<PAGE> 1
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
ANNUAL REPORT
OCTOBER 31, 2000
<PAGE> 2
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND*
ANNUAL REPORT
OCTOBER 31, 2000
TABLE OF CONTENTS
<TABLE>
<S> <C>
Management Discussion of Fund Performance................... 3
Statement of Investments.................................... 4
Statement of Assets and Liabilities......................... 12
Statement of Operations..................................... 13
Statements of Changes in Net Assets......................... 14
Financial Highlights........................................ 15
Notes to Financial Statements............................... 18
Independent Auditors' Report................................ 25
Shareholder Meeting......................................... 26
</TABLE>
---------------
* "Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", "Standard & Poor's 500", and
"500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed
for use by the Fund. The Fund is not sponsored, endorsed, sold or promoted by
Standard & Poor's and Standard & Poor's makes no representation regarding the
advisability of investing in the Fund. For further information regarding the
trademark licenses, see the Fund's Statement of Additional Information.
<PAGE> 3
NATIONWIDE S&P 500 INDEX FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the 12 months ended October 31, 2000, the Nationwide S&P 500 Index Fund
returned 5.71%(a) versus 6.09% for the S&P 500 Index, the benchmark index. Fund
Asset Management, the subadviser, began managing this Fund in late December
1999.
The portfolio met its objective of replicating the benchmark's return; however,
the performance differential is primarily due to Fund fees and expenses.
The returns for large capitalization securities were particularly lackluster.
Year to date, large cap stocks--measured by the S&P 500 Index--returned -1.81%.
Small cap stocks--measured by the Russell 2000 Index --were not strong either,
returning -0.47%. Mid cap stocks, on the other hand, reigned supreme. The
Russell 400 Midcap Index returned an impressive 18.07%.
During the first 10 months of 2000, basic materials, communication services, and
consumer cyclicals stocks were the largest contributors to the Fund's and
Index's negative returns. These poor contributions were offset by strong returns
in financials, utilities and health care stocks.
As of October 31, 2000, the technology sector represented more than 29% of the
total capitalization of the S&P 500 Index and the Fund. Nevertheless, this
figure is down considerably from June 30, 2000, when technology made up more
than 33%. The decrease is attributable to the tech sector's poor performance in
the latter part of this year.
During the period, the Index -- and therefore the Fund -- went through 38
composition changes, including the notable additions of JDS Uniphase and
VERITAS. The Fund was able to benefit from its trading of these Index changes,
as our executions were superior to the Index's inclusion prices.
---------------
(a) Performance of Class A shares without sales charge and assuming all
distributions are reinvested.
PORTFOLIO MANAGER: FUND ASSET MANAGEMENT--SUBADVISER
PORTFOLIO MARKET VALUE $328,263,577
OCTOBER 31, 2000
PORTFOLIO COMPOSITION
(Subject to Change)
Repurchase Agreement 0.3%
S&P 500 Depositary Receipts 1.9%
Common Stock 97.8%
AVERAGE ANNUAL (COMPOUND) TOTAL RETURNS
(For Periods Ended October 31, 2000)
<TABLE>
<CAPTION>
INSTITUTIONAL
CLASS A SHARES(1) CLASS B SHARES(2) CLASS
YEARS W/O SC** W/SC(3) W/O SC** W/SC(4) SHARES(5)*
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------
1 5.71% 0.38% 5.17% 0.17% 6.01%
Life(6) 11.45% 8.58% 11.20% 10.04% 11.59%
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SERVICE INSTITUTIONAL LOCAL
CLASS SERVICE CLASS FUND
YEARS SHARES(7)* SHARES(7)* SHARES*
<S> <C> <C> <C>
---------------------------------------------
1 5.25% 5.37% 5.43%
Life(6) 11.01% 11.21% 11.32%
---------------------------------------------
</TABLE>
All figures showing the effect of a sales charge reflect the maximum charge
possible, because it has the most dramatic effect on performance date.
* Not subject to any sales charges.
** These returns do not reflect the effects of a sales charge (SC).
(1) Performance includes that of Local Fund Shares, which was achieved prior to
the creation of Class A on December 29, 1999, restated to reflect Class A
Shares' maximum sales charge but not its estimated expenses. Had this class
been in existence for the time periods presented, the performance of the
class would have been lower as a result of its additional expenses.
(2) Performance includes that of Local Fund Shares, which was achieved prior to
the creation of Class B on December 29, 1999, restated to reflect Class B
Shares' contingent deferred sales charge but not its estimated expenses.
Had this class been in existence for the time periods presented, the
performance of the class would have been lower as a result of its
additional expenses.
(3) The 5.75% maximum front-end sales charge was deducted.
(4) The 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The
CDSC declines to 0% after 6 years.
(5) Performance includes that of Local Fund Shares, which was achieved prior to
the creation of the Institutional Class on December 29, 1999 (Local Fund
shares began operation July 24, 1998), and does not reflect the impact of
the Institutional Class Shares' lower estimated expenses.
(6) The Fund's Local Fund Shares began operations July 24, 1998.
(7) Performance of the Service Class and Institutional Service Class Shares
(formerly Class R and Class Y, respectively) represents that of Local Fund
Shares, which was achieved prior to the creation of the two classes on
November 2, 1998. Had these classes been in existence for the time periods
present, performance would have been lower as a result of additional
expenses.
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.
FUND PERFORMANCE - LOCAL FUND SHARES
<TABLE>
<CAPTION>
LOCAL FUND SHARES S&P 500
----------------- -------
<S> <C> <C>
7/98 10000.00 10000.00
10/99 12345.00 12567.00
10/00 13016.00 13333.00
</TABLE>
Comparative performance of $10,000 invested in the Nationwide S&P 500 Index Fund
and the S&P 500 Stock Index*** since inception (7/24/98) to 10/31/00. Unlike our
Fund, the S&P 500 Stock Index does not reflect any fees or expenses.
---------------
*** The S&P 500 Stock Index is a capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through
changes in the aggregate market value of these 500 stocks which represent
all major industries.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 3
<PAGE> 4
Continued
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- AFFILIATED (0.4%)
INVESTMENT MANAGEMENT (0.4%)
20,125 Merrill Lynch & Co., Inc.
TOTAL COMMON STOCK -- AFFILIATED
(cost $1,083,448) $ 1,408,750
------------
COMMON STOCK -- UNAFFILIATED (97.6%)
ADVERTISING SERVICES (0.1%):
7,300 Interpublic Group of Cos., Inc.
(The) 313,444
------------
AEROSPACE (0.5%)
5,500 General Dynamics Corp. 393,594
10,800 Lockheed Martin Corp. 387,180
2,100 Northrop Grumman Corp. 176,400
12,300 United Technologies Corp. 858,694
------------
1,815,868
------------
AEROSPACE / DEFENSE (0.9%)
23,307 Boeing Co. (The) 1,580,505
3,000 Goodrich (B.F.) Co. 122,813
20,925 Honeywell International, Inc. 1,126,027
------------
2,829,345
------------
AIRLINES (0.3%)
3,300 AMR Corp. 108,075
3,100 Delta Air Lines, Inc. 146,475
6,600 Fed Ex* 309,276
12,675 Southwest Airlines Co. 361,238
1,300 U.S. Airways Group, Inc.* 49,075
------------
974,139
------------
ALUMINUM (0.1%)
9,399 Alcan Aluminum Ltd. 296,656
------------
APPAREL (0.1%)
6,300 Nike, Inc. Class B 251,606
2,000 Reebok International Ltd. 43,125
------------
294,731
------------
APPAREL & ACCESSORIES (0.0%)
1,700 Liz Claiborne, Inc. 72,250
2,100 V.F. Corp. 57,356
------------
129,606
------------
APPLIANCE & HOUSEHOLD DURABLE (0.0%)
7,051 Newell Rubbermaid, Inc. 135,291
------------
AUTO PARTS & EQUIPMENT (0.1%)
3,000 Dana Corp. 66,563
12,395 Delphi Automotive Systems Corp. 194,446
------------
261,009
------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
AUTOMOBILES (0.3%)
13,513 General Motors Corp. $ 839,495
2,300 PACCAR, Inc. 96,744
4,071 Visteon Corp. 72,006
------------
1,008,245
------------
BANKS (1.9%)
42,074 Bank of America Corp. 2,022,182
18,400 Bank of New York Co., Inc. 1,059,150
32,600 Chase Manhattan Corp. (The) 1,483,300
12,500 Mellon Financial Corp. 603,125
6,000 Northern Trust Corp. 512,250
4,000 State Street Corp. 498,960
------------
6,178,967
------------
BEVERAGES / ALCOHOLIC (0.2%)
1,200 Adolph Coors Co. Class B 76,425
1,300 Brown-Forman Corp. Class B 79,138
11,400 Seagram Co. Ltd. 651,225
------------
806,788
------------
BEVERAGES / SOFT DRINK (1.2%)
63,700 Coca-Cola Co. 3,845,888
9,400 Coca-Cola Enterprises, Inc. 172,725
------------
4,018,613
------------
BIOTECHNOLOGY (0.2%)
5,200 PE Corp. - PE Biosystems Group 608,400
------------
BROADCAST MEDIA / CABLE TELEVISION (2.0%)
14,802 Clear Channel Communications,
Inc.* 889,045
23,700 Comcast Corp. Special Class A* 965,775
33,800 Time Warner, Inc. 2,565,758
38,735 Viacom, Inc. Class B* 2,203,053
------------
6,623,631
------------
BUSINESS SERVICES (0.2%)
10,700 Compuware Corp. 84,263
3,911 Convergys Corp.* 170,373
2,000 NCR Corp.* 86,250
7,100 Pitney Bowes, Inc. 210,781
------------
551,667
------------
CAPITAL GOODS (0.7%)
1,000 Briggs & Stratton Corp. 35,688
850 Crane Co. 22,259
1,400 Cummins Engine, Inc. 47,600
6,500 Deere & Co. 239,281
4,500 Dover Corp. 190,969
3,400 Genuine Parts Co. 72,463
1,300 McDermott International, Inc. 12,594
10,400 Minnesota Mining & Manufacturing
Co. 1,004,899
</TABLE>
Continued
4 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 5
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000 (CONTINUED)
Continued
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- UNAFFILIATED (CONTINUED)
CAPITAL GOODS (CONTINUED)
2,100 Pall Corp. $ 45,281
3,100 Parker-Hannifin Corp. 128,263
1,400 PerkinElmer, Inc. 167,300
1,900 Snap-On, Inc. 48,569
1,400 Stanley Works (The) 37,275
3,100 Textron, Inc. 156,356
------------
2,208,797
------------
CHEMICALS (0.2%)
1,000 FMC Corp.* 76,000
800 Grace (W.R.) & Co.* 3,050
1,200 Great Lakes Chemical Corp. 40,050
1,500 Millipore Corp. 78,750
4,200 Praxair, Inc. 156,450
2,600 Sigma-Aldrich Corp. 92,950
3,600 Union Carbide Corp. 154,800
------------
602,050
------------
CHEMICALS / DIVERSIFIED (0.8%)
4,900 Air Products & Chemicals, Inc. 182,831
3,400 Avery Dennison Corp. 171,700
17,600 Dow Chemical Co. 539,000
26,050 E.I. du Pont de Nemours and Co. 1,182,018
2,200 Eastman Chemical Co. 94,325
2,200 Engelhard Corp. 45,925
3,800 Hercules, Inc. 69,588
7,900 Occidental Petroleums Corp. 157,013
5,631 Rohm & Haas Co. 169,282
------------
2,611,682
------------
COMMUNICATION EQUIPMENT (6.4%)
181,339 Cisco Systems, Inc.* 9,769,638
6,400 Conexant Systems, Inc. * 168,400
22,575 Corning, Inc. 1,726,988
23,892 JDS Uniphase Corp.* 1,944,212
85,370 Lucent Technologies, Inc. 1,990,188
55,006 Motorola, Inc. 1,371,712
76,310 Nortel Networks Corp. ADR 3,472,104
10,000 Tellabs, Inc.* 499,375
------------
20,942,617
------------
COMPUTER / HARDWARE (1.5%)
9,200 Apple Computer, Inc.* 179,975
45,006 International Business Machines
Corp. 4,433,091
3,800 Lexmark International Group, Inc.
Class A* 155,800
------------
4,768,866
------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMPUTER EQUIPMENT (3.7%)
3,200 Adaptec, Inc.* $ 50,600
5,500 American Power Conversion Corp.* 71,156
42,900 Compaq Computer Corp. 1,304,589
66,100 Dell Computer Corp.* 1,949,950
55,700 EMC Corp.* 4,960,781
7,900 Gateway, Inc. 407,719
51,000 Hewlett-Packard Co. 2,368,313
7,862 Network Appliance, Inc.* 935,578
------------
12,048,686
------------
COMPUTER INTEGRATED SYSTEMS DESIGN (0.0%)
6,823 Avaya, Inc.* 91,677
------------
COMPUTER SOFTWARE & SERVICES (9.0%)
5,800 Adobe Systems, Inc. 441,163
59,000 America Online, Inc.* 2,975,370
16,400 Automatic Data Processing, Inc. 1,071,125
7,300 BMC Software, Inc.* 148,281
4,800 Cabletron Systems, Inc.* 130,200
5,400 Citrix Systems, Inc.* 119,475
14,500 Computer Associates International,
Inc. 462,188
11,600 Electronic Data Systems Corp. 544,475
10,800 First Data Corp. 541,350
2,100 Mercury Interactive Corp.* 233,100
134,422 Microsoft Corp.* 9,258,314
9,600 Novell, Inc.* 86,400
143,816 Oracle Corp.* 4,745,927
7,800 Parametric Technology Corp.* 96,038
7,400 PeopleSoft, Inc. * 322,941
4,800 Radioshack Corp. 286,200
3,300 Sapient Corp.* 117,356
5,600 Seagate Technology, Inc.* 391,300
10,470 Siebel Systems, Inc.* 1,098,696
40,500 Sun Microsystems, Inc.* 4,490,437
6,500 Unisys Corp.* 82,875
10,139 VERITAS Software Corp.* 1,429,757
13,800 Yahoo!, Inc.* 809,025
------------
29,881,993
------------
CONGLOMERATES (1.0%)
7,400 Illinois Tool Works, Inc. 411,163
4,700 Ingersoll-Rand Co. 177,425
1,700 ITT Industries, Inc. 55,356
2,000 Johnson Controls, Inc. 119,250
43,064 Tyco International Ltd. 2,441,190
------------
3,204,384
------------
CONSTRUCTION & BUILDING MATERIALS (0.1%)
2,100 Centex Corp. 77,700
1,700 Fluor Corp. 59,500
1,900 Kaufman & Broad Home Corp. 56,525
</TABLE>
Continued
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 5
<PAGE> 6
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000 (CONTINUED)
Continued
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- UNAFFILIATED (CONTINUED)
CONSTRUCTION & BUILDING MATERIALS (CONTINUED)
3,200 Sherwin Williams Co. $ 69,400
2,000 Vulcan Materials Co. 84,000
------------
347,125
------------
CONSTRUCTION & HOUSING (0.1%)
10,100 Masco Corp. 188,744
------------
CONSTRUCTION MACHINERY (0.1%)
8,900 Caterpillar, Inc. 312,056
------------
CONSUMER DURABLE (0.2%)
2,800 Black & Decker Corp. 105,350
3,300 Danaher Corp. 208,313
3,100 Fortune Brands, Inc. 91,256
2,200 Whirlpool Corp. 95,700
------------
500,619
------------
CONSUMER FINANCE (1.8%)
114,933 Citigroup, Inc. 6,048,349
------------
CONSUMER NON-CYCLICAL (1.8%)
6,500 Avon Products, Inc. 315,250
5,300 Clorox Co. (The) 236,513
15,100 Colgate-Palmolive Co. 887,276
2,600 Ecolab, Inc. 101,888
27,600 Gillette Co. (The) 962,549
1,800 International Flavor & Fragrances 30,150
14,229 Kimberly-Clark Corp. 939,114
500 National Service Industries, Inc. 10,219
33,400 Procter & Gamble Co. 2,386,012
1,300 Tupperware Corp. 22,263
------------
5,891,234
------------
CONSUMER PRODUCTS (0.0%)
3,000 Polaroid Corp. 30,188
------------
CONTAINERS (0.1%):
300 Ball Corp. 10,538
800 Bemis, Inc. 20,700
2,600 Crown Cork & Seal Co., Inc. 23,725
2,600 Owens-Illinois, Inc.* 15,438
2,300 Sealed Air Corp.* 110,687
------------
181,088
------------
CREDIT REPORTING SERVICES (0.0%)
3,200 Moodys, Inc. 84,200
------------
DATA PROCESSING & REPRODUCTION (0.1%)
4,200 Computer Sciences Corp.* 264,600
------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
DISTRIBUTION (0.1%)
9,000 SYSCO Corp. $ 469,688
------------
DRILLING OIL & GAS WELLS (0.1%)
4,191 Nabors Industries, Inc.* 213,322
------------
DRUGS (6.9%)
2,900 ALZA Corp. 234,719
33,300 American Home Products Corp. 2,114,550
26,300 Amgen, Inc.* 1,523,756
4,100 Biogen, Inc.* 246,769
28,900 Eli Lilly & Co. 2,582,938
58,800 Merck & Co., Inc. 5,288,324
161,300 Pfizer, Inc. 6,966,143
32,629 Pharmacia & Upjohn, Inc. 1,794,595
37,400 Schering-Plough Corp. 1,933,113
------------
22,684,907
------------
ELECTRIC, GAS, & SANITARY SERVICES (0.2%)
8,800 Exelon Corp. 529,100
------------
ELECTRICAL EQUIPMENT (4.8%)
11,226 Agilent Technologies, Inc. 519,904
1,700 Cooper Industries, Inc. 65,025
2,000 Eaton Corp. 136,125
10,500 Emerson Electric Co. 771,094
253,100 General Electric Co. 13,873,043
2,700 Grainger (W.W.), Inc. 86,231
5,300 Rockwell International Corp. 208,356
------------
15,659,778
------------
ELECTRONICS (5.0%)
9,800 Altera Corp.* 401,188
5,609 Broadcom Corp. Class A 1,247,300
171,500 Intel Corp. 7,717,499
5,200 KLA-Tencor Corp.* 175,825
8,200 Linear Technology Corp. 529,413
8,100 LSI Logic Corp.* 266,288
7,500 Maxim Integrated Products, Inc.* 497,344
4,525 Molex, Inc. 244,350
4,700 National Semiconductor Corp. * 122,200
14,157 Palm, Inc. * 758,283
8,000 Raytheon Co. 273,500
3,848 Sanmina Corp.* 439,875
15,000 Solectron Corp.* 660,000
1,500 Tektronix, Inc. 106,875
5,000 Teradyne, Inc.* 156,250
44,200 Texas Instruments, Inc. 2,168,562
2,100 Thomas & Betts Corp. 31,763
8,200 Xilinx, Inc.* 593,988
------------
16,390,503
------------
ENTERTAINMENT (0.6%)
53,300 Walt Disney Co. (The) 1,908,806
------------
</TABLE>
Continued
6 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 7
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000 (CONTINUED)
Continued
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- UNAFFILIATED (CONTINUED)
FINANCIAL (2.2%)
18,400 Associates First Capital Corp. $ 683,100
5,300 Capital One Financial Corp. 334,563
4,100 Comerica, Inc. 247,281
3,200 Countrywide Credit Industries,
Inc. 119,800
25,700 Fannie Mae 1,978,900
3,600 Golden West Financial Corp. 201,825
5,700 Lehman Brothers Holdings, Inc. 367,650
21,154 MBNA Corp. 794,597
3,500 Paine Webber Group, Inc. 249,375
3,600 Providian Financial Corp. 374,400
34,600 Schwab (Charles) Corp. 1,215,325
13,604 Washington Mutual, Inc. 598,576
------------
7,165,392
------------
FINANCIAL / BANKS (2.4%)
8,300 AmSouth Bancorp 115,681
30,234 Bank One Corp. 1,103,541
9,400 BB&T Corp. 299,625
2,981 Bear Stearns Cos., Inc. 180,723
6,195 Charter One Financial, Inc. 142,098
5,900 C.I.T. Group, Inc. (The) 102,881
12,350 Fifth Third Bancorp 634,481
26,100 First Union Corp. 791,156
25,927 FirStar Corp. 510,438
23,816 Fleet Boston Corp. 905,008
4,744 Huntington Bancshares, Inc. 68,195
9,500 KeyCorp 234,531
14,200 National City Corp. 303,525
7,800 PNC Bank Corp. 521,625
4,400 Regions Financial Corp. 103,675
4,900 SouthTrust Corp. 158,638
5,200 Summit Bancorp 195,000
6,900 Suntrust Banks, Inc. 336,806
5,800 Synovus Financial Corp. 125,063
20,300 U.S. Bancorp Class A 491,006
2,600 Union Planters Corp. 87,913
5,200 Wachovia Corp. 280,800
------------
7,692,409
------------
FINANCIAL / MISCELLANEOUS (1.1%)
34,000 American Express Co. 2,039,999
11,800 Household International, Inc. 593,688
4,023 Morgan (J.P.) & Co., Inc. 665,807
2,590 Old Kent Financial Corp. 71,711
3,600 T. Rowe Price Associates, Inc. 168,525
------------
3,539,730
------------
FINANCIAL SERVICES (0.8%)
2,900 H&R Block, Inc. 103,494
6,200 Stilwell Financial, Inc. 277,838
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES (CONTINUED)
3,800 USA Education, Inc. $ 212,325
42,095 Wells Fargo Co. 1,949,524
------------
2,543,181
------------
FOOD & BEVERAGE (1.1%)
23,700 Anheuser-Busch Cos., Inc. 1,084,275
7,900 General Mills, Inc. 329,825
37,400 PepsiCo, Inc. 1,811,563
3,600 Quaker Oats Co. 293,625
6,900 Ralston Purina Group 167,325
------------
3,686,613
------------
FOOD & RELATED (1.6%)
13,453 Archer-Daniels-Midland Co. 147,983
9,500 Campbell Soup Co. 277,875
13,600 ConAgra, Inc. 290,700
9,500 Heinz (H.J.) Co. 398,406
2,900 Hershey Foods Corp. 157,506
9,100 Kellogg Co. 230,913
8,400 Nabisco Group Holdings Corp. 242,550
58,303 Philip Morris Cos., Inc. 2,135,346
21,800 Sara Lee Corp. 470,063
14,114 Unilever NV 717,168
2,500 Wrigley (Wm.) Jr. Co. 197,969
------------
5,266,479
------------
FURNITURE & HOME FURNISHINGS (0.0%)
3,900 Leggett & Platt, Inc. 63,863
------------
GAS - DISTRIBUTION (0.0%)
3,945 Keyspan Corp. 138,815
------------
GOLD ORE (0.1%)
10,300 Barrick Gold Corp. 137,762
2,400 Freeport-McMoRan Copper & Gold,
Inc. 19,050
5,600 Homestake Mining Co. 23,100
5,900 Newmont Mining Corp. 80,019
6,100 Placer Dome, Inc. 49,563
------------
309,494
------------
HEALTH CARE (4.7%)
39,600 Abbott Laboratories 2,091,374
3,600 Allergan, Inc. 302,625
1,500 Bard (C.R.), Inc. 62,813
1,800 Bausch & Lomb, Inc. 69,413
7,800 Baxter International, Inc. 641,063
6,500 Becton Dickinson & Co. 217,750
5,000 Biomet, Inc. 180,938
9,400 Boston Scientific Corp.* 149,813
50,200 Bristol-Myers Squibb Co. 3,059,062
7,000 Cardinal Health, Inc. 663,249
7,600 Guidant Corp.* 402,325
</TABLE>
Continued
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 7
<PAGE> 8
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000 (CONTINUED)
Continued
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- UNAFFILIATED (CONTINUED)
HEALTH CARE (CONTINUED)
13,600 HCA-The Healthcare Co. $ 543,150
11,400 HealthSouth Corp.* 136,800
6,200 Humana, Inc.* 75,175
35,500 Johnson & Johnson Co. 3,270,437
4,694 King Pharmaceuticals, Inc.* 210,350
1,400 Manor Care, Inc. 23,363
7,781 McKesson HBOC, Inc. 218,354
30,100 Medtronic, Inc. 1,634,805
3,700 Quintiles Transnational Corp.* 51,569
2,400 St. Jude Medical, Inc.* 132,000
8,300 Tenet Healthcare Corp. 326,294
4,300 UnitedHealth Group, Inc. 470,313
2,800 Watson Pharmaceutical, Inc.* 175,175
1,800 Wellpoint Health Networks, Inc.* 210,488
------------
15,318,698
------------
HOME BUILDING (0.0%)
500 Pulte Corp. 16,656
------------
HOME FURNISHINGS (0.0%)
1,000 Armstrong Holdings, Inc. 2,875
------------
HOTELS & CASINOS (0.0%)
3,600 Harrah's Entertainment, Inc.* 103,050
------------
HOTELS / MOTELS (0.2%)
17,700 Cendant Corp.* 212,400
10,500 Hilton Hotels Corp. 99,750
5,300 Marriott International, Inc. Class
A 214,650
------------
526,800
------------
HOUSEHOLD FURNISHING & APPLIANCES (0.0%)
2,200 Maytag Corp. 62,975
------------
INSURANCE (3.1%)
3,600 Aetna, Inc. 208,125
19,500 Allstate Corp. (The) 784,875
59,104 American International Group,
Inc. 5,792,191
5,750 AON Corp. 238,266
4,800 Chubb Corp. (The) 405,300
4,200 CIGNA Corp. 512,190
3,400 Cincinnati Financial Corp. 124,950
5,400 Hartford Financial Services Group 401,963
5,000 Lincoln National Corp. 241,875
2,100 Loews Corp. 190,969
2,100 MBIA, Inc. 152,644
2,800 MGIC Investment Corp.* 190,750
2,100 Progressive Corp. (The) 206,325
4,000 SAFECO Corp. 96,750
6,200 St. Paul Cos., Inc. 317,750
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
INSURANCE (CONTINUED)
2,400 Torchmark Corp. $ 79,950
5,557 Unum Provident Corp. 156,985
------------
10,101,858
------------
INSURANCE / LIFE (0.4%)
6,400 AFLAC, Inc. 467,600
6,800 American General Corp. 547,400
10,800 Conseco, Inc. 74,925
2,200 Jefferson-Pilot Corp. 151,250
------------
1,241,175
------------
INSURANCE BROKERS (0.3%)
7,100 Marsh & McLennan Cos., Inc. 928,325
------------
INVESTMENT MANAGEMENT (0.8%)
5,400 Franklin Resources, Inc. 231,336
28,776 Morgan Stanley Dean Witter & Co. 2,311,073
------------
2,542,409
------------
JEWELRY, PRECIOUS METAL (0.0%)
344 Jostens, Inc.* 4,988
------------
LEISURE PRODUCTS (0.2%)
1,800 Brunswick Corp. 34,988
14,700 Carnival Corp. 364,743
3,300 Hasbro, Inc. 35,475
12,000 Mattel, Inc. 155,250
------------
590,456
------------
MANUFACTURING (0.0%)
1,900 Power-One, Inc.* 134,781
------------
MANUFACTURING/DIVERSIFIED (0.1%)
4,600 PPG Industries, Inc. 205,275
------------
METAL PROCESSORS (0.0%)
3,600 Thermo Electron Corp.* 104,400
700 Timken Co. 9,844
------------
114,244
------------
METALS (0.1%)
3,400 Inco Ltd. 52,488
2,408 Phelps Dodge Corp. 112,574
------------
165,062
------------
METALS & MINING (0.2%)
22,332 Alcoa, Inc. 640,649
------------
MORTGAGE / ASSET BACKED OBLIGATIONS (0.3%)
18,200 Freddie Mac 1,092,000
------------
</TABLE>
Continued
8 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 9
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000 (CONTINUED)
Continued
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- UNAFFILIATED (CONTINUED)
MOTOR VEHICLES (0.2%)
7,600 Harley-Davidson, Inc. $ 366,225
2,000 Navistar International Corp.* 66,125
2,600 TRW, Inc. 109,200
------------
541,550
------------
MOTOR VEHICLES & CAR BODIES (0.4%)
48,172 Ford Motor Company 1,258,494
------------
NATURAL GAS (0.1%)
1,100 Eastern Enterprises 70,813
500 NICOR, Inc. 17,656
400 ONEOK, Inc. 15,850
800 People's Energy Corp. 27,500
3,915 Sempra Energy 80,991
------------
212,810
------------
OFFICE EQUIPMENT & SUPPLIES (0.0%)
19,100 Xerox Corp. 161,156
------------
OIL & GAS (5.6%):
2,200 Amerada Hess Corp. 136,400
3,500 Apache Corp. 193,594
1,200 Ashland, Inc. 39,300
17,000 Chevron Corp. 1,396,125
5,800 Coastal Corp. (The) 437,538
2,300 Columbia Energy Group 165,456
15,007 Conoco, Inc. 408,003
3,601 Devon Energy Corp. 181,490
6,300 El Paso Energy Corp. 394,931
18,600 Enron Corp. 1,526,363
88,989 Exxon Mobil Corp. 7,936,705
3,100 Rowan Cos., Inc.* 78,081
54,800 Royal Dutch Petroleum Co. 3,253,749
1,500 Sunoco, Inc. 44,906
14,500 Texaco, Inc. 856,406
5,600 Transocean Sedco Forex, Inc. 296,800
5,300 Unocal Corp. 180,863
7,700 USX-Marathon Group 209,344
11,000 Williams Cos., Inc. (The) 459,938
------------
18,195,992
------------
OIL & GAS FIELD MACHINERY (0.4%)
6,057 Anadarko Petroleum Corp. 387,950
6,100 Burlington Resources, Inc. 219,600
2,784 Kerr-Mcgee Corp. 181,830
6,200 Phillips Petroleum Co. 382,850
4,100 Tosco Corp. 117,363
------------
1,289,593
------------
OIL EQUIPMENT & SERVICES (0.7%)
7,770 Baker Hughes, Inc. 267,094
7,600 Dynegy, Inc. 351,975
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
OIL EQUIPMENT & SERVICES (CONTINUED)
11,600 Halliburton Co. $ 429,925
14,300 Schlumberger Ltd. 1,088,587
------------
2,137,581
------------
PAPER & FOREST PRODUCTS (0.4%)
1,900 Boise Cascade Corp. 54,506
4,400 Fort James Corp. 144,925
4,800 Georgia Pacific Corp. 129,000
11,596 International Paper Co. 424,704
3,600 Louisiana-Pacific Corp. 30,600
3,200 Mead Corp. 92,600
2,500 Pactiv Corp.* 26,250
300 Potlatch Corp. 10,050
1,600 Temple-Inland, Inc. 71,600
3,000 Westvaco Corp. 85,500
6,000 Weyerhaeuser Co. 281,625
3,100 Williamette Industries, Inc. 112,569
------------
1,463,929
------------
PHARMACEUTICALS (0.1%)
5,100 MedImmune, Inc.* 333,413
------------
PHOTOGRAPHIC (0.1%)
8,400 Eastman Kodak Co. 376,950
------------
POLLUTION CONTROL (0.1%)
3,300 Allied Waste Industries, Inc. 30,525
14,700 Waste Management, Inc. 294,000
------------
324,525
------------
PRINTING & PUBLISHING (0.5%)
2,300 American Greetings Corp. Class A 41,831
2,200 Donnelley (R.R.) & Sons Co. 47,300
1,900 Dow Jones & Co., Inc. 111,863
7,200 Gannett Co., Inc. 417,600
2,500 Knight-Ridder, Inc. 125,625
5,400 McGraw-Hill Cos., Inc. (The) 346,613
800 Meredith Corp. 25,400
3,600 New York Times Co. (The) Class A 132,300
7,157 Tribune Co. 265,256
------------
1,513,788
------------
RAILROADS (0.2%)
9,800 Burlington Northern Santa Fe
Corp. 260,313
5,900 CSX Corp. 149,344
8,200 Norfolk Southern Corp. 115,825
6,200 Union Pacific Corp. 290,624
------------
816,106
------------
RESTAURANTS (0.4%)
2,100 Darden Restaurants, Inc. 47,250
34,500 McDonald's Corp. 1,069,500
</TABLE>
Continued
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 9
<PAGE> 10
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000 (CONTINUED)
Continued
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- UNAFFILIATED (CONTINUED)
RESTAURANTS (CONTINUED)
4,000 Tricon Global Restaurants, Inc.* $ 120,000
3,500 Wendy's International, Inc. 76,125
------------
1,312,875
------------
RETAIL (4.2%)
2,700 Autozone, Inc. 72,394
7,700 Bed, Bath & Beyond, Inc.* 198,756
4,900 Best Buy Co., Inc. 245,919
6,500 Circuit City Stores-Circuit City
Group 86,125
1,700 Consolidated Stores Corp.* 20,188
12,000 Costco Wholesale Corp.* 439,500
9,800 CVS Corp. 518,788
3,100 Dillard's, Inc. Class A 32,550
7,310 Dollar General Corp. 113,305
4,600 Federated Department Stores, Inc.* 149,788
21,600 Gap, Inc. 557,550
1,400 Harcourt General, Inc. 78,470
59,150 Home Depot, Inc. 2,543,449
13,100 Kmart Corp.* 77,781
8,300 Kohl's Corp.* 449,756
11,400 Limited, Inc. (The) 287,850
10,200 Lowe's Cos., Inc. 466,013
8,700 May Department Stores Co. (The) 228,375
2,700 Nordstrom, Inc. 44,381
10,100 Office Depot, Inc.* 83,956
5,400 Penney (J.C), Co., Inc. 63,113
8,500 Sears, Roebuck & Co. 252,705
12,600 Staples, Inc.* 179,550
5,000 Starbucks Corp.* 223,438
22,400 Target Corp. 618,799
3,800 Tiffany & Co. 162,213
6,500 TJX Cos., Inc. 177,125
4,400 Toys 'R' Us, Inc.* 75,625
114,100 Wal-Mart Stores, Inc. 5,177,287
------------
13,624,749
------------
RETAIL / FOOD & DRUG (0.8%)
11,734 Albertson's, Inc. 277,949
21,500 Kroger Co.* 485,094
400 Longs Drug Stores Corp. 8,750
13,200 Safeway, Inc.* 721,875
2,300 Supervalu, Inc. 35,363
26,300 Walgreen Co. 1,199,937
2,600 Winn-Dixie Stores, Inc. 50,050
------------
2,779,018
------------
SEMICONDUCTORS (0.8%)
7,100 Advanced Micro Devices, Inc.* 160,638
8,900 Analog Devices, Inc.* 578,500
20,400 Applied Materials, Inc.* 1,083,749
13,900 Micron Technology, Inc.* 483,025
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
SEMICONDUCTORS (CONTINUED)
3,800 Novellus Systems, Inc.* $ 155,563
------------
2,461,475
------------
SERVICES (0.5%)
1,900 Autodesk, Inc. 41,919
2,900 Ceridian Corp.* 72,500
900 Deluxe Corp. 20,306
2,800 Equifax, Inc. 96,600
6,400 IMS Health, Inc. 151,200
4,800 Omnicom Group 442,800
9,975 Paychex, Inc. 565,458
2,400 Ryder System, Inc. 47,400
3,617 Sabre Holdings, Inc. 120,943
------------
1,559,126
------------
STEEL (0.1%)
1,400 Allegheny Teledyne, Inc. 28,350
3,400 Bethlehem Steel Corp.* 9,775
2,500 Nucor Corp. 86,718
3,300 USX-U.S. Steel Group, Inc. 52,594
1,000 Worthington Industries, Inc. 9,563
------------
187,000
------------
TECHNOLOGY (0.1%)
4,100 Comverse Technology, Inc.* 458,175
------------
TELECOMMUNICATIONS (6.9%)
18,993 ADC Telecommunications, Inc.* 405,975
8,200 ALLTEL Corp. 528,388
2,400 Andrew Corp.* 63,150
95,934 AT&T Corp. 2,224,469
47,900 Bellsouth Corp. 2,314,168
3,700 CenturyTel, Inc. 142,450
22,185 Global Crossing Ltd. * 524,121
19,000 Nextel Communications, Inc.* 730,313
18,800 QUALCOMM, Inc.* 1,224,056
42,911 Qwest Communications
International, 2,086,547
Inc.*
86,641 SBC Communications, Inc. 4,998,102
3,800 Scientific-Atlanta, Inc. 260,063
23,100 Sprint Corp. (FON Group) 589,050
23,300 Sprint Corp. (PCS Group)* 888,313
69,476 Verizon Communications 4,016,581
73,444 Worldcom, Inc.* 1,744,295
------------
22,740,041
------------
TEXTILES (0.0%)
300 Russell Corp. 4,800
800 Springs Industries, Inc. Class A 18,850
------------
23,650
------------
TIRE & RUBBER (0.0%)
900 Cooper Tire & Rubber Co. 9,844
4,900 Goodyear Tire & Rubber Co. 90,650
------------
100,494
------------
</TABLE>
Continued
10 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 11
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF INVESTMENTS -- OCTOBER 31, 2000 (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
COMMON STOCK -- UNAFFILIATED (CONTINUED)
TOBACCO (0.0%)
3,300 UST, Inc. $ 83,325
------------
UTILITIES (1.9%)
11,117 AES Corp.* 628,110
3,800 Ameren Corp. 151,050
8,240 American Electric Power Co., Inc. 341,960
3,400 C P & L Energy, Inc. 137,063
3,100 Cinergy Corp. 94,938
3,700 CMS Energy Corp. 99,900
4,500 Consolidated Edison, Inc. 158,344
4,500 Constellation Energy Group, Inc. 187,594
6,467 Dominion Resources, Inc. 385,190
3,000 DTE Energy Co. 108,375
9,700 Duke Power Co. 838,443
9,500 Edison International 226,813
6,200 Entergy Corp. 237,538
4,800 FirstEnergy Corp. 124,200
4,800 Florida Power & Light, Inc. 316,800
2,800 Florida Progress Corp. 148,925
3,800 GPU, Inc. 125,638
3,100 Niagara Mohawk Holdings, Inc.* 49,600
10,800 PG&E Corp. 290,925
1,700 Pinnacle West Capital Corp. 73,844
2,900 PP&L Resources, Inc. 119,444
4,700 Public Service Enterprise Group,
Inc. 195,050
8,100 Reliant Energy, Inc. 334,631
17,400 Southern Co. 511,124
7,200 TXU Corp. 266,850
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
UTILITIES (CONTINUED)
7,710 Xcel Energy, Inc. $ 197,087
------------
6,349,436
------------
TOTAL COMMON STOCK -- UNAFFILIATED
(cost $314,560,284) 319,414,962
------------
PREFERRED STOCK (0.0%)
CONSUMER NON-DURABLE (0.0%)
900 Alberto Culver Co. Class B (cost
$24,740) 30,206
------------
S&P 500 DEPOSITARY RECEIPTS (2.0%)
44,251 S&P 500 Depositary Receipts
(cost $6,113,243) 6,330,659
------------
<CAPTION>
------------------------------------------------------------
PRINCIPAL SECURITY VALUE
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (0.3%)
$1,079,000 Fifth Third Bank, 6.35%, 10/31/00,
matures 11/01/00,
Collateralized by $1,078,163 FHLM
Pool #C01080, 8.00%, 10/01/30
market value $1,100,580
TOTAL REPURCHASE AGREEMENT
(cost $1,079,000) 1,079,000
------------
TOTAL INVESTMENTS
(cost $322,860,715) $328,263,577
============
</TABLE>
-------------------------------------------------------
The abbreviations in the above statement stand for the following:
<TABLE>
<S> <C>
FHLM -- Federal Home Loan Mortgage
</TABLE>
* Denotes a non-income producing security.
Cost for Federal income tax purposes: $324,567,559.
Portfolio holding percentages based on net assets of $327,305,479.
See accompanying notes to the financial statements.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 11
<PAGE> 12
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, unaffiliated, at value (cost
$320,698,267) $325,775,827
Investments in securities, affiliated, at value (cost
$1,083,448) 1,408,750
Repurchase Agreements, at value (cost $1,079,000) 1,079,000
Cash 643
Receivable from adviser 44,578
Interest and dividends receivable 211,171
Prepaid and other assets 27,529
------------
Total Assets 328,547,498
------------
LIABILITIES:
Payable for investment securities purchased 1,093,351
Accrued expenses and other payables:
Investment advisory fees 34,510
Fund administration fees 13,273
Transfer agent fees 3,600
Distribution fees 24,668
Administrative servicing fees 51,654
Other 20,963
------------
Total Liabilities 1,242,019
------------
Net Assets $327,305,479
============
NET ASSETS:
Capital $318,676,195
Accumulated net investment income 153,895
Net unrealized appreciation from investments 5,402,862
Accumulated net realized gains from investment
transactions 3,072,527
------------
NET ASSETS $327,305,479
============
NET ASSETS:
Class A Shares $ 2,214,297
Class B Shares 986,639
Institutional Class Shares 92,190,388
Service Class Shares(a) 189,442,521
Institutional Service Class Shares(b) 31,916,500
Local Fund Shares 10,555,134
------------
Total $327,305,479
============
SHARES OUTSTANDING (unlimited number of shares authorized):
Class A Shares 177,739
Class B Shares 79,426
Institutional Class Shares 7,382,408
Service Class Shares(a) 15,212,634
Institutional Service Class Shares(b) 2,556,690
Local Fund Shares 845,541
------------
Total 26,254,438
============
NET ASSET VALUE:
Class A Shares $ 12.46
Class B Shares $ 12.42
Institutional Class Shares $ 12.49
Service Class Shares(a) $ 12.45
Institutional Service Class Shares(b) $ 12.48
Local Fund Shares $ 12.48
MAXIMUM OFFERING PRICE (100%/(100% - Maximum Sales Charge)
of net asset value adjusted to nearest cent) per share:
Class A Shares $ 13.22
Class B Shares** $ 12.42
Institutional Class Shares* $ 12.49
Service Class Shares*(a) $ 12.45
Institutional Service Class Shares*(b) $ 12.48
Local Fund Shares* $ 12.48
============
Maximum sales charge -- Class A Shares 5.75%
============
</TABLE>
------------------------------------------------------
* Not subject to a front-end sales charge.
** For Class B Shares, the redemption price per share varies by the length of
time shares are held and are not subject to a front-end sales charge.
(a) Formerly known as R shares.
(b) Formerly known as Y shares.
See accompanying notes to the financial statements.
12 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 13
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
OCTOBER 31, 2000
--------------------
<S> <C>
INVESTMENT INCOME:
Interest income $ 87,451
Dividend income 2,371,392
-----------
Total Income 2,458,843
-----------
EXPENSES:
Investment advisory fees 275,692
Fund administration fees 106,035
Custodian fees 53,464
Distribution fees 225,779
Administrative servicing fees 399,828
Professional fees 38,473
Trustees' fees and expenses 4,119
Transfer agent fees 26,973
Registration and filing fees 40,234
Shareholders' reports 55,397
Other 50,590
-----------
Total expenses before waived or reimbursed expenses 1,276,584
Expenses waived or reimbursed (143,982)
-----------
Net expenses 1,132,602
-----------
NET INVESTMENT INCOME 1,326,241
-----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains on investment transactions 3,241,638
Net change in unrealized appreciation/(depreciation) on
investments (2,668,152)
-----------
Net realized/unrealized gains on investments 573,486
-----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,899,727
===========
</TABLE>
------------------------------------------------------
See accompanying notes to the financial statements.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 13
<PAGE> 14
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2000(b) OCTOBER 31, 1999(a)
------------------- -------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 1,326,241 $ 534,505
Net realized gains on investment transactions 3,241,638 76,827
Net change in unrealized appreciation/(depreciation) on
investments (2,668,152) 8,790,010
------------ ------------
Change in net assets resulting from operations 1,899,727 9,401,342
------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM:
Net investment income (7,630) --
------------ ------------
DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM:
Net investment income (2,082) --
------------ ------------
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS FROM:
Net investment income (188,661) --
------------ ------------
DISTRIBUTIONS TO SERVICE CLASS SHAREHOLDERS FROM:
Net investment income (701,651) (179,657)
Net realized gains from investment transactions (150,290) --
------------ ------------
DISTRIBUTIONS TO INSTITUTIONAL SERVICE CLASS SHAREHOLDERS
FROM:
Net investment income (166,197) (59,524)
Net realized gains from investment transactions (32,896) --
------------ ------------
DISTRIBUTIONS TO LOCAL FUND SHAREHOLDERS FROM:
Net investment income (168,632) (251,510)
Net realized gains from investment transactions (53,732) --
------------ ------------
CHANGE IN NET ASSETS FROM SHAREHOLDER DISTRIBUTIONS (1,471,771) (490,691)
------------ ------------
CAPITAL TRANSACTIONS:(C)
Net proceeds from shares issued 274,271,554 95,453,068
Net proceeds from dividends reinvested 1,471,613 490,698
Cost of shares redeemed (68,976,867) (7,068,579)
------------ ------------
Change in net assets from capital transactions 206,766,300 88,875,187
------------ ------------
Change in net assets 207,194,256 97,785,838
NET ASSETS:
Beginning of period 120,111,223 22,325,385
------------ ------------
End of period $327,305,479 $120,111,223
============ ============
SHARE TRANSACTIONS:(c)
Sold 21,494,781 8,334,075
Reinvested 117,016 43,870
Redeemed (5,430,405) (616,230)
------------ ------------
Change in shares 16,181,392 7,761,715
============ ============
</TABLE>
------------------------------------------------------
(a) The Service Class and Institutional Service Class Shares (formerly known as
Class R and Class Y, respectively) commenced operations on November 2, 1998.
(b) Class A, Class B, and Institutional Class Shares commenced operations on
December 29, 1999.
(c) Both the Capital and Share Transactions sections represent combined data for
all classes of shares.
See accompanying notes to the financial statements.
14 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 15
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
CLASS A SHARES CLASS B SHARES SHARES
----------------------- ----------------------- -----------------------
PERIOD FROM PERIOD FROM PERIOD FROM
DECEMBER 29, 1999 DECEMBER 29, 1999 DECEMBER 29, 1999
TO OCTOBER 31, 2000(a) TO OCTOBER 31, 2000(a) TO OCTOBER 31, 2000(a)
----------------------- ----------------------- -----------------------
<S> <C> <C> <C>
NET ASSETS VALUE --
BEGINNING OF PERIOD $12.73 $12.73 $ 12.73
------ ------ -------
INVESTMENT ACTIVITIES:
Net investment income (loss) 0.05+ (0.01)+ 0.09+
Net realized and unrealized loss (0.24)+ (0.25)+ (0.25)+
------ ------ -------
Total investment activities (0.19) (0.26) (0.16)
------ ------ -------
DISTRIBUTIONS:
Net investment income (0.08) (0.05) (0.08)
------ ------ -------
Total distributions (0.08) (0.05) (0.08)
------ ------ -------
NET ASSET VALUE --
END OF PERIOD $12.46 $12.42 $ 12.49
====== ====== =======
Total Return (excluding sales
charge)(b) 5.71% 5.17% 6.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000) $2,214 $ 987 $92,190
Ratio of expenses to average net
assets(c) 0.63% 1.23% 0.23%
Ratio of net investment income (loss)
to average net assets(c) 0.47% (0.12)% 0.83%
Ratio of expenses to average net
assets*(c) 0.88% 2.05% 0.30%
Portfolio turnover rate(b, d) 9.72% 9.72% 9.72%
</TABLE>
------------------------------------------------------
+ Calculated using the average daily shares outstanding for the period.
* Ratios calculated as if no fees were waived and/or expenses reimbursed.
(a) The Class A, Class B and Institutional Class Shares commenced operations on
December 29, 1999.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares.
Continued
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 15
<PAGE> 16
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SERVICE CLASS SHARES INSTITUTIONAL SERVICE CLASS SHARES
------------------------------------------ ------------------------------------------
FOR THE YEAR PERIOD FROM FOR THE YEAR PERIOD FROM
ENDED NOVEMBER 2, 1998 ENDED NOVEMBER 2, 1998
OCTOBER 31, 2000 TO OCTOBER 31, 1999(a) OCTOBER 31, 2000 TO OCTOBER 31, 1999(a)
---------------- ----------------------- ---------------- -----------------------
<S> <C> <C> <C> <C>
NET ASSETS VALUE --
BEGINNING OF PERIOD $ 11.91 $ 9.66 $ 11.94 $ 9.66
-------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.07 0.09 0.08 0.10
Net realized and unrealized
gain 0.56 2.25 0.56 2.27
-------- ------- ------- -------
Total investment
activities 0.63 2.34 0.64 2.37
-------- ------- ------- -------
DISTRIBUTIONS:
Net investment income (0.07) (0.09) (0.08) (0.09)
Net realized gains (0.02) -- (0.02) --
-------- ------- ------- -------
Total distributions (0.09) (0.09) (0.10) (0.09)
-------- ------- ------- -------
NET ASSET VALUE --
END OF PERIOD $ 12.45 $ 11.91 $ 12.48 $ 11.94
======== ======= ======= =======
Total Return (excluding
sales charge) 5.25% 24.27%(b) 5.37% 24.64%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period
(000) $189,443 $72,049 $31,917 $17,389
Ratio of expenses to average
net assets 0.63% 0.63%(c) 0.48% 0.48%(c)
Ratio of net investment
income to average net
assets 0.54% 0.69%(c) 0.69% 0.87%(c)
Ratio of expenses to average
net assets* 0.70% 0.83%(c) 0.55% 0.67%(c)
Portfolio turnover rate(d) 9.72% 55.07%(b) 9.72% 55.07%(b)
</TABLE>
------------------------------------------------------
* Ratios calculated as if no fees were waived and/or expenses reimbursed.
(a) The Service Class and Institutional Service Class Shares (formerly known as
Class R and Class Y, respectively) commenced operations on November 2, 1998.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares.
Continued
16 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 17
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOCAL FUND SHARES
------------------------------------------------------------
FOR THE YEAR FOR THE YEAR PERIOD FROM
ENDED ENDED JULY 24, 1998 TO
OCTOBER 31, 2000 OCTOBER 31, 1999 OCTOBER 31, 1998(a)
---------------- ---------------- --------------------
<S> <C> <C> <C>
NET ASSETS VALUE --
BEGINNING OF PERIOD $ 11.95 $ 9.66 $ 10.00
------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.11+ 0.12 0.04
Net realized and unrealized gain (loss) 0.54+ 2.27 (0.35)
------- ------- -------
Total investment activities 0.65 2.39 (0.31)
------- ------- -------
DISTRIBUTIONS:
Net investment income (0.10) (0.10) (0.03)
Net realized gains (0.02) -- --
------- ------- -------
Total distributions (0.12) (0.10) (0.03)
------- ------- -------
NET ASSET VALUE --
END OF PERIOD $ 12.48 $ 11.95 $ 9.66
======= ======= =======
Total Return (excluding sales charge) 5.43% 24.85% (3.08)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000) $10,555 $30,674 $22,325
Ratio of expenses to average net assets 0.35% 0.35% 0.35%(c)
Ratio of net investment income to average net
assets 0.84% 1.05% 1.55%(c)
Ratio of expenses to average net assets* 0.38% 0.52% 0.64%(c)
Portfolio turnover rate(d) 9.72% 55.07% 3.07%(b)
</TABLE>
------------------------------------------------------
+ Calculated using the average daily shares outstanding for the period.
* Ratios calculated as if no fees were waived and/or expenses reimbursed.
(a) The Local Fund Shares were first offered to the public on July 24, 1998.
(b) Not annualized.
(c) Annualized.
(d) Portfolio Turnover is calculated on the basis of the Fund as a whole without
distinguishing among the classes of shares.
See accompanying notes to the financial statements.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 17
<PAGE> 18
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
1. ORGANIZATION
Nationwide Mutual Funds ("NMF" or the "Trust") is a registered 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 amended to date, and is registered under the Investment Company Act of 1940,
as amended. The Trust offers shares in thirty-three separate series, or mutual
funds, each with its own investment objectives and strategies. The accompanying
financial statements and financial highlights relate only to the Nationwide S&P
500 Index Fund (the "Fund"), a non-diversified portfolio.
The Fund currently offers six classes of shares: Class A, Class B, Institutional
Class, Service Class (formerly known as Class R shares), Institutional Service
Class (formerly known as Class Y shares), and Local Fund shares. Class A and B
shares of the Fund are available to all investors. The Class A, Class B, and
Institutional Class shares commenced operations on December 29, 1999. The Class
A shares are purchased with a 5.75% maximum front-end sales charge. 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 Class, Service Class, Institutional
Service Class, and Local Fund shares have no sales charges and are available to
a limited group of investors, such as certain affiliated fund of funds,
insurance company separate accounts, or tax-exempt employee benefit plans.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America. The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from these estimates.
(a) SECURITIES VALUATION
1. Securities traded on a national securities exchange are valued at
the last quoted sale price as provided by an independent pricing agent.
Securities traded in the over-the-counter (OTC) market are valued at the
last quoted sale price, or if there is no sale price, the last quoted bid
price as provided by an independent pricing agent.
2. Securities for which reliable market quotations are not available,
or for which an independent pricing agent does not provide a value or
provides a value that does not represent fair value in the judgement of the
Fund's administrator or sub-administrator, are valued in accordance with
procedures authorized by the Trust's Board of Trustees.
(b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME
Securities transactions are recorded on the trade date. Dividend income is
recognized on the ex-dividend date. Interest income is recognized on an accrual
basis and includes, where applicable, the pro rata amortization/accretion of
premium or discount.
18 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 19
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
(c) REPURCHASE AGREEMENT
The Nationwide S&P 500 Index Fund may enter into repurchase agreements with
member banks of the Federal Deposit Insurance Corporation and with registered
broker/dealers that the adviser deems creditworthy under guidelines approved by
the Board of Trustees, subject to the seller's agreement to repurchase such
securities at a mutually agreed upon date and price. The repurchase price
generally equals the price paid by the Fund plus interest negotiated on the
basis of current short-term rates, which may be more or less than the rate on
the underlying portfolio securities. The seller, under a repurchase agreement,
is required to maintain the value of collateral held pursuant to the agreement
at not less than the repurchase price (including accrued interest). Securities
subject to repurchase agreements are held by the Funds' custodian, another
qualified custodian or in the Federal Reserve/Treasury book-entry system. In the
event of counterparty default, the Fund has the right to use the collateral to
offset losses incurred. There is potential for loss to the Fund in the event the
Fund is delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the value of
the underlying securities during the period while the Fund seeks to assert its
rights.
(d) FEDERAL INCOME TAXES
The Fund's policy is to qualify and continue to qualify as a regulated
investment company under the Internal Revenue Code, and to distribute
substantially 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
Fund to continue such qualification. Withholding taxes have been paid or
provided for in accordance with the applicable tax rates and rules.
(e) DISTRIBUTIONS TO SHAREHOLDERS
1. Net investment 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.
3. Dividends and distributions to shareholders are determined in
accordance with federal income tax regulations, which may differ from
accounting principles generally accepted in the United States of America.
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 (i.e.,
reclass of market discounts, gain/loss, paydowns, and distributions) are
reclassified within the capital accounts based on their nature for federal
income tax purposes; temporary differences do not require reclassification.
Dividends and distributions that exceed net investment income and net
realized gains for financial reporting purposes but not for tax purposes
are reported as dividends in excess of net investment income and net
realized gains. To the extent distributions exceed current and accumulated
earnings and profits for federal income tax purposes, they are reported as
distributions of paid-in-capital. These reclassifications have no effect
upon the net asset value of the Fund.
As of the fiscal year ended October 31, 2000. The necessary reclassifications
were:
<TABLE>
<CAPTION>
UNDISTRIBUTED NET
INVESTMENT UNDISTRIBUTED
INCOME CAPITAL GAIN
------------------- -------------
<S> <C>
$85 $(85)
</TABLE>
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 19
<PAGE> 20
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
(f) EXPENSES
General expenses of the Trust, not directly attributable to the Fund or to any
class of shares, are charged to the Fund based upon the Fund's relative average
net assets or another appropriate basis, as approved by the Trust's Board of
Trustees. Once these expenses are allocated to the Fund, they are allocated to
the classes based on total shares outstanding for each class.
Direct expenses of the Fund are allocated to the Fund and then allocated to the
classes as described above.
Direct expenses of a class are allocated to that class unless otherwise directed
as approved 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.
(g) CAPITAL SHARE TRANSACTIONS
Transactions in class level shares of the Fund were as follows:
<TABLE>
<CAPTION>
CAPITAL TRANSACTIONS:
----------------------
PERIOD FROM
DECEMBER 29, 1999
TO OCTOBER 31, 2000(a)
----------------------
<S> <C>
CLASS A SHARES:
Proceeds from shares
issued.................... $ 2,484,094
Dividends reinvested........ 7,538
Cost of shares redeemed..... (240,050)
------------
Change in capital......... $ 2,251,582
============
CLASS B SHARES:
Proceeds from shares
issued.................... $ 1,042,520
Dividends reinvested........ 2,083
Cost of shares redeemed..... (34,866)
------------
Change in capital......... $ 1,009,737
============
INSTITUTIONAL CLASS SHARES:
Proceeds from shares
issued.................... $111,499,238
Dividends reinvested........ 188,653
Cost of shares redeemed..... (14,156,572)
------------
Change in capital......... $ 97,531,319
============
</TABLE>
<TABLE>
<CAPTION>
SHARE TRANSACTIONS:
----------------------
PERIOD FROM
DECEMBER 29, 1999
TO OCTOBER 31, 2000(a)
----------------------
<S> <C>
CLASS A SHARES:
Issued....................... 196,058
Reinvested................... 600
Redeemed..................... (18,919)
----------
Change in shares........... 177,739
==========
CLASS B SHARES:
Issued....................... 82,220
Reinvested................... 167
Redeemed..................... (2,961)
----------
Change in shares........... 79,426
==========
INSTITUTIONAL CLASS SHARES:
Issued....................... 8,479,031
Reinvested................... 15,140
Redeemed..................... (1,111,763)
----------
Change in shares........... 7,382,408
==========
</TABLE>
<TABLE>
<CAPTION>
CAPITAL TRANSACTIONS:
-----------------------------
PERIOD FROM
NOVEMBER 2,
YEAR ENDED 1998
OCTOBER 31, TO OCTOBER 31,
2000 1999(b)
------------ --------------
<S> <C> <C>
SERVICE CLASS SHARES:
Proceeds from shares
issued.................. $123,827,571 $69,746,897
Dividends reinvested...... 851,909 179,657
Cost of shares redeemed... (10,059,492) (403,176)
------------ -----------
Change in capital....... $114,619,988 $69,523,378
============ ===========
INSTITUTIONAL SERVICE CLASS
SHARES:
Proceeds from shares
issued.................. $28,816,348 $21,188,128
Dividends reinvested...... 199,081 59,524
Cost of shares redeemed... (15,241,411) (4,730,253)
------------ -----------
Change in capital....... $13,774,018 $16,517,399
============ ===========
</TABLE>
<TABLE>
<CAPTION>
SHARE TRANSACTIONS:
-----------------------------
PERIOD FROM
NOVEMBER 2,
YEAR ENDED 1998
OCTOBER 31, TO OCTOBER 31,
2000 1999(b)
------------ --------------
<S> <C> <C>
SERVICE CLASS SHARES:
Issued.................... 9,907,505 6,068,255
Reinvested................ 67,670 15,874
Redeemed.................. (811,665) (35,005)
------------ -----------
Change in shares........ 9,163,510 6,049,124
============ ===========
INSTITUTIONAL SERVICE CLASS
SHARES:
Issued.................... 2,300,940 1,862,525
Reinvested................ 15,739 5,266
Redeemed.................. (1,216,068) (411,712)
------------ -----------
Change in shares........ 1,100,611 1,456,079
============ ===========
</TABLE>
20 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 21
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
---------------
(a) The Class A, Class B, and Institutional Class of shares commenced operations
on December 29, 1999.
(b) The Service Class and Institutional Service Class shares (formerly known as
Class R and Class Y shares, respectively) were first offered to the public
on November 2, 1998.
<TABLE>
<CAPTION>
CAPITAL TRANSACTIONS:
-----------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
2000 1999
------------ --------------
<S> <C> <C>
LOCAL FUND SHARES:
Proceeds from shares
issued.................. $ 6,601,783 $ 4,518,043
Dividends reinvested...... 222,349 251,517
Cost of shares redeemed... (29,244,476) (1,935,150)
------------ -----------
Change in net assets.... $(22,420,344) $ 2,834,410
============ ===========
</TABLE>
<TABLE>
<CAPTION>
SHARE TRANSACTIONS:
-----------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
2000 1999
------------ --------------
<S> <C> <C>
LOCAL FUND SHARES:
Issued.................... 529,027 403,295
Reinvested................ 17,700 22,730
Redeemed.................. (2,269,029) (169,513)
------------ -----------
Change in shares........ (1,722,302) 256,512
============ ===========
</TABLE>
3. TRANSACTIONS WITH AFFILIATES
Under the terms of the investment advisory agreement, the adviser, Villanova
Mutual Fund Capital Trust ("VMF"), manages the investment of the assets and
supervises the daily business affairs of the Fund. VMF also provides investment
management evaluation services in initially selecting and monitoring on an
ongoing basis the performance of the subadviser. Prior to December 29, 1999, The
Dreyfus Corporation, a wholly-owned subsidiary of Mellon Bank Corp., served as
the subadviser for the Fund. Since December 29, 1999, Fund Asset Management
("FAM"), part of Merrill Lynch Asset Management Group, has been managing the
Fund's investments and has the responsibility for making all investment
decisions for the Fund. Under the terms of the investment advisory agreement,
the Fund pays VMF a management fee, based on the Fund's average daily net
assets. From such fees, pursuant to the subadvisory agreement, VMF pays
subadvisory fees to FAM.
Additional information regarding investment advisory fees for VMF and the
subadviser is as follows for the year ended October 31, 2000:
<TABLE>
<CAPTION>
TOTAL ADVISORY PAID TOTAL ADVISORY PAID
AVERAGE DAILY ADVISORY FEE TO ADVISORY FEE TO
NET ASSETS FEE RETAINED SUBADVISER FEE* RETAINED SUBADVISER*
------------- -------- -------- ---------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Up to $200 million........ 0.13% 0.08% 0.05% $275,692 $163,741 $111,951
Next $800 million......... 0.13% 0.10% 0.03%
Next $500 million......... 0.13% 0.11% 0.02%
Next $1.5 billion......... 0.12% 0.10% 0.02%
$3 billion and more....... 0.11% 0.09% 0.02%
</TABLE>
---------------
* Advisory fees include fees paid to VMF under a different fee schedule prior to
December 29, 1999 and under the new fee schedule thereafter. Subadvisory fees
include fees paid to the Dreyfus Corporation under a different fee schedule
prior to December 29, 1999, and fees paid to FAM after December 29, 1999.
VMF has entered into an Expense Limitation Agreement with the Trust on behalf of
the Fund. Pursuant to the Expense Limitation Agreement VMF has agreed to waive
fees or otherwise reimburse expenses for the fund and, if necessary, reimburse
expenses of the Fund in order to limit annual Fund operating expenses to 0.63%
for Class A shares, 1.23% for Class B shares, 0.23% for Institutional Class
shares, 0.63% for Service Class shares,
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 21
<PAGE> 22
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
0.48% for Institutional Service Class shares, and 0.35% for Local Fund shares.
During the year ended October 31, 2000, VMF reduced expenses for the Fund as
follows:
<TABLE>
<CAPTION>
TOTAL OTHER TOTAL FEES NET
FUND FEES FEES WAIVED/ FUND
EXPENSES WAIVED* REIMBURSED REIMBURSED EXPENSES
---------- -------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
$1,276,584 $143,982 -- $143,982 $1,132,602
</TABLE>
-----------------------
* Includes advisory, transfer agent and fund administration fees.
VMF may request and receive reimbursement from the Fund of the advisory fees
waived or limited and other expenses reimbursed by VMF pursuant to the Expense
Limitation Agreement at a later date when the Fund has reached a sufficient
asset size to permit reimbursement to be made without causing the total annual
operating expense ratio of the Fund to exceed the limits set forth below. No
reimbursement will be made unless: (i) the Fund's assets exceed $100 million;
(ii) the total annual expense ratio of the Class making such reimbursement is
less than the limit set forth below; and (iii) the payment of such reimbursement
is approved by the Board of Trustees on a quarterly basis. Except as provided
for in the Expense Limitation Agreement, reimbursement of amounts previously
waived or assumed by VMF is not permitted.
Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, NAS,
the Funds' Distributor, is compensated by the Fund for expenses associated with
the distribution of shares of the Fund. These fees are based on average daily
net assets of the respective class of the Fund at an annual rate not to exceed
0.25% for Class A shares, 1.00% for Class B shares, 0.15% for Service Class
shares, and 0.07% for Local Fund shares. During the year ended October 31, 2000,
the Fund incurred distribution fees totaling $225,779, as set forth below.
<TABLE>
<CAPTION>
DISTRIBUTION FEES
----------------------------------------------
CLASS A CLASS B SERVICE LOCAL
SHARES SHARES CLASS SHARES FUND SHARES
------- ------- ------------ -----------
<S> <C> <C> <C>
$2,237 $3,628 $205,724 $14,190
</TABLE>
Pursuant to an Underwriting Agreement, NAS serves as principal underwriter of
the Fund in the continuous distribution of its shares and receives commissions
in the form of a front-end sales charge on the Class A shares. 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 Fund. For the year
ended October 31, 2000, the commissions were collected totaling $9,492 for the
Class A shares.
NAS also receives fees for services as principal underwriter for Class B shares
of the Fund. 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 a shareholder's account to fall below the total purchase
payments made during the past five years. The CDSCs, if applicable, will be
imposed on redemption made within 6 years of the purchase. CDSCs collected for
the year ended October 31, 2000, on redemptions of Class B Shares were $9,915.
Under the terms of a Fund Administration Agreement, Villanova SA Capital Trust
("VSA") receives fees from the Fund for providing various administrative and
accounting services. These fee are calculated daily based on
22 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 23
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
the Fund's average daily net assets and paid monthly. During the year ended
October 31, 2000, the Fund incurred fund administration fees according to the
following schedule:
<TABLE>
<CAPTION>
FUND
AVERAGE DAILY ADMINISTRATION
NET ASSETS FEE FEES
------------------------------- ---- --------------
<S> <C> <C>
Up to $1 billion 0.05% $106,035
Next $1 billion 0.04%
</TABLE>
VSA has entered into an agreement with BISYS Fund Services to provide
sub-administration services to the Fund.
Nationwide Investors Services, Inc. ("NISI"), a subsidiary of VSA, serves as
Transfer and Dividend Disbursing Agent for the Funds. For these services, NISI
received fees at $18 per account for Class A and Class B shares (effective
October 1, 2000, fees were increased to $20 per account) and 0.01% of the
average daily net assets of all the other classes. During the year ended October
31, 2000, the Fund incurred transfer agent fees totaling $26,973, as set forth
below.
<TABLE>
<CAPTION>
TRANSFER AGENT FEES
------------------------------------------------------------------------------
INSTITUTIONAL
CLASS A CLASS B INSTITUTIONAL SERVICE SERVICE CLASS LOCAL
SHARES SHARES CLASS SHARES CLASS SHARES SHARES FUND SHARES
------- ------- ------------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
$3,091 $2,786 $2,754 $15,326 $1,911 $1,105
</TABLE>
NISI has entered into an agreement with BISYS Fund Services Ohio, Inc., to
provide sub-transfer agent services to the Fund.
Under the terms of an Administrative Services Plan, the Fund pays fees to
servicing organizations, such as broker-dealers, including Nationwide Financial
Services (NFS), Inc., 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 inquiries 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 Class A, Service Class, and Institutional Service
Class of shares. For the year ended October 31, 2000, the Fund incurred
administrative servicing fees totaling $399,828 consisting of $336,912 and
$62,916 for the Service Class and Institutional Service Class, respectively.
Affiliate NFS received payments (which are included in the total administrative
fees) of $340,380.
4. BANK LOANS
NMF currently has an unsecured bank line of credit of $50,000,000. Borrowings
under this arrangement bear interest at the Federal Funds rate plus .50%. These
interest costs are included in custodian fees in the Statement of Operations. No
compensating balances are required under the terms of this arrangement. The
average borrowings outstanding during the year ended October 31, 2000 was
$94,215 at an average interest rate of 6.78%.
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 23
<PAGE> 24
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding U.S. Government and short-term
securities) for the year ended October 31, 2000, are summarized below. There
were no purchases or sales of U.S. Government Securities.
<TABLE>
<CAPTION>
SECURITIES
-------------------------------
PURCHASES SALES
------------ -----------
<S> <C>
$222,962,930 $20,101,286
</TABLE>
Realized gains and losses have been computed on the first-in, first-out basis
unless otherwise specified by VMF or FAM. Cost for financial reporting purposes
differs from cost basis for federal income tax purposes by the amount of losses
recognized for financial reporting in excess of federal income tax reporting of
$1,706,844. Cost for federal income tax purposes differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION (DEPRECIATION) APPRECIATION
------------ -------------- ------------
<S> <C> <C>
$38,068,736 $(34,372,718) $3,696,018
</TABLE>
6. FEDERAL INCOME TAX INFORMATION (UNAUDITED)
For certain corporate shareholders, 100% of the Fund's income dividends and
short-term capital gain distributions in the fiscal year ended October 31, 2000,
qualify for the dividend received deductions.
During the fiscal year ended October 31, 2000, the Fund declared long-term
capital distributions of $133,232.
7. SUBSEQUENT EVENT
At a regular quarterly meeting of the Board of Trustees on December 14 and 15,
2000, the Board considered and approved the following transactions:
(a) Approved the change in the principal underwriter of Nationwide Mutual Funds
from Nationwide Advisory Services, Inc. to Villanova Distribution Services,
Inc. This change will occur as soon as practicable after all necessary
regulatory approvals are received.
End of Notes to Financial Statements
24 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 25
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Trustees of
Nationwide Mutual Funds:
We have audited the accompanying statement of assets and liabilities of
Nationwide Mutual Funds-Nationwide S&P 500 Index Fund (the Fund), including the
statement of investments, as of October 31, 2000, and the related statement of
operations, statements of changes in net assets and the financial highlights for
each of the periods indicated herein. These financial statements and the
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2000, by confirmation with the custodian,
correspondence with brokers and other appropriate audit procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Fund as of October 31, 2000, the results of its operations, the changes in its
net assets and the financial highlights for each of the periods indicated
herein, in conformity with accounting principles generally accepted in the
United States of America.
KPMG LLP
Columbus, Ohio
December 18, 2000
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 25
<PAGE> 26
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
SHAREHOLDER MEETING
OCTOBER 31, 2000
--------------------------------------------------------------------------------
SHAREHOLDER MEETING (UNAUDITED)
At the Annual Meeting of Shareholders of Nationwide Mutual Funds held on July
26, 2000, shareholders of the Fund acted upon and approved the following
matters:
PROPOSAL 1
ELECTION OF TWELVE TRUSTEES
<TABLE>
<CAPTION>
WITHHOLD AUTHORITY
NAME FOR TO VOTE FOR
---- ------------- ------------------
<S> <C> <C>
Charles E. Allen............................................ 1,210,772,374 27,409,050
Paula H. J. Cholmondeley.................................... 1,210,595,553 27,585,870
C. Brent DeVore............................................. 1,210,760,725 27,420,699
Robert M. Duncan............................................ 1,210,511,422 27,670,001
Joseph J. Gasper............................................ 1,208,526,105 29,655,318
Barbara Hennigar............................................ 1,210,762,798 27,418,626
Paul J. Hondros............................................. 1,210,374,609 27,806,815
Thomas J. Kerr IV........................................... 1,210,723,620 27,457,804
Douglas F. Kridler.......................................... 1,210,285,022 27,896,402
Dimon R. McFerson........................................... 1,207,073,052 31,108,372
Arden L. Shisler............................................ 1,210,645,041 27,536,382
David C. Wetmore............................................ 1,211,159,071 27,022,352
</TABLE>
PROPOSAL 2
RATIFICATION OF BOARD OF TRUSTEES' SELECTION OF
KPMG LLP AS TRUST'S AUDITORS FOR
THE FISCAL YEAR ENDING OCTOBER 31, 2000
<TABLE>
<CAPTION>
SERIES FOR AGAINST ABSTAIN TOTAL
------ ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Mid Cap Growth Fund(a).............. 392,953 6,553 56,343 455,849
Growth Fund......................... 29,420,887 1,083,286 1,765,968 32,270,141
Nationwide Fund..................... 41,708,118 652,212 1,616,954 43,977,284
Bond Fund........................... 7,055,764 37,856 326,750 7,420,370
Tax-Free Income Fund................ 10,875,825 151,369 764,561 11,791,755
Long-Term U.S. Government Bond
Fund.............................. 1,504,410 3,959 112,030 1,620,399
Intermediate U.S. Government Bond
Fund.............................. 8,570,166 41,535 158,603 8,770,304
Money Market Fund................... 1,032,957,631 22,226,133 38,225,984 1,093,409,748
S&P 500 Index Fund.................. 14,589,716 178,031 620,230 15,387,977
Morley Capital Accumulation Fund.... 1,058,429 -- -- 1,058,429
Morley Enhanced Income Fund......... 1,109,538 -- -- 1,109,538
Value Opportunities Fund............ 106,180 -- 785 106,965
High Yield Bond Fund................ 10,485,743 -- -- 10,485,743
Prestige Large Cap Value Fund....... 2,796,280 7,171 8,362 2,811,813
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
(a) Fund name changed to Gartmore Millennium Growth on 09/01/00.
</TABLE>
26 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
<PAGE> 27
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
SHAREHOLDER MEETING (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
PROPOSAL 2 (CONTINUED)
<TABLE>
<CAPTION>
SERIES FOR AGAINST ABSTAIN TOTAL
------ ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Prestige Large Cap Growth Fund...... 2,875,424 1,973 19,391 2,896,788
Prestige Small Cap Fund............. 1,953,699 3,087 7,408 1,964,194
Prestige Balanced Fund.............. 729,593 62 26,853 756,508
Prestige International Fund......... 1,346,839 -- 3,588 1,350,427
Small Cap Index Fund................ 2,453 -- -- 2,453
International Index Fund............ 12,881 -- 998 13,879
Bond Index Fund..................... 4,777 -- -- 4,777
Mid Cap Market Index Fund........... 501,087 -- -- 501,087
Investor Destinations Aggressive
Fund.............................. 3,000 -- -- 3,000
Investor Destinations Moderately
Aggressive Fund................... 3,000 -- -- 3,000
Investor Destinations Moderate
Fund.............................. 3,000 -- -- 3,000
Investor Destinations Moderately
Conservative Fund................. 3,000 -- -- 3,000
Investor Destinations Conservative
Fund.............................. 3,000 -- -- 3,000
------------- ---------- ------------- -------------
All twenty-seven Funds.............. 1,170,073,393 24,393,227 43,714,808 1,238,181,428
</TABLE>
PROPOSAL 3
AMEND FUNDS' FUNDAMENTAL INVESTMENT POLICY
REGARDING MAKING LOANS
<TABLE>
<CAPTION>
SERIES FOR AGAINST ABSTAIN TOTAL
------ ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund....................... 13,983,014 542,458 862,505 15,387,977
</TABLE>
PROPOSAL 4
AMEND FUNDS' FUNDAMENTAL INVESTMENT POLICY
REGARDING COMMODITIES AND COMMODITIES CONTRACTS
<TABLE>
<CAPTION>
SERIES FOR AGAINST ABSTAIN TOTAL
------ ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund....................... 13,876,132 630,302 881,543 15,387,977
</TABLE>
PROPOSAL 5
AMEND FUNDS' FUNDAMENTAL INVESTMENT POLICY
REGARDING REAL ESTATE
<TABLE>
<CAPTION>
SERIES FOR AGAINST ABSTAIN TOTAL
------ ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund....................... 14,138,102 468,887 780,987 15,387,976
</TABLE>
NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT 27
<PAGE> 28
NATIONWIDE(R) MUTUAL FUNDS
NATIONWIDE(R) S&P 500 INDEX FUND
SHAREHOLDER MEETING (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
PROPOSAL 8
APPROVE FUNDS' RECLASSIFICATION OF THE FUNDAMENTAL INVESTMENT OBJECTIVE AS
NON-FUNDAMENTAL OF EACH OF THE MID CAP GROWTH FUND(a), GROWTH FUND, NATIONWIDE
FUND, BOND FUND, TAX-FREE INCOME FUND, LONG-TERM U.S. GOVERNMENT BOND FUND,
INTERMEDIATE U.S. GOVERNMENT BOND FUND, MONEY MARKET FUND, S&P 500 INDEX FUND,
PRESTIGE LARGE CAP VALUE FUND, PRESTIGE LARGE CAP GROWTH FUND, PRESTIGE SMALL
CAP FUND, PRESTIGE BALANCED FUND AND PRESTIGE INTERNATIONAL FUND
<TABLE>
<CAPTION>
SERIES FOR AGAINST ABSTAIN TOTAL
------ ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
S&P 500 Index Fund....................... 13,571,262 907,180 909,535 15,387,977
</TABLE>
At such Annual Meeting, shareholders of the other Funds of the Trust voted upon
these and other proposals. Results of such voting are not reported here in their
entirety to the extent they do not directly affect the Fund. However, for more
information about the results of the Annual Meeting, interested shareholders
should contact the Trust.
28 NATIONWIDE(R) S&P 500 INDEX FUND ANNUAL REPORT
