<PAGE> 1
SUPPLEMENT DATED JULY 13, 1998
TO PROSPECTUS DATED MAY 11, 1998
NATIONWIDE FAMILY OF FUNDS
Mutual Fund shares are not deposits or obligations of, or guaranteed by, any
depository institution. Shares are not insured by the FDIC, Federal Reserve
Board or any other agency, and are subject to investment risks, including
possible loss of principal amount invested.
The information under the heading "SUMMARY OF FUND EXPENSES -- ANNUAL FUND
OPERATING EXPENSES" on page 4 of the Prospectus pertaining to Class A Shares is
deleted in its entirety and replaced with the following:
ANNUAL FUND OPERATING EXPENSES***
(as a percentage of net assets)
<TABLE>
<CAPTION>
MID TAX-FREE LONG-TERM INTERMEDIATE MONEY
CAP GROWTH FUND BOND INCOME U.S. GOV'T U.S. GOV'T MARKET
--- ------ ---- ---- -------- ---------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees............... .60% .58% .57% .50% .50% .50% .50% .40%
12b-1 Fees.................... .25% .25% .25% .25% .25% .25% .25% None
Other Expenses(1)............. .40% .20% .15% .29% .19% .29% .29% .20%
---- ---- --- ---- --- ---- ---- ----
Total Fund Operating
Expenses.................... 1.25% 1.03% .97% 1.04% .94% 1.04% 1.04% .60%
</TABLE>
(1) NAS, the Funds' adviser, has agreed to reimburse Other Expenses in the Mid
Cap, Long-Term U.S. Gov't, and Intermediate U.S. Gov't Funds in order to
limit Total Operating Expenses in these Funds to 1.25%, 1.04% and 1.04%,
respectively, until further written notice.
Example:
The following example illustrates the expenses you would pay on a $1,000
investment over the indicated time periods assuming: (1) a 5% annual return, (2)
redemption at the end of each time period, and (3) payment of the maximum
applicable sales charge if any.
<TABLE>
<CAPTION>
MID TAX-FREE LONG-TERM INTERMEDIATE MONEY
CAP GROWTH FUND BOND INCOME U.S. GOV'T U.S. GOV'T MARKET+
--- ------ ---- ---- -------- ---------- ------------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year....................... $67 $65 $64 $55 $54 $55 $55 $ 6
3 Years...................... $92 $86 $84 $77 $74 $77 $77 $19
</TABLE>
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
*** For a more detailed explanation of these expenses, see "Management of the
Trust".
+ For 5 and 10 year examples for the Money Market Fund, see page 6.
<PAGE> 2
The information under the heading "SUMMARY OF FUND EXPENSES -- ANNUAL FUND
OPERATING EXPENSES" on page 5 of the Prospectus pertaining to Class B Shares is
deleted in its entirety and replaced with the following:
ANNUAL FUND OPERATING EXPENSES****
(as a percentage of net assets)
<TABLE>
<CAPTION>
MID TAX-FREE LONG-TERM INTERMEDIATE MONEY
CAP GROWTH FUND BOND INCOME U.S. GOV'T U.S. GOV'T MARKET
--- ------ ---- ---- -------- ---------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees................ .60% .58% .57% .50% .50% .50% .50% .40%
12b-1 Fees..................... 1.00% 1.00% 1.00% .85% .85% .85% .85% None
Other Expenses(1).............. .40% .20% .15% .29% .19% .29% .29% .20%
---- ---- ---- ---- ---- ---- ---- ----
Total Fund Operating
Expenses..................... 2.00% 1.78% 1.72% 1.64% 1.54% 1.64% 1.64% .60%
</TABLE>
(1) NAS, the Funds' adviser, has agreed to reimburse Other Expenses in the Mid
Cap, Long-Term U.S. Gov't, and Intermediate U.S. Gov't Funds in order to
limit Total Operating Expenses in these Funds to 2.00%, 1.64% and 1.64%,
respectively, until further written notice.
Example:
The following example illustrates the expenses you would pay on a $1,000
investment over the indicated time periods assuming: (1) a 5% annual return, (2)
redemption at the end of each time period, and (3) payment of the applicable
CDSC on redemption.
<TABLE>
<CAPTION>
MID TAX-FREE LONG-TERM INTERMEDIATE MONEY
CAP GROWTH FUND BOND INCOME U.S. GOV'T U.S. GOV'T MARKET+
--- ------ ---- ---- -------- ---------- ------------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year....................... $70 $68 $67 $67 $66 $67 $67 $ 6
3 Years...................... $93 $86 $84 $82 $79 $82 $82 $19
</TABLE>
You would pay the following expenses on the same investment assuming no
redemption at the end of each time period.
<TABLE>
<CAPTION>
MID TAX-FREE LONG-TERM INTERMEDIATE MONEY
CAP GROWTH FUND BOND INCOME U.S. GOV'T U.S. GOV'T MARKET+
--- ------ ---- ---- -------- ---------- ------------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year....................... $20 $18 $17 $17 $16 $17 $17 $ 6
3 Years...................... $63 $56 $54 $52 $49 $52 $52 $19
</TABLE>
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
+ For 5 and 10 year examples for the Money Market Fund, see page 6.
2
<PAGE> 3
The information under the heading "SUMMARY OF FUND EXPENSES -- ANNUAL FUND
OPERATING EXPENSES" on page 6 of the Prospectus pertaining to Class D Shares is
deleted in its entirety and replaced with the following:
ANNUAL FUND OPERATING EXPENSES***
(as a percentage of net assets)
<TABLE>
<CAPTION>
MID TAX-FREE LONG-TERM INTERMEDIATE MONEY
CAP GROWTH FUND BOND INCOME U.S. GOV'T U.S. GOV'T MARKET
--- ------ ---- ---- -------- ---------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees.............. .60% .58% .57% .50% .50% .50% .50% .40%
12b-1 Fees................... None None None None None None None None
Other Expenses(1)............ .40% .20% .15% .29% .19% .29% .29% .20%
---- ---- ---- ---- ---- ---- ---- ----
Total Fund Operating
Expenses................... 1.00% .78% .72% .79% .69% .79% .79% .60%
</TABLE>
(1) NAS, the Funds' adviser, has agreed to reimburse Other Expenses in the Mid
Cap, Long-Term U.S. Gov't, and Intermediate U.S. Gov't Funds in order to
limit Total Operating Expenses in these Funds to 1.00%, .79% and .79%,
respectively, until further written notice.
Example:
The following example illustrates the expenses you would pay on a $1,000
investment over the indicated time periods assuming: (1) a 5% annual return, (2)
redemption at the end of each time period, and (3) payment of the maximum
applicable sales charge if any.
<TABLE>
<CAPTION>
MID TAX-FREE LONG-TERM INTERMEDIATE MONEY
CAP GROWTH FUND BOND INCOME U.S. GOV'T U.S. GOV'T MARKET
--- ------ ---- ---- -------- ---------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year..................... $ 55 $ 53 $ 52 $ 53 $ 52 $ 53 $ 53 $ 6
3 Years.................... $ 75 $ 69 $ 67 $ 69 $ 66 $ 69 $ 69 $19
5 Years.................... $ 98 $ 86 $ 83 $ 87 $ 82 $ 87 $ 87 $33
10 Years................... $162 $137 $130 $138 $128 $138 $138 $75
</TABLE>
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
*** For a more detailed explanation of these expenses, see "Management of the
Trust".
THIS SUPPLEMENT SHOULD BE RETAINED WITH
THE PROSPECTUS FOR FUTURE REFERENCE.
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