<PAGE> 1
[PICTURE OF 2
PEOPLE TALKING]
[PICTURE OF 3 PEOPLE]
Semi-Annual Report
NATIONWIDE FAMILY OF FUNDS
2000
[PICTURE OF GLOBE IN BACKGROUND]
[Nationwide Logo] NATIONWIDE(R)
Family of Funds APRIL 30, 2000
<PAGE> 2
[PICTURE OF GYROSCOPE]
MESSAGE
To Shareholders APRIL 30, 2000
At fiscal year-end 1999, we introduced you to Villanova Capital, the new
asset management arm of Nationwide Financial. At that time, our theme was that
of future growth--in our investment management capabilities, in our product
offerings, and in the tools that we provide to our investors and their advisors.
Today, just six months later, we have taken several giant steps toward achieving
that growth.
- In March 2000, Nationwide agreed to acquire Gartmore Investment Management,
plc, a London-based investment management services company with more than $85
billion in assets under management (as of March 31, 2000). Villanova Capital
will work in partnership with Gartmore to bring international investment
capabilities to our U.S. clients.
- Over the past six months, we have successfully expanded Villanova Capital's
investment capabilities in the U.S. with the hiring of several key portfolio
managers, the introduction of new investment offerings, and, where
appropriate, the realignment of portfolio management responsibilities.
Each step reflects Villanova Capital's firm commitment to providing investors
with a broad range of innovative, high-value products managed by seasoned
investment professionals.
EXPANDED INVESTMENT
MANAGEMENT CAPABILITIES
We start the second half of our fiscal year with significantly expanded
investment capabilities. Since December 1999, Villanova has hired three highly
regarded portfolio managers: Christopher Baggini, former manager of the ARK
Capital Growth Fund; Curtiss Barrows, former co-manager of the Morgan Grenfell
High-Yield Bond Fund; and Aaron Harris, former lead manager of the
Nicholas-Applegate Global Technology Fund.
In addition, Villanova formed a strategic venture in January 2000 with
NorthPointe Capital, a management firm specializing in small-cap value
investments. NorthPointe portfolio managers Jeffrey Petherick and Mary Champagne
were formerly with Loomis, Sayles & Company.
This new managerial talent, combined with our stable value team at Morley
Financial Services (a wholly owned subsidiary of Villanova) and well-respected
"veterans" like the Nationwide Fund's Chuck Bath, have broadened our investment
capabilities and enabled Villanova to introduce new funds to the Nationwide
Family.
NEW INVESTMENT OFFERINGS
The Nationwide Family of Funds now features five new mutual fund investments,
including the NATIONWIDE VALUE OPPORTUNITIES FUND, a small-cap value equity fund
managed by NorthPointe Capital; the NATIONWIDE HIGH YIELD BOND FUND, managed by
Curtiss Barrows; and the MORLEY ENHANCED INCOME FUND, a short-term fixed income
fund managed by Morley Financial Services. In addition, two index funds are
available: the NATIONWIDE S&P 500 INDEX FUND and the NATIONWIDE INTERNATIONAL
INDEX FUND.
We will continue to expand our U.S.-based investment capabilities and product
offerings in the months ahead. In addition, Villanova's partnership with
U.K.-based Gartmore will help provide the foundation we need to develop a robust
international product line.
CHANGES IN PORTFOLIO MANAGEMENT
As we build added momentum in our investment management capabilities, we
continually evaluate how to match manager skills and expertise with existing
product offerings. Villanova Capital recently announced two portfolio management
changes:
- Chris Baggini, who is fully dedicated to managing Villanova's large-cap
growth portfolios, was named manager of the NATIONWIDE GROWTH FUND, effective
in March 2000.
- Aaron Harris, who leads Villanova's development of investment capabilities in
the technology sector, was appointed manager of the NATIONWIDE MID CAP GROWTH
FUNd, effective in April 2000.
These changes are designed to best align our products with the strengths of
individual members of our portfolio management team. At the same time, we will
continue to emphasize the importance of staying true to each fund's stated
objective and strategy and delivering what we promise to investors.
THE PERIOD IN REVIEW
The Nationwide Family of Funds posted a mixed performance for the period
November 1999 through April 2000. The six-month period included two divergent
phases for the stock market--one marked by the continued strength in the
technology sector, the other by a rotation into value stocks.
Certain funds in the Nationwide Family were negatively impacted by
underweighted positions in technology stocks, which performed remarkably well in
the latter part of 1999 and the first few
<PAGE> 3
months of 2000. Because of the lofty valuations in certain segments of the
technology sector, the Nationwide Fund, for example, avoided many of these
issues, instead focusing on less-speculative stocks. In fact, investors did
begin to rotate back into more reasonably priced securities in March and April,
which helped the Nationwide Fund's performance. The dramatic outperformance of
technology stocks earlier in the period, however, was difficult to overcome.
The unmanaged Standard & Poor's 500 Index, a barometer of large,
predominantly U.S.-based companies, rose 7.2% during the period, while the
unmanaged Russell Midcap Growth Index improved 41.6%.
In the bond market, the U.S. Treasury made news early in the year by
announcing its intention to repurchase a substantial amount of debt held by the
public. The Federal Reserve continued in its effort to slow the U.S. economy,
raising short-term rates three times from November through April. The economy
continued to show strength through this period, and it remains a possibility
that the Fed will lift rates further this year.
Corporate bonds performed poorly during the six-month period, negatively
impacting the Nationwide Bond Fund. In the same vein, the weak showing of
government agency notes and mortgage- backed securities hurt the performance of
the Nationwide Intermediate-Term U.S. Government Bond Fund. The outlook for
fixed-income funds should improve, though, when the Fed finally ends its
campaign of raising rates.
THE PERIOD AHEAD
As we look ahead to the second half of the fiscal year, we realize that the
markets' recent roller-coaster ride has shaken many investors who, for more than
a decade, enjoyed a fairly comfortable rise. Now more than ever, investors--and
those who serve them--need to feel comfortable that the firm to which they
entrust their assets has a clear vision, a solid long-term plan, and the
determination to follow both.
We are committed to continuing to help our shareholders achieve their goals
through a broad array of investment offerings and high-quality services, backed
by the professionalism they have come to expect from Villanova Capital.
/s/ Paul J. Hondros
Paul J. Hondros
President
Chief Executive Officer
Villanova Capital
CONTENTS
--- --- ---
1 Message to 21 Long-Term U.S. 35 Statements of Changes
Shareholders Government Bond Fund in Net Assets
--- --- ---
2 Fund Highlights 23 Intermediate U.S. 39 Financial Highlights
Government Bond Fund
--- ---
7 Mid Cap Growth Fund --- 47 Notes to Financial
25 Money Market Fund Statements
---
8 Growth Fund
--- ---
--- 29 Statements of Assets 57 Trustees and
10 Nationwide Fund and Liabilities Officers
--- ---
13 Bond Fund 32 Statements of
Operations
---
16 Tax-Free Income Fund
[PICTURE OF CHESS PIECES]
<PAGE> 4
[PICTURE OF SMALL AREA
NATIONWIDE(R) STOCK FUND HIGHLIGHTS ON U.S. CURRENCY]
--------------------------------------------------------------------------------
MID CAP GROWTH FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - CLASS D SHARES TOP FIVE HOLDINGS
$10,000 Lump Sum Investment (Composition Subject to Change)
<CAPTION>
Value of Value of
initial reinvested AS OF APRIL 30, 2000 VALUE PORTFOLIO%
investment distributions -------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1990 $ 9,550 $ 450 Bookham Technology PLC $623,999 3.14%
1991 10,541 625 -----------------------------------------------------------------
1992 12,190 936 Advanced Micro Devices, Inc. $570,374 2.87%
1993 12,926 1,173 -----------------------------------------------------------------
1994 13,760 1,322 GlobeSpan, Inc. $570,000 2.87%
1995 15,910 1,732 -----------------------------------------------------------------
1996 18,285 4,310 Altera Corp. $511,250 2.58%
1997 18,511 5,541 -----------------------------------------------------------------
1998 21,661 12,994 Corning Inc. $493,749 2.49%
1999 19,119 15,287 -----------------------------------------------------------------
2000 22,368 20,820
</TABLE>
THE VALUE OF A LONG-TERM INVESTMENT IN THE MID CAP GROWTH FUND IS ILLUSTRATED
IN THE CHART ABOVE. OVER A 10-YEAR PERIOD ENDED APRIL 30, 2000, A NET
INVESTMENT OF $10,000 (A GROSS INVESTMENT OF $10,450) WOULD HAVE EARNED AN
AVERAGE ANNUAL COMPOUND TOTAL RETURN OF 15.75% (INCLUDING THE MAXIMUM SALES
CHARGE OF 4.50%). THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT
TO $43,188. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN
REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
GROWTH FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - CLASS D SHARES TOP FIVE HOLDINGS
$10,000 Lump Sum Investment (Composition Subject to Change)
<CAPTION>
Value of Value of
initial reinvested AS OF APRIL 30, 2000 VALUE PORTFOLIO%
investment distributions -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1990 $ 9,550 $ 450 Nokia Corp. $51,187,499 5.14%
1991 9,915 1,077 -----------------------------------------------------------------
1992 11,700 1,678 Intel Corp. $44,384,374 4.45%
1993 11,825 2,230 -----------------------------------------------------------------
1994 12,386 2,881 Warner-Lambert Co. $42,679,688 4.28%
1995 13,690 3,857 -----------------------------------------------------------------
1996 15,028 6,480 Dell Computer Corp. $40,100,000 4.02%
1997 15,737 8,610 -----------------------------------------------------------------
1998 19,671 15,190 Altera Corp. $35,787,499 3.59%
1999 20,129 17,531 -----------------------------------------------------------------
2000 18,482 21,202
</TABLE>
THE VALUE OF A LONG-TERM INVESTMENT IN THE GROWTH FUND IS ILLUSTRATED IN THE
CHART ABOVE. OVER A 10-YEAR PERIOD ENDED APRIL 30, 2000, A NET INVESTMENT OF
$10,000 (A GROSS INVESTMENT OF $10,450) WOULD HAVE EARNED AN AVERAGE ANNUAL
COMPOUND TOTAL RETURN OF 14.78% (INCLUDING THE MAXIMUM SALES CHARGE OF
4.50%). THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT TO $39,684.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED,
SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
2 N A T I O N W I D E
<PAGE> 5
[PICTURE OF SMALL AREA
NATIONWIDE(R) STOCK AND BOND FUND HIGHLIGHTS ON U.S. CURRENCY]
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NATIONWIDE FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - CLASS D SHARES TOP FIVE HOLDINGS
$10,000 Lump Sum Investment (Composition Subject to Change)
<CAPTION>
Value of Value of
initial reinvested AS OF APRIL 30, 2000 VALUE PORTFOLIO%
investment distributions ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1990 $ 9,550 $ 450 Warner-Lambert Co. $98,368,143 4.39%
1991 10,887 724 ----------------------------------------------------------------
1992 11,297 1,386 Quaker Oats Co. $84,743,750 3.79%
1993 11,319 1,996 ----------------------------------------------------------------
1994 11,168 2,984 Wells Fargo Co. $74,507,905 3.33%
1995 11,060 4,458 ----------------------------------------------------------------
1996 13,569 6,858 Mellon Financial Corp. $73,733,300 3.29%
1997 15,935 9,964 ----------------------------------------------------------------
1998 22,292 16,260 Black & Decker Corp. $71,771,244 3.21%
1999 24,004 20,174 ----------------------------------------------------------------
2000 21,703 21,369
</TABLE>
THE VALUE OF A LONG-TERM INVESTMENT IN THE NATIONWIDE FUND IS ILLUSTRATED IN
THE CHART ABOVE. OVER A 10-YEAR PERIOD ENDED APRIL 30, 2000, A NET INVESTMENT
OF $10,000 (A GROSS INVESTMENT OF $10,450) WOULD HAVE EARNED AN AVERAGE
ANNUAL COMPOUND TOTAL RETURN OF 15.72% (INCLUDING THE MAXIMUM SALES CHARGE OF
4.50%). THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT TO $43,072.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED,
SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
BOND FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - CLASS D SHARES TOP FIVE HOLDINGS
$10,000 Lump Sum Investment (Composition Subject to Change)
<CAPTION>
Value Value of
of initial reinvested AS OF APRIL 30, 2000 VALUE PORTFOLIO%
investment distributions ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1990 $ 9,550 $ 450 U. S. Treasury Bond, 8.125%, 8/15/19 $15,612,194 13.52%
1991 9,903 1,077 ----------------------------------------------------------------
1992 9,882 2,002 U. S. Treasury Bond, 5.50%, 8/15/28 $ 4,546,875 3.94%
1993 10,546 3,289 ----------------------------------------------------------------
1994 9,689 3,920 Becton Dickinson & Co., 8.70%, 1/15/25 $ 4,178,519 3.62%
1995 9,464 4,858 ----------------------------------------------------------------
1996 9,753 6,009 Quebec (Province of), 11.00%, 6/15/15 $ 4,165,020 3.61%
1997 9,764 7,098 ----------------------------------------------------------------
1998 10,203 8,538 English China Clays Del. Inc., 7.375%,
1999 10,139 9,586 10/1/02 $ 3,982,764 3.45%
2000 9,400 10,060 ----------------------------------------------------------------
</TABLE>
THE VALUE OF A LONG-TERM INVESTMENT IN THE BOND FUND IS ILLUSTRATED IN THE
CHART ABOVE. OVER A 10-YEAR PERIOD ENDED APRIL 30, 2000, A NET INVESTMENT OF
$10,000 (A GROSS INVESTMENT OF $10,450) WOULD HAVE EARNED AN AVERAGE ANNUAL
COMPOUND TOTAL RETURN OF 6.88% (INCLUDING THE MAXIMUM SALES CHARGE OF 4.50%).
THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT TO $19,460.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED,
SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
N A T I O N W I D E 3
<PAGE> 6
[PICTURE OF SMALL AREA
NATIONWIDE (R) BOND FUND HIGHLIGHTS ON U.S. CURRENCY]
--------------------------------------------------------------------------------
TAX-FREE INCOME FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - CLASS D SHARES TOP FIVE HOLDINGS (BY STATE)
$10,000 Lump Sum Investment (Composition Subject to Change)
<CAPTION>
Value Value of
of initial reinvested AS OF APRIL 30, 2000 VALUE PORTFOLIO%
investment distributions ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1990 $ 9,554 $ 446 Texas $33,652,625 15.83%
1991 9,948 646 ----------------------------------------------------------------
1992 10,196 1,316 Alabama $17,769,888 8.36%
1993 10,890 2,201 ----------------------------------------------------------------
1994 10,196 2,818 Illinois $17,124,056 8.06%
1995 10,289 3,561 ----------------------------------------------------------------
1996 10,414 4,334 South Carolina $14,550,206 6.84%
1997 10,507 5,131 ----------------------------------------------------------------
1998 10,910 6,112 North Carolina $13,075,163 6.15%
1999 10,900 7,143 ----------------------------------------------------------------
2000 10,124 8,351
</TABLE>
THE VALUE OF A LONG-TERM INVESTMENT IN THE TAX-FREE INCOME FUND IS
ILLUSTRATED IN THE CHART ABOVE. OVER A 10-YEAR PERIOD ENDED APRIL 30, 2000, A
NET INVESTMENT OF $10,000 (A GROSS INVESTMENT OF $10,450) WOULD HAVE EARNED
AN AVERAGE ANNUAL COMPOUND TOTAL RETURN OF 5.85% (INCLUDING THE MAXIMUM SALES
CHARGE OF 4.50%). THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT
TO $17,653. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN
REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
LONG-TERM U.S. GOVERNMENT
BOND FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - CLASS D SHARES TOP FIVE HOLDINGS (BY TYPE)
$10,000 Lump Sum Investment (Composition Subject to Change)
<CAPTION>
Value Value of
of initial reinvested AS OF APRIL 30, 2000 VALUE PORTFOLIO%
investment distributions ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1990 $ 9,552 $ 448 U.S. Treasury $21,233,290 63.99%
1991 10,126 958 ----------------------------------------------------------------
1992 10,398 1,988 Resolution Funding Corp. $ 5,524,663 16.65%
1993 10,846 3,312 ----------------------------------------------------------------
1994 10,165 3,907 Federal National Mortgage Association $ 3,662,307 11.04%
1995 10,184 4,833 ----------------------------------------------------------------
1996 10,369 5,900 Repurchase Agreement $ 1,723,000 5.19%
1997 10,457 7,003 ----------------------------------------------------------------
1998 10,943 8,427 Federal Home Loan Bank $ 1,038,023 3.13%
1999 11,011 9,546 ----------------------------------------------------------------
2000 10,369 10,430
</TABLE>
THE VALUE OF A LONG-TERM INVESTMENT IN THE LONG-TERM U.S. GOVERNMENT BOND
FUND IS ILLUSTRATED IN THE CHART ABOVE. OVER A 10-YEAR PERIOD ENDED APRIL 30,
2000, A NET INVESTMENT OF $10,000 (A GROSS INVESTMENT OF $10,450) WOULD HAVE
EARNED AN AVERAGE ANNUAL COMPOUND TOTAL RETURN OF 7.60% (INCLUDING THE
MAXIMUM SALES CHARGE OF 4.50%). THE CHART ABOVE ILLUSTRATES THE GROWTH OF
THIS INVESTMENT TO $20,799. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL
COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
4 N A T I O N W I D E
<PAGE> 7
[PICTURE OF SMALL AREA
NATIONWIDE(R) BOND AND MONEY MARKET FUND HIGHLIGHTS OF U.S. CURRENCY]
--------------------------------------------------------------------------------
INTERMEDIATE U.S. GOVERNMENT
BOND FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - CLASS D SHARES TOP FIVE HOLDINGS (BY TYPE)
$10,000 Lump Sum Investment (Composition Subject to Change)
<CAPTION>
Value Value of
of initial reinvested AS OF APRIL 30, 2000 VALUE PORTFOLIO%
investment distributions ----------------------------------------------------------------
<S> <C> <C> <C>
2/92 $10,000 $9,551 U.S. Treasury $33,577,822 32.26%
4/92 9,435 9,302 ----------------------------------------------------------------
4/93 10,522 9,627 Federal Home Loan Mortgage Corp. $21,163,180 20.33%
4/94 10,598 9,149 ----------------------------------------------------------------
4/95 11,319 9,188 Federal National Mortgage Association $17,012,981 16.35%
4/96 12,229 9,360 ----------------------------------------------------------------
4/97 13,113 9,465 Repurchase Agreement $13,830,000 13.29%
4/98 14,449 9,856 ----------------------------------------------------------------
4/99 15,268 9,761 Federal Home Loan Bank $11,564,560 11.11%
4/00 15,421 9,302 ----------------------------------------------------------------
</TABLE>
THE VALUE OF A LONG-TERM INVESTMENT IN THE INTERMEDIATE U.S. GOVERNMENT BOND
FUND IS ILLUSTRATED IN THE CHART ABOVE. A NET INVESTMENT OF $10,000 (A GROSS
INVESTMENT OF $10,450) MADE ON 02/10/92 (THE FUND'S INCEPTION DATE) WOULD
HAVE EARNED AN AVERAGE ANNUAL COMPOUND TOTAL RETURN OF 5.41% (INCLUDING THE
MAXIMUM SALES CHARGE OF 4.50%). THE CHART ABOVE ILLUSTRATES THE GROWTH OF
THIS INVESTMENT TO $15,421. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL
COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
MONEY MARKET FUND
[GRAPH]
<TABLE>
FUND PERFORMANCE - PRIME SHARES TOP FIVE HOLDINGS (BY ISSUER)
30-Day Yield Trend (Composition Subject to Change)
<CAPTION>
Money Market AS OF APRIL 30, 2000 VALUE PORTFOLIO%
CPI Fund yields ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
4/99 0.72% 3.62% Marsh & McClennan $67,400,529 4.91%
5/99 0.00 4.33 ----------------------------------------------------------------
6/99 0.00 4.36 General Motors Acceptance Corp. $54,701,711 3.98%
7/99 0.30 4.09 ----------------------------------------------------------------
8/99 0.24 4.27 Federal Home Loan Bank $53,904,862 3.92%
9/99 0.47 4.19 ---------------------------------------------------------------
10/99 0.17 4.65 American General Finance Corp. $53,466,087 3.89%
11/99 0.05 4.89 ----------------------------------------------------------------
12/99 0.00 5.21 American Honda Finance Corp. $52,073,495 3.79%
1/00 0.23 5.03
2/00 0.59 4.67
3/00 0.82 4.40
4/00 0.70 4.47
</TABLE>
THE CHART ABOVE SHOWS THE MONEY MARKET FUND'S YIELD TREND FOR THE 12 MONTHS
ENDED APRIL 30, 2000, AS COMPARED TO THE CONSUMER PRICE INDEX (CPI) OVER THE
SAME PERIOD. THE MONEY MARKET FUND 30-DAY CURRENT YIELD AT 04/30/00 WAS
5.47%, THE SEVEN-DAY CURRENT YIELD WAS 5.50% AND THE SEVEN-DAY EFFECTIVE
YIELD WAS 5.65%. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
N A T I O N W I D E 5
<PAGE> 8
NATIONWIDE(R) MUTUAL FUNDS
--------------------------------------------------------------------------------
MID CAP GROWTH FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Mid Cap
Growth Fund (Class D shares) returned 24.19%(*) vs. a return of 41.59% for
the Russell Midcap Growth Index, the benchmark index.
During the first three months of the year, a wide variety of semi-
conductor, software and Internet stocks in the Fund achieved gains of
30%-80%. Biotechnology was also a sector that was in favor during the
quarter. Though the Fund held only a small weight in this sector, biotech did
have a positive impact on results. The Fund participated in numerous initial
public offerings, some of which are still held in the portfolio while others
were sold immediately as their opening day price exceeded our valuation
parameters. These IPOs had a meaningful impact on returns for the quarter.
As of April 10, 2000, Aaron Harris assumed sole responsibility for
managing the Fund, replacing Chris Welch. Harris will manage the Fund more
aggressively than it has been managed in the past, and his focus will be on
those growth companies utilizing new technologies that create fundamental
changes in the economy. Harris also brings a proprietary stock selection
methodology to the Fund's portfolio management process.
CHRISTOPHER WELCH, CFA
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS
REINVESTED.
FUND VALUE $19,662,530
PORTFOLIO COMPOSITION
(Subject to Change)
------------------
Common Stock 101% [PIE CHART]
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(For Periods Ended April 30, 2000)
CLASS A(*) CLASS B(*) CLASS D
YEARS W/O SC(**) W/SC(1) W/O SC(**) W/SC(2) W/O SC(**) W/SC(3)
-------------------------------------------------------------------------
1 25.16% 17.97% 24.63% 19.63% 25.53% 19.86%
-------------------------------------------------------------------------
5 19.59% 18.18% 19.26% 19.06% 19.61% 18.52%
-------------------------------------------------------------------------
10 16.28% 15.60% 16.12% 16.12% 16.29% 15.75%
-------------------------------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge
possible, because it has the most dramatic effect on performance data.
(*) These returns include performance achieved prior to the creation of the
class (5/11/98), excluding the effect of the 0.25% (Class A) or 1.00%
(Class B) 12b-1 fee. Had Class A or B been in existence for all of the
time periods presented, the Fund's performance for such classes would
have been lower as a result of the additional expenses.
(**) These returns do not reflect the effects of a sales charge.
(1) A 5.75% front-end sales charge was deducted.
(2) A 5.00% contingent deferred sales charge (CDSC) was deducted.
The CDSC declines to 0% after 6 years.
(3) A 4.50% front-end sales charge
was deducted.
(+) See legend on inside back cover.
Investment return and principal value will fluctuate, and when redeemed,
shares may be worth more or less than original cost. Past performance is no
guarantee of future results.
[BACKGROUND PICTURE OF COLUMNS]
6 N A T I O N W I D E
<PAGE> 9
[PICTURE OF
SMALL AREA
STATEMENT OF INVESTMENTS NATIONWIDE(R) MID CAP GROWTH FUND ON U.S. CURRENCY]
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (101.0%)
--------------------------------------------------------------------------------
BROADCAST MEDIA / CABLE TELEVISION (1.4%)
2,500 Univision Communications, Inc.(*) $ 273,125
---------
--------------------------------------------------------------------------------
COMPUTER EQUIPMENT (10.4%)
6,700 American Power Conversion Corp.(*) 236,594
1,400 Check Point Software Technologies Ltd. 242,200
5,600 Cisco Systems, Inc.(*) 388,237
3,000 Extreme Networks, Inc.(*) 172,875
1,000 Juniper Networks, Inc.(*) 212,688
10,100 Paradyne Network, Inc.(*) 284,694
2,600 Silicon Storage Technology, Inc.(*) 253,500
2,300 Turnstone Systems, Inc.(*) 253,000
---------
2,043,788
---------
--------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES (19.1%)
6,400 Advent Software, Inc. 336,000
5,500 Alteon Websystems, Inc.(*) 374,000
2,100 Brocade Communications Systems, Inc. 260,400
2,800 Clarent Corp.(*) 190,400
2,000 Commerce One, Inc. 122,125
5,500 Globix Corp.(*) 123,750
2,000 i2 Technologies, Inc.(*) 258,500
2,200 Inktomi Corp.(*) 338,663
9,200 ITXC Corp.(*) 246,675
7,100 Quest Software, Inc.(*) 267,581
2,000 Rational Software Corp.(*) 170,250
3,400 Siebel Systems, Inc.(*) 417,775
4,000 VERITAS Software Corp.(*) 429,062
5,600 Viant Corp.(*) 128,800
1,700 Watchguard Technologies, Inc.(*) 81,919
---------
3,745,900
---------
--------------------------------------------------------------------------------
ELECTRONICS (13.7%)
4,600 Amkor Technology, Inc.(*) 281,463
4,000 Flextronics International Ltd. 281,000
7,500 Linear Technology Corp. 428,437
5,400 Maxim Integrated Products, Inc.(*) 349,988
6,300 Microchip Technology, Inc. 390,994
6,200 Millipore Corp. 444,462
2,500 Sanmina Corp.(*) 150,156
7,000 SCI Systems, Inc. 372,750
---------
2,699,250
---------
--------------------------------------------------------------------------------
HEALTH CARE (3.8%)
5,300 Allergan, Inc. 312,038
7,500 Quest Diagnostics, Inc.(*) 436,406
---------
748,444
---------
--------------------------------------------------------------------------------
MACHINERY (1.6%)
5,400 Cognex Corp.(*) 307,125
---------
--------------------------------------------------------------------------------
OIL & GAS (3.1%)
14,000 Pride International, Inc.(*) 316,750
14,000 R&B Falcon Corp. (*) 290,500
---------
607,250
---------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
PHARMACEUTICALS (2.5%)
5,000 Celgene Corp.(*) $ 235,312
6,000 Dentsply International, Inc. 174,375
500 MedImmune, Inc.(*) 79,969
---------
489,656
---------
--------------------------------------------------------------------------------
REAL ESTATE (0.9%)
3,000 Pinnacle Holdings, Inc. 168,563
---------
--------------------------------------------------------------------------------
SEMICONDUCTORS (22.8%)
6,500 Advanced Micro Devices, Inc.(*) 570,374
5,200 Alpha Industries, Inc.(*) 270,400
5,000 Altera Corp.(*) 511,250
12,000 Bookham Technology PLC(*) 623,999
6,000 GlobeSpan, Inc. 570,000
3,200 Infineon Technologies AG(*) 217,200
3,800 KLA-Tencor Corp.(*) 284,525
4,500 Novellus Systems, Inc. 300,094
2,000 PMC-Sierra, Inc.(*) 383,750
3,000 TriQuint Semiconductor, Inc.(*) 308,438
7,000 Varian Semiconductor Equipment
Associates., Inc. (*) 470,750
---------
4,510,780
---------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (2.5%)
7,000 Broadwing, Inc.(*) 198,187
850 Nextel Communications, Inc.(*) 93,022
4,100 Vodafone Group PLC-ADR 192,700
---------
483,909
---------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT (18.3%)
5,100 Advanced Fibre Communications, Inc.(*) 233,006
3,100 CIENA Corp.(*) 383,238
5,200 Com21, Inc.(*) 145,600
2,000 Copper Mountain Networks, Inc.(*) 166,750
2,500 Corning, Inc. 493,749
6,500 Digital Microwave Corp.(*) 240,094
2,600 Ericsson (L.M.) Telephone Co. ADR 229,938
3,000 JDS Uniphase Corp.(*) 311,250
2,400 Netro Corp.(*) 103,500
3,700 Nokia Corp. 210,438
1,800 Nortel Networks Corp. 203,850
1,600 Powerwave Technologies, Inc.(*) 332,900
1,500 RF Micro Devices, Inc.(*) 156,094
2,000 SDL, Inc.(*) 389,999
---------
3,600,406
---------
--------------------------------------------------------------------------------
TRANSPORTATION (0.9%)
14,300 Offshore Logistics, Inc.(*) 173,388
---------
TOTAL INVESTMENTS (cost $16,724,117) $19,851,584
===========
--------------------------------------------------------------------------------
(*)DENOTES A NON-INCOME PRODUCING SECURITY.
The abbreviations in the above statement stand for the following:
ADR American Depositary Receipt
AG Aktiengesellschaft (German stock company)
PLC Public Limited Company
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 7
<PAGE> 10
NATIONWIDE(R) MUTUAL FUNDS
--------------------------------------------------------------------------------
GROWTH FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Growth Fund
(Class D) returned 0.82%(*) vs. a 7.20% return for the S&P 500 Index.
Toward the end of the first quarter, management at Villanova Capital made the
strategic decision to more clearly define the Fund as a large-cap growth
product. The Russell 1000 Growth Index, therefore, has become the appropriate
benchmark to measure the Fund's future performance.
During the period, the performance of the Fund was negatively impacted by its
underweighted position in the technology sector. Specifically, faster-growth
companies in the telecommunications, Internet infrastructure, and semiconductor
industries were avoided due to valuation risk in favor of more predictable but
slower-growing issues. Additionally, the Fund's performance on mid- and
smaller-cap companies detracted from short-term performance.
The top-performing securities for the first quarter included Intel, Disney,
and Hewlett-Packard. Securities that lagged in performance included Johnson &
Johnson, Lucent, BMC Software, IMS Health, and ProBusiness Services.
Christopher Baggini assumed management of the Fund in March. As of the close
of the April 30th period, we believe we have made the changes necessary to
increase our investment exposure to faster growing, large-cap securities.
Revenues, earnings, profitability measures, and proper valuation tools will be
applied to our research methodology, especially in key technology sectors, to
determine the best investments.
CHRISTOPHER E. BAGGINI, CFA - PORTFOLIO MANAGER
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $980,124,472
PORTFOLIO COMPOSITION
(Subject to Change)
--------------------
Short-term Debt 1.4% [PIE CHART]
--------------------
Common Stock 100.3%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(FOR PERIODS ENDED APRIL 30, 2000)
CLASS A(*) CLASS B(*) CLASS D
YEARS W/O SC(**) W/SC(1) W/O SC(**) W/SC(2) W/O SC(**) W/SC(3)
-------------------------------------------------------------------------
1 5.22% -0.81% 4.40% -0.15% 5.37% 0.63%
-------------------------------------------------------------------------
5 17.67% 16.28% 17.37% 17.15% 17.73% 16.66%
-------------------------------------------------------------------------
10 15.27% 14.59% 15.13% 15.13% 15.30% 14.78%
-------------------------------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge
possible, because it has the most dramatic effect on performance data.
(*) These returns include performance achieved prior to the creation of the
class (5/11/98), excluding the effect of the 0.25% (Class A) or 1.00%
(Class B) 12b-1 fee. Had Class A or B been in existence for all of the
time periods presented, the Fund's performance for such classes would
have been lower as a result of the additional expenses.
(**) These returns do not reflect the effects of a sales charge.
(1) A 5.75% front-end sales charge was deducted.
(2) A 5.00% contingent deferred sales charge (CDSC) was deducted.
The CDSC declines to 0% after 6 years.
(3) A 4.50% front-end sales charge was deducted.
(+) See legend on inside back cover.
Investment return and principal value will fluctuate, and when redeemed,
shares may be worth more or less than original cost. Past performance is no
guarantee of future results.
[PICTURE OF COLUMNS IN BACKGROUND]
8 N A T I O N W I D E
<PAGE> 11
[PICTURE OF SMALL
AREA ON U.S.
SCHEDULE OF PORTFOLIO INVESTMENTS NATIONWIDE(R) GROWTH FUND CURRENCY]
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (100.3%)
--------------------------------------------------------------------------------
BEVERAGES / SOFT DRINK (1.4%)
375,000 PepsiCo, Inc. $13,757,813
----------
--------------------------------------------------------------------------------
BROADCAST MEDIA / CABLE TELEVISION (2.9%)
110,000 AT&T Corp. - Liberty Media Group Class A(*) 5,493,125
600,000 Comcast Corp. Class A(*) 23,400,000
----------
28,893,125
----------
--------------------------------------------------------------------------------
CAPITAL GOODS (2.2%)
140,000 General Electric Co. 22,015,000
----------
--------------------------------------------------------------------------------
COMMUNICATION EQUIPMENT (13.5%)
50,000 CIENA Corp.(*) 6,181,250
75,000 Comverse Technology, Inc.(*) 6,689,063
59,600 Copper Mountain Networks, Inc.(*) 4,969,150
100,000 Corning, Inc. 19,750,000
105,000 JDS Uniphase Corp.(*) 10,893,750
230,000 Lucent Technologies, Inc. 14,303,125
900,000 Nokia Corp. 51,187,499
160,000 Nortel Networks Corp. 18,120,000
-----------
132,093,837
-----------
--------------------------------------------------------------------------------
COMPUTER EQUIPMENT (11.0%)
800,000 Dell Computer Corp.(*) 40,100,000
250,000 EMC Corp.(*) 34,734,375
200,000 Hewlett-Packard Co. 27,000,000
50,000 Lexmark International Group, Inc.(*) 5,900,000
-----------
107,734,375
-----------
--------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES (16.2%)
450,000 Automatic Data Processing, Inc. 24,215,625
380,000 BMC Software, Inc.(*) 17,788,750
50,000 Broadvision, Inc.(*) 2,196,875
450,000 Cisco Systems, Inc.(*) 31,197,655
64,900 Electronics for Imaging, Inc.(*) 3,391,025
200,000 First Data Corp. 9,737,500
440,000 Microsoft Corp.(*) 30,690,000
320,000 Oracle Corp.(*) 25,580,000
260,000 Peregrine Systems, Inc.(*) 6,256,250
65,000 VERITAS Software Corp.(*) 6,972,266
-----------
158,025,946
-----------
--------------------------------------------------------------------------------
DRUGS (13.1%)
300,000 Amgen, Inc.(*) 16,800,000
250,000 Bristol-Myers Squibb Co. 13,109,375
400,000 Merck & Co., Inc. 27,800,000
700,000 Schering-Plough Corp. 28,218,750
375,000 Warner-Lambert Co. 42,679,688
-----------
128,607,813
-----------
--------------------------------------------------------------------------------
ELECTRONICS (17.8%)
350,000 Altera Corp.(*) 35,787,499
290,000 Applied Materials, Inc.(*) 29,525,625
72,500 Applied Micro Circuits Corp.(*) 9,343,438
350,000 Intel Corp. 44,384,374
317,500 Jabil Circuit, Inc.(*) 12,997,656
100,000 Motorola, Inc. 11,906,250
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
ELECTRONICS (CONTINUED)
635,000 Solectron Corp.(*) $ 29,725,938
-----------
173,670,780
--------------------------------------------------------------------------------
FINANCIAL / BANKS (0.6%)
150,000 Wells Fargo Co. 6,159,375
-----------
--------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (2.7%)
196,000 MBNA Corp. 5,206,250
135,000 Merrill Lynch & Co., Inc. 13,761,563
175,000 Schwab (Charles) Corp. 7,787,500
-----------
26,755,313
-----------
--------------------------------------------------------------------------------
MORTGAGE / ASSET BACKED OBLIGATIONS (0.9%)
200,000 Freddie Mac 9,187,500
-----------
--------------------------------------------------------------------------------
RESTAURANTS (0.7%)
175,000 McDonald's Corp. 6,671,875
--------------------------------------------------------------------------------
RETAIL (9.1%)
430,000 Amazon.com, Inc.(*) 23,730,625
100,000 Bed, Bath & Beyond, Inc.(*) 3,668,750
170,000 CVS Corp. 7,395,000
325,000 Home Depot, Inc. 18,220,313
200,000 Lowe's Cos., Inc. 9,900,000
400,000 Target Corp. 26,625,000
-----------
89,539,688
-----------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (8.2%)
430,000 AT&T Wireless Group 13,679,376
400,000 MCI WorldCom, Inc.(*) 18,175,000
500,000 Qwest Communications International(*) 21,687,500
480,000 Sprint Corp. (PCS Group)(*) 26,400,000
-----------
79,941,876
-----------
TOTAL COMMON STOCK (cost $842,832,631) 983,054,316
-----------
--------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
SHORT-TERM DEBT (1.4%)
$13,645,000 Gillette Co., 6.05%, 05/01/00 $ 13,642,708
------------
TOTAL INVESTMENTS (cost $856,477,631) $996,697,023
============
--------------------------------------------------------------------------------
(*) DENOTES A NON-INCOME PRODUCING SECURITY.
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 9
<PAGE> 12
NATIONWIDE(R) MUTUAL FUNDS
--------------------------------------------------------------------------------
NATIONWIDE FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Fund
(Class D) returned-0.55%(*) vs. a return of 7.20% for S&P 500 Index, the
benchmark index. During the six-month period, the Fund was again hurt by
the strong performance of the technology/telecom sectors and the weakness
in the health care and financial services sectors. This was especially true
during the last two months of 1999 and the first 10 weeks of 2000. During
this period in particular, lower-quality, more speculative areas of the
market did exceptionally well, while the highest quality stocks did poorly.
This general trend had been in place since late 1998, although the degree
of disparity between different quality segments of the market accelerated
quite rapidly from October of 1999 through mid-March of this year. Since
then, these low-quality areas of the market have clearly given up their
leadership position.
The top-performing securities in the Fund were Quest Diagnostics and
Warner-Lambert, up 108% and 48%, respectively. The worst- performing
holdings were IMS Health and Masco, which were down 41% and 26%,
respectively. The Fund's largest holdings turned in mixed results during
the period. Along with Warner-Lambert, Pharmacia Corp. enjoyed a 30% return
during the period, while two other large weightings in the Fund, Wells
Fargo and Quaker Oats, were down 13% and 6%, respectively.
During the period I began the process of reducing the Fund's
volatility relative to the S&P 500. Most of the reduction accomplished thus
far has been due primarily to lowering the overweighted positions in the
health care and financial services sectors, while adding to the
underweighted technology/telecom sectors.
I am encouraged as we enter the middle of the year that the Nationwide
Fund has performed quite well during the market's recent downturn. I now
believe there is a clear change in the market and feel the Fund is well
positioned for a return to a traditional "blue chip" market.
CHARLES BATH, CFA - PORTFOLIO MANAGER
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS
REINVESTED.
FUND VALUE $2,245,312,998
PORTFOLIO COMPOSITION
(Subject to Change)
------------------------------
Short-Term Debt 4.7%
------------------------------ [PIE CHART]
Convertible Bonds 0.1%
------------------------------
Common Stock 95.2%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(For Periods Ended April 30, 2000)
CLASS A(*) CLASS B(*) CLASS D
YEARS W/O SC(**) W/SC(1) W/O SC(**) W/SC(2) W/O SC(**) W/SC(3)
-------------------------------------------------------------------------
1 -2.68% -8.28% -3.45% -7.96% -2.50% -6.88%
-------------------------------------------------------------------------
5 22.60% 21.16% 22.18% 22.00% 22.65% 21.53%
-------------------------------------------------------------------------
10 16.24% 15.55% 16.04% 16.04% 16.26% 15.72%
-------------------------------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge
possible, because it has the most dramatic effect on performance data.
(*) These returns include performance achieved prior to the creation of
the class (5/11/98), excluding the effect of the 0.25% (Class A) or
1.00%
(Class B) 12b-1 fee. Had Class A or B been in existence for all of the
time period presented, the Fund's performance for such classes would
have been lower as a result of the additional expenses.
(**) These returns do not reflect the effects of a sales charge.
(1) A 5.75% front-end sales charge was deducted.
(2) A 5.00% contingent deferred sales charge (CDSC) was deducted.
The CDSC declines to 0% after 6 years.
(3) A 4.50% front-end sales charge was deducted.
(+) See legend on inside back cover.
Investment return and principal value will fluctuate, and when redeemed,
shares may be worth more or less than original cost. Past performance is no
guarantee of future results.
1 0 N A T I O N W I D E
<PAGE> 13
SCHEDULE OF PORTFOLIO INVESTMENTS NATIONWIDE(R) FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (95.2%)
--------------------------------------------------------------------------------
BATTERIES (0.4%)
539,266 Energizer Holdings, Inc.(*) $ 9,201,226
------------
--------------------------------------------------------------------------------
BEVERAGES / ALCOHOLIC (1.1%)
361,100 Anheuser-Busch Cos., Inc. 25,480,119
------------
--------------------------------------------------------------------------------
BEVERAGES / SOFT DRINK (1.7%)
1,050,200 PepsiCo, Inc. 38,529,213
------------
--------------------------------------------------------------------------------
CAPITAL GOODS (6.6%)
257,650 Eaton Corp. 21,642,600
305,300 General Electric Co. 48,008,424
143,000 Illinois Tool Works, Inc. 9,160,938
469,400 Millipore Corp. 33,650,112
191,700 Minnesota Mining & Manufacturing Co. 16,582,050
806,893 Pall Corp. 18,003,800
------------
147,047,924
------------
--------------------------------------------------------------------------------
CHEMICALS (1.8%)
705,200 Georgia Gulf Corp. 16,968,875
679,858 Rohm & Haas Co. 24,219,941
------------
41,188,816
------------
--------------------------------------------------------------------------------
COMPUTER EQUIPMENT (5.8%)
345,000 Hewlett-Packard Co. 46,575,000
417,900 Intel Corp. 52,994,943
268,500 International Business Machines Corp. 29,971,313
------------
129,541,256
------------
--------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES (5.4%)
583,700 Cisco Systems, Inc.(*) 40,466,827
921,600 First Data Corp. 44,870,400
496,500 Microsoft Corp.(*) 34,630,875
------------
119,968,102
------------
--------------------------------------------------------------------------------
CONSTRUCTION & BUILDING MATERIALS (3.6%)
410,400 Martin Marietta Materials, Inc. 21,751,200
1,117,200 Masco Corp. 25,067,175
749,600 Vulcan Materials Co. 32,841,850
------------
79,660,225
------------
--------------------------------------------------------------------------------
CONSUMER DURABLE (4.4%)
1,706,300 Black & Decker Corp. 71,771,244
205,200 Fortune Brands, Inc. 5,130,000
625,500 Maytag Corp. 21,540,656
------------
98,441,900
------------
--------------------------------------------------------------------------------
CONTAINERS (1.2%)
463,400 Sealed Air Corp.(*) 25,776,625
------------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
DRUGS (14.9%)
259,600 Allergan, Inc. $ 15,283,950
904,300 American Home Products Corp. 50,810,356
283,700 Bristol-Myers Squibb Co. 14,876,519
230,000 Merck & Co., Inc. 15,985,000
366,600 Pfizer, Inc. 15,443,025
1,195,413 Pharmacia & Upjohn, Inc. 59,695,937
1,501,500 Schering-Plough Corp. 60,529,218
864,300 Warner-Lambert Co. 98,368,143
------------
330,992,148
------------
--------------------------------------------------------------------------------
ELECTRONICS (0.8%)
113,700 Texas Instruments, Inc. 18,518,888
------------
--------------------------------------------------------------------------------
ENTERTAINMENT (2.1%)
1,070,795 Walt Disney Co. (The) 46,378,808
------------
--------------------------------------------------------------------------------
FINANCIAL / BANKS (9.1%)
509,600 Bank of New York Co., Inc. 20,925,450
803,708 Bank One Corp. 24,513,094
2,295,200 Mellon Financial Corp. 73,733,300
349,100 Pacific Century Financial Corp. 7,178,369
1,814,500 Wells Fargo Co. 74,507,905
------------
200,858,118
------------
--------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (5.7%)
1,613,084 Associates First Capital Corp. 35,790,301
2,457,900 MBNA Corp. 65,287,969
309,800 Providian Financial Corp. 27,281,763
------------
128,360,033
------------
--------------------------------------------------------------------------------
FOOD & RELATED (6.2%)
116,600 BestFoods, Inc. 5,859,150
532,200 General Mills 19,358,775
1,300,000 Quaker Oats Co. 84,743,750
1,617,800 Ralston-Ralston Purina Group 28,614,838
------------
138,576,513
------------
--------------------------------------------------------------------------------
HEALTH CARE (3.5%)
110,600 Johnson & Johnson Co. 9,124,500
729,700 Quest Diagnostics, Inc.(*) 42,459,419
869,100 St. Jude Medical, Inc.(*) 27,105,056
------------
78,688,975
------------
--------------------------------------------------------------------------------
INSURANCE (3.0%)
514,117 American International Group, Inc. 56,392,208
731,500 Horace Mann Educators Corp. 10,652,469
------------
67,044,677
------------
--------------------------------------------------------------------------------
LEISURE PRODUCTS (1.5%)
1,785,200 Brunswick Corp. 34,253,525
------------
--------------------------------------------------------------------------------
N A T I O N W I D E 1 1
<PAGE> 14
SCHEDULE OF PORTFOLIO INVESTMENTS NATIONWIDE(R) FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
MORTGAGE / ASSET BACKED OBLIGATIONS (2.8%)
1,048,300 Fannie Mae $ 63,225,594
-------------
--------------------------------------------------------------------------------
MOTOR VEHICLES (1.4%)
581,600 Ford Motor Co. 31,806,250
-------------
--------------------------------------------------------------------------------
OIL / INTERNATIONAL (2.4%)
685,000 Exxon Mobil Corp. 53,215,938
-------------
--------------------------------------------------------------------------------
OIL EQUIPMENT & SERVICES (0.4%)
119,900 Schlumberger Ltd. 9,179,844
-------------
--------------------------------------------------------------------------------
PRINTING & PUBLISHING (2.7%)
103,700 American Greetings Corp. Class A 1,879,563
525,500 E.W. Scripps Co. Class A 24,534,281
315,800 Gannett Co., Inc. 20,171,725
30,700 Washington Post Co. Class B 14,981,600
-------------
61,567,169
-------------
--------------------------------------------------------------------------------
RESTAURANTS (1.3%)
778,400 McDonald's Corp. 29,676,500
-------------
--------------------------------------------------------------------------------
RETAIL (1.6%)
650,600 Wal-Mart Stores, Inc. 36,026,975
-------------
--------------------------------------------------------------------------------
RETAIL / FOOD & DRUG (1.0%)
600,000 SYSCO Corp. 22,575,000
-------------
--------------------------------------------------------------------------------
SERVICES (1.0%)
586,400 Dun & Bradstreet Corp. (The) 17,665,300
342,400 IMS Health, Inc. 5,842,200
-------------
23,507,500
-------------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (1.8%)
487,188 ALLTEL Corp. 32,458,901
176,000 MCI WorldCom, Inc.(*) 7,997,000
-------------
40,455,901
-------------
TOTAL COMMON STOCK (Cost $1,556,554,745) 2,129,743,762
SHARES SECURITY VALUE
CONVERTIBLE BONDS (0.1%)
--------------------------------------------------------------------------------
7,826,000 Consorcio G Group Dina, (a) 8.00%,
8/8/04, Convertible Bonds $ 2,768,448
-------------
TOTAL CONVERTIBLE BONDS (Cost $7,468,335) 2,768,448
-------------
--------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
SHORT-TERM DEBT (4.7%)
--------------------------------------------------------------------------------
21,354,000 Associates First Capital Corp.,
5.98%, 5/03/00 21,343,358
42,127,000 Gillette Co., 6.05%, 05/01/00 42,119,920
42,884,000 Norwest Financial, Inc., 6.00%,
05/02/00 42,876,853
-------------
TOTAL SHORT-TERM DEBT (Cost $106,350,758) 106,340,131
-------------
TOTAL INVESTMENTS (Cost $1,669,373,838) $ 2,238,852,341
==============
--------------------------------------------------------------------------------
(*) DENOTES A NON-INCOME PRODUCING SECURITY.
COST ALSO REPRESENTS COST FOR FEDERAL INCOME TAX PURPOSES.
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
(a) DENOMINATED IN U.S. DOLLARS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
1 2 N A T I O N W I D E
<PAGE> 15
[PICTURE OF SMALL
AREA ON U.S.
NATIONWIDE(R) MUTUAL FUNDS CURRENCY]
--------------------------------------------------------------------------------
BOND FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Bond
Fund (Class D) returned -0.25%(*) vs. a return of 1.49% for the Lehman
Brothers Government/Corporate Bond Index, the benchmark index.
Returns have been negative for the last year and a half, as interest
rates have moved steadily higher. The five-year Treasury yield was 6.55% as
of April 30, 2000, up from 4.23% at the start of this period. Many
fixed-income funds have had disappointing results over this period as many
investors have withdrawn a record amount from these funds in the first four
months of 2000. This is similar to the heavy withdrawals seen near the end
of 1994's run-up in rates. Hopefully, history will repeat, as returns in
1995 were excellent.
The primary reason we underperformed our benchmark was the dreadful
returns for corporate bonds in a market environment that severely punished
companies that disappointed. All sectors lagged Treasuries, but corporate
bonds were the worst, underperforming by 247 basis points over the
six-month period. U.S. Treasury securities have a 51% weighting in the
benchmark index, and in this environment it's difficult for a portfolio
that typically has at least two-thirds invested in Corporates to keep pace.
Over the long-term, however, corporate bonds have historically outperformed
if held to maturity and defaults remain within historical parameters. The
question is how long we have to wait. Corporate bonds have been in a bear
market for three years now, as evidenced by steadily widening spreads and
poor relative performance. But these wider spreads make it more plausible
they will begin to outperform. Their yield advantage is now about 170 basis
points over U.S. Treasury securities, near the widest level of the last 20
years.
During the last six months, I increased our Treasury holdings to 17%
of the Fund and short-term investments to 9%. Corporate bond spreads have
widened in response to weakening credit quality, increased event risk, and
the inversion of the yield curve. All this is taking place while the
Federal Reserve has been gradually increasing the Fed Funds rate over the
last year. So far, this has been totally ineffective in slowing the economy
and the Fund anticipates an eventual move to 7.5% or higher. Until some of
these pressures ease and the Federal Reserve gets closer to the end of its
tightening campaign, the Fund's unlikely to get much relief and a defensive
position is warranted.
The near-term outlook doesn't look so good, and that is why corporate
bonds yield over 8%. Markets are forward looking and already anticipate a
lot of the bad news to come. Value buyers have been scarce in the financial
markets of late, but 9% is about the long-term return from the stock
market. Those yield levels should draw attention, and if yields approach
the 9% to 10% level, the Fund will likely sell Treasuries and extending
maturities to lock in these historically attractive rates.
DOUG KITCHEN, CFA - PORTFOLIO MANAGER
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS
REINVESTED.
FUND VALUE $117,344,383
PORTFOLIO COMPOSITION
(Subject to Change)
--------------------------------------
Corporate Bonds 73.4%
-------------------------------------- [PIE CHART]
U.S. Government Obligations 18.0%
--------------------------------------
Short-Term Debt 5.0%
--------------------------------------
Canadian Bonds 3.6%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(For Periods Ended April 30, 2000)
CLASS A(*) CLASS B(*) CLASS D
YEARS W/O SC(**) W/SC(1) W/O SC(**) W/SC(2) W/O SC(**) W/SC(1)
-------------------------------------------------------------------------
1 -1.56% -6.03% -2.25% -6.88% -1.34% -5.82%
-------------------------------------------------------------------------
5 6.21% 5.23% 5.95% 5.64% 6.32% 5.34%
-------------------------------------------------------------------------
10 7.32% 6.83% 7.19% 7.19% 7.38% 6.88%
-------------------------------------------------------------------------
ALL FIGURES SHOWING THE EFFECT OF A SALES CHARGE REFLECT THE MAXIMUM CHARGE
POSSIBLE, BECAUSE IT HAS THE MOST DRAMATIC EFFECT ON PERFORMANCE DATA.
(*) THESE RETURNS INCLUDE PERFORMANCE ACHIEVED PRIOR TO THE CREATION OF
THE CLASS (5/11/98), EXCLUDING THE EFFECT OF THE 0.25% (CLASS A) OR
0.85% (CLASS B) 12B-1 FEE. HAD CLASS A OR B BEEN IN EXISTENCE FOR ALL
OF THE TIME PERIODS PRESENTED, THE FUND'S PERFORMANCE FOR SUCH CLASSES
WOULD HAVE BEEN LOWER AS A RESULT OF THE ADDITIONAL EXPENSES.
(**) THESE RETURNS DO NOT REFLECT THE EFFECTS OF A SALES CHARGE.
(1) A 4.50% FRONT-END SALES CHARGE WAS DEDUCTED.
(2) A 5.00% CONTINGENT DEFERRED SALES CHARGE (CDSC) WAS DEDUCTED. THE CDSC
DECLINES TO 0% AFTER 6 YEARS.
(+) SEE LEGEND ON INSIDE BACK COVER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED,
SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
N A T I O N W I D E 1 3
<PAGE> 16
STATEMENT OF INVESTMENTS NATIONWIDE(R) BOND FUND
-------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
CANADIAN BONDS (3.6%)
-------------------------------------------------------------------------------
<S> <C> <C>
$4,000,000 Quebec (Province of), 11.00%, 06/15/15
(cost $4,215,752) $ 4,165,020
-----------
CORPORATE BONDS (73.4%)
-------------------------------------------------------------------------------
AEROSPACE (1.9%):
2,500,000 Lockheed Martin Corp., 7.875%, 03/15/23 2,153,193
-----------
-------------------------------------------------------------------------------
AIRLINES (1.4%)
1,500,000 American Airlines, Inc., 10.33%, 03/04/05 1,623,942
-----------
-------------------------------------------------------------------------------
CHEMICALS (5.0%)
4,000,000 English China Clays Delaware, Inc., 7.375%,
10/01/02 3,982,764
2,000,000 Witco Corp., 6.125%, 02/01/06 1,750,276
-----------
5,733,040
-----------
-------------------------------------------------------------------------------
COMMUNICATION EQUIPMENT (1.6%)
2,000,000 Motorola, Inc., 6.50%, 09/01/25 1,898,772
-----------
-------------------------------------------------------------------------------
CONSTRUCTION & BUILDING MATERIALS (5.1%)
4,000,000 Armstrong World Industries, Inc., 9.75%,
04/15/08 3,959,184
2,000,000 CSR America, Inc., 6.875%, 07/21/05 1,917,336
-----------
5,876,520
-----------
-------------------------------------------------------------------------------
CONSUMER DURABLE (0.9%)
1,030,000 Whirlpool Corp., 9.10%, 02/01/08 1,091,770
-----------
-------------------------------------------------------------------------------
CONSUMER NON-CYCLICAL (2.5%)
3,000,000 Kimberly-Clark Corp., 7.875%, 02/01/23 2,889,588
-----------
-------------------------------------------------------------------------------
CONTAINERS (1.7%)
2,000,000 Bemis Co., Inc., 6.70%, 07/01/05 1,925,424
-----------
-------------------------------------------------------------------------------
ELECTRONICS (1.7%)
2,000,000 Avnet, Inc., 6.45%, 08/15/03 1,924,484
-----------
-------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (2.7%)
2,000,000 Block Financial Corp., 8.50%, 04/15/07 1,989,306
-----------
1,000,000 Lehman Brothers Holdings, Inc., 11.625%,
05/15/05 1,132,177
-----------
3,121,483
-----------
-------------------------------------------------------------------------------
FOOD & RELATED (1.4%)
2,000,000 Dole Foods Co., 6.375%, 10/01/05 1,641,766
-----------
-------------------------------------------------------------------------------
HEALTH CARE (6.2%)
4,000,000 Becton, Dickinson & Co., 8.70%, 01/15/25 4,178,519
2,000,000 Kaiser Foundation Hospitals, 9.55%, 07/15/05 2,151,100
1,000,000 McKesson HBOC, Inc., 6.30%, 03/01/05 868,023
-----------
7,197,642
-----------
-------------------------------------------------------------------------------
HOTELS / MOTELS (4.1%)
$3,000,000 Hilton Hotels Corp., 7.375%, 06/01/02 $2,901,069
2,000,000 Marriott International, Inc., 6.875%,
11/15/05 1,880,532
-----------
4,781,601
-----------
-------------------------------------------------------------------------------
INSURANCE (1.9%)
2,000,000 AMBAC, Inc., 9.375%, 08/01/11 2,165,706
-----------
-------------------------------------------------------------------------------
LEISURE PRODUCTS (2.4%)
1,000,000 Brunswick Corp., 6.75%, 12/15/06 927,503
2,000,000 Rank Group Finance, 6.75%, 11/30/04 1,823,460
-----------
2,750,963
-----------
-------------------------------------------------------------------------------
MACHINERY & CAPITAL GOODS (3.4%)
1,000,000 Clark Equipment Co., 8.00%, 05/01/23 991,605
1,000,000 Precision Castparts Corp., 8.75%, 03/15/05 993,530
2,000,000 Worthington Industries, Inc., 7.125%,
05/15/06 1,903,014
-----------
3,888,149
-----------
-------------------------------------------------------------------------------
NATURAL GAS (7.1%)
2,500,000 ANR Pipeline Co., 7.00%, 06/01/25 2,383,932
2,000,000 Columbia Energy Group, 6.80%, 11/28/05 1,892,200
2,000,000 Consolidated Natural Gas Co., 7.375%, 04/01/05 1,945,958
2,000,000 ONEOK, Inc., 7.75%, 08/15/06 1,965,328
-----------
8,187,418
-----------
-------------------------------------------------------------------------------
NUCLEAR ENERGY (1.0%)
1,500,000 USEC, Inc., 6.625%, 01/20/06 1,173,632
-----------
-------------------------------------------------------------------------------
OIL & GAS (0.8%)
1,000,000 Texaco Capital, Inc., 7.75%, 02/15/33 940,169
-----------
-------------------------------------------------------------------------------
PAPER AND FOREST PRODUCTS (5.5%)
1,500,000 International Paper Co., 8.12%, 06/15/24 1,380,804
3,000,000 ITT Rayonier, Inc., 7.50%, 10/15/02 2,981,253
2,000,000 Willamette Industries, Inc., 7.35%, 07/01/26 1,951,380
-----------
6,313,437
-----------
-------------------------------------------------------------------------------
POLLUTION CONTROL (2.3%)
3,000,000 Waste Management, Inc., 8.75%, 05/01/18 2,640,864
-------------------------------------------------------------------------------
RETAIL (4.8%)
1,000,000 Dayton Hudson Corp., 8.50%, 12/01/22 1,002,680
3,000,000 May Department Stores Co., 8.30%, 07/15/26 2,926,593
2,500,000 Penney (J.C.) Co., Inc., 6.875%, 10/15/15 1,637,713
-----------
5,566,986
-----------
-------------------------------------------------------------------------------
RUBBER / TIRES (1.3%)
1,500,000 Goodyear Tire & Rubber, 8.50%, 03/15/07 1,499,853
-----------
-------------------------------------------------------------------------------
SERVICES (0.5%)
1,000,000 Service Corp. International, 6.30%, 03/15/03 627,500
-----------
</TABLE>
14 N A T I O N W I D E
<PAGE> 17
STATEMENT OF INVESTMENTS NATIONWIDE(R) BOND FUND CONTINUED
-------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
PRINCIPAL SECURITY VALUE
<TABLE>
<CAPTION>
CORPORATE BONDS (CONTINUED)
-------------------------------------------------------------------------------
TELECOMMUNICATIONS (2.6%)
<S> <S> <C>
$3,000,000 Rochester Telephone Corp., 8.77%, 04/16/01 $3,026,679
-----------
-------------------------------------------------------------------------------
TEXTILES / APPAREL MANUFACTURING (1.0%)
1,075,000 VF Corp., 9.25%, 05/01/22 1,142,264
-----------
-------------------------------------------------------------------------------
UTILITIES (2.6%)
3,000,000 Montana Power Co., 7.00%, 03/01/05 3,010,986
-----------
TOTAL CORPORATE BONDS (cost $91,147,048) 84,793,831
-----------
U.S. GOVERNMENT OBLIGATIONS (18.0%)
-------------------------------------------------------------------------------
GOVERNMENT-SPONSORED MORTGAGE-BACKED OBLIGATIONS (0.5%)
110,639 FHLMC 29X, 6.75%, 02/25/23 103,838
228,542 FHLMC 29Z, 6.75%, 04/25/24 201,065
282,934 FNMA REMIC G92-15G, 7.00%, 04/25/20 280,741
-----------
TOTAL GOVERNMENT-SPONSORED MORTGAGE-BACKED OBLIGATIONS
(cost $602,948) 585,644
-----------
-------------------------------------------------------------------------------
GOVERNMENT-TREASURY (17.5%)
13,000,000 U.S. Treasury Bond, 8.125%, 08/15/19 15,612,194
5,000,000 U.S. Treasury Note, 5.50%, 08/15/28 4,546,875
-----------
20,159,069
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS (cost $19,844,833) 20,744,713
-----------
-------------------------------------------------------------------------------
SHORT-TERM DEBT (5.0%)
2,002,000 Gillette Co., 6.05%, 05/01/00 2,001,664
-----------
3,734,000 Sonoco Products, 6.06%, 05/01/00 3,734,000
-----------
TOTAL SHORT-TERM DEBT (cost $5,736,000) 5,735,664
-----------
TOTAL INVESTMENTS (cost $121,546,581) $ 115,439,228
=============
-------------------------------------------------------------------------------
The abbreviations in the above statement stand for the following:
FHLMC Federal Home Loan Mortgage Corp.
FNMA Federal National Mortgage Association
REMIC Real Estate Mortgage Investment Conduit
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
N A T I O N W I D E 15
<PAGE> 18
NATIONWIDE(R) MUTUAL FUNDS
-------------------------------------------------------------------------------
TAX-FREE INCOME FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Tax- Free
Income Fund (Class D) returned 2.70%(*) vs. a return of 2.63% for the Lehman
Brothers Municipal Bond Index, the benchmark index.
The municipal bond market went through a tough year in 1999. Yields
moved up all along the yield curve, causing market values of bond fund holdings
to erode significantly. While bond markets in general suffered from uncertainty
over the outlook for Federal Reserve Policy, the municipal market also suffered
from a collapse in institutional demand from two key sectors - bond funds and
property and casualty insurance companies - and the problematic tax treatment of
discount municipals called Accrued Market Discount. The market appetite for
bonds trading at a significant discount from the original offering price was
greatly reduced. This problem was exacerbated as tax swapping increased the
amount of market discount supply in the secondary markets. As investors
continued to avoid the purchase of these securities, their market price
declined.
However, during the week ended February 4, 2000, the bond universe
changed; the capital markets could no longer rely on the Treasury markets to
provide a near-perfect benchmark of trends in interest rates. The Treasury yield
curve became inverted as yields on long maturity debt became depressed by a
growing shortage in outstanding debt. In spite of this inversion, the municipal
market had become fairly stable in part due to a shortage of new issue product.
Municipal yields declined but didn't fully participate in the substantial rally
in the Treasury market, and the municipal bond yield curve remained positively
sloped. Short-term municipal yields actually rose over the period, a result of
the upward pressure from Federal Reserve policy which has pushed the Fed Funds
rate up 125 basis points from 4.75% to 6.00%. Further Federal Reserve tightening
could put municipal bond yields under pressure, but the magnitude of such
increases is likely to be muted by the shortage of new issue product.
As a result of the decline in long-term bond yields, the top performing
securities in the Fund during the period were long-term discount issues with
coupons in the 4% to 5% range, the same securities that investors had avoided at
1999 year end. The bottom per- forming issues were short-term premium issues
with coupons in the 7% to 9% range, the better performing securities at year
end.
No significant changes were made to the composition of the Fund during
the period. The Nationwide Tax-Free Fund has an average maturity of 18.8 years
and duration of 8.2 years.
ALPHA L. BENSON, MBA - PORTFOLIO MANAGER
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS
REINVESTED.
FUND VALUE $216,941,819
PORTFOLIO COMPOSITION
(Subject to Change)
----------------------------------
Other assets less liabilities 2.0% [PIE CHART]
---------------------------
Municipal Securities 98.0%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(For Periods Ended April 30, 2000)
Class A(*) Class B(*) Class D
Years w/o SC(**) w/SC(1) w/o SC(**) w/SC(2) w/o SC(**) w/SC(1)
------------------------------------------------------------------
1 -2.31% -6.74% -2.99% 7.63% -2.16% -6.60%
------------------------------------------------------------------
5 4.89% 3.93% 4.63% 4.30% 4.97% 4.01%
------------------------------------------------------------------
10 6.29% 5.81% 6.15% 6.15% 6.33% 5.85%
------------------------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge
possible, because it has the most dramatic effect on performance data.
(*) These returns include performance achieved prior to the creation of the
class (5/11/98), excluding the effect of the 0.25% (Class A) or 0.85%
(Class B) 12b-1 fee. Had Class A or B been in existence for all of the
time periods presented, the Fund's performance for such classes would
have been lower as a result of the additional expenses.
(**) These returns do not reflect the effects of a sales charge.
(1) A 4.50% front-end sales charge was deducted.
(2) A 5.00% contingent deferred sales charge (CDSC) was deducted.
The CDSC declines to 0% after 6 years.
(+) See legend on inside back cover.
Investment return and principal value will fluctuate, and when redeemed,
shares may be worth more or less than original cost. Past performance is no
guarantee of future results.
16 N A T I O N W I D E
<PAGE> 19
[PICTURE OF SMALL AREA
ON U.S. CURRENCY]
STATEMENT OF INVESTMENTS NATIONWIDE(R) TAX-FREE INCOME FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (98.0%)
--------------------------------------------------------------------------------
<S> <C> <C>
ALABAMA (8.1%)
$ 2,630,000 Alabama Housing Finance Authority
Single-Family Mortgage Revenue Bonds,
(Collateralized Home Mortgage Revenue
Bond Program), Series 1996-D,
6.00%, 2016 $ 2,653,013
1,100,000 Birmingham, Alabama General
Obligation Unlimited Tax
Parking Warrants, Series 1995-A,
5.90%, 2018 1,108,250
2,000,000 Birmingham, Alabama General
Obligation Unlimited Tax
Refunding Revenue Bonds, Series 1992-B,
6.25%, 2016 2,050,000
3,500,000 Birmingham, Alabama Water & Sewer
Revenue Warrants, Series 1998-A,
4.75%, 2029 2,865,625
2,480,000 Birmingham, Alabama Waterworks
& Sewer Board Refunding Revenue
Bonds, Series 1992, 6.125%, 2012 2,573,000
2,500,000 Huntsville, Alabama General Obligation
Limited Tax Warrants, Series 1992-A,
6.00%, 2012 2,612,500
1,500,000 Jefferson County, Alabama Sewer
Capital Improvement Revenue Warrants,
Series A, 5.00%, 2033 1,275,000
3,000,000 Jefferson County, Alabama Sewer Capital
Improvement Revenue Warrants, Series A,
5.125%, 2029 2,632,500
----------
17,769,888
----------
--------------------------------------------------------------------------------
ARIZONA (2.0%)
1,800,000 Mesa, Arizona Industrial Development
Authority Revenue Bonds, (Discovery
Health Systems), Series A,
5.625%, 2029 1,714,500
2,500,000 Salt River Project Agricultural
Improvement & Power District,
Arizona Electric System Revenue Bonds,
Series 1992-C, 6.20%, 2012 2,593,750
----------
4,308,250
----------
--------------------------------------------------------------------------------
COLORADO (2.2%)
340,000 Colorado Housing Finance Authority
Single-Family Housing Revenue Refunding
Bonds, Series 1991-A, 7.15%, 2014 351,475
1,900,000 Denver, Colorado City & County Airport
Revenue Bonds, Series B, 5.00%, 2025 1,767,000
3,000,000 Denver, Colorado City & County Airport
Revenue Bonds, Series D, 5.50%, 2025 2,580,000
----------
4,698,475
----------
--------------------------------------------------------------------------------
CONNECTICUT (2.0%)
4,115,000 Connecticut Housing Finance Authority
Housing Mortgage Finance Program Bonds,
Series 1992-B, 6.70%, 2012 4,300,175
----------
--------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (1.0%)
2,500,000 District of Columbia General Obligation
Unlimited Bonds, Series A, 5.50%, 2029 2,196,875
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
GEORGIA (3.0%)
$ 1,000,000 Atlanta, Georgia Airport General Obligation
Refunding Revenue Bonds, Series A,
5.50%, 2026 $ 945,000
1,000,000 Georgia Local Government Certificates of
Participation Grantor Trust, Series 1998-A,
4.75%, 2028 826,250
2,750,000 Georgia Municipal Electric Power Authority
Revenue Bonds, Series 1991-V,
6.60%, 2018 2,932,188
1,500,000 Georgia Private College & Universities
Authority, Revenue Refunding Bonds,
(Mercer University Project), Series A,
5.25%, 2025 1,306,875
580,000 Georgia Residential Financial Authority
Homeownership Mortgage Revenue Bonds,
Series A, 7.50%, 2017 600,399
----------
6,610,712
----------
--------------------------------------------------------------------------------
Illinois (7.8%)
3,050,000 Chicago Park District, Illinois General
Obligation Unlimited Tax Park Bonds,
Series 1996, 5.60%, 2021 2,928,000
1,750,000 Illinois Development Finance Authority
Revenue Bonds, (Adventist Health
Systems / Sunbelt Obligation),
5.50%, 2020 2,460,000
3,000,000 Illinois Development Finance Authority
Revenue Bonds, (Adventist Health
Systems / Sunbelt Obligation),
5.65%, 2024 1,426,250
2,185,000 Illinois Educational Facility Authority
Revenue Bonds (Loyola University),
Series 1991-A, 7.125%, 2021 2,286,056
1,000,000 Illinois Housing Development Authority
Homeowner Mortgage Revenue Bonds,
Series 1994 A-1, 6.45%, 2017 1,023,750
2,500,000 Illinois State Building, Illinois Sales Tax
Revenue Bonds, Series V, 6.375%, 2017 2,612,500
3,000,000 Illinois State General Obligation Unlimited
Tax Bonds, Series 1994, 5.80%, 2019 2,992,500
1,500,000 Metropolitan Pier & Exposition Authority,
Illinois Dedicated State Tax Revenue Bonds,
(Mccormick Place Expansion Project),
5.50%, 2024 1,395,000
----------
17,124,056
----------
--------------------------------------------------------------------------------
INDIANA (3.8%)
1,000,000 Ball State University Student Fee Revenue
Bonds, Series J, 6.20%, 2020 1,018,750
5,335,000 Indiana State Toll Road Commission
East-West Toll Road Revenue Bonds,
Series 1980, 9.00%, 2015 7,122,225
----------
8,140,975
----------
--------------------------------------------------------------------------------
KANSAS (0.7%)
1,500,000 Wichita, Kansas Hospital Revenue
Refunding Bonds, (Facilities Improvements
Series XI), 6.75%, 2019 1,531,875
----------
</TABLE>
N A T I O N W I D E 1 7
<PAGE> 20
STATEMENT OF INVESTMENTS NATIONWIDE(R) TAX-FREE INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
KENTUCKY (1.6%)
$ 3,250,000 Jefferson County, Kentucky Jewish Hospital
Healthcare Services Health Facilities
Revenue Bonds, (Jewish Hospital, Inc.),
Series 1995, 6.50%, 2015
$3,384,063
-----------
--------------------------------------------------------------------------------
MASSACHUSETTS (1.9%)
2,525,000 Massachusetts State General Obligation
Unlimited Tax Bonds, (Consolidated
Loan), Series 1992-B, 6.50%, 2013 2,632,313
1,700,000 Massachusetts State Health & Educational
Facilities Authority, Southcoast Health
Systems Revenue Bonds, Series A,
4.75%, 2027 1,381,250
-----------
4,013,563
-----------
--------------------------------------------------------------------------------
MICHIGAN (4.2%)
3,500,000 Michigan State General Obligation
Unlimited Tax Bonds, (Environmental
Protection Program), Series 1992,
6.25%, 2012 3,788,750
2,000,000 Michigan State Hospital Finance Authority
Revenue Bonds, (Ascension Health Credit),
Series A, 5.75%, 2018 1,965,000
1,500,000 Michigan State Hospital Finance Authority
Refunding Revenue Bonds, (Henry Ford
Health), 6.00%, 2024 1,380,000
1,000,000 Michigan State Hospital Finance Authority
Refunding Revenue Bonds, (Henry Ford
Health), Series A, 5.25%, 2020 833,750
1,150,000 University of Michigan Higher Education
Housing Revenue Bonds, Series 1996-A,
5.125%, 2015 1,086,750
-----------
9,054,250
-----------
--------------------------------------------------------------------------------
MINNESOTA (2.1%)
2,885,000 Minnesota State Housing Finance Agency
Single-Family Mortgage Revenue Bonds,
Series 1994-K, 6.40%, 2015 2,957,125
1,500,000 St. Louis Park Minnesota Independent
School District Number 238 General
Obligation Unlimited Tax Bonds,
5.75%, 2018 1,501,875
-----------
4,459,000
-----------
--------------------------------------------------------------------------------
MISSOURI (1.0%)
2,000,000 Missouri State Environmental Improvement
& Energy Resources Authority Water
Pollution Control Revenue Bonds,
6.55%, 2014 2,100,000
-----------
--------------------------------------------------------------------------------
NEBRASKA (2.4%)
5,000,000 Nebraska Public Power District, Power Supply
Systems Revenue Bonds, Series 1993,
6.125%, 2015 5,237,500
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
NEW HAMPSHIRE (0.7%)
$ 1,500,000 New Hampshire State Turnpike Systems
Refunding Revenue Bonds, 5.75%, 2020 $1,462,500
-----------
--------------------------------------------------------------------------------
NEW JERSEY (1.0%)
1,000,000 New Jersey State Transportation Trust Fund
Authority, Transportation Systems Revenue
Bonds, Series A, 5.75%, 2017 1,012,500
1,000,000 New Jersey State Turnpike Authority Revenue
Bonds, Series 1991-C, 6.50%, 2016 1,068,750
-----------
2,081,250
-----------
--------------------------------------------------------------------------------
NEW MEXICO (1.1%)
2,500,000 Bernalillo County, New Mexico Gross
Receipts Tax Revenue Bonds
5.25%, 2026 2,284,375
-----------
--------------------------------------------------------------------------------
NEW YORK (0.9%)
1,000,000 New York State Local Government Assistance
Corporation Revenue Refunding Bonds,
Series 1993-E, 6.00%, 2014 1,048,750
1,000,000 New York, New York City Transitional Finance
Authority Future Tax Secured Revenue
Bonds, Series B, 5.75%, 2019 990,000
-----------
2,038,750
-----------
--------------------------------------------------------------------------------
NORTH CAROLINA (6.0%)
425,000 Charlotte-Mecklenberg Hospital Authority,
North Carolina Health Care Systems
Revenue Bonds, Series 1992,
6.25%, 2020 425,531
1,000,000 Cumberland County, North Carolina Hospital
Facilities Revenue Bonds, (Cumberland
County Hospital Systems, Inc.),
5.25%, 2019 852,500
1,940,000 North Carolina Housing Finance Agency,
Single-Family Revenue Bonds, Series A,
6.25%, 2017 1,976,374
1,251,000 North Carolina Housing Finance Agency,
Single-Family Revenue Bonds, Series J,
7.40%, 2022 1,276,045
1,015,000 North Carolina Housing Finance Agency,
Single-Family Revenue Bonds, Series N,
7.40%, 2028 1,042,588
2,500,000 North Carolina Medical Care Commission
Hospital Revenue Bonds, (Firsthealth of
the Carolinas), 4.75%, 2026 2,003,125
4,300,000 North Carolina Medical Care Commission
Hospital Revenue Bonds, (Gaston Health
Care), 5.00%, 2029 3,461,500
2,000,000 North Carolina Medical Care Commission
Hospital Revenue Refunding Bonds, (North
Carolina Baptist Hospitals Project),
Series 1992-A, 6.375%, 2014 2,037,500
-----------
13,075,163
-----------
</TABLE>
1 8 N A T I O N W I D E
<PAGE> 21
[PICTURE OF SMALL AREA
ON U.S. CURRENCY]
STATEMENT OF INVESTMENTS NATIONWIDE(R) TAX-FREE INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
OHIO (1.6%)
$ 1,100,000 Franklin County, Ohio Hospital Refunding
& Improvement Revenue Bonds,
(The Children's Hospital Project),
Series 1996-A, 5.75%, 2020 $1,050,500
1,000,000 Hamilton, Ohio City School District General
Obligation Bonds, Series A, 5.50%, 2019 957,500
1,500,000 Montgomery County, Ohio Hospital Revenue
Bonds, (Kettering Medical Center),
6.75%, 2018 1,413,750
-----------
3,421,750
-----------
--------------------------------------------------------------------------------
PENNSYLVANIA (3.6%)
1,500,000 Pennsylvania Housing Finance Agency
Rental Housing Refunding Revenue
Bonds, Issue 1992, 6.25%, 2007 1,539,375
4,055,000 Pennsylvania Housing Finance Agency
Rental Housing Refunding Revenue
Bonds, Issue 1992, 6.40%, 2012 4,166,512
2,000,000 Pennsylvania State Turnpike Commission,
Oil Franchise Tax Revenue Bonds,
Series A, 6.00%, 2014 2,112,500
-----------
7,818,387
-----------
--------------------------------------------------------------------------------
SOUTH CAROLINA (6.7%)
4,980,000 Charleston, South Carolina Waterworks
& Sewer System Refunding & Capital
Improvement Revenue Bonds,
Series 1991, 6.00%, 2018 5,029,800
3,075,000 South Carolina State Housing Finance
& Development Authority Homeownership
Mortgage Purchase Bonds, Series 1994-A,
6.375%, 2016 3,194,156
1,500,000 South Carolina State Housing Finance
& Development Authority Multi-Family
Revenue Refunding Bonds, Series 1992-A,
6.875%, 2023 1,548,750
1,000,000 South Carolina State Public Service
Authority Revenue Bonds, Series A,
5.50%, 2022 947,500
3,000,000 South Carolina Transportation Infrastructure
Revenue Bonds, Series A, 5.375%, 2024 2,775,000
1,000,000 Spartanburg, South Carolina Water System
Revenue Bonds, Series 1996,
6.10%, 2006 1,055,000
-----------
14,550,206
-----------
--------------------------------------------------------------------------------
TENNESSEE (2.7%)
1,040,000 Nashville & Davidson County, Tennessee
Health & Educational Facilities Revenue
Bonds, (Meharry Medical College New
Collateralized), Series 1979,
7.875%, 2004 1,095,900
4,200,000 Shelby County, Tennessee Educational
& Housing Facilities Board Revenue
Bonds, (St. Judes Childrens Research),
5.375%, 2024 3,732,750
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
TENNESSEE (CONTINUED)
$ 1,000,000 Shelby County, Tennessee Health Educational
& Housing Facilities Board Revenue
Bonds, (St. Judes Childrens Research),
6.00%, 2014 $1,002,500
----------
5,831,150
----------
--------------------------------------------------------------------------------
TEXAS (15.4%)
2,325,000 Beaumont Independent School District,
Texas General Obligation Unlimited Tax
School Building Bonds, Series 1996,
5.00%, 2016 2,150,625
1,300,000 Collin County, Texas Permanent Improvement
General Obligation Limited Tax Bonds,
Series A, 5.50%, 2019 1,252,875
2,000,000 Comal, Texas Independent School District
General Obligation Unlimited Tax School
Building and Refunding Bonds,
5.625%, 2019 1,950,000
2,300,000 Fort Bend Independent School District,
Texas General Obligation Unlimited Tax
Bonds, Series 1996, 5.00%, 2018 2,084,375
1,350,000 Fort Worth, Texas General Obligation Limited
Tax Bonds, 5.625%, 2017 1,336,500
1,000,000 Gulf Coast Waste Disposal Authority
Texwaste Disposal Revenue Bonds, (Valero
Energy Corp. Project), 5.70%, 2032 831,250
5,325,000 Harris County, Texas Health Facilities
Development Corporation Revenue School
Health Care Systems, Series B,
5.75%, 2027 5,211,844
935,000 Houston Texas Water & Sewer Systems
Junior Lien Partially Refunded Revenue
Bonds Series C, 6.375%, 2017 954,869
1,500,000 Houston, Texas Independent School District
General Obligation Limited Tax School
House Refunding Bonds, Series 1997,
5.375%, 2017 1,440,000
7,000,000 Houston, Texas Independent School District
General Obligation Limited Tax School
House Refunding Bonds, Series 1997,
5.375%, 2017 5,775,000
65,000 Houston, Texas Water & Sewer Junior Lien
Revenue Refunding Bonds, Series 1991-C,
6.375%, 2017 67,925
1,245,000 Lower Colorado River Authority, Texas Junior
Lien Refunding Revenue Bonds, Escrowed
Series 1992, 6.00%, 2017 1,296,356
515,000 Lower Colorado River Authority, Texas Junior
Lien Refunding Revenue Bonds, Unrefunded
Series 1992, 6.00%, 2017 524,656
650,000 Lower Colorado River Authority, Texas Junior
Lien Refunding Revenue Bonds, Unrefunded
Series 1992, 6.00%, 2017 662,188
1,250,000 Port Corpus Christi, Texas Industrial
Development Corporation Revenue
Refunding Bonds, (Valero Energy Corp.),
Series 1998-A, 5.45%, 2027 1,043,750
</TABLE>
N A T I O N W I D E 1 9
<PAGE> 22
STATEMENT OF INVESTMENTS NATIONWIDE(R) TAX-FREE INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
TEXAS (CONTINUED)
$ 1,000,000 Texas State Water Development Board
Revolving Fund Senior Lien revenue
Bonds, Series B, 5.00%, 2019 $ 888,750
2,415,000 Texas State Water Development General
Obligation Unlimited Tax Bonds,
Series 1994, 6.90%, 2017 2,550,843
760,000 Texas State Water Development General
Obligation Unlimited Tax Bonds,
Series 1994, 6.90%, 2017 813,200
2,655,000 Weatherford, Texas Independent School
District General Obligation Unlimited
Tax School Building and Refunding Bonds,
Series 1994, 6.50%, 2015 2,817,619
-----------
33,652,625
-----------
--------------------------------------------------------------------------------
UTAH (0.5%)
1,000,000 Utah State Housing Finance Agency
Multi-Family Housing Revenue Refunding
Bonds, (Cottonwoods Apartment Project),
Issue 1995, 6.30%, 2015 1,016,250
-----------
--------------------------------------------------------------------------------
VERMONT (0.9%)
2,000,000 Vermont Educational & Health Buildings
Financing Agency Revenue Bonds,
(Fletcher Allen Health), Series A,
6.00%, 2023 1,995,000
-----------
--------------------------------------------------------------------------------
VIRGINIA (5.7%)
940,000 Fairfax County, Virginia Water Authority
Revenue Refunding Bonds, Series 1992,
6.00%, 2022 950,575
1,205,000 Henrico County, Virginia Water & Sewer
System Refunding Revenue Bonds,
Series 1994, 5.875%, 2014 1,230,606
2,900,000 Virginia Housing Development Authority
Commonwealth Mortgage Revenue Bonds,
Subseries C-7, 6.30%, 2015 2,939,875
1,000,000 Virginia Housing Development Authority
Commonwealth Mortgage Revenue Bonds,
1,930,000 Virginia Housing Development Authority
Commonwealth Mortgage Revenue Bonds,
Series 1995-B-3, 6.35%, 2016 1,973,425
2,000,000 Virginia Housing Development Authority
Commonwealth Mortgage Revenue Bonds,
Series 1992-A, 7.10%, 2022 2,055,000
2,000,000 Virginia State Public School Authority
Revenue Bonds, Series A, 6.20%, 2013 2,092,500
-----------
12,264,481
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
MUNICIPAL BONDS (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
WASHINGTON (6.0%)
$ 6,405,000 Central Puget Sound, Washington Regional
Transit Authority Sales Tax & Motor
Bonds, 4.75%, 2028 $ 5,228,081
4,000,000 Seattle, Washington Water Systems
Revenue Bonds, 5.375%, 2029 3,600,000
3,500,000 Washington State Motor Vehicle Fuel Tax
General Obligation Unlimited Tax Bonds,
Series 1997-D, 5.375%, 2022 3,241,875
1,000,000 Washington State Motor Vehicle Fuel Tax
General Obligation Unlimited Tax Bonds,
Series C, 5.80%, 2017 1,005,000
------------
13,074,956
------------
WISCONSIN (1.4%)
2,000,000 Wisconsin State General Obligation
Unlimited Tax Bonds, Series 1992-A,
6.30%, 2011 2,057,500
1,000,000 Wisconsin State Transportation Revenue
Bonds, Series A, 5.50%, 2012 1,018,750
------------
3,076,250
------------
TOTAL INVESTMENTS (cost $215,365,327) $212,572,750
============
</TABLE>
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Distribution of investments, as a percentage of total investment in Series
1995-B-3, 6.35%, 2015 1,022,500 securities at value, is as follows:
<TABLE>
<CAPTION>
INDUSTRY PERCENT % MKT. VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
County/City School Districts 6.8% $ 14,357,500
Education 5.9% 12,603,550
Electric Utilities 5.1% 10,763,438
Hospitals 17.4% 36,982,838
Housing 18.5% 39,423,037
Miscellaneous 5.0% 10,673,700
Political Subdivision - Cities/Counties 3.9% 8,360,125
States, Territories and Possessions 9.4% 19,994,812
Transportation 13.9% 29,477,306
Water, Sewer and Combined Utilities 14.1% 29,936,444
-------------
100.0% $ 212,572,750
=============
</TABLE>
2 0 N A T I O N W I D E
<PAGE> 23
[PICTURE OF SMALL AREA
ON U.S. CURRENCY]
NATIONWIDE(R) MUTUAL FUNDS
--------------------------------------------------------------------------------
LONG-TERM U.S. GOVERNMENT
BOND FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Long-Term
U.S. Government Bond Fund (Class D) returned 2.37%(*). The Merrill Lynch
Government Master Index returned 2.30% while the Lehman Brothers Long-Term U.S.
Government Index returned 4.54%. The benchmark index was changed to the Lehman
Index, which includes all U.S. Treasury securities with maturities greater than
10 years, from the Merrill Index on March 1.
The Fund returned a blended performance of the two indices, as the major
theme of the period was restructuring Fund positions in such a way as to
minimize the impact of the gradual lengthening of the Fund to a much longer
average maturity.
The top-performing position in the Fund were U.S. Treasury bonds maturing
in 2019. The worst performance came from Federal National Mortgage Association
(Series #381019). This is a mortgage bond backed by multifamily properties,
which suffered with all mortgage product during the first quarter. While most
positions in this security were eliminated during the quarter, the portfolio
manager was working to obtain better sale prices on the two remaining mortgage
posi- tions in the Fund.
As mentioned, the major change in this Fund was the change to a long-term
index. This change added approximately five years of duration to the Fund, and
the portfolio manager tried to add approximately a year each week during March
to allow current shareholders to adjust to much greater volatility levels. The
work is close to complete, and Fund holdings will more closely match the Lehman
Index when the mortgage positions are sold.
GARY R. HUNT, CFA - PORTFOLIO MANAGER
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $33,455,698
PORTFOLIO COMPOSITION
(Subject to Change)
[PIE CHART]
Repurchase Agreement 5.2%
U.S. Government Obligations 93.9%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(For Periods Ended April 30, 2000)
<TABLE>
<CAPTION>
Class A(*) Class B(*) Class D
Years w/o SC(**) w/SC(1) w/o SC(**) w/SC(2) w/o SC(**) w/SC(1)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 0.95% -3.57% 0.42% -4.29% 1.18% -3.35%
--------------------------------------------------------------------------------
5 6.64% 5.66% 6.37% 6.06% 6.73% 5.76%
--------------------------------------------------------------------------------
10 8.04% 7.55% 7.91% 7.91% 8.09% 7.60%
--------------------------------------------------------------------------------
</TABLE>
All figures showing the effect of a sales charge reflect the maximum charge
possible, because it has the most dramatic effect on performance data.
(*) These returns include performance achieved prior to the creation of the
class (5/11/98), excluding the effect of the 0.25% (Class A) or 0.85%
(Class B) 12b-1 fee. Had Class A or B been in existence for all of the time
periods presented, the Fund's performance for such classes would have been
lower as a result of the additional expenses.
(**) These returns do not reflect the effects of a sales charge.
1 A 4.50% front-end sales charge was deducted.
2 A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC
declines to 0% after 6 years.
+ See legend on inside back cover.
Investment return and principal value will fluctuate, and when redeemed, shares
may be worth more or less than original cost. Past performance is no guarantee
of future results.
N A T I O N W I D E 2 1
<PAGE> 24
STATEMENT OF INVESTMENTS NATIONWIDE(R) LONG-TERM GOVERNMENT BOND FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
U.S. GOVERNMENT SPONSORED AND AGENCY
OBLIGATIONS (93.9%)
--------------------------------------------------------------------------------
<S> <C> <C>
GOVERNMENT - MORTGAGE-BACKED (10.9%)
$ 1,960,280 FNMA Pool 380311, 6.30%, 05/01/13 1,816,563
1,972,955 FNMA Pool 381019, 6.27%, 12/01/08 1,845,743
----------
3,662,306
----------
--------------------------------------------------------------------------------
GOVERNMENT - AGENCY (19.6%)
1,150,000 FHLB, 6.37%, 12/04/17 1,038,023
5,000,000 Resolution Funding STRIPS, 0.00%, 07/15/13 2,080,795
12,000,000 Resolution Funding STRIPS, 0.00%, 10/15/19 3,443,868
----------
6,562,686
----------
--------------------------------------------------------------------------------
GOVERNMENT-TREASURY (63.40%)
10,000,000 U.S. Treasury Note, 11.25%, 02/15/15 14,628,131
5,500,000 U.S. Treasury Bond, 8.125%, 08/15/19 6,605,159
----------
21,233,290
----------
C
TOTAL U.S. GOVERNMENT SPONSORED AND
AGENCY OBLIGATIONS (cost $30,838,471) 31,458,282
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
REPURCHASE AGREEMENT (5.2%)
--------------------------------------------------------------------------------
<S> <C> <C>
$1,723,000 Fifth Third Bank 5.78%, 05/01/00,
Collateralized by $845,256 FNMA Pool #303741,
7.00%, 02/01/11 and $999,000 FNMA Pool
#4060067, 6.50%, 08/01/24, market value $1,723,000
------------
(cost $1,723,000)
TOTAL INVESTMENTS (cost $33,172,092) $33,181,282
============
</TABLE>
--------------------------------------------------------------------------------
The abbreviations in the above statement stand for the following:
FHLB Federal Home Loan Bank
FNMA Federal National Mortgage Corp.
STRIPS Separate Trading of Registered Interest and
Principal Securities
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2 2 N A T I O N W I D E
<PAGE> 25
[PICTURE OF SMALL AREA
ON U.S. CURRENCY]
Nationwide(R) Mutual Funds
--------------------------------------------------------------------------------
[ART BACKGROUND]
INTERMEDIATE U.S. GOVERNMENT
BOND FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Intermediate
U.S. Government Bond Fund (Class D) returned 1.64%(*) vs. a return of 2.30% for
the Merrill Lynch Government Master Index, the benchmark index.
The Fund underperformed the benchmark due to the poor performance of U.S.
government agency notes and mortgage-backed bonds during the period. The
available yields on these instruments widened over comparable U.S. Treasury
securities considerably, and these higher yields may add to performance in the
coming periods. Also, the Treasury yield-curve inversion hurt performance. The
Federal Reserve continued to raise short-term rates while the Treasury bought
back longer-term debt due to the budget surplus, and this situation resulted in
better performance for securities with maturities of 10 years and longer, where
the Fund was underweighted.
The top-performing position in the Fund was U.S. Treasury bonds maturing in
February 2019. Federal Home Loan Mortgage Corp. (Series 1560-PN) was the worst
performing position in the Fund. This position was impacted by the poor
performance of mortgage securities and is the longest average life mortgage
position in the Fund. The largest position in the Fund is a block of callable
U.S. Treasury securities maturing in 2013, a position that performed well during
the period.
Major portfolio changes during the quarter included increasing Treasury
positions in the long end of the curve. I expect the budget surplus to be larger
than expected, leading to increased Treasury buy- backs. Although the yield on
these bonds is considerably less than intermediate notes, they would outperform
intermediates under this scenario. Also, I swapped out of non-callable into deep
discount callable Agencies in the short end of the yield curve. The additional
yield on these callable agencies should allow for better returns as the Federal
Reserve continues to raise rates.
When I sense the Federal Reserve is nearing the end of this tight ening
cycle I intend to sell the longer Treasury bonds in favor of inter mediate
Treasury and Agency notes. These changes should allow the Fund to perform well
in an environment of stable or falling interest rates.
GARY R. HUNT, CFA - PORTFOLIO MANAGER
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $104,942,358
PORTFOLIO COMPOSITION
(Subject to Change)
[PIE CHART]
Repurchase Agreement 13.3%
U.S. Government Obligations 86.7%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(For Periods Ended April 30, 2000)
<TABLE>
<CAPTION>
CLASS A(*) CLASS B(*) CLASS D
YEARS W/O SC(**) W/SC(1) W/O SC(**) W/SC(2) W/O SC(**) W/SC(1)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 0.88% -3.65% 0.26% -4.51% 1.01% -3.52%
--------------------------------------------------------------------------------
5 6.29% 5.32% 6.03% 5.71% 6.38% 5.41%
--------------------------------------------------------------------------------
Life 5.94% 5.35% 5.79% 5.79% 6.00% 5.41%
--------------------------------------------------------------------------------
</TABLE>
Life of the Fund is since 2/10/92.
All figures showing the effect of a sales charge reflect the maximum charge
possible, because it has the most dramatic effect on performance data.
(*) These returns include performance achieved prior to the creation of the
class (5/11/98), excluding the effect of the 0.25% (Class A) or 0.85%
(Class B) 12b-1 fee. Had Class A or B been in existence for all of the
time periods presented, the Fund's performance for such classes would have
been lower as a result of the additional expenses.
(**) These returns do not reflect the effects of a sales charge.
1 A 4.50% front-end sales charge was deducted.
2 A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC
declines to 0% after 6 years. + See legend on inside back cover.
Investment return and principal value will fluctuate, and when redeemed, shares
may be worth more or less than original cost. Past performance is no guarantee
of future results.
N A T I O N W I D E 2 3
<PAGE> 26
STATEMENT OF INVESTMENTS NATIONWIDE(R) INTERMEDIATE U.S. GOVERNMENT BOND FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
U.S. GOVERNMENT SPONSORED AND AGENCY
OBLIGATIONS (86.7%)
--------------------------------------------------------------------------------
<S> <C> <C>
GOVERNMENT - AGENCY (12.1%)
$ 3,250,000 FHLB, 5.54%, 04/21/03 $3,102,043
3,000,000 FHLB, 5.19%, 10/20/03 2,811,207
1,900,000 FHLB, 5.425%, 01/29/04 1,783,994
1,000,000 Federal Farm Credit, 7.16%, 05/15/06 994,551
2,000,000 FHLB, 6.945%, 03/26/07 1,957,326
2,000,000 FHLB, 6.53%, 07/23/07 1,909,990
7,500,000 Resolution Funding STRIPS, 0.00%, 10/15/13 3,072,368
10,000,000 Resolution Funding STRIPS, 0.00%, 10/15/19 2,869,890
----------
TOTAL GOVERNMENT - AGENCY (cost $ 19,451,786 ) 18,501,369
----------
--------------------------------------------------------------------------------
GOVERNMENT - SPONSORED MORTGAGE-BACKED OBLIGATIONS (37.8%)
3,000,000 FHLMC, 5.98%, 12/08/05 2,820,054
2,945,660 FHLMC REMIC, Series 1462-PT,
7.50%, 01/15/03 2,939,966
3,000,000 FHLMC REMIC, Series 1313-G,
7.25%, 06/15/07 2,989,170
1,000,000 FHLMC REMIC, Series 1512-HB,
6.50%, 02/15/08 957,650
1,972,955 FNMA Pool 381019, 6.27%,
12/01/08 1,845,743
2,000,000 FHLMC REMIC, Series 1560-PN,
7.00%, 12/15/12 1,927,140
5,000,000 FHLMC REMIC, Series 1688-J,
6.00%, 12/15/13 4,701,950
5,000,000 FHLMC REMIC, Series 2134-PT,
6.00%, 07/15/14 4,827,250
931,768 FNMA, Pool #73341, 6.31%, 01/01/06 876,060
979,764 FNMA, Pool #380488, 6.10%, 07/01/08 896,613
4,912,878 FNMA, Pool #460221, 6.32%, 04/01/14 4,634,621
739,393 FNMA REMIC, Series 92-126, 8.00%,
07/25/02 744,724
2,500,000 FNMA REMIC, Series 67-PL, 6.50%, 10/18/12 2,351,987
142,525 FNMA REMIC, Series 25-B, 9.25%, 10/25/18 148,294
822,626 FNMA REMIC, Series 7-B, 8.50%, 01/25/20 835,458
4,871,567 FNMA REMIC, Series G92-42 Z,
7.00%, 07/25/22 4,679,481
----------
TOTAL GOVERNMENT - MORTGAGE-BACKED OBLIGATIONS
(cost $ 38,999,479 ) 38,176,161
----------
GOVERNMENT TREASURY (32.3%)
15,000,000 U.S. Treasury Bond, 12.0%, 08/15/13 20,057,820
6,000,000 U.S. Treasury Bond, 8.875%, 02/15/19 7,668,750
4,000,000 U.S. Treasury Note, 11.25%, 02/15/15 5,851,252
----------
TOTAL GOVERNMENT TREASURY (cost $ 33,014,589 ) 33,577,822
----------
TOTAL U.S. GOVERNMENT SPONSORED AND AGENCY OBLIGATIONS
(cost $91,465,854) 90,255,352
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
REPURCHASE AGREEMENT (13.3%)
--------------------------------------------------------------------------------
<S> <C> <C>
$13,830,000 Warburg Dillon Read 5.70%,05/01/00,
Collateralized by $11,377,000
U.S. Treasury Bond, 8.00%, 11/15/21,
market value $14,107,480
(cost $13,830,000) $13,830,000
-------------
TOTAL INVESTMENTS (cost $105,295,854) ($104,085,352)
=============
</TABLE>
--------------------------------------------------------------------------------
The abbreviations in the above statement stand for the following:
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corp.
FNMA Federal National Mortgage Corp.
REMIC Real Estate Mortgage Investment Conduit
STRIPS Separate Trading of Registered Interest and
Principal Securities
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2 4 N A T I O N W I D E
<PAGE> 27
NATIONWIDE (R) MUTUAL FUNDS
--------------------------------------------------------------------------------
MONEY MARKET FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Nationwide Money Market
Fund (Prime shares) returned 2.64%(*) vs. a return of 2.45% for the Consumer
Price Index, the benchmark index.
The Federal Open Market Committee increased the Federal Funds level three
times since November 1, 1999. On November 16, 1999, the Federal Funds rate
increased to 5.50% from 5.25%. On February 2, 2000, the Federal Funds rate
increased to 5.75%, and Fed Funds rose to 6% on March 21, 2000. At the February
2 meeting the Committee switched from a neutral bias to an inflationary bias on
the Federal Funds rate.
Because of the expectations for increasing rates of return, the average
maturity of the Fund remained around 30 days. This allowed the Fund to take
advantage of higher returns and had a significant impact on performance.
Asset-backed securities have been a good performer for the Fund. These
issues generally provide from two to five basis points in additional return. The
Fund's research department does a thorough analysis on each issuer approved for
investment and continuously monitors the creditworthiness of all creditors.
Government and Agency securities generally provide modestly lower returns,
but approximately 4% to 5% of the Fund was invested in this asset class for
diversification and liquidity.
PATRICIA A. MYNSTER - PORTFOLIO MANAGER
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $1,373,104,111
PORTFOLIO COMPOSITION
(Subject to Change)
[PIE CHART]
U.S. Government Obligations 4.8%
Corporate Notes 0.4%
Commercial Paper 94.4%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN(+)
(For Periods Ended April 30, 2000)
<TABLE>
<CAPTION>
YEARS PRIME SHARES SERVICE CLASS(*),(**)
--------------------------------------------------------------------------------
<S> <C> <C>
1 5.00% 4.90%
--------------------------------------------------------------------------------
5 5.06% 5.03%
--------------------------------------------------------------------------------
10 4.75% 4.74%
--------------------------------------------------------------------------------
</TABLE>
There is no sales charge on the shares of the Money Market Fund. Past
performance is no guarantee of future results.
(*) Service Shares were first offered to the public on January 4, 1999. These
shares were formerly known as Class R shares.
(+) See legend on inside back cover.
(**) Performance includes that of the Prime Shares, which was achieved prior
to the creation of all of the shares on January 4, 1999. Had this class
been in existence for the time period presented, the performance would
have been lower as a result of additional expenses.
An investment in the Money Market Fund is neither insured nor guaranteed by the
FDIC or any other government agency. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose money by
investing in the Fund.
N A T I O N W I D E 2 5
<PAGE> 28
SCHEDULE OF PORTFOLIO INVESTMENTS NATIONWIDE(R) MONEY MARKET FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
CANADIAN GOVERNMENT OBLIGATIONS (0.0%)
--------------------------------------------------------------------------------
<S> <C> <C>
BRITISH COLUMBIA (PROVINCE) (0.0%)
$ 254,000 6.05%, 06/01/00 $ 252,677
-----------
TOTAL CANADIAN GOVERNMENT OBLIGATIONS (COST $252,677) 252,677
-----------
CERTIFICATES OF DEPOSIT (0.4%)
--------------------------------------------------------------------------------
5,000,000 J.P. Morgan & Co 6.80%, 04/16/01 5,000,000
-----------
TOTAL CERTIFICATES OF DEPOSIT (cost $5,000,000) 5,000,000
-----------
COMMERCIAL PAPER (94.4%)
--------------------------------------------------------------------------------
ASSET BACKED SECURITIES (8.2%)
Delaware Funding
(Private Placement*) (3.6%)
10,000,000 6.05%, 06/08/00 9,936,139
20,000,000 6.06%, 06/13/00 19,855,233
10,000,000 6.08%, 06/16/00 9,922,311
10,000,000 6.10%, 06/21/00 9,913,583
-----------
49,627,266
-----------
Falcon Asset Securitization Corp.
(Private Placement*) (1.7%)
8,000,000 6.06%, 05/02/00 7,998,653
5,000,000 6.03%, 05/24/00 4,980,738
10,000,000 6.03%, 05/25/00 9,959,800
-----------
22,939,191
-----------
Preferred Receivables Funding
(Private Placement*) (2.2%)
10,000,000 6.04%, 05/30/00 9,951,264
10,000,000 6.05%, 05/31/00 9,949,583
2,600,000 6.13%, 06/01/00 2,586,276
8,000,000 6.16%, 07/20/00 7,890,489
-----------
30,377,612
-----------
Variable Funding Capital Corp.
(Private Placement*) (0.7%)
10,000,000 6.06%, 05/23/00 9,962,967
-----------
112,907,036
-----------
--------------------------------------------------------------------------------
AUTO/FINANCE (10.7%)
American Honda Finance Corp. (3.8%)
22,366,000 5.87-5.89%, 05/01/00 22,366,000
5,000,000 5.90%, 05/15/00 4,988,528
13,388,000 6.10%, 06/08/00 13,301,796
11,500,000 6.03%, 06/13/00 11,417,171
-----------
52,073,495
-----------
Ford Motor Credit Co. (3.0%)
20,000,000 5.97%, 05/05/00 19,986,734
20,000,000 6.00%, 05/12/00 19,963,333
599,000 5.98%, 05/17/00 597,408
-----------
40,547,475
-----------
General Motors Acceptance Corp. (3.9%)
10,000,000 6.03%, 05/24/00 9,961,475
20,000,000 5.98%, 05/30/00 19,903,656
20,000,000 6.07%, 05/31/00 19,898,833
5,000,000 6.14%, 07/13/00 4,937,747
-----------
54,701,711
-----------
147,322,681
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
COMMERCIAL PAPER (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
BANKS (11.2%)
Citicorp (3.2%)
$15,000,000 6.02%, 05/02/00 $ 14,997,492
30,000,000 6.15%, 06/02/00 29,836,711
-----------
44,834,203
-----------
First Union Corp. (0.7%)
10,000,000 6.03%, 06/14/00 9,926,300
-----------
National City Credit Corp. (2.9%)
25,000,000 6.02%, 05/11/00 24,958,194
15,000,000 6.02-6.03%, 05/26/00 14,937,292
-----------
39,895,486
-----------
State Street Corp. (1.5%)
20,000,000 6.01%, 05/25/00 19,919,867
-----------
Wells Fargo & Co. (2.9%)
40,000,000 6.06%, 05/30/00 39,804,733
-----------
154,380,589
-----------
--------------------------------------------------------------------------------
BROKER/DEALERS (10.0%)
Bear Stearns Cos., Inc. (2.6%)
5,000,000 5.94%, 05/03/00 4,998,364
5,000,000 5.93%, 05/15/00 4,988,469
5,422,000 6.03%, 06/09/00 5,386,581
5,000,000 6.12%, 06/12/00 4,964,300
10,000,000 6.14%, 07/06/00 9,887,433
5,000,000 6.2425% Variable, 07/26/00(**) 5,000,000
-----------
35,225,147
-----------
Goldman Sachs (2.0%)
27,388,000 5.99%, 05/26/00 27,274,074
-----------
Merrill Lynch & Co. (2.6%)
20,000,000 6.01%, 05/10/00 19,969,950
986,000 6.06%, 06/19/00 977,867
15,000,000 6.05%, 06/23/00 14,866,396
-----------
35,814,213
-----------
Salomon Smith Barney Holdings (2.8%)
10,000,000 5.97%, 05/01/00 10,000,000
28,656,000 6.06%, 06/09/00 28,467,873
38,467,873
-----------
136,781,307
-----------
--------------------------------------------------------------------------------
CAPTIVE FINANCING (2.9%)
Prudential Funding Corp. (2.9%)
40,000,000 6.04%, 06/12/00 39,718,133
-----------
--------------------------------------------------------------------------------
CHEMICALS (0.7%)
PPG Industries (0.7%)
9,374,000 6.06%, 05/31/00 9,326,896
-----------
--------------------------------------------------------------------------------
CONSUMER PRODUCTS (1.9%)
Clorox Co. (1.9%)
2,000,000 6.10%, 06/28/00 1,980,344
25,000,000 6.08%, 07/06/00 24,721,334
-----------
26,701,678
-----------
</TABLE>
2 6 N A T I O N W I D E
<PAGE> 29
SCHEDULE OF PORTFOLIO INVESTMENTS NATIONWIDE(R) MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
COMMERCIAL PAPER (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER SALES FINANCE (13.6%)
American Express Credit Corp. (3.6%)
$40,204,000 5.99%, 05/05/00 $ 40,177,197
10,000,000 5.99%, 05/16/00 9,975,042
-----------
50,152,239
-----------
American General Finance Corp. (3.8%)
8,645,000 6.03%, 05/08/00 8,634,864
30,000,000 6.05%, 05/09/00 29,959,666
10,000,000 6.04%, 06/13/00 9,927,856
5,000,000 6.05%, 07/07/00 4,943,701
-----------
53,466,087
-----------
Associates First Capital BV (2.9%)
10,000,000 6.06%, 05/31/00 9,949,500
30,000,000 6.04%, 06/15/00 29,773,500
-----------
39,723,000
-----------
Norwest Financial, Inc. (3.3%)
40,000,000 6.00%, 05/10/00 39,940,000
5,000,000 6.05%, 06/01/00 4,973,951
-----------
44,913,951
-----------
188,255,277
-----------
--------------------------------------------------------------------------------
DIVERSIFIED FINANCE (11.3%)
CIT Group, Inc. (2.8%)
14,000,000 6.02%, 05/15/00 13,967,224
25,000,000 6.07%, 06/01/00 24,869,327
-----------
38,836,551
-----------
General Electric Capital Corp. (3.4%)
10,000,000 6.05%, 06/05/00 9,941,181
13,139,000 6.08%, 06/09/00 13,052,458
15,000,000 6.04%, 06/12/00 14,894,299
112,000 6.08%, 06/30/00 110,865
10,000,000 6.11%, 07/03/00 9,893,075
-----------
47,891,878
-----------
Heller Financial, Inc. (3.3%)
20,000,000 6.13%, 05/04/00 19,989,783
25,000,000 6.12%, 06/05/00 24,851,250
-----------
44,841,033
-----------
Household Finance Corp. (1.8%)
15,000,000 6.03%, 06/05/00 14,912,062
10,000,000 6.05%, 06/14/00 9,926,056
-----------
24,838,118
-----------
156,407,580
-----------
--------------------------------------------------------------------------------
FINANCIAL SERVICES/UTILITIES (1.9%)
National Rural Utilities Cooperative
Finance Corp. (1.9%)
10,800,000 6.05%, 06/05/00 10,736,475
15,000,000 6.08%, 06/16/00 14,883,467
-----------
25,619,942
-----------
--------------------------------------------------------------------------------
FOOD & BEVERAGE (0.6%)
Best Foods, Inc.
(Private Placement*) (0.6%)
7,808,000 6.12%, 07/11/00 7,713,757
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
COMMERCIAL PAPER (CONTINUED)
--------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE (10.1%)
Marsh & McClennan
(Private Placement*) (1.3%)
$ 5,000,000 6.00%, 05/01/00 $ 5,000,000
13,500,000 6.00%, 05/08/00 13,484,250
-------------
18,484,250
-------------
Marsh USA, Inc.
(Private Placement*) (3.6%)
10,000,000 6.05%, 06/06/00 9,939,500
39,510,000 6.15%, 07/19/00 38,976,779
-------------
48,916,279
-------------
Metlife Funding, Inc. (3.6%)
17,000,000 6.00%, 05/04/00 16,991,500
32,000,000 6.06%, 05/23/00 31,882,276
-------------
48,873,776
-------------
Old Republic Capital Corp.
(Private Placement*) (1.6%)
6,436,000 5.98%, 05/09/00 6,427,447
16,000,000 6.11%, 06/14/00 15,880,516
-------------
22,307,963
-------------
138,582,268
-------------
--------------------------------------------------------------------------------
LEASE/RENTAL (2.9%)
Hertz Corp. (2.9%)
40,000,000 6.02%, 05/22/00 39,859,533
-------------
--------------------------------------------------------------------------------
OIL & GAS/EQUIPMENT & SERVICES (1.5%)
Chevron Transport Corp. (1.5%)
10,000,000 6.06%, 05/02/00 9,998,317
10,000,000 5.88%, 05/04/00 9,995,100
-------------
19,993,417
-------------
--------------------------------------------------------------------------------
PACKAGING/CONTAINERS (1.1%)
Bemis Co., Inc. (1.1%):
15,267,000 6.01%, 05/03/00 15,261,903
-------------
--------------------------------------------------------------------------------
PRINTING & PUBLISHING (1.8%)
E.W. Scripps Co. (1.8%)
14,259,000 6.10%, 06/14/00 14,152,691
10,000,000 6.06%, 06/19/00 9,917,517
-------------
24,070,208
-------------
--------------------------------------------------------------------------------
SPECIALTY FINANCE (2.5%)
Sigma Finance Corp.
(Private Placement*) (2.5%)
35,000,000 6.07%, 05/30/00 34,828,860
-------------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (1.5%)
MCI World Com, Inc. (1.5%)
20,000,000 6.10%, 05/08/00 19,976,356
-------------
TOTAL COMMERCIAL PAPER (cost $1,297,707,421) 1,297,707,421
-------------
</TABLE>
N A T I O N W I D E 2 7
<PAGE> 30
SCHEDULE OF PORTFOLIO INVESTMENTS NATIONWIDE(R) MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
CORPORATE NOTES (0.4%)
--------------------------------------------------------------------------------
<S> <C> <C>
J.P. MORGAN & CO. (0.4%)
$ 5,000,000 5.41% Variable, 07/20/00 $ 5,000,000
--------------
TOTAL CORPORATE NOTES (cost $5,000,000) $ 5,000,000
--------------
U.S. GOVERNMENT SPONSORED AND AGENCY
OBLIGATIONS (4.8%)
--------------------------------------------------------------------------------
GOVERNMENT - AGENCY (4.8%)
FHLB (3.9%)
12,489,000 5.88%, 05/01/00 12,489,000
10,000,000 5.87%, 05/10/00 9,985,325
25,000,000 5.875%, 05/12/00 24,955,121
6,500,000 5.92%, 05/24/00 6,475,416
--------------
53,904,862
--------------
FHLMC (0.9%)
2,370,000 5.89%, 05/09/00 2,366,898
10,000,000 6.30%, 03/29/01 9,419,000
--------------
11,785,898
--------------
TOTAL U.S. GOVERNMENT SPONSORED AND
AGENCY OBLIGATIONS (cost $65,690,760) 65,690,760
--------------
TOTAL INVESTMENTS $1,373,650,858
==============
</TABLE>
The abbreviations in the above statement stand for the following:
FHLB Federal Home Loan Bank System
FHLMC Federal Home Loan Mortgage Corp.
(**)VARIABLE RATE SECURITY. THE RATE REFLECTED IS THE RATE IN EFFECT ON
04/30/00.
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
(*)RESTRICTED SECURITIES ISSUED PURSUANT TO SECTION 4(2) OF THE SECURITIES ACT
OF 1933. THESE SECURITIES WERE DEEMED LIQUID PURSUANT TO PROCEDURES APPROVED BY
THE BOARD OF TRUSTEES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2 8 N A T I O N W I D E
<PAGE> 31
[PICTURE OF
SMALL AREA ON
U.S. CURRENCY]
STATEMENTS OF ASSETS AND LIABILITIES - THE STOCK FUNDS
-------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
NATIONWIDE
MID CAP NATIONWIDE NATIONWIDE
GROWTH FUND GROWTH FUND FUND
===========================================================================================================================
<S> <C> <C> <C>
ASSETS
Investments in securities, unaffiliated, at value $ 19,851,584 $ 983,054,316 $ 2,132,512,210
(cost $16,724,117, $842,832,631, $1,563,023,080)
Investments in short-term securities, at value
(cost $13,645,000, $106,350,758) -- 13,642,707 106,340,131
Cash -- 1,363 756
Receivable for investment securities sold 474,512 28,739,140 13,886,195
Receivable for Fund shares sold 3,693 -- --
Receivable from adviser 1,638 -- --
Interest and dividends receivable 225 218,600 2,351,671
Prepaid and other assets 3,428 29,356 5,130
--------------- --------------- ---------------
Total assets 20,335,080 1,025,685,482 2,255,096,093
--------------- --------------- ---------------
LIABILITIES
Cash overdrafts 237,099
Payable for investment securities purchased 417,146 44,712,910 8,129,727
Payable for capital shares redeemed (462) -- 836
Accrued expenses and other payables:
Investment management fees 9,094 463,697 1,032,177
Fund administration fees 1,061 43,911 85,863
Transfer agent fees 208 -- 116,582
Distribution fees 1,820 8,441 49,795
Administrative servicing fees -- 37,219 95,637
Other 6,584 294,832 272,478
--------------- --------------- ---------------
Total liabilities 672,550 45,561,010 9,783,095
--------------- --------------- ---------------
NET ASSETS $ 19,662,530 $ 980,124,472 $ 2,245,312,998
=============== =============== ===============
NET ASSETS:
Capital $ 14,188,763 $ 625,078,265 $ 1,289,627,526
Undistributed (distributions in excess of)
net investment income (34,136) (889,450) 1,198,079
Net unrealized appreciation from investments 3,127,467 140,219,391 569,478,503
Accumulated undistributed net realized gains
(losses) from investment transactions 2,380,436 215,716,266 385,008,890
--------------- --------------- ---------------
NET ASSETS $ 19,662,530 $ 980,124,472 $ 2,245,312,998
=============== =============== ===============
NET ASSETS:
Class A $ 2,342,682 $ 9,584,567 $ 57,237,842
Class B 1,873,109 8,208,079 46,866,684
Class D 15,446,739 962,331,826 2,141,208,472
--------------- --------------- ---------------
Total $ 19,662,530 $ 980,124,472 $ 2,245,312,998
=============== =============== ===============
SHARES OUTSTANDING (unlimited number of
shares authorized):
Class A 102,913 593,786 1,889,379
Class B 83,517 515,687 1,560,834
Class D 677,914 59,560,567 70,956,129
--------------- --------------- ---------------
Total 864,344 60,670,040 74,406,342
=============== =============== ===============
NET ASSET VALUE PER SHARE:
Class A $ 22.76 $ 16.14 $ 30.29
Class B $ 22.43 $ 15.92 $ 30.03
Class D $ 22.79 $ 16.16 $ 30.18
OFFERING PRICE (100%/(100%-Maximum Sales Charge) of net asset
value adjusted to nearest cent per share:(*)
Class A $ 24.15 $ 17.13 $ 32.14
Class B(**) $ 22.43 $ 15.92 $ 30.03
Class D $ 23.86 $ 16.92 $ 31.60
--------------- --------------- ---------------
Maximum sales charge - Class A 5.75% 5.75% 5.75%
=============== =============== ===============
Maximum sales charge - Class D 4.50% 4.50% 4.50%
=============== =============== ===============
===========================================================================================================================
</TABLE>
(*) Class A and D Shares include a front-end sales charge.
(**) For Class B Shares, which are subject to a CDSC, the redemption price
per share varies by the length of time shares are held.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 2 9
<PAGE> 32
STATEMENTS OF ASSETS AND LIABILITIES - THE BOND FUNDS
-------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
NATIONWIDE NATIONWIDE
NATIONWIDE LONG-TERM INTERMEDIATE
NATIONWIDE TAX-FREE U.S. GOVERNMENT U.S. GOVERNMENT
BOND FUND INCOME FUND BOND FUND BOND FUND
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, unaffiliated at value
(cost $115,810,515, $214,524,764, $31,449,092,
$91,465,854) $ 109,703,564 $ 212,572,750 $ 31,458,282 $ 90,255,352
Investments in short-term securities, at value
(cost $5,736,000) 5,735,664 - - -
Repurchase agreements (cost $1,723,000, $13,830,000) - - 1,723,000 13,830,000
Cash - 518,840 - -
Receivable for investment securities sold 1,648,508 - - 443
Interest and dividends receivable 2,115,773 4,018,972 377,246 980,189
Prepaid and other assets 33,040 11,882 10,943 12,549
------------- ------------- ------------- -------------
Total assets 119,236,549 217,122,444 33,569,471 105,078,533
------------- ------------- ------------- -------------
LIABILITIES
Cash overdrafts 80,564 - 59,197 44,134
Payable for investment securities purchased 1,661,525 - - -
Accrued expenses and other payables:
Investment management fees 48,626 89,745 13,982 42,948
Fund administration fees 6,808 12,565 1,958 6,013
Transfer agent fees - - - 6,152
Distribution fees 1,862 3,043 1,888 11,689
Administrative servicing fees 2,627 - - 8,626
Other 90,154 75,272 36,748 16,613
------------- ------------- ------------- -------------
Total liabilities 1,892,166 180,625 113,773 136,175
------------- ------------- ------------- -------------
NET ASSETS $ 117,344,383 $ 216,941,819 $ 33,455,698 $ 104,942,358
============= ============= ============= =============
NET ASSETS:
Capital $ 132,711,736 $ 220,369,993 $ 34,178,779 $ 107,846,423
Undistributed (distributions in excess of) net
investment income 76,370 (23,503) 2,262 3,764
Net unrealized appreciation (depreciation)
from investments (6,107,287) (1,952,013) 9,190 (1,210,502)
Accumulated undistributed (distributions in
excess of) net realized gains (losses) from
investment transactions (9,336,436) (1,452,658) (734,533) (1,697,327)
------------- ------------- ------------- -------------
NET ASSETS $ 117,344,383 $ 216,941,819 $ 33,455,698 $ 104,942,358
============= ============= ============= =============
NET ASSETS:
Class A $ 3,199,030 $ 2,284,880 $ 3,321,442 $ 53,387,082
Class B 1,746,166 4,036,015 1,713,469 1,137,257
Class D 112,399,187 210,620,924 28,420,787 50,418,019
------------- ------------- ------------- -------------
Total $ 117,344,383 $ 216,941,819 $ 33,455,698 $ 104,942,358
============= ============= ============= =============
SHARES OUTSTANDING (unlimited number
of shares authorized):
Class A 364,959 233,434 311,671 5,482,432
Class B 199,122 412,595 160,750 116,777
Class D 12,803,707 21,536,851 2,665,544 5,175,140
------------- ------------- ------------- -------------
Total 13,367,788 22,182,880 3,137,966 10,774,349
============= ============= ============= =============
NET ASSET VALUE PER SHARE:
Class A $ 8.77 $ 9.79 $ 10.66 $ 9.74
Class B $ 8.77 $ 9.78 $ 10.66 $ 9.74
Class D $ 8.78 $ 9.78 $ 10.66 $ 9.74
OFFERING PRICE (100%/(100%-Maximum Sales
Charge) of net asset value adjusted to
nearest cent) per share:(*)
Class A $ 9.18 $ 10.25 $ 11.16 $ 10.20
Class B(**) $ 8.77 $ 9.78 $ 10.66 $ 9.74
Class D $ 9.19 $ 10.24 $ 11.16 $ 10.20
------------- ------------- ------------- -------------
Maximum sales charge - Class A and D 4.50% 4.50% 4.50% 4.50%
============= ============= ============= =============
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(*) Class A and D Shares include a front-end sales charge.
(**) For Class B Shares, which are subject to CDSC, the redemption price per
share varies by length of time shares are held.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 N A T I O N W I D E
<PAGE> 33
[PICTURE OF
SMALL AREA ON
U.S. CURRENCY]
STATEMENT OF ASSETS AND LIABILITIES - THE MONEY MARKET FUND
-------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
NATIONWIDE
MONEY MARKET
FUND
========================================================================================
<S> <C>
ASSETS
Investments in short-term securities, at value (cost $1,373,650,858) $ 1,373,650,858
Cash 276,936
Interest and dividends receivable 60,621
Prepaid and other assets 149,900
---------------
Total assets 1,374,138,315
---------------
LIABILITIES
Accrued expenses and other payables:
Investment management fees 454,373
Fund administration fees 58,398
Transfer agent fees 161,069
Distribution fees 76,770
Administrative servicing fees 136,399
Other 147,195
---------------
Total liabilities 1,034,204
---------------
NET ASSETS $ 1,373,104,111
===============
NET ASSETS:
Capital $ 1,372,891,196
Undistributed net investment income 222,273
Accumulated (distributions in excess of) net realized
gains (losses) from investment transaction (9,358)
---------------
NET ASSETS $ 1,373,104,111
===============
NET ASSETS:
Service Class (a) $ 150,596,974
Prime Class
(1,222,507,137)
---------------
Total $ 1,373,104,111
===============
SHARES OUTSTANDING (unlimited number of shares authorized):
Service Class (a) 150,598,253
Prime Class (1,222,534,586)
---------------
Total 1,373,132,839
===============
NET ASSET VALUE AND OFFERING PRICE PER SHARE:(*)
Service Class (a) $ 1.00
Prime Class $ 1.00
----------------------------------------------------------------------------------------
</TABLE>
(*) Service Class and Prime Shares are not subject to any sales charge.
(a) Formerly known as Class R.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 31
<PAGE> 34
STATEMENTS OF OPERATIONS - THE STOCK FUNDS
--------------------------------------------------------------------------------
(UNAUDITED) SIX-MONTH PERIOD ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
NATIONWIDE
MID CAP NATIONWIDE NATIONWIDE
GROWTH FUND GROWTH FUND FUND
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 28,722 $ 783,389 $ 1,525,885
Dividend income 22,982 2,599,262 17,243,354
------------- ------------- -------------
Total income 51,704 3,382,651 18,769,239
------------- ------------- -------------
-----------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management fees 46,318 2,959,841 6,470,766
Fund administration fees 5,404 278,175 536,865
Custodian fees 1,854 12,754 26,713
Distribution fees 8,792 47,487 294,311
Administrative servicing fees -- 242,220 627,023
Professional fees 2,527 16,698 38,424
Trustees' fees and expenses 100 8,463 17,105
Transfer agent fees 15,446 504,025 941,214
Registration and filing fees 16,080 23,505 39,574
Shareholders' reports 4,202 129,705 211,702
Insurance 71 3,312 4,140
Other 1,477 24,286 3,287
------------- ------------- -------------
Total expenses before waived or reimbursed
expenses 102,271 4,250,471 9,211,124
Expenses waived or reimbursed (16,459) -- --
------------- ------------- -------------
Net expenses 85,812 4,250,471 9,211,124
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) $ (34,108) $ (867,820) $ 9,558,115
============= ============= =============
-----------------------------------------------------------------------------------------------------------------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains from investment transactions $ 2,380,432 $ 215,716,267 $ 385,147,727
Net change in unrealized appreciation
(depreciation) from investments 317,504 (206,010,997) (420,231,509)
------------- ------------- -------------
Net realized/unrealized gains (losses) from investments 2,697,936 9,705,270 (35,065,782)
------------- ------------- -------------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,663,828 $ 8,837,450 $ (25,507,667)
============= ============= =============
-----------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 N A T I O N W I D E
<PAGE> 35
[PICTURE OF
SMALL AREA ON
U.S. CURRENCY]
STATEMENTS OF OPERATIONS - THE BOND FUNDS
(UNAUDITED) SIX-MONTH PERIOD ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
NATIONWIDE NATIONWIDE
NATIONWIDE LONG-TERM INTERMEDIATE
NATIONWIDE TAX-FREE U.S. GOVERNMENT U.S. GOVERNMENT
BOND FUND INCOME FUND BOND FUND BOND FUND
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 4,500,259 $ 6,764,203 $ 1,119,600 $ 3,448,090
Dividend income 7,338 -- -- 14,905
----------- ----------- ----------- -----------
Total income 4,507,597 6,764,203 1,119,600 3,462,995
----------- ----------- ----------- -----------
----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management fees 307,686 556,914 85,171 259,123
Fund administration fees 43,076 77,967 11,924 36,278
Custodian fees 7,625 10,048 2,046 3,711
Distribution fees 11,258 18,919 10,523 69,402
Administrative servicing fees 23,517 -- -- 51,848
Professional fees 4,163 4,801 3,190 3,465
Trustees' fees and expenses 1,129 1,942 (220) 374
Transfer agent fees 36,074 96,770 9,865 31,641
Registration and filing fees 17,426 16,131 14,822 18,814
Shareholders' reports 19,888 19,585 5,230 6,411
Insurance 140 1,896 109 546
Other 74,114 13,651 20,312 954
----------- ----------- ----------- -----------
Total expenses before waived or reimbursed
expenses 546,096 818,625 162,972 482,567
Expenses waived or reimbursed -- -- (17,818) (3,668)
----------- ----------- ----------- -----------
Net expenses 546,096 818,625 145,154 478,899
----------- ----------- ----------- -----------
NET INVESTMENT INCOME $ 3,961,501 $ 5,945,578 $ 974,446 $ 2,984,096
=========== =========== =========== ===========
-----------------------------------------------------------------------------------------------------------------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized (losses) from investment transactions $(1,862,683) $ (321,652) $ (754,535) $(1,697,657)
Net change in unrealized appreciation (depreciation)
from investments (2,442,052) 153,270 534,506 347,160
----------- ----------- ----------- -----------
Net realized/unrealized gains (losses) from investments (4,304,735) (168,382) (200,029) (1,350,497)
----------- ----------- ----------- -----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ (343,234) $ 5,777,196 $ 774,417 $ 1,633,599
=========== =========== =========== ===========
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 33
<PAGE> 36
STATEMENT OF OPERATIONS - THE MONEY MARKET FUND
-------------------------------------------------------------------------------
(UNAUDITED) SIX-MONTH PERIOD ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
NATIONWIDE
MONEY MARKET
FUND
--------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest income $ 41,571,332
Dividend income 180,942
------------
Total income 41,752,274
------------
--------------------------------------------------------------------------------------------
EXPENSES:
Investment management fees 2,789,123
Fund administration fees 357,774
Custodian fees 24,087
Distribution fees 71,037
Administrative servicing fees 784,373
Professional fees 26,672
Trustees' fees and expenses 7,211
Transfer agent fees 568,252
Registration and filing fees 36,624
Shareholders' reports 67,968
Insurance 5,578
Other 8,979
------------
Total expenses before waived or reimbursed expenses 4,747,678
Expenses waived or reimbursed (74,570)
------------
Net expenses 4,673,108
------------
Net investment income $ 37,079,166
============
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized (losses) from investment transactions $ (9,359)
Net change in unrealized appreciation (depreciation) from investments -
------------
Net realized and unrealized gains (losses) from investments (9,359)
------------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 37,069,807
============
--------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3 4 N A T I O N W I D E
<PAGE> 37
[PICTURE OF
SMALL AREA ON
U.S. CURRENCY]
STATEMENTS OF CHANGES IN NET ASSETS - THE STOCK FUNDS
-------------------------------------------------------------------------------
APRIL 30, 2000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
NATIONWIDE NATIONWIDE
MID CAP GROWTH FUND GROWTH FUND
--------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31, ENDED APRIL 30, OCTOBER 31,
2000 1999 2000 1999
(UNAUDITED) (UNAUDITED)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss) $ (34,108) $ (16,146) $ (867,820) $ 1,898,011
Net realized gains from investments transactions 2,380,432 868,439 215,716,267 135,282,133
Net change in unrealized appreciation
(depreciation) from investments 317,504 429,235 (206,010,997) 16,713,526
--------------- --------------- --------------- ---------------
Change in net assets resulting from operations 2,663,828 1,281,528 8,837,450 153,893,670
--------------- --------------- --------------- ---------------
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income -- -- -- (3,786)
Net realized gains from investment transactions (98,639) (5,140) (1,145,271) (56,830)
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income -- -- -- 23
Net realized gains from investment transactions (69,772) (4,303) (888,511) (35,601)
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS FROM:
Net investment income (5) (83) (65,302) (1,832,458)
Net realized gains from investment transactions (685,099) (119,176) (132,931,069) (17,467,990)
--------------- --------------- --------------- ---------------
CHANGE IN NET ASSETS FROM SHAREHOLDER
DISTRIBUTIONS (853,515) (128,702) (135,030,153) (19,396,652)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:(*)
Proceeds from shares issued 7,621,436 3,491,475 43,364,125 123,060,029
Dividends reinvested 848,313 127,639 132,923,221 19,106,166
Cost of shares redeemed (2,644,686) (2,323,070) (98,520,996) (166,677,669)
--------------- --------------- --------------- ---------------
Change in net assets from capital transactions 5,825,063 1,296,044 77,766,350 (24,511,474)
--------------- --------------- --------------- ---------------
CHANGE IN NET ASSETS 7,635,376 2,448,870 (48,426,354) 109,985,554
NET ASSETS:
BEGINNING OF PERIOD 12,027,154 9,578,284 1,028,550,825 918,565,271
--------------- --------------- --------------- ---------------
END OF PERIOD $ 19,662,530 $ 12,027,154 $ 980,124,472 $ 1,028,550,825
=============== =============== =============== ===============
Undistributed net realized gain on investments
included in net assets at end of period $ 2,380,435 $ 853,513 $ 215,716,267 $ 134,964,851
=============== =============== =============== ===============
Undistributed (distributions in excess of) net
investment income included in net assets at
end of period $ (34,136) $ (23) $ (889,451) $ 43,671
=============== =============== =============== ===============
SHARE TRANSACTIONS:(*)
Sold 328,532 179,530 2,577,900 7,044,994
Reinvested 45,098 7,248 7,912,751 1,196,914
Redeemed (120,604) (119,492) (5,839,881) (9,552,040)
--------------- --------------- --------------- ---------------
Change in shares 253,026 67,286 4,650,770 (1,310,132)
=============== =============== =============== ===============
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------
NATIONWIDE
FUND
-----------------------------------------
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
2000 1999
(UNAUDITED)
-----------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss) $ 9,558,115 $ 18,976,199
Net realized gains from investments transactions 385,147,727 155,729,091
Net change in unrealized appreciation
(depreciation) from investments (420,213,509) 57,076,428
--------------- ---------------
Change in net assets resulting from operations (25,507,667) 231,781,718
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income (189,769) (131,039)
Net realized gains from investment transactions (3,584,972) (384,917)
--------------- ---------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income (40) 635
Net realized gains from investment transactions (2,939,585) (264,789)
--------------- ---------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS FROM:
Net investment income (9,749,447) (18,122,796)
Net realized gains from investment transactions (149,208,235) (35,567,422)
--------------- ---------------
CHANGE IN NET ASSETS FROM SHAREHOLDER
DISTRIBUTIONS (165,672,048) (54,470,328)
---------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:(*)
Proceeds from shares issued 74,425,246 423,168,894
Dividends reinvested 158,947,786 52,127,337
Cost of shares redeemed (339,590,640) (315,237,235)
--------------- ---------------
Change in net assets from capital transactions (106,217,608) 160,058,996
--------------- ---------------
CHANGE IN NET ASSETS (297,397,323) 337,370,386
NET ASSETS:
BEGINNING OF PERIOD 2,542,710,321 2,205,339,935
--------------- ---------------
END OF PERIOD $ 2,245,312,998 $ 2,542,710,321
=============== ===============
Undistributed net realized gain on investments
included in net assets at end of period $ 385,141,665 $ 155,726,730
=============== ===============
Undistributed (distributions in excess of) net
investment income included in net assets at
end of period $ 1,065,304 $ 1,446,445
=============== ===============
SHARE TRANSACTIONS:(*)
Sold 2,479,649 13,206,280
Reinvested 5,421,590 1,677,000
Redeemed (11,497,823) (9,761,097)
--------------- ---------------
Change in shares (3,596,584) 5,122,183
=============== ===============
---------------------------------------------------------------------------------------------
</TABLE>
(*) BOTH THE CAPITAL SHARE TRANSACTIONS AND SHARE ACTIVITY SECTIONS
REPRESENT CLASS A, B, AND D SHARES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 3 5
<PAGE> 38
STATEMENTS OF CHANGES IN NET ASSETS - THE BOND FUNDS
APRIL 30, 2000
<TABLE>
<CAPTION>
NATIONWIDE NATIONWIDE
BOND FUND TAX-FREE INCOME FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31, ENDED APRIL 30, OCTOBER 31,
2000 1999 2000 1999
(UNAUDITED) (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 3,961,501 $ 7,897,963 $ 5,945,578 $ 12,323,163
Net realized gains (losses) from investments transactions (1,862,683) (670,481) (321,652) (784,649)
Net change in unrealized appreciation
(depreciation) from investments (2,442,052) (8,990,234) 153,270 (19,172,551)
------------- ------------- ------------- -------------
Change in net assets resulting from operations (343,234) (1,762,752) 5,777,196 (7,634,037)
------------- ------------- ------------- -------------
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income (103,456) (150,672) (58,690) (71,793)
Net realized gains from investment transactions -- -- -- (3,091)
------------- ------------- ------------- -------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income (47,461) (66,930) (85,165) (117,051)
Net realized gain from investment transactions -- -- -- (7,763)
------------- ------------- ------------- -------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS FROM:
Net investment income (3,810,584) (7,680,036) (5,801,723) (12,285,133)
Net realized gain from investment transactions -- -- -- (1,046,001)
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS FROM SHAREHOLDER
DISTRIBUTIONS (3,961,501) (7,897,638) (5,945,578) (13,530,832)
------------- ------------- ------------- -------------
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:(*)
Proceeds from shares issued 9,170,138 31,686,369 5,331,041 17,639,757
Dividends reinvested 3,434,402 6,810,486 4,182,719 9,665,414
Cost of shares redeemed (21,254,598) (35,213,957) (24,802,770) (39,481,013)
------------- ------------- ------------- -------------
Change in net assets from capital transactions (8,650,058) 3,282,898 (15,289,010) (12,175,842)
------------- ------------- ------------- -------------
CHANGE IN NET ASSETS (12,954,793) (6,377,492) (15,457,392) (33,340,711)
NET ASSETS:
BEGINNING OF PERIOD 130,299,176 136,676,668 232,399,211 265,739,922
------------- ------------- ------------- -------------
END OF PERIOD $ 117,344,383 $ 130,299,176 $ 216,941,819 $ 232,399,211
============= ============= ============= =============
Undistributed (distributions in excess of)
net realized gain (loss)on investment
included in net assets at end of period $ (9,336,435) $ (7,473,752) $ (1,452,659) $ (1,131,007)
============= ============= ============= =============
Undistributed (distributions in excess of)
net investment income included in net
assets at end of period $ 76,370 $ 76,370 $ (144,260) $ (144,260)
============= ============= ============= =============
SHARE TRANSACTIONS:(*)
Sold 1,028,257 3,326,367 546,474 1,692,989
Reinvested 387,019 725,838 428,982 932,454
Redeemed (2,385,556) (3,719,488) (2,543,806) (3,805,696)
------------- ------------- ------------- -------------
Change in shares (970,280) 7,771,693 (1,568,350) (1,180,253)
============= ============= ============= =============
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
NATIONWIDE LONG-TERM
U.S. GOVERNMENT BOND FUND
-------------------------------------
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
2000 1999
(UNAUDITED)
----------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 974,446 $ 2,142,473
Net realized gains (losses) from investments transactions (734,535) 753,447
Net change in unrealized appreciation
(depreciation) from investments 534,506 (3,960,048)
------------- -------------
Change in net assets resulting from operations 774,417 (1,064,128)
------------- -------------
--------------------------------------------------------------------------------------------
Distributions to Class A shareholders from:
Net investment income (62,922) (63,942)
Net realized gains from investment transactions (30,527) --
------------- -------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income (44,745) (57,853)
Net realized gain from investment transactions (28,806) --
------------- -------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS FROM:
Net investment income (867,079) (2,019,540)
Net realized gain from investment transactions (471,438) --
------------- -------------
Change in net assets from shareholder
distributions (1,505,517) (2,141,335)
------------- -------------
--------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:(*)
Proceeds from shares issued 2,197,838 7,042,834
Dividends reinvested 1,032,993 1,222,509
Cost of shares redeemed (5,077,178) (10,525,237)
------------- -------------
Change in net assets from capital transactions (1,846,347) (2,259,894)
------------- -------------
CHANGE IN NET ASSETS (2,577,447) (5,465,357)
NET ASSETS:
BEGINNING OF PERIOD 36,033,145 41,498,502
------------- -------------
END OF PERIOD $ 33,455,698 $ 36,033,145
============= =============
Undistributed (distributions in excess of)
net realized gain (loss)on investment
included in net assets at end of period $ (734,535) $ 530,771
============= =============
Undistributed (distributions in excess of)
net investment income included in net
assets at end of period $ 2,276 $ 2,576
============= =============
SHARE TRANSACTIONS:(*)
Sold 205,727 620,380
Reinvested 97,139 108,997
Redeemed (477,267) (942,952)
------------- -------------
Change in shares (174,401) (213,575)
============= =============
--------------------------------------------------------------------------------------------
</TABLE>
(*) Both the Capital Share Transactions and Share Activity sections
represent Classes A, B, and D Shares.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3 6 N A T I O N W I D E
<PAGE> 39
STATEMENTS OF CHANGES IN NET ASSETS - THE BOND FUNDS [ARTWORK]
--------------------------------------------------------------------------------
APRIL 30, 2000
<TABLE>
<CAPTION>
--------------------------------------
NATIONWIDE INTERMEDIATE
U.S. GOVERNMENT BOND FUND
--------------------------------------
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
2000 1999
(UNAUDITED)
--------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 2,984,096 $ 3,302,692
Net realized gains (losses) from investment transactions (1,697,657) 233,150
Net change in unrealized appreciation
(depreciation) from investments 347,160 (3,615,067)
------------- -------------
Change in net assets resulting from operations 1,633,599 (79,225)
------------- -------------
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income (1,461,088) (480,069)
Net realized gains from investment transactions (113,377) (1,762)
------------- -------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income (28,149) (33,885)
Net realized gains from investment transactions (2,404) (2,063)
------------- -------------
DISTRIBUTIONS TO CLASS D SHAREHOLDERS FROM:
Net investment income (1,494,859) (2,788,883)
Net realized gains from investment transactions (117,039) (253,467)
------------- -------------
CHANGE IN NET ASSETS FROM SHAREHOLDER
DISTRIBUTIONS (3,216,916) (3,560,129)
------------- -------------
-----------------------------------------------------------------------------------------------------------------
Capital Transactions:(*)
Proceeds from shares issued 21,084,838 85,637,352
Dividends reinvested 2,933,346 3,000,445
Cost of shares redeemed (20,502,294) (33,466,295)
------------- -------------
Change in net assets from capital transactions 3,515,890 55,171,502
------------- -------------
CHANGE IN NET ASSETS 1,932,573 51,532,148
NET ASSETS:
BEGINNING OF PERIOD 103,009,785 51,477,637
------------- -------------
END OF PERIOD $ 104,942,358 $ 103,009,785
============= =============
Undistributed (distributions in excess of)net realized gain (loss)on
investments included in net assets at end of period $ (1,697,327) $ 233,150
============= =============
Undistributed (distributions in excess of) net investment income
included in net assets at end of period $ (3,764) $ (3,764)
============= =============
SHARE TRANSACTIONS:(*)
Sold 2,158,463 8,532,370
Reinvested 300,840 296,211
Redeemed (2,102,207) (3,282,411)
------------- -------------
Change in shares 357,096 5,546,170
============= =============
-----------------------------------------------------------------------------------------------------------------
</TABLE>
(*) BOTH THE CAPITAL SHARE TRANSACTIONS AND SHARE ACTIVITY SECTIONS REPRESENT
CLASSES A, B, AND D SHARES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 3 7
<PAGE> 40
STATEMENT OF CHANGES IN NET ASSETS - THE MONEY MARKET FUND
--------------------------------------------------------------------------------
APRIL 30, 2000
<TABLE>
<CAPTION>
-----------------------------------------
NATIONWIDE
MONEY MARKET FUND
-----------------------------------------
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
2000 1999
(UNAUDITED)
-----------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 37,079,166 $ 53,670,619
Net realized gains (losses) from investment transactions (9,359) -
--------------- ---------------
Change in net assets resulting from operations 37,069,807 53,670,619
--------------- ---------------
---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SERVICE CLASS SHAREHOLDERS FROM:(**)
Net investment income (2,492,307) (182,912)
--------------- ---------------
DISTRIBUTIONS TO PRIME CLASS SHAREHOLDERS FROM:
Net investment income (34,586,629) (53,487,804)
--------------- ---------------
CHANGE IN NET ASSETS FROM SHAREHOLDER DISTRIBUTIONS (37,078,936) (53,670,716)
--------------- ---------------
---------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:(*)
Proceeds from shares issued 1,189,538,759 1,458,075,654
Dividends reinvested 35,778,673 51,439,932
Cost of shares redeemed (1,219,840,792) (1,190,567,730)
--------------- ---------------
Change in net assets from capital transactions 5,476,640 318,947,856
--------------- ---------------
CHANGE IN NET ASSETS 5,467,511 318,947,759
NET ASSETS:
BEGINNING OF PERIOD 1,367,636,600 1,048,688,841
--------------- ---------------
END OF PERIOD $ 1,373,104,111 $ 1,367,636,600
=============== ===============
Undistributed (distributions in excess of)net realized gain (loss)on
investments included in net assets at end of period $ (9,359) $ -
=============== ===============
Undistributed (distributions in excess of) net investment income
included in net assets at end of period $ 222,275 $ 222,045
=============== ===============
SHARE TRANSACTIONS:(*)
Sold 1,189,538,859 1,458,096,838
Reinvested 35,778,601 51,439,932
Redeemed (1,219,840,886) (1,190,567,730)
--------------- ---------------
Change in shares 5,476,574 318,969,040
=============== ===============
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(*) BOTH THE CAPITAL SHARE TRANSACTIONS AND SHARE ACTIVITY SECTIONS
REPRESENT SERVICE AND PRIME SHARES.
(**) FORMERLY KNOWN AS CLASS R SHARES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3 8 N A T I O N W I D E
<PAGE> 41
FINANCIAL HIGHLIGHTS - NATIONWIDE((R)) MID CAP GROWTH FUND [ARTWORK]
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------
SIX MONTHS YEAR ENDED PERIOD FROM
ENDED APRIL 30, OCTOBER 31, MAY 11, 1998 TO
2000 1999 OCTOBER 31, 1998
(UNAUDITED)
---------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 19.70 $17.67 $ 19.67
------- ------ -------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.05) (0.03) (0.03)
Net realized gain (loss) and unrealized
appreciation (depreciation) 4.48 2.30 (1.97)
------- ------ -------
Total from investment operations 4.43 2.27 (2.00)
------- ------ -------
DISTRIBUTIONS:
Net realized gains (1.37) (0.24) -
------- ------ -------
Total distributions (1.37) (0.24) -
------- ------ -------
Net increase (decrease) in net asset value 3.06 2.03 (2.00)
------- ------ -------
NET ASSET VALUE--END OF PERIOD $ 22.76 $19.70 $ 17.67
======= ====== =======
Total Return (excluding sales charges) 24.01% 12.98% (10.17%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 2,343 $1,244 $ 305
Ratio of expenses to average net assets 1.25%(a) 1.25% 1.23%(a)
Ratio of expenses to average net assets(*) 1.46%(a) 1.83% 2.21%(a)
Ratio of net investment income to average net assets (0.58%)(a) (0.24%) (0.70%)(a)
Ratio of net investment income to average net assets(*) (0.79%)(a) (0.82%) (1.68%)(a)
Portfolio turnover (b)(c) 184.88% 36.58% 46.33%
---------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS B
-----------------------------------------------------------
SIX MONTHS YEAR ENDED PERIOD FROM
ENDED APRIL 30, OCTOBER 31, MAY 11, 1998 TO
2000 1999 OCTOBER 31, 1998
(UNAUDITED)
-----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 19.44 $ 17.54 $ 19.67
------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.06) (0.12) (0.07)
Net realized gain (loss) and unrealized
appreciation (depreciation) 4.42 2.26 (2.06)
------- ------- -------
Total from investment operations 4.36 2.14 (2.13)
------- ------- -------
DISTRIBUTIONS:
Net realized gains (1.37) (0.24) -
------- ------- -------
Total distributions (1.37) (0.24) -
------- ------- -------
Net increase (decrease) in net asset value 2.99 1.90 (2.13)
------- ------- -------
NET ASSET VALUE--END OF PERIOD $ 22.43 $ 19.44 $ 17.54
======= ======= =======
Total Return (excluding sales charges) 23.93% 12.33% (10.83%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,873 $ 918 $ 251
Ratio of expenses to average net assets 2.00%(a) 2.00% 2.00%(a)
Ratio of expenses to average net assets(*) 2.22%(a) 2.59% 2.98%(a)
Ratio of net investment income to average net assets (1.33%)(a) (1.01%) (1.47%)(a)
Ratio of net investment income to average net assets(*) (1.56%)(a) (1.60%) (2.45%)(a)
Portfolio turnover (b)(c) 184.88% 36.58% 46.33%
---------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------
SIX MONTHS CLASS D (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 --------------------------
(UNAUDITED) 1999 1998 (c)
--------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 19.69 $17.61 $22.87
------- ------ ------
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.03) (0.02) (0.06)
Net realized gain (loss) and unrealized
appreciation (depreciation) 4.50 2.34 1.29
------- ------ ------
Total from investment operations 4.47 2.32 1.23
------- ------ ------
DISTRIBUTIONS:
Net investment income - - -
In excess of net investment income - - -
Net realized gains (1.37) (0.24) (6.49)
------- ------ ------
Total distributions (1.37) (0.24) (6.49)
------- ------ ------
Net increase (decrease) in net asset value (3.10) 2.08 (5.26)
NET ASSET VALUE--END OF PERIOD $ 22.79 $19.69 $17.61
======= ====== ======
Total Return (excluding sales charges) 24.19% 13.31% 5.11%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $15,447 $9,865 $9,022
Ratio of expenses to average net assets 1.00%(a) 1.00% 0.93%
Ratio of expenses to average net assets(*) 1.21%(a) 1.53% 1.57%
Ratio of net investment income to average net assets (0.33%)(a) (0.09%) (0.30%)
Ratio of net investment income to average net assets(*) (0.54%)(a) (0.62%) (0.94%)
Portfolio turnover (b)(c) 184.88% 36.58% 46.33%
<CAPTION>
--------------------------------------------------
CLASS D (c)
YEARS ENDED OCTOBER 31,
--------------------------------------------------
1997 1996 1995
--------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 19.47 $18.17 $ 15.11
------- ------ -------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.04 0.01 (0.01)
Net realized gain (loss) and unrealized
appreciation (depreciation) 4.38 3.28 3.23
------- ------ -------
Total from investment operations 4.42 3.29 3.22
------- ------ -------
DISTRIBUTIONS:
Net investment income (0.03) - -
In excess of net investment income - - (0.01)
Net realized gains (0.99) (1.99) (0.15)
------- ------ -------
Total distributions (1.02) (1.99) (0.16)
------- ------ -------
Net increase (decrease) in net asset value 3.40 1.30 3.06
------- ------ -------
NET ASSET VALUE--END OF PERIOD $ 22.87 $19.47 $ 18.17
======= ====== =======
Total Return (excluding sales charges) 23.66% 19.41% 21.57%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 9,541 $9,095 $ 7,594
Ratio of expenses to average net assets 0.96% 1.44% 1.47%
Ratio of expenses to average net assets(*) 1.70% 1.69% 1.72%
Ratio of net investment income to average net assets 0.20% 0.03% (0.05%)
Ratio of net investment income to average net assets(*) (0.54%) (0.22%) (0.30%)
Portfolio turnover (b)(c) 40.69% 17.19% 29.19%
</TABLE>
(*) RATIOS CALCULATED AS IF NO EXPENSES WERE WAIVED OR REIMBURSED.
(a) ANNUALIZED.
(b) PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING AMONG THE CLASSES OF SHARES.
(c) NON-ANNUALIZED.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
N A T I O N W I D E 3 9
<PAGE> 42
Financial Highlights - Nationwide(R) Growth Fund
Selected Data for Each Share of Capital Outstanding
<TABLE>
<CAPTION>
---------------------------------------------------------
CLASS A
---------------------------------------------------------
SIX MONTHS YEAR ENDED PERIOD FROM
ENDED APRIL 30, OCTOBER 31, MAY 11, 1998 TO
2000 1999 OCTOBER 31, 1998
(UNAUDITED)
---------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 18.35 $ 16.02 $ 16.51
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.03 0.01 (0.02)
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.20 2.64 (0.47)
------------- ------------- -------------
Total from investment operations 0.23 2.65 (0.49)
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income - (0.01) -
Net realized gains (2.44) (0.31) -
------------- ------------- -------------
Total distributions (2.44) (0.32) -
------------- ------------- -------------
Net increase (decrease) in net asset value (2.21) 2.33 (0.49)
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 16.14 $ 18.35 $ 16.02
============= ============= =============
Total Return (excluding sales charges) 0.75% 16.85% (2.97%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 9,585 $ 7,654 $ 2,830
Ratio of expenses to average net assets 1.03%(a) 1.04% 1.11%(a)
Ratio of net investment income to average net assets 0.66%(a) (0.02%) (0.38%)(a)
Portfolio turnover (b)(d) 85.98% 35.18% 38.61%
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------
CLASS B
-------------------------------------------------------
SIX MONTHS YEAR ENDED PERIOD FROM
ENDED APRIL 30, OCTOBER 31, MAY 11, 1998 TO
2000 1999 OCTOBER 31, 1998
(UNAUDITED)
-------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 18.20 $ 15.98 $ 16.51
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.11 (0.06) (0.04)
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.05 2.59 (0.49)
------------- ------------- -------------
Total from investment operations 0.16 2.53 (0.53)
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income - - -
Net realized gains (2.44) (0.31) -
------------- ------------- -------------
Total distributions (2.44) (0.31) -
------------- ------------- -------------
Net increase (decrease) in net asset value (2.28) 2.22 (0.53)
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 15.92 $ 18.20 $ 15.98
============= ============= =============
Total Return (excluding sales charges) 0.33% 16.12% (3.21%)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 8,208 $ 6,210 $ 1,557
Ratio of expenses to average net assets 1.79%(a) 1.79% 1.88%(a)
Ratio of net investment income to average net assets 0.66%(a) (0.76%) (1.16%)(a)
Portfolio turnover (b)(d) 85.98% 35.18% 38.61%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS CLASS D (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 -----------------------------------
(UNAUDITED) 1999 1998 (c)
---------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 18.36 $ 16.02 $ 16.32
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.01 0.03 0.03
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.23 2.65 2.32
------------- ------------- -------------
Total from investment operations 0.24 2.68 2.35
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income - (0.03) (0.03)
In excess of net investment income - - (0.01)
Net realized gains (2.44) (0.31) (2.61)
------------- ------------- -------------
Total distributions (2.44) (0.34) (2.65)
------------- ------------- -------------
Net increase (decrease) in net asset value (2.20) 2.34 (0.30)
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 16.16 $ 18.36 $ 16.02
============= ============= =============
Total Return (excluding sales charges) 0.82% 17.07% 15.94%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 962,332 $ 1,014,687 $ 914,178
Ratio of expenses to average net assets 0.83%(a) 0.80% 0.73%
Ratio of net investment income to average net assets 0.66%(a) 0.19% 0.19%
Portfolio turnover (b)(d) 85.98% 35.18% 38.61%
<CAPTION>
CLASS D (c)
YEARS ENDED OCTOBER 31,
--------------------------------------------------------
1997 1996 1995
--------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 13.34 $ 13.22 $ 11.35
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.12 0.16 0.21
Net realized gain (loss) and unrealized
appreciation (depreciation) 3.94 1.36 2.10
------------- ------------- -------------
Total from investment operations 4.06 1.52 2.31
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income (0.12) (0.16) (0.20)
In excess of net investment income - - -
Net realized gains (0.96) (1.24) (0.24)
------------- ------------- -------------
Total distributions (1.08) (1.40) (0.44)
------------- ------------- -------------
Net increase (decrease) in net asset value 2.98 0.12 1.87
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 16.32 $ 13.34 $ 13.22
============= ============= =============
Total Return (excluding sales charges) 32.12% 12.36% 21.01%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 818,124 $ 655,616 $ 582,927
Ratio of expenses to average net assets 0.64% 0.64% 0.66%
Ratio of net investment income to average net assets 0.81% 1.20% 1.66%
Portfolio turnover (b)(d) 45.07% 25.61% 27.10%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) ANNUALIZED.
(b) PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING AMONG THE CLASSES OF SHARES.
(c) UPON A TRUST REORGANIZATION ON MAY 11, 1998, THE EXISTING SHARES OF THE FUND
WERE RENAMED CLASS D.
(d) NON-ANNUALIZED.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
4 0 N A T I O N W I D E
<PAGE> 43
[ART WORK]
FINANCIAL HIGHLIGHTS - NATIONWIDE(R) FUND
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
-----------------------------------------------------------
CLASS A
-----------------------------------------------------------
SIX MONTHS YEAR ENDED PERIOD FROM
ENDED APRIL 30, OCTOBER 31, MAY 11, 1998 TO
2000 1999 OCTOBER 31, 1998
(UNAUDITED)
-----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 32.71 $ 30.30 $ 29.94
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.09 0.17 0.06
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.37) 2.84 0.38
------------- ------------- -------------
Total from investment operations (0.28) 3.01 0.44
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income (0.10) (0.11) (0.08)
Net realized gains (2.04) (0.49) -
------------- ------------- -------------
Total distributions (2.14) (0.60) (0.08)
------------- ------------- -------------
Net increase (decrease) in net asset value (2.42) 2.41 0.35
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 30.29 $ 32.71 $ 30.30
============= ============= =============
Total Return (excluding sales charges) (0.62%)(d) 10.05% 1.48%(d)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 57,238 $ 54,223 $ 19,746
Ratio of expenses to average net assets 0.97%(a) 0.96% 1.00%(a)
Ratio of net investment income to average net assets 0.64%(a) 0.53% 0.54%(a)
Portfolio turnover (b)(d) 32.97% 13.88% 13.47%
-----------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------
CLASS B
----------------------------------------------------------
SIX MONTHS YEAR ENDED PERIOD FROM
ENDED APRIL 30, OCTOBER 31, MAY 11, 1998 TO
2000 1999 OCTOBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 32.45 $ 30.18 $ 29.94
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.02 (0.03) -
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.40) 2.79 0.27
------------- ------------- -------------
Total from investment operations (0.38) 2.76 0.27
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income - - (0.03)
Net realized gains (2.04) (0.49) -
------------- ------------- -------------
Total distributions (2.04) (0.49) (0.03)
------------- ------------- -------------
Net increase (decrease) in net asset value (2.42) 2.27 0.24
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 30.03 $ 32.45 $ 30.18
============= ============= =============
Total Return (excluding sales charges) 1.01%(d) 9.22% 0.90%(d)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 46,867 $ 44,994 $ 13,493
Ratio of expenses to average net assets 1.72% (a) 1.72% 1.75%(a)
Ratio of net investment income to average net assets (0.09%)(a) (0.21%) (0.20%)(a)
Portfolio turnover (b)(d) 32.97% 13.88% 13.47%
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------
SIX MONTHS CLASS D (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 --------------------------------------
(UNAUDITED) 1999 1998 (c)
-------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 32.60 $ 30.26 $ 26.57
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.13 0.25 0.30
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.38) 2.82 6.23
------------- ------------- -------------
Total from investment operations (0.25) 3.07 6.53
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income (0.13) (0.24) (0.30)
Net realized gains (2.04) (0.49) (2.54)
------------- ------------- -------------
Total distributions (2.17) (0.73) (2.84)
------------- ------------- -------------
Net increase (decrease) in net asset value (2.42) 2.34 3.69
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 30.18 $ 32.60 $ 30.26
============= ============= =============
Total Return (excluding sales charges) (0.55%)(d) 10.27% 25.73%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 2,141,208 $ 2,443,493 $ 2,172,101
Ratio of expenses to average net assets 0.77%(a) 0.73% 0.66%
Ratio of net investment income to average net assets 0.88%(a) 0.78% 1.00%
Portfolio turnover (b)(d) 32.97% 13.88% 13.47%
--------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
CLASS D (c)
YEARS ENDED OCTOBER 31,
-----------------------------------------------------------
1997 1996 1995
-----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 20.41 $ 17.35 $ 16.12
------------- ------------- -------------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.31 0.36 0.31
Net realized gain (loss) and unrealized
appreciation (depreciation) 7.44 3.98 2.49
------------- ------------- -------------
Total from investment operations 7.75 4.34 2.80
------------- ------------- -------------
DISTRIBUTIONS:
Net investment income (0.31) (0.35) (0.31)
Net realized gains (1.28) (0.93) (1.26)
------------- ------------- -------------
Total distributions (1.59) (1.28) (1.57)
------------- ------------- -------------
Net increase (decrease) in net asset value 6.16 3.06 1.23
------------- ------------- -------------
NET ASSET VALUE--END OF PERIOD $ 26.57 $ 20.41 $ 17.35
============= ============= =============
Total Return (excluding sales charges) 40.17% 26.11% 19.24%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,448,422 $ 958,590 $ 795,666
Ratio of expenses to average net assets 0.60% 0.61% 0.63%
Ratio of net investment income to average net assets 1.32% 1.89% 1.95%
Portfolio turnover (b)(d) 14.94% 16.71% 16.50%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) ANNUALIZED.
(b) PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING AMONG THE CLASSES OF SHARES.
(c) UPON A TRUST REORGANIZATION ON MAY 11, 1998, THE EXISTING SHARES OF THE FUND
WERE RENAMED CLASS D.
(d) NON-ANNUALIZED.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
N A T I O N W I D E 4 1
<PAGE> 44
FINANCIAL HIGHLIGHTS - NATIONWIDE(R) BOND FUND
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
---------------------------------------------------------
Class A
---------------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
---------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.07 $ 9.75 $ 9.52
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.28 0.53 0.26
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.30) (0.68) 0.23
----------- ----------- -----------
Total from investment operations (0.02) (0.15) 0.49
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.28) (0.53) (0.26)
----------- ----------- -----------
Total distributions (0.28) (0.53) (0.26)
----------- ----------- -----------
Net increase (decrease) in net asset value (0.30) (0.68) 0.23
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 8.77 $ 9.07 $ 9.75
=========== =========== ===========
Total Return (excluding sales charges) (0.24%)(d) (1.58%) 5.18%(d)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 3,199 $ 3,186 $ 1,365
Ratio of expenses to average net assets 1.08%(a) 1.08% 1.17%(a)
Ratio of net investment income to average net assets 6.27%(a) 5.67% 5.48%(a)
Portfolio turnover (b)(d) 43.06% 64.26% 70.31%
-----------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Class B
-----------------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
-----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.08 $ 9.75 $ 9.52
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.25 0.47 0.23
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.31) (0.67) 0.23
----------- ----------- -----------
Total from investment operations (0.06) (0.20) 0.46
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.25) (0.47) (0.23)
----------- ----------- -----------
Total distributions (0.25) (0.47) (0.23)
----------- ----------- -----------
Net increase (decrease) in net asset value (0.31) (0.67) 0.23
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 8.77 $ 9.08 $ 9.75
=========== =========== ===========
Total Return (excluding sales charges) (0.65%)(d) (2.07%) 4.85%(d)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,746 $ 1,662 $ 490
Ratio of expenses to average net assets 1.68%(a) 1.68% 1.81%(a)
Ratio of net investment income to average net assets 5.67%(a) 5.07% 4.93%(a)
Portfolio turnover (b)(d) 43.06% 64.26% 70.31%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------
SIX MONTHS CLASS D (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 ------------------------------------
(UNAUDITED) 1999 1998 (c)
-----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.09 $ 9.76 $ 9.49
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.29 0.55 0.57
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.31) (0.67) 0.27
----------- ----------- -----------
Total from investment operations (0.02) (0.12) 0.84
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.29) (0.55) (0.57)
----------- ----------- -----------
Total distributions (0.29) (0.55) (0.57)
----------- ----------- -----------
Net increase (decrease) in net asset value (0.31) (0.67) 0.27
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 8.78 $ 9.09 $ 9.76
=========== =========== ===========
Total Return (excluding sales charges) (0.25%)(d) (1.24%) 9.11%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 112,399 $ 125,451 $ 134,822
Ratio of expenses to average net assets 0.87%(a) 0.83% 0.78%
Ratio of net investment income to average net assets 6.46%(a) 5.86% 5.93%
Portfolio turnover (b)(d) 43.06% 64.26% 70.31%
-----------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------
CLASS D (c)
YEARS ENDED OCTOBER 31,
-------------------------------------------------------
1997 1996 1995
-------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.34 $ 9.50 $ 8.46
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.60 0.61 0.63
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.15 (0.15) 1.04
----------- ----------- -----------
Total from investment operations 0.75 0.46 1.67
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.60) (0.62) (0.63)
----------- ----------- -----------
Total distributions (0.60) (0.62) (0.63)
----------- ----------- -----------
Net increase (decrease) in net asset value 0.15 (0.16) 1.04
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 9.49 $ 9.34 $ 9.50
=========== =========== ===========
Total Return (excluding sales charges) 8.33% 5.05% 20.41%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 124,404 $ 133,253 $ 133,633
Ratio of expenses to average net assets 0.72% 0.70% 0.71%
Ratio of net investment income to average net assets 6.43% 6.60% 7.04%
Portfolio turnover (b)(d) 70.63% 38.95% 70.40%
---------------------------------------------------------------------------------------------------------------
</TABLE>
(a) ANNUALIZED.
(b) PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING AMONG THE CLASSES OF SHARES.
(c) UPON A TRUST REORGANIZATION ON MAY 11, 1998, THE EXISTING SHARES OF THE FUND
WERE RENAMED CLASS D.
(d) NON-ANNUALIZED.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
4 2 N A T I O N W I D E
<PAGE> 45
[ART WORK]
FINANCIAL HIGHLIGHTS - NATIONWIDE(R) TAX-FREE INCOME FUND
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
----------------------------------------------------------
Class A
----------------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.79 $ 10.65 $ 10.48
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.25 0.49 0.23
Net realized gain (loss) and unrealized
appreciation (depreciation) - (0.82) 0.17
----------- ----------- -----------
Total from investment operations 0.25 (0.33) 0.40
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.25) (0.49) (0.23)
Net realized gains - (0.04) -
----------- ----------- -----------
Total distributions (0.25) (0.53) (0.23)
----------- ----------- -----------
Net increase (decrease) in net asset value - (0.86) 0.17
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 9.79 $ 9.79 $ 10.65
=========== =========== ===========
Total Return (excluding sales charges) 2.57%(c) (3.26%) 3.86%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 2,285 $ 2,383 $ 601
Ratio of expenses to average net assets 0.97%(a) 0.96% 1.00%(a)
Ratio of net investment income to average net assets 5.11%(a) 4.73% 4.50%(a)
Portfolio turnover (b)(c) 5.65% 42.26% 28.88%
--------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------
Class B
----------------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
----------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.78 $ 10.66 $ 10.48
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.22 0.42 0.20
Net realized gain (loss) and unrealized
appreciation (depreciation) - (0.83) 0.18
----------- ----------- -----------
Total from investment operations 0.22 (0.41) 0.38
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.22) (0.43) (0.20)
Net realized gains - (0.04) -
----------- ----------- -----------
Total distributions (0.22) (0.47) (0.20)
----------- ----------- -----------
Net increase (decrease) in net asset value - (0.88) 0.18
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 9.78 $ 9.78 $ 10.66
=========== =========== ===========
Total Return (excluding sales charges) 2.27% (c) (4.02%) 3.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 4,036 $ 3,746 $ 1,477
Ratio of expenses to average net assets 1.57%(a) 1.56% 1.66%(a)
Ratio of net investment income to average net assets 4.52%(a) 4.12% 3.94%(a)
Portfolio turnover (b)(c) 5.65% 42.26% 28.88%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS CLASS D (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 ----------------------------------
(UNAUDITED) 1999 1998 (c)
-------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.78 $ 10.66 $ 10.51
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.26 0.51 0.50
Net realized gain (loss) and unrealized
appreciation (depreciation) - (0.84) 0.23
----------- ----------- -----------
Total from investment operations 0.26 (0.33) 0.73
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.26) (0.51) (0.50)
Net realized gains - (0.04) (0.08)
----------- ----------- -----------
Total distributions (0.26) (0.55) (0.58)
----------- ----------- -----------
Net increase (decrease) in net asset value - (0.88) 0.15
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 9.78 $ 9.78 $ 10.66
=========== =========== ===========
Total Return (excluding sales charges) 2.70%(c) (3.21%) 7.09%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 210,621 $ 226,270 $ 263,662
Ratio of expenses to average net assets 0.72%(a) 0.71% 0.85%
Ratio of expenses to average net assets(*) N/A N/A 0.93%
Ratio of net investment income to average net assets 5.36%(a) 4.93% 4.73%
Ratio of net investment income to average net assets(*) N/A N/A 4.65%
Portfolio turnover (b)(c) 5.65% 42.26% 28.88%
<CAPTION>
CLASS D (c)
YEARS ENDED OCTOBER 31,
---------------------------------------------------------
1997 1996 1995
---------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.24 $ 10.22 $ 9.40
----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.50 0.51 0.51
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.27 0.02 0.84
----------- ----------- -----------
Total from investment operations 0.77 0.53 1.35
----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.50) (0.51) (0.53)
Net realized gains - - -
----------- ----------- -----------
Total distributions (0.50) (0.51) (0.53)
----------- ----------- -----------
Net increase (decrease) in net asset value 0.27 0.02 0.82
----------- ----------- -----------
NET ASSET VALUE--END OF PERIOD $ 10.51 $ 10.24 $ 10.22
=========== =========== ===========
Total Return (excluding sales charges) 7.72% 5.31% 14.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 256,486 $ 264,642 $ 262,484
Ratio of expenses to average net assets 0.96% 0.96% 0.98%
Ratio of expenses to average net assets(*) 1.11% 1.11% 1.13%
Ratio of net investment income to average net assets 4.85% 4.98% 5.20%
Ratio of net investment income to average net assets(*) 4.70% 4.83% 5.05%
Portfolio turnover (b)(c) 39.49% 24.15% 31.70%
</TABLE>
(*) RATIOS CALCULATED AS IF NO EXPENSES WERE WAIVED OR REIMBURSED.
(a) ANNUALIZED.
(b) PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING AMONG THE CLASSES OF SHARES.
(c) NON-ANNUALIZED.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
N A T I O N W I D E 4 3
<PAGE> 46
FINANCIAL HIGHLIGHTS - NATIONWIDE(R) LONG-TERM U.S. GOVERNMENT FUND
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
-----------------------------------------------------
Class A
-----------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
-----------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.88 $ 11.77 $ 11.24
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.30 0.59 0.28
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.06) (0.90) 0.53
---------- ---------- ----------
Total from investment operations 0.24 (0.31) 0.81
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.30) (0.58) (0.28)
Net realized gains (0.16) - -
---------- ---------- ----------
Total distributions (0.46) (0.58) (0.28)
---------- ---------- ----------
Net increase (decrease) in net asset value (0.22) (0.89) 0.53
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 10.66 $ 10.88 $ 11.77
========== ========== ==========
Total Return (excluding sales charges) 2.27%(c) (2.63%) 7.32%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 3,321 $ 2,041 $ 201
Ratio of expenses to average net assets 1.04%(a) 1.04% 1.04%(a)
Ratio of expenses to average net assets(*) 1.15%(a) 1.14% 1.28%(a)
Ratio of net investment income to average net assets 5.55%(a) 5.29% 5.09%(a)
Ratio of net investment income to average net assets(*) 4.51%(a) 5.19% 4.85%(a)
Portfolio turnover (b)(c) 60.11% 84.33% 51.12%
---------------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------
Class B
--------------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
--------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.88 $ 11.76 $ 11.24
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.26 0.52 0.25
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.06) (0.89) 0.52
---------- ---------- ----------
Total from investment operations 0.20 (0.37) 0.77
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.26) (0.51) (0.25)
Net realized gains (0.16) - -
---------- ---------- ----------
Total distributions (0.42) (0.51) (0.25)
---------- ---------- ----------
Net increase (decrease) in net asset value (0.22) (0.88) 0.52
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 10.66 $ 10.88 $ 11.76
========== ========== ==========
Total Return (excluding sales charges) 1.95%(c) (3.15%) 6.90%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,713 $ 1,876 $ 352
Ratio of expenses to average net assets 1.64%(a) 1.64% 1.64%(a)
Ratio of expenses to average net assets(*) 1.75%(a) 1.74% 1.90%(a)
Ratio of net investment income to average net assets 4.95%(a) 4.68% 4.52%(a)
Ratio of net investment income to average net assets(*) 3.31%(a) 4.58% 4.26%(a)
Portfolio turnover (b)(c) 60.11% 84.33% 51.12%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS CLASS D (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 -------------------------------
(UNAUDITED) 1999 1998 (c)
------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.88 $ 11.77 $ 11.19
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.31 0.61 0.63
---------- ---------- ----------
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.06) (0.89) 0.58
---------- ---------- ----------
Total from investment operations 0.25 (0.28) 1.21
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.31) (0.61) (0.63)
Net realized gains (0.16) - -
---------- ---------- ----------
Total distributions (0.47) (0.61) (0.63)
---------- ---------- ----------
Net increase (decrease) in net asset value (0.22) (0.89) 0.58
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 10.66 $ 10.88 $ 11.77
========== ========== ==========
Total Return (excluding sales charges) 2.37%(c) (2.39%) 11.15%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 28,421 $ 32,117 $ 40,946
Ratio of expenses to average net assets 0.79%(a) 0.79% 0.82%
Ratio of expenses to average net assets(*) 0.90%(a) 0.89% 1.28%
Ratio of net investment income to average net assets 5.79%(a) 5.33% 5.55%
Ratio of net investment income to average net assets(*) 4.99%(a) 5.44% 5.09%
Portfolio turnover (b)(c) 60.11% 84.33% 51.12%
---------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS D (c)
YEARS ENDED OCTOBER 31,
-----------------------------------------------------
1997 1996 1995
-----------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.92 $ 11.07 $ 10.12
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.66 0.68 0.68
---------- ---------- ----------
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.27 (0.15) 0.95
---------- ---------- ----------
Total from investment operations 0.93 0.53 1.63
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.66) (0.68) (0.68)
Net realized gains - - -
---------- ---------- ----------
Total distributions (0.66) (0.68) (0.68)
---------- ---------- ----------
Net increase (decrease) in net asset value 0.27 (0.15) 0.95
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 11.19 $ 10.92 $ 11.07
========== ========== ==========
Total Return (excluding sales charges) 8.84% 5.01% 16.68%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 48,549 $ 58,737 $ 69,190
Ratio of expenses to average net assets 0.85% 0.84% 0.89%
Ratio of expenses to average net assets(*) 1.60% 1.59% 1.58%
Ratio of net investment income to average net assets 6.04% 6.26% 6.42%
Ratio of net investment income to average net assets(*) 5.29% 5.51% 5.73%
Portfolio turnover (b)(c) 52.10% 21.04% 140.55%
-----------------------------------------------------------------------------------------------------------------
</TABLE>
(*) RATIOS CALCULATED AS IF NO EXPENSES WERE WAIVED OR REIMBURSED.
(a) ANNUALIZED.
(b) PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING AMONG THE CLASSES OF SHARES.
(c) NON-ANNUALIZED.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
4 4 N A T I O N W I D E
<PAGE> 47
[ARTWORK]
FINANCIAL HIGHLIGHTS - NATIONWIDE(R) INTERMEDIATE U.S. GOVERNMENT FUND
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
-------------------------------------------------------
Class A
-------------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
-------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.89 $ 10.56 $ 10.24
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.27 0.51 0.26
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.13) (0.62) 0.32
---------- ---------- ----------
Total from investment operations 0.14 (0.11) 0.58
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.27) (0.51) (0.26)
Net realized gains (0.02) (0.05) -
---------- ---------- ----------
Total distributions (0.29) (0.56) (0.26)
---------- ---------- ----------
Net increase (decrease) in net asset value (0.15) (0.67) 0.32
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 9.74 $ 9.89 $ 10.56
========== ========== ==========
Total Return (excluding sales charges) 1.51%(c) (1.05%) 5.69%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) 53,387 $ 49,601 $ 332
Ratio of expenses to average net assets 0.99%(a) 0.99% 1.04%(a)
Ratio of expenses to average net assets(*) 1.09%(a) 1.15% 1.17%(a)
Ratio of net investment income to average net assets 5.71%(a) 5.13% 5.10%(a)
Ratio of net investment income to average net assets(*) 5.60%(a) 5.29% 4.97%(a)
Portfolio turnover (b)(c) 61.01% 51.86% 59.52%
<CAPTION>
--------------------------------------------------------
Class B
--------------------------------------------------------
Six Months Year Ended Period from
Ended April 30, October 31, May 11, 1998 to
2000 1999 October 31, 1998
(Unaudited)
--------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.89 $ 10.55 $ 10.24
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.25 0.45 0.23
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.13) (0.61) 0.31
---------- ---------- ----------
Total from investment operations 0.12 (0.16) 0.54
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.25) (0.45) (0.23)
Net realized gains (0.02) (0.05) -
---------- ---------- ----------
Total distributions (0.27) (0.50) (0.23)
---------- ---------- ----------
Net increase (decrease) in net asset value (0.15) (0.66) 0.31
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 9.74 $ 9.89 $ 10.55
========== ========== ==========
Total Return (excluding sales charges) 1.21%(c) (1.57%) 5.29%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,137 $ 1,148 $ 297
Ratio of expenses to average net assets 1.64%(a) 1.64%) 1.64%(a)
Ratio of expenses to average net assets(*) 1.55%(a) 1.65%) 1.86%(a)
Ratio of net investment income to average net assets 5.05%(a) 4.44% 4.59%(a)
Ratio of net investment income to average net assets(*) 5.14%(a) 4.45% 4.37%(a)
Portfolio turnover (b)(c) 61.01% 51.86% 59.52%
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------
SIX MONTHS CLASS D (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 ---------------------------------
(UNAUDITED) 1999 1998 (c)
-------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 9.89 $ 10.57 $ 10.31
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.29 0.53 0.56
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.13) (0.63) 0.34
---------- ---------- ----------
Total from investment operations 0.16 (0.10) 0.90
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.29) (0.53) (0.56)
In excess of net investment income - - -
Net realized gains (0.02) (0.05) (0.08)
---------- ---------- ----------
Total distributions (0.31) (0.58) (0.64)
---------- ---------- ----------
Net increase (decrease) in net asset value (0.15) (0.68) 0.26
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 9.74 $ 9.89 $ 10.57
========== ========== ==========
Total Return (excluding sales charges) 1.64%(c) (0.93%) 9.03%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 50,418 $ 52,260 $ 50,849
Ratio of expenses to average net assets 0.79%(a) 0.79% 0.92%
Ratio of expenses to average net assets(*) 0.75(a) 0.81% 1.03%
Ratio of net investment income to average net assets 5.89%(a) 5.24% 5.43%
Ratio of net investment income to average net assets(*) 5.93%(a) 5.26% 5.32%
Portfolio turnover (b)(c) 61.01% 51.86% 59.52%
-----------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------
CLASS D (c)
YEARS ENDED OCTOBER 31,
-----------------------------------------------------
1997 1996 1995
------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.04 $ 10.12 $ 9.22
---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.59 0.59 0.59
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.27 (0.08) 0.89
---------- ---------- ----------
Total from investment operations 0.86 0.51 1.48
---------- ---------- ----------
DISTRIBUTIONS:
Net investment income (0.59) (0.58) (0.58)
In excess of net investment income - (0.01) -
Net realized gains - - -
---------- ---------- ----------
Total distributions (0.59) (0.59) (0.58)
---------- ---------- ----------
Net increase (decrease) in net asset value 0.27 (0.08) 0.90
---------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 10.31 $ 10.04 $ 10.12
========== ========== ==========
Total Return (excluding sales charges) 8.86% 5.28% 16.47%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 41,328 $ 39,497 $ 39,777
Ratio of expenses to average net assets 1.07% 1.06% 1.08%
Ratio of expenses to average net assets(*) 1.22% 1.21% 1.23%
Ratio of net investment income to average net assets 5.85% 5.86% 5.92%
Ratio of net investment income to average net assets(*) 5.70% 5.71% 5.77%
Portfolio turnover (b)(c) 26.58% 9.30% 25.40%
-----------------------------------------------------------------------------------------------------------------
</TABLE>
(*) RATIOS CALCULATED AS IF NO EXPENSES WERE WAIVED OR REIMBURSED.
(a) ANNUALIZED.
(b) PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING AMONG THE CLASSES OF SHARES.
(c) NON-ANNUALIZED.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
N A T I O N W I D E 4 5
<PAGE> 48
FINANCIAL HIGHLIGHTS NATIONWIDE(R) MONEY MARKET FUND
--------------------------------------------------------------------------------
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
---------------------------------------
SERVICE CLASS (a), (d)
---------------------------------------
SIX MONTHS PERIOD FROM
ENDED APRIL 30, JANUARY 4, 1999
2000 TO OCTOBER 31,
(UNAUDITED) 1999
---------------------------------------
<S> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 1.00 $ 1.00
----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.03 0.04
----------- -----------
Total from investment operations 0.03 0.04
----------- -----------
DISTRIBUTIONS:
Net investment income (0.03) (0.04)
----------- -----------
Total distributions (0.03) (0.04)
----------- -----------
NET ASSET VALUE--END OF PERIOD $ 1.00 $ 1.00
=========== ===========
Total Return (excluding sales charges) 2.59% 3.69%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 150,597 $ 22,295
Ratio of expenses to average net assets 0.75%(a) 0.64%(b)
Ratio of expenses to average net assets(*) 0.78%(a) 0.79%(b)
Ratio of net investment income to average net assets 5.26%(a) 4.74%(b)
Ratio of net investment income to average net assets(*) 5.23%(a) 4.59%(b)
------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
SIX MONTHS PRIME SHARES (c)
ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000 -------------------------------------------------------------
(UNAUDITED) (c) 1999 (c) 1998 (d) 1997 1996 1995
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.03 0.05 0.05 0.05 0.05 0.05
Net realized gain (loss) and unrealized
appreciation (depreciation) - - - - - -
---------- ---------- ---------- -------- -------- --------
Total from investment operations 0.03 0.05 0.05 0.05 0.05 0.05
---------- ---------- ---------- -------- -------- --------
DISTRIBUTIONS:
Net investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.05)
---------- ---------- ---------- -------- -------- --------
Total distributions (0.03) (0.05) (0.05) (0.05) (0.05) (0.05)
---------- ---------- ---------- -------- -------- --------
NET ASSET VALUE--END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ======== ======== ========
Total Return (excluding sales charges) 2.64% 4.61% 5.15% 5.07% 5.05% 5.46%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $1,222,507 $1,345,342 $1,048,689 $820,657 $729,500 $604,711
Ratio of expenses to average net assets 0.65%(a) 0.61% 0.59% 0.59% 0.60% 0.62%
Ratio of expenses to average net assets(*) N/A N/A 0.64% 0.64% 0.65% 0.67%
Ratio of net investment income to average net assets 5.24%(a) 4.52% 4.96% 4.96% 4.93% 5.34%
Ratio of net investment income to average net assets(*) N/A N/A 4.91% 4.91% 4.88% 5.29%
</TABLE>
(*) RATIOS CALCULATED AS IF NO EXPENSES WERE WAIVED OR REIMBURSED.
(a) THE NATIONWIDE MONEY MARKET FUND SERVICE CLASS SHARES WERE FIRST OFFERED TO
THE PUBLIC ON JANUARY 4, 1999. THESE SHARES WERE FORMERLY CLASS R SHARES.
(b) ANNUALIZED.
(c) ON JANUARY 4, 1999, THE EXISTING SHARES OF THE NATIONWIDE MONEY MARKET FUND
WERE RENAMED PRIME SHARES.
(d) COMBINED DATA FOR THE FUND PRIOR TO AND AFTER REORGANIZATION.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
4 6 N A T I O N W I D E
<PAGE> 49
[ARTWORK]
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
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 31, 1997, as subsequently amended, and
is registered under the Investment Company Act of 1940, as amended. The Trust
offers shares in twenty-eight separate series, or mutual funds, each with its
own investment objectives. This report contains the financial statements and
financial highlights of the eight funds listed below (the "Funds"):
- Nationwide Mid Cap Growth Fund
- Nationwide Growth Fund
- Nationwide Fund
(together referred to as the "Stock Funds")
- Nationwide Bond Fund
- Nationwide Tax-Free Income Fund
- Nationwide Long-Term U.S. Government Bond Fund
- Nationwide Intermediate U.S. Government Bond Fund
(together referred to as the "Bond Funds")
- Nationwide Money Market Fund
(referred to as the "Money Market Fund")
The Stock and Bond Funds currently offer Class A, Class B, and Class D shares.
Class A and B shares are available to all investors. The Class D shares are
available to a limited group of investors, generally those who were shareholders
of the predecessor funds at the time of the reorganization on May 11, 1998. The
Class A and Class D shares of the Stock Funds are purchased with a maximum 5.75%
and 4.50% front-end sales load, respectively. The Class A and Class D shares of
the Bond Funds are purchased with a maximum 4.50% front-end sales load. The
Class B shares are subject to a 5.00% maximum deferred sales charge (known as a
contingent deferred sales charge or CDSC) if you sell your shares within six
years of purchase and contain a conversion feature to Class A shares after you
have held them for seven years. Sales charges are paid to the Fund's
distributor, Nationwide Advisory Services, Inc. (NAS) which either retains them
or pays a selling representative.
The Money Market Fund currently offers Prime and Service Class (formerly known
as Class R) shares. The Prime Shares of the Fund are available to all investors.
The Service Class is available to a limited group of investors, such as
insurance company separate accounts and tax-exempt employee benefit plans.
Neither class has any sales charges. The Service Class commenced operations on
January 4, 1999, and at that time the existing shares of the Money Market Fund
were renamed Prime Shares.
The Class A shares pay distribution and/or service (12b-1) fees under a
Distribution Plan of 0.25%. The Class B shares of the Stock Funds and Bond Funds
pay 1.00% and 0.85%, respectively, of 12b-1 fees. The Money Market Fund Service
Class shares pay 0.15% of 12b-1 fees. These fees are either retained or paid by
NAS to brokers for distribution and shareholders services.
In accordance with these procedures, the amortized cost valuations are regularly
compared to market quotations provided by an independent pricing agent or
principal market maker. The extent of deviations, if any, of the current net
asset value per share calculated using available market quotations from the
amortized cost per share, will be determined at such intervals as the Trustees
deem appropriate. If the deviation from amortized cost per share exceeds 1/2 of
1%, the Trustees will consider appropriate action, which might include a
revaluation of all, or an appropriate portion of the Funds assets based on
current market factors.
The Class A and Class D of the Stock and Bond Funds and the Prime and Service
Classes of the Money Market Fund pay administrative service fees of up to 0.25%.
These fees are paid to brokers and other entities that provide administrative
support services to the beneficial owners of the applicable shares.
(a) SECURITY VALUATION
(1) Mid Cap Growth, Growth, Fund, Bond, Tax-Free Income, Long-Term and
Intermediate U.S. Government Bond Funds:
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.
U.S Government securities are valued at the last quoted bid price
as provided by an independent pricing agent. All other debt
securities are valued by a combination of daily quotes and matrix
evaluations as provided by an independent pricing agent.
(2) Money Market Fund:
Securities are valued at amortized cost, which approximates market
value, in accordance with Rule 2a-7 of the Investment Company Act
of 1940, as amended.
(3) All Funds:
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.
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
N A T I O N W I D E 4 7
<PAGE> 50
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
fair value in the judgement of the Fund's administrator or
sub-administrator, are valued in accordance with procedures
authorized by the Trust's Board of Trustees.
The Trustees have approved amortized cost procedures for short-term
money market obligations that have 60 days or less to maturity
which are purchased by a non-money market fund.
(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 may include, where applicable, the pro rata
amortization of premium or discount.
(c) FEDERAL INCOME TAXES
Each Fund's policy is to qualify as a regulated investment company under
the Internal Revenue Code, and to distribute all taxable income, if any,
to its shareholders. Therefore no provision has been made for federal
income taxes as it is the intention of the Funds to continue such
qualification. To the extent net realized gains are offset through the
application of a capital loss carryover, they will not be distributed to
shareholders and will be retained by the applicable Fund. Withholding
taxes have been paid or provided for in accordance with the applicable
tax rates and rules.
As of the fiscal year ended October 31, 1999, the Bond and Tax-Free
Income Funds had net capital loss carry forwards in the amounts of
$7,241,215 and $1,065,849, respectively. If unused, the Bond Fund carry
forwards will expire within 3 to 8 years and the Tax-Free Income Fund
carry forwards will expire within 5 to 8 years.
(d) DIVIDENDS TO SHAREHOLDERS
(1) Mid Cap Growth, Growth, and Fund:
Dividend income, if any, is declared and paid quarterly and is
recorded on the ex-dividend date.
(2) Bond, Tax-Free Income, Long-Term and Intermediate U.S. Government
Bond, and Money Market:
Dividend income is declared and recorded daily and paid monthly.
(3) All Funds
Distributable net realized capital gains, if applicable, are
declared and distributed at least annually.
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 Funds.
As of the fiscal year ended October 31, 1999, undistributed net
investment income, undistributed net realized gains and capital
paid in excess of par value have been adjusted. Negative amounts
represent credits and positive amounts represent debits. The
adjustments are as follows:
<TABLE>
<CAPTION>
CAPITAL PAID UNDISTRIBUTED UNDISTRIBUTED
IN EXCESS OF NET INVESTMENT CAPITAL
PAR VALUE INCOME GAIN
---------------------------------------------
<S> <C> <C> <C>
Mid Cap Growth $ (1,331) $ 16,206 $ (14,875)
Growth Fund 142,389 276,766 (419,155)
Tax Free Income Fund (1,822) 222,236 (220,414)
</TABLE>
(e) EXPENSES
General expenses of the Trust, not directly attributable to a Fund or to
any class of shares, are allocated to the Funds based upon each Fund's
relative average net assets or some other appropriate basis, as approved
by the Trust's Board of Trustees. Once these expenses are allocated to a
Fund, they are sub-allocated to the classes based on total settled
shares outstanding of each class, for the Bond and Money Market Funds,
and total shares outstanding of each class for Stock Funds.
Direct expenses of a Fund are applied to that Fund and sub-allocated to
the classes in the methods mentioned above.
Direct expenses of a class are allocated to that class unless otherwise
directed by the Trust's Board of Trustees. For example, distribution and
administrative servicing 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. 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.
4 8 N A T I O N W I D E
<PAGE> 51
[PICTURE OF SMALL AREA
NOTES TO FINANCIAL STATEMENTS ON U.S. CURRENCY]
--------------------------------------------------------------------------------
APRIL 30, 2000
(g) CAPITAL SHARE TRANSACTIONS
Transactions in class level shares of the Funds were as follows:
<TABLE>
<CAPTION>
------------------------------------ ------------------------------------
MID CAP GROWTH GROWTH
------------------------------------ ------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
CAPITAL TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES:
Proceeds from shares issued $ 1,105,272 $ 1,208,278 $ 3,480,447 $ 5,959,912
Dividends reinvested 98,510 5,130 1,124,619 58,125
Cost of shares redeemed (323,430) (327,179) (1,569,991) (1,715,316)
------------- ------------- ------------- -------------
Change in net assets $ 880,352 $ 886,229 $ 3,035,075 $ 4,302,721
============= ============= ============= =============
CLASS B SHARES:
Proceeds from shares issued $ 883,465 $ 697,347 $ 2,686,591 $ 4,835,276
Dividends reinvested 69,708 4,303 865,147 35,528
Cost of shares redeemed (167,711) (75,089) (663,454) (549,605)
------------- ------------- ------------- -------------
Change in net assets $ 785,462 $ 626,561 $ 2,888,284 $ 4,321,199
============= ============= ============= =============
----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
----------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Proceeds from shares issued $ 5,632,699 $ 1,585,850 $ 37,339,476 $ 112,264,841
Dividends reinvested 680,095 118,206 130,933,455 19,012,513
Cost of shares redeemed (2,153,545) (1,920,802) (96,287,551) (164,412,748)
------------- ------------- ------------- -------------
Change in net assets $ 4,159,249 $ 216,746 $ 71,985,380 $(104,567,152)
============= ============= ============= =============
----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
SHARE TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
----------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Issued 49,827 62,120 203,071 332,934
Reinvested 5,223 291 66,965 3,652
Redeemed (15,270) (16,540) (93,364) (96,101)
------------- ------------- ------------- -------------
Change in shares 39,780 45,871 176,672 240,485
============= ============= ============= =============
CLASS B SHARES:
Issued 40,402 36,519 162,366 271,942
Reinvested 3,760 245 52,082 2,251
Redeemed (7,884) (3,838) (39,899) (30,518)
------------- ------------- ------------- -------------
Change in shares 36,278 32,926 174,549 243,675
============= ============= ============= =============
----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
----------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Issued 238,303 80,891 2,212,463 6,440,118
Reinvested 36,115 6,712 7,793,704 1,191,011
Redeemed (97,450) (99,114) (5,706,618) (9,425,421)
------------- ------------- ------------- -------------
Change in shares 176,968 (11,511) 4,299,549 (1,794,292)
============= ============= ============= =============
----------------------------------------------------------------------------------------------------------
</TABLE>
N A T I O N W I D E 4 9
<PAGE> 52
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
APRIL 30, 2000
(g) CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
---------------------------------- ------------------------------------
FUND BOND
---------------------------------- ------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
CAPITAL TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES:
Proceeds from shares issued $ 13,528,610 $ 41,367,193 $ 1,208,539 $ 2,757,274
Dividends reinvested 3,748,350 506,123 94,900 133,426
Cost of shares redeemed (10,055,472) (9,499,936) (1,169,972) (872,890)
------------- ------------- ------------- -------------
Change in net assets $ 7,221,488 $ 32,373,380 $ 133,467 $ 2,017,810
============= ============= ============= =============
CLASS B SHARES:
Proceeds from shares issued $ 8,437,357 $ 33,425,626 $ 263,161 $ 1,522,212
Dividends reinvested 2,901,009 259,935 46,364 64,331
Cost of shares redeemed (6,054,263 (3,489,957) (167,038) (315,102)
------------- ------------- ------------- -------------
Change in net assets $ 5,284,103 $ 30,195,604 $ 142,487 $ 1,271,441
============= ============= ============= =============
---------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
---------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Proceeds from shares issued $ 52,459,280 $ 348,376,075 $ 7,698,439 $ 27,406,883
Dividends reinvested 152,298,427 51,361,279 3,293,138 6,612,729
Cost of shares redeemed (323,480,904) (302,247,342) (19,917,588) (34,025,965)
------------- ------------- ------------- -------------
Change in net assets $(118,723,197) $ 97,490,012 $ (8,926,011) $ (6,353)
============= ============= ============= =============
---------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
SHARE TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
---------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Issued 445,016 1,282,068 135,017 290,848
Reinvested 127,165 16,287 10,710 14,327
Redeemed (340,417) (292,316) (131,883) (94,109)
------------- ------------- ------------- -------------
Change in shares 231,764 1,006,039 13,844 211,066
============= ============= ============= =============
CLASS B SHARES:
Issued 281,862 1,039,876 29,476 159,806
Reinvested 99,320 8,445 5,290 6,912
Redeemed (206,806) (108,903) (18,726) (33,885)
------------- ------------- ------------- -------------
Change in shares 174,376 939,418 16,040 132,833
============= ============= ============= =============
---------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
---------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Issued 1,752,771 10,884,336 863,764 2,875,713
Reinvested 5,195,105 1,652,268 371,019 704,599
Redeemed (10,950,600) (9,935,878) (2,234,947) (3,591,494)
------------- ------------- ------------- -------------
Change in shares (4,002,724) 3,176,726 (1,000,164) (11,182)
============= ============= ============= =============
---------------------------------------------------------------------------------------------------------
</TABLE>
5 0 N A T I O N W I D E
<PAGE> 53
[PICTURE OF SMALL AREA
NOTES TO FINANCIAL STATEMENTS ON U.S. CURRENCY]
--------------------------------------------------------------------------------
APRIL 30, 2000
(g) CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
--------------------------------- -------------------------------- ----------------------------------
TAX-FREE INCOME LONG-TERM U.S. GOV'T. BOND INTERMEDIATE U.S. GOV'T. BOND
--------------------------------- -------------------------------- ----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
CAPITAL TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES:
Proceeds from shares issued $ 283,300 $ 2,259,772 $ 1,812,695 $ 2,383,010 $ 13,877,347 $ 57,314,409
Dividends reinvested 38,489 42,319 86,634 54,419 1,572,668 478,395
Cost of shares redeemed (418,311) (359,948) (572,617) (509,694) (10,908,244) (8,379,780)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets $ (96,522) $ 1,942,143 $ 1,326,712 $ 1,927,735 $ 4,541,771 $ 49,413,024
============ ============ ============ ============ ============ ============
CLASS B SHARES:
Proceeds from shares issued $ 839,901 $ 3,170,437 $ 157,749 $ 1,806,997 $ 116,578 $ 962,615
Dividends reinvested 62,217 93,504 63,632 51,218 24,189 28,887
Cost of shares redeemed (607,081) (710,390) (343,604) (239,829) (135,870) (94,251)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets $ 295,037 $ 2,553,551 $ (122,223) $ 1,618,386 $ 4,897 $ 897,251
============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Proceeds from shares issued $ 4,207,840 $ 12,209,548 $ 227,404 $ 2,852,827 $ 7,090,914 $ 27,360,328
Dividends reinvested 4,082,013 9,529,591 882,727 1,116,872 1,336,489 2,493,163
Cost of shares redeemed (23,777,377) (38,410,675) (4,160,956) (9,775,714) (9,458,180) (24,992,264)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets $(15,487,524) $(16,671,536) $ 3,050,825) $ (5,806,015) $ (1,030,777) $ 4,861,227
============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
SHARE TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Issued 28,909 217,949 169,588 211,133 1,422,498 5,785,682
Reinvested 3,921 4,141 8,149 4,914 161,285 48,259
Redeemed (42,789) (34,114) (53,663) (45,519) (1,118,585) (848,159)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares (9,959) 186,976 124,074 170,528 465,198 4,985,782
============ ============ ============ ============ ============ ============
CLASS B SHARES:
Issued 85,835 303,984 14,719 159,735 11,954 94,595
Reinvested 6,376 9,084 5,988 4,626 2,481 2,866
Redeemed (62,528) (68,657) (32,454) (21,791) (13,784) (9,464)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares 29,683 244,411 (11,747) 142,570 651 87,997
============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Issued 431,730 1,171,056 21,421 249,512 724,012 2,652,093
Reinvested 418,685 919,229 83,002 99,457 137,074 245,086
Redeemed (2,438,489) (3,701,925) (391,150) (875,642) (969,838) (2,424,788)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares (1,588,074) (1,611,640) (286,727) (526,673) (108,752) 472,391
============ ============ ============ ============ ============ ============
</TABLE>
N A T I O N W I D E 5 1
<PAGE> 54
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
APRIL 30, 2000
(g) CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
----------------------------------------
MONEY MARKET
----------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
CAPITAL TRANSACTIONS: (UNAUDITED) 1999 (a)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PRIME SHARES:
Proceeds from shares issued $ 827,512,649 $ 1,424,550,062
Dividends reinvested 33,286,419 51,257,113
Cost of shares redeemed (983,626,137) (1,179,153,929)
--------------- ---------------
Change in net assets $ (122,827,069) $ 296,653,246
=============== ===============
-------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD FROM
APRIL 30, 2000 JANUARY 4, 1999 TO
(UNAUDITED) OCTOBER 31, 1999 (a)
-------------------------------------------------------------------------------------------------------------
SERVICE CLASS:
Proceeds from shares issued $ 362,026,210 $ 33,525,592
Dividends reinvested 2,492,182 182,819
Cost of shares redeemed (236,214,749) (11,413,801)
--------------- ---------------
Change in net assets $ 128,303,643 $ 22,294,610
=============== ===============
-------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
SHARE TRANSACTIONS: (UNAUDITED) 1999 (a)
-------------------------------------------------------------------------------------------------------------
PRIME SHARES:
Issued 827,512,649 1,424,571,246
Reinvested 33,286,419 51,257,113
Redeemed (983,626,137) (1,179,153,929)
--------------- ---------------
Change in shares (122,827,069) 296,674,430
=============== ===============
-------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD FROM
APRIL 30, 2000 JANUARY 4, 1999 TO
(UNAUDITED) OCTOBER 31, 1999 (a)
-------------------------------------------------------------------------------------------------------------
SERVICE CLASS:
Issued 362,026,210 33,525,592
Reinvested 2,492,182 182,819
Redeemed (236,214,749) (11,413,801)
--------------- ---------------
Change in shares 128,303,643 22,294,610
=============== ===============
-------------------------------------------------------------------------------------------------------------
</TABLE>
(a) ON JANUARY 4, 1999, THE SERVICE CLASS (FORMALLY KNOWN AS CLASS R SHARES)
WERE FIRST OFFERED TO THE PUBLIC AND THE EXISTING SHARES OF THE MONEY
MARKET FUND WERE RENAMED PRIME SHARES.
5 2 N A T I O N W I D E
<PAGE> 55
[PICTURE OF SMALL AREA
NOTES TO FINANCIAL STATEMENTS ON U.S. CURRENCY]
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
2. TRANSACTIONS WITH AFFILIATES
Under the terms of the Investment Advisory Agreement, Villanova Mutual Fund
Capital Trust ("VMF") manages the investment of the assets and supervises the
daily business affairs of the Funds. VMF also manages the Fund's investments and
have the responsibility for making all investment decisions for the Funds. Under
the terms of the investment advisory agreement, each Fund pays VMF a management
fee, based on the Fund's average daily net assets. Additional information
regarding investment advisory fees paid or payable to VMF is as follows for the
six month period ended April 30, 2000:
<TABLE>
<CAPTION>
ADVISORY FEES ADVISORY FEE
FUND PAID SCHEDULE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mid Cap Growth $ 46,318 Up to $250 million 0.60%
Growth 2,959,841 On the next $750 million 0.575%
Fund 6,470,766 On the next $1 billion 0.55%
On the next $3 billion 0.525%
On $5 billion and more 0.50%
-----------------------------------------------------------------------------------------------------------------------
Bond 307,686 Up to $250 million 0.50%
Tax-Free Income 556,914 On the next $750 million 0.475%
Long-Term U.S. Gov't 85,171 On the next $1 billion 0.45%
Intermediate U.S. Gov't 259,123 On the next $3 billion 0.425%
On $5 billion and more 0.40%
-----------------------------------------------------------------------------------------------------------------------
Money Market 2,789,123 Up to $1 billion; 0.40%
On the next $1 billion 0.38%
On the next $3 billion 0.36%
On $5 billion and more 0.34%
</TABLE>
VMF has voluntarily agreed to waive advisory fees, and if necessary,
reimburse expenses (except for Rule 12b-1 and Administrative Service Fees)
of certain Funds in order to limit annual Fund operating expenses at or
below stated expense caps. The following table illustrates the expense
caps for each class of share for the six month period ended April 30,
2000:
<TABLE>
<CAPTION>
EXPENSE CAPS
CLASS A CLASS B CLASS D SERVICE
SHARES SHARES SHARES CLASS
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mid Cap Growth 1.25% 2.00% 1.00% -
Long-Term U.S. Gov't 1.04% 1.64% 0.79% -
Intermediate U.S. Gov't 0.99% 1.64% 0.79% -
Money Market - - - 0.75%
</TABLE>
During the six month period ended April 30, 2000, VMF reduced expenses for
such Funds as follows:
<TABLE>
<CAPTION>
OTHER TOTAL FEES
TOTAL FUND FEES FEES WAIVED/ NET FUND
EXPENSES WAIVED REIMBURSED REIMBURSED EXPENSES
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Mid Cap Growth $ 102,271 $ 16,459 $ - $ 16,459 $ 85,812
Long-Term U.S. Gov't 162,972 17,818 - 17,818 145,154
Intermediate U.S. Gov't 482,566 3,668 - 3,668 478,898
Money Market 4,688,064 14,956 - 14,956 4,673,108
</TABLE>
N A T I O N W I D E 5 3
<PAGE> 56
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act,
NAS, the Funds' Distributor, is compensated by the Funds for expenses
associated with the distribution of shares of the Funds. These fees, based
on average daily net assets of the respective classes, are not to exceed an
annual rate of 0.25% for Class A, and Service Class shares, 1.00% and 0.85%
for the Class B shares of the Stock and Bond Funds (respectively), and
0.15% for the Service Class of the Money Market Fund. Additional
information regarding distribution fees paid or payable to NAS is as
follows for the six month period ended April 30, 2000:
<TABLE>
<CAPTION>
CLASS A CLASS B SERVICE
SHARES SHARES CLASS
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mid Cap Growth $ 2,230 $ 6,562 $ -
Growth 11,250 36,237 -
Fund 69,669 224,642 -
Bond 4,131 7,127 -
Tax-Free Income 2,876 16,043 -
Long-Term U.S. Gov't 2,826 7,697 -
Intermediate U.S. Gov't 64,660 4,742 -
Money Market - - 11,423
</TABLE>
Under the terms of a Fund Administration Agreement, Villanova SA Capital
Trust ("VSA") receives fees from the Funds for providing various adminis-
trative and accounting services. These fees are calculated daily based on
each Fund's average daily net assets and paid monthly. Additional infor-
mation regarding fund administration fees paid or payable to VSA is as
follows for the six month period ended April 30, 2000:
<TABLE>
<CAPTION>
FUND FUND
ADMINISTRATION ADMINISTRATION
FEES FEE SCHEDULE
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mid Cap Growth $ 5,404
Growth 278,175
Fund 536,865 Up to $250 million 0.07%
Bond 43,076 On the next $750 million 0.05%
Tax-Free Income 77,967 On $1 billion and more 0.04%
Long-Term U.S. Gov't 11,924
Intermediate U.S. Gov't 36,278
Money Market 357,774
</TABLE>
Nationwide Investors Services, Inc. ("NISI"), a subsidiary of VSA, serves
as Transfer and Dividend Disbursing Agent for the Funds. For these
services, NISI receives fees at an annual rate of $16 per Stock Fund
account, $18 per Bond Fund account, $27 per Money Market Fund Prime Share
account and 0.01% of the average daily net assets of the Money Market
Service Class shares.
VSA has entered into agreements with BISYS Fund Services Ohio, Inc., to
provide sub-administration and sub-transfer agent services to the Funds.
Under the terms of an Administrative Services Plan, the Funds pay fees to
servicing organizations, such as broker-dealers and financial
institutions, which agree to provide administrative support services.
These services include, but are not limited, to the following:
establishing and maintaining shareholder accounts, processing purchase and
redemption transactions, arranging bank wires, performing shareholder
sub-accounting, answering inquires regarding the Fund, and other such
services. These fees are based on an annual rate of up to 0.25% of the
average daily net assets of the Class A and D shares of the Stock and Bond
Funds and Prime and Service Class shares of the Money Market Fund.
5 4 N A T I O N W I D E
<PAGE> 57
[PICTURE OF SMALL AREA
NOTES TO FINANCIAL STATEMENTS ON U.S. CURRENCY]
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
Pursuant to a Distributor Agreement, NAS serves as principal underwriter of
the Funds in the continuous distribution of their Class A and Class D
shares and receives commissions in the form of a front-end sales charge.
Such fees are deducted from and are not included in proceeds from sales of
Class A and D shares of the Stock and Bond Funds. From such fees, NAS pays
sales commissions, salaries, and other expenses in connection with
generating new sales of shares of the Funds. For the six month period ended
April 30, 2000, the commissions were collected as follows:
<TABLE>
<CAPTION>
CLASS A CLASS D
SHARES SHARES
-------------------------------------------------------------------------------------
<S> <C> <C>
Mid Cap Growth $ 25,154 $ 11,683
Growth 100,699 233,910
Fund 376,151 359,106
Bond 20,930 18,132
Tax-Free Income 6,871 37,608
Long-Term U.S. Gov't 4,852 1,883
Intermediate U.S. Gov't 6,516 6,160
</TABLE>
NAS also receives fees for services as principal underwriter for Class B
shares of the Funds. Such fees are contingent deferred sales charges
(CDSCs) ranging from 1% to 5% imposed on redemptions of Class B shares
which may cause the current value of an account to fall below the total
purchase payments made during the past five years. CDSCs collected on for
the six month period ended April 30, 2000, on redemptions of Class B
Shares were as follows:
<TABLE>
<CAPTION>
CLASS B
SHARES
----------------------------------------------------------------------------------
<S> <C>
Mid Cap Growth $ 22,534
Growth 90,755
Fund 319,982
Bond 9,527
Tax-Free Income 34,563
Long-Term U.S. Gov't 6,525
Intermediate U.S. Gov't 3,561
</TABLE>
N A T I O N W I D E 5 5
<PAGE> 58
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
3. BANK LOANS
NMF currently 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 Statements of Operations.
No compensating balances are required.
4. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding U.S. Government and short-term
securities) and purchases and sales of U.S. Government securities for the six
month period ended April 30, 2000, are summarized as follows:
<TABLE>
<CAPTION>
NON U.S. GOVERNMENT U.S. GOVERNMENT
SECURITIES SECURITIES
---------------------------------- ---------------------------------
PURCHASES SALES PURCHASES SALES
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mid Cap Growth $ 33,756,169 $ 27,746,230 $ - $ -
Growth 855,124,827 896,949,182 - -
Fund 752,372,752 1,062,995,122 - -
Bond 26,143,564 43,731,708 30,428,347 44,884,118
Tax-Free Income 12,233,454 30,520,612 - -
Long-Term U.S. Gov't - - 18,971,570 20,864,656
Intermediate U.S. Gov't - - 57,538,839 59,552,021
Money Market - - - -
</TABLE>
Realized gains and losses have been computed on the first-in, first-out
basis. Included in net unrealized appreciation at April 30, 2000, the following:
<TABLE>
<CAPTION>
GROSS GROSS NETREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mid Cap Growth $ 4,434,837 $ (1,307,370) $ 3,127,467
Growth 175,893,078 (35,673,687) 140,219,391
Fund 635,658,955 (66,180,452) 569,478,503
Bond 358,749 (6,466,036) (6,107,287)
Tax-Free Income 5,011,512 (6,963,525) (1,952,013)
Long-Term U.S. Gov't 249,286 (240,095) 9,191
Intermediate U.S. Gov't 771,899 (1,982,401) (1,210,502)
Money Market - - -
</TABLE>
5 6 N A T I O N W I D E
<PAGE> 59
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<TABLE>
<S> <C> <C>
TRUSTEES
Dimon R. McFerson Sue A. Doody Douglas F. Kridler
Chairman Columbus, Ohio Columbus, Ohio
Columbus, Ohio
Robert M. Duncan Arden L. Shisler
Dr. John C. Bryant Columbus, Ohio Dublin, Ohio
Cincinnati, Ohio
Dr. Thomas J. Kerr, IV David C. Wetmore
Dr. C. Brent DeVore Westerville, Ohio Reston, Virginia
Westerville, Ohio
OFFICERS
James F. Laird, Jr. - Treasurer CUSTODIAN
Elizabeth A. Davin - Secretary The Fifth Third Bank
Alaina V. Metz - Assistant Secretary 38 Fountain Square Plaza
Patricia J. Smith - Assistant Secretary Cincinnati, Ohio 45263-0001
Charles S. Bath - Assistant Treasurer
Taylor E. Drake - Assistant Treasurer LEGAL COUNSEL
Laurice A. Frysinger - Assistant Treasurer Dietrich, Reynolds & Koogler
Edwin P. McCausland, Jr. - Assistant Treasurer One Nationwide Plaza
Karen R. Tackett - Assistant Treasurer Columbus, Ohio 43215-2220
Nancy A. Wiser - Assistant Treasurer
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
INVESTMENT ADVISER Two Nationwide Plaza
Villanova Mutual Fund Capital Trust Columbus, Ohio 43215-2537
Three Nationwide Plaza
Columbus, Ohio DISTRIBUTOR
43216-1492 Nationwide Advisory Services, Inc.
Three Nationwide Plaza
TRANSFER AGENT Columbus, Ohio 43215-2220
Nationwide Investors Services, Inc.
P.O. Box 1492
Columbus, Ohio 43216-1492
</TABLE>
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(+)ABOUT PERFORMANCE
The performance of the funds, as reflected on pages 2-28, includes performance
of their respective predecessor funds prior to reorganization. In addition, the
performance of the class A and B shares prior to such date has been restated for
sales charges but not for fees applicable to class A and B. The reorganization
of the funds took place on May 11, 1998. The predecessor to the Mid Cap Growth
Fund was the Financial Horizons Investment Trust Growth Fund. The predecessor to
the Long-Term U.S. Government Bond Fund was the Financial Horizons Investment
Trust Government Bond Fund.
The Financial Horizons Municipal Bond Fund merged into the Tax-Free Income Fund.
The Financial Horizons Cash Reserve Fund merged into the Money Market Fund.
The Nationwide Investing Foundation III funds were preceded by funds of the
Nationwide Investing Foundation or Nationwide Investing Foundation II.
Inception-to-date class-specific total returns can be found in the Financial
Highlights, which start on page 39.
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This report is for the information of shareholders of the Nationwide((R)) Family
of Funds. It may be used as sales literature only when preceded or accompanied
by a current prospectus, which gives further details about the funds.
Nationwide(R) is a registered Federal Service mark of Nationwide Mutual
Insurance Company.
<PAGE> 60
[LOGO] NATIONWIDE(R)
FAMILY OF FUNDS
offered by Villanova Capital through Nationwide(R) Advisory
Services
Three Nationwide Plaza
Columbus, OH 43215-2220
Toll-Free Telephone Assistance - General Account Service and Exchanges:
1-800-848-0920
NAS NOW - Fund Information Available 24 Hours a Day, Seven Days a Week:
1-800-637-0012
Internet Site - www.nationwidefunds.com
NATIONWIDE FAMILY OF FUNDS
THREE NATIONWIDE PLAZA
COLUMBUS, OHIO 43215-2220
APRIL 2000
SEMI-ANNUAL REPORT
HS-401-M (C)2000, Villanova Capital
