<PAGE> 1
SUPPLEMENT DATED MAY 30, 1997
TO
PROSPECTUS DATED FEBRUARY 28, 1997
NATIONWIDE INVESTING FOUNDATION
NATIONWIDE INVESTING FOUNDATION II
REGARDING THE NATIONWIDE(R) BOND FUND
On page 8 of the prospectus, under Performance, the line graph and
accompanying text for the Nationwide(R) Bond Fund is hereby deleted in its
entirety and replaced by the following:
<TABLE>
<CAPTION>
[GRAPH]
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LB LT Govt./Corp.* 9,916 10,881 12,789 13,614 16,273 17,661 20,515 19,061 24,769 24,804
LB Govt./Corp.* 10,229 11,004 12,570 13,611 15,806 17,004 18,878 18,216 21,720 22,350
Bond 9,576 10,358 11,468 12,411 14,506 15,663 17,342 15,937 19,786 20,080
CPI** 10,442 10,903 11,408 12,121 12,482 12,852 13,204 13,547 13,899 14,358
</TABLE>
The index for the Fund is being changed from the Lehman Brothers Long-Term
Govt./Corp. Bond Index to the Lehman Brothers Govt./Corp. Index because it
better represents the investment policies of the Fund for comparison purposes.
* The Lehman Brothers Govt./Corp. and Long-Term Govt./Corp. Bond Indexes
represent an unmanaged group of bonds that are not adjusted for expenses and
include bonds of lower quality than the Bond Fund.
** The CPI is a broad index reflecting price changes in a market basket of
goods, and unlike the funds, does not reflect any expenses.
Past results are not a guarantee of future performance. Investment results and
principal will fluctuate, and when redeemed, shares may be worth more or less
than original cost.
On page 11 of the prospectus, under Objectives, Management, Performance &
Holdings for the Bond Fund, the second sentence of the first paragraph is hereby
deleted in its entirety and replaced by the following:
The Fund seeks to serve those who are less willing to accept the risks
associated with stocks through investment in income obligations, including
corporate debt securities, United States and Canadian Government obligations and
commercial paper. The average maturity of the Fund will be intermediate, which
is defined as being between 7 and 9 years.
On page 11 of the prospectus, under Investment Objective & Policy, the second
bullet point is hereby deleted in its entirety and replaced by the following.
Intermediate maturities-yields are usually higher than short-term funds, but
with lower volatility of returns than long-term funds.
On page 11 of the prospectus, under Portfolio Management, the following is
hereby added as the new second and third paragraphs:
The Fund may invest up to 10% of the portfolio in securities rated BBB by
Standard & Poor's Corporation or of comparable quality by Moody's Investor's
Service, Inc. These securities are commonly referred to as medium-grade
securities. Securities in this ratings group are considered by Moody's to have
some speculative characteristics, while interest payments and principal security
appear adequate for present, such securities lack certain protective elements or
may be characteristically unreliable over any great period of time.
Should subsequent events cause the rating of BBB securities to fall below this
rating, the Fund's Investment Manager, Nationwide Advisory Services, Inc. will
consider such an event in determining whether the Fund should continue to hold
that security. In no event, however, would the Fund be required to liquidate any
portfolio security where the Fund would suffer a loss on the sale of such
security.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR FURTHER REFERENCE.
<PAGE> 2
SUPPLEMENT DATED MAY 30, 1997
TO
PROSPECTUS DATED FEBRUARY 28, 1997
NATIONWIDE INVESTING FOUNDATION
NATIONWIDE INVESTING FOUNDATION II
REGARDING THE
NATIONWIDE(R) U.S. GOVERNMENT INCOME FUND
On page 8 of the prospectus, under Performance, the line graph and accompanying
text for the Nationwide(R) Bond Fund is hereby deleted in its entirety and
replaced by the following
<TABLE>
<CAPTION>
[GRAPH]
1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C>
ML GM* 10,847 11,999 11,612 13,738 14,117
LB GB* 10,763 11,643 11,439 13,087 13,618
U.S. GI 10,638 11,577 11,165 13,241 13,581
CPI** 10,267 10,548 10,822 11,103 11,470
</TABLE>
The index for the Fund is being changed from the Lehman Brothers Long-Term
Intermediate Government Bond Index to the Merrill Lynch Government Master Index
because it better represents the investment policies of the Fund for comparison
purposes.
Period from 2/10/92 (USGI inception) through 12/31/96.
* The Merrill Lynch Government Master Index and the Lehman Brothers
Intermediate Government Bond Index represent an unmanaged group of bonds that
are not adjusted for expenses and include bonds of lower quality than the
U.S. GI Fund. The Merrill Lynch Government Master Index better represents the
investment policies of the Fund for comparison purposes.
** The CPI is a broad index reflecting price changes in a market basket of
goods, and unlike the funds, does not reflect any expenses.
Past results are not a guarantee of future performance. Investment results and
principal will fluctuate, and when redeemed, shares may be worth more or less
than original cost.
Please see other side
PLEASE KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR FURTHER REFERENCE.
<PAGE> 3
The following language shall be inserted on page three of the Statement of
Additional Information above the heading "-Cash and cash equivalents."
As stated in the Prospectus, the Nationwide Bond Fund may, invest up to 10% of
the portfolio in securities rated BBB by Standard & Poor's Corporation or of
comparable quality by Moody's Investors Service, Inc. These securities are
commonly referred to as medium-grade securities.
As with other fixed-income securities, medium-grade securities are subject to
credit risk and market risk. Market risk relates to changes in a security's
value as a result of changes in interest rates. Credit risk relates to the
ability of the issuer to make payments of principal and interest. Medium-grade
securities are considered by Moody's to have speculative characteristics.
Medium-grade securities are generally subject to greater credit risk than
comparable higher-rated securities because issuers are more vulnerable to
economic downturns, higher interest rates or adverse issuer-specific
developments. The value and liquidity of medium-grade securities may be
diminished by adverse publicity and investor perceptions.
Some medium-grade securities in which the Nationwide Bond Fund may invest in
may be subject to redemption or call provisions that may limit increases in
market value that might otherwise result from lower interest rates while
increasing the risk that the Nationwide Bond Fund may be required to reinvest
redemption or call proceeds during a period of relatively low interest rates.
The credit ratings issued by NRSROs are subject to various limitations. For
example, while such ratings evaluate credit risk, they ordinarily do not
evaluate the market risk of medium-grade securities. In certain circumstances,
the ratings may not reflect in a timely fashion adverse developments affecting
an issuer. For these reasons, the investment advisor conducts its own
independent credit analysis of medium-grade securities.
The following shall be inserted on page 46 of the Statement of Additional
Information at the end of the page.
Bonds BBB are regarded as having an adequate capacity to pay interest and repay
principal. Whereas it normally exhibits adequate protection parameters, adverse
economic conditions or changing circumstances are more likely to lead to a
weakened capacity to repay principal for debt in this category than in higher
rated categories.
