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NATIONWIDE SMALL COMPANY FUND
NATIONWIDE SEPARATE ACCOUNT TRUST
SUPPLEMENT DATED SEPTEMBER 25, 1998
TO PROSPECTUS DATED MAY 1, 1998
Effective October 1, 1998, Lazard Asset Management ("Lazard") will replace
Pictet International Management Limited ("Pictet") and Van Eck Associates
Corporation ("Van Eck") as a subadviser for the Fund. Pursuant to an exemptive
order received by the Fund from the Securities and Exchange Commission and prior
shareholder approval, the Adviser is replacing Pictet and Van Eck with Lazard
without further shareholder action. The Board of Trustees of the Trust approved
such replacement on September 1, 1998.
Effective October 1, 1998 the information in the fifth full paragraph on page 5
of the Prospectus under the heading "PICTET INTERNATIONAL MANAGEMENT LIMITED
("PIML") AND VAN ECK ASSOCIATES ("VEAC")" is hereby deleted in its entirety and
replaced by the following:
LAZARD ASSET MANAGEMENT ("LAZARD") invests primarily in equity securities of
non-U.S. companies with market capitalizations under $1 billion at time of
purchase that the portfolio manager considers inexpensively priced relative to
the return on total capital or equity. Lazard will invest in equity securities
listed on national or regional securities exchanges or traded over-the-counter
of companies based in Europe, the Pacific Basin, Latin America, Canada and such
other areas as Lazard may determine from time to time. In selecting investments
for the portfolio, Lazard will attempt to ascertain undervalued markets
worldwide through traditional measures of value and then identify securities
within such markets which are undervalued relative to their industry and country
grouping.
Effective October 1, 1998 the information on page 15 of the Prospectus under the
heading "PICTET INTERNATIONAL MANAGEMENT LIMITED AND VAN ECK ASSOCIATES
CORPORATION" is hereby deleted in its entirety and replaced with the following:
LAZARD ASSET MANAGEMENT. Effective October 1, 1998, Lazard will begin serving as
one of the Subadvisers to the Fund, replacing PIML and VEAC. Lazard, a New
York-based division of Lazard Freres & Co. LLC ("Lazard Freres"), a New York
limited liability company, manages over $67 billion in investments for
corporations, endowments, public and private pension plans and wealthy
individuals and is recognized as one of the premier global investment advisory
firms. Lazard Freres, one of the world's first global investment banks, has
advised sophisticated investors for more than 150 years. Lazard Freres has
offices in New York, San Francisco, and Washington DC and affiliates in London,
Paris, Tokyo, Sydney, Frankfurt and Cairo that extend its research worldwide.
Lazard manages its portion of the Small Company Fund on a team basis. The team
is involved in all levels of the investment process. This team approach allows
for every portfolio manager to benefit from his/her peers, and for clients to
receive the firm's best thinking, not that of a single portfolio manager.
Lazard's international equity investment team operates under the guidance of
Herbert Gullquist, Vice Chairman and Chief Investment Officer with
responsibility for overall adherence to the firm's investment principles, and
John R. Reinsberg, Managing Director of International/Global Equity, who is
responsible for the team's day-to-day operations and monitoring the composition
of the portfolio to ensure appropriate diversification.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS
FOR FUTURE REFERENCE
