | 75,000,000 | 74,913,750 | ||||||
| Toyota Motor Credit Corp., 0.33%, 06/02/10 | 100,000,000 | 99,970,667 | ||||||
| 201,881,868 | ||||||||
Finance-Commercial 11.8% | ||||||||
| Atlantic Asset Securitization LLC | ||||||||
| 0.18%, 05/04/10 (a) | 25,000,000 | 24,999,625 | ||||||
| 0.18%, 05/05/10 (a) | 27,000,000 | 26,999,460 | ||||||
| 0.21%, 05/07/10 (a) | 18,000,000 | 17,999,370 | ||||||
| 0.28%, 07/09/10 (a) | 27,000,000 | 26,985,510 | ||||||
| Edison Asset Securitization LLC | ||||||||
| 0.25%, 06/01/10 (a) | 6,750,000 | 6,748,547 | ||||||
| 0.22%, 06/09/10 (a) | 25,000,000 | 24,993,987 | ||||||
| 0.30%, 07/20/10 (a) | 15,000,000 | 14,990,000 | ||||||
| 0.35%, 07/30/10 (a) | 35,000,000 | 34,970,056 | ||||||
| Enterprise Funding Co. LLC, 0.21%, 05/26/10 (a) | 15,000,000 | 14,997,812 | ||||||
| Fairway Finance LLC, 0.24%, 06/14/10 (a) | 16,000,000 | 15,995,307 | ||||||
| Starbird Funding Corp., 0.18%, 05/03/10 (a) | 25,000,000 | 24,999,750 | ||||||
| 234,679,424 | ||||||||
Finance-Retail 18.0% | ||||||||
| Barton Capital Corp., 0.18%, 05/03/10 (a) | 37,000,000 | 36,999,630 | ||||||
| Chariot Funding LLC | ||||||||
| 0.22%, 05/25/10 (a) | 25,000,000 | 24,996,334 | ||||||
| 0.23%, 06/15/10 (a) | 6,500,000 | 6,498,131 | ||||||
| 0.25%, 06/18/10 (a) | 30,000,000 | 29,990,000 | ||||||
| Falcon Asset Securitization Co. LLC | ||||||||
| 0.23%, 06/03/10 (a) | 13,000,000 | 12,997,259 | ||||||
| 0.21%, 06/25/10 (a) | 85,000,000 | 84,972,729 | ||||||
| Jupiter Securitization Co. LLC, 0.18%, 05/03/10 (a) | 21,880,000 | 21,879,781 | ||||||
| Salisbury Receivables Co. LLC | ||||||||
| 0.23%, 05/12/10 (a) | 30,000,000 | 29,997,892 | ||||||
| 0.20%, 05/19/10 (a) | 3,972,000 | 3,971,603 | ||||||
42 Semiannual Report 2010
Commercial Paper (continued) | ||||||||
| Principal Amount | Market Value | |||||||
Finance-Retail (continued) | ||||||||
| 0.21%, 05/20/10 (a) | $ | 16,000,000 | $ | 15,998,195 | ||||
| 0.23%, 05/27/10 (a) | 50,000,000 | 49,991,694 | ||||||
| Sheffield Receivables Corp., 0.19%, 05/11/10 (a) | 20,000,000 | 19,998,944 | ||||||
| Yorktown Capital LLC, 0.19%, 05/10/10 (a) | 19,920,000 | 19,919,054 | ||||||
| 358,211,246 | ||||||||
Government Agency 4.4% | ||||||||
| Straight A Funding | ||||||||
| 0.26%, 07/12/10 | 16,685,000 | 16,676,324 | ||||||
| 0.26%, 07/14/10 | 31,572,000 | 31,555,126 | ||||||
| 0.29%, 07/19/10 | 11,500,000 | 11,492,682 | ||||||
| Straight-A Funding LLC, 0.20%, 06/01/10 (a) | 28,434,000 | 28,428,985 | ||||||
| 88,153,117 | ||||||||
Oil & Oil Finance 1.3% | ||||||||
| BP Capital Markets PLC, 0.18%, 05/03/10 (a) | 25,141,000 | 25,140,749 | ||||||
Total Commercial Paper (cost $1,153,102,931) | 1,153,102,931 | |||||||
| Corporate Bonds 0.8% | ||||||||
Finance-Commercial 0.6% | ||||||||
| General Electric Capital Corp., 6.13%, 02/22/11 | 11,325,000 | 11,813,098 | ||||||
Retail 0.2% | ||||||||
| Wal-Mart Stores, Inc., 4.13%, 07/01/10 | 5,000,000 | 5,032,383 | ||||||
Total Corporate Bonds (cost $16,845,481) | 16,845,481 | |||||||
| Medium Term Notes 2.0% | ||||||||
Finance-Commercial 1.3% | ||||||||
| General Electric Capital Corp. | ||||||||
| 0.31%, 05/10/10 (b) | 7,044,000 | 7,038,887 | ||||||
| 0.41%, 10/21/10 (b) | 18,085,000 | 18,075,035 | ||||||
| 25,113,922 | ||||||||
Pharmaceuticals and Health Care 0.7% | ||||||||
| Roche Holdings, Inc., 2.25%, 02/25/11 (a)(b) | 14,400,000 | 14,638,811 | ||||||
Total Medium Term Notes (cost $39,752,733) | 39,752,733 | |||||||
| U.S. Government Mortgage Backed Agencies 18.4% | ||||||||
| Federal Home Loan Banks | ||||||||
| 0.31%, 07/09/10, Series 1 (b) | 100,000,000 | 100,000,000 | ||||||
| 0.55%, 08/04/10 | 25,000,000 | 24,995,627 | ||||||
| 0.40%, 12/27/10 | 50,000,000 | 50,000,000 | ||||||
| 0.50%, 03/14/11, Series 1 | 10,000,000 | 10,000,000 | ||||||
| 0.60%, 04/18/11 | 20,000,000 | 20,000,000 | ||||||
| 0.65%, 05/25/11 | 25,000,000 | 25,000,000 | ||||||
| 0.16%, 07/20/11 (b) | 50,000,000 | 49,981,435 | ||||||
| Federal Home Loan Mortgage Corp. 0.21%, 06/21/10 | 25,000,000 | 24,992,562 | ||||||
| Federal National Mortgage Association | ||||||||
| 0.21%, 06/30/10 | 33,800,000 | 33,788,170 | ||||||
| 0.16%, 08/11/11 (b) | 27,200,000 | 27,179,021 | ||||||
Total U.S. Government Mortgage Backed Agencies (cost $365,936,815) | 365,936,815 | |||||||
| Sovereign Bond 0.1% | ||||||||
SUPRANATIONAL 0.1% | ||||||||
| World Bank Discount Notes, 0.16%, 05/07/10 | 1,574,000 | 1,573,958 | ||||||
Total Sovereign Bond (cost $1,573,958) | 1,573,958 | |||||||
| Mutual Funds 10.0% | ||||||||
| Shares | Market Value | |||||||
Asset Management 10.0% | ||||||||
| Federated Prime Cash Obligations Fund, Institutional Shares, 0.16% (c) | 110,096,804 | 110,096,804 | ||||||
2010 Semiannual Report 43
Statement of Investments (Continued)
April 30, 2010 (Unaudited)
Nationwide Money Market Fund (Continued)
Mutual Funds (continued) | ||||||||
| Shares | Market Value | |||||||
Asset Management (continued) | ||||||||
| Federated Prime Obligations Fund, Institutional Shares, 0.14% (c) | 88,324,914 | $ | 88,324,914 | |||||
Total Mutual Funds (cost $198,421,718) | 198,421,718 | |||||||
Total Investments (cost $2,063,106,877) (d) — 103.8% | 2,063,106,877 | |||||||
Liabilities in excess of other assets — (3.8)% | (75,423,949 | ) | ||||||
NET ASSETS — 100.0% | $ | 1,987,682,928 | ||||||
| (a) | Rule 144A, Section 4(2), or other security which is restricted as to sale 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, 2010 was $885,137,348 which represents 44.53% of net assets. | |
| (b) | Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on April 30, 2010. The maturity date represents the actual maturity date. | |
| (c) | Represents 7-day effective yield as of April 30, 2010. | |
| (d) | See notes to financial statements for tax unrealized appreciation/(depreciation) of securities. |
| LLC | Limited Liability Company | |
| Ltd. | Limited | |
| NA | National Association | |
| PLC | Public Limited Company | |
| SA | Stock Company | |
| SE | Sweden |
The accompanying notes are an integral part of these financial statements.
44 Semiannual Report 2010
Statement of Assets and Liabilities
April 30, 2010 (Unaudited)
| Nationwide | |||||
| Money Market Fund | |||||
Assets: | |||||
| Investments, at value (cost $2,063,106,877) | $ | 2,063,106,877 | |||
| Cash | 3,668 | ||||
| Interest and dividends receivable | 535,753 | ||||
| Receivable for capital shares issued | 1,679,477 | ||||
| Prepaid expenses and other assets | 265,619 | ||||
| Total Assets | 2,065,591,394 | ||||
Liabilities: | |||||
| Payable for investments purchased | 71,919,958 | ||||
| Payable for capital shares redeemed | 5,037,396 | ||||
| Accrued expenses and other payables: | |||||
| Investment advisory fees | 220,785 | ||||
| Fund administration fees | 192,477 | ||||
| Distribution fees | 139 | ||||
| Accounting and transfer agent fees | 126,104 | ||||
| Trustee fees | 20,684 | ||||
| Custodian fees | 40,001 | ||||
| Compliance program costs (Note 3) | 19,864 | ||||
| Professional fees | 169,467 | ||||
| Printing fees | 114,402 | ||||
| Other | 47,189 | ||||
| Total Liabilities | 77,908,466 | ||||
Net Assets | $ | 1,987,682,928 | |||
Represented by: | |||||
| Capital | $ | 1,989,309,137 | |||
| Accumulated undistributed net investment income | 2,789 | ||||
| Accumulated net realized losses from investment transactions | (1,628,998 | ) | |||
Net Assets | $ | 1,987,682,928 | |||
Net Assets: | |||||
| Prime Shares | $ | 577,138,502 | |||
| Institutional Class Shares | 1,403,939,852 | ||||
| Service Class Shares | 6,604,574 | ||||
| Total | $ | 1,987,682,928 | |||
Shares Outstanding (unlimited number of shares authorized): | |||||
| Prime Shares | 577,788,795 | ||||
| Institutional Class Shares | 1,405,178,363 | ||||
| Service Class Shares | 6,611,208 | ||||
| Total | 1,989,578,366 | ||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | |||||
| Prime Shares | $ | 1.00 | |||
| Institutional Class Shares | $ | 1.00 | |||
| Service Class Shares | $ | 1.00 | |||
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 45
Statement of Operations
For the Six Months Ended April 30, 2010 (Unaudited)
| Nationwide | |||||
| Money Market Fund | |||||
INVESTMENT INCOME: | |||||
| Interest income | $ | 2,904,583 | |||
| Dividend income | 133,423 | ||||
| Total Income | 3,038,006 | ||||
EXPENSES: | |||||
| Investment advisory fees | 3,940,203 | ||||
| Fund administration fees | 1,178,408 | ||||
| Distribution fees Service Class | 5,868 | ||||
| Administrative servicing fees Prime Class | 368,265 | ||||
| Administrative servicing fees Service Class | 9,781 | ||||
| Registration and filing fees | 27,053 | ||||
| Professional fees | 111,217 | ||||
| Printing fees | 95,995 | ||||
| Trustee fees | 52,585 | ||||
| Custodian fees | 69,995 | ||||
| Accounting and transfer agent fees | 31,939 | ||||
| Compliance program costs (Note 3) | 10,731 | ||||
| Other | 52,321 | ||||
| Total expenses before earnings credit and expenses waived and reimbursed | 5,954,361 | ||||
| Distribution fees voluntarily waived — Service Class (Note 3) | (5,458 | ) | |||
| Earnings credit (Note 5) | (2,107 | ) | |||
| Investment advisory fees voluntarily waived (Note 3) | (2,529,507 | ) | |||
| Administrative servicing fees voluntarily waived — Prime Class (Note 3) | (368,265 | ) | |||
| Administrative servicing fees voluntarily waived — Service Class (Note 3) | (9,781 | ) | |||
| Expenses reimbursed by adviser (Note 3) | (1,237 | ) | |||
| Net Expenses | 3,038,006 | ||||
NET INVESTMENT INCOME | – | ||||
REALIZED/UNREALIZED GAINS FROM INVESTMENTS: | |||||
| Net realized gains from investment transactions | 11,934 | ||||
| Net realized/unrealized gains from investments | 11,934 | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 11,934 | |||
The accompanying notes are an integral part of these financial statements.
46 Semiannual Report 2010
Statements of Changes in Net Assets
| Nationwide Money Market Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
Operations: | ||||||||||
| Net investment income | $ | – | $ | 5,485,401 | ||||||
| Net realized gains from investment transactions | 11,934 | 7,072 | ||||||||
| Change in net assets resulting from operations | 11,934 | 5,492,473 | ||||||||
Distributions to Shareholders From: | ||||||||||
| Net investment income: | ||||||||||
| Prime Class | – | (1,279,296 | ) | |||||||
| Institutional Class | – | (4,185,300 | ) | |||||||
| Service Class | – | (18,532 | ) | |||||||
| Change in net assets from shareholder distributions | – | (5,483,128 | ) | |||||||
| Change in net assets from capital transactions | (228,454,983 | ) | (405,593,839 | ) | ||||||
| Change in net assets | (228,443,049 | ) | (405,584,494 | ) | ||||||
Net Assets: | ||||||||||
| Beginning of period | 2,216,125,977 | 2,621,710,471 | ||||||||
| End of period | $ | 1,987,682,928 | $ | 2,216,125,977 | ||||||
| Accumulated undistributed net investment income at end of period | $ | 2,789 | $ | 2,789 | ||||||
CAPITAL TRANSACTIONS: | ||||||||||
Prime Class Shares | ||||||||||
| Proceeds from shares issued | $ | 125,892,511 | $ | 321,349,097 | ||||||
| Dividends reinvested | – | 1,260,567 | ||||||||
| Cost of shares redeemed | (145,935,538 | ) | (384,612,896 | ) | ||||||
| Total Prime Class | (20,043,027 | ) | (62,003,232 | ) | ||||||
Institutional Class Shares | ||||||||||
| Proceeds from shares issued | 120,913,833 | 364,746,188 | ||||||||
| Dividends reinvested | – | 4,185,230 | ||||||||
| Cost of shares redeemed | (326,644,462 | ) | (709,325,251 | ) | ||||||
| Total Institutional Class | (205,730,629 | ) | (340,393,833 | ) | ||||||
Service Class Shares | ||||||||||
| Proceeds from shares issued | 644,205 | 5,168,737 | ||||||||
| Dividends reinvested | – | 18,532 | ||||||||
| Cost of shares redeemed | (3,325,532 | ) | (8,384,043 | ) | ||||||
| Total Service Class | (2,681,327 | ) | (3,196,774 | ) | ||||||
| Change in net assets from capital transactions | $ | (228,454,983 | ) | $ | (405,593,839 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||
Prime Class Shares | ||||||||||
| Issued | 125,892,511 | 321,349,097 | ||||||||
| Reinvested | – | 1,260,567 | ||||||||
| Redeemed | (145,935,538 | ) | (384,612,894 | ) | ||||||
| Total Prime Class Shares | (20,043,027 | ) | (62,003,230 | ) | ||||||
Amounts designated as “-” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 47
Statements of Changes in Net Assets (Continued)
| Nationwide Money Market Fund | ||||||||||
| Six Months Ended | Year Ended | |||||||||
| April 30, 2010 | October 31, 2009 | |||||||||
| (Unaudited) | ||||||||||
SHARE TRANSACTIONS: (continued) | ||||||||||
Institutional Class Shares | ||||||||||
| Issued | 120,913,833 | 364,746,188 | ||||||||
| Reinvested | – | 4,185,230 | ||||||||
| Redeemed | (326,644,462 | ) | (709,325,251 | ) | ||||||
| Total Institutional Class Shares | (205,730,629 | ) | (340,393,833 | ) | ||||||
Service Class Shares | ||||||||||
| Issued | 644,205 | 5,168,737 | ||||||||
| Reinvested | – | 18,532 | ||||||||
| Redeemed | (3,325,532 | ) | (8,384,043 | ) | ||||||
| Total Service Class Shares | (2,681,327 | ) | (3,196,774 | ) | ||||||
| Total change in shares | (228,454,983 | ) | (405,593,837 | ) | ||||||
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
48 Semiannual Report 2010
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Money Market Fund
| Operations | Distributions | Ratios / Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of Net | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Asset | Capital | Ratio of | Investment | (Prior to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value, | Net | Total | Net | Contributions | Net Asset | Net Assets | Expenses | Income | Reimbursements) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Investment | 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) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prime Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (d) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .00% | $ | 577,138,502 | 0 | .29% | 0 | .00% | 0 | .66% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (d) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .19% | $ | 597,178,079 | 0 | .58% | 0 | .20% | 0 | .70% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 1 | .00 | 0 | .03 | 0 | .03 | (0 | .03) | (0 | .03) | – | (e) | $ | 1 | .00 | 2 | .65%(f) | $ | 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%(g) | ||||||||||||||||||||||||||||||||||||
| 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%(g) | ||||||||||||||||||||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (d) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .00% | $ | 1,403,939,852 | 0 | .29% | 0 | .00% | 0 | .53% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (d) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .21% | $ | 1,609,662,042 | 0 | .56% | 0 | .23% | 0 | .61% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 1 | .00 | 0 | .03 | 0 | .03 | (0 | .03) | (0 | .03) | – | (e) | $ | 1 | .00 | 2 | .73%(f) | $ | 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%(g) | ||||||||||||||||||||||||||||||||||||
| 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%(g) | ||||||||||||||||||||||||||||||||||||
Service Class Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended April 30, 2010 (Unaudited) (d) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .00% | $ | 6,604,574 | 0 | .29% | 0 | .00% | 0 | .93% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2009 (d) | $ | 1 | .00 | – | – | – | – | – | $ | 1 | .00 | 0 | .15% | $ | 9,285,856 | 0 | .63% | 0 | .18% | 0 | .97% | ||||||||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2008 | $ | 1 | .00 | 0 | .03 | 0 | .03 | (0 | .03) | (0 | .03) | – | (e) | $ | 1 | .00 | 2 | .57%(f) | $ | 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% | ||||||||||||||||||||||||||||||||||||
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) | Per share calculations were performed using average shares method. |
| (e) | The amount is less than $0.005 per share. |
| (f) | Includes payment from the Investment Adviser, which increased total return by 0.26% (Note 3). |
| (g) | There were no fee reductions during the period. |
The accompanying notes are an integral part of these financial statements.
2010 Semiannual Report 49
Notes to Financial Statements
April 30, 2010 (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 was originally created under the laws of Ohio in 1997 and was redomesticated as a Delaware statutory trust on February 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust has authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2010, the Trust operates thirty-one (31) 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 Fund management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. The Funds utilize various methods to measure the fair value of its investments on a recurring basis. All investments in securities are recorded at their estimated fair value as described below in the accompanying notes. 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 last quoted sales price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities 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. Values of 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.
50 Semiannual Report 2010
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 securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following among others: (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 combination of these and other methods. Fair value determinations may also take into account significant events that occur before Valuation Time but after the close of the principal market on which such securities trade that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
The Funds are subject to the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”), “Fair Value Measurements and Disclosures” (ASC 820). This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 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 ASC 820 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 in or out of an investment’s assigned level within the hierarchy.
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
The following is a summary of the inputs used to value the Funds’ net assets as of April 30, 2010:
Growth*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 139,031,252 | $ | — | $ | — | $ | 139,031,252 | ||||||||||
| Mutual Fund | 3,842,655 | — | — | 3,842,655 | ||||||||||||||
| Repurchase Agreement | — | 364,084 | — | 364,084 | ||||||||||||||
Total | $ | 142,873,907 | $ | 364,084 | $ | — | $ | 143,237,991 | ||||||||||
2010 Semiannual Report 51
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
Nationwide*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Common Stocks | $ | 766,655,408 | $ | — | $ | — | $ | 766,655,408 | ||||||||||
| Mutual Funds | 14,882,201 | — | — | 14,882,201 | ||||||||||||||
| Repurchase Agreements | — | 7,768,955 | — | 7,768,955 | ||||||||||||||
Total | $ | 781,537,609 | $ | 7,768,955 | $ | — | $ | 789,306,564 | ||||||||||
Money Market*
| Asset Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
| Certificates of Deposit | $ | — | $ | 287,473,241 | $ | — | $ | 287,473,241 | ||||||||||
| Commercial Paper | — | 1,153,102,931 | — | 1,153,102,931 | ||||||||||||||
| Corporate Bonds | — | 16,845,481 | — | 16,845,481 | ||||||||||||||
| Medium Term Notes | — | 39,752,733 | — | 39,752,733 | ||||||||||||||
| Mutual Funds | 198,421,718 | — | — | 198,421,718 | ||||||||||||||
| Sovereign Bond | — | 1,573,958 | — | 1,573,958 | ||||||||||||||
| U.S. Government Mortgage Backed Agencies | — | 365,936,815 | — | 365,936,815 | ||||||||||||||
Total | $ | 198,421,718 | $ | 1,864,685,159 | $ | — | $ | 2,063,106,877 | ||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
| * | See Statement of Investments for identification of securities by type and industry classification. |
| (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 Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Funds may be unable to recover the full amount it paid under the repurchase agreements. 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) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
| (d) | Securities Lending |
To generate additional income, each Fund, with the exception of Money Market, may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions.
52 Semiannual Report 2010
The Funds’ securities lending standards and guidelines require that the borrower (1) deliver 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 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 Fund’s 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, N.A. serves as securities lending agent for the securities lending program of the Funds. JPMorgan Chase Bank, N.A. 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, 2010, the Funds had securities with the following values on loan:
| Value of | Value of | |||||||||||
| Fund | Loaned Securities | Collateral | ||||||||||
| Growth | $ | 343,727 | $ | 364,084 | ||||||||
| Nationwide | 7,548,709 | 7,768,955 | ||||||||||
| (e) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared daily and paid monthly for Money Market, and are declared and paid quarterly for Growth and Nationwide. 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 a return of capital distribution.
| (f) | Federal Income Taxes |
It is the policy of each Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the U.S. 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 Funds are subject to the provisions of ASC 740, “Income Taxes”. In July 2006, the FASB amended ASC 740-10. ASC 740-10 provides guidance regarding how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740-10 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
2010 Semiannual Report 53
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
not sustained upon examination by a taxing authority, the Fund could 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 benefits to recognize in the financial statements. Differences 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 2006 to 2009 remain subject to examination by the Internal Revenue Service.
Fund management has evaluated the implications of ASC 740-10 and has concluded that there is no impact to the Funds’ current financial statements. ASC 740-10 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.
| (g) | 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 proportionally among various or all series of the Trust. For each Fund, income, Fund expenses, and realized and unrealized gains or losses are allocated to each class of shares of the Fund based on the value of the shares of that class outstanding relative to the total value of the outstanding shares of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
3. Transactions with Affiliates
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) 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 has selected the subadviser of each of the Funds as noted below and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of each subadviser.
The subadviser for each Fund is as follows:
| Fund | Subadviser | |||||
| Growth | Aberdeen Asset Management, Inc. (“Aberdeen”) | |||||
| Nationwide | Aberdeen | |||||
| Money Market | Federated Investment Management Company (“Federated”) | |||||
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. For the six months ended April 30, 2010, the Funds paid investment advisory fees to NFA according to the schedule below:
| Total Fees | |||||||||
| Fund | Fee Schedule | (Annual Rate) | |||||||
| 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 | % | |||||||
54 Semiannual Report 2010
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadvisers. NFA paid the subadvisers $1,672,010 for the six months ended April 30, 2010.
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits Money Market’s and Growth’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding the amounts listed in the table below until at least February 28, 2011:
| Amount | ||||||
| Fund | Classes | (Annual Rate) | ||||
| Money Market | Prime | 0.59% | ||||
| Institutional Class | 0.59% | |||||
| Service Class (a) | 0.59% | |||||
| Growth (b) | Class A | 1.12% | ||||
| Class B | 1.12% | |||||
| Class C | 1.12% | |||||
| Class D | 1.12% | |||||
| Class R2 | 1.12% | |||||
| Institutional Service Class | 1.12% | |||||
| Institutional Class | 1.12% | |||||
| (a) | In addition, with respect to Service Class Shares, the Money Market Fund’s Operating Expenses are limited to 0.75%, including the class’s Rule 12b-1 fees and fees paid pursuant to the Fund’s Administrative Service Plan. | |
| (b) | Effective March 1, 2010, the Fund Operating Expenses of the Growth Fund are limited to 1.12%. |
NFA may request and receive reimbursement from Money Market and Growth 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. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA.
As of April 30, 2010, the cumulative potential reimbursements of the following Fund, listed by the year in which NFA waived or reimbursed fees or expenses to the Fund, are:
| Fiscal Year | Six Months Ended | |||||||||||
| 2009 | April 30, 2010 | |||||||||||
| Fund | Amount | Amount | ||||||||||
| Growth | N/A | – | ||||||||||
| Money Market | $ | 188 | $ | 1,237 | ||||||||
N/A — Not Applicable
— Amounts designated as “–” are zero or have been rounded to zero.
NFA has committed to limit its actual recoupment to 50% (of the amounts shown above) of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010.
Nationwide Fund Management LLC (“NFM”), a wholly-owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly-owned subsidiary of NFS), provides various administrative and accounting services for the Funds and serves as Transfer and Dividend Disbursing Agent for the Funds. For the period ended April 30, 2010, pursuant to a Fund Administration and Transfer Agency Agreement, fees for such services were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated
2010 Semiannual Report 55
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
proportionally among all series within the Trust in proportion to the average daily net assets of each series and 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. |
In addition, the Funds also pay out-of-pocket expenses reasonably incurred by NFM in providing services to the Funds, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees (“Networking Fees”) paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders (“beneficial accounts”). Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided, the Networking Fees range from $6 to $20 per beneficial account per year.
See “Subsequent Events note 10” below for information on fund administration and transfer agency arrangements for the Funds after April 30, 2010.
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Funds. The Funds did not pay any additional fee for these services.
Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may 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 inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class A, Class D, Class R2 (formerly Class R), Prime Shares, Service Class and Institutional Service Class shares of each of the Funds, as applicable.
56 Semiannual Report 2010
For the six months ended April 30, 2010, NFS received the following amounts in Administrative Services fees from each Fund:
| Fund | Amount | |||||||
| Growth | $ | 6,010 | ||||||
| Nationwide | 210,774 | |||||||
| Money Market | — | |||||||
— Amounts designated as “–” are zero or have been rounded to zero.
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM 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, 2010, the Funds’ portion of such costs amounted to $15,083.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under 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 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% | |||||||||||||||||
N/A — Not Applicable
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A and Class D shares. These fees are deducted from and are not included in proceeds from sales of Class A and Class D shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A and Class D shares of the Funds. NFD also receives fees for services as principal underwriter for Class B shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B shares, which may cause the current value of a shareholder’s account to fall below the total purchase payments. A CDSC will be imposed on redemptions of Class B shares made within six years of purchase. Class C shares have a CDSC of 1% imposed on redemptions made within one year of purchase. For the six months ended April 30, 2010, NFD received commissions of $68,745 from front-end sales charges of Class A and Class D shares and from CDSCs from Class B and Class C shares of the Funds, of which $60,516 was re-allowed to affiliated broker-dealers of the Funds.
During the six months ended April 30, 2010, NFA voluntarily waived investment advisory fees payable by Money Market in an amount equal to $2,529,507. During the same period, NFD voluntarily waived Rule 12b-1 fees payable by Service Class shares of Money Market in an amount equal to $5,458. Also during that period, NFS voluntarily waived fees payable to it pursuant to the Trust’s Administrative Services Plan by Prime shares and Service Class shares of Money Market in an amount equal to $378,046. Each of these fee waivers was made voluntarily, and neither NFA, NFD nor NFS shall be entitled to reimbursement by Money Market of any of the amounts waived. Such waivers may be discontinued at any time, and neither NFA, NFD nor NFS represents that any of these voluntary waivers will be continued or repeated.
2010 Semiannual Report 57
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
4. Redemption Fees
The Funds (except for Money Market) assess a 2.00% redemption fee on all classes of shares that are sold or exchanged within thirty calendar days of purchase. The redemption fee, if any, is paid directly to the applicable Fund class and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through automatically reinvested dividends or capital gains.
For the six months ended April 30, 2010, the Funds had contributions to capital due to the collection of redemption fees in the amounts of:
| Institutional | Institutional | |||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class D | Class R2 | Service Class | Class | |||||||||||||||||||||||
| Growth | $ | 18 | $ | 1 | $ | — | $ | 309 | $ | — | $ | — | $ | — | ||||||||||||||||
| Nationwide | 1,616 | 17 | — | 163 | — | N/A | — | |||||||||||||||||||||||
For the year ended October 31, 2009, the Funds had contributions to capital due to the collection of redemption fees in the amounts of:
| Institutional | Institutional | |||||||||||||||||||||||||||||
| Fund | Class A | Class B | Class C | Class D | Class R2 | Service Class | Class | |||||||||||||||||||||||
| Growth | $ | 427 | $ | 9 | $ | 520 | $ | 436 | $ | — | $ | — | $ | — | ||||||||||||||||
| Nationwide | 308 | 72 | — | 1,389 | — | N/A | 8 | |||||||||||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
N/A — Not Applicable
5. Bank Loans and Earnings Credit
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.14% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by a Fund 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 the Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended April 30, 2010.
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Funds and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. 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 those series of the Trust 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.
58 Semiannual Report 2010
6. Investment Transactions
For the six months ended April 30, 2010, purchases of and sales (excluding short-term securities) were as follows:
| Fund | Purchases | Sales | ||||||||||
| Growth | $ | 71,118,619 | $ | 77,975,776 | ||||||||
| Nationwide | 191,436,827 | 199,849,298 | ||||||||||
For the six months ended April 30, 2010, purchases and sales of U.S. Government Securities were as follows:
| Fund | Purchases | Sales | ||||||||||
| Money Market | $ | — | $ | — | ||||||||
Amounts designated as “—” are zero or have been rounded to zero.
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 made against the Trust. Based on experience however, the Trust expects the risk of loss to be remote.
8. Other
As of April 30, 2010, 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.
| % of | Number of | |||||||||||
| Fund | Shares | Accounts | ||||||||||
| Nationwide | 27.70 | % | 2 | |||||||||
| Money Market | 77.27 | 3 | ||||||||||
9. Federal Tax Information
As of April 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund was as follows:
| Net Unrealized | ||||||||||||||||||
| Tax Cost of | Unrealized | Unrealized | Appreciation/ | |||||||||||||||
| Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||||
| Growth | $ | 124,591,246 | $ | 20,114,740 | $ | (1,467,995 | ) | $ | 18,646,745 | |||||||||
| Nationwide | 682,037,005 | 122,439,921 | (15,170,362 | ) | 107,269,559 | |||||||||||||
| Money Market | 2,063,106,877 | — | — | — | ||||||||||||||
Amounts designated as “—” are zero or have been rounded to zero.
10. Subsequent Events
Effective May 1, 2010, the Trust entered into a new Joint Fund Administration and Transfer Agency Agreement with NFM. Under the Joint Administration Agreement, NFM is paid an annual fee for fund administration and transfer agency services based on the sum of the following: (i) the amount payable by NFM to its
2010 Semiannual Report 59
Notes to Financial Statements (Continued)
April 30, 2010 (Unaudited)
sub-administrator and sub-transfer agent; and (ii) a percentage of the combined average daily net assets of the Trust and Nationwide Variable Insurance Trust, a Delaware statutory trust and registered investment company that is affiliated with the Trust. In addition, the Trust pays out-of-pocket-expenses reasonably incurred by NFM in providing services to the Funds and the Trust, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders. Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided fees for these services may range from $6 to $30 per customer per year.
60 Semiannual Report 2010
Supplemental Information
April 30, 2010 (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 of Trustees (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 January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 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 January 21, 2010 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, 2009) compared with performance groups and performance universes created by Lipper 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, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” 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, 2009, (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) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) 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 January 21, 2010 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 (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 transactions, including the standards and performance in seeking best execution, allocation of soft
2010 Semiannual Report 61
Supplemental Information
April 30, 2010 (Unaudited) (Continued)
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 January 21, 2010 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 prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
Nationwide Growth Fund
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by Nationwide Fund Advisors (“NFA”), the Fund’s Adviser, and Aberdeen Asset Management Inc., 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. The Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2009, the Fund’s performance for Class A shares was in the third, first, and second quintiles, respectively, of its Peer Group, and that for the one-year period ended September 30, 2009, the Fund’s performance for Class A shares was at the median of its Peer Group. The Trustees also noted that the Fund outperformed its benchmark, the Russell 1000 Growth Index, for each of these periods.
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class A shares were both in the first quintile of its Peer Group. The Trustees also noted that while the Fund’s total expenses for Class A shares were in the fourth quintile of its Peer Group, such expenses were only ten basis points higher than the median. 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 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 Agreement 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 Asset Management Inc., 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. The Trustees noted that, for each of the one- and five-year periods ended September 30, 2009, the Fund’s performance for Class A shares was in the fifth quintile of its Peer Group, while for the three-year period ended September 30, 2009, the Fund’s performance for Class A shares was in the fourth quintile of its Peer Group. The Trustees also noted that, for each period, the Fund underperformed its benchmark, the S&P 500® Index. The Trustees noted that the Fund has been on the watch list since the fourth quarter of 2008. The Trustees indicated that the Fund’s underperformance for the one-year period ended September 30, 2009 was due in large part to the period during the fourth quarter of 2008 before a portfolio manager had been replaced. The Trustees noted that the Fund’s performance had improved
62 Semiannual Report 2010
significantly under the new team, noting that it was 186 basis points above its benchmark for the first six months of 2009.
The Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class A shares 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 also noted that the advisory fee schedule included breakpoints, and that the first breakpoint has been reached.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
Nationwide Money Market Fund
After noting that Federated Investment Management Company (“Federated”) began managing the Fund in April 2009, the Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Federated, 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. The Trustees noted that the Fund’s performance for Prime shares was in the fifth quintile of its Peer Group and the fourth, third, and second quintiles of its Peer Universe for the one-, three-, and five-year periods ended September 30, 2009, respectively. The Trustees noted that for each period, the Fund underperformed its benchmark, the iMoneyNet First Tier Retail Index.
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 fifth 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 an advisory fee waiver. The Trustees then noted that current market conditions had increased the time and resources dedicated to supporting the Money Market Funds. The Trustees also noted that NFA had established significant fee waivers, which amounted to over $3.8 million for the Nationwide Money Market Fund and the NVIT Money Market Fund, due to the low interest rate environment. 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 indicated that the advisory fee schedule includes breakpoints, and that the second breakpoint has been reached.
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
2010 Semiannual Report 63
Management Information
April 30, 2010 (Unaudited)
Officers of the Trust
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Charles E. Allen 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). | 86 | None | ||||||||||
| Paula H.J. Cholmondeley 1947 | Trustee since July 2000 | Ms. Cholmondeley focuses full time on corporate governance. She sits on public company boards and is also on the faculty of the National Association of Corporate Directors. She has served as Chief Executive Officer of Sorrel Group (management consulting company) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | 86 | 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 DeVore 1940 | Trustee since June 1990 | Retired. Dr. DeVore served as the interim President of Greensboro College from 2009 though April 2010. He served as President of Otterbein College from July 1984 through July 2009, and as President of Davis and Elkins College from 1982 through 1984. | 86 | None | ||||||||||
| Phyllis Kay Dryden 1947 | Trustee since December 2004 | Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm. | 86 | None | ||||||||||
64 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| Barbara L. Hennigar 1935 | Trustee since July 2000 | Ms. Hennigar was Executive Vice President of OppenheimerFunds (an asset management company) from October 1992 until June 2000; Chairman of Oppenheimer Funds Services from October 1999 until June 2000; and President and CEO from June 1992 until October 1999. She was previously Board Chair of a non-profit independent school, and is currently an independent trustee and endowment chair of St. Mary’s Academy, an independent school in Denver, CO. | 86 | None | ||||||||||
| Barbara I. Jacobs 1950 | Trustee since December 2004 | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 through 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association-College Retirement Equities Fund). | 86 | None | ||||||||||
| Douglas F. Kridler 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 community foundation that manages over 1,700 individual funds and investments) since February 2002. | 86 | None | ||||||||||
2010 Semiannual Report 65
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Number of Portfolios in the | ||||||||||||||
| Position(s) Held | Nationwide Fund | |||||||||||||
| with the Trust | Complex | |||||||||||||
| Name and | and Length of | Principal Occupation(s) | Overseen | |||||||||||
| Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Other Directorships Held by Trustee3 | ||||||||||
| David C. Wetmore 1948 | Trustee since 1995 and Chairman since February 2005 | Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology-oriented investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr. Wetmore served as the Chief Operating Officer, Chief Executive Officer, 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. | 86 | None | ||||||||||
| 1 | Length of time served includes time served with predecessor of the Trust. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years. | |
| 3 | Directorships held in (i) any other investment companies registered under the 1940 Act, (ii) 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 (iii) any company subject to the requirements of Section 15(d) of the Exchange Act. |
66 Semiannual Report 2010
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Michael S. Spangler 1966 | President and Chief Executive Officer since June 2008 | Mr. Spangler is President and Chief Executive Officer of Nationwide Funds Group, which includes NFA3, Nationwide Fund Management LLC3 and Nationwide Fund Distributors LLC3, and is a Senior Vice President of NFS3. From May 2004-May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. | N/A | N/A | ||||||||||
| Stephen T. Grugeon 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. From February 2008-June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008 he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006. | N/A | N/A | ||||||||||
| Joseph Finelli 1957 | Treasurer since September 2007 | Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3. | N/A | N/A | ||||||||||
| Dorothy Sanders 1955 | Chief Compliance Officer since October 2007 | Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank). | N/A | N/A | ||||||||||
| Eric E. Miller 1953 | Secretary since December 2002 | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments3. | N/A | N/A | ||||||||||
2010 Semiannual Report 67
Management Information (Continued)
April 30, 2010 (Unaudited)
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406 (Continued)
| Position(s) Held | Number of | |||||||||||||
| with Fund | Portfolios in Fund | |||||||||||||
| Name | and Length of | Principal Occupation(s) | Complex Overseen | Other | ||||||||||
| and Year of Birth | Time Served1 | During Past Five Years2 | by Trustee | Directorships Held by Trustee4 | ||||||||||
| Doff Meyer 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)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC. | N/A | N/A | ||||||||||
| Lynnett Berger 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 | ||||||||||
| 1 | Length of time served includes time served with the Trust’s predecessors. | |
| 2 | Unless otherwise noted, the information presented is the principal occupation of the Officer during the past five years. | |
| 3 | These positions are held with an affiliated person or principal underwriter of the Funds. | |
| 4 | 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 Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
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 subadvisers 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 Fund. The Fund’s proxy voting policies and procedures are 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.
68 Semiannual Report 2010
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P.O. Box 5354
Cincinnati, OH 45201-5354
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.
©2010 Nationwide Funds Group.
All rights reserved.
SAR-CORE2 6/10
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) 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.
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(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 (17 CFR § 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. | ||
| 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, disclosed the following information for each such divested security: |
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| (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 of Section 12 of the 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.
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
4
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, concerned 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.
{NOTE — THIS IS REQUIRED BEGINNING WITH THE FIRST REPORTING PERIOD ENDING AFTER JANUARY 1, 2004. For purposes of this Item, adoption of procedures by which shareholders may recommend nominees to the registrant’s board of directors, where the registrant’s most recent proxy disclosure (in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR § 240.14a-101)), or this Item, indicated that the registrant did not have in place such procedures, will constitute a material change.}
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.
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(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.
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 A. Finelli | ||||
| Name: | Joseph A. Finelli | ||||
| Title: | Principal Financial Officer | ||||
| Date: | June 25, 2010 | ||||
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 25, 2010 | ||||
| By (Signature and Title) | /s/ Joseph A. Finelli | ||||
| Name: | Joseph A. Finelli | ||||
| Title: | Principal Financial Officer | ||||
| Date: | June 25, 2010 | ||||
• Print the name and title of each signing officer under his or her signature.
6