UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File number: 811-08495
NATIONWIDE MUTUAL FUNDS
(Exact name of registrant as specified in charter)
1000 CONTINENTAL DRIVE, SUITE 400, KING OF PRUSSIA, PENNSYLVANIA 19406-2850
(Address of principal executive offices) (Zip code)
Eric E. Miller, Esq.
1000 Continental Drive
Suite 400
King of Prussia, Pennsylvania 19406-2850
(Name and address of agent for service)
Registrants telephone number, including area code: (610) 230-2839
Date of fiscal year end: October 31, 2014
Date of reporting period: November 1, 2013 through October 31, 2014
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than ten (10) days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 C.F.R. § 270.30e-1). The Commission may use the information provided on Form N-CSR in the Commissions regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D. C. 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Explanatory Note:
This Form N-CSR/A for Nationwide Mutual Funds (the Registrant) is being filed solely to reflect the addition of the Statement of Cash Flows for Nationwide Investor Destinations Conservative Fund (Investor Destinations Fund) within Item 1 Reports to Stockholders which were caused by a technical correction. After issuing Investor Destinations Funds October 31, 2014 financial statements, fund management became aware of a technical correction that requires Investor Destinations Fund to present a Statement of Cash Flows in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 230 (ASC 230). Prior to the technical correction, ASC 230 required that substantially all Investor Destinations Funds investments must be carried at fair value and classified as liquid to be exempt from having to provide a Statement of Cash Flows. The technical update to ASC 230 now requires that substantially all of Investor Destinations Funds investments must be carried at fair value and classified as level 1 or level 2 measurements, in accordance with the valuation hierarchy, in order to be exempt from presenting the Statement of Cash Flows. Investor Destinations Funds financial statements for the year ended October 31, 2014 did not present the Statement of Cash Flows. Fund Management has decided to restate the October 31, 2014 financial statements to include the Statement of Cash Flows because Investor Destinations Fund did not have substantially all of the Funds holdings classified as level 1 and level 2 securities in that it held a significant portion of its holdings in a level 3 security within the hierarchy. The annual reports for the other portfolios of the Registrant are contained in the Form N-CSR filed on December 29, 2014 (Accession Number 0001193125-14-455374) and are not amended or modified in any way by this Form N-CSR/A. Other than the aforementioned amendment, no other information or disclosures contained in the Registrants Form N-CSR filed on December 29, 2014 are being amended by this Form N-CSR/A.
Item 1. Reports to Stockholders.
Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 C.F.R. § 270.30e-1).
Annual Report
October 31, 2014
Nationwide Mutual Funds
Investor Destinations Funds
Nationwide Investor Destinations Aggressive Fund
Nationwide Investor Destinations Moderately Aggressive Fund
Nationwide Investor Destinations Moderate Fund
Nationwide Investor Destinations Moderately Conservative Fund
Nationwide Investor Destinations Conservative Fund
Nationwide Funds® |
Commentary in this report is provided by the portfolio manager(s) of each Fund as of the date of this report and is subject to change at any time based on market or other conditions.
Third-party information has been obtained from sources that Nationwide Fund Advisors (NFA), the investment adviser to the Funds, deems reliable. This report and the holdings provided are for informational purposes only and are not intended to be relied on as investment advice. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. NFA, one of its affiliated advisers or its employees may hold a position in the securities in this report.
Statement Regarding Availability of Quarterly Portfolio Holdings.
The Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. Additionally, the Trust files a schedule of portfolio holdings monthly for the Nationwide Money Market Fund on Form N-MFP. Forms N-Q and Forms N-MFP are available on the SECs website at http://www.sec.gov. Forms N-Q and Forms N-MFP may be reviewed and copied at the SECs Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. The Trust also makes this information available to shareholders on nationwide.com/mutualfunds or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800-848-0920, and on the SECs website at http://www.sec.gov.
Nationwide Funds® Annual Report |
Nationwide Funds®
October 31, 2014
Dear Investor,
At Nationwide®, we pride ourselves on our dedication to helping America prepare for and live in retirement. Three-time Super Bowl-winning coach Joe Gibbs likes to say that A winning effort begins with preparation. We agree. It is satisfying to help investors work with financial advisors to begin to plan for a stable future. Even more gratifying is to watch investors progress through the years and ultimately reach retirement with the confidence and resources to thrive.
You may have noticed that the Nationwide logo has changed. Rest assured that we are still the same solid company with an 85-year history of looking out for our customers. During the past several months we have taken deliberate steps to more fully align as one company. As we begin the transition to one brand, we will be known as one business one Nationwide offering insurance, banking and financial services and products with operations in all 50 states. We believe that as one company we will be even better positioned to put you first.
During the one-year reporting period ended October 31, 2014, most Nationwide mutual funds performed well. The broad U.S. stock market performance as measured by the S&P 500® Index grew 17.27% for the period, with all sectors reporting positive returns. The Barclays U.S. Aggregate Bond Index, a broad measurement of U.S. fixed-income investment performance, returned 4.14% for the period.
This report brings you information about market trends during the one-year reporting period as well as your funds specific holdings and performance. You also can read insights from Nationwides portfolio management partners and analysts.
We are here for the long term, poised to help you prepare for your winning effort. As always, thank you for your investment in Nationwide funds.
Sincerely,
Michael S. Spangler
President & CEO
Nationwide Funds
1
Economic Review |
2
Economic Review (Cont.) |
3
Fund Commentary | Nationwide Investor Destinations Aggressive Fund |
4
Fund Commentary (cont.) |
Nationwide Investor Destinations Aggressive Fund |
5
Fund Overview | Nationwide Investor Destinations Aggressive Fund |
| Percentages indicated are based upon net assets as of October 31, 2014. |
| Percentages indicated are based upon total investments as of October 31, 2014. |
6
Fund Performance | Nationwide Investor Destinations Aggressive Fund |
7
Fund Performance (cont.) | Nationwide Investor Destinations Aggressive Fund |
Performance of a $50,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $50,000 invested in Service Class shares of the Nationwide Investor Destinations Aggressive Fund versus the Russell 3000® Index, the Barclays U.S. Aggregate Bond Index, the MSCI EAFE® Index, the Composite Index* and the Consumer Price Index (CPI) over the 10-year period ended 10/31/14. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes. A description of the benchmarks can be found on the Market Index Definitions page at the back of this book.
* | The Composite Index comprises 60% Russell 3000® Index, 30% MSCI EAFE® Index and 10% Barclays U.S. Aggregate Bond Index. |
8
Shareholder Expense Example | Nationwide Investor Destinations Aggressive Fund |
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
Nationwide Investor Destinations October 31, 2014 |
Beginning Account Value ($) 05/01/14 |
Ending Account Value ($) 10/31/14 |
Expenses Paid During Period ($) 05/01/14 - 10/31/14(a) |
Expense Ratio During Period (%) 05/01/14 - 10/31/14(a) | ||||||||
Class A Shares | Actual | (b) | 1,000.00 | 1,025.30 | 2.81 | 0.55 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.43 | 2.80 | 0.55 | |||||||
Class C Shares | Actual | (b) | 1,000.00 | 1,021.40 | 6.47 | 1.27 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,018.80 | 6.46 | 1.27 | |||||||
Class R Shares(d) | Actual | (b) | 1,000.00 | 1,023.50 | 4.23 | 0.83 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,021.02 | 4.23 | 0.83 | |||||||
Institutional Service Class Shares | Actual | (b) | 1,000.00 | 1,027.00 | 1.07 | 0.21 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.15 | 1.07 | 0.21 | |||||||
Institutional Class Shares | Actual | (b) | 1,000.00 | 1,027.00 | 0.92 | 0.18 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.30 | 0.92 | 0.18 | |||||||
Service Class Shares | Actual | (b) | 1,000.00 | 1,024.30 | 2.96 | 0.58 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.28 | 2.96 | 0.58 |
(a) | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. |
(b) | Expenses are equal to the Funds annualized expense ratio multiplied by the average account value from May 1, 2014 through October 31, 2014 multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with Securities and Exchange Commission guidelines. |
(c) | Represents the hypothetical 5% return before expenses. |
(d) | Effective March 3, 2014 Class R2 Shares were renamed Class R Shares. |
9
Statement of Investments
October 31, 2014
Nationwide Investor Destinations Aggressive Fund
The accompanying notes are an integral part of these financial statements.
10
Statement of Assets and Liabilities
October 31, 2014
Nationwide Investor Destinations Aggressive Fund | ||||||
Assets: |
||||||
Investments in affiliates, at value (cost $954,985,273) |
$ | 1,247,183,022 | ||||
Receivable for investments sold |
461,014 | |||||
Receivable for capital shares issued |
707,713 | |||||
Prepaid expenses |
30,353 | |||||
|
|
|||||
Total Assets |
1,248,382,102 | |||||
|
|
|||||
Liabilities: |
||||||
Payable for capital shares redeemed |
1,135,478 | |||||
Accrued expenses and other payables: |
||||||
Investment advisory fees |
132,947 | |||||
Fund administration fees |
29,105 | |||||
Distribution fees |
294,507 | |||||
Administrative servicing fees |
196,020 | |||||
Accounting and transfer agent fees |
7,948 | |||||
Trustee fees |
3,727 | |||||
Custodian fees |
3,849 | |||||
Compliance program costs (Note 3) |
367 | |||||
Professional fees |
20,059 | |||||
Printing fees |
7,066 | |||||
Other |
3,897 | |||||
|
|
|||||
Total Liabilities |
1,834,970 | |||||
|
|
|||||
Net Assets |
$ | 1,246,547,132 | ||||
|
|
|||||
Represented by: |
||||||
Capital |
$ | 949,736,755 | ||||
Accumulated net realized gains from affiliated investments |
4,612,628 | |||||
Net unrealized appreciation/(depreciation) from investments in affiliates |
292,197,749 | |||||
|
|
|||||
Net Assets |
$ | 1,246,547,132 | ||||
|
|
|||||
Net Assets: |
||||||
Class A Shares |
$ | 61,402,299 | ||||
Class C Shares |
76,857,144 | |||||
Class R Shares |
106,558,652 | |||||
Institutional Service Class Shares |
3,569,632 | |||||
Institutional Class Shares |
146,720,517 | |||||
Service Class Shares |
851,438,888 | |||||
|
|
|||||
Total |
$ | 1,246,547,132 | ||||
|
|
|||||
Shares Outstanding (unlimited number of shares authorized): |
||||||
Class A Shares |
5,335,143 | |||||
Class C Shares |
6,840,512 | |||||
Class R Shares |
9,410,492 | |||||
Institutional Service Class Shares |
309,897 | |||||
Institutional Class Shares |
12,623,756 | |||||
Service Class Shares |
73,879,402 | |||||
|
|
|||||
Total |
108,399,202 | |||||
|
|
|||||
11
Statement of Assets and Liabilities (Continued)
October 31, 2014
Nationwide Investor Destinations Aggressive Fund | ||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): |
||||||
Class A Shares (a) |
$ | 11.51 | ||||
Class C Shares (b) |
$ | 11.24 | ||||
Class R Shares |
$ | 11.32 | ||||
Institutional Service Class Shares |
$ | 11.52 | ||||
Institutional Class Shares |
$ | 11.62 | ||||
Service Class Shares |
$ | 11.52 | ||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): |
||||||
Class A Shares |
$ | 12.21 | ||||
|
|
|||||
Maximum Sales Charge: |
||||||
Class A Shares |
5.75 | % | ||||
|
|
|||||
(a) | For Class A Shares that were purchased without a sales charge because such purchase exceeded $1,000,000, a contingent deferred sales charge of 1.00% may apply to any redemption of such shares within 18 months of their purchase. |
(b) | For Class C Shares, the redemption price per share is reduced by a contingent deferred sales charge of 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
12
Statement of Operations
For the Period Ended October 31, 2014
Nationwide Investor Destinations Aggressive Fund | ||||||
INVESTMENT INCOME: |
||||||
Dividend income from affiliates |
$ | 25,467,882 | ||||
|
|
|||||
Total Income |
25,467,882 | |||||
|
|
|||||
EXPENSES: |
||||||
Investment advisory fees |
1,625,106 | |||||
Fund administration fees |
346,574 | |||||
Distribution fees Class A |
159,324 | |||||
Distribution fees Class B (a) |
10,760 | |||||
Distribution fees Class C |
758,233 | |||||
Distribution fees Class R (b) |
541,769 | |||||
Distribution fees Service Class |
2,169,839 | |||||
Administrative servicing fees Class A |
66,857 | |||||
Administrative servicing fees Class C |
44,347 | |||||
Administrative servicing fees Class R (b) |
162,531 | |||||
Administrative servicing fees Institutional Service Class (c) |
90 | |||||
Administrative servicing fees Service Class |
1,301,910 | |||||
Registration and filing fees |
77,561 | |||||
Professional fees |
67,420 | |||||
Printing fees |
23,272 | |||||
Trustee fees |
39,186 | |||||
Custodian fees |
47,064 | |||||
Accounting and transfer agent fees |
66,195 | |||||
Compliance program costs (Note 3) |
3,564 | |||||
Other |
33,953 | |||||
|
|
|||||
Total expenses before earnings credit |
7,545,555 | |||||
|
|
|||||
Earnings credit (Note 5) |
(17 | ) | ||||
|
|
|||||
Net Expenses |
7,545,538 | |||||
|
|
|||||
NET INVESTMENT INCOME |
17,922,344 | |||||
|
|
|||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: |
||||||
Net realized gain distributions from underlying affiliated funds |
44,599,831 | |||||
Net realized gains from investment transactions with affiliates |
10,205,754 | |||||
|
|
|||||
Net realized gains from affiliated investments |
54,805,585 | |||||
|
|
|||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
20,878,150 | |||||
|
|
|||||
Net realized/unrealized gains from affiliated investments |
75,683,735 | |||||
|
|
|||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 93,606,079 | ||||
|
|
|||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
13
Statements of Changes in Net Assets
Nationwide Investor Destinations Aggressive Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 17,922,344 | $ | 17,110,252 | ||||||||
Net realized gains from affiliated investments |
54,805,585 | 11,460,772 | ||||||||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
20,878,150 | 232,591,753 | ||||||||||
|
|
|
|
|||||||||
Change in net assets resulting from operations |
93,606,079 | 261,162,777 | ||||||||||
|
|
|
|
|||||||||
Distributions to Shareholders From: |
||||||||||||
Net investment income: |
||||||||||||
Class A |
(1,075,210 | ) | (968,045 | ) | ||||||||
Class B (a) |
(31,916 | ) | (55,790 | ) | ||||||||
Class C |
(812,641 | ) | (675,982 | ) | ||||||||
Class R (b) |
(1,595,494 | ) | (1,424,243 | ) | ||||||||
Institutional Service Class |
(1,087 | )(c) | | |||||||||
Institutional Class |
(2,659,351 | ) | (1,928,613 | ) | ||||||||
Service Class |
(14,506,612 | ) | (13,132,526 | ) | ||||||||
Net realized gains: |
||||||||||||
Class A |
(804,434 | ) | (572,967 | ) | ||||||||
Class B (a) |
(46,855 | ) | (56,776 | ) | ||||||||
Class C |
(997,370 | ) | (637,640 | ) | ||||||||
Class R (b) |
(1,496,117 | ) | (1,028,497 | ) | ||||||||
Institutional Service Class |
| (c) | | |||||||||
Institutional Class |
(1,621,624 | ) | (921,180 | ) | ||||||||
Service Class |
(11,566,034 | ) | (8,184,292 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from shareholder distributions |
(37,214,745 | ) | (29,586,551 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
(35,017,401 | ) | (47,705,603 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets |
21,373,933 | 183,870,623 | ||||||||||
|
|
|
|
|||||||||
Net Assets: |
||||||||||||
Beginning of year |
1,225,173,199 | 1,041,302,576 | ||||||||||
|
|
|
|
|||||||||
End of year |
$ | 1,246,547,132 | $ | 1,225,173,199 | ||||||||
|
|
|
|
|||||||||
Accumulated undistributed net investment income at end of year |
$ | | $ | 82,090 | ||||||||
|
|
|
|
|||||||||
CAPITAL TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Proceeds from shares issued |
$ | 15,425,571 | $ | 15,322,388 | ||||||||
Proceeds from shares issued from class conversion |
2,574,611 | | ||||||||||
Dividends reinvested |
1,345,536 | 1,039,315 | ||||||||||
Cost of shares redeemed |
(20,237,535 | ) | (19,061,602 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
(891,817 | ) | (2,699,899 | ) | ||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Proceeds from shares issued |
69,236 | 175,032 | ||||||||||
Dividends reinvested |
65,577 | 86,638 | ||||||||||
Cost of shares redeemed in class conversion |
(2,574,611 | ) | | |||||||||
Cost of shares redeemed |
(1,533,001 | ) | (2,810,581 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(3,972,799 | ) | (2,548,911 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) For the period from March 4, 2014 (commencement of operations) through October 31, 2014.
14
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Aggressive Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
CAPITAL TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Proceeds from shares issued |
$ | 14,310,984 | $ | 11,975,603 | ||||||||
Dividends reinvested |
862,428 | 572,226 | ||||||||||
Cost of shares redeemed |
(13,151,457 | ) | (11,464,078 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
2,021,955 | 1,083,751 | ||||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Proceeds from shares issued |
10,382,606 | 11,886,523 | ||||||||||
Dividends reinvested |
2,999,821 | 2,357,861 | ||||||||||
Cost of shares redeemed |
(20,342,495 | ) | (17,978,126 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(6,960,068 | ) | (3,733,742 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Proceeds from shares issued |
3,710,364 | (c) | | |||||||||
Dividends reinvested |
1,087 | (c) | | |||||||||
Cost of shares redeemed |
(228,247 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
3,483,204 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Proceeds from shares issued |
35,279,465 | 62,767,157 | ||||||||||
Dividends reinvested |
4,280,948 | 2,849,793 | ||||||||||
Cost of shares redeemed |
(17,585,600 | ) | (52,343,098 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
21,974,813 | 13,273,852 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Proceeds from shares issued |
69,876,145 | 57,991,604 | ||||||||||
Dividends reinvested |
26,072,627 | 21,316,629 | ||||||||||
Cost of shares redeemed |
(146,621,461 | ) | (132,388,887 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(50,672,689 | ) | (53,080,654 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
$ | (35,017,401 | ) | $ | (47,705,603 | ) | ||||||
|
|
|
|
|||||||||
SHARE TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Issued |
1,375,334 | 1,559,786 | ||||||||||
Issued in class conversion |
230,901 | | ||||||||||
Reinvested |
121,713 | 111,899 | ||||||||||
Redeemed |
(1,801,042 | ) | (1,969,347 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
(73,094 | ) | (297,662 | ) | ||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Issued |
6,387 | 18,323 | ||||||||||
Reinvested |
6,100 | 9,696 | ||||||||||
Redeemed in class conversion |
(235,131 | ) | | |||||||||
Redeemed |
(141,638 | ) | (292,860 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(364,282 | ) | (264,841 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) For the period from March 4, 2014 (commencement of operations) through October 31, 2014.
15
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Aggressive Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
SHARE TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Issued |
1,309,213 | 1,223,229 | ||||||||||
Reinvested |
80,407 | 64,114 | ||||||||||
Redeemed |
(1,193,102 | ) | (1,178,718 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
196,518 | 108,625 | ||||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Issued |
939,975 | 1,229,532 | ||||||||||
Reinvested |
276,629 | 259,973 | ||||||||||
Redeemed |
(1,837,828 | ) | (1,816,307 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(621,224 | ) | (326,802 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Issued |
330,525 | (c) | | |||||||||
Reinvested |
94 | (c) | | |||||||||
Redeemed |
(20,722 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
309,897 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Issued |
3,101,365 | 6,223,977 | ||||||||||
Reinvested |
382,190 | 301,972 | ||||||||||
Redeemed |
(1,547,966 | ) | (5,214,478 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
1,935,589 | 1,311,471 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Issued |
6,147,981 | 5,841,621 | ||||||||||
Reinvested |
2,356,942 | 2,299,608 | ||||||||||
Redeemed |
(12,950,073 | ) | (13,366,053 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(4,445,150 | ) | (5,224,824 | ) | ||||||||
|
|
|
|
|||||||||
Total change in shares |
(3,061,746 | ) | (4,694,033 | ) | ||||||||
|
|
|
|
|||||||||
Amount designated as is zero or has been rounded to zero.
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
16
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Aggressive Fund
Operations | Distributions | Ratios/Supplemental Data |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
Net Investment Income |
Net Realized and Unrealized Gains (Losses) from Investments |
Total from Operations |
Net Investment Income |
Net Realized Gains |
Total Distributions |
Net Asset Value, End of Period |
Total Return (a)(b) |
Net Assets at End of Period |
Ratio of Net Assets (c) |
Ratio of Net Investment Income to Average Net Assets (c) |
Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c) |
Portfolio Turnover (d) |
|||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.00 | 0.17 | 0.68 | 0.85 | (0.19 | ) | (0.15 | ) | (0.34 | ) | $ | 11.51 | 7.92% | $ | 61,402,299 | 0.54% | 1.47% | 0.54% | 8.41% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 8.97 | 0.17 | 2.13 | 2.30 | (0.17 | ) | (0.10 | ) | (0.27 | ) | $ | 11.00 | 26.24% | $ | 59,507,180 | 0.49% | 1.69% | 0.49% | 22.52% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.26 | 0.13 | 0.73 | 0.86 | (0.13 | ) | (0.02 | ) | (0.15 | ) | $ | 8.97 | 10.56% | $ | 51,210,338 | 0.50% | 1.44% | 0.50% | 11.55% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.13 | 0.13 | 0.14 | 0.27 | (0.14 | ) | | (0.14 | ) | $ | 8.26 | 3.24% | $ | 51,388,289 | 0.48% | 1.54% | 0.48% | 9.70% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.30 | 0.11 | 1.02 | 1.13 | (0.10 | ) | (0.20 | ) | (0.30 | ) | $ | 8.13 | 15.81% | $ | 49,682,066 | 0.49% | 1.44% | 0.49% | 8.89% | ||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 10.75 | 0.08 | 0.68 | 0.76 | (0.12 | ) | (0.15 | ) | (0.27 | ) | $ | 11.24 | 7.21% | $ | 76,857,144 | 1.24% | 0.77% | 1.24% | 8.41% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 8.78 | 0.09 | 2.09 | 2.18 | (0.11 | ) | (0.10 | ) | (0.21 | ) | $ | 10.75 | 25.26% | $ | 71,452,684 | 1.19% | 0.92% | 1.19% | 22.52% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.08 | 0.07 | 0.72 | 0.79 | (0.07 | ) | (0.02 | ) | (0.09 | ) | $ | 8.78 | 9.90% | $ | 57,370,350 | 1.20% | 0.76% | 1.20% | 11.55% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 7.97 | 0.07 | 0.12 | 0.19 | (0.08 | ) | | (0.08 | ) | $ | 8.08 | 2.36% | $ | 59,022,254 | 1.21% | 0.86% | 1.21% | 9.70% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.17 | 0.06 | 1.01 | 1.07 | (0.07 | ) | (0.20 | ) | (0.27 | ) | $ | 7.97 | 15.15% | $ | 67,454,100 | 1.20% | 0.75% | 1.20% | 8.89% | ||||||||||||||||||||||||||||||||||||
Class R Shares (f)(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 10.83 | 0.13 | 0.67 | 0.80 | (0.16 | ) | (0.15 | ) | (0.31 | ) | $ | 11.32 | 7.54% | $ | 106,558,652 | 0.84% | 1.22% | 0.84% | 8.41% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 8.84 | 0.12 | 2.11 | 2.23 | (0.14 | ) | (0.10 | ) | (0.24 | ) | $ | 10.83 | 25.73% | $ | 108,654,200 | 0.85% | 1.27% | 0.85% | 22.52% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.14 | 0.09 | 0.73 | 0.82 | (0.10 | ) | (0.02 | ) | (0.12 | ) | $ | 8.84 | 10.23% | $ | 91,551,218 | 0.84% | 1.10% | 0.84% | 11.55% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.01 | 0.10 | 0.14 | 0.24 | (0.11 | ) | | (0.11 | ) | $ | 8.14 | 2.90% | $ | 88,524,201 | 0.85% | 1.18% | 0.85% | 9.70% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.21 | 0.08 | 1.01 | 1.09 | (0.09 | ) | (0.20 | ) | (0.29 | ) | $ | 8.01 | 15.41% | $ | 84,348,618 | 0.84% | 1.07% | 0.84% | 8.89% | ||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended October 31, 2014 (e)(h) |
$ | 11.18 | 0.02 | 0.42 | 0.44 | (0.10 | ) | | (0.10 | ) | $ | 11.52 | 3.93% | $ | 3,569,632 | 0.21% | 0.24% | 0.21% | 8.41% | |||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.11 | 0.21 | 0.68 | 0.89 | (0.23 | ) | (0.15 | ) | (0.38 | ) | $ | 11.62 | 8.21% | $ | 146,720,517 | 0.19% | 1.81% | 0.19% | 8.41% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.06 | 0.19 | 2.16 | 2.35 | (0.20 | ) | (0.10 | ) | (0.30 | ) | $ | 11.11 | 26.57% | $ | 118,716,482 | 0.19% | 1.88% | 0.19% | 22.52% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.34 | 0.15 | 0.75 | 0.90 | (0.16 | ) | (0.02 | ) | (0.18 | ) | $ | 9.06 | 11.05% | $ | 84,918,686 | 0.20% | 1.74% | 0.20% | 11.55% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.20 | 0.15 | 0.15 | 0.30 | (0.16 | ) | | (0.16 | ) | $ | 8.34 | 3.49% | $ | 70,317,290 | 0.21% | 1.78% | 0.21% | 9.70% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.36 | 0.13 | 1.04 | 1.17 | (0.13 | ) | (0.20 | ) | (0.33 | ) | $ | 8.20 | 16.19% | $ | 57,247,781 | 0.20% | 1.71% | 0.20% | 8.89% | ||||||||||||||||||||||||||||||||||||
Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.02 | 0.16 | 0.68 | 0.84 | (0.19 | ) | (0.15 | ) | (0.34 | ) | $ | 11.52 | 7.75% | $ | 851,438,888 | 0.59% | 1.46% | 0.59% | 8.41% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 8.99 | 0.15 | 2.14 | 2.29 | (0.16 | ) | (0.10 | ) | (0.26 | ) | $ | 11.02 | 26.04% | $ | 862,903,998 | 0.60% | 1.53% | 0.60% | 22.52% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.27 | 0.12 | 0.74 | 0.86 | (0.12 | ) | (0.02 | ) | (0.14 | ) | $ | 8.99 | 10.56% | $ | 750,703,873 | 0.60% | 1.34% | 0.60% | 11.55% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.14 | 0.12 | 0.13 | 0.25 | (0.12 | ) | | (0.12 | ) | $ | 8.27 | 3.09% | $ | 717,539,097 | 0.61% | 1.43% | 0.61% | 9.70% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.32 | 0.10 | 1.03 | 1.13 | (0.11 | ) | (0.20 | ) | (0.31 | ) | $ | 8.14 | 15.66% | $ | 719,252,841 | 0.59% | 1.34% | 0.59% | 8.89% | ||||||||||||||||||||||||||||||||||||
Amounts designated as are zero or have been rounded to zero.
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Per share calculations were performed using average shares method. |
(f) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
(g) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(h) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. Total return is calculated based on inception date of March 3, 2014 through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
17
Fund Commentary | Nationwide Investor Destinations Moderately Aggressive Fund |
18
Fund Commentary (cont.) | Nationwide Investor Destinations Moderately Aggressive Fund |
19
Fund Overview | Nationwide Investor Destinations Moderately Aggressive Fund |
| Percentages indicated are based upon net assets as of October 31, 2014. |
| Percentages indicated are based upon total investments as of October 31, 2014. |
20
Fund Performance | Nationwide Investor Destinations Moderately Aggressive Fund |
21
Fund Performance (cont.) | Nationwide Investor Destinations Moderately Aggressive Fund |
Performance of a $50,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $50,000 invested in Service Class shares of the Nationwide Investor Destinations Moderately Aggressive Fund versus the Russell 3000® Index, the Barclays U.S. Aggregate Bond Index, the MSCI EAFE® Index, the Barclays U.S. 1-3 Year Government/Credit Bond Index, the Composite Index* and the Consumer Price Index (CPI) over the 10-year period ended 10/31/14. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes. A description of the benchmarks can be found on the Market Index Definitions page at the back of this book.
* | The Composite Index comprises 55% Russell 3000® Index, 15% Barclays U.S. Aggregate Bond Index, 25% MSCI EAFE® Index and 5% Barclays U.S. 1-3 Year Govt/Credit Bond Index. |
22
Shareholder Expense Example | Nationwide Investor Destinations Moderately Aggressive Fund |
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
Nationwide Investor Destinations October 31, 2014 |
Beginning Account Value ($) 05/01/14 |
Ending Account Value ($) 10/31/14 |
Expenses Paid During Period ($) 05/01/14 - 10/31/14(a) |
Expense Ratio During Period (%) 05/01/14 - 10/31/14(a) | ||||||||
Class A Shares | Actual | (b) | 1,000.00 | 1,023.50 | 2.75 | 0.54 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.48 | 2.75 | 0.54 | |||||||
Class C Shares | Actual | (b) | 1,000.00 | 1,019.60 | 6.41 | 1.26 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,018.85 | 6.41 | 1.26 | |||||||
Class R Shares(d) | Actual | (b) | 1,000.00 | 1,020.90 | 4.23 | 0.83 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,021.02 | 4.23 | 0.83 | |||||||
Institutional Service Class Shares | Actual | (b) | 1,000.00 | 1,024.20 | 1.02 | 0.20 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.20 | 1.02 | 0.20 | |||||||
Institutional Class Shares | Actual | (b) | 1,000.00 | 1,025.50 | 0.92 | 0.18 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.30 | 0.92 | 0.18 | |||||||
Service Class Shares | Actual | (b) | 1,000.00 | 1,022.60 | 2.96 | 0.58 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.28 | 2.96 | 0.58 |
(a) | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. |
(b) | Expenses are equal to the Funds annualized expense ratio multiplied by the average account value from May 1, 2014 through October 31, 2014 multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with Securities and Exchange Commission guidelines. |
(c) | Represents the hypothetical 5% return before expenses. |
(d) | Effective March 3, 2014 Class R2 Shares were renamed Class R Shares. |
23
Statement of Investments
October 31, 2014
Nationwide Investor Destinations Moderately Aggressive Fund
The accompanying notes are an integral part of these financial statements.
24
Statement of Assets and Liabilities
October 31, 2014
Nationwide Investor Destinations Moderately Aggressive Fund | ||||||
Assets: |
||||||
Investments in affiliates, at value (cost $1,640,889,742) |
$ | 2,081,983,453 | ||||
Receivable for investments sold |
1,750,051 | |||||
Receivable for capital shares issued |
735,012 | |||||
Prepaid expenses |
36,194 | |||||
|
|
|||||
Total Assets |
2,084,504,710 | |||||
|
|
|||||
Liabilities: |
||||||
Payable for capital shares redeemed |
2,619,094 | |||||
Accrued expenses and other payables: |
||||||
Investment advisory fees |
223,198 | |||||
Fund administration fees |
46,051 | |||||
Distribution fees |
489,780 | |||||
Administrative servicing fees |
226,195 | |||||
Accounting and transfer agent fees |
11,734 | |||||
Trustee fees |
6,247 | |||||
Custodian fees |
6,255 | |||||
Compliance program costs (Note 3) |
605 | |||||
Professional fees |
30,324 | |||||
Printing fees |
10,154 | |||||
Other |
8,360 | |||||
|
|
|||||
Total Liabilities |
3,677,997 | |||||
|
|
|||||
Net Assets |
$ | 2,080,826,713 | ||||
|
|
|||||
Represented by: |
||||||
Capital |
$ | 1,629,457,568 | ||||
Accumulated net realized gains from affiliated investments |
10,275,434 | |||||
Net unrealized appreciation/(depreciation) from investments in affiliates |
441,093,711 | |||||
|
|
|||||
Net Assets |
$ | 2,080,826,713 | ||||
|
|
|||||
Net Assets: |
||||||
Class A Shares |
$ | 123,408,650 | ||||
Class C Shares |
128,626,192 | |||||
Class R Shares |
242,451,059 | |||||
Institutional Service Class Shares |
2,589,232 | |||||
Institutional Class Shares |
341,959,809 | |||||
Service Class Shares |
1,241,791,771 | |||||
|
|
|||||
Total |
$ | 2,080,826,713 | ||||
|
|
|||||
Shares Outstanding (unlimited number of shares authorized): |
||||||
Class A Shares |
10,506,682 | |||||
Class C Shares |
11,187,197 | |||||
Class R Shares |
21,075,898 | |||||
Institutional Service Class Shares |
220,927 | |||||
Institutional Class Shares |
29,137,435 | |||||
Service Class Shares |
105,943,870 | |||||
|
|
|||||
Total |
178,072,009 | |||||
|
|
|||||
25
Statement of Assets and Liabilities (Continued)
October 31, 2014
Nationwide Investor Destinations Moderately Aggressive Fund | ||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): |
||||||
Class A Shares (a) |
$ | 11.75 | ||||
Class C Shares (b) |
$ | 11.50 | ||||
Class R Shares |
$ | 11.50 | ||||
Institutional Service Class Shares |
$ | 11.72 | ||||
Institutional Class Shares |
$ | 11.74 | ||||
Service Class Shares |
$ | 11.72 | ||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): |
||||||
Class A Shares |
$ | 12.47 | ||||
|
|
|||||
Maximum Sales Charge: |
||||||
Class A Shares |
5.75 | % | ||||
|
|
|||||
(a) | For Class A Shares that were purchased without a sales charge because such purchase exceeded $1,000,000, a contingent deferred sales charge of 1.00% may apply to any redemption of such shares within 18 months of their purchase. |
(b) | For Class C Shares, the redemption price per share is reduced by a contingent deferred sales charge of 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
26
Statement of Operations
For the year Ended October 31, 2014
Nationwide Investor Destinations Moderately Aggressive Fund | ||||||
INVESTMENT INCOME: |
||||||
Dividend income from affiliates |
$ | 41,745,568 | ||||
Interest income from affiliates |
1,431,515 | |||||
|
|
|||||
Total Income |
43,177,083 | |||||
|
|
|||||
EXPENSES: |
||||||
Investment advisory fees |
2,705,173 | |||||
Fund administration fees |
544,639 | |||||
Distribution fees Class A |
302,298 | |||||
Distribution fees Class B (a) |
14,087 | |||||
Distribution fees Class C |
1,274,683 | |||||
Distribution fees Class R (b) |
1,231,919 | |||||
Distribution fees Service Class |
3,188,768 | |||||
Administrative servicing fees Class A |
115,841 | |||||
Administrative servicing fees Class C |
69,725 | |||||
Administrative servicing fees Class R (b) |
369,578 | |||||
Administrative servicing fees Institutional Service Class (c) |
58 | |||||
Administrative servicing fees Service Class |
1,913,270 | |||||
Registration and filing fees |
79,223 | |||||
Professional fees |
103,782 | |||||
Printing fees |
25,386 | |||||
Trustee fees |
65,596 | |||||
Custodian fees |
78,367 | |||||
Accounting and transfer agent fees |
107,107 | |||||
Compliance program costs (Note 3) |
5,955 | |||||
Other |
53,786 | |||||
|
|
|||||
Total expenses before earnings credit |
12,249,241 | |||||
|
|
|||||
Earnings credit (Note 5) |
(1,644 | ) | ||||
|
|
|||||
Net Expenses |
12,247,597 | |||||
|
|
|||||
NET INVESTMENT INCOME |
30,929,486 | |||||
|
|
|||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: |
||||||
Net realized gain distributions from underlying affiliated funds |
64,980,038 | |||||
Net realized gains from investment transactions with affiliates |
14,588,323 | |||||
|
|
|||||
Net realized gains from affiliated investments |
79,568,361 | |||||
|
|
|||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
33,853,239 | |||||
|
|
|||||
Net realized/unrealized gains from affiliated investments |
113,421,600 | |||||
|
|
|||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 144,351,086 | ||||
|
|
|||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
27
Statements of Changes in Net Assets
Nationwide Investor Destinations Moderately Aggressive Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 30,929,486 | $ | 28,791,116 | ||||||||
Net realized gains from affiliated investments |
79,568,361 | 38,521,404 | ||||||||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
33,853,239 | 297,497,297 | ||||||||||
|
|
|
|
|||||||||
Change in net assets resulting from operations |
144,351,086 | 364,809,817 | ||||||||||
|
|
|
|
|||||||||
Distributions to Shareholders From: |
||||||||||||
Net investment income: |
||||||||||||
Class A |
(2,051,321 | ) | (1,662,703 | ) | ||||||||
Class B (a) |
(39,391 | ) | (78,781 | ) | ||||||||
Class C |
(1,458,768 | ) | (1,258,871 | ) | ||||||||
Class R (b) |
(3,712,820 | ) | (3,211,038 | ) | ||||||||
Institutional Service Class |
(684 | )(c) | | |||||||||
Institutional Class |
(6,196,668 | ) | (4,393,383 | ) | ||||||||
Service Class |
(21,395,325 | ) | (19,720,854 | ) | ||||||||
Net realized gains: |
||||||||||||
Class A |
(2,417,686 | ) | (573,158 | ) | ||||||||
Class B (a) |
(96,165 | ) | (50,991 | ) | ||||||||
Class C |
(2,704,902 | ) | (730,521 | ) | ||||||||
Class R (b) |
(5,350,857 | ) | (1,380,636 | ) | ||||||||
Institutional Service Class |
| (c) | | |||||||||
Institutional Class |
(5,912,957 | ) | (1,227,423 | ) | ||||||||
Service Class |
(26,972,426 | ) | (7,389,943 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from shareholder distributions |
(78,309,970 | ) | (41,678,302 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
(19,473,923 | ) | (32,566,829 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets |
46,567,193 | 290,564,686 | ||||||||||
|
|
|
|
|||||||||
Net Assets: |
||||||||||||
Beginning of year |
2,034,259,520 | 1,743,694,834 | ||||||||||
|
|
|
|
|||||||||
End of year |
$ | 2,080,826,713 | $ | 2,034,259,520 | ||||||||
|
|
|
|
|||||||||
Accumulated undistributed net investment income at end of year |
$ | | $ | 626,817 | ||||||||
|
|
|
|
|||||||||
CAPITAL TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Proceeds from shares issued |
$ | 26,749,727 | $ | 26,002,812 | ||||||||
Proceeds from shares issued from class conversion |
3,915,904 | | ||||||||||
Dividends reinvested |
3,127,547 | 1,515,552 | ||||||||||
Cost of shares redeemed |
(26,513,481 | ) | (21,691,704 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
7,279,697 | 5,826,660 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Proceeds from shares issued |
102,366 | 229,017 | ||||||||||
Dividends reinvested |
126,042 | 107,509 | ||||||||||
Cost of shares redeemed in class conversion |
(3,915,904 | ) | | |||||||||
Cost of shares redeemed |
(1,190,364 | ) | (4,896,209 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(4,877,860 | ) | (4,559,683 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
28
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Moderately Aggressive Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
CAPITAL TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Proceeds from shares issued |
$ | 16,465,882 | $ | 12,991,645 | ||||||||
Dividends reinvested |
1,889,835 | 794,176 | ||||||||||
Cost of shares redeemed |
(18,884,806 | ) | (19,801,123 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
(529,089 | ) | (6,015,302 | ) | ||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Proceeds from shares issued |
18,339,370 | 21,793,440 | ||||||||||
Dividends reinvested |
8,904,328 | 4,506,550 | ||||||||||
Cost of shares redeemed |
(39,125,265 | ) | (26,930,614 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(11,881,567 | ) | (630,624 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Proceeds from shares issued |
2,665,534 | (c) | | |||||||||
Dividends reinvested |
684 | (c) | | |||||||||
Cost of shares redeemed |
(134,084 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
2,532,134 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Proceeds from shares issued |
74,350,309 | 150,731,613 | ||||||||||
Dividends reinvested |
12,109,625 | 5,620,806 | ||||||||||
Cost of shares redeemed |
(25,935,011 | ) | (111,178,853 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
60,524,923 | 45,173,566 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Proceeds from shares issued |
96,659,941 | 84,075,133 | ||||||||||
Dividends reinvested |
48,367,751 | 27,110,797 | ||||||||||
Cost of shares redeemed |
(217,549,853 | ) | (183,547,376 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(72,522,161 | ) | (72,361,446 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
$ | (19,473,923 | ) | $ | (32,566,829 | ) | ||||||
|
|
|
|
|||||||||
SHARE TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Issued |
2,321,321 | 2,498,666 | ||||||||||
Issued in class conversion |
343,539 | | ||||||||||
Reinvested |
276,955 | 152,350 | ||||||||||
Redeemed |
(2,297,264 | ) | (2,106,669 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
644,551 | 544,347 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Issued |
9,181 | 22,744 | ||||||||||
Reinvested |
11,469 | 11,235 | ||||||||||
Redeemed in class conversion |
(350,075 | ) | | |||||||||
Redeemed |
(107,145 | ) | (485,197 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(436,570 | ) | (451,218 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
29
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Moderately Aggressive Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
SHARE TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Issued |
1,463,227 | 1,271,094 | ||||||||||
Reinvested |
171,499 | 82,704 | ||||||||||
Redeemed |
(1,674,604 | ) | (1,948,208 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
(39,878 | ) | (594,410 | ) | ||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Issued |
1,627,254 | 2,139,310 | ||||||||||
Reinvested |
806,449 | 465,340 | ||||||||||
Redeemed |
(3,478,776 | ) | (2,608,574 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(1,045,073 | ) | (3,924 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Issued |
232,378 | (c) | | |||||||||
Reinvested |
58 | (c) | | |||||||||
Redeemed |
(11,509 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
220,927 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Issued |
6,487,867 | 14,394,144 | ||||||||||
Reinvested |
1,070,657 | 561,989 | ||||||||||
Redeemed |
(2,245,964 | ) | (10,611,639 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
5,312,560 | 4,344,494 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Issued |
8,320,769 | 8,063,586 | ||||||||||
Reinvested |
4,295,269 | 2,739,801 | ||||||||||
Redeemed |
(18,851,693 | ) | (17,626,125 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(6,235,655 | ) | (6,822,738 | ) | ||||||||
|
|
|
|
|||||||||
Total change in shares |
(1,579,138 | ) | (2,983,449 | ) | ||||||||
|
|
|
|
|||||||||
Amounts designated as are zero or haves been rounded to zero.
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
30
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Aggressive Fund
Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
Net Investment Income |
Net Realized and Unrealized Gains (Losses) from Investments |
Total from Operations |
Net Investment Income |
Net Realized Gains |
Total Distributions |
Net Asset Value, End of Period |
Total Return (a)(b) |
Net Assets at End of Period |
Ratio of Expenses to Average Net Assets (c) |
Ratio of Net Investment Income to Average Net Assets (c) |
Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c) |
Portfolio Turnover (d) |
|||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.38 | 0.18 | 0.63 | 0.81 | (0.20 | ) | (0.24 | ) | (0.44 | ) | $ | 11.75 | 7.33% | $ | 123,408,650 | 0.53% | 1.53% | 0.53% | 9.54% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.60 | 0.17 | 1.85 | 2.02 | (0.18 | ) | (0.06 | ) | (0.24 | ) | $ | 11.38 | 21.44% | $ | 112,242,046 | 0.50% | 1.62% | 0.50% | 29.31% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.95 | 0.15 | 0.71 | 0.86 | (0.15 | ) | (0.06 | ) | (0.21 | ) | $ | 9.60 | 9.82% | $ | 89,406,859 | 0.49% | 1.59% | 0.49% | 13.11% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.80 | 0.16 | 0.15 | 0.31 | (0.16 | ) | | (0.16 | ) | $ | 8.95 | 3.49% | $ | 84,467,234 | 0.47% | 1.72% | 0.47% | 13.88% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.99 | 0.14 | 0.97 | 1.11 | (0.14 | ) | (0.16 | ) | (0.30 | ) | $ | 8.80 | 14.19% | $ | 79,563,235 | 0.48% | 1.72% | 0.48% | 8.57% | ||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.16 | 0.09 | 0.62 | 0.71 | (0.13 | ) | (0.24 | ) | (0.37 | ) | $ | 11.50 | 6.55% | $ | 128,626,192 | 1.24% | 0.84% | 1.24% | 9.54% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.41 | 0.10 | 1.82 | 1.92 | (0.11 | ) | (0.06 | ) | (0.17 | ) | $ | 11.16 | 20.72% | $ | 125,294,548 | 1.19% | 0.95% | 1.19% | 29.31% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.79 | 0.08 | 0.69 | 0.77 | (0.09 | ) | (0.06 | ) | (0.15 | ) | $ | 9.41 | 8.87% | $ | 111,289,595 | 1.19% | 0.89% | 1.19% | 13.11% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.64 | 0.09 | 0.15 | 0.24 | (0.09 | ) | | (0.09 | ) | $ | 8.79 | 2.81% | $ | 119,068,548 | 1.20% | 1.03% | 1.20% | 13.88% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.86 | 0.08 | 0.95 | 1.03 | (0.09 | ) | (0.16 | ) | (0.25 | ) | $ | 8.64 | 13.31% | $ | 131,008,292 | 1.19% | 1.02% | 1.19% | 8.57% | ||||||||||||||||||||||||||||||||||||
Class R Shares (f)(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.16 | 0.14 | 0.61 | 0.75 | (0.17 | ) | (0.24 | ) | (0.41 | ) | $ | 11.50 | 6.92% | $ | 242,451,059 | 0.83% | 1.26% | 0.83% | 9.54% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.41 | 0.13 | 1.82 | 1.95 | (0.14 | ) | (0.06 | ) | (0.20 | ) | $ | 11.16 | 21.15% | $ | 246,852,482 | 0.84% | 1.28% | 0.84% | 29.31% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.79 | 0.11 | 0.69 | 0.80 | (0.12 | ) | (0.06 | ) | (0.18 | ) | $ | 9.41 | 9.27% | $ | 208,283,759 | 0.84% | 1.23% | 0.84% | 13.11% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.64 | 0.12 | 0.16 | 0.28 | (0.13 | ) | | (0.13 | ) | $ | 8.79 | 3.18% | $ | 192,888,041 | 0.84% | 1.34% | 0.84% | 13.88% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.86 | 0.11 | 0.94 | 1.05 | (0.11 | ) | (0.16 | ) | (0.27 | ) | $ | 8.64 | 13.65% | $ | 176,660,604 | 0.83% | 1.34% | 0.83% | 8.57% | ||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended October 31, 2014 (e)(h) |
$ | 11.39 | 0.03 | 0.40 | 0.43 | (0.10 | ) | | (0.10 | ) | $ | 11.72 | 3.77% | $ | 2,589,232 | 0.20% | 0.44% | 0.20% | 9.54% | |||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.37 | 0.21 | 0.64 | 0.85 | (0.24 | ) | (0.24 | ) | (0.48 | ) | $ | 11.74 | 7.70% | $ | 341,959,809 | 0.18% | 1.85% | 0.18% | 9.54% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.59 | 0.20 | 1.85 | 2.05 | (0.21 | ) | (0.06 | ) | (0.27 | ) | $ | 11.37 | 21.83% | $ | 270,917,338 | 0.19% | 1.88% | 0.19% | 29.31% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.95 | 0.17 | 0.71 | 0.88 | (0.18 | ) | (0.06 | ) | (0.24 | ) | $ | 9.59 | 10.03% | $ | 186,769,240 | 0.19% | 1.86% | 0.19% | 13.11% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.79 | 0.18 | 0.16 | 0.34 | (0.18 | ) | | (0.18 | ) | $ | 8.95 | 3.89% | $ | 151,618,037 | 0.20% | 1.99% | 0.20% | 13.88% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.99 | 0.16 | 0.97 | 1.13 | (0.17 | ) | (0.16 | ) | (0.33 | ) | $ | 8.79 | 14.39% | $ | 130,223,401 | 0.19% | 1.97% | 0.19% | 8.57% | ||||||||||||||||||||||||||||||||||||
Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.36 | 0.17 | 0.62 | 0.79 | (0.19 | ) | (0.24 | ) | (0.43 | ) | $ | 11.72 | 7.19% | $ | 1,241,791,771 | 0.58% | 1.50% | 0.58% | 9.54% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.58 | 0.16 | 1.85 | 2.01 | (0.17 | ) | (0.06 | ) | (0.23 | ) | $ | 11.36 | 21.37% | $ | 1,274,073,724 | 0.59% | 1.56% | 0.59% | 29.31% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 8.94 | 0.14 | 0.70 | 0.84 | (0.14 | ) | (0.06 | ) | (0.20 | ) | $ | 9.58 | 9.60% | $ | 1,139,580,740 | 0.59% | 1.49% | 0.59% | 13.11% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 8.78 | 0.15 | 0.16 | 0.31 | (0.15 | ) | | (0.15 | ) | $ | 8.94 | 3.47% | $ | 1,115,586,752 | 0.60% | 1.61% | 0.60% | 13.88% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 7.98 | 0.13 | 0.96 | 1.09 | (0.13 | ) | (0.16 | ) | (0.29 | ) | $ | 8.78 | 13.96% | $ | 1,119,852,454 | 0.58% | 1.61% | 0.58% | 8.57% | ||||||||||||||||||||||||||||||||||||
Amounts designated as are zero or have been rounded to zero.
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Per share calculations were performed using average shares method. |
(f) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
(g) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(h) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. Total return is calculated based on inception date of March 3, 2014 through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
31
Fund Commentary | Nationwide Investor Destinations Moderate Fund |
32
Fund Commentary (cont.) | Nationwide Investor Destinations Moderate Fund |
33
Fund Overview | Nationwide Investor Destinations Moderate Fund |
| Percentages indicated are based upon net assets as of October 31, 2014. |
| Percentages indicated are based upon total investments as of October 31, 2014. |
34
Fund Performance | Nationwide Investor Destinations Moderate Fund |
35
Fund Performance (cont.) | Nationwide Investor Destinations Moderate Fund |
Performance of a $50,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $50,000 invested in Service Class shares of the Nationwide Investor Destinations Moderate Fund versus the Russell 3000® Index, the Barclays U.S. Aggregate Bond Index, the MSCI EAFE® Index, the Barclays U.S. 1-3 Year Government/Credit Bond Index, the Composite Index* and the Consumer Price Index (CPI) over the 10-year period ended 10/31/14. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes. A description of the benchmarks can be found on the Market Index Definitions page at the back of this book.
* | The Composite Index comprises 45% Russell 3000® Index, 25% Barclays U.S. Aggregate Bond Index, 15% MSCI EAFE® Index and 15% Barclays U.S. 1-3 Year Govt/Credit Bond Index. |
36
Shareholder Expense Example | Nationwide Investor Destinations Moderate Fund |
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
Nationwide Investor Destinations October 31, 2014 |
Beginning Account Value ($) 05/01/14 |
Ending Account Value ($) 10/31/14 |
Expenses Paid During Period ($) 05/01/14 - 10/31/14(a) |
Expense Ratio During Period (%) 05/01/14 - 10/31/14(a) | ||||||||
Class A Shares | Actual | (b) | 1,000.00 | 1,019.80 | 2.90 | 0.57 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.33 | 2.91 | 0.57 | |||||||
Class C Shares | Actual | (b) | 1,000.00 | 1,016.80 | 6.41 | 1.26 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,018.85 | 6.41 | 1.26 | |||||||
Class R Shares(d) | Actual | (b) | 1,000.00 | 1,019.10 | 4.22 | 0.83 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,021.02 | 4.23 | 0.83 | |||||||
Institutional Service Class Shares | Actual | (b) | 1,000.00 | 1,021.60 | 1.12 | 0.22 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.10 | 1.12 | 0.22 | |||||||
Institutional Class Shares | Actual | (b) | 1,000.00 | 1,022.00 | 0.92 | 0.18 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.30 | 0.92 | 0.18 | |||||||
Service Class Shares | Actual | (b) | 1,000.00 | 1,020.00 | 2.95 | 0.58 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.28 | 2.96 | 0.58 |
(a) | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. |
(b) | Expenses are equal to the Funds annualized expense ratio multiplied by the average account value from May 1, 2014 through October 31, 2014 multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with Securities and Exchange Commission guidelines. |
(c) | Represents the hypothetical 5% return before expenses. |
(d) | Effective March 3, 2014 Class R2 Shares were renamed Class R Shares. |
37
Statement of Investments
October 31, 2014
Nationwide Investor Destinations Moderate Fund
The accompanying notes are an integral part of these financial statements.
38
Statement of Assets and Liabilities
October 31, 2014
Nationwide Investor Destinations Moderate Fund | ||||||
Assets: |
||||||
Investments in affiliates, at value (cost $1,494,453,287) |
$ | 1,801,175,812 | ||||
Receivable for investments sold |
784,573 | |||||
Receivable for capital shares issued |
1,155,211 | |||||
Prepaid expenses |
41,542 | |||||
|
|
|||||
Total Assets |
1,803,157,138 | |||||
|
|
|||||
Liabilities: |
||||||
Payable for capital shares redeemed |
1,953,506 | |||||
Accrued expenses and other payables: |
||||||
Investment advisory fees |
194,516 | |||||
Fund administration fees |
41,205 | |||||
Distribution fees |
431,999 | |||||
Administrative servicing fees |
207,352 | |||||
Accounting and transfer agent fees |
10,628 | |||||
Trustee fees |
5,361 | |||||
Custodian fees |
5,512 | |||||
Compliance program costs (Note 3) |
514 | |||||
Professional fees |
26,799 | |||||
Printing fees |
9,410 | |||||
Other |
12,404 | |||||
|
|
|||||
Total Liabilities |
2,899,206 | |||||
|
|
|||||
Net Assets |
$ | 1,800,257,932 | ||||
|
|
|||||
Represented by: |
||||||
Capital |
$ | 1,474,125,521 | ||||
Accumulated undistributed net investment income |
594,954 | |||||
Accumulated net realized gains from affiliated investments |
18,814,932 | |||||
Net unrealized appreciation/(depreciation) from investments in affiliates |
306,722,525 | |||||
|
|
|||||
Net Assets |
$ | 1,800,257,932 | ||||
|
|
|||||
Net Assets: |
||||||
Class A Shares |
$ | 143,271,556 | ||||
Class C Shares |
140,221,911 | |||||
Class R Shares |
195,865,740 | |||||
Institutional Service Class Shares |
4,576,528 | |||||
Institutional Class Shares |
343,231,738 | |||||
Service Class Shares |
973,090,459 | |||||
|
|
|||||
Total |
$ | 1,800,257,932 | ||||
|
|
|||||
Shares Outstanding (unlimited number of shares authorized): |
||||||
Class A Shares |
12,625,784 | |||||
Class C Shares |
12,558,877 | |||||
Class R Shares |
17,629,538 | |||||
Institutional Service Class Shares |
405,011 | |||||
Institutional Class Shares |
30,352,132 | |||||
Service Class Shares |
86,097,896 | |||||
|
|
|||||
Total |
159,669,238 | |||||
|
|
|||||
39
Statement of Assets and Liabilities (Continued)
October 31, 2014
Nationwide Investor Destinations Moderate Fund | ||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): |
||||||
Class A Shares (a) |
$ | 11.35 | ||||
Class C Shares (b) |
$ | 11.17 | ||||
Class R Shares |
$ | 11.11 | ||||
Institutional Service Class Shares |
$ | 11.30 | ||||
Institutional Class Shares |
$ | 11.31 | ||||
Service Class Shares |
$ | 11.30 | ||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): |
||||||
Class A Shares |
$ | 12.04 | ||||
|
|
|||||
Maximum Sales Charge: |
||||||
Class A Shares |
5.75 | % | ||||
|
|
|||||
(a) | For Class A Shares that were purchased without a sales charge because such purchase exceeded $1,000,000, a contingent deferred sales charge of 1.00% may apply to any redemption of such shares within 18 months of their purchase. |
(b) | For Class C Shares, the redemption price per share is reduced by a contingent deferred sales charge of 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
40
Statement of Operations
For the Period Ended October 31, 2014
Nationwide Investor Destinations Moderate Fund | ||||||
INVESTMENT INCOME: |
||||||
Dividend income from affiliates |
$ | 31,917,752 | ||||
Interest income from affiliates |
4,941,659 | |||||
|
|
|||||
Total Income |
36,859,411 | |||||
|
|
|||||
EXPENSES: |
||||||
Investment advisory fees |
2,333,971 | |||||
Fund administration fees |
480,489 | |||||
Distribution fees Class A |
357,902 | |||||
Distribution fees Class B (a) |
5,858 | |||||
Distribution fees Class C |
1,399,266 | |||||
Distribution fees Class R (b) |
1,013,436 | |||||
Distribution fees Service Class |
2,488,007 | |||||
Administrative servicing fees Class A |
145,918 | |||||
Administrative servicing fees Class C |
76,599 | |||||
Administrative servicing fees Class R (b) |
304,032 | |||||
Administrative servicing fees Institutional Service Class (c) |
260 | |||||
Administrative servicing fees Service Class |
1,492,812 | |||||
Registration and filing fees |
80,435 | |||||
Professional fees |
91,183 | |||||
Printing fees |
21,865 | |||||
Trustee fees |
57,734 | |||||
Custodian fees |
67,341 | |||||
Accounting and transfer agent fees |
118,453 | |||||
Compliance program costs (Note 3) |
5,234 | |||||
Other |
47,833 | |||||
|
|
|||||
Total expenses before earnings credit |
10,588,628 | |||||
|
|
|||||
Earnings credit (Note 5) |
(20 | ) | ||||
|
|
|||||
Net Expenses |
10,588,608 | |||||
|
|
|||||
NET INVESTMENT INCOME |
26,270,803 | |||||
|
|
|||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: |
||||||
Net realized gain distributions from underlying affiliated funds |
42,721,452 | |||||
Net realized gains from investment transactions with affiliates |
28,610,711 | |||||
|
|
|||||
Net realized gains from affiliated investments |
71,332,163 | |||||
|
|
|||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
6,783,028 | |||||
|
|
|||||
Net realized/unrealized gains from affiliated investments |
78,115,191 | |||||
|
|
|||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 104,385,994 | ||||
|
|
|||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
41
Statements of Changes in Net Assets
Nationwide Investor Destinations Moderate Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
|||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 26,270,803 | $ | 24,757,661 | ||||||||
Net realized gains from affiliated investments |
71,332,163 | 55,343,871 | ||||||||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
6,783,028 | 159,032,853 | ||||||||||
|
|
|
|
|||||||||
Change in net assets resulting from operations |
104,385,994 | 239,134,385 | ||||||||||
|
|
|
|
|||||||||
Distributions to Shareholders From: |
||||||||||||
Net investment income: |
||||||||||||
Class A |
(2,342,048 | ) | (2,105,107 | ) | ||||||||
Class B (a) |
(13,539 | ) | (39,206 | ) | ||||||||
Class C |
(1,431,978 | ) | (1,305,304 | ) | ||||||||
Class R (b) |
(2,845,110 | ) | (2,703,277 | ) | ||||||||
Institutional Service Class |
(5,932 | )(c) | | |||||||||
Institutional Class |
(6,170,928 | ) | (4,818,247 | ) | ||||||||
Service Class |
(16,041,966 | ) | (15,315,096 | ) | ||||||||
Net realized gains: |
||||||||||||
Class A |
(4,253,649 | ) | (544,335 | ) | ||||||||
Class B (a) |
(59,199 | ) | (21,215 | ) | ||||||||
Class C |
(4,344,180 | ) | (570,539 | ) | ||||||||
Class R (b) |
(6,497,933 | ) | (874,892 | ) | ||||||||
Institutional Service Class |
| (c) | | |||||||||
Institutional Class |
(9,048,933 | ) | (1,020,096 | ) | ||||||||
Service Class |
(30,895,590 | ) | (4,259,363 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from shareholder distributions |
(83,950,985 | ) | (33,576,677 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
20,859,062 | (24,468,070 | ) | |||||||||
|
|
|
|
|||||||||
Change in net assets |
41,294,071 | 181,089,638 | ||||||||||
|
|
|
|
|||||||||
Net Assets: |
||||||||||||
Beginning of year |
1,758,963,861 | 1,577,874,223 | ||||||||||
|
|
|
|
|||||||||
End of year |
$ | 1,800,257,932 | $ | 1,758,963,861 | ||||||||
|
|
|
|
|||||||||
Accumulated undistributed net investment income at end of year |
$ | 594,954 | $ | 1,247,267 | ||||||||
|
|
|
|
|||||||||
CAPITAL TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Proceeds from shares issued |
$ | 40,822,367 | $ | 42,432,527 | ||||||||
Proceeds from shares issued from class conversion |
1,477,480 | | ||||||||||
Dividends reinvested |
4,423,056 | 1,615,503 | ||||||||||
Cost of shares redeemed |
(39,387,604 | ) | (39,848,430 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
7,335,299 | 4,199,600 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Proceeds from shares issued |
33,347 | 84,241 | ||||||||||
Dividends reinvested |
66,278 | 43,343 | ||||||||||
Cost of shares redeemed in class conversion |
(1,477,480 | ) | | |||||||||
Cost of shares redeemed |
(672,906 | ) | (3,692,609 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(2,050,761 | ) | (3,565,025 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
42
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Moderate Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
|||||||||||
CAPITAL TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Proceeds from shares issued |
$ | 22,902,065 | $ | 24,614,959 | ||||||||
Dividends reinvested |
2,706,509 | 809,225 | ||||||||||
Cost of shares redeemed |
(24,520,559 | ) | (28,142,283 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
1,088,015 | (2,718,099 | ) | |||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Proceeds from shares issued |
15,367,094 | 26,722,973 | ||||||||||
Dividends reinvested |
8,971,795 | 3,465,223 | ||||||||||
Cost of shares redeemed |
(38,306,310 | ) | (33,324,366 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(13,967,421 | ) | (3,136,170 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Proceeds from shares issued |
4,628,969 | (c) | | |||||||||
Dividends reinvested |
5,932 | (c) | | |||||||||
Cost of shares redeemed |
(110,821 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
4,524,080 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Proceeds from shares issued |
79,027,163 | 170,761,954 | ||||||||||
Dividends reinvested |
15,218,911 | 5,838,343 | ||||||||||
Cost of shares redeemed |
(39,981,794 | ) | (142,402,818 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
54,264,280 | 34,197,479 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Proceeds from shares issued |
99,229,155 | 90,884,102 | ||||||||||
Dividends reinvested |
46,936,868 | 19,574,429 | ||||||||||
Cost of shares redeemed |
(176,500,453 | ) | (163,904,386 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(30,334,430 | ) | (53,445,855 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
$ | 20,859,062 | $ | (24,468,070 | ) | |||||||
|
|
|
|
|||||||||
SHARE TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Issued |
3,654,435 | 4,038,405 | ||||||||||
Issued in class conversion |
133,728 | | ||||||||||
Reinvested |
403,947 | 158,178 | ||||||||||
Redeemed |
(3,508,921 | ) | (3,760,039 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
683,189 | 436,544 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Issued |
3,048 | 8,173 | ||||||||||
Reinvested |
6,126 | 4,347 | ||||||||||
Redeemed in class conversion |
(134,543 | ) | | |||||||||
Redeemed |
(61,391 | ) | (355,894 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(186,760 | ) | (343,374 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
43
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Moderate Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 |
|||||||||||
SHARE TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Issued |
2,084,082 | 2,372,525 | ||||||||||
Reinvested |
251,756 | 81,304 | ||||||||||
Redeemed |
(2,224,181 | ) | (2,708,625 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
111,657 | (254,796 | ) | |||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Issued |
1,401,087 | 2,591,531 | ||||||||||
Reinvested |
837,637 | 347,787 | ||||||||||
Redeemed |
(3,503,221 | ) | (3,215,310 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(1,264,497 | ) | (275,992 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Issued |
414,530 | (c) | | |||||||||
Reinvested |
524 | (c) | | |||||||||
Redeemed |
(10,043 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
405,011 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Issued |
7,094,639 | 16,149,599 | ||||||||||
Reinvested |
1,392,407 | 571,848 | ||||||||||
Redeemed |
(3,580,912 | ) | (13,469,400 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
4,906,134 | 3,252,047 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Issued |
8,847,176 | 8,652,746 | ||||||||||
Reinvested |
4,304,229 | 1,928,700 | ||||||||||
Redeemed |
(15,786,774 | ) | (15,560,542 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(2,635,369 | ) | (4,979,096 | ) | ||||||||
|
|
|
|
|||||||||
Total change in shares |
2,019,365 | (2,164,667 | ) | |||||||||
|
|
|
|
|||||||||
Amounts | designated as are zero or have been rounded to zero. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
44
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderate Fund
Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
Net Investment Income |
Net Realized and Unrealized Gains (Losses) from Investments |
Total from Operations |
Net Investment Income |
Net Realized Gains |
Total Distributions |
Net Asset Value, End of Period |
Total Return (a)(b) |
Net Assets at End of Period |
Ratio of Expenses to Average Net Assets (c) |
Ratio of Net Investment Income to Average Net Assets (c) |
Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c) |
Portfolio Turnover (d) |
|||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.23 | 0.17 | 0.49 | 0.66 | (0.19 | ) | (0.35 | ) | (0.54 | ) | $ | 11.35 | 6.08% | $ | 143,271,556 | 0.54% | 1.50% | 0.54% | 17.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.93 | 0.17 | 1.36 | 1.53 | (0.18 | ) | (0.05 | ) | (0.23 | ) | $ | 11.23 | 15.56% | $ | 134,092,908 | 0.50% | 1.58% | 0.50% | 32.04% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 9.43 | 0.16 | 0.61 | 0.77 | (0.22 | ) | (0.05 | ) | (0.27 | ) | $ | 9.93 | 8.38% | $ | 114,304,018 | 0.49% | 1.66% | 0.49% | 16.02% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.23 | 0.17 | 0.20 | 0.37 | (0.17 | ) | | (0.17 | ) | $ | 9.43 | 4.06% | $ | 107,508,362 | 0.48% | 1.82% | 0.48% | 14.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 8.37 | 0.17 | 0.82 | 0.99 | (0.10 | ) | (0.03 | ) | (0.13 | ) | $ | 9.23 | 11.86% | $ | 96,798,604 | 0.47% | 1.89% | 0.47% | 9.42% | ||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.06 | 0.09 | 0.48 | 0.57 | (0.11 | ) | (0.35 | ) | (0.46 | ) | $ | 11.17 | 5.39% | $ | 140,221,911 | 1.24% | 0.81% | 1.24% | 17.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.79 | 0.09 | 1.33 | 1.42 | (0.10 | ) | (0.05 | ) | (0.15 | ) | $ | 11.06 | 14.68% | $ | 137,680,905 | 1.19% | 0.89% | 1.19% | 32.04% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 9.25 | 0.09 | 0.60 | 0.69 | (0.10 | ) | (0.05 | ) | (0.15 | ) | $ | 9.79 | 7.58% | $ | 124,362,072 | 1.20% | 0.97% | 1.20% | 16.02% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.05 | 0.11 | 0.20 | 0.31 | (0.11 | ) | | (0.11 | ) | $ | 9.25 | 3.37% | $ | 129,312,497 | 1.21% | 1.13% | 1.21% | 14.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 8.28 | 0.10 | 0.81 | 0.91 | (0.11 | ) | (0.03 | ) | (0.14 | ) | $ | 9.05 | 11.09% | $ | 142,313,710 | 1.20% | 1.21% | 1.20% | 9.42% | ||||||||||||||||||||||||||||||||||||
Class R Shares(f)(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.00 | 0.14 | 0.47 | 0.61 | (0.15 | ) | (0.35 | ) | (0.50 | ) | $ | 11.11 | 5.80% | $ | 195,865,740 | 0.83% | 1.23% | 0.83% | 17.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.74 | 0.13 | 1.32 | 1.45 | (0.14 | ) | (0.05 | ) | (0.19 | ) | $ | 11.00 | 15.06% | $ | 207,910,628 | 0.84% | 1.24% | 0.84% | 32.04% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 9.20 | 0.12 | 0.60 | 0.72 | (0.13 | ) | (0.05 | ) | (0.18 | ) | $ | 9.74 | 7.96% | $ | 186,740,830 | 0.85% | 1.31% | 0.85% | 16.02% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.01 | 0.14 | 0.19 | 0.33 | (0.14 | ) | | (0.14 | ) | $ | 9.20 | 3.67% | $ | 174,027,334 | 0.85% | 1.46% | 0.85% | 14.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 8.24 | 0.13 | 0.81 | 0.94 | (0.14 | ) | (0.03 | ) | (0.17 | ) | $ | 9.01 | 11.56% | $ | 158,746,294 | 0.83% | 1.54% | 0.83% | 9.42% | ||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended October 31, 2014 (e)(h) |
$ | 11.03 | 0.09 | 0.28 | 0.37 | (0.10 | ) | | (0.10 | ) | $ | 11.30 | 3.35% | $ | 4,576,528 | 0.22% | 1.16% | 0.22% | 17.14% | |||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.19 | 0.21 | 0.49 | 0.70 | (0.23 | ) | (0.35 | ) | (0.58 | ) | $ | 11.31 | 6.47% | $ | 343,231,738 | 0.18% | 1.84% | 0.18% | 17.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.90 | 0.20 | 1.35 | 1.55 | (0.21 | ) | (0.05 | ) | (0.26 | ) | $ | 11.19 | 15.86% | $ | 284,753,727 | 0.20% | 1.86% | 0.20% | 32.04% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 9.35 | 0.19 | 0.60 | 0.79 | (0.19 | ) | (0.05 | ) | (0.24 | ) | $ | 9.90 | 8.64% | $ | 219,767,806 | 0.20% | 1.95% | 0.20% | 16.02% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.15 | 0.19 | 0.21 | 0.40 | (0.20 | ) | | (0.20 | ) | $ | 9.35 | 4.38% | $ | 176,900,980 | 0.21% | 2.06% | 0.21% | 14.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 8.37 | 0.19 | 0.82 | 1.01 | (0.20 | ) | (0.03 | ) | (0.23 | ) | $ | 9.15 | 12.19% | $ | 131,966,219 | 0.20% | 2.18% | 0.20% | 9.42% | ||||||||||||||||||||||||||||||||||||
Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.18 | 0.16 | 0.49 | 0.65 | (0.18 | ) | (0.35 | ) | (0.53 | ) | $ | 11.30 | 6.05% | $ | 973,090,459 | 0.58% | 1.48% | 0.58% | 17.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 9.90 | 0.16 | 1.34 | 1.50 | (0.17 | ) | (0.05 | ) | (0.22 | ) | $ | 11.18 | 15.30% | $ | 992,441,693 | 0.60% | 1.50% | 0.60% | 32.04% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 9.34 | 0.15 | 0.61 | 0.76 | (0.15 | ) | (0.05 | ) | (0.20 | ) | $ | 9.90 | 8.30% | $ | 927,470,622 | 0.60% | 1.56% | 0.60% | 16.02% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.14 | 0.16 | 0.20 | 0.36 | (0.16 | ) | | (0.16 | ) | $ | 9.34 | 3.96% | $ | 897,059,520 | 0.61% | 1.71% | 0.61% | 14.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 8.36 | 0.16 | 0.81 | 0.97 | (0.16 | ) | (0.03 | ) | (0.19 | ) | $ | 9.14 | 11.76% | $ | 891,324,745 | 0.59% | 1.81% | 0.59% | 9.42% | ||||||||||||||||||||||||||||||||||||
Amounts designated as are zero or have been rounded to zero.
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Per share calculations were performed using average shares method. |
(f) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
(g) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(h) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. Total return is calculated based on inception date of March 3, 2014 through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
45
Fund Commentary | Nationwide Investor Destinations Moderately Conservative Fund |
46
Fund Commentary (cont.) | Nationwide Investor Destinations Moderately Conservative Fund |
47
Fund Overview | Nationwide Investor Destinations Moderately Conservative Fund |
| Percentages indicated are based upon net assets as of October 31, 2014. |
| Amount rounds to less than 0.1%. |
| Percentages indicated are based upon total investments as of October 31, 2014. |
48
Fund Performance | Nationwide Investor Destinations Moderately Conservative Fund |
49
Fund Performance (cont.) | Nationwide Investor Destinations Moderately Conservative Fund |
Performance of a $50,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $50,000 invested in Service Class shares of the Nationwide Investor Destinations Moderately Conservative Fund versus the Barclays U.S. Aggregate Bond Index, the Russell 3000® Index, the MSCI EAFE® Index, the Barclays U.S. 1-3 Year Government/Credit Bond Index, the Composite Index* and the Consumer Price Index (CPI) over the 10-year period ended 10/31/14. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes. A description of the benchmarks can be found on the Market Index Definitions page at the back of this book.
* | The Composite Index comprises 30% Russell 3000® Index, 35% Barclays U.S. Aggregate Bond Index, 10% MSCI EAFE® Index and 25% Barclays U.S. 1-3 Year Govt/Credit Bond Index. |
50
Shareholder Expense Example | Nationwide Investor Destinations Moderately Conservative Fund |
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
Nationwide Investor Destinations October 31, 2004 |
Beginning Account Value ($) 05/01/14 |
Ending Account Value ($) 10/31/14 |
Expenses Paid During Period ($) 05/01/14 - 10/31/14(a) |
Expense Ratio During Period (%) 05/01/14 - 10/31/14(a) | ||||||||
Class A Shares | Actual | (b) | 1,000.00 | 1,017.90 | 2.90 | 0.57 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.33 | 2.91 | 0.57 | |||||||
Class C Shares | Actual | (b) | 1,000.00 | 1,014.50 | 6.50 | 1.28 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,018.75 | 6.51 | 1.28 | |||||||
Class R Shares(d) | Actual | (b) | 1,000.00 | 1,017.40 | 4.32 | 0.85 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,020.92 | 4.33 | 0.85 | |||||||
Institutional Service Class Shares | Actual | (b) | 1,000.00 | 1,020.10 | 1.17 | 0.23 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.05 | 1.17 | 0.23 | |||||||
Institutional Class Shares | Actual | (b) | 1,000.00 | 1,020.60 | 1.02 | 0.20 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.20 | 1.02 | 0.20 | |||||||
Service Class Shares | Actual | (b) | 1,000.00 | 1,018.60 | 3.05 | 0.60 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.18 | 3.06 | 0.60 |
(a) | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. |
(b) | Expenses are equal to the Funds annualized expense ratio multiplied by the average account value from May 1, 2014 through October 31, 2014 multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with Securities and Exchange Commission guidelines. |
(c) | Represents the hypothetical 5% return before expenses. |
(d) | Effective March 3, 2014 Class R2 Shares were renamed Class R Shares. |
51
Statement of Investments
October 31, 2014
Nationwide Investor Destinations Moderately Conservative Fund
The accompanying notes are an integral part of these financial statements.
52
Statement of Assets and Liabilities
October 31, 2014
Nationwide Investor Destinations Moderately Conservative Fund | ||||||
Assets: |
||||||
Investments in affiliates, at value (cost $547,029,927) |
$ | 595,742,508 | ||||
Receivable for investments sold |
918,871 | |||||
Receivable for capital shares issued |
554,051 | |||||
Prepaid expenses |
38,702 | |||||
|
|
|||||
Total Assets |
597,254,132 | |||||
|
|
|||||
Liabilities: |
||||||
Payable for capital shares redeemed |
1,399,604 | |||||
Accrued expenses and other payables: |
||||||
Investment advisory fees |
64,914 | |||||
Fund administration fees |
17,079 | |||||
Distribution fees |
153,646 | |||||
Administrative servicing fees |
77,912 | |||||
Accounting and transfer agent fees |
5,983 | |||||
Trustee fees |
1,783 | |||||
Custodian fees |
1,809 | |||||
Compliance program costs (Note 3) |
165 | |||||
Professional fees |
13,427 | |||||
Printing fees |
3,923 | |||||
Other |
1,785 | |||||
|
|
|||||
Total Liabilities |
1,742,030 | |||||
|
|
|||||
Net Assets |
$ | 595,512,102 | ||||
|
|
|||||
Represented by: |
||||||
Capital |
$ | 545,267,845 | ||||
Accumulated undistributed net investment income |
500,233 | |||||
Accumulated net realized gains from affiliated investments |
1,031,443 | |||||
Net unrealized appreciation/(depreciation) from investments in affiliates |
48,712,581 | |||||
|
|
|||||
Net Assets |
$ | 595,512,102 | ||||
|
|
|||||
Net Assets: |
||||||
Class A Shares |
$ | 58,734,361 | ||||
Class C Shares |
55,313,487 | |||||
Class R Shares |
83,675,301 | |||||
Institutional Service Class Shares |
2,070,270 | |||||
Institutional Class Shares |
111,372,125 | |||||
Service Class Shares |
284,346,558 | |||||
|
|
|||||
Total |
$ | 595,512,102 | ||||
|
|
|||||
Shares Outstanding (unlimited number of shares authorized): |
||||||
Class A Shares |
5,497,597 | |||||
Class C Shares |
5,202,497 | |||||
Class R Shares |
7,821,691 | |||||
Institutional Service Class Shares |
192,539 | |||||
Institutional Class Shares |
10,326,129 | |||||
Service Class Shares |
26,475,687 | |||||
|
|
|||||
Total |
55,516,140 | |||||
|
|
|||||
53
Statement of Assets and Liabilities (Continued)
October 31, 2014
Nationwide Investor Destinations Moderately Conservative Fund | ||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): |
||||||
Class A Shares (a) |
$ | 10.68 | ||||
Class C Shares (b) |
$ | 10.63 | ||||
Class R Shares |
$ | 10.70 | ||||
Institutional Service Class Shares |
$ | 10.75 | ||||
Institutional Class Shares |
$ | 10.79 | ||||
Service Class Shares |
$ | 10.74 | ||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): |
||||||
Class A Shares |
$ | 11.33 | ||||
|
|
|||||
Maximum Sales Charge: |
||||||
Class A Shares |
5.75 | % | ||||
|
|
|||||
(a) | For Class A Shares that were purchased without a sales charge because such purchase exceeded $1,000,000, a contingent deferred sales charge of 1.00% may apply to any redemption of such shares within 18 months of their purchase. |
(b) | For Class C Shares, the redemption price per share is reduced by a contingent deferred sales charge of 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
54
Statement of Operations
For the Period Ended October 31, 2014
Nationwide Investor Destinations Moderately Conservative Fund | ||||||
INVESTMENT INCOME: |
||||||
Dividend income from affiliates |
$ | 9,413,463 | ||||
Interest income from affiliates |
3,018,446 | |||||
|
|
|||||
Total Income |
12,431,909 | |||||
|
|
|||||
EXPENSES: |
||||||
Investment advisory fees |
764,286 | |||||
Fund administration fees |
197,533 | |||||
Distribution fees Class A |
136,841 | |||||
Distribution fees Class B (a) |
2,472 | |||||
Distribution fees Class C |
515,187 | |||||
Distribution fees Class R (b) |
431,949 | |||||
Distribution fees Service Class |
731,635 | |||||
Administrative servicing fees Class A |
60,533 | |||||
Administrative servicing fees Class C |
25,892 | |||||
Administrative servicing fees Class R (b) |
129,585 | |||||
Administrative servicing fees Institutional Service Class (c) |
106 | |||||
Administrative servicing fees Service Class |
438,983 | |||||
Registration and filing fees |
78,476 | |||||
Professional fees |
48,924 | |||||
Printing fees |
15,945 | |||||
Trustee fees |
19,196 | |||||
Custodian fees |
21,997 | |||||
Accounting and transfer agent fees |
45,925 | |||||
Compliance program costs (Note 3) |
1,727 | |||||
Other |
13,637 | |||||
|
|
|||||
Total expenses before earnings credit |
3,680,829 | |||||
|
|
|||||
Earnings credit (Note 5) |
(17 | ) | ||||
|
|
|||||
Net Expenses |
3,680,812 | |||||
|
|
|||||
NET INVESTMENT INCOME |
8,751,097 | |||||
|
|
|||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: |
||||||
Net realized gain distributions from underlying affiliated funds |
10,154,623 | |||||
Net realized gains from investment transactions with affiliates |
5,069,612 | |||||
|
|
|||||
Net realized gains from affiliated investments |
15,224,235 | |||||
|
|
|||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
3,923,073 | |||||
|
|
|||||
Net realized/unrealized gains from affiliated investments |
19,147,308 | |||||
|
|
|||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 27,898,405 | ||||
|
|
|||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
55
Statements of Changes in Net Assets
Nationwide Investor Destinations Moderately Conservative Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 8,751,097 | $ | 8,373,672 | ||||||||
Net realized gains from affiliated investments |
15,224,235 | 44,896,240 | ||||||||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
3,923,073 | (1,962,287 | ) | |||||||||
|
|
|
|
|||||||||
Change in net assets resulting from operations |
27,898,405 | 51,307,625 | ||||||||||
|
|
|
|
|||||||||
Distributions to Shareholders From: |
||||||||||||
Net investment income: |
||||||||||||
Class A |
(903,512 | ) | (790,719 | ) | ||||||||
Class B (a) |
(4,766 | ) | (11,210 | ) | ||||||||
Class C |
(497,299 | ) | (442,720 | ) | ||||||||
Class R (b) |
(1,181,605 | ) | (1,172,443 | ) | ||||||||
Institutional Service Class |
(2,557 | )(c) | | |||||||||
Institutional Class |
(2,009,152 | ) | (1,593,164 | ) | ||||||||
Service Class |
(4,710,564 | ) | (4,898,835 | ) | ||||||||
Net realized gains: |
||||||||||||
Class A |
(3,513,884 | ) | (626,934 | ) | ||||||||
Class B (a) |
(54,900 | ) | (18,026 | ) | ||||||||
Class C |
(3,262,285 | ) | (594,060 | ) | ||||||||
Class R (b) |
(5,946,445 | ) | (1,190,565 | ) | ||||||||
Institutional Service Class |
| (c) | | |||||||||
Institutional Class |
(6,388,104 | ) | (1,028,081 | ) | ||||||||
Service Class |
(20,230,961 | ) | (4,228,483 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from shareholder distributions |
(48,706,034 | ) | (16,595,240 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
36,499,515 | (2,485,220 | ) | |||||||||
|
|
|
|
|||||||||
Change in net assets |
15,691,886 | 32,227,165 | ||||||||||
|
|
|
|
|||||||||
Net Assets: |
||||||||||||
Beginning of year |
579,820,216 | 547,593,051 | ||||||||||
|
|
|
|
|||||||||
End of year |
$ | 595,512,102 | $ | 579,820,216 | ||||||||
|
|
|
|
|||||||||
Accumulated undistributed net investment income at end of year |
$ | 500,233 | $ | 661,891 | ||||||||
|
|
|
|
|||||||||
CAPITAL TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Proceeds from shares issued |
$ | 23,332,546 | $ | 16,704,699 | ||||||||
Proceeds from shares issued from class conversion |
607,783 | | ||||||||||
Dividends reinvested |
3,079,322 | 1,013,536 | ||||||||||
Cost of shares redeemed |
(15,278,212 | ) | (16,171,370 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
11,741,439 | 1,546,865 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Proceeds from shares issued |
3,131 | 57,939 | ||||||||||
Dividends reinvested |
58,311 | 25,751 | ||||||||||
Cost of shares redeemed in class conversion |
(607,783 | ) | | |||||||||
Cost of shares redeemed |
(302,833 | ) | (739,852 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(849,174 | ) | (656,162 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
56
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Moderately Conservative Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
CAPITAL TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Proceeds from shares issued |
$ | 17,151,764 | $ | 10,964,387 | ||||||||
Dividends reinvested |
2,120,357 | 502,323 | ||||||||||
Cost of shares redeemed |
(9,165,457 | ) | (8,616,439 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
10,106,664 | 2,850,271 | ||||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Proceeds from shares issued |
10,205,993 | 9,853,636 | ||||||||||
Dividends reinvested |
6,892,215 | 2,282,342 | ||||||||||
Cost of shares redeemed |
(18,473,547 | ) | (15,025,660 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(1,375,339 | ) | (2,889,682 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Proceeds from shares issued |
2,130,820 | (c) | | |||||||||
Dividends reinvested |
2,557 | (c) | | |||||||||
Cost of shares redeemed |
(85,693 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
2,047,684 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Proceeds from shares issued |
30,154,011 | 59,582,114 | ||||||||||
Dividends reinvested |
8,395,081 | 2,620,089 | ||||||||||
Cost of shares redeemed |
(17,337,575 | ) | (44,476,814 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
21,211,517 | 17,725,389 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Proceeds from shares issued |
37,612,776 | 39,820,384 | ||||||||||
Dividends reinvested |
24,940,540 | 9,127,318 | ||||||||||
Cost of shares redeemed |
(68,936,592 | ) | (70,009,603 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(6,383,276 | ) | (21,061,901 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
$ | 36,499,515 | $ | (2,485,220 | ) | |||||||
|
|
|
|
|||||||||
SHARE TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Issued |
2,193,771 | 1,554,739 | ||||||||||
Issued in class conversion |
58,209 | | ||||||||||
Reinvested |
297,377 | 97,016 | ||||||||||
Redeemed |
(1,443,682 | ) | (1,505,531 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
1,105,675 | 146,224 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Issued |
296 | 5,355 | ||||||||||
Reinvested |
5,456 | 2,473 | ||||||||||
Redeemed in class conversion |
(57,974 | ) | | |||||||||
Redeemed |
(28,426 | ) | (69,551 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(80,648 | ) | (61,723 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
57
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Moderately Conservative Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
SHARE TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Issued |
1,624,684 | 1,028,773 | ||||||||||
Reinvested |
205,906 | 48,420 | ||||||||||
Redeemed |
(864,577 | ) | (811,185 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
966,013 | 266,008 | ||||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Issued |
964,420 | 922,547 | ||||||||||
Reinvested |
665,030 | 218,515 | ||||||||||
Redeemed |
(1,742,612 | ) | (1,404,329 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(113,162 | ) | (263,267 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Issued |
200,465 | (c) | | |||||||||
Reinvested |
239 | (c) | | |||||||||
Redeemed |
(8,165 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
192,539 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Issued |
2,821,603 | 5,491,565 | ||||||||||
Reinvested |
803,170 | 248,037 | ||||||||||
Redeemed |
(1,621,254 | ) | (4,095,776 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
2,003,519 | 1,643,826 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Issued |
3,520,508 | 3,699,770 | ||||||||||
Reinvested |
2,398,310 | 870,046 | ||||||||||
Redeemed |
(6,454,494 | ) | (6,484,136 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(535,676 | ) | (1,914,320 | ) | ||||||||
|
|
|
|
|||||||||
Total change in shares |
3,538,260 | (183,252 | ) | |||||||||
|
|
|
|
|||||||||
Amount designated as is zero or has been rounded to zero.
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
58
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Moderately Conservative Fund
Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
Net Investment Income |
Net
Realized and Unrealized Gains (Losses) from Investments |
Total from Operations |
Net Investment Income |
Net Realized Gains |
Total Distributions |
Net Asset Value, End of Period |
Total Return (a)(b) |
Net Assets at End of Period |
Ratio of Expenses to Average Net Assets (c) |
Ratio of Net Investment Income to Average Net Assets (c) |
Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c) |
Portfolio Turnover (d) |
|||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.11 | 0.16 | 0.35 | 0.51 | (0.18 | ) | (0.76 | ) | (0.94 | ) | $ | 10.68 | 4.95% | $ | 58,734,361 | 0.57% | 1.54% | 0.57% | 18.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.46 | 0.17 | 0.81 | 0.98 | (0.18 | ) | (0.15 | ) | (0.33 | ) | $ | 11.11 | 9.59% | $ | 48,814,648 | 0.52% | 1.58% | 0.52% | 36.85% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.08 | 0.18 | 0.49 | 0.67 | (0.19 | ) | (0.10 | ) | (0.29 | ) | $ | 10.46 | 6.81% | $ | 44,422,496 | 0.51% | 1.80% | 0.51% | 20.61% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.86 | 0.20 | 0.22 | 0.42 | (0.20 | ) | | (0.20 | ) | $ | 10.08 | 4.31% | $ | 36,925,502 | 0.49% | 1.99% | 0.49% | 17.89% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.21 | 0.21 | 0.64 | 0.85 | (0.20 | ) | | (0.20 | ) | $ | 9.86 | 9.38% | $ | 33,209,551 | 0.50% | 2.17% | 0.50% | 12.60% | |||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.07 | 0.09 | 0.34 | 0.43 | (0.11 | ) | (0.76 | ) | (0.87 | ) | $ | 10.63 | 4.17% | $ | 55,313,487 | 1.26% | 0.84% | 1.26% | 18.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.42 | 0.10 | 0.81 | 0.91 | (0.11 | ) | (0.15 | ) | (0.26 | ) | $ | 11.07 | 8.88% | $ | 46,881,793 | 1.21% | 0.90% | 1.21% | 36.85% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.04 | 0.11 | 0.49 | 0.60 | (0.12 | ) | (0.10 | ) | (0.22 | ) | $ | 10.42 | 6.09% | $ | 41,368,353 | 1.22% | 1.10% | 1.22% | 20.61% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.82 | 0.13 | 0.22 | 0.35 | (0.13 | ) | | (0.13 | ) | $ | 10.04 | 3.55% | $ | 38,970,245 | 1.22% | 1.27% | 1.22% | 17.89% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.18 | 0.14 | 0.64 | 0.78 | (0.14 | ) | | (0.14 | ) | $ | 9.82 | 8.65% | $ | 40,700,682 | 1.21% | 1.46% | 1.21% | 12.60% | |||||||||||||||||||||||||||||||||||||
Class R Shares(f)(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.13 | 0.13 | 0.35 | 0.48 | (0.15 | ) | (0.76 | ) | (0.91 | ) | $ | 10.70 | 4.63% | $ | 83,675,301 | 0.86% | 1.27% | 0.86% | 18.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.47 | 0.13 | 0.83 | 0.96 | (0.15 | ) | (0.15 | ) | (0.30 | ) | $ | 11.13 | 9.30% | $ | 88,286,612 | 0.86% | 1.25% | 0.86% | 36.85% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.09 | 0.15 | 0.48 | 0.63 | (0.15 | ) | (0.10 | ) | (0.25 | ) | $ | 10.47 | 6.43% | $ | 85,855,793 | 0.86% | 1.45% | 0.86% | 20.61% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.87 | 0.16 | 0.23 | 0.39 | (0.17 | ) | | (0.17 | ) | $ | 10.09 | 3.92% | $ | 80,556,773 | 0.87% | 1.61% | 0.87% | 17.89% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.22 | 0.17 | 0.65 | 0.82 | (0.17 | ) | | (0.17 | ) | $ | 9.87 | 9.00% | $ | 72,987,185 | 0.85% | 1.78% | 0.85% | 12.60% | |||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended October 31, 2014 (e)(h) |
$ | 10.53 | 0.10 | 0.22 | 0.32 | (0.10 | ) | | (0.10 | ) | $ | 10.75 | 3.06% | $ | 2,070,270 | 0.24% | 1.37% | 0.24% | 18.14% | |||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.21 | 0.20 | 0.36 | 0.56 | (0.22 | ) | (0.76 | ) | (0.98 | ) | $ | 10.79 | 5.38% | $ | 111,372,125 | 0.21% | 1.89% | 0.21% | 18.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.55 | 0.20 | 0.82 | 1.02 | (0.21 | ) | (0.15 | ) | (0.36 | ) | $ | 11.21 | 9.93% | $ | 93,302,759 | 0.21% | 1.88% | 0.21% | 36.85% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.16 | 0.22 | 0.49 | 0.71 | (0.22 | ) | (0.10 | ) | (0.32 | ) | $ | 10.55 | 7.17% | $ | 70,457,429 | 0.22% | 2.09% | 0.22% | 20.61% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.94 | 0.23 | 0.22 | 0.45 | (0.23 | ) | | (0.23 | ) | $ | 10.16 | 4.55% | $ | 54,326,098 | 0.22% | 2.21% | 0.22% | 17.89% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.28 | 0.23 | 0.66 | 0.89 | (0.23 | ) | | (0.23 | ) | $ | 9.94 | 9.74% | $ | 38,719,904 | 0.21% | 2.39% | 0.21% | 12.60% | |||||||||||||||||||||||||||||||||||||
Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 11.17 | 0.16 | 0.34 | 0.50 | (0.17 | ) | (0.76 | ) | (0.93 | ) | $ | 10.74 | 4.88% | $ | 284,346,558 | 0.61% | 1.52% | 0.61% | 18.14% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.51 | 0.16 | 0.82 | 0.98 | (0.17 | ) | (0.15 | ) | (0.32 | ) | $ | 11.17 | 9.53% | $ | 301,635,705 | 0.61% | 1.50% | 0.61% | 36.85% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.12 | 0.17 | 0.50 | 0.67 | (0.18 | ) | (0.10 | ) | (0.28 | ) | $ | 10.51 | 6.77% | $ | 303,997,111 | 0.62% | 1.70% | 0.62% | 20.61% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 9.90 | 0.19 | 0.22 | 0.41 | (0.19 | ) | | (0.19 | ) | $ | 10.12 | 4.15% | $ | 290,405,875 | 0.62% | 1.86% | 0.62% | 17.89% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.25 | 0.20 | 0.64 | 0.84 | (0.19 | ) | | (0.19 | ) | $ | 9.90 | 9.22% | $ | 283,720,301 | 0.60% | 2.05% | 0.60% | 12.60% | |||||||||||||||||||||||||||||||||||||
Amounts designated as are zero or have been rounded to zero.
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Per share calculations were performed using average shares method. |
(f) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
(g) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(h) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. Total return is calculated based on inception date of March 3, 2014 through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
59
Fund Commentary | Nationwide Investor Destinations Conservative Fund |
60
Fund Commentary (cont.) | Nationwide Investor Destinations Conservative Fund |
61
Fund Overview | Nationwide Investor Destinations Conservative Fund |
| Percentages indicated are based upon net assets as of October 31, 2014. |
| Percentages indicated are based upon total investments as of October 31, 2014. |
62
Fund Performance | Nationwide Investor Destinations Conservative Fund |
63
Fund Performance (cont.) | Nationwide Investor Destinations Conservative Fund |
Performance of a $50,000 Investment
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.
Comparative performance of $50,000 invested in Service Class shares of the Nationwide Investor Destinations Conservative Fund versus the Barclays U.S. Aggregate Bond Index, the Russell 3000® Index, the MSCI EAFE® Index, the Barclays U.S. 1-3 Year Government/Credit Bond Index, the Citigroup 3-Month Treasury Bill (T-Bill) Index, the Composite Index* and the Consumer Price Index (CPI) over the 10-year period ended 10/31/14. Unlike the Fund, the performance for these unmanaged indexes does not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes. A description of the benchmarks can be found on the Market Index Definitions page at the back of this book.
* | The Composite Index comprises 15% Russell 3000® Index, 40% Barclays U.S. Aggregate Bond Index, 5% MSCI EAFE® Index, 35% Barclays U.S. 1-3 Year Govt/Credit Bond Index and 5% Citigroup 3-Month T-Bill Index. |
64
Shareholder Expense Example | Nationwide Investor Destinations Conservative Fund |
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
Nationwide Investor Destinations October 31, 2014 |
Beginning Account Value ($) 05/01/14 |
Ending Account Value ($) 10/31/14 |
Expenses Paid During Period ($) 05/01/14 - 10/31/14(a) |
Expense Ratio During Period (%) 05/01/14 - 10/31/14(a) | ||||||||
Class A Shares | Actual | (b) | 1,000.00 | 1,015.80 | 2.95 | 0.58 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.28 | 2.96 | 0.58 | |||||||
Class C Shares | Actual | (b) | 1,000.00 | 1,011.40 | 6.54 | 1.29 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,018.70 | 6.56 | 1.29 | |||||||
Class R Shares(d) | Actual | (b) | 1,000.00 | 1,014.30 | 4.42 | 0.87 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,020.82 | 4.43 | 0.87 | |||||||
Institutional Service Class Shares | Actual | (b) | 1,000.00 | 1,017.40 | 1.27 | 0.25 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,023.95 | 1.28 | 0.25 | |||||||
Institutional Class Shares | Actual | (b) | 1,000.00 | 1,017.60 | 1.12 | 0.22 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,024.10 | 1.12 | 0.22 | |||||||
Service Class Shares | Actual | (b) | 1,000.00 | 1,014.60 | 3.15 | 0.62 | ||||||
Hypothetical | (b)(c) | 1,000.00 | 1,022.08 | 3.16 | 0.62 |
(a) | Expenses are based on the direct expenses of the Fund and do not include the effect of the underlying Funds expenses, which are disclosed in the Fee and Expense table and described more fully in a footnote to that table in your Fund Prospectus. |
(b) | Expenses are equal to the Funds annualized expense ratio multiplied by the average account value from May 1, 2014 through October 31, 2014 multiplied to reflect one-half year period. The expense ratio presented represents a six-month, annualized ratio in accordance with Securities and Exchange Commission guidelines. |
(c) | Represents the hypothetical 5% return before expenses. |
(d) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
65
Statement of Investments
October 31, 2014
Nationwide Investor Destinations Conservative Fund
The accompanying notes are an integral part of these financial statements.
66
Statement of Assets and Liabilities
October 31, 2014
Nationwide Investor Destinations Conservative Fund | ||||||
Assets: |
||||||
Investments in affiliates, at value (cost $460,805,439) |
$ | 472,157,487 | ||||
Cash |
46 | |||||
Receivable for investments sold |
387,208 | |||||
Receivable for capital shares issued |
1,054,125 | |||||
Prepaid expenses |
40,476 | |||||
|
|
|||||
Total Assets |
473,639,342 | |||||
|
|
|||||
Liabilities: |
||||||
Payable for capital shares redeemed |
946,645 | |||||
Accrued expenses and other payables: |
||||||
Investment advisory fees |
51,426 | |||||
Fund administration fees |
14,800 | |||||
Distribution fees |
135,972 | |||||
Administrative servicing fees |
60,262 | |||||
Accounting and transfer agent fees |
6,098 | |||||
Trustee fees |
1,387 | |||||
Custodian fees |
1,278 | |||||
Compliance program costs (Note 3) |
122 | |||||
Professional fees |
11,894 | |||||
Printing fees |
5,786 | |||||
Other |
2,607 | |||||
|
|
|||||
Total Liabilities |
1,238,277 | |||||
|
|
|||||
Net Assets |
$ | 472,401,065 | ||||
|
|
|||||
Represented by: |
||||||
Capital |
$ | 458,759,594 | ||||
Accumulated undistributed net investment income |
565,388 | |||||
Accumulated net realized gains from affiliated investments |
1,724,035 | |||||
Net unrealized appreciation/(depreciation) from investments in affiliates |
11,352,048 | |||||
|
|
|||||
Net Assets |
$ | 472,401,065 | ||||
|
|
|||||
Net Assets: |
||||||
Class A Shares |
$ | 81,289,282 | ||||
Class C Shares |
72,301,458 | |||||
Class R Shares |
51,948,486 | |||||
Institutional Service Class Shares |
13,465,257 | |||||
Institutional Class Shares |
69,248,334 | |||||
Service Class Shares |
184,148,248 | |||||
|
|
|||||
Total |
$ | 472,401,065 | ||||
|
|
|||||
Shares Outstanding (unlimited number of shares authorized): |
||||||
Class A Shares |
7,893,961 | |||||
Class C Shares |
7,050,873 | |||||
Class R Shares |
5,057,922 | |||||
Institutional Service Class Shares |
1,303,964 | |||||
Institutional Class Shares |
6,692,754 | |||||
Service Class Shares |
17,835,494 | |||||
|
|
|||||
Total |
45,834,968 | |||||
|
|
|||||
67
Statement of Assets and Liabilities (Continued)
October 31, 2014
Nationwide Investor Destinations Conservative Fund | ||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): |
||||||
Class A Shares (a) |
$ | 10.30 | ||||
Class C Shares (b) |
$ | 10.25 | ||||
Class R Shares |
$ | 10.27 | ||||
Institutional Service Class Shares |
$ | 10.33 | ||||
Institutional Class Shares |
$ | 10.35 | ||||
Service Class Shares |
$ | 10.32 | ||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): |
||||||
Class A Shares |
$ | 10.93 | ||||
|
|
|||||
Maximum Sales Charge: |
||||||
Class A Shares |
5.75 | % | ||||
|
|
|||||
(a) | For Class A Shares that were purchased without a sales charge because such purchase exceeded $1,000,000, a contingent deferred sales charge of 1.00% may apply to any redemption of such shares within 18 months of their purchase. |
(b) | For Class C Shares, the redemption price per share is reduced by a contingent deferred sales charge of 1.00% for shares held less than one year. |
The accompanying notes are an integral part of these financial statements.
68
Statement of Operations
For the Period Ended October 31, 2014
Nationwide Investor Destinations Conservative Fund | ||||||
INVESTMENT INCOME: |
||||||
Dividend income from affiliates |
$ | 5,955,748 | ||||
Interest income from affiliates |
3,321,629 | |||||
|
|
|||||
Total Income |
9,277,377 | |||||
|
|
|||||
EXPENSES: |
||||||
Investment advisory fees |
575,004 | |||||
Fund administration fees |
165,441 | |||||
Distribution fees Class A |
180,874 | |||||
Distribution fees Class B (a) |
1,107 | |||||
Distribution fees Class C |
567,208 | |||||
Distribution fees Class R (b) |
275,989 | |||||
Distribution fees Service Class |
467,574 | |||||
Administrative servicing fees Class A |
74,084 | |||||
Administrative servicing fees Class C |
29,766 | |||||
Administrative servicing fees Class R (b) |
82,797 | |||||
Administrative servicing fees Institutional Service Class (c) |
542 | |||||
Administrative servicing fees Service Class |
286,992 | |||||
Registration and filing fees |
85,438 | |||||
Professional fees |
42,546 | |||||
Printing fees |
22,376 | |||||
Trustee fees |
14,526 | |||||
Custodian fees |
16,417 | |||||
Accounting and transfer agent fees |
49,163 | |||||
Compliance program costs (Note 3) |
1,306 | |||||
Other |
10,695 | |||||
|
|
|||||
Total expenses before earnings credit |
2,949,845 | |||||
|
|
|||||
Earnings credit (Note 5) |
(16 | ) | ||||
|
|
|||||
Net Expenses |
2,949,829 | |||||
|
|
|||||
NET INVESTMENT INCOME |
6,327,548 | |||||
|
|
|||||
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: |
||||||
Net realized gain distributions from underlying affiliated funds |
4,257,614 | |||||
Net realized losses from investment transactions with affiliates |
(234,765 | ) | ||||
|
|
|||||
Net realized gains from affiliated investments |
4,022,849 | |||||
|
|
|||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
4,923,880 | |||||
|
|
|||||
Net realized/unrealized gains from affiliated investments |
8,946,729 | |||||
|
|
|||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 15,274,277 | ||||
|
|
|||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
69
Statements of Changes in Net Assets
Nationwide Investor Destinations Conservative Fund | ||||||||||||
Year Ended October 31, 2014 |
Year Ended October 31, 2013 | |||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 6,327,548 | $ | 6,192,084 | ||||||||
Net realized gains from affiliated investments |
4,022,849 | 25,904,687 | ||||||||||
Net change in unrealized appreciation/(depreciation) from investments in affiliates |
4,923,880 | (14,781,998 | ) | |||||||||
|
|
|
|
|||||||||
Change in net assets resulting from operations |
15,274,277 | 17,314,773 | ||||||||||
|
|
|
|
|||||||||
Distributions to Shareholders From: |
||||||||||||
Net investment income: |
||||||||||||
Class A |
(1,125,442 | ) | (896,263 | ) | ||||||||
Class B (a) |
(1,735 | ) | (4,868 | ) | ||||||||
Class C |
(504,991 | ) | (479,474 | ) | ||||||||
Class R (b) |
(711,860 | ) | (842,015 | ) | ||||||||
Institutional Service Class |
(18,248 | )(c) | | |||||||||
Institutional Class |
(1,319,073 | ) | (1,087,995 | ) | ||||||||
Service Class |
(2,847,468 | ) | (3,314,045 | ) | ||||||||
Net realized gains: |
||||||||||||
Class A |
(3,043,206 | ) | (913,246 | ) | ||||||||
Class B (a) |
(18,499 | ) | (10,854 | ) | ||||||||
Class C |
(2,475,725 | ) | (794,205 | ) | ||||||||
Class R (b) |
(2,830,129 | ) | (1,134,899 | ) | ||||||||
Institutional Service Class |
| (c) | | |||||||||
Institutional Class |
(3,270,104 | ) | (872,748 | ) | ||||||||
Service Class |
(9,367,981 | ) | (3,722,603 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from shareholder distributions |
(27,534,461 | ) | (14,073,215 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
55,988,226 | (3,525,222 | ) | |||||||||
|
|
|
|
|||||||||
Change in net assets |
43,728,042 | (283,664 | ) | |||||||||
|
|
|
|
|||||||||
Net Assets: |
||||||||||||
Beginning of year |
428,673,023 | 428,956,687 | ||||||||||
|
|
|
|
|||||||||
End of year |
$ | 472,401,065 | $ | 428,673,023 | ||||||||
|
|
|
|
|||||||||
Accumulated undistributed net investment income at end of year |
$ | 565,388 | $ | 652,785 | ||||||||
|
|
|
|
|||||||||
CAPITAL TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Proceeds from shares issued |
$ | 60,098,017 | $ | 35,486,527 | ||||||||
Proceeds from shares issued from class conversion |
253,391 | | ||||||||||
Dividends reinvested |
2,961,550 | 1,189,076 | ||||||||||
Cost of shares redeemed |
(41,736,036 | ) | (27,016,636 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
21,576,922 | 9,658,967 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Proceeds from shares issued |
575 | 122,678 | ||||||||||
Dividends reinvested |
18,324 | 11,564 | ||||||||||
Cost of shares redeemed in class conversion |
(253,391 | ) | | |||||||||
Cost of shares redeemed |
(147,348 | ) | (447,379 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(381,840 | ) | (313,137 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
70
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Conservative Fund | ||||||||||||
Year Ended October 31, 2014 |
Year
Ended October 31, 2013 | |||||||||||
CAPITAL TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Proceeds from shares issued |
$ | 37,388,479 | $ | 19,103,463 | ||||||||
Dividends reinvested |
1,804,373 | 712,048 | ||||||||||
Cost of shares redeemed |
(15,639,872 | ) | (13,093,639 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
23,552,980 | 6,721,872 | ||||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Proceeds from shares issued |
6,253,476 | 10,116,540 | ||||||||||
Dividends reinvested |
3,462,123 | 1,922,683 | ||||||||||
Cost of shares redeemed |
(14,803,137 | ) | (18,559,538 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(5,087,538 | ) | (6,520,315 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Proceeds from shares issued |
13,777,518 | (c) | | |||||||||
Dividends reinvested |
18,248 | (c) | | |||||||||
Cost of shares redeemed |
(412,793 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
13,382,973 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Proceeds from shares issued |
34,078,911 | 58,072,714 | ||||||||||
Dividends reinvested |
4,588,443 | 1,960,346 | ||||||||||
Cost of shares redeemed |
(31,475,093 | ) | (44,516,969 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
7,192,261 | 15,516,091 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Proceeds from shares issued |
38,286,740 | 32,082,777 | ||||||||||
Dividends reinvested |
12,214,017 | 7,036,372 | ||||||||||
Cost of shares redeemed |
(54,748,289 | ) | (67,707,849 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(4,247,532 | ) | (28,588,700 | ) | ||||||||
|
|
|
|
|||||||||
Change in net assets from capital transactions |
$ | 55,988,226 | $ | (3,525,222 | ) | |||||||
|
|
|
|
|||||||||
SHARE TRANSACTIONS: |
||||||||||||
Class A Shares |
||||||||||||
Issued |
5,863,781 | 3,381,795 | ||||||||||
Issued in class conversion |
25,055 | | ||||||||||
Reinvested |
294,189 | 114,647 | ||||||||||
Redeemed |
(4,066,911 | ) | (2,575,432 | ) | ||||||||
|
|
|
|
|||||||||
Total Class A Shares |
2,116,114 | 921,010 | ||||||||||
|
|
|
|
|||||||||
Class B Shares (a) |
||||||||||||
Issued |
57 | 11,562 | ||||||||||
Reinvested |
1,812 | 1,110 | ||||||||||
Redeemed in class conversion |
(24,865 | ) | | |||||||||
Redeemed |
(14,428 | ) | (42,395 | ) | ||||||||
|
|
|
|
|||||||||
Total Class B Shares |
(37,424 | ) | (29,723 | ) | ||||||||
|
|
|
|
|||||||||
(a) | Effective February 21, 2014, Class B Shares were converted into Class A Shares. |
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
71
Statements of Changes in Net Assets (Continued)
Nationwide Investor Destinations Conservative Fund | ||||||||||||
Year Ended October 31, 2014 |
Year
Ended October 31, 2013 | |||||||||||
SHARE TRANSACTIONS: (continued) |
||||||||||||
Class C Shares |
||||||||||||
Issued |
3,664,978 | 1,827,122 | ||||||||||
Reinvested |
180,084 | 68,934 | ||||||||||
Redeemed |
(1,531,556 | ) | (1,254,646 | ) | ||||||||
|
|
|
|
|||||||||
Total Class C Shares |
2,313,506 | 641,410 | ||||||||||
|
|
|
|
|||||||||
Class R Shares (b) |
||||||||||||
Issued |
614,406 | 967,846 | ||||||||||
Reinvested |
345,144 | 186,013 | ||||||||||
Redeemed |
(1,449,208 | ) | (1,774,803 | ) | ||||||||
|
|
|
|
|||||||||
Total Class R Shares |
(489,658 | ) | (620,944 | ) | ||||||||
|
|
|
|
|||||||||
Institutional Service Class Shares |
||||||||||||
Issued |
1,342,318 | (c) | | |||||||||
Reinvested |
1,777 | (c) | | |||||||||
Redeemed |
(40,131 | )(c) | | |||||||||
|
|
|
|
|||||||||
Total Institutional Service Class Shares |
1,303,964 | (c) | | |||||||||
|
|
|
|
|||||||||
Institutional Class Shares |
||||||||||||
Issued |
3,314,086 | 5,509,774 | ||||||||||
Reinvested |
454,057 | 188,197 | ||||||||||
Redeemed |
(3,067,413 | ) | (4,216,114 | ) | ||||||||
|
|
|
|
|||||||||
Total Institutional Class Shares |
700,730 | 1,481,857 | ||||||||||
|
|
|
|
|||||||||
Service Class Shares |
||||||||||||
Issued |
3,720,256 | 3,052,095 | ||||||||||
Reinvested |
1,211,040 | 677,319 | ||||||||||
Redeemed |
(5,317,159 | ) | (6,442,924 | ) | ||||||||
|
|
|
|
|||||||||
Total Service Class Shares |
(385,863 | ) | (2,713,510 | ) | ||||||||
|
|
|
|
|||||||||
Total change in shares |
5,521,369 | (319,900 | ) | |||||||||
|
|
|
|
|||||||||
|
|
|
|
Amount designated as is zero or has been rounded to zero.
(b) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(c) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
72
Statement of Cash Flows
For the Year Ended October 31, 2014 (as restated) (a)
Investor Destination Conservative Fund | ||||||
DECREASE IN CASH |
||||||
Cash flows used in operating activities: |
||||||
Net increase in net assets from operations |
$ | 15,274,277 | ||||
Adjustments to reconcile net increase/decrease in net assets from operations to net cash used in operating activities: |
||||||
Purchase of affiliated investments |
(136,282,389 | ) | ||||
Proceeds from disposition of affiliated investments |
110,973,682 | |||||
Reinvestment of dividend income from affiliates |
(5,955,748 | ) | ||||
Reinvestment of interest income from affiliates |
(3,321,629 | ) | ||||
Change in unrealized (appreciation)/depreciation from investments in affiliates |
(4,923,880 | ) | ||||
Reinvestment of net realized gain distributions from underlying affiliated funds |
(4,257,614 | ) | ||||
Net realized loss from investment transactions with affiliates |
234,765 | |||||
Increase in receivable for investments sold |
(387,208 | ) | ||||
Decrease in prepaid expenses |
2,365 | |||||
Decrease in payable for investments purchased |
(107,106 | ) | ||||
Increase in investment advisory fees |
4,167 | |||||
Decrease in fund administration fees |
(433 | ) | ||||
Increase in administrative servicing fees |
18,813 | |||||
Increase in distribution fees |
14,350 | |||||
Decrease in accounting and transfer agent fees |
(9,583 | ) | ||||
Decrease in custodian fees |
(201 | ) | ||||
Increase in trustee fees |
1,351 | |||||
Decrease in compliance program costs |
(106 | ) | ||||
Decrease in professional fees |
(2,420 | ) | ||||
Increase in printing fees |
2,089 | |||||
Increase in other payables |
2,153 | |||||
|
|
|||||
Net cash used in operating activities |
(28,720,305 | ) | ||||
|
|
|||||
Cash flows provided by financing activities: |
||||||
Proceeds from shares issued |
190,359,700 | |||||
Cost of shares redeemed |
(159,172,174 | ) | ||||
Cash distributions paid to shareholders |
(2,467,383 | ) | ||||
|
|
|||||
Net cash provided by financing activities |
28,720,143 | |||||
|
|
|||||
Net decrease in cash |
(162 | ) | ||||
|
|
|||||
Cash: |
||||||
Beginning of period |
208 | |||||
|
|
|||||
End of period |
$ | 46 | ||||
|
|
|||||
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of dividends and distributions of $25,067,078 and share class conversion of $253,391.
(a) Please refer to Note 12 for additional information.
The accompanying notes are an integral part of these financial statements.
73
Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
Nationwide Investor Destinations Conservative Fund
Operations | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period |
Net Investment Income |
Net Realized and Unrealized Gains (Losses) from Investments |
Total from Operations |
Net Investment Income |
Net Realized Gains |
Total Distributions |
Net Asset Value, End of Period |
Total Return (a)(b) |
Net Assets at End of Period |
Ratio of Expenses to Average Net Assets (c) |
Ratio of Net Investment Income to Average Net Assets (c) |
Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c) |
Portfolio Turnover (d) |
|||||||||||||||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 10.62 | 0.15 | 0.22 | 0.37 | (0.17 | ) | (0.52 | ) | (0.69 | ) | $ | 10.30 | 3.70% | $ | 81,289,282 | 0.57% | 1.51% | 0.57% | 25.03% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.55 | 0.16 | 0.27 | 0.43 | (0.18 | ) | (0.18 | ) | (0.36 | ) | $ | 10.62 | 4.17% | $ | 61,383,390 | 0.55% | 1.57% | 0.55% | 39.16% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.32 | 0.19 | 0.31 | 0.50 | (0.20 | ) | (0.07 | ) | (0.27 | ) | $ | 10.55 | 4.89% | $ | 51,231,565 | 0.52% | 1.87% | 0.52% | 15.75% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 10.18 | 0.21 | 0.14 | 0.35 | (0.21 | ) | | (0.21 | ) | $ | 10.32 | 3.51% | $ | 34,889,691 | 0.50% | 2.04% | 0.50% | 17.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.77 | 0.23 | 0.41 | 0.64 | (0.23 | ) | | (0.23 | ) | $ | 10.18 | 6.66% | $ | 22,095,197 | 0.51% | 2.33% | 0.51% | 15.48% | |||||||||||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 10.58 | 0.08 | 0.21 | 0.29 | (0.10 | ) | (0.52 | ) | (0.62 | ) | $ | 10.25 | 2.91% | $ | 72,301,458 | 1.27% | 0.81% | 1.27% | 25.03% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.51 | 0.09 | 0.27 | 0.36 | (0.11 | ) | (0.18 | ) | (0.29 | ) | $ | 10.58 | 3.49% | $ | 50,139,130 | 1.23% | 0.87% | 1.23% | 39.16% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.28 | 0.12 | 0.30 | 0.42 | (0.12 | ) | (0.07 | ) | (0.19 | ) | $ | 10.51 | 4.17% | $ | 43,051,481 | 1.23% | 1.17% | 1.23% | 15.75% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 10.15 | 0.14 | 0.13 | 0.27 | (0.14 | ) | | (0.14 | ) | $ | 10.28 | 2.63% | $ | 33,770,729 | 1.24% | 1.33% | 1.24% | 17.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.74 | 0.16 | 0.41 | 0.57 | (0.16 | ) | | (0.16 | ) | $ | 10.15 | 5.92% | $ | 33,490,120 | 1.23% | 1.64% | 1.23% | 15.48% | |||||||||||||||||||||||||||||||||||||
Class R Shares (f)(g) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 10.60 | 0.13 | 0.19 | 0.32 | (0.13 | ) | (0.52 | ) | (0.65 | ) | $ | 10.27 | 3.28% | $ | 51,948,486 | 0.87% | 1.23% | 0.87% | 25.03% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.52 | 0.13 | 0.27 | 0.40 | (0.14 | ) | (0.18 | ) | (0.32 | ) | $ | 10.60 | 3.92% | $ | 58,782,811 | 0.88% | 1.24% | 0.88% | 39.16% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.29 | 0.16 | 0.30 | 0.46 | (0.16 | ) | (0.07 | ) | (0.23 | ) | $ | 10.52 | 4.52% | $ | 64,893,180 | 0.88% | 1.52% | 0.88% | 15.75% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 10.15 | 0.17 | 0.14 | 0.31 | (0.17 | ) | | (0.17 | ) | $ | 10.29 | 3.10% | $ | 60,593,403 | 0.88% | 1.67% | 0.88% | 17.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.75 | 0.19 | 0.41 | 0.60 | (0.20 | ) | | (0.20 | ) | $ | 10.15 | 6.31% | $ | 53,173,161 | 0.87% | 1.96% | 0.87% | 15.48% | |||||||||||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended October 31, 2014 (e)(h) |
$ | 10.18 | 0.11 | 0.14 | 0.25 | (0.10 | ) | | (0.10 | ) | $ | 10.33 | 2.51% | $ | 13,465,257 | 0.25% | 1.64% | 0.25% | 25.03% | |||||||||||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 10.67 | 0.19 | 0.21 | 0.40 | (0.20 | ) | (0.52 | ) | (0.72 | ) | $ | 10.35 | 4.04% | $ | 69,248,334 | 0.22% | 1.87% | 0.22% | 25.03% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.59 | 0.20 | 0.27 | 0.47 | (0.21 | ) | (0.18 | ) | (0.39 | ) | $ | 10.67 | 4.58% | $ | 63,938,645 | 0.23% | 1.86% | 0.23% | 39.16% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.36 | 0.23 | 0.30 | 0.53 | (0.23 | ) | (0.07 | ) | (0.30 | ) | $ | 10.59 | 5.16% | $ | 47,775,938 | 0.23% | 2.16% | 0.23% | 15.75% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 10.22 | 0.24 | 0.14 | 0.38 | (0.24 | ) | | (0.24 | ) | $ | 10.36 | 3.75% | $ | 36,683,488 | 0.24% | 2.31% | 0.24% | 17.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.81 | 0.25 | 0.42 | 0.67 | (0.26 | ) | | (0.26 | ) | $ | 10.22 | 6.94% | $ | 26,174,857 | 0.23% | 2.54% | 0.23% | 15.48% | |||||||||||||||||||||||||||||||||||||
Service Class Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2014 (e) |
$ | 10.65 | 0.15 | 0.20 | 0.35 | (0.16 | ) | (0.52 | ) | (0.68 | ) | $ | 10.32 | 3.52% | $ | 184,148,248 | 0.63% | 1.48% | 0.63% | 25.03% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2013 (e) |
$ | 10.57 | 0.16 | 0.27 | 0.43 | (0.17 | ) | (0.18 | ) | (0.35 | ) | $ | 10.65 | 4.16% | $ | 194,028,941 | 0.63% | 1.49% | 0.63% | 39.16% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2012 (e) |
$ | 10.34 | 0.18 | 0.30 | 0.48 | (0.18 | ) | (0.07 | ) | (0.25 | ) | $ | 10.57 | 4.75% | $ | 221,292,727 | 0.63% | 1.77% | 0.63% | 15.75% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2011 (e) |
$ | 10.20 | 0.20 | 0.14 | 0.34 | (0.20 | ) | | (0.20 | ) | $ | 10.34 | 3.35% | $ | 218,800,000 | 0.64% | 1.93% | 0.64% | 17.28% | |||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2010 (e) |
$ | 9.79 | 0.22 | 0.41 | 0.63 | (0.22 | ) | | (0.22 | ) | $ | 10.20 | 6.52% | $ | 208,433,654 | 0.62% | 2.25% | 0.62% | 15.48% | |||||||||||||||||||||||||||||||||||||
Amounts designated as are zero or have been rounded to zero.
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Per share calculations were performed using average shares method. |
(f) | Effective February 28, 2009, Class R Shares were renamed Class R2 Shares. |
(g) | Effective March 3, 2014, Class R2 Shares were renamed Class R Shares. |
(h) | For the period from March 4, 2014 (commencement of operations) through October 31, 2014. Total return is calculated based on inception date of March 3, 2014 through October 31, 2014. |
The accompanying notes are an integral part of these financial statements.
74
October 31, 2014
1. Organization
Nationwide Mutual Funds (the Trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company, organized as a statutory trust under the laws of the State of Delaware. The Trust has authorized an unlimited number of shares of beneficial interest (shares), without par value. As of October 31, 2014, the Trust operates fifty-four (54) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the five (5) series listed below (each, a Fund; collectively, the Funds).
- Nationwide Investor Destinations Aggressive Fund (Investor Destinations Aggressive)
- Nationwide Investor Destinations Moderately Aggressive Fund (Investor Destinations Moderately Aggressive)
- Nationwide Investor Destinations Moderate Fund (Investor Destinations Moderate)
- Nationwide Investor Destinations Moderately Conservative Fund (Investor Destinations Moderately Conservative)
- Nationwide Investor Destinations Conservative Fund (Investor Destinations Conservative)
Each of the Funds operates as a fund of funds, which means that each of the Funds pursues its investment objective by allocating its investments primarily among other affiliated series of the Trust (Underlying Funds). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. Each of the Funds may also invest in an unregistered fixed interest contract (the Nationwide Fixed Contract) issued by Nationwide Life Insurance Company (Nationwide Life).
The Funds currently offer Class A, Class C, Class R, Service Class, Institutional Service Class and Institutional Class shares. Each class of a Fund represents interests in the same portfolio of investments of that Fund and the classes are identical except for differences in the sales charge structure, distribution or service fees, administrative services fees, class specific expenses, certain voting rights, conversion features, exchange privileges, and class names or designations.
Each of the Funds is a non-diversified fund, as defined in the 1940 Act.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements requires Fund management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. The Funds utilize various methods to measure the value of their investments on a recurring basis. Amounts received upon the sale of such investments could differ from those estimated values and those differences could be material.
(a) | Security Valuation |
U.S. GAAP defines fair market value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts investment adviser to the Funds, Nationwide Fund Advisors (NFA), assigns a fair value, as defined by U.S. GAAP, to a Funds investments in accordance with a hierarchy that prioritizes the various types of inputs used to measure fair value. The hierarchy gives the highest priority to readily available unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements) when market prices are not readily available or reliable.
75
Notes to Financial Statements (Continued)
October 31, 2014
The three levels of the hierarchy are summarized below.
| Level 1 Quoted prices in active markets for identical assets |
| Level 2 Other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| Level 3 Significant unobservable inputs (including a Funds own assumptions in determining the fair value of investments) |
Changes in valuation techniques may result in transfers into or out of an investments assigned level within the hierarchy.
An investments categorization within the hierarchy is based on the lowest level of any input that is significant to the fair valuation in its entirety. The inputs or methodology used to value investments are not intended to indicate the risk associated with investing in those investments.
Shares of registered open-end Underlying Funds in which a Fund invests are valued at their respective net asset value (NAV) as reported by such Underlying Fund. Investments valued in this manner are generally categorized as Level 1 investments within the hierarchy.
Each of the Funds (except Investor Destinations Aggressive) currently invests in the Nationwide Fixed Contract. The Nationwide Fixed Contract is a fixed interest rate contract issued and guaranteed by Nationwide Life. This contract has a stable principal value and pays a Fund a rate of interest, which is currently adjusted on a quarterly basis. During the year ended October 31, 2014, the rate was 3.50%, the minimum annual rate. Because the contract is guaranteed by Nationwide Life, assuming no default, a Fund receives no more or less than the guaranteed principal amount. NFA can redeem on a daily basis at par all or a portion of each Funds investment in the Nationwide Fixed Contract. The par value is calculated each day by the summation of the following factors: (i) prior days par value; (ii) prior days interest accrued (par multiplied by guaranteed fixed rate); and (iii) current day net purchase or redemption.
At October 31, 2014, 100% of the market value of Investor Destinations Aggressive was determined based on Level 1 inputs.
The following tables provide a summary of the inputs used to value the Funds net assets as of October 31, 2014. Please refer to the Statements of Investments for additional information on portfolio holdings.
Investor Destinations Moderately Aggressive
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Fixed Contract |
$ | | $ | | $ | 42,824,351 | $ | 42,824,351 | ||||||||
Mutual Funds |
2,039,159,102 | | | 2,039,159,102 | ||||||||||||
Total |
$ | 2,039,159,102 | $ | | $ | 42,824,351 | $ | 2,081,983,453 |
Investor Destinations Moderate
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Fixed Contract |
$ | | $ | | $ | 143,734,124 | $ | 143,734,124 | ||||||||
Mutual Funds |
1,657,441,688 | | | 1,657,441,688 | ||||||||||||
Total |
$ | 1,657,441,688 | $ | | $ | 143,734,124 | $ | 1,801,175,812 |
76
Notes to Financial Statements (Continued)
October 31, 2014
Investor Destinations Moderately Conservative
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Fixed Contract |
$ | | $ | | $ | 89,187,160 | $ | 89,187,160 | ||||||||
Mutual Funds |
506,555,348 | | | 506,555,348 | ||||||||||||
Total |
$ | 506,555,348 | $ | | $ | 89,187,160 | $ | 595,742,508 |
Investor Destinations Conservative
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Fixed Contract |
$ | | $ | | $ | 103,605,467 | $ | 103,605,467 | ||||||||
Mutual Funds |
368,552,020 | | | 368,552,020 | ||||||||||||
Total |
$ | 368,552,020 | $ | | $ | 103,605,467 | $ | 472,157,487 |
Amounts designated as are zero or have been rounded to zero.
During the year ended October 31, 2014, Investor Destinations Aggressive had no transfers into or out of Level 1, Level 2 or Level 3. During the same period, Investor Destinations Moderately Aggressive, Investor Destinations Moderate, Investor Destinations Moderately Conservative, and Investor Destinations Conservative had one transfer from Level 2 to Level 3.
During an evaluation of the inputs used to fair value the Nationwide Fixed Contract, management transferred the Nationwide Fixed Contract from the Level 2 category to Level 3. While management utilizes judgment in determining the level of observable and the transparency of the inputs, management believes that placing the investment in the Level 3 category would be appropriate at this time due to the shifting of the significance of the unobservable inputs used at the reporting period.
The following is a reconciliation of assets for which Level 3 inputs were used in determining fair value:
Investor Destinations Moderately Aggressive
Fixed Contract | Total | |||||||
Balance as of 10/31/13 |
$ | | $ | | ||||
Interest Income from Affiliates |
1,431,515 | 1,431,515 | ||||||
Purchases |
1,492,869 | 1,492,869 | ||||||
Sales |
( | ) | ( | ) | ||||
Change in Net Appreciation/(Depreciation) |
| | ||||||
Transfers Into Level 3 |
39,899,967 | 39,899,967 | ||||||
Transfers Out of Level 3 |
| | ||||||
Balance as of 10/31/14 |
$ | 42,824,351 | $ | 42,824,351 |
The following table represents Investor Destinations Moderately Aggressive Level 3 financial instrument, the valuation technique used to measure the fair value of this financial instrument, and the significant unobservable inputs and the ranges of values for those inputs.
Instrument | Fair Value at 10/31/14 |
Principal Valuation Technique |
Unobservable Inputs | Significant Input Values* |
||||||||
Nationwide Fixed Contract | $ | 42,824,351 | Discounted Cash Flow | Daily Transactions | daily | |||||||
Interest Rate | 3.50 | % | ||||||||||
Redemption Feature | daily | |||||||||||
Non Assignment Feature | daily | |||||||||||
Termination Feature | daily |
77
Notes to Financial Statements (Continued)
October 31, 2014
Investor Destinations Moderate
Fixed Contract | Total | |||||||
Balance as of 10/31/13 |
$ | | $ | | ||||
Interest Income from Affiliates |
4,941,659 | 4,941,659 | ||||||
Purchases |
2,905,869 | 2,905,869 | ||||||
Sales |
(3,589,101 | ) | (3,589,101 | ) | ||||
Change in Net Appreciation/(Depreciation) |
| | ||||||
Transfers Into Level 3 |
139,475,697 | 139,475,697 | ||||||
Transfers Out of Level 3 |
| | ||||||
Balance as of 10/31/14 |
$ | 143,734,124 | $ | 143,734,124 |
The following table represents Investor Destinations Moderate Level 3 financial instrument, the valuation technique used to measure the fair value of this financial instrument, and the significant unobservable inputs and the ranges of values for those inputs.
Instrument | Fair Value at 10/31/14 |
Principal Valuation Technique |
Unobservable Inputs | Significant Input Values* |
||||||||
Nationwide Fixed Contract | $ | 143,734,124 | Discounted Cash Flow | Daily Transactions | daily | |||||||
Interest Rate | 3.50 | % | ||||||||||
Redemption Feature | daily | |||||||||||
Non Assignment Feature | daily | |||||||||||
Termination Feature | daily |
Investor Destinations Moderately Conservative
Fixed Contract | Total | |||||||
Balance as of 10/31/13 |
$ | | $ | | ||||
Interest Income from Affiliates |
3,018,446 | 3,018,446 | ||||||
Purchases |
1,574,527 | 1,574,527 | ||||||
Sales |
(2,411,229 | ) | (2,411,229 | ) | ||||
Change in Net Appreciation/(Depreciation) |
| | ||||||
Transfers Into Level 3 |
87,005,416 | 87,005,416 | ||||||
Transfers Out of Level 3 |
| | ||||||
Balance as of 10/31/14 |
$ | 89,187,160 | $ | 89,187,160 |
The following table represents Investor Destinations Moderately Conservative Level 3 financial instrument, the valuation technique used to measure the fair value of this financial instrument, and the significant unobservable inputs and the ranges of values for those inputs.
Instrument | Fair Value at 10/31/14 |
Principal Valuation Technique |
Unobservable Inputs | Significant Input Values* |
||||||||
Nationwide Fixed Contract | $ | 89,187,160 | Discounted Cash Flow | Daily Transactions | daily | |||||||
Interest Rate | 3.50 | % | ||||||||||
Redemption Feature | daily | |||||||||||
Non Assignment Feature | daily | |||||||||||
Termination Feature | daily |
78
Notes to Financial Statements (Continued)
October 31, 2014
Investor Destinations Conservative
Fixed Contract | Total | |||||||
Balance as of 10/31/13 |
$ | | $ | | ||||
Interest Income from Affiliates |
3,321,629 | 3,321,629 | ||||||
Purchases |
7,363,806 | 7,363,806 | ||||||
Sales |
(1,363,163 | ) | (1,363,163 | ) | ||||
Change in Net Appreciation/(Depreciation) |
| | ||||||
Transfers Into Level 3 |
94,283,195 | 94,283,195 | ||||||
Transfers Out of Level 3 |
| | ||||||
Balance as of 10/31/14 |
$ | 103,605,467 | $ | 103,605,467 |
The following table represents Investor Destinations Conservative Level 3 financial instrument, the valuation technique used to measure the fair value of this financial instrument, and the significant unobservable inputs and the ranges of values for those inputs.
Instrument | Fair Value at 10/31/14 |
Principal Valuation Technique |
Unobservable Inputs | Significant Input Values* |
||||||||
Nationwide Fixed Contract | $ | 103,605,467 | Discounted Cash Flow | Daily Transactions | daily | |||||||
Interest Rate | 3.50 | % | ||||||||||
Redemption Feature | daily | |||||||||||
Non Assignment Feature | daily | |||||||||||
Termination Feature | daily |
Amounts designated as are zero or have been rounded to zero.
* | NFA can increase or redeem all or a portion of each Funds investment in the Fixed Contract on a daily basis at par. The Funds cannot assign or transfer their interest in the Nationwide Fixed Contract to any party. If a Fund transferred its interest in the Nationwide Fixed Contract, the issuer would terminate the arrangement and pay the Fund the amount of its holding as of the termination date. The Funds or the issuer have the ability to terminate their investments in the Nationwide Fixed Contract at their discretion. The Fair Value Committee (FVC) continues to evaluate any information that could cause an adjustment to the fair value for this investment such as market news or the credit rating of the issuer. |
The following are the valuation policies of the affiliated Underlying Funds:
Securities for which market-based quotations are readily available are valued at current market value as of Valuation Time. Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern time). Equity securities are generally valued at the last quoted sale price or official closing price, or, if there is no such price, the last quoted bid price provided by an independent pricing service approved by the Trusts Board of Trustees (the Board of Trustees). Prices are taken from the primary market or exchange on which each security trades. Shares of registered open-end management investment companies are valued at NAV as reported by such company. Investments valued in this manner are generally categorized as Level 1 investments within the hierarchy.
Debt and other fixed-income securities are generally valued at the bid evaluation price provided by an independent pricing service as approved by the Board of Trustees. Evaluations provided by independent pricing service providers may be determined without exclusive reliance on quoted prices and may use broker-dealer quotations, individual trading characteristics and other market data, reported trades or valuation estimates from their internal pricing models. The independent pricing service providers internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates, anticipated timing of principal repayments, and quoted prices for similar assets and are generally categorized as Level 2 investments within the hierarchy. Debt obligations generally involve some risk of default with respect to interest and/or principal payments.
79
Notes to Financial Statements (Continued)
October 31, 2014
The Board of Trustees has delegated authority to NFA, and the Trusts administrator, Nationwide Fund Management LLC (NFM), to assign a fair value under certain circumstances (e.g., pricing service does not provide a price as there may be no market-based quotations or price provided is deemed unreliable by NFA, NFM and/or designee), pursuant to valuation procedures approved by the Board of Trustees. NFA and NFM have established a FVC to assign these fair valuations.
The fair value of a security may differ from its quoted or published price. Fair valuation of portfolio securities may occur on a daily basis.
Securities may be fair valued in a variety of circumstances, such as where (i) market-based quotations are not readily available; (ii) an independent pricing service does not provide a value or the value provided by an independent pricing service is determined to be unreliable in the judgment of NFA or its designee; (iii) a significant event has occurred that affects the value of a Funds securities after trading has stopped (e.g., earnings announcements or news relating to natural disasters affecting an issuers operations); (iv) the securities are illiquid; (v) the securities have defaulted or been delisted from an exchange and are no longer trading; or (vi) any other circumstance in which the FVC believes that market-based quotations do not accurately reflect the value of a security.
The fair valuation of securities takes into account relevant factors and surrounding circumstances, including, but not limited to, the prices of related or comparable assets or liabilities, recent transactions, market multiples, anticipated cash flows, the nature and duration of any restrictions on transfer, book values, and other information relevant to the investment. Methods utilized to determine fair value may include, among others, the following: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair valuations may also take into account significant events that occur before Valuation Time but after the close of the principal market on which a security trades that materially affect the value of such security. The FVC monitors the results of fair valuation determinations and regularly reports the results to the Board of Trustees. That said, there can be no assurance that the fair value assigned to a security is the price at which a security could have been sold during the period in which the particular fair value was used to value the security. To the extent the inputs used are observable these securities are classified as Level 2 otherwise Level 3.
Securities held by the Nationwide Money Market Fund (Money Market) are valued at amortized cost, which approximates market value. Securities valued in this manner are generally categorized as Level 2 securities within the hierarchy. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. Money Markets use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 under the 1940 Act.
(b) | Security Transactions and Investment Income |
Security transactions are accounted for on the date the security is purchased or sold. Security gains and losses are calculated on the identified cost basis. Dividend income received from the Underlying Funds is recognized on the ex-dividend date and is recorded as income on the Statement of Operations. Capital gain distributions received from the Underlying Funds are recognized on ex-dividend date and are recorded on the Statement of Operations as such. Interest income is recognized on the accrual basis and includes, where applicable, the amortization of premiums or accretion of discounts, and is recorded as such on a Funds Statement of Operations.
(c) | Distributions to Shareholders |
Distributions from net investment income, if any, are declared and paid quarterly. Distributions from net realized capital gains, if any, are declared and distributed at least annually. All distributions are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These book/tax differences are considered either permanent or temporary.
80
Notes to Financial Statements (Continued)
October 31, 2014
Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. The permanent differences as of October 31, 2014 are primarily attributable to capital distributions from Underlying Funds and distribution redesignation. These reclassifications have no effect upon the NAV of a Fund. Any distribution in excess of current and accumulated earnings and profits for federal income tax purposes is reported as a return of capital distribution.
Reclassifications for the year ended October 31, 2014 were as follows:
Fund | Capital | Accumulated undistributed net investment income |
Accumulated net realized gains/(losses) from investment transactions |
|||||||||
Investor Destinations Aggressive |
$ | | $ | 2,677,877 | $ | (2,677,877 | ) | |||||
Investor Destinations Moderately Aggressive |
| 3,298,674 | (3,298,674 | ) | ||||||||
Investor Destinations Moderate |
| 1,928,385 | (1,928,385 | ) | ||||||||
Investor Destinations Moderately Conservative |
| 396,700 | (396,700 | ) | ||||||||
Investor Destinations Conservative |
| 113,872 | (113,872 | ) |
(d) | Federal Income Taxes |
Each Fund elected to be treated as, and intends to qualify each year as, a Regulated Investment Company by complying with the provisions available to certain investment companies under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended, and to make distributions of net investment income and net realized capital gains sufficient to relieve a Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
A Fund recognizes a tax benefit from an uncertain position only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authorities widely understood administrative practices and precedents. A Fund undertakes an affirmative evaluation of tax positions taken or expected to be taken in the course of preparing tax returns to determine whether it is more likely than not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. If such a tax position taken by a Fund is not sustained upon examination by a taxing authority that Fund could incur taxes and penalties related to that position, and those amounts could be material. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefits to recognize in the financial statements. Differences result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable) and an increase in a deferred tax liability (or a reduction in a deferred tax asset). Each Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The last three tax year ends, or since inception (if shorter), and any interim tax period since then generally remain open for examination by taxing authorities.
Each Fund engages in ongoing monitoring and analysis; future conclusions reached by management could be different and result in adjustments to a Funds NAV and financial statements. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
(e) | Cash and Cash Equivalents |
For the purposes of the Statement of Cash Flows, the Funds define Cash and Cash Equivalents as cash, money market funds and other investments held in lieu of cash.
(f) | Allocation of Expenses, Income, and Gains and Losses |
Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionally among various or all series of the Trust. Income, fund level expenses, and realized and unrealized gains or losses are allocated to each class of shares of a Fund based on the value of the outstanding
81
Notes to Financial Statements (Continued)
October 31, 2014
shares of that class relative to the total value of the outstanding shares of that Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that specific class.
3. Transactions with Affiliates
Under the terms of the Trusts Investment Advisory Agreement, NFA manages the investments of the assets and supervises the daily business affairs of the Funds in accordance with policies and procedures established by the Board of Trustees. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS), a holding company which is a direct wholly owned subsidiary of Nationwide Corporation. Each Fund pays NFA an investment advisory fee of 0.13% per year based on the Funds average daily net assets. For the year ended October 31, 2014, the Funds effective advisory fee rate was 0.13%.
The Trust and NFA have entered into a written Expense Limitation Agreement that limits the Funds operating expenses (excluding any taxes, interest, brokerage commissions and other costs incurred in connection with the purchase and sale of portfolio securities, short sale dividend expenses, Rule 12b-1 fees, fees paid pursuant to an Administrative Services Plan, other expenditures which are capitalized in accordance with U.S. GAAP, expenses incurred by a Fund in connection with any merger or reorganization and may exclude other non-routine expenses not incurred in the ordinary course of a Funds business) from exceeding 0.25% for each share class until February 28, 2015.
NFA may request and receive reimbursement from a Fund for advisory fees waived and other expenses reimbursed by NFA pursuant to the Expense Limitation Agreement at a date not to exceed three years from the month in which the corresponding waiver or reimbursement to a Fund was made. However, no reimbursement may be made unless: (i) a Funds assets exceed $100 million and (ii) the total annual expense ratio of the class making such reimbursement is no higher than the amount of the expense limitation that was in place at the time NFA waived the fees or reimbursed the expenses and does not cause the expense ratio to exceed the current expense limitation. Reimbursement by a Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. The Expense Limitation Agreement may be changed or eliminated only with the consent of the Board of Trustees.
As of October 31, 2014, the Funds had no cumulative potential reimbursements, and no amounts were reimbursed to NFA pursuant to the Expense Limitation Agreement during the year ended October 31, 2014.
NFM, a wholly owned subsidiary of NFS Distributors, Inc. (NFSDI) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Funds, and serves as Transfer and Dividend Disbursing Agent for the Funds. NFM has entered into an agreement with a third-party service provider to provide certain sub-administration and sub-transfer agency services to the Funds. NFM pays the service provider a fee for these services.
Under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for such services are based on the sum of the following: (i) the amount payable by NFM to its sub-administrator and sub-transfer agent; and (ii) a percentage of the combined average daily net assets of the Trust and Nationwide Variable Insurance Trust (NVIT Trust), a Delaware statutory trust and registered investment company that is affiliated with the Trust, according to the fee schedule below.
Combined Fee Schedule | ||||
Up to $25 billion |
0.025% | |||
$25 billion and more |
0.020% |
During the year ended October 31, 2014, NFM received $1,734,676 in fees from the Funds under the Joint Fund Administration and Transfer Agency Agreement.
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Funds and the Trust, including, but not limited to, the cost of pricing services that NFM utilizes and networking fees paid to broker-dealers that provide sub-accounting and sub-transfer agency services to their customers who are Fund shareholders. Such services, which are not otherwise provided by NFM, generally include individual account maintenance and recordkeeping, dividend disbursement, responding to shareholder calls and inquiries, providing statements and
82
Notes to Financial Statements (Continued)
October 31, 2014
transaction confirmations, tax reporting, and other shareholder services. Depending on the nature and quality of the services provided, fees for these services may range from $6 to $21 per customer per year.
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Funds portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trusts Rule 38a-1 Compliance Program subject to the pre-approval of the Trusts Audit Committee. These costs are allocated among the series of the Trust based upon their relative net assets. For the year ended October 31, 2014, the Funds aggregate portion of such costs amounted to $17,786.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (NFD), the Funds principal underwriter, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Funds at an annual rate of 0.25% of Class A shares, 1.00% of Class C shares, and 0.50% of Class R shares, and 0.25% of Service Class shares of each Fund. Institutional Class and Institutional Service Class shares do not pay a distribution fee.
Pursuant to an Underwriting Agreement, NFD serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on Class A shares. These fees are deducted from, and are not included in, proceeds from sales of Class A shares of the Funds. From these fees, NFD pays sales commissions, salaries and other expenses in connection with generating new sales of Class A shares of the Funds. During the year ended October 31, 2014, the Funds Class A sales charges ranged from 0.00% to 5.75% based on the amount purchased. During the year ended October 31, 2014, the Funds imposed front-end sales charges of $1,773,003.
NFD also receives fees in the form of contingent deferred sales charges (CDSCs) on Class A, Class B and Class C shares. Any CDSC is based on the original purchase price or the current market value of the shares being redeemed, whichever is less. A CDSC is imposed on Class A shares for certain redemptions , Class B shares made within 6 years of purchase, and Class C shares made within 1 year of purchase. During the year ended October 31, 2014, applicable Class A CDSCs were 1.00% based on the original purchase price or the current market value of the shares being redeemed. Class B CDSCs ranged from 1.00% to 5.00% based on the original purchase price or the current market value of the shares being redeemed and depending on how long the shares were held before redemption. Class B shares converted to Class A shares on February 21, 2014. Class C CDSCs were 1.00% based on the original purchase price or the current market value of the shares being redeemed. During the year ended October 31, 2014, the Funds imposed CDSCs of $22,726.
Under the terms of an Administrative Services Plan, the Funds pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, that agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: (i) establishing and maintaining shareholder accounts; (ii) processing purchase and redemption transactions; (iii) arranging bank wires; (iv) performing shareholder sub-accounting; (v) answering inquiries regarding the Funds; and (vi) other such services. These fees are calculated at an annual rate of up to 0.25% of the average daily net assets of Class A, Class R, Institutional Service Class, and Service Class shares of each Fund. Effective March 1, 2014, Class C shares began charging administrative servicing fees. These fees are calculated at an annual rate of up to 0.25% of the average daily net assets of Class C shares of the Funds.
During the year ended October 31, 2014, the effective rate for administrative services fees that NFS earned was as follows:
Fund | Class A | Class C | Class R | Institutional Service Class |
Service Class | |||||||||||||||
Investor Destinations Aggressive |
0.10 | % | 0.06 | % | 0.15 | % | 0.03 | % | 0.15 | % | ||||||||||
Investor Destinations Moderately Aggressive |
0.10 | 0.05 | 0.15 | 0.03 | 0.15 | |||||||||||||||
Investor Destinations Moderate |
0.10 | 0.05 | 0.15 | 0.04 | 0.15 | |||||||||||||||
Investor Destinations Moderately Conservative |
0.11 | 0.05 | 0.15 | 0.04 | 0.15 | |||||||||||||||
Investor Destinations Conservative |
0.10 | 0.05 | 0.15 | 0.03 | 0.15 |
83
Notes to Financial Statements (Continued)
October 31, 2014
During the year ended October 31, 2014, NFS earned the following amounts in administrative services fees from each Fund:
Fund | Amount | |||
Investor Destinations Aggressive |
$ | 1,575,735 | ||
Investor Destinations Moderately Aggressive |
2,468,472 | |||
Investor Destinations Moderate |
2,019,621 | |||
Investor Destinations Moderately Conservative |
655,099 | |||
Investor Destinations Conservative |
474,181 |
As of October 31, 2014, NFA or its affiliates directly held the percentage indicated below of the shares outstanding of the applicable Fund.
Fund | % of Shares Outstanding Owned |
|||
Investor Destinations Aggressive |
39.23 | % | ||
Investor Destinations Moderately Aggressive |
31.96 | |||
Investor Destinations Moderate |
26.55 | |||
Investor Destinations Moderately Conservative |
21.46 | |||
Investor Destinations Conservative |
14.20 |
Each Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge a Fund any sales charge for buying or selling Underlying Fund shares. However, a Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management, administration and custodian fees of the Underlying Funds. These expenses are deducted from each Underlying Funds net assets before its share price is calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how a Funds assets are allocated among the Underlying Funds.
4. Investments in Affiliated Issuers
Each of the Funds invests in Institutional Class shares of the affiliated Underlying Funds, and each of the Funds (except Investor Destinations Aggressive) invests in the Nationwide Fixed Contract. The Funds transactions in the shares of Underlying Funds and in the Nationwide Fixed Contract during the year ended October 31, 2014 were as follows:
Investor Destinations Aggressive
Affiliated Issuer | Market Value at October 31, 2013 |
Purchases at Cost |
Sales Proceeds |
Dividend Income |
Realized Gain/ (Loss) |
Capital Gain Distributions |
Market Value at October 31, 2014 |
|||||||||||||||||||||
Nationwide Portfolio Completion Fund |
$ | 122,134,901 | $ | 7,529,523 | $ | 10,291,582 | $ | 1,682,207 | $ | 184,457 | $ | | $ | 121,131,334 | ||||||||||||||
Nationwide International Index Fund |
330,372,078 | 26,136,985 | 16,846,869 | 11,002,235 | (4,088,757 | ) | | 329,146,996 | ||||||||||||||||||||
Nationwide Mid Cap Market Index Fund |
172,329,310 | 9,089,000 | 13,547,619 | 1,900,713 | 2,092,525 | 7,188,288 | 177,828,083 | |||||||||||||||||||||
Nationwide S&P 500 Index Fund |
393,912,196 | 38,207,579 | 57,118,141 | 7,503,324 | 9,389,989 | 28,001,993 | 402,830,465 | |||||||||||||||||||||
Nationwide Small Cap Index Fund |
158,588,875 | 20,928,005 | 15,494,902 | 2,034,455 | 2,643,272 | 8,949,614 | 165,930,765 | |||||||||||||||||||||
Nationwide Bond Index Fund |
24,203,719 | 1,905,978 | 978,876 | 630,733 | (25,022 | ) | 414,805 | 25,100,478 | ||||||||||||||||||||
Nationwide Core Plus Bond Fund |
24,091,538 | 1,624,260 | 676,839 | 714,215 | 9,290 | 45,131 | 25,214,901 |
84
Notes to Financial Statements (Continued)
October 31, 2014
Investor Destinations Moderately Aggressive
Affiliated Issuer | Market Value at October 31, 2013 |
Purchases at Cost |
Sales Proceeds |
Dividend/ Interest Income |
Realized Gain/ (Loss) |
Capital Gain Distributions |
Market Value at October 31, 2014 |
|||||||||||||||||||||
Nationwide Portfolio Completion Fund |
$ | 202,018,670 | $ | 55,031,132 | $ | 16,360,110 | $ | 2,901,617 | $ | 328,465 | $ | | $ | 244,444,800 | ||||||||||||||
Nationwide International Index Fund |
510,006,859 | 34,259,005 | 42,365,307 | 16,573,466 | (9,069,660 | ) | | 486,657,289 | ||||||||||||||||||||
Nationwide Mid Cap Market Index Fund |
246,095,831 | 13,264,866 | 18,356,219 | 2,719,839 | 4,877,920 | 10,319,866 | 255,141,922 | |||||||||||||||||||||
Nationwide S&P 500 Index Fund |
571,664,464 | 52,124,412 | 75,204,300 | 10,929,313 | 11,086,052 | 40,858,207 | 589,201,202 | |||||||||||||||||||||
Nationwide Small Cap Index Fund |
203,217,452 | 28,173,191 | 19,529,062 | 2,622,021 | 8,290,994 | 11,561,235 | 214,525,486 | |||||||||||||||||||||
Nationwide Ziegler Equity Income Fund |
20,812,731 | 354,543 | 815,050 | 354,542 | 62,810 | | 22,812,462 | |||||||||||||||||||||
Nationwide Bond Index Fund |
121,267,974 | 7,191,121 | 26,286,658 | 2,781,823 | (1,028,713 | ) | 2,090,197 | 101,728,389 | ||||||||||||||||||||
Nationwide Core Plus Bond Fund |
80,356,242 | 4,840,934 | 3,212,975 | 2,367,015 | 40,455 | 150,533 | 82,565,094 | |||||||||||||||||||||
Nationwide HighMark Short Term Bond Fund |
39,907,971 | 2,259,823 | | 495,932 | | | 42,082,458 | |||||||||||||||||||||
Nationwide Fixed Contract |
39,899,967 | 1,492,869 | | 1,431,515 | | | 42,824,351 |
Investor Destinations Moderate
Affiliated Issuer | Market Value at October 31, 2013 |
Purchases at Cost |
Sales Proceeds |
Dividend/ Interest Income |
Realized Gain/ (Loss) |
Capital Gain Distributions |
Market Value at October 31, 2014 |
|||||||||||||||||||||
Nationwide Portfolio Completion Fund |
$ | 174,792,995 | $ | 78,915,653 | $ | 5,915,536 | $ | 2,560,368 | $ | 170,684 | $ | | $ | 251,774,619 | ||||||||||||||
Nationwide International Index Fund |
317,475,542 | 12,446,954 | 21,651,138 | 10,229,986 | 4,541,879 | | 298,898,216 | |||||||||||||||||||||
Nationwide Mid Cap Market Index Fund |
177,472,824 | 9,354,114 | 13,996,639 | 1,952,973 | 5,115,176 | 7,401,141 | 183,062,237 | |||||||||||||||||||||
Nationwide S&P 500 Index Fund |
353,759,541 | 32,058,336 | 45,188,499 | 6,772,966 | 18,773,712 | 25,285,371 | 365,882,282 | |||||||||||||||||||||
Nationwide Small Cap Index Fund |
105,759,431 | 7,968,312 | 6,622,558 | 1,347,967 | 2,277,636 | 6,010,922 | 108,205,638 | |||||||||||||||||||||
Nationwide Ziegler Equity Income Fund |
36,280,322 | 607,778 | 2,232,995 | 607,778 | 170,683 | | 38,876,540 | |||||||||||||||||||||
Nationwide Bond Index Fund |
228,107,895 | 8,830,574 | 58,436,297 | 4,937,356 | (384,742 | ) | 3,893,220 | 177,437,996 | ||||||||||||||||||||
Nationwide Core Plus Bond Fund |
69,821,494 | 21,797,842 | 1,559,104 | 2,383,252 | 22,985 | 130,798 | 90,628,847 | |||||||||||||||||||||
Nationwide Enhanced Income Fund |
104,149,878 | 415,921 | 104,486,365 | 420,182 | (2,075,456 | ) | | | ||||||||||||||||||||
Nationwide Highmark Short Term Bond Fund |
| 132,536,748 | 44,696,852 | 410,600 | 3,777 | | 87,643,680 | |||||||||||||||||||||
Nationwide Inflation-Protected Securities Fund |
52,220,847 | 2,167,115 | 106,183 | 294,324 | (5,623 | ) | | 55,031,633 | ||||||||||||||||||||
Nationwide Fixed Contract |
139,475,697 | 2,905,869 | 3,589,101 | 4,941,659 | | | 143,734,124 |
85
Notes to Financial Statements (Continued)
October 31, 2014
Investor Destinations Moderately Conservative
Affiliated Issuer | Market Value at October 31, 2013 |
Purchases at Cost |
Sales Proceeds |
Dividend/ Interest Income |
Realized Gain/ (Loss) |
Capital Gain Distributions |
Market Value at October 31, 2014 |
|||||||||||||||||||||
Nationwide Portfolio Completion Fund |
$ | 57,845,236 | $ | 935,403 | $ | | $ | 791,489 | $ | | $ | | $ | 59,573,052 | ||||||||||||||
Nationwide International Index Fund |
58,008,986 | 4,901,633 | 1,737,961 | 1,918,208 | 787,295 | | 59,332,974 | |||||||||||||||||||||
Nationwide Mid Cap Market Index Fund |
40,767,621 | 2,157,372 | 2,939,495 | 448,322 | 1,202,729 | 1,709,050 | 42,279,411 | |||||||||||||||||||||
Nationwide S&P 500 Index Fund |
75,357,231 | 6,876,045 | 9,571,825 | 1,444,892 | 3,472,580 | 5,423,897 | 78,003,054 | |||||||||||||||||||||
Nationwide Small Cap Index Fund |
17,469,881 | 1,724,042 | 1,485,716 | 221,406 | 523,018 | 995,506 | 17,886,298 | |||||||||||||||||||||
Nationwide Ziegler Equity Income Fund |
17,622,990 | 296,890 | 1,498,963 | 296,890 | 136,165 | | 18,463,648 | |||||||||||||||||||||
Nationwide Bond Index Fund |
116,212,668 | 7,168,710 | 5,263,456 | 2,936,829 | 46,463 | 1,982,808 | 117,880,392 | |||||||||||||||||||||
Nationwide Core Plus Bond Fund |
23,147,099 | 709,921 | 193,290 | 666,560 | 1,697 | 43,362 | 23,825,280 | |||||||||||||||||||||
Nationwide Enhanced Income Fund |
57,868,703 | 270,894 | 58,082,276 | 284,695 | (1,092,716 | ) | | | ||||||||||||||||||||
Nationwide HighMark Short Term Bond Fund |
| 83,416,722 | 23,693,177 | 245,780 | (7,619 | ) | | 59,638,836 | ||||||||||||||||||||
Nationwide Inflation-Protected Securities Fund |
28,836,937 | 433,839 | | 158,392 | | | 29,672,403 | |||||||||||||||||||||
Nationwide Fixed Contract |
87,005,416 | 1,574,527 | 2,411,229 | 3,018,446 | | | 89,187,160 |
Investor Destinations Conservative
Affiliated Issuer | Market Value at October 31, 2013 |
Purchases at Cost |
Sales Proceeds |
Dividend/ Interest Income |
Realized Gain/ (Loss) |
Capital Gain Distributions |
Market Value at October 31, 2014 |
|||||||||||||||||||||
Nationwide Porfolio Completion Fund |
$ | 34,217,041 | $ | 3,174,048 | $ | | $ | 469,662 | $ | | $ | | $ | 37,886,479 | ||||||||||||||
Nationwide International Index Fund |
17,084,155 | 2,955,435 | 456,508 | 567,371 | 49,181 | | 19,080,955 | |||||||||||||||||||||
Nationwide Mid Cap Market Index Fund |
12,890,163 | 1,636,038 | 960,878 | 142,698 | 197,581 | 540,975 | 14,362,749 | |||||||||||||||||||||
Nationwide S&P 500 Index Fund |
21,395,946 | 2,619,647 | 1,813,986 | 415,213 | 534,304 | 1,538,295 | 23,799,160 | |||||||||||||||||||||
Nationwide Small Cap Index Fund |
4,285,359 | 683,640 | 313,527 | 54,587 | 11,269 | 244,197 | 4,736,347 | |||||||||||||||||||||
Nationwide Ziegler Equity Income Fund |
17,140,875 | 780,789 | 899,994 | 292,962 | 82,528 | | 19,080,955 | |||||||||||||||||||||
Nationwide Bond Index Fund |
111,674,964 | 11,014,164 | 4,548,797 | 2,793,685 | 19,197 | 1,909,924 | 117,871,360 | |||||||||||||||||||||
Nationwide Core Plus Bond Fund |
12,930,405 | 5,785,120 | | 455,249 | | 24,223 | 18,822,644 | |||||||||||||||||||||
Nationwide Enhanced Income Fund |
59,954,344 | 276,111 | 60,173,125 | 289,658 | (1,105,689 | ) | | | ||||||||||||||||||||
Nationwide Highmark Short Term Bond Fund |
| 106,505,881 | 40,443,704 | 284,046 | (23,136 | ) | | 65,968,529 | ||||||||||||||||||||
Nationwide Inflation-Protected Securities Fund |
34,217,041 | 2,897,312 | | 190,617 | | | 37,587,896 | |||||||||||||||||||||
Nationwide Money Market Fund |
8,551,186 | 803,760 | | | | | 9,354,946 | |||||||||||||||||||||
Nationwide Fixed Contract |
94,283,195 | 7,363,806 | 1,363,163 | 3,321,629 | | | 103,605,467 |
Amounts designated as are zero or have been rounded to zero.
86
Notes to Financial Statements (Continued)
October 31, 2014
Further information about each affiliated Underlying Fund (excluding the Nationwide Fixed Contract, which is not a mutual fund) may be found in such Underlying Funds most recent annual report to shareholders, which is available at www.nationwide.com/mutualfunds.
5. Line of Credit and Earnings Credit
Effective July 17, 2014, the Trust and NVIT Trust (together, the Trusts) have renewed the credit agreement with JPMorgan, The Bank of New York Mellon, and Wells Fargo Bank National Association, permitting the Trusts, in the aggregate, to borrow up to $100,000,000. Advances taken by a Fund under this arrangement would be primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to the Funds borrowing restrictions. The line of credit requires a commitment fee of 0.07% per year on $100,000,000. Borrowings under this arrangement bear interest at a rate of 1.00% per annum plus the higher of (a) the one month London Interbank Offered Rate or (b) the Federal Funds Rate. Interest costs, if any, would be shown on the Statement of Operations. No compensating balances are required under the terms of the line of credit. The line of credit is renewed annually, and next expires on July 16, 2015.
JPMorgan provides earnings credits for cash balances maintained in a Funds custody accounts, which are used to offset custody fees of a Fund.
6. Investment Transactions
For the year ended October 31, 2014, purchases and sales of investments (excluding short-term securities) were as follows:
Fund | Purchases | Sales | ||||||
Investor Destinations Aggressive |
$ | 105,421,330 | $ | 114,954,828 | ||||
Investor Destinations Moderately Aggressive |
198,991,896 | 202,129,681 | ||||||
Investor Destinations Moderate |
310,005,216 | 308,481,267 | ||||||
Investor Destinations Moderately Conservative |
110,465,998 | 106,877,388 | ||||||
Investor Destinations Conservative |
146,495,751 | 110,973,682 |
7. Portfolio Investment Risks from Underlying Funds
Information about the risks of an investment in each affiliated Underlying Fund may be found in such Underlying Funds annual report to shareholders, which is available at www.nationwide.com/mutualfunds. Additional information about derivatives-related risks, if applicable to the Fund, may also be found in each such Underlying Funds annual report to shareholders.
8. Indemnifications
Under the Trusts organizational documents, the Trusts Officers and Trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered into indemnification agreements with its Trustees and certain of its Officers. Trust Officers receive no compensation from the Trust for serving as its Officers. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trusts maximum liability under these arrangements is unknown, as this would involve future claims made against the Trust. Based on experience, however, the Trust expects the risk of loss to be remote.
9. Money Market Reform
In July 2014, the Securities and Exchange Commission (SEC) adopted amendments to the rules that govern money market mutual funds under the 1940 Act that reform the structure and operations of these funds. Money Market, which
87
Notes to Financial Statements (Continued)
October 31, 2014
is an Underlying Fund, is required to comply with these amendments, and the compliance dates for the various amendments range from 9 months to 2 years. As a result of the amendments, Money Market may be required to take certain steps with respect to its structure and/or operations.
10. Other
As of October 31, 2014, the Funds had individual shareholder accounts and/or omnibus shareholder accounts (comprising a group of individual shareholders), which held more than 10% of the total shares outstanding of the Funds as detailed below.
Fund | % of Shares | Number of Accounts | ||||||
Investor Destinations Aggressive |
46.82 | % | 3 | (a) | ||||
Investor Destinations Moderately Aggressive |
65.81 | 5 | (a) | |||||
Investor Destinations Moderate |
61.05 | 5 | (a) | |||||
Investor Destinations Moderately Conservative |
44.90 | 3 | ||||||
Investor Destinations Conservative |
40.17 | 3 |
(a) | Each such account is the account of an affiliated fund. |
11. Federal Tax Information
The tax character of distributions paid during the year ended October 31, 2014 was as follows:
Distributions paid from | ||||||||||||||||||||
Fund | Ordinary Income* |
Net Long-Term Capital Gains |
Total Taxable Distributions |
Return of Capital |
Total Distributions Paid |
|||||||||||||||
Investor Destinations Aggressive Fund |
$ | 20,454,239 | $ | 16,760,506 | $ | 37,214,745 | $ | | $ | 37,214,745 | ||||||||||
Investor Destinations Moderately Aggressive Fund |
34,854,977 | 43,454,993 | 78,309,970 | | 78,309,970 | |||||||||||||||
Investor Destinations Moderate Fund |
28,851,501 | 55,099,484 | 83,950,985 | | 83,950,985 | |||||||||||||||
Investor Destinations Moderately Conservative Fund |
9,309,455 | 39,396,579 | 48,706,034 | | 48,706,034 | |||||||||||||||
Investor Destinations Conservative Fund |
6,554,859 | 20,979,602 | 27,534,461 | | 27,534,461 |
Amounts designated as are zero or have been rounded to zero.
* | Ordinary income amounts include net short-term capital gains, if any. |
The tax character of distributions paid during the year ended October 31, 2013 was as follows:
Distributions paid from | ||||||||||||||||||||
Fund | Ordinary Income* |
Net Long-Term Capital Gains |
Total Taxable Distributions |
Return of Capital |
Total Distributions Paid |
|||||||||||||||
Investor Destinations Aggressive |
$ | 18,185,199 | $ | 11,401,352 | $ | 29,586,551 | $ | | $ | 29,586,551 | ||||||||||
Investor Destinations Moderately Aggressive |
30,325,630 | 11,352,672 | 41,678,302 | | 41,678,302 | |||||||||||||||
Investor Destinations Moderate |
26,286,237 | 7,290,440 | 33,576,677 | | 33,576,677 | |||||||||||||||
Investor Destinations Moderately Conservative |
8,909,091 | 7,686,149 | 16,595,240 | | 16,595,240 | |||||||||||||||
Investor Destinations Conservative |
6,624,660 | 7,448,555 | 14,073,215 | | 14,073,215 |
Amounts designated as are zero or have been rounded to zero.
* | Ordinary income amounts include net short-term capital gains, if any. |
88
Notes to Financial Statements (Continued)
October 31, 2014
As of October 31, 2014, the components of accumulated earnings/(deficit) on a tax basis were as follows:
Fund | Undistributed Ordinary Income |
Undistributed Long-Term Capital Gains |
Accumulated Earnings |
Distributions Payable* |
Accumulated Capital and Other Losses |
Unrealized Appreciation/ (Depreciation)** |
Total Accumulated Earnings (Deficit) |
|||||||||||||||||||||
Investor Destinations Aggressive Fund |
$ | | $ | 55,099,896 | $ | 55,099,896 | $ | | $ | | $ | 241,710,481 | $ | 296,810,377 | ||||||||||||||
Investor Destinations Moderately Aggressive Fund |
225,205 | 78,919,329 | 79,144,534 | | | 372,224,611 | 451,369,145 | |||||||||||||||||||||
Investor Destinations Moderate Fund |
938,257 | 64,360,108 | 65,298,365 | | | 260,834,046 | 326,132,411 | |||||||||||||||||||||
Investor Destinations Moderately Conservative Fund |
567,513 | 12,677,496 | 13,245,009 | | | 36,999,248 | 50,244,257 | |||||||||||||||||||||
Investor Destinations Conservative Fund |
597,257 | 3,163,853 | 3,761,110 | | | 9,880,361 | 13,641,471 |
Amounts designated as are zero or have rounded to zero.
* | Differences between financial statement distributions payable and tax-basis distributions payable are a result of accrual-based accounting and cash-basis accounting used for federal tax reporting purposes. |
** | The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is primarily attributable to timing differences in recognizing certain gains and losses on investment transactions. |
As of October 31, 2014, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
Fund | Tax Cost of Securities |
Unrealized Appreciation |
Unrealized Depreciation |
Net Unrealized Appreciation/ (Depreciation) |
||||||||||||
Investor Destinations Aggressive Fund |
$ | 1,005,472,541 | $ | 247,384,868 | $ | (5,674,387 | ) | $ | 241,710,481 | |||||||
Investor Destinations Moderately Aggressive Fund |
1,709,758,842 | 381,919,330 | (9,694,719 | ) | 372,224,611 | |||||||||||
Investor Destinations Moderate Fund |
1,540,341,766 | 270,775,596 | (9,941,550 | ) | 260,834,046 | |||||||||||
Investor Destinations Moderately Conservative Fund |
558,743,260 | 42,317,104 | (5,317,856 | ) | 36,999,248 | |||||||||||
Investor Destinations Conservative Fund |
462,277,126 | 14,858,346 | (4,977,985 | ) | 9,880,361 |
Amounts designated as are zero or have rounded to zero.
12. Restatement of Previously Issued Financial Statements
After issuing Investor Destinations Conservatives October 31, 2014 financial statements, fund management became aware of a technical correction that requires Investor Destinations Conservative to present a Statement of Cash Flows in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 230 (ASC 230). Prior to the technical correction, FASB ASC 230 required that substantially all securities of Investor Destinations Conservative be carried at fair value and liquid to be exempt from having to provide a Statement of Cash Flows. The technical update to FASB ASC 230 now requires that substantially all of Investor Destinations Conservative investments must be carried at fair value and classified as level 1 or level 2 measurements in accordance with the fair value leveling hierarchy in order to be exempt from presenting the Statement of Cash Flows. Investor Destinations Conservatives financial statements for the year ended October 31, 2014 did not present the Statement of Cash Flows. Fund Management has decided to restate the October 31, 2014 financial statements to include the Statement of Cash Flows.
13. Subsequent Events
Management has evaluated the impact of subsequent events on the Funds and has determined that there are no subsequent events requiring recognition or disclosure in the financial statements.
89
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nationwide Mutual Funds:
In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nationwide Investor Destinations Aggressive Fund, Nationwide Investor Destinations Conservative Fund, Nationwide Investor Destinations Moderate Fund, Nationwide Investor Destinations Moderately Aggressive Fund and Nationwide Investor Destinations Moderately Conservative Fund (five series of Nationwide Mutual Funds, hereafter referred to as the Funds) at October 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the underlying funds transfer agent and fixed contract issuer, provide a reasonable basis for our opinion.
As discussed in Note 12, the Nationwide Investor Destinations Conservative Fund has restated its October 31, 2014 financial statements to correct an error.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 22, 2014, except for Note 12 as to which the date is February 24, 2015
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October 31, 2014 (Unaudited)
Other Federal Tax Information
For the year ended October 31, 2014, certain dividends paid by the Funds may be subject to a maximum tax rate of 20% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2014 Form 1099-DIV.
For the taxable year ended October 31, 2014, the following percentages of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:
Fund | Dividends Received Deductions |
|||
Investor Destinations Aggressive |
55.69 | % | ||
Investor Destinations Moderately Aggressive |
48.04 | |||
Investor Destinations Moderate |
37.74 | |||
Investor Destinations Moderately Conservative |
27.24 | |||
Investor Destinations Conservative |
15.16 |
The Funds designate the following amounts, or the maximum amount allowable under the Internal Revenue Code, as long term capital gain distributions qualifying for the maximum 20% income tax rate for individuals:
Fund | Amount | |||
Investor Destinations Aggressive |
$ | 16,760,506 | ||
Investor Destinations Moderately Aggressive |
43,454,993 | |||
Investor Destinations Moderate |
55,099,484 | |||
Investor Destinations Moderately Conservative |
39,396,579 | |||
Investor Destinations Conservative |
20,979,602 |
Certain Funds have derived net income from sources within foreign countries. As of October 31, 2014, the foreign source income for each Fund was as follows:
Fund | Amount | Per Share | ||||||
Investor Destinations Aggressive |
$ | 10,816,515 | $ | 0.0998 | ||||
Investor Destinations Moderately Aggressive |
16,293,948 | 0.0915 | ||||||
Investor Destinations Moderate |
10,057,466 | 0.0630 | ||||||
Investor Destinations Moderately Conservative |
1,885,857 | 0.0340 | ||||||
Investor Destinations Conservative |
557,802 | 0.0122 |
Certain Funds intend to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. As of October 31, 2014, the foreign tax credit for each Fund was as follows:
Fund | Amount | Per Share | ||||||
Investor Destinations Aggressive |
$ | 476,109 | $ | 0.0044 | ||||
Investor Destinations Moderately Aggressive |
717,287 | 0.0040 | ||||||
Investor Destinations Moderate |
442,768 | 0.0028 | ||||||
Investor Destinations Moderately Conservative |
83,014 | 0.0015 | ||||||
Investor Destinations Conservative |
24,553 | 0.0005 |
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October 31, 2014
Trustees and Officers of the Trust
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
Name and Year of Birth |
Position(s) Held with the Trust and Length of Time Served1,2 |
Principal Occupation(s) During Past Five Years (or longer)3 |
Number of Portfolios in the Nationwide Fund Complex Overseen by Trustee |
Other Directorships Held by Trustee During Past Five Years4 | ||||||
Charles E. Allen 1948 |
Trustee since July 2000 | Mr. Allen was Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management) from its founding in 1987 to 2012. | 117 | None | ||||||
Paula H.J. Cholmondeley 1947 |
Trustee since July 2000 | Ms. Cholmondeley focuses full time on corporate governance. She sits on public company boards and is also on the faculty of the National Association of Corporate Directors. She has served as a Chief Executive Officer of Sorrel Group (management consulting company) since January 2004. From April 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. | 117 | Director of Dentsply International, Inc. (dental products) from 2002 to present, Ultralife Batteries, Inc. from 2004 to 2010, Albany International Corp. (paper industry) from 2005 to 2013, Terex Corporation (construction equipment) from 2004 to present, and Minerals Technology, Inc. (specialty chemicals) from 2005 to present. | ||||||
Phyllis Kay Dryden 1947 |
Trustee since December 2004 | Ms. Dryden became CEO and President of Energy Dispute Solutions, LLC in January 2013, leading a company providing strategy consulting, arbitration and mediation services. She has been a management consultant since 1996, first as a partner of Mitchell Madison Group, then as a managing partner and head of west coast business development for marchFIRST, returning to Mitchell Madison Group in 2003 as an associated partner until January 2010 and thereafter as an independent strategy consultant through December 2012. Ms. Dryden was VP and General Counsel of Lucasfilm, Ltd. from 1981 to 1984, SVP and General Counsel of Charles Schwab and Co., Inc. from 1984 to 1992, and EVP and General Counsel of Del Monte Foods from 1992 to 1995. | 117 | None |
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Management Information (Continued)
October 31, 2014
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
Name and Year of Birth |
Position(s) Held with the Trust and Length of Time Served1,2 |
Principal Occupation(s) During Past Five Years (or longer)3 |
Number of Portfolios in the Nationwide Fund Complex Overseen by Trustee |
Other Directorships Held by Trustee During Past Five Years4 | ||||||
Barbara L. Hennigar 1935 |
Trustee since July 2000 | Ms. Hennigar was Executive Vice President of Oppenheimer Funds (an asset management company) from October 1992 until June 2000; Chairman of Oppenheimer Funds Services from October 1999 until June 2000; and President and CEO of Oppenheimer Funds Services from June 1992 until October 1999. She was previously Board Chair of a non-profit independent school, and is currently an independent trustee and endowment chair of St. Marys Academy, an independent school in Denver, CO. | 117 | None | ||||||
Barbara I. Jacobs 1950 |
Trustee since December 2004 | Ms. Jacobs served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, from January 2001 through January 2006. From 1988 through 2003, Ms. Jacobs was also a Managing Director and European Portfolio Manager of CREF Investments (Teachers Insurance and Annuity Association-College Retirement Equities Fund). | 117 | None | ||||||
Keith F. Karlawish 1964 |
Trustee since March 2012 | Mr. Karlawish has been a partner of Park Ridge Asset Management, LLC since December 2008, at which he also serves as a portfolio manager. From May 2002 until October 2008, Mr. Karlawish was the President of BB&T Asset Management, Inc., and was President of the BB&T Mutual Funds and BB&T Variable Insurance Funds from February 2005 until October 2008. | 117 | Trustee of the BB&T Mutual Funds and BB&T Variable Insurance Funds from June 2006 until December 2008. | ||||||
Carol A. Kosel 1963 |
Trustee since March 2013 | Ms. Kosel was a consultant to the Evergreen Funds Board of Trustees from October 2005 to December 2007. She was Senior Vice President, Treasurer, and Head of Fund Administration of the Evergreen Funds from April 1997 to October 2005. | 117 | Trustee of Sun Capital Advisers Trust from April 2011 to December 2012 and Trustee of Evergreen Funds from January 2008 to July 2010. | ||||||
Douglas F. Kridler 1955 |
Trustee since September 1997 | Mr. Kridler is the President and Chief Executive Officer of The Columbus Foundation, a $1.5 billion community foundation with 2,000 funds in 55 Ohio counties and 37 states in the U.S. | 117 | None |
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Management Information (Continued)
October 31, 2014
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
Name and Year of Birth |
Position(s) Held with the Trust and Length of Time Served1,2 |
Principal Occupation(s) During Past Five Years (or longer)3 |
Number of Portfolios in the Nationwide Fund Complex Overseen by Trustee |
Other Directorships Held by Trustee During Past Five Years4 | ||||||
Lydia Micheaux Marshall5 1949 |
Trustee since June 2014 | Ms. Marshall has been President of LM Marshall, LLC (investment and business consulting company) since 2007. | 117 | Director of Nationwide Corporation since 2001, Nationwide Financial Services, Inc. since 1997, Nationwide Foundation since 2002, Nationwide Life Insurance Company since 2002, Nationwide Life and Annuity Insurance Company since 2002, Nationwide Mutual Fire Insurance Company since 2001, Nationwide Mutual Insurance Company since 2002, and Scottsdale Insurance Company since 2001 (all financial services and insurance companies). Chair and CEO of Versura, Inc. (data processing) since 1999. Director of Seagate Technology (hard disk drive and storage manufacturer) since 2004. Director of Public Welfare Foundation (non- profit foundation) since 2009. |
94
Management Information (Continued)
October 31, 2014
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
Name and Year of Birth |
Position(s) Held with the Trust and Length of Time Served1,2 |
Principal Occupation(s) During Past Five Years (or longer)3 |
Number of Portfolios in the Nationwide Fund Complex Overseen by Trustee |
Other Directorships Held by Trustee During Past Five Years4 | ||||||
David C. Wetmore 1948 |
Trustee since 1995 and Chairman since February 2005 | Mr. Wetmore was a Managing Director of Updata Capital, Inc. (a technology-oriented investment banking and venture capital firm) from 1995 through 2000. Prior to 1995, Mr. Wetmore served as the Chief Operating Officer, Chief Executive Officer and Chairman of the Board of several publicly- held software and services companies, and as the managing partner of a big 8 public accounting firm. | 117 | None |
1 | Length of time served includes time served with predecessor of the Trust. |
2 | Each Trustee holds office for the lifetime of the Trust or until such Trustees earlier death, resignation, removal, retirement or inability otherwise to serve, or the election and qualification of his or her successor. |
3 | Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years. |
4 | Directorships held in (i) any other investment companies registered under the 1940 Act, (ii) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the Exchange Act) or (iii) any company subject to the requirements of Section 15(d) of the Exchange Act. |
5 | Ms. Marshall is considered an interested person of the Trust because she is a Director of the parent company of, and several affiliates of, the Trusts investment adviser and distributor. |
95
Management Information (Continued)
October 31, 2014
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
Name and Year of Birth |
Position(s) Held with Fund and Length of Time Served1 |
Principal Occupation(s) During Past Five Years2 | ||
Michael S. Spangler 1966 |
President and Chief Executive Officer since June 2008 | Mr. Spangler is President and Chief Executive Officer of Nationwide Funds Group, which includes NFA3, Nationwide Fund Management LLC3 and Nationwide Fund Distributors LLC3, and is a Senior Vice President of NFS3. From May 2004 through May 2008, Mr. Spangler was Managing Director, Head of Americas Retail and Intermediary Product Management for Morgan Stanley Investment Management. | ||
Stephen T. Grugeon 1950 |
Executive Vice President and Chief Operating Officer since June 2008 | Mr. Grugeon has been Executive Vice President and Chief Operating Officer of Nationwide Funds Group since May 20073. From February 2008 through June 2008, Mr. Grugeon also served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. From December 2006 until January 2008, Mr. Grugeon was Executive Vice President of NWD Investments3. | ||
Joseph Finelli 1957 |
Treasurer since September 2007 | Mr. Finelli is the Principal Financial Officer and Senior Vice President for Nationwide Funds Group3. From July 2001 until September 2007, Mr. Finelli was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3. | ||
Brian Hirsch 1956 |
Chief Compliance Officer since January 2012 | Mr. Hirsch is Vice President of NFA and Chief Compliance Officer of NFA and the Trust. From January 2003 through January 2012, Mr. Hirsch was the Senior Vice President for Compliance and Fund Administration at IFS Financial Services, Inc., a subsidiary of the Western Southern Financial Group. | ||
Eric E. Miller 1953 |
Secretary since December 2002 | Mr. Miller is Senior Vice President, General Counsel, and Assistant Secretary for Nationwide Funds Group and NWD Investments3. | ||
Jennifer Tiffany Grinstead 1976 |
Chief Marketing Officer since March 2014 | Ms. Grinstead is Vice President of Nationwide Funds Marketing for NFS.3 From April 2012 through April 2014, Ms. Grinstead was Assistant Vice President, Life Marketing for NFS.3 From January 2009 through April 2012, Ms. Grinstead was Assistant Vice President, Retirement Plan Marketing for NFS.3 |
1 | Length of time served includes time served with the Trusts predecessors. |
2 | Unless otherwise noted, the information presented is the principal occupation of the Officer during the past five years. |
3 | These positions are held with an affiliated person or principal underwriter of the Funds. |
Additional information regarding the Trustees and Officers may be found in the Trusts Statement of Additional Information, which is available without charge upon request, by calling 800-848-0920.
Federal law requires the Trust and each of its investment advisers and subadvisers to adopt procedures for voting proxies (Proxy Voting Guidelines) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Fund. The Funds proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trusts website at nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commissions website at www.sec.gov.
96
Market Index Definitions |
Barclays Global Aggregate Bond Index: An unmanaged index of fixed-rate, publicly issued, taxable bond market issues with a remaining maturity of at least one year; a broad-based measurement of the performance of the global investment-grade fixed-income markets.
Barclays U.S. 1-3 Year Government/Credit Bond Index: An unmanaged index of U.S. dollar-denominated, investment-grade, fixed-rate, publicly issued, taxable bond market issues (including Treasury, government and corporate securities) with a remaining maturity of one to three years.
Barclays 7-Year Municipal Bond Index: An unmanaged index that consists of a broad selection of investment-grade general obligation and revenue bonds with maturities of approximately seven years.
Barclays Municipal Bond Index: An unmanaged, market value-weighted index of investment-grade municipal bonds with a minimum credit rating of Baa and maturities of one year or more; serves as a broad market performance index for the tax-exempt bond market.
Barclays U.S. Aggregate Bond Index: An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more) that is generally representative of the bond market as a whole.
Barclays U.S. Treasury Inflation-Protected Securities (TIPS) IndexSM: An unmanaged, market capitalization-weighted index that measures the performance of all U.S. dollar-denominated, investment-grade, fixed-rate, publicly issued U.S. TIPS with a remaining maturity of at least one year and $250 million or more in outstanding face value.
BofA Merrill Lynch (BofAML) AAA U.S. Treasury/Agency Master Index: An unmanaged index that gives a broad look at how fixed-rate U.S. government bonds with a remaining maturity of at least one year have performed.
BofA Merrill Lynch (BofAML) U.S. High Yield Cash Pay Constrained Index: An unmanaged, market value-weighted index that measures the performance of U.S. dollar-denominated, below-investment-grade, fixed-rate, publicly issued, non-convertible, coupon-bearing corporate debt with a remaining maturity of at least one year. Each issue represented must have an outstanding par value of at least $50 million, must be less than BBB/Baa3-rated but not in default, and is restricted to a maximum of 2% of the total index.
Consumer Price Index (CPI): Calculated by the U.S. Department of Labors Bureau of Labor Statistics, the CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.
iMoneyNet Prime Retail Index: An unmanaged index that is an average of non-government retail money market mutual funds. Portfolio holdings of prime money market mutual funds include U.S. Treasury, U.S. non-Treasury obligations, repurchase agreements, time deposits, domestic and foreign bank obligations, commercial paper, floating-rate notes and asset-backed commercial paper.
Lipper Analytical Services, Inc. (Lipper) is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective as determined by Lipper.
Morningstar® (Mstar) Lifetime Allocation Indexes: A series of 13 unmanaged, multi-asset-class indexes designed to benchmark target-date investment products. Each index is available in three risk profiles: aggressive, moderate and conservative. The index asset allocations adjust over time, reducing equity
97
Market Index Definitions (cont.) |
exposure and shifting toward traditional income-producing investments. The strategic asset allocation of the indexes is based on Ibbotson Associates Lifetime Asset Allocation methodology.
MSCI ACWI: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of large-cap and mid-cap stocks in global developed and emerging markets.
MSCI EAFE® Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of large-cap and mid-cap stocks in developed markets outside the United States and Canada.
MSCI Emerging Markets® Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of large-cap and mid-cap stocks in emerging-country markets.
MSCI World ex USA Index: An unmanaged index that measures the equity market performance of developed-market countries excluding the United States; covers approximately 85% of the free float-adjusted market capitalization in each country, capturing large-cap and mid-cap representation.
MSCI World IndexSM Free: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of large-cap and mid-cap stocks in global developed markets. The Free suffix denotes an index with a somewhat different history but the same constituents and performance in relation to its counterpart index without the suffix.
NASDAQ-100 Index: An unmanaged index that includes 100 of the largest domestic and international nonfinancial securities listed on the Nasdaq Stock Market, based on market capitalization.
NYSE Arca Tech 100 Index®: An unmanaged, price-weighted index of at least 100 individual technology-related securities, consisting of stocks of companies from various industries that produce or deploy innovative technologies to conduct their business.
Russell 1000® Growth Index: An unmanaged index that measures the performance of the large-capitalization growth segment of the U.S. equity universe; includes those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index: An unmanaged index that measures the performance of the large-capitalization value segment of the U.S. equity universe; includes those Russell 1000® Index companies with lower price-to-book ratios and lower forecasted growth values.
Russell 2000® Index: An unmanaged index that measures the performance of the small-capitalization segment of the U.S. equity universe.
Russell 2000® Growth Index: An unmanaged index that measures the performance of the small-capitalization growth segment of the U.S. equity universe; includes those Russell 2000® Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 2000® Value Index: An unmanaged index that measures the performance of the small-capitalization growth segment of the U.S. equity universe; includes those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values.
Russell 3000® Index: An unmanaged index that measures the performance of the 3,000 largest U.S. companies in the investable U.S. equity universe.
98
Market Index Definitions (cont.) |
Russell Midcap® Growth Index: An unmanaged index that measures the performance of the mid-capitalization growth segment of the U.S. equity universe; includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell Midcap® Value Index: An unmanaged index that measures the performance of the mid-capitalization value segment of the U.S. equity universe; includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values.
Note about Russell Indexes
Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.
S&P 500® Index: An unmanaged, market capitalization-weighted index of 500 stocks of leading large-cap U.S. companies in leading industries; gives a broad look at the U.S. equities market and those companies stock price performance.
S&P MidCap 400® (S&P 400) Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies (those with a market capitalization of $1 billion to $4.4 billion).
S&P North American Technology Sector IndexTM: An unmanaged, modified, market capitalization-weighted index that measures the performance of the technology sector of the U.S. equity market.
S&P SmallCap 600® Value Index: An unmanaged index comprising small-capitalization value stocks included in the S&P SmallCap 600® Index. Performance is measured based on the ratios of book value, earnings, and sales to price.
99
Glossary |
Definitions of some commonly used investment terms
Asset allocation: The process of spreading assets across several different investment styles and asset classes. The purpose is to potentially reduce long-term risk and capture potential profits across various asset classes.
Benchmark index: A broad-based securities index used as a comparison tool to measure the performance of a mutual fund.
Coefficient of correlation: A measure that determines the degree to which the movements of two variables are associated.
Derivative: A contract, security or investment with its value based on the performance of an underlying financial asset, index or economic measure.
Diversification: An investment strategy that seeks to reduce risk in a portfolio so that the positive performance of some investments will neutralize the negative performance of others.
Duration: A measure of how much the price of a bond would change compared to a change in market interest rates, based on the remaining time until a bonds maturity together with other factors. A bonds value drops when interest rates rise, and vice versa. Bonds with longer durations have higher risk and volatility.
Emerging market countries: Developing and low- or middle-income countries as identified by the International Finance Corporation or the World Bank. Emerging market countries may be found in regions such as Asia, Latin America, Eastern Europe, the Middle East and Africa.
Equity securities: Securities that represent an ownership interest in the issuer. Common stock is the most common type of equity securities.
Expense ratio: The percentage of fees paid by a fund to its adviser for management and operational costs. A funds expense ratio includes all administrative expenses and 12b-1 fees but excludes sales charges.
Fixed-income securities: Securities, including bonds and other debt securities, that represent an obligation by the issuer to pay a specified rate of interest or dividend at specified times.
Futures: Contracts that obligate the buyer to buy and the seller to sell a specified quantity of an underlying asset (or settle for cash the value of a contract based on the underlying asset) at a specified price on the contracts maturity date.
Growth style: Investing in equity securities of companies that the Funds subadviser believes have above-average rates of earnings growth and which therefore may experience above-average increases in stock price.
High-yield bonds: Fixed-income securities that are rated below investment grade by nationally recognized statistical rating organizations. These bonds generally offer investors higher interest rates as a way to help compensate for the fact that the issuer is at greater risk of default.
Market capitalization: A common way of measuring the size of a company based on the price of its common stock multiplied by the number of outstanding shares.
100
Glossary (cont.) |
Preferred stock: A class of stock that often pays dividends at a specified rate and has preference over common stocks in dividend payments and liquidation of assets.
Quantitative techniques: Mathematical and statistical methods used in the investment process to identify securities of issuers for possible purchase or sale by a mutual fund.
Sector: An industry or market that shares common characteristics. Sectors are used to group investments into categories such as energy, health, technology and utilities.
Value style: Investing in equity securities that a funds manager believes are undervalued, i.e., their stock prices are less than the manager believes they are intrinsically worth, based on such factors as a companys stock price relative to its book value, earnings and cash flow.
Yield curve: A plotted graph line showing the interest rates of bonds, at a set point in time, that have equal credit quality but different maturity dates.
101
P.O. Box 701
Milwaukee, WI 53201-0701
nationwide.com/mutualfunds
Call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download prospectuses at nationwide.com/mutualfunds. These prospectuses outline investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing.
About Nationwide Funds Group (NFG)
NFG comprises Nationwide Fund Advisors, Nationwide Fund Distributors LLC and Nationwide Fund Management LLC. Together they provide advisory, distribution and administration services, respectively, to Nationwide Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Funds.
Distributor
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, King of Prussia, Pa. NFD is not affiliated with any subadviser contracted by Nationwide Fund Advisors (NFA), with the exception of Nationwide Asset Management, LLC (NWAM).
Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide Funds Group and Nationwide Funds are service marks of Nationwide Mutual Insurance Company. © 2014
AR-ID 12/14
Item 2. Code of Ethics.
Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so.
The registrant has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as Exhibit 12 (a)(1).
The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 11(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.
During the period covered by the report, with respect to the registrants Code of Ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, except as may be noted hereinbelow, there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the Code of Ethics definition enumerated in paragraph (b) of this Item 2.
Item 3. Audit Committee Financial Expert.
(a) (1) Disclose that the registrants board of directors has determined that the registrant either:
(i) Has at least one audit committee financial expert serving on its audit committee; or
2
(ii) Does not have an audit committee financial expert serving on its audit committee.
(2) | If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is independent. In order to be considered independent for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: |
(i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or
(ii) Be an interested person of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. § 80a-2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert.
3(a)(1) | The registrants board of trustees has determined that the registrant has at least one audit committee financial expert serving on boards audit committee. |
3(a)(2) | The audit committee financial expert of the registrants board of trustees is Paula H.J. Cholmondeley, who, for purposes of this Item 3 of Form N-CSR, is an independent trustee of the registrant. |
Item 4. Principal Accountant Fees and Services.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrants annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrants financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
4(a) through 4(d): The information in the table below is provided for services rendered to the registrant by the registrants principal accountant, PricewaterhouseCoopers LLP (PwC), for the registrants fiscal years ended October 31, 2013, and October 31, 2014.
2013 | 2014 | |||||||
Audit Fees |
$ | 709,889 | $ | 1,102,201 | ||||
Audit-Related Fees |
$ | 33,037 | $ | 1,730 | ||||
Tax Fees |
$ | 346,456 | $ | 358,389 | (a) | |||
All Other Fees |
$ | 0 | $ | 0 | ||||
Total |
$ | 1,089,382 | $ | 1,462,320 |
3
(a) | Tax fee amount represents tax compliance for federal, state and international matters, general consulting as well as consulting as it relates to foreign tax reclaims. |
The information in the table below is provided with respect to non-audit services that directly relate to the registrants operations and financial reporting and that were rendered by PwC to the registrants investment adviser, Nationwide Fund Advisors (NFA), and any service provider to the registrant controlling, controlled by, or under common control with NFA that provided ongoing services to the registrant (hereinafter referred to collectively as the Covered Services Provider), for the registrants fiscal years ended October 31, 2013, and October 31, 2014.
2013 | 2014 | |||
Audit-Related Fees |
None | None | ||
Tax Fees |
None | None | ||
All Other Fees |
None | None | ||
Total |
None | None |
(e)(1) Disclose the audit committees pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
4(e)(1) Pre-Approval Policies and Procedures. The Audit Committee (the Committee) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent auditors to the registrant and (ii) all permissible non-audit services to be provided by the independent auditors to NFA and any Covered Services Provider if the engagement relates directly to the operations and financial reporting of the registrant. The Committee may delegate the Committees responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson shall report to the Committee, at the Committees next regularly-scheduled meeting after the Chairpersons pre-approval of such services, his or her decision(s).
The Committee also may establish detailed pre-approval policies and procedures for pre-approval of these services in accordance with applicable laws, including the delegation of some or all of the Committees pre-approval responsibilities to other persons (other than NFA or the registrants officers). Pre-approval by the Committee of any permissible non-audit services shall not be required so long as: (i) the aggregate amount of all said permissible non-audit services provided to the registrant, NFA, and any Covered Services Provider constitutes not more than five percent (5%) of the total amount of revenues paid by the registrant to the registrants independent auditors during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (iii) these services are promptly brought to the attention of the Committee and approved by the Committee (or the Committees delegate(s)) prior to the completion of the audit.
4(e)(2) The information in the table below sets forth the percentages of fees for services (other than audit, review, or attest services) rendered by PwC to the registrant for which the pre-approval requirement was waived pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X, for the registrants fiscal-years ended October 31, 2013, and October 31, 2014:
2013 | 2014 | |||||||
Audit-Related Fees |
None | None | ||||||
Tax Fees (1) |
None | None | ||||||
All Other Fees |
None | None | ||||||
Total |
None | None |
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The information in the table below sets forth the percentages of fees for services (other than audit, review, or attest services) rendered by PwC to NFA and any Covered Services Provider required to be approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X, for the registrants fiscal-years ended October 31, 2013, and October 31, 2014:
2013 | 2014 | |||
Audit-Related Fees |
N/A | N/A | ||
Tax Fees |
N/A | N/A | ||
All Other Fees |
N/A | N/A | ||
Total |
N/A | N/A |
(f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountants engagement to audit the registrants financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountants full-time, permanent employees.
4(f) Not Applicable: The percentage of hours expended to audit the registrants financial statements for the fiscal-year ended October 31, 2014, that were attributed to work performed by persons other than PwCs full-time, permanent employees was not over fifty percent (50%).
(g) Disclose the aggregate non-audit fees billed by the registrants accountant for services rendered to the registrant, and rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.
4(g) The aggregate fees billed by PwC for non-audit services rendered to the registrant and service affiliates for the fiscal-years ended October 31, 2013, and October 31, 2014, were $0 and $0, respectively.
(h) Disclose whether the registrants audit committee of the board of directors has considered whether the provision of nonaudit services that were rendered to the registrants investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence.
4(h) The registrants Audit Committee has considered whether the provision by PwC of non-audit services to NFA and Covered Services Providers, that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X because these services did not directly relate to the registrants operations and financial reporting, is compatible with maintaining PwCs independence.
Item 5. Audit Committee of Listed Registrants.
(a) | If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 C.F.R. § 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. § 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrants audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. § 78c(a)(58)(B)), so state. |
Not Applicable: The registrant is not a listed issuer as defined in Rule 10A-3 under the
Exchange Act.
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(b) | If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 C.F.R. §240.10A-3(d)) regarding an exemption from the listing standards for all audit committees. |
Not Applicable: The registrant is not a listed issuer as defined in Rule 10A-3 under the
Exchange Act.
Item 6. Investments.
(a) | File Schedule I Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in § 210.1212 of the Regulation S-X [17 C.F.R. § 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
Instruction of paragraph (a)
Schedule I-Investments In Securities of unaffiliated issuers filed under this Item must be audited, except that in the case of a report on this Form N-CSR as of the end of a fiscal half-year Schedule I Investments in securities of unaffiliated issuers need not be audited.
(b) | If the registrant has divested itself of securities in accordance with Section 13(c) of the Investment Company Act of 1940 following the filing of its last report on Form N-CSR and before filing of the current report, disclosed the following information for each such divested security: |
(1) | Name of the issuer; |
(2) | Exchange ticker symbol; |
(3) | Committee on Uniform Securities Identification Procedures (CUSIP) number; |
(4) | Total number of shares or, for debt securities, principal amount divested; |
(5) | Date(s) that the securities were divested; |
(6) | If the registrant holds any securities of the issuer on the date of filing, the exchange ticker symbol; CUSIP number; and the total number of shares or, for debt securities, principal amount held on the date of filing; and |
(7) | Name of the statute that added the provision of Section 13(c) in accordance with which the securities were divested. This Item 6(b) shall terminate one year after the first date on which all statutory provisions that underlie Section 13(c) of the Investment Company Act of 1940 have terminated. |
The Registrant made no divestments of securities in accordance with Section 13(c) of the
Investment Company Act of 1940.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the companys investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. § 80a-2(a)(3)) and the rules there under) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the companys investment adviser, or any other third party, that the company uses, or that are used on the companys behalf, to determine how to vote proxies relating to portfolio securities.
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Not Applicable. The registrant is an open-end management investment company, not a
closed-end management investment company.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR, provide the information specified in paragraphs (a) and (b) of this Item with respect to portfolio managers.
Not Applicable. The registrant is an open-end management investment company, not a
closed-end management investment company.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
If the registrant is a closed-end management investment company, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any affiliated purchaser, as defined in Rule 10b-18(a)(3) under the Exchange Act (17 C.F.R. § 240.10b-18(a)(3)), of shares or other units of any class of the registrants equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. § 781).
Not Applicable. The registrant is an open-end management investment company, not a closed-end management investment company.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders may recommend nominees to the registrants board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 C.F.R. § 240.14a-101), or this Item.
The Independent Trustees and the Board of Trustees of the registrant adopted a formal, written Policy Regarding Shareholder Submission of Trustee Candidates, as well as a formal, written Statement of Policy On Criteria For Selecting Trustees, on June 9, 2005, and June 10, 2005, respectively. Neither this policy nor this statement of policy has been materially changed since the Board of Trustees adoption of the policy and the statement of policy, respectively. The Nominating and Fund Governance Committee of the Board of Trustees (the NFGC) and the Board of Trustees, however, on November 11, 2005, and January 12, 2006, respectively, approved amendments to this policy; these amendments to the policy, though, concern the criteria for selecting candidates for Trustees and the characteristics expected of candidates for Trustees, as set forth in the Exhibit A, Statement of Policy On Criteria For Selecting Trustees, to the policy and, arguably, may not be deemed to be material changes to the policy.
{NOTE THIS IS REQUIRED BEGINNING WITH THE FIRST REPORTING PERIOD ENDING AFTER JANUARY 1, 2004. For purposes of this Item, adoption of procedures by which shareholders may recommend nominees to the registrants board of directors, where the registrants most recent proxy disclosure (in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR § 240.14a-101)), or this Item, indicated that the registrant did not have in place such procedures, will constitute a material change.}
Item 11. Controls and Procedures.
(a) Disclose the conclusions of the registrants principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 C.F.R. § 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 C.F.R. § 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 C.F.R. § 240.13a-15(b) or § 240.15d-15(b)).
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The registrants principal executive officer and principal financial officer have concluded, based on their evaluation of the registrants disclosure controls and procedures as conducted within ninety (90) days of the filing date of this report, that, except as discussed in the following paragraph, these disclosure controls and procedures, as most-recently amended effective as of June 11, 2014, are adequately designed and operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is: (i) accumulated and communicated to the investment companys management, including the investment companys certifying officers, to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commissions rules and forms. The registrants management, including its principal executive officer and principal financial officer, believes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Management has determined that because the Nationwide Mutual Funds Investor Destinations Conservative Fund (the Fund) did not have substantially all of the Funds holdings classified as level 1 and level 2 securities in that it held a significant portion of its holdings in a level 3 security within the hierarchy, a Statement of Cash Flows should be presented in accordance with the a recent technical correction to Financial Accounting Standards Board Accounting Standards Codification Topic 230 (ASC 230). As a result, Management is amending this shareholder report (the Amendment). The Amendment does not change any of the existing financial statement information including the financial highlights and the notes to the financial statements, nor did any of the share class net asset values, net assets, or shares outstanding require any update. There was no impact to the net asset value of the Funds shares or the total return of the Funds shares for any period. The controls in place were insufficient to ensure that the technical correction described above, was appropriately incorporated into the Funds financial statements which resulted in a material weakness as of October 31, 2014. Management has subsequently modified controls to review such future technical corrections to ensure compliance with ASC 230.
(b) Disclose any change in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 C.F.R. § 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Other than the modification of controls to review future technical corrections as noted above to ensure compliance with ASC 230, there were no changes in the registrants internal control over financial reporting that occurred during the registrants second fiscal half year covered by this report that have materially affected or are reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Exhibits.
(a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.
The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 C.F.R. § 270.30a-2).
Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 C.F.R. § 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.
Not Applicable.
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(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act as an exhibit. A certification furnished pursuant to this paragraph will not be deemed filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant incorporates it by reference.
Certifications pursuant to Rule 30a-2(b) are furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | NATIONWIDE MUTUAL FUNDS | |||||
By (Signature and Title)* | /s/ Joseph A. Finelli | |||||
Name: | Joseph A. Finelli | |||||
Title: | Principal Financial Officer | |||||
Date: | February 25, 2015 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Michael S. Spangler | |||||
Name: | Michael S. Spangler | |||||
Title: | Principal Executive Officer | |||||
Date: | February 25, 2015 |
By (Signature and Title)* | /s/ Joseph A. Finelli | |||||
Name: | Joseph A. Finelli | |||||
Title: | Principal Financial Officer | |||||
Date: | February 25, 2015 |
* | Print the name and title of each signing officer under his or her signature. |
10
NATIONWIDE MUTUAL FUNDS
&
NATIONWIDE VARIABLE INSURANCE TRUST
CODE OF ETHICS
FOR
PRINCIPAL EXECUTIVE AND FINANCIAL OFFICERS
(As Amended and Restated As of May 1, 2007;
As Most-Recently Revised As of June 15, 2011)
I. | Introduction |
Section 406 of the Sarbanes-Oxley Act of 2002. The Board of Trustees of each of Nationwide Mutual Funds (NMF) and Nationwide Variable Insurance Trust (NVIT) (NMF and NVIT hereinafter referred to collectively as the Company) has adopted this code of ethics (this Code) to comply with Item 2 of Form N-CSR,1 which implements Section 406 of the Sarbanes-Oxley Act of 2002 (the 2002 Act). Section 406 of the 2002 Act requires disclosure by management investment companies that are registered with the Securities and Exchange Commission (the SEC) under the Investment Company Act of 1940, as amended (the 1940 Act), concerning a code of ethics for principal executive and financial officers of these investment companies.
Covered Persons Under the Code. This Code of the Company is applicable to the Companys chief executive officer (the CEO) and the Companys senior financial officers (e.g., the Companys treasurer and assistant treasurers) (said CEO and senior financial officers hereinafter referred to collectively as the Covered Officers). See Exhibit A to this Code.
This Code is intended to promote:
| honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
1 | Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, that company has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer, or controller, or persons performing similar functions. If the registrant has not adopted such a code of ethics, the registrant must explain why the registrant has not done so. Under Item 2, the registrant also must: (1) file with the Securities and Exchange Commission a copy of the code as an exhibit to the registrants annual report; (2) post the text of the code on the registrants Internet website and disclose, in the registrants annual report, the registrants Internet address, and the fact that the registrant has posted the code on the registrants Internet website; or (3) undertake in the registrants most recently filed semi-annual report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which this request may be made. Disclosure also is required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrants annual report on Form N-CSR or on the registrants website. If the registrant intends to satisfy the disclosure requirement by posting this information on the registrants website, the registrant will be required to disclose the registrants Internet address and this intention. Investment companies must make the disclosure discussed in this footnote regardless of whether these officers are employed by the registrant or a third party. |
| full, fair, accurate, timely, and understandable disclosure in reports and documents that the Company files with, or submits to, the SEC and in other public communications made by the Company; |
| compliance with applicable governmental laws, rules and regulations; |
| the prompt internal reporting to an appropriate person or persons identified in the Code of violations of the Code; and |
| accountability for adherence to the Code. |
Designated Persons Under the Code. As set forth in greater detail below, the Covered Officers shall report to either: (i) one of the officers of the Company set forth in Exhibit B (each hereinafter referred to as a Nationwide Designated Person); and/or (ii) a member of the Audit Committee of the Board of Trustees of the Company (each hereinafter referred to as an Audit Committee Designated Person) (the Nationwide Designated Person and the Audit Committee Designated Person hereinafter referred to collectively as the Designated Persons, and singly as the Designated Person, as appropriate). See Exhibit B to this Code.
Roles and Responsibilities of the Designated Persons and the Independent Trustees. As discussed in greater detail below, given the seniority of the Covered Officers:
i. | the Nationwide Designated Person shall be responsible for conducting investigations of potential violations of the Code by Covered Officers (other than the CEO of the Company) brought to the attention of the Nationwide Designated Person, and: |
a. | with respect to such conduct or activity, shall be responsible for making a preliminary determination whether or not such conduct or activity will violate or has violated this Code; |
b. | shall be responsible for making a preliminary determination whether or not to grant a waiver2 to the Covered Officer for such conduct or activity or, in the case if past conduct or activity, whether or not to sanction the Covered Officer for such activity; |
2 | Item 2 of Form N-CSR defines waiver as the approval by the registrant of a material departure from a provision of the code of ethics and implicit waiver, which also must be disclosed in the Form N-CSR, as the registrants failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer of the registrant. See also Rule 3b-7 under the Securities Exchange At of 1934, as amended (17 C.F.R. § 240.3b-7). |
2
ii. | the Nationwide Designated Person promptly shall report to the Trustees of the Company who are not interested persons of the Company, as that term is defined in Section 2(a)(19) of the 1940 Act (hereinafter, the Independent Trustees): |
a. | his or her preliminary determination whether or not any such conduct or activity has violated or will violate this Code; and |
b. | his or her preliminary determination whether or not any such conduct or activity should be the subject of a waiver or, in the case of past conduct, a sanction; |
iii. | the Audit Committee Designated Person shall be responsible for conducting investigations of potential violations of the Code by the CEO of the Company brought to the attention of the Audit Committee Designated Person, and: |
a. | with respect to such conduct or activity, shall be responsible for making a preliminary determination whether or not such conduct or activity will violate or has violated this Code; and |
b. | with respect to such conduct or activity, also shall be responsible for making a preliminary determination whether or not to grant a waiver to the CEO for such conduct or activity or, in the case of past conduct or activity, whether or not to sanction the CEO for such conduct or activity; |
iv. | the Audit Committee Designated Person promptly shall report to the Independent Trustees: |
a. | his or her preliminary determination whether or not any such conduct or activity has violated or will violate this Code; and |
b. | his or her preliminary determination whether or not any such conduct or activity should be the subject of a waiver or, in the case of past conduct, a sanction; |
v. | the Independent Trustees shall be solely responsible for promptly determining whether or not: (a) to accept the preliminary determinations made by the Designated Person with respect to potential violations of the Code; and (b) to grant waivers under this Code and these determinations of the Independent Trustees shall be final; |
3
vi. | the Independent Trustees further shall be solely responsible for taking all necessary and appropriate disciplinary or preventive action(s) (necessary and appropriate disciplinary or preventive action(s) may include a letter of censure, suspension, dismissal, or, in the event of criminal or other serious violations of law, notification to the SEC and/or appropriate law enforcement authorities) in regard to any existing, actual, or potential violation of this Code by any Covered Officer; and |
vii. | all determinations made by the Designated Persons and Independent Trustees shall be in writing. |
II. | Covered Officers Should Act Honestly and Candidly |
Each Covered Officer owes a duty to the Company to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent with integrity.
Each Covered Officer must:
| act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Companys policies; |
| observe applicable governmental laws, rules and regulations, accounting standards, and Company policies; |
| adhere to a high standard of business ethics; and |
| place the interests of the Company before the Covered Officers own personal interests. |
All activities of Covered Officers should be guided by and adhere to these standards.
III. | Covered Officers Should Handle Ethically |
Actual and Apparent Conflicts of Interest
General Principle. The 1940 Act is designed, in part, to address inherent conflicts of interest that exist in the management of an investment companys assets by a third party (i.e., the investment companys investment adviser). The principles set forth in this section relating to conflicts of interest reflect the fact that investment companies already are subject to prohibitions on certain activities, including self-dealing, and substantial limitations regarding conflicts of interest by the 1940 Act and the SEC rules promulgated thereunder. In light of the existing structural, statutory, and regulatory environment for registered investment companies, a code of ethics broader than necessary to meet the new 2002 Act code of ethics requirement may be unnecessary. This Code,
4
however, is intended to require the Covered Officers to adhere to the general principle that those persons responsible for managing other peoples money should be held to the highest standards of integrity.
Guiding Principles. A conflict of interest occurs when an individuals private interest interferes with the interests of, or his/her service to, the Company and the shareholders of the Company. A conflict of interest can arise when a Covered Officer has interests that may make it difficult to perform that Covered Officers Company work objectively. For example, a conflict of interest would arise if a Covered Officer, or a member of the Covered Officers family, receives improper personal benefits as a result of the Covered Officers position in the Company. In addition, investment companies also should be sensitive to situations that create apparent conflicts of interest. Service to the Company should never be subordinated to personal gain and advantage.
Certain conflicts of interest covered by this Code arise out of the relationships between Covered Officers and the Company that already are subject to conflict of interest provisions in the 1940 Act. For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of the status of Covered Officers as affiliated persons of the Company, as that term is defined at Section 2(a)(3) of the 1940 Act. The Companys compliance programs and procedures are designed to prevent, and identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and these conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between, the Company and the investment adviser(s) of which the Covered Officers also are officers or employees. As a result, this Code recognizes that the Covered Officers, in the normal course of their duties (whether formally for the Company or for the adviser, or for both), shall be involved in establishing policies and implementing decisions which will have different effects on the investment adviser and the Company. The participation of the Covered Officers in these activities is inherent in the contractual relationship between the Company and the investment adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if these activities are performed by the Covered Officer in conformity with the provisions of the 1940 Act, the activity will be deemed to have been handled ethically. In addition, it is recognized by the Board of Trustees of the Company that the Covered Officers also may be officers or employees of other investment companies advised by the same adviser and, accordingly, the principles of this paragraph shall further apply to the Covered Officers acting in these capacities as well.
Responsibilities of Covered Officers. In accordance with these principles, each Covered Officer must:
| avoid conflicts of interest wherever possible; |
| handle any actual or apparent conflict of interest ethically; |
5
| not use the Covered Officers personal influence or personal relationships to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company; |
| not cause the Company to take action, or fail to take action, for the personal benefit of the Covered Officer rather than for the benefit of said Company; |
| not use material non-public knowledge of portfolio transactions made or contemplated for the Company to profit or cause others to profit, by the market effect of these transactions; |
| as described in more detail below, discuss with the appropriate Designated Person any material transaction or relationship that could reasonably be expected to give rise to a conflict of interest; and |
| report at least annually to the Company on the Companys Trustees & Officers Questionnaire any and all material transactions, affiliations, or relationships that could reasonably be expected to give rise to, or be related to, a conflict of interest. |
Conflict of Interest Situations: Certain conflict of interest situations that always should be discussed by a Covered Officer with the appropriate Designated Person include the following:
| any outside business activity that detracts from an individuals ability to devote appropriate time and attention to his or her responsibilities with the Company; |
| service as a director on the board of any public or private company; |
| the receipt of any non-nominal or non de minimis gifts (i.e., gifts in excess of $500.00) from any company with which the Company has current or prospective business dealings; |
| the receipt of any entertainment from any company with which the Company has current or prospective business dealings, unless said entertainment is business related, reasonable in cost (not greater than $500), appropriate as to time and place, and not so frequent as to raise any question of impropriety; |
| being in the position of supervising, reviewing, or having any influence on the job evaluation, pay, or benefit of any immediate family member; |
| any ownership interest in, or any consulting or employment relationship with, any of the Companys service providers, other than the Companys investment adviser or administrator or any of the Companys other affiliates; and |
6
| a direct or indirect financial interest in commissions, transaction charges, or spreads paid by the Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officers employment, such as compensation or equity ownership. |
In addition, any activity or relationship that would present a conflict of interest for a Covered Officer also likely would present a conflict for the Covered Officer if a member of the Covered Officers family engages in such an activity or has such a relationship.
IV. | Disclosure |
Each Covered Officer must:
| familiarize himself or herself with the disclosure requirements applicable to the Company as well as with the business and financial operations of the Company; |
| not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including, among others, the Companys auditors, directors, and governmental regulators and self-regulatory organizations; |
| each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Company and the Companys adviser or sub-adviser and administrator with the goal of promoting full, fair, accurate, timely, and understandable disclosure in the reports and documents the Company files with, or submits to, the SEC and in other public communications made by the company; and |
| it is the responsibility of each Covered Person to promote compliance with the standards and restrictions imposed by applicable laws, rules, and regulations. |
V. Compliance
It is the Companys policy to comply with all applicable governmental laws, rules and regulations, including, among others, those laws, rules, and regulations relating to affiliated transactions, accounting, and auditing matters. It is the personal responsibility of each Covered Officer to adhere to the standards and restrictions imposed by these laws, rules, and regulations.
7
VI. | Accountability, Reporting, and Enforcement Responsibilities Under the Code |
Responsibilities of the Covered Officers: Each Covered Officer must:
| upon becoming a Covered Officer, sign and submit to the appropriate Designated Person an acknowledgment stating that the Covered Officer has received, has read, and understands the Code (see Exhibit C to this Code); |
| annually thereafter, submit a form to the appropriate Designated Person confirming that the Covered Officer has received, has read, and understands the Code and has complied with the requirements of the Code (see Exhibit D to this Code); |
| not retaliate against any employee, Designated Person, Covered Officer, or their affiliated persons ,for reports of potential violations that are made in good faith; and |
| notify the appropriate Designated Person promptly if the Covered Officer becomes aware of any existing or potential violation of this Code (failure to notify the appropriate Designated Person under these circumstances is itself a violation of this Code). |
General Responsibilities of the Designated Persons: Except as otherwise described herein, the Designated Person: (i) shall be responsible for applying this Code to specific situations in which questions are presented to the Designated Person; and (ii) has the authority to interpret this Code in any particular situation. The Designated Person shall take all actions that the Designated Person considers necessary and appropriate to investigate any existing, actual, or potential violations reported to the Designated Person.
Specific Accountability & Reporting Responsibilities: The Designated Person shall report, in writing, quarterly to the Independent Trustees all determinations with respect to potential violations of the Code, if any, made during the previous quarter.
The Independent Trustees shall report, in writing, quarterly to the full Board of Trustees all actions taken under this Code with respect to the previous quarter.
Authorized Consulting Persons: In addition, a Designated Person, as appropriate, is authorized to consult with the following persons (hereinafter referred to as the Authorized Consulting Persons), and is encouraged to do so: (i) any other Designated Person; (ii) the chairperson of the Nominating and Board Governance Committee of the Board of Trustees of the Company; (iii) the Independent Trustees of the Company; (iv) the Board of Trustees of the Company; (v) counsel to the Company; and/or (vi) counsel to the Independent Trustees.
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VII. | Other Policies and Procedures |
This Code is not adopted under, nor intended to serve as a basis for complying with the requirements of, Rule 17j-1 under the 1940 Act (in regard to the reporting, disclosure, and preclearance of personal securities transactions and personal securities holdings, and to other related matters covered by Rule 17j-1 under the 1940 Act) .
The codes of ethics adopted by the Company, the Companys investment advisers and principal underwriter pursuant to Rule 17j-1 under the 1940 Act set forth more detailed policies and procedures that are separate requirements which apply to the Covered Officers and other persons, and are not part of this Code.
VIII. | Amendments |
This Code may not be amended except in written form, and such amendments must be approved by a majority vote of the Companys Board of Trustees, including a majority of the Independent Trustees.
IX. | Confidentiality |
All reports and records prepared or maintained pursuant to this Code shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, these matters shall not be disclosed to anyone other than Designated Persons and Authorized Consulting Persons.
X. | Internal Use |
This Code is intended solely for the internal use by the Company and does not constitute an admission, by or on behalf of the Company, as to any fact, circumstance, or legal conclusion.
9
EXHIBIT A:
Covered Officers Under This Code of Ethics
(As Amended and Restated as of May 1, 2007;
As Most-Recently Revised As of December 16, 2013)
Michael S. Spangler | President & Chief Executive Officer, NMF and NVIT | |
Joseph A. Finelli | Treasurer & Chief Financial Officer, NMF and NVIT | |
Jacqueline A. Payton | Assistant Treasurer, NMF and NVIT |
10
EXHIBIT B:
Designated Persons Under This Code of Ethics 1
(As Amended and Restated as of May 1, 2007;
As Most-Recently Revised As of December 16, 2013)
Nationwide Designated Person
Each of:
Eric E. Miller | Secretary, NMF and NVIT | |
(Mr. Miller currently also serves as a Senior Vice President and the Chief Counsel for Nationwide Funds Group) | ||
Brian E. Hirsch | Chief Compliance Officer, NMF and NVIT | |
(Mr. Hirsch currently also serves as a Senior Vice President and the Chief Compliance Officer for Nationwide Funds Group) | ||
Audit Committee Designated Person
Each member of the Audit Committee
of the Board of Trustees of NMF and NVIT
shall be deemed to be an
Audit Committee Designated Person.
1 | The Securities and Exchange Commission has indicated that any Designated Person of the Company should have sufficient status within the company to engender respect for the code and the authority to adequately deal with the persons subject to the code regardless of their stature in the company. |
11
EXHIBIT C:
INITIAL CERTIFICATION
NATIONWIDE MUTUAL FUNDS AND
NATIONWIDE VARIABLE INSURANCE TRUST
CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS
To: | Eric E. Miller, Secretary, NMF and NVIT |
Brian E. Hirsch, Chief Compliance Officer, NMF and NVIT |
1. | I hereby acknowledge receipt of the Nationwide Mutual Fund and Nationwide Variable Insurance Trust Code of Ethics for Senior Financial Officers (the Code). |
2. | I have read and understand the Code, and I recognize that I am subject thereto in the capacity of a Covered Officer. |
3. | I shall comply with the requirements of the Code, and shall disclose/report all violations or potential violations of the Code as required thereunder. |
4. | As of the date indicated below, I am not aware of any violations or potential violations of the Code. |
Signature: |
| |
Name: |
| |
Title: |
| |
Date Report Submitted: |
|
Exhibit D:
ANNUAL CERTIFICATION
NATIONWIDE MUTUAL FUNDS AND
NATIONWIDE VARIABLE INSURANCE TRUST
CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS
To: | Eric E. Miller, Secretary, NMF and NVIT |
Brian E. Hirsch, Chief Compliance Officer, NMF and NVIT |
1. | I have read and understand the Nationwide Mutual Fund and Nationwide Variable Insurance Trust Code of Ethics for Senior Financial Officers (the Code), and I recognize that I am subject thereto in the capacity of a Covered Officer. |
2. | I hereby certify that, during the year ended December 31, 2010, I have complied with the requirements of the Code and have reported all violations or potential violations required to be reported pursuant to the Code. |
Signature: |
| |
Name: |
| |
Title: |
| |
Date Report Submitted: |
|
SARBANES-OXLEY ACT SECTION 302 CERTIFICATIONS
I, Michael S. Spangler, certify that:
1. | I have reviewed this report on Form N-CSR, for the period ended October 31, 2014, of Nationwide Mutual Funds (the registrant); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including the registrants consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within ninety (90) days prior to the filing date of this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during second quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
1
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
February 25, 2015 | /s/ Michael S. Spangler | |||||
Date | Michael S. Spangler | |||||
Principal Executive Officer |
2
SARBANES-OXLEY ACT SECTION 302 CERTIFICATIONS
I, Joseph A. Finelli, certify that:
1. | I have reviewed this report on Form N-CSR, for the period ended October 31, 2014, of Nationwide Mutual Funds (the registrant); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including the registrants consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within ninety (90) days prior to the filing date of this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
February 25, 2015 | /s/ Joseph A. Finelli | |||||
Date | Joseph A. Finelli | |||||
Principal Financial Officer |
4
SARBANES-OXLEY ACT SECTION 906 CERTIFICATIONS
This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR, for the period ended October 31, 2014, of Nationwide Mutual Funds (the Registrant).
I, Michael S. Spangler, the Principal Executive Officer of the Registrant, certify, to the best of my knowledge, that:
1. | the report on Form N-CSR fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. § 78m(a) and § 78o(d)); and |
2. | the information contained in the report on Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
February 25, 2015 |
Date |
/s/ Michael S. Spangler |
Michael S. Spangler |
Principal Executive Officer |
Nationwide Mutual Funds |
This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the Commission) or the Commissions staff upon request.
SARBANES-OXLEY ACT SECTION 906 CERTIFICATIONS
This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR, for the period ended October 31, 2014, of Nationwide Mutual Funds (the Registrant).
I, Joseph A. Finelli, the Principal Financial Officer of the Registrant, certify, to the best of my knowledge, that:
1. | the report on Form N-CSR fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. § 78m(a) and § 78o(d)); and |
2. | the information contained in the report on Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
February 25, 2015 |
Date |
/s/ Joseph A. Finelli |
Joseph A. Finelli |
Principal Financial Officer |
Nationwide Mutual Funds |
This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the Commission) or the Commissions staff upon request.
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