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NATIONWIDE(R) S&P 500 INDEX FUND
SEMI-ANNUAL REPORT
APRIL 30, 1999
(UNAUDITED)
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NATIONWIDE(R) S&P 500 INDEX FUND
SEMI-ANNUAL REPORT
APRIL 30, 1999
TABLE OF CONTENTS
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Statement of Investments.................................... 3
Statement of Assets and Liabilities......................... 10
Statement of Operations..................................... 11
Statement of Changes in Net Assets.......................... 12
Financial Highlights........................................ 13
Notes to Financial Statements............................... 14
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NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- APRIL 30, 1999
(UNAUDITED)
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COMMON STOCK -- AFFILIATED (0.2%)
FINANCIAL -- BANKS
1,400 Mellon Bank Corp. $ 104,038
-----------
TOTAL COMMON STOCK -- AFFILIATED
(cost $95,450)
COMMON STOCK -- UNAFFILIATED (98.8%)
AEROSPACE (0.9%)
4,900 Boeing Co., (The) 199,063
700 General Dynamics Corp. 49,175
400 Goodrich (B.F.) Co. 15,900
2,100 Lockheed Martin Corp. 90,431
1,200 United Technologies Corp. 173,850
-----------
528,419
-----------
AIRLINES (0.5%)
1,000 AMR Corp.* 69,813
700 Delta Air Lines, Inc. 44,406
800 Federal Express Corp.* 90,050
1,750 Southwest Airlines 56,984
500 U.S. Airways Group, Inc.* 27,219
-----------
288,472
-----------
ALUMINUM (0.3%)
1,200 Alcan Aluminium Ltd. 38,100
1,900 Aluminum Co. of America 118,275
300 Reynolds Metals Co. 18,713
-----------
175,088
-----------
APPAREL (0.3%)
300 Fruit of the Loom, Inc.* 3,206
300 Liz Claiborne, Inc. 9,919
1,500 Nike, Inc. Class B 93,281
300 Reebok International Ltd.* 5,644
200 Russell Corp. 4,425
600 V F Corp. 30,900
-----------
147,375
-----------
BEVERAGES -- ALCOHOLIC (0.6%)
200 Adolph Coors Co. 10,700
2,500 Anheuser-Busch Cos., Inc. 182,813
400 Brown-Forman Corp. Class B 29,475
900 Fortune Brands, Inc. 35,550
2,100 Seagram Co. Ltd. 120,488
-----------
379,026
-----------
BEVERAGES -- SOFT DRINK (2.1%)
13,000 Coca Cola Co. 884,000
2,000 Coca-Cola Enterprises, Inc. 69,000
7,600 PepsiCo, Inc. 280,725
-----------
1,233,725
-----------
BUSINESS EQUIPMENT & SERVICES (1.0%)
1,800 3COM Corp.* 47,025
8,800 Compaq Computer Corp.* 196,350
1,900 Compuware Corp.* 46,313
700 IKON Office Solutions, Inc. 8,444
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BUSINESS EQUIPMENT & SERVICES (CONTINUED)
1,400 Pitney Bowes, Inc. $ 97,913
900 Silicon Graphics, Inc.* 11,475
3,400 Xerox Corp. 199,750
-----------
607,270
-----------
CAPITAL GOODS (5.8%)
1,900 Applied Materials, Inc.* 101,888
100 Briggs & Stratton 6,594
400 Case Corp. 13,850
1,900 Caterpillar, Inc. 122,313
350 Crane Co. 10,128
200 Cummins Engine, Inc. 10,700
1,200 Deere & Co. 51,600
1,200 Dover Corp. 44,325
400 Eaton Corp. 36,675
2,300 Emerson Electric Co. 148,350
17,200 General Electric Co. 1,814,600
900 Genuine Parts Co. 27,000
500 Grainger, (W.W.) Inc. 25,094
100 Harnischfeger Industries, Inc. 975
1,300 Illinois Tool Works, Inc. 100,100
900 Ingersoll-Rand Co. 62,269
400 ITT Industries, Inc. 14,400
300 McDermott International, Inc. 8,700
200 Milacron, Inc. 4,600
200 Millipore Corp. 6,138
2,100 Minnesota Mining &
Manufacturing Co. 186,900
100 NACCO Industries, Inc. 8,080
600 Pall Corp. 11,063
600 Parker-Hannifin Corp. 28,163
300 Perkin-Elmer Corp. (The) 32,438
300 Snap-on, Inc. 9,769
500 Stanley Works (The) 15,219
800 Textron, Inc. 73,700
800 Thermo Electron Corp.* 12,850
300 Timken Co. (The) 6,694
4,302 Tyco International Ltd. 349,538
-----------
3,344,713
-----------
CHEMICALS (2.3%)
1,200 Air Products & Chemicals, Inc. 56,400
2,900 Allied-Signal, Inc. 170,375
600 Avery Dennison Corp. 40,950
1,200 Dow Chemical Co. 157,425
5,900 Du Pont (E.I.) De Nemours & Co. 416,688
400 Eastman Chemical Co. 22,275
700 Engelhard Corp. 13,430
200 FMC Corp.* 13,000
300 Great Lakes Chemical Corp. 14,344
500 Hercules, Inc. 18,905
3,300 Monsanto Company 149,325
600 Morton International, Inc. 24,225
300 Nalco Chemical Co. 10,969
1,800 Occidental Petroleum Corp. 36,338
</TABLE>
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 3
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NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- APRIL 30, 1999 (CONTINUED)
(UNAUDITED)
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CHEMICALS (CONTINUED)
900 PPG Industries, Inc. $ 58,444
800 Praxair, Inc. 41,400
900 Rohm & Haas Co. 40,330
500 Sigma-Aldrich Corp. 16,250
700 Union Carbide Corp. 36,313
300 W.R. Grace & Co.* 4,780
-----------
1,342,166
-----------
COMPUTER EQUIPMENT (4.4%)
200 Data General Corp.* 2,338
13,400 Dell Computer Corp.* 551,913
2,600 EMC Corp.* 283,238
5,300 Hewlett-Packard Co.* 418,038
800 Gateway 2000, Inc. * 52,950
4,800 International Business Machines
Corp. 1,004,100
4,000 Sun Microsystems, Inc.* 239,250
-----------
2,551,827
-----------
COMPUTER SOFTWARE & SERVICES (6.2%)
700 Apple Computer, Inc.* 32,200
3,200 Automatic Data Processing, Inc. 142,400
1,200 BMC Software, Inc.* 51,675
800 Cabletron System, Inc.* 7,550
8,250 Cisco Systems, Inc.* 941,016
2,300 First Data Corp. 97,605
26,500 Microsoft Corp.* 2,154,780
1,300 Seagate Technology* 36,238
1,300 Unisys Corp. 40,869
-----------
3,504,333
-----------
CONSTRUCTION & BUILDING MATERIALS (0.2%)
200 Armstrong World Industries, Inc. 10,950
300 Centex Corp. 10,969
400 Fluor Corp. 13,350
200 Foster Wheeler Corp. 2,700
200 Kaufman & Broad Home Corp. 4,863
1,800 Masco Corp. 52,875
300 Owens Corning 10,688
200 Pulte Corp. 4,525
900 Sherwin Williams Co. 28,013
-----------
138,933
-----------
CONSUMER DURABLES (0.2%)
500 Black & Decker Corp. 28,375
700 Danaher Corp. 46,505
500 Maytag Corp. 34,188
400 Whirlpool Corp. 26,550
-----------
135,618
-----------
CONSUMER NON-CYCLICAL (2.7%)
1,400 Avon Products, Inc. 76,038
600 Clorox Co. 69,225
1,500 Colgate-Palmolive Co. 153,655
700 Ecolab, Inc. 29,355
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CONSUMER NON-CYCLICAL (CONTINUED)
5,700 Gillette Co. (The) $ 297,469
500 International Flavor and
Fragrances 19,750
2,800 Kimberly-Clark Corp. 171,675
200 National Service Industries,
Inc. 7,788
1,451 Newell Rubbermaid, Inc. 68,832
7,000 Procter & Gamble Co. 656,688
300 Tupperware Corp. 7,105
-----------
1,557,580
-----------
CONTAINERS (0.2%)
200 Ball Corp. 10,988
300 Bemis, Inc. 10,500
600 Crown Cork & Seal Co., Inc. 19,500
800 Owens-Illinois, Inc.* 23,200
400 Sealed Air Corp.* 24,325
300 Temple-Inland, Inc. 20,700
900 Tenneco, Inc. 24,300
-----------
133,513
-----------
DRUGS (8.1%)
7,900 Abbott Laboratories 382,655
300 Allergan, Inc. 26,963
500 ALZA Corp.* 16,780
6,900 American Home Products Corp. 420,900
2,700 Amgen, Inc. 165,880
10,400 Bristol-Meyers Squibb Co. 661,050
1,400 Cardinal Health, Inc. 83,738
5,800 Eli Lilly and Co. 427,025
12,500 Merck & Co., Inc. 878,125
6,800 Pfizer, Inc. 782,425
2,700 Pharmacia & Upjohn, Inc. 151,200
7,700 Schering-Plough Corp. 372,006
4,300 Warner-Lambert Co. 292,130
500 Watson Pharmaceuticals, Inc.* 20,250
-----------
4,681,127
-----------
ELECTRONICS (4.2%)
700 Advanced Micro Devices, Inc.* 11,506
400 Andrew Corp.* 5,575
400 Cooper Industries, Inc. 19,350
400 Harris Corp. 13,825
700 Honeywell, Inc. 66,325
500 KLA -Tencor Corp. 24,813
17,500 Intel Corp. 1,070,780
700 LSI Logic Corp.* 23,800
1,300 Micron Technology, Inc.* 48,263
3,200 Motorola, Inc. 256,400
800 National Semiconductor* 10,000
3,500 Nortel Networks Corp. 238,655
400 Northrop Grumman Corp. 25,575
400 Raychem Corp. 10,575
1,800 Raytheon Co. Class B 126,450
1,000 Rockwell International Corp. 51,625
400 Scientific-Atlanta, Inc. 12,700
1,300 Solectron Corp.* 63,050
</TABLE>
4 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 5
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- APRIL 30, 1999 (CONTINUED)
(UNAUDITED)
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ELECTRONICS (CONTINUED)
200 Tektronix, Inc. $ 4,850
1,000 Tellabs, Inc.* 109,563
2,000 Texas Instruments, Inc. 204,250
300 Thomas & Betts Corp. 12,600
-----------
2,410,530
-----------
FINANCIAL -- BANKS & SERVICES (6.7%)
600 Amsouth Bancorporation 28,538
1,600 BB&T Corp. 63,900
6,134 Bank One Corp. 361,906
9,123 Bank of America Corp. 656,856
3,900 Bank of New York Co., Inc. 156,000
1,500 BankBoston Corp. 73,500
500 Bankers Trust Corp. 45,030
4,400 Chase Manhattan Corp. (The) 364,100
800 Comerica, Inc. 52,050
1,400 Fifth Third Bancorp 100,363
5,200 First Union Corp. 287,950
3,600 Firstar Corp. 108,225
3,000 Fleet Financial Group, Inc. 129,188
1,100 Huntington Bancshares, Inc. 38,980
2,400 Keycorp 74,250
800 Mercantile Bancorp, Inc. 45,600
1,700 National City Corp. 121,975
600 Northern Trust Corp. 55,875
1,600 PNC Bank Corp. 92,600
1,100 Regions Financial Corp. 41,525
600 Republic New York Corp. 35,250
900 SouthTrust Corp. 35,859
800 State Street Corp. 70,000
900 Summit Bancorp 38,138
1,700 Suntrust Banks, Inc. 121,550
1,400 Synovus Financial Corp. 30,975
3,800 U.S. Bancorp Class A 140,838
700 Union Planters Corp. 29,969
1,100 Wachovia Corp. 96,663
8,600 Wells Fargo Co. 371,413
-----------
3,869,066
-----------
FINANCIAL -- MISCELLANEOUS
(5.0%)
2,400 American Express Co. 313,650
3,800 Associates First Capital Corp. 168,388
620 Bear Stearns Cos., Inc. 28,908
300 Capital One Financial Corp. 52,105
11,850 Citigroup, Inc. 891,713
1,300 Franklin Resources, Inc. 52,000
300 Golden West Financial Corp. 30,038
2,500 Household International, Inc. 125,780
600 Lehman Brothers Holding 33,338
4,250 MBNA Corp. 119,797
1,900 Merrill Lynch & Co., Inc. 159,480
900 Morgan, (J. P.) & Co., Inc. 121,275
3,000 Morgan Stanley Dean Witter & Co. 297,563
900 S&P 500 Depository Receipt* 120,094
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FINANCIAL -- MISCELLANEOUS (CONTINUED)
2,150 Schwab, Charles Corp. $ 235,963
900 Student Loan Market Association 38,419
3,104 Washington Mutual, Inc. 127,652
-----------
2,916,163
-----------
FOOD -- MISCELLANEOUS (1.9%)
2,975 Archer-Daniels-Midland Co. 44,625
1,500 BestFoods 75,280
2,300 Campbell Soup Co. 94,300
2,500 ConAgra, Inc. 62,188
800 General Mills 58,500
1,900 Heinz (H.J.) Co. 88,706
800 Hershey Foods Corp. 42,100
2,100 Kellogg Co. 77,700
1,200 Pioneer Hi Bred International,
Inc. 44,850
700 Quaker Oats Co. (The) 45,194
1,700 Ralston-Ralston Purina Group 51,850
1,700 RJR Nabisco Holding Corp. 43,775
4,700 Sara Lee Corp. 104,575
3,400 Unilever NV 220,788
600 Wrigley (Wm.) Jr. Co. 53,213
-----------
1,107,644
-----------
GOLD (0.2%)
2,000 Barrick Gold Corp. 40,250
900 Battle Mountain Gold Co. 2,530
800 Freeport-McMoRan Copper & Gold,
Inc. 12,250
1,300 Homestake Mining 12,430
900 Newmont Mining Corp. 21,655
1,200 Placer Dome, Inc. 16,950
-----------
106,065
-----------
HEALTHCARE (2.8%)
300 Bard (C.R.), Inc. 14,700
300 Bausch & Lomb, Inc. 22,500
1,500 Baxter International, Inc. 94,500
1,300 Becton, Dickinson and Co. 48,344
600 Biomet, Inc. 24,600
2,100 Boston Scientific, Inc.* 89,380
3,300 Columbia/HCA Healthcare Corp. 81,469
1,600 Guidant Corp. 85,900
600 HCR Manor Care, Inc.* 16,650
2,200 HealthSouth Corp.* 29,563
800 Humana, Inc.* 10,900
7,100 Johnson & Johnson 692,250
400 Mallinckrodt, Inc. 14,025
1,481 McKesson HBOC, Inc. 51,835
3,100 Medtronic, Inc. 223,006
400 St. Jude Medical, Inc.* 11,150
1,600 Tenet Healthcare Corp.* 37,800
1,000 United HeathCare Corp. 56,125
-----------
1,604,697
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</TABLE>
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 5
<PAGE> 6
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- APRIL 30, 1999 (CONTINUED)
(UNAUDITED)
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HOTELS -- MOTELS (0.2%)
1,400 Hilton Hotels Corp. $ 21,875
1,300 Marriott International, Inc.
Class A 54,438
900 Mirage Resorts, Inc.* 20,194
-----------
96,507
-----------
INSURANCE -- GENERAL (2.5%)
4,200 Allstate Corp. (The) 152,775
6,463 American International Group,
Inc. 758,999
900 AON Corp. 61,650
900 Chubb Corp. 53,325
900 Cincinnati Financial Corp. 36,338
1,200 Hartford Financial Services
Group 70,725
600 Loews Corp. 43,913
500 MBIA, Inc. 33,625
600 MGIC Investment Corp. 29,138
400 Progressive Corp. 57,400
700 Provident Cos., Inc. 27,563
700 SAFECO Corp. 27,825
1,200 St. Paul Cos., Inc. 34,425
700 UNUM Corp. 38,238
-----------
1,425,939
-----------
INSURANCE -- LIFE (1.0%)
800 Aetna, Inc. 70,150
1,300 American General Corp. 96,200
1,100 CIGNA Corp. 95,906
1,700 Conseco, Inc. 53,656
600 Jefferson-Pilot Corp. 40,425
500 Lincoln National Corp. 48,030
700 Providian Corp. 90,344
700 Torchmark Corp. 23,930
700 Transamerica Corp. 49,875
-----------
568,516
-----------
LEISURE PRODUCTS (0.3%)
500 Brunswick Corp. 12,000
3,200 Carnival Corp. Class A 132,000
1,000 Hasbro, Inc. 34,125
-----------
178,125
-----------
MEDIA (2.8%)
3,700 CBS Corp. 168,581
1,400 Clear Channel Communications,
Inc.* 97,300
1,900 Comcast Corp. Class A 124,806
900 General Instrument Corp.* 32,850
400 King World Productions, Inc.* 14,100
3,200 MediaOne Group, Inc.* 261,000
6,400 Time Warner, Inc. 448,000
3,600 Viacom, Inc. Class B* 147,150
10,800 Walt Disney Co. 342,900
-----------
1,636,687
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METALS (0.1%)
200 Asarco, Inc. $ 3,675
400 Cyprus Amax Minerals Co. 6,150
800 Inco Ltd. 15,350
300 Phelps Dodge Corp. 18,975
-----------
44,150
-----------
MORTGAGE/ASSET BACKED OBLIGATIONS (1.1%)
600 Countrywide Credit Industries,
Inc. 27,188
5,400 Fannie Mae 383,063
3,600 Federal Home Loan Mortgage Corp. 225,900
-----------
636,151
-----------
MOTOR VEHICLES (1.5%)
900 Dana Corp. 42,413
200 Fleetwood Enterprises, Inc. 4,938
6,400 Ford Motor Co. 409,200
3,400 General Motors Corp. 302,388
400 Johnson Controls, Inc. 29,125
300 Navistar International Corp.* 15,694
400 PACCAR, Inc. 22,400
600 TRW, Inc. 25,163
-----------
851,321
-----------
NATURAL GAS (0.6%)
400 Columbia Energy Group 19,225
500 Consolidated National Gas Co. 29,750
100 Eastern Enterprises 3,594
1,800 Enron Corp. 135,450
200 NICOR, Inc. 7,275
600 New Century Energies 21,000
200 ONEOK, Inc. 5,588
200 People's Energy Corp. 7,475
1,300 Sempra Energy 26,975
2,200 Williams Cos. (The) 103,950
-----------
360,282
-----------
OIL & GAS -- EXPLORATION & PRODUCTION (1.4%)
500 Amerada Hess Corp. 28,500
400 Ashland, Inc. 16,900
1,100 Coastal Corp. (The) 42,075
11,300 Royal Dutch Petroleum Co. 663,169
500 Sun Co., Inc. 17,875
1,600 USX -- Marathon Group 50,000
-----------
818,519
-----------
OIL -- DOMESTIC (0.6%)
600 Anadarko Petroleum Corp. 22,763
500 Apache Corp. 15,344
1,700 Atlantic Richfield Co. 142,694
900 Burlington Resources, Inc. 41,455
584 Kerr Mcgee Corp. 24,747
1,300 Phillips Petroleum Co. 65,813
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6 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 7
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- APRIL 30, 1999 (CONTINUED)
(UNAUDITED)
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OIL -- DOMESTIC (CONTINUED)
600 Sonat, Inc. $ 21,450
1,200 Union Pacific Resources Group,
Inc. 16,800
-----------
351,066
-----------
OIL -- INTERNATIONAL (3.6%)
3,400 Chevron Corp. 339,150
12,800 Exxon Corp. 1,063,200
4,100 Mobil Corp. 429,475
2,800 Texaco, Inc. 175,700
1,300 Unocal Corp. 54,030
-----------
2,061,555
-----------
OIL SERVICES (0.6%)
1,670 Baker Hughes, Inc. 49,890
2,300 Halliburton Co. 98,038
300 Helmerich & Payne 7,725
400 Rowan Cos.* 6,400
2,900 Schlumberger Ltd. 185,238
-----------
347,291
-----------
PAPER & FOREST PRODUCTS (0.7%)
300 Boise Cascade Corp. 12,075
500 Champion International Corp. 27,344
1,100 Fort James Corp. 41,800
500 Georgia Pacific Corp. 46,250
1,600 International Paper Co. 85,300
600 Louisiana-Pacific Corp. 12,488
500 Mead Corp. 20,905
200 Potlatch Corp. 8,288
400 Union Camp Corp. 31,750
500 Westvaco Corp. 14,938
1,000 Weyerhauser Co. 67,125
600 Willamette Industries, Inc. 28,050
-----------
396,313
-----------
PHOTOGRAPHIC (0.2%)
1,700 Eastman Kodak Co. 126,863
200 Polaroid Corp. 4,125
-----------
130,988
-----------
POLLUTION CONTROL (0.4%)
800 Browning Ferris Industries 31,900
3,100 Waste Management, Inc. 175,150
-----------
207,050
-----------
PRINTING & PUBLISHING (0.7%)
400 American Greetings Corp. Class A 10,475
700 R. R. Donnelley & Sons Co. 24,763
500 Dow Jones & Co., Inc. 27,250
1,500 Gannett Co., Inc. 106,219
400 Harcourt General, Inc. 19,075
200 Jostens, Inc. 4,288
400 Knight-Ridder, Inc. 21,525
1,000 McGraw-Hill Cos., Inc. 55,250
300 Meredith Corp. 11,005
</TABLE>
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PRINTING & PUBLISHING (CONTINUED)
400 Moore Corp. Ltd. $ 4,000
900 New York Times Co. (The) Class A 31,050
400 Times Mirror Co. (The) 23,400
600 Tribune Co. (The) 50,063
-----------
388,363
-----------
RAILROADS (0.6%)
2,400 Burlington Northern Santa Fe
Corp. 87,900
1,100 CSX Corp. 54,175
600 Kansas City Southern Industries,
Inc. 35,738
1,700 Laidlaw, Inc. 10,730
2,000 Norfolk Southern Corp. 65,375
1,300 Union Pacific Corp. 78,000
-----------
331,918
-----------
RESTAURANTS (0.7%)
700 Darden Restaurants, Inc. 15,619
600 Harrah's Entertainment 13,200
7,000 McDonald's Corp. 296,625
800 Tricon Global Restaurants, Inc. 51,500
600 Wendy's International, Inc. 16,238
-----------
393,182
-----------
RETAIL (5.5%)
800 Autozone, Inc.* 24,000
2,000 CVS Corp. 95,250
500 Circuit City Stores-Circuit City
Group 30,750
600 Consolidated Stores Corp.* 20,625
1,100 Costco Cos., Inc.* 89,030
2,300 Dayton Hudson Corp. 154,819
600 Dillard's, Inc. 16,613
875 Dollar General Corp. 30,680
1,100 Federated Department Stores,
Inc.* 51,356
800 Fred Meyer, Inc.* 43,300
3,000 Gap, Inc. 199,688
7,700 Home Depot, Inc. 461,519
2,500 Kmart Corp.* 37,188
800 Kohls Corp.* 53,150
1,200 Limited, Inc. (The) 52,500
200 Longs Drug Stores Corp. 6,875
1,500 Mattel, Inc. 38,812
2,000 Lowe's Cos. 105,500
1,800 May Department Stores Co. 71,663
700 Nordstrom, Inc. 24,631
1,400 Penney (J.C.) Co., Inc. 63,875
200 Pep Boys -- Manny, Moe & Jack 2,863
1,300 Rite Aid Corp. 30,306
2,000 Sears, Roebuck & Co. 92,000
100 Springs Industries, Inc. 3,738
2,400 Staples, Inc.* 72,000
1,700 TJX Cos., Inc. 56,630
500 Tandy Corp. 36,219
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NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 7
<PAGE> 8
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- APRIL 30, 1999 (CONTINUED)
(UNAUDITED)
<TABLE>
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RETAIL (CONTINUED)
1,300 Toys 'R' Us, Inc.* $ 28,275
23,400 Wal-Mart Stores, Inc. 1,076,400
5,100 Walgreen Co. 137,063
-----------
3,207,318
-----------
RETAIL -- FOOD & DRUG (0.7%)
1,300 Albertson's, Inc. 66,950
1,400 American Stores Co. 44,188
200 Great Atlantic & Pacific Tea
Co., Inc. (The) 6,150
1,300 Kroger Co.* 70,605
2,600 Safeway, Inc.* 140,238
600 Supervalu, Inc. 12,525
1,700 Sysco Corp. 50,469
800 Winn-Dixie Stores, Inc. 28,650
-----------
419,775
-----------
SERVICES (3.3%)
300 Adobe Systems, Inc. 19,013
5,400 America Online, Inc. 770,850
300 Autodesk 8,925
4,100 Cendant Corp.* 73,800
700 Ceridian Corp.* 25,638
2,800 Computer Associates
International, Inc. 119,525
800 Computer Science Corp.* 47,650
400 Deluxe Corp. 13,850
900 Dun & Bradstreet Corp. 33,075
200 EG&G, Inc. 6,250
2,600 Electronic Data Systems Corp. 139,750
800 Equifax, Inc. 28,750
500 H&R Block, Inc. 24,063
1,700 IMS Health, Inc. 51,000
700 Interpublic Group Cos., Inc. 54,294
1,400 Marsh & McLennan Cos., Inc. 107,188
1,700 Novell, Inc.* 37,825
900 Omnicom Group 65,250
7,500 Oracle Corp.* 202,969
1,300 Parametric Technology* 16,981
900 Paychex, Inc. 45,955
1,100 Peoplesoft, Inc.* 15,055
400 Ryder System, Inc. 10,550
1,300 Service Corp. International 26,975
100 Shared Medical Systems Corp. 5,430
-----------
1,950,611
-----------
STEEL (0.1%)
1,000 Allegheny Teledyne, Inc. 22,375
700 Bethlehem Steel Corp.* 6,388
500 Nucor Corp. 29,344
500 USX-U.S. Steel Group, Inc. 15,125
400 Worthington Industries, Inc. 5,525
-----------
78,757
-----------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS (10.1%)
16,524 AT&T Corp. $ 834,460
3,000 AirTouch Communications Class A 280,125
1,400 Alltel Corp. 94,413
5,800 Ameritech Corp. 396,938
1,100 Ascend Communications, Inc.* 106,288
8,200 Bell Atlantic Corp. 472,525
10,200 Bellsouth Corp. 456,450
700 Century Telephone Enterprises,
Inc. 28,175
1,200 Corning, Inc. 68,700
900 Frontier Corp. 49,669
5,100 GTE Corp. 341,380
13,900 Lucent Technologies, Inc. 835,738
9,663 MCI WorldCom, Inc.* 794,178
1,500 Nextel Communications, Inc.* 61,405
10,300 SBC Communications, Inc. 576,800
2,300 Sprint Corp. 235,894
2,250 Sprint PCS Group, Inc.* 95,344
2,600 U S West Communications Group 136,012
-----------
5,864,494
-----------
TIRE & RUBBER (0.1%)
400 Cooper Tire and Rubber Co. 8,775
800 Goodyear Tire & Rubber Co. 45,750
-----------
54,525
-----------
TOBACCO (0.8%)
12,800 Philip Morris Companies, Inc. 448,800
1,000 UST, Inc. 27,875
-----------
476,675
-----------
UTILITIES -- ELECTRIC (2.0%)
1,000 AES Corp.* 50,000
700 Ameren Corp. 27,080
1,000 American Electric Power Co.,
Inc. 41,438
800 Baltimore Gas and Electric Co. 22,500
500 CMS Energy Corp. 22,000
800 Carolina Power & Light Co. 32,250
1,100 Central & Southwest Corp. 27,294
800 Cinergy Corp. 23,850
1,200 Consolidated Edison, Inc. 54,525
800 DTE Energy Corp. 32,650
1,000 Dominion Resources, Inc. 41,125
1,900 Duke Power Co. 106,400
1,800 Edison International 44,100
1,300 Entergy Corp. 40,625
1,000 FPL Group, Inc. 56,375
1,200 FirstEnergy Corp. 35,625
700 GPU, Inc. 26,688
900 Niagara Mohawk Holdings, Inc* 12,038
800 Northern States Power Co. 19,300
2,000 PG&E Corp. 62,125
800 PP&L Resources, Inc. 22,350
1,600 PacificCorp 26,700
1,200 PECO Energy Co. 56,925
</TABLE>
8 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 9
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- APRIL 30, 1999 (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<C> <S> <C>
UTILITIES -- ELECTRIC (CONTINUED)
1,200 Public Service Enterprise Group,
Inc. $ 48,000
1,500 Reliant Energy, Inc. 42,469
3,600 Southern Co. 97,425
1,500 Texas Utilities Co. 59,625
1,100 Unicom Corp. 42,694
-----------
1,174,176
-----------
TOTAL COMMON
STOCK -- UNAFFILIATED $57,213,604
-----------
(cost $51,671,897)
PREFERRED STOCK (0.1%)
CONSUMER NON DURABLE
300 Alberto Culver Co. Class B
(cost $7,869) 7,462
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------
PRINCIPAL SECURITY VALUE
- -------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (2.0 %)
$1,178,000 Fifth Third Bank, 4.70%,
05/03/99, Collateralized by
$1,202,005 FNMA, Pool #
323020, 6.50%, 02/01/13,
market value $1,202,005 (cost
$1,178,000) 1,178,000
-----------
TOTAL INVESTMENTS (cost
$52,953,216) $58,503,104
===========
</TABLE>
- --------------------------------------------------------------------------------
Cost for federal income tax purposes: $52,957,382.
The abbreviations in the above statement stand for the following:
FNMA Federal National Mortgage Association
* Denotes non-income producing security.
Portfolio holdings represent market value as a percentage of net assets.
See accompanying notes to the financial statements.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 9
<PAGE> 10
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments in securities, affiliated, at value (cost
$95,450) $ 104,038
Investments in securities, unaffiliated, at value (cost
$51,679,766) 57,221,066
Repurchase agreements (cost $1,178,000) 1,178,000
Cash 431
Receivable for Fund shares sold 584,611
Receivable for investment securities sold 608,478
Receivable from Advisor 4,572
Accrued interest and dividends receivable 49,200
Withholding tax reclaim receivable 427
Prepaid assets 18,337
-----------
Total assets 59,769,160
-----------
LIABILITIES
Payable for Fund shares redeemed 3
Payable for investment securities purchased 1,867,954
Accrued management fees 5,879
Accrued fund administration fees 2,261
Accrued transfer agent fees 452
Accrued distribution fees, Class R Shares 2,298
Accrued distribution fees, Local Shares 1,650
Accrued administrative services fees, Class R Shares 3,831
Accrued administrative services fees, Class Y Shares 1,609
Dividends payable 53
Other accrued expenses 4,725
-----------
Total liabilities 1,890,715
-----------
NET ASSETS $57,878,445
===========
NET ASSETS REPRESENTED BY:
Capital $52,267,629
Net unrealized appreciation 5,549,888
Accumulated undistributed net realized gain 37,963
Accumulated undistributed net investment income 22,965
-----------
NET ASSETS $57,878,445
===========
NET ASSETS:
Class R Shares $20,532,165
Class Y Shares 8,541,322
Local Fund Shares 28,804,958
-----------
Total $57,878,445
===========
SHARES OUTSTANDING (unlimited number of shares authorized)
Class R Shares 1,755,175
Class Y Shares 728,694
Local Fund Shares 2,458,662
-----------
Total 4,942,531
===========
NET ASSET VALUE AND OFFERING PRICE PER SHARE:*
Class R Shares $ 11.70
Class Y Shares $ 11.72
Local Fund Shares $ 11.72
-----------
</TABLE>
- ------------------------------------------------------
* None of the classes of shares are subject to a sales charge.
See accompanying notes to financial statements.
10 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 11
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF OPERATIONS (a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
APRIL 30, 1999
------------------
(UNAUDITED)
<S> <C>
INVESTMENT INCOME:
INCOME:
Dividends $ 222,407
Interest 19,619
Withholding tax (215)
----------
Total income 241,811
----------
EXPENSES:
Investment management fees 23,104
Distribution fees, Class R Shares 4,794
Distribution fees, Local Fund Shares 9,050
Fund administration fees 8,885
Transfer agent fees 1,777
Administrative services fees, Class R Shares 7,990
Administrative services fees, Class Y Shares 4,213
Shareholders' reports 12,722
Registration fees 2,460
Professional services 2,936
Custodian fees 14,338
Trustees' fees and expenses 1,066
Other 9,282
----------
Total expenses before waived and reimbursed expenses 102,617
Total waived and reimbursed expenses (29,142)
----------
Net expenses 73,475
----------
NET INVESTMENT INCOME $ 168,336
==========
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 46,898
Net change in unrealized appreciation 6,268,884
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 6,315,782
----------
NET INCREASE IN ASSETS RESULTING FROM OPERATIONS $6,484,118
==========
</TABLE>
(a) The Class R and Y shares commenced operations on November 2, 1998.
See accompanying notes to financial statements.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 11
<PAGE> 12
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF CHANGE IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE PERIOD
ENDED JULY 24, 1998 TO
APRIL 30, 1999 (c) OCTOBER 31, 1998 (a)
------------------ --------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 168,336 $ 87,043
Net realized gain (loss) on investments 46,898 (8,935)
Net change in unrealized appreciation (depreciation) of
investments 6,268,884 (718,996)
----------- -----------
Net increase (decrease) in net assets resulting from
operations 6,484,118 (640,888)
----------- -----------
DISTRIBUTIONS TO CLASS R SHAREHOLDERS FROM:
Net investment income (30,607) --
----------- -----------
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS FROM:
Net investment income (15,411) --
----------- -----------
DISTRIBUTIONS TO LOCAL CLASS SHAREHOLDERS FROM:
Net investment income (117,963) (68,433)
----------- -----------
DECREASE IN NET ASSETS FROM SHAREHOLDER DISTRIBUTIONS (163,981) (68,433)
----------- -----------
CAPITAL SHARE TRANSACTIONS:*
Net proceeds from sale of shares 31,892,735 23,141,368
Net asset value of shares issued to shareholders from
reinvestment of dividends 163,936 68,425
Cost of shares redeemed (2,823,748) (275,087)
----------- -----------
INCREASE IN NET ASSETS DERIVED FROM CAPITAL SHARE
TRANSACTIONS 29,232,923 22,934,706
----------- -----------
NET INCREASE IN NET ASSETS 35,553,060 22,225,385
NET ASSETS -- BEGINNING OF PERIOD 22,325,385 100,000
----------- -----------
NET ASSETS -- END OF PERIOD $57,878,445 $22,325,385
=========== ===========
Undistributed net realized gain (loss) on investments
included in net assets at end of period $ 37,963 $ (8,935)
=========== ===========
Undistributed net investment income included in net assets
at end of period $ 22,965 $ 18,610
=========== ===========
SHARE ACTIVITY: (b)
Shares sold 2,867,344 2,324,247
Reinvestment of dividends 15,104 7,654
Shares redeemed (251,248) (30,570)
----------- -----------
Net increase in number of shares 2,631,200 2,301,331
=========== ===========
</TABLE>
- ------------------------------------------------------
(a) For the period from July 24, 1998 (commencement of operations) through
October 31, 1998.
(b) Both the Capital Transactions and Share Activity sections represent Classes
R, Y, and Local Fund Shares.
(c) The Class R and Y shares commenced operations on November 2, 1998.
See accompanying notes to financial statements.
12 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 13
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS R SHARES CLASS Y SHARES LOCAL FUND SHARES
----------------- ----------------- -------------------------------------
PERIOD FROM PERIOD FROM SIX MONTHS
NOVEMBER 2, 1998 NOVEMBER 2, 1998 ENDED PERIOD FROM
TO APRIL 30, 1999 TO APRIL 30, 1999 TO APRIL 30, 1999 JULY 24, 1998 TO
(UNAUDITED) (UNAUDITED) (UNAUDITED) OCTOBER 31, 1998
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF
PERIOD $ 9.66 $ 9.66 $ 9.66 $ 10.00
Net investment income 0.04 0.05 0.06 0.04
Net realized gain (loss) and
unrealized appreciation
(depreciation) 2.05 2.06 2.05 (0.35)
------- ------- ------- -------
Total from investment
operations 2.09 2.11 2.11 (0.31)
------- ------- ------- -------
Dividends from net investment
income (0.05) (0.05) (0.05) (0.03)
------- ------- ------- -------
Net increase (decrease) in net
asset value 2.04 2.06 2.06 (0.34)
------- ------- ------- -------
NET ASSET VALUE -- END OF PERIOD $ 11.70 $ 11.72 $ 11.72 $ 9.66
======= ======= ======= =======
Total Return (excluding sales
charges) 17.54%(a) 17.74%(a) 21.88%(a) (3.08%)
Net Assets, End of Period (000) $20,532 $ 8,541 $28,805 $22,325
Ratio of expenses to average net
assets 0.63%(b) 0.48%(b) 0.35%(b) 0.35%
Ratio of expenses to average net
assets* 0.74%(b) 0.62%(b) 0.53%(b) 0.64%
Ratio of net investment income
to average net assets 0.63%(b) 0.81%(b) 1.04%(b) 1.55%
Ratio of net investment income
to average net assets* 0.51%(b) 0.67%(b) 0.86%(b) 1.26%
Portfolio turnover 1.79%(a) 1.79%(a) 1.79%(a) 3.07%
</TABLE>
- ------------------------------------------------------
* Ratios calculated as if no expenses were waived or reimbursed.
(a) Not annualized.
(b) Annualized.
See accompanying notes to the financial statements.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 13
<PAGE> 14
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nationwide Mutual Funds ("NMF" or the "Trust"), formerly known as Nationwide
Investing Foundation III, is an open-end management investment company. NMF was
created under the laws of Ohio as an Ohio business trust pursuant to a
Declaration of Trust dated as of October 30, 1997, as amended as of March 1,
1999, and is registered under the Investment Company Act of 1940, as amended.
The Trust offers shares in fifteen separate series, or mutual funds, each with
its own investment objectives. The accompanying financial statements and
financial highlights relate to the Nationwide S&P 500 Index Fund (the "Fund"), a
non-diversified portfolio.
The Fund currently offers three classes of shares: Class R, Class Y, and Local
Fund Shares. The Class R and Local Fund Shares are purchased with a 0.15% and
0.07% 12b-1 fee, respectively. The Class R and Class Y shares are subject to a
0.25% administrative service fee. The Class Y shares have no 12b-1 fee.
(A) SECURITY VALUATION
1. Securities traded on a national securities exchange are valued at
the last quoted sale price as provided by an independent pricing agent.
Securities traded in the over-the-counter (OTC) market are valued at the
last quoted sale price, or if there is no sale price, the last quoted bid
price as provided by an independent pricing agent. Securities for which
reliable market quotations are not available or for which an independent
pricing agent does not provide a value or provides a value that does not
represent fair value in the judgement of the Fund's investment adviser, are
valued in accordance with procedures authorized by the Trust's Board of
Trustees.
2. The value of a repurchase agreement generally equals the purchase
price paid by the Fund (cost) plus the interest accrued to date. The
seller, under the repurchase agreement, is required to maintain the market
value of the underlying collateral at not less than the value of the
repurchase agreement. Securities subject to repurchase agreements are held
by the Federal Reserve/Treasury book-entry system or by the Fund's
custodian or an approved sub-custodian.
(B) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date. Interest income is recorded on an accrual
basis and includes, where applicable, the pro rata amortization of premium or
discount.
(C) FEDERAL INCOME TAXES
The Fund intends to qualify as a regulated investment company under the Internal
Revenue Code for the periods covered by the accompanying statements. Therefore
provision has been made for federal income taxes and distribute all taxable
income, if any, to shareholders. To the extent net realized gains are offset
through the application of a capital loss carryover, they will not be
distributed to shareholders but retained by the Fund. Withholding taxes have
been paid or provided for in accordance with the applicable tax rates and rules.
At October 31, 1998, the Fund had a net capital loss carryover in the amount of
$6,096, which will expire within 8 years.
(D) DIVIDENDS TO SHAREHOLDERS
1. Dividends, if applicable, are paid quarterly and are recorded on
the ex-dividend date.
14 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 15
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
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 Fund.
(E) EXPENSES
General expenses of the Trust, not directly attributable to a Series of the
Trust or to any class of shares, are allocated to the Series based upon each
Series' relative average net assets or another appropriate basis, as approved by
the Trust's Board of Trustees. Once these expenses are allocated to the Fund,
they are sub-allocated to the classes based on total shares outstanding for each
class.
Direct expenses of the Fund are allocated to the Fund and sub-allocated to the
classes as described above.
Direct expenses of a class are allocated to that class unless otherwise directed
by the Trust's Board of Trustees. Distribution fees and service fees are borne
by the specific class of shares to which they apply.
(F) USE OF 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 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.
(G) CAPITAL SHARE TRANSACTIONS
Transactions in class level shares of the Funds were as follows:
<TABLE>
<CAPTION>
<S> <C>
CAPITAL TRANSACTIONS
--------------------
FOR THE PERIOD FROM
NOVEMBER 2, 1998 TO
APRIL 30, 1999
--------------------
<S> <C>
CLASS R SHARES:
Proceeds from shares
issued................... $19,799,778
Dividends reinvested....... 30,607
Cost of shares redeemed.... (253,545)
-----------
Change in net assets... $19,576,840
===========
CLASS Y SHARES:
Proceeds from shares
issued................... $ 9,561,153
Dividends reinvested....... 15,398
Cost of shares redeemed.... (1,500,487)
-----------
Change in net assets... $ 8,076,064
===========
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SHARE TRANSACTIONS
--------------------
FOR THE PERIOD FROM
NOVEMBER 2, 1998 TO
APRIL 30, 1999
--------------------
<S> <C>
CLASS R SHARES:
Issued..................... 1,774,429
Reinvested................. 2,723
Redeemed................... (21,977)
-----------
Change in shares....... 1,755,175
===========
CLASS Y SHARES:
Issued..................... 860,304
Reinvested................. 1,385
Redeemed................... (132,995)
-----------
Change in shares......... 728,694
===========
</TABLE>
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 15
<PAGE> 16
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
APRIL 30, 1999
--------------------
<S> <C>
LOCAL FUND SHARES:
Proceeds from shares
issued................... $2,531,804
Dividends reinvested....... 117,931
Cost of shares redeemed.... (1,069,716)
----------
Change in net assets... $1,580,019
==========
</TABLE>
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
APRIL 30, 1999
--------------------
<S> <C>
LOCAL FUND SHARES:
Issued..................... 232,611
Reinvested................. 10,996
Redeemed................... (96,276)
----------
Change in shares....... 147,331
==========
</TABLE>
2. TRANSACTIONS WITH AFFILIATES
Investment advisory services are provided to the Fund by Nationwide Advisory
Services, Inc. (NAS), an affiliated company. NAS has selected The Dreyfus
Corporation (a wholly-owned subsidiary of Mellon Bank Corp.) to subadvise the
Fund. Under the terms of the investment advisory agreement, NAS earns an annual
management fee based on a percentage of the average daily net assets of the
Fund. From such fees, pursuant to the sub-advisory agreement, NAS pays
subadvisory fees.
Additional information regarding investment advisory fees for NAS and fees paid
to the subadvisor from NAS is as follows for the period ended April 30, 1999:
<TABLE>
<CAPTION>
NAS
AVERAGE DAILY TOTAL NAS NAS FEE PAID TO TOTAL NAS FEES PAID TO
NET ASSETS FEE RETAINED SUBADVISOR FEES RETAINED SUBADVISOR
------------- --------- -------- ---------- --------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Up to $250 million................ 0.13% 0.06% 0.07% $23,104 $10,663 $12,441
Next $250 million................. 0.13% 0.07% 0.06%
Next $500 million................. 0.13% 0.08% 0.05%
$1 billion and more............... 0.13% 0.09% 0.04%
</TABLE>
NAS has voluntarily agreed to waive or reimburse expenses of the Fund in order
to maintain expense ratios to be at or below stated expense caps. Fund expenses
were limited to 0.35% for Local Fund Shares, 0.63% for Class R shares, and 0.48%
for Class Y shares. During the period ended April 30, 1999, NAS reduced expenses
for the Fund in the amount of $29,142.
NAS or an affiliated broker dealer may also receive fees from the Local Fund
Shares and the Class R shares of the Fund for distribution pursuant to a Rule
12b-1 Distribution Plan approved by the Board of Trustees. These fees are based
on average daily net assets of the respective class of the Fund at an annual
rate of 0.07% for the Local Fund Shares and 0.15% for Class R Shares. During the
period ended April 30, 1999, the Fund paid distribution fees of $9,050 and
$4,794 for the Local Fund Shares and Class R Shares, respectively.
NAS, through its affiliate, Nationwide Investors Services, Inc. (NISI), serves
as Transfer and Dividend Disbursing Agent for the Funds. For these services, NAS
receives fees based on average daily net assets of the Fund at an annual rate of
0.01%. During the period ended April 30, 1999, the Fund paid transfer agent fees
of $1,777.
16 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 17
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Pursuant to a Fund Administration Agreement, NAS also receives fees from the
Fund for fund administration services which are calculated daily and paid
monthly according to the following schedule:
<TABLE>
<CAPTION>
AVERAGE DAILY FUND ADMINISTRATION
NET ASSETS FEE FEES
- ------------- ---- -------------------
<S> <C> <C>
Up to $1 billion....................................... 0.05% $8,885
Next $1 billion........................................ 0.04%
</TABLE>
NFS may receive fees under the terms of an Administrative Services Plan for
providing administrative support services including but 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 Funds, and other
such services. These fees are based on an annual rate of up to 0.25% of the
average daily net assets of the Class R and Y shares. For the period ended April
30, 1999, NFS was paid $7,990 and $4,213 from the R and Y shares respectively.
3. BANK LOANS
NMF has an unsecured bank line of credit of $50,000,000. Borrowings under this
arrangement bear interest at the Federal Funds rate plus .50%. These interest
costs are included in custodian fees in the Statement of Operations. No
compensating balances are required.
4. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding U.S. Government and short-term
securities) for the period ended April 30, 1999, are summarized below. There
were no purchases or sales of U.S. Government Obligations.
<TABLE>
<CAPTION>
SECURITIES
- ---------------------------
PURCHASES SALES
--------- --------
<S> <C>
$29,457,410 $646,407
</TABLE>
Realized gains and losses have been computed on the first-in, first-out basis.
Included in net unrealized appreciation, based on cost for federal income tax
purposes, at April 30, 1999, are the following components:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION (DEPRECIATION) (DEPRECIATION)
- ------------ -------------- --------------
<S> <C> <C>
$7,340,087 $1,794,364 $5,545,722
</TABLE>
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 17
<PAGE> 18
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
5. YEAR 2000
NAS has developed and implemented a plan to address issues related to the Year
2000. The problem relates to many existing computer systems using only two
digits to identify a year in a date field. These systems were designed and
developed without considering the impact of the upcoming change in the century.
If not corrected, many computer systems could fail or create erroneous results
when processing information dated after December 31, 1999. NAS has completed an
inventory and assessment of all computer systems and has implemented a plan to
renovate or replace all applications that were identified as not Year-2000
compliant. NAS has also tested each application for its Year-2000 compliance.
Systems supporting NAS' infrastructure, such as telecommunications, voice and
networks, have also been tested, renovated or replaced, and are compliant. NAS'
assessment of Year-2000 issues has also included non-information technology
systems with embedded computer chips. NAS building systems such as fire,
security, elevators and escalators supporting facilities in Columbus, Ohio, have
been tested and are Year-2000 compliant.
In addition to resolving internal Year-2000 readiness issues, NAS is surveying
significant external organizations (business partners) to assess if they will be
Year-2000 compliant and be in a position to do business in the Year 2000 and
beyond. NAS continues its efforts to identify external risk factors and is in
the process of developing contingency plans as part of its ongoing
risk-management strategy.
18 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
