<PAGE> 1
Nationwide Family of Funds
Nationwide Growth Fund
Nationwide Fund
Nationwide Bond Fund
Nationwide Tax-Free Income Fund
Nationwide U.S. Government Income Fund
Nationwide Money Market Fund
Annual Report
October 31, 1995
[Front cover features 7 color pictures of
shareholders, identified on the back cover.]
<PAGE> 2
[This "Message to Shareholders" on p. 2 features a picture of Peter F. Frenzer
and a pull quote: "Investors saw a sharp increase in the value of their
portfolios."]
The surge in the stock and bond markets continued during the six months since
our semi-annual report. Investors saw a sharp increase in the value of their
portfolios. The Dow Jones Industrial Average (DJIA) broke through the 4700 mark
in July. For the third quarter, the Dow closed at 4789, up 25% over the last 12
months. In November, the Dow closed over 5000 for the first time in history.
One of the reasons for the strong performance of the stock market has been the
excellent economic development in our country. Prodded by the Fed's monetary
policy, the U.S. economy had its "soft landing" in the first half of this year.
The pent-up demand has been satisfied; idle resources have been re-employed, and
most Americans have bought what they were waiting for during the dark days of
the 1991/92 recession. The U.S. economy reached a very satisfactory higher
plateau in this process and will settle down to a normal state of affairs.
For the rest of 1995 and for 1996, the U.S. will enjoy the second part of a
long-lasting expansion whose characteristics will be moderate growth and low
inflation. Interest rates--short-term ones in particular--have farther room to
fall. This and the overall positive business climate will be a strong impetus
for ongoing good performance of financial assets. However, nobody should expect
that the results of the first eleven months of 1995 will be repeated.
Mutual fund assets approached $2.7 trillion in September, up 23% in one year.
Nationwide Investing Foundation funds stood on October 31, 1995, at $2.4
billion, an all-time high, up 17% for this year. In large part, continued growth
is attributed to the rapid rise in the markets.
Detailed highlights of each fund are included on pages 3-5 of this report. For
the 12-months ended October 31, 1995, Growth Fund rose 21.0%, assuming all
dividends were reinvested. The total return of the S&P 500 for the same period
was 26.4%. Nationwide Fund was up 19.2% for the period, trailing stock market
indices largely because of the underweighting of technology stocks in its
portfolio. Technology stocks increased markedly in value during the period.
During 1995, bond fund share prices bounced back strongly. Bond Fund had a total
return of 20.4% for the 12-months ended October 31, 1995, assuming all dividends
were reinvested. The U.S. Government Income Fund had a total return of 16.5% for
the period. The Tax-Free Income Fund showed strong results, with a total return
of 14.7% for the same period.
The Money Market Fund continued to attract investor enthusiasm. Money Market
Fund's 30-day effective yield as of October 31, 1995 of 5.3% was nearly double
the average rate paid on FDIC-insured bank Money Market Deposit Accounts
according to Bank Rate Monitor.
On pages 6 and 7 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.
High quality shareholder service is a top priority of The Nationwide Family of
Funds. When you call us, you benefit from our state-of-the-art imaging and
automated work station technology. While shareholder representatives are
speaking with you, they are able to satisfy your request for service or
information instantly. You receive a quick answer, immediate processing of your
transaction, and requested information or confirmation by the next mail. You're
welcome to call us at 1-800-848-0920 to speak to our friendly and knowledgeable
shareholder representatives.
Once again, thank you for giving Nationwide the opportunity to meet your
investment needs.
Peter F. Frenzer, Chairman
December 1995
CONTENTS
Fund Highlights ................................................. 3-5
Management Discussion of Fund Performance ....................... 6-7
Statements of Investments ....................................... 8-15
Growth Fund ................................................... 8
Nationwide Fund ............................................... 9
Bond Fund ..................................................... 10
Tax-Free Income Fund .......................................... 11-12
U.S. Government Income Fund ................................... 13
Money Market Fund ............................................. 14-15
Financial Statements ............................................ 16-19
Financial Highlights ............................................ 20-21
Notes to Financial Statements ................................... 22
Independent Auditors' Report .................................... 23
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
NATIONWIDE GROWTH FUND
$10,000 LUMP SUM INVESTMENT
[Chart described by text below.]
The value of a long-term investment in Growth Fund is illustrated in the chart
above. Over a 10-year period through October 31, 1995, an investment of $10,000
would have earned an average annual compound total return of 13.6%, not
including sales charge. The chart above illustrates the growth of this
investment to $35,788.
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
<TABLE>
<CAPTION>
*1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
YEARS INVESTMENT INVESTMENT INVESTMENT
----- ---------- ---------- ----------
<S> <C> <C> <C>
1 21.0% 25.3% 19.7%
-- ---- ---- ----
5 17.9% 14.3% 16.4%
-- ---- ---- ----
10 13.6% 12.3% 13.8%
-- ---- ---- ----
15 15.3% 14.4% 15.0%
-- ---- ---- ----
Period ended: 10/31 10/31 9/30
</TABLE>
Growth of capital--rather than current income--is the leading investment
objective of Nationwide(R) Growth Fund. The Fund is designed to be a good core
holding in the growth component of an investor's portfolio. Nationwide Growth
Fund emphasizes common stocks whose prices are low relative to the company's
projected earnings and strong fundamentals.
Growth Fund's twelve-month performance was 21.0% for the year ended October
31, 1995. A review of the portfolio on page 8 shows the extent to which Growth
Fund participated in the technology stock market rally including such holdings
as Intel (5.4% of the portfolio) and Hewlett-Packard (3.2%).
To mimimize risk in Growth Fund, investments are made in many companies and
industry sectors. The largest single sector in the portfolio was electronic
stocks (8.6%) followed closely by telecommunications (8.5%), and financial
services (8.2%). A review of the portfolio on page 8 shows broad diversification
with stocks in 76 companies in 27 industry sectors.
Over many market cycles, Growth Fund's veteran portfolio manager, John
Schaffner, has emphasized smaller to medium sized companies with a potential for
greater than average growth and competitive advantages to produce superior
earnings and increased prices over a holding period ranging from 2 to 10 years.
* For Periods Ended 10/31/95. These returns do not reflect the effects of sales
charges.
** For Periods Ended 9/30/95. Assumes a 4.5% sales charge was paid on purchases
of the Growth Fund which has the most dramatic effect on the 1-year
performance figures.
NATIONWIDE FUND
$100 MONTHLY INVESTMENT
[Chart described by text below.]
An individual investing $100 per month in Nationwide Fund over the past 10 years
(ended October 31, 1995) would have earned an average annual compound total
return of 11.9%, with no sales charges deducted. The chart above illustrates the
growth of this monthly investment to more than $22,324.
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
<TABLE>
<CAPTION>
*1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
YEARS INVESTMENT INVESTMENT INVESTMENT
----- ---------- ---------- ----------
<S> <C> <C> <C>
1 19.2% 24.9% 14.2%
-- ---- ---- ----
5 14.5% 11.4% 13.0%
-- ---- ---- ----
10 13.9% 11.9% 13.9%
-- ---- ---- ----
15 14.2% 13.8% 13.9%
-- ---- ---- ----
Period ended: 10/31 10/31 9/30
</TABLE>
As Nationwide's flagship fund, Nationwide(R) Fund emphasizes blue-chip,
industry-leading stocks generally held for the long term. The Fund emphasizes a
"buy-and-hold" strategy maintaining a relatively low turnover ratio which
translates into less expense for the shareholder. Over 62 years old, Nationwide
Fund is one of the oldest mutual funds in the country.
Nationwide Fund's performance of 19.2% for the 12 months ended October 31,
1995, trailed the average returns of the market because the Fund did not fully
participate in this year's rally in technology stocks. Because of the fierce
competition in this volatile industry sector, and its rapid product
obsolescence, the portfolio manager of the Fund generally avoided these stocks.
Mutual Funds magazine (September 1995) recently spotlighted the Fund as one
of only three funds in the country with a 17-year "winning streak" with no
losing years during that period. The "Winning Streak" article featured portfolio
manager, Charles Bath, and his philosophy of not straying from an emphasis on
big, solid companies that can forge ahead at a steady rate and ride out market
downturns.
Nationwide Fund is managed with an eye to consolidating investor gains during
rising markets and preserving shareholder value in falling markets. Thus, the
Fund is an example of a solid core holding in the growth and income portion of
an investor's portfolio--aiming for steady dividends plus capital appreciation.
* For Periods Ended 10/31/95. These returns do not reflect the effects of sales
charges.
** For Periods Ended 9/30/95. Assumes a 4.5% sales charge was paid on purchases
of the Nationwide Fund which has the most dramatic effect on the 1-year
performance figures.
Average annual (compound) total return represents the average annual percentage
change in the value of an investment for the specified periods assuming a
redemption of the investment at the end of such periods. It reflects the changes
in share price and assumes reinvestment of all dividends and distributions at
net asset value. 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.
3
<PAGE> 4
NATIONWIDE BOND FUND
$10,000 LUMP SUM INVESTMENT
[Chart described by text below.]
The graph above shows the appreciation achieved in Bond Fund through a $10,000
investment over a 10-year period of time ended October 31, 1995. Shareholders
would have seen their account grow to more than $23,659 for an average annual
compound total return of 9.0%, not including sales charges.
Average Annual (Compound) Total Return
<TABLE>
<CAPTION>
*1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
YEARS INVESTMENT INVESTMENT INVESTMENT
----- ---------- ---------- ----------
<S> <C> <C> <C>
1 20.4% 21.3% 11.8%
-- ---- ---- ----
5 9.5% 8.5% 8.6%
-- ---- ---- ----
10 9.0% 8.8% 8.5%
-- ---- ---- ----
15 10.5% 9.8% 10.0%
-- ---- ---- ----
Period ended: 10/31 10/31 9/30
</TABLE>
Nationwide(R) Bond Fund seeks income consistent with capital preservation.
Credit quality is a priority of the Fund. High-quality corporate bonds are
selected for its portfolio which consists primarily of securities rated "A" or
above by Moody's Investor Services and Standard & Poor's Corporation. Included
in the portfolio are corporate bonds of such large, well-known companies as
General Electric (comprising 3.7% of the portfolio), Armstrong (3.6%), and
Wal-Mart (3.2%).
As its primary objective, Nationwide Bond Fund has provided attractive income
for its shareholders, paying a dividend in every period since its inception.
Total dividends paid per share each year for the 10-year period ended October
31, 1995, ranged from a high of $.99 to a low of $.63.
Bond Fund participated in this year's strong bond rally. Excluding sales
charges, investors saw Bond Fund's year-to-date total returns climb to 5.5% for
the first quarter ended March 31, 1995, to 14.6% by the second quarter ended
June 30, 1995, to 16.9% by the third quarter ended September 30, 1995. Bond
Fund's one-year performance was 20.4% for the period ended October 31, 1995.
Bond Fund made the The Wall Street Journal's (10/13/95) "Top 15 Performers"
mutual fund scoreboard for A-rated corporate bond funds ranking #8 out of 110
funds ranked by Lipper Analytical Services Inc. for total return in the 12-month
period ended September 30, 1995. (For the 5 and 10 year periods ended September
30, 1995, the Bond Fund ranked 22 out of 48 and 19 out of 24, respectively.)
* For Periods Ended 10/31/95. These returns do not reflect the effects of sales
charges.
** For Periods Ended 9/30/95. Assumes a 4.5% sales charge was paid on purchases
of the Bond Fund which has the most dramatic effect on the 1-year performance
figures.
NATIONWIDE TAX-FREE INCOME FUND
$10,000 LuUMP SUM INVESTMENT
[Chart described by text below.]
The graph above shows how a hypothetical $10,000 investment grew through
reinvestment of dividends. Shareholders for a period of nearly 10 years ended
October 31, 1995, saw their account grow to $18,404 for an average annual
compound total return of 6.5% without including sales charge.
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
<TABLE>
<CAPTION>
*1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
YEARS INVESTMENT INVESTMENT INVESTMENT
----- ---------- ---------- ----------
<S> <C> <C> <C>
1 14.7% 14.0% 5.4%
---- ----- ----- ----
5 8.0% 6.8% 7.8%
---- ----- ----- ----
Life 6.5% 7.3% 6.4%
---- ----- ----- ----
Period ended: 10/31 10/31 9/30
---- ----- ----- ----
</TABLE>
(9 years, 8 months since inception)
Since Nationwide(R) Tax-Free Income Fund primarily seeks to provide investors
with tax-free income, yield is important. Since its inception, the Fund has
consistently paid monthly tax-free dividends. Total dividends paid per share
each year for the life of the fund for the period ended October 31, 1995,
ranged from a high of $.63 to a low of $.51. The Fund's one-year performance
was 14.7% for the period ended October 31, 1995.
Since income from the Fund is free from federal tax,+ shareholders seeking to
compare the Fund's yield to a comparable taxable investment--such as Nationwide
Bond Fund--should convert the yield to a tax-equivalent yield. The 30-day
annualized yield on October 31, 1995, was 4.87%. For investors in the 28%, 31%,
and 36% tax brackets, the Fund's tax equivalent yield was 6.8%, 7.1%, and 7.6%
respectively.
The portfolio manager attempts to position the Fund's assets in a portfolio
with a good balance of coupon, credit quality, and maturity with a eye on the
long term. Credit quality is a priority. The Fund's manager maintains a
portfolio of bonds rated with the three safest investment grades assigned by
Moody's Investor Services and Standard & Poor's Corporation.
To provide additional safety, the portfolio is diversified across many states
and projects emphasizing general obligation bonds for essential services. The
portfolio (see p.11-12) consisted of securities from 26 states. The top five
states represented in the portfolio are: Texas (21.6% of portfolio), Virginia
(12.0%), Illinois (8.1%), Washington (5.9%), and Georgia (5.1%).
+ Certain shareholders may be subject to local, state, and federal alternative
minimum taxes.
* For Periods Ended 10/31/95. These returns do not reflect the effects of sales
charges.
** For Periods Ended 9/30/95. Assumes the applicable contingent deferred sales
charge (CDSC) was paid 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.
Average annual (compound) total return represents the average annual percentage
change in the value of an investment for the specified periods assuming a
redemption of the investment at the end of such periods. It reflects the changes
in share price and assumes reinvestment of all dividends and distributions at
net asset value. 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.
4
<PAGE> 5
NATIONWIDE U.S. GOV'T INCOME FUND
$10,000 LUMP SUM INVESTMENT
[Chart described by text below.]
The graph above shows the ending investment value on a hypothetical $10,000
investment with dividends reinvested for the life of the Fund (inception
2/28/92). The ending value of $12,922 represents an average annual compound
total return of 7.2% without including the contingent deferred sales charge
(CDSC).
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 16.5% 16.6% 9.4%
---- ----- ----- ----
Life 7.2% 7.8% 6.5%
---- ----- ----- ----
Period ended: 10/31 10/31 9/30
------------ ----- ----- ----
</TABLE>
(3 years, 8 months since inception)
Nationwide(R) U.S. Government Income Fund pays monthly dividends from a
portfolio of securities issued by the U.S. government and its agencies. The
major component of the portfolio is mortgage-backed securities (74%), with
U.S. government long-term and agency obligations comprising most of the
balance.
These securities--backed by the full faith, credit, and sometimes the taxing
power of governmental entities--are generally considered among the safest
available, though they are not always rated by credit rating agencies.
The Fund seeks to maintain an average portfolio maturity of 10 years or less.
While many factors contribute to fluctuations in value, the maturity of a bond
is the major contributing factor. Generally, shorter maturities are less subject
to price fluctuation.
The Fund concentrates on those areas of the bond market that the portfolio
manager believes are relatively undervalued. In selecting securities for the
Fund, the portfolio manager uses interest rate expectations, yield curve
analysis, economic forecasting, market sector analysis, and other security
selection techniques.
* For Periods Ended 10/31/95. These returns do not reflect the effects of sales
charges.
** For periods Ended 9/30/95. Assumes the applicable contingent deferred sales
charge (CDSC) was paid on withdrawals from the U.S. Government Income Funds
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.
Average annual (compound) total return represents the average annual
percentage change in the value of an investment for the specified periods
assuming a redemption of the investment at the end of such periods. It
reflects the changes in share price and assumes reinvestment of all dividends
and distributions at net asset value. 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 MONEY MARKET FUND
YIELD TREND OF FUND VS. DEPOSIT ACCOUNT (MMDA)
[Chart described by text below.]
The graph above shows the Money Market Fund yield trend during the year ended
October 31, 1995, as compared to the average federally insured bank Money Market
Deposit Account (MMDA) rates over the same 12-month period.
AVERAGE ANNUAL (COMPOUND) TOTAL RETURN
<TABLE>
<CAPTION>
*1,000 *$100 **$1,000
LUMP SUM MONTHLY LUMP SUM
YEARS INVESTMENT INVESTMENT INVESTMENT
----- ---------- ---------- ----------
<S> <C> <C> <C>
1 5.5% 5.5% 5.4%
---- ----- ----- ----
5 4.2% 4.1% 4.2%
---- ----- ----- ----
10 5.7% 5.1% 5.7%
---- ----- ----- ----
15 7.6% 6.1% 7.6%
---- ----- ----- ----
Period ended: 10/31 10/31 9/30
</TABLE>
Nationwide(R) Money Market Fund seeks to provide investors with yields at
current market interest rates. With interest rates moderating this year compared
to last, dividends have remained steady in a narrow range. The Fund also seeks
to provide the stability of a fixed share price unaffected by market swings.
During the Fund's life, its share price has always been $1.00.
Money Market Fund's performance for the year ended October 31, 1995, was
5.5%. As shown in the graph above, this rate was nearly double the rate of the
average federally insured bank Money Market Deposit Account (MMDA) over the same
12-month period. (Source: Bank Rate Monitor.) Money Market Fund's current yield
is available by calling toll-free 1-800-848-0520.
Benefits of the Fund include competitive current market rates, liquidity
without penalty, daily compounding, security of principal, and free checkwriting
privileges ($500 minimum).
Conservative investors seeking greater growth or income than the Fund
provides may benefit from the Money Market Plus Growth(SM) and Money Market Plus
Income(SM) strategies. The principal remains in the Money Market Fund and
dividends are automatically reinvested into any other Nationwide Mutual Fund.
AN INVESTMENT IN THE 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 10/31/95. There are no sales charges for Money Market Fund.
** For Periods Ended 9/30/95.
Average annual (compound) total return represents the average annual
percentage change in the value of an investment for the specified periods
assuming reinvestment of all dividends and distributions. Total return
figures represent past performance and are not predictive of future
performance.
5
<PAGE> 6
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
NATIONWIDE(R)
GROWTH FUND
For the year ended October 31, 1995, the Nationwide Growth Fund had a total
return of 21.0%. The S&P 500 Index returned 26.4% during this same period.
There has not been a significant change in the sectors that have influenced the
Growth Fund's performance since the Semi-Annual Report issued in April of this
year. Technology stocks have declined from their peaks, but have still provided
strong performance year-to-date. Financial stocks too have had strong
year-to-date performance, and the Growth Fund has benefited from its holdings in
both sectors. In recent weeks the stock market has been interested in "stable"
growth stocks, such as in the drug and food sectors. The Growth Fund is not
heavily weighted in these areas, which has been negative for recent performance.
During the period since the Semi-Annual Report, the Growth Fund has added to
previous positions in healthcare delivery, as well as adding Apria Healthcare
(1.5% of portfolio) as a new position. The Fund added to its technology holdings
with the purchase of IBM (2.0%). High valuations, plus increased risk of future
impediments to growth prompted the sales of Hong Kong Telecommunications and
National City Corporation. These changes reflect the strategy outlined in
previous reports, which I expect to be able to pursue for the foreseeable
future.
John M. Schaffner, MBA, CFA
Portfolio Manager
<TABLE>
<CAPTION>
Average Annual Total Return
1 yr. 5 yr. 10 yr.
<S> <C> <C> <C>
w/o sc 21.01% 17.90% 13.60%
w/sc 15.56% 16.82% 13.08%
</TABLE>
[Line graph shows 10 year performance (1985-1995) of S&P 500 ($42,040), Growth
Fund ($34,178), and CPI ($14,168).]
Comparative performance of $10,000 invested in the Nationwide Growth Fund, the
S&P 500* and the Consumer Price Index (CPI).** For Periods Ended 10/31/95. Past
performance is no guarantee of future results. The w/o sc returns do not reflect
the effects of sales charges. The w/sc assumes a 4.5% sales charge was paid
which has the most dramatic effect on the one-year performance figures.
*The S&P 500 is a broad, unmanaged index of securities, and unlike Fund returns,
does not reflect any fees or expenses.
**The Consumer Price Index is a broad index reflecting price changes in a market
basket of consumer goods and, unlike the Fund, does not reflect any fees or
expenses.
NATIONWIDE(R)
FUND
The Nationwide Fund's total return for the 12-month period ended October 31,
1995, was 19.2% assuming all distributions were reinvested, while the S&P 500
returned 26.4%.
The Fund benefited from the excellent performance of the broadcasting sector due
to several high profile acquisitions in this industry. However, the Fund's
performance lagged in large part due to the extraordinary performance of
technology stocks. The under-investment in this market sector is largely
responsible for the Nationwide Fund trailing the S&P 500.
The Nationwide Fund profited from the recently announced acquisitions of CBS and
Capital Cities/ABC (3.1% of portfolio). These companies represented significant
holdings for the Nationwide Fund. I have invested in the broadcasting industry
for several years due to the industry's significant free cash flow, reasonable
valuation, and shareholder-oriented managements. These investments have paid
off handsomely. Unfortunately, as these companies are acquired, future direct
investment in the broadcasting industry will be difficult.
I have been asked about the Nationwide Fund's low investment in technology. IBM
was recently purchased for the Nationwide Fund (2.4% of portfolio) due to its
attractive valuation, significant excess cash flow, and strong balance sheet.
However, I anticipate the Fund's future technology weighting will remain low.
Companies in this sector are often characterized by short product cycles,
intense competition, and speculative valuation. While these stocks have
performed very well the past few years. I feel it would be a mistake to make a
significant investment in this highly volatile market sector.
Charles Bath, MBA, CFA, CPA
Portfolio Manager
<TABLE>
<CAPTION>
Average Annual Total Return
1 yr. 5 yr. 10 yr.
<S> <C> <C> <C>
w/o sc 19.24% 14.51% 13.88%
w/sc 13.87% 13.46% 13.36%
</TABLE>
[Line graph shows 10 year performance (1985-1995) of S&P 500 ($42,040),
Nationwide Fund ($35,028), and CPI ($14,168).]
Comparative performance of $10,000 invested in the Nationwide Fund, the S&P
500, and the Consumer Price Index. For Periods Ended 10/31/95. Past performance
is no guarantee of future results. The w/o sc returns do not reflect the
effects of sales charges. The w/sc assumes a 4.5% sales charge was paid which
has the most dramatic effect on the one-year performance figures.
NATIONWIDE(R)
BOND FUND
The Nationwide Bond Fund's total return for the 12-month period ended October
31, 1995, was 20.41% assuming all distributions were reinvested. The Lehman
Brothers Long Term Government/Corporate Bond Index returned 26.18% for the
period while the Lehman Brothers Government/Corporate Bond Index returned
16.16%. A partial explanation for the difference in returns can be attributed to
the maturities of the bonds in the indexes and in the Bond Fund. The yield curve
flattened during the year so that bonds with longer maturities had a greater
price appreciation. The bonds in the Lehman Brothers Government/Corporate Bond
Index had an average maturity of 9.58 years. The bonds in the Nationwide Bond
Fund had an average maturity of 13.28 years, and the bonds in the Lehman
Brothers Long Term Government/Corporate Bond Index had an average maturity of
23.38 years.
Since November 1, 1994, the Federal Reserve has raised the federal funds rate
twice and reduced it once with the net effect being an increase from 4.75% to
5.75%. These actions pushed up the yield on the short end of the yield curve and
contributed to the flattening of the curve. Simultaneously, rates in general
fell with 5-year treasury rates dropping from 7.57% to 5.80%; 10-year rates from
7.90% to 6.02%, and 30-year rates from 8.06% to 6.33%.
Several different types of securities are used to provide a mix that will
produce a higher return than a portfolio of 100% corporates. Investments in the
Bond Fund portfolio are distributed among the following types of securities:
commercial paper and repos (1.51%), U.S. Treasuries (4.26%), mortgage backed
securities (9.73%), corporate bonds (78.12%), and Canadian bonds (6.38%).
The Bond Fund recovered from its precipitous drop in 1994, but will always be
affected by changes in interest rates. Diversification among types of
securities, maturities and quality ratings will help moderate drastic changes in
the Bond Fund's performance.
Michael D. Groseclose, MBA, CFA
Portfolio Manager
<TABLE>
<CAPTION>
Average Annual Total Return
1 yr. 5 yr. 10 yr.
<S> <C> <C> <C>
w/o sc 20.41% 9.49% 8.99%
w/sc 14.99% 8.49% 8.49%
</TABLE>
[Line graph shows 10 year performance (1985-1995) of Lehman Brothers Long Term
Govt/Corp Bond Index ($31,134), Bond Fund ($22,594), and CPI ($14,168).]
Comparative performances of $10,000 invested in the Nationwide Bond Fund, the
Lehman Brothers Long Term Govt/Corp Bond Index* and the Consumer Price Index.
For Periods Ended 10/31/95. Past performance is no guarantee of future results.
The w/o sc returns do not reflect the effects of sales charges. The w/sc
assumes a 4.5% sales charge was paid which has the most dramatic effect on the
one-year performance figures.
*The Lehman Brothers Long Term Govt/Corp. Bond Index represents an unmanaged
group of bonds that are not adjusted for expenses and includes bonds of lower
quality than those purchased by our Funds.
6
<PAGE> 7
NATIONWIDE(R)
TAX-FREE
INCOME FUND
The Nationwide Tax-Free Income Fund's total return for the 12-month period ended
October 31, 1995, was 14.66% assuming all distributions were reinvested, while
the Lehman Brothers Municipal Bond Index* returned 14.84%.
During fiscal 1995, the economy slowed to a sustainable pace, inflation remained
low, and interest rates trended lower. These conditions created a good
environment for fixed income markets. The municipal bond market performed well
for the period as did the Nationwide Tax-Free Income Fund. Overall, the
Municipal Bond market underperformed the Treasury market. Using the Bond Buyer
11 Bond Index as a comparison, it declined 105 basis points (6.72% to 5.67%),
while the 30-year Treasury Bond declined 172 basis points (8.10% to 6.38%).
Investor concern about tax reform and its impact on municipal securities, along
with deficit reduction, were partially responsible for these results. The
management of the Fund will monitor these developments.
Issuance of municipal debt remained low, reducing the supply of outstanding
bonds. Demand declined as evidenced by reduced cash flows into municipal bond
funds. Investors seemed to be reluctant to return to fixed income markets after
a volatile 1994.
As the yield curve flattened and quality spreads narrowed, the strategy of the
Fund remained to maintain average credit quality of AA, and to reduce average
maturity while positioning the Fund's assets in higher income producing
securities. The Fund will be managed for the long term, seeking to take
advantage of market uncertainties that may represent opportunities to produce
better returns.
Alpha L. Benson, MBA
Portfolio Manager
<TABLE>
<CAPTION>
Average Annual Total Return
1 yr. 5 yr. Life
<S> <C> <C> <C>
w/o sc 14.66 7.98% 6.54%
w/sc 9.66 7.83% 6.54%
</TABLE>
[Line graph shows 10 year performance (1985-1995) of Lehman Brothers Municipal
Bond Index ($21,408), Tax-Free Income Fund ($18,404), and CPI ($14,087).]
Comparative performance of $10,000 invested in the Nationwide Tax-Free Income
Fund since inception (3/17/86), the Lehman Brothers Municipal Bond Index* and
the Consumer Price Index. For Periods Ended 10/31/95. The w/o sc returns do not
reflect sales charges. The w/sc assumes the applicable contingent deferred sales
charge (CDSC) was paid on withdrawals 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. Past performance is no guarantee of future results.
*The Lehman Brothers Municipal Bond Index represents an unmanaged group of bonds
that are not adjusted for expenses and includes bonds of lower quality than
those purchased by our Funds.
NATIONWIDE(R)
U.S. GOVERNMENT
INCOME FUND
The Nationwide U.S. Government Income Fund's total return for the 12-month
period ended October 31, 1995, was 16.47% assuming all distributions were
reinvested, while the Lehman Brothers Intermediate Government Bond Index
returned 12.54%.
During 1995 those bond market investors who stayed invested during a difficult
prior year have been rewarded for their patience. Intermediate-term interest
rates dropped by 160 to 180 basis points during the 12-month period ended
October 31, 1995, resulting in significantly higher prices for bonds and bond
funds. The U.S. Government Income Fund participated in this rally by maintaining
market exposure as interest rates peaked and then declined during the year.
The rally in the fixed income markets has been due to the confluence of several
factors. The most notable of these are the perception of an improving fiscal
policy in the United States, and a Federal Reserve that is given credit for
engineering an economy that has continued to expand without igniting inflation
concerns. Continued reports of subdued inflation have been interpreted both as
signs of successful Federal Reserve policy and as indications of continued value
in the bond market.
The U.S. Government Income Fund continues to be invested in sectors of the
government, agency, and mortgage-backed markets perceived to be undervalued.
Approximately 75% 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
<TABLE>
<CAPTION>
Average Annual Total Return
1 yr. Life
<S> <C> <C>
w/o sc 16.47 7.24%
w/sc 11.47 6.78%
</TABLE>
[Line graph shows 10 year performance (1985-1995) of Lehman Brothers
Intermediate Government Bond Index ($12,888), U.S. Government Income Fund
($12,722), and CPI ($11,109).]
Comparative performance of $10,000 invested in the Nationwide U.S. Government
Income Fund since inception (2/28/92), the Lehman Brothers Intermediate
Government Bond Index, and the Consumer Price Index. For Periods Ended 10/31/95.
The w/o sc returns do not reflect sales charges. The w/sc assumes the applicable
contingent deferred sales charge (CDSC) on withdrawals 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. Past performance is no guarantee of
future results.
*The Lehman Brothers Intermediate Government Bond Index represents an unmanaged
group of bonds that are not adjusted for expenses and includes bonds of lower
quality than those purchased by our Funds.
NATIONWIDE(R)
MONEY MARKET FUND
The Nationwide Money Market Fund had a 5.46% 12-month total return for the
period ended October 31, 1995, assuming all distributions were reinvested.
During the same period, the Consumer Price Index rose 2.80%. On October 31, the
Fund's seven-day current yield was 5.21%, while its seven-day effective yield
was 5.35%.
Late 1994 was a period of rising short-term interest rates, both market and
Federal Reserve controlled, and the yield on the Money Market Fund reflected the
rise. The Federal Reserve Board increased the discount rate by 75 basis points
to 4.75% in November of 1994, and the Fed funds effective rate increased
proportionately to the 5.50-5.65% range. The moves were a reflection of the
Fed's commitment to stalling inflation in light of a growing economy. Banks
followed the action by boosting the prime lending rate 75 basis points to 8.50%.
Continued signs of economic strength in February of this year prompted
additional Fed tightenings, with the discount rate being increased to 5.25%, up
50 basis points, and Fed funds surging to the 6.00% area. The prime rate edged
up to 9.00%. By keeping the average maturity of the Money Market Fund in the
35-45 day range, the Fund yield reflected the market increase in short-term
investment rates. In recent months, however, some signs of a slowing in the
economy have resulted in an easing move by the Fed with the effective funds
level cut 25 basis points in July of this year. The discount rate was left
unchanged, and market interest rates have since slipped accordingly.
The management of the Nationwide Money Market Fund is an ongoing process of
identifying and investing in high quality instuments which will reflect the
current short-term market environment, while adhering to the stated portfolio
objectives.
William M. Burtch, MBA
Portfolio Manager
<TABLE>
<CAPTION>
Average Annual Total Return+
1 yr. 5 yr. 10 yr.
<S> <C> <C> <C>
w/o sc 5.46% 4.20% 5.72%
</TABLE>
[Line graph shows 10 year performance (1985-1995) of Money Market Fund ($17,441)
and CPI ($14,168).]
Comparative performance of $10,000 invested in the Nationwide Money Market Fund
and the Consumer Price Index. For Periods Ended 10/31/95. Past performance is no
guarantee of future results. An investment in the 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.
+There are no sales charges in the Nationwide Money Market Fund.
7
<PAGE> 8
Statement of Investments - October 31, 1995 - Nationwide Growth Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (83.5%)
AIRLINES (0.6%)
199,000 Skywest, Inc. ............................. $ 3,407,875
------------
BUSINESS SERVICES (2.5%)
157,200 Insurance Auto Auctions Inc.* ............. 1,061,100
354,100 Olsten Corp. (The) ........................ 13,632,850
------------
14,693,950
------------
CHEMICALS (4.4%)
70,000 Air Products & Chemicals, Inc. ............ 3,613,750
75,000 Du Pont (E.I.) De Nemours & Co. ........... 4,678,125
100,000 FMC Corporation * ......................... 7,162,500
90,000 Loctite Corp. ............................. 4,252,500
122,000 Sigma-Aldrich Corp. ....................... 5,795,000
------------
25,501,875
------------
COMPUTER EQUIPMENT (5.7%).
300,000 American Power Conversion Corp. * ......... 3,075,000
200,000 Hewlett-Packard Company ................... 18,525,000
120,000 International Business Machines Corp. ..... 11,670,000
------------
33,270,000
------------
COMPUTER SOFTWARE & SERVICES (2.4%)
150,000 Automatic Data Processing, Inc. ........... 10,725,000
66,700 National Data Corporation ................. 1,767,550
145,000 SCS/COMPUTE, Inc.*+ .......................
50,000 Sunguard Data System Inc.* ................ 1,375,000
------------
14,193,800
------------
CONGLOMERATE (3.7%)
100,000 Corning Inc. .............................. 2,612,500
750,000 Hanson Trust, Plc ......................... 11,625,000
160,000 Honeywell Inc. ............................ 6,720,000
37,500 U.S. Industries, Inc. ..................... 562,500
------------
21,520,000
------------
CONSUMER GOODS (1.6%)
300,000 Newell Co. ................................ 7,237,500
168,000 Perrigo Co. * ............................. 2,058,000
------------
9,295,500
------------
CONTRACT MANUFACTURING (0.7%)
100,000 Dovatron International, Inc. * ............ 3,075,000
115,000 Electronic Fab Technology Corp. * ......... 524,688
41,000 Triple S Plastics, Inc. * ................. 379,250
------------
3,978,938
------------
DENTAL (0.7%)
51,500 Dentsply International Inc. ............... 1,776,750
120,000 National Dentex Corp.* .................... 2,160,000
------------
3,936,750
------------
DISTRIBUTION (1.2%)
328,125 Bergen Brunswig Corp., Class A ............ 6,808,594
------------
DRUGS (3.2%)
200,000 Allergan Inc. ............................. 5,875,000
160,000 Schering-Plough Corp. ..................... 8,580,000
50,000 Warner-Lambert Co. ........................ 4,256,250
------------
18,711,250
------------
EDUCATION (0.9%)
237,400 DeVry Inc.* ............................... 5,282,150
------------
ELECTRONICS (8.6%)
127,300 AMP Inc. .................................. 4,996,525
450,000 Intel Corp. ............................... 31,443,750
117,187 Molex Inc. ................................ 3,867,171
190,858 Molex Inc., Class A ....................... 5,868,884
155,000 Richardson Electronics Ltd ................ 1,472,500
189,000 Woodhead Industries, Inc. ................. 2,693,250
------------
50,342,080
------------
ENGINEERING & CONSTRUCTION (1.0%)
100,000 Fluor Corporation ......................... 5,650,000
------------
FINANCIAL SERVICES (8.2%)
37,500 American International Group Inc. ......... 3,164,062
578,812 Bear Stearns Companies, Inc. .............. 11,503,888
486,202 Gainsco, Inc. ............................. 4,193,492
350,000 Merrill Lynch & Co., Inc. ................. 19,425,000
50,000 Morgan Stanley Group Inc. ................. 4,350,000
200,000 Silicon Valley Bancshares * ............... 3,850,000
100,000 Standard Financial Inc. * ................. 1,375,000
------------
47,861,442
------------
FOOD & BEVERAGES (4.0%)
3,000,000 Grand Metropolitan, Plc .................... 20,733,600
50,000 International Flavors and Fragrances, Inc. . 2,412,500
------------
23,146,100
------------
FOOD-GRAIN & AGRICULTURE (2.7%)
980,259 Archer Daniels Midland Co. ................. 15,806,676
------------
HEALTHCARE SERVICES (4.9%)
415,000 Apria Healthcare Group, Inc. ............... 8,974,375
400,000 Columbia HCA /Healthcare Corp. ............. 19,650,000
------------
28,624,375
------------
MACHINERY & CAPITAL GOODS (4.8%)
80,000 Cooper Industries, Inc. .................... 2,700,000
139,650 Duriron, Inc. .............................. 3,735,638
60,000 Emerson Electric Co. ....................... 4,275,000
50,000 Ingersoll-Rand Company ..................... 1,768,750
100,000 Lindsay Manufacturing Co.* ................. 3,525,000
60,000 Nordson Corp. .............................. 3,465,000
146,300 Zebra Technologies Corp. * ................. 8,704,850
------------
28,174,238
------------
MEDICAL PRODUCTS (0.6%)
200,000 Biomet, Inc. * ............................. 3,325,000
------------
OIL & GAS (5.4%)
150,000 Amoco Corp. ................................ 9,581,250
80,000 Mobil Corp. ................................ 8,060,000
60,000 Royal Dutch Petroleum Co. .................. 7,372,500
50,000 Texaco, Inc. ............................... 3,406,250
126,750 Weatherford Enterra Corp. .................. 3,057,844
------------
31,477,844
------------
PAPER & FOREST PRODUCTS (0.2%)
80,000 Glatfelter (P.H.) Company .................. 1,480,000
------------
POLLUTION CONTROL (1.0%)
200,000 WMX Technologies, Inc. ..................... 5,625,000
------------
PRINTING & PUBLISHING (3.1%)
150,000 Dun & Bradstreet Corp. ..................... 8,962,500
100,000 Merrill Corporation ........................ 1,600,000
160,000 Reader's Digest Assoc., Inc., Class B ...... 7,400,000
------------
17,962,500
------------
RESTAURANTS (1.7%)
200,000 Bob Evans Farms, Inc. ...................... 3,600,000
185,000 Pancho's Mexican Buffet, Inc. .............. 508,750
300,000 Wendy's International, Inc. ................ 5,962,500
------------
10,071,250
------------
RETAIL (1.3%)
200,000 Franklin Quest Co.* ........................ 4,775,000
145,000 Smart & Final Inc. ......................... 2,718,750
------------
7,493,750
------------
TELECOMMUNICATIONS (8.4%)
300,000 AT & T Corp. ............................... 19,200,000
744,000 MCI Communications Corp. ................... 18,553,500
300,000 Sprint Corporation ......................... 11,550,000
------------
49,303,500
------------
Total common stocks
(cost $348,257,112) ...... 486,944,437
------------
- ---------
PRINCIPAL
- ---------
REPURCHASE AGREEMENT (0.3%)
$1,895,000 Merrill Lynch & Co., Inc.
5.45%, due 11/06/95, Collateralized by
$14,186,697 FHLMC #S10009, 8.50%, due
06/01/22 and $521,596 FNMA 7.00%, due
03/24/25 market value - $1,964,926
(cost $1,895,000) ....... 1,895,000
------------
U.S. GOVERNMENT AND AGENCY SHORT-TERM
OBLIGATIONS (16.1%)
41,375,000 U.S. Treasury Bills
5.41% through 5.23%, due 11/16/95
through 05/30/96 ........................ 40,872,674
2,670,000 Federal Home Loan Mortgage Notes
5.57% through 5.48%, due 02/05/96
through 02/09/96 ........................ 2,629,308
50,970,000 Federal National Mortgage Association Notes
5.71% through 5.43%, due 11/03/95
through 04/11/96 ........................ 50,134,816
------------
Total U.S. government and
agency short-term
obligations
(cost $93,636,798) ....... 93,636,798
------------
Total investments
(cost $443,788,910) ...... $582,476,235
============
</TABLE>
* Denotes a non-income producing security.
+ Affiliate as defined in Section 2(a)(3) of the Investment Company Act
since the Fund owns more than 5% of the outstanding shares.
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.
SECURITIES BY TYPE
(Pie chart shows composition of the portfolio.)
<TABLE>
<CAPTION>
TOTAL VALUE OF PORTFOLIO $582,476,235
- --------------------------------------------------------------------------------
LARGEST SECURITIES HOLDINGS ASSETS HELD % OF
PORTFOLIO
- --------------------------------------------------------------------------------
<S> <C> <C>
Federal Nat'l Mortgage Association Notes $50,134,816 8.6%
- --------------------------------------------------------------------------------
U.S. Treasury Bills 40,872,674 7.0%
- --------------------------------------------------------------------------------
Intel Corp. 31,443,750 5.4%
- --------------------------------------------------------------------------------
Grand Metropolitan, Plc 20,733,800 3.8%
- --------------------------------------------------------------------------------
Columbia HCA/ Healthcare Corp. 19,650,000 3.4%
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 19,425,000 8.3%
- --------------------------------------------------------------------------------
AT&T Corp. 19,200,000 3.3%
- --------------------------------------------------------------------------------
MCI Communications Corp. 18,553,500 3.2%
- --------------------------------------------------------------------------------
Hewlett-Packard Company 18,525,000 3.2%
- --------------------------------------------------------------------------------
Archar Daniels Midland Co. 18,806,676 2.7%
- --------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 9
Statement of Investments - October 31, 1995 - Nationwide Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (97.1%)
AUTO & AUTO PARTS (6.6%)
537,200 Chrysler Corporation ..................... $ 27,732,950
869,400 Ford Motor Company ....................... 24,995,250
------------
52,728,200
------------
BROADCASTING (3.1%)
206,100 Capital Cities/ABC, Inc. ................. 24,448,612
------------
BUILDING (3.8%)
337,500 Masco Corporation ........................ 9,492,188
142,800 USG Corporation* ......................... 4,159,050
302,200 Vulcan Materials Co. ..................... 16,809,875
------------
30,461,113
------------
CHEMICALS (11.9%)
527,300 Georgia Gulf Corporation* ................ 17,466,812
309,700 IMG Global Inc.* ......................... 21,679,000
593,700 Morton International Inc. ................ 18,107,850
223,600 OM Group, Inc. ........................... 6,484,400
663,275 Raychem Corporation ...................... 30,759,378
------------
94,497,440
------------
COMPUTER EQUIPMENT (2.4%)
193,200 International Business Machines Corp. .... 18,788,700
------------
DRUGS (10.5%)
74,500 American Home Products Corp. ............. 6,602,562
705,800 Schering-Plough Corp. .................... 37,848,525
459,300 Warner-Lambert Co. ....................... 39,097,913
------------
83,549,000
------------
FINANCIAL (12.5%)
296,900 Barnett Banks, Inc. ...................... 16,403,725
332,400 Chubb Corporation ........................ 29,874,450
233,400 CoreStates Financial Corp ................ 8,489,925
50,359 Fund American Enterprises* ............... 3,474,771
364,700 Horace Mann Educators Corp. .............. 9,710,138
397,800 Mellon Bank Corp. ........................ 19,939,725
143,800 U S Bancorp .............................. 4,260,075
165,900 West One Bancorp ......................... 7,050,750
------------
99,203,559
------------
FOOD & BEVERAGE (13.4%)
297,400 Anheuser-Busch Companies Inc. ............ 19,628,400
524,000 PepsiCo, Inc. ............................ 27,641,000
223,600 Philip Morris Companies, Inc. ............ 18,894,200
312,200 Quaker Oats Company ...................... 10,653,825
349,039 Ralcorp Holdings Inc.* ................... 8,027,759
364,200 Ralston-Ralston Purina Group ............. 21,624,375
------------
106,469,559
------------
HOUSEHOLD PRODUCTS (7.5%)
347,000 Avon Products, Inc. ...................... 24,680,375
424,200 Dial Corp. (The) ......................... 10,339,875
207,200 Gillette Company (The) ................... 10,023,300
110,600 Helene Curtis Industries, Inc. ........... 3,304,175
152,000 Maybelline, Inc. ......................... 3,591,000
100,000 Procter & Gamble Co. ..................... 8,100,000
------------
60,038,725
------------
LEISURE PRODUCTS (1.4%)
586,100 Brunswick Corp. .......................... 11,428,950
------------
MACHINERY (2.0%)
342,400 Johnstown America Industries, Inc.* ...... 1,583,600
71,360 PACCAR, Inc. ............................. 2,979,280
375,000 Trinity Industries, Inc. ................. 11,109,375
------------
15,672,255
------------
NONFERROUS METALS (0.5%)
138,500 Alumax, Inc.* ............................ 4,085,750
------------
OIL & GAS (7.9%)
161,900 Mobil Corporation ........................ 16,311,425
476,700 Texaco Inc. .............................. 32,475,188
547,300 Unocal Corporation ....................... 14,366,625
------------
63,153,238
------------
PAPER AND FOREST PRODUCTS (1.5%)
86,400 Bowater Inc. ............................. 3,823,200
36,000 Champion Intl. Corp. ..................... 1,926,0
79,600 Georgia Pacific Corporation .............. 6,567,000
------------
12,316,200
------------
PRINTING & PUBLISHING (9.1%)
760,000 American Greetings Corp., Class A ........ 23,940,000
229,300 Dun & Bradstreet Corp. ................... 13,700,675
229,600 Gannett Co., Inc. ........................ 12,484,500
282,300 Gibson Greetings, Inc .................... 3,916,912
100,000 Tribune Co. .............................. 6,312,500
40,900 Washington Post Company (The), Class B ... 11,861,000
------------
72,215,587
------------
TELECOMMUNICATIONS (0.3%)
100,000 MCI Communications Corporation ........... 2,493,750
------------
TOYS (2.7%)
739,712 Mattel, Inc. ............................. 21,266,720
------------
Total common stocks
(cost $520,513,993) ..... 772,817,358
------------
- ---------
PRINCIPAL
- ---------
CONVERTIBLE BONDS (0.6%)
$11,356,000 Consorcio G. Grupo Dina, 8.00%, 2004 ...... 4,315,280
------------
(cost $10,442,587)
COMMERCIAL PAPER (1.9%)
1,380,000 Banc One Corp.
5.73% due 11/16/95 ..................... 1,376,705
4,160,000 Dillard Investment Co.
5.71%, due 11/10/95 .................... 4,154,062
4,410,000 Marsh & McLennan Co.
5.72% due 11/01/95 ..................... 4,410,000
625,000 Merrill Lynch & Co., Inc.
5.76%, due 11/03/95 .................... 624,800
4,485,000 Monsanto Co.
5.72%, due 11/06/95 .................... 4,481,437
------------
Total commercial paper
(cost $15,047,004) ...... 15,047,004
------------
REPURCHASE AGREEMENT (0.5%)
4,071,000 Merrill Lynch & Co., Inc.
5.45%, due 11/06/95, Collateralized by
$4,206,635 FNMA CMO , due 10/23/25 and
$7,542,442 FHLMC 8.00%, due 08/01/22
market value - $4,221,220
(cost $4,071,000) ....... 4,071,000
------------
Total investments
(cost $550,074,584) ..... $796,250,642
============
</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.
SECURITIES BY TYPE
(Pie chart shows composition of the portfolio.)
<TABLE>
<CAPTION>
TOTAL VALUE OF PORTFOLIO $796,250,642
- --------------------------------------------------------------------------------
LARGEST SECURITIES HOLDINGS ASSETS HELD % OF
PORTFOLIO
- --------------------------------------------------------------------------------
<S> <C> <C>
Warner-Lambert Co. $39,097,913 4.9%
- --------------------------------------------------------------------------------
Schering-Plough Corp. 37,848,525 4.8%
- --------------------------------------------------------------------------------
Texaco Inc. 32,475,188 4.1%
- --------------------------------------------------------------------------------
Raychem Corporation 30,758,378 3.9%
- --------------------------------------------------------------------------------
Chubb Corporation 29,874,450 3.8%
- --------------------------------------------------------------------------------
Chrysler Corporation 27,732,950 3.5%
- --------------------------------------------------------------------------------
PepsiCo, Inc. 27,641,000 3.5%
- --------------------------------------------------------------------------------
Ford Motor Company 24,995,250 3.1%
- --------------------------------------------------------------------------------
Avon Products, Inc. 24,680,375 3.1%
- --------------------------------------------------------------------------------
Capital Cities/ABC, Inc. 24,448,812 3.1%
- --------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 10
Statement of Investments - October 31, 1995 - Nationwide Bond Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
CANADIAN GOVERNMENT BONDS (6.3%)
$1,000,000 Hydro-Quebec, 11.75%, 2012 .................... $ 1,415,479
4,000,000 Hydro-Quebec, 8.05%, 2024 ..................... 4,410,476
2,000,000 Manitoba (Province of), 9.625%, 2018 .......... 2,568,898
------------
Total Canadian government bonds
(cost $7,709,759) .......................... 8,394,853
------------
CORPORATE BONDS (76.9%)
BANKS (5.3%)
3,000,000 Banc One Corp., 9.875%, 2009 .................. 3,741,948
1,000,000 Banc One Corp., 10.00%, 2010 .................. 1,270,384
2,000,000 Toronto-Dominion Bank, NY., 7.875% 2004 ....... 2,124,098
------------
7,136,430
------------
BROKER/DEALER (7.1%)
1,000,000 Bear Stearns Companies, Inc., 9.375%, 2001 .... 1,181,689
2,000,000 Bear Stearns Companies, Inc., 8.75%, 2004 ..... 2,242,164
1,000,000 Lehman Brothers Holdings Inc., 11.625%, 2005 .. 1,296,791
1,000,000 Morgan Stanley Group Inc., 8.10%, 2002 ........ 1,083,314
3,000,000 Morgan Stanley Group Inc., 10.00%, 2008 ....... 3,745,191
------------
9,499,149
------------
CHEMICALS (1.6%)
2,000,000 ICI Wilmington Inc., 7.50%, 2002 .............. 2,114,766
------------
FINANCE (12.8%)
2,000,000 Bass America Inc., 8.125%, 2002 ............... 2,182,584
2,000,000 Ford Capital BV Notes, 10.125%, 2000 .......... 2,318,774
3,000,000 Ford Capital BV Notes, 9.50%, 2010 ............ 3,676,389
1,000,000 General Electric Capital Corp., 8.75%, 2000 ... 1,100,390
3,235,000 General Electric Capital Corp., 8.50%, 2008 ... 3,739,903
3,515,000 Loews Corp., 8.875%, 2011 ..................... 4,086,324
------------
17,104,364
------------
FOOD (4.0%)
2,000,000 General Foods Corp., 7.00%, 2011 .............. 1,909,028
3,000,000 Seagram (JE) & Sons Inc., 8.875%, 2011 ........ 3,464,226
------------
5,373,254
------------
INSURANCE (20.0%)
4,500,000 Aetna Life & Casualty Co., 6.75%, 2013 ........ 4,169,786
3,000,000 Allstate Corp., 7.50%, 2013 ................... 3,079,914
4,000,000 AMBAC Inc., 9.375%, 2011 ...................... 4,945,712
1,000,000 AMBAC Inc., 7.50%, 2023 ....................... 1,038,767
5,000,000 Berkley (W.R.) Corp., 9.875%, 2008 ............ 6,075,350
2,000,000 Equitable of Iowa, 8.50%, 2005 ................ 2,217,958
5,000,000 Prudential Surplus Note, 8.10%, 2015 .......... 5,115,250
------------
26,642,737
------------
PAPER & FOREST PRODUCTS (1.7%)
2,000,000 Temple-Inland Inc., 9.00%, 2001 ............... 2,247,034
------------
PUBLISHING (1.5%)
2,000,000 Times Mirror Co., 7.25%, 2013 ................. 2,022,314
------------
RETAIL TRADE (8.8%)
2,000,000 Dayton Hudson Corp., 9.25%, 2011 .............. 2,397,886
1,000,000 Lowe's Companies Inc., 8.19%, 2022 ............ 1,107,649
3,000,000 May Department Stores Company, 10.625%, 2010 .. 4,084,224
2,000,000 Wal-Mart Stores, Inc., 7.50%, 2004 ............ 2,134,802
2,000,000 Wal-Mart Stores, Inc., 7.25%, 2013 ............ 2,057,342
------------
11,781,903
------------
UTILITIES: GAS & ELECTRIC (1.0%)
1,250,000 Pacific Gas & Electric Company, 8.75%, 2001 ... 1,369,752
------------
OTHER (13.1%)
4,000,000 Armstrong World Industries Inc.,
4,000,000 English China Clays Delaware Inc., 7.375%, 2002 4,181,804
2,000,000 Kaiser Foundation, 9.55%, 2005 ................ 2,439,948
2,000,000 Waste Management Inc., 7.65%, 2011 ............ 2,160,298
3,500,000 Waste Management Inc., 8.75%, 2018 ............ 3,982,741
------------
17,502,363
------------
Total corporate bonds
(cost $99,360,848) ......................... 102,794,066
------------
MORTGAGE BACKED SECURITIES (9.6%)
1,500,000 FHLMC (REMIC) Class 194-E, 7.00%, 2021 ........ 1,501,919
888,224 FHLMC (REMIC) Class 1650-LC, 6.50%, 2022 ...... 854,745
1,759,016 FHLMC (REMIC) Class 1650-LE, 6.50%, 2022 ...... 1,692,506
4,150,730 FHLMC (REMIC) Class 1709-EA, 7.25%, 2023 ...... 4,177,955
819,538 FHLMC-GNMA (REMIC) Class 29-Z, 6.75%, 2024 .... 805,023
1,000,000 FNMA (REMIC) 1994 Class 4L, 6.50%, 2007 ....... 975,099
1,000,000 FNMA (REMIC) 1992 Class 105-J, 6.50%, 2020 .... 986,199
782,326 FNMA (REMIC) 1992 Class 103-A, 7.00%, 2022 .... 781,895
860,072 FNMA (REMIC) 1992 Class G-64M, 7.00%, 2022 .... 834,518
200,293 FNMA (REMIC) Class X-225C-A, 5.85%, 2023 ...... 188,566
------------
Total mortgage backed securities
(cost $12,491,043) ......................... 12,798,425
------------
U.S. GOVERNMENT
LONG-TERM OBLIGATIONS (4.2%)
$5,000,000 U.S. Treasury Notes, 8.75%, 2000
(cost $5,314,872) .......................... $ 5,606,250
------------
COMMERCIAL PAPER (0.8%)
1,085,000 Coca-Cola Financial Corp.
5.73%, due 11/03/95
(cost $1,084,655) .......................... 1,084,655
------------
REPURCHASE AGREEMENT (0.7%)
907,000 Merrill Lynch & Co.,Inc.,
5.45%, due 11/06/95,
Collateralized by $1,044,259
FHLMC 00.0%, due 03/24/15
$531,684 FNMA 7.00%,
due 07/01/08
market value - $940,468
(cost $907,000) ............................ 907,000
------------
Total investments
(cost $126,868,177) ........................ $131,585,249
============
</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.
SECURITIES BY TYPE
[PIE CHART SHOWS COMPOSITION OF THE PORTFOLIO.]
<TABLE>
<CAPTION>
TOTAL VALUE OF PORTFOLIO $131,585,249
- --------------------------------------------------------------------------------
LARGEST SECURITIES HOLDINGS ASSETS HELD % OF
PORTFOLIO
- --------------------------------------------------------------------------------
<S> <C> <C>
Berkley (W.R.) Corp. $6,075,350 4.8%
- --------------------------------------------------------------------------------
U.S. Treasury Notes 5,606,250 4.3%
- --------------------------------------------------------------------------------
Prudential Surplus Note 5,115,250 3.9%
- --------------------------------------------------------------------------------
AMBAC Inc., 2011 4,945,712 3.8%
- --------------------------------------------------------------------------------
Armstrong World Industries, Inc. 4,737,572 3.6%
- --------------------------------------------------------------------------------
Hydro-Quebec 4,410,476 3.3%
- --------------------------------------------------------------------------------
English China Clays Delaware Inc. 4,181,804 3.2%
- --------------------------------------------------------------------------------
FHLMC (REMIC), 2023 4,177,955 3.2%
- --------------------------------------------------------------------------------
Aetna Life & Casualty Co. 4,168,785 3.2%
- --------------------------------------------------------------------------------
Loews Corp. 4,088,324 3.1%
- --------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 11
Statement of Investments - October 31, 1995 - Nationwide Tax-Free Income Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE (NOTE 1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES - (98.5%)
ALABAMA (3.3%)
Birmingham, Alabama General Obligation Refunding
$2,500,000 Revenue, Series 1992 B, 6.25%, 2016 ........................ $ 2,587,500
Birmingham, Alabama Water Works & Sewer Board Refunding
2,480,000 Revenue, Series 1992, 6.125%, 2012 ......................... 2,582,300
Huntsville, Alabama General Obligation Limited Tax
3,500,000 Warrants, Series 1992 A, 6.00%, 2012 ....................... 3,600,625
-----------
8,770,425
-----------
ARIZONA (3.0%)
Salt River Project, Agricultural Improvement & Power
District, Arizona Electric System Revenue Bonds,
5,100,000 Series 1992 C, 6.00%, 2016 ................................. 5,195,625
Salt River Project, Agricultural Improvement & Power
District, Arizona Electric System Revenue Bonds,
2,500,000 Series 1992 C, 6.20%, 2012 ................................. 2,603,125
-----------
7,798,750
-----------
COLORADO (0.4%)
Colorado Housing Finance Authority Single-Family
Housing Revenue Refunding Bonds,
1,000,000 Series 1991-A, 7.15%, 2014 ................................. 1,046,250
-----------
CONNECTICUT (2.0%)
Connecticut Housing Finance Authority
Housing Mortgage Finance Program Bonds,
5,000,000 Series 1992-B, 6.70%, 2012 ................................. 5,281,250
-----------
FLORIDA (2.5%)
Florida Municipal Power Agency, Stanton II Project Revenue
1,880,000 Bonds, Series 1992, 6.50%, 2020 ............................ 2,122,050
Florida State Full Faith and Credit Capital Outlay
1,550,000 Bonds, Series 1991 A, 6.75%, 2012 .......................... 1,728,250
Jacksonville, Florida Electric Authority Bulk Power
Revenue Bonds, (Scherer 4 Project, Issue One,
2,400,000 Series 1991-A), 7.00%, 2012 ................................ 2,709,000
-----------
6,559,300
-----------
GEORGIA (5.0%)
Atlanta, Georgia General Obligation School Improvement
1,805,000 Bonds, Series 1993, 5.60%, 2018 ............................ 1,777,925
Dekalb County, Georgia General Obligation Refunding
2,710,000 Bonds, 6.00%, 2012 ......................................... 2,831,950
Georgia General Obligation Refunding Revenue Bonds,
2,500,000 Series 1993 D, 6.50%, 2008 ................................. 2,825,000
Georgia Municipal Electric Authority Power Revenue
1,600,000 Bonds, Series T, 6.50%, 2025 ............................... 1,618,000
Georgia Municipal Electric Authority Power Revenue
2,750,000 Bonds, Series 1991-V, 6.60%, 2018 .......................... 2,976,875
Georgia Residential Financial Authority Revenue Bonds,
1,005,000 Series A, 7.50%, 2017 ...................................... 1,062,788
-----------
13,092,538
-----------
ILLINOIS (7.9%)
Chicago, Illinois General Airport Revenue Refunding Bonds,
Series 1993-A (Chicago-O'Hare International Airport),
3,000,000 5.00%, 2016 ................................................ 2,696,250
Illinois Educational Facility Authority Revenue, Series
2,185,000 1991-A, Loyola University, 7.125%, 2021 .................... 2,419,888
Illinois State Build Illinois Bonds Sales Tax Revenue,
7,500,000 Series O, 6.00%, 2018 ...................................... 7,593,750
Illinois State Build Illinois Bonds Sales Tax Revenue,
2,500,000 Series V, 6.375%, 2017 ..................................... 2,653,125
Illinois State General Obligation Bonds,
3,000,000 Series of March 1994, 5.80%, 2019 .......................... 2,958,750
Illinois State General Obligation Bonds,
1,350,000 Series of July 1995, 5.75%, 2016 ........................... 1,343,250
Palatine, Illinois Corporate Purpose General Obligation
1,000,000 Bonds, Series 1985, 9.90%, 2016 ............................ 1,210,000
-----------
20,875,013
-----------
INDIANA (2.8%)
Indiana State Toll Road Commission East-West Toll Road
5,335,000 Revenue Bonds, Series 1980, 9.00%, 2015 .................... 7,322,288
-----------
MAINE (0.4%)
Maine Municipal Bond Bank General Obligation,
1,000,000 Series 1988 A, 7.70%, 2008 ................................. 1,118,750
-----------
MARYLAND (2.5%)
Baltimore County, Maryland General Obligation
Pension Funding Bonds, Refunding
3,200,000 Series 1991, 6.70%, 2016 ................................... 3,420,000
Howard County, Maryland Public Improvement
General Obligation Unlimited Tax,
1,000,000 Series 1994 A, 6.00%, 2014 ................................. 1,027,500
Montgomery County, Maryland Consolidated Public
1,700,000 Improvement Bonds, Series 1984, 9.75%, 2001 ................ 2,135,625
-----------
6,583,125
-----------
MASSACHUSETTS (4.9%)
Massachusetts Bay Transportation Authority, General
Transportation System Bonds, Series 1991 A,
2,600,000 7.00%, 2011 ................................................ 2,944,500
Massachusetts State General Obligation Bonds Consolidated
3,775,000 Loan, Series 1992-B, 6.50%, 2013 ........................... 4,034,531
Massachusetts State General Obligation Bonds Consolidated
2,250,000 Loan, Series 1993-B, 4.875%, 2013 .......................... 2,055,938
Massachusetts Water Resources Authority General Revenue Bonds,
4,000,000 Series 1992A, 5.50%, 2022 .................................. 3,800,000
-----------
12,834,969
-----------
MICHIGAN (1.5%)
Michigan State General Obligation Bonds, Environmental
3,500,000 Protection Program, Series 1992, 6.25%, 2012 ............... 3,828,125
-----------
MINNESOTA (1.6%)
Minnesota State Housing Finance Agency Single Family
Mortgage Revenue Bonds,
4,000,000 Series 1994 K, 6.40%, 2015 ................................. 4,135,000
-----------
MISSOURI (1.2%)
Kansas City, Missouri Water Works & Sewer Board
1,000,000 Refunding Revenue, Series 1994-D, 6.55%, 2012 .............. 1,085,000
Missouri State Environmental Improvement & Energy
Resources Authority Water Pollution Control Revenue
2,000,000 Bonds, 6.55%, 2014 ......................................... 2,147,500
-----------
3,232,500
-----------
NEBRASKA (2.0%)
Nebraska Public Power District Power Supply System
5,000,000 Revenue Bonds, Series 1993, 6.125%, 2015 ................... 5,137,500
-----------
NEW YORK (0.4%)
New York Local Government Assistance Corporation,
1,000,000 Series 1991-B, 7.50%, 2020 ................................. 1,161,250
-----------
NORTH CAROLINA (3.7%)
Charlotte-Mecklenburg Hospital Authority, North Carolina
Health Care System Revenue Bonds,
1,035,000 Series 1992, 6.00%, 2022 ................................... 1,042,762
North Carolina Housing Finance Agency Single Family
2,350,000 Revenue Bonds, Series AA, 6.25%, 2017 ...................... 2,397,000
North Carolina Housing Finance Agency Single Family
2,085,000 Revenue Bonds, Series J, 7.40%, 2022 ....................... 2,173,613
North Carolina Housing Finance Agency Single Family
1,910,000 Revenue Bonds, Series N, 7.40%, 2028 ....................... 2,003,112
North Carolina Medical Care Commission Hospital Revenue
Refunding Bonds, Series 1992 A (North Carolina Baptist
2,000,000 Hospitals Project), 6.375%, 2014 ........................... 2,085,000
-----------
9,701,487
-----------
OHIO (0.9%)
Columbus, Ohio Water Works & Sewer Board Refunding
1,000,000 Revenue, Series 1991, 6.375%, 2010 ......................... 1,062,500
Ohio State Full Faith & Credit General Obligation
Infrastructure Improvement & Refunding Bonds,
1,395,000 Series 1994, 4.80%, 2013 ................................... 1,295,606
-----------
2,358,106
-----------
PENNSYLVANIA (2.9%)
Pennsylvania Housing Finance Agency Rental
Housing Refunding Revenue Bonds,
4,055,000 Issue 1992, 6.40%, 2012 .................................... 4,125,962
Pennsylvania Housing Finance Agency Rental
Housing Refunding Revenue Bonds,
1,500,000 Issue 1992, 6.25%, 2007 .................................... 1,546,875
Pennsylvania State Turnpike Commission Oil
2,000,000 Franchise Tax Revenue, Series A, 6.00%, 2014 ............... 2,045,000
-----------
7,717,837
-----------
SOUTH CAROLINA (4.7%)
Charleston, South Carolina Waterworks & Sewer System
Refunding & Capital Improvement Revenue Bonds,
6,980,000 Series 1991, 6.00%, 2018 ................................... 7,128,325
South Carolina State Housing Finance & Development
Authority Multi-Family Development Revenue Refunding,
1,500,000 Series 1992-A, 6.875%, 2023 ................................ 1,554,375
South Carolina State Housing Finance & Development
Authority Homeownership Mortgage Purchase Bonds,
2,075,000 Series 1994 A, 6.375%, 2016 ................................ 2,106,125
Spartanburg, South Carolina Water System
Improvement & Refunding Revenue Bonds,
1,500,000 Series 1992, 6.25%, 2017 ................................... 1,561,875
-----------
12,350,700
-----------
TENNESSEE (1.4%)
Nashville & Davidson County, Tennessee General
Obligation Multi-purpose Improvement Bonds,
1,000,000 Series 1994, 6.125%, 2014 .................................. 1,040,000
Nashville & Davidson County, Tennessee Health &
Educational Facilities Revenue Bonds, Series 1979,
1,500,000 7.875%, 2004 ............................................... 1,685,625
</TABLE>
(continued)
11
<PAGE> 12
Statement of Investments - October 31, 1995 - Nationwide Tax-Free Income Fund,
continued
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE (NOTE 1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Shelby County, Tennessee General Obligation
$1,000,000 School Bonds, Series 1994 B, 6.00%, 2014 .................. $ 1,025,000
------------
3,750,625
------------
TEXAS (21.3%)
Bexar County, Texas Combination Tax and Revenue
5,000,000 Certificates, Series 1992, 6.20%, 2012 .................... 5,168,750
Grand Prairie Independent School District, Texas
Unlimited Tax School Building Bonds,
1,075,000 Series 1992, 6.50%, 2011 .................................. 1,159,750
Harris County, Texas Detention Facility Certificates,
1,000,000 Series 1992, 6.00%, 2010 .................................. 1,068,750
Harris County, Texas General Obligation Tax and Revenue
3,500,000 Certificates, Series 1994, 6.10%, 2013 .................... 3,626,875
Harris County, Texas Toll Road Revenue, Series 1992 A,
1,835,000 6.50%, 2011 ............................................... 1,958,862
Houston, Texas General Obligation Public Improvement
5,435,000 Unrefunded, Series C, 6.25%, 2012 ......................... 5,638,813
Houston, Texas Water & Sewer Junior Lien Revenue
7,720,000 Refunding, Series 1991-C, 6.375%, 2017 .................... 8,067,400
Irving, Texas Independent School District Unlimited Tax
School Building Bonds, Series 1991-C-Permanent School
1,215,000 Fund, 5.25%, 2009 ......................................... 1,196,775
Lower Colorado River Authority Texas Junior Lien Refunding
3,390,000 Revenue Bonds, Series 1992, 6.00%, 2017 ................... 3,436,612
San Antonio, Texas Electric & Gas Systems
Revenue Refunding Bonds,
2,700,000 New Series 1989-B, 6.50%, 2012 ............................ 2,828,250
San Antonio, Texas General Improvement Refunding Bonds,
5,000,000 Series 1992, 5.75%, 2013 .................................. 5,031,250
Texas State Water Development Bonds,
3,175,000 Series 1994, 6.90%, 2017 .................................. 3,500,438
Texas Water Resources Finance Authority Revenue Bonds,
1,490,000 Series 1989, 7.625%, 2008 ................................. 1,629,688
University of Texas Revenue Financing System,
2,750,000 Series 1991-B, 6.75%, 2013 ................................ 2,966,562
University of Texas Revenue Financing System,
2,000,000 Series 1991, 6.50%, 2011 .................................. 2,130,000
University of Texas System Permanent University Fund
2,000,000 Bonds, Series 1992B, 6.25%, 2013 .......................... 2,067,500
Weatherford, Texas Independent School District Unlimited
Tax School Building and Refunding Bonds,
3,000,000 Series 1994, 6.50%, 2015 .................................. 3,195,000
Weatherford, Texas Independent School District Unlimited
Tax School Building and Refunding Bonds,
1,090,000 Series 1994, 6.40%, 2012 .................................. 1,162,212
------------
55,833,487
------------
UTAH (2.0%)
Intermountain Power Agency, Utah Power Supply Revenue
5,580,000 Refunding Bonds, Series 1993-A, 5.50%, 2020 ............... 5,328,900
------------
VIRGINIA (11.8%)
Fairfax County, Virginia Water Authority Water Refunding
1,500,000 Revenue Series 1992, 6.00%, 2022 .......................... 1,530,000
Henrico County, Virginia Water and Sewer System Refunding
4,250,000 Revenue Bonds, Series 1994, 5.875%, 2014 .................. 4,313,750
Newport News, Virginia General Improvement Bonds,
1,985,000 Series 1993 E, 5.20%, 2013 ................................ 1,905,600
Richmond, Virginia General Obligation Public
Improvement Refunding Bonds, Series 1991-B,
8,000,000 6.25%, 2018 ............................................... 8,140,000
Virginia Housing Development Authority Commonwealth
2,150,000 Mortgage Bonds, Series 1993 H, 5.25%, 2023 ................ 1,943,062
Virginia Housing Development Authority Commonwealth
Mortgage Bonds, Series 1992 C Subseries C-7,
2,000,000 6.30%, 2015 ............................................... 2,037,500
Virginia Housing Development Authority
Commonwealth Mortgage Bonds, 1995 Series B,
1,000,000 Subseries B-3, 6.35%, 2015 ................................ 1,020,000
Virginia Housing Development Authority Commonwealth
5,500,000 Mortgage Bonds, Series 1992 A, 7.10%, 2022 ................ 5,809,375
Virginia Housing Development Authority Commonwealth
Mortgage Bonds, Series 1995-D, Subseries D-1,
1,080,000 5.95%, 2013* .............................................. 1,080,000
Virginia Housing Development Authority Commonwealth
Mortgage Bonds, Series B, Subseries B-2,
1,000,000 6.50%, 2010 ............................................... 1,068,750
Virginia Public School Authority School Financing Bonds
2,000,000 (1991 Resolution), Series 1994 A, 6.20%, 2013 ............. 2,095,000
------------
30,943,037
------------
WASHINGTON (5.9%)
Seattle, Washington Metropolitan General Obligation Bonds,
2,950,000 Series 1991, 6.875%, 2020 ................................. 3,045,875
Seattle, Washington Municipal Light and Power Refunding
1,500,000 Revenue Bonds, Series 1992 B, 5.75%, 2010 ................. 1,533,750
Washington State General Obligation, Series 1992 A and
8,635,000 AT-6, 5.75%, 2017 ......................................... 8,591,825
Washington State General Obligation Unlimited Tax,
2,155,000 Series DD-14 and B, 6.00%, 2015 ........................... 2,184,631
------------
15,356,081
------------
WISCONSIN (2.5%)
Wisconsin State General Obligation, Series 1992-A,
2,000,000 6.30%, 2011 ............................................... 2,182,500
Wisconsin State General Obligation Bonds, Series 1994 A,
2,000,000 5.00%, 2014 ............................................... 1,860,000
Wisconsin State Transportation Revenue Bonds, Series A,
2,500,000 5.50%, 2012 ............................................... 2,440,625
------------
6,483,125
------------
Total municipal securities
(cost $246,442,310) .............................. $258,600,418
============
</TABLE>
Cost also represents cost for Federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
*When-issued security. The Statement of Additional Information states this type
of security has a longer settlement period than is customary. The Tax-Free Fund
has committed high quality debt securities to equal the amount required for
settlement.
See accompanying notes to financial statements.
SECURITIES BY MOODY'S RATING
[Pie chart shows securities by
Moody's Rating, Aaa-rated
25.7%, Aa-rated, 49.5%;
A-rated 24.8%.]
[Bar chart shows key to Moody's Municipal Bond
Ratings, from Aaa to C.]
<TABLE>
<CAPTION>
TOTAL VALUE OF PORTFOLIO $258,600,418
==============================================================================
LARGEST SECURITIES HOLDINGS BY STATE ASSETS HELD % OF
PORTFOLIO
- ------------------------------------------------------------------------------
<S> <C> <C>
Texas $55,833,487 21.6%
- ------------------------------------------------------------------------------
Virginia 30,943,037 12.0%
- ------------------------------------------------------------------------------
Illinois 20,875,013 8.1%
- ------------------------------------------------------------------------------
Washington 15,356,081 5.9%
- ------------------------------------------------------------------------------
Georgia 13,092,538 5.1%
- ------------------------------------------------------------------------------
Massachusetts 12,834,969 5.0%
- ------------------------------------------------------------------------------
South Carolina 12,350,700 4.8%
- ------------------------------------------------------------------------------
North Carolina 9,701,487 3.7%
- ------------------------------------------------------------------------------
Alabama 8,770,425 3.4%
- ------------------------------------------------------------------------------
Arizona 7,798,750 3.0%
- ------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 13
Statement of Investments - October 31, 1995 - Nationwide U.S. Government Income
Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY VALUE (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE BACKED SECURITIES (74.3%)
FHLMC REMIC Series 1462, Class PT,
$5,000,000 7.50%, 2003 ................................. $ 5,182,895
FHLMC REMIC Series 1313, Class G,
3,000,000 7.25%, 2007 ................................. 3,065,817
FHLMC REMIC Series 1344, Class D,
4,000,000 6.00%, 2007 ................................. 3,757,476
FHLMC REMIC Series 31, Class E,
3,437,917 7.55%, 2020 ................................. 3,514,373
FNMA REMIC Series 1992-126, Class VB,
1,500,000 8.00%, 2002 ................................. 1,570,243
FNMA REMIC Series 1992-151, Class H,
4,000,000 6.00%, 2007 ................................. 3,799,036
FNMA REMIC Series 1988-25, Class B,
547,340 9.25%, 2018 ................................. 571,324
FNMA REMIC Series 1990-7, Class B,
3,000,000 8.50%, 2020 ................................. 3,122,517
FNMA REMIC Series 1993-203, Class PJ,
5,000,000 6.50%, 2023 ................................. 4,971,845
-----------
Total mortgage backed securities
(cost $29,076,198) ..................... 29,555,526
-----------
U.S. GOVERNMENT AND AGENCY
LONG-TERM OBLIGATIONS (19.3%)
Federal Home Loan Banks
1,000,000 7.08%, 2000 ................................. 1,008,146
4,000,000 6.36%, 2001 ................................. 4,043,172
Federal Home Loan Mortgage Corp.
1,000,000 6.31%, 2004 ................................. 977,190
Federal National Mortgage Association
1,000,000 7.05%, 2000 ................................. 1,010,659
Resolution Funding STRIPS,
2,000,000 0.00%, 2013 ................................. 620,638
-----------
Total U.S. government and agency
long-term obligations
(cost $7,339,604) ...................... 7,657,805
-----------
REPURCHASE AGREEMENT (6.2%)
Prudential Securities
5.75%, due 11/1/95, Collateralized by
$2,670,000 U.S. Treasury Bills, due 10/17/96
market value - $2,536,126
2,480,000 (cost $2,480,000) ...................... 2,480,000
-----------
Total investments
(cost $38,895,802) ..................... $39,693,331
===========
</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.
SECURITIES BY TYPE
[PIE CHART SHOWS COMPOSITION OF THE PORTFOLIO.]
TOTAL VALUE OF PORTFOLIO $49,693,331
<TABLE>
<CAPTION>
=============================================================================
LARGEST SECURITIES HOLDINGS ASSETS HELD % OF
PORTFOLIO
- -----------------------------------------------------------------------------
<S> <C> <C>
FHLMC (REMIC) Series 1462-PT $5,182,895 13.1%
- -----------------------------------------------------------------------------
FNMA (REMIC) Series 1993-203-PJ 4,971,845 12.5%
- -----------------------------------------------------------------------------
Federal Home Loan Banks, 7.08%, 2000 4,043,172 10.2%
- -----------------------------------------------------------------------------
FNMA (REMIC) Series 1992-151-H 3,799,036 9.6%
- -----------------------------------------------------------------------------
FHLMC (REMIC) Series 1344-D 3,757,476 9.5%
- -----------------------------------------------------------------------------
FHLMC (REMIC) Series 31-E 3,514,373 8.7%
- -----------------------------------------------------------------------------
FNMA (REMIC) Series 1990-7-B 3,122,517 7.9%
- -----------------------------------------------------------------------------
FHLMC (REMIC) Series 1313-G 3,065,817 7.7%
- -----------------------------------------------------------------------------
Repurchase Agreement (Prudential Securities) 2,480,000 6.2%
- -----------------------------------------------------------------------------
FNMA (REMIC) Series 1992-126-VB 1,570,243 4.0%
- -----------------------------------------------------------------------------
</TABLE>
13
<PAGE> 14
Statement of Invesments - October 31, 1995 - Nationwide Money Market Fund
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE (NOTE 1)
--------- -------- --------------
<S> <C> <C>
BANKERS ACCEPTANCES (0.5%)
Republic Bank of NY
$ 3,300,000 5.56%, due 12/06/95 ...................... $ 3,282,162
(cost $3,282,162) -----------
CANADIAN GOVERNMENT OBLIGATIONS (2.8%)
Canadian Wheat Board
4,130,000 5.55%, due 12/18/95 ...................... 4,100,075
5,650,000 5.67%, due 12/20/95 ...................... 5,606,396
Export Development Corp.
7,250,000 5.65%, due 11/08/95 ...................... 7,242,035
-----------
Total Canadian government obligations
(cost $16,948,506) ......................... 16,948,506
-----------
COMMERCIAL PAPER (90.3%)
AUTO/FINANCE (3.4%)
Ford Motor Credit Co.
2,000,000 5.74%, due 11/06/95 ...................... 1,998,406
4,760,000 5.70%, due 11/07/95 ...................... 4,755,478
5,000,000 5.73%, due 11/15/95 ...................... 4,988,858
3,000,000 5.73%, due 12/12/95 ...................... 2,980,423
5,725,000 5.67%, due 01/08/96 ...................... 5,663,685
-----------
20,386,850
-----------
BANKS (10.2%)
Banc One Corp.
6,000,000 5.68%, due 11/03/95 ...................... 5,998,107
4,000,000 5.73%, due 11/10/95 ...................... 3,994,270
8,000,000 5.68%, due 11/14/95 ...................... 7,883,591
5,000,000 5.70%, due 11/21/95 ...................... 4,984,167
CoreStates Capital Corp.
5,000,000 5.72%, due 01/03/96 ...................... 4,949,950
5,000,000 5.70%, 01/03/96 .......................... 4,949,333
JP Morgan & Co., Inc.
8,000,000 5.70%, due 11/20/95 ...................... 7,975,933
2,000,000 5.60%, due 12/21/95 ...................... 1,984,444
National City Credit Corp.
9,000,000 5.65%, due 11/17/95 ...................... 8,977,400
4,902,000 5.71%, due 11/29/95 ..................... 4,880,230
Norwest Corp.
5,000,000 5.60%, due 12/27/95 ...................... 4,956,445
-----------
61,633,870
BROKER-DEALERS (12.6%) -----------
Bear Stearns Companies, Inc.
5,000,000 5.73%, due 11/20/95 ...................... 4,984,879
6,540,000 5.72%, due 01/12/96 ...................... 6,465,182
5,775,000 5.74%, due 12/05/95 ...................... 5,743,693
5,000,000 5.75%, due 11/30/95 ...................... 4,976,840
Dean Witter Discover & Co.
3,000,000 5.73%, due 11/13/95 ...................... 2,994,270
5,000,000 5.70%, due 11/17/95 ...................... 4,987,333
2,940,000 5.70%, due 11/22/95 ...................... 2,930,225
3,000,000 5.68%, due 01/08/96 ...................... 2,967,813
3,000,000 5.68%, due 1/10/96 ....................... 2,966,867
3,000,000 5.68%, due 01/22/96 ...................... 2,981,187
3,000,000 5.68%, due 01/31/96 ...................... 2,956,927
Merrill Lynch & Co., Inc.
6,000,000 5.73%, due 11/01/95 ...................... 6,000,000
2,775,000 5.72%, due 11/15/95 ...................... 2,768,827
5,000,000 5.75%, due 11/16/95 ...................... 4,988,021
7,000,000 5.73%, due 11/16/95 ...................... 6,983,288
3,000,000 5.73%, due 11/28/95 ...................... 2,987,108
740,000 5.73%, due 12/01/95 ...................... 736,466
Smith Barney, Inc.
6,760,000 5.74%, due 11/28/95 ...................... 6,730,898
-----------
76,129,824
-----------
CAPTIVE BORROWING CONDUITS (1.7%)
BTR Dunlop Finance
2,439,000 5.70%, due 11/13/95 ...................... 2,434,366
Prudential Funding, Inc.
8,000,000 5.72%, due 11/08/95 ...................... 7,991,102
-----------
10,425,468
-----------
CHEMICALS (2.7%)
Monsanto Co.
5,000,000 5.75%, due 11/01/95 ...................... 5,000,000
6,110,000 5.68%, due 12/13/95 ...................... 6,069,511
5,280,000 5.68%, due 01/17/96 ...................... 5,215,854
-----------
16,285,365
-----------
CONSUMER SALES FINANCE (7.2%)
American Express Credit Corp.
$ 8,000,000 5.73%, due 11/13/95 ...................... $ 7,984,720
1,000,000 5.71%, due 12/04/95 ...................... 994,766
Associates Corp. of North America
8,775,000 5.65%, due 11/07/95 ...................... 8,766,737
6,250,000 5.66%, due 11/13/95 ...................... 6,238,208
4,640,000 5.75%, due 11/15/95 ...................... 4,629,624
Commercial Credit Corp.
7,504,000 5.70%, due 11/09/95 ...................... 7,494,495
Norwest Financial, Inc.
7,560,000 5.66%, due 01/05/96 ...................... 7,482,741
-----------
43,591,292
-----------
CONSUMER PRODUCTS (1.5%)
Gillette Co.
9,185,000 5.65%, due 01/11/96 ...................... 9,082,651
-----------
CORPORATE CREDIT UNIONS (3.4%)
U.S. Central Credit Union
7,000,000 5.74%, due 11/01/95 ...................... 7,000,000
5,000,000 5.70%, due 11/10/95 ...................... 4,992,875
6,000,000 5.65%, due 01/19/96 ...................... 5,925,608
3,000,000 5.68%, due 01/19/96 ...................... 2,962,607
-----------
20,881,090
-----------
DIVERSIFIED FINANCE (4.9%)
AT&T Capital Corp.
5,000,000 5.63%, due 11/02/95 ...................... 4,999,218
3,000,000 5.65%, due 11/15/95 ...................... 2,993,408
5,000,000 5.60%, due 12/12/95 ...................... 4,968,111
GE Capital Corp.
3,660,000 5.73%, due 11/09/95 ...................... 3,655,340
1,000,000 5.65%, due 12/19/95 ...................... 992,466
Transamerica Finance Group, Inc.
6,000,000 5.75%, due 11/06/95 ...................... 5,995,208
6,000,000 5.70%, due 12/12/95 ...................... 5,959,150
-----------
29,562,901
-----------
ELECTRIC UTILITY (4.0%)
National Rural Utilities Cooperative
4,000,000 5.70%, due 11/09/95 ...................... 3,994,933
5,000,000 5.70%, due 12/01/95 ...................... 4,976,250
7,152,000 5.72%, due 12/11/95 ...................... 7,106,545
8,000,000 5.68%, due 12/22/95 ...................... 7,935,627
-----------
24,013,355
-----------
FOOD & BEVERAGES (9.3%)
CPC International Inc.
5,740,000 5.75%, due 11/06/95 ...................... 5,735,416
1,845,000 5.68%, due 11/07/95 ...................... 1,843,253
3,800,000 5.67%, due 01/18/96 ...................... 3,753,317
7,000,000 5.69%, due 01/18/96 ...................... 6,913,702
Campbell Soup Co.
5,000,000 5.68%, due 11/21/95 ...................... 4,984,223
4,835,000 5.68%, due 01/23/96 ...................... 4,771,683
Heinz (H.J.) Company
1,275,000 5.72%, due 12/01/95 ...................... 1,268,923
9,000,000 5.70%, due 11/30/95 ...................... 8,958,675
Sara Lee Corp.
2,850,000 5.66%, due 12/27/95 ...................... 2,824,907
7,000,000 5.65%, due 12/28/95 ...................... 6,937,379
6,000,000 5.65%, due 12/28/95 ...................... 5,946,325
Sysco Corp.
2,300,000 5.67%, due 11/10/95 ...................... 2,296,740
-----------
56,234,543
-----------
INSURANCE (8.3%)
Marsh & McLennan Co.
5,000,000 5.75%, due 11/01/95 ...................... 5,000,000
4,310,000 5.87%, due 11/01/95 ...................... 4,310,000
MetLife Funding Inc.
5,515,000 5.65%, due 11/07/95 ...................... 5,509,807
8,000,000 5.72%, due 12/04/95 ...................... 7,958,053
5,000,000 5.70%, due 12/07/95 ...................... 4,971,500
Old Republic Capital Corp.
5,500,000 5.77%, due 11/03/95 ...................... 5,498,237
1,986,000 5.70%, due 12/13/95 ...................... 1,972,793
4,000,000 5.72%, due 12/13/95 ...................... 3,973,307
8,000,000 5.63%, due 01/09/96 ...................... 7,913,673
3,000,000 5.68%, due 02/01/96 ...................... 2,956,454
-----------
50,063,824
-----------
</TABLE>
14
<PAGE> 15
Statement of Invesments - October 31, 1995 - Nationwide Money Market Fund,
continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE (NOTE 1)
--------- -------- --------------
<S> <C> <C>
LEASE FINANCING (4.9%)
Fleet Funding, Inc.
$ 5,000,000 5.74%, due 11/03/95 ...................... $ 4,998,405
6,215,000 5.70%, due 01/04/96 ...................... 6,152,021
5,558,000 5.70%, due 01/05/96 ...................... 5,500,799
PHH Corp.
2,000,000 5.73%, due 11/02/95 ...................... 1,999,682
4,000,000 5.72%, due 11/03/95 ...................... 3,998,729
3,000,000 5.72%, due 11/15/95 ...................... 2,993,327
4,000,000 5.65%, due 01/19/96 ...................... 3,950,406
------------
29,593,369
------------
OFFICE EQUIPMENT & SUPPLIES (2.9%)
Pitney Bowes Credit Corp.
5,000,000 5.65%, due 11/17/95 ...................... 4,987,445
7,720,000 5.65%, due 11/22/95 ...................... 7,694,556
5,000,000 5.66%, due 12/22/95 ...................... 4,959,908
------------
17,641,909
------------
PAPER AND FOREST PRODUCTS (0.8%)
Sonoco Products Co.
5,000,000 5.75%, due 11/10/95 ...................... 4,992,812
------------
PHARMACEUTICALS & PERSONAL CARE (4.3%)
Pfizer Inc.
4,393,000 5.72%, due 11/06/95 ...................... 4,389,510
Schering Corp.
5,000,000 5.66%, due 11/14/95 ...................... 4,989,781
9,000,000 5.69%, due 01/16/96 ...................... 8,891,890
5,000,000 5.55%, due 01/17/96 ...................... 4,940,646
2,685,000 5.65%, due 03/27/96 ...................... 2,623,055
------------
25,834,882
------------
PRINTING & PUBLISHING (1.7%)
Donnelley (R.R.) & Sons Company
5,500,000 5.70%, due 12/05/95 ...................... 5,520,123
McGraw-Hill Inc.
5,000,000 5.65%, due 11/02/95 ...................... 4,999,215
------------
10,519,338
------------
RAILROADS (1.3%)
Norfolk & Southern Railway Company
8,246,000 5.65%, due 01/16/96 ...................... 8,147,644
------------
RETAIL TRADE (2.1%)
Dillard Inv. Co.
3,700,000 5.73%, due 11/02/95 ...................... 3,699,411
3,825,000 5.71%, due 11/10/95 ...................... 3,819,540
Wal-Mart Stores Inc.
5,000,000 5.85%, due 12/05/95 ...................... 4,973,319
------------
12,492,270
------------
TELECOMMUNICATIONS (3.1%)
AT & T Corp.
9,000,000 5.65%, due 11/27/95 ...................... $ 8,963,272
1,575,000 5.65%, due 11/29/95 ...................... 1,568,079
5,000,000 5.61%, due 12/20/95 ...................... 4,961,821
3,000,000 5.64%, due 12/21/95 ...................... 2,976,500
------------
18,469,672
------------
Total commercial paper
(cost $545,982,929) ............... 545,982,929
------------
CORPORATE NOTES (1.7%)
BANKS
J.P. Morgan & Co.
5,000,000 6.20%, due 05/13/96 ...................... 4,999,154
FINANCE
G.E. Capital Corp.
5,000,000 5.702%, variable, due 05/06/96* .......... 4,998,865
------------
Total corporate notes
(cost $9,998,019) ................ 9,998,019
------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS (4.6%)
Federal National Mortgage Association
2,600,000 5.50%, due 11/14/95 ...................... 2,594,836
7,780,000 5.53%, due 12/08/95 ...................... 7,735,781
5,000,000 5.46%, due 04/12/96 ...................... 4,876,392
5,000,000 5.71%, due 06/10/96 ...................... 4,998,396
U.S. Treasury Bills
3,000,000 5.53%, due 05/30/96 ...................... 2,902,764
5,000,000 6.31%, due 11/16/95 ...................... 4,986,854
------------
Total U.S. government and
agency obligations
(cost $28,095,023) ................ 28,095,023
------------
Total investments
(cost $604,306,639) ............... $604,306,639
============
</TABLE>
Cost also represents cost for Federal income tax purposes.
Portfolio holding percentages represent market value as a
percentage of net assets.
*Variable rate as of 10/31/95 and resets to 3 month Treasury Bill Index, plus 20
basis points, and resets weekly and pays quarterly.
See accompanying notes to financial statements.
SECURITIES BY TYPE
[Pie chart shows composition of the portfolio.]
TOTAL VALUE OF PORTFOLIO $604,306,639
<TABLE>
<CAPTION>
================================================================================
LARGEST SECURITIES HOLDINGS BY ISSUER ASSETS HELD % OF
PORTFOLIO
- --------------------------------------------------------------------------------
<S> <C> <C>
Merrill Lynch & Co., Inc. $24,463,710 4.0%
- --------------------------------------------------------------------------------
National Rural Utilities Cooperative 24,013,355 4.0%
- --------------------------------------------------------------------------------
Banc One Corp 22,960,135 3.8%
- --------------------------------------------------------------------------------
Dean Witter Discover & Co. 22,764,622 3.8%
- --------------------------------------------------------------------------------
Old Republic Capital Corp. 22,314,463 3.7%
- --------------------------------------------------------------------------------
Bear Stearns Companies, Inc. 22,170,594 3.7%
- --------------------------------------------------------------------------------
Schering Corp. ` 21,445,372 3.5%
- --------------------------------------------------------------------------------
U.S. Central Credit Union 20,881,090 3.5%
- --------------------------------------------------------------------------------
Ford Motor Credit Co. 20,386,850 3.4%
- --------------------------------------------------------------------------------
Associates Corp. of North America 19,634,569 3.2%
- --------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 16
Statements of Assets and Liabilities - October 31, 1995
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R)
GROWTH NATIONWIDE(R) BOND
FUND FUND FUND
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------
Investments in securities, at value (cost $443,788,910, $582,476,235 796,250,642 131,585,249
$550,074,584, $126,868,177, $246,442,310,
$38,895,802, and $604,306,639, respectively)
- -----------------------------------------------------------------------------------------------------
Cash -- -- --
- -----------------------------------------------------------------------------------------------------
Accrued interest and dividends receivable 228,574 1,092,774 2,602,579
- -----------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 265,016 -- 22,951
- -----------------------------------------------------------------------------------------------------
Receivable for investment securities sold 758,614 -- 263,077
- -----------------------------------------------------------------------------------------------------
Total assets 583,728,439 797,343,416 134,473,856
- -----------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Payable for investment securities purchased -- -- 346,630
- -----------------------------------------------------------------------------------------------------
Net payable for Fund shares redeemed 391,789 1,177,438 274,764
- -----------------------------------------------------------------------------------------------------
Sales charge payable 79,087 58,547 9,705
- -----------------------------------------------------------------------------------------------------
Accrued management fees (note 2) 238,486 329,896 56,428
- -----------------------------------------------------------------------------------------------------
Accrued transfer agent fees (note 2) 51,832 54,827 13,192
- -----------------------------------------------------------------------------------------------------
Accrued distribution fees (note 2) -- -- --
- -----------------------------------------------------------------------------------------------------
Distribution payable 18 1,999 122,583
- -----------------------------------------------------------------------------------------------------
Other accrued expenses 40,372 54,366 17,970
- -----------------------------------------------------------------------------------------------------
Total liabilities 801,584 1,677,073 841,272
- -----------------------------------------------------------------------------------------------------
NET ASSETS $582,926,855 795,666,343 133,632,584
=====================================================================================================
REPRESENTED BY:
Capital Shares, $1 par value outstanding 44,109,209 45,863,506 14,068,847
- -----------------------------------------------------------------------------------------------------
Capital paid in excess of par value 344,910,383 460,408,894 124,091,250
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation 139,687,325 246,175,058 4,717,072
- -----------------------------------------------------------------------------------------------------
Accumulated undistributed net realized gain (loss) 55,104,961 42,454,076 (9,354,044)
- -----------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income 114,977 763,809 109,459
- -----------------------------------------------------------------------------------------------------
NET ASSETS $582,926,855 795,666,343 133,632,584
=====================================================================================================
Shares outstanding (unlimited number
of shares authorized) 44,109,209 45,863,506 14,068,847
- -----------------------------------------------------------------------------------------------------
Net assets per share $ 13.22 17.35 9.50
- -----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R) NATIONWIDE(R)
TAX-FREE U.S. GOV'T MONEY MARKET
INCOME FUND INCOME FUND FUND
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------
Investments in securities, at value (cost $443,788,910, 258,600,418 39,693,331 604,306,639
$550,074,584, $126,868,177, $246,442,310,
$38,895,802, and $604,306,639, respectively)
- ----------------------------------------------------------------------------------------------------
Cash 812,050 -- 538,092
- ----------------------------------------------------------------------------------------------------
Accrued interest and dividends receivable 4,926,872 250,276 323,557
- ----------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 206,404 7,674 --
- ----------------------------------------------------------------------------------------------------
Receivable for investment securities sold -- 60,989 --
- ----------------------------------------------------------------------------------------------------
Total assets 264,545,744 40,012,270 606,168,288
- ----------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------
Payable for investment securities purchased 1,075,950 -- --
- ----------------------------------------------------------------------------------------------------
Net payable for Fund shares redeemed 412,007 146,292 --
- ----------------------------------------------------------------------------------------------------
Sales charge payable 3,306 -- --
- ----------------------------------------------------------------------------------------------------
Accrued management fees (note 2) 143,476 21,789 229,579
- ----------------------------------------------------------------------------------------------------
Accrued transfer agent fees (note 2) 26,492 3,224 56,772
- ----------------------------------------------------------------------------------------------------
Accrued distribution fees (note 2) 43,633 6,704 --
- ----------------------------------------------------------------------------------------------------
Distribution payable 320,784 47,875 103,720
- ----------------------------------------------------------------------------------------------------
Other accrued expenses 36,493 9,416 67,329
- ----------------------------------------------------------------------------------------------------
Total liabilities 2,062,141 235,300 457,400
- ----------------------------------------------------------------------------------------------------
NET ASSETS 262,483,603 39,776,970 604,710,888
====================================================================================================
REPRESENTED BY:
Capital Shares, $1 par value outstanding 25,690,778 3,930,076 604,713,369
- ----------------------------------------------------------------------------------------------------
Capital paid in excess of par value 229,936,563 35,485,445 --
- ----------------------------------------------------------------------------------------------------
Net unrealized appreciation 12,158,108 797,529 --
- ----------------------------------------------------------------------------------------------------
Accumulated undistributed net realized gain (loss) (5,307,081) (436,080) 4,106
- ----------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income 5,235 -- (6,587)
- ----------------------------------------------------------------------------------------------------
NET ASSETS 262,483,603 39,776,970 604,710,888
====================================================================================================
Shares outstanding (unlimited number
of shares authorized) 25,690,778 3,930,076 604,713,369
- ----------------------------------------------------------------------------------------------------
Net assets per share 10.22 10.12 1.00
- ----------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
16
<PAGE> 17
Statements of Operations - Year ended October 31, 1995
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R)
GROWTH NATIONWIDE(R) BOND
FUND FUND FUND
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
- --------------------------------------------------------------------------------------------------------------
Income:
- --------------------------------------------------------------------------------------------------------------
Dividends $ 7,988,620 16,890,707 --
- --------------------------------------------------------------------------------------------------------------
Interest 3,797,169 1,994,619 9,844,489
- --------------------------------------------------------------------------------------------------------------
Total Income 11,785,789 18,885,326 9,844,489
- --------------------------------------------------------------------------------------------------------------
Expenses (note 2):
- --------------------------------------------------------------------------------------------------------------
Investment management fees 2,542,155 3,658,939 635,757
- --------------------------------------------------------------------------------------------------------------
Distribution fees -- -- --
- --------------------------------------------------------------------------------------------------------------
Transfer agent fees 609,836 670,255 166,048
- --------------------------------------------------------------------------------------------------------------
Shareholders' reports 131,239 139,217 66,014
- --------------------------------------------------------------------------------------------------------------
Registration fees -- -- --
- --------------------------------------------------------------------------------------------------------------
Professional services 29,328 43,282 7,492
- --------------------------------------------------------------------------------------------------------------
Custodian fees 18,500 27,000 13,500
- --------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 9,568 13,841 2,555
- --------------------------------------------------------------------------------------------------------------
Other 20,964 30,827 6,286
- --------------------------------------------------------------------------------------------------------------
Total expenses before waived expenses 3,361,590 4,583,361 897,652
- --------------------------------------------------------------------------------------------------------------
Total waived expenses -- -- --
- --------------------------------------------------------------------------------------------------------------
Net expenses 3,361,590 4,583,361 897,652
- --------------------------------------------------------------------------------------------------------------
Net investment income 8,424,199 14,301,965 8,946,837
- --------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments (note 3) 55,104,961 42,454,076 (2,695,214)
- --------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 34,260,953 73,761,567 17,358,003
- --------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 89,365,914 116,215,643 14,662,789
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $97,790,113 130,517,608 23,609,626
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R) NATIONWIDE(R)
TAX-FREE U.S. GOV'T MONEY MARKET
INCOME FUND INCOME FUND FUND
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------------------------------
Income:
- -------------------------------------------------------------------------------------------------------------
Dividends -- -- --
- -------------------------------------------------------------------------------------------------------------
Interest 15,520,660 2,678,439 32,645,296
- -------------------------------------------------------------------------------------------------------------
Total Income 15,520,660 2,678,439 32,645,296
- -------------------------------------------------------------------------------------------------------------
Expenses (note 2):
- -------------------------------------------------------------------------------------------------------------
Investment management fees 1,629,584 248,765 2,739,499
- -------------------------------------------------------------------------------------------------------------
Distribution fees 878,689 133,950 --
- -------------------------------------------------------------------------------------------------------------
Transfer agent fees 163,259 40,489 638,256
- -------------------------------------------------------------------------------------------------------------
Shareholders' reports 69,661 20,889 199,519
- -------------------------------------------------------------------------------------------------------------
Registration fees 21,958 13,494 --
- -------------------------------------------------------------------------------------------------------------
Professional services 29,926 4,374 31,516
- -------------------------------------------------------------------------------------------------------------
Custodian fees 30,000 4,750 39,050
- -------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 2,704 409 10,579
- -------------------------------------------------------------------------------------------------------------
Other 11,142 2,177 21,988
- -------------------------------------------------------------------------------------------------------------
Total expenses before waived expenses 2,836,923 469,297 3,680,407
- -------------------------------------------------------------------------------------------------------------
Total waived expenses (376,581) (57,407) (273,950)
- -------------------------------------------------------------------------------------------------------------
Net expenses 2,460,342 411,890 3,406,457
- -------------------------------------------------------------------------------------------------------------
Net investment income 13,060,318 2,266,549 29,238,839
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments (note 3) (3,951,178) 70,730 4,106
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 24,981,359 3,505,345 --
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 21,030,181 3,576,075 4,106
- -------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 34,090,499 5,842,624 29,242,945
=============================================================================================================
</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
Year ended Year ended Year ended
October 31, October 31, October 31,
1995 1994 1995
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income $ 8,424,199 7,441,245 14,301,965
Net realized gain (loss) on investments 55,104,961 9,636,714 42,454,076
Net change in unrealized appreciation
or depreciation of investments 34,260,953 8,096,074 73,761,567
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 97,790,113 25,174,033 130,517,608
- ------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (8,424,199) (7,441,245) (14,459,586)
In excess of net investment income (50,491) (5,929) --
Net realized gain from investment transactions (9,636,714) (8,401,371) (54,955,514)
- ------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (18,111,404) (15,848,545) (69,415,100)
- ------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sale of shares 78,233,932 82,610,533 44,342,114
Net asset value of shares issued to shareholders
from reinvestment of dividends and distributions 17,836,103 15,601,534 60,306,894
Cost of shares redeemed (57,537,318) (54,675,212) (76,759,052)
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets derived
from capital share transactions 38,532,717 43,536,855 27,889,956
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 118,211,426 52,862,343 88,992,464
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--BEGINNING OF PERIOD 464,715,429 411,853,086 706,673,879
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $582,926,855 464,715,429 795,666,343
==============================================================================================================================
Undistributed net realized gain (loss) on invest-
ments included in net assets at end of period (note 1) $ 55,104,961 9,636,714 42,454,076
==============================================================================================================================
Undistributed (distributions in excess of) net
investment income included in net assets at end of period (note 1) $ 114,977 (226,048) 763,809
==============================================================================================================================
Shares sold 6,444,023 7,522,642 2,806,172
- ------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders from reinvest-
ment of dividends and distributions 1,578,080 1,431,216 4,081,126
- ------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (4,861,121) (4,985,965) (4,857,164)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in number of shares 3,160,982 3,967,893 2,030,134
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R)
NATIONWIDE(R) FUND BOND FUND
Year ended Year ended Year ended
October 31, October 31, October 31,
1994 1995 1994
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income 16,124,477 8,946,837 10,039,591
Net realized gain (loss) on investments 54,955,514 (2,695,214) (3,275,139)
Net change in unrealized appreciation
or depreciation of investments (36,714,534) 17,358,003 (21,529,309)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 34,365,457 23,609,626 (14,764,857)
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (15,780,374) (8,917,890) (9,959,079)
In excess of net investment income -- -- --
Net realized gain from investment transactions (36,595,335) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (52,375,709) (8,917,890) (9,959,079)
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sale of shares 50,856,698 14,412,502 28,154,927
Net asset value of shares issued to shareholders
from reinvestment of dividends and distributions 45,212,587 7,950,830 7,721,021
Cost of shares redeemed (124,624,457) (27,877,661) (37,787,286)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets derived
from capital share transactions (28,555,172) (5,514,329) (1,911,338)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (46,565,424) 9,177,407 (26,635,274)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS--BEGINNING OF PERIOD 753,239,303 124,455,177 151,090,451
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD 706,673,879 133,632,584 124,455,177
=============================================================================================================================
Undistributed net realized gain (loss) on invest-
ments included in net assets at end of period (note 1) 54,955,514 (9,354,044) (6,658,830)
=============================================================================================================================
Undistributed (distributions in excess of) net
investment income included in net assets at end of period (note 1) 921,430 109,459 21,989
=============================================================================================================================
Shares sold 3,166,276 1,613,435 2,978,894
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders from reinvest-
ment of dividends and distributions 2,839,676 892,591 837,630
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (7,673,580) (3,144,695) (4,114,452)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in number of shares (1,667,628) (638,669) (297,928)
=============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 19
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
NATIONWIDE(R) NATIONWIDE(R) NATIONWIDE(R)
TAX-FREE INCOME FUND U.S. GOV'T INCOME FUND MONEY MARKET FUND
Year ended Year ended Year ended Year ended Year ended Year ended
October 31, October 31, October 31, October 31, October 31, October 31,
1995 1994 1995 1994 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 13,060,318 12,693,760 2,266,549 2,181,294 29,238,839 14,842,124
Net realized gain (loss) on investments (3,951,178) (1,355,903) 70,730 (506,810) 4,106 1,310
Net change in unrealized appreciation
or depreciation of investments 24,981,359 (34,497,354) 3,505,345 (3,400,389) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 34,090,499 (23,159,497) 5,842,624 (1,725,905) 29,242,945 14,843,434
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (13,407,484) (12,754,708) (2,266,549) (2,213,397) (29,239,264) (14,841,684)
In excess of net investment income -- -- -- -- (6,587) --
Net realized gain from investment
transactions -- (2,730,484) -- (290,611) -- (1,282)
Paid in capital -- -- (14,726) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (13,407,484) (15,485,192) (2,281,275) (2,504,008) (29,245,851) (14,842,966)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sale of shares 18,662,663 43,480,776 3,165,132 8,821,355 626,666,560 548,491,123
Net asset value of shares issued to
shareholders from reinvestment of
dividends and distributions 10,382,144 10,818,456 1,830,091 1,705,923 29,971,841 12,268,547
Cost of shares redeemed (28,340,872) (27,599,621) (6,528,260) (7,000,815) (543,661,512) (487,638,311)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets derived
from capital share transactions 703,935 26,699,611 (1,533,037) 3,526,463 112,976,889 73,121,359
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 21,386,950 (11,945,078) 2,028,312 (703,450) 112,973,983 73,121,827
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - BEGINNING OF PERIOD 241,096,653 253,041,731 37,748,858 38,452,108 491,736,905 418,615,078
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - END OF PERIOD $262,483,603 241,096,653 39,776,970 37,748,658 604,710,888 491,736,905
====================================================================================================================================
Undistributed net realized gain (loss) on
investments included in net assets at end
of period (note 1) $ (5,307,081) (1,355,903) (436,080) (506,810) 4,106 --
====================================================================================================================================
Undistributed (distributions in excess of)
net investment income included in net
assets at end of period (note 1) $ 5,235 352,401 -- (35,184) (6,587) 425
====================================================================================================================================
Shares sold 1,898,854 4,201,850 326,609 893,369 626,666,560 548,491,123
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders from reinvest-
ment of dividends and distributions 1,056,582 1,052,029 189,664 174,751 29,971,841 12,268,547
- ------------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (2,901,957) (2,727,527) (681,184) (720,169) (543,661,512) (487,638,311)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in number of shares 53,479 2,526,352 (164,911) 347,951 112,976,889 73,121,359
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements
19
<PAGE> 20
<TABLE>
<CAPTION>
Financial Highlights Selected data for each share of capital stock outstanding throughout each period.
NATIONWIDE(R) GROWTH FUND
Years ended October 31
1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $11.35 11.14 9.94 9.57 7.34
- ----------------------------------------------------------------------------------------------------
Net investment income .21 .09 .17 .20 .22
- ----------------------------------------------------------------------------------------------------
Net realized gain (loss) and
unrealized appreciation
(depreciation) 2.10 .53 1.41 .46 2.77
- ----------------------------------------------------------------------------------------------------
Total from investment operations 2.31 .62 1.58 .66 2.99
- ----------------------------------------------------------------------------------------------------
Dividends from net investment income (.20) (.19) (.17) (.20) (.25)
- ----------------------------------------------------------------------------------------------------
Distributions from net realized gain
from investment transactions (.24) (.22) (.21) (.09) (.51)
- ----------------------------------------------------------------------------------------------------
Total distributions (.44) (.41) (.38) (.29) (.76)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset
value 1.87 .21 1.20 .37 2.23
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE--
END OF PERIOD $13.22 11.35 11.14 9.94 9.57
- ----------------------------------------------------------------------------------------------------
Total Return 21.0% 5.7% 16.2% 6.9% 43.4%
- ----------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) $582,927 464,715 411,853 330,850 277,019
- ----------------------------------------------------------------------------------------------------
Ratio of expenses to average net
assets .66% .68% .68% .65% .68%
- ----------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets 1.66% 1.71% 1.63% 1.97% 2.54%
- ----------------------------------------------------------------------------------------------------
Portfolio turnover 27.1% 14.5% 10.2% 13.1% 12.4%
- ----------------------------------------------------------------------------------------------------
<CAPTION>
NATIONWIDE(R) FUND
Years ended October 31
1995 1994 1993 1992 1991
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD 16.12 16.55 16.31 15.77 12.32
- -----------------------------------------------------------------------------------------------
Net investment income .31 .37 .31 .37 .38
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) and
unrealized appreciation
(depreciation) 2.49 .41 .67 .98 3.97
- -----------------------------------------------------------------------------------------------
Total from investment operations 2.80 .78 .98 1.35 4.35
- -----------------------------------------------------------------------------------------------
Dividends from net investment income (.31) (.36) (.33) (.36) (.40)
- -----------------------------------------------------------------------------------------------
Distributions from net realized gain
from investment transactions (1.26) (.85) (.41) (.45) (.50)
- -----------------------------------------------------------------------------------------------
Total distributions (1.57) (1.21) (.74) (.81) (.90)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net asset
value 1.23 (.43) .24 .54 3.45
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE--
END OF PERIOD 17.35 16.12 16.55 16.31 15.77
- -----------------------------------------------------------------------------------------------
Total Return 19.2% 4.9% 6.2% 8.7% 36.5%
- -----------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 795,666 706,674 753,239 726,012 620,113
- -----------------------------------------------------------------------------------------------
Ratio of expenses to average net
assets .63% .63% .62% .61% .61%
- -----------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets 1.95% 2.26% 1.96% 2.32% 2.56%
- -----------------------------------------------------------------------------------------------
Portfolio turnover 16.5% 15.4% 25.8% 12.8% 13.6%
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R) BOND FUND
Years ended October 31
1995 1994 1993 1992 1991
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $8.46 10.07 9.58 9.46 8.99
- ------------------------------------------------------------------------------------------------------
Net investment income .63 .60 .74 .76 .85
- ------------------------------------------------------------------------------------------------------
Net realized gain (loss) and
unrealized appreciation (depreciation) 1.04 (1.56) .52 .23 .45
- ------------------------------------------------------------------------------------------------------
Total from investment operations 1.67 (.96) 1.26 .99 1.30
- ------------------------------------------------------------------------------------------------------
Dividends from net investment income (.63) (.65) (.77) (.85) (.83)
- ------------------------------------------------------------------------------------------------------
Distribution from paid in capital -- -- -- (.02) --
- ------------------------------------------------------------------------------------------------------
Total distributions (.63) (.65) (.77) (.87) (.83)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value 1.04 (1.61) .49 .12 .47
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE--
END OF PERIOD $9.50 8.46 10.07 9.58 9.46
- ------------------------------------------------------------------------------------------------------
Total Return 20.4% (9.8%) 13.6% 10.9% 15.1%
- ------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) $133,633 124,455 151,090 90,187 54,187
- ------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets .71% .71% .68% .65% .67%
- ------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets 7.04% 7.11% 7.63% 8.63% 9.13%
- ------------------------------------------------------------------------------------------------------
Portfolio turnover 70.4% 58.0% 68.5% 100.8% 93.6%
- ------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
<TABLE>
<CAPTION>
Financial Highlights Selected data for each share of capital stock outstanding throughout each period.
NATIONWIDE(R) TAX-FREE INCOME FUND
Years ended October 31
1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD $ 9.40 10.95 9.94 9.81 9.31
- -------------------------------------------------------------------------------------------------
Net investment income .51 .53 .54 .56 .58
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) and
unrealized appreciation (depreciation) .84 (1.45) 1.10 .13 .50
- -------------------------------------------------------------------------------------------------
Total from investment operations 1.35 (.92) 1.64 .69 1.08
- -------------------------------------------------------------------------------------------------
Dividends from net investment income (.53) (.51) (.54) (.56) (.58)
- -------------------------------------------------------------------------------------------------
Distributions from net realized gain
from investment transactions -- (.12) (.09) -- --
- -------------------------------------------------------------------------------------------------
Total distributions (.53) (.63) (.63) (.56) (.58)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value .82 (1.55) 1.01 .13 .50
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE--
END OF PERIOD $ 10.22 9.40 10.95 9.94 9.81
- -------------------------------------------------------------------------------------------------
Total Return 14.7% (8.7%) 17.0% 7.2% 11.9%
- -------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) $262,484 241,097 253,042 170,650 122,005
- -------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets .98% .99% .98% .98% 1.01%
- -------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets ** 1.13% 1.14% 1.13% 1.13% 1.16%
- -------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets 5.20% 5.02% 5.07% 5.62% 6.05%
- -------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets ** 5.05% 4.87% 4.92% 5.47% 5.90%
- -------------------------------------------------------------------------------------------------
Portfolio turnover 31.7% 59.2% 28.4% 69.8% 45.5%
- -------------------------------------------------------------------------------------------------
<CAPTION>
NATIONWIDE(R) U.S. GOV'T INCOME FUND
Years ended October 31 Period from 2/10/92
--------------------------- (inception date)
1995 1994 1993 thru 10/31/92
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE--
BEGINNING OF PERIOD 9.22 10.26 9.97 10.00
- --------------------------------------------------------------------------------------------------
Net investment income .59 .54 .53 .46
- --------------------------------------------------------------------------------------------------
Net realized gain (loss) and
unrealized appreciation (depreciation) .89 (.96) .45 (.03)
- --------------------------------------------------------------------------------------------------
Total from investment operations 1.48 (.42) .98 .43
- --------------------------------------------------------------------------------------------------
Dividends from net investment income (.58) (.55) (.53) (.46)
- --------------------------------------------------------------------------------------------------
Distributions from net realized gain
from investment transactions -- (.07) (.16) --
- --------------------------------------------------------------------------------------------------
Total distributions (.58) (.62) (.69) (.46)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value .90 (1.04) .29 (.03)
- --------------------------------------------------------------------------------------------------
NET ASSETS VALUE--
END OF PERIOD 10.12 9.22 10.26 9.97
- --------------------------------------------------------------------------------------------------
Total Return 16.5% (4.2%) 10.2% 7.26%*
- --------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 39,777 37,749 38,452 18,211
- --------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.08% 1.09% 1.10% 1.00%*
- --------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets ** 1.23% 1.24% 1.25% 1.17%*
- --------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets 5.92% 5.62% 5.12% 6.38%*
- --------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets ** 5.77% 5.47% 4.97% 6.21%*
- --------------------------------------------------------------------------------------------------
Portfolio turnover 25.4% 67.5% 99.0% 157.4%
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NATIONWIDE(R) MONEY MARKET FUND
Years ended October 31
-------------------------------------------------------------
1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE --
BEGINNING OF PERIOD $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------
Net investment income .05 .03 .03 .03 .06
- ---------------------------------------------------------------------------------------------------------------
Dividends from net investment income (.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
- ---------------------------------------------------------------------------------------------------------------
Total Return 5.5% 3.3% 2.6% 3.5% 6.1%
- ---------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) $604,711 491,737 418,615 488,998 594,987
- ---------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets .62% .65% .70% .71% .71%
- ---------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets ** .67% .70% .73% .71% .71%
- ---------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets 5.34% 3.33% 2.57% 3.50% 5.97%
- ---------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets ** 5.29% 3.28% 2.54% 3.50% 5.97%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
*Total returns and ratios are annualized for periods of less than one year.
**Ratios calculated as if no expenses were waived.
See accompanying notes to financial statements.
21
<PAGE> 22
October 31, 1995 -- Notes to Financial Statement, 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 fund within 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 or constant yield
amortization of premium or discount.
DIVIDENDS TO SHAREHOLDERS
Dividends are recorded on the ex-dividend date for the Growth Fund and
Nationwide Fund.
The Bond, Tax-Free Income, U.S. Government Income, and Money Market Funds
declare income dividends daily and pay dividends 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)
Bond 58,523 (58,523)
U.S. Gov't Income 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, 1994 through October 31, 1995,
or $273,950 representing $.0005 per average share outstanding.
NFS provides administrative and accounting services to the funds. As
compensation for these services, NFS receives an annual fee of $48,000 from
NIF.
NFS also receives fees (sales charges) 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 and other
distribution expenses. Such fees aggregated $609,266 on Growth Fund shares,
$520,812 on Nationwide Fund shares, and $131,140 on Bond Fund shares for the
year ended October 31, 1995.
(b) Tax-Free Income, and U.S. Gov't Income Funds
As investment manager for each NIF-II Fund, NFS receives 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
year ended October 31, 1995.
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 year ended October 31, 1995,
each Fund paid distribution fees at the annual rate of .20% of average daily net
assets, with the distributor waiving the remaining .15%. During year ended
October 31, 1995, NFS waived $376,581 and $57,407 for both the Tax-Free Income
and U.S. Government Income Funds, representing $.015 and $.014 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 $234,339 on the Tax-Free Income Fund shares and $72,664
on the U.S. Government Income Fund shares for the year ended October 31, 1995.
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 The NIF and NIF II Trusts have unsecured bank lines of credit of $12,000,000
and $2,250,000, respectively. Borrowings under these arrangements bear interest
at the Federal Funds rate plus .50%. No compensating balances are required.
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 year
ended October 31, 1995 are summarized as follows:
<TABLE>
<CAPTION>
Purchases Sales
<S> <C> <C>
Growth .............. $119,518,139 120,241,783
NW Fund ............. 109,262,204 145,653,985
Bond ................ 85,237,410 88,340,919
Tax-Free Income ..... 78,571,457 80,392,065
U.S. Gov't Income ... -- 1,232,575
Money Market ........ -- --
</TABLE>
U.S. Government Obligations
<TABLE>
<CAPTION>
Purchases Sales
<S> <C> <C>
Growth .............. $232,247,757 212,837,652
NW Fund ............. 9,710,938 10,012,500
Bond ................ 2,000,000 3,120,313
Tax-Free Income ..... 10,429,189 11,414,201
U.S. Gov't Income ... -- --
Money Market ........ 85,199,266 77,634,071
</TABLE>
Realized gains and losses have been computed on the first-in, first-out basis.
Included in net unrealized appreciation (depreciation) at October 31, 1995 are
the following components:
<TABLE>
<CAPTION>
Net unrealized
Unrealized Unrealized appreciation
gains losses (depreciation)
<S> <C> <C> <C>
Growth ............. $149,975,275 (11,287,950) 138,687,325
NW Fund ............ 263,265,064 (17,089,006) 246,176,058
Bond ............... 5,169,473 (452,401) 4,717,072
Tax-Free Income .... 12,726,453 (568,345) 12,158,108
U.S. Gov't Income .. 985,117 (160,588) 797,529
</TABLE>
22
<PAGE> 23
The Shareholders and Boards of Trustees of The Nationwide Investing Foundation
and The Nationwide Investing Foundation II:
(Page 23, Independent Auditors' Report)
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of The Nationwide Investing Foundation--
Nationwide Growth Fund, Nationwide Fund, Nationwide Bond Fund, Nationwide
Money Market Fund--and of The Nationwide Investing Foundation II--Nationwide
Tax-Free Income Fund and Nationwide U.S. Government Income Fund--as of
October 31, 1995, and the related statements of operations, statements of
changes in net assets and financial highlights for each of the periods
indicated herein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification of securities owned as of
October 31, 1995 by confirmation with the custodian and other appropriate audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds comprising The Nationwide Investing Foundation and
The Nationwide Investing Foundation II as of October 31, 1995, the results of
their operations, the changes in their net assets and the financial highlights
for each of the periods indicated herein, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
December 8, 1995
23
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Nationwide Family of Funds
TRUSTEES
PETER F. FRENZER - Nationwide Investing
Foundation (NIF) & Nationwide Investing
Foundation II (NIF II)
Chairman
Columbus, Ohio
JOHN C. BRYANT - NIF & NIF II
Wilmington, Ohio
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
THOMAS J. KERR, IV - NIF & NIF II
Evanston, Illinois
D. RICHARD MCFERSON - NIF & NIF II
Columbus, Ohio
ROBERT H. RICKEL - NIF
Bayview, Idaho
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
KATHERINE E. LAVERENTZ
Assistant Treasurer
WILLIAM M. WRIGHT
Assistant Treasurer
PETER NECKERMANN
Assistant Treasurer
HARRY A. SCHERMER
Assistant Treasurer
CRAIG A. CARVER
Assistant Treasurer
WILLIAM G. GOSLEE
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
OUR SHAREHOLDER FAMILY...
AS SHOWN ON THE COVER
Raymond Clouse, custodian for:
Alex Denmeade,
Michael Clouse,
Sarah Clouse,
Hayley Denmeade--
Growth Fund shareholders
Urby & Susan Potvin--
Growth Fund
children: Justin (front)
Michael (back), Bethany (left),
Anne-Marie (right)
Don & Ruth McKay--
Nationwide Fund,
Money Market Fund
Dorothy and Gertrude Nyland--
Nationwide Fund
Jacqueline Griggs,
custodian for:
Lauren Griggs
(right front)--
Growth Fund
Keisha Jennifer
Fedrick-- Baker-- Janet
Growth Growth Baker--
Fund Fund & Nationwide
Money Fund
Market
Nationwide(R) and [LOGO] are registered Federal Service marks of the Nationwide
Mutual Insurance Company.
NATIONWIDE FAMILY OF FUNDS BULK RATE
ONE NATIONWIDE PLAZA U.S. POSTAGE
COLUMBUS OHIO 43215-2220 PAID
COLUMBUS, OHIO
PERMIT NO. 492
October 1995
ANNUAL REPORT
24
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