<PAGE> 1
[PHOTOGRAPH]
SEMI-ANNUAL REPORT
PRESTIGE ADVISOR SERIES
2000
Nationwide(R)
Family of Funds April 30, 2000
<PAGE> 2
[PHOTOGRAPH]
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
Our Prestige Advisor Series, which marked one year of performance at the
close of fiscal 1999, offers investors the opportunity to choose from a
selection of funds that are sub-advised by nationally recognized money managers.
These managers are selected and monitored by Villanova Mutual Fund Capital
Trust, the series' investment adviser.
For the period November 1999 through April 2000, these funds trailed their
respective benchmarks. The six-month period included two divergent phases for
the stock market--one marked by the
<PAGE> 3
continued strength in the technology sector, the other by a rotation into value
stocks.
The sub-par performance of the Prestige funds can be attributed in part to
reluctance by the portfolio managers to make top-heavy bets on the technology
sector. Indeed, while technology stocks retreated sharply in March and April
after rallying substantially in 1999 and in the beginning of 2000, the sky-high
valuations of many of these issues are still difficult to justify on a
fundamental basis. What's more, the impressive returns of the benchmark indexes
were for the most part the result of very large gains in a narrow group of
stocks. The 15.6% gain in the Prestige Small Cap Fund, for example, trailed the
advance of the unmanaged Russell 2000 Index, which was propelled primarily by a
select list of technology-oriented growth stocks.
The unmanaged Standard & Poor's 500 Index, a barometer of large,
predominantly U.S.-based companies, rose 7.2% during the period. The unmanaged
Russell 2000 Index, a measure of the performance of smaller stocks, added
18.7%, while the unmanaged Standard & Poor's MidCap 400 Index improved 21.3%.
The Morgan Stanley Capital International EAFE Index, an unmanaged indicator of
performance among international stocks, rose 6.8%.
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 interest 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.
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
PRESIDENT
CHIEF EXECUTIVE OFFICER
VILLANOVA CAPITAL
CONTENTS [PHOTOGRAPH]
--
1 Message to
Shareholders
--
2 Fund Highlights
--
5 Large Cap Value Fund
--
8 Large Cap Growth Fund
--
13 Balanced Fund
--
20 Small Cap Fund
--
26 International Fund
--
30 Statements of Assets
and Liabilities
--
32 Statements of
Operations
--
33 Statements of Changes
in Net Assets
--
36 Financial Highlights
--
39 Notes to Financial
Statements
--
49 Trustees and
Officers
<PAGE> 4
PRESTIGE ADVISOR SERIES(SM) HIGHLIGHTS
--------------------------------------------------------------------------------
PRESTIGE LARGE CAP VALUE FUND
FUND PERFORMANCE - INSTITUTIONAL SERVICE CLASS(*)
$10,000 Lump Sum Investment
[GRAPH]
INITIAL PRESTIGE REINVESTED DISTRIBUTIONS
LARGE CAP VALUE PRESTIGE LARGE CAP VALUE
11/2/98 10,000 10,000
4/30/99 11,270 11,314
4/30/00 10,070 10,238
THE VALUE OF AN INVESTMENT IN THE LARGE CAP VALUE FUND IS ILLUSTRATED IN THE
CHART ABOVE. A NET INVESTMENT OF $10,000 MADE ON 11/02/98 (THE FUND'S INCEPTION
DATE) WOULD HAVE EARNED AN AVERAGE ANNUAL COMPOUND RETURN OF 1.59% FOR THE
PERIOD ENDED APRIL 30, 2000. THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS
INVESTMENT TO $10,238. THE 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. THE INSTITUTIONAL SERVICE CLASS
SHARES ARE NOT SUBJECT TO FRONT-END SALES CHARGES.
PRESTIGE LARGE CAP GROWTH FUND
FUND PERFORMANCE - INSTITUTIONAL SERVICE CLASS(*)
$10,000 Lump Sum Investment
[GRAPH]
REINVESTED DISTRIBUTIONS INITIAL PRESTIGE
PRESTIGE LARGE CAP GROWTH LARGE CAP GROWTH
11/2/98 10,000 10,000
4/30/99 12,590 12,590
4/30/00 15,752 15,540
THE VALUE OF AN INVESTMENT IN THE LARGE CAP GROWTH FUND IS ILLUSTRATED IN THE
CHART ABOVE. A NET INVESTMENT OF $10,000 MADE ON 11/02/98 (THE FUND'S INCEP-
TION DATE) WOULD HAVE EARNED AN AVERAGE ANNUAL COMPOUND RETURN OF 35.64% FOR THE
PERIOD ENDED APRIL 30, 2000. THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS
INVESTMENT TO $15,752. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUC-
TUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE INSTITUTIONAL SERVICE
CLASS SHARES ARE NOT SUBJECT TO FRONT-END SALES CHARGES.
(*)FORMERLY KNOWN AS CLASS Y.
TOP FIVE HOLDINGS
(Composition Subject to Change)
As of April 30, 2000 VALUE PORTFOLIO%
--------------------------------------------------------------------------------
Advanced Micro Devices $1,430,325 4.79%
--------------------------------------------------------------------------------
United Health Group Inc. $1,033,656 3.46%
--------------------------------------------------------------------------------
Exxon Mobil Corp. $1,002,168 3.36%
--------------------------------------------------------------------------------
Wells Fargo Co. $ 932,118 3.12%
--------------------------------------------------------------------------------
Fed Ex Corp. $ 878,119 2.93%
--------------------------------------------------------------------------------
TOP FIVE HOLDINGS
(Composition Subject to Change)
As of April 30, 2000 VALUE PORTFOLIO%
--------------------------------------------------------------------------------
General Electric Co. $3,223,624 6.38%
--------------------------------------------------------------------------------
Cisco Systems, Inc. $3,022,705 5.98%
--------------------------------------------------------------------------------
Intel Corp. $2,333,349 4.62%
--------------------------------------------------------------------------------
Microsoft Corp. $1,604,249 3.16%
--------------------------------------------------------------------------------
Oracle Corp. $1,151,100 2.27%
--------------------------------------------------------------------------------
2 N A T I O N W I D E
<PAGE> 5
PRESTIGE ADVISOR SERIES(SM) HIGHLIGHTS CONTINUED [PHOTO]
--------------------------------------------------------------------------------
PRESTIGE BALANCED FUND
FUND PERFORMANCE - INSTITUTIONAL SERVICE CLASS(*)
$10,000 Lump Sum Investment
[GRAPH]
REINVESTED DISTRIBUTIONS INITIAL PRESTIGE
PRESTIGE BALANCED BALANCED
11/2/98 10,000 10,000
4/30/99 11,279 11,190
4/30/00 11,804 11,220
THE VALUE OF AN INVESTMENT IN THE BALANCED FUND IS ILLUSTRATED IN THE CHART
ABOVE. A NET INVESTMENT OF $10,000 MADE ON 11/02/98 (THE FUND'S INCEPTION DATE)
WOULD HAVE EARNED AN AVERAGE ANNUAL COMPOUND RETURN OF 11.77% FOR THE PERIOD
ENDED APRIL 30, 2000. THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT
TO $11,804. THE 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. THE INSTITUTIONAL SERVICE CLASS SHARES ARE
NOT SUBJECT TO FRONT-END SALES CHARGES.
PRESTIGE SMALL CAP FUND
FUND PERFORMANCE - INSTITUTIONAL SERVICE CLASS(*)
$10,000 Lump Sum Investment
[GRAPH]
REINVESTED DISTRIBUTIONS INITIAL PRESTIGE
PRESTIGE SMALL CAP SMALL CAP
11/2/98 10,000 10,000
4/30/99 10,657 10,630
4/30/00 12,984 12,830
THE VALUE OF AN INVESTMENT IN THE SMALL CAP FUND IS ILLUSTRATED IN THE CHART
ABOVE. A NET INVESTMENT OF $10,000 MADE ON 11/02/98 (THE FUND'S INCEPTION DATE)
WOULD HAVE EARNED AN AVERAGE ANNUAL COMPOUND RETURN OF 19.15% FOR THE PERIOD
ENDED APRIL 30, 2000. THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT
TO $12,984. THE 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. THE INSTITUTIONAL SERVICE CLASS SHARES ARE
NOT SUBJECT TO FRONT-END SALES CHARGES.
(*)FORMERLY KNOWN AS CLASS Y.
TOP FIVE HOLDINGS
(Composition Subject to Change)
As of April 30, 2000 VALUE PORTFOLIO%
--------------------------------------------------------------------------------
FNMA $475,734 4.50%
--------------------------------------------------------------------------------
US Treasury $439,172 4.15%
--------------------------------------------------------------------------------
US Treasury $403,978 3.82%
--------------------------------------------------------------------------------
GNMA $403,856 3.82%
--------------------------------------------------------------------------------
Intel Corp. $266,305 2.52%
--------------------------------------------------------------------------------
TOP FIVE HOLDINGS
(Composition Subject to Change)
As of April 30, 2000 VALUE PORTFOLIO%
--------------------------------------------------------------------------------
Capital Automotive REIT $241,118 0.89%
--------------------------------------------------------------------------------
Radian Group, Inc. $239,407 0.88%
--------------------------------------------------------------------------------
Insituform Tech-CI A $231,581 0.86%
--------------------------------------------------------------------------------
Dallas Semiconductor Corp. $227,568 0.84%
--------------------------------------------------------------------------------
Three Five Systems, Inc. $223,299 0.83%
--------------------------------------------------------------------------------
N A T I O N W I D E 3
<PAGE> 6
PRESTIGE ADVISOR SERIES(SM) HIGHLIGHTS CONTINUED
--------------------------------------------------------------------------------
PRESTIGE INTERNATIONAL FUND
FUND PERFORMANCE - INSTITUTIONAL SERVICE CLASS(*)
$10,000 Lump Sum Investment
[GRAPH]
REINVESTED DISTRIBUTIONS INITIAL PRESTIGE
PRESTIGE INTERNATIONAL INTERNATIONAL
11/2/98 10,000 10,000
4/30/99 11,092 11,050
4/30/00 11,904 11,710
THE VALUE OF AN INVESTMENT IN THE INTERNATIONAL FUND IS ILLUSTRATED IN THE CHART
ABOVE. A NET INVESTMENT OF $10,000 MADE ON 11/02/98 (THE FUND'S INCEPTION DATE)
WOULD HAVE EARNED AN AVERAGE ANNUAL COMPOUND RETURN OF 12.41% FOR THE PERIOD
ENDED APRIL 30, 2000. THE CHART ABOVE ILLUSTRATES THE GROWTH OF THIS INVESTMENT
TO $11,904. THE 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. THE INSTITUTIONAL SERVICE CLASS SHARES ARE
NOT SUBJECT TO FRONT-END SALES CHARGES.
(*)FORMERLY KNOWN AS CLASS Y.
TOP FIVE HOLDINGS BY COUNTRY
(Composition Subject to Change)
As of April 30, 2000 VALUE PORTFOLIO%
--------------------------------------------------------------------------------
Japan $3,837,337 23.36%
--------------------------------------------------------------------------------
Great Britain (U.K.) $3,281,237 19.98%
--------------------------------------------------------------------------------
France $2,116,624 12.89%
--------------------------------------------------------------------------------
Germany $1,745,188 10.63%
--------------------------------------------------------------------------------
Netherlands $1,050,625 6.40%
--------------------------------------------------------------------------------
4 N A T I O N W I D E
<PAGE> 7
[PICTURE OF SMALL
PRESTIGE ADVISOR SERIES(SM) AREA ON U.S.
-------------------------------------------------------------------------------
CURRENCY]
PRESTIGE LARGE CAP VALUE FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Prestige Large Cap Value
Fund (Class A shares) returned -1.70%(*) vs. a return of -0.99% for the Russell
1000 Value Index, the benchmark index.
Two very distinct market environments defined the six months ended April
30, 2000. The first four months featured the continued appreciation of growth
stocks, primarily in the technology sector. During March and April, the
technology sector declined dramatically, with the market quickly rotating into
traditional value stocks such as basic industries, pharmaceuticals and banks.
The Fund is significantly underweighted in the high-flying technology shares
that had appreciated dramatically prior to March; we simply find many of these
stocks to be substantially overvalued. The price/earnings ratio at the end of
March (on 2000 estimated earnings) for the technology/telecom sector was
estimated at 65, compared to 18 for the rest of the market. At these levels, it
would take about 20 years to close the gap using estimated growth rates of 23%
for the tech sector and 14% for everything else. We think this valuation gap
between the over-valuation of this sector and the rest of the market, especially
in more value-type stocks, is the most important dynamic in analyzing current
market trends. The rotation into value stocks was clearly reflected in
performance, as the Fund gained more than 13% during the month of March and 4%
in April.
The best performing stocks during the period included Nextel, UnitedHealth,
Advanced Micro Devices, and Fleet Boston. The worst performing stocks during the
period included CMS Energy, FedEx, and Raytheon.
The Fund's current industry overweightings continue to include basic
materials, health care, information technology services, transportation, and
electric utilities. These industries have largely been ignored (until March),
despite posting very impressive earnings growth. Industry underweightings
include energy, non-bank financials, technology, telecom services, and media &
publishing. We continue to underweight the Fund in stocks with strong positive
momentum and size, as we feel these stocks have significantly overrun their
underlying fundamental values.
BRINSON PARTNERS, INC. - SUBADVISOR
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTION REINVESTED.
FUND VALUE $29,965,568
PORTFOLIO COMPOSITION
(Subject to Change)
---------------------------------
Repurchase Agreement 2.8% [PIE CHART]
---------------------------------
Common Stock 96.8% [PHOTOS]
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
(For Period Ended April 30, 2000)
INSTITUTIONAL
CLASS A CLASS B SERVICE(3)
YEARS W/O SC(*) W/SC(1) W/O SC(*) W/SC(2) W/O SC
--------------------------------------------------------------------------
1 -9.64% -14.86% -10.78% -15.20% -9.51%
--------------------------------------------------------------------------
Life 1.40% -2.55% 0.32% -2.37% 1.59%
--------------------------------------------------------------------------
LIFE OF THE FUND IS SINCE 11/02/98.
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 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 INSTITUTIONAL SERVICE CLASS SHARES ARE NOT SUBJECT TO ANY SALES CHARGES.
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.
5 N A T I O N W I D E
<PAGE> 8
STATEMENT OF INVESTMENTS PRESTIGE LARGE CAP VALUE FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (96.8%)
--------------------------------------------------------------------------------
AIRLINES (2.9%)
23,300 Fed Ex Corp.(*) $ 878,119
---------
------------------------------------------------------------------------------
APPLIANCE & HOUSEHOLD DURABLE (2.7%)
22,300 Newell Rubbermaid, Inc. 561,681
10,800 York International Corp. 260,550
---------
822,231
---------
--------------------------------------------------------------------------------
BANKING (1.4%)
22,400 GreenPoint Financial Corp. 417,200
---------
--------------------------------------------------------------------------------
CHEMICALS (3.0%)
4,600 Dow Chemical Co. 519,800
8,100 Du Pont (E.I.) De Nemours & Co. 384,244
---------
904,044
---------
--------------------------------------------------------------------------------
CONSTRUCTION & BUILDING MATERIALS (5.3%)
17,000 Lafarge Corp. 429,250
13,800 Southdown, Inc. 802,125
8,700 USG Corp. 363,225
----------
1,594,600
----------
--------------------------------------------------------------------------------
CONSTRUCTION & HOUSING (2.0%)
27,000 Masco Corp. 605,813
---------
--------------------------------------------------------------------------------
DATA PROCESSING & REPRODUCTION (2.0%)
7,300 Computer Sciences Corp.(*) 595,406
---------
--------------------------------------------------------------------------------
ELECTRONICS (4.8%)
16,300 Advanced Micro Devices, Inc.(*) 1,430,325
---------
--------------------------------------------------------------------------------
ELECTRONICS & ELECTRICAL (4.2%)
15,200 Emerson Electric Co. 834,100
9,700 Grainger (W.W.), Inc. 420,738
---------
1,254,838
---------
--------------------------------------------------------------------------------
ENERGY SOURCES (5.6%)
3,500 Chevron Corp. 297,938
12,900 Exxon Mobil Corp. 1,002,168
24,900 IMC Global, Inc. 384,393
---------
1,684,499
---------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
FINANCIAL / BANKS (13.9%)
28,280 AmSouth Bancorp $ 411,828
10,000 Bank of America Corp. 490,000
25,600 Bank One Corp. 780,799
15,100 Fleet Boston Corp. 535,106
40,100 Hibernia Corp. 426,063
12,600 PNC Bank Corp. 549,675
22,700 Wells Fargo Co. 932,118
---------
4,125,589
---------
--------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (2.1%)
15,300 Household International, Inc. 638,775
---------
--------------------------------------------------------------------------------
HEALTH & PERSONAL CARE (1.8%)
12,200 Watson Pharmaceutical, Inc.(*) 548,238
---------
--------------------------------------------------------------------------------
HEALTH CARE (7.1%)
4,000 Johnson & Johnson Co. 330,000
24,700 St. Jude Medical, Inc.(*) 770,331
15,500 UnitedHealth Group, Inc. 1,033,656
---------
2,133,987
--------------------------------------------------------------------------------
INSURANCE (2.4%)
6,600 American International Group, Inc. 723,938
---------
--------------------------------------------------------------------------------
INSURANCE / LIFE (2.9%)
9,500 American General Corp. 532,000
9,500 Lincoln National Corp. 330,719
---------
862,719
---------
--------------------------------------------------------------------------------
MACHINERY & ENGINEERING (2.4%)
6,600 Illinois Tool Works, Inc. 422,813
8,000 Pentair, Inc. 306,000
---------
728,813
---------
--------------------------------------------------------------------------------
MOTOR VEHICLES (4.0%)
10,500 Johnson Controls, Inc. 664,782
18,300 Lear Corp.(*) 547,856
---------
1,212,638
--------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (1.2%)
14,800 Fort James Corp. 354,275
---------
--------------------------------------------------------------------------------
RAILROADS (3.4%)
28,500 Burlington Northern Santa Fe Corp. 687,563
18,400 Norfolk Southern Corp. 324,300
---------
1,011,863
---------
N A T I O N W I D E 6
<PAGE> 9
[PICTURE OF SMALL
AREA ON U.S.
CURRENCY]
-----------------
STATEMENT OF INVESTMENTS PRESTIGE LARGE CAP VALUE FUND CONTINUED
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (9.5%)
11,900 AT&T Corp. $ 555,581
10,400 Bell Atlantic Corp. 616,200
4,500 Nextel Communications, Inc.(*) 492,469
18,100 SBC Communications, Inc. 793,005
5,400 U.S. West, Inc. 384,413
----------
2,841,668
----------
--------------------------------------------------------------------------------
UTILITIES (12.2%)
20,700 Carolina Power & Light Co. 756,844
37,200 Central & Southwest Corp. 806,774
16,500 CMS Energy Corp. 313,500
13,300 Dominion Resources, Inc. 598,500
22,100 New Century Energies, Inc. 721,013
10,300 PECO Energy Co. 429,381
----------
3,626,012
----------
TOTAL COMMON STOCK (cost $28,718,734) 28,995,590
----------
PRINCIPAL SECURITY VALUE
REPURCHASE AGREEMENT (2.8%)
--------------------------------------------------------------------------------
$841,000 Fifth Third Bank 5.78%, 05/01/00,
Collateralized by $879,000
FNMA Pool #303741, 7.00%,
02/01/11 market value $858,673
(cost $841,000) $ 841,000
----------
TOTAL (cost $29,559,734) $29,836,590
===========
--------------------------------------------------------------------------------
The abbreviations in the above statement stand for the following:
FNMA Federal National Mortgage Association
(*) DENOTES A NON-INCOME PRODUCING SECURITY.
At April 30, 2000, the Fund's open futures contracts were as follows:
MARKET VALUE UNREALIZED
NUMBER OF COVERED BY APPRECIATION AT
CONTRACTS CONTRACT TYPE(**) EXPIRATION CONTRACTS 4/30/2000
--------------------------------------------------------------------------------
Purchase 4 Standard June $3,650,000 $1,027.01
& Poor's 500
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
(**)CASH PLEDGED AS COLLATERAL.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
N A T I O N W I D E 7
<PAGE> 10
PRESTIGE ADVISOR SERIES(SM)
--------------------------------------------------------------------------------
PRESTIGE LARGE CAP GROWTH FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Prestige Large Cap
Growth Fund (Class A shares) returned 15.77%(*) vs. a return of 18.71% for the
Russell 1000 Growth Index, the benchmark index.
When managing the Fund, we do not make size or sector bets. Our
quantitative process seeks out stocks with good momentum that also appear to be
good values. We prefer stocks favored by fundamental research analysts and less
volatile stocks with lower-than-average probability of reporting disappointing
earnings. Over the long term, these factors have led to excess returns, although
they typically do not all work well simultaneously. During the six-month
reporting period, despite the fact that our momentum theme was quite helpful in
the earlier part of the period, an abrupt shift in momentum later in the period
meant that our momentum focus was detrimental to returns. We experienced
positive returns from holdings with positive research analyst opinions, but
negative returns from holdings with lower volatility. Returns attributable to
any measure of value were unusually negative early in the period, as the spread
in returns between growth and value indices reached record levels and our value
theme experienced its worst month in February.
More evidence of the extremely unusual market environment in which we were
investing includes the high dispersion between the best and worst performing
stocks and the fact that the benchmark index return was concentrated in very few
stocks. Consequently, small exposures had a bigger-than-expected effect on
returns and the probability of being on the "right" side of a stock was lower
than average. Additionally, the best performing stocks were much more likely to
have no earnings, which compounded this problem because we typically prefer
stocks with earnings, as do most investors the majority of the time.
On a sector basis, the Fund's holdings in the technology, commercial
services and basic materials sectors outperformed their peers in the Russell
1000 Growth Index during the reporting period. However, the Fund's
transportation, utility, and energy stocks lagged their peers in the benchmark.
No significant changes to the Fund's investment strategy occurred
throughout the reporting period. However, we continually evaluate the
effectiveness of the process, and, as we find new features which we believe will
add to the Fund's performance, we may add these to the Fund's investment process
and strategy. We intend to remain fully invested in stocks and maintain our
disciplined, long-term approach to equity investing despite possible continued
volatility in the U.S. equity markets throughout the remainder of 2000. We
expect the market environment to settle down to a more "normal" level of
volatility, and once again focus on company fundamentals. We continue to believe
that through our combined qualitative and quantitative strategy for selecting
stocks, we have the potential to generate solid long-term returns for
shareholders of the Fund.
GOLDMAN SACHS ASSET MANAGEMENT - SUBADVISOR
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $50,791,531
PORTFOLIO COMPOSITION
(Subject to Change)
---------------------------------
Repurchase Agreement 7.4% [PIE CHART]
---------------------------------
Common Stock 92.1%
[PICTURES]
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
(For Period Ended April 30, 2000)
INSTITUTIONAL
CLASS A CLASS B SERVICE(3)
YEARS W/O SC(*) W/SC(1) W/O SC(*) W/SC(2) W/O SC
-----------------------------------------------------------------
1 24.97% 17.77% 24.33% 19.33% 25.11%
-----------------------------------------------------------------
Life 35.47% 30.19% 34.72% 32.39% 35.64%
-----------------------------------------------------------------
LIFE OF THE FUND IS SINCE 11/02/98.
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 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 INSTITUTIONAL SERVICE CLASS SHARES ARE NOT SUBJECT TO ANY SALES CHARGES.
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.
8 N A T I O N W I D E
<PAGE> 11
[PICTURE OF SMALL
AREA ON U.S.
CURRENCY]
STATEMENT OF INVESTMENTS PRESTIGE LARGE CAP GROWTH FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (92.1%)
--------------------------------------------------------------------------------
ADVERTISING SERVICES (0.2%)
2,100 Interpublic Group of Cos., Inc. (The) $ 86,100
---------
--------------------------------------------------------------------------------
AEROSPACE (1.0%)
4,900 Boeing Co. (The) 194,468
2,000 Northrop Grumman Corp. 141,750
3,000 United Technologies Corp. 186,563
---------
522,781
---------
--------------------------------------------------------------------------------
APPAREL (0.3%)
3,700 Nike, Inc. Class B 160,719
---------
--------------------------------------------------------------------------------
BATTERIES (0.1%)
1,700 Energizer Holdings, Inc.(*) 29,006
---------
--------------------------------------------------------------------------------
BEVERAGES / SOFT DRINK (1.6%)
6,100 Coca-Cola Co. 287,081
2,300 Coca-Cola Enterprises, Inc. 49,019
4,000 Pepsi Bottling Group, Inc. (The) 86,250
10,600 PepsiCo, Inc. 388,888
---------
811,238
---------
--------------------------------------------------------------------------------
BIOTECHNOLOGY (0.6%)
2,300 Chiron Corp.(*) 104,075
1,600 Immunex Corp.(*) 63,000
2,000 PE Corp-PE Biosystems Group 120,000
---------
287,075
---------
--------------------------------------------------------------------------------
BROADCAST MEDIA / CABLE TELEVISION (2.6%)
900 AT&T Corp. - Liberty Media Group Class A(*) 44,944
1,700 CBS Corp.(*) 99,875
1,800 Cox Communications, Inc. Class A(*) 77,063
1,600 EchoStar Communications Corp.(*) 101,900
6,200 Infinity Broadcasting Corp.(*) 210,412
7,300 Time Warner, Inc. 656,543
1,400 TV Guide, Inc.(*) 41,738
500 Univision Communications, Inc.(*) 54,625
1,000 Viacom, Inc. Class B(*) 54,375
---------
1,341,475
---------
--------------------------------------------------------------------------------
BUSINESS EQUIPMENT & SERVICES (0.6%)
1,800 Convergys Corp.(*) 79,200
200 eBay, Inc.(*) 31,838
300 Priceline.com, Inc.(*) 18,975
1,500 Yahoo!, Inc.(*) 195,375
---------
325,388
---------
--------------------------------------------------------------------------------
CAPITAL GOODS (6.6%)
20,500 General Electric Co. 3,223,624
800 Parker-Hannifin Corp. 37,200
1,800 Tyco International Ltd. 82,688
---------
3,343,512
---------
--------------------------------------------------------------------------------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
CHEMICALS (0.9%)
1,800 Air Products & Chemicals, Inc. $ 55,913
2,700 Dow Chemical Co. 305,100
2,000 Rohm & Haas Co. 71,250
---------
432,263
---------
--------------------------------------------------------------------------------
COMMUNICATION EQUIPMENT (0.1%)
600 Comverse Technology, Inc.(*) 53,513
-----------
--------------------------------------------------------------------------------
COMPUTER EQUIPMENT (14.2%)
2,700 Apple Computer, Inc.(*) 334,969
6,600 Dell Computer Corp.(*) 330,825
5,500 EMC Corp.(*) 764,156
100 Extreme Networks, Inc.(*) 5,763
700 Gateway, Inc.(*) 38,675
5,600 Hewlett-Packard Co. 756,000
18,400 Intel Corp. 2,333,349
6,400 International Business Machines Corp. 714,400
1,500 Lexmark International Group, Inc.(*) 177,000
3,400 Network Appliance, Inc.(*) 251,388
11,600 Sun Microsystems, Inc.(*) 1,066,474
4,100 VERITAS Software Corp.(*) 439,789
---------
7,212,788
----------
--------------------------------------------------------------------------------
COMPUTER SERVICES (0.1%)
700 COMPUTER SCIENCES CORP.(*) 57,094
---------
--------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES (13.5%)
2,400 Adobe Systems, Inc. 290,249
1,000 At Home Corp.(*) 18,625
1,000 Automatic Data Processing, Inc. 53,813
2,200 BEA Systems, Inc.(*) 106,149
700 C-Cube Microsystems, Inc.(*) 44,975
1,900 Cabletron Systems, Inc.(*) 43,463
200 CheckFree Holdings Corp.(*) 10,163
43,600 Cisco Systems, Inc.(*) 3,022,705
600 Citrix Systems, Inc.(*) 36,638
1,300 CMGI, Inc.(*) 92,625
200 CNET Networks, Inc.(*) 6,913
4,200 Comdisco, Inc. 130,462
750 Covad Communications Group, Inc.(*) 20,813
100 Critical Path, Inc.(*) 5,813
600 DoubleClick, Inc.(*) 45,525
2,500 DST Systems, Inc.(*) 185,468
200 EarthLink, Inc.(*) 3,775
500 Emulex Corp.(*) 22,688
1,100 Exodus Communications, Inc.(*) 97,281
6,100 First Data Corp. 296,993
400 i2 Technologies, Inc.(*) 51,700
600 InfoSpace, Inc.(*) 43,088
500 Inktomi Corp.(*) 76,969
800 Intuit, Inc.(*) 28,750
600 Lycos, Inc.(*) 27,900
200 Macromedia, Inc.(*) 17,400
400 Micromuse, Inc.(*) 39,250
N A T I O N W I D E 9
<PAGE> 12
STATEMENT OF INVESTMENTS PRESTIGE LARGE CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES (CONTINUED)
23,000 Microsoft Corp.(*) $ 1,604,249
400 Network Associates, Inc.(*) 10,175
200 Network Solutions, Inc.(*) 29,600
500 PSINet, Inc.(*) 11,594
400 RealNetworks, Inc.(*) 19,050
500 SanDisk Corp.(*) 45,813
100 Sapient Corp.(*) 7,919
1,300 Seagate Technology, Inc.(*) 66,056
900 Siebel Systems, Inc.(*) 110,587
700 Symantec Corp.(*) 43,706
400 Verio, Inc.(*) 15,025
500 VeriSign, Inc.(*) 69,688
600 Vignette Corp.(*) 28,913
---------
6,882,568
--------------------------------------------------------------------------------
CONSUMER DURABLE (0.8%)
6,600 Whirlpool Corp. 429,825
---------
--------------------------------------------------------------------------------
CONSUMER NON-CYCLICAL (1.8%)
800 Colgate-Palmolive Co. 45,700
2,300 Estee Lauder Co., Inc. (The) - Class A 101,488
2,200 Kimberly-Clark Corp. 127,738
10,700 Procter & Gamble Co. 637,987
---------
912,913
---------
--------------------------------------------------------------------------------
DRUGS (8.8%)
2,800 Allergan, Inc. 164,850
8,700 Amgen, Inc.(*) 487,200
3,700 Biogen, Inc.(*) 217,606
13,300 Bristol-Myers Squibb Co. 697,419
700 Eli Lilly & Co. 54,119
5,400 IVAX Corp.(*) 147,825
3,000 Jones Pharma, Inc. 86,438
1,100 MedImmune, Inc.(*) 175,931
16,300 Merck & Co., Inc. 1,132,849
19,200 Pfizer, Inc. 808,799
2,261 Pharmacia & Upjohn, Inc. 112,909
3,200 Schering-Plough Corp. 129,000
2,500 Warner-Lambert Co. 284,531
----------
4,499,476
----------
--------------------------------------------------------------------------------
ELECTRONICS (6.9%)
3,500 Analog Devices, Inc.(*) 268,843
4,600 Applied Materials, Inc.(*) 468,337
1,000 Applied Micro Circuits Corp.(*) 128,875
1,300 AVX Corp. 126,669
700 Broadcom Corp. Class A(*) 120,663
1,500 Conexant Systems, Inc.(*) 89,813
700 KLA-Tencor Corp.(*) 52,413
2,200 LSI Logic Corp.(*) 137,500
2,750 Molex, Inc. 151,078
2,700 Motorola, Inc. 321,468
1,300 PMC-Sierra, Inc.(*) 249,437
400 QLogic Corp.(*) 40,125
900 Sanmina Corp.(*) 54,056
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
ELECTRONICS (CONTINUED)
1,100 Sawtek, Inc.(*) $ 52,594
1,800 Scientific-Atlanta, Inc. 117,113
700 Teradyne, Inc.(*) 77,000
4,000 Texas Instruments, Inc. 651,499
600 TriQuint Semiconductor, Inc.(*) 61,688
2,300 Vishay Intertechnology, Inc.(*) 192,912
1,600 Xilinx, Inc.(*) 117,200
----------
3,479,283
----------
--------------------------------------------------------------------------------
FINANCIAL / BANKS (0.4%)
1,500 Chase Manhattan Corp. (The) 108,094
4,200 First Security Corp. 59,325
528 FirStar Corp. 13,134
----------
180,553
----------
--------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (1.5%)
3,200 A.G. Edwards, Inc. 120,400
2,000 American Express Co. 300,124
200 Ameritrade Holding Corp. Class A(*) 3,350
3,100 MBNA Corp. 82,344
650 Providian Financial Corp. 57,241
4,200 Schwab (Charles) Corp. 186,900
----------
750,359
----------
--------------------------------------------------------------------------------
FOOD & RELATED (2.9%)
2,500 BestFoods, Inc. 125,625
13,000 ConAgra, Inc. 245,375
3,800 Hormel Foods Corp. 57,950
13,400 IBP, Inc. 221,100
2,900 Keebler Foods Co. 91,169
20,200 Nabisco Group Holdings Corp. 260,075
8,900 Nabisco Holdings Corp. Class A 334,306
2,000 Philip Morris Cos., Inc. 43,750
5,100 Ralston-Ralston Purina Group 90,206
1 Unilever NV 46
----------
1,469,602
----------
--------------------------------------------------------------------------------
HEALTH CARE (3.3%)
8,200 Abbott Laboratories 315,188
900 Bausch & Lomb, Inc. 54,338
1,500 Cardinal Health, Inc. 82,594
7,700 Johnson & Johnson Co. 635,249
4,800 Medtronic, Inc. 249,300
4,400 UnitedHealth Group, Inc. 293,425
600 Wellpoint Health Networks, Inc.(*) 44,250
----------
1,674,344
----------
--------------------------------------------------------------------------------
HOTELS / MOTELS (0.1%)
1,800 Marriott International, Inc. Class A 57,600
----------
--------------------------------------------------------------------------------
INSURANCE (0.7%)
3,275 American International Group, Inc. 359,227
----------
10 N A T I O N W I D E
<PAGE> 13
STATEMENT OF INVESTMENTS PRESTIGE LARGE CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
LEISURE PRODUCTS (0.1%)
1,700 Brunswick Corp. $ 32,619
-----------
--------------------------------------------------------------------------------
MEDICAL (0.4%)
1,900 Baxter International, Inc. 123,737
380 Edwards Lifesciences Corp.(*) 5,700
400 Genentech, Inc.(*) 46,800
1,900 Healtheon/WebMD Corp.(*) 40,019
----------
216,256
----------
--------------------------------------------------------------------------------
MOTOR VEHICLES (0.3%)
4,600 Hertz Corp. 143,463
----------
--------------------------------------------------------------------------------
OIL & GAS (0.4%)
1,900 Enron Corp. 132,407
3,300 USX-Marathon Group 76,931
----------
209,338
----------
--------------------------------------------------------------------------------
PHARMACEUTICALS (0.1%)
400 MillenniumPharmaceuticals, Inc.(*) 31,750
----------
--------------------------------------------------------------------------------
PHOTOGRAPHIC (0.3%)
2,400 Eastman Kodak Co. 134,250
----------
--------------------------------------------------------------------------------
PRINTING & PUBLISHING (0.8%)
700 Knight-Ridder, Inc. 34,344
1,600 McGraw-Hill Cos., Inc. (The) 84,000
6,700 New York Times Co. (The) Class A 275,956
----------
394,300
----------
--------------------------------------------------------------------------------
RESTAURANTS (0.1%)
2,100 Darden Restaurants, Inc. 38,719
----------
--------------------------------------------------------------------------------
RETAIL (6.0%)
1,100 Amazon.com, Inc.(*) 60,706
900 Best Buy Co., Inc.(*) 72,675
2,000 Costco Wholesale Corp.(*) 108,125
2,200 CVS Corp. 95,700
2,800 Federated Department Stores, Inc.(*) 95,200
14,800 Home Depot, Inc. 829,725
7,000 Limited, Inc. (The) 316,313
1,700 May Department Stores Co. (The) 46,750
5,600 Sears, Roebuck & Co. 205,100
2,300 Starbucks Corp. 69,539
3,300 Target Corp. 219,656
1,500 Tiffany & Co. 109,031
14,500 Wal-Mart Stores, Inc. 802,938
900 Zale Corp.(*) 37,125
----------
3,068,583
----------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
RETAIL / FOOD & DRUG (0.3%)
1,600 Safeway, Inc.(*) $ 70,600
1,800 SYSCO Corp. 67,725
----------
138,325
----------
--------------------------------------------------------------------------------
SERVICES (4.5%)
13,700 America Online, Inc.(*) 819,431
1,200 E(*)TRADE Group, Inc.(*) 25,800
1,700 Electronic Data Systems Corp. 116,875
14,400 Oracle Corp.(*) 1,151,100
1,600 Robert Half International, Inc. 97,800
900 Sabre Holdings, Inc.(*) 31,444
300 TMP Worldwide, Inc.(*) 19,613
----------
2,262,063
----------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (9.1%)
1,600 ADC Telecommunications, Inc.(*) 97,200
1,100 Advanced Fibre Communications, Inc.(*) 50,256
1,450 Allegiance Telecom, Inc.(*) 102,588
1,100 Aspect Communications Corp.(*) 39,050
500 BCE, Inc. 57,375
800 Bell Atlantic Corp. 47,400
1,100 CIENA Corp.(*) 135,988
1,500 Corning, Inc. 296,250
300 E-Tek Dynamics, Inc.(*) 61,425
1,500 General Motors Corp. Class H(*) 144,469
1,200 GTE Corp. 81,300
5,400 JDS Uniphase Corp.(*) 560,250
1,800 Level 3 Communications, Inc.(*) 160,200
14,200 Lucent Technologies, Inc. 883,062
15,500 MCI WorldCom, Inc.(*) 704,280
800 Nextel Communications, Inc.(*) 87,550
500 NEXTLINK Communications Class A(*) 42,156
1,100 Nortel Networks Corp. 124,575
5,200 QUALCOMM, Inc.(*) 563,875
200 RCN Corp.(*) 5,725
300 RF Micro Devices, Inc.(*) 31,219
200 Rhythms Netconnections, Inc.(*) 4,138
1,300 SBC Communications, Inc. 56,956
700 SDL, Inc.(*) 136,500
1,700 Sprint Corp. (FON Group) 104,550
500 Telephone & Data Systems, Inc. 51,000
----------
4,629,337
----------
--------------------------------------------------------------------------------
TRAVEL (0.1%)
1,800 Royal Caribbean Cruises Ltd. 37,463
----------
--------------------------------------------------------------------------------
UTILITIES (0.1%)
800 Calpine Corp.(*) 73,200
----------
TOTAL COMMON STOCK (cost $40,109,974) 46,768,368
----------
N A T I O N W I D E 1 1
<PAGE> 14
STATEMENT OF INVESTMENTS PRESTIGE LARGE CAP GROWTH FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
PRINCIPAL SECURITY VALUE
REPURCHASE AGREEMENT (7.4%)
--------------------------------------------------------------------------------
$3,775,000 Fifth Third Bank 5.78%,
05/01/00, Collateralized
by $3,942,000 FNMA
Pool #303741, 7.00%,
02/01/11 market value
$3,850,841 (cost
$3,775,000) $ 3,775,000
----------
TOTAL (cost $43,884,974) $50,543,368
==========
--------------------------------------------------------------------------------
The abbreviations in the above statement stand for the following:
FNMA Federal National Mortgage Association
(*) DENOTES A NON-INCOME PRODUCING SECURITY.
At April 30, 2000, the Fund's open futures contracts were as follows:
UNREALIZED
MARKET VALUE APPRECIATION
NUMBER OF COVERED BY (DEPRECIATION) AT
CONTRACTS CONTRACT TYPE(**) EXPIRATION CONTRACTS 04/30/2000
--------------------------------------------------------------------------------
Purchase 20 Standard June $7,300,000 $4,819
& Poor's 500
Purchase 4 E-mini Standard June 292,000 (1,402)
& Poor's 500
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
(**) CASH PLEDGED AS COLLATERAL.
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.
CURRENCY]
PRESTIGE ADVISOR SERIES(SM)
--------------------------------------------------------------------------------
PRESTIGE BALANCED FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Prestige Balanced Fund
(Class A Shares) returned 3.70%(*) vs. a return of 5.03% for the S&P 500 Index
and Salomon Broad Investment Grade Index, the benchmark index. The Fund closed
the period with an allocation of 60% equity, and 40% fixed-income and cash.
Technology and growth stocks continued to be favored by investors, and
positive price momentum remained an indicator of short-term success throughout
the greater part of the six-month period. Specific risk or individual stock
volatility has remained at historical proportions and has clearly been evident
in the magnitude with which stock prices have moved around any specific company
or market news. This behavior, which was present for the majority of the period,
presented a challenge to the Fund, which focuses on normalized earnings and
intermediate-term growth rates. While the Fund is not underweighed in
technology, and is always sector neutral, the modest rotation had a positive
effect on performance. The market then experienced an about-face in April, as
value decidedly outperformed growth by a meaningful amount for the first time
since the spring of 1999. The technology, telecommunications, and media sectors
that had led the market over the last few years were all stifled in April. In
particular, the software & services sector was down 21.3% due to the bleak
performance of Microsoft (-34.3%), one of the Fund's largest holdings.
Stock selections within the drug, services and chemical sectors were the
strongest contributors to performance despite biotechnology stocks trading lower
in response to President Clinton's comments on the viability of patents in
genomic research. Within the drug sector, the Fund benefited from an
overweighted position in Monsanto (recently acquired by Pharmacia Corp.). Within
the technology sector, Cisco Systems, the leader in network equipment,
contributed to performance as it has benefited from a build-out in networking
stemming from the explosion of its B2B and B2C businesses. Stock selection
within the consumer staple and finance sectors detracted from performance. We
continue to hold finance stocks that have been deemed undervalued relative to
their longer-term earnings potential. However, in the short term, many of these
savings & loan and miscellaneous financial-services stocks continue to
underperform because of the rising interest rate environment.
The explosive combination of very strong economic growth, continued
tightening of monetary policy by the Federal Reserve, and the U.S. Treasury's
announcement that it would begin repurchasing outstanding long-term Treasury
bonds were the dominant factors in fixed-income markets during the period. We
maintained a modest "curve flattener" by underweighting in the intermediate
portion of the yield curve and overweighting in long-term Treasuries. We expect
strong U.S. economic growth to continue, with growth forecast at 5% during the
first half of the year. In the short- to intermediate-term, the events
pressuring the Fed and spread sector volatility are not likely to reverse
course. However, we do anticipate that tighter monetary conditions will begin to
moderate growth in the second half of the year. Subdued inflation, combined with
the Treasury Department's buyback, lead us to expect that yields on long
Treasuries will remain low.
J.P. MORGAN INVESTMENT MANAGEMENT, INC. - SUBADVISOR
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $9,551,400
PORTFOLIO COMPOSITION
(Subject to Change)
[PICTURE]
-------------------------------------
Asset-Backed Securities 3.0%
-------------------------------------------- [PIE CHART]
Common Stock 55.0%
----------------------------------
U.S. Government Obligations 27.0%
-----------------------------------------
Repurchase Agreement 13.4%
-------------------------------------------
Canadian Bonds 0.6%
----------------------------------------------
Corporate Bonds 5.9%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
(For Period Ended April 30, 2000)
INSTITUTIONAL
CLASS A CLASS B SERVICE(3)
YEARS W/O SC(*) W/SC(1) W/O SC(*) W/SC(2) W/O SC
------------------------------------------------------------------
1 4.38% -1.60% 3.63% -1.37% 4.65%
------------------------------------------------------------------
Life 11.54% 7.19% 10.69% 8.12% 11.77%
------------------------------------------------------------------
LIFE OF THE FUND IS SINCE 11/02/98.
ALL FIGURES SHOWING THE EFFECT OF A SALES CHARGE REFLECT THE MAXIMUM CHARGE
POSSIBLE, BECAUSE IT HAS THE MOST DRAMATIC EFFECT ON PERFORMANCE DATE.
(*) 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) INSTITUTIONAL SERVICE CLASS SHARES ARE NOT SUBJECT TO ANY SALES CHARGES.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED,
SHARES MAY BE WORTH MORE 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 PRESTIGE BALANCED FUND
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
PRINCIPAL SECURITY VALUE
ASSET BACKED SECURITIES (3.0%)
--------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (3.0%)
$ 20,000 Chase Credit Account Master Trust,
6.00%, 08/15/05 $ 19,300
40,000 Citibank Credit Card Master Trust I,
Series 1997-6, 0.00%, 08/15/06 29,024
37,194 Greentree Financial Corp., 7.20%, 04/15/19 37,063
60,000 Morgan Stanley, 7.57%, 12/15/09 59,335
50,000 Providian Master Trust, 6.60%, 04/16/07 49,172
100,000 Sears Credit Account Master Trust,
5.65%, 03/17/09 94,285
---------
TOTAL ASSET BACKED SECURITIES (cost $291,600) 288,179
---------
CANADIAN BONDS (0.6%)
--------------------------------------------------------------------------------
FOREIGN GOVERNMENT (0.6%)
55,000 Ontario (Province of), 7.625%, 06/22/04 55,460
(cost $56,628) ---------
SHARES SECURITY VALUE
COMMON STOCK (55.0%)
--------------------------------------------------------------------------------
AEROSPACE (0.4%)
405 Boeing Co. (The) 16,073
140 Goodrich (B.F.) Co. 4,463
700 Lockheed Martin Corp. 17,412
---------
37,948
---------
--------------------------------------------------------------------------------
AIRLINES (0.1%)
90 AMR Corp. 3,065
120 Southwest Airlines 2,603
---------
5,668
--------------------------------------------------------------------------------
ALUMINUM (0.3%)
264 Alcoa, Inc. 17,127
150 Reynolds Metals Co. 9,975
---------
27,102
--------------------------------------------------------------------------------
BEVERAGES / ALCOHOLIC (0.4%)
665 Seagram Co. Ltd. 35,910
---------
--------------------------------------------------------------------------------
BEVERAGES / SOFT DRINK (0.5%)
1,000 Coca-Cola Co. 47,063
---------
--------------------------------------------------------------------------------
BIOTECHNOLOGY (0.1%)
40 Human Genome Sciences, Inc. 3,063
60 PE Corp-PE Biosystems Group 3,600
---------
6,663
---------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
BROADCAST MEDIA / CABLE TELEVISION (1.7%)
616 AT&T Corp. - Liberty Media Group Class A(*) $ 30,762
300 Comcast Corp. Special Class A 12,019
890 MediaOne Group, Inc.(*) 67,305
600 Time Warner, Inc. 53,963
---------
164,049
---------
--------------------------------------------------------------------------------
BUSINESS EQUIPMENT & SERVICES (0.3%)
100 3COM Corp.(*) 3,944
200 Yahoo!, Inc.(*) 26,050
---------
29,994
---------
--------------------------------------------------------------------------------
CAPITAL GOODS (3.8%)
300 Caterpillar, Inc. 11,831
90 Eaton Corp. 7,560
400 Emerson Electric Co. 21,950
1,500 General Electric Co. 235,875
216 Genuine Parts Co. 5,670
200 Ingersoll-Rand Co. 9,388
112 ITT Industries, Inc. 3,535
1,422 Tyco International Ltd. 65,323
---------
361,132
---------
--------------------------------------------------------------------------------
CHEMICALS (0.5%)
480 Air Products & Chemicals, Inc. 14,910
1 Du Pont (E.I.) De Nemours & Co. 47
60 Lyondell Chemical Co. 1,103
300 Praxair, Inc. 13,331
444 Rohm & Haas Co. 15,818
266 Solutia, Inc. 3,624
---------
48,833
---------
--------------------------------------------------------------------------------
COMPUTER EQUIPMENT (6.5%)
100 Apple Computer, Inc.(*) 12,406
1,300 Compaq Computer Corp. 38,025
800 EMC Corp.(*) 111,150
2,100 Intel Corp. 266,305
302 International Business Machines Corp. 33,711
100 Lexmark International Group, Inc.(*) 11,800
100 Quantum Corp. - DLT & Storage Systems(*) 1,175
1,200 Sun Microsystems, Inc.(*) 110,325
300 VERITAS Software Corp.(*) 32,180
---------
617,077
---------
--------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES (6.0%)
100 Adobe Systems, Inc. 12,094
330 Automatic Data Processing, Inc. 17,757
200 BMC Software, Inc.(*) 9,363
3,800 Cisco Systems, Inc.(*) 263,446
200 Citrix Systems, Inc.(*) 12,213
100 DoubleClick, Inc.(*) 7,588
100 Exodus Communications, Inc.(*) 8,844
200 First Data Corp. 9,738
1 4 N A T I O N W I D E
<PAGE> 17
[PICTURE OF SMALL
AREA ON U.S.
CURRENCY]
STATEMENT OF INVESTMENTS PRESTIGE BALANCED FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES (CONTINUED)
2,800 Microsoft Corp.(*) $ 195,299
200 Novell, Inc. 3,925
200 Parametric Technology Corp. 1,631
200 PeopleSoft, Inc.(*) 2,788
138 Seagate Technology, Inc.(*) 7,012
100 Siebel Systems, Inc.(*) 12,287
100 TIBCO Software, Inc. 8,906
---------
572,891
---------
--------------------------------------------------------------------------------
CONSTRUCTION & BUILDING MATERIALS (0.0%)
6 Owens Corning 109
60 USG Corp. 2,505
---------
2,614
---------
--------------------------------------------------------------------------------
CONSUMER NON-CYCLICAL (1.1%)
200 Clorox Co. (The) 7,350
876 Gillette Co. (The) 32,412
1,029 Procter & Gamble Co. 61,354
---------
101,116
---------
--------------------------------------------------------------------------------
CONTAINERS (0.1%)
240 Smurfit-Stone Container Corp.(*) 3,660
66 Temple-Inland, Inc. 3,308
---------
6,968
---------
--------------------------------------------------------------------------------
DRUGS (4.3%)
304 ALZA Corp. 13,395
1,090 American Home Products Corp. 61,244
1,400 Bristol-Myers Squibb Co. 73,412
860 Eli Lilly & Co. 66,488
80 Forest Labs Class A(*) 6,725
72 Genzyme Corp. 3,515
400 Merck & Co., Inc. 27,800
1,184 Pharmacia & Upjohn, Inc. 59,126
900 Schering-Plough Corp. 36,281
500 Warner-Lambert Co. 56,906
120 Watson Pharmaceutical, Inc.(*) 5,393
---------
410,285
---------
--------------------------------------------------------------------------------
ELECTRONICS (2.7%)
600 Applied Materials, Inc.(*) 61,088
126 Cooper Industries, Inc. 4,323
50 Hubbell, Inc. Class B 1,303
600 Motorola, Inc. 71,437
100 National Semiconductor Corp.(*) 6,075
100 Palm, Inc.(*) 2,725
200 Raytheon Co. 4,438
148 Raytheon Co. Class A 3,395
620 Texas Instruments, Inc. 100,982
---------
255,766
---------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
FINANCIAL / BANKS (3.3%)
110 Ambac Financial $ 5,280
400 AmSouth Bancorp 5,825
42 Associated Banc-Corp. 1,074
38 Astoria Financial 1,047
60 BancWest Corp. 1,099
1,700 Bank of America Corp. 83,299
1,100 Bank One Corp. 33,549
200 Charter One Financial, Inc. 4,063
200 Comerica, Inc. 8,475
100 Commerce Bancshares, Inc. 3,088
100 Compass Bancshares, Inc. 1,850
126 Dime Bancorp, Inc. 2,363
100 First Tennessee National Corp. 1,900
1,000 First Union Corp. 31,874
900 FirStar Corp. 22,387
66 FirstMerit Corp. 1,081
900 Fleet Boston Corp. 31,893
106 Hibernia Corp. 1,126
100 Huntington Bancshares, Inc. 1,825
400 Keycorp 7,400
10 M&T Bank Corp. 4,393
100 Marshall & Ilsley Corp. 4,644
46 Mercantile Bankshare Corp. 1,311
100 North Fork Bancorp, Inc. 1,619
40 Pacific Century Financial Corp. 823
60 Peoples Heritage Finance Group 784
300 PNC Financial Services Group 13,088
20 Provident Financial Group 586
200 Regions Financial Corp. 4,088
200 SouthTrust Corp. 4,775
94 Sovereign Bancorp, Inc. 646
200 Summit Bancorp 5,075
64 TCF Financial Corp. 1,496
800 U.S. Bancorp Class A 16,250
104 Union Planters Corp. 2,945
16 Wilmington Trust Corp. 738
---------
313,759
---------
--------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (2.2%)
100 Ameritrade Holding Corp. Class A(*) 1,675
700 Associates First Capital Corp. 15,531
100 Bear Stearns Cos., Inc. 4,288
200 CIT Group, Inc. (The) 3,388
600 Citigroup, Inc. 35,662
100 Countrywide Credit Industries, Inc. 2,763
48 FINOVA Group, Inc. 615
34 First Virginia Banks, Inc. 1,241
114 Golden West Financial Corp. 3,890
430 Goldman Sachs Group, Inc. 40,097
100 GreenPoint Financial Corp. 1,863
400 Household International, Inc. 16,700
600 John Hancock Financial Services, Inc.(*) 10,950
400 Merrill Lynch & Co., Inc. 40,774
100 Paine Webber Group, Inc. 4,388
400 TD Waterhouse Group, Inc.(*) 8,025
600 Washington Mutual, Inc. 15,338
---------
207,188
---------
N A T I O N W I D E 1 5
<PAGE> 18
STATEMENT OF INVESTMENTS PRESTIGE BALANCED FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
FOOD & RELATED (1.5%)
300 BestFoods, Inc. $ 15,075
100 Campbell Soup Co. 2,600
204 General Mills 7,421
320 Heinz (H.J.) Co. 10,880
100 Hershey Foods Corp. 4,538
402 Kellogg Co. 9,824
34 Nabisco Holdings Corp. Class A 1,277
2,688 Philip Morris Cos., Inc. 58,799
100 Quaker Oats Co. 6,519
100 Sara Lee Corp. 1,500
476 Unilever NV 21,688
---------
140,121
---------
--------------------------------------------------------------------------------
GOLD (0.0%)
100 Freeport-McMoRan Copper & Gold, Inc.(*) 963
---------
--------------------------------------------------------------------------------
HEALTH CARE (1.6%)
800 Abbott Laboratories 30,750
200 Becton Dickinson & Co. 5,125
600 Boston Scientific Corp.(*) 15,900
515 Columbia/HCA Healthcare Corp. 14,645
500 Johnson & Johnson Co. 41,250
400 Medtronic, Inc. 20,775
100 St. Jude Medical, Inc.(*) 3,119
400 Tenet Healthcare Corp. 10,200
100 Wellpoint Health Networks, Inc.(*) 7,375
---------
149,139
---------
--------------------------------------------------------------------------------
HOTELS / MOTELS (0.3%)
436 Hilton Hotels Corp. 3,706
180 International Game Technology(*) 4,388
110 Mandalay Resort Group(*) 2,076
200 Marriott International, Inc. Class A 6,400
288 Mirage Resorts, Inc. 5,868
290 Starwood Hotels & Resorts Worldwide 8,247
---------
30,685
---------
--------------------------------------------------------------------------------
INSURANCE (1.1%)
1,400 Allstate Corp. 33,074
200 American International Group, Inc. 21,937
400 AON Corp. 10,825
20 AXA Financial, Inc. 653
360 Hartford Financial Services Group 18,788
162 MBIA, Inc. 8,009
48 Mercury General Corp. 1,314
6 SAFECO Corp. 133
100 St. Paul Cos., Inc. 3,563
300 Unum Provident Corp. 5,100
---------
103,396
---------
--------------------------------------------------------------------------------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
INSURANCE / LIFE (0.7%)
216 Aetna, Inc. $ 12,501
200 American General Corp. 11,200
200 CIGNA Corp. 15,950
302 Lincoln National Corp. 10,513
900 MetLife, Inc.(*) 14,906
200 Torchmark Corp. 5,013
---------
70,083
---------
--------------------------------------------------------------------------------
INSURANCE / PROPERTY & CASUALTY (0.0%)
40 Fremont General Corp. 233
---------
--------------------------------------------------------------------------------
LEISURE PRODUCTS (0.1%)
200 Hasbro, Inc. 3,188
480 Mattel, Inc. 5,880
---------
9,068
---------
--------------------------------------------------------------------------------
MANUFACTURING / DIVERSIFIED (0.7%)
900 Honeywell International, Inc. 50,400
300 PPG Industries, Inc. 16,313
---------
66,713
---------
--------------------------------------------------------------------------------
METALS (0.0%)
100 Phelps Dodge Corp. 4,625
---------
--------------------------------------------------------------------------------
MORTGAGE / ASSET BACKED OBLIGATIONS (0.9%)
841 Fannie Mae 50,723
700 Freddie Mac 32,156
---------
82,879
---------
--------------------------------------------------------------------------------
MOTOR VEHICLES (1.3%)
300 Dana Corp. 9,113
529 Delphi Automotive Systems Corp. 10,117
1,200 Ford Motor Co. 65,625
300 General Motors Corp. 28,088
100 Johnson Controls, Inc. 6,331
116 Lear Corp.(*) 3,473
70 PACCAR, Inc. 3,329
---------
126,076
---------
--------------------------------------------------------------------------------
NATURAL GAS (0.2%)
66 ColumBia Energy Group 4,142
100 El Paso Energy Corp. 4,250
400 Williams Cos., Inc. (The) 14,925
---------
23,317
---------
1 6 N A T I O N W I D E
<PAGE> 19
[PICTURE OF SMALL
AREA ON U.S.
CURRENCY]
STATEMENT OF INVESTMENTS PRESTIGE BALANCED FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
OIL & GAS (1.0%)
200 Apache Corp. $ 9,688
306 Conoco, Inc. Class B 7,612
1,388 Royal Dutch Petroleum Co. 79,636
---------
96,936
---------
--------------------------------------------------------------------------------
OIL / DOMESTIC (0.2%)
200 Phillips Petroleum Co. 9,488
128 Tosco Corp. 4,104
304 Union Pacific Resources Group, Inc. 5,833
---------
19,425
---------
--------------------------------------------------------------------------------
OIL / INTERNATIONAL (2.1%)
400 Chevron Corp. 34,050
2,000 Exxon Mobil Corp. 155,375
300 Texaco, Inc. 14,850
---------
204,275
---------
--------------------------------------------------------------------------------
OIL EQUIPMENT & SERVICES (0.3%)
100 Baker Hughes, Inc. 3,181
44 Cooper Cameron Corp.(*) 3,300
56 Diamond Offshore Drilling, Inc. 2,258
100 Dynegy, Inc. 6,543
100 Ensco International, Inc. 3,319
140 Global Marine, Inc.(*) 3,360
136 R&B Falcon Corp.(*) 2,822
60 Ultramar Diamond Shamrock Corp. 1,485
---------
26,268
---------
--------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.2%)
62 Bowater, Inc. 3,410
250 Fort James Corp. 5,984
400 International Paper Co. 14,700
8 Louisiana-Pacific Corp. 107
---------
24,201
---------
--------------------------------------------------------------------------------
PHOTOGRAPHIC (0.2%)
394 Eastman Kodak Co. 22,039
---------
--------------------------------------------------------------------------------
POLLUTION CONTROL (0.1%)
815 Waste Management, Inc. 12,938
---------
--------------------------------------------------------------------------------
PRINTING & PUBLISHING (0.4%)
470 Gannett Co., Inc. 30,021
124 Knight-Ridder, Inc. 6,084
---------
36,105
---------
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
RAILROADS (0.2%)
300 Burlington Northern Santa Fe Corp. $ 7,237
116 CSX Corp. 2,429
300 Norfolk Southern Corp. 5,288
138 Union Pacific Corp. 5,813
---------
20,767
---------
--------------------------------------------------------------------------------
RESTAURANTS (0.0%)
106 McDonald's Corp. 4,041
---------
--------------------------------------------------------------------------------
RETAIL (3.1%)
100 Abercrombie & Fitch Co. 1,100
200 Circuit City Stores-Circuit City Group 11,763
208 Federated Department Stores, Inc.(*) 7,072
1,000 Gap, Inc. 36,750
800 Home Depot, Inc. 44,849
200 Jones Apparel Group, Inc.(*) 5,938
600 Kmart Corp.(*) 4,875
200 Limited, Inc. (The) 9,038
380 May Department Stores Co. (The) 10,450
200 Nordstrom, Inc. 5,563
252 Penney (J.C), Co., Inc. 3,481
400 Sears, Roebuck & Co. 14,650
500 Target Corp. 33,281
308 TJX Cos., Inc. 5,910
1,824 Wal-Mart Stores, Inc. 101,003
---------
295,723
---------
--------------------------------------------------------------------------------
RETAIL / FOOD & DRUG (0.6%)
300 Albertson's, Inc. 9,769
906 Kroger Co. 16,818
600 Safeway, Inc.(*) 26,474
---------
53,061
---------
--------------------------------------------------------------------------------
SERVICES (2.1%)
1,400 America Online, Inc.(*) 83,737
1,411 Cendant Corp. 21,782
400 Computer Associates International, Inc. 22,325
300 E(*)TRADE Group, Inc.(*) 6,450
270 Electronic Data Systems Corp. 18,563
600 Oracle Corp.(*) 47,962
40 Ryder System, Inc. 888
---------
201,707
---------
--------------------------------------------------------------------------------
STEEL (0.0%)
114 Allegheny Technologies, Inc. 2,757
80 USX-U.S. Steel Group, Inc. 2,005
---------
4,762
---------
N A T I O N W I D E 1 7
<PAGE> 20
STATEMENT OF INVESTMENTS PRESTIGE BALANCED FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (6.4%)
100 Allegiance Telecom, Inc.(*) $ 7,075
200 ALLTEL Corp. 13,325
1,100 AT&T Corp. 51,356
453 Bell Atlantic Corp. 26,840
700 Global Crossing Ltd.(*) 22,050
800 GTE Corp. 54,200
1,380 Lucent Technologies, Inc. 85,819
1,961 MCI WorldCom, Inc.(*) 89,103
1,100 Nortel Networks Corp. 124,574
200 QUALCOMM, Inc.(*) 21,688
2,200 SBC Communications, Inc. 96,387
400 Sprint Corp. (PCS Group)(*) 22,000
---------
614,417
---------
--------------------------------------------------------------------------------
TELEVISION BROADCASTING (0.1%)
300 Fox Entertainment Group, Inc.(*) 7,725
---------
--------------------------------------------------------------------------------
TIRE & RUBBER (0.1%)
300 Goodyear Tire & Rubber Co. 8,288
---------
--------------------------------------------------------------------------------
TRANSPORTATION (0.0%)
20 CNF Transportation, Inc. 559
---------
--------------------------------------------------------------------------------
UTILITIES (1.1%)
110 Allegheny Energy, Inc. 3,341
400 Carolina Power & Light Co. 14,624
600 Central & Southwest Corp. 13,013
200 Cinergy Corp. 5,350
108 CMS Energy Corp. 2,052
300 Dominion Resources, Inc. 13,499
200 DTE Energy Co. 6,525
200 Edison International 3,813
300 Entergy Corp. 7,631
110 GPU, Inc. 3,087
110 NiSource, Inc. 2,035
300 PG&E Corp. 7,781
100 Pinnacle West Capital Corp. 3,513
200 PP&L Resources, Inc. 4,775
100 Reliant Energy, Inc. 2,663
20 TECO Energy, Inc. 438
300 Texas Utilities Co. 10,106
106 Wisconsin Energy Corp. 2,266
---------
106,512
---------
TOTAL COMMON STOCK (cost $5,195,188) 5,819,073
---------
PRINCIPAL SECURITY VALUE
CORPORATE BONDS (5.9%)
--------------------------------------------------------------------------------
AUTOMOBILES (0.9%)
90,000 DaimlerChrysler NA Hldg.,
6.46%, 12/07/01 $ 88,329
---------
--------------------------------------------------------------------------------
CHEMICALS (0.3%)
25,000 Du Pont (E.I.) De Nemours & Co.,
6.75%, 10/15/04 24,384
---------
--------------------------------------------------------------------------------
ELECTRIC SERVICES (0.6%)
35,000 Calenergy Co., Inc., 7.63%, 10/15/07 33,392
25,000 Constellation Energy, 7.875%, 04/01/05 24,646
---------
58,038
---------
--------------------------------------------------------------------------------
ENTERTAINMENT (0.3%)
30,000 Time Warner, Inc., 7.97%, 08/15/04 30,111
---------
--------------------------------------------------------------------------------
FINANCIAL / BANKS (0.8%)
40,000 First Union Corp., 6.95%, 11/01/04 38,881
35,000 Northern Trust Co., 6.65%, 11/09/04 33,733
---------
72,614
---------
--------------------------------------------------------------------------------
FINANCIAL / MISCELLANEOUS (1.1%)
35,000 Finova Capital Corp., 7.25%, 11/08/04 32,401
75,000 Ford Motor Credit Co., 7.375%, 10/28/09 72,677
---------
105,078
---------
--------------------------------------------------------------------------------
OIL & GAS (0.8%)
45,000 Amerada Hess Corp., 7.875%, 10/01/29 42,027
45,000 Enron Corp., 6.95%, 07/15/28 38,381
---------
80,408
---------
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (0.8%)
45,000 MCI Worldcom, Inc., 6.40%, 08/15/05 42,726
30,000 U.S. West Communications,
7.20%, 11/01/04 29,715
---------
72,441
---------
--------------------------------------------------------------------------------
TELEVISION BROADCASTING (0.3%)
30,000 Tele-Communications, Inc.,
7.875% 08/01/13 29,933
---------
TOTAL CORPORATE BONDS (cost $578,574) 561,336
---------
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 PRESTIGE BALANCED FUND CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
PRINCIPAL SECURITY VALUE
U.S. GOVERNMENT SPONSORED AND AGENCY
OBLIGATIONS (27.0%)
--------------------------------------------------------------------------------
GOVERNMENT - AGENCY (1.1%)
$110,000 FHLB, 5.125%, 02/26/02 106,301
---------
--------------------------------------------------------------------------------
GOVERNMENT - MORTGAGE-BACKED OBLIGATIONS (11.5%)
510,000 FNMA, 6.50%, 05/01/30 475,734
180,000 FNMA, 6.50%, 05/18/15 172,238
53,437 GNMA, 6.50%, 12/15/28 50,169
420,000 GNMA, 7.00%, 05/22/30 403,856
---------
1,101,997
---------
--------------------------------------------------------------------------------
GOVERNMENT-TREASURY (14.4%)
70,000 U.S. Treasury Bond, 8.875%, 02/15/19 89,469
410,000 U.S. Treasury Note, 5.625%, 09/30/01 403,978
260,000 U.S. Treasury Note, 6.00%, 08/15/04 254,556
450,000 U.S. Treasury Note, 6.00%, 08/15/09 439,172
475,000 U.S. Treasury Note Strip, 05/15/18 157,894
90,000 U.S. Treasury Note Strip, 08/15/21 24,834
---------
1,369,903
---------
TOTAL U.S. GOVERNMENT SPONSORED AND
AGENCY OBLIGATIONS (cost $2,582,040) 2,578,201
---------
PRINCIPAL SECURITY VALUE
REPURCHASE AGREEMENT (13.4%)
--------------------------------------------------------------------------------
$1,281,000 Fifth Third Bank 5.78%, 05/01/00,
Collateralized by $1,338,000 FNMA
Pool #303741, 7.00%, 02/01/11,
market value $1,307,058
(cost $1,281,000) $ 1,281,000
----------
TOTAL (cost $9,985,030) $10,583,249
==========
--------------------------------------------------------------------------------
The abbreviations in the above statement stand for the following:
FHLB Federal Home Loan Bank
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
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 1 9
<PAGE> 22
[PICTURE OF SMALL
AREA ON U.S.
CURRENCY]
PRESTIGE ADVISOR SERIES(SM)
--------------------------------------------------------------------------------
PRESTIGE SMALL CAP FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Prestige Small Cap Fund
(Class A Shares) returned 15.55%(*) vs. a return of 18.72% for the Russell 2000
Index, the benchmark index.
The Fund's performance shortfall for the six-month period occurred
primarily during the three-month period ending in January. During this period,
the small-cap market's performance was concentrated in a narrow group of
technology-oriented growth stocks, while many other sectors of the market
experienced negative returns. In this environment, the Fund's broad
diversification and benchmark-like sector distribution limited its excess return
potential. The results of our stock selection process were also mixed during
this period. Factors such as relative strength and long-term growth were
positive, but exposure to companies with improving earnings estimates as well as
value-oriented characteristics like low price/earnings and price/assets ratios
were negative. During the subsequent quarter there was significant improvement
in the performance of these fac- tors as the market broadened. Stocks with low
price/earnings ratios and those with significant institutional interest were
particularly strong.
Many of the Fund's best performing stocks during the last six months were
in the technology sector, including Aspect Development (which the fund had
held), Terayon Communication Systems, and Broadvision. Stillwater Mining and
Downey Financial rounded out the top five contributors. The Fund's most
significant underperformers during this period were Lason, Kronos, Macromedia
(which is no longer held), Applied Science & Technology, and Noven
Pharmaceuticals.
Four of the Fund's five largest holdings (based on their average weight
over the six-month period) outperformed the Russell 2000. Amkor Technology,
Broadvision, Stillwater Mining, and Macromedia (which is no longer held)had very
strong returns, while IDEC Pharmaceuticals was the one laggard among the top
five for the recent six-month period, although we realized gains on a
significant portion of the Fund's position in November and February.
Our investment process is designed to add value through exposure to company
characteristics that our research has demonstrated con- tribute to excess return
over time, while limiting exposure to other risk factors. In recent months there
has been a significant increase in stock-specific risk, making it necessary to
increase the number hold- ings in the Fund to achieve our targets for risk
control. Therefore over the past six months we have increased the number of
holdings in the Fund from 204 to 269.
Some of the Fund's holdings, like Broadvision and Amkor, have experienced
such dramatic growth over the past year that they have essentially outgrown
their "small cap" designation, although they remain in our universe as long as
they are in the benchmark index. We expect an unusually high level of turnover
in the Russell 2000 Index when it is reconstituted at the end of June. In
anticipation of this, we have reduced the Fund's exposure to a number of issues
that we expect to move out of the benchmark to no more than an index weighting.
INVESCO MANAGEMENT & RESEARCH, INC. - SUBADVISOR
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $27,038,888
PORTFOLIO COMPOSITION
(Subject to Change) [PICTURES]
------------------------------------
Repurchase Agreement 0.5%
[PIE CHART]
--------------------------------------
Common Stock 99.5%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
(For Period Ended April 30, 2000)
INSTITUTIONAL
CLASS A CLASS B SERVICE(3)
YEARS W/O SC(*) W/SC(1) W/O SC(*) W/SC(2) W/O SC
------------------------------------------------------------
1 21.72% 14.70% 21.30% 16.30% 21.83%
------------------------------------------------------------
Life 19.02% 14.38% 18.44% 15.96% 19.15%
------------------------------------------------------------
LIFE OF THE FUND IS SINCE 11/02/98.
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 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 INSTITUTIONAL SERVICE CLASS SHARES ARE NOT SUBJECT TO ANY SALES CHARGES.
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 0 N A T I O N W I D E
<PAGE> 23
Statement of Investments Prestige Small Cap Fund
(Unaudited) April 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (99.5%)
--------------------------------------------------------------------------------
AIRLINES (0.5%)
3,100 America West Holdings Corp. Class A(*) $ 45,338
2,000 SkyWest, Inc. 84,250
-----------
129,588
-----------
APPAREL (0.5%)
5,100 Cato Corp. (The) Class A 53,869
2,300 Pacific Sunwear of California, Inc. 78,344
-----------
132,213
-----------
APPLIANCES (0.4%)
2,500 Salton, Inc. 107,344
-----------
AUTO & AUTO PARTS (0.7%)
4,600 Copart, Inc. 79,350
11,900 Tenneco Automotive, Inc. 105,613
-----------
184,963
-----------
BEVERAGES / ALCOHOLIC (0.6%)
1,600 Canandaigua Wine Co. Class A(*) 80,600
2,700 Robert Mondavi Corp. (The)(*) 89,606
-----------
170,206
-----------
BIOTECHNOLOGY (0.3%)
1,000 Human Genome Sciences, Inc. 76,563
-----------
BUSINESS EQUIPMENT & SERVICES (2.0%)
2,400 CACI International, Inc. Class A(*) 56,250
3,400 Professional Detailing, Inc.(*) 91,800
400 Proxim, Inc.(*) 30,775
2,800 TeleTech Holdings, Inc.(*) 91,350
1,700 Titan Corp. (The)(*) 72,994
4,600 True North Communications, Inc. 189,462
-----------
532,631
-----------
CAPITAL GOODS (0.5%)
4,100 Milacron, Inc. 74,825
1,200 PerkinElmer, Inc.(*) 65,700
-----------
140,525
-----------
CHEMICALS (1.0%)
2,200 Geon Co. (The) 48,125
16,300 Grace (W.R.) & Co. 211,900
-----------
260,025
-----------
COMMUNICATION EQUIPMENT (0.6%)
1,200 Carrier Access Corp.(*) $ 52,350
4,400 LodgeNet Entertainment Corp.(*) 113,300
------------
165,650
------------
COMPUTER EQUIPMENT (1.4%)
1,800 Advanced Digital Information Corp. 44,213
900 Cognex Corp.(*) 51,188
2,900 In Focus Systems, Inc.(*) 86,818
3,200 Micron Electronics, Inc.(*) 34,200
2,400 MICROS Systems, Inc.(*) 96,599
1,800 Xircom, Inc.(*) 70,988
-----------
384,006
-----------
COMPUTER SOFTWARE & SERVICES (9.2%)
1,300 Advent Software, Inc. 68,250
1,000 Allaire Corp. 55,063
1,100 Black Box Corp.(*) 84,631
4,300 Broadvision, Inc.(*) 188,930
3,500 Cerner Corp.(*) 77,219
1,200 Emulex Corp.(*) 54,450
1,000 Entrust Technologies, Inc.(*) 49,125
900 HNC Software, Inc.(*) 44,550
4,400 Infocure Corp. 40,150
1,500 Informatica Corp. 62,906
600 ISS Group, Inc. 54,263
3,200 Kronos, Inc.(*) 102,800
11,500 MAPICS, Inc.(*) 76,188
2,200 MapInfo Corp. 65,175
3,300 Mercury Computer Systems, Inc. 126,844
2,000 Mercury Interactive Corp. 179,999
900 Micromuse, Inc.(*) 88,313
2,300 MicroStrategy, Inc. 59,513
800 NVIDIA Corp.(*) 71,300
1,500 Peregrine Systems, Inc.(*) 36,094
5,200 Pinnacle Systems, Inc. 124,800
3,500 Progress Software Corp. 70,000
1,100 Proxicom, Inc. 37,606
900 QRS Corp. 29,700
2,200 Razorfish, Inc. 41,663
1,600 Remedy Corp.(*) 85,000
2,200 RSA Security, Inc.(*) 129,112
1,400 SanDisk Corp.(*) 128,274
2,300 Verity, Inc. 74,606
1,800 VerticalNet, Inc. 97,200
1,400 WebTrends Corp. 45,938
-----------
2,449,662
-----------
CONSTRUCTION & BUILDING MATERIALS (2.5%)
5,900 Elcor Corp. 187,694
2,500 Granite Construction, Inc. 59,375
6,900 Insituform Technologies, Inc. Class A(*) 231,581
2,000 NVR, Inc.(*) 124,500
7,200 Standard Pacific Corp. 72,450
-----------
675,600
-----------
NATIONWIDE 21
<PAGE> 24
STATEMENT OF INVESTMENTS PRESTIGE SMALL CAP FUND CONTINUED
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
CONSULTING SERVICES (0.2%)
700 Diamond Technology Partners, Inc. $ 55,388
-----------
CONSUMER DURABLE (0.4%)
5,500 Fossil, Inc. 114,125
-----------
CONSUMER NON-CYCLICAL (0.4%)
5,800 Tupperware Corp. 109,475
-----------
DISTRIBUTION (1.4%)
5,400 Advanced Marketing Services, Inc. 107,241
6,100 Furniture Brands International, Inc.(*) 113,994
4,900 United Stationers, Inc.(*) 163,537
-----------
384,772
-----------
DRUGS (1.9%)
500 Abgenix, Inc. 44,781
5,600 Alpharma, Inc. Class A 216,300
600 ImClone Systems, Inc.(*) 54,600
600 Incyte Pharmaceuticals, Inc.(*) 46,200
3,000 Jones Pharma, Inc. 86,438
2,800 K-V Pharmaceutical Co.(*) 70,700
-----------
519,019
-----------
EDUCATION (0.6%)
6,500 DeVry, Inc.(*) 154,781
-----------
ELECTRONICS (10.4%)
1,600 ACT Manufacturing, Inc. 58,200
2,200 Alpha Industries, Inc. 114,400
2,200 Amkor Technology, Inc.(*) 134,613
1,600 Amphenol Corp. Class A 102,000
2,200 Anixter International, Inc.(*) 74,113
500 Credence Systems Corp.(*) 71,375
1,400 Cree Research, Inc. 203,699
5,300 Dallas Semiconductor Corp. 227,568
4,400 Elantec Semiconductor, Inc. 178,199
600 KEMET Corp.(*) 44,700
700 Kopin Corp. 54,206
3,600 Lam Research Corp. 165,149
2,700 Lattice Semiconductor Corp. 181,912
2,300 Littlefuse, Inc.(*) 81,650
1,100 LTX Corp.(*) 50,325
2,000 Methode Electronics 83,344
4,400 Pioneer-Standard Electronics, Inc. 67,375
1,000 Power-One, Inc.(*) 68,250
1,100 Rogers Corp.(*) 74,113
2,300 Sawtek, Inc.(*) 109,969
3,600 Sensormatic Electronics Corp.(*) 60,075
1,300 Tektronix, Inc. 75,238
1,825 Transwitch Corp. 160,714
1,500 TriQuint Semiconductor, Inc.(*) 154,219
6,600 Ultratech Stepper, Inc.(*) $ 98,588
4,500 Universal Electronics, Inc. 92,250
-----------
2,786,244
-----------
ENTERTAINMENT (1.4%)
6,800 Argosy Gaming Co.(*) 108,800
1,500 Macrovision Corp. 73,313
5,400 Station Casinos, Inc.(*) 153,900
6,400 Topps Co., Inc. (The)(*) 56,000
-----------
392,013
-----------
FINANCIAL / BANKS (6.7%)
8,500 BancWest Corp. 155,656
6,100 Bank United Corp. 202,443
2,436 Commerce Bancorp, Inc. 96,679
6,500 Downey Financial Corp. 194,187
13,600 East West Bancorp, Inc. 169,999
1,900 Greater Bay Bancorp 80,780
8,064 Imperial Bancorp 158,256
3,600 Irwin Financial Corp. 60,975
6,800 Richmond County Financial Corp. 116,450
2,200 Silicon Valley Bancshares(*) 135,850
3,400 Southwest Bancorp of Texas, Inc.(*) 66,513
9,600 Sterling Bancshares, Inc. 105,600
8,900 Washington Federal, Inc. 155,194
5,000 Webster Financial Corp. 106,875
-----------
1,805,457
-----------
FINANCIAL / MISCELLANEOUS (4.0%)
4,000 Affiliated Managers Group, Inc.(*) 160,500
8,300 Americredit Corp.(*) 155,106
2,100 CompuCredit Corp.(*) 68,906
3,300 Eaton Vance Corp. 139,631
2,200 Metris Cos., Inc.(*) 82,500
4,700 Radian Group, Inc. 239,407
3,350 Southwest Securities Group, Inc. 137,769
4,900 Triad Guaranty, Inc.(*) 102,900
-----------
1,086,719
-----------
FOOD & RELATED (1.0%)
2,600 Corn Products International, Inc. 62,400
4,700 Del Monte Foods Co.(*) 41,713
3,000 Dreyer's Grand Ice Cream, Inc. 72,000
3,400 Jack in the Box, Inc.(*) 83,300
-----------
259,413
-----------
HEALTH CARE (4.5%)
900 Affymetrix, Inc.(*) 121,556
4,200 Apria Healthcare Group, Inc.(*) 58,538
1,400 Celera Genomics 115,500
1,800 CONMED Corp.(*) 47,025
3,300 Cytyc Corp. 147,674
22 NATIONWIDE
<PAGE> 25
STATEMENT OF INVESTMENTS PRESTIGE SMALL CAP FUND CONTINUED
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
3,300 Datascope Corp. $ 109,313
2,850 King Pharmaceuticals, Inc. 140,718
4,000 MedQuist, Inc.(*) 141,749
2,600 Mentor Corp. 45,988
3,600 ResMed, Inc. 122,400
1,300 Techne Corp.(*) 92,463
1,900 Zoll Medical Corp.(*) 83,956
-----------
1,226,880
-----------
HOME BUILDING (0.7%)
3,800 Pulte Corp. 81,700
5,200 Ryland Group, Inc. (The) 104,650
-----------
186,350
-----------
HOTELS / MOTELS (1.1%)
12,200 Aztar Corp.(*) 145,638
7,600 Felcor Lodging Trust, Inc. 149,150
-----------
294,788
-----------
INSURANCE (0.6%)
8,800 Hooper Holmes, Inc. 152,900
-----------
LEISURE PRODUCTS (0.2%)
3,700 Callaway Golf Co. 61,513
-----------
MACHINERY (4.5%)
1,500 Advanced Energy Industries, Inc.(*) 103,500
3,700 Applied Science & Technology, Inc.(*) 100,594
2,400 Astec Industries, Inc.(*) 60,300
900 Asyst Technologies, Inc. 48,150
800 Brooks Automation, Inc.(*) 71,750
900 Cymer, Inc.(*) 35,156
6,500 Graco, Inc. 220,187
2,800 Helix Technology Corp. 142,975
2,700 Imation Corp.(*) 75,769
700 Kulicke & Soffa Industries, Inc.(*) 54,819
1,800 Manitowoc Co., Inc. (The) 59,738
14,100 Stewart & Stevenson Services, Inc. 170,080
1,800 Tecumseh Products Co. 83,588
-----------
1,226,606
-----------
MANUFACTURING / DIVERSIFIED (0.7%)
3,400 AptarGroup, Inc. 96,900
2,500 Mark IV Industries, Inc. 52,969
1,600 Roper Industries, Inc. 50,400
-----------
200,269
-----------
METALS (1.2%)
5,800 Century Aluminum Co. $ 81,200
3,600 Commercial Metals Co. 105,750
1,000 Gilead Sciences, Inc.(*) 54,188
7,600 Ryerson Tull, Inc. 94,050
-----------
335,188
-----------
NATURAL GAS (0.2%)
2,100 People's Energy Corp. 65,231
-----------
OIL & GAS (4.8%)
2,000 Atwood Oceanics, Inc.(*) 121,250
2,100 Barrett Resources Corp.(*) 66,675
4,800 Basin Exploration, Inc.(*) 67,200
7,100 Energen Corp. 130,019
3,600 Equitable Resources, Inc. 166,950
1,800 St. Mary Land & Exploration Co. 60,750
2,700 Stone Energy Corp.(*) 127,575
4,300 Swift Energy Co.(*) 87,881
8,400 UGI Corp. 171,674
4,700 UTI Energy Corp.(*) 163,325
5,000 Valero Energy Corp. 145,000
-----------
1,308,299
-----------
Oil / International (0.8%)
4,900 HS Resources, Inc.(*) 118,519
1,700 SEACOR SMIT, Inc.(*) 104,125
-----------
222,644
-----------
OIL EQUIPMENT & SERVICES (1.6%)
2,600 Drill-Quip, Inc.(*) 105,625
3,600 Hanover Compressor Co.(*) 209,700
2,200 Helmerich & Payne, Inc. 68,888
4,800 Tesoro Petroleum Corp.(*) 56,400
-----------
440,613
-----------
PAPER & FOREST PRODUCTS (0.5%)
6,700 Pope & Talbot, Inc. 141,956
-----------
PHARMACEUTICALS (2.6%)
600 Alkermes, Inc.(*) 31,950
9,266 Bindley Western Industries, Inc. 161,576
1,200 Celgene Corp. 56,475
900 COR Therapeutics, Inc.(*) 68,569
1,100 IDEC Pharmaceuticals Corp. 70,400
2,000 Millennium Pharmaceuticals, Inc.(*) 158,750
6,800 NBTY, Inc.(*) 120,700
800 Vertex Pharmaceuticals, Inc.(*) 41,800
-----------
710,220
-----------
NATIONWIDE 23
<PAGE> 26
STATEMENT OF INVESTMENTS PRESTIGE SMALL CAP FUND CONTINUED
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
PRINTING & PUBLISHING (0.8%)
5,100 Hollinger International, Inc. $ 64,388
4,700 McClatchy Co. (The) 148,931
-----------
213,319
-----------
REAL ESTATE (0.2%)
2,300 LNR Property Corp. 49,594
-----------
REAL ESTATE INVESTMENT TRUSTS (4.8%)
6,200 Bedford Property Investors, Inc. 109,275
17,300 Capital Automotive REIT 241,118
4,300 Gables Residential Trust 103,200
14,500 JDN Realty Corp. 140,469
3,900 Kilroy Realty Corp. 94,088
10,900 National Health Investors, Inc. 130,800
3,700 Prentiss Properties Trust 87,875
6,100 Shurgard Storage Centers, Inc. 159,743
7,400 SL Green Realty Corp. 190,087
2,700 Sovran Self Storage, Inc. 55,519
-----------
1,312,174
-----------
RESTAURANTS (1.8%)
4,100 Applebee's International, Inc. 149,394
3,200 CEC Entertainment, Inc. 96,000
4,000 Cheesecake Factory, Inc. (The)(*) 163,750
2,300 P.F. Chang's China Bistro, Inc.(*) 80,500
-----------
489,644
-----------
RETAIL (2.4%)
4,700 Ethan Allen Interiors, Inc. 125,431
4,700 Footstar, Inc.(*) 174,781
4,100 Genesco, Inc.(*) 53,044
3,600 Quiksilver, Inc.(*) 67,950
2,500 ShopKo Stores, Inc.(*) 44,688
3,750 Whitehall Jewelers, Inc. 64,453
2,700 Zale Corp.(*) 111,375
-----------
641,722
-----------
SEMICONDUCTORS (3.2%)
3,200 Cypress Semiconductor Corp.(*) 166,199
1,400 Electroglas, Inc.(*) 54,250
2,700 FEI Co.(*) 61,088
2,300 Integrated Device Technology, Inc.(*) 110,544
2,300 International Rectifier Corp.(*) 112,988
900 Semtech Corp. 61,369
2,400 Silicon Valley Group, Inc. 68,400
2,567 Three-Five Systems, Inc. 223,299
-----------
858,137
-----------
SERVICES (3.1%)
1,900 24/7 Media, Inc.(*) $ 37,288
3,900 ADVO, Inc.(*) 116,999
2,100 American Management Systems, Inc.(*) 77,700
3,300 Chemed Corp. 98,588
6,000 Jefferies Group, Inc. 132,374
3,200 Pre-Paid Legal Services, Inc.(*) 102,400
1,600 Rare Medium Group, Inc.(*) 32,900
1,800 S1 Corp.(*) 97,763
4,100 Sybase, Inc.(*) 82,769
1,800 Westwood One, Inc. 63,675
-----------
842,456
-----------
STEEL (1.2%)
2,600 Maverick Tube Corp.(*) 74,100
5,650 Stillwater Mining Co.(*) 158,200
6,500 Worthington Industries, Inc. 80,438
-----------
312,738
-----------
TELECOMMUNICATIONS (4.6%)
1,900 Adaptive Broadband Corp. 61,750
2,000 Advanced Fibre Communications, Inc.(*) 91,375
600 ANADIGICS, Inc. 45,150
2,600 CommScope, Inc.(*) 123,500
2,200 ITC DeltaCom, Inc.(*) 72,325
3,500 Lightbridge, Inc.(*) 73,500
1,000 MasTec, Inc.(*) 86,375
500 MRV Communications, Inc.(*) 34,469
1,000 Polycom, Inc.(*) 79,125
700 Powertel, Inc.(*) 47,075
800 Powerwave Technologies, Inc.(*) 166,449
8,795 Price Communications Corp. 178,098
1,300 Rural Cellular Corp. Class A(*) 96,119
600 Terayon Communication Systems, Inc.(*) 55,800
1,800 US LEC Corp. Class A(*) 47,025
-----------
1,258,135
-----------
TEXTILES (0.4%)
2,400 Springs Industries, Inc. Class A 98,550
-----------
TOBACCO (0.2%)
3,500 Universal Corp. 66,063
-----------
TRANSPORTATION (2.2%)
8,300 Dollar Thrifty Automotive Group, Inc.(*) 174,300
1,200 Landstar System, Inc.(*) 68,700
6,600 Oshkosh Truck Corp. 207,900
1,700 USFreightways Corp. 79,263
3,700 Werner Enterprises, Inc. 69,375
-----------
599,538
-----------
24 NATIONWIDE
<PAGE> 27
STATEMENT OF INVESTMENTS PRESTIGE SMALL CAP FUND CONTINUED
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
UTILITIES (2.0%)
3,000 Cleco Corp. $ 103,313
2,700 Hawaiian Electric Industries, Inc. 99,900
10,000 Minnesota Power, Inc. 184,375
8,500 Public Service Co. of New Mexico 153,000
------------
540,588
------------
TOTAL COMMON STOCK (COST $25,007,387) 26,932,497
------------
PRINCIPAL SECURITY VALUE
REPURCHASE AGREEMENT (0.5%)
--------------------------------------------------------------------------------
$130,000 Fifth Third Bank 5.78%, 05/01/00,
Collateralized by $140,000 GNMA
Pool #780848, 6.50%,
08/05/13, market value $135,012
(cost $130,00) $ 130,000
------------
TOTAL (cost $25,137,387) $27,062,497
===========
---------------------------
The abbreviations in the above statement stand for the following:
GNMA Government National Mortgage Association
(*) DENOTES A NON-INCOME PRODUCING SECURITY.
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
NATIONWIDE 25
<PAGE> 28
PRESTIGE ADVISOR SERIES(SM)
--------------------------------------------------------------------------------
PRESTIGE INTERNATIONAL FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six-month period ended April 30, 2000, the Prestige International
Fund (Class A Shares) returned 1.25%(*) vs. a return of 6.84% for the Morgan
Stanley Capital International Europe Australasia and Far East Index (MSCI EAFE),
its benchmark index.
The pervasiveness of technology in business and society was demon- strated in
1999 by the anxiety over Year 2000 computer glitches. As Y2K fears subsided,
technology's incorporation into business and accelerating Information Technology
spending highlighted the continued growth poten- tial. Investors latched onto
these themes to drive technology stocks and wireless telecommunications stocks
to exorbitant levels. While technology stocks and so-called "new economy" stocks
continue to garner most investor attention, non-technology companies in "old
economy" industries are leveraging their traditional operations to build value
in the Internet arena. Sony not only announced plans to sell its products
directly to con- sumers online, but also made plans to create an online bank. In
Spain, Telefonica joined with Banco Bilbao Vizcaya Argentaria to form an
Internet bank, while Endesa teamed with Commerce One to create an online energy
exchange. In the auto industry, DaimlerChrysler combined efforts with Ford, GM,
Oracle, and Commerce One to create the dominant web-enabled busi-
ness-to-business exchange in the auto industry. Nissan quickly committed to
joining the new exchange. Companies are also developing value across numerous
industries by floating and selling internally created "new econo- my"
businesses. Deutsche Telekom announced plans to float its Internet and cellular
operations, DaimlerChrysler sold its IT services business, and Siemens
successfully completed an initial public offering of its Infineon semiconductor
business. In April, many groups with attractive valuation characteristics that
had been languishing (such as industrials, healthcare, and staples) posted gains
as investors favored traditional companies with tangible earnings over
long-dominant, if less profitable, technology stocks.
Consumer-staples stock selection helped performance, led by a rebound in KAO
in Japan and Tesco. Tesco has created and plans to float the U.K.'s largest
online grocer. In the U.K., consumer-discretionary stock selection hurt as
investors took profits in last year's winners, Sony and Philips. Auto stocks
were weak and the Fund lacked exposure to expen- sive but strong-performing
media stocks. During April, financial-stock picking helped as United Overseas
Bank rose with a cyclical recovery and capital redeployment, while Axa led
performance in Europe. In addition, capital-goods stock selection helped, with
British Aerospace rebounding as it acquired Lockheed Martin's control system
business. However, utili- ty-stock picking suffered as Vivendi's transformation
to a media compa- ny, which has driven its tremendous performance over the last
two years, had a negative impact in April.
As geographic borders give way to industrial logic and global compet- itive
pressures continue to mount, we expect corporate actions to remain an enduring
catalyst of performance. Although most technology stocks remain exorbitantly
expensive, we are participating in the "new economy" by investing in
compellingly priced "old economy" companies that are using technology to
revolutionize traditional business models and improve their financial
productivity. We are also taking advantage of the current market volatility to
opportunistically buy those technology compa- nies that are truly enabling
change.
LAZARD ASSET MANAGEMENT - SUBADVISOR
(*) PERFORMANCE WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS REINVESTED.
FUND VALUE $16,421,231
PORTFOLIO COMPOSITION
(Subject to Change)
Repurchase Agreement 5.3%
Common Stock 93.3%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
(For Period Ended April 30, 2000)
INSTITUTIONAL
CLASS A CLASS B SERVICE(3)
YEARS w/o SC(*) w/SC(1) w/o SC(*) w/SC(2) w/o SC
--------------------------------------------------------------------
1 7.12% 1.00% 6.58% 1.58% 7.32%
Life 12.26% 7.88% 11.67% 8.85% 12.41%
Life of the Fund is since 11/02/98.
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 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 Institutional Service Class Shares are not subject to any
sales charges. 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.
26 NATIONWIDE
<PAGE> 29
STATEMENT OF INVESTMENTS PRESTIGE INTERNATIONAL FUND
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (93.3%)
--------------------------------------------------------------------------------
AUSTRALIA (1.5%)
Metals (1.5%)
23,600 Broken Hill Proprietary Co. Ltd. $ 253,934
------------
DENMARK (1.4%)
Telecommunications (1.4%)
3,100 Tele Danmark AS 227,349
------------
FINLAND (1.1%)
Paper & Forest Products (1.1%)
7,000 UPM-Kymmene OYJ 181,795
------------
FRANCE (12.9%)
Construction & Building Materials (1.8%)
1,080 Compagnie de Saint Gobain 147,721
940 Suez Lyonnaise des Eaux 147,760
------------
295,481
------------
Drugs (1.8%)
5,448 Aventis SA 300,352
------------
Financial / Banks (1.0%)
2,070 Banque Nationale De Paris 167,691
------------
Insurance (1.6%)
1,780 Axa 264,553
------------
Oil / International (2.3%)
2,437 Total Fina SA 370,638
------------
Services (1.6%)
2,577 Vivendi 255,494
------------
Telecommunications (2.8%)
1,990 Alcatel 462,415
------------
TOTAL FRANCE 2,116,624
------------
GERMANY (10.6%)
Airlines (1.1%)
8,900 Deutsche Lufthansa AG 185,317
------------
Financial / Banks (1.7%)
4,700 HypoVereinsbank AG(*) 286,953
------------
Insurance (1.6%)
687 Allianz AG(*) 264,998
------------
Manufacturing & Consumer Goods (3.0%)
2,560 Siemens AG 380,247
5,500 Thyssen Krupp AG(*) 115,774
------------
496,021
------------
Motor Vehicles (1.0%)
2,800 DaimlerChrysler AG $ 163,679
------------
Telecommunications (1.0%)
2,430 Deutsche Telekom AG(*) 158,082
------------
Utilities / Electric (1.2%)
3,780 Veba AG(*) 190,138
------------
TOTAL GERMANY 1,745,188
------------
HONG KONG (1.3%)
Financial / Banks (1.3%)
19,600 HSBC Holdings PLC(*) 218,925
------------
ITALY (2.0%)
Financial / Banks (1.0%)
11,700 San Paolo - IMI SPA(*) 164,189
------------
Oil / International (1.0%)
31,600 ENI SPA 157,512
------------
TOTAL ITALY 321,701
------------
JAPAN (23.3%)
Beverages / Alcoholic (0.4%)
7,000 Ashai Breweries Ltd. 71,249
------------
Business Equipment & Services (2.2%)
8,000 Canon, Inc. 365,684
------------
Consumer Non-Cyclical (1.5%)
8,000 KAO Corp. 243,542
------------
Drugs (0.7%)
5,000 Sankyo Co. 110,112
------------
Electronics (4.6%)
3,300 Sony Corp. 378,943
2,900 TDK Corp. ADR 391,500
------------
770,443
------------
Financial / Banks (4.0%)
14,000 Fuji Bank Ltd. 116,589
17,000 Industrial Bank of Japan Ltd. 140,000
26,000 Sakura Bank Ltd. 182,361
31,000 Sumitomo Trust & Banking Co. Ltd. 226,609
------------
665,559
------------
Financial / Miscellaneous (1.6%)
1,800 Orix Corp.(*) 256,830
------------
Leisure Products (0.5%)
500 Nintendo Co. Ltd. 83,278
------------
NATIONWIDE 27
<PAGE> 30
STATEMENT OF INVESTMENTS PRESTIGE INTERNATIONAL FUND CONTINUED
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
JAPAN (CONTINUED)
Motor Vehicles (2.5%)
91,000 Nissan Motors Co. Ltd. $ 413,439
------------
Paper & Forest Products (0.5%)
12,000 Nippon Paper Industries, Inc. 75,950
------------
Retail (0.5%)
800 Acom Co. Ltd.(*) 77,060
------------
Telecommunications (3.7%)
5,000 Fujitsu Ltd. 141,573
19 Nippon Telegraph & Telephone Corp. 235,584
7 NTT Mobile Communications Network, Inc. 233,827
------------
610,984
------------
Utilities / Electric (0.6%)
7,000 Sumitomo Electric Industries 93,207
------------
TOTAL JAPAN 3,837,337
------------
NETHERLANDS (6.4%)
Beverages / Alcoholic (1.3%)
3,900 Heineken NV(*) 216,787
Chemicals (0.9%)
3,600 Akzo Nobel NV(*) 147,721
Computer Services (0.8%)
2,200 Getronics NV(*) 131,512
Electronics (2.0%)
7,168 Philips Electronics NV(*) 320,518
Financial / Banks (1.4%)
4,280 ING Groep NV(*) 234,087
------------
TOTAL NETHERLANDS 1,050,625
------------
PORTUGAL (1.6%)
Telecommunications (1.6%)
23,400 Portugal Telecom SA(*) 261,637
------------
SINGAPORE (2.0%)
Financial / Banks (2.0%)
23,450 Overseas Chinese Banking Corp. Ltd.(*) 160,688
24,176 United Overseas Bank Ltd.(*) 168,495
------------
329,183
------------
TOTAL SINGAPORE 329,183
------------
SPAIN (3.8%)
Telecommunications (2.2%)
15,836 Telefonica SA(*) $ 353,261
Utilities / Electric (1.6%)
12,200 Endesa SA 265,258
------------
TOTAL SPAIN 618,519
------------
SWEDEN (1.9%)
Consumer Durables (1.0%)
9,600 Electroloux AB(*) 162,453
------------
Financial / Banks (0.9%)
11,400 Svenska Handelsbanken AB 150,893
------------
TOTAL SWEDEN 313,346
------------
SWITZERLAND (3.5%)
Drugs (1.1%)
18 Roche Holding AG(*) 188,425
------------
Insurance (0.8%)
310 Zurich Allied AG(*) 132,074
------------
Manufacturing & Consumer Goods (1.6%)
2,201 ABB Ltd. 247,544
------------
TOTAL SWITZERLAND 568,043
------------
UNITED KINGDOM (20.0%)
Aerospace (1.3%)
33,700 British Aerospace PLC 207,771
------------
Auto & Auto Parts (0.8%)
9,600 GKN PLC(*) 133,396
------------
Beverages / Alcoholic (1.2%)
23,800 Diageo PLC 193,474
------------
Chemicals (1.7%)
33,200 Imperial Chemical Industries, Inc. 285,733
------------
Drugs (2.8%)
5,042 AstraZeneca Group PLC 212,154
18,000 Smithkline Beecham PLC 247,723
------------
459,877
------------
Electronics (0.7%)
14,400 National Grid Group PLC(*) 118,862
------------
Financial / Banks (1.0%)
17,400 Halifax Group PLC(*) 163,093
------------
Food & Related (1.3%)
30,600 Cadbury Schweppes PLC 210,206
------------
28 NATIONWIDE
<PAGE> 31
STATEMENT OF INVESTMENTS PRESTIGE INTERNATIONAL FUND CONTINUED
(UNAUDITED) APRIL 30, 2000
SHARES SECURITY VALUE
COMMON STOCK (CONTINUED)
--------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
Insurance (1.5%)
10,600 Prudential Corp. PLC $ 163,547
13,936 Royal & Sun Alliance Insurance Group PLC 78,178
-----------
241,725
-----------
Manufacturing & Consumer Goods (0.9%)
29,100 Invensys PLC 140,022
-----------
Oil / International (1.3%)
24,900 BP Amoco PLC 216,053
-----------
Printing & Publishing (1.1%)
25,600 Reed International PLC(*) 178,062
-----------
Retail (0.7%)
19,400 Great Universal Stores PLC 117,634
-----------
Retail / Food & Drug (0.9%)
44,500 Tesco PLC 152,498
-----------
Telecommunications (2.0%)
11,000 British Telecommunications PLC 198,119
29,400 Vodafone Airtouch PLC(*) 135,025
-----------
333,144
-----------
Utilities / Electric (0.3%)
20,278 British Energy PLC 54,260
-----------
TOTAL UNITED KINGDOM 3,281,237
TOTAL COMMON STOCK (cost $15,066,533) 15,325,443
-----------
PRINCIPAL SECURITY VALUE
REPURCHASE AGREEMENT (5.3%)
--------------------------------------------------------------------------------
$873,000 Fifth Third Bank 5.78%, 5/01/00,
Collateralized by $912,000 FNMA
Pool #303741, 7.00%,
02/01/11, market value $890,910
(cost $873,000) $ 873,000
-----------
Total investments (cost $15,939,533) $16,198,443
===========
-----------------------------------------------------------------
The abbreviations in the above statement stand for the following:
AB Aktiebolag (Swedish stock exchange)
ADR American Depositary Receipt
AG Aktiengesellschaft (German, or Swiss Stock Cos.)
AS Limited
FNMA Federal National Mortgage Association
NV Naamloze Vennootschap (Dutch Corp.)
OYJ Limited
PLC Public Limited Company (British, Finnish, or Irish)
SA Societe Anonyme (French, Belgian Corp., Swiss, Spanish
or Portuguese Corp.)
SPA Societa per Azioni (Italian Corp.)
(*) DENOTES A NON-INCOME PRODUCING SECURITY.
PORTFOLIO HOLDING PERCENTAGES REPRESENT MARKET VALUE AS A PERCENTAGE OF NET
ASSETS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
NATIONWIDE 29
<PAGE> 32
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRESTIGE PRESTIGE PRESTIGE
LARGE CAP LARGE CAP BALANCED
VALUE FUND GROWTH FUND FUND
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, unaffiliated, at value (cost $28,718,734,
$40,109,974, $8,704,030) $ 28,995,590 $ 46,768,368 $ 9,302,249
Repurchase Agreements, at value (cost $841,000, $3,775,000, $1,281,000) 841,000 3,775,000 1,281,000
Cash 64,280 270,943 811
Receivable for investment securities sold -- -- 9,395
Receivable for Fund shares sold 313 -- --
Receivable from adviser 10,650 10,620 11,407
Interest and dividends receivable 57,311 16,767 26,638
Prepaid and other assets 53,580 49,716 7,215
------------ ------------ ------------
Total assets 30,022,724 50,891,414 10,638,715
------------ ------------ ------------
LIABILITIES
Payable for investment securities purchased -- -- 1,065,665
Accrued expenses and other payables:
Investment Management fees 18,488 32,703 5,801
Fund administration fees 6,165 6,165 6,165
Transfer agent fees 12 75 32
Distribution fees 6,051 10,180 2,572
Administrative servicing fees 3,726 6,053 435
Other 22,714 44,707 6,605
------------ ------------ ------------
Total liabilities 57,156 99,883 1,087,275
------------ ------------ ------------
Net Assets $ 29,965,568 $ 50,791,531 $ 9,551,440
============ ============ ============
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 29,965,568 $ 50,791,531 $ 9,551,440
Capital 30,976,028 42,085,065 8,872,027
Undistributed (distributions in excess of) net investment income 43,229 (108,480) 18,860
Net unrealized appreciation from investments and futures 277,883 6,661,811 598,219
Accumulated undistributed (distributions in excess of) net realized
gains (losses) from investments and futures (1,331,573) 2,153,135 62,334
------------ ------------ ------------
NET ASSETS $ 29,965,568 $ 50,791,531 $ 9,551,440
============ ============ ============
NET ASSETS:
Class A $ 28,115,187 $ 38,157,661 $ 3,246,041
Class B 332,635 3,144,918 2,333,406
Institutional Service Class 1,517,746 9,488,952 3,971,993
------------ ------------ ------------
Total $ 29,965,568 $ 50,791,531 $ 9,551,440
============ ============ ============
SHARES OUTSTANDING (unlimited number of shares authorized)
Class A 2,799,324 2,459,810 289,463
Class B 33,414 204,494 206,650
Institutional Service Class 150,704 610,497 354,105
------------ ------------ ------------
Total 2,983,442 3,274,801 850,218
============ ============ ============
NET ASSET VALUE PER SHARE:
Class A $ 10.04 $ 15.51 $ 11.21
Class B $ 9.96 $ 15.38 $ 11.29
Institutional Service Class $ 10.07 $ 15.54 $ 11.22
OFFERING PRICE (100%/(100% - Maximum Sales Charge) of net asset
value adjusted to nearest cent per share:
Class A(*) $ 10.65 $ 16.46 $ 11.89
Class B(**) $ 9.96 $ 15.38 $ 11.29
Institutional Service Class(***) $ 10.07 $ 15.54 $ 11.22
------------ ------------ ------------
Maximum sales charge - Class A 5.75% 5.75% 5.75%
============ ============ ============
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(*) CLASS A INCLUDES A FRONT-END SALES CHARGE.
(**) CLASS B, THE REDEMPTION PRICE PER SHARE VARIES BY THE LENGTH OF TIME
SHARES ARE HELD.
(***) INSTITUTIONAL SERVICE CLASS (FORMERLY KNOWN AS CLASS Y)
DOES NOT HAVE ANY SALES CHARGES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 NATIONWIDE
<PAGE> 33
STATEMENTS OF ASSETS AND LIABILITIES CONTINUED
--------------------------------------------------------------------------------
(UNAUDITED) APRIL 30, 2000
<TABLE>
<CAPTION>
PRESTIGE PRESTIGE
SMALL CAP INTERNATIONAL
FUND FUND
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
Investments in securities, unaffiliated, at value (cost $25,007,387, $15,066,533) $ 26,932,497 $ 15,325,443
Repurchase Agreements, at value (cost $130,000, $873,000) 130,000 873,000
Foreign currency, at value (cost $2,015) 1,978
Cash 415 6,235
Receivable for investment securities sold -- 159,146
Receivable for Fund shares sold 535 --
Receivable from adviser 11,114 10,846
Interest and dividends receivable 8,079 34,535
Prepaid and other assets 8,627 39,976
------------ ------------
Total assets 27,091,267 16,451,159
============ ============
LIABILITIES
Accrued expenses and other payables:
Investment management fees 20,334 11,660
Fund administration fees 6,165 6,165
Transfer agent fees 28 12
Distribution fees 4,987 3,339
Administrative servicing fees 3,296 2,078
Other 17,569 6,674
------------ ------------
Total liabilities 52,379 29,928
------------ ------------
Net Assets $ 27,038,888 $ 16,421,231
============ ============
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 27,038,888 $ 16,421,231
Capital 23,236,954 15,631,367
Undistributed (distributions in excess of) net investment income (27,023) (75,788)
Net unrealized appreciation from investments 1,925,110 256,546
Accumulated undistributed net realized gains from investment transactions 1,903,847 609,403
------------ ------------
NET ASSETS $ 27,038,888 $ 16,421,231
============ ============
NET ASSETS:
Class A $ 23,028,596 $ 15,158,354
Class B 569,288 210,551
Institutional Service Class 3,441,004 1,052,326
------------ ------------
Total $ 27,038,888 $ 16,421,231
============ ============
SHARES OUTSTANDING (unlimited number of shares authorized):
Class A 1,797,079 1,296,840
Class B 44,617 17,522
Institutional Service Class 268,124 89,843
------------ ------------
Total 2,109,820 1,404,205
============ ============
NET ASSET VALUE PER SHARE:
Class A $ 12.81 $ 11.69
Class B $ 12.76 $ 12.02
Institutional Service Class $ 12.83 $ 11.71
OFFERING PRICE (100%/(100%-Maximum Sales Charge) of net asset value adjusted
to nearest cent per share:
Class A(*) $ 13.59 $ 12.40
Class B(**) $ 12.76 $ 12.02
Institutional Service Class(***) $ 12.83 $ 11.71
------------ ------------
Maximum sales charge - Class A 5.75% 5.75%
============ ============
</TABLE>
(*)Class A includes a front-end sales charge.
(**)Class B, the redemption price per share varies by the length of time
shares are held.
(***)Institutional Service Class (formerly known as Class Y) does not have any
sales charges.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
NATIONWIDE 31
<PAGE> 34
STATEMENTS OF OPERATIONS
-------------------------------------------------------------------------------
(UNAUDITED) FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
PRESTIGE PRESTIGE PRESTIGE PRESTIGE PRESTIGE
LARGE CAP LARGE CAP BALANCED SMALL CAP INTERNATIONAL
VALUE FUND GROWTH FUND FUND FUND FUND
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest income $ 34,933 $ 35,551 $ 144,131 $ -- $ 26,257
Dividend income 360,834 128,602 4,612 137,101 --
----------- ----------- ----------- ----------- -----------
Total income 395,767 164,153 148,743 137,101 26,257
----------- ----------- ----------- ----------- -----------
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management fees 107,162 179,923 32,109 116,126 66,438
Fund administration fees 37,407 37,407 37,407 37,407 37,407
Custodian fees 4,480 4,085 7,494 4,763 10,492
Distribution fees 35,328 55,679 14,691 28,552 18,889
Administrative servicing fees 21,719 34,557 2,233 19,424 12,134
Professional fees 3,787 3,683 3,834 3,839 3,831
Trustees' fees and expenses 40 57 48 34 56
Transfer agent fees 943 4,867 1,438 1,216 519
Registration and filing fees 10,359 9,446 9,860 10,086 9,839
Shareholders' reports 2,299 1,645 1,867 1,897 1,850
Insurance 7 7 9 13 6
Other 1,269 2,805 5,445 26,298 1,704
----------- ----------- ----------- ----------- -----------
Total expenses before waived or
reimbursed expenses 224,800 334,161 116,435 249,655 163,165
Expenses waived or reimbursed (60,381) (61,528) (63,683) (85,400) (61,392)
----------- ----------- ----------- ----------- -----------
Net expenses 164,419 272,633 52,752 164,255 101,773
----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) $ 231,348 $ (108,480) $ 95,991 $ (27,154) $ (75,498)
=========== =========== =========== =========== ===========
------------------------------------------------------------------------------------------------------------------------------------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from investments,
futures, and foreign currency transactions $(1,120,554) $ 2,371,073 $ 66,322 $ 1,919,205 $ 626,839
----------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation)
from investments, futures, and foreign currency
transactions 1,001,508 4,177,201 140,615 1,524,187 (347,444)
----------- ----------- ----------- ----------- -----------
Net realized/unrealized gains (losses) from
investments, futures, and foreign currency
transactions (119,046) 6,548,274 206,937 3,443,392 279,395
----------- ----------- ----------- ----------- -----------
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS $ 112,302 $ 6,439,794 $ 302,928 $ 3,416,238 $ 203,897
=========== =========== =========== =========== ===========
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 NATIONWIDE
<PAGE> 35
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PRESTIGE LARGE CAP VALUE FUND PRESTIGE LARGE CAP GROWTH FUND
---------------------------------- ---------------------------------
FOR THE PERIOD FROM FOR THE PERIOD FROM
SIX MONTHS NOVEMBER 2, 1998 SIX MONTHS NOVEMBER 2, 1998
ENDED TO ENDED TO
APRIL 30, 2000 OCTOBER 31, 1999 APRIL 30, 2000 OCTOBER 31, 1999
(UNAUDITED) (a) (UNAUDITED) (a)
------------------------------------------------------------------------------------------------------------------------------------
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 231,348 $ 57,732 $ (108,480) $ (33,926)
Net realized gains (losses) from investment transactions (1,120,554) (101,097) 2,371,073 388,494
Net change in unrealized appreciation from investments 1,001,508 723,625) 4,177,201 2,484,610
------------ ------------ ------------ ------------
Change in net assets resulting from operations 112,302 (766,990) 6,439,794 2,839,178
------------ ------------ ------------ ------------
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income (180,266) (4,705) -- --
Net realized gains from investment transactions (106,016) -- 473,361) --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income (933) (1,352) -- --
Net realized gains from investment transactions (760) -- (21,460) --
DISTRIBUTIONS TO INSTITUTIONAL SERVICE CLASS SHAREHOLDERS FROM: (b)
Net investment income (7,688) (8,560) -- --
Net realized gains from investment transactions (3,146) -- (77,685) --
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM SHAREHOLDER DISTRIBUTIONS (298,809) (56,963) (572,506) --
------------ ------------ ------------ ------------
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS: (c)
Proceeds from shares issued 18,981,721 34,485,142 21,273,489 48,565,205
Dividends reinvested 298,772 56,963 580,434 --
Cost of shares redeemed (15,921,474) (6,925,096) (16,112,995) (12,221,068)
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 3,359,019 27,617,009 5,740,928 36,344,137
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS 3,172,512 26,793,056 11,608,216 39,183,315
NET ASSETS:
BEGINNING OF PERIOD 26,793,056 -- 39,183,315 --
------------ ------------ ------------ ------------
END OF PERIOD $ 29,965,568 $ 26,793,056 $ 50,791,531 $ 39,183,315
============ ============ ============ ============
Undistributed (distributions in excess of) net realized gain (loss)
on investments included in net assets at end of period $ (1,331,573) $ (101,097) $ 2,153,135 $ 354,568
============ ============ ============ ============
Undistributed (distributions in excess of) net investment
income included in net assets at end of period $ 43,230 $ 769 $ (108,396) $ --
============ ============ ============ ============
SHARE TRANSACTIONS: (b)
Sold 1,988,957 3,241,641 1,396,942 3,828,192
Reinvested 30,719 5,617 39,351 --
Redeemed 1,632,816 (650,676) (1,047,694) (941,990)
------------ ------------ ------------ ------------
Change in shares 386,860 2,596,582 388,599 2,886,202
============ ============ ============ ============
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) FIRST OFFERED TO THE PUBLIC ON NOVEMBER 2, 1998.
(b) FORMERLY KNOWN AS CLASS Y.
(c) BOTH THE CAPITAL AND SHARE TRANSACTIONS SECTIONS REPRESENT COMBINED DATA FOR
ALL CLASSES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
NATIONWIDE 33
<PAGE> 36
STATEMENTS OF CHANGES IN NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PRESTIGE BALANCED FUND PRESTIGE SMALL CAP FUND
---------------------------------- ---------------------------------
FOR THE PERIOD FROM FOR THE PERIOD FROM
SIX MONTHS NOVEMBER 2, 1998 SIX MONTHS NOVEMBER 2, 1998
ENDED TO ENDED TO
APRIL 30, 2000 OCTOBER 31, 1999 APRIL 30, 2000 OCTOBER 31, 1999
(UNAUDITED) (a) (UNAUDITED) (a)
------------------------------------------------------------------------------------------------------------------------------------
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 95,991 $ 118,974 $ (27,154) $ 14,711
Net realized gains from investment transactions 66,322 139,859 1,919,205 179,087
Net change in unrealized appreciation from investments 140,615 457,604 1,524,187 400,923
------------ ------------ ------------ ------------
Change in net assets resulting from operations 302,928 716,437 3,416,238 594,721
------------ ------------ ------------ ------------
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income (33,974) (40,667) (15) (9,191)
Net realized gains from investment transactions (48,435) -- (174,519) --
------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income (16,784) (8,769) -- --
Net realized gains from investment transactions (38,058) -- (2,311) --
------------ ------------ ------------ ------------
DISTRIBUTIONS TO INSTITUTIONAL SERVICE CLASS SHAREHOLDERS FROM: (b)
Net investment income (42,504) (53,407) (368) (5,006)
Net realized gains from investment transactions (57,354) -- (17,615) --
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM SHAREHOLDER DISTRIBUTIONS (237,109) (102,843) (194,828) (14,197)
------------ ------------ ------------ ------------
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS: (c)
Proceeds from shares issued 2,504,432 7,357,732 14,061,818 26,363,039
Dividends reinvested 237,001 102,843 194,800 14,212
Cost of shares redeemed (974,538) (355,443) (12,243,416) (5,153,499)
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 1,766,895 7,105,132 2,013,202 21,223,752
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS 1,832,714 7,718,726 5,234,612 21,804,276
NET ASSETS:
BEGINNING OF PERIOD 7,718,726 -- 21,804,276 --
------------ ------------ ------------ ------------
END OF PERIOD $ 9,551,440 $ 7,718,726 $ 27,038,888 $ 21,804,276
============ ============ ============ ============
Undistributed net realized gain on investments
included in net assets at end of period $ 62,334 $ 139,859 $ 1,903,847 $ 179,087
============ ============ ============ ============
Undistributed (distributions in excess of) net investment
income included in net assets at end of period $ 18,860 $ 16,131 $ (27,023) $ 514
============ ============ ============ ============
SHARE TRANSACTIONS: (b)
Sold 224,788 714,777 1,068,090 2,410,464
Reinvested 21,266 9,526 16,606 1,349
Redeemed (88,163) (31,976) (923,825) (462,864)
------------ ------------ ------------ ------------
Change in shares 157,891 692,327 160,871 1,948,949
============ ============ ============ ============
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) FIRST OFFERED TO THE PUBLIC ON NOVEMBER 2, 1998.
(b) FORMERLY KNOWN AS CLASS Y.
(c) BOTH THE CAPITAL AND SHARE TRANSACTIONS SECTIONS REPRESENT COMBINED DATA FOR
ALL CLASSES.
See accompanying notes to financial statements.
34 NATIONWIDE
<PAGE> 37
STATEMENTS OF CHANGES IN NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PRESTIGE INTERNATIONAL FUND
-------------------------------------------------------
FOR THE SIX MONTHS PERIOD FROM
ENDED APRIL 30, 2000 NOVEMBER 2, 1998 TO
(UNAUDITED) OCTOBER 31, 1999 (a)
-----------------------------------------------------------------------------------------------------------------------------------
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
<S> <C> <C>
Net investment income (loss) $ (75,498) $ 41,221
Net realized gains from investment transactions 626,839 96,323
Net change in unrealized appreciation (depreciation) from investments (347,444) 603,990
------------ ------------
Change in net assets resulting from operations 203,897 741,534
------------ ------------
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income -- (7,780)
Net realized gains from investment transactions (129,356) --
------------ ------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income -- (653)
Net realized gains from investment transactions (597) --
------------ ------------
DISTRIBUTIONS TO INSTITUTIONAL SERVICE CLASS SHAREHOLDERS FROM: (b)
Net investment income -- (10,375)
Net realized gains from investment transactions (6,806) --
------------ ------------
CHANGE IN NET ASSETS FROM SHAREHOLDER DISTRIBUTIONS (136,759) (18,808)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS: (c)
Proceeds from shares issued 20,535,650 20,167,857
Dividends reinvested 136,736 18,805
Cost of shares redeemed (18,907,718) (6,319,963)
------------ ------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 1,764,668 13,866,699
------------ ------------
CHANGE IN NET ASSETS 1,831,806 14,589,425
NET ASSETS:
BEGINNING OF PERIOD 14,589,425 --
------------ ------------
END OF PERIOD $ 16,421,231 $ 14,589,425
============ ============
Undistributed net realized gain on
investments included in net assets at end of period $ 609,403 $ 119,323
============ ============
Undistributed (distributions in excess of) net investment income
included in net assets at end of period $ (75,788) $ (587)
============ ============
SHARE TRANSACTIONS: (b)
Sold 1,721,694 1,801,109
Reinvested 11,336 1,754
Redeemed (1,579,716) (550,772)
------------ ------------
Change in shares 153,314 1,252,091
============ ============
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) FIRST OFFERED TO THE PUBLIC ON NOVEMBER 2, 1998.
(b) FORMERLY KNOWN AS CLASS Y.
(c) BOTH THE CAPITAL AND SHARE TRANSACTIONS SECTIONS REPRESENT COMBINED DATA
FOR ALL CLASSES.
See accompanying notes to financial statements.
NATIONWIDE 35
<PAGE> 38
PRESTIGE FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
PRESTIGE LARGE CAP VALUE FUND -------------------------------------------------------------------
SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM
ENDED NOVEMBER 2, 1998 ENDED NOVEMBER 2, 1998
APRIL 30, 2000 TO APRIL 30, 2000 TO
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.32 $ 10.00 $ 10.24 $ 10.00
--------- ---------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.07 0.07 0.03 (0.02)
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.25) 0.32 (0.23) 0.27
---------- ---------- ------- -------
Total from investment operations (0.18) 0.39 (0.20) 0.25
DISTRIBUTIONS:
Net investment income (0.06) (0.07) (0.04) (0.01)
Net realized gains (0.04) -- (0.04) --
---------- ---------- ------- -------
Total distributions (0.10) (0.07) (0.08) (0.01)
Net increase (decrease) in net asset value (0.28) 0.32 (0.28) 0.24
---------- ---------- ------- -------
NET ASSET VALUE--END OF PERIOD $ 10.04 $ 10.32 $ 9.96 $ 10.24
========== ========== ======= =======
Total Return (excluding sales charges)(d) (1.70%) 3.86% (1.98%) 2.50%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 28,115 $ 25,883 $ 333 $ 155
Ratio of expenses to average net assets (a) 1.15% 1.15% 1.90% 1.90%
Ratio of expenses to average net assets(*) (a) 1.57% 1.87% 2.53% 5.34%
Ratio of net investment income to average net assets (a) 1.62% 0.85% 0.85% (0.13%)
Ratio of net investment income to average net assets(*) (a) 1.20% 0.13% 0.23% (3.57%)
Portfolio turnover (b)(d) 50.17% 120.94% 50.71% 120.94%
<CAPTION>
INSTITUTIONAL SERVICE CLASS (c)
PRESTIGE LARGE CAP VALUE FUND ---------------------------------
SIX MONTHS PERIOD FROM
ENDED NOVEMBER 2, 1998
APRIL 30, 2000 TO
(UNAUDITED) OCTOBER 31, 1999
<S> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 10.35 $ 10.00
---------- ----------
INVESTMENT ACTIVITIES:
Net investment income 0.05 0.08
Net realized gain (loss) and unrealized
appreciation (depreciation) (0.22) 0.33
---------- ----------
Total from investment operations (0.17) 0.41
DISTRIBUTIONS:
Net investment income (0.07) (0.06)
Net realized gains (0.04) --
---------- ----------
Total distributions (0.11) (0.06)
Net increase (decrease) in net asset value (0.28) 0.35
---------- ----------
NET ASSET VALUE--END OF PERIOD $ 10.07 $ 10.35
=========== ==========
Total Return (excluding sales charges)(d) (1.61%) 4.05%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,518 $ 755
Ratio of expenses to average net assets (a) 1.00% 1.00%
Ratio of expenses to average net assets(*) (a) 1.44% 4.21%
Ratio of net investment income to average net assets (a) 1.70% 0.77%
Ratio of net investment income to average net assets(*) (a) 1.26% (2.44%)
Portfolio turnover (b)(d) 50.71% 120.94%
</TABLE>
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
--------------------------------- ----------------------------------
PRESTIGE LARGE CAP GROWTH FUND SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM
ENDED NOVEMBER 2, 1998 ENDED NOVEMBER 2, 1998
APRIL 30, 2000 TO APRIL 30, 2000 TO
(UNAUDITED) OCTOBER 31, 1999 (UNAUDITED) OCTOBER 31, 1999
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 13.58 $ 10.00 $ 13.50 $ 10.00
------------- ------------- ------------ ------------
INVESTMENT ACTIVITIES:
Net investment loss (0.03) (0.04) (0.07) (0.12)
Net realized gain (loss) and unrealized
appreciation (depreciation) 2.16 3.62 2.15 3.62
------------- ------------- ------------ ------------
Total from investment operations 2.13 3.58 2.08 3.50
------------- ------------- ------------ ------------
DISTRIBUTIONS:
Net realized gains (0.20) -- (0.20) --
Total distributions (0.20) -- (0.20) --
Net increase in net asset value 1.93 3.58 1.88 3.50
------------- ------------- ------------ ------------
NET ASSET VALUE--END OF PERIOD $ 15.51 $ 13.58 $ 15.38 $ 13.50
------------- ------------- ------------ ------------
Total Return (excluding sales charges)(d) 15.77% 35.80% 15.49% 35.00%
============= ============= ============ ============
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 38,158 $ 33,410 $ 3,145 $ 1,179
Ratio of expenses to average net assets (a) 1.20% 1.20% 1.95% 1.95%
Ratio of expenses to average net assets(*) (a) 1.47% 1.69% 2.30% 5.26%
Ratio of net investment income to average net assets (a) (0.47%) (0.27%) (1.22%) (0.97%)
Ratio of net investment income to average net assets(*) (a) (0.74%) (0.76%) (1.56%) (4.28%)
Portfolio turnover (b)(d) 44.74% 65.27% 44.74% 65.27%
<CAPTION>
INSTITUTIONAL SERVICE CLASS (c)
PRESTIGE LARGE CAP GROWTH FUND -----------------------------------
SIX MONTHS PERIOD FROM
ENDED NOVEMBER 2, 1998
APRIL 30, 2000 TO
(UNAUDITED) OCTOBER 31, 1999
------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 13.60 $ 10.00
------------- ------------
INVESTMENT ACTIVITIES:
Net investment loss (0.02) (0.01)
Net realized gain (loss) and unrealized
appreciation (depreciation) 2.16 3.61
------------ ------------
Total from investment operations 2.14 3.60
------------ ------------
DISTRIBUTIONS:
Net realized gains (0.20) --
Total distributions (0.20) --
Net increase in net asset value 1.94 3.60
------------ ------------
NET ASSET VALUE--END OF PERIOD $ 15.54 $ 13.60
------------ ------------
Total Return (excluding sales charges)(d) 15.82% 36.00%
============ ============
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 9,489 $ 4,594
Ratio of expenses to average net assets (a) 1.05% 1.05%
Ratio of expenses to average net assets(*) (a) 1.33% 3.46%
Ratio of net investment income to average net assets (a) (0.32%) (0.09%)
Ratio of net investment income to average net assets(*) (a) (0.60%) (2.49%)
Portfolio turnover (b)(d) 44.74% 65.27%
</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) FORMERLY KNOWN AS CLASS Y.
(d) NOT ANNUALIZED.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 NATIONWIDE
<PAGE> 39
PRESTIGE FINANCIAL HIGHLIGHTS CONTINUED
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
-------------------------------- ----------------------------------
PERIOD FROM PERIOD FROM
PRESTIGE BALANCED FUND SIX MONTHS NOVEMBER 2, SIX MONTHS NOVEMBER 2,
ENDED 1998 TO ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 11.13 $ 10.00 $ 11.20 $ 10.00
INVESTMENT ACTIVITIES:
Net investment income 0.13 0.22 0.09 0.13
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.28 1.12 0.29 1.12
------------ ------------ ------------ ------------
Total from investment operations 0.41 1.34 0.38 1.25
------------ ------------ ------------ ------------
DISTRIBUTIONS:
Net investment income (0.13) (0.21) (0.09) (0.05)
Net realized gains (0.20) -- (0.20) --
Total distributions (0.33) (0.21) (0.29) (0.55)
------------ ------------ ------------ ------------
Net increase in net asset value 0.08 1.13 0.09 1.20
------------ ------------ ------------ ------------
NET ASSET VALUE--END OF PERIOD $ 11.21 $ 11.13 $ 11.29 $ 11.20
============ ============ ============ ============
Total Return (excluding sales charges)(d) 3.70% 13.47% 3.37% 12.54%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 3,246 $ 2,532 $ 2,333 $ 2,107
Ratio of expenses to average net assets (a) 1.10% 1.10% 1.85% 1.85%
Ratio of expenses to average net assets(*) (a) 2.61% 3.44% 3.33% 4.25%
Ratio of net investment income to average net assets (a) 2.39% 2.02% 1.61% 1.25%
Ratio of net investment income to average net assets(*) (a) 0.88% (0.31%) 0.13% (1.15%)
Portfolio turnover (b)(d) 111.42% 205.14% 111.42% 205.14%
<CAPTION>
INSTITUTIONAL SERVICE CLASS (c)
---------------------------------
PERIOD FROM
PRESTIGE BALANCED FUND SIX MONTHS NOVEMBER 2,
ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 11.13 $ 10.00
INVESTMENT ACTIVITIES:
Net investment income 0.14 0.22
Net realized gain (loss) and unrealized
appreciation (depreciation) 0.29 1.13
------------ ------------
Total from investment operations 0.43 1.35
------------ ------------
DISTRIBUTIONS:
Net investment income (0.14) (0.22)
Net realized gains (0.20) --
Total distributions (0.34) (0.22)
------------ ------------
Net increase in net asset value 0.09 1.13
------------ ------------
NET ASSET VALUE--END OF PERIOD $ 11.22 $ 11.13
============ ============
Total Return (excluding sales charges)(d) 3.89% 13.62%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 3,972 $ 3,080
Ratio of expenses to average net assets (a) 0.95% 0.95%
Ratio of expenses to average net assets(*) (a) 2.43% 3.30%
Ratio of net investment income to average net assets (a) 2.53% 2.17%
Ratio of net investment income to average net assets(*) (a) 1.05% (0.18%)
Portfolio turnover (b)(d) 111.42% 205.14%
</TABLE>
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
------------------------------- -------------------------------
PRESTIGE SMALL CAP FUND PERIOD FROM PERIOD FROM
SIX MONTHS NOVEMBER 2, SIX MONTHS NOVEMBER 2,
ENDED 1998 TO ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 11.19 $ 10.00 $ 11.17 $ 10.00
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.02) (0.03) (0.04) (0.05)
------------- ------------- ---------- ----------
Net realized gain (loss) and unrealized
appreciation (depreciation) 1.74 1.19 1.73 1.22
------------- ------------- ---------- ----------
Total from investment operations 1.72 1.22 1.69 1.17
------------- ------------- ---------- ----------
DISTRIBUTIONS:
Net investment income -- (0.03) -- --
Total distributions (0.10) -- (0.10) --
Net increase in net asset value 1.62 1.19 1.59 1.17
------------- ------------- ---------- ----------
NET ASSET VALUE--END OF PERIOD $ 12.81 $ 11.19 $ 12.76 $ 11.17
============= ============= ========== ==========
Total Return (excluding sales charges)(d) 15.55% 12.18% 15.22% 11.70%
============= ============= ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 23,029 $ 19,830 $ 569 $ 215
Ratio of expenses to average net assets (a) 1.35% 1.35% 2.10% 2.10%
Ratio of expenses to average net assets(*) (a) 2.05% 2.24% 2.84% 6.57%
Ratio of net investment income to average net assets (a) 0.23% 0.29% 0.97% (0.46%)
Ratio of net investment income to average net assets(*) (a) (0.47%) (0.61%) (0.23%) (4.93%)
Portfolio turnover (b)(d) 67.78% 81.24% 67.78% 81.24%
<CAPTION>
INSTITUTIONAL SERVICE CLASS (c)
----------------------------------
PRESTIGE SMALL CAP FUND PERIOD FROM
SIX MONTHS NOVEMBER 2,
ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
---------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 11.20 $ 10.00
INVESTMENT ACTIVITIES:
Net investment income (loss) (0.01) (0.04)
------------ ------------
Net realized gain (loss) and unrealized
appreciation (depreciation) 1.74 1.19
------------ ------------
Total from investment operations 1.73 1.23
------------ ------------
DISTRIBUTIONS:
Net investment income -- (0.03)
Total distributions (0.10) --
Net increase in net asset value 1.63 1.20
------------ ------------
NET ASSET VALUE--END OF PERIOD $ 12.83 $ 11.20
============ ============
Total Return (excluding sales charges)(d) 15.56% 12.36%
============ ============
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 3,441 $ 1,759
Ratio of expenses to average net assets (a) 1.20% 1.20%
Ratio of expenses to average net assets(*) (a) 1.90% 4.87%
Ratio of net investment income to average net assets (a) 0.08% (0.39%)
Ratio of net investment income to average net assets(*) (a) (0.62%) (3.27%)
Portfolio turnover (b)(d) 67.78% 81.24%
</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) Formerly known as Class Y.
(d) Not annualized.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
NATIONWIDE 37
<PAGE> 40
PRESTIGE FINANCIAL HIGHLIGHTS CONTINUED
SELECTED DATA FOR EACH SHARE OF CAPITAL OUTSTANDING
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
-------------------------------- ------------------------------
PRESTIGE INTERNATIONAL FUND PERIOD FROM PERIOD FROM
SIX MONTHS NOVEMBER 2, SIX MONTHS NOVEMBER 2,
ENDED 1998 TO ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 11.65 $ 10.00 $ 11.96 $ 10.00
------------- ------------- ------------ ------------
INVESTMENT ACTIVITIES:
Net investment income/(loss) (0.06) 0.11 (0.12) 0.07
Net realized gain and unrealized
appreciation 1.05 1.62 0.18 1.90
------------- ------------- ------------ ------------
Total from investment operations 0.99 1.73 0.06 1.97
------------- ------------- ------------ ------------
DISTRIBUTIONS:
Net investment income -- (0.08) -- (0.01)
Net realized gains (0.95) -- -- --
------------- ------------- ------------ ------------
Total distributions (0.95) (0.08) -- (0.01)
------------- ------------- ------------ ------------
Net increase in net asset value 0.04 1.65 0.06 1.96
------------- ------------- ------------ ------------
NET ASSET VALUE--END OF PERIOD $ 11.69 $ 11.65 $ 12.02 $ 11.96
============= ============= ============ ============
Total Return (excluding sales charges)(d) 1.25% 17.33% 0.51% 16.58%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 15,158 $ 13,862 $ 211 $ 59
Ratio of expenses to average net assets (a) 1.30% 1.30% 2.05% 2.05%
Ratio of expenses to average net assets(*) (a) 2.09% 2.87% (1.67%) 7.59%
Ratio of net investment income to average net assets (a) (0.97%) 0.59% 2.98% 0.62%
Ratio of net investment income to average net assets(*) (a) (1.76%) (0.98%) (2.60%) (4.91%)
Portfolio turnover (b)(d) 39.07% 27.72% 39.07% 27.72%
<CAPTION>
INSTITUTIONAL SERVICE CLASS (c)
-----------------------------------
PRESTIGE INTERNATIONAL FUND PERIOD FROM
SIX MONTHS NOVEMBER 2,
ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
----------- -------------
<S> <C> <C>
NET ASSET VALUE--BEGINNING OF PERIOD $ 11.67 $ 10.00
------------ -------------
InvestmentActivities:
Net investment income/(loss) (0.06) 0.14
Net realized gain and unrealized
appreciation 0.15 1.61
------------ -------------
Total from investment operations 0.09 1.75
------------ -------------
DISTRIBUTIONS:
Net investment income -- (0.08)
Net realized gains (0.05) --
------------ -------------
Total distributions (0.05) (0.08)
------------ -------------
Net increase in net asset value 0.04 1.67
------------ -------------
NET ASSET VALUE--END OF PERIOD $ 11.71 $ 11.67
============ =============
Total Return (excluding sales charges)(d) 1.25% 17.57%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,052 $ 669
Ratio of expenses to average net assets (a) 1.25% 1.25%
Ratio of expenses to average net assets(*) (a) 1.97% 6.30%
Ratio of net investment income to average net assets (a) (0.93%) 1.40%
Ratio of net investment income to average net assets(*) (a) (1.64%) (3.65%)
Portfolio turnover (b)(d) 39.07% 27.72%
</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) FORMERLY KNOWN AS CLASS Y.
(d) NOT ANNUALIZED.
See accompanying notes to financial statements.
38 NATIONWIDE
<PAGE> 41
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nationwide Mutual Funds ("NMF" or the "Trust"), formerly known as Nationwide
Investing Foundation III, is an open-end management investment company. NMF was
created under the laws of Ohio as an Ohio business trust pursuant to a
Declaration of Trust dated as of October 31, 1997, as subsequently amended as of
March 1, 2000, 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 five funds listed below
which comprise the Prestige Advisor Series (the "Funds"). The Funds in the
Prestige Advisor Series commenced operations on November 2, 1998:
- Prestige Large Cap Value Fund
- Prestige Large Cap Growth Fund
- Prestige Balanced Fund
- Prestige Small Cap Fund
- Prestige International Fund
The Funds currently offer Class A, Class B, and Institutional Service Class
(formerly known as Class Y) shares. Class A and B shares of the Fund are
available to all investors. The Class A shares are pur- chased with a maximum
5.75% front-end sales load. The Class B shares contain 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 Institutional Service Class
shares have no sales charges and are available to a limited group of investors,
such as insurance company separate accounts and tax-exempt employee benefit
plans.
Class A and B shares pay distribution and/or service (12b-1) fees under a
Distribution Plan of 0.25% and 1.00%, respectively. These fees are either
retained or paid by NAS to brokers for distribution and shareholders services.
Class A and Institutional Service Class shares also 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 shares.
(a) SECURITY VALUATION - ALL FUNDS
(1) Securities traded on a national securities exchange are valued at
the last quoted sale price as provided by an independent pricing
agent. Securities traded in the over-the-counter (OTC) market are
valued at the last quoted sale price, or if there is no sale
price, the last quoted bid price as provided by an independent
pricing agent.
(2) U.S. Government securities are valued at the last quoted bid
price as provided by an independent pricing agent. All of the
debt securities are valued by a combination of daily quotes and
matrix evaluations as provided by an independent pricing agent.
(3) 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.
(4) Foreign Currency Transactions. Fluctuations in the value of
investments resulting from changes in foreign exchange rates are
included with net realized and unrealized gain or loss from
investments.
Net realized gains or losses arise from sales of foreign
currencies, security transactions, and the difference between the
amounts of purchases and sales of securities, income receipts and
expense payments recorded on the Fund's books in the U.S. dollar
equivalent of amounts actually received or paid. Net unrealized
gains or losses arise from accounting records denominated in
foreign currencies and then translated into U.S. dollars.
(5) Forward Foreign Currency Contracts. The Funds may enter into
forward foreign currency exchange contracts (forward exchange
contracts) which are obligations to purchase or sell a foreign
currency at a specified rate on a certain date in the future. A
net realized gain or loss would be incurred if the value of the
contract increases or decreases between the date the contract is
opened and the date it is closed. Forward exchange contracts are
marked to market daily and this change in value is reflected in
the Statement of Assets and Liabilities as a net
receivable/payable for foreign currency contracts sold/purchased.
At or before the closing of a forward exchange contract, a Fund
may either sell a portfolio security and make delivery of the
currency, or retain the security and fully or partially off- set
its contractual obligation to deliver the currency by pur-
chasing a second contract. If the Fund retains the portfolio
security and engages in an offsetting transaction, the Fund, at
the time of execution of the offsetting transaction, will incur a
gain or loss to the extent that movement has occurred in forward
contract prices.
Forward exchange contracts can be used to hedge the risks
associated with commitments to purchase securities denominated in
foreign currencies for agreed amounts. The precise matching of
forward exchange contract amounts and the value of the securities
involved generally will not be possible because the value of such
securities, measured in the foreign currency, will change after
the forward exchange contract has been established. Thus, the
Fund may need to purchase or sell foreign currencies in the spot
(cash) market to
NATIONWIDE 39
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
the extent such foreign currencies are not covered by forward
exchange contracts. The Fund could be exposed to risk if a
counter party is unable to meet the terms of a forward exchange
contract or if the value of the currency changes unfavorably. The
projection of short-term currency market movements is difficult,
and the successful execution of a short-term hedging strategy is
highly uncertain.
(6) Futures contracts and options traded on a commodities exchange or
board of trade are valued the last sales price at the close of
trading, or if there was no sale, the quoted bid price at the
close of trading. Futures are used for purposes other than
hedging.
(7) Securities for which reliable market quotations are not avail-
able, or for which an independent pricing agent does not provide
a value or provides a value that does not represent fair value in
the judgement of the Fund's administrator or sub-administrator,
are valued in accordance with procedures authorized by the
Trust's Board of Trustees.
(8) 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 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 includes, 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 Large Cap Value Fund had a net capital loss carry
forward of $101,097. If unused it will expire in 8 years.
(d) DIVIDENDS TO SHAREHOLDERS
(1) Dividend income, if any, is paid quarterly and is recorded on the
ex-dividend date.
(2) Distributable net realized capital gains, if any, 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 pur-
poses 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. For the fiscal year ended October
31, 1999, the following reclasses were necessary:
UNDISTRIBUTED UNDISTRIBUTED
NET INVESTMENT CAPITAL
INCOME GAIN
-------------------------------------------------------------------
Large Cap Growth $(33,926) $33,926
International $(23,002) $23,002
(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 shares outstanding of each class.
Direct expenses of a Fund are allocated to that Fund and thus 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 fees 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.
40 NATIONWIDE
<PAGE> 43
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000
(g) CAPITAL SHARE TRANSACTIONS
Transactions in class level shares of the Funds were as follows:
<TABLE>
<CAPTION>
PRESTIGE LARGE CAP VALUE PRESTIGE LARGE CAP GROWTH
---------------------------------------------------------------------------------------
PERIOD FROM PERIOD FROM
SIX MONTHS NOVEMBER 2, SIX MONTHS NOVEMBER 2,
ENDED 1998 TO ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
CAPITAL TRANSACTIONS: (UNAUDITED) 1999(a) (UNAUDITED) 1999(a)
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
<S> <C> <C> <C> <C>
Proceeds from shares issued $ 16,094,113 $ 30,294,612 $ 14,766,307 $ 40,634,346
Dividends reinvested 286,263 47,051 481,489 --
Cost of shares redeemed (13,925,121) (3,441,343) (15,403,464) (9,077,683)
------------ ------------ ------------ ------------
Change in net assets $ 2,455,255 $ 26,900,320 $ (155,668) $ 31,556,663
============ ============ ============ ============
CLASS B SHARES:
Proceeds from shares issued $ 210,919 $ 1,487,920 $ 1,923,964 $ 2,128,414
Dividends reinvested 1,676 1,352 21,263 --
Cost of shares redeemed (37,369) (1,438,785) (189,245) (1,288,432)
------------ ------------ ------------ ------------
Change in net assets $ 175,226 $ 50,487 $ 1,755,982 $ 839,982
============ ============ ============ ============
INSTITUTIONAL SERVICE CLASS SHARES: (b)
Proceeds from shares issued $ 2,676,689 $ 2,702,610 $ 4,583,218 $ 5,802,445
Dividends reinvested 10,833 8,560 77,682 --
Cost of shares redeemed (1,958,984) (2,044,968) (520,286) (1,854,953)
------------ ------------ ------------ ------------
Change in net assets $ 728,538 $ 666,202 $ 4,140,614 $ 3,947,492
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
PERIOD FROM PERIOD FROM
SIX MONTHS NOVEMBER 2, SIX MONTHS NOVEMBER 2,
ENDED 1998 TO ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
SHARE TRANSACTIONS: (UNAUDITED) 1999(a) (UNAUDITED) 1999(a)
----------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
<S> <C> <C> <C> <C>
Issued 1,689,691 2,833,811 968,222 3,157,580
Reinvested 29,430 4,668 32,632 --
Redeemed (1,428,533) (330,013) (1,001,919) (696,705)
------------ ------------ ------------ ------------
Change in shares 290,858 2,508,466 (1,065) 2,460,875
============ ============ ============ ============
CLASS B SHARES:
Issued 21,943 148,515 128,048 187,850
Reinvested 174 135 1,454 --
Redeemed (3,885) (133,468) (12,370) (100,488)
------------ ------------ ------------ ------------
Change in shares 18,232 15, 182 117,132 87,362
============ ============ ============ ============
INSTITUTIONAL SERVICE CLASS SHARES: (b)
Issued 277,053 259,315 300,672 482,762
Reinvested 1,115 814 52,650 --
Redeemed (200,398) (187,195) (33,405) (144,797)
------------ ------------ ------------ ------------
Change in shares 77,770 72,934 272,532 337,965
============ ============ ============ ============
</TABLE>
(a) COMMENCED OPERATIONS ON NOVEMBER 2, 1998.
(b) FORMERLY KNOWN AS CLASS Y SHARES.
NATIONWIDE 41
<PAGE> 44
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000
(g) CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
PRESTIGE BALANCED PRESTIGE SMALL CAP
--------------------------------- ---------------------------------
PERIOD FROM PERIOD FROM
SIX MONTHS NOVEMBER 2, SIX MONTHS NOVEMBER 2,
ENDED 1998 TO ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
CAPITAL TRANSACTIONS: (UNAUDITED) 1999(a) (UNAUDITED) 1999(a)
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
<S> <C> <C> <C> <C>
Proceeds from shares issued $ 760,576 $ 2,460,604 $ 10,534,446 $ 21,511,277
Dividends reinvested 82,384 40,667 174,508 9,206
Cost of shares redeemed (152,462) (162,529) (10,416,901) (1,967,495)
------------ ------------ ------------ ------------
Change in net assets $ 690,498 $ 2,338,742 $ 292,053 $ 19,552,988
============ ============ ============ ============
CLASS B SHARES:
Proceeds from shares issued 169,549 $ 1,896,555 $ 384,078 $ 1,209,089
Dividends reinvested 54,760 8,769 2,311 --
Cost of shares redeemed (16,705) (1,201) (60,159) (1,120,100)
------------ ------------ ------------ ------------
Change in net assets $ 207,604 $ 1,904,123 $ 326,230 $ 88,989
============ ============ ============ ============
INSTITUTIONAL SERVICE CLASS SHARES: (b)
Proceeds from shares issued $ 1,547,307 $ 3,000,573 $ 3,143,294 $ 3,642,673
Dividends reinvested 99,857 53,407 17,981 5,006
Cost of shares redeemed (805,371) (191,713) (1,739,297) (2,065,904)
------------ ------------ ------------ ------------
Change in net assets $ 868,793 $ 2,862,267 $ 1,421,978 $ 1,581,775
============ ============ ============ ============
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
PERIOD FROM PERIOD FROM
SIX MONTHS NOVEMBER 2, SIX MONTHS NOVEMBER 2,
ENDED 1998 TO ENDED 1998 TO
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
SHARE TRANSACTIONS: (UNAUDITED) 1999(a) (UNAUDITED) 1999(a)
-----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
<S> <C> <C> <C> <C>
Issued 68,196 238,374 802,587 1,948,238
Reinvested 7,402 3,764 14,877 860
Redeemed (13,683) (14,591) (793,012) (176,472)
------------ ------------ ------------ ------------
Change in shares 61,915 227,547 24,452 1,772,626
============ ============ ============ ============
CLASS B SHARES:
Issued 15,160 187,391 29,752 119,232
Reinvested 4,893 820 197 --
Redeemed (1,508) (106) (4,555) (100,009)
------------ ------------ ------------ ------------
Change in shares 18,545 188,105 25,394 19,223
============ ============ ============ ============
INSTITUTIONAL SERVICE CLASS SHARES: (b)
Issued 141,432 289,012 235,751 342,994
Reinvested 8,971 4,942 1,532 489
Redeemed (72,972) (17,279) (126,258) (186,383)
------------ ------------ ------------ ------------
Change in shares 77,431 276,675 111,025 157,100
============ ============ ============ ============
</TABLE>
(a) COMMENCED OPERATIONS ON NOVEMBER 2, 1998.
(b) FORMERLY KNOWN AS CLASS Y SHARES.
42 NATIONWIDE
<PAGE> 45
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000
<TABLE>
<CAPTION>
PRESTIGE INTERNATIONAL
------------------------------------------------
SIX MONTHS ENDED PERIOD FROM
APRIL 30, 2000(a) NOVEMBER 2, 1998 TO
CAPITAL TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999(a)
------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
<S> <C> <C>
Proceeds from shares issued $ 18,835,001 $ 16,120,547
Dividends reinvested 129,342 7,779
Cost of shares redeemed (17,734,467) (2,635,325)
------------ ------------
Change in net assets $ 1,229,876 $ 13,493,001
============ ============
CLASS B SHARES:
Proceeds from shares issued $ 167,016 $ 1,056,059
Dividends reinvested 594 653
Cost of shares redeemed (12,773) (1,152,949)
------------ ------------
Change in net assets $ 154,837 $ (96,237)
============ ============
INSTITUTIONAL SERVICE CLASS SHARES: (b)
Proceeds from shares issued $ 1,533,633 $ 2,991,251
Dividends reinvested 6,800 10,373
Cost of shares redeemed (1,160,478) (2,531,690)
------------ ------------
Change in net assets $ 379,955 $ 469,934
============ ============
<CAPTION>
------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD FROM
APRIL 30, 2000(a) NOVEMBER 2, 1998 TO
SHARE TRANSACTIONS: (UNAUDITED) OCTOBER 31, 1999(a)
------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
<S> <C> <C>
Issued 1,578,776 1,418,382
Reinvested 10,725 725
Redeemed (1,481,318) (229,251)
------------ ------------
Change in shares 108,183 1,189,856
============ ============
CLASS B SHARES:
Issued 13,625 104,928
Reinvested 48 63
Redeemed (1,058) (100,084)
------------ ------------
Change in shares 12,615 4,907
============ ============
INSTITUTIONAL SERVICE CLASS SHARES: (b)
Issued 129,293 277,799
Reinvested 563 966
Redeemed (97,340) (221,437)
------------ ------------
Change in shares 32,516 57,328
============ ============
</TABLE>
(a) COMMENCED OPERATIONS ON NOVEMBER 2, 1998.
(b) FORMERLY KNOWN AS CLASS Y SHARES.
NATIONWIDE 43
<PAGE> 46
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
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 provides investment management
evaluation services in initially selecting and monitoring on an ongoing basis
the performance of the subadvisers. The subadvisers manage the Fund's
investments and have the responsibility for making all investment decisions for
the applicable Funds. Under the terms of the investment advisory agree- ment,
each Fund pays VMF a management fee, based on the Fund's average daily net
assets. From such fees, pursuant to the sub- advisory agreements, VMF pays fees
to the applicable subadviser. Additional information regarding investment
advisory fees for VMF and the subadvisory fees is as follows for the six-month
period ended April 30, 2000:
<TABLE>
<CAPTION>
FUND AND TOTAL ADVISORY ADVISORY FEES SUBADVISORY FEE TOTAL FEES PAID TO
SUBADVISOR FEES(*) RETAINED(*) FEES PAID SCHEDULE FEES RETAINED SUBADVISOR
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Large Cap Value $ 107,162 $ 57,153 $ 50,009 Up to $100 million 0.75% 0.40% 0.35%
- Brinson Partners, Inc. $100 million or more 0.70% 0.40% 0.30%
------------------------------------------------------------------------------------------------------------------------------------
Large Cap Growth $ 179,924 $ 89,962 $ 89,962 Up to $150 million 0.80% 0.40% 0.40%
- Goldman Sachs $150 million or more 0.70% 0.40% 0.30%
Asset Management
------------------------------------------------------------------------------------------------------------------------------------
Balanced $ 32,109 $ 17,125 $ 14,984 Up to $100 million 0.75% 0.40% 0.35%
- J.P. Morgan Investment $100 million or more 0.70% 0.40% 0.30%
Management, Inc.
------------------------------------------------------------------------------------------------------------------------------------
Small Cap $ 116,126 $ 48,895 $ 67,231 Up to $100 million 0.95% 0.40% 0.55%
-INVESCO Management & Research, Inc. $100 million or more 0.80% 0.40% 0.40%
------------------------------------------------------------------------------------------------------------------------------------
International $ 66,438 $ 31,265 $ 35,173 Up to $200 million 0.85% 0.40% 0.45%
- Lazard Asset Management $200 million or more 0.80% 0.40% 0.40%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(*)Before waivers
VMF has voluntarily agreed to waive advisory fees, and if necessary, reimburse
expenses (except for Rule 12b-1 and Administrative Service Fees) of each Fund in
order to limit annual Fund operating expenses at or below stated expense caps.
The following table illustrates the stated expense caps for each class of share
for the six-month period ended April 30, 2000:
<TABLE>
<CAPTION>
Expense Caps
-------------------------------------------------------------------
Institutional
Fund Class A Shares Class B Shares Service Class
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Large Cap Value 1.15% 1.90% 1.00%
Large Cap Growth 1.20% 1.95% 1.05%
Balanced 1.10% 1.85% 0.95%
Small Cap 1.35% 2.10% 1.20%
International 1.30% 2.05% 1.25%
</TABLE>
44 NATIONWIDE
<PAGE> 47
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
During the six-month period ended April 30, 2000, VMF reduced expenses for the
Funds as follows:
<TABLE>
<CAPTION>
TOTALFEES/
OTHER FEES/ EXPENSES
TOTAL FUND FEES EXPENSES WAIVED/ NET FUND
FUND EXPENSES WAIVED REIMBURSED REIMBURSED EXPENSES
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Large Cap Value $ 224,800 $ 60,381 $ - $ 60,381 $ 164,419
Large Cap Growth 334,161 61,528 - 61,528 272,633
Balanced 116,435 63,683 - 63,683 52,752
Small Cap 249,655 85,400 - 85,400 164,255
International 163,165 61,392 - 61,392 101,773
</TABLE>
Each waiver of advisory fees and/or assumption of other expenses by VMF for a
Fund is subject to a possible reimbursement by that Fund at a later date when
the Fund has reached a sufficient asset size if such reimbursement can be
achieved within the foregoing annual expense limitations.
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 Class A and Class B shares of the Funds. These fees are
based on average daily net assets of the respective class of the Funds at an
annual rate not to exceed 0.25% for Class A shares and 1.00% for Class B shares.
For the six-month period ended April 30, 2000, the Funds paid distribution fees
as follows:
<TABLE>
<CAPTION>
FUND CLASS A SHARES CLASS B SHARES
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Large Cap Value $ 34,154 $ 1,174
Large Cap Growth 44,678 11,001
Balanced 3,627 11,064
Small Cap 26,624 1,928
International 18,270 619
</TABLE>
Pursuant to an Underwriting Agreement, NAS serves as principal underwriter of
the Funds in the continuous distribution of their Class A 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 shares. From such fees,
NAS pays sales commissions, salaries, and other expenses in connection with
generating new sales of Class A shares of the Funds. For the six-month period
ended April 30, 2000, the commissions were collected as follows:
<TABLE>
<CAPTION>
FUND CLASS A SHARES
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
Large Cap Value $ 4,370
Large Cap Growth 44,307
Balanced 9,239
Small Cap 14,366
International 2,476
</TABLE>
NATIONWIDE 45
<PAGE> 48
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
NAS 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:
FUND CLASS B SHARES
--------------------------------------------------------------------------------
Large Cap Value $ 6,241
Large Cap Growth 61,809
Balanced 6,110
Small Cap 13,446
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
the Funds' average daily net assets and paid monthly. During the six- month
period ended April 30, 2000, the Funds paid fund administration fees
according to the following schedule:
<TABLE>
<CAPTION>
FUND ADMINISTRATION FUND ADMINISTRATION
FUND FEE(*) FEE SCHEDULE
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Large Cap Value $ 37,407 Up to $250 million 0.10%
Large Cap Growth 37,407 Next $750 million 0.06%
Balanced 37,407 On $1 billion and more 0.04%
Small Cap 37,407
International 37,407
(*)The Fund Administration fee is subject to a minimum of $75,000 per Fund
per year.
</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 $18 per account for Class A and Class B shares and 0.01% of the
average daily net assets of the Institutional 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 Fund.
46 NATIONWIDE
<PAGE> 49
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
Under the terms of an Administrative Services Plan, the Funds pays 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 Institutional Service Class
shares. For the six-month period ended April 30, 2000, the Funds paid the
following administrative services fees:
<TABLE>
<CAPTION>
INSTITUTIONAL
CLASS A SHARES SERVICE CLASS SHARES
-------------------------------------------------------------------------
<S> <C> <C>
Large Cap Value $ 20,414 $ 1,305
Large Cap Growth 25,672 8,885
Balanced 308 1,925
Small Cap 15,813 3,611
International 10,993 1,141
</TABLE>
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 0.50%. 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>
Large Cap Value $20,004,434 $13,671,448 $ - $ -
Large Cap Growth 22,074,199 20,128,903 - -
Balanced 2,537,224 1,675,738 8,062,158 7,759,314
Small Cap 18,923,158 16,397,996 - -
International 7,060,425 5,885,619 - -
</TABLE>
NATIONWIDE 47
<PAGE> 50
NOTES TO FINANCIAL STATEMENTS CONTINUED
--------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
Realized gains and losses have been computed on the first-in, first-out
basis. Included in net unrealized appreciation at April 30, 1999, are as
follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION (DEPRECIATION) APPRECIATION
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Large Cap Value $2,214,006 $ (1,936,123) $ 277,883
Large Cap Growth 9,594,373 (2,932,563) 6,661,811
Balanced 1,081,698 (483,479) 598,219
Small Cap 4,140,072 (2,214,961) 1,925,110
International 1,296,654 (1,038,234) 258,420
</TABLE>
The Large Cap Growth and Large Cap Value Fund engaged in trading financial
futures contracts. Each of these Funds is exposed to market risks in excess of
the amounts recognized in the statement of assets and liabilities as a result of
changes in the value of the underlying financial instruments. Investments in
financial futures require the Fund to "mark to market" such futures on a daily
basis to reflect the changes in the market value of the contract at the close of
each day's trading. Typically, variation margin payments are made or received to
reflect daily unrealized gains or losses. When the contracts are closed, the
Fund recognizes a realized gain or loss. Realized gains and losses have been
computed on the specific identification method.
A stock index futures contract is a bilateral agreement pursuant to which two
parties agree to take or make delivery of any amount of cash equal to a
specified dollar amount times the difference between the stock index value at
the close of trading on the contracts and the price at which the futures
contract was originally struck. The Fund's purpose in entering into futures
contracts is to remain fully invested and reduce transaction costs.
Restricted cash represents collateral for the Funds' investments in futures
trading.
48 NATIONWIDE
<PAGE> 51
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
Elizabeth A. Davin - Secretary
Alaina V. Metz - Assistant Secretary
Patricia J. Smith - Assistant Secretary
Charles S. Bath - Assistant Treasurer
Taylor E. Drake - Assistant Treasurer
Laurice A. Frysinger - Assistant Treasurer
Edwin P. McCausland, Jr. - Assistant Treasurer
Karen R. Tackett - Assistant Treasurer
Nancy A. Wiser - Assistant Treasurer
INVESTMENT ADVISER
Villanova Mutual Fund Capital Trust
Three Nationwide Plaza
Columbus, Ohio
43216-1492
TRANSFER AGENT
Nationwide Investors Services, Inc.
P.O. Box 1492
Columbus, Ohio 43216-1492
CUSTODIAN
The Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263-0001
LEGAL COUNSEL
Dietrich, Reynolds & Koogler
One Nationwide Plaza
Columbus, Ohio 43215-2220
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
Two Nationwide Plaza
Columbus, Ohio 43215-2537
DISTRIBUTOR
Nationwide Advisory Services, Inc.
Three Nationwide Plaza
Columbus, Ohio 43215-2220
--------------------------------------------------------------------------------
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.
