<PAGE> 1
NATIONWIDE(R) ASSET ALLOCATION TRUST
SEMI-ANNUAL REPORT
JUNE 30, 2000
(UNAUDITED)
<PAGE> 2
NATIONWIDE(R) ASSET ALLOCATION TRUST
SEMI-ANNUAL REPORT
JUNE 30, 2000
(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(R) ASSET ALLOCATION TRUST
AGGRESSIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
----------------------------------------------------------
SHARES SECURITY VALUE
----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (100.0%)
AGGRESSIVE GROWTH (39.9%)
125,844 Nationwide Separate Account
Trust -- Nationwide Small Company
Fund* $ 2,995,086
25,599 Oppenheimer Capital Appreciation
Fund Class A 1,505,214
23,013 Oppenheimer Discovery Fund Class A 1,512,156
-----------
6,012,456
-----------
GROWTH (40.1%)
29,397 American Century Equity Growth Fund 759,329
16,057 Dreyfus Appreciation Fund, Inc. 753,722
17,287 Federated Stock Trust 590,692
34,580 MAS Equity Portfolio Adviser Class 601,354
82,829 Nationwide Separate Account
Trust -- Capital Appreciation Fund* 2,141,970
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------
SHARES SECURITY VALUE
----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (CONTINUED)
GROWTH (CONTINUED)
12,183 Strong Schafer Value Fund $ 594,064
19,269 Warburg Pincus Capital Appreciation
Fund 602,335
-----------
6,043,466
-----------
GROWTH & INCOME (20.0%)
19,479 Nationwide Mutual
Funds -- Nationwide Fund Class D* 600,544
189,739 Nationwide Mutual
Funds -- Nationwide S&P 500 Index
Fund Institutional Class* 2,409,685
-----------
3,010,229
-----------
TOTAL INVESTMENTS (cost
$13,781,446) $15,066,151
===========
</TABLE>
--------------------------------------------------------------------------------
* Investment in affiliate
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 2000.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 1
<PAGE> 4
NATIONWIDE(R) ASSET ALLOCATION TRUST
MODERATELY AGGRESSIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (90.1%)
AGGRESSIVE GROWTH (30.0%)
91,010 Nationwide Separate Account
Trust -- Nationwide Small Company
Fund* $ 2,166,031
17,267 Oppenheimer Capital Appreciation
Fund Class A 1,015,302
17,771 Oppenheimer Discovery Fund Class
A 1,167,753
-----------
4,349,086
-----------
GROWTH (30.1%)
22,559 American Century Equity Growth
Fund 582,690
12,312 Dreyfus Appreciation Fund, Inc. 577,905
16,695 Federated Stock Trust 570,461
24,967 MAS Equity Portfolio Adviser
Class 434,175
57,109 Nationwide Separate Account
Trust -- Capital Appreciation
Fund* 1,476,830
5,800 Strong Schafer Value Fund 282,821
13,878 Warburg Pincus Capital
Appreciation Fund 433,832
-----------
4,358,714
-----------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (CONTINUED)
GROWTH & INCOME (20.0%)
18,789 Nationwide Mutual Funds --
Nationwide Fund Class D* $ 579,251
182,966 Nationwide Mutual Funds --
Nationwide S&P 500 Index Fund
Institutional Class* 2,323,671
-----------
2,902,922
-----------
INCOME (10.0%)
149,040 Nationwide Separate Account
Trust -- Nationwide Income Fund* 1,442,704
-----------
TOTAL MUTUAL FUNDS (cost
$12,146,603) 13,053,426
-----------
</TABLE>
<TABLE>
<CAPTION>
----------
PRINCIPAL
----------
<C> <S> <C>
FIXED INCOME (9.9%)
$1,440,371 Nationwide Fixed Contract,
5.75%*(a) (cost $1,440,371) 1,440,371
-----------
TOTAL INVESTMENTS (cost
$13,586,974) $14,493,797
===========
</TABLE>
--------------------------------------------------------------------------------
* Investment in affiliate.
(a) The Nationwide Fixed Contract rate changes quarterly.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 2000.
See accompanying notes to financial statements.
2 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 5
NATIONWIDE(R) ASSET ALLOCATION TRUST
MODERATE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (90.0%)
AGGRESSIVE GROWTH (20.0%)
51,644 Nationwide Separate Account
Trust -- Nationwide Small Company
Fund* $ 1,229,125
10,415 Oppenheimer Capital Appreciation
Fund Class A 612,425
9,412 Oppenheimer Discovery Fund Class
A 618,460
-----------
2,460,010
-----------
GROWTH (20.1%)
14,290 American Century Equity Growth
Fund 369,111
5,231 Dreyfus Appreciation Fund, Inc. 245,560
7,101 Federated Stock Trust 242,658
14,157 MAS Equity Portfolio Adviser
Class 246,191
33,869 Nationwide Separate Account
Trust -- Capital Appreciation
Fund* 875,853
4,939 Strong Schafer Value Fund 240,807
7,822 Warburg Pincus Capital
Appreciation Fund 244,524
-----------
2,464,704
-----------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (CONTINUED)
GROWTH & INCOME (30.0%)
23,782 Nationwide Mutual Funds --
Nationwide Fund Class D* $ 733,187
232,706 Nationwide Mutual Funds --
Nationwide S&P 500 Index Fund
Institutional Class* 2,955,366
-----------
3,688,553
-----------
INCOME (19.9%)
251,881 Nationwide Separate Account
Trust -- Nationwide Income Fund* 2,438,212
-----------
TOTAL MUTUAL FUNDS (cost
$10,442,398) 11,051,479
-----------
</TABLE>
<TABLE>
<CAPTION>
----------
PRINCIPAL
----------
<C> <S> <C>
FIXED INCOME (10.0%)
$1,228,112 Nationwide Fixed Contract,
5.75%*(a) (cost $1,228,112) 1,228,112
-----------
TOTAL INVESTMENTS (cost
$11,670,510) $12,279,591
===========
</TABLE>
--------------------------------------------------------------------------------
* Investment in affiliate.
(a) The Nationwide Fixed Contract rate changes quarterly.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 2000.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 3
<PAGE> 6
NATIONWIDE(R) ASSET ALLOCATION TRUST
MODERATELY CONSERVATIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (80.0%)
AGGRESSIVE GROWTH (10.0%)
9,604 Nationwide Separate Account
Trust -- Nationwide Small Company
Fund* $ 228,571
1,505 Oppenheimer Capital Appreciation
Fund Class A 88,479
2,098 Oppenheimer Discovery Fund Class A 137,892
----------
454,942
----------
GROWTH (10.1%)
3,574 American Century Equity Growth Fund 92,326
930 Dreyfus Appreciation Fund, Inc. 43,639
1,255 Federated Stock Trust 42,883
2,654 MAS Equity Portfolio Adviser Class 46,150
8,961 Nationwide Separate Account
Trust -- Capital Appreciation Fund* 231,719
----------
456,717
----------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (CONTINUED)
GROWTH & INCOME (30.1%)
8,829 Nationwide Mutual
Funds -- Nationwide Fund Class D* $ 272,210
85,934 Nationwide Mutual
Funds -- Nationwide S&P 500 Index
Fund Institutional Class* 1,091,362
----------
1,363,572
----------
INCOME (29.8%)
139,783 Nationwide Separate Account
Trust -- Nationwide Income Fund* 1,353,099
----------
TOTAL MUTUAL FUNDS (cost
$3,499,614) 3,628,330
----------
</TABLE>
<TABLE>
<CAPTION>
---------
PRINCIPAL
---------
<C> <S> <C>
FIXED INCOME (20.0%)
$906,693 Nationwide Fixed Contract,
5.75%*(a) (cost $906,678) 906,678
----------
TOTAL INVESTMENTS (cost $4,406,292) $4,535,008
==========
</TABLE>
--------------------------------------------------------------------------------
* Investment in affiliate.
(a) The Nationwide Fixed Contract rate changes quarterly.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 2000.
See accompanying notes to financial statements.
4 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 7
NATIONWIDE(R) ASSET ALLOCATION TRUST
CONSERVATIVE PORTFOLIO
STATEMENT OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (74.9%)
GROWTH (10.0%)
1,057 American Century Equity Growth Fund $ 27,305
544 Dreyfus Appreciation Fund, Inc. 25,515
713 Federated Stock Trust 24,359
1,528 MAS Equity Portfolio Adviser Class 26,573
5,179 Nationwide Separate Account
Trust -- Capital Appreciation Fund* 133,933
493 Strong Schafer Value Fund 24,016
----------
261,701
----------
GROWTH & INCOME (20.0%)
3,416 Nationwide Mutual
Funds -- Nationwide Fund Class D* 105,320
32,991 Nationwide Mutual
Funds -- Nationwide S&P 500 Index
Fund Institutional Class* 418,982
----------
524,302
----------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------
SHARES SECURITY VALUE
-----------------------------------------------------------
<C> <S> <C>
MUTUAL FUNDS (CONTINUED)
INCOME (44.9%)
121,413 Nationwide Separate Account
Trust -- Nationwide Income Fund* $1,175,281
----------
TOTAL MUTUAL FUNDS (cost
$1,954,055) 1,961,284
----------
</TABLE>
<TABLE>
<CAPTION>
---------
PRINCIPAL
---------
<C> <S> <C>
FIXED INCOME (25.1%)
$656,873 Nationwide Fixed Contract,
5.75%*(a) (cost $656,769) 656,769
----------
TOTAL INVESTMENTS (cost $2,610,824) $2,618,053
==========
</TABLE>
--------------------------------------------------------------------------------
* Investment in affiliate.
(a) The Nationwide Fixed Contract rate changes quarterly.
Portfolio holding percentages represent market value as a percentage of net
assets at June 30, 2000.
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 5
<PAGE> 8
NATIONWIDE(R) ASSET ALLOCATION TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
(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
$13,781,446, $12,146,603, $10,442,398,
$3,499,614, and $1,954,055, respectively) $15,066,151 $13,053,426 $11,051,479 $3,628,330 $1,961,284
Investments in short-term securities, at value
(cost $1,440,371, $1,228,112 $906,678, and
$656,769, respectively) -- 1,440,371 1,228,112 906,678 656,769
Cash -- 501 -- -- --
Interest and dividends receivable 872 896 617 248 134
----------- ----------- ----------- ---------- ----------
Total Assets 15,067,023 14,495,194 12,280,208 4,535,256 2,618,187
----------- ----------- ----------- ---------- ----------
LIABILITIES:
Payable for investment securities purchased 872 669 424 106 31
Management fee payable 6,047 5,792 4,983 1,838 1,063
----------- ----------- ----------- ---------- ----------
Total Liabilities 6,919 6,461 5,407 1,944 1,094
----------- ----------- ----------- ---------- ----------
NET ASSETS $15,060,104 $14,488,733 $12,274,801 $4,533,312 $2,617,093
=========== =========== =========== ========== ==========
REPRESENTED BY:
Capital $13,140,906 $13,047,601 $11,163,180 $4,307,310 $2,652,322
Accumulated undistributed (distributions in
excess of) net investment income (9,193) 26,668 39,307 24,256 19,589
Net unrealized appreciation from investments 1,284,705 906,823 609,081 128,716 7,229
Accumulated undistributed (distributions in
excess of) net realized gains (losses) from
investment transactions 643,686 507,641 463,233 73,030 (62,047)
----------- ----------- ----------- ---------- ----------
NET ASSETS $15,060,104 $14,488,733 $12,274,801 $4,533,312 $2,617,093
=========== =========== =========== ========== ==========
Shares of beneficial interest outstanding
(unlimited number of shares authorized) 1,113,068 1,114,454 975,977 388,788 251,336
=========== =========== =========== ========== ==========
NET ASSET VALUE, offering and redemption price
per share $ 13.53 $ 13.00 $ 12.58 $ 11.66 $ 10.41
=========== =========== =========== ========== ==========
</TABLE>
------------------------------------------------------
See accompanying notes to financial statements.
6 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 9
NATIONWIDE(R) ASSET ALLOCATION TRUST
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATELY MODERATELY
AGGRESSIVE AGGRESSIVE MODERATE CONSERVATIVE CONSERVATIVE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ -- $ 31,299 $ 28,393 $ 21,360 $ 16,687
Dividends 22,900 54,772 81,006 41,018 33,361
--------- --------- --------- -------- --------
Total Income 22,900 86,071 109,399 62,378 50,048
--------- --------- --------- -------- --------
EXPENSES:
Investment management fees 32,092 30,273 27,480 10,338 6,477
--------- --------- --------- -------- --------
NET INVESTMENT INCOME (LOSS) (9,192) 55,798 81,919 52,040 43,571
--------- --------- --------- -------- --------
NET REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions 779,644 600,701 531,931 97,211 (25,555)
Net change in unrealized appreciation
(depreciation) from investments (353,529) (247,504) (278,928) (30,044) 36,006
--------- --------- --------- -------- --------
Net realized/unrealized gains from
investments 426,115 353,197 253,003 67,167 10,451
--------- --------- --------- -------- --------
NET CHANGE IN NET ASSETS RESULTING FROM
OPERATIONS $ 416,923 $ 408,995 $ 334,207 $119,207 $ 54,022
========= ========= ========= ======== ========
</TABLE>
------------------------------------------------------
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 7
<PAGE> 10
NATIONWIDE(R) ASSET ALLOCATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE PORTFOLIO MODERATELY AGGRESSIVE PORTFOLIO
------------------------------- --------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2000 1999 2000 1999
---------------- ------------ ----------------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss) $ (9,192) $ (3,754) $ 55,798 $ 65,537
Net realized gains from investment
transactions 779,644 636,496 600,701 468,195
Net change in unrealized appreciation
(depreciation) from investments (353,529) 1,428,865 (247,504) 981,409
----------- ----------- ----------- -----------
Change in net assets resulting from
operations 416,923 2,061,607 408,995 1,515,141
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (185,891) (5,032) (185,583) (54,946)
Net realized gains from investment
transactions (561,253) (283,002) (398,330) (155,388)
----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions (747,144) (288,034) (583,913) (210,334)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 4,431,140 4,042,247 4,902,950 5,268,161
Dividends reinvested 747,126 288,034 583,904 210,334
Cost of shares redeemed (811,137) (1,953,837) (1,007,580) (1,227,178)
----------- ----------- ----------- -----------
Change in net assets from capital
transactions 4,367,129 2,376,444 4,479,274 4,251,317
----------- ----------- ----------- -----------
Change in net assets 4,036,908 4,150,017 4,304,356 5,556,124
----------- ----------- ----------- -----------
NET ASSETS:
Beginning of period 11,023,196 6,873,179 10,184,377 4,628,253
----------- ----------- ----------- -----------
End of period $15,060,104 $11,023,196 $14,488,733 $10,184,377
=========== =========== =========== ===========
Undistributed net realized gain on
investments included in net assets at
end of period $ 643,686 $ 425,295 $ 507,641 $ 305,270
=========== =========== =========== ===========
Undistributed (distributions in excess
of) net investment income included in
net assets at end of period $ (9,193) $ 185,890 $ 26,668 $ 156,453
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Sold 330,937 341,255 383,095 451,761
Reinvested 56,386 25,580 45,956 18,623
Redeemed (60,019) (164,463) (79,159) (105,288)
----------- ----------- ----------- -----------
Change in shares 327,304 202,372 349,892 365,096
=========== =========== =========== ===========
</TABLE>
------------------------------------------------------
See accompanying notes to financial statements.
8 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 11
NATIONWIDE(R) ASSET ALLOCATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE PORTFOLIO MODERATELY CONSERVATIVE PORTFOLIO
------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
2000 1999 2000 1999
---------------- ------------ ------------------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 81,919 $ 102,823 $ 52,040 $ 70,678
Net realized gains from investment
transactions 531,931 398,443 97,211 162,108
Net change in unrealized appreciation
(depreciation) from investments (278,928) 668,125 (30,044) 74,393
----------- ----------- ---------- -----------
Change in net assets resulting from
operations 334,922 1,169,391 119,207 307,179
----------- ----------- ---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (167,160) (85,557) (65,746) (61,379)
Net realized gains from investment
transactions (344,961) (93,191) (147,668) (33,619)
----------- ----------- ---------- -----------
Change in net assets from shareholder
distributions (512,121) (178,748) (213,414) (94,998)
----------- ----------- ---------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 2,777,362 5,368,173 1,136,167 2,767,849
Dividends reinvested 512,110 178,748 213,410 94,998
Cost of shares redeemed (588,815) (1,133,702) (505,209) (1,215,788)
----------- ----------- ---------- -----------
Change in net assets from capital
transactions 2,700,657 4,413,219 844,368 1,647,059
----------- ----------- ---------- -----------
Change in net assets 2,523,458 5,403,862 750,161 1,859,240
----------- ----------- ---------- -----------
NET ASSETS:
Beginning of period 9,751,343 4,347,481 3,783,151 1,923,911
----------- ----------- ---------- -----------
End of period $12,274,801 $ 9,751,343 $4,533,312 $ 3,783,151
=========== =========== ========== ===========
Undistributed net realized gain on
investments included in net assets at
end of period $ 463,233 $ 276,263 $ 73,030 $ 123,487
=========== =========== ========== ===========
Undistributed net investment income
included in net assets at end of period $ 39,307 $ 124,548 $ 24,256 $ 37,962
=========== =========== ========== ===========
SHARE TRANSACTIONS:
Sold 224,160 462,291 98,530 244,386
Reinvested 41,706 15,629 18,724 8,459
Redeemed (47,296) (96,631) (43,610) (107,530)
----------- ----------- ---------- -----------
Change in shares 218,570 381,289 73,644 145,315
=========== =========== ========== ===========
</TABLE>
------------------------------------------------------
See accompanying notes to financial statements.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 9
<PAGE> 12
NATIONWIDE(R) ASSET ALLOCATION TRUST
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSERVATIVE PORTFOLIO
-------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
---------------- ------------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 43,571 $ 105,107
Net realized gains (losses) from investment transactions (25,555) 112,537
Net change in unrealized appreciation (depreciation) from
investments 36,006 (81,945)
----------- -----------
Change in net assets resulting from operations 54,022 135,699
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (56,615) (92,859)
Net realized gains from investment transactions (132,384) (27,849)
----------- -----------
Change in net assets from shareholder distributions (188,999) (120,708)
----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 598,901 3,743,592
Dividends reinvested 188,995 120,708
Cost of shares redeemed (1,327,750) (2,401,616)
----------- -----------
Change in net assets from capital transactions (539,854) 1,462,684
----------- -----------
Change in net assets (674,831) 1,477,675
----------- -----------
NET ASSETS:
Beginning of period 3,291,924 1,814,249
----------- -----------
End of period $ 2,617,093 $ 3,291,924
=========== ===========
Undistributed (distributions in excess of) net realized gain
(loss) on investments included in net assets at end of
period $ (62,047) $ 95,892
=========== ===========
Undistributed net investment income included in net assets
at end of period $ 19,589 $ 32,633
=========== ===========
SHARE TRANSACTIONS:
Sold 58,163 344,677
Reinvested 18,513 11,170
Redeemed (126,438) (219,614)
----------- -----------
Change in shares (49,762) 136,233
=========== ===========
</TABLE>
------------------------------------------------------
See accompanying notes to financial statements.
10 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 13
NATIONWIDE(R) ASSET ALLOCATION TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE PORTFOLIO MODERATELY AGGRESSIVE PORTFOLIO
----------------------------------------- -----------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED ENDED YEAR ENDED PERIOD ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998(1) 2000 1999 1998(1)
----------- ------------ ------------ ----------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $ 14.03 $ 11.78 $10.00 $ 13.32 $ 11.59 $10.00
------- ------- ------ ------- ------- ------
Net investment income (loss) (0.01) (0.01) 0.01 0.05 0.09 0.10
Net realized gain and unrealized
appreciation 0.44 2.74 1.78 0.37 2.07 1.56
------- ------- ------ ------- ------- ------
Total from investment operations 0.43 2.73 1.79 0.42 2.16 1.66
------- ------- ------ ------- ------- ------
Distributions from net investment
income (0.23) (0.01) (0.01) (0.23) (0.09) (0.07)
Distributions from net realized
gains (0.70) (0.47) -- (0.51) (0.34) --
------- ------- ------ ------- ------- ------
Total distributions (0.93) (0.48) (0.01) (0.74) (0.43) (0.07)
------- ------- ------ ------- ------- ------
Net increase (decrease) in net
asset value (0.50) 2.25 1.78 (0.32) 1.73 1.59
------- ------- ------ ------- ------- ------
NET ASSET VALUE --
END OF PERIOD $ 13.53 $ 14.03 $11.78 $ 13.00 $ 13.32 $11.59
======= ======= ====== ======= ======= ======
Total Return* 3.23% 24.19% 17.85% 3.24% 19.34% 16.61%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000's) $15,060 $11,023 $6,873 $14,489 $10,184 $4,628
Ratio of expense to average net
assets* 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income (loss)
to average net assets* (0.14)% (0.05)% 0.16% 0.92% 0.93% 1.16%
Portfolio turnover* 25.88% 29.81% 38.42% 30.04% 25.88% 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.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 11
<PAGE> 14
NATIONWIDE(R) ASSET ALLOCATION TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE PORTFOLIO MODERATELY CONSERVATIVE PORTFOLIO
----------------------------------------- -----------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED ENDED YEAR ENDED PERIOD ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998(1) 2000 1999 1998(1)
----------- ------------ ------------ ----------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $ 12.87 $11.56 $10.00 $12.00 $11.33 $10.00
------- ------ ------ ------ ------ ------
Net investment income 0.08 0.14 0.14 0.13 0.24 0.22
Net realized gain and unrealized
appreciation 0.27 1.53 1.53 0.17 0.84 1.27
------- ------ ------ ------ ------ ------
Total from investment operations 0.35 1.67 1.67 0.30 1.08 1.49
------- ------ ------ ------ ------ ------
Distributions from net investment
income (0.20) (0.14) (0.11) (0.19) (0.24) (0.16)
Distributions from net realized
gains (0.44) (0.22) -- (0.45) (0.17) --
------- ------ ------ ------ ------ ------
Total distributions (0.64) (0.36) (0.11) (0.64) (0.41) (0.16)
------- ------ ------ ------ ------ ------
Net increase (decrease) in net
asset value (0.29) 1.31 1.56 (0.34) 0.67 1.33
------- ------ ------ ------ ------ ------
NET ASSET VALUE --
END OF PERIOD $ 12.58 $12.87 $11.56 $11.66 $12.00 $11.33
======= ====== ====== ====== ====== ======
Total Return* 2.89% 14.89% 16.74% 2.68% 9.80% 14.97%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000's) $12,275 $9,751 $4,347 $4,533 $3,783 $1,924
Ratio of expense to average net
assets* 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets* 1.49% 1.43% 1.83% 2.52% 2.36% 2.79%
Portfolio turnover* 30.16% 25.63% 55.92% 30.54% 50.16% 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.
12 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 15
NATIONWIDE(R) ASSET ALLOCATION TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSERVATIVE PORTFOLIO
-----------------------------------------
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998(1)
----------- ------------ ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $10.93 $11.00 $10.00
------ ------ ------
Net investment income 0.20 0.33 0.30
Net realized gain and unrealized appreciation 0.04 0.07 0.92
------ ------ ------
Total from investment operations 0.24 0.40 1.22
------ ------ ------
Distributions from net investment income (0.23) (0.32) (0.22)
Distributions from net realized gains (0.53) (0.15) --
------ ------ ------
Total distributions (0.76) (0.47) (0.22)
------ ------ ------
Net increase (decrease) in net asset value (0.52) (0.07) 1.00
------ ------ ------
NET ASSET VALUE --
END OF PERIOD $10.41 $10.93 $11.00
====== ====== ======
Total Return* 2.41% 3.77% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000's) $2,617 $3,292 $1,814
Ratio of expense to average net assets* 0.50% 0.50% 0.50%
Ratio of net investment income to average net assets* 3.36% 3.27% 3.60%
Portfolio turnover* 32.51% 84.11% 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.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 13
<PAGE> 16
NATIONWIDE(R) ASSET ALLOCATION TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Nationwide Asset Allocation Trust (the "Trust") is an open-end management
investment company. The Trust was created under the laws of the State of Ohio as
a business trust by a Declaration of Trust dated as of September 9, 1997, as
subsequently amended. The Trust currently offers shares in five separate
non-diversified 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. This report contains the financial
statements and financial highlights of the following five Portfolios:
Aggressive Portfolio
Moderately Aggressive Portfolio
Moderate Portfolio
Moderately Conservative Portfolio
Conservative Portfolio
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") advised by Villanova Mutual Fund Capital
Trust ("VMF"). VMF is an affiliate of Villanova SA Capital Trust ("VSA"), the
investment adviser to the Trust. The Underlying Funds typically invest, either
directly or indirectly, in stocks, bonds, and other securities. The Portfolios,
except for the Aggressive Portfolio, may also invest in a non-registered fixed
interest contract issued by Nationwide Life Insurance Company (which is
affiliated with VMF and VSA). 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.
Percentages of the Portfolios' investments in Underlying Funds advised by VMF
are summarized as follows:
<TABLE>
<S> <C>
Aggressive Portfolio........................................ 54.1%
Moderately Aggressive Portfolio............................. 65.1
Moderate Portfolio.......................................... 77.1
Moderately Conservative Portfolio........................... 90.1
Conservative Portfolio...................................... 95.2
</TABLE>
Percentages represent market value as a percentage of net assets at June 30,
2000.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) SECURITIES VALUATION
Shares of the 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 trading session on the New York Stock Exchange. The
Underlying Funds generally value securities in their portfolios for which market
quotations are readily available at their market value (generally the last
reported sale price). All other securities and assets are generally valued at
fair value, pursuant to methods established in good faith by the Board of
Trustees or Directors of the Underlying Fund. The fixed interest contract is
valued at par 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.
14 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 17
NATIONWIDE(R) ASSET ALLOCATION TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
(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.
(c) SECURITY TRANSACTIONS
Security transactions are recorded on the trade date. Securities sold are valued
on a specific identification basis. Dividends and capital gains from the
Underlying Funds are recorded on the ex-dividend date. Interest income for the
Fixed Contract is accrued daily and reinvested the following day.
(d) 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.
(e) 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 taxable income, if any, to its shareholders. Therefore no federal
income tax provision is required. Each Portfolio is treated as a separate
taxable entity.
(f) DIVIDENDS TO SHAREHOLDERS
1) Dividend income, if any, is declared and paid quarterly and is recorded on
the ex-dividend date.
2) Distributable net realized capital gains, if applicable, are declared and
distributed at least annually.
3) Dividends and distributions to shareholders are determined in accordance with
federal income tax regulations, which may differ from generally accepted
accounting principles. These "book/tax" differences are considered either
permanent or temporary in nature. In accordance with AICPA (American
Institute of Certified Public Accountants) Statement of Position 93-2,
permanent differences are reclassified within the capital accounts based on
their nature for federal income tax purposes; temporary differences do not
require reclassification. Dividends and distributions that exceed net
investment income and net realized gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income and net realized gains. To the extent distributions exceed current and
accumulated earnings and profits for federal income tax purposes, they are
reported as distributions of paid-in-capital. These reclassifications have no
effect upon the net asset value of the respective Portfolios.
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 15
<PAGE> 18
NATIONWIDE(R) ASSET ALLOCATION TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
Accordingly, for the fiscal year ended December 31, 1999, the following
reclassifications were necessary. Negative amount represent credits and positive
amounts represent debits.
<TABLE>
<CAPTION>
UNDISTRIBUTED
NET INVESTMENT UNDISTRIBUTED
INCOME NET REALIZED GAIN
----------------- -----------------
<S> <C> <C>
Aggressive Portfolio.................................. $189,625 $(189,625)
Moderately Aggressive Portfolio....................... 133,688 (133,688)
Moderate Portfolio.................................... 92,589 (92,589)
Moderately Conservative Portfolio..................... 18,354 (18,354)
Conservative Portfolio................................ 7,408 (7,408)
</TABLE>
(g) USE OF ESTIMATES
The preparation of financial statements, in conformity with generally accepted
accounting principles, requires management to make estimates and assumptions.
These can affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the period. Actual results
could differ from those estimates.
3. TRANSACTION WITH AFFILIATES
Pursuant to an Investment Advisory and Administration Agreement, VSA manages the
investment of the assets and supervises the daily business affairs of the
Portfolios. Under the terms of the Investment Advisory and Administration
Agreement, each Portfolio pays VSA a 0.50% management fee based on the
Portfolio's average daily net assets. VSA also bears all expenses of each
Portfolio other than the management fee and any extraordinary expenses.
Nationwide Investors Services, Inc. ("NISI"), a subsidiary of VSA, serves as
Transfer and Dividend Disbursing Agent for the Portfolios. For these services,
NISI is compensated by VSA under the agreement noted above.
Nationwide Life Insurance Company (NLIC) is the underwriter of the Nationwide
Fixed Contract. NLIC is affiliated with NISI and VSA.
VSA has entered into agreements with BISYS Fund Services Ohio, Inc., to provide
sub-administration and sub-transfer agent services to the Portfolios.
4. BANK LOANS
The Trust currently has an unsecured bank line of credit of $10,000,000.
Borrowings under this arrangement bear interest at the Federal Funds rate plus
.50%.
16 NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT
<PAGE> 19
NATIONWIDE(R) ASSET ALLOCATION TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
JUNE 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
Purchases and sales of registered investment companies for the six-month period
ended June 30, 2000, are summarized as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Aggressive Portfolio $6,977,764 $3,347,147
Moderately Aggressive Portfolio 6,835,300 3,303,941
Moderate Portfolio 5,018,875 3,004,690
Moderately Conservative Portfolio 1,554,592 1,017,046
Conservative Portfolio 655,079 1,208,381
</TABLE>
Net unrealized appreciation (depreciation) on investments at June 30, 2000, were
as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION (DEPRECIATION) APPRECIATION
------------ -------------- --------------
<S> <C> <C> <C>
Aggressive Portfolio $1,392,234 $(107,529) $1,284,705
Moderately Aggressive Portfolio 985,142 (78,319) 906,823
Moderate Portfolio 675,480 (66,399) 609,081
Moderately Conservative Portfolio 147,093 (18,362) 128,731
Conservative Portfolio 29,401 (22,068) 7,333
</TABLE>
NATIONWIDE ASSET ALLOCATION TRUST SEMI-ANNUAL REPORT 17
<PAGE> 20
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