<PAGE> 1
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NATIONWIDE ASSET ALLOCATION TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1999
(UNAUDITED)
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<PAGE> 2
NATIONWIDE ASSET ALLOCATION TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1999
(UNAUDITED)
TABLE OF CONTENTS
<TABLE>
<S> <C>
Statements of Investments:
Aggressive Portfolio................................... 1
Moderately Aggressive Portfolio........................ 2
Moderate Portfolio..................................... 3
Moderately Conservative Portfolio...................... 4
Conservative Portfolio................................. 5
Statements of Assets and Liabilities........................ 6
Statements of Operations.................................... 7
Statements of Changes in Net Assets......................... 8
Financial Highlights........................................ 11
Notes to Financial Statements............................... 14
</TABLE>
<PAGE> 3
NATIONWIDE ASSET ALLOCATION TRUST
AGGRESSIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (100.0%)
AGGRESSIVE GROWTH (40.1%)
98,155 Nationwide Separate Account
Trust -- Nationwide Small
Company Fund $ 1,691,207
18,180 Oppenheimer Capital Appreciation
Fund Class A 849,018
19,038 Oppenheimer Discovery Fund Class
A 845,872
-----------
3,386,097
-----------
GROWTH (39.9%)
17,464 American Century Equity Growth
Fund 424,554
9,512 Dreyfus Appreciation Fund, Inc. 427,662
8,076 Federated Stock Trust 336,922
15,291 MAS Equity Portfolio Adviser
Class 335,180
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
GROWTH (CONTINUED)
39,853 Nationwide Separate Account
Trust -- Capital Appreciation
Fund $ 1,182,833
5,985 Strong Schafer Value Fund 331,829
13,670 Warburg Pincus Capital
Appreciation Fund 336,556
-----------
3,375,536
-----------
GROWTH & INCOME (20.0%)
9,644 Nationwide Fund Class D 334,351
112,529 Nationwide S&P 500 Index Fund
Local Fund Shares 1,352,604
-----------
1,686,955
-----------
TOTAL INVESTMENTS $ 8,448,588
===========
(cost $7,591,712)
</TABLE>
- --------------------------------------------------------------------------------
Cost for federal income tax purposes: $7,685,582.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 1999.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 1
<PAGE> 4
NATIONWIDE ASSET ALLOCATION TRUST
MODERATELY AGGRESSIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (90.2%)
AGGRESSIVE GROWTH (30.1%)
61,468 Nationwide Separate Account
Trust -- Nationwide Small
Company Fund $ 1,059,090
10,434 Oppenheimer Capital Appreciation
Fund Class A 487,264
12,788 Oppenheimer Discovery Fund
Class A 568,177
-----------
2,114,531
-----------
GROWTH (30.1%)
11,743 American Century Equity Growth
Fund 285,480
6,270 Dreyfus Appreciation Fund, Inc. 281,918
6,656 Federated Stock Trust 277,678
9,520 MAS Equity Portfolio Adviser
Class 208,678
23,759 Nationwide Separate Account
Trust -- Capital Appreciation
Fund 705,168
2,500 Strong Schafer Value Fund 138,603
8,626 Warburg Pincus Capital
Appreciation Fund 212,362
-----------
2,109,887
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
GROWTH & INCOME (20.0%)
8,153 Nationwide Fund Class D $ 282,661
93,324 Nationwide S&P 500 Index Fund
Local Fund Shares 1,121,751
-----------
1,404,412
-----------
INCOME (10.0%)
71,370 Nationwide Separate Account
Trust -- Nationwide Income Fund 700,142
-----------
TOTAL MUTUAL FUNDS 6,328,972
-----------
(cost $5,749,281)
- ---------
PRINCIPAL
- ---------
FIXED INCOME (9.8%)
$ 684,592 Nationwide Fixed Contract, 6.45% 684,592
-----------
(cost $684,592)
TOTAL INVESTMENTS $ 7,013,564
===========
(cost $6,433,873)
</TABLE>
- --------------------------------------------------------------------------------
Cost for federal income tax purposes: $6,507,144.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 1999.
The Nationwide Fixed Contract rate changes quarterly.
See accompanying notes to financial statements.
2 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 5
NATIONWIDE ASSET ALLOCATION TRUST
MODERATE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (90.3%)
AGGRESSIVE GROWTH (20.2%)
42,520 Nationwide Separate Account
Trust -- Nationwide Small
Company Fund $ 732,619
7,806 Oppenheimer Capital Appreciation
Fund Class A 364,549
8,298 Oppenheimer Discovery Fund Class
A 368,666
-----------
1,465,834
-----------
GROWTH (20.1%)
9,161 American Century Equity Growth
Fund 222,712
3,280 Dreyfus Appreciation Fund, Inc. 147,447
3,491 Federated Stock Trust 145,632
6,627 MAS Equity Portfolio Adviser
Class 145,259
17,285 Nationwide Separate Account
Trust -- Capital Appreciation
Fund 513,008
2,559 Strong Schafer Value Fund 141,859
5,965 Warburg Pincus Capital
Appreciation Fund 146,847
-----------
1,462,764
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
GROWTH & INCOME (30.2%)
12,716 Nationwide Fund Class D $ 440,876
145,949 Nationwide S&P 500 Index Fund
Local Fund Shares 1,754,310
-----------
2,195,186
-----------
INCOME (19.8%)
146,873 Nationwide Separate Account
Trust -- Nationwide Income Fund 1,440,825
-----------
TOTAL MUTUAL FUNDS 6,564,609
-----------
(cost $6,001,546)
- ---------
PRINCIPAL
- ---------
FIXED INCOME (9.7%)
$ 700,861 Nationwide Fixed Contract, 6.45% 700,861
-----------
(cost $700,861)
TOTAL INVESTMENTS $ 7,265,470
===========
(cost $6,702,407)
</TABLE>
- --------------------------------------------------------------------------------
Cost for federal income tax purposes: $6,755,527.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 1999.
The Nationwide Fixed Contract rate changes quarterly.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 3
<PAGE> 6
NATIONWIDE ASSET ALLOCATION TRUST
MODERATELY CONSERVATIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (80.5%)
AGGRESSIVE GROWTH (10.2%)
8,724 Nationwide Separate Account
Trust -- Nationwide Small
Company Fund $ 150,321
1,316 Oppenheimer Capital Appreciation
Fund Class A 61,479
2,059 Oppenheimer Discovery Fund Class
A 91,502
-----------
303,302
-----------
GROWTH (10.3%)
2,520 American Century Equity Growth
Fund 61,260
688 Dreyfus Appreciation Fund, Inc. 30,936
717 Federated Stock Trust 29,905
1,345 MAS Equity Portfolio Adviser
Class 29,473
5,147 Nationwide Separate Account
Trust -- Capital Appreciation
Fund 152,771
-----------
304,345
-----------
GROWTH & INCOME (30.1%)
5,137 Nationwide Fund Class D 178,093
59,480 Nationwide S&P 500 Index Fund
Local Fund Shares 714,945
-----------
893,038
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
INCOME (29.9%)
90,256 Nationwide Separate Account
Trust -- Nationwide Income Fund $ 885,414
-----------
TOTAL MUTUAL FUNDS 2,386,099
-----------
(cost $2,253,262)
- ---------
PRINCIPAL
- ---------
FIXED INCOME (19.5%)
$ 579,609 Nationwide Fixed Contract, 6.45% 579,609
-----------
(cost $579,609)
TOTAL INVESTMENTS $ 2,965,708
===========
(cost $2,832,871)
</TABLE>
- --------------------------------------------------------------------------------
Cost for federal income tax purposes: $2,859,592.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 1999.
The Nationwide Fixed Contract rate changes quarterly.
See accompanying notes to financial statements.
4 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 7
NATIONWIDE ASSET ALLOCATION TRUST
CONSERVATIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (75.4%)
GROWTH (10.2%)
1,695 American Century Equity Growth
Fund $ 41,200
861 Dreyfus Appreciation Fund, Inc. 38,704
881 Federated Stock Trust 36,749
1,727 MAS Equity Portfolio Adviser
Class 37,847
6,547 Nationwide Separate Account
Trust -- Capital Appreciation
Fund 194,320
650 Strong Schafer Value Fund 36,045
-----------
384,865
-----------
GROWTH & INCOME (20.3%)
4,331 Nationwide Fund Class D 150,146
51,187 Nationwide S&P 500 Index Fund
Local Fund Shares 615,263
-----------
765,409
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
SHARES SECURITY VALUE
- ----------------------------------------------------------
<C> <S> <C>
INCOME (44.9%)
172,250 Nationwide Separate Account
Trust -- Nationwide Income Fund $ 1,689,771
-----------
TOTAL MUTUAL FUNDS
(cost $2,806,782) 2,840,045
-----------
- ---------
PRINCIPAL
- ---------
FIXED INCOME (24.6%)
$ 926,710 Nationwide Fixed Contract, 6.45% 926,710
-----------
(cost $926,710)
TOTAL INVESTMENTS $ 3,766,755
===========
(cost $3,733,492)
</TABLE>
- --------------------------------------------------------------------------------
Cost for federal income tax purposes: $3,745,205.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 1999.
The Nationwide Fixed Contract rate changes quarterly.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 5
<PAGE> 8
NATIONWIDE ASSET ALLOCATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATELY MODERATELY
AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $7,591,712, $6,433,873,
$6,702,407, $2,832,871, and
$3,733,492, respectively) $8,448,588 $7,013,564 $7,265,470 $2,965,708 $3,766,755
Receivable for investments sold -- -- -- 15,459 5,000
Receivable for fund shares sold 13,379 35,719 11,885 -- --
Interest and dividends receivable -- 240 249 206 329
---------- ---------- ---------- ---------- ----------
Total assets 8,461,967 7,049,523 7,277,604 2,981,373 3,772,084
---------- ---------- ---------- ---------- ----------
LIABILITIES
Payable for investments purchased 13,379 35,838 12,010 102 4,542
Payable for fund shares repurchased -- -- -- 15,460 623
Management fee payable 3,293 2,745 2,877 1,188 1,489
---------- ---------- ---------- ---------- ----------
Total liabilities 16,672 38,583 14,887 16,750 6,654
---------- ---------- ---------- ---------- ----------
NET ASSETS $8,445,295 $7,010,940 $7,262,717 $2,964,623 $3,765,430
========== ========== ========== ========== ==========
REPRESENTED BY:
Capital $7,586,254 $6,408,638 $6,665,653 $2,784,232 $3,646,314
Net unrealized appreciation on
investments 856,876 579,691 563,063 132,837 33,263
Accumulated undistributed realized gain
on investments 7,360 7,020 9,129 29,491 54,928
Accumulated undistributed net
investment income (loss) (5,195) 15,591 24,872 18,063 30,925
---------- ---------- ---------- ---------- ----------
NET ASSETS $8,445,295 $7,010,940 $7,262,717 $2,964,623 $3,765,430
========== ========== ========== ========== ==========
Shares of beneficial interest outstanding
(unlimited number of shares authorized) 687,647 583,365 605,817 255,906 341,758
========== ========== ========== ========== ==========
NET ASSET VALUE, offering and redemption
price per share $ 12.28 $ 12.02 $ 11.99 $ 11.58 $ 11.02
========== ========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
6 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 9
NATIONWIDE ASSET ALLOCATION TRUST
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATELY MODERATELY
AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest $ -- $ 17,690 $ 17,858 $ 15,510 $ 21,845
Dividends 13,209 23,264 39,126 22,213 36,329
-------- -------- -------- -------- --------
Total income 13,209 40,954 56,984 37,723 58,174
-------- -------- -------- -------- --------
EXPENSES:
Management Fee 18,423 14,853 14,953 6,519 7,276
-------- -------- -------- -------- --------
NET INVESTMENT INCOME (LOSS) $ (5,214) $ 26,101 $ 42,031 $ 31,204 $ 50,898
======== ======== ======== ======== ========
NET REALIZED AND UNREALIZED GAIN:
Net realized gain on investments $ 28,936 $ 36,257 $ 38,720 $ 49,758 $ 64,166
Net change in unrealized appreciation
(depreciation) on investments 647,507 406,773 343,179 48,470 (19,905)
-------- -------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN 676,443 443,030 381,899 98,228 44,261
-------- -------- -------- -------- --------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $671,229 $469,131 $423,930 $129,432 $ 95,159
======== ======== ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 7
<PAGE> 10
NATIONWIDE ASSET ALLOCATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE PORTFOLIO MODERATELY AGGRESSIVE PORTFOLIO
--------------------------------------- ---------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998(1) JUNE 30, 1999 DECEMBER 31, 1998(1)
---------------- -------------------- ---------------- --------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (5,214) $ 5,904 $ 26,101 $ 27,244
Net realized gain on investments 28,936 261,426 36,257 126,151
Net change in unrealized
appreciation of investments 647,507 209,369 406,773 172,918
----------- ---------- ---------- ----------
Net increase in net assets
resulting from operations 671,229 476,699 469,131 326,313
----------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (5,032) (853) (22,684) (15,070)
From net realized gain from
investment transactions (283,002) -- (155,388) --
----------- ---------- ---------- ----------
Decrease in net assets from
distributions to shareholders (288,034) (853) (178,072) (15,070)
----------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 2,137,919 6,869,107 2,804,556 4,969,052
Net asset value of shares issued
to shareholders from
reinvestment of distributions 288,034 853 178,072 15,070
Cost of shares redeemed (1,237,032) (472,627) (891,000) (667,112)
----------- ---------- ---------- ----------
Increase in net assets from
capital share transactions 1,188,921 6,397,333 2,091,628 4,317,010
----------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS 1,572,116 6,873,179 2,382,687 4,628,253
NET ASSETS-BEGINNING OF PERIOD 6,873,179 -- 4,628,253 --
----------- ---------- ---------- ----------
NET ASSETS-END OF PERIOD $ 8,445,295 $6,873,179 $7,010,940 $4,628,253
=========== ========== ========== ==========
Undistributed net realized gain on
investments $ 7,360 $ 261,426 $ 7,020 $ 126,151
=========== ========== ========== ==========
Undistributed net investment income
(loss) $ (5,195) $ 5,051 $ 15,591 $ 12,174
=========== ========== ========== ==========
SHARE ACTIVITY:
Shares sold 186,127 627,533 245,503 461,292
Reinvestment of distributions 25,581 75 15,862 1,444
Shares redeemed (107,453) (44,216) (77,466) (63,270)
----------- ---------- ---------- ----------
Net increase in number of shares 104,255 583,392 183,899 399,466
=========== ========== ========== ==========
</TABLE>
- ---------------
(1) For the period January 20, 1998 (commencement of operations) through
December 31, 1998.
See accompanying notes to financial statements.
8 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 11
NATIONWIDE ASSET ALLOCATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE PORTFOLIO MODERATELY CONSERVATIVE PORTFOLIO
--------------------------------------- ---------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998(1) JUNE 30, 1999 DECEMBER 31, 1998(1)
---------------- -------------------- ---------------- --------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 42,031 $ 30,436 $ 31,204 $ 23,297
Net realized gain on investments 38,720 63,600 49,758 13,352
Net change in unrealized
appreciation of investments 343,179 219,884 48,470 84,367
---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations 423,930 313,920 129,432 121,016
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (31,852) (15,743) (23,450) (12,988)
From net realized gain from
investment transactions (93,191) -- (33,619) --
---------- ---------- ---------- ----------
Decrease in net assets from
distributions to shareholders (125,043) (15,743) (57,069) (12,988)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 3,320,406 4,516,176 1,652,077 2,404,492
Net asset value of shares issued
to shareholders from
reinvestment of distributions 125,043 15,743 57,069 12,988
Cost of shares redeemed (829,100) (482,615) (740,797) (601,597)
---------- ---------- ---------- ----------
Increase in net assets from
capital share transactions 2,616,349 4,049,304 968,349 1,815,883
---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS 2,915,236 4,347,481 1,040,712 1,923,911
NET ASSETS-BEGINNING OF PERIOD 4,347,481 -- 1,923,911 --
---------- ---------- ---------- ----------
NET ASSETS-END OF PERIOD $7,262,717 $4,347,481 $2,964,623 $1,923,911
========== ========== ========== ==========
Undistributed net realized gain on
investments $ 9,129 $ 63,600 $ 29,491 $ 13,352
========== ========== ========== ==========
Undistributed net investment income $ 24,872 $ 14,693 $ 18,063 $ 10,309
========== ========== ========== ==========
SHARE ACTIVITY:
Shares sold 289,824 420,709 146,700 225,532
Reinvestment of distributions 11,018 1,530 5,105 1,251
Shares redeemed (71,143) (46,121) (65,728) (56,954)
---------- ---------- ---------- ----------
Net increase in number of shares 229,699 376,118 86,077 169,829
========== ========== ========== ==========
</TABLE>
- ---------------
(1) For the period January 20, 1998 (commencement of operations) through
December 31, 1998.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 9
<PAGE> 12
NATIONWIDE ASSET ALLOCATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSERVATIVE PORTFOLIO
---------------------------------------
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998(1)
---------------- --------------------
(UNAUDITED)
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 50,898 $ 24,152
Net realized gain on investments 64,166 18,612
Net change in unrealized appreciation (depreciation) of
investments (19,905) 53,168
---------- -----------
Net increase in net assets resulting from operations 95,159 95,932
---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (32,950) (11,175)
From net realized gain from investment transactions (27,850) --
---------- -----------
Decrease in net assets from distributions to
shareholders (60,800) (11,175)
---------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 2,818,727 2,821,049
Net asset value of shares issued to shareholders from
reinvestment of distributions 60,800 11,175
Cost of shares redeemed (962,705) (1,102,732)
---------- -----------
Increase in net assets from capital share transactions 1,916,822 1,729,492
---------- -----------
NET INCREASE IN NET ASSETS 1,951,181 1,814,249
NET ASSETS-BEGINNING OF PERIOD 1,814,249 --
---------- -----------
NET ASSETS-END OF PERIOD $3,765,430 $ 1,814,249
========== ===========
Undistributed net realized gain on investments $ 54,928 $ 18,612
========== ===========
Undistributed net investment income $ 30,925 $ 12,977
========== ===========
SHARE ACTIVITY:
Shares sold 259,279 268,867
Reinvestment of distributions 5,601 1,072
Shares redeemed (87,987) (105,074)
---------- -----------
Net increase in number of shares 176,893 164,865
========== ===========
</TABLE>
- ---------------
(1) For the period January 20, 1998 (commencement of operations) through
December 31, 1998.
See accompanying notes to financial statements.
10 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 13
NATIONWIDE ASSET ALLOCATION TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE PORTFOLIO MODERATELY AGGRESSIVE PORTFOLIO
--------------------------------------- ---------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998(1) JUNE 30, 1999 DECEMBER 31, 1998(1)
---------------- -------------------- ---------------- --------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF
PERIOD $11.78 $10.00 $11.59 $10.00
------ ------ ------ ------
Net investment income (loss) (0.01) 0.01 0.04 0.10
Net realized and unrealized
appreciation 0.99 1.78 0.77 1.56
------ ------ ------ ------
Total from investment
operations 0.98 1.79 0.81 1.66
------ ------ ------ ------
Distributions from net
investment income (0.01) (0.01) (0.04) (0.07)
Distributions from net
realized gains (0.47) -- (0.34) --
------ ------ ------ ------
Total distributions (0.48) (0.01) (0.38) (0.07)
------ ------ ------ ------
Net increase in net
asset value 0.50 1.78 0.43 1.59
------ ------ ------ ------
NET ASSET VALUE -- END OF
PERIOD $12.28 $11.78 $12.02 $11.59
====== ====== ====== ======
Total return* 8.70% 17.85% 7.23% 16.61%
Ratios and supplemental data:
Net assets end of period
(000's) $8,445 $6,873 $7,011 $4,628
Ratio of expense to average
net assets* 0.50% 0.50% 0.50% 0.50%
Ratio of net investment
income to average net
assets* (0.14)% 0.16% 0.88% 1.16%
Portfolio Turnover* 18.09% 38.42% 17.73% 52.63%
</TABLE>
- ---------------
* Ratios are annualized for periods of less than one year. Total return and
portfolio turnover are not annualized.
(1) For the period January 20, 1998 (commencement of operations) through
December 31, 1998.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 11
<PAGE> 14
NATIONWIDE ASSET ALLOCATION TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE PORTFOLIO MODERATELY CONSERVATIVE PORTFOLIO
--------------------------------------- ---------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998(1) JUNE 30, 1999 DECEMBER 31, 1998(1)
---------------- -------------------- ---------------- --------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF
PERIOD $11.56 $10.00 $11.33 $10.00
------ ------ ------ ------
Net investment income 0.07 0.14 0.12 0.22
Net realized and unrealized
appreciation 0.64 1.53 0.41 1.27
------ ------ ------ ------
Total from investment
operations 0.71 1.67 0.53 1.49
------ ------ ------ ------
Distributions from net
investment income (0.06) (0.11) (0.11) (0.16)
Distributions from net
realized gains (0.22) -- (0.17) --
------ ------ ------ ------
Total distributions (0.28) (0.11) (0.28) (0.16)
------ ------ ------ ------
Net increase in net
asset value 0.43 1.56 0.25 1.33
------ ------ ------ ------
NET ASSET VALUE -- END OF
PERIOD $11.99 $11.56 $11.58 $11.33
====== ====== ====== ======
Total return* 6.31% 16.74% 4.70% 14.97%
Ratios and supplemental data:
Net assets end of period
(000's) $7,263 $4,347 $2,965 $1,924
Ratio of expense to average
net assets* 0.50% 0.50% 0.50% 0.50%
Ratio of net investment
income to average net
assets* 1.40% 1.83% 2.39% 2.79%
Portfolio Turnover* 16.80% 55.92% 31.88% 104.85%
</TABLE>
- ---------------
* Ratios are annualized for periods of less than one year. Total return and
portfolio turnover are not annualized.
(1) For the period January 20, 1998 (commencement of operations) through
December 31, 1998.
See accompanying notes to financial statements.
12 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 15
NATIONWIDE ASSET ALLOCATION TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSERVATIVE PORTFOLIO
---------------------------------------
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998(1)
---------------- --------------------
(UNAUDITED)
<S> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $11.00 $10.00
------ ------
Net investment income 0.15 0.30
Net realized and unrealized appreciation 0.15 0.92
------ ------
Total from investment operations 0.30 1.22
------ ------
Distributions from net investment income (0.13) (0.22)
Distributions from net realized gains (0.15) --
------ ------
Total distributions (0.28) (0.22)
------ ------
Net increase in net asset value 0.02 1.00
------ ------
NET ASSET VALUE -- END OF PERIOD $11.02 $11.00
====== ======
Total return* 2.80% 12.33%
Ratios and supplemental data:
Net assets end of period (000's) $3,765 $1,814
Ratio of expense to average net assets* 0.50% 0.50%
Ratio of net investment income to average net assets* 3.49% 3.60%
Portfolio Turnover* 37.10% 165.15%
</TABLE>
- ---------------
* Ratios are annualized for periods of less than one year. Total return and
portfolio turnover are not annualized.
(1) For the period January 20, 1998 (commencement of operations) through
December 31, 1998.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 13
<PAGE> 16
NATIONWIDE ASSET ALLOCATION TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION
Nationwide Asset Allocation Trust (the "Trust") is an open-end management
investment company organized under the laws of the State of Ohio by a
Declaration of Trust dated September 9, 1997. The Trust currently offers shares
in five separate nondiversified funds (collectively the Life Design Series or
each, a "Portfolio"), each of which is a separately managed portfolio with its
own investment objectives and policies. These Portfolios are the Aggressive
Portfolio, the Moderately Aggressive Portfolio, the Moderate Portfolio, the
Moderately Conservative Portfolio, and the Conservative Portfolio. The Trust was
capitalized on January 6, 1998, when The Nationwide Life Company purchased the
initial shares of each Portfolio at $10.00 per share, and operations commenced
on January 20, 1998. The shares of each Portfolio are sold only to life
insurance company separate accounts to fund the benefits of variable annuity
contracts or life insurance policies.
Each Portfolio is constructed as a "fund of funds" which means that it pursues
its investment objective primarily by allocating its investments among other
mutual funds (the "Underlying Funds") offered by Nationwide Advisory Services,
Inc. ("NAS"), the investment advisor to the Trust, and other leading mutual fund
providers.
Percentages of the Portfolios' investments in Underlying Funds advised by NAS
are summarized as follows:
<TABLE>
<S> <C>
Aggressive Portfolio........................................ 54.0%
Moderately Aggressive Portfolio............................. 55.2%
Moderate Portfolio.......................................... 67.2%
Moderately Conservative Portfolio........................... 70.2%
Conservative Portfolio...................................... 70.4%
</TABLE>
Percentages represent market value as a percentage of net assets at June 30,
1999.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Trust's significant accounting policies:
a) SECURITIES VALUATION -- Shares of Underlying Funds in which the Portfolios
invest are valued at their respective net asset values as determined under
the Investment Company Act of 1940. The securities in the Underlying Funds
are valued as of the close of business of the regular session of trading on
the New York Stock Exchange (currently 4:00 p.m., Eastern time). Underlying
Funds value securities in their portfolios for which market quotations are
readily available at their current market value (generally the last reported
sale price) and all other securities and assets at fair value pursuant to
methods established in good faith by the Board of Trustees or Directors of
the Underlying Fund. The Nationwide Fixed Contract is valued at par value
each day. The par value is calculated each day by the summation of the
following factors: prior day's par value, prior day's interest accrued (par
multiplied by guaranteed fixed rate), and current day net purchase or
redemption.
b) SHARE VALUATION -- The net asset value per share of each Portfolio is
calculated daily by dividing the total value of the Portfolio's assets, less
liabilities, by the number of shares outstanding, rounded to the nearest
cent. The offering and redemption price per share of each Portfolio are equal
to the net asset value per share.
c) SECURITY TRANSACTIONS -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis. Dividend
and capital gain income is recorded on the ex-dividend date. Interest income
for the Fixed Contract is accrued daily and reinvested the following day.
14 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 17
NATIONWIDE ASSET ALLOCATION TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
d) FEDERAL INCOME TAXES -- Each Portfolio's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to regulated
investment companies and to distribute all its taxable income to its
shareholders. Therefore, no federal income tax provision is required. Each
Portfolio is treated as a separate taxable entity.
e) INVESTMENT INCOME -- Dividend income is recorded on the ex-dividend date. For
financial reporting purposes, the Portfolios record distributions of
short-term and long-term capital gains made by the Underlying Funds as
realized gains.
f) DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders arising from
each Portfolio's net investment income and net realized capital gains if any,
are distributed at least once each year. Income distributions and capital
gain distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
g) ESTIMATES -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 3 -- RELATED PARTY TRANSACTIONS
NAS, a subsidiary of the Nationwide Life Insurance Company, serves as the
Portfolios' investment adviser. Under the terms of the Investment Advisory
Agreement, NAS oversees the investment of the assets for the Portfolios and
supervises their daily business affairs. Each of the Portfolios incurs a
management fee of 0.50% of its average daily net assets. Under the Investment
Advisory Agreement with each Portfolio, NAS will bear all expenses of each
Portfolio, other than the management fee and any extraordinary expenses.
Nationwide Investors Services, Inc. ("NIS") acts as transfer and dividend
disbursing agent for the Portfolios. NIS is a wholly owned subsidiary of
Villanova Mutual Fund Trust and is compensated by them under the agreement noted
above.
Nationwide Life Insurance Company is the underwriter of the Nationwide Fixed
Contract.
The following interest earned, dividend income, and capital gain distributions
are for the period January 1, 1999 through June 30, 1999. Dividend income and
capital gain distributions are from Nationwide Mutual Funds as well as
Nationwide Separate Account Trust Funds.
<TABLE>
<CAPTION>
CAPITAL GAIN
INTEREST DIVIDEND DISTRIBUTIONS
EARNED ON THE INCOME FROM FROM
NATIONWIDE NATIONWIDE NATIONWIDE
FIXED CONTRACT FUNDS FUNDS
-------------- ----------- -------------
<S> <C> <C> <C>
Aggressive Portfolio....................... $ -- $ 9,676 $ --
Moderately Aggressive Portfolio............ 17,690 20,701 907
Moderate Portfolio......................... 17,858 37,492 1,848
Moderately Conservative Portfolio.......... 15,510 21,788 1,248
Conservative Portfolio..................... 21,845 35,970 2,172
</TABLE>
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 15
<PAGE> 18
NATIONWIDE ASSET ALLOCATION TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 4 -- BANK LOANS
The Trust has an unsecured bank line of credit of $10 million. Borrowing under
this arrangement bears interest at the Federal Funds rate plus 0.50%. No
compensating balances are required.
NOTE 5 -- INVESTMENT TRANSACTIONS
Purchases and sales of registered investment companies for the six months ended
June 30, 1999 are summarized as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Aggressive Portfolio................................... $2,245,034 $1,347,091
Moderately Aggressive Portfolio........................ 2,669,202 953,491
Moderate Portfolio..................................... 3,171,973 908,013
Moderately Conservative Portfolio...................... 1,412,004 664,546
Conservative Portfolio................................. 2,241,926 809,609
</TABLE>
Net unrealized appreciation (depreciation) on investments at June 30, 1999,
based on cost for federal income tax purposes, was as follows:
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED NET UNREALIZED
APPRECIATION (DEPRECIATION) APPRECIATION
------------ -------------- --------------
<S> <C> <C> <C>
Aggressive Portfolio..................... $788,747 $(25,741) $763,006
Moderately Aggressive Portfolio.......... 537,286 (30,866) 506,420
Moderate Portfolio....................... 566,445 (56,502) 509,943
Moderately Conservative Portfolio........ 141,102 (34,986) 106,116
Conservative Portfolio................... 81,887 (60,337) 21,550
</TABLE>
NOTE 6 -- SUBSEQUENT EVENT
Effective September 1, 1999, Villanova SA Capital Trust (VSA) will succeed NAS
as investment adviser and administrator for the Portfolios and the Trust's
Investment Advisory and Administration Agreement will be transferred from NAS to
VSA. VSA, a registered investment adviser, is a subsidiary of Villanova Capital,
Inc., a 97% owned subsidiary of Nationwide Financial Services, Inc. (NFS). This
change is being made as part of a reorganization of NFS' investment management
operations in an effort to grow and expand NFS' investment management business.
No changes in portfolio managers will occur as part of this reorganization.
Also on September 1, 1999, VSA will enter into an agreement with BISYS Fund
Services Ohio, Inc. to provide sub-administration services.
16 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
