<PAGE> 1
[PHOTOGRAPHS OF SHAREHOLDERS/NATIONWIDE LOGO]
NATIONWIDE(R) FAMILY OF FUNDS
NATIONWIDE(R) GROWTH FUND
-----------------------------------------
NATIONWIDE(R) FUND
-----------------------------------------
NATIONWIDE(R) BOND FUND
-----------------------------------------
NATIONWIDE(R) TAX-FREE INCOME FUND
-----------------------------------------
NATIONWIDE(R) U.S. GOVERNMENT INCOME FUND
-----------------------------------------
NATIONWIDE(R) MONEY MARKET FUND
-----------------------------------------
SEMI-ANNUAL
REPORT
APRIL 30, 1996
<PAGE> 2
CONTENTS
<TABLE>
<S> <C>
Chairman's Letter 3
Nationwide(R) Growth Fund 4-5
Nationwide(R) Fund 6-7
Nationwide(R) Bond Fund 8-9
Nationwide(R) Tax-Free Income Fund 10-12
Nationwide(R) U.S. Government Income Fund 13
Nationwide(R) Money Market Fund 14-15
Financial Statements 16-19
Financial Highlights 20-21
Notes to Financial Statements 22
Key to Shareholder Photographs 23
Nationwide(R) Family of Funds Trustees and Officers 24
</TABLE>
This report is for the information of shareholders of the Nationwide 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) and [LOGO] are registered Federal Service marks of Nationwide
Mutual Insurance Company.
2
<PAGE> 3
TO OUR SHAREHOLDERS
Nineteen ninety-five was a wonderful year for investors as the value of both the
stock and bond markets posted sharp increases. The Dow Jones Industrial Average
(DJIA) broke through the 5,000 mark last November and continued to reach more
all-time highs before closing the first quarter of 1996 at 5,587, a 9.2%
increase for the quarter.
These gains were fueled by strong cash inflows from individuals and portfolio
managers. While no one can predict the market with certainty, it is unlikely
that this year will match the impressive results achieved in 1995. Realistic
expectations and a long-term investment horizon are essential for fund
investors.
The U.S. economy is rebounding from a period of very slow growth this past
winter. The rise in food and energy prices is temporary and will not cause a
surge in overall inflation. Monetary policy remains too tight in order to allow
this to happen. Fears of an imminent recession have all but disappeared, and
1996 should turn out to be a good year by many measures. However, an anticipated
slowdown in business activity toward the end of this year should be watched
closely.
The market's growth has increased interest in mutual funds. Barron's noted that
changing demographics are affecting mutual fund investments, especially as the
baby boom generation is now reaching age 50 and is beginning to turn its
attention toward retirement savings. Studies by the Investment Company Institute
show that most investors save and invest in mutual funds for the long term and
specifically for retirement.
Total mutual fund assets rose to $3.01 trillion in February, for the first time
nearly equaling bank deposits of $3.02 trillion. The total net assets in the
Nationwide Investing Foundation funds stand at $2.67 billion as of April 30,
1996, an all-time record.
Detailed highlights of each fund are included on pages 4-15 of this report. For
the twelve months ended April 30, 1996, the Nationwide(R) Fund gained 31.6% and
the Growth Fund increased 22.6%, assuming all dividends were reinvested. Total
return of the S&P 500 for the same period was 30.3%.
Returns on long-term taxable bonds also were strong. For the twelve months ended
April 30, 1996, Bond Fund returned 10.1% as compared to 10.7% for its benchmark
index, the Lehman Brothers Long Term Government/Corporate Bond Index. For the
twelve month period, U.S. Government Income Fund returned 8.0% compared to 7.5%
for its benchmark index, the Lehman Brothers Intermediate Goverment Bond Index.
For the twelve months ended April 30, 1996, Tax-Free Income Fund's total return
was 6.5% compared to 8.0% for its benchmark index, Lehman Brothers Municipal
Bond Index.
The Money Market Fund continues to post strong results. Total return for the
Fund was 5.3% for the twelve months ended April 30, 1996, within a 30-day
effective yield of 4.90% as of that date. This compares favorably to the bank
money market deposit account rate of 2.7% on April 30, 1996.
On pages 4-14 of this report, you can read the comments of your funds' portfolio
managers which describe in detail important factors which explain each fund's
performance and unique characteristics.
At Nationwide, we have a vision that states, "We exist to serve our customers."
In response to that charge, we recently made improvements to our shareholder
services in the area of redemption options. Individual Retirement Account (IRA)
shareholders who sign a new IRA telephone authorization agreement can make
redemptions by phone during our normal business hours of 8 A.M. to 5 P.M.
Eastern time.
Fund shareholders can receive redemptions through the new Western Union Quick
Cash(R) service. Next day access to funds is provided through 26,000 Western
Union locations throughout the world.
High-quality shareholder service remains a top priority of the Nationwide Family
of Funds. You're welcome to call us at 1-800-848-0920 for any suggestions or
comments that you might have.
Thank you for giving Nationwide the opportunity to meet your investment needs.
D. Richard McFerson, Chairman
June 1996
3
<PAGE> 4
FUND PERFORMANCE
Value of
[GRAPH] reinvested dividends
including capital gains
Value of initial investment
$10,000 LUMP-SUM INVESTMENT IN GROWTH FUND
The value of a long-term investment in Growth Fund is illustrated in the chart
above. Over a 10-year period through April 30, 1996, an investment of $10,000
would have earned an average annual compound total return of 12.0%, not
including sales charge.* The chart above illustrates the growth of this
investment to $31,156. Past performance is not predictive of future performance.
AVERAGE ANNUAL COMPOUND TOTAL RETURN***
<TABLE>
<CAPTION>
YEARS *$1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
INVESTMENT INVESTMENT INVESTMENT
<S> <C> <C> <C>
1 22.6% 19.6% 18.5%
5 14.4% 15.1% 13.2%
10 12.0% 13.0% 11.1%
15 15.2% 14.6% 14.5%
Period ended: 4/30 4/30 3/31
</TABLE>
PORTFOLIO VALUE $667,222,070
<TABLE>
<CAPTION>
TOP 5 HOLDINGS VALUE %
- -----------------------------------------------------------
<S> <C> <C>
Intel Corp. $30,487,500 4.57%
Equitable Companies 23,365,125 3.50%
MCI Communications Corp. 21,901,500 3.28%
Columbia/HCA Healthcare Corp. 21,250,000 3.18%
Hewlett-Packard Company 21,175,000 3.17%
</TABLE>
PORTFOLIO COMPOSITION
U.S.GOVERNMENT OBLIGATIONS AND
OTHER ASSETS LESS LIABILITIES
-- 7.6%
[PIE CHART]
REPURCHASE AGREEMENT
-- 0.2%
-- COMMON STOCKS
92.2%
FUND HIGHLIGHTS
"Growth" is the hallmark of the Nationwide(R) Growth Fund which invests
primarily in the common stock of companies such as those listed on the right
which show greater than average growth potential.
Nationwide(R) Growth Fund is for investors more interested in long term growth
of capital than in current income. The sharp rise in market performance over the
past year underscores the importance of remaining fully invested for the long
haul.
Investors out of the market last year missed out on an unparalleled growth
opportunity with more all-time highs than any year in history. A buy and hold
strategy insures investors will not miss these unpredictable sudden spurts of
growth in the market.
* For Periods Ended 4/30/96. These returns do not reflect the effects of
sales charges which if reflected would reduce these returns.
** For Periods Ended 3/31/96. Assumes the maximum 4.5% sales charge was paid
on purchases of the Growth Fund which has the most dramatic effect on the
one-year performance figures.
*** Total return figures represent past performance and are not predictive of
future performance. Investment returns and principal value of an investment
will fluctuate so that individual shares, when redeemed, may be worth more
or less than the original cost.
NATIONWIDE(R) FAMILY OF FUNDS
GROWTH FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six month period ending April 30, 1996, Nationwide(R) Growth Fund
provided a total return of 10.1%, as compared to a 13.2% total return for the
S&P 500 Index. For the twelve month period, the Fund returned 22.6% compared to
30.3% for the S&P 500. Since the last report, the level of cash in the Growth
Fund has declined from about 14.5% of assets to a current level near 7.5%.
Buying has been done mainly in three sectors: financial, health care and
technology.
In financial services, Equitable Companies, Allstate Corp., and Chubb Corp.
have all been purchased in significant amounts. These insurance companies, we
believe, are both well positioned for future growth in the financial sector, and
undervalued. Close to 16% of the Fund's assets are now invested in this sector,
which has helped performance over the past six months, although the most recent
month has been weak.
In health care, additions were made to our current holdings, mainly in
drugs, raising the total health care asset weight to over 12%. As with financial
stocks, performance over the past six months has been positive, with the most
recent period a bit weak. Technology has had weak performance over the last six
months, and the Fund's holdings have hindered overall performance. Nevertheless,
long term growth potential for the sector is strong, and valuations are low.
Therefore, we have added names on a selective basis, where companies are strong
enough and well-positioned enough to get through any further, near-term
weakness.
The Fund also sold a number of individual stocks, many of them small or
mid-cap stocks, where growth was no longer sufficiently visible, or where
valuations had increased well in excess of foreseeable growth levels. We feel
very comfortable with this strategy, and will continue to invest in stocks with
both clearly visible long-term growth potential and room for valuation
improvement. Stocks that no longer meet these criteria will be sold.
John M. Schaffner, MBA, CFA, Portfolio Manager
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (92.2%)
AIRLINES (0.4%)
199,000 Skywest, Inc...................................... $ 2,960,125
-----------
BUSINESS SERVICES (4.3%)
157,200 Insurance Auto Auctions Inc....................... 1,807,800
300,000 Manpower, Inc..................................... 11,100,000
531,150 Olsten Corp....................................... 16,133,681
-----------
29,041,481
-----------
CABLE (0.9%)
350,000 Comcast Corp...................................... 6,125,000
-----------
CHEMICALS (3.3%)
70,000 Air Products & Chemicals, Inc..................... 3,998,750
100,000 FMC Corporation*.................................. 6,937,500
90,000 Loctite Corp...................................... 4,545,000
122,000 Sigma-Aldrich Corp................................ 6,588,000
-----------
22,069,250
-----------
COMPUTER EQUIPMENT (6.5%)
300,000 American Power Conversion Corp.*.................. 3,750,000
286,300 EMC Corp.*........................................ 5,869,150
200,000 Hewlett-Packard Company........................... 21,175,000
120,000 International Business Machines Corp.............. 12,900,000
-----------
43,694,150
-----------
COMPUTER SOFTWARE & SERVICES (1.4%)
200,000 Automatic Data Processing, Inc.................... 7,775,000
50,000 Sunguard Data System Inc.*........................ 1,662,500
-----------
9,437,500
-----------
CONGLOMERATE (1.3%)
160,000 Honeywell, Inc.................................... 8,420,000
-----------
CONSUMER GOODS (1.3%)
300,000 Newell Co......................................... 8,550,000
-----------
CONTRACT MANUFACTURING (0.6%)
100,000 Dll Group. Inc.*.................................. 3,475,000
100,000 Electronic Fab Technology Corp.*.................. 437,500
-----------
3,912,500
-----------
DISTRIBUTION (1.3%)
328,125 Bergen Brunswig Corp., Class A.................... 8,941,406
-----------
DRUGS (6.8%)
419,200 Allergan, Inc..................................... 14,829,200
200,000 Glaxo Wellcome, PLC............................... 4,825,000
160,000 Schering-Plough Corp.............................. 9,180,000
150,000 Warner-Lambert Co................................. 16,762,500
-----------
45,596,700
-----------
</TABLE>
4
<PAGE> 5
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS (11.3%)
127,300 AMP, Inc.............................................. $ 5,696,675
200,000 Applied Materials, Inc.* ............................. 8,000,000
450,000 Intel Corp............................................ 30,487,500
260,200 Kulicke & Soffa*...................................... 4,943,800
117,187 Molex, Inc............................................ 3,808,578
190,858 Molex, Inc., Class A.................................. 5,725,740
200,000 Motorola, Inc......................................... 12,250,000
152,500 Richardson Electronics Ltd............................ 1,648,906
189,000 Woodhead Industries, Inc.............................. 2,929,500
------------
75,490,699
------------
FINANCIAL SERVICES (15.8%)
400,000 Allstate Corp......................................... 15,550,000
37,500 American International Group, Inc..................... 3,426,563
578,812 Bear Stearns Companies, Inc........................... 14,542,652
114,700 Chubb Corp............................................ 10,853,488
989,000 Equitable Companies................................... 23,365,125
486,202 Gainsco, Inc.......................................... 5,652,098
350,000 Merrill Lynch & Co., Inc.............................. 21,131,250
100,000 Morgan Stanley Group, Inc............................. 5,025,000
200,000 Silicon Valley Bancshares*............................ 4,650,000
100,000 Standard Financial Inc.*.............................. 1,487,500
------------
105,683,676
------------
FOOD & BEVERAGES (4.1%)
3,000,000 Grand Metropolitan, PLC............................... 19,672,800
50,000 International Flavors and Fragrances, Inc............. 2,456,250
150,000 Seagram Co. Ltd....................................... 5,081,250
------------
27,210,300
------------
FOOD-GRAIN & AGRICULTURE (3.1%)
1,080,259 Archer-Daniels-Midland Co............................. 20,389,889
------------
HEALTHCARE SERVICES (5.3%)
415,000 Apria Healthcare Group Inc.*.......................... 14,110,000
400,000 Columbia HCA/Healthcare Corp.......................... 21,250,000
------------
35,360,000
------------
MACHINERY & CAPITAL GOODS (3.8%)
139,650 Duriron Company, Inc.................................. 3,665,813
60,000 Emerson Electric Co................................... 5,017,500
150,000 Lindsay Manufacturing Co.............................. 5,625,000
60,000 Nordson Corp.......................................... 3,630,000
292,600 Zebra Technologies Corp.*............................. 7,315,000
------------
25,253,313
------------
MEDICAL PRODUCTS (0.4%)
200,000 Biomet, Inc.*......................................... 2,950,000
------------
NETWORK EQUIPMENT (1.7%)
50,000 Cabletron System, Inc.*............................... 3,768,750
150,000 Cisco Systems, Inc.*.................................. 7,781,250
------------
11,550,000
------------
OIL & GAS (4.3%)
150,000 Amoco Corp............................................ 10,950,000
80,000 Mobil Corp............................................ 9,200,000
60,000 Royal Dutch Petroleum Co.............................. 8,595,000
------------
28,745,000
------------
PAPER & FOREST PRODUCTS (0.2%)
80,000 Glatfelter (P.H.) Company............................. 1,330,000
------------
PRINTING & PUBLISHING (2.2%)
101,800 Dun & Bradstreet Corp................................. 6,197,075
100,000 Merrill Corporation................................... 2,200,000
160,000 Reader's Digest Assoc., Inc., Class B................. 5,940,000
------------
14,337,075
------------
RESTAURANTS (1.3%)
200,000 Bob Evans Farms, Inc.................................. 3,150,000
300,000 Wendy's International, Inc............................ 5,737,500
------------
8,887,500
------------
RETAIL (2.3%)
200,000 CUC, International*................................... 6,575,000
200,000 Franklin Quest Co.*................................... 5,400,000
145,000 Smart & Final Inc. ................................... 3,298,750
------------
15,273,750
------------
TELECOMMUNICATIONS (8.3%)
100,000 360 Communications Co.*............................... 2,350,000
300,000 AT & T Corp........................................... 18,375,000
744,000 MCI Communications Corp............................... 21,901,500
300,000 Sprint Corporation.................................... 12,637,500
------------
55,264,000
------------
Total common stocks
(cost $438,466,521).................................... $616,473,312
------------
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (2.1%)
$14,110,000 U.S. Treasury Bills
4.90% through 5.35%, due 05/02/96 through 11/14/96
(cost $13,891,562)................................ $ 13,891,562
------------
U.S. AGENCY--FULL FAITH & CREDIT (5.3%)
15,960,000 Federal Home Loan Mortgage Notes
5.02% through 5.18%, due 05/07/96 through 10/22/96
(cost $15,762,301)................................ 15,762,301
20,575,000 Federal National Mortgage Association Notes
4.92% through 5.17%, due 05/07/96 through 10/02/96
(cost $19,756,799)................................ 19,756,799
------------
Total U.S. Agency--Full Faith & Credit.............. 35,519,100
------------
REPURCHASE AGREEMENT (0.2%)
1,338,096 Merrill Lynch MBS Tri-party
5.20%, due 05/01/96, Collateralized by
$1,445,000 FHLMC #C80387 6.50%, due 04/01/26
market value - $1,369,479
(cost $1,338,096 )................................ 1,338,096
------------
Total investments
(cost $489,215,279)............................. $667,222,070
============
</TABLE>
* Denotes a non-income producing security.
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
(SHAREHOLDER PICTURE)
Thomas Gill, Growth and Nationwide(R) Fund
shareholder, is pictured here with daughters,
Megan, age 9, left, and Jennifer, age 11, right.
5
<PAGE> 6
FUND PERFORMANCE
Value of
reinvested dividends including
[GRAPH] capital gains
Value of initial investment
$10,000 LUMP-SUM INVESTMENT IN NATIONWIDE FUND
The value of a long-term investment in Nationwide Fund is illustrated in the
chart above. Over a 10-year period through April 30, 1996, an investment of
$10,000 would have earned an average annual compound total return of 12.9%, not
including sales charge.* The chart above illustrates the growth of this
investment to $33,671. Past performance is not predictive of future performance.
AVERAGE ANNUAL COMPOUND TOTAL RETURN***
<TABLE>
<CAPTION>
YEARS *$1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
INVESTMENT INVESTMENT INVESTMENT
<S> <C> <C> <C>
1 31.6% 28.9% 25.7%
5 12.0% 14.8% 10.9%
10 12.9% 13.4% 12.1%
15 14.4% 14.7% 13.9%
Period ended: 4/30 4/30 3/31
</TABLE>
PORTFOLIO VALUE $ 889,479,243
<TABLE>
<CAPTION>
TOP 5 HOLDINGS VALUE %
<S> <C> <C>
Warner-Lambert Co. $52,891,275 5.95%
Schering-Plough Corp. $41,935,388 4.71%
Texaco, Inc. $40,757,850 4.58%
Raychem Corp. $37,378,053 4.20%
Chrysler Corp. $33,709,300 3.79%
</TABLE>
PORTFOLIO COMPOSITION
-- COMMON STOCKS
96.4%
-- CONVERTIBLE DEBT
0.4%
[PIE CHART]
-- COMMERCIAL PAPER AND OTHER
ASSETS LESS LIABILITIES
3.0%
-- REPURCHASE AGREEMENT
0.2%
FUND HIGHLIGHTS
Nationwide(R) Fund's hallmark as Nationwide's flagship mutual fund is its track
record as a fund which seeks to match the market during up years, but avoid the
market's occasional down years.
Nationwide(R) Fund has racked up 18 consecutive "up years" of growth during
favorable times and capital preservation during uncertain periods.
Mutual Funds magazine dubbed Nationwide(R) Fund an "ironman fund"--a fund with
18 "straight winning years" during both up and down markets--in its "All-Star
Awards" annual issue of March 1996.
* For Periods Ended 4/30/96. These returns do not reflect the effects of
sales charges which if reflected would reduce these returns.
** For Periods Ended 3/31/96. Assumes the maximum 4.5% sales charge was paid
on purchases of Nationwide(R) Fund which has the most dramatic effect on
the one-year performance figures.
*** Total return figures represent past performance and are not predictive of
future performance. Investment returns and principal value of an investment
will fluctuate so that individual shares, when redeemed, may be worth more
or less than the original cost.
NATIONWIDE(R) FAMILY OF FUNDS
FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
The total return of the Nationwide(R) Fund for the six months ended April
30, 1996 was 15.6% compared to 13.2% for the S&P 500. For the twelve month
period, the Fund returned 31.6% compared to 30.3% for the S&P 500. The
Nationwide(R) Fund benefited from its low weighting in technology stocks in the
latest reporting period. Technology stocks began underperforming the market in
the fourth quarter of 1995 due to slowing demand growth. Nationwide(R) Fund
shareholders should expect a continuation of the strategy to underweight the
technology stocks until there is significant valuation and fundamental
improvement in this sector.
Acquisitions in the household products sector have played an important part
in the recent performance of the Nationwide(R) Fund. Maybelline and Helene
Curtis were recently acquired by much larger companies. While investments are
not made in anticipation of a takeover, large corporate buyers are often seeking
the same attributes for their strategic acquisitions that I am seeking for
investments in the Nationwide(R) Fund. These attributes include attractive
valuation, strong market position, and excellent management.
I have long admired Wal-Mart for its success in dominating the discount
retailing industry. However, the expensive valuation of the shares has prevented
me from investing in Wal-Mart during my tenure as Nationwide(R) Fund portfolio
manager. That position recently changed as negative psychology toward the
retailing industry combined with a short-term earnings disappointment provided
an attractive buying opportunity in Wal-Mart shares. While Wal-Mart's strategy
and management have recently come under criticism, the long-term outlook remains
excellent. The recent earnings disappointment was a surprise; however, Wal-Mart
remains the nation's dominant retailer.
Charles Bath, MBA, CFA, CPA
Portfolio Manager
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (96.4%)
AUTO & AUTO PARTS (7.3%)
537,200 Chrysler Corporation............................ $ 33,709,300
869,400 Ford Motor Company.............................. 31,189,725
------------
64,899,025
------------
BUILDING (3.3%)
447,500 Masco Corporation............................... 12,194,375
302,200 Vulcan Materials Co............................. 17,376,500
------------
29,570,875
------------
CHEMICALS (12.0%)
512,300 Georgia Gulf Corporation........................ 18,827,025
555,000 IMC Global Inc.................................. 20,465,625
18,100 Millipore Corporation........................... 757,938
593,700 Morton International Inc........................ 21,002,137
223,600 OM Group, Inc................................... 8,524,750
479,975 Raychem Corporation............................. 37,378,053
------------
106,955,528
------------
COMPUTER EQUIPMENT (2.4%)
200,000 International Business Machines................. 21,500,000
------------
DRUGS (12.2%)
165,000 Allergan Inc.................................... 5,836,875
74,500 American Home Products Corp..................... 7,859,750
730,900 Schering-Plough Corp............................ 41,935,388
473,300 Warner-Lambert Co............................... 52,891,275
------------
108,523,288
------------
ELECTRICAL EQUIPMENT (0.6%)
129,800 Black & Decker Corporation...................... 5,224,450
------------
ENTERTAINMENT (1.7%)
246,265 Disney, Walt Co................................. 15,268,430
------------
FINANCIAL (12.5%)
296,900 Barnett Banks, Inc.............................. 18,816,038
332,400 Chubb Corporation............................... 31,453,350
233,400 CoreStates Financial Corp....................... 9,102,600
44,359 Fund American Enterprises....................... 3,393,464
393,500 Horace Mann Educators Corp. .................... 12,936,312
397,800 Mellon Bank Corporation ........................ 21,381,750
454,073 U S Bancorp..................................... 14,700,613
------------
111,784,127
------------
FOOD & BEVERAGE (11.5%)
297,400 Anheuser-Busch Company Inc...................... 19,962,975
524,000 PepsiCo, Inc.................................... 33,274,000
223,600 Philip Morris Companies, Inc.................... 20,151,950
349,033 Ralcorp Holdings Inc.*.......................... 7,678,726
364,200 Ralston-Ralston Purina Group.................... 21,260,175
------------
102,327,826
------------
FURNITURE/HOME APPLIANCE (0.9%)
312,400 Singer Co. N.V., (The).......................... 8,083,350
------------
</TABLE>
6
<PAGE> 7
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD PRODUCTS (6.7%)
347,000 Avon Products, Inc.................................... $ 30,839,625
318,000 Dial Corp. (The)...................................... 8,943,750
207,200 Gillette Company (The)................................ 11,188,800
100,000 Procter & Gamble Co................................... 8,450,000
------------
59,422,175
------------
LEISURE PRODUCTS (1.0%)
391,900 Brunswick Corp........................................ 8,621,800
------------
MACHINERY (2.1%)
342,400 Johnstown America Industries, Inc.*................... 1,626,400
71,360 PACCAR, Inc........................................... 3,532,320
375,000 Trinity Industries, Inc............................... 13,078,125
------------
18,236,845
------------
OIL & GAS (8.6%)
161,900 Mobil Corporation..................................... 18,618,500
476,700 Texaco Inc............................................ 40,757,850
547,300 Unocal Corporation.................................... 17,582,013
------------
76,958,363
------------
PAPER AND FOREST PRODUCTS (1.6%)
362,900 Bowater Inc........................................... 14,516,000
------------
PRINTING & PUBLISHING (8.1%)
760,000 American Greetings Corp., Class A..................... 20,995,000
229,300 Dun & Bradstreet Corp................................. 13,958,637
231,700 Gannett Co., Inc...................................... 15,842,488
196,900 Gibson Greetings, Inc................................. 2,781,212
100,000 Tribune Co............................................ 6,975,000
40,900 Washington Post Company (The), Class B................ 12,024,600
------------
72,576,937
------------
RETAIL (0.9%)
339,300 Wal-Mart Stores, Inc.................................. 8,100,787
------------
TELECOMMUNICATIONS (0.3%)
100,000 MCI Communications Corporation........................ 2,943,750
------------
TOYS (2.7%)
924,640 Mattel, Inc........................................... 24,040,640
------------
Total common stocks
(cost $521,558,886)............................. $859,554,196
------------
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS (0.4%)
$7,826,000 Consorcio G. Grupo Dina, 8.00%, 2004
(cost $7,222,026)................................ $ 3,922,783
------------
COMMERCIAL PAPER (2.7%)
A.I. Credit Corporation
4,000,000 5.30% due 05/03/96............................... 3,998,822
AIG Funding Inc.
2,325,000 5.27%, due 05/29/96.............................. 2,315,470
AT&T Capital Corporation
5,145,000 5.28%, due 05/13/96.............................. 5,135,945
1,320,000 5.30%, due 05/17/96.............................. 1,316,891
Merrill Lynch & Co., Inc.
3,795,000 5.30%, due 05/01/96.............................. 3,795,000
684,000 5.32%, due 05/02/96.............................. 683,899
4,000,000 5.30%, due 05/06/96.............................. 3,997,055
900,000 5.28%, due 05/28/96.............................. 896,436
2,285,000 5.30%, due 06/20/96.............................. 2,268,180
------------
Total commercial paper
(cost $24,407,698).............................. 24,407,698
------------
REPURCHASE AGREEMENT (0.2%)
1,594,566 MBS Tri Party
5.20%, due 05/01/96, Collateralized by
$1,720,000 FHLMC #C80387, 6.50%, due 04/01/26,
market value - $1,630,106
(cost $1,594,566)................................ 1,594,566
------------
Total investments
(cost $554,783,176)............................. $889,479,243
============
</TABLE>
*Denotes a non-income producing security.
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
[SHAREHOLDER PICTURE]
[SHAREHOLDER PICTURE] Roger and Nancy Stuckey, Growth Fund
shareholders and IRA owners, impersonate
Growth Fund shareholder, Garth Brooks and Minnie Pearl at their
Keisha Fedrick, posing with church Halloween party.
her mother Kimberlyn.
7
<PAGE> 8
FUND PERFORMANCE
Value of
reinvested dividends including
capital gains
[GRAPH]
Value of initial investment
$10,000 LUMP-SUM INVESTMENT IN BOND FUND
The graph above shows the appreciation achieved in Bond Fund through a $10,000
investment over a 10-year period of time ended April 30, 1996. Shareholders
would have seen their account grow to more than $20,764 for an average annual
compound total return of 7.6%, not including sales charges.* Past performance is
not predictive of future performance.
AVERAGE ANNUAL COMPOUND TOTAL RETURN***
<TABLE>
<CAPTION>
YEARS *$1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
INVESTMENT INVESTMENT INVESTMENT
<S> <C> <C> <C>
1 10.1% 1.1% 8.7%
5 7.7% 6.4% 7.3%
10 7.6% 7.8% 7.3%
15 10.6% 9.1% 10.0%
Period ended: 4/30 4/30 3/31
</TABLE>
PORTFOLIO VALUE: $128,432,864
<TABLE>
<CAPTION>
TOP 5 HOLDINGS VALUE %
<S> <C> <C>
Berkley (W.R.) Corp. $5,879,280 4.59%
U.S. Treasury Note 5,437,500 4.24%
Prudential Surplus Note 4,908,500 3.83%
AMBAC Inc. 4,674,404 3.65%
Armstrong World Industries, Inc. 4,573,912 3.57%
</TABLE>
PORTFOLIO COMPOSITION
COMMERCIAL PAPER AND OTHER ASSETS
LESS LIABILITIES
2.7%
MORTGAGE BACKED SECURITIES
10.0%
CANADIAN GOVERNMENT BONDS
6.2%
[PIE CHART]
U.S. GOVERNMENT LONG-TERM
OBLIGATION
4.2%
REPURCHASE AGREEMENT
0.5%
CORPORATE BONDS
76.4%
FUND HIGHLIGHTS
Nationwide(R) Bond Fund has consistently provided a steady stream of income for
its shareholders--paying dividends every month since inception--from its
portfolio of high quality bonds earning the three highest ratings from
nationally recognized standard rating organizations.
Bond Fund made The Wall Street Journal's (5/15/96) "Top 15 Performer" mutual
fund scoreboard for A-rated bond funds. The Fund ranked #5 among 116 funds
according to Lipper Analytical Services Inc. for the period ended March 31,
1996. For comparable 5 and 10 year periods, the Fund ranked 26 out of 45 and 22
out of 26, respectively.
Because of its 10-year record in both bull and bear markets, the Fund was
spotlighted among 25 mutual funds in the March 25, 1996, issue of Financial
World as an "All Weather Fund."
* For Periods Ended 4/30/96. These returns do not reflect the effects of
sales charges which if reflected would reduce these returns.
** For Periods Ended 3/31/96. Assumes the maximum 4.5% sales charge was paid
on purchases of Bond Fund which has the most dramatic effect on the
one-year performance figures.
*** Total return figures represent past performance and are not predictive of
future performance. Investment returns and principal value of an investment
will fluctuate so that individual shares, when redeemed, may be worth more
or less than the original cost.
NATIONWIDE(R) FAMILY OF FUNDS
BOND FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
The Nationwide(R) Bond Fund's total return for the six-month period ending
April 30, 1996, was a (.92%) excluding the 4 1/2% sales charge. Although the
return was negative it was better than the Lehman Brothers Long Term
Government/Corporate Bond Index which was (2.79%) for the same time period. The
negative returns were a result of a significant change in the yield curve during
the six months. As interest rates went up, the market value of debt securities
went down. The interest income from the bonds in the Bond Fund was not
sufficient to offset the decline in market value of the Bond Fund's holdings.
During the 6 month period ended April 30, 1996, the U.S. Treasury yield curve
became steeper in the 3 month to 10 year maturity range and flatter from 10
years to 30 years. The 10 year treasury's yield increased from 6.47% to 6.90%, a
6.6% increase. During this time period the 30-day current yield on the
Nationwide(R) Bond Fund went from 6.18% to 6.83%, a 10.5% increase. For the
twelve month period ending April 30, 1996, the Fund returned 10.1% compared to
10.7% for the Lehman Brothers Long Term Government/Corporate Bond Index.
The Bond Fund's composition did not change during the past 6 months. Over
75% of the Fund is invested in corporate bonds, 6% in Canadian Bonds, 10% in
mortgage-backed securities and the remainder in U.S. Treasuries and short-term
paper. Most of the swapping during the period was in the mortgage-backed
securities area where efforts were made to buy CMO's with higher coupon
collateral and better payment structures.
Several of the corporate bonds in the portfolio were downgraded by one or
more of the rating services as certain segments of the economy came under
financial and competitive pressure. Each corporate security held in the
portfolio is reviewed on a continuing basis and the effects of internal and
external forces are evaluated. If it is determined that the eventual payment of
principal or interest is in jeopardy, the bond is sold. However, if the
condition seems to be temporary, the bond is not sold. Dayton Hudson was
downgraded during the period but was maintained in the portfolio because its
problems seem to be manageable.
The Bond Fund's average maturity is about 12 years and the average modified
duration is about 7.13 years. This places the Fund in the category of a
long-term corporate bond fund. As illustrated in the first paragraph, the Fund
tends to be more volatile than the 10 year U.S. Treasury issue. Over a long
period of time this volatility risk should be compensated by a greater total
return.
Michael D. Groseclose, MBA, CFA, Portfolio Manager
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
CANADIAN GOVERNMENT BONDS (6.2%)
$4,000,000 Hydro-Quebec, 8.05%, 2024........................... $ 4,258,356
1,000,000 Hydro-Quebec, 11.75%, 2012.......................... 1,364,419
2,000,000 Manitoba (Province of), 9.625%, 2018................ 2,446,178
-----------
Total Canadian government bonds
(cost $7,702,305)............................. 8,068,953
-----------
CORPORATE BONDS (76.4%)
BANKS (5.3%)
3,000,000 Banc One Corp., 9.875%, 2009........................ 3,583,995
1,000,000 Banc One Corp., 10.00%, 2010........................ 1,213,097
2,000,000 Toronto-Dominion Bank, 7.875%, 2004................. 2,054,738
-----------
6,851,830
-----------
BROKER/DEALER (7.0%)
2,000,000 Bear Stearns Companies, Inc., 8.750%, 2004.......... 2,162,174
1,000,000 Bear Stearns Companies, Inc., 9.375%, 2001.......... 1,098,972
1,000,000 Lehman Brothers Holdings Inc., 11.625%, 2005........ 1,252,686
1,000,000 Morgan Stanley Group Inc., 8.10%, 2002.............. 1,050,236
3,000,000 Morgan Stanley Group Inc., 10.00%, 2008............. 3,574,737
-----------
9,138,805
-----------
CHEMICALS (1.5%)
2,000,000 ICI Wilmington Inc., 7.50%, 2002.................... 2,039,046
-----------
DIVERSIFIED FINANCE (14.6%)
2,500,000 Associates Corp. of North America, 8.15%, 2009...... 2,630,182
2,000,000 Bass America Inc., 8.125%, 2002..................... 2,114,880
3,000,000 Ford Capital BV Notes, 9.50%, 2010.................. 3,483,342
2,000,000 Ford Capital BV Notes, 10.125%, 2000................ 2,241,538
3,235,000 General Electric Capital Corp., 8.50%, 2008......... 3,544,826
1,000,000 General Electric Capital Corp., 8.75%, 2000......... 1,069,379
3,515,000 Loew's Corp., 8.875%, 2011.......................... 3,930,062
-----------
19,014,209
-----------
FOOD & BEVERAGE (2.6%)
3,000,000 Seagram, (J.E.) & Sons, Inc. 8.875%, 2011........... 3,398,043
-----------
INSURANCE (17.4%)
4,000,000 AMBAC Inc., 9.375%, 2011............................ 4,674,404
1,000,000 AMBAC Inc., 7.50%, 2023............................. 968,914
4,500,000 Aetna Life & Casualty Co., 6.75%, 2013.............. 4,084,551
5,000,000 Berkley (W.R.) Corp., 9.875%, 2008.................. 5,879,280
2,000,000 Equitable of Iowa Companies, 8.50%, 2005............ 2,122,524
5,000,000 Prudential Surplus Note, 8.10%, 2015................ 4,908,500
-----------
22,638,173
-----------
</TABLE>
8
<PAGE> 9
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
PAPER & FOREST PRODUCTS (1.7%)
$2,000,000 Temple-Inland Inc., 9.00%, 2001.................... $ 2,170,942
------------
PUBLISHING (1.5%)
2,000,000 Times Mirror Co., 7.25%, 2013...................... 1,910,876
------------
RETAIL TRADE (10.9%)
3,000,000 Dayton Hudson Corp., 8.60%, 2012.................. 3,129,672
2,000,000 Dayton Hudson Corp., 9.25%, 2011.................. 2,240,126
1,000,000 Lowe's Companies Inc., 8.19%, 2022................ 1,043,259
3,000,000 May Department Stores Company, 10.625%, 2010...... 3,787,146
2,000,000 Wal-Mart Stores Inc., 7.25%, 2013................. 1,923,546
2,000,000 Wal-Mart Stores Inc., 7.50%, 2004................. 2,041,864
------------
14,165,613
------------
UTILITIES: GAS & ELECTRIC (1.0%)
1,250,000 Pacific Gas & Electric Company, 8.75%, 2001....... 1,331,961
------------
OTHER (12.9%)
4,000,000 Armstrong World Industries Inc., 9.75%, 2008...... 4,573,912
4,000,000 English China Clays Delaware Inc., 7.375%, 2002... 4,076,092
2,000,000 Kaiser Foundation, 9.55%, 2005.................... 2,322,384
2,000,000 Waste Management Inc., 7.65%, 2011................ 2,053,132
3,500,000 Waste Management Inc., 8.75%, 2018................ 3,823,162
------------
16,848,682
------------
Total corporate bonds
(cost $100,381,330).............................. 99,508,180
------------
MORTGAGE BACKED SECURITIES (10.0%)
1,000,000 FHLMC (REMIC) Class 1188-H, 7.50%, 2020........... 981,489
2,000,000 FHLMC (REMIC) Class 1240-L, 6.50%, 2021........... 1,821,878
199,236 FHLMC-GNMA (REMIC) Class 29-X, 6.75%, 2023........ 191,366
548,161 FHLMC-GNMA (REMIC) Class 29-Z, 6.75%, 2024........ 514,843
2,085,000 FNMA (REMIC) Class 1991-118K, 7.00%, 2021......... 1,983,417
782,326 FNMA (REMIC) Class 1993-103A, 7.00%, 2022......... 741,433
915,000 FNMA (REMIC) Class 1993-19J, 5.00%, 2022.......... 714,770
1,425,000 FNMA (REMIC) Class 1993-2-PK, 7.50%, 2022......... 1,386,752
494,542 FNMA (REMIC) Class 1994-96D, 8.00%, 2024.......... 497,973
2,417,257 FNMA (REMIC) Class 1995-20-M, 6.50%, 2023......... 2,168,107
704,667 FNMA (REMIC) Class G1992-64M, 7.00%, 2022......... 669,898
627,058 FNMA (REMIC) Class G1992-65NA, 7.00%, 2022........ 579,596
1,010,000 FNMA (REMIC) Class G1993-10H, 5.00%, 2022......... 773,810
------------
Total mortgage backed securities
(cost $13,476,386)............................... 13,025,332
------------
U.S. GOVERNMENT
LONG-TERM OBLIGATION (4.2%)
5,000,000 U.S. Treasury Note, 8.75%, 2000
(cost $5,289,808).................................. 5,437,500
------------
COMMERCIAL PAPER (1.3%)
1,011,000 Monsanto Co.
5.35%, due 05/10/96.............................. 1,009,648
279,000 AT&T Capital Corp.
5.27%, due 06/07/96.............................. 277,489
388,000 AIG Funding Inc.
5.30%, due 05/07/96.............................. 387,657
------------
Total commercial paper
(cost $1,674,794)................................ 1,674,794
------------
718,105 REPURCHASE AGREEMENT (0.5%)
MBS Tri Party
5.20%, due 05/01/96, Collateralized by
$775,000 FHLMC #C80387, 6.50%, due 04/01/26,
market value - $734,495
(cost $718,105).................................. 718,105
------------
Total investments
(cost $129,242,728).............................. $128,432,864
</TABLE> ============
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
[SHAREHOLDER PICTURE]
Growth and Money Market Fund shareholder Shera Hube (r.) with daughters, Taylor
and Ashlin.
[SHAREHOLDER PICTURE]
Brenda Dunn is custodian for Jason Dunn (l.), Growth Fund shareholder, pictured
on the deck with his playmate, Anna Johnson.
9
<PAGE> 10
FUND PERFORMANCE
Value of reinvested
dividends including
capital gains
[GRAPH]
Value of initial investment
$10,000 LUMP-SUM INVESTMENT IN TAX-FREE INCOME FUND
This graph shows how a hypothetical $10,000 investment grew through reinvestment
of dividends. Shareholders for a period of nearly 10 years ended April 30, 1996,
saw their account grow to $18,957 for an average annual compound total return of
6.6% without including sales charge.* Past performance is not predictive of
future performance.
AVERAGE ANNUAL COMPOUND TOTAL RETURN***
<TABLE>
<CAPTION>
YEARS *$1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
INVESTMENT INVESTMENT INVESTMENT
<S> <C> <C> <C>
1 6.5% 2.8% 2.1%
5 6.8% 5.6% 7.0%
10 6.6% 6.8% 6.4%
Life 6.3% 6.8% 6.4%++
Period ended: 4/30 4/30 3/31
(++10 years, 2 months)
</TABLE>
PORTFOLIO VALUE: $261,521,016
<TABLE>
<CAPTION>
TOP 5 HOLDINGS VALUE %
<S> <C> <C>
Texas $48,229,019 18.44%
Virginia 33,804,400 12.93%
Illinois 24,494,063 9.37%
Washington 21,693,459 8.30%
North Carolina 15,040,100 5.75%
</TABLE>
PORTFOLIO COMPOSITION
Aaa-RATED
26.0%
[PIE CHART]
Aa-RATED
52.2%
A-RATED
21.8%
FUND HIGHLIGHTS
Nationwide(R) Tax-Free Income Fund offers a conservative way to save on taxes by
helping you keep more of what you earn. If your income's taking a big hit from
taxes, consider the advantage of earning tax-free dividends from municipal bonds
carefully selected for their relative safety and security.
The Tax-Free Fund offers income free from federal taxes plus stability of
dividend income stream. For certain shareholders, a portion of income may be
subject to state , local, or federal alternative minimum tax.
If your tax bracket is over 30%, you're sacrificing nearly a third of your
investment earnings to federal taxes when you choose taxable investments.
Earnings from taxable investments may appear high, until you consider how taxes
substantially reduce what earnings you keep.
* For Periods Ended 4/30/96. These returns do not reflect the effects of
sales charges which if reflected would reduce these returns.
** For Periods Ended 3/31/96. Assumes the applicable contingent deferred sales
charge (CDSC) on withdrawals from the Tax-Free Income Fund, which has the
most dramatic effect on the one-year performance figures. The CDSC declines
from 5% in the first year to 0% after 5 years.
*** Total return figures represent past performance and are not predictive of
future performance. Investment returns and principal value of an investment
will fluctuate so that individual shares, when redeemed, may be worth more
or less than the original cost.
NATIONWIDE(R) FAMILY OF FUNDS
TAX-FREE INCOME FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
For the six month period ending April 30, 1996, the Nationwide(R) Tax-Free
Income Fund's total return was .9% as compared to a 1.1% total return for the
Lehman Brothers Municipal Bond Index. For the twelve month period, the Fund
returned 6.5% compared to 8.0% for the Index. The Fund's five-year average
annual (compound) total return was 6.8% excluding sales charges. The Fund's
30-day annualized yield on April 30, 1996 was 4.97% based on the offering price
of $10.06.
The average yield on the Bond Buyer 11-Bond General Obligation Municipal
Bond Index increased from 5.62% to 5.96%, a 6.00% increase. Average yields on
the weekly index were as low as 5.23% and as high as 5.96%. The 30-year Treasury
Bond rose from 6.25% to 7.04%, a 12.6% increase. Interest rates rose during the
period depressing bond prices in general and the net asset value of the
Nationwide Tax-Free Income Fund.
The economy staged a strong rebound during the period despite the bad
winter weather, the General Motors corporate strike and the governmental
shutdowns. The rebound was led by stronger consumer spending and business
investment. As a result of the rebound, the Federal Reserve didn't lower the
Federal Funds Rate as expected during its March session concerned that inflation
would accompany the rebound. The Reserve is currently on hold. The Fed Funds
Rate had been lowered in each of its July, December and January sessions.
The uncertainty as to future action by the Federal Reserve and the status
of the economy increased volatility (fluctuation in bond prices) in the bond
markets.
Supply of tax-exempt municipal debt is expected to remain low. This should
remain a positive for the tax-exempt municipal market keeping prices up over the
entire maturity range. Municipals are still expected to produce long-term value
as concerns about tax reform have diminished.
During the period the yield curve steepened and quality spreads widened.
The strategy of the Fund continued to be to maintain an average credit quality
of AA, to maintain or reduce average maturity as needed, and to reposition
assets as needed to take advantage of market uncertainties that may represent
opportunities to produce better returns for our shareholders over the long-term.
Alpha L. Benson, MBA, Portfolio Manager
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES - (100.1%)
ALABAMA (3.3%)
Birmingham, Alabama General Obligation Refunding
$2,500,000 Revenue, Series 1992-B, 6.25%, 2016 .................... $2,568,750
Birmingham, Alabama Water Works & Sewer Board Refunding
2,480,000 Revenue, Series 1992, 6.125%, 2012 .................. 2,517,200
Huntsville, Alabama General Obligation Limited Tax
3,500,000 Warrants, Series 1992-A, 6.00%, 2012................. 3,574,375
----------
8,660,325
----------
ARIZONA (3.0%)
Salt River Project, Agricultural Improvement & Power
District, Arizona Electric System Revenue Bonds,
5,100,000 Series 1992-C, 6.00%, 2016........................... 5,125,500
Salt River Project, Agricultural Improvement & Power
District, Arizona Electric System Revenue Bonds,
2,500,000 Series 1992-C, 6.20%, 2012........................... 2,571,875
----------
7,697,375
----------
COLORADO (0.4%)
Colorado Housing Finance Authority Single-Family
Housing Revenue Refunding Bonds,
1,000,000 Series 1991-A, 7.15%, 2014........................... 1,037,500
----------
CONNECTICUT (2.0%)
Connecticut Housing Finance Authority
Housing Mortgage Finance Program Bonds,
5,000,000 Series 1992-B, 6.70%, 2012........................... 5,231,250
----------
FLORIDA (3.7%)
Florida Municipal Power Agency, Stanton II Project
1,880,000 Revenue Bonds, Series 1992, 6.50%, 2020.............. 2,093,850
Florida State Board of Education General Obligation
Full Faith and Credit Capital Outlay Bonds,
1,000,000 Series 1994-A, 5.75%, 2013. ......................... 991,250
Florida State Board of Education General Obligation
Full Faith and Credit Public Education Capital
2,205,000 Outlay Refunding Bonds, Series 1995-A, 5.50%, 2015... 2,108,531
Florida State Board of Education General Obligation
Full Faith and Credit Capital Outlay Bonds,
1,550,000 Series 1991-A, 6.75%, 2012 .......................... 1,710,813
Jacksonville, Florida Electric Authority Bulk Power
Revenue Bonds, (Scherer 4 Project, Issue One,
2,400,000 Series 1991-A), 7.00%, 2012.......................... 2,667,000
----------
9,571,444
----------
</TABLE>
10
<PAGE> 11
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
GEORGIA (4.9%)
Atlanta, Georgia General Obligation School Improvement
$1,805,000 Bonds, Series 1993, 5.60%, 2018...................... $ 1,721,519
Dekalb County, Georgia General Obligation Refunding
2,710,000 Bonds, 6.00%, 2012................................... 2,798,075
Georgia General Obligation Refunding Revenue
2,500,000 Bonds, Series 1993-D, 6.50%, 2008.................... 2,781,250
Georgia Municipal Electric Authority Power Revenue
1,600,000 Bonds, Series T, 6.50%, 2025......................... 1,616,000
Georgia Municipal Electric Authority Power Revenue
2,750,000 Bonds, Series 1991-V, 6.60%, 2018.................... 2,918,437
Georgia Residential Financial Authority Revenue Bonds,
1,005,000 Series A, 7.50%, 2017................................ 1,045,200
-----------
12,880,481
-----------
ILLINOIS (9.4%)
Chicago, Illinois General Airport Revenue Refunding Bonds,
Series 1993-A (Chicago-O'Hare International Airport),
3,000,000 5.00%, 2016.......................................... 2,662,500
Illinois Educational Facility Authority Revenue, Series
2,185,000 1991-A, Loyola University, 7.125%, 2021.............. 2,335,218
Illinois Regional Transportation Authority General
Obligation Refunding Bonds, Series 1996, 5.40%,
1,975,000 2015 ................................................ 1,819,469
Illinois State Build Illinois Bonds Sales Tax Revenue,
7,500,000 Series 0, 6.00%, 2018................................ 7,509,375
Illinois State Build Illinois Bonds Sales Tax Revenue,
2,500,000 Series V, 6.375%, 2017............................... 2,559,375
Illinois State General Obligation Bonds, Series of March
3,000,000 1994, 5.80%, 2019.................................... 2,895,000
Illinois State General Obligation Bonds, Series of July
1,350,000 1995, 5.75%, 2016.................................... 1,299,375
Illinois State General Obligation Bonds, Series of
2,500,000 December 1995, 5.125%, 2017.......................... 2,231,250
Palatine, Illinois Corporate Purpose General Obligation
1,000,000 Bonds, Series 1985, 9.90%, 2016...................... 1,182,500
-----------
24,494,062
-----------
INDIANA (2.8%)
Indiana State Toll Road Commission East-West Toll Road
5,335,000 Revenue Bonds, Series 1980, 9.00%, 2015.............. 7,255,600
-----------
MARYLAND (0.4%)
Howard County, Maryland Public Improvement
General Obligation Unlimited Tax,
1,000,000 Series 1994-A, 6.00%, 2014........................... 1,017,500
-----------
MASSACHUSETTS (3.8%)
Massachusetts State General Obligation Bonds
3,775,000 Consolidated Loan, Series 1992-B, 6.50%, 2013........ 3,973,188
Massachusetts State General Obligation Bonds
2,500,000 Consolidated Loan of 1995, Series D, 5.125%, 2012.... 2,325,000
Massachusetts Water Resources Authority General
4,000,000 Revenue Bonds, Series 1992 A, 5.50%, 2022............ 3,720,000
-----------
10,018,188
-----------
MICHIGAN (1.4%)
Michigan State General Obligation Bonds, Environmental
3,500,000 Protection Program, Series 1992, 6.25%, 2012......... 3,723,125
-----------
MINNESOTA (1.6%)
Minnesota State Housing Finance Agency Single Family
Mortgage Revenue Bonds,
4,000,000 Series 1994-K, 6.40%, 2015........................... 4,090,000
-----------
MISSOURI (1.2%)
Kansas City, Missouri Water Works & Sewer Board
1,000,000 Refunding Revenue, Series 1994-D, 6.55%, 2012........ 1,070,000
Missouri State Environmental Improvement & Energy
Resources Authority Water Pollution Control Revenue
2,000,000 Bonds, 6.55%, 2014................................... 2,125,000
-----------
3,195,000
-----------
NEBRASKA (1.9%)
Nebraska Public Power District Power Supply System
5,000,000 Revenue Bonds, Series 1993, 6.125%, 2015............. 5,050,000
-----------
NORTH CAROLINA (5.8%)
Charlotte-Mecklenburg Hospital Authority, North Carolina
Health Care System Revenue Bonds, Series 1992,
1,035,000 6.00%, 2022.......................................... 1,022,063
North Carolina Housing Finance Agency Multi-family
3,460,000 Revenue Refunding Bonds, Series H, 5.95%, 2021....... 3,421,075
North Carolina Housing Finance Agency Single Family
2,035,000 Revenue Bonds, Series AA, 6.25%, 2017................ 2,047,719
North Carolina Housing Finance Agency Single Family
2,005,000 Revenue Bonds, Series J, 7.40%, 2022................. 2,067,656
North Carolina Housing Finance Agency Single Family
1,910,000 Revenue Bonds, Series N, 7.40%, 2028................. 1,972,075
North Carolina Medical Care Commission Hospital Revenue
Refunding Bonds, Series 1992-A (North Carolina
2,000,000 Baptist Hospitals Project), 6.375%, 2014............. 2,050,000
Salisbury, North Carolina General Obligation Water and
1,000,000 Sewer Bonds, Series 1995, 5.30%, 2015................ 942,500
Union County, North Carolina Enterprise Systems Revenue
1,570,000 Bonds, Series 1996, 5.50%, 2017...................... 1,517,012
-----------
15,040,100
-----------
OHIO (0.4%)
Columbus, Ohio Water Works & Sewer Board Refunding
1,000,000 Revenue, Series 1991, 6.375%, 2010 .................. 1,046,250
-----------
PENNSYLVANIA (2.9%)
Pennsylvania Housing Finance Agency Rental
Housing Refunding Revenue Bonds,
4,055,000 Issue 1992, 6.40%, 2012.............................. 4,080,344
Pennsylvania Housing Finance Agency Rental
Housing Refunding Revenue Bonds,
1,500,000 Issue 1992, 6.25%, 2007.............................. 1,530,000
Pennsylvania State Turnpike Commission Oil
2,000,000 Franchise Tax Revenue, Series A, 6.00%, 2014......... 2,012,500
-----------
7,622,844
-----------
SOUTH CAROLINA (4.7%)
Charleston, South Carolina Waterworks & Sewer System
Refunding & Capital Improvement Revenue Bonds,
6,980,000 Series 1991, 6.00%, 2018............................. 7,023,625
South Carolina State Housing Finance & Development
Authority Homeownership Mortgage Purchase Bonds,
2,075,000 1994 Series A, 6.375%, 2016.......................... 2,080,187
South Carolina State Housing Finance & Development
Authority Multi-Family Development Revenue Refunding,
1,500,000 Series 1992-A, 6.875%, 2023.......................... 1,543,125
Spartanburg, South Carolina Water System
Improvement & Refunding Revenue Bonds,
1,500,000 Series 1992, 6.25%, 2017............................. 1,535,625
-----------
12,182,562
-----------
TENNESSEE (1.4%)
Nashville & Davidson County, Tennessee General
Obligation Multi-Purpose Improvement Bonds,
1,000,000 Series 1994, 6.125%, 2014............................ 1,021,250
Nashville & Davidson County, Tennessee Health &
Educational Facilities Revenue Bonds, Series 1979,
1,500,000 7.875%, 2004......................................... 1,646,250
Shelby County, Tennessee General Obligation
1,000,000 School Bonds, Series 1994-B, 6.00%, 2014............. 1,023,750
-----------
3,691,250
-----------
TEXAS (18.4%)
Bexar County, Texas Combination Tax and Revenue
5,000,000 Certificates, Series 1992, 6.20%, 2012............... 5,337,500
Conroe, Texas Independent School District Unlimited
Tax Schoolhouse and Refunding Bonds, Series 1993,
3,500,000 5.00%, 2018.......................................... 3,097,500
Harris County, Texas Detention Facility Certificates,
1,000,000 Series 1992, 6.00%, 2010............................. 1,042,500
Harris County, Texas General Obligation Tax and Revenue
3,500,000 Certificates, Series 1994, 6.10%, 2013............... 3,618,125
Houston, Texas General Obligation Public Improvement
5,435,000 Unrefunded, Series C, 6.25%, 2012.................... 5,564,081
Houston, Texas Water & Sewer Junior Lien Revenue
7,720,000 Refunding, Series 1991-C, 6.375%, 2017............... 8,057,750
Irving, Texas Independent School District Unlimited Tax
School Building Bonds, Series 1991-C-Permanent School
1,215,000 Fund, 5.25%, 2009.................................... 1,173,994
Lower Colorado River Authority Texas Junior Lien
3,390,000 Refunding Revenue Bonds, Series 1992, 6.00%, 2017.... 3,406,950
Texas A&M University System Board of Regents Revenue
2,000,000 Financing System Bonds, Series 1996, 5.375%, 2014.... 1,880,000
Texas State Water Development Bonds, Series 1994,
3,175,000 6.90%, 2017.......................................... 3,448,844
University of Texas Revenue Financing System Refunding
2,750,000 Bonds, Series 1991-B, 6.75%, 2013.................... 2,970,000
University of Texas Revenue Financing System Bonds,
2,000,000 Series 1991, 6.50%, 2011............................. 2,195,000
University of Texas System Permanent University Fund
2,000,000 Bonds, Series 1992-B, 6.25%, 2013.................... 2,152,500
Weatherford, Texas Independent School District Unlimited
Tax School Building and Refunding Bonds,
3,000,000 Series 1994, 6.50%, 2015............................. 3,142,500
Weatherford, Texas Independent School District Unlimited
Tax School Building and Refunding Bonds,
1,090,000 Series 1994, 6.40%, 2012............................. 1,141,775
-----------
48,229,019
-----------
UTAH (2.0%)
Intermountain Power Agency, Utah Power Supply Revenue
5,580,000 Refunding Bonds, Series 1993-A, 5.50%, 2020.......... 5,147,550
-----------
VIRGINIA (12.9%)
Fairfax County, Virginia Water Authority Water Refunding
1,500,000 Revenue Series 1992, 6.00%, 2022..................... 1,492,500
Henrico County, Virginia Water and Sewer System Refunding
4,250,000 Revenue Bonds, Series 1994, 5.875%, 2014............. 4,170,313
Newport News, Virginia General Improvement Bonds,
1,985,000 Series 1993-E, 5.20%, 2013........................... 1,865,900
Richmond, Virginia General Obligation Public
Improvement Refunding Bonds, Series 1991-B,
8,000,000 6.25%, 2018.......................................... 8,130,000
Virginia Housing Development Authority Commonwealth
2,150,000 Mortgage Bonds, Series 1993-H, 5.25%, 2023........... 1,918,875
</TABLE>
11
<PAGE> 12
TAX FREE INCOME FUND, CONTINUED
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
Virginia Housing Development Authority Commonwealth
Mortgage Bonds, Series 1992-C, Subseries C-7,
$2,000,000 6.30%, 2015........................................ $ 2,017,500
Virginia Housing Development Authority
Commonwealth Mortgage Bonds, Series 1995-B,
1,000,000 Subseries B-3, 6.35%, 2015......................... 1,007,500
Virginia Housing Development Authority Commonwealth
5,500,000 Mortgage Bonds, Series 1992-A, 7.10%, 2022......... 5,754,375
Virginia Housing Development Authority Commonwealth
Mortgage Bonds, Series B, Subseries B-2,
1,000,000 6.50%, 2010........................................ 1,053,750
Virginia Housing Development Authority Commonwealth
Mortgage Bonds, Series 1995-D, Subseries D-1,
1,080,000 5.95%, 2013........................................ 1,069,200
Virginia Public School Authority School
Financing Bonds
2,000,000 (1991 Resolution), Series 1994-A, 6.20%, 2013...... 2,080,000
Virginia Public School Authority School Financing
Bonds (1991 Resolution), Series 1995-C, 5.00%,
3,595,000 2016............................................... 3,244,487
------------
33,804,400
------------
WASHINGTON (8.3%)
Seattle, Washington Metropolitan General Obligation
2,950,000 Bonds, Series 1991, 6.875%, 2020................... 3,034,341
Seattle, Washington Municipal Light and Power
Refunding Revenue Bonds, Series 1992-B, 5.75%,
1,500,000 2010............................................... 1,509,375
Seattle, Washington Water System and Refunding
6,150,000 Revenue Bonds, 1993, 5.50%, 2018................... 5,750,250
Washington State General Obligation, Series 1992-A and
8,635,000 AT-6, 5.75%, 2017.................................. 8,278,806
Washington State General Obligation Unlimited Tax,
2,155,000 Bonds, Series DD-14 and B, 6.00%, 2015............. 2,181,937
Washington State General Obligation Unlimited Tax,
1,000,000 Refunding Bonds, Series R-96B, 5.00%, 2010......... 938,750
------------
21,693,459
------------
WISCONSIN (3.5%)
Wisconsin State General Obligation, Series 1992-A,
2,000,000 6.30%, 2011........................................ 2,155,000
Wisconsin State General Obligation Bonds, Series
2,000,000 1994-A, 5.00%, 2014................................ 1,800,000
Wisconsin State Transportation Revenue Bonds,
2,500,000 Series A, 5.50%, 2012.............................. 2,393,750
Wisconsin State General Obligation Bonds of 1994,
3,065,000 Series A, 5.00%, 2014.............................. 2,792,981
------------
9,141,731
------------
Total long-term municipal securities
(cost $254,614,634)................................ $261,521,015
============
</TABLE>
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
[SHAREHOLDER PICTURE]
Centenarian Rev. Cloyce Copley, Nationwide(R) Fund shareholder, with bride,
Dorcas Parker Copley.
12
<PAGE> 13
FUND PERFORMANCE
Value of reinvested dividends including
capital gains
Value of initial investment
[GRAPH]
$10,000 LUMP-SUM INVESTMENT IN U.S. GOV'T INCOME FUND
This graph shows the ending value on a hypothetical $10,000 investment with
capital gains and dividends reinvested for the life of the Fund (inception
2/28/92). The ending value of $12,893 represents an average annual compound
total return of 6.3% without including the contingent deferred sales charge.
Past performance is not predictive of future performance.
AVERAGE ANNUAL COMPOUND TOTAL RETURN***
<TABLE>
<CAPTION>
YEARS *$1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
INVESTMENT INVESTMENT INVESTMENT
<S> <C> <C> <C>
1 8.0% 1.6% 5.6%
Life 6.3% 5.9% 6.4%
Period ended: 4/30 4/30 3/31
(4 years, 2 months since 3/01/92 inception)
</TABLE>
PORTFOLIO VALUE: $38,303,099
<TABLE>
<CAPTION>
TOP 5 HOLDINGS VALUE %
<S> <C> <C>
FHLMC (REMIC) Series 1462-PT $5,101,245 13.32%
FNMA (REMIC) Series 93-203 PJ 4,767,895 12.45%
Federal Home Loan Banks 3,956,896 10.33%
FNMA (REMIC) Series 92-151-H 3,611,876 9.43%
FHLMC (REMIC) Series 1344-D 3,595,276 9.39%
</TABLE>
PORTFOLIO COMPOSITION U.S.GOVERNMENT AND
AGENCY LONG-TERM OBLIGATIONS
17.0%
REPURCHASE AGREEMENTS AND OTHER
ASSETS LESS LIABILITIES
3.2%
[PIE CHART]
MORTGAGE BACKED SECURITIES
79.8%
FUND HIGHLIGHTS
Investing can never be risk-free, but the Nationwide(R) U.S. Government Income
Fund limits your risk by investing in U.S. government securities backed by the
full faith and credit of the government and its agencies.
Monthly income is paid by the Fund from a high-quality portfolio of government
securities. These securities are generally considered among the safest, though
they are not specifically rated by the credit rating agencies.
To limit share price fluctuation, the Fund maintains an average portfolio
maturity of 10 years or less. Generally, shorter maturities are less subject to
price fluctuation. Of course, all bond prices (U.S. government, municipal, and
corporate) are affected by interest rates.
* For Periods Ended 4/30/96. These returns do not reflect the effects of
sales charges which if reflected would reduce these returns.
** For Periods Ended 3/31/96. Assumes the applicable contingent deferred sales
charge (CDSC) on withdrawals from U.S. Government Income Fund, which has
the most dramatic effect on the one-year performance figures. The CDSC
declines from 5% in the first year to 0% after 5 years.
*** Total return figures represent past performance and are not predictive of
future performance. Investment returns and principal value of an investment
will fluctuate so that individual shares, when redeemed, may be worth more
or less than the original cost.
NATIONWIDE(R) FAMILY OF FUNDS
U. S. GOV'T INCOME FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Nationwide(R) U.S. Government Income Fund's total return for the six months
ended April 30, 1996 was (.2%), compared to a 1.2% total return for the Lehman
Brothers Intermediate Government Bond Index. For the twelve month period, the
Fund returned 8.0% compared to 7.5% for the Index.
During the past six months long-term and intermediate-term interest rates
have increased by approximately 60 basis points. The yield curve steepened as
short-term rates were unchanged to lower. The price of the Government Income
Fund moved lower during this period reflecting the move in the broad bond
market, while also benefitting somewhat from the steeper yield curve due to its
intermediate-term orientation.
Inflation and expectations for future inflation always drive the bond market
in the long run, with the value of fixed coupons being eroded by higher levels
of inflation. Currently, higher interest rates are generally being blamed on
fears of a stronger economy and thus higher inflation rates in the future.
Actual reported numbers however have continued to show stable or even declining
inflation rates in recent months.
Lower bond prices with the recent move to higher interest rates and a
stable inflation environment creates additional value in the fixed-income
markets. I have used this opportunity to increase market exposure slightly,
allowing shareholders to benefit from future decreases in interest rates. The
Government Bond Fund continues to be invested in sectors of the government
agency, and mortgage-backed markets perceived to be undervalued. Approximately
80 percent of portfolio assets are invested in the Collateralized Mortgage
Obligation (CMO) market. The yield on these conservatively-structured
investments continues to make them attractive portfolio holdings.
Wayne T. Frisbee, CFA, Portfolio Manager
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE BACKED SECURITIES (79.8%)
FHLMC (REMIC) Series 1462, Class PT,
$5,000,000 7.50%, 2003..................................... $ 5,101,245
FHLMC (REMIC) Series 1313, Class G,..............
3,000,000 7.25%, 2007..................................... 2,976,807
FHLMC (REMIC) Series 1344, Class D,
4,000,000 6.00%, 2007...................................... 3,595,276
FHLMC (REMIC) Series 31, Class E,
3,437,917 7.55%, 2020...................................... 3,360,320
FNMA (REMIC) Series 1992-81-Z,
2,090,092 8.50%, 2022...................................... 2,143,283
FNMA (REMIC) Series 92-126, Class VB,
1,500,000 8.00%, 2002...................................... 1,546,933
FNMA (REMIC) Series 1992-151, Class H,
4,000,000 6.00%, 2007...................................... 3,611,876
FNMA (REMIC) Series 1988-25, Class B,
473,917 9.25%, 2018...................................... 490,480
FNMA (REMIC) Series 1990-7, Class B,
2,962,205 8.50%, 2020...................................... 3,054,031
FNMA (REMIC) Series 1993-203, Class PJ,
5,000,000 6.50%, 2023...................................... 4,767,895
-----------
Total mortgage backed securities
(cost $31,158,696)............................... 30,648,146
-----------
U.S. GOVERNMENT AND AGENCY
LONG-TERM OBLIGATIONS (17.0%)
Federal Home Loan Banks
4,000,000 6.36%, 2001...................................... 3,956,896
Federal Home Loan Mortgage Corp.
1,000,000 7.445%, 2004..................................... 996,720
Federal National Mortgage Association
1,000,000 7.05%, 2000...................................... 991,059
Resolution Funding STRIPS,
2,000,000 0.00%, 2013...................................... 571,278
-----------
Total U.S. government and agency
long-term obligations
(cost $6,458,075)................................ 6,515,953
-----------
REPURCHASE AGREEMENT (3.0%)
Merrill Lynch & Co., Inc.,
5.25%, due 05/01/96, Collateralized by
$1,150,000 U.S. Treasury Note, 6.00%, due 08/31/97
market value - $1,162,949
1,139,000 (cost $1,139,000)................................ 1,139,000
-----------
Total investments
(cost $38,755,771)............................... $38,303,099
===========
</TABLE>
Cost also represents cost for federal income tax purposes. Portfolio holding
percentages represent market value as a percentage of net assets. See
accompanying notes to financial statements.
13
<PAGE> 14
FUND PERFORMANCE
Money Market Fund Yield Trend
[GRAPH]
Average Bank Money Market
Deposit Account Yield Trend
YIELD TREND: FUND VS. DEPOSIT ACCOUNT (MMDA)
The graph above shows the Money Market Fund yield trend during the year ended
April 30, 1996, as compared to the average federally insured bank Money Market
Deposit Account (MMDA) rates over the same 12-month period according to Bank
Rate Monitor.
AVERAGE ANNUAL COMPOUND TOTAL RETURN***
<TABLE>
<CAPTION>
YEARS *$1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
INVESTMENT INVESTMENT INVESTMENT
<S> <C> <C> <C>
1 5.3% 5.2% 5.4%
5 4.0% 4.2% 4.0%
10 5.6% 5.1% 5.6%
15 7.2% 5.9% 7.3%
Period ended: 4/30 4/30 3/31
</TABLE>
PORTFOLIO VALUE: $676,266,058
<TABLE>
<CAPTION>
TOP 5 HOLDINGS VALUE %
<S> <C> <C>
Great Lakes Chemical Corp. $9,951,600 1.47%
GE Capital Corp. 9,816,559 1.45%
National City Credit 9,341,249 1.38%
Walt Disney Company 9,304,059 1.38%
Associates Corp. of North America 8,976,343 1.33%
</TABLE>
PORTFOLIO COMPOSITION
CANADIAN GOVERNMENT OBLIGATIONS
4.2%
CORPORATE NOTES
1.5%
BANKER'S ACCEPTANCES
1.4%
[PIE CHART]
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS AND OTHER ASSETS LESS
LIABILITIES
3.7%
COMMERCIAL PAPER
89.2%
FUND HIGHLIGHTS
Due to daily dividend compounding from a high quality portfolio, the
Nationwide(R) Money Market Fund offers high current market rates--plus stability
of principal since the Fund seeks to maintain a constant $1.00 per share net
asset value. During the Fund's life, its share price has always been $1.00.
The Money Market Fund earned a higher yield than the average federally insured
bank Money Market Deposit Account (MMDA) rates over the same 12-month period by
a factor of 2 to 1. Source: Bank Rate Monitor rates based on average annual
effective yield for leading bank and thrift MMDAs.
An investment in the Nationwide(R) Money Market Fund is neither insured nor
guaranteed by the U.S. government and there can be no assurance that it will be
able to maintain a stable net asset value of $1.00 per share.
* For Periods Ended 4/30/96.
** For Periods Ended 3/31/96. There are no sales charges in the Nationwide
Money Market Fund
*** Total return figures represent past performance and are not predictive of
future performance.
NATIONWIDE(R) FAMILY OF FUNDS
MONEY MARKET FUND
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
On April 30, 1996, the 30-day current yield for Nationwide(R) Money Market
Fund was 4.79%. For the twelve month period, the total return of the Fund was
5.30% compared to 5.25% for the IBC (Donohues) Money Fund Average of Taxable
First Tier Funds (Index) and 2.90% for the Consumer Price Index (CPI). For the
six month period ending April 30, 1996, the Fund provided a total return of
2.51%, as compared to 2.48% for the Index and 1.69% for the CPI. The strategy of
maintaining a balanced maturity structure served the Fund well during the past
several months. Interest rates moved erratically at times due to conflicting and
often confusing economic data. The general trend, however, was for short-term
rates to decline, and long-term rates to climb, steepening the yield curve. For
example, the yield on prime 60 day commercial paper slipped from 5.70% to 5.25%,
while the yield on the 30 year U.S. Treasury Bond rose from 6.25% to over 6.90%
in April of this year.
The Federal Reserve Board has strived to hold inflation in check without
stalling the economy. Due to sluggish December retail sales and the absence of
inflation, the Fed elected to cut the discount rate 1/4 of a point to 5.00% on
January 31. Banks followed with two separate 1/4 point prime rate cuts to 8.25%.
Most short-term interest rates declined proportionately, as did the yield on the
Nationwide(R) Money Market Fund. Recently, there have been some signs that the
economy is building strength, which has contributed to the jump in long-term
interest rates, and given rise to the possibility of the Fed tightening monetary
policy.
The portfolio management focus of the Nationwide(R) Money Market Fund will
continue to be to invest in high quality instruments in a balanced maturity
structure, consistent with the goals of a constant share value, liquidity and a
competitive return.
William M. Burtch, MBA, Portfolio Manager
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKERS ACCEPTANCES (1.4%)
Republic Bank of NY
$5,955,000 5.03%, due 06/21/96............................. $ 5,912,566
3,455,000 5.27%, due 06/21/96............................. 3,429,205
-----------
Total bankers acceptances
(cost $9,341,771)................................ 9,341,771
-----------
CANADIAN GOVERNMENT OBLIGATIONS (4.2%)
British Columbia (Providence of)
3,500,000 5.45%, due 05/03/96............................. 3,498,940
5,645,000 5.25%, due 07/10/96............................. 5,587,374
5,000,000 5.23%, due 11/18/96............................. 4,853,996
5,000,000 5.23%, due 12/27/96............................. 4,825,667
Canadian Wheat Board
6,530,000 5.00%, due 05/16/96............................. 6,516,395
3,350,000 5.20%, due 06/03/96............................. 3,334,032
-----------
Total Canadian government obligations
(cost $28,616,404)............................... 28,616,404
-----------
COMMERCIAL PAPER (89.0%)
AUTO/FINANCE (3.3%)
Ford Motor Credit Company
5,705,000 5.28%, due 05/22/96.............................. 5,687,429
8,000,000 5.30%, due 05/24/96.............................. 7,972,911
9,000,000 5.29%, due 06/07/96.............................. 8,951,067
-----------
22,611,407
-----------
BANKS (10.0%)
Banc One Corp.
5,000,000 5.30%, due 05/29/96............................. 4,979,389
9,000,000 5.32%, due 06/13/96............................. 8,942,810
5,000,000 5.30%, due 07/15/96............................. 4,944,791
CoreStates Capital Corp.
6,000,000 5.32%, due 05/07/96............................. 5,994,680
2,770,000 5.29%, due 05/30/96............................. 2,758,196
5,000,000 5.21%, due 06/11/96............................. 4,970,332
First Union Corp.................................
6,000,000 5.24%, due 05/13/96............................. 5,989,520
JP Morgan & Co., Inc.
8,000,000 5.26%, due 07/01/96............................. 7,928,698
5,000,000 5.02%, due 08/29/96............................. 4,916,333
National City Credit Corp.
7,000,000 5.33%, due 06/06/96............................. 6,962,690
9,420,000 5.28%, due 06/27/96............................. 9,341,249
-----------
67,728,688
-----------
BROKER-DEALERS (13.7%)
Bear Stearns Companies, Inc.
7,692,000 5.30%, due 05/08/96............................. 7,684,073
7,000,000 5.26%, due 05/09/96............................. 6,991,818
Dean Witter Discover & Co.
8,565,000 5.18%, due 05/02/96............................. 8,563,768
4,755,000 5.30%, due 05/06/96............................. 4,751,500
7,735,000 5.32%, due 05/16/96............................. 7,717,854
3,170,000 5.03%, due 05/20/96............................. 3,161,585
Merrill Lynch & Co., Inc.
2,505,000 5.31%, due 05/06/96............................. 2,503,153
2,705,000 5.35%, due 05/07/96............................. 2,702,588
</TABLE>
14
<PAGE> 15
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
$ 5,000,000 5.32%, due 05/15/96................................ $ 4,989,656
5,000,000 5.32%, due 05/15/96................................ 4,989,655
5,400,000 5.10%, due 05/17/96................................ 5,387,760
1,420,000 5.30%, due 05/31/96................................ 1,413,728
5,900,000 5.25%, due 06/14/96................................ 5,862,142
Morgan Stanley Group, Inc.
5,000,000 5.16%, due 05/13/96................................ 4,991,400
8,000,000 5.25%, due 07/25/96................................ 7,900,833
Smith Barney, Inc.
8,430,000 5.33%, due 05/24/96................................ 8,401,293
5,000,000 5.29%, due 05/31/96................................ 4,977,958
------------
92,990,764
------------
CAPTIVE BORROWING CONDUIT (1.1%)
BTR Dunlop Finance
2,615,000 5.10%, due 05/10/96................................ 2,611,666
5,000,000 5.30%, due 06/17/96................................ 4,965,403
------------
7,577,069
------------
CHEMICALS (6.3%)
Great Lakes Chemical Corp.
4,000,000 5.32%, due 05/22/96................................ 3,987,587
10,000,000 5.28%, due 06/03/96................................ 9,951,600
Monsanto Co.
2,000,000 5.30%, due 05/21/96................................ 1,994,111
8,000,000 5.30%, due 05/21/96................................ 7,976,445
6,000,000 5.30%, due 05/23/96................................ 5,980,566
PPG Industries, Inc.
5,000,000 5.27%, due 05/13/96................................ 4,991,216
8,000,000 5.27%, due 05/23/96................................ 7,974,236
------------
42,855,761
------------
CONSUMER PRODUCTS (2.4%)
Clorox Co.
6,060,000 5.02%, due 05/16/96................................ 6,047,324
6,000,000 5.27%, due 05/20/96................................ 5,983,312
4,000,000 5.29%, due 05/28/96................................ 3,984,130
------------
16,014,766
------------
CONSUMER SALES FINANCE (7.6%)
American Express Credit Corp.
5,575,000 5.26%, due 06/21/96................................ 5,533,457
Associates Corp. of North America
9,020,000 5.28%, due 06/03/96................................ 8,976,343
9,000,000 5.28%, due 07/17/96................................ 8,898,360
Avco Financial Services, Inc.
8,000,000 5.28%, due 05/28/96................................ 7,968,320
7,000,000 5.30%, due 05/31/96................................ 6,969,083
8,000,000 5.28%, due 06/05/96................................ 7,958,933
Norwest Financial, Inc.
5,590,000 5.34%, due 05/03/96................................ 5,588,342
------------
51,892,838
------------
CORPORATE CREDIT UNIONS (1.2%)
U.S. Central Credit Union
8,000,000 5.30%, due 05/15/96................................ 7,983,511
------------
DIVERSIFIED FINANCE (8.5%)
AT&T Capital Corp.
3,050,000 5.35%, due 05/01/96................................ 3,050,000
5,559,000 5.28%, due 06/07/96................................ 5,528,833
8,000,000 5.30%, due 06/19/96................................ 7,942,289
5,000,000 5.22%, due 06/20/96................................ 4,963,750
5,000,000 5.30%, due 07/08/96................................ 4,949,945
General Electric Capital Corp.
9,845,000 5.20%, due 05/21/96................................ 9,816,559
6,200,000 5.27%, due 07/15/96................................ 6,131,929
Transamerica Finance Group, Inc.
8,000,000 5.28%, due 05/29/96................................ 7,967,147
7,000,000 5.28%, due 06/04/96................................ 6,965,093
------------
57,315,545
------------
ELECTRICAL EQUIPMENT (0.8%)
Johnson Controls, Inc.
5,500,000 5.28%, due 05/23/96................................ 5,482,253
------------
ELECTRIC UTILITY (2.2%)
National Rural Utilities Cooperative Finance Corp.
6,000,000 5.27%, due 05/17/96................................ 5,985,947
5,000,000 5.33%, due 05/24/96................................ 4,982,974
4,000,000 5.32%, due 06/13/96................................ 3,974,582
------------
14,943,503
------------
ENTERTAINMENT (3.5%)
Walt Disney Company
6,175,000 5.28%, due 06/19/96................................ 6,130,622
8,085,000 5.26%, due 07/16/96................................ 7,995,221
9,440,000 5.29%, due 08/07/96................................ 9,304,059
------------
23,429,902
------------
FOOD & BEVERAGES (6.8%)
CPC International, Inc.
8,000,000 4.93%, due 06/24/96................................ 7,940,840
6,000,000 5.29%, due 07/12/96................................ 5,936,520
6,000,000 5.28%, due 07/18/96................................ 5,931,360
5,000,000 5.27%, due 08/06/96................................ 4,929,001
Heinz (H.J.) Company
8,740,000 5.30%, due 05/07/96................................ 8,732,280
4,000,000 5.31%, due 05/09/96................................ 3,995,280
Sara Lee Corp.
9,000,000 5.29%, due 06/26/96................................ 8,925,940
------------
46,391,221
------------
INSURANCE (7.1%)
Marsh & McLennan Co.
5,000,000 5.05%, due 05/10/96................................ 4,993,688
8,000,000 5.27%, due 06/12/96................................ 7,950,813
5,000,000 5.30%, due 07/26/96................................ 4,936,694
MetLife Funding, Inc.
6,000,000 5.33%, due 05/01/96................................ 6,000,000
1,091,000 5.35%, due 05/01/96................................ 1,091,000
5,000,000 5.30%, due 05/02/96................................ 4,999,264
Old Republic Capital Corp.
8,000,000 5.45%, due 05/08/96................................ 7,991,522
5,000,000 5.02%, due 07/09/96................................ 4,951,892
5,000,000 5.30%, due 08/06/96................................ 4,928,597
------------
47,843,470
------------
LEASE FINANCING (5.0%)
Fleet Funding, Inc.
2,360,000 5.25%, due 05/10/96................................ 2,356,903
7,285,000 5.29%, due 06/10/96................................ 7,242,180
PHH Corp.
1,375,000 5.32%, due 05/03/96................................ 1,374,593
3,245,000 5.38%, due 05/03/96................................ 3,244,030
3,850,000 5.30%, due 05/14/96................................ 3,842,632
8,685,000 5.33%, due 05/14/96................................ 8,668,284
7,000,000 5.28%, due 05/30/96................................ 6,970,227
------------
33,698,849
------------
MISCELLANEOUS MANUFACTURING (1.2%)
Illinois Tool Works
5,000,000 5.31%, due 06/28/96................................ 4,957,225
3,000,000 5.28%, due 07/09/96................................ 2,969,640
------------
7,926,865
------------
OIL & GAS: EQUIPMENT SERVICES (1.2%)
Chevron Transport Corp.
8,000,000 5.30%, due 05/10/96................................ 7,989,400
------------
PACKAGING/CONTAINERS (1.0%)
Bemis Co., Inc.
6,934,000 5.33%, due 05/09/96................................ 6,925,787
------------
PAPER AND FOREST PRODUCTS (0.7%)
Sonoco Products Co.
5,000,000 5.33%, due 05/02/96................................ 4,999,260
------------
PHARMACEUTICALS & PERSONAL CARE (0.6%)
Schering Corp.
4,047,000 5.23%, due 07/31/96................................ 3,993,498
------------
PREMIUM FINANCE (1.2%)
A.I. Credit Corp.
8,000,000 5.27%, due 06/11/96................................ 7,951,984
------------
PRINTING & PUBLISHING (0.7%)
McGraw-Hill, Inc.
5,000,000 5.25%, due 05/17/96................................ 4,988,333
------------
RAILROADS (2.9%)
Norfolk & Southern Railway Company
5,636,000 5.25%, due 06/07/96................................ 5,605,589
4,000,000 5.25%, due 06/18/96................................ 3,972,000
5,000,000 5.34%, due 07/02/96................................ 4,954,017
5,000,000 5.32%, due 07/11/96................................ 4,947,539
------------
19,479,145
------------
Total commercial paper
(cost $603,013,819)................................. 603,013,819
------------
CORPORATE NOTES (1.5%)
BANKS
J.P. Morgan & Co.
5,000,000 6.20%, due 05/13/96................................. 4,999,948
FINANCE
G.E. Capital Corp.
5,000,000 5.702%, variable, due 05/06/96*..................... 4,999,969
------------
Total corporate notes
(cost $9,999,917)................................... 9,999,917
------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (3.7%)
U.S. Treasury Bills
3,000,000 5.53%, due 05/30/96................................ 2,986,635
5,000,000 4.81%, due 11/14/96................................ 4,868,393
3,090,000 4.86%, due 01/09/97................................ 2,984,461
5,000,000 5.08%, due 02/06/97................................ 4,801,739
Federal National Mortgage Association
2,385,000 5.03%, due 06/06/96................................ 2,373,004
5,000,000 5.71%, due 06/10/96................................ 4,999,712
Federal Home Loan Mortgage Corp.
2,300,000 5.08%, due 07/01/96................................ 2,280,203
------------
Total U.S. government and agency obligations
(cost $25,294,147).................................. 25,294,147
------------
Total investments
(cost $676,266,058)................................. $676,266,058
============
</TABLE>
* Variable rate as of 4/30/96 and resets to 3 month Treasury Bill Index, plus 20
basis points, and resets weekly and pays quarterly.
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to fifnancial statements.
15
<PAGE> 16
STATEMENTS OF
ASSETS AND
LIABILITIES
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R) NATIONWIDE(R)
GROWTH NATIONWIDE(R) BOND TAX-FREE
FUND FUND FUND INCOME FUND
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $489,215,279, $667,222,070 889,479,243 128,432,864 261,521,015
$554,783,176, $129,242,728, $254,614,634,
$38,755,771, and $676,266,058, respectively)
Cash 728,023 -- -- --
Accrued interest and dividends receivable 342,384 1,136,676 2,591,350 5,140,442
Receivable for Fund shares sold 2,125,551 609,485 118,065 132,186
Receivable for investment securities sold 669,000 10,270,826 3,754,286 --
- --------------------------------------------------------------------------------------------------------------------------
Total assets 671,087,028 901,496,230 134,896,565 266,793,643
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investment securities purchased 1,423,409 7,907,929 4,136,182 1,529,477
Net payable for Fund shares redeemed 648,505 1,323,856 217,650 401,512
Accrued management fees 267,698 364,989 53,934 138,685
Accrued transfer agent fees 45,093 50,522 12,715 35,018
Accrued distribution fees -- -- -- 42,813
Distribution payable -- 9,370 123,844 320,002
Other accrued expenses 197,181 283,156 41,277 3,117,629
- --------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,581,886 9,939,822 4,585,602 5,585,136
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS $668,505,142 891,556,408 130,310,963 261,208,507
==========================================================================================================================
REPRESENTED BY:
Capital Shares, $1 par value outstanding 50,861,005 47,236,908 14,298,748 25,972,209
Capital paid in excess of par value 422,537,743 482,087,976 126,066,558 232,567,726
Net unrealized appreciation (depreciation) 178,006,791 334,696,067 (809,864) 6,906,381
Accumulated undistributed net realized gain (loss) 17,070,524 26,697,680 (9,298,851) (4,239,615)
Accumulated undistributed (distributions in excess of)
net investment income 29,079 837,777 54,372 1,806
NET ASSETS $668,505,142 891,556,408 130,310,963 261,208,507
==========================================================================================================================
Shares outstanding (unlimited number of shares authorized) 50,861,005 47,236,908 14,298,748 25,972,209
Net assets per share $ 13.14 18.87 9.11 10.06
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R)
U.S. GOV'T MONEY MARKET
INCOME FUND FUND
- --------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at value (cost $489,215,279, 38,303,099 676,266,058
$554,783,176, $129,242,728, $254,614,634,
$38,755,771, and $676,266,058, respectively)
Cash 6,145 --
Accrued interest and dividends receivable 230,574 319,020
Receivable for Fund shares sold -- 3,598,605
Receivable for investment securities sold 1,210,000 21,219,000
- -------------------------------------------------------------------------------------------
Total assets 39,749,818 701,402,683
- -------------------------------------------------------------------------------------------
LIABILITIES
Payable for investment securities purchased 1,139,000 12,999,680
Net payable for Fund shares redeemed 99,422 10,045,563
Accrued management fees 20,603 248,693
Accrued transfer agent fees 5,060 52,436
Accrued distribution fees 6,339 --
Distribution payable 46,464 107,848
Other accrued expenses 7,068 579,052
- -------------------------------------------------------------------------------------------
Total liabilities 1,323,956 24,033,272
- -------------------------------------------------------------------------------------------
NET ASSETS 38,425,862 677,369,411
===========================================================================================
REPRESENTED BY:
Capital Shares, $1 par value outstanding 3,920,403 677,371,566
Capital paid in excess of par value 35,388,863 --
Net unrealized appreciation (depreciation) (452,672) --
Accumulated undistributed net realized gain (loss) (395,914) --
Accumulated undistributed (distributions in excess of)
net investment income (34,818) (2,155)
NET ASSETS 38,425,862 677,369,411
===========================================================================================
Shares outstanding (unlimited number of shares authorized) 3,920,403 677,371,566
Net assets per share 9.80 1.00
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 17
STATEMENTS OF
OPERATIONS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R) NATIONWIDE(R) NATIONWIDE(R) NATIONWIDE(R)
GROWTH NATIONWIDE(R) BOND TAX-FREE U.S. GOV'T MONEY MARKET
FUND FUND FUND INCOME FUND INCOME FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $ 4,110,650 9,933,387 -- -- -- --
Interest 1,791,061 900,186 4,822,025 7,803,863 1,357,972 17,569,243
- -----------------------------------------------------------------------------------------------------------------------------------
Total income 5,901,711 10,833,573 4,822,025 7,803,863 1,357,972 17,569,243
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment management fees 1,551,274 2,150,267 336,065 852,319 127,741 1,568,629
Distribution fees -- -- -- 460,741 68,786 --
Transfer agent fees 319,306 333,375 80,930 81,183 19,963 321,220
Shareholders' reports 65,615 69,245 32,827 34,640 10,340 99,238
Registration fees -- -- -- 3,834 6,712 --
Professional services 14,618 20,244 3,350 13,026 2,096 15,142
Custodian fees 9,606 13,429 6,713 8,736 2,363 19,317
Trustees' fees and expenses 4,950 6,877 1,205 1,343 200 5,184
Other 10,849 15,333 3,072 5,540 1,084 10,939
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before waived expenses 1,976,218 2,608,770 464,162 1,461,362 239,285 2,039,669
Total waived expenses -- -- -- (197,391) (29,481) (156,870)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,976,218 2,608,770 464,162 1,263,971 209,804 1,882,799
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,925,493 8,224,803 4,357,863 6,539,892 1,148,168 15,686,444
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments 17,096,301 26,758,207 55,193 1,067,466 40,166 --
Net change in unrealized
appreciation (depreciation) 39,319,466 88,520,009 (5,526,936) (5,251,727) (1,250,201) --
Net realized and unrealized gain
(loss) on investments 56,415,767 115,278,216 (5,471,743) (4,184,261) (1,210,035) --
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: $60,341,260 123,503,019 (1,113,880) 2,355,631 (61,867) 15,686,444
===================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 18
STATEMENTS OF
CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NATIONWIDE(R)
GROWTH FUND NATIONWIDE(R)FUND
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 1996 October 31, April 30, 1996 October 31,
(Unaudited) 1995 (Unaudited) 1995
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $ 3,925,493 8,424,199 8,224,803 14,301,965
Net realized gain (loss) on investments 17,096,301 55,104,961 26,758,207 42,454,076
Net change in unrealized appreciation
or depreciation of investments 39,319,466 34,260,953 88,520,009 73,761,567
Net increase (decrease) in net assets resulting
from operations 60,341,260 97,790,113 123,503,019 130,517,608
Distributions to shareholders from:
Net investment income (4,011,391) (8,424,199) (8,150,835) (14,459,586)
In excess of net investment income -- (50,491) -- --
Net realized gain from investment transactions (55,130,738) (9,636,714) (42,514,603) (54,955,514)
Decrease in net assets from distributions
to shareholders (59,142,129) (18,111,404) (50,665,438) (69,415,100)
Capital share transactions:
Net proceeds from sale of shares 57,206,298 78,233,932 46,152,866 44,342,114
Net asset value of shares issued to shareholders
from reinvestment of dividends and distributions 58,350,341 17,836,103 44,358,450 60,306,894
Cost of shares redeemed (31,177,483) (57,537,318) (67,458,832) (76,759,052)
Increase (decrease) in net assets derived
from capital share transactions 84,379,156 38,532,717 23,052,484 27,889,956
NET INCREASE (DECREASE) IN NET ASSETS 85,578,287 118,211,426 95,890,065 88,992,464
NET ASSETS--BEGINNING OF PERIOD 582,926,855 464,715,429 795,666,343 706,673,879
NET ASSETS--END OF PERIOD $ 668,505,142 582,926,855 891,556,408 795,666,343
==========================================================================================================================
Undistributed net realized gain (loss) on invest-
ments included in net assets at end of period $ 17,070,524 55,104,961 26,697,680 42,454,076
==========================================================================================================================
Undistributed net investment income
included in net assets at end of period $ 29,079 114,977 837,777 763,809
==========================================================================================================================
Shares sold 4,429,273 6,444,023 2,512,505 2,806,172
Shares issued to shareholders from reinvest-
ment of dividends and distributions 4,725,552 1,578,080 2,507,460 4,081,126
Shares redeemed (2,403,029) (4,861,121) (3,646,563) (4,857,164)
Net increase (decrease) in number of shares 6,751,796 3,160,982 1,373,402 2,030,134
==========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R)
BOND FUND
Six Months Ended Year Ended
April 30, 1996 October 31,
(Unaudited) 1995
- -------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income 4,357,863 8,946,837
Net realized gain (loss) on investments 55,193 (2,695,214)
Net change in unrealized appreciation
or depreciation of investments (5,526,936) 17,358,003
Net increase (decrease) in net assets resulting
from operations (1,113,880) 23,609,626
Distributions to shareholders from:
Net investment income (4,412,950) (8,917,890)
In excess of net investment income -- --
Net realized gain from investment transactions -- --
Decrease in net assets from distributions
to shareholders (4,412,950) (8,917,890)
Capital share transactions:
Net proceeds from sale of shares 9,538,107 14,412,502
Net asset value of shares issued to shareholders
from reinvestment of dividends and distributions 3,653,855 7,950,830
Cost of shares redeemed (10,986,755) (27,877,661)
Increase (decrease) in net assets derived
from capital share transactions 2,205,209 (5,514,329)
NET INCREASE (DECREASE) IN NET ASSETS (3,321,621) 9,177,407
NET ASSETS--BEGINNING OF PERIOD 133,632,584 124,455,177
NET ASSETS--END OF PERIOD 130,310,963 133,632,584
=====================================================================================
Undistributed net realized gain (loss) on invest-
ments included in net assets at end of period (9,298,851) (9,354,044)
=====================================================================================
Undistributed net investment income
included in net assets at end of period 54,372 109,459
=====================================================================================
Shares sold 1,000,795 1,613,435
Shares issued to shareholders from reinvest-
ment of dividends and distributions 384,550 892,591
Shares redeemed (1,155,444) (3,144,695)
Net increase (decrease) in number of shares 229,901 (638,669)
=====================================================================================
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 19
STATEMENTS OF
CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R)
TAX-FREE INCOME FUND U.S. GOV'T INCOME FUND
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 1996 October 31, April 30, 1996 October 31,
(Unaudited) 1995 (Unaudited) 1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $ 6,539,892 13,060,318 1,148,168 2,266,549
Net realized gain (loss) on investments 1,067,466 (3,951,178) 40,166 70,730
Net change in unrealized appreciation
or depreciation of investments (5,251,727) 24,981,359 (1,250,201) 3,505,345
Net increase (decrease) in net assets resulting
from operations 2,355,631 34,090,499 (61,867) 5,842,624
Distributions to shareholders from:
Net investment income (6,543,321) (13,407,484) (1,148,168) (2,266,549)
In excess of net investment income -- -- (34,818) --
Net realized gain from investment transactions -- -- -- --
Paid in capital -- -- -- (14,726)
Decrease in net assets from distributions
to shareholders (6,543,321) (13,407,484) (1,182,986) (2,281,275)
Capital share transactions:
Net proceeds from sale of shares 11,245,471 18,662,663 1,733,892 3,165,132
Net asset value of shares issued to shareholders
from reinvestment of dividends and distributions 4,654,184 10,382,144 885,201 1,830,091
Cost of shares redeemed (12,987,061) (28,340,872) (2,725,348) (6,528,260)
Increase (decrease) in net assets derived
from capital share transactions 2,912,594 703,935 (106,255) (1,533,037)
NET INCREASE (DECREASE) IN NET ASSETS (1,275,096) 21,386,950 (1,351,108) 2,028,312
NET ASSETS--BEGINNING OF PERIOD 262,483,603 241,096,653 39,776,970 37,748,658
NET ASSETS--END OF PERIOD $ 261,208,507 262,483,603 38,425,862 39,776,970
=============================================================================================================================
Undistributed net realized gain (loss) on investments
included in net assets at end of period $ (4,239,615) (5,307,081) (395,914) (436,080)
=============================================================================================================================
Undistributed (distributions in excess of) net investment
income included in net assets at end of period $ 1,806 5,235 (34,818) --
=============================================================================================================================
Shares sold 1,093,797 1,898,854 171,904 326,609
Shares issued to shareholders from reinvest-
ment of dividends and distributions 452,488 1,056,582 87,721 189,664
Shares redeemed (1,264,854) (2,901,957) (269,298) (681,184)
Net increase (decrease) in number of shares 281,431 53,479 (9,673) (164,911)
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R)
MONEY MARKET FUND
Six Months Ended Year Ended
April 30, 1996 October 31,
(Unaudited) 1995
- --------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income 15,686,444 29,238,839
Net realized gain (loss) on investments -- 4,106
Net change in unrealized appreciation
or depreciation of investments -- --
Net increase (decrease) in net assets resulting
from operations 15,686,444 29,242,945
Distributions to shareholders from:
Net investment income (15,682,012) (29,239,264)
In excess of net investment income -- (6,587)
Net realized gain from investment transactions (4,106) --
Paid in capital -- --
Decrease in net assets from distributions
to shareholders (15,686,118) (29,245,851)
Capital share transactions:
Net proceeds from sale of shares 361,802,873 626,666,560
Net asset value of shares issued to shareholders
from reinvestment of dividends and distributions 15,027,223 29,971,841
Cost of shares redeemed (304,171,899) (543,661,512)
Increase (decrease) in net assets derived
from capital share transactions 72,658,197 112,976,889
NET INCREASE (DECREASE) IN NET ASSETS 72,658,523 112,973,983
NET ASSETS--BEGINNING OF PERIOD 604,710,888 491,736,905
NET ASSETS--END OF PERIOD 677,369,411 604,710,888
============================================================================================
Undistributed net realized gain (loss) on investments
included in net assets at end of period -- 4,106
============================================================================================
Undistributed (distributions in excess of) net investment
income included in net assets at end of period (2,155) (6,587)
============================================================================================
Shares sold 361,802,873 626,666,560
Shares issued to shareholders from reinvest-
ment of dividends and distributions 15,027,223 29,971,841
Shares redeemed (304,171,899) (543,661,512)
Net increase (decrease) in number of shares 72,658,197 112,976,889
============================================================================================
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 20
FINANCIAL
HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Ended NATIONWIDE(R) GROWTH FUND
April 30, 1996 Years Ended October 31
(Unaudited) 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $ 13.22 11.35 11.14 9.94 9.57 7.34
Net investment income .09 .21 .09 .17 .20 .22
Net realized gain (loss) and
unrealized appreciation (depreciation) 1.16 2.10 .53 1.41 .46 2.77
Total from investment operations 1.25 2.31 .62 1.58 .66 2.99
Dividends from net investment income (.09) (.20) (.19) (.17) (.20) (.25)
Distributions from net realized gain
from investment transactions (1.24) (.24) (.22) (.21) (.09) (.51)
Total distributions (1.33) (.44) (.41) (.38) (.29) (.76)
Net increase (decrease) in net asset value (.08) 1.87 .21 1.20 .37 2.23
NET ASSET VALUE--
END OF PERIOD $ 13.14 13.22 11.35 11.14 9.94 9.57
Total Return 10.1% 21.0% 5.7% 16.2% 6.9% 43.4%
Ratio of expenses to average net assets* .64% .66% .68% .68% .65% .68%
Ratio of net investment income
to average net assets* 1.26% 1.66% 1.71% 1.63% 1.97% 2.54%
Portfolio turnover 12.3% 27.1% 14.5% 10.2% 13.1% 12.4%
Average commission rate paid 5.2375(cent) -- -- -- -- --
Net Assets, End of Period (000) $668,505 582,927 464,715 411,853 330,950 277,019
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended NATIONWIDE(R) FUND
April 30, 1996 Years Ended October 31
(Unaudited) 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $ 17.35 16.12 16.55 16.31 15.77 12.32
Net investment income .18 .31 .37 .31 .37 .38
Net realized gain (loss) and
unrealized appreciation (depreciation) 2.45 2.49 .41 .67 .98 3.97
Total from investment operations 2.63 2.80 .78 .98 1.35 4.35
Dividends from net investment income (.18) (.31) (.36) (.33) (.36) (.40)
Distributions from net realized gain
from investment transactions (.93) (1.26) (.85) (.41) (.45) (.50)
Total distributions (1.11) (1.57) (1.21) (.74) (.81) (.90)
Net increase (decrease) in net asset value 1.52 1.23 (.43) .24 .54 3.45
NET ASSET VALUE--
END OF PERIOD 18.87 17.35 16.12 16.55 16.31 15.77
Total Return 15.6% 19.2% 4.9% 6.2% 8.7% 36.5%
Ratio of expenses to average net assets* .61% .63% .63% .62% .61% .61%
Ratio of net investment income
to average net assets* 1.91% 1.95% 2.26% 1.96% 2.32% 2.56%
Portfolio turnover 5.8% 16.5% 15.4% 25.8% 12.8% 13.6%
Average commission rate paid 6.0569(cent) -- -- -- -- --
Net Assets, End of Period (000) $891,556 795,666 706,674 753,239 726,012 620,113
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended NATIONWIDE(R) BOND FUND
April 30, 1996 Years ended October 31
(Unaudited) 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $ 9.50 8.46 10.07 9.58 9.46 8.99
Net investment income .31 .63 .27 .74 .76 .85
Net realized gain (loss) and
unrealized appreciation (depreciation) (.39) 1.04 (1.56) .52 .23 .45
Total from investment operations (.08) 1.67 (.96) 1.26 .99 1.30
Dividends from net investment income (.31) (.63) (.65) (.77) (.85) (.83)
Distribution from paid in capital -- -- -- -- (.02) --
Total distributions (.31) (.63) (.65) (.77) (.87) (.83)
Net increase (decrease) in net asset value (.39) 1.04 (1.61) .49 .12 .47
NET ASSET VALUE--
END OF PERIOD $ 9.11 9.50 8.46 10.07 9.58 9.46
Total Return (.9)% 20.4% (9.8%) 13.6% 10.9% 15.1%
Ratio of expenses to average net assets* .69% .71% .71% .68% .65% .67%
Ratio of net investment income
to average net assets* 6.48% 7.04% 7.11% 7.63% 8.63% 9.13%
Portfolio turnover 17.5% 70.4% 58.0% 68.5% 100.8% 93.6%
Net Assets, End of Period(000) $130,311 133,633 124,455 151,090 90,187 54,187
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
* Ratios are annualized for periods of less than one year.
20
<PAGE> 21
FINANCIAL
HIGHLIGHTS
<TABLE>
<CAPTION>
NATIONWIDE(R) TAX-FREE INCOME FUND
Six Months Ended
April 30, 1996 Years Ended October 31
(Unaudited) 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $ 10.22 9.40 10.95 9.94 9.81 9.31
Net investment income .25 .51 .53 .54 .56 .58
Net realized gain (loss) and
unrealized appreciation (depreciation) (.16) .84 (1.45) 1.10 .13 .50
Total from investment operations .09 1.35 (.92) 1.64 .69 1.08
Dividends from net investment income (.25) (.53) (.51) (.54) (.56) (.58)
Distributions from net realized gain
from investment transactions -- -- (.12) (.09) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (.25) (.53) (.63) (.63) (.56) (.58)
Net increase (decrease) in net asset value (.16) .82 (1.55) 1.01 .13 .50
NET ASSET VALUE--
END OF PERIOD $ 10.06 10.22 9.40 10.95 9.94 9.81
Total Return .9% 14.7% (8.7%) 17.0% 7.2% 11.9%
Ratio of expenses to average net assets* .96% .98% .99% .98% .98% 1.01%
Ratio of expenses to average net assets ** 1.11% 1.13% 1.14% 1.13% 1.13% 1.16%
Ratio of net investment income
to average net assets* 4.97% 5.20% 5.02% 5.07% 5.62% 6.05%
Ratio of net investment income
to average net assets ** 4.82% 5.05% 4.87% 4.92% 5.47% 5.90%
Portfolio turnover 10.3% 31.7% 59.2% 28.4% 69.8% 45.5%
Net Assets, End of Period(000) $261,209 262,484 241,097 253,042 170,650 122,005
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R) U.S. GOV'T INCOME FUND
Six Months Ended Period From 2/10/92
April 30, 1996 Years Ended October 31 (Commencement Of
(Unaudited) 1995 1994 1993 Operations) Thru 10/31/92
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $10.12 9.22 10.26 9.97 10.00
Net investment income .29 .59 .54 .53 .46
Net realized gain (loss) and
unrealized appreciation (depreciation) (.31) .89 (.96) .45 (.03)
Total from investment operations (.02) 1.48 (.42) .98 .43
Dividends from net investment income (.30) (.58) (.55) (.53) (.46)
Distributions from net realized gain
from investment transactions -- -- -- (.07) (.16)
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (.30) (.58) (.62) (.69) (.46)
Net increase (decrease) in net asset value (.32) .90 (1.04) .29 (.03)
NET ASSET VALUE--
END OF PERIOD 9.80 10.12 9.22 10.26 9.97
Total Return (.2%) 16.5% (4.2%) 10.2% 5.1%
Ratio of expenses to average net assets* 1.07% 1.08% 1.09% 1.10% 1.00%
Ratio of expenses to average net assets ** 1.22% 1.23% 1.24% 1.25% 1.17%
Ratio of net investment income
to average net assets* 5.84% 5.92% 5.62% 5.12% 6.38%
Ratio of net investment income
to average net assets ** 5.69% 5.77% 5.47% 4.97% 6.21%
Portfolio turnover 5.6% 25.4% 67.5% 99.0% 157.4%
Net Assets, End of Period(000) $38,426 39,777 7,749 38,452 18,211
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended NATIONWIDE(R) MONEY MARKET FUND
April 30, 1996 Years ended October 31
(Unaudited) 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $ 1.00 1.00 1.00 1.00 1.00 1.00
Net investment income .02 .05 .03 .03 .03 .06
Dividends from net investment income (.02) (.05) (.03) (.03) (.03) (.06)
Net increase (decrease) in net asset value -- -- -- -- -- --
NET ASSET VALUE--
END OF PERIOD $ 1.00 1.00 1.00 1.00 1.00 1.00
Total Return 2.5% 5.5% 3.3% 2.6% 3.5% 6.1%
Ratio of expenses to average net assets* .60% .62% .65% .70% .71% .71%
Ratio of expenses to average net assets** .65% .67% .70% .73% .71% .71%
Ratio of net investment income
to average net assets* 5.00% 5.34% 3.33% 2.57% 3.50% 5.97%
Ratio of net investment income
to average net assets** 4.95% 5.29% 3.28% 2.54% 3.50% 5.97%
Net Assets, End of Period (000) $677,369 604,711 491,737 418,615 488,998 594,987
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
* Ratios are annualized for periods of less than one year.
** Ratios calculated as if no expenses were waived.
Total return is not annualized.
21
<PAGE> 22
April 30, 1996 (Unaudited)
NOTES TO
FINANCIAL
STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1 Nationwide Investing Foundation (NIF) and Nationwide Investing Foundation II
(NIF-II) are diversified, open-end investment companies. NIF was created under
the laws of Michigan by an Indenture of Trust, dated May 5, 1933. NIF-II was
created under the laws of Massachusetts as a Massachusetts Business Trust on
October 5, 1985. The Trusts, which are registered under the Investment Company
Act of 1940, as amended, offer shares in six separate mutual funds.
SECURITY VALUATION
(a) Growth, Fund, Bond, Tax-Free Income, and U.S. Government Income Funds
Securities traded on a national securities exchange are valued at closing
prices. Listed securities for which no sale was reported on the valuation date
are valued at quoted bid prices or fair market, procedures authorized by the
Boards of Trustees. Short-term securities are valued at amortized cost, which
approximates market.
(b) Money Market Fund
Securities are valued at amortized cost, which approximates market value, in
accordance with Rule 2a-7 of the Investment Company Act of 1940 as amended.
FEDERAL INCOME TAXES
NIF and NIF-II qualify as regulated investment companies under the Internal
Revenue Code during the periods covered by the accompanying statements. No
provision has been made for federal income taxes as it is the intention to
continue such qualification and to distribute all taxable income to
shareholders. To the extent net realized gains are offset through the
application of a capital loss carryover, they will not be distributed to
shareholders but will be retained by the Trusts. Each series of the Trusts is
treated as a separate entity.
As of October 31, 1995, the Nationwide Bond and Tax-Free Income Funds had net
capital loss carry forwards in the amounts of $9,354,043 and $5,307,081,
respectively. The Bond Fund carry forward will expire within 2 to 8 years and
the Tax-Free Fund carry forward will expire within 7 to 8 years.
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.
DIVIDENDS TO SHAREHOLDERS
(a) Growth and Nationwide Funds
Dividends are recorded on the ex-dividend date.
(b) Bond, Tax-Free Income, U.S. Government Income, and Money Market Funds
Dividends are declared daily and paid monthly from the sum of net investment
income.
Distributable net realized capital gains are declared and distributed at least
annually for all funds.
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 Statement of Position
93-2, permanent differences are reclassified within the capital accounts based
on their nature for federal income tax purposes; temporary differences do not
require reclassification. Dividends and distributions that exceed net investment
income and net realized gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income and net
realized gains. To the extent distributions exceed current and accumulated
earnings and profits for federal income tax purposes, they are reported as
distributions of paid-in capital. Accordingly, undistributed net investment
income and paid-in capital as of October 31, 1995, have been adjusted by the
following amounts:
<TABLE>
<CAPTION>
Undistributed Net Paid-in.
Investment Income Capital
<S> <C> <C>
Growth....... $391,516 (391,516)
NW Fund..... 58,523 (58,523)
Bond......... 35,184 (35,184)
</TABLE>
These reclassifications have no effect upon the net asset value of the
respective funds.
EXPENSES
Direct expenses of a fund are allocated to that fund. General expenses of the
Trusts are allocated to the funds based upon each fund's relative average net
assets.
TRANSACTION WITH AFFILIATES
2 (a)Growth, Fund, Bond, and Money Market Funds
As investment manager for the NIF Funds, Nationwide Financial Services, Inc.
(NFS), an affiliated company, earns an annual fee of .5% based on the average
daily net assets; this fee would not be payable in full if the effect of such
payment would increase total expense (excluding taxes other than payroll taxes
and brokerage commissions on portfolio transactions) to an amount exceeding 1%
of average daily net assets for any fiscal year. Such limitations on total
expenses did not affect management fees during the periods covered by the
financial statements.
The investment manager waived annual fees totaling .05% of average daily net
assets in the Money Market Fund from November 1, 1995 through April 30, 1996, or
$156,870 representing $.0002 per average share outstanding.
NFS also receives fees for services as principal underwriter. Such fees are
deducted from and are not included in proceeds from sales of capital shares.
From such fees, NFS pays sales commissions, salaries, and other expenses. Such
fees aggregated $614,002 on Growth Fund shares, $503,104 on Fund shares, and
$112,586 on Bond Fund shares for the six months ended April 30, 1996.
(b) Tax-Free Income, and U.S. Government Income Funds
As investment manager for each NIF-II Fund, NFS earns an annual fee based on
average daily net assets of each Fund at the rate of .65% on the first $250
million, .60% on the next $250 million, .55% on the next $250 million, and .50%
on the average daily net assets in excess of $750 million. Total annual expenses
will not exceed the limits prescribed by any state in which the Fund shares are
offered for sale. Such limitation did not affect the management fees for the six
months ended April 30, 1996.
NFS may also receive fees on the NIF-II Funds for distribution pursuant to a
Rule 12b-1 Distribution Plan approved by the Board of Trustees. These fees,
which were waived prior to March 1, 1990, are based on average daily net assets
of each Fund at an annual rate of .35%. During the six months ended April 30,
1996, each Fund paid distribution fees at the annual rate of .20% of average
daily net assets, with the distributor waiving the remaining .15%. During the
six months ended April 30, 1996, NFS waived $197,391 and $29,481 for both the
Tax-Free Income and U.S. Government Income Funds, representing $.008 and $.008
per average share outstanding, respectively.
NFS also receives fees for services as principal underwriter. Such fees are
contingent deferred sales charges for the NIF-II Funds ranging from 5% to 1%
imposed on redemptions which cause the current value of an account to fall below
the total purchase payments made during the past five years. Contingent deferred
sales charges aggregated $94,096 on the Tax-Free Income Fund shares and $36,614
on the U.S. Government Income Fund shares for the six months ended April 30,
1996.
TRANSFER & DIVIDEND DISBURSING AGENT
A subsidiary of NFS (Nationwide Investors Services, Inc.) acts as Transfer and
Dividend Disbursing Agent for the Funds.
BANK LOANS
3 Both NIF and NIF II Trusts have unsecured bank lines of credit of
$25,000,000 each.
Borrowings under these arrangements bear interest at the Federal Funds rate plus
.50%. No compensating balances are required. The Tax-Free Income and Money
Market Funds had outstanding balances on these lines at April 30, 1996 of
$3,091,961 and $510,007, respectively.
INVESTMENT TRANSACTIONS
4 Purchases and sales of securities (excluding U.S. Government and short-term
securities), and purchases and sales of U.S. Government Obligations for the six
months ended April 30, 1996 are summarized as follows:
<TABLE>
<CAPTION>
Purchases Sales
<S> <C> <C>
Growth................ $142,262,984 69,020,742
NW Fund............... 48,525,406 80,895,797
Bond.................. 24,486,761 21,707,454
Tax-Free Income....... 34,219,741 27,052,456
U.S. Gov't Income..... 2,258,942 142,302
Money Market -- --
</TABLE>
U.S. Government Obligations
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Growth................. $ 67,798,925 67,319,560
NW Fund................ -- --
Bond................... 244,375 242,813
Tax-Free Income........ -- --
U.S. Gov't Income...... 1,045,000 1,999,063
Money Market........... 26,303,588 29,662,000
</TABLE>
Realized gains and losses have been computed on the first-in, first-out basis.
Included in net unrealized appreciation (depreciation) at April 30, 1996 are the
following components:
<TABLE>
<CAPTION>
Net unrealized
Unrealized Unrealized appreciation
gains losses (depreciation)
<S> <C> <C> <C>
Growth................ $187,008,830 (9,002,039) 178,006,791
NW Fund............... 345,811,411 (11,115,344) 334,696,067
Bond.................. 2,016,734 (2,826,598) (809,864)
Tax-Free Income....... 9,141,154 (2,234,773) 6,906,381
U.S. Gov't Income..... 363,986 (816,658) (452,672)
</TABLE>
22
<PAGE> 23
Key to Shareholder Photographs featured on front cover:
<TABLE>
<S> <C>
(top to bottom)
Cloyce Copley (l.) [Montage of shareholder pictures]
Jason Dunn (r.)
Shera Hube (center)
Roger and Nancy Stuckey (l.)
Thomas Gill (r.)
Keisha Fedrick (l.)
Clare Huff (r.)
Giovanna Masotti (background)
[SHAREHOLDER PICTURE] [SHAREHOLDER PICTURE]
Crystal Huff (l.) is custodian for daughter Picnicking with a friend is Growth Fund
Clare, Nationwide(R) Fund shareholder, shareholder, Giovanna Masotti, on the right.
perched on father David Huff's lap.
</TABLE>
23
<PAGE> 24
NATIONWIDE(R) FAMILY OF FUNDS
TRUSTEES
D. RICHARD MCFERSON - Nationwide Investing
Foundation (NIF) & Nationwide Investing
Foundation II (NIF II)
Chairman
Columbus, Ohio
DR. JOHN C. BRYANT - NIF & NIF II
Wilmington, Ohio
DR. C. BRENT DEVORE - NIF
Westerville, Ohio
SUE A. DOODY - NIF
Columbus, Ohio
ROBERT M. DUNCAN - NIF & NIF II
Columbus, Ohio
CHARLES L. FUELLGRAF, JR. - NIF
Butler, Pennsylvania
DR. THOMAS J. KERR, IV - NIF & NIF II
Evanston, Illinois
DOUGLAS F. KRIDLER - NIF
Columbus, Ohio
NANCY C. THOMAS - NIF
Louisville, Ohio
HAROLD W. WEIHL - NIF
Bowling Green, Ohio
DAVID C. WETMORE - NIF
Herndon, Virginia
OFFICERS
JAMES F. LAIRD, JR.
Treasurer
RAE I. MERCER
Secretary
CRAIG A. CARVER
Assistant Treasurer
WILLIAM G. GOSLEE
Assistant Treasurer
PETER NECKERMANN
Assistant Treasurer
HARRY A. SCHERMER
Assistant Treasurer
TRANSFER AGENT
NATIONWIDE INVESTORS SERVICES, INC.
BOX 1492
COLUMBUS OHIO 43216-1492
CUSTODIAN
THE FIFTH THIRD BANK
38 FOUNTAIN SQUARE PLAZA
CINCINNATI OHIO 45263-0001
LEGAL COUNSEL
DRUEN, RATH & DIETRICH
ONE NATIONWIDE PLAZA
COLUMBUS OHIO 43215-2220
AUDITORS
KPMG PEAT MARWICK LLP
TWO NATIONWIDE PLAZA
COLUMBUS OHIO 43215-2537
DISTRIBUTOR
NATIONWIDE FINANCIAL SERVICES, INC.
ONE NATIONWIDE PLAZA
COLUMBUS OHIO 43215-2220
TOLL-FREE TELEPHONE ASSISTANCE
GENERAL ACCOUNT SERVICE AND EXCHANGES:
1-800-848-0920.
24-HOUR PRERECORDED INFORMATION:
1-800-848-0520.
NATIONWIDE FAMILY OF FUNDS BULK RATE
ONE NATIONWIDE PLAZA U.S. POSTAGE
COLUMBUS OHIO 43215-2220 PAID
COLUMBUS, OHIO
April 1996 PERMIT NO. 492
SEMI-ANNUAL REPORT
HS-402-J(96)
